TIDMFRES
RNS Number : 8117A
Fresnillo PLC
24 January 2024
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
24 January 2024
The following amendment has been made to the Fourth Quarter
Production Report announcement released on 24 January 2024 at 07:00
under RNS No 6893A
The FRESNILLO MINE PRODUCTION section has been updated. Figures
for 4Q23 and FY23, along with their respective % changes have been
corrected, as shown below. The changes are minor and do not affect
the explanations below the table or the messaging of the report
overall.
All other details remain unchanged, including the consolidated
figures at a Group level.
New version
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed
(t) 609,135 673,233 (9.5) 624,105 (2.4) 2,618,509 2,462,409 6.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 2,781 3,201 (13.1) 3,605 (22.9) 12,772 13,609 (6.2)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 8,149 9,013 (9.6) 8,314 (2.0) 36,909 34,432 7.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 5,226 5,175 1.0 5,609 (6.8) 21,373 21,756 (1.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 10,592 12,003 (11.8) 11,097 (4.5) 45,386 43,342 4.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 160 166 (3.6) 197 (18.9) 170 189 (9.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.59 0.59 (1.1) 0.58 1.3 0.62 0.61 0.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 1.03 0.90 14.5 1.05 (2.2) 0.96 1.05 (8.1)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 2.42 2.33 4.0 2.37 1.9 2.32 2.38 (2.6)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production decreased 13.1% when compared to
3Q23, mainly due to a decreased volume of ore processed as
development ore was not processed as a measure to increase head
grades to the mill along with a higher proportion of volumes
extracted from the western areas of the mine with lower ore grades.
We are increasing development in eastern areas with higher grades
albeit with narrower widths.
Quarterly silver production decreased 22.9% vs. 4Q22, mainly due
to the lower ore grade as explained above.
Full year silver production decreased 6.2% vs. FY22 driven by
the lower ore grade, partially mitigated by the increase in volume
of ore processed from the Candelaria, San Carlos, San Alberto and
Santa Elena areas.
Mine development rates increased quarter on quarter to an
average of 3,038m per month in 4Q23 (3Q23: 2,987m per month) as
productivity from unionised personnel increased after taking over
from contractors in 3Q23.
Quarterly by-product gold production decreased 9.6% vs. 3Q23
mainly driven by the decreased volume of ore processed and lower
ore grade.
Full year by-product gold production increased 7.2% vs. FY22
primarily as a result of the higher volume of ore processed.
Silver ore grade in 2024 is expected to be in the range of 180
to 200 g/t, while the gold ore grade is estimated to be
between 0.60 to 0.70 g/t.
Old version
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed
(t) 621,344 673,233 (7.7) 624,105 (0.4) 2,630,719 2,462,409 6.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 2,838 3,201 (11.3) 3,605 (21.3) 12,829 13,609 (5.7)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 8,248 9,013 (8.5) 8,314 (0.8) 37,008 34,432 7.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 5,289 5,175 2.2 5,609 (5.7) 21,436 21,756 (1.5)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 10,791 12,003 (10.1) 11,097 (2.8) 45,585 43,342 5.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 160 166 (3.6) 197 (18.8) 170 189 (9.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.58 0.59 (1.7) 0.58 0.6 0.61 0.61 0.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 1.02 0.90 13.6 1.05 (2.9) 0.96 1.05 (8.2)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 2.41 2.33 3.7 2.37 1.6 2.32 2.38 (2.7)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production decreased 11.3% when compared to
3Q23, mainly due to a decreased volume of ore processed as
development ore was not processed as a measure to increase head
grades to the mill along with a higher proportion of volumes
extracted from the western areas of the mine with lower ore grades.
We are increasing development in eastern areas with higher grades
albeit with narrower widths.
Quarterly silver production decreased 21.3% vs. 4Q22, mainly due
to the lower ore grade as explained above.
Full year silver production decreased 5.7% vs. FY22 driven by
the lower ore grade, partially mitigated by the increase in volume
of ore processed from the Candelaria, San Carlos, San Alberto and
Santa Elena areas.
