TIDMFRES
RNS Number : 7833Q
Fresnillo PLC
23 October 2019
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
23 October 2019
THIRD QUARTER PRODUCTION REPORT
FOR THE THREE MONTHSED 30 SEPTEMBER 2019
Octavio Alvídrez, Chief Executive Officer, said:
"We continued to implement the performance improvement plan for
our Fresnillo District mines during the third quarter. This
programme includes intensive infill drilling to improve the
geological model, dilution control and raising development rates,
whilst also taking actions to address maintenance performance,
contractor productivity and equipment availability. As a result,
while grades remain variable, we are now processing higher volumes
of ore on a more consistent basis at Fresnillo.
"Our development pipeline is progressing well. Construction of
our next major mine Juanicipio is moving forwards. The second phase
of the pyrites plant project and the optimisation of the
beneficiation plant to deal with higher lead and zinc grades at the
Fresnillo mine remain on track. Both are due to be commissioned in
the second half of 2020."
TOTAL PRODUCTION
YTD
3Q19 2Q19 % Change 3Q18 % Change 19 YTD 18 % Change
Silver (koz) 12,624 13,636 -7.4 14,738 -14.3 38,633 43,432 -11.0
-------- --------- --------- -------- --------- -------- -------- ---------
Silverstream
(koz) 659 782 -15.7 796 -17.2 2,207 2,865 -23.0
-------- --------- --------- -------- --------- -------- -------- ---------
Total Silver
(koz) 13,283 14,418 -7.9 15,533 -14.5 40,839 46,297 -11.8
-------- --------- --------- -------- --------- -------- -------- ---------
Gold (oz) 209,752 221,307 -5.2 225,202 -6.9 642,169 690,501 -7.0
-------- --------- --------- -------- --------- -------- -------- ---------
Lead (t) 15,561 13,039 19.3 13,076 19.0 40,725 37,928 7.4
-------- --------- --------- -------- --------- -------- -------- ---------
Zinc (t) 25,340 20,654 22.7 22,935 10.5 67,746 63,989 5.9
-------- --------- --------- -------- --------- -------- -------- ---------
HIGHLIGHTS
Silver
-- Quarterly silver production of 13.3 moz (including
Silverstream) down 7.9% vs. 2Q19 mainly driven by a lower ore grade
at Saucito and at San Julián Disseminated Ore Body (DOB).
-- Quarterly silver production (including Silverstream) down
14.5% vs. 3Q18 primarily driven by the expected lower ore grade at
Saucito and, to a lesser extent, lower ore grades at Fresnillo and
San Julián (veins and DOB).
-- Year to date silver production (including Silverstream) down
11.8% vs. YTD18 due to lower ore grades at both Fresnillo and
Saucito.
Gold
-- Quarterly gold production of 209.8 koz, down 5.2% vs. 2Q19
mainly due to a lower ore grade at Herradura.
-- Quarterly gold production down 6.9% vs. 3Q18 as a result of a
lower grade and lower volume of ore processed at both Herradura and
San Julián veins, and a lower volume of ore processed at Noche
Buena.
-- Year to date gold production down 7.0% vs. YTD18 driven by a
lower volume of ore processed at Noche Buena, lower speed of
recovery and volume of ore processed at Herradura and lower ore
grade at San Julián Veins.
By-Products
-- Quarterly by-product lead production increased 19.3% and
19.0% vs. 2Q19 and 3Q18 due to a higher ore grade and ore
throughput at Fresnillo and a higher ore grade and improved
recovery rate at Ciénega.
-- Year to date lead production increased 7.4% vs. YTD18 due to
higher recovery rate and ore grade at San Julián DOB and a higher
ore grade at Saucito.
-- Quarterly by-product zinc production increased 22.7% and
10.5% vs. 2Q19 and 3Q18 primarily driven by higher ore grade,
volume of ore processed and recovery rate at Fresnillo.
-- Year to date by-product zinc production increased 5.9% vs
YTD18 due to higher grades and recovery rates at Ciénega and
Saucito and higher ore grade at San Julián DOB, offset by a lower
ore grade and rate of recovery at Fresnillo.
Development Projects
-- Construction of the Juanicipio project continued, with
development already reaching over 22 kms. A new contractor has been
appointed to further accelerate development rates. We are
concluding the detailed engineering.
-- Construction of the Pyrites plant (phase II) in the Fresnillo
district remains on track and on budget, with commissioning
expected in 2H20.
-- Fresnillo flotation plant optimisation to cope with higher
content of lead and zinc is progressing according to plan and is
expected to be concluded on time by 2H20.
