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.