Mine development rates increased quarter on quarter to an
average of 3,038m per month in 4Q23 (3Q23: 2,987m per month) as
productivity from unionised personnel increased after taking over
from contractors in 3Q23.
Quarterly by-product gold production decreased 8.5% vs. 3Q23
mainly driven by the decreased volume of ore processed and lower
ore grade.
Full year by-product gold production increased 7.5% vs. FY22
primarily as a result of the higher volume of ore processed.
Silver ore grade in 2024 is expected to be in the range of 180
to 200 g/t, while the gold ore grade is estimated to be
between 0.60 to 0.70 g/t.
The full amended text is shown below.
FOURTH QUARTER PRODUCTION REPORT
FOR THE THREE MONTHSED 31 DECEMBER 2023
Octavio Alvídrez, Chief Executive Officer, said:
" We achieved our full year guidance of 105.1 million silver
equivalent ounces. Notably gold, lead and zinc production were
within our guided ranges. Silver production was up 4.7% year on
year driven by the ramp up at Juanicipio and higher ore grade at
San Julián Veins, albeit it was slightly below expectations .
"This year we overcame many operational challenges, which is a
testament to the strong and determined teams we have across our
sites. We successfully ramped up production at our new mine,
Juanicipio, reaching full nameplate capacity.
"We continued to see the impact of inflation and the revaluation
of the Mexican peso affecting costs across the business.
"Our priorities for 2024 are clear. Safety is key and we will
continue working hard to instill a true culture of safety across
our operations. We will continue to identify cost reduction
initiatives to address inflation, while we will also focus on
efficiencies across all our mines."
HIGHLIGHTS
Silver
-- Full year attributable silver production of 56.3 moz
(including Silverstream) increased 4.7% vs. FY22, as a result of
the ramp-up at Juanicipio and higher ore grade at San Julián Veins,
partly offset by the lower ore grade at San Julián (DOB) and
Fresnillo.
-- Quarterly attributable silver production of 14.2 moz
(including Silverstream) remained at a similar level to 3Q23, as
the increased production driven by the higher ore grade and
increase in volumes of ore processed at Saucito and the higher ore
grade at San Julián Veins was offset by the decreased volume of ore
processed and lower ore grade at Fresnillo and the lower ore grade
at San Julián (DOB).
-- Quarterly attributable silver production (including
Silverstream) increased 13.1% vs. 4Q22, primarily due to the
ramp-up at Juanicipio, the higher ore grade at San Julián Veins and
a higher volume of ore processed at Saucito, partially offset by
the lower ore grade at Fresnillo and San Julián (DOB).
Gold
-- Full year attributable gold production of 610.6 koz, down
4.0% vs. FY22 mainly driven by the decrease in gold production at
Noche Buena as it approached the end of its mine life, partially
mitigated by the ramp up at Juanicipio and the higher ore grade at
Herradura.
-- Quarterly attributable gold production of 152.6 koz up 15.1%
vs. 3Q23, mainly driven by the higher volume of ore processed and
ore grade at Herradura.
-- Quarterly attributable gold production down 9.1% vs. 4Q22
primarily due to the decrease in the volume of ore processed at
Herradura and the mine closure plan at Noche Buena, partly
mitigated by the ramp-up at Juanicipio.
By-Products
-- Full year attributable by-product lead production increased
9.2% vs. FY22 due to a greater contribution from Juanicipio and
higher volume of ore processed and ore grade at Saucito partly
offset by the decreased production at Ciénega.
-- Full year attributable by-product zinc production increased
8.6% vs. FY22 due to the increased production from Juanicipio and
the higher volume of ore processed and ore grade at Saucito partly
offset by the lower ore grade at San Julián (DOB).
-- Quarterly attributable by-product lead production up 9.1% vs.
3Q23 primarily due to the higher ore grade and increased volume of
ore processed at Saucito.
