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

Ownership: 100% Fresnillo plc
Location: Zacatecas
Commodity: Silver
Operational since: 1554
Facilities: Underground mine and flotation plant
Workforce: 980 employees, 1,703 contractors
Milling Capacity: 8,000 tpd / 2,640,000 tpy
Average ore grade in reserves: 258 Silver g/t, 0.75 Gold g/t
Total Reserves: 205.5 moz Silver, 600 oz Gold
Mine Life: 9.4 years (2015: 8)

Quarterly Production


  4Q17 4Q16 % change 3Q17
Ore processed (t) 592,358


-0.6 596,544
Silver (koz) 4,066 3,847 5.7 3,516 
Gold (oz) 9,237 10.678 -13.5 8,819
Lead (t) 5,455
5,766 -5.4 4,905
Zinc (t) 8,019 7,718 3.9 7,368
Ore grades        
Silver (g/t) 236 221 6.6 202
Gold (g/t) 0.64 0.73 -12.8 0.61
Lead % 1.01 1.05 -3.4 0.91
Zinc % 1.94 1.78 8.5 1.70



Peñoles acquires 60% interest in Cia Fresnillo


Peñoles acquires remaining 40% interest in Cia Fresnillo


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


Silver (koz)

15,865 (FY16) % 1.6 Change

Gold (oz)

42,421 (FY16) % 24.3 Change

Lead (t)

21,326 (FY16) % 17.0 Change

Zinc (t)

25,898 (FY16) % 36.1 Change

Financial Highlights

Adjusted Revenue (US$m, FY16)

382.7 % 20.1 Change

Segment Profit (US$m, FY16)

224.2 % 49.5 Change

Capital Expenditure (US$m, FY16)

52.8 % (74.3) Change

Exploration (US$m, FY16)

14.4 % 42.6 Change

Perfomance Highlights - 4Q17

  • FY silver production increased 4.1% (vs 2016), as a result of higher volumes of ore processed from Candelaria and San Alberto areas and to a lesser extent, higher ore grade resulting from access to certain high grade veins at San Alberto and San Carlos after measures taken to solve certain operational issues.
  • 2017 silver production below guidance principally as a result of limited access to higher ore grade areas due to the delays in development, lower productivity from on site contracting personnel and mining equipment failures which impeded long-hole drilling activities. Fresnillo is implementing a decisive plan to stabilise the mine’s ore grade and throughput. This includes: i) accelerating development of deeper ramps; ii) preparation of stopes; iii) improving equipment maintenance; iv) operation of the vertical conveyor reducing truck haulage; and iv) tightening supervision to improve contractors’ performance.
  • Hired two new contractors, which together with the operational changes above, we expect will result in an increase in the development rate.
  • Grades for 2017 marginally above revised guidance of 220-225 g/t and expected silver ore grade approx. 235 g/t (2018).
  • Quarterly silver production increased vs. 4Q16 due to higher ore grade resulting from implementation of the turnaround plan and better contractor performance at development areas.
  • Compared to previous quarter, 4Q17 silver production increased 15.6% primarily as a result of the higher ore grade (+16.7%) resulting from regaining access to high grade veins at San Alberto and San Carlos.
  • Annual and quarterly by-product gold production decreased vs. 2016 and 4Q16 mainly as a result of lower ore grade. 4Q17 gold production increased 4.7% vs. 3Q17 as a result of higher ore grade.
  • 2017 by-product lead production decreased (vs 2016) as a result of lower ore grade, partially offset by the higher volume of ore processed. Quarterly byproduct lead production decreased vs. 4Q16 due to the lower ore grade and recovery rate.
  • Quarterly by-product lead production increased 11.2% vs. 3Q17 as a result of higher ore grade.
  • Annual by-product zinc production increased 15.9% vs. 2016 as a result of higher ore grade and increased volume of ore processed. Quarterly by-product zinc production increased vs. 4Q16 as a result of a higher ore grade. Similarly, by-product zinc production for 4Q17 increased vs. 3Q17 as a result of a higher ore grade, which was offset by the lower recovery rate.
  • 2018 lead and zinc ore grades are expected to be 0.96% and 1.77% respectively.

Perfomance Highlights - FY17

  • Installed new zinc thickener at the beneficiation plant
  • Continue to prepare for the deepening of the San Carlos shaft

Performance Targets - 2018

  • Continue stabilising ore grades and ore throughput
  • Maintain development rates short term, whilst increasing them long term
  • Carry out intensive in-fill deep drilling to increase certainty in operational planning
  • Expected 7-9% increase in silver production (2018)