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

 

2Q20

1Q20

% change

2Q19

% change

1H20

1H19

% change

Silver (koz)

12,944

12,547

3.2

13,636

-5.1

25,491

26,009

-2.0

Silverstream (koz)

648

681

-4.9

782

-17.1

1,328

1,548

-14.2

Total Silver (koz)

13,592

13,228

2.8

14,418

-5.7

26,819

27,557

-2.7

Gold (oz)

184,356

196,963

-6.4

221,307

-16.7

381,319

432,417

-11.8

Lead (t)

16,180

13,905

16.4

13,039

24.1

30,085

25,164

19.6

Zinc (t)

26,726

22,655

18.0

20,654

29.4

49,381

42,406

16.4

Operational Highlights - 2Q20


Silver

  • Quarterly silver production of 13.6 moz (including Silverstream), up 2.8% vs. 1Q20 driven by a higher ore grade at Fresnillo and, to a lesser extent, higher ore grade at Ciénega.

  • Quarterly silver production (including Silverstream), down 5.7% vs. 2Q19 due to the expected lower ore grade at Saucito, and to a lesser extent, lower ore grade at San Julián Disseminated Ore Body (DOB) and lower volume of ore processed and ore grade at San Julián Veins.
  • First half silver production of 26.8 moz (including Silverstream), down 2.7% vs. 1H19 due to the expected lower ore grade at Saucito, and to a lesser extent, a lower contribution from the Silverstream and a lower volume of ore processed at San Julián Veins, mitigated by a higher ore grade at Fresnillo.

Gold

  • Quarterly gold production of 184.4 koz down 6.4% vs. 1Q20, primarily due to a lower volume of ore processed at Herradura as a result of COVID-19 related restrictions, mitigated by the ability to continue processing inventories both, on the leaching pads and the dynamic leaching plants (DLP’s).
  • Quarterly and first half gold production decreased 16.7% and 11.8% vs. 2Q19 and 1H19 respectively due to a lower volume of ore processed at Herradura and Noche Buena, for the same reasons as described above.

By-Products

  • Quarterly by-product lead and zinc production increased 16.4% and 18.0% respectively vs. 1Q20, driven primarily by higher ore grades at Fresnillo.
  • Quarterly by-product lead and zinc production increased 24.1% and 29.4% vs. 2Q19 respectively due to higher ore grades at Fresnillo and Saucito, as well as a higher volume of ore processed at the latter, offset by a lower ore grade at San Julián (DOB).
  • First half by-product lead production increased 19.6% vs. 1H19 due to higher ore grades at Fresnillo, Saucito and Ciénega.
  • First half by-product zinc production increased 16.4% vs. 1H19 due to higher ore grades at Fresnillo, Saucito and Ciénega, offset by a lower ore grade at San Julián (DOB).

Development Projects

  • During the second quarter, the pace of progress at Juanicipio slowed due to COVID-19 restrictions. Nevertheless, the overall development timetable currently remains unchanged with development ore due to be processed through the Fresnillo plant in the coming weeks at an average rate of 16,000 tonnes per month and the Juanicipio processing plant expected to be commissioned mid-2021. Mine development continued, and we expect the first production stope to be fully prepared by the end of 3Q20.
  • Construction of the Pyrites plant (phase II) in the Fresnillo district advanced and remains on track and on budget. As a direct result of COVID-19 related disruption, there could be a possible delay in final inspections by the authority, which could defer start-up of commercial production from 3Q20 to 4Q20.
  • Fresnillo flotation plant optimisation to cope with higher content of lead and zinc is progressing according to plan and is expected to be concluded on time by 2H20.

2020 Outlook

Despite the uncertainty, 2020 silver production guidance remains in the range of 51 to 56 moz (including Silverstream) while gold production is now expected to be in a range of 785 to 815 koz (previously 815 to 900 koz) as a result of COVID-19 related disruption.