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

 

  1Q18 1Q17 % change 4Q17
Ore processed (t) 637,410

613,012

4.0 592,358
         
Production         
Silver (koz) 4,336 4,439 -2.3 4,066
Gold (oz) 10,431 11,325 -7.9 9,237
Lead (t) 5,783
5,170 11.9 5,455
Zinc (t) 8,866 6,707 32.2 8,019
         
Ore grades        
Silver (g/t) 232 245 -5.2 236
Gold (g/t) 0.66 0.74 -11.1 0.64
Lead % 1.00 0.92 8.7 1.01
Zinc % 1.90 1.57 21.0 1.94

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

Perfomance Highlights - 1Q18

  • Quarterly silver production slightly decreased vs. 1Q17 as expected due to the higher ore grade areas being processed in the first quarter 2017. This was mitigated by the higher volume of ore processed as a result of increased access to the Candelaria and San Alberto areas.
  • Quarterly silver production increased 6.6% vs. the previous quarter due to the higher volume of ore processed.
  • Quarterly by-product gold production decreased 7.9% vs. 1Q17 mainly as a result of lower ore grade. When compared to 4Q17, by-product gold production increased 12.9% as a result of the higher volume of ore processed and ore grade.
  • Quarterly by-product lead production increased 11.9% vs. 1Q17 as a result of higher ore processed and ore grade. When compared to 4Q17, by-product lead production increased due to a higher volume ore processed.
  • Quarterly by-product zinc production increased 32.2% vs. 1Q17 as a result of higher ore grade, recovery rate and higher ore processed. When compared to the previous quarter, zinc by-product production increased 10.6% as a result of higher ore processed and recovery rate

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
  • Expand flotation area at the beneficiation plant
  • Continue deepening the San Carlos shaft
  • Expected 7-9% increase in silver production (2018)