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: We rely on the skills, experience and commitment of our people to meet our business goals. Attracting, engaging and developing the best talent are key to the execution of our strategic plan. We rely on a diverse workforce to create sustainable value.
  2. Natural resources: Our operations rely on a range of natural resources including surface land, water, energy and fuel. Optimising our use of these resources, minimising the impact of our activities and being transparent and accountable regarding our environmental footprint are essential to maintaining our licence to operate.
  3. Relationships with key stakeholders: Our social licence to operate is our most valuable intangible asset. Sustained trust from our stakeholders mitigates the risk of conflicts that would otherwise compromise our ability to execute our business strategy. Purposeful engagement and accountability are essential to our licence to operate. 
  4. Financial strength and control: We maintain strict controls on cash, costs and expenses and adhere rigidly to capex budgets. Our healthy position regarding cash and other liquid funds, balanced by our low leverage ratio, ensure sufficient resources to invest in advancing our pipeline and delivering returns to shareholders.
  5. Property and equipment: Our assets, which include properties, infrastructure, processing plants and mining equipment, give us the capacity to meet our production targets. We operate these assets with a focus on continuous improvement in productivity and greater efficiency in the consumption of materials and energy.
  6. Technology: We leverage the knowledge of our employees to identify and implement innovative and effective technological solutions to support decision making and meet the challenges associated with new projects, maturing mines with declining ore grades, and rising social and environmental expectations. We ensure that our networks, systems and data are secure, in accordance with best practice.

Relationships: Key stakeholders with whom we create shared value

Fresnillo B Model Operate Small

Strategic focus:
Nurture and strengthen 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