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 Quarterly Production

 

2Q18

2Q17

% change

1Q18

1H18

1H17

% change

Silver (koz)

14,459

13,328

8.5

14,235

28,694

25,752

11.4

Silverstream (koz)

884

1,188

-25.6

1,186

2,070

2,292

-9.7

Total Silver (koz)

15,343

14,515

5.7

15,421

30,764

28,044

9.7

Gold (oz)

233,841

223,479

4.6

231,458

465,299

445,769

4.4

Lead (t)

13,223

11,385

16.1

11,629

24,853

22,846

8.8

Zinc (t)

22,014

14,919

47.6

19,040

41,054

28,725

42.9

Annual Production

Sum of ounces produced, plus ounces accrued through the Silverstream contract. This indicator monitors total production levels at our mines and contributions from advanced development projects.

AR17 Silver Gold Reserves

*Source: Fresnillo 2017 Annual Report - Annual Silver / Gold production


Operational Highlights (2Q18)

  • Quarterly and first half silver production (including Silverstream), up 5.7% and 9.7% respectively over the corresponding periods in 2017 primarily due to start up of operations at San Julián JM (Phase II) in July 2017.

  • Quarterly gold production of 234 koz, up 4.6% vs. 2Q17 due to higher ore grade, throughput and recovery rate at Saucito and higher ore grades at Noche Buena, Herradura and Fresnillo.

  • First half gold production of 465 koz up 4.4% vs. 1H17, due to ongoing decrease in gold inventories and higher ore grade at Herradura and higher volume of ore processed and ore grade at Saucito.

  • Ongoing tests at the Herradura leaching pads have resulted in an increase of 98.9 koz of gold in the inventory as of 1 January 2018.

  • Full year consolidated production guidance marginally revised: total gold production 900 – 930 koz (previously 870 – 900 koz) and total silver production 64.5 – 67.5 moz (previously 67 – 70 moz) including Silverstream.

Operational Highlights (1H18/1H17 comparisons)

  • Silver production of 30.8 moz (including Silverstream), up 9.7%, and gold production of 465 koz, up 4.4%

  • Ongoing tests at Herradura leaching pads resulted in increase of 98.9 koz gold in inventory as of 1 January 2018

  • Full year consolidated production guidance marginally revised: total gold production 900 – 930 koz (previously 870 – 900 koz) and total silver production 64.5 – 67.5 moz (previously 67 – 70 moz) including Silverstream

  • Pyrites plant at Saucito commissioned with minimal delays and on budget

  • Final testing of second line dynamic leaching plant on track with commercial production expected 3Q18.