Performance

Production Report - 1Q19

Octavio Alvídrez, Chief Executive Officer, said: "First quarter production is down as expected on the same period last year, though slightly weaker than anticipated. Full year guidance however remains unchanged as we expect to realise the benefits from the investments we have made into infrastructure, equipment and an extensive infill drilling programme, which will all have a positive impact on production in the second half. We continue to maintain our disciplined approach to development, with an emphasis on efficiency and controlling costs underpinning projects. The construction of the tailings flotation plant at the Fresnillo mine is on track for completion in 2020. We are making good progress on our exploration pipeline and international exploration prospects. I am also pleased to confirm we announced final Board approval of the Juanicipio development project today. We are confident Juanicipio will be a key project for Fresnillo. It is a high quality asset which we expect will make a meaningful contribution to production from late 2020, maintaining our long track record of high growth and returns."  Read full release »

1Q19 Highlights

  • Quarterly silver production of 13.1 moz (including Silverstream) down 14.8% vs. 1Q18 mainly due to the lower ore grade and throughput at Fresnillo

  • Quarterly silver production (including Silverstream) down 15.3% vs. 4Q18 as a result of lower volumes of ore processed and lower ore grades at both San Julián Disseminated Ore Body and Saucito.

  • Quarterly gold production of 211.1 koz, down 8.8% vs. 1Q18 mainly due to a lower volume of ore processed at Noche Buena and a slower overall speed of recovery on the leaching pads at Herradura.

  • Quarterly gold production down 9.0% vs. 4Q18, driven by lower production from Noche Buena, Herradura, San Julián Veins and Saucito

  • Construction of the Pyrites plant (phase II) in the Fresnillo district remains on track and on budget, with commissioning expected in the second half of 2020

  • Board approval for development of the Juanicipio project, owned by Fresnillo plc (56%) and MAG Silver Corp (44%), announced today

  • Outlook unchanged: on track to achieve 2019 production guidance of 58-61 moz silver, (including Silverstream) and 910-930 koz gold

FY18 Full Year Gold Silver Production                 FY18 Cash Flow Dividends

Total Production

 

1Q19

1Q18

% change

4Q18

YTD18

YTD17

% change

Silver (koz)

12,372

14,235

-13.1

14,647

58,079

54,238

7.1

Silverstream (koz)

766

1,186

-35.4

860

3,725

4,435

-16.01

Total Silver (koz)

13,138

15,421

-14.8

15,507

61,804

58,673

5.3

Gold (oz)

211,110

231,458

-8.8

232,026

922,527

911,132

1.3

Lead (t)

12,125

11,629

4.3

15,252

53,181

48,153

10.4

Zinc (t)

21,752

19,040

14.2

24,531

88,520

65,266

35.6


Financial Performance

 

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

Total attributable silver production incl. Silverstream (Moz)

61.8

58.7

53.0

47.0

45.0

43.0

41.0

41.9

42.1

41.3

34.8

Attributable Gold Production (koz)

922.5

911.1

935.5

761.7

596.0

425.8

473.0

448.9

369.0

276.6

263.6

EBITDA (millions of US$)

915.1

1,060.1

1,032.0

547.5

567.3

729.8

1,315.3

1,538.5

945.0

496.6

337.4

Cash flow from operating activities before changes in working capital (millions of US$)

930.7

1,073.7

1,023.3

537.3

568.5

750.2

1,356.7

1,612.1

983.6

548.8

405.8


Decade of progress and achievement

Prelims 27FEB17 Decade Of Progress And Achievement

Key Commitments and Targets

1. Explore » Ensure business continuity and growth by replenishing depleted reserves and maintaining a robust growth pipeline
Deploy US$140 million in exploration investment; evaluate early-state acquisitions and maintain reserves for 10 years. Ensure organic growth and assess key acquisition opportunities.
2. Develop » Deliver growth through development projects 
Deliver profitable growth by advancing new projects towards commissioning, whist optimising cash flow and returns. Maintain track record of delivery on time and on budget and focus on CAPEX control as well as specialised engineering and construction teams. 
3. Operate » Maximise the potential of exisiting operations 
Maximise our potential of exisiting operations whilst maintaing our position as leading low cost producer. Operate at 100% capacity and remain a low-cost producer whilst optimising mining methods and metallurgy to maintain high recovery rates. 
4. Sustain » Advance and enhance the sustainability of our business and uphold our licence to operate 
Strengthen our safety performance with zero tolerance for non-compliance, and increase investment and support for training and oversight. Improve general health and minimise environmental impact whilst maintaining sound relations within our communities.