Our Business Model

Business Model and Strategy

Our business model spans the full mining value chain from exploration, development and construction, to mining operations, supported by strategic resources and relationships essential to the effective execution of the business. Gold and silver mining is the heart of our business model. We generate revenue by selling metals contained in the ore we extract and process and ensuring longevity of our business by exploring and developing new projects. Our ability to create value is underpinned by the quality of our assets, the capability of our people, our operational performance, mitigation of risks and disciplined capital allocation.

View our Business Model

          

Our Purpose

Our Purpose is to contribute to the wellbeing of people, through the sustainable mining of silver and gold. This purpose informs our long-term strategy, guides daily operations, and aligns our values with stakeholder interests. Based on ethics and caring for our people, the Fresnillo culture aims to foster the necessary mindset and behaviours to deliver on our Purpose. However, we recognise that our culture should also be a driver for innovation and operational excellence in order to achieve productivity improvements and cost reductions, while reducing our environmental footprint. Our objective is to nourish both our current and emerging values, in line with our Purpose. We engage our people in our long-term strategy to instil a Purpose-led culture where everybody understands how we do business. The values that are embedded in our culture support our strategy, inspiring winning behaviours on ethics, safety, innovation and operational excellence.

 

Value Creation Strategy

Our value creation strategy is intrinsically linked to our business model, spanning the full mining value chain, supported by strategic resources and relationships essential to the effective execution of the business. Our activities create economic value in the regions where we operate through wages and benefits, payments to local contractors and suppliers, and municipal, state and federal taxes. We seek to create sustained value for stakeholders across precious metals cycles, focusing on high potential silver and gold projects that can be developed into low-cost, world-class mines.  






Strategic Business Model Components

A Strong Growth Pipeline

1. Explore

Extend and maintain a robust growth pipeline

Ensure business continuity and organic growth by replenishing depleted reserves and maintaining a robust growth pipeline. Assess key acquisition opportunities and invest continuously across price cycles to ensure a pipeline of growth projects at different stages.

2. Develop 

Deliver profitable growth, optimise cash flow and returns

Deliver profitable growth by advancing new projects towards commissioning, while optimising cash flow and returns. Develop, build and commission projects that meet stringent criteria for mineral content and associated costs. 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 potential of existing operations

Maximise our potential of existing operations whilst maintaining our position as a leading low cost producer. Optimise capacity, replenish reserves, improve productivity and cost structure, and leverage expansion opportunities. 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 and increase investment and support for training and oversight. Improve general health and minimise environmental impact whilst maintaining sound relations within our communities. Prioritise safety and health, responsible environmental stewardship, the wellbeing of our communities, best governance practices and a strong ethical culture.

 

 

  

What Sets Us Apart

STRATEGIC RESOURCE BASE

1.6 Hectares of mining concessions in Mexico

FINANCIAL STRENGTH

Net cash of US$458.3M and equity of US$4.2BN

TECHNOLOGICAL FOCUS

Smart tech and digitalisation drive efficiency and growth

STAKEHOLDER ENGAGEMENT

Deep-rooted community relationships and transparency

FRES AR22 FRESNILLO PANO 168 Pano

          

People

We rely on the skills, experience and commitment of our people to create sustainable value. Attracting, developing and retaining the best people is crucial in enabling us to meet our business goals. We have a skilled workforce of approximately 7,000 unionised workers and employees and approximately 11,000 contractors who provide services along our full value chain, supported by an experienced and purpose-led leadership team.

 

Natural Resources

Our operations rely on a range of natural resources, including surface land, water and energy.
• 1.6 million hectares in mining concessions in Mexico. 
• 61,314 megalitres of reused water (efficiency of 84.19%).
• 80.6% of our electricity consumption comes from renewable sources.

 

Relationships with key stakeholders

Our stakeholders include governments, communities, suppliers, customers, shareholders and our workforce. We maintain purposeful engagements with these stakeholders to understand issues that matter to them, address them collaboratively and gain trust. We balance the issues that matter to them, ensuring the social acceptance of our operations and maintaining our licence to operate in order to create shared value and achieve long-term success.

 

Value distributed

Wages and benefits to workers

149.7m US$

Payments to suppliers (contractors)

1,773.5m US$

Annual Report

Throughout our history, Fresnillo plc has proudly built a track record of managing the setbacks associated with mining and weathering storms not of our own making.

Annual Report and Accounts 2024 >

Exploration

Exploration continues to be our key growth driver, for this we maintain the largest land area of concessions for precious metals exploration and mining in Mexico.

Exploration Projects and Prospects >