Outlook
-- FY 2019 silver and gold production likely to be at the lower
end of the guided ranges of 55-58 moz (including Silverstream)
silver and 880-910 koz gold respectively.
-- Higher volume of ore processed at Fresnillo combined with
higher grades at Saucito and Fresnillo expected to result in higher
overall fourth quarter silver production.
-- Completion of the 13(th) leaching pad at Herradura and faster
speed of recovery expected to result in higher overall fourth
quarter gold production.
CAPITAL MARKETS DAY
Fresnillo plc will host a Capital Markets Day on the 2(nd) of
December, during which the senior management team will provide
further information on the asset portfolio including initiatives to
address near term performance, development projects, exploration
and costs.
There will be a conference call for analysts and investors on
Wednesday 23rd October at 8:00am (London time). The dial in details
are as follows:
UK: 0808 109 0700
Int'l access: +44 (0) 20 3003 2666
Participant password: Fresnillo
A replay of the call will also be available for seven days after
the event and details to access it will be published in our website
after the conference call.
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
Patrick Chambers
Mexico City Office Tel: +52 55 52 79 3206
Ana Belem Zárate
POWERSCOURT Tel: +44 (0)20 7250 1446
Peter Ogden
MINING OPERATIONS
FRESNILLO MINE PRODUCTION
3Q 19 2Q 19 % change 3Q 18 % change YTD 19 YTD 18 % change
Ore Processed
(t) 648,646 619,852 4.6 613,794 5.7 1,842,845 1,872,110 -1.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,408 3,455 -1.3 3,745 -9.0 9,815 11,873 -17.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 15,601 13,489 15.7 10,469 49.0 40,535 31,853 27.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 7,037 5,233 34.5 4,917 43.1 15,806 15,752 0.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 10,225 6,710 52.4 8,096 26.3 22,182 24,941 -11.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 183 192 -4.8 211 -13.2 186 218 -14.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.99 0.90 9.4 0.68 44.5 0.91 0.68 32.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 1.24 0.97 27.2 0.89 39.3 0.99 0.93 5.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 2.14 1.60 33.9 1.81 18.0 1.70 1.82 -6.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver production was broadly stable vs. 2Q19. The investments
in technology and systems made during the year are starting to have
a positive impact on the volumes of ore processed, while as
expected, ore grade continues to be variable as the other
initatives, including the infill drilling programme, sampling,
actions to reduce dilution and actions to increase development
rates, start to have a positive impact.
Quarterly and YTD silver production decreased 9.0% and 17.3% vs.
3Q18 and YTD18 due to the lower silver ore grade resulting from the
differences with the geological model, higher dilution in narrower
veins and limited access to higher grade areas caused by delays in
development.
Mine performance improvement remains a key priority. The infill
drilling programme continues to progress well and is expected to
result in an updated and more accurate geological model. We expect
better dilution control with the use of a more efficient and
accurate topographic scanner and improved blasting patterns and
drilling techniques to adjust for the narrower vein widths.
Development rates averaged 3,200 metres per month in 3Q19 with
the tunnel boring machine due to begin operating in 4Q19.
Quarterly by-product gold production increased against all
comparable periods as a result of higher ore grades.
Silver ore grade in 2019 is expected to remain between 190-200
g/t, while gold, lead and zinc ore grades are estimated to
marginally increase to levels of 0.90 g/t, 0.95% and 1.60%
respectively.
SAUCITO MINE PRODUCTION
3Q 19 2Q 19 % change 3Q 18 % change YTD 19 YTD 18 % change
Ore Processed
(t) 703,002 662,023 6.2 713,441 -1.5 2,030,675 2,098,449 -3.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 4,040 4,507 -10.4 4,897 -17.5 12,879 14,890 -13.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 21,096 17,987 17.3 23,558 -10.5 57,812 63,160 -8.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 4,906 4,562 7.5 5,791 -15.3 15,345 14,301 7.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 6,655 5,941 12.0 7,909 -15.9 21,707 19,374 12.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 207 242 -14.7 250 -17.2 230 257 -10.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.22 1.15 6.1 1.34 -9.0 1.16 1.24 -5.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.84 0.83 1.6 0.95 -11.5 0.90 0.80 12.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 1.38 1.33 3.2 1.61 -14.7 1.55 1.41 9.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production decreased 10.4% vs. 2Q19, driven by
the expected lower ore grade in line with the gradual depletion of
higher grade areas and increased dilution, resulting from a
decrease in the Jarillas vein width. This was mitigated by a higher
volume of ore processed.
