Saucito

Including the Saucito II expansion, Saucito is one of the Group’s most important assets, critical to achieving our 2018 production target of 65 moz silver. Saucito contributed 36% to total Silver production in 2017 and generated 22.6% 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: 763 employees, 1,824 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: 5.8 (2016: 5.9)

Quarterly Production

  1Q18 1Q17 % change 4Q17
Ore processed (t) 673,545 670,914 0.4 722,237
         
Production        
Silver (koz) 4,832 5,147 -6.1 5,378
Gold (oz) 16,880 17,964 -6.0 17,599
Lead (t) 3,183 4,754 -33.0 3,903
Zinc (t) 3,916 5,139 -23.8 4,930
         
Ore grades        
Silver (g/t) 260 279 -6.8 271
Gold (g/t) 1.12 1.12 0.1 1.08
Lead %

0.57

0.87

-34.9

0.66
Zinc % 0.96 1.26 -23.7 1.06

History

2004

Drilling commenced

2009

Construction commenced

2011

Commercial production 1H11

Production

Silver (koz)

21,215 (FY17) % (3.3) Change

Gold (oz)

69,948 (FY17) % (18.9) Change

Lead (t)

17,714 (FY17) % (15.4) Change

Zinc (t)

20,348 (FY17) % (13.4) Change

Financial Highlights

Adjusted Revenue (US$m, FY17)

504.2 % (4.5) Change

Segment Profit (US$m, FY17)

315.2 % (13.4) Change

Captial Expenditure (US$m, FY17)

133.7 % 30.6 Change

Exploration (US$m, FY17)

26.1 % 59.1 Change

Perfomance Highlights - 1Q18

  • Quarterly silver production decreased 6.1% vs. 1Q17 due to the lower ore grade resulting from ground instability temporarily restricting access to a high grade area of the Jarillas vein. This has since been resolved and by year end, we expect to recover the production lost as a result. Similarly, quarterly silver production vs. 4Q17 decreased 10.1% as a result of a lower volume of ore from development areas being processed and a lower ore grade due to the aforementioned factor.
  • Quarterly by-product gold production decreased 6.0% vs. 1Q17 as a result of a lower recovery rate. When compared to the previous quarter, by-product gold production decreased 4.1% as a result of lower volume of ore processed which was mitigated by the higher ore grade.
  • Quarterly by-product lead production decreased vs. 1Q17 and 4Q17 mainly as a result of lower ore grades.
  • Quarterly by-product zinc production decreased vs. 1Q17 as a result of the lower ore grade. When compared to the previous quarter, by-product zinc production decreased as a result of lower ore grade, ore processed and recovery rate.

Performance Targets - 2018

  • Maintain development rates
  • Initiate deepening of the Jarillas shaft
  • Intensify exploration to the south