Mines in Operation

Fresnillo B Model Operate Small

Strategic focus:
Maximise the potential of existing operations

Operational focus and criteria

Our operating mines are located within prime gold and silver mining districts in Mexico, supported by extensive investment in technology, that enhances productivity and efficiency, teamed with high-quality assets selectively added in exploration and development phase, we remain competitively positioned in cash cost performance.

Key assets

Asset

Type

Commodity

Year

» Fresnillo

Underground

Silver primary

1554

» Saucito

Underground

Silver primary

2011

» Ciénega

Underground

Gold/Silver

1992

» Herradura

Open pit

Gold

1997

» Soledad-Dipolos

Open pit

Gold

2010

» Noche Buena

Open pit

Gold

2012

» San Julián

Underground

Silver primary

2016

*Operations at Soledad-Dipolos currently suspended.

Total Production

 

1Q20

4Q19

% change

1Q19

% change

FY19

FY18

% change

Silver (koz)

12,547

13,131

-4.4

12,372

-10.4

51,764

58,079

-10.9

Silverstream (koz)

681

643

5.8

766

-25.2

2,850

3,725

-23.5

Total Silver (koz)

13,228

13,775

-4.0

13,138

-11.2

54,614

61,804

-11.6

Gold (oz)

196,963

233,744

-15.7

211,110

0.7

875,913

922,527

-5.1

Lead (t)

13,905

14,997

-7.3

12,125

-1.7

55,722

53,181

4.8

Zinc (t)

22,655

24,832

-8.8

21,752

1.2

92,578

88,520

4.6

Operational Highlights - 1Q20

Silver Highlights

  • Quarterly silver production of 13.2 moz (incl. Silverstream), down 4.0% vs 4Q19 driven by lower ore grade at San Julián Disseminated Ore Body (DOB) and lower volume of ore processed at Saucito.

  • Quarterly silver production (incl. Silverstream), flat (+0.7%) vs 1Q19 due to a higher ore grade at San Julián (DOB) and higher volume of ore processed at Fresnillo, offset by the expected lower ore grade at Saucito.

Gold Highlights

  • Quarterly gold production of 197.0 koz down 15.7% vs. 4Q19 as expected, due to a lower volume of ore processed and an increase in stripping at Herradura, in accordance to the mine plan.

  • Quarterly gold production decreased 6.7% vs. 1Q19 due to lower volumes of ore processed at both Herradura and Noche Buena, and to a lesser extent, lower ore grade at Herradura and at San Julián (veins).

By-Products

  • Quarterly by-product lead and zinc production decreased 7.3% and 8.8% respectively vs. 4Q19 driven primarily by lower ore grades and recovery rates at both Fresnillo and San Julián (DOB), mitigated by higher ore grade and recovery rates at Saucito

  • Quarterly by-product lead production increased 14.7% vs. 1Q19 mainly due to higher ore grades at both Fresnillo and Ciénega

  • Quarterly by-product zinc production increased 4.2% vs. 1Q19 due to higher ore grades at both Fresnillo and Ciénega, offset by a lower ore grade at San Julián (DOB).

Development Projects

Further progress was achieved at the construction of the Pyrites Plant (Phase II) and the optimisation of the beneficiation plan, both at Fresnillo. Additionally, the Juanicipio project advanced as expected during the quarter, with the first production stope to be fully prepared by the end of 3Q20.

Outlook

Given the evolving situation with regards COVID-19, Fresnillo continues to keep full year production guidance under constant review. The timeline for commissioning of the development projects will also be monitored closely.