In line with our expectations, quarterly and year to date silver
production decreased 17.5% and 13.5% vs. 3Q18 and YTD18
respectively due to a lower ore grade and to a lesser extent, lower
volume of ore processed. The lower ore grade is a result of the
gradual depletion of higher ore grade areas.
The infill drilling programme to increase the certainty of the
geological model continues. In addition, further actions such as
adjusting the blasting patterns are being taken to reduce
dilution.
The silver ore grade for 2019 continues to be in the range of
230-240 g/t, while gold ore grade is estimated to remain around the
1.1 g/t mark.
Quarterly by-product gold production increased 17.3% vs. 2Q19
due to a higher volume of ore processed, recovery rate and ore
grade. Quarterly and year to date by-product gold production
decreased 10.5% and 8.5% vs 3Q18 and YTD18 respectively driven by
lower grades and to a lesser extent, lower volume of ore
processed.
PYRITES PLANT (PHASE I)
3Q 19 2Q 19 % change 3Q 18 % change YTD 19 YTD 18 % change
Ore Processed
(t) 38,572 39,159 -1.5 63,336 -39.0 125,557 75,081 67.2
------- ------- --------- ------- --------- -------- ------- ---------
Production
------- ------- --------- ------- --------- -------- ------- ---------
Silver (koz) 285 333 -14.3 434 -34.4 923 507 82.0
------- ------- --------- ------- --------- -------- ------- ---------
Gold (oz) 954 1,215 -21.5 1,418 -32.7 3,270 1,604 103.8
------- ------- --------- ------- --------- -------- ------- ---------
Ore Grades
------- ------- --------- ------- --------- -------- ------- ---------
Silver (g/t) 314 352 -10.7 423 -25.8 308 428 -28.0
------- ------- --------- ------- --------- -------- ------- ---------
Gold (g/t) 2.44 2.57 -5.2 2.87 -15.1 2.35 2.95 -20.3
------- ------- --------- ------- --------- -------- ------- ---------
Quarterly silver and gold production decreased 14.3% and 21.5%
vs. 2Q19 mainly due to lower ore grade material sent from the
flotation plant and a lower gold recovery rate.
Quarterly silver and gold production decreased 34.4% and 32.7%
vs. 3Q18 respectively due to the lower ore grade and volume of ore
processed following the depletion of the pre-operative high grade
stockpile. This was mitigated by a higher recovery rate.
The plant was commissioned mid-2018, thus comparable figures vs.
YTD18 are not relevant.
CIENEGA MINE PRODUCTION
YTD YTD
3Q 19 2Q 19 % change 3Q 18 % change 19 18 % change
Ore Processed
(t) 335,493 329,117 1.9 332,493 0.9 985,600 983,378 0.2
-------- -------- --------- -------- --------- -------- -------- ---------
Production
-------- -------- --------- -------- --------- -------- -------- ---------
Gold (oz) 17,858 15,075 18.5 18,214 -2.0 47,615 51,281 -7.1
-------- -------- --------- -------- --------- -------- -------- ---------
Silver (koz) 1,384 1,457 -5.0 1,539 -10.0 4,304 4,296 0.2
-------- -------- --------- -------- --------- -------- -------- ---------
Lead (t) 1,826 1,353 34.9 1,105 65.2 4,160 3,792 9.7
-------- -------- --------- -------- --------- -------- -------- ---------
Zinc (t) 2,755 2,130 29.4 1,889 45.9 6,597 4,125 59.9
-------- -------- --------- -------- --------- -------- -------- ---------
Ore Grades
-------- -------- --------- -------- --------- -------- -------- ---------
Gold (g/t) 1.78 1.57 13.8 1.79 -0.5 1.63 1.70 -4.4
-------- -------- --------- -------- --------- -------- -------- ---------
Silver (g/t) 151 162 -7.0 169 -10.6 159 159 0.0
-------- -------- --------- -------- --------- -------- -------- ---------
Lead (%) 0.81 0.64 26.6 0.57 41.0 0.65 0.64 1.7
-------- -------- --------- -------- --------- -------- -------- ---------
Zinc (%) 1.35 1.10 22.6 0.95 42.7 1.12 0.81 37.4
-------- -------- --------- -------- --------- -------- -------- ---------
Quarterly gold production increased 18.5% vs. 2Q19 while
quarterly silver production decreased 5.0% vs. 2Q19 driven by the
ore grades. This was in line with the mine plan, as we extracted a
higher proportion of material from the eastern zone of the district
with higher gold content and lower silver content.