-- Quarterly attributable by-product lead and zinc production up
24.6% and 25.1% vs. 4Q22 respectively, mainly due to the higher ore
grades and increase in volumes of ore processed at Saucito and the
ramp-up at Juanicipio, partially offset by the lower ore grades at
San Julián (DOB) and Ciénega.
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Silver (koz) 13,548 13,434 0.9 12,073 12.2 53,454 51,052 4.7
-------- -------- --------- -------- --------- -------- -------- ---------
Silverstream
(koz) 612 670 (8.6) 450 36.2 2,828 2,688 5.2
-------- -------- --------- -------- --------- -------- -------- ---------
Total Silver
(koz) 14,161 14,104 0.4 12,522 13.1 56,282 53,740 4.7
-------- -------- --------- -------- --------- -------- -------- ---------
Gold (oz) 152,605 132,627 15.1 167,969 (9.1) 610,646 635,926 (4.0)
-------- -------- --------- -------- --------- -------- -------- ---------
Lead (t) 15,895 14,575 9.1 12,756 24.6 57,833 52,950 9.2
-------- -------- --------- -------- --------- -------- -------- ---------
Zinc (t) 28,844 29,073 (0.8) 23,060 25.1 107,705 99,153 8.6
-------- -------- --------- -------- --------- -------- -------- ---------
SAFETY PERFORMANCE
As reported previously, we are deeply saddened by the fatal
accidents in 2023. Full investigations were undertaken to identify
the root causes of these accidents. The lessons learnt were shared
across the Group and additional safety workshops were carried out
to prevent these incidents from occurring again. Our safety
procedures and programmes continued to be reinforced across the
Group and we reiterate our commitment to guarantee a safe
environment for all our people. Safety remains the absolute
priority for the Board, the management and the Company. Work to
instill a true culture of safety across our contractor and employee
workforce is on-going and prioritised at every mine site.
ITEMS IMPACTING THE INCOME STATEMENT
Adjusted production costs in 2023 were impacted by:
1. The 11.7% average revaluation of the Mexican peso vs. the US
dollar from $20.1 pesos per US dollar in 2022 to $17.8 pesos per US
dollar in 2023, which is expected to have an adverse effect of c.
US$125 million.
2. Ongoing cost inflation of 3.9%, excluding the effect of the
revaluation of the Mexican peso vs. US dollar, which is expected to
have a negative impact of c. US$60 million.
In addition, cost of sales is expected to be impacted by a
decrease in inventories both at Juanicipio as a result of the start
up of the beneficiation plant, enabling additional volumes to be
processed and the historical stockpile to be depleted, and at Noche
Buena as it approached the end of its mine life. This, together
with the favourable effect of the reassessment of the gold
inventories at Herradura, resulted in an estimated reduction in
inventories of c. US$55 million in 2023. Otherwise, the reduction
in inventories would have been c. US$85 million.
Administrative expenses are expected to increase by c. US$35
million vs 2022, mainly due to the adverse effects of the
revaluation of the Mexican peso vs the US Dollar on administrative
expenses denominated in pesos, including personnel salaries, and
the increase in corporate expenses as a result of the review of the
Shared Services Agreement with Peñoles in line with the increased
services provided.
Depreciation is expected to be very similar to 2022 at c. US$500
million.
2024 OUTLOOK
Our 2024 outlook is in line with previous expectations:
-- Attributable silver production expected to be in the range of
55.0 to 62.0 moz (including Silverstream)
-- Attributable gold production expected to be in the range of 580 to 630 koz.
Expressed in silver equivalent ounces [1] , production is
expected to be 101-112 million ounces.
FULL YEAR FINANCIAL RESULTS
Fresnillo will announce its full year 2023 results on 5th March
2024.
