Herradura

One of Mexico’s largest open pit gold mines, producing 52% of the Group’s total gold (FY15) generating 28.1% of total adjusted revenue

Overview

Ownership: Minera Penmont (100% Fresnillo plc)
Location: Sonora
Commodity: Gold
Operational since: 1997
Facilities: Open-pit, heap leach & Merrill-Crowe plants; DLP
Workforce: 1,237 employees, 409 contractors
Average ore grade in reserves: 0.79 g/t Gold
Total Reserves: 5.34 moz Gold
Mine Life: 9.2 years (2014: 9.4)

Quarterly Production

  4Q16 4Q15 % change 3Q16
Ore processed (t) 6,325,705 6,616,148 -4.4 6,208,336
Total vol. hauled (t) 29,821,575 30,115,575 -1.0 28,255,782
         
Production        
Gold (oz) 148,549 115,127 29.0 123,258
Silver (koz) 173 166 4.2 161
         
Ore grades        
Gold (g/t) 0.68 0.72 -5.4 0.78
Silver (g/t) 1.13 1.23 -8.1 1.27

History

1991

Drilling commenced

1997

Construction commenced

1998

Commercial production

Production

Gold (oz)

398,866 (FY15) % 50.2 Change

Silver (koz)

526 (FY15) % (22.5) Change

Financial highlights

Adjusted Revenue (US$m, FY15)

445.1 % 29.9 Change

Segment Profit (US$m, FY15)

219.0 % 28.6 Change

Captial Expenditure (US$m, FY15)

119.7 % 89.7 Change

Exploration (US$m, FY15)

11.9 % (19.0) Change

Perfomance: 4Q16

  • Full year gold production increased as a result of the reduction of inventories to 72 koz at Herradura. This reduction was possible by the commissioning of the second Merrill Crowe Plant in the DLP (Dynamic Leaching Plant) in 4Q15, which enabled the elimination of the bottleneck in processing volumes of rich solution coming from the leaching pads and the DLP
  • Quarterly gold production increased vs. both 4Q15 and 3Q16 mainly due to the reduction of inventories and, to a lesser extent, a higher overall average speed of recovery resulting from the increase in the use of lime that improved the leaching reaction and more than compensated for the lower ore grade

Objectives (4Q16)

  • Average gold ore grade is expected to be around 0.72 g/t in 2017