Fresnillo

One of the world’s oldest continuously operated mines, the Fresnillo mine has been producing silver for more than five centuries; and recently producing 22.6% of the Group's total silver in 2021 and generating 16.1% of total adjusted revenue.

Ownership: 100% Fresnillo plc
Location: Zacatecas
Commodity: Silver
Operational since: 1554
Facilities: Underground mine and flotation plant
Workforce: 1,453 employees, 2,310 contractors
Milling Capacity: 8,000 tpd / 2,640,000 tpy
Average ore grade in reserves: 265 Silver (g/t), 0.76 Gold (g/t)
Total Reserves: 99.5 Silver (moz), 305 Gold (oz)
Mine Life: 6.0 at 6,616 tpd (2020: 6.6), (2,216k tpy)


Mine Production

 

2Q22

1Q22

% change

2Q21

1H22

1H21

% change

Ore processed (t)

618,860

575,499

7.5

579,863

1,194,359

1,141,223

4.7

Production

Silver (koz)



3,595



3,015



19.2



3,348



6,609



6,608



0.0

Gold (oz)

9,668

8,480

14.0

8,736

18,148

17,112

6.1

Lead (t)

5,644

4,787

17.9

4,875

10,432

9,367

11.4 

Zinc (t)

10,758

9,381

14.7

8,404

20,139

15,546

29.5 

Ore grades

Silver (g/t)



197



179



10.1



201



189



202



(6.5)

Gold (g/t)

0.69

0.64

7.0

0.69

0.67

0.69

(3.3)

Lead %

1.10

0.99

10.7

0.99

1.04

0.97

7.8

Zinc %

2.46

2.24

9.9

2.07

2.35

1.95

20.5

History

1961

Peñoles acquires 60% interest in Cia Fresnillo

1996

Peñoles acquires remaining 40% interest in Cia Fresnillo

2004

Mill capacity is increased from 4,500 to 7,000 tpd

Production

Silver (koz)

11,986 (FY21) % (8.2) Change

Gold (oz)

33.743 (FY21) % (12.1) Change

Lead (t)

18,796 (FY21) % (11.8) Change

Zinc (t)

34,530 (FY21) % (1.2) Change

Financial Highlights

Adjusted Revenue (US$m, FY21)

459.5 % 12.8 Change

Segment Profit (US$m, FY21)

224.6 % 17.6 Change

Capital Expenditure (US$m, FY21)

108.3 % 17.0 Change

Exploration (US$m, FY21)

9.3 % 1.1 Change

2Q22

  • Quarterly silver production was up 19.2% vs. 1Q22 due to a higher ore grade and a higher volume of ore processed having regained access to some higher grade mining areas during the previous quarter, helping to increase operational flexibility.

  • Quarterly silver production increased 7.4% vs. 2Q21 driven by a higher volume of ore processed in 2Q22 as ore throughput was affected in 2Q21, when a short circuit of a main power line occured, limiting the water pumping capacity thereby affecting access to some mining areas and limiting haulage capabilities. This was partially offset by the slightly lower ore grade due to limited access to some areas with higher ore grades as we continued to experience relatively limited operational flexibility.

  • First half silver production remained flat vs. 1H21 due to the expected lower ore grade in line with the mining sequence.

  • Mine development rates remained at similar levels quarter on quarter averaging 2,900m per month in 2Q22 (1Q22: 2,866m per month). We remain confident that we can maintain a rate of 2,900 to 3,100 m per month on average as previously stated over the coming months.

  • Quarterly by-product gold production increased 14.0% vs. 1Q22 driven by a higher volume of ore processed and ore grade.

  • Quarterly and year to date by-product gold production increased 10.7% and 6.1% vs. 2Q21 and 1H21 respectively, due to a higher volume of ore processed and a higher recovery rate.
  • The silver ore grade in 2022 is expected to remain in the range of 190-210 g/t, while the gold ore grade is expected to remain in the range of 0.55-0.70 g/t.