Fresnillo

One of the world’s oldest continuously operating mines; producing 33% of the Group’s total silver in 2015 and generating 20.1% of total adjusted revenue

Overview

Ownership: 100% Fresnillo plc
Location: Zacatecas
Commodity: Silver
Operational since: 1554
Facilities: Underground mine and flotation plant
Workforce: 946 employees, 1,698 contractors
Milling Capacity: 8,000 tpd / 2,640,000 tpy
Average ore grade in reserves: 296 Silver g/t, 0.77 Gold g/t
Total Reserves: 201.6 moz Silver, 525,000 oz Gold
Mine Life: 8 years (2014: 10.2)

Quarterly Production

 

  4Q16 4Q15 % change 3Q16
Ore processed (t) 595,963

620,412

-3.9 587,492
         
Production         
Silver (koz) 3,847 4,058 -5.2 3,732  
Gold (oz) 10,678 10,435 2.3 11,111
Lead (t) 5,766 5,277 9.3 6,017 
Zinc (t) 7,718 6,172 25.0 7,228
         
Ore grades        
Silver (g/t) 221 222 -0.5 217
Gold (g/t) 0.73 0.68 6.4 0.77
Lead % 1.05 0.94 12.2 1.13
Zinc % 1.78 1.46 22.2 1.72

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)

15,612 (FY15) % (22.3) Change

Gold (oz)

34,120 (FY15) % (4.4) Change

Lead (t)

16,248 (FY15) % 17.0 Change

Zinc (t)

19,029 (FY15) % 25.2 Change

Financial highlights

Adjusted Revenue (US$m, FY15)

318.6 % (30.8) Change

Segment Profit (US$m, FY15)

150.0 % (44.8) Change

Capital Expenditure (US$m, FY15)

205.6 % 16.9 Change

Exploration (US$m, FY15)

10.1 % 80.4 Change

Perfomance: 4Q16

  • Full year silver production increased slightly as a result of access to higher grade veins at the San Carlos and San Alberto areas
  • Quarterly silver production decreased vs. 4Q15 due mainly to lower ore processed, reflecting delays in accessing higher grade zones due to slower than expected development rates
  • Full year and quarterly by-product gold production increased 24.3% and 2.3% respectively as a result of higher ore grades. However, quarterly by-product gold production decreased 3.9% vs. 3Q16 due to a lower ore grade
  • Annual and quarterly by-product lead production increased 31.2% and 9.3%, respectively mainly as a result of higher ore grades. Quarterly by-product lead production decreased 4.2% vs. 3Q16 as a result of a lower ore grade which was partially offset by an increase in ore processed and the recovery rate
  • Full year and quarterly by-product zinc production increased 36.1% and 25.0% vs. the same periods of 2015 due to higher ore grades and recovery rates. Similarly, quarterly byproduct zinc production increased 6.8% vs. 3Q16 due to the higher ore grade, ore processed and recovery rate

Objectives: 4Q16

  • Further increase rate of development to 4,800 metres per month
  • Increase in ore throughput of approximately 5% and an average silver ore grade of around 230 g/t