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.