Quarterly gold and silver production decreased 2% and 10% vs.
3Q18 respectively driven by lower grades in line with the mine
plan.
Year to date gold production decreased 7.1% vs. YTD18 driven by
a lower ore grade resulting from the natural depletion of high ore
grade areas in the deeper levels at Las Casas and East Taspana. A
lower recovery rate further impacted the YTD19 gold production.
Expected gold ore grade in 2019 remains in the range of
1.60-1.70 g/t and silver ore grade is still anticipated to be
between 150-160 g/t.
SAN JULIÁN MINE PRODUCTION
3Q 19 2Q 19 % change 3Q 18 % change YTD 19 YTD 18 % change
Ore Processed Veins
(t) 321,798 338,797 -5.0 332,836 -3.3 983,478 933,353 5.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Processed DOB
(t) 559,693 562,534 -0.5 561,808 -0.4 1,667,567 1,633,528 2.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Total production
at San Julián
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 14,234 18,303 -22.2 19,452 -26.8 50,677 59,341 -14.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,080 3,589 -14.2 3,626 -15.0 9,622 10,726 -10.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 13,711 17,667 -22.4 18,458 -25.7 49,010 57,153 -14.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 1,035 1,246 -16.9 1,347 -23.2 3,365 4,054 -17.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 523 636 -17.7 994 -47.4 1,666 2,188 -23.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 2,045 2,343 -12.7 2,279 -10.3 6,257 6,672 -6.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 1,792 1,891 -5.2 1,263 41.9 5,413 4,083 32.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 5,705 5,873 -2.9 5,041 13.2 17,261 15,548 11.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.39 1.71 -18.7 1.84 -24.7 1.62 1.97 -17.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 108.09 124.34 -13.1 137.19 --21.2 115.89 146.53 -20.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.07 0.08 -17.7 0.11 -38.7 0.08 0.09 -16.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 130.13 149.17 -12.8 155.54 -16.3 134.70 153.03 -12.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.41 0.44 -7.6 0.40 2.6 0.43 0.41 4.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 1.35 1.42 -4.8 1.33 1.6 1.38 1.30 6.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
SAN JULIÁN VEINS
Quarterly silver and gold production decreased 16.9% and 22.4%
vs. 2Q19 respectively due to lower ore grades resulting from
differences with the geological model and a temporary lower volume
of ore processed while we transitioned to a new contractor. That
contractor is now in place and is already operating at the higher
grade areas of the mine.
Quarterly and YTD silver production decreased 23.2% and 17.0%
mainly due to the depletion of high grade areas at the San Julián
and San Atanasio veins.
Quarterly and year to date gold production decreased 25.7% and
14.2% vs. 3Q18 and YTD18 respectively, primarily driven by lower
ore grades resulting from the same reason as explained above.
We expect gold and silver ore grades to remain in the ranges of
1.6-1.7 g/t and 110-125 g/t, respectively.
SAN JULIÁN DISSEMINATED ORE BODY (DOB)
Quarterly silver production decreased 12.7% vs. 2Q19 due to a
lower ore grade. This resulted from the ongoing limited access to
higher grade areas caused by geotechnical conditions. As explained
in prior quarters, the mine sequencing has been changed to maintain
the geotechnical stability of some high ore grade stopes and we
expect to regain access to these higher quality areas by the end of
2020.
Quarterly silver production decreased 10.3% and 6.2% vs. 3Q18
and YTD18, respectively, driven by lower ore grades for reasons
explained above.
The silver ore grade guidance for the full year remains at
125-140 g/t.
HERRADURA TOTAL MINE PRODUCTION
3Q 19 2Q 19 % change 3Q 18 % change YTD 19 YTD 18 % change
Ore Processed
(t) 5,591,746 5,466,791 2.3 5,859,579 -4.6 16,753,610 17,449,647 -4.0
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Total Volume
Hauled (t) 33,396,651 32,100,458 4.0 29,718,422 12.4 94,629,850 97,432,307 -2.9
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Production
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (oz) 102,439 119,987 -14.6 109,630 -6.6 339,305 352,759 -3.8
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (koz) 412 280 47.4 492 -16.3 1,045 1,097 -4.7
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Ore Grades
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (g/t) 0.71 0.84 -16.0 0.76 -6.7 0.79 0.73 7.6
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (g/t) 3.27 2.48 31.4 3.05 7.2 2.89 2.50 15.7
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Quarterly gold production decreased 14.6% vs. 2Q19 due to a
temporary lower ore grade resulting from lower availability of the
dynamic leaching plant, partly mitigated by a higher volume of ore
processed.