For further information, please visit our website
www.fresnilloplc.com or contact:
FRESNILLO PLC Tel: +44 (0)20 7399 2470
London Office
Gabriela Mayor, Head of Investor
Relations
Mark Mochalski
Mexico City Office Tel: +52 55 52 79 3206
Ana Belem Zárate
POWERSCOURT Tel: +44 (0)7793 858 211
Peter Ogden
MINING OPERATIONS
FRESNILLO MINE PRODUCTION
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed
(t) 609,135 673,233 (9.5) 624,105 (2.4) 2,618,509 2,462,409 6.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 2,781 3,201 (13.1) 3,605 (22.9) 12,772 13,609 (6.2)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 8,149 9,013 (9.6) 8,314 (2.0) 36,909 34,432 7.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 5,226 5,175 1.0 5,609 (6.8) 21,373 21,756 (1.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 10,592 12,003 (11.8) 11,097 (4.5) 45,386 43,342 4.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 160 166 (3.6) 197 (18.9) 170 189 (9.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.59 0.59 (1.1) 0.58 1.3 0.62 0.61 0.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 1.03 0.90 14.5 1.05 (2.2) 0.96 1.05 (8.1)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 2.42 2.33 4.0 2.37 1.9 2.32 2.38 (2.6)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production decreased 13.1% when compared to
3Q23, mainly due to a decreased volume of ore processed as
development ore was not processed as a measure to increase head
grades to the mill along with a higher proportion of volumes
extracted from the western areas of the mine with lower ore grades.
We are increasing development in eastern areas with higher grades
albeit with narrower widths.
Quarterly silver production decreased 22.9% vs. 4Q22, mainly due
to the lower ore grade as explained above.
Full year silver production decreased 6.2% vs. FY22 driven by
the lower ore grade, partially mitigated by the increase in volume
of ore processed from the Candelaria, San Carlos, San Alberto and
Santa Elena areas.
Mine development rates increased quarter on quarter to an
average of 3,038m per month in 4Q23 (3Q23: 2,987m per month) as
productivity from unionised personnel increased after taking over
from contractors in 3Q23.
Quarterly by-product gold production decreased 9.6% vs. 3Q23
mainly driven by the decreased volume of ore processed and lower
ore grade.
Full year by-product gold production increased 7.2% vs. FY22
primarily as a result of the higher volume of ore processed.
Silver ore grade in 2024 is expected to be in the range of 180
to 200 g/t, while the gold ore grade is estimated to be
between 0.60 to 0.70 g/t.
SAUCITO MINE PRODUCTION
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed (t) 576,189 552,872 4.2 508,455 13.3 2,163,982 2,072,812 4.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,399 2,892 17.5 3,026 12.3 12,102 11,977 1.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 17,256 15,427 11.9 18,076 (4.5) 72,763 73,497 (1.0)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 6,311 4,973 26.9 3,859 63.6 19,535 17,816 9.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 10,335 9,663 7.0 5,868 76.1 32,991 28,415 16.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 204 183 11.5 208 (2.0) 195 201 (3.1)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.20 1.14 5.2 1.39 (13.8) 1.34 1.40 (4.3)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 1.27 1.06 19.7 0.90 40.5 1.06 1.01 5.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 2.29 2.22 3.1 1.56 46.8 1.96 1.78 10.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production increased 17.5% vs. 3Q23 mainly
driven by the higher ore grade due to the timely access to high
grade areas and decreased dilution through better ground control,
and the increase in volume processed.
Quarterly silver production increased 12.3% vs. 4Q22 primarily
due to the higher volume of ore processed driven by improved
productivity and increased equipment availability.
Full year silver production slightly increased vs. FY22 as the
higher volume of ore processed was partly offset by a lower ore
grade.
Quarterly by-product gold production increased 11.9% vs. 3Q23
mainly driven by the higher ore grade and increase in volumes of
ore processed.
Quarterly and full year by-product gold production decreased
4.5% and 1.0% vs. 4Q22 and FY22 respectively, driven by the lower
ore grade and recovery rate, partly mitigated by the higher volumes
of ore processed.
Mine development rates remained stable quarter on quarter at
2,810m per month in 4Q23 (3Q23: 2,840m per month). As reported,
additional equipment arrived and development rates returned to
3,000 m per month in December.
The silver ore grade for 2024 is expected to be in the range of
200-220 g/t, while the gold grade is estimated to be between
1.10-1.30 g/t.
