Performance

Production Report - 1Q23

Octavio Alvídrez, Chief Executive Officer, said: “I am pleased to report a solid start to the year. Silver and gold production are both up on the previous quarter driven by the increasing contribution from our new Juanicipio mine and the strong performance at our Herradura gold mine in particular. We have a very clear set of priorities that we are focused on in the second quarter. This includes the continued safe ramp up of the Juanicipio plant now that we have successfully completed the commissioning phase, while also progressing the tie-in to the national power grid of our new Pyrites Plant. Both of these projects will support our production objectives into the future. We have successfully managed through considerable recent challenges, reaching a sound level of operational consistency, putting us well on track to meet our full year production guidance.”  1Q23 report »


Silver

Quarterly attributable silver production of 13.1 moz (including Silverstream), up 5.1% vs. 4Q22 mainly driven by a higher ore grade at San Julián (DOB) and the increased contribution of ore from Juanicipio, partly offset by the lower volume of ore processed at Saucito.

Quarterly attributable silver production remained flat (-0.9%) vs. 1Q22 primarily due to the lower ore grade and decreased volume of ore processed at San Julián (DOB) and Ciénega, offset by the increase in volume of ore processed at Fresnillo and higher ore grade at San Julián Veins.

Gold

Quarterly attributable gold production of 173.0 koz up 3.0% vs. 4Q22 mainly due to the higher ore grade at Saucito and higher ore grade and recovery rate at Herradura, partly offset by the lower recovery rate and decrease in ore grade at Noche Buena.

Quarterly attributable gold production up 15.5% vs. 1Q22 primarily due to the higher volume of ore processed and ore grade at Herradura and the higher ore grade at Saucito, partly offset by the decrease in gold production at Noche Buena.

By-Products

Quarterly attributable by-product lead production up 4.8% vs. 4Q22 due to a higher ore grade at Saucito and San Julián (DOB) and the increased contribution from Juanicipio, partly offset by the lower ore grade and volume of ore processed at Ciénega.

Quarterly attributable by-product zinc production up 4.6% vs. 4Q22 due to the higher volume of ore processed at Fresnillo, increased contribution from Juanicipio and the higher ore grade at San Julián (DOB) and Saucito, partly offset by the lower ore grade, volume of ore processed and recovery rate at Ciénega.

Quarterly attributable by-product lead production increased 9.2% vs. 1Q22 due to the higher volume of ore processed at Fresnillo and higher ore grade at San Julián (DOB), partly offset by the decrease in volume of ore processed and lower ore grade at Ciénega.

Quarterly attributable by-product zinc production slightly increased by 1.7% vs. 1Q22, driven by higher volume of ore processed and ore grade at Fresnillo, partly offset by lower ore grade, recovery rate and volume of ore processed at Saucito and San Julián (DOB).

Operations

Commissioning of Juanicipio completed as planned during 1Q23. We are now in the ramp-up phase, with full nameplate capacity expected by 3Q23. As previously reported, ore will continue to be processed at the nearby Saucito and Fresnillo plants as required.

We remain focused on complying with requirements from the state-owned electricity company and the energy regulator to complete tie-in of the Pyrites Plant to the national power grid, with commissioning and start up of operations expected in 2Q23

Safety Performance

We are extremely saddened to report that following an accident in the first quarter, and subsequent complications in hospital, we tragically lost a colleague from the Saucito mine. The safety and wellbeing of our people remains our priority. We will continue working to strengthen the deployment of our safety programmes, and protocols that protect our people throughout all our operating units and identify preventive measures to provide a safe environment for our workforce. Our “I care, We care” programme still needs to mature and be transformed into the safety culture in our company, an objective that we are placing even more focus on.

2023 Outlook

2023 guidance remains unchanged. Attributable silver production is expected to be in the range of 57.0 to 64.0 moz (including Silverstream) while attributable gold production is expected to be in the range of 590 to 640 koz. Expressed in silver equivalent ounces1, production is expected to be 104 -115 million ounces.

1Au:Ag ratio of 80:1

Total Production

 

4Q22

3Q22

% change

4Q21

% change

FY22

FY21

% change

Silver (koz)

12,073

12,787

(5.6)

12,230

(1.3)

51,052

49,961

2.2

Silverstream (koz)

450

799

(43.7)

684

(34.2)

2,688

2,688

(14.2)

Total Silver (koz)

12,522

13,586

(7.8)

12,914

(3.0)

53,740

53,095

1.2

Gold (oz)

167,969

159,205

5.5

150,313

11.7

635,926

751,203

(15.3)

Lead (t)

12,756

13,415

(4.9)

11,837

7.8

52,950

56,573

(6.4)

Zinc (t)

23,060

25,560

(9.8)

22,899

0.7

99,153

99,397

(0.2)


Financial Performance

 

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

Total attributable silver
production incl. Silverstream (Moz)

53.7

53.1

53.1

54.6

61.8

58.7

53.0

47.0

45.0

43.0

41.0

Attributable Gold Production (koz)

635.9

751.2

769.6

875.9

922.5

911.1

935.5

761.7

596.0

425.8

473.0

EBITDA (millions of US$)

751.1

1,206.3

1,169.1

674.0

915.1

1,060.1

1,032.0

547.5

567.3

729.8

1,315.3

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

743.1

1,208.3

1,168.7

685.5

930.7

1,073.7

1,023.3

537.3

568.5

750.2

1,356.7


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
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.