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

  3Q19 2Q19 % change 3Q18
Ore processed (t) 3,215,167 3,663,549 -12.2 4,834,512
Total vol. hauled (t) 11,447,273 13,135,058 -12.8 20,489,682
         
Production        
Gold (oz) 37,570 35,252 6.6 42,460
Silver (oz) 14 17 -13.9 5
         
Ore grades        
Gold (g/t) 0.58 0.56 4.9 0.52
Silver (g/t) 0.25 0.22 13.2 0.05

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

1H19

  • Contained costs.

  • Construction of leaching pad 7 continued.

  • Commissioned the Carbon in Column process facility.

  • Mine closure plan advanced.

3Q19

  • Quarterly gold production increased 6.6% vs. 2Q19 due to higher ore grade resulting from the increased mining in deeper areas of the pit, and an improved recovery rate driven by the larger irrigation area at the 7th leaching pad. This was partly offset by the expected lower volume of ore processed.

  • Quarterly and year to date production decreased 11.5% and 21.1% vs. 3Q18 and YTD18, respectively due to a lower volume of ore processed, but in accordance with the mine plan, mitigated by higher ore grades and recovery rates.

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

2H19 Priorities

  • Maximise production, maintain comparative low cash cost profile.
  • Complete construction of leaching pad number 7, expected by year end.
  • Continue to prepare the mine for closure.