PYRITES PLANT
4Q23* 3Q23* % Change 4Q22 % Change FY23* FY22 % Change
Pyrite Concentrates
Processed (t) 48,167 46,934 2.6 32,211 49.5 162,344 135,044 20.2
------- ------- --------- ------- --------- -------- -------- ---------
Production
------- ------- --------- ------- --------- -------- -------- ---------
Silver (koz) 328 225 45.8 111 195.1 861 529 62.6
------- ------- --------- ------- --------- -------- -------- ---------
Gold (oz) 599 597 0.3 374 60.2 1,960 1,959 0.1
------- ------- --------- ------- --------- -------- -------- ---------
Ore Grades
------- ------- --------- ------- --------- -------- -------- ---------
Silver (g/t) 331 220 51.0 145 128.4 248 164 51.0
------- ------- --------- ------- --------- -------- -------- ---------
Gold (g/t) 1.71 1.46 16.9 1.19 42.8 1.59 1.44 10.4
------- ------- --------- ------- --------- -------- -------- ---------
*Includes concentrates of Fe from Saucito and Fresnillo.
Quarterly silver production increased 45.8% and 195.1% vs. 3Q23
and 4Q22 respectively, mainly due to the ramp up of the pyrites
plant at Fresnillo.
Similarly, gold production increased 60.2% vs. 4Q22 mainly due
to the reason explained above partly offset by the lower recovery
rate and decreased volume of iron concentrates processed from
Saucito.
Full year silver production increased 62.6% vs. FY22, mainly due
to contribution of the pyrites plant at Fresnillo, partly offset by
the decrease in volume of iron concentrates processed from Saucito
and lower recovery rate.
Following some tests and technical work, it was decided to only
process the historical tailings as recovery rates improved
significantly when doing so. We will continue implementing this
strategy in 2024, which means that volumes processed will
inevitably be lower than originally planned but recovery rates and
profitability will be higher than when processing both current and
historical tailings.
CI É NEGA MINE PRODUCTION
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed (t) 292,612 270,531 8.2 256,928 13.9 1,064,543 1,114,232 (4.5)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 9,187 9,314 (1.4) 9,122 0.7 35,934 37,466 (4.1)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 1,213 1,131 7.3 982 23.5 4,335 4,709 (8.0)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 693 683 1.4 930 (25.5) 2,881 3,518 (18.1)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 723 906 (20.3) 1,372 (47.3) 3,550 5,387 (34.1)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.07 1.16 (8.3) 1.20 (11.1) 1.14 1.14 0.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 151 151 0.0 139 8.2 147 152 (3.2)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.39 0.42 (8.2) 0.56 (30.0) 0.44 0.49 (11.2)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 0.47 0.64 (25.5) 0.94 (49.9) 0.63 0.86 (26.9)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly gold production slightly decreased 1.4% vs. 3Q23
mainly due to the lower ore grade partly mitigated by the higher
volume of ore processed driven by the timely preparation of
stopes.
Quarterly gold production remained stable vs. 4Q22 as the higher
volume of ore processed was offset by the lower ore grade.
Full year gold production decreased 4.1% vs. FY22 mainly due to
the decreased volume of ore processed in accordance with the mine
plan.
Quarterly silver production increased 7.3% vs. 3Q23 due to the
increase in volume of ore processed.
Quarterly silver production increased 23.5% vs. 4Q22 driven by
the increase in the volume of ore processed and the higher ore
grade.
Full year silver production decreased 8.0% vs. FY22 mainly due
to the decrease in volume of ore processed in accordance with the
mine plan and lower ore grade.
The gold and silver ore grades for 2024 are estimated to be in
the ranges of 1.1-1.3 g/t and 160-180 g/t respectively.
