Our performance

Highlights (FY16)

Robust profit margins and strong financial position continue to deliver healthy returns

  • Adjusted revenue of US$2,045.0 million, 29.2% increase vs. 2015 on increased volumes and higher metal prices
  • Gross profit and EBITDA of US$882.1 million and US$1,032.0 million, up 103.7% and 88.5% respectively
  • Profit from continuing operations before net finance costs and income tax of US$676.5 million, up 237.5%
  • Devaluation of the Mexican peso vs. US dollar positively affected production costs
  • Cost per tonne and cash cost decrease at all mines, due to devaluation of MXN and cost reduction initiatives
  • Net cash from operating activities increased by 65.4% to US$898.0 million vs US$542.9 million in 2015
  • Capital expenditures of US$434.1 million, 8.6% lower than 2015 and below guidance, mainly due to lower capex at San Julián reflecting the delay in phase II
  • Exploration spend of US$121.2 million, 13.6% lower than 2015
  • Free cash flow* of US$463.9 million (2015: US$68.2 million)
  • Maintained financial flexibility, with year-end cash, cash equivalents and short term investments balance of US$912.0 million (2015: US$500.1 million), and debt of US$800 million
  • Basic and diluted EPS from continuing operations of US$0.579; adjusted EPS of US$0.453, up 503.1% and 556.5% respectively
  • Final dividend of US$21.5 cents per share, equivalent to approx US$158.4 million

*Net cash flow from operating activities less purchase of property, plant and equipment

Highlights (1Q17)

  • Quarterly silver production of 13.5 moz (including Silverstream), up 10.7% vs. 1Q16 mainly due to the contribution of San Julián (phase I). On track to achieve 2017 production guidance of 58-61 moz silver, (including 4.0 moz from the Silverstream)
  • Quarterly gold production of 222.3 koz, down 3.3% vs. 1Q16 and 17.1% vs. 4Q16 mainly due to the one-off reduction of inventory levels at the leaching pads in Herradura in 2016 and expected lower ore grades at Herradura. On track to meet 2017 production guidance of 870-900 koz gold
  • Turnaround at the Fresnillo mine continues to show positive signs, with two consecutive quarters of increased ore grades and silver ounces produced and three consecutive quarters of increased ore throughput 
  • Construction of San Julián (phase II) on track with commissioning expected at the end of 2Q17
  • Construction of the pyrites plant and the second line of the dynamic leaching plant at Herradura continues, both on track to start operations in 2018

Total Production

  4Q16 4Q15 % change 3Q16 YTD 16 YTD 15 % change
Silver (koz) 12,247 11,336 8.0 10,607 45,677 43,023 6.2
Silverstream (koz) 1,069 830 28.8 1,168 4,625 3,955 16.9
Total Silver (koz) 13,316 12,166 9.5 11,775 50,303 46,977 7.1
Gold (oz) 268,104 215,892 24.2 219,840   935,513 761,712 22.8
Lead (t) 13,003 12,675 2.6 12,473 48,144 42,413 13.5
Zinc (t) 16,989 14,625 16.2 14,476 56,845 46,022 23.5

Financial Performance

 200820092010201120122013201420152016
Total attributable silver production incl Silverstream (Moz) 34.8 41.3 42.1 41.9 41.0 43.0  45.0 47.0 50.3
Attributable Gold Production (koz) 263.6 276.6 369.0 448.9 473.0 425.8 596.0 761.7 935.5
EBITDA (in millions of US$) 337.4 496.6 945.0 1,538.5 1,315.3 729.8 567.3 547.5 1,032.0
Cash flow from operating activities before changes in working capital (millions of US$) 405.8 548.8 983.6 1,612.1 1,356.7 750.2  568.5  537.3 1,023.3

Key Commitments and Targets

  1. Maximise the potential of existing operations:
    Fresnillo - Improve and optimise performance by developing infrastructure at the lower levels sufficient to increase the development rate to 4,800 metres per month by year end; commence work on plant optimisation; continue the deepening of the San Carlos shaft and expansion of the tailings dam.
  2. Deliver growth through development projects:
    San Julián - Commission the second phase on time and on budget in 2Q 2017, including installing vibrating screens at the leaching plant to achieve an average of 4,000 tpd milling capacity.
    Pyrites plant - Continue detailed engineering works and commence construction.
  3. Extend the growth pipeline:
    Deploy US$160 million in exploration investment
  4. Advance and enhance the sustainability of our operations:
    Strengthen our safety performance with zero tolerance for non-compliance, and increased investment and support for training and oversight.