One of our most important assets; contributing 23.4% to total silver production in 2021 and generated 21.0% of total adjusted rev.
||100% Fresnillo plc
||Zacatecas 8km SW of the Fresnillo mine
||Underground mine and flotation plant
||1,015 employees, 2,363 contractors
|Milling Capacity :
||7,800 tpd/2,600,000 tpy
||7.3 (2020: 5.2)
|Ore processed (t)
Commercial production 1H11
% (19.9) Change
% 4.2 Change
% (13.9) Change
% (12.4) Change
% 0.2 Change
% (1.2) Change
% 37.9 Change
% 34.5 Change
Quarterly silver production increased 11.1% vs. 1Q22 mainly due to a higher ore grade and an increased volume of ore processed.
- Quarterly silver production decreased 11.9% vs. 2Q21 as a result of the lower volume of ore processed driven by the residual impact of the labour reform in Mexico. This was mitigated by the higher ore grade due to improved dilution control, as well as successfully regaining access to certain areas of the mine that were impacted by the localised seismicity in previous quarters, and an improved recovery rate due to more efficient grinding in the mill circuit.
First half silver production decreased 12.4% vs. 1H21 due to a lower volume of ore processed, mitigated by a higher ore grade, for reasons explained above.
We continued our recruitment and training campaigns with the target of gradually reducing the shortage of personnel through the second half of the year. However, as explained in the prior quarters, we continue to expect some variability in the ore grade and volumes of ore 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 and shortages of personnel reported last year.
Quarterly by-product gold production increased 2.4% vs. 1Q22 driven by the higher volume of ore processed, offset by a lower recovery rate.
- Quarterly and first half by-product gold production decreased 32.2% and 35.7% vs. 2Q21 and 1H21, respectively, due to a lower volume of ore processed for reasons explained above and a lower ore grade.
- Full year 2022 silver ore grade is expected to remain between 175-195 g/t, while the gold ore grade is estimated to remain around 1.10-1.20 g/t.