Quarterly gold production decreased 6.6% vs. 3Q18 driven by a
lower ore grade and a decrease in the volume of ore deposited due
to the expected higher stripping ratio. This was partly mitigated
by a higher speed of recovery.
Year to date gold production decreased 3.8% vs. YTD18 driven by
a lower volume of ore processed and a slower overall speed of
recovery, as set out in the prior quarters.
The 13(th) leaching pad started operations in 3Q19 and is
expected to improve the overall speed of recovery in 4Q19.
Expected gold ore grade in 2019 remains at 0.70-0.75 g/t.
NOCHE BUENA TOTAL MINE PRODUCTION
3Q 19 2Q 19 % change 3Q 18 % change YTD 19 YTD 18 % change
Ore Processed
(t) 3,215,167 3,663,549 -12.2 4,834,512 -33.5 9,790,495 13,800,217 -21.9
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Total Volume
Hauled (t) 11,447,273 13,135,058 -12.8 20,489,682 -44.1 37,562,882 63,084,240 -40.5
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Production
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (oz) 37,570 35,252 6.6 42,460 -11.5 102,956 130,503 -29.1
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (koz) 14 17 -13.9 5 180.0 43 42 2.6
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Ore Grades
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (g/t) 0.58 0.56 4.9 0.52 11.8 0.55 0.53 3.9
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (g/t) 0.25 0.22 13.2 0.05 448.4 0.23 0.14 60.7
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Quarterly gold production increased 6.6% vs. 2Q19 due to higher
ore grade resulting from the increased mining in deeper areas of
the pit, and an improved recovery rate driven by the larger
irrigation area at the 7(th) leaching pad. This was partly offset
by the expected lower volume of ore processed.
Quarterly and year to date production decreased 11.5% and 21.1%
vs. 3Q18 and YTD18, respectively due to a lower volume of ore
processed, but in accordance with the mine plan, mitigated by
higher ore grades and recovery rates.
Expected gold ore grade in 2019 remains at approximately 0.55
g/t.
SILVERSTREAM
Quarterly Silverstream production decreased 15.7% and 17.2% vs.
2Q19 and 3Q18 respectively driven by lower volumes of ore processed
due to maintenance to the SAG mill and lower equipment
availability, as wellas the expected lower ore grade and lower
recovery rate.
Year to date Silverstream production decreased 23.0% vs. YTD18
due to the expected lower ore grade resulting from the narrower
veins.
UPDATE ON DEVELOPMENT PROJECTS
PYRITES PLANT
Construction of the tailings flotation plant at the Fresnillo
mine (phase II) remains on track and is due to be commissioned in
the second half of 2020. The installation of the flotation cells
and mills continued as well as the construction of the maintenance
workshop and compressors.
This US$155 million project is expected to improve overall
recoveries of both gold and silver by processing historical and
current tailings from the Fresnillo and Saucito mines and once
commissioned and operating at nominal capacity, is expected to
contribute an additional annual production of c. 3.5 moz of silver
and c. 13 koz of gold.
JUANICIPIO
During the period, development of the mine continued reaching
22.7 km. We have made further progress in engineering and commenced
earthmoving and preparation for the construction of the
beneficiation plant.
Juanicipio is expected to contribute a total average annual
production of 11.7 moz silver and 43.5 koz gold, with an initial
life of mine of 12 years.
SAFETY PERFORMANCE
There was a strong safety performance during the third quarter.
The "I Care We Care" programme continues to be rolled across our
operations along with the reinforcement of our safety training for
all employees and contractors among other programmes, to make
safety policies the core priority at every working area. We remain
committed to our zero harm target while maintaining a safe and
healthy workplace.
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 seven operating mines, all of them in Mexico -
Fresnillo, Saucito, Ciénega (including the San Ramón satellite
mine), Herradura, Soledad-Dipolos(1) , Noche Buena and San Julián
(Phase I and II), two development projects - the Pyrites Plant at
Fresnillo and Juanicipio, and three advanced exploration projects -
Orisyvo, Las Casas Rosario & Cluster Cebollitas and Centauro
Deep, 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 has a strong and long tradition of exploring,
mining, a proven track record of mine development, reserve
replacement, and production costs in the lowest quartile of the
cost curve for silver.
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.
LEI: 549300JXWH1UV5J0XV81
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLFXLBLKBFXFBQ
(END) Dow Jones Newswires
October 23, 2019 02:00 ET (06:00 GMT)
Fresnillo (LSE:FRES)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Fresnillo (LSE:FRES)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
