Fresnillo Plc · LSE:FRES
Fresnillo — Bank of America Merrill Lynch Global Metals and Mining Conference 2010
14 slides from Fresnillo's conference presentation, May 12, 2010
Slide 1: Fresnillo plc
Fresnillo plc Jaime Lomelin CEO Bank of America Merrill Lynch Global Metals and Mining Conference May 12, 2010
Slide 2: Disclaimer
Disclaimer This document includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “inte
Slide 3: Agenda
Agenda 2009 Highlights Operations and Growth Strategy Exploration Conclusions Q&A 2
Slide 4: 2009 Highlights – A Strong Platform for Growth
2009 Highlights – A Strong Platform for Growth Operations Record attributable silver production of 37.9m oz, up 9% Gold production of 276,600 oz, up 5% Lowest quartile cost producer Financials Adjusted Revenue1 of US$944.0m, up 12% Gross Profit of US$528.3m, up 26% EBITDA of US$496.6m, up 47% Attrib
Slide 5: 2009 Highlights – A Strong Platform for Growth
2009 Highlights – A Strong Platform for Growth Development Projects Soledad-Dipolos project completed ahead of schedule and within budget Saucito development project construction on track, with planned start up in 2011 Exploration 15% increase in total silver and gold resource base Mineralisation ex
Slide 6: Operations
Operations Fresnillo - Underground Ciénega - Underground Herradura – Open pit 2009 Attributable production Silver: 35.4m oz 4.9% 1.6m oz 67.3% 0.2m oz 38.5% Gold: 24.7k oz 2.8% 103.5k oz 11.5% 145.5k oz 18.6% Production Costs1 2009 US$36.49/t 11.4% US$59.21/t 6.8% US$5.44/t 9.8% 2008 US$41.19/t US$6
Slide 7: Strong 1Q 2010 …. and a new mine in operation, Soledad–Dipolos
Strong 1Q 2010 1Q 10 Attributable production Vs 1Q 09 Development projects and Expansions Exploration Silver: 9.5 m oz 3.0% Saucito - On track Noche Buena - Drilling completed Gold: 85.0 k oz 31.5% - Saucito shaft in operation - Started pre-feasibility - Mills and cell house San Julian - Still growi
Slide 8: Aim to bring one new mine or expansion on stream per year until 2014
Aim to bring one new mine or expansion on stream per year until 2014 Silver Gold m oz k oz Project 2010 2011 2012 2013 2014 60 1,200 Soledad - Production Expansion Expanded Production Dipolos 50 1,000 Ciénega Expansion Expanded Production 40 800 Reserve Expanded Saucito Production Expansion 30 600 D
Slide 9: Audited Resources and Reserves
Audited Resources and Reserves Metal contained in Total Resources Substantial increase in Total Resources (Measured, Indicated 1,500 Silver (Moz) and Inferred): 1,200 Gold 13.907m oz, up 15.8% 900 Silver 1,289m oz, up 15.6% 600 300 Total Reserves: 2008 2009 Gold 4.257m oz, up 3.5% Silver 374m oz, do
Slide 10: Development project
Development project Minera Saucito Indicated Resources of 123.2m oz of silver (+80%) and 0.562m oz of gold (+30%). Inferred Resources of 162.5m oz of silver and 0.652m oz of gold Jarillas, Mezquite and Santa Natalia veins in drilling and still growing Saucito shaft commissioned and in operation Plan
Slide 11: Brownfield Exploration
Brownfield Exploration Nochebuena Located 23km SE of the Herradura mine Diamond drill for reserve calculation completed Pre-feasibility to be started after reserve calculation is completed in May Initial resource of 600,000 oz of gold and potential for a satellite heap leach operation Gold equivalen
Slide 12: Exploration Prospects
Exploration Prospects San Julián Mining district with disseminated silver-lead-zinc and several epithermal silver-gold veins Exploration ramp being extended and a second ramp initiated A scoping study to be concluded in 1H2010 Upgrading resources for pre-feasibility study Orisyvo Porphyry-related go
Slide 13: 2010 Outlook
2010 Outlook Silver production expected to be in line with 2009 Gold production expected to be higher reflecting Soledad-Dipolos contribution Saucito construction on track, with planned start up in 2011 Ciénega expansion to be completed Larger exploration budget Stable ore grades Continued focus on
Slide 14: On track to bring one new mine or expansion on stream per year until 2014
On track to bring one new mine or expansion on stream per year until 2014 Operation Financials Growth Near term Long term … to produce 65m oz of silver and over 400k oz of gold by 2018 13 11
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