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 24% of the Group's total silver in 2019 and generating 15.9% of total adjusted revenue.

Ownership: 100% Fresnillo plc
Location: Zacatecas
Commodity: Silver
Operational since: 1554
Facilities: Underground mine and flotation plant
Workforce: 1,183 employees, 2,274 contractors
Milling Capacity: 8,000 tpd / 2,640,000 tpy
Average ore grade in reserves: 234 Silver (g/t), 0.76 Gold (g/t)
Total Reserves: 149.3 Silver (moz), 483 Gold (oz)
Mine Life: 7.5 years (2018: 8.6)

Quarterly Production

 

4Q19

3Q19

% change

4Q18

Ore processed (t)

618,940

648,646

-4.6

571,330

         

Production

       

Silver (koz)

3,192

3,408

-6.3

3,244

Gold (oz)

11,723

15,601

-24.9

10,437

Lead (t)

5,665

7,037

-19.5

3,867

Zinc (t)

9.348

10,225

-8.6

6,153

         

Ore grades

       

Silver (g/t)

181

183

-1.1

199

Gold (g/t)

0.82

0.99

-17.2

0.76

Lead %

1.08

1.24

-12.9

0.79

Zinc %

2.10

2.14

-1.9

1.52

Annual Production

AR18 FRES Mine Production

AR18 FRES Mine Financial Performance

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)

13,007 (FY19) % (14.0) Change

Gold (oz)

52,259 (FY19) % 23.6 Change

Lead (t)

21,472 (FY19) % 9.4 Change

Zinc (t)

31,530 (FY19) % 1.4 Change

Financial Highlights

Adjusted Revenue (US$m, FY19)

361.7 % (4.4) Change

Segment Profit (US$m, FY18)

211.5 % (16.1) Change

Capital Expenditure (US$m, FY19)

172.8 % 42.7 Change

Exploration (US$m, FY19)

13.3 % (26.9) Change

FY19

  • Operational action plan developed and implemented

  • Development rates improved - 3,026m/m

  • Peruvian contractor hired at year end

  • Tunnel Boring Machine (TBM) commissioned at year end

  • 126,000 metres of infill drilling carried out

  • Deeping of the San Carlos shaft continued, on track to be concluded end of 2020

2020 Priorities

  • Infill drilling programme to continue (84-90 mts).
  • Development rates to be improved; target 3,500 - 3,800 m/m by year end
  • Dilution expected to decrese to 34%
  • Continue implementing initiatives to increase productivity and efficiency
  • Ramp up TBM in 1Q20 and targeting and average 300 m/m thereafter
  • Conclude the deepening of the San Carlos shaft by year end; access 56% of Fresnillo reserves
  • Commission the tailings flotation plant in 2H20 (Pyrites plant project phase II)
  • Conclude 2nd stage of beneficiation plant expansion, installation of flotation cells