Herradura (incl. DLP)

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

Ownership: Minera Penmont (100% Fresnillo plc)
Location: Sonora
Commodity: Gold
Operational since: 1997
Facilities: Open-pit, heap leach & Merrill-Crowe plants; DLP
Workforce: 1,228 employees, 394 contractors
Average ore grade in reserves: 0.73 g/t Gold
Total Reserves: 5.2 moz Gold
Mine Life: 8.6 (2015: 9.2)

Quarterly Production

  2Q17 2Q16 % change 1Q17
Ore processed (t) 6,551,791 6,313,303 3.8 6,764,370
Total vol. hauled (t) 31,063,542 30,965,379 0.3 30,908,154
         
Production        
Gold (oz) 116,267 119,445 -2.7 107,742
Silver (koz) 104 161 -35.4 118
         
Ore grades        
Gold (g/t) 0.66 0.70 -5.7 0.63
Silver (g/t) 0.87 1.22 -28.5 0.95

History

1991

Drilling commenced

1997

Construction commenced

1998

Commercial production

Production

Gold (oz)

520,366 (FY16) % 30.5 Change

Silver (koz)

638 (FY16) % 21.3 Change

Financial Highlights

Adjusted Revenue (US$m, FY16)

656.1 % 47.1 Change

Segment Profit (US$m, FY16)

369.9 % 68.9 Change

Captial Expenditure (US$m, FY16)

78.8 % (34.3) Change

Exploration (US$m, FY16)

30.7 % 158.0 Change

Perfomance Highlights: (2Q17)

  • Quarterly gold production decreased slightly vs. 2Q16, as a result of the adverse effect of a lower ore grade; mostly offset by the increased volumes of ore processed and to a slightly higher reduction of gold inventories at the leaching pads
  • First half gold production decreased vs. 1H16 due to smaller decrease in gold inventories at the leaching pads compared to the larger one-off reduction in inventory level in 2016, and lower ore grade
  • Quarterly gold production increased 7.9% over 1Q17 as a result of a higher volume recovered due to the irrigation of new mineral layers being deposited on the leaching pads as well as a higher ore grade

Objectives: 2017

  • Advance construction of the 2nd line of the DLP
  • Increase exploration at Centauro