Strategic Resources and Relationships

Resources: The key inputs required to sustain our value creation model

Fresnillo B Model Operate Small

Strategic focus:
Safeguard, deploy and invest in our strategic non-mineral resources (human, financial, IT)

  1. Experienced management and skilled personnel: Select, recruit, train, develop, compensate and retain personnel with the requisite knowledge and experience to execute our strategy. We rely on the skills, experience and commitment of a diverse workforce to create sustainable value.
  2. Natural resources: Our operations rely on a range of natural resources including land, water and energy.
  3. Relationships with key stakeholders: Purposeful engagement and accountability are essential to gaining trust and maintaining our licence to operate.
  4. Financial strength and control: Our operations generate extensive cash flows; we maintain strict control of cash, assets, costs and expenses to maintain our solid balance sheet and competitive position as a low cost producer, ensure resources to finance growth and guarantee operational continuity, delivering shareholder returns.
  5. Property and equipment: Our high quality assets include properties, infrastructure, processing plants and mining equipment. Together, they provide us with the capacity to meet our production targets.
  6. Technology: Deploy systems and methods that support exploration efforts, increase productivity, reinforce sustainability, enhance accountability and support decision-making and financial planning processes.

Relationships: Key stakeholders with whom we create shared value

Fresnillo B Model Operate Small

Strategic focus:
Nurture and strenfthen our strategic relationships (stakeholders)

  1. Employees: Provide a safe, equitable and fair work environment for contract and unionised labour.
  2. Communities: We invest in the local communities where we operate and aim to minimise our environmental impact; investing directly and through partnerships in a range of initiatives that aim to enhance quality of life and wellbeing, with a focus on environment, education, health, integration, entrepreneurship and social infrastructure.
  3. Suppliers: Negotiate long-term purchase agreements to secure better pricing and ensure timely availability of key equipment, materials and services, whilst providing technical support to our suppliers.
  4. Customers: Partner with refiners and smelters who help maximise our revenue stream
  5. Shareholders: Balance returns with investment in long-term growth
  6. Government: We comply with all applicable laws and generate economic value through our operations.
  7. Membership organisations: We are active members of several mining organisations and associations, where we use our influence to promote greater recognition of the advantages that mining brings to society.

AR15 BModel Strategic Relationships