Fresnillo

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

Overview

Ownership: 100% Fresnillo plc
Location: Zacatecas
Commodity: Silver
Operational since: 1554
Facilities: Underground mine and flotation plant
Workforce: 980 employees, 1,703 contractors
Milling Capacity: 8,000 tpd / 2,640,000 tpy
Average ore grade in reserves: 258 Silver g/t, 0.75 Gold g/t
Total Reserves: 205.5 moz Silver, 600 oz Gold
Mine Life: 9.4 years (2015: 8)

Quarterly Production

 

  1Q17 1Q16 % change 4Q16
Ore processed (t) 613,012

615,148

-0.3 595,963
         
Production         
Silver (koz) 4,439 4,288 3.5 3,847  
Gold (oz) 11,325
10,282 10.1 10,678
Lead (t) 5,170 4,704 9.9 5,766
Zinc (t) 6,707 5,139 30.5 7,718
         
Ore grades        
Silver (g/t) 245 236 3.5 221
Gold (g/t) 0.74 0.68 9.4 0.73
Lead % 0.92 0.85 8.8 1.05
Zinc % 1.57 1.25 25.6 1.78

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)

15,865 (FY16) % 1.6 Change

Gold (oz)

42,421 (FY16) % 24.3 Change

Lead (t)

21,326 (FY16) % 31.3 Change

Zinc (t)

25,898 (FY16) % 36.1 Change

Financial highlights

Adjusted Revenue (US$m, FY16)

382.7 % 20.1 Change

Segment Profit (US$m, FY16)

224.4 % 49.5 Change

Capital Expenditure (US$m, FY16)

52.8 % (74.3) Change

Exploration (US$m, FY16)

14.4 % 42.6 Change

Perfomance Highlights: 

  • Full year silver production increased slightly as a result of access to higher grade veins at the San Carlos and San Alberto areas
  • Quarterly silver production decreased vs. 4Q15 due mainly to lower ore processed, reflecting delays in accessing higher grade zones due to slower than expected development rates
  • Full year and quarterly by-product gold production increased 24.3% and 2.3% respectively as a result of higher ore grades. However, quarterly by-product gold production decreased 3.9% vs. 3Q16 due to a lower ore grade
  • Annual and quarterly by-product lead production increased 31.2% and 9.3%, respectively mainly as a result of higher ore grades. Quarterly by-product lead production decreased 4.2% vs. 3Q16 as a result of a lower ore grade which was partially offset by an increase in ore processed and the recovery rate
  • Full year and quarterly by-product zinc production increased 36.1% and 25.0% vs. the same periods of 2015 due to higher ore grades and recovery rates. Similarly, quarterly byproduct zinc production increased 6.8% vs. 3Q16 due to the higher ore grade, ore processed and recovery rate

Objectives: 2017

  • Improve and optimise performance; develop infrastructure at the lower levels sufficient to increase the development rate to 4,800 metres per month by year end
  • San Carlos shaft extension & vertical conveyor installation
  • Improve infrastructure including maintenance areas & ventilation