Fresnillo Plc · LSE:FRES
Fresnillo — Non-Deal Roadshow (December 2012)
18 slides from Fresnillo's roadshow presentation, Dec 15, 2012
Slide 1: UBS Mining Reverse Roadshow
Strengthening our precious metals position UBS Mining Reverse Roadshow December 15, 2012 LSE:Fres BMV:Fres www.fresnilloplc.com
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”, “int
Slide 3: Company profile
Company profile • We are the world’s leading silver producer and Mexico’s second largest gold Who we are producer. • Headquartered in Mexico City, our shares trade on the London and Mexican Stock Exchanges. • Our business spans the full mining value chain: exploration, development, What we do constr
Slide 4: Fresnillo plc at a glance
Fresnillo plc at a glance • Seven operating mines and one Silverstream 2011 PRODUCTION SILVER GOLD (Koz) (Oz) Fresnillo mine Silver underground mine 30,295 26,237 Saucito mine Silver underground mine 5,904 33,493 Ciénega unit: Ciénega mine Gold-Silver underground mines 1,474 116,841 San Ramón satell
Slide 5: Fresnillo plc at a glance
Fresnillo plc at a glance 2011 Highlights • Revenues: US$2.2 billion • Operating profit: US$1.4 billion • Total assets: US$2.8 billion • Risk capital invested in exploration: US$179 million • Market cap @ 31/Oct/12: US$22.1 billion • Total workforce: 5,303 (57.5% unionised employees and 42.5% contra
Slide 6: Our business model and the disciplined execution of our strategy
Our business model and the disciplined execution of our strategy seek to create shareholder value across precious metal prices 1 Maximise the potential of existing operations • Operate at 100% capacity • Low-cost producer 2 • Optimise mining method and Deliver growth through metallurgy to maintain h
Slide 7: H1 2012 Operational Highlights
H1 2012 Operational Highlights • Record attributable gold production of 248,795oz, up 20.5% • Gold production profile strengthened due to the start-up of Noche Buena • Silver production, including Silverstream, decreased by 6.5% as a result of the expected lower ore grade at Fresnillo • On track to
Slide 8: H1 2012 Financial Highlights
H1 2012 Financial Highlights Profit and Loss: • Average realised silver price US$30.97 per oz, down 13.3% • Average realised gold price US$1,645.50 per oz, up 12.5% • Adjusted Revenue of US$1,141.7m, up 2.5% • Gross Profit of US$705.4m, down 8.9% • EBITDA decreased by 9.2% to US$684.4m with strong E
Slide 9: H1 2012 Financial Highlights
H1 2012 Financial Highlights Cash Flow: • Cash generated by operations before changes in working capital US$715.8 million • US$140.5 million capital invested in exploration (including US$36.5 million which were capitalised) • US$239.6 million invested in CAPEX • US$312.6 million paid in dividends •
Slide 10: Operations Review – Fresnillo District
Operations Review – Fresnillo District FRESNILLO SAUCITO H1 2012 H1 2011 Change % H1 2012 H1 2011 Change % Attributable production Silver m oz 13.4 16.9 -3.5 -20.7 3.2 1.9 1.3 68.1 Gold k oz 15.9 12.5 3.4 27.2 21.7 9.1 12.6 137.9 Lead kt 8.7 6.7 2.0 29.1 1.1 0.6 0.6 105.0 Zinc kt 8.3 6.6 1.7 26.3 0.
Slide 11: Operations Review – Ciénega District
Operations Review – Ciénega District CIÉNEGA H1 2012 H1 2011 Change % Attributable production Gold k oz 65.3 53.4 12.0 22.4 Silver m oz 1.2 0.6 0.6 106.6 1 Adjusted Revenue Adj Revenue US$ m 148.4 108.0 40.4 37.5 Contribution % 13.0 9.7 Costs Cost per tonne US$/t 74.1 70.1 4.1 5.8 Cost per AU oz US$
Slide 12: Operations Review – Herradura District
Operations Review – Herradura District HERRADURA SOLEDAD-DIPOLOS NOCHE BUENA H1 2012 H1 2011 Change % H1 2012 H1 2011 Change % H1 2012 H1 2011 Attributable production Gold k oz 94.4 88.2 6.2 7.0 38.9 43.3 -4.4 -10.2 12.6 0.0 Adjusted Revenue 1 Adj Revenue US$ m 278.8 231.6 47.1 20.3 113.8 111.4 2.4
Slide 13: Operations Review – YTD production
Operations Review – YTD production On track to achieve annual silver production target of 41Moz and 460,000 ounces of gold. JAN-SEP PRODUCTION SILVER GOLD (Koz) (Oz) Fresnillo mine Silver underground mine 19,897 22,857 Saucito mine Silver underground mine 5,048 34,105 Ciénega unit: Ciénega mine Gold
Slide 14: Exploration update
Exploration update Fresnillo District • 60moz resource identified deep near Total revised exploration budget for 2012: US$338 m San Carlos shaft • New vein drilled south of mine area Budget Herradura District allocation • Drilling continued at Centauro pit with good intersections to over 1400 m belo
Slide 15: On track to produce 65 million ounces of silver and over 500,000 ounces of gold by 2018
On track to produce 65 million ounces of silver and over 500,000 ounces of gold by 2018 SILVER GOLD MOz KOz 65 MOz 500 KOz Saucito I (ramp-up) Dynamic leaching plant Saucito II Noche Buena (ramp-up San Julián and expansion) Juanicipio San Julián Expansion at Fresnillo Centauro Deep …and to support t
Slide 16: Estimated project delivery programme
Estimated project delivery programme On track to produce 65moz of silver and 500,000 oz of gold by 2018 K K K K K K 11/15/2012 16
Slide 17: Conclusion
Conclusion • Amidst the uncertain global economic climate, Fresnillo delivered on all fronts as expected • Cost inflation was controlled, strong EBITDA margins maintained, and Fresnillo remains a lowest quartile cash cost precious metals producer • We remain committed to delivering on the Group’s pr
Slide 18: Conclusion and Outlook
Conclusion and Outlook We will continue to build upon our competitive differentiators: Operational excellence World class assets Experienced personnel, efficient mining We operate the largest primary silver mine in methods, continuous reserve replenishment the world and control the largest area of a