SAN JULIÁN MINE PRODUCTION
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed Veins
(t) 291,661 292,391 (0.2) 294,582 (1.0) 1,142,309 1,175,764 (2.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Processed DOB
(t) 525,081 498,607 5.3 517,733 1.4 2,073,847 2,092,971 (0.9)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Total production
at San Julián
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 11,034 11,161 (1.1) 11,907 (7.3) 44,487 46,727 (4.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,156 3,186 (0.9) 3,113 1.4 13,349 14,252 (6.3)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 10,117 10,428 (3.0) 11,062 (8.5) 41,009 43,397 (5.5)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 1,719 1,359 26.5 1,288 33.5 5,559 4,638 19.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 918 733 25.2 845 8.6 3,478 3,330 4.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 1,437 1,826 (21.3) 1,825 (21.3) 7,791 9,614 (19.0)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 1,332 1,595 (16.5) 1,712 (22.2) 6,843 7,105 (3.7)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 3,362 3,273 2.7 3,604 (6.7) 14,410 17,487 (17.6)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.13 1.18 (3.8) 1.23 (8.1) 1.17 1.21 (2.9)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 200 158 26.5 149 34.3 166 135 23.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.08 0.08 5.6 0.08 7.9 0.08 0.08 3.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 100 134 (25.1) 130 (23.3) 136 168 (18.9)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.33 0.42 (21.0) 0.43 (21.7) 0.43 0.43 0.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 0.86 0.90 (5.4) 0.93 (8.0) 0.94 1.09 (13.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
SAN JULIÁN VEINS
Quarterly silver production increased 26.5% vs. 3Q23 and 33.5%
vs. 4Q22 mainly due to the increased development at the San Antonio
and Elisa areas with a higher silver ore grade, whilst quarterly
gold production decreased 3.0% and 8.5% vs. 3Q23 and 4Q22
respectively, as a result of the lower gold ore grade.
Full year silver production increased 19.8% vs. FY22
respectively, mainly due to higher ore grade at the San Antonio,
Elisa and San Atanasio areas.
Full year gold production decreased 5.5% vs. 4Q22 mainly driven
by the lower ore grade and a decrease in volume of ore processed
due to the lower availability of trucks to haul ore to the
beneficiation plant.
We expect the 2024 silver and gold ore grades to be in the
ranges of 160-180 g/t and 1.00-1.20 g/t, respectively.
SAN JULIÁN DISSEMINATED ORE BODY (DOB)
Quarterly silver production decreased 21.3% vs. 3Q23 and 4Q22 as
a result of lower ore grade in the periphery of the ore body,
partly mitigated by the increased volume of ore processed.
Full year silver production decreased 19.0% vs. FY22 mainly due
to the expected lower ore grade in the areas in the periphery of
the ore body and structural geological features which slowed down
the long hole drilling cycles.
The 2024 silver ore grade is expected to average c. 90 g/t.
Recent development
On 10 January 2024, Fresnillo learnt that Mexico's Supreme Court
granted a ruling in a case in which Fresnillo, as an affected third
party, expects an impact to the water concessions that supply water
to Minera San Julián that were granted by the Mexican State. The
Mexican State is identified as the defendant in this case.
The Company has not yet been formally notified of this ruling.
Nevertheless, the Company expects to be formally notified of the
same in the coming weeks and will thereafter assess in full detail
the ruling itself and its potential implications. This ruling
affects Minera San Julián and, based on current information, impact
to the Company's production is expected to be immaterial.
HERRADURA TOTAL MINE PRODUCTION
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed
(t) 4,534,745 3,983,615 13.8 7,084,437 (36.0) 20,223,914 22,195,187 (8.9)
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Total Volume
Hauled (t) 24,409,823 24,462,202 (0.2) 27,446,767 (11.1) 99,541,551 120,370,290 (17.3)
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Production
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Gold (oz) 93,432 72,184 29.4 103,826 (10.0) 355,485 349,715 1.6
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Silver (koz) 147 120 22.6 191 (22.9) 611 776 (21.3)
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Ore Grades
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Gold (g/t) 0.84 0.73 13.9 0.71 18.4 0.76 0.69 9.9
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Silver (g/t) 1.69 1.51 11.9 1.35 24.8 1.57 1.65 (4.6)
----------- ----------- --------- ----------- --------- ----------- ------------ ---------
Quarterly gold production increased 29.4% vs. 3Q23 mainly driven
by the higher ore grade in the sulphides and the increase in volume
of ore processed as 3Q23 was impacted by an electrical fault.
