Performance

Production Report - 1Q21

Octavio Alvídrez, Chief Executive Officer, said: “The health and well-being of our people remains our first priority and we have maintained a range of measures to ensure their safety, while also continuing to support our local communities. First quarter silver production was marginally below the previous quarter, with the encouraging contribution of development ore from our new Juanicipio project offsetting lower grades at Saucito. I am also pleased to report continued progress at the Fresnillo mine with development rates showing an improvement. Quarterly gold production was ahead of the last quarter driven by the higher than expected grade at Herradura. Construction of Juanicipio is making good progress and we are on track to commission the plant by the fourth quarter. Though the pandemic continues to present certain operational challenges, Fresnillo has started 2021 well with Q1 operations in line with expectations and our full year guidance remains unchanged." Read full release »


1Q21 Highlights

Silver

  • Quarterly attributable silver production of 12.6 moz (including Silverstream), down 2.4% vs. 4Q20, driven by a lower volume of ore processed at San Julián Disseminated Ore Body (DOB) and a lower ore grade at Saucito and the Pyrites plant, mitigated by a higher development ore grade at Juanicipio.
  • Quarterly attributable silver production (including Silverstream) was down 4.5% vs. 1Q20, mainly due to the lower ore grade at Saucito, mitigated by a higher ore grade at San Julián DOB and the contribution from Juanicipio.

Gold

  • Quarterly attributable gold production of 228.2 koz, up 5.9% vs. 4Q20, mainly due to the higher ore grade at Herradura and Saucito, partly offset by lower volumes of ore processed at Noche Buena and decreased ore throughput and lower ore grade at San Julián Veins.
  • Quarterly attributable gold production increased 15.9% vs. 1Q20 due to an increase in volume of ore processed and higher ore grade at Herradura and, to a lesser extent, a higher ore grade at Saucito. This was partly offset by a lower volume of ore processed and ore grade at Noche Buena as the mine approaches its planned closure.

By-products

  • Quarterly attributable by-product lead and zinc production decreased 14.8% and 16.8% respectively vs. 4Q20, driven primarily by lower ore grades and to a lesser extent, lower volumes of ore processed at both Saucito and Fresnillo.
  • Quarterly attributable by-product lead and zinc production increased 10.3% and 14.2% vs. 1Q20 respectively, due to higher ore grades at Saucito, partially offset by lower ore grades and recovery rates at Ciénega.

Development Projects

  • Continued progress was achieved on the construction of the Juanicipio processing plant and civil works during the quarter. Commissioning of the plant by 4Q21 remains on track.
  • As previously reported, the Fresnillo flotation plant optimisation to cope with higher content of lead and zinc was concluded in 4Q20. The connection of this new circuit to the beneficiation plant was completed in 1Q21, with programming of the control loop system expected to be finalised in early 2Q21.

2021 Outlook

2021 guidance remains unchanged despite the continued uncertainty presented by Covid-19 in Mexico. Attributable silver production is expected to be in the range of 53.5 to 59.5 moz (including Silverstream) while attributable gold production is expected to be in the range of 675 to 725 koz.

Total Production

 

1Q21

4Q20

% change

1Q20

% change

FY20

FY19

% change

Silver (koz)

11,839

12,207

(3.0)

12,547

(5.6)

50,270

51,764

-2.9

Silverstream (koz)

796

743

7.1

681

16.9

2,780

2,850

-2.5

Total Silver (koz)

12,635

12,950

(2.4)

13,228

(4.5)

53,050

54,614

-2.9

Gold (oz)

228,193

215,581

5.9

196,963

15.9

569,618

875,913

-12.1

Lead (t)

15,340

18,013

(14.8)

13,905

10.3

63,242

55,722

13.5

Zinc (t)

25,881

31,092

(16.8)

22,655

14.2

106,793

92,578

15.4


Financial Performance

 

2020

2019

2018

2017

2016

2015

2014

2013

2012

Total attributable silver
production incl. Silverstream (Moz)

53.1

54.6

61.8

58.7

53.0

47.0

45.0

43.0

41.0

Attributable Gold Production (koz)

769.6

875.9

922.5

911.1

935.5

761.7

596.0

425.8

473.0

EBITDA (millions of US$)

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$)

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.