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

 

2Q21

1Q21

% change

2Q20

% change

1H21

1H20

% change

Silver (koz)

14,092

11,839

19.0

12,944

8.9

25,931

25,491

1.7

Silverstream (koz)

803

796

1.0

648

23.9

1,599

1,328

20.4

Total Silver (koz)

14,895

12,635

17.9

13,592

9.6

27,530

26,819

2.7

Gold (oz)

200,163

228,193

(12.3)

184,356

8.6

428,356

381,319

12.3

Lead (t)

16,386

15,340

6.8

16,180

1.3

31,726

30,085

5.5

Zinc (t)

27,687

25,881

7.0

26,726

3.6

53,568

49,381

8.5

Operational Highlights - 2Q21


Silver

  • Quarterly attributable silver production of 14.9 moz (including Silverstream), up 17.9% vs. 1Q21 driven by the higher than expected ore grade at San Julián Disseminated Ore Body (DOB) as a result of the positive variation with the geological model. To a lesser extent, the increased tonnage milled at San Julián DOB and a higher ore grade at Saucito also contributed to the increase in quarterly attributable silver production.
  • Quarterly attributable silver production (including Silverstream) increased 9.6% vs. 2Q20 due to a higher ore grade at San Julián DOB, partly offset by a lower ore grade and a volume of ore processed at Saucito.
  • First half attributable silver production of 27.5 moz (including Silverstream), up 2.7% vs. 1H20 due to a higher ore grade at San Julián DOB and, to a lesser extent, the contribution of development ore from Juanicipio, partially offset by a lower ore grade and volume of ore processed at Saucito.

Gold

  • Quarterly attributable gold production of 200.2 koz down 12.3% vs. 1Q21, primarily due to a lower ore grade and volume of ore processed at the Dynamic Leaching Plant at Herradura, mitigated by the higher volume of ore processed and higher ore grade at Noche Buena.
  • Quarterly attributable gold production increased 8.6% vs. 2Q20 due to a higher volume of ore processed at Herradura following Covid-19 related working restrictions last year which resulted in lower volumes of ore deposited at our open pits during 2Q20 and to a lesser extent, a higher ore grade at Saucito and increased volume of ore processed at Noche Buena. This was partially offset by a lower ore grade at Ciénega.
  • First half attributable gold production of 428.4 koz, up 12.3% vs. 1H20 primarily due to the higher volume of ore processed at Herradura and, to a lesser extent, a higher ore grade at Saucito. This was partially offset by a lower ore grade at Ciénega and a lower ore grade and recovery rate at Noche Buena.

By-products

  • Quarterly attributable by-product lead production increased 6.8% vs. 1Q21, driven primarily by a higher ore grade and volume of ore processed at San Julián DOB.
  • Quarterly attributable by-product zinc production increased 7.0% vs. 1Q21 due to a higher ore grade at Fresnillo and a higher volume of ore processed at San Julián DOB.
  • Quarterly attributable by-product lead and zinc production increased 1.3% and 3.6% vs. 2Q20 respectively primarily due to higher ore grades at both Saucito and San Julián DOB, partially offset by lower ore grades at Fresnillo.
  • First half attributable by-product lead and zinc production increased 5.5% and 8.5% vs. 1H20 respectively primarily due to higher ore grades at both Saucito and San Julián DOB, partly offset by lower ore grades at both Fresnillo and Ciénega.

Development Projects

  • Continued progress was achieved on the construction of the Juanicipio flotation plant, with the assembly of flotation cells and filters concluded during the quarter. Commissioning of the plant by 4Q21 remains on track.
  • As previously reported, the connection of the new circuit to the Fresnillo flotation plant was completed in 1Q21, and the programming of the control loop system was concluded in 2Q21.

2021 Outlook

We remain on track to meet our 2021 full year guidance of 53.5 to 59.5 moz of silver (including Silverstream) and 675 to 725 koz of gold. We are assessing any potential impact that might result from the implementation of the new law restricting the ability to subcontract labour in Mexico. However, these new measures are not expected to impact second half production.