Herradura

One of Mexico’s largest open-pit gold mines; producing 55.3% of the Group’s total gold (2020) and generating 29.9% of total adj. rev.

Ownership: Minera Penmont (100% Fresnillo plc)
Location: Sonora
Commodity: Gold
Operational since: 1997
Facilities: Open-pit, heap leach & Merrill-Crowe plants; two dynamic leaching plants (DLP)
Workforce: 1,629 employees, 1,129 contractors
Mine Life: 12.6 years (2019: 11.7)

Quarterly Production

 

2Q21

1Q21

% change

2Q20

Ore processed (t)

5,482,544

6,011,862

(8.8)

3,283,104

Total vol. hauled (t)

33,153,978

33,501,176

(1.0)

18,942,659

         

Production

       

Gold (oz)

108,990

149,175

(26.9)

95,253

Silver (koz)

227

303

(25.0)

300

         

Ore grades

       

Gold (g/t)

0.68

0.92

(26.2)

0.90

Silver (g/t)

1.74

2.30

(24.2)

3.28

Annual Production

AR20 Herradura Mine Kpis 

12020 reserves as of 31 May 2020.  22020 resources as of 31 May 2020

AR20 Herradura Mine Financial Performance 

History

1991

Drilling commenced

1997

Construction commenced

1998

Commercial production

Production

Gold (oz)

425,288 (FY20) % (11.9) Change

Silver (koz)

1,306 (FY20) % (16.5) Change

Financial Highlights

Adjusted Revenue (US$m, FY20)

778.9 % 12.2 Change

Segment Profit (US$m, FY20)

400.5 % 83.1 Change

Captial Expenditure (US$m, FY20)

30.2 % (19.5) Change

Exploration (US$m, FY20)

17.6 % (37.4) Change

2Q21

  • Quarterly gold production decreased 26.9% vs. 1Q21 due to a lower ore grade processed at the Dynamic Leaching Plant (DLP), in line with our expectations, and a decrease in the volume of ore processed as a result of the temporary stoppage of the DLP in April in order to change screens and grids. This was mitigated by improved recovery rates.

  • Quarterly gold production increased 14.4% vs. 2Q20 due to a higher volume of ore deposited in 2Q21 as Covid-19 operational restrictions resulted in lower volumes of ore deposited during 2Q20. This was partially offset by a lower ore grade when compared to 2Q20, when we had access to a higher ore grade area, and a slower recovery rate.

  • First half gold production increased 25.5% vs. 1H20 due to a higher volume of ore processed, partially offset by the lower recovery rate resulting from a slower speed of recovery on the leaching pads.

  • The gold ore grade in 2021 is expected to remain in the range of 0.70-0.75 g/t, despite the ore grade in 1H21 being above this guidance.

2021 Objectives

  • Conclude the Carbon in Column project.
  • Advance the construction of the 14th leaching pad.
  • Improve dust suppression at the loading areas.
  • Hire additional personnel to increase utilisation rate of our haulage fleet.
  • Maintain comparative costs.
  • Reduce maintenance times.