Fresnillo

One of the world’s oldest continuously operated mines; producing 28% of the Group's total silver in 2017 and generated 18.9% of total adjusted revenue.

Ownership: 100% Fresnillo plc
Location: Zacatecas
Commodity: Silver
Operational since: 1554
Facilities: Underground mine and flotation plant
Workforce: 1,056 employees, 1,676 contractors
Milling Capacity: 8,000 tpd / 2,640,000 tpy
Average ore grade in reserves: 240 Silver g/t, 0.79 Gold g/t
Total Reserves: 179.7 moz Silver, 590 oz Gold
Mine Life: 8.8 years (2016: 9.4)

Quarterly Production

 

4Q18

4Q17

% change

3Q18

Ore processed (t)

571,330

592,358

-3.6

613,794

         

Production

       

Silver (koz)

3,244

4,066

-20.2

3,745

Gold (oz)

10,437

9,237

13.0

10,469

Lead (t)

3,867

5,455

-29.1

4,917

Zinc (t)

6,153

8.019

-23.3

8,096

         

Ore grades

       

Silver (g/t)

199

236

-15.5

211

Gold (g/t)

0.76

0.64

19.9

0.68

Lead %

0.79

1.01

-22.2

0.89

Zinc %

1.52

1.94

-21.2

1.81

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)

16,512 (FY17) % 4.1 Change

Gold (oz)

38,784 (FY17) % (8.6) Change

Lead (t)

20,514 (FY17) % (3.8) Change

Zinc (t)

30,021 (FY17) % 15.9 Change

Financial Highlights

Adjusted Revenue (US$m, FY17)

421.3 % 10.1 Change

Segment Profit (US$m, FY17)

252.2 % 12.5 Change

Capital Expenditure (US$m, FY17)

111.7 % 111.6 Change

Exploration (US$m, FY17)

17.9 % 24.3 Change

2018 - Summary

  • Silver grade of 214 g/t

  • Development rates declined

  • New contractor hired during the year

  • 70,322 metres of in-fill drilling carried out

  • Deepening the San Carlos shaft continued

Performance Targets - 2019

  • Infill drilling programme to continue
  • Management control of the development rates to be enhanced
  • Tunnel boring machine to commence in 2H19
  • Deepening of the San Carlos shaft to continue, expected to be commissioned in 2020
  • Construction of the tailings flotation plant to continue
  • Install flotation cells at the beneficiation plant, 2nd stage of the expansion