Our Business Model

Business Model and Strategy

FRES AR2017 BMODEL ANNOTATION

Value Creation Strategy

Our value creation strategy is intrinsically linked to our business model - at the heart of our business is gold and silver mining.

Our business model spans the full mining value chain from exploration, development and construction, to mining operations, supported by strategic resources and relationships essential to the effective execution of the business.

We seek to create sustained value for stakeholders across precious metals cycles, focusing on high potential silver and gold projects that can be developed into low-cost, world-class mines.

We generate revenue by selling the metals contained in the ore we extract and process. We ensure the longevity of our business and maintain sustainable growth by exploring and developing new projects.

Value Chain B Model

Strategic Business Model Components: A Strong Growth Pipeline

1. Explore » Extend and maintain a robust growth pipeline
Ensure business continuity and growth by replenishing depleted reserves and maintaining growth pipeline. Invest continuously across price cycles to ensure a pipeline of growth projects at different stages.

2. Develop » Deliver growth through development projects
Deliver profitable growth by advancing projects towards commissioning, while optimising cash flow and returns. Develop, build and commission projects that meet stringent criteria for mineral content and associated costs.

3. Operate » Maximise potential of existing operations while maintaining position as a leading low cost producer
Optimise capacity, replenish reserves, improve productivity and cost structure, and leverage expansion opportunities.

4. Sustain » Advance and enhance the sustainability of our business and uphold our licence to operate
Prioritise safety and health, responsible environmental stewardship, the wellbeing of our communities, best governance practices and a strong ethical culture.