Saucito

One of our most important assets; contributing 23.4% to total silver production in 2021 and generated 21.0% of total adjusted rev.

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: 1,015 employees, 2,363 contractors
Milling Capacity : 7,800 tpd/2,600,000 tpy
Mine Life: 7.3 (2020: 5.2)

Quarterly Production

     

  1Q22 4Q21 % change 1Q21
Ore processed (t) 495,419 558,101 (11.2) 650,884
         
Production        
Silver (koz) 2,738 2,990 (8.4) 3,148
Gold (oz) 16,388 17,719 (7.5) 26,819
Lead (g/t) 4,264 4,272 (0.2) 7,841
Zinc (g/t) 7,299 6,672 9.4 11,848
Ore grades        
Silver (g/t) 193 186 3.5 177
Gold (g/t) 1.29 1.26 2.0 1.65
Lead % 0.98 0.90 9.5 1.40
Zinc % 1.81 1.60 13.2 2.48

History

2004

Drilling commenced

2009

Construction commenced

2011

Commercial production 1H11

Production

Silver (koz)

12,439 (FY21) % (19.9) Change

Gold (oz)

88,440 (FY21) % 4.2 Change

Lead (t)

24,615 (FY21) % (13.9) Change

Zinc (t)

37,469 (FY21) % (12.4) Change

Financial Highlights

Adjusted Revenue (US$m, FY21)

594.5 % 0.2 Change

Segment Profit (US$m, FY21)

321.3 % (1.2) Change

Captial Expenditure (US$m, FY21)

101.2 % 37.9 Change

Exploration (US$m, FY21)

18.7 % 34.5 Change

1Q22

  • Quarterly silver production decreased 8.4% vs. 4Q21 as a result of a lower volume of ore processed due to the aforementioned impact of the labour reforms and Covid-related absenteeism. As explained in the prior quarter, we expect some variability in the ore grade and reduced volumes of ore to be processed in 2022 driven by the need for additional development of the mine in order to recapture operational flexibility following high levels of localised seismicity.

  • Quarterly silver production decreased 13.0% vs. 1Q21 for reasons described above, mitigated by a higher ore grade and recovery rate.
  • We have continued our recruitment and training campaigns at the mine with the target of gradually reducing the shortage of personnel and returning the mine to its potential capacity, once fully staffed. Through these actions, expected to take effect during the first three quarters of the year, we are targeting a return to an average development rate of more than 3,000 metres a month during 2022. However, as set out above, challenges remain. The labour market remains tight and we are also experiencing some delays to new equipment deliveries due to global supply bottlenecks.

  • Quarterly by-product gold production decreased 7.5% vs. 4Q21 mainly driven by a lower volume of ore processed.

  • Quarterly by-product gold production decreased 38.9% vs. 1Q21 due to a lower volume of ore processed and ore grade.

  • Full year 2022 silver ore grade is estimated to remain between 175-195 g/t, while the gold ore grade is estimated to continue to be around 1.10-1.20 g/t.