Fresnillo Plc · LSE:FRES
Fresnillo — RBC Silver Conference 2010
14 slides from Fresnillo's conference presentation, Dec 14, 2010
Slide 1: Fresnillo plc RBC Silver Conference
Fresnillo plc RBC Silver Conference Arturo Espinola, Head of Investor Relations December 14/15, 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 Introduction YTD Highlights Operations and Development Projects Financial Highlights Conclusions Q&A 2
Slide 4: Introduction
Introduction Aim to produce 65m oz of silver and over 400k oz of gold by 2018 Fresnillo, the world’s largest primary silver producer and Mexico’s second largest gold producer Highly experienced management team with proven track record in exploration, development, construction and operation Four oper
Slide 5: Listed on London Stock Exchange: FTSE 100 Company
Listed on London Stock Exchange “FRES” : FTSE 100 Company Recent share price: $25.291 Market Capitalization: $18.1 B Shares Outstanding: 717 mm USA & Scotland Rest of Canada 2% Europe 32% 11% Rest of World 4% England & Wales 51% 1 December 8, 2010 2 November 30, 2010
Slide 6: YTD Highlights – Investing in our future
YTD Highlights – Investing in our future Operations Record Q3 attributable silver and gold production of 9.9 m oz and 91.8k oz respectively Soledad-Dipolos at full capacity Projects Saucito construction on track; start up in 1H11 Ciénega expansion advancing according to plan San Julián and Orisyvo s
Slide 7: Operations - Maximising the potential of existing operations
Operations - Maximising the potential of existing operations Fresnillo–Underground Ciénega–Underground Herradura–Open pit Soledad & Dipolos–Open pit YTD 2010 Attributable production Vs. TYD 2009 Silver: 26.9 m oz 0.6% 0.9 m oz -19.2% 0.2 m oz 39.8% 0.0 m oz Gold: 17.6 k oz -5.5% 84.2 k oz 14.1% 118.
Slide 8: H1 2010 Financial Highlights – A sterling performance
H1 2010 Financial Highlights – A sterling performance Outstanding metal prices average realized silver price US$17.93 per oz, up 28.8 average realized gold price US$1,171.9 per oz, up 27.4% Revenue1 of US$605.7m, up 59.9% EBITDA up 92.7% to US$392.0m, margins increased to 64.7% from 53.7% Net profit
Slide 9: On track to produce 65m oz of silver and over 400k oz of gold by 2018
On track to produce 65m oz of silver and over 400k oz of gold by 2018 Soledad & Dipolos Estimated project delivery programme Commencement of commercial production in January 2010 Project 2010 2011 2012 2013 2014 Contributing 15.6% of the attributable gold production Soledad - Expanding to 130 k ounc
Slide 10: Fresnillo District
Fresnillo District Minera Saucito Positive drilling results on the Jarillas West and Santa Natalia Southeast veins Saucito shaft commissioned and fully operational Jarillas shaft at 208 m depth of 630 m All equipment for the mill has been purchased and construction contracts signed Mine development
Slide 11: Herradura and Ciénega Districts
Herradura and Ciénega Districts Noche Buena Located 24 km from Herradura mine In-house resource calculation 627k oz gold with grade 0.45 g/t and low stripping ratio Drilling and engineering studies continue Prefeasibility study will be concluded in 2010 All the surface land required has been secured
Slide 12: Advanced Exploration Prospects – To become new operating districts
Advanced Exploration Prospects – To become new operating districts Orisyvo Large porphyry related gold system Drilling extended the upper north and west oxide gold deposits and the deeper central sulphide zone Exploration potential is open to the north and east Construction of a 1.5 km exploration a
Slide 13: Creating value through leadership, quality and sustainable growth
Creating value through leadership, quality and sustainable growth Focus on health and safety performance Maintaining positive and productive relations with the labour force and communities where we operate Commitment to growth and the development of further world-class assets We continue to focus on
Slide 14: 2010 Outlook
2010 Outlook Silver production expected to be in line with 2009 (38 m oz) Gold production expected to be 340,00 oz reflecting Soledad-Dipolos start-up Saucito construction and Ciénega’s expansion on track, with planned start up in H1 2011 Record Fresnillo’s exploration budget, US$119.2 million with