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
||100% Fresnillo plc
||Underground mine and flotation plant
||980 employees, 1,703 contractors
||8,000 tpd / 2,640,000 tpy
|Average ore grade in reserves:
||258 Silver g/t, 0.75 Gold g/t
||205.5 moz Silver, 600 oz Gold
||9.4 years (2015: 8)
|Ore processed (t)
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
% 1.6 Change
% 24.3 Change
% 17.0 Change
% 36.1 Change
% 20.1 Change
% 49.5 Change
% (74.3) Change
% 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)