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

 

4Q19

3Q19

% change

4Q18

% change

FY19

FY18

% change

Silver (koz)

13,131

12,624

4.0

14,647

-10.4

51,764

58,079

-10.9

Silverstream (koz)

643

659

-2.4

860

-25.2

2,850

3,725

-23.5

Total Silver (koz)

13,775

13,283

3.7

15,507

-11.2

54,614

61,804

-11.6

Gold (oz)

233,744

209,752

11.4

232,026

0.7

875,913

922,527

-5.1

Lead (t)

14,997

15,561

-3.6

15,252

-1.7

55,722

53,181

4.8

Zinc (t)

24,832

25,340

-2.0

24,531

1.2

92,578

88,520

4.6

Annual Production

AR18 Production Proven And Probable Reserves

AR18 Silver Gold Resources II

*Source: Fresnillo Annual Report 2018 - Annual Silver / Gold production


Operational Highlights - 1H19/1H18 comparisons

  • Silver production of 27.6 moz (including Silverstream), down 10.4%, and gold production of 432 koz, down 7.1%

  • Construction of Juanicipio remains on track to be concluded by the end of 2020.

  • Construction of the pyrites plant (phase II) at Fresnillo continued to progress, with commissioning expected by the end of 2020.

  • Optimisation of the Fresnillo flotation plant to cope with higher content of lead and zinc is progressing according to plan and is expected to be concluded by 2H20.

  • A programme to control costs and further operational measures to increase productivity will be deployed in 2H19.

Operational Highlights - 4Q19

Silver Highlights

  • Quarterly silver production of 13.8 moz (including Silverstream), up 3.7% vs. 3Q19 driven by higher ore grades at both San Julián Disseminated Ore Body (DOB) and Saucito.

  • Quarterly silver production (including Silverstream), down 11.2% vs. 4Q18 due to the expected lower ore grade at Saucito, as well as a lower volume of ore processed and ore grade at San Julián Veins.

  • Full year silver production of 54.6 moz (including Silverstream), down 11.6% vs. FY18 as a result of the expected lower ore grade at Saucito as well as lower than expected ore grades at Fresnillo and San Julián Veins and DOB.

Gold Highlights

  • Quarterly gold production of 233.7 koz increased 11.4% vs. 3Q19 mainly driven by a higher volume of ore processed, ore grade and overall rate of recovery at Herradura, partially offset by a lower ore throughput and ore grade at Noche Buena.

  • Quarterly gold production remained flat vs. 4Q18 as increases in production at Herradura were offset by a lower volume of ore processed at Noche Buena and lower ore grade and volume of ore processed at San Julián Veins.

  • Full year gold production of 875.9 koz decreased 5.1% vs. FY18 due to the expected lower production from Noche Buena and a lower ore grade at San Julián Veins. This was mitigated by a higher ore grade at Fresnillo and a higher volume of ore processed and ore grade at Herradura.

By-Products

  • Quarterly by-product lead production decreased 3.6% vs. 3Q19 driven by a lower volume of ore processed and ore grade at Fresnillo, mitigated by higher ore grades at both Saucito and San Julián DOB.

  • Quarterly by-product lead production decreased 1.7% vs. 4Q18 due to a lower ore grade and recovery rate at Saucito, mitigated by a higher volume of ore processed and ore grade at Fresnillo.

  • Full year by-product lead production increased 4.8% vs. FY18 due to a higher ore grade at Fresnillo, higher recovery rate at San Julián DOB and a higher ore grade and recovery rate at Ciénega, offset by lower production at Saucito.

  • By-product zinc production decreased 2.0% vs. 3Q19 due to a lower volume of ore processed at Fresnillo and lower ore grades at Ciénega and San Julián DOB, mitigated by a higher ore grade at Saucito.

  • By-product zinc production increased 1.2% vs. 4Q18 mainly as a result of a higher ore grade and volume of ore processed at Fresnillo and a higher ore grade at Ciénega, offset by lower ore grades at both Saucito and San Julian DOB.

  • FY by-product zinc production increased 4.6% vs. FY18 mainly due to a higher ore grade and recovery rate at Ciénega.

Development Projects

  • Since the Capital Markets Day held in December last year, progress on projects continues. A fuller update on our development projects and exploration programme will be provided alongside our preliminary results, due to be announced on 3rd March 2020.

Outlook

  • Silver production expected to be in the range of 51 to 56 moz, including Silverstream.

  • Gold production expected to be in the range of 815 to 900 koz.