Herradura

One of Mexico’s largest open-pit gold mines; producing 52.0% of the Group's total gold (2017) and generating 27.2% of total adjusted revenue.

Ownership: Minera Penmont (100% Fresnillo plc)
Location: Sonora
Commodity: Gold
Operational since: 1997
Facilities: Open-pit, heap leach & Merrill-Crowe plants; DLP
Workforce: 1,335 employees, 458 contractors
Average ore grade in reserves: 0.79 Gold (g/t)
Total Reserves: 7.7 Gold (moz)
Mine Life: 11.6 (2016: 8.6)

Quarterly Production

 

3Q18

3Q17

% change

2Q18

Ore processed (t)

5,859,579

6,337,573

-7.5

5,605,427

Total vol. hauled (t)

29,718,422

33,433,070

-11.1

33,560,118

         

Production

       

Gold (oz)

109,630

131,738

-16.8

117,886

Silver (koz)

492

157

213.4

363

         

Ore grades

       

Gold (g/t)

0.76

0.75

1.0

0.76

Silver (g/t)

3.05

1.20

152.9

2.60

History

1991

Drilling commenced

1997

Construction commenced

1998

Commercial production

Production

Gold (oz)

473,638 (FY17) % (9.0) Change

Silver (koz)

551 (FY17) % (13.6) Change

Financial Highlights

Adjusted Revenue (US$m, FY17)

606.8 % (7.5) Change

Segment Profit (US$m, FY17)

355.6 % (3.9) Change

Captial Expenditure (US$m, FY17)

153.2 % 94.4 Change

Exploration (US$m, FY17)

27.1 % (11.7) Change

Perfomance Highlights - 3Q18

  • Quarterly gold production decreased 16.8% vs. 3Q17 as a result of: i) a higher than normal speed in the recovery rate due to new layers at the leaching pads which allowed for a rapid decrease in inventories in 3Q17 compared to 3Q18 where normal conditions prevailed; and ii) the lower grade and volume of ore deposited at the leaching pads in 3Q18 resulting from heavy rains causing haulage equipment to temporarily be stopped. These adverse effects were mitigated by a higher ore grades which were processed at the dynamic leaching plant. The heavy rains have continued in October, temporarily impacting operations at the Merrill Crowe plant as electric lines were affected.

  • Quarterly gold production decreased 7.0% vs. 2Q18 as a result of the lower speed of the rate of recovery at the leaching pads in 3Q18 when ore was deposited in a phase of the leaching pads with higher altitude increasing the residence time of the solution in the pads. This adverse effect was mitigated by the higher volume of ore processed.

  • Year to date gold production remained at similar levels, down 0.8% vs. YTD17 due to a lower volume of ore processed, mitigated by a higher ore grade and recovery rate.

  • Expected gold ore grade for the full year continues to be c. 0.75 g/t.

Performance Highlights - 1H18

  • Consistently higher observed resources on the leaching pads lead to inventory re-statement due to higher recovery rates

  • Higher speed of recovery due to an intensive targeted irrigation programme and better dilution

Performance Targets - 2H18

  • Continue inventory analysis with an aim to conclude the process by year end
  • Complete the installation of vibrating screens to increase gold recovery by 3-4%
  • Drilling and exploration to continue at Centauro Deep and areas of influence