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
| 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
| |
2Q17 |
2Q16 |
% change |
1Q17 |
| Ore processed (t) |
645,479 |
574,489
|
12.4 |
613,012 |
| |
|
|
|
|
| Production |
|
|
|
|
| Silver (koz) |
4,491 |
3,997 |
12.4 |
4,439 |
| Gold (oz) |
9,403 |
10,349 |
-9.1 |
11,325 |
| Lead (t) |
4,982 |
4,839 |
3.0 |
5,170 |
| Zinc (t) |
7,927 |
5,813 |
36.4 |
6,707 |
| |
|
|
|
|
| Ore grades |
|
|
|
|
| Silver (g/t) |
235 |
232 |
1.3 |
245 |
| Gold (g/t) |
0.59 |
0.72 |
-18.3 |
0.74 |
| Lead % |
0.86 |
0.94 |
-8.4 |
0.92 |
| Zinc % |
1.69 |
1.48 |
14.0 |
1.57 |
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)
% 17.0 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)
224.2
% 49.5 Change
Capital Expenditure
(US$m, FY16)
52.8
% (74.3) Change
Exploration
(US$m, FY16)
14.4
% 42.6 Change
Perfomance Highlights: (2Q17)
- The turnaround plan continues to show positive signs as volume of ore processed increased for the fourth consecutive quarter
- Quarterly and year to date silver production increased 12.4% and 7.8% respectively, remaining on track to deliver expected 7-10% increase in silver production for the year
- Silver ore grade for the full year still expected to average 230 g/t
- Quarterly by-product gold production decreased vs. 2Q16 and 1Q17 mainly due to the lower ore grade and, to a lesser extent, lower recovery rate
- Year to date by-product gold production remained at similar levels compared to 1H16
- Quarterly and first half by-product lead production increased vs. 2Q16 and 1H16 as a result of higher ore processed
- Quarterly by-product lead production decreased 3.6% vs. 1Q17 as a result of lower ore grade and recovery rate
- Quarterly and first half by-product zinc production increased vs. the comparable periods of 2016 and previous quarter due to higher ore grades, recovery rates and ore processed
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