Quarterly gold production decreased 10.0% vs. 4Q22 due to the
lower volume of ore processed driven by the limited operation at
the Dynamic Leaching Plants (I and II) with reduced capacity at the
beginning of the quarter following the electrical fault in 3Q23,
partly mitigated by the higher ore grade as mentioned above and the
improved recovery rate.
Full year gold production increased 1.6% vs. FY22, primarily
driven by the higher ore grade in the sulphides and positive
variations with the geological model, partially offset by the
decreased volume of ore processed at the Dynamic Leaching Plant (I
and II) as a result of the electrical fault in 3Q23 as mentioned
previously.
The gold ore grade in 2024 is expected to be in the range of
0.60-0.70 g/t.
NOCHE BUENA TOTAL MINE PRODUCTION
4Q23 3Q23 % Change 4Q22 % Change FY23 FY22 % Change
Ore Processed
(t) 0 0 N/A 1,232,125 N/A 2,510,639 7,428,189 (66.2)
------ ------ --------- ---------- --------- ---------- ----------- ---------
Total Volume
Hauled (t) 0 0 N/A 7,296,832 N/A 8,424,676 26,854,547 (68.6)
------ ------ --------- ---------- --------- ---------- ----------- ---------
Production
------ ------ --------- ---------- --------- ---------- ----------- ---------
Gold (oz) 7,017 9,642 (27.2) 13,331 (47.4) 42,537 79,669 (46.6)
------ ------ --------- ---------- --------- ---------- ----------- ---------
Silver (koz) 1 2 (53.3) 3 (75.9) 10 20 (48.0)
------ ------ --------- ---------- --------- ---------- ----------- ---------
Ore Grades
------ ------ --------- ---------- --------- ---------- ----------- ---------
Gold (g/t) 0.00 0.00 N/A 0.51 N/A 0.47 0.53 (10.7)
------ ------ --------- ---------- --------- ---------- ----------- ---------
Silver (g/t) 0.00 0.00 N/A 0.21 N/A 0.17 0.22 (26.0)
------ ------ --------- ---------- --------- ---------- ----------- ---------
Gold production decreased against all comparable periods as the
mine closure process, which started in May 2023, continued as
planned.
JUANICIPIO - ATTRIBUTABLE
4Q23* 3Q23* % Change 4Q22** % Change FY23* FY22** % Change
Ore Processed
(t) 194,189 180,460 7.6 92,840 109.2 710,504 361,843 96.4
-------- -------- --------- ------- --------- -------- -------- ---------
Production
-------- -------- --------- ------- --------- -------- -------- ---------
Silver (koz) 2,523 2,678 (5.8) 1,042 142.2 9,415 5,180 81.8
-------- -------- --------- ------- --------- -------- -------- ---------
Gold (oz) 5,931 5,289 12.1 3,020 96.4 20,570 12,461 65.1
-------- -------- --------- ------- --------- -------- -------- ---------
Lead (t) 2,334 2,150 8.6 647 260.7 7,202 2,755 161.4
-------- -------- --------- ------- --------- -------- -------- ---------
Zinc (t) 3,832 3,227 18.8 1,119 242.5 11,368 4,521 151.5
-------- -------- --------- ------- --------- -------- -------- ---------
Ore Grades
-------- -------- --------- ------- --------- -------- -------- ---------
Silver (g/t) 467 523 (10.7) 415 12.5 472 520 (9.1)
-------- -------- --------- ------- --------- -------- -------- ---------
Gold (g/t) 1.37 1.32 3.5 1.31 4.1 1.27 1.39 (8.7)
-------- -------- --------- ------- --------- -------- -------- ---------
Lead (%) 1.35 1.33 1.5 0.84 61.0 1.15 0.90 27.3
-------- -------- --------- ------- --------- -------- -------- ---------
Zinc (%) 2.44 2.25 8.3 1.60 52.6 2.06 1.72 19.8
-------- -------- --------- ------- --------- -------- -------- ---------
* Includes ore processed from initial tests during the
commissioning of the Juanicipio plant and ore processed at the
Fresnillo and Saucito beneficiation plants.
