Fresnillo Plc · LSE:FRES
Fresnillo — Q4 2024 Earnings Presentation
48 slides from Fresnillo's earnings presentation, Mar 4, 2024
Slide 1: Full Year Preliminary Results
F U L L YE A R P R E L IM IN A RY R E S U LT S 04 M AR C H 2025 LSE: FRES BMV: FRES www.fresnilloplc.com
Slide 2: Disclaimer
D IS CL A IMER 2 This document includes statements that are, or may be deemed to be, “forward-looking A number of factors could cause results and developments to differ materially from those statements”. These forward-looking statements can be identified by the use of forward- expressed or implied b
Slide 3: Agenda
A GE ND A 3 01 Investment Proposition & 2024 Highlights 02 HSECR 03 Operational performance 04 Reserves, resources and exploration 05 Financial performance 06 Outlook
Slide 4: Investment Proposition & 2024 Highlights
INVESTMENT PROPOSITION & 2024 HIGHLIGHTS O C TAVI O A LV Í D R EZ
Slide 5: 2024 Preliminary Results – Key Messages
2 0 2 4 P R E L I M I N A RY R E S U LT S – K E Y M E S S A G E S 5 • Stabilisation of operations across the portfolio delivering expected production levels across all mines • Successful delivery of cost saving initiatives leading to improving margins • Strong free cash flow and a robust balance she
Slide 6: Investment Proposition: Delivering Long-Term Value
2 0 2 4 P R E L I M I N A RY R E S U LT S – I N V E S T M E N T P R O P O S I T I O N 6 DELIVERING LONG-TERM VALUE WORLD’S #1 SILVER SUBSTANTIAL GOLD HIGH QUALITY PRODUCER PRODUCTION MINING ASSETS 56.3 Moz of si lver i n 2024 631.6 koz of gold in 2024 2.25Boz 38.5Moz Silver Resources Gold Resources
Slide 7: Financial Performance Highlights
2 0 2 4 P R E L I M I N A RY R E S U LT S – F I N A N C I A L P E R F O R M A N C E H I G H L I G H T S 7 TOTAL REVENUE (US$) GROSS PROFIT (US$) 3,496.4M +29.3% vs 2023 1,246.3M +147.7% vs 2023 OPERATING PROFIT (US$) EBITDA (US$) 945.8M +563.8% vs 2023 1,547.3M +136.0% vs 2023 CASH & CASH EQUIVALENT
Slide 8: Rigorous Focus on Costs
2 0 2 4 P R E L I M I N A RY R E S U LT S – R I G O R O U S F O C U S O N C O S T S 8 • US$40m net efficiencies from cost saving initiatives delivered, in line with our expectations • Rationalised the contractor base and improved efficiency of maintenance processes across the Group • Connected the t
Slide 9: Silver & Gold Markets
2 0 2 4 P R E L I M I N A RY R E S U LT S - S I LV E R & G O L D M A R K E T S 9 P OS I T I V E F U ND A M E N TA L S C ON T I NU E T O D RI V E D E M A ND F O R P R E CI O US M E TA L S GLOBAL DEMAND FOR GOLD (MOZ) 160 Gold price reached new record highs during the 140 120 year with gold favoured a
Slide 10: HSECR
% HSECR OCTAVIO ALVIDREZ FRESNILLO.
