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
| |
4Q22
|
3Q22
|
% change
|
4Q21
|
FY22
|
FY21
|
% change
|
|
Ore processed (t)
|
624,105
|
643,945
|
(3.1)
|
528,103
|
2,462,409
|
2,216,467
|
11.1
|
|
Production
Silver (koz)
|
3,605
|
3,394
|
6.2
|
2,665
|
13,609
|
11,986
|
13.5
|
|
Gold (oz)
|
8,314
|
7,970
|
4.3
|
8,648
|
34,432
|
33,743
|
2.0
|
|
Lead (t)
|
5,609
|
5,715
|
(1.9)
|
4,525
|
21,756
|
18,796
|
15.7
|
|
Zinc (t)
|
11,097
|
12,107
|
(8.3)
|
10,025
|
43,343
|
34,530
|
25.5
|
|
Ore grades
Silver (g/t)
|
197
|
181
|
8.8
|
15.9
|
189
|
186
|
1.6
|
|
Gold (g/t)
|
0.58
|
0.54
|
7.4
|
(18.3)
|
0.61
|
0.68
|
(10.3)
|
|
Lead %
|
1.05
|
1.05
|
0.0
|
1.9
|
1.05
|
1.01
|
4.0
|
|
Zinc %
|
2.37
|
2.45
|
(3.3)
|
(10.6)
|
2.38
|
2.20
|
8.2
|
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
4Q22
-
Quarterly silver and gold production increased 6.2% and 4.3% respectively vs. 3Q22 driven by higher ore grades in line with the mine plan, partially offset by a lower volume of ore processed from certain areas of the mine and decreased development ore.
-
Quarterly silver production was up 35.8% vs. 4Q21 mainly due to a higher ore grade and increased volume of ore processed as operating restrictions that affected ore throughput in 2021 were addressed, including: i) the effect of the labour reform in Mexico which resulted in staff vacancies and affected equipment availability (the recruitment and training campaign is now complete and the mine is well staffed for 2023); and ii) the residual impact in 4Q21 of a short circuit of a main power line, which limited water pumping capacity thereby affecting access to some mining areas and haulage levels.
-
Full year silver and gold production increased 13.5% and 2.0% vs. FY21 respectively, primarily due to a higher volume of ore processed driven by the factors mentioned above.
-
Mine development rates slightly decreased quarter on quarter averaging 2,933 metres per month in 4Q22 (3Q22: 3,030 metres per month), with the full year rate averaging 2,929 meters per month, in line with expectations. Works to relocate the tunnel boring machine to a haulage level continued and are expected to be concluded in 1H23. Notwithstanding, development rates are expected to remain at 3,000 metres per month on average in 2023 while an assessment is conducted to determine the optimal rate going forward, based on production levels and updated reserves.
-
Quarterly by-product gold production decreased 3.9% vs. 4Q21 due to a lower ore grade.
- The silver ore grade in 2023 is estimated be in the range of 185-205 g/t, while the gold ore grade is estimated to remain in the range of 0.50-0.70 g/t.
