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