Slide 11: Health & Safety, Environment, Community Relations
2 0 2 4 P R E L I M I N A RY R E S U LT S – H S E C R 11 S U STA I N AB I L I T Y I S C OR E T O O UR P U RP O SE : “ T O CO NT R I B UT E T O T H E W E L L B EI N G OF P E OP L E T H RO UG H T HE S U STA I N AB L E M I N I N G O F S I LV E R A ND G OL D ” HEALTH ENVIRONMENT COMMUNITY & SAFETY RELAT
Slide 12: Operational Performance
O P E R AT I O N A L PERFORMANCE TOMÁS ITURRIAGA & DANIEL DIEZ
Slide 13: Operations: Fresnillo
2 0 2 4 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 13 F R E SN I L L O Production Grade KEY DEVELOPMENTS 15 200 • Silver production decreased driven by lower volume and grade of ore. • Gold, lead and zinc production increased substantially. 150 Million Ounces Grams/tonne 10 • Commissioni
Slide 14: Operations: Saucito
2 0 2 4 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 14 S A UC I T O Production Grade 20 240 15 180 Million Ounces Grams/tonne 10 120 5 60 0 0 2019 2020 2021 2022 2023 2024 KEY OPERATING HIGHLIGHTS 2024 2023 Silver production – moz 14.5 12.1 Gold production – koz 82.7 72.8 Total production
Slide 15: Operations: Juanicipio
2 0 2 4 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 15 J U A NI C I P I O KEY DEVELOPMENTS • Production of all metals increased significantly as 2024 was the first full year operating at nameplate capacity. • Ore grades remained high throughout the majority of the year, trending down in Q
Slide 16: Operations: Herradura
2 0 2 4 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 16 H E RR A DU R A Gold Production KEY DEVELOPMENTS Production Gold Ore Grade Grade • Heavy rainfall in 1H24 delayed access to higher grade oxidised areas, however 6 1 productivity and efficiency plans drove recovery in 2H24. 0.9 5 0.8 •
Slide 17: Operations: Ciénega
2 0 2 4 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 17 C I É NE G A KEY DEVELOPMENTS • Gold and silver production increased due to higher ore grades at Jessica Transversal and Taspana Sur areas. • Productivity increased as the programme to optimise the contractor base and increase the pro
Slide 18: Operations: San Julián
2 0 2 4 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 18 S A N J U L I Á N ( V E I N SY S T E M ) S A N J U L I Á N ( D I S S EM I N AT E D OR E BO DY ) KEY OPERATING HIGHLIGHTS 2024 2023 KEY OPERATING HIGHLIGHTS 2024 2023 Gold production – koz 49.6 41.0 Gold production – koz 1.8 3.5 Silver
Slide 19: Reserves, Resources and Exploration
RESERVES, RESOURCES AND E X P L O R AT I O N O C TAVI O A LV Í D R EZ
Slide 20: Reserves and Resources
2 0 2 4 P R E L I M I N A RY R E S U LT S – R E S E RV E S A N D R E S O U R C E S 20 • Advanced processes and studies to support proven reserve category • More conservative approach to resource and reserve estimation RESOURCES 2.25 Boz 38.5 Moz Silver Gold +1.4% vs 2023 +1.4% vs 2023 RESERVES 331.3
Slide 21: Projects: Solid Project Pipeline for the Future
2 0 2 4 P R E L I M I N A RY R E S U LT S – P R O J E C T S 21 S OL I D P R OJ E C T P I PE L I N E F OR T H E F U T U RE ORISYVO (GOLD) RODEO (GOLD) - Advancing pre-feasibility - Land access obtained studies - Inferred resources converted - Work on permits to indicated progressing - Embarking on pr
Slide 22: Project Timeline
1 2 2 0 2 4 P R E L I M I N A RY R E S U LT S – P R O J E C T T I M E L I N E 22 1 1 (1) Total annual average production Subject to pre-feasability and feasability assessment, final feasibility assessment and board approval
Slide 23: Exploration Update
2 0 2 4 P R E L I M I N A RY R E S U LT S – E X P L O R AT I O N U P D AT E 23 2025 Budget: US$198m Of which 14% mining rights 2024 Highlights: 34% • Exploration expense of US$165.0 million (US$185.9 million in Mine 2023) Operations • Drilled a total of 742,945 metres, 88% of which was focused Devel
