Noche Buena

Acquired in 2008 from Seabridge as part of the Group’s district consolidation strategy; commenced operations as an open-pit gold mine in 2012. Located in the Herradura District 23 kilometres from the Herradura mine. Noche Buena produced 18% of the Group’s total gold in 2018 and generated over 9% of total Adjusted revenue.

Ownership: Minera Penmont (100% Fresnillo plc)
Location: Sonora
Commodity: Gold
Operational since: 2012
Facilities: Open-pit mine, heap leach and Merrill-Crowe plant
Workforce: 513 employees, 553 contractors
Mine Life: 1.9 years (2017: 2.8)

Quarterly Production

  1Q19 1Q18 % change 4Q18
Ore processed (t) 2,911,779 4,414,790 -34.0 4,395,527
Total vol. hauled (t) 12,980,551 20,521,239 -36.7 17,220,712
         
Production        
Gold (oz) 30,134 42,735 -29.5 36,705
Silver (oz) 12 19 -35.1 9
         
Ore grades        
Gold (g/t) 0.50 0.52 -3.9 0.50
Silver (g/t) 0.22 0.22 -1.3 0.09

AR18 Noche Buena Mine Production

AR18 Noche Buena Financial Performance

History

2008

Acquired through Penmont JV

2009

Exploration commenced

2011

Construction commenced

Production

Gold (oz)

167,208 (FY18) % (2.9) Change

Silver (koz)

52 (FY18) % 67.7 Change

Ore grade (g/t)

0.52 (FY18) % 0.0 Change

Ore dep. (kt)

18,196 (FY18) % 2.1 Change

Financial Highlights

Adjusted Revenue (US$m, FY18)

211.4 % (1.9) Change

Segment Profit (US$m, FY18)

85.9 % 13.8 Change

Capital Expenditure (US$m, FY18)

50.2 % 168.4 Change

Exploration (US$m, FY18)

3.0 % (47.4) Change

Highlights - 1Q19

  • Quarterly gold production decreased 29.5% vs. 1Q18 due to a lower volume of ore processed, but in accordance to the mine plan, and to a lesser extent, lower ore grade. This was mitigated by a higher speed of recovery as ore was deposited in new areas of the leaching pads at a lower altitude.

  • Similarly, gold production decreased 17.9% vs. 4Q18 resulting from a lower volume of ore processed, mitigated by a higher overall speed of recovery.

  • Expected gold ore grade in 2019 remains at approximately 0.55 g/t.

2018 - Summary

  • Contained costs

  • Production was higher than expected due to a higher ore grade & higher volume of ore processed

  • Continued to explore areas of influence, which continued to show limited upside

  • Construction of a Carbon in Column process facility commenced

Performance Targets - 2019

  • Maximise production, maintain comparative low cash cost profile
  • Complete construction of leaching pad number 7
  • Implement the activated carbon project for the Merrill Crowe plant tailings to increase recovery
  • Prepare mine closure plan