Saucito

Including the Saucito II expansion, Saucito is one of the Group’s most important assets; Saucito contributed 32% to total silver production in 2018 and generated 21.9% of total adjusted revenue.

Ownership: 100% Fresnillo plc
Location: Zacatecas 8km SW of the Fresnillo mine
Commodity: Silver, Gold
Operational since: 2011
Facilities: Underground mine and flotation plant
Workforce: 836 employees, 2,452 contractors
Milling Capacity : 7,800 tpd/2,600,000 tpy
Average ore grade in reserves: 261 g/t Silver, 1.39 g/t Gold
Mine Life: 5.3 years (2017: 5.8)

Quarterly Production

 

1Q19

1Q18

% change

4Q18

Ore processed (t)

665,650

673,545

-1.2

693,608

         

Production

       

Silver (koz)

4,332

4,832

-10.3

4,890

Gold (oz)

18.729

16,880

11.0

22,932

Lead (t)

5,877

3,183

84.6

8,362

Zinc (t)

9,110

3,916

132.6

10,132

         

Ore grades

       

Silver (g/t)

243

260

-6.6

260

Gold (g/t)

1.13

1.12

1.0

1.3

Lead %

1.03

0.57

81.3

1.36

Zinc %

1.94

0.96

102.3

2.21

Annual Silver Production

AR18 Saucito Mine Production

AR18 Saucito Financial Performance

History

2004

Drilling commenced

2009

Construction commenced

2011

Commercial production 1H11

Production

Silver (koz)

19,781 (FY18) % (6.8) Change

Gold (oz)

86,092 (FY18) % 23.1 Change

Lead (t)

22,662 (FY18) % 27.9 Change

Zinc (t)

29,506 (FY18) % 45.0 Change

Financial Highlights

Adjusted Revenue (US$m, FY18)

492.0 % (2.4) Change

Segment Profit (US$m, FY18)

274.5 % (12.9) Change

Captial Expenditure (US$m, FY18)

148.4 % 11.0 Change

Exploration (US$m, FY18)

36.6 % 40.2 Change

Highlights - 1Q19

  • Quarterly silver production decreased 10.3% vs. 1Q18 in line with expectations, driven by a lower ore grade as a result of the gradual depletion of higher ore grade areas. Expected silver ore grade for 2019 continues to be in range of 210-220 g/t.

  • Similarly, quarterly silver production decreased 11.4% vs. 4Q18 as a result of a lower silver ore grade and a decrease in the volume of ore processed.

  • Quarterly by-product gold production increased 11.0% vs. 1Q18 resulting from a higher recovery rate. However, when compared to the previous quarter, by-product gold production decreased 18.3% resulting from a lower ore grade, and to a lesser extent, lower volume of ore processed.

  • Quarterly by-product lead production increased 84.6% vs. 1Q18 due to a higher ore grade. When compared to 4Q18, by-product lead production was 29.7% lower, driven by a lower ore grade.

  • First quarter by-product zinc production increased 132.6% vs. 1Q18 primarily due to a higher ore grade and, to a lesser extent, higher recovery rate. Against the previous quarter, by-product zinc production decreased 10.1% resulting mainly from a lower ore grade.

Summary - 2018

  • FY18 silver grade of 257 g/t

  • Development rates lower year on year

  • 107,111 metres of infill drilling carried out

  • Concluded construction of the Pyrites plant

  • Initiated Jarillas shaft deepening

Performance Targets - 2019

  • Intensify parametric drilling and continue infill drilling programme
  • Targeting development rate increase of 20% by YE, prioritising the deepening of 5 main ramps in the Jarillas Vein
  • Continue deepening of the Jarillas shaft
  • Dilution expected to decrease 5-7% in 2019
  • Expect further improvements in contractor performance