Slide 24: Financial Performance
FINANCIAL PERFORMANCE MARIO ARREGUÍN
Slide 25: Income Statement (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U LT S – I N C O M E S TAT EM E N T ( I F R S) 25 (M IL LION USD )
Slide 26: Contribution by Mine and by Metal
2 0 2 4 P R E L I M I N A RY R E S U LT S – C O N T R I B U T I O N B Y M I N E A N D B Y M E TA L 26 TO A DJUSTED REVENUES 2 02 4 A DJ U ST E D R EV E NU E S 1 : US $ 3, 6 3 9. 9 M ( MI L L IO N U SD ) ACCUM DECEMBER CHANGE BY: PRODUCT 2024 2023 VOLUME PRICE TOTAL GOLD 1,514.7 1,186.2 27.7 300.8 32
Slide 27: Consolidated Cost Inflation
2 0 2 4 P R E L I M I N A RY R E S U LT S – C O N S O L I D AT E D C O S T I N F L AT I O N 27 ( USD BASED) Consolidated Unit Price Weighted Increase % Weight (*) Average Labour Unionized Personnel 4.2% 9.3% 0.4% Employees 2.9% 4.7% 0.1% Weighted 3.8% Operating Materials -0.7% 17.0% -0.1% Energy Ele
Slide 28: Adjusted Production Cost Analysis
2 0 2 4 P R E L I M I N A RY R E S U LT S – A D J U ST E D P R O D U C T I O N C O S T A N A LY S I S 28 (CONSOLI DATED, M ILL ION USD ) ACCUM DECEMBER CHANGE CO NCEPT 2024 2023 $ % ADJUSTED PRODUCTION COST 1,582.2 1,624.1 (41.8) (3) PROFIT SHARING 12.3 2.2 10.1 454 DEPRECIATION 619.8 497.3 122.5 25
Slide 29: Gross Profit Analysis
0.0 1,000.0 500.0 833.3 166.7 333.3 666.6 Higher Metal Prices (Au USD MILLION 1 +25.0%, Ag +22.6% and Zn External effects. +8.7%) 626.3 (CONSOLI DATED, USD M IL LION) 2 Net Effect of Change in Volume of Ore Processed 126.6 Gross Profit 3 Net increase in ore grades and recoveries 51.7 4 Net operating
Slide 30: Income Statement (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U LT S – I N C O M E S TAT EM E N T ( I F R S) 30 (M IL LION USD ) 2024 2023 Initial MXP / USD exchange rate 16.8935 19.3619 Final MXP / USD exchange rate 20.2683 16.8935 % devaluation / (revaluation) 20.0 (12.8) MXP vs USD Exchange rate effect on tax value 300.2 (
Slide 31: Cash Flow (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U LT S – C A S H F L O W ( I F R S ) 31 (M IL LION USD ) YEAR TO DATE CHANGE CONCEPT 2024 2023 $ % CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 1,559.8 649.3 910.4 140.2 WORKING CAPITAL (162.9) 20.6 (183.5) N/A INCOME TAX AND PROFIT SHARING PAID (
Slide 32: Balance Sheet (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U LT S – B A L A N C E S H E E T ( I F R S ) 32 (M IL LION USD ) Change Concept 31-DEC-24 31-DEC-23 % Assets Cash and Investments 1,297.8 534.6 142.8 Trade and Other Receivables 674.2 482.4 39.8 Inventories 482.2 532.7 (9.5) Prepaid Expenses 13.9 23.2 (40.1) Silver
Slide 33: Outlook
OUTLOOK OCTAVIO ALVIDREZ y 4 4 FRESNILLO.
Slide 34: Expected Attributable Production Profile
2 0 2 4 P R E L I M I N A R Y R E S U LT S – E X P E C T E D AT T R I B U TA B L E P R O D U C T I O N P R O F I L E 34 Production guidance range +/- 5% Silver* Gold Million Oz Thousand Oz 60 700 50 600 500 40 400 30 300 20 200 10 100 0 0 Actual Real Expectativa 2025 Expectativa 2026 Expectativa 202
Slide 35: Capex Spend Expectations
2 0 2 4 P R E L I M I N A RY R E S U L T S – C A P E X S P E N D E X P E C TAT I O N S 35 Million Usd 600 530 505 500 485 480 • Total capex for 2025 for is expected 4 to be US$530m 400 370 • Some capex expenditure, such as tailings 300 facilities which were awaiting permits, was postponed from 2024
Slide 36: Concluding Remarks
2 0 2 4 P R E L I M I N A RY R E S U LT S – C O N C L U D I N G R E M A R K S 36 OPERATIONAL STRONG FINANCIAL ONE OFF SPECIAL CONSIDERABLE POSITIVE ESG STABILITY WITH A PERFORMANCE, DIVIDEND ALIGNED PROGRESS ON OUTCOMES, WITH FOCUS ON ASSET DELIVERING HIGHER WITH OUR BROWNFIELD IMPROVED SAFETY, OPTI
Slide 37: Appendix
te a FRESNILLO..
