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 25.3% of the Group's total silver (2022) and generated 18.3% of total adjusted revenue.
| Ownership: |
100% Fresnillo plc |
| Location: |
Zacatecas |
| Commodity: |
Silver |
| Operational since: |
1554 |
| Facilities: |
Underground mine and flotation plant |
| Workforce: |
1,617 employees, 2,433 contractors |
| Milling Capacity: |
8,000 tpd / 2,640,000 tpy |
| Average ore grade in reserves: |
242 Silver (g/t), 0.77 Gold (g/t) |
| Total Reserves: |
91.6 Silver (moz), 291 Gold (oz) |
| Mine Life: |
4.8 at 7,350 tpd (2021: 6.0), (2,424k tpy) |
Mine Production
| |
1Q23
|
4Q22
|
% change
|
1Q22
|
FY22
|
FY21
|
% change
|
|
Ore processed (t)
|
668,366
|
624,105
|
7.1
|
575,499
|
2,462,409
|
2,216,467
|
11.1
|
|
Production
Silver (koz)
|
3,557
|
3,606
|
(1.4)
|
3,015
|
13,609
|
11,986
|
13.5
|
|
Gold (oz)
|
8,750
|
8,314
|
5.2
|
8,480
|
34,432
|
33,743
|
2.0
|
|
Lead (t)
|
5,651
|
5,609
|
0.7
|
4,487
|
21,756
|
18,796
|
15.7
|
|
Zinc (t)
|
12,094
|
11,097
|
9.0
|
9,381
|
43,343
|
34,530
|
25.5
|
|
Ore grades
Silver (g/t)
|
184
|
197
|
(6.8)
|
179
|
189
|
186
|
1.6
|
|
Gold (g/t)
|
0.57
|
0.58
|
(2.4)
|
0.64
|
0.61
|
0.68
|
(10.3)
|
|
Lead %
|
1.00
|
1.05
|
(5.2)
|
0.99
|
1.05
|
1.01
|
4.0
|
|
Zinc %
|
2.42
|
2.37
|
1.9
|
2.24
|
2.38
|
2.20
|
8.2
|
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)
13,609
(FY22)
% 13.5 Change
Gold
(oz)
34,432
(FY22)
% 2.0 Change
Lead
(t)
21,756
(FY22)
% 15.7 Change
Zinc
(t)
43,343
(FY22)
% 25.5 Change
Financial Highlights
Adjusted Revenue
(US$m, FY22)
475.8
% 3.5 Change
Segment Profit
(US$m, FY22)
197.0
% (12.3) Change
Capital Expenditure
(US$m, FY22)
106.6
% (1.6) Change
Exploration
(US$m, FY22)
20.8
% 123.7 Change
1Q23
-
Quarterly silver production slightly decreased 1.4% vs. 4Q22 mainly due to a lower ore grade as a greater portion of ore was extracted from the western areas of the mine with lower silver ore grade but higher base metal content. This was mitigated by the higher volume of ore processed from these areas.
-
Quarterly silver production increased 18.0% vs. 1Q22 mainly as a result of the higher volume of ore processed from the Candelaria, San Alberto, San Ricardo, San Mateo and San Carlos areas and, to a lesser extent, the higher ore grade.
-
Mine development rates increased quarter on quarter to an average of 3,105m per month in 1Q23 (4Q22: 2,933m per month), primarily due to availability of equipment and higher productivity of some contractors and unionised personnel.
-
Quarterly by-product gold production increased 5.2% and 3.2% vs. 4Q22 and 1Q22 respectively, mainly driven by the higher volume of ore processed, partially offset by the lower ore grade.
-
The silver ore grade in 2023 is expected to remain in the range of 185-205 g/t, while the gold ore grade is expected to remain in the range of 0.50-0.70 g/t.
