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