Slide 38: Grade Expectations
G R A D E E X P E C TAT I O N S F O R 2 0 2 5 38 GOLD (G/T) MINE MINE TYPE FY 2025e FY 2024 Fresnillo Underground silver 0.60-0.70 0.92 Saucito Underground silver 0.90-1.10 1.40 Juanicipio Underground silver 1.2-1.4 1.25 San Julián (veins) Underground silver & gold 1.10-1.30 1.31 San Julián (dissemi
Slide 39: Reserves & Resources: Silver
R E SE RV E S & R E SOU R C ES 39 L A RG E S I LV E R RE S O UR C E & R E SE R VE B A SE S SILVER RESOURCES RESOURCES CHANGE 2,250Moz Total silver resources 2024** 2,250,464 2023 2,219,713 Koz +30,751 % +1.4% • Silver in consolidated overall mineral resources increased 1.4% to 2.25 bn oz due 2,700,0
Slide 40: Reserves & Resources: Gold
R E SE RV E S & R E SOU R C ES 40 L A RG E GO L D R E S OU R CE & RE S E RV E B AS E S GOLD RESOURCES RESOURCES CHANGE 38.5Moz Total gold resources 2024** 38,470 2023 37,937 Koz +533 % +1.4% • Gold in consolidated overall mineral resources increased 1.4% to 38.5 moz primarily driven by the positive
Slide 41: Income Statement (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U LT S – I N C O M E S TAT EM E N T ( I F R S) 41 (M IL LION USD ) ACCUM DEC 2024 Operating Units ➢ Fresnillo 16.9 ➢ Saucito 10.4 ACCUM DECEMBER ➢ Ciénega CHANGE 4.3 C O N C E P T (Million USD) 2024 % 2023 % $ % ➢ San Julián 13.5 ADJUSTED REVENUES 3,639.9 2,869.1 ➢
Slide 42: Cash Flow (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U LT S – C A S H F L O W ( I F R S ) 42 (M IL LION USD ) • Increase in trade and other accounts receivables • (-US$196.2M):Trade receivables from related parties • -US$241.8 million, VAT +US$40.7 million and Others • +US$4.9 million • Decrease in trade and other pa
Slide 43: Contribution by Mine and by Metal
2 0 2 4 P R E L I M I N A RY R E S U L T S – C O N T R I B U T I O N B Y M I N E A N D B Y M E T A L 43 TO AD JUS TED RE VEN UE S 2 02 4 A DJ U ST E D R EV E NU E S 1 : US $ 3, 6 3 9. 9 M By mine By metal Fresnillo Saucito Ciénega Herradura Silver Gold Noche Buena San Julián DOB San Julián Veins Jua
Slide 44: Cost per Tonne (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U L T S – C O S T P E R T O N N E ( I F R S ) 44 CHANGE 2024 2023 % CHG. COST PER TONNE * MINE UNIT Fresnillo US$/TON 112.23 101.10 11.0% Saucito US$/TON 133.03 141.51 -6.0% Ciénega US$/TON 121.50 135.80 -10.5% San Julián Veins US$/TON 106.14 109.00 -2.6% San Juliá
Slide 45: Cash Cost (IFRS)
2 0 2 4 P R E L I M I N A RY R E S U L T S – C A S H C O S T ( I F R S ) 45 DECEMBER CHANGE 2024 2023 % CHG. CASH COST * MINE UNIT Fresnillo PER OZ. SILVER (Equiv.) 15.42 15.74 -2.0% Saucito PER OZ. SILVER (Equiv.) 13.64 15.09 -9.6% Ciénega PER OZ. GOLD (By-prod.) (111.52) 1,397.24 -108.0% PER OZ. G
Slide 46: All-in Sustaining Cost
2 0 2 4 P R E L I M I N A RY R E S U L T S – A L L I N S U S TA I N I N G C O S T ( U S $ / O Z ) 46 ACCUM DECEMBER 2024 2023 % CHG. CASH COST * MINE UNIT Fresnillo PER OZ. SILVER (Equiv.) 21.97 22.91 -4.1% Saucito PER OZ. SILVER (Equiv.) 18.56 22.64 -18.0% Ciénega PER OZ. GOLD (Equiv.) 1,823.91 2,4
Slide 47: Income Statement and Cash Flow Highlights per Operating Unit
2 0 2 4 P R E L I M I N A RY R E S U L T S – I N C O M E S T AT E M E N T A N D C A S H F L O W 47 H I G H L I G H T S P E R O P E R AT I N G U N I T INCOME STATEMENT ACCUM DECEMBER 2024 C O N C E P T (Million Usd) Fresnillo Juanicipio San Julián Ciénega Saucito Herradura Noche Buena Consolidated AD
Slide 48: Notes
NOTES 48 4