** Ore processed at the Fresnillo and Saucito beneficiation
plants.
Attributable quarterly silver production decreased 5.8% vs. 3Q23
as stopes with lower silver ore grade were mined from November in
accordance with the mine plan. This was partially mitigated by the
higher volume of ore processed.
Attributable quarterly silver and gold production increased
142.2% and 96.4% vs. 4Q22 respectively, due to the ramp-up
following the commissioning completed in 1Q23, and to a lesser
extent, a higher ore grade.
Full year attributable silver and gold production increased
81.8% and 65.1% vs. FY22 respectively, mainly due to the
commissioning and subsequent ramp up to full nameplate capacity at
the flotation plant, partly offset by the lower ore grades in
accordance with the mine plan.
Attributable quarterly gold production increased 12.1% vs. 3Q23
mainly due to the higher volume of ore processed.
The silver and gold ore grades for 2024 will be provided at the
time of the Company's preliminary results.
SILVERSTREAM
Quarterly silverstream production decreased 8.6% vs. 3Q23 mainly
due to the decrease in volumes of ore processed
and lower ore grade.
Quarterly silverstream production increased 36.2% vs. 4Q22
mainly due to a technical stoppage in December 2022.
Full year silverstream production increased 5.2% vs. FY22 as a
result of the higher volume of ore processed, partly offset by the
lower recovery rate and lower ore grade.
Silver production in 2024 is estimated to be in the range of
2.5-3.5 moz.
ABOUT FRESNILLO PLC
Fresnillo plc is the world's largest primary silver producer and
Mexico's largest gold producer, listed on the London and Mexican
Stock Exchanges under the symbol FRES.
Fresnillo plc has eight operating mines, all of them in Mexico -
Fresnillo, Saucito, Juanicipio, Ciénega, Herradura,
Soledad-Dipolos(1) , Noche Buena and San Julián (Veins and
Disseminated Ore Body) and four advanced exploration projects -
Orisyvo, Rodeo, Guanajuato and Tajitos as well as a number of other
long term exploration prospects.
Fresnillo plc has mining concessions and exploration projects in
Mexico, Peru and Chile.
Fresnillo plc's goal is to maintain the Group's position as the
world's largest primary silver company and Mexico's largest gold
producer.
(1) Operations at Soledad-Dipolos are currently suspended.
FORWARD-LOOKING STATEMENTS
Information contained in this announcement may include
'forward-looking statements'. All statements other than statements
of historical facts included herein, including, without limitation,
those regarding the Fresnillo Group's intentions, beliefs or
current expectations concerning, amongst other things, the
Fresnillo Group's results of operations, financial position,
liquidity, prospects, growth, strategies and the silver and gold
industries are forward-looking statements. Such forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. Forward-looking statements are not
guarantees of future performance and the actual results of the
Fresnillo Group's operations, financial position and liquidity, and
the development of the markets and the industry in which the
Fresnillo Group operates, may differ materially from those
described in, or suggested by, the forward-looking statements
contained in this document. In addition, even if the results of
operations, financial position and liquidity, and the development
of the markets and the industry in which the Fresnillo Group
operates are consistent with the forward-looking statements
contained in this document, those results or developments may not
be indicative of results or developments in subsequent periods. A
number of factors could cause results and developments to differ
materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity
prices, changes in regulation, currency fluctuations (including the
US dollar and Mexican Peso exchanges rates), the Fresnillo Group's
ability to recover its reserves or develop new reserves, including
its ability to convert its resources into reserves and its mineral
potential into resources or reserves, changes in its business
strategy and political and economic uncertainty.
[1] Au:Ag ratio of 80:1
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END
UPDBUGDBUBDDGSS
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