Fresnillo Plc · LSE:FRES
Fresnillo — BofA Global Metals, Mining & Steel Conference 2022
20 slides from Fresnillo's conference presentation, May 18, 2022
Slide 1: BofA Global Metals, Mining & Steel Conference
BofA: G L O B A L M E TA L S , M I N I NG & S T E E L C O N F E R E N C E 1 8 M AY 2 0 2 2 á LSE: FRES BMV: FRES www.fresnilloplc.com
Slide 2: Disclaimer
DISCLAIMER 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 by th
Slide 3: Agenda
AGENDA 1 Fresnillo at a glance 2 Investment proposition 2a High quality assets Healthy margins supported by a focus on 2b costs 2c Disciplined approach to development Commitment to sustainable business 2d practices 2e Strong balance sheet 3 Outlook
Slide 4: Fresnillo at a Glance
FRESNILLO AT A G L A N C E
Slide 5: Fresnillo at a Glance
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 5 F R E S N I L L O AT A G L A N C E 2 Au:Ag ratio of 1:80
Slide 6: Investment Proposition
INVESTMENT PROPOSITION —v— FRESNILLO.
Slide 7: Investment Proposition
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 7 INVESTMENT PROPOSITION OUR KEY COMPETITIVE ADVANTAGES POSITION US TO MEET NEAR-TERM COMMITMENTS AND DRIVE LONG-TERM VALUE HIGH QUALITY HEALTHY MARGINS DISCIPLINED COMMITMENT STRONG ASSETS SUPPORTED BY APPROACH TO SUSTAI
Slide 8: High Quality Assets
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 8 HIGH QUALITY ASSETS 140 200 PRODUCTION (EQ AG OZ) PER THOUSAND SHARES 130 180 PRODUCTION (EQ AG OZ) PER PRODUCTION EQ AG MOZ) 120 160 THOUSAND SHARES 110 140 100 120 90 100 80 80 70 60 60 40 50 20 40 - 2007 2008 2009 20
Slide 9: Healthy Margins Supported by a Focus on Cost
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 9 H E A LT H Y M A R G I N S S U P P O R T E D B Y A F O C U S O N C O S T ALL-IN SUSTAINING COST OF GOLD & PRICE EVOLUTION 1 1,792 1,795 AISC (Au eq US$/oz) Au price (US$/oz) 1,392 1,269 39% Margin 42% Margin 22% Margin
Slide 10: Disciplined Approach to Development
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 10 DISCIPLINED APPROACH TO DEVELOPMENT Pyrites Plant phase II commissioned at Fresnillo. Bought Commercial production at Commercial production at Saucito II San Julián phase II back 60% of 2013 bond. Issued a Soledad-Dipo
Slide 11: Disciplined Approach to Development: Juanicipio
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 11 DISCIPLINED APPROACH TO DEVELOPMENT JUANICIPIO (JV WITH MAG SILVER. FRESNILLO: 56%) Flotation cell lines – Lead and Zinc Ore stockpile & beneficiation plant Electrical sub-station
Slide 12: Disciplined Approach to Development
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 12 DISCIPLINED APPROACH TO DEVELOPMENT 2022 Budget: US$ 180m
Slide 13: Sustainability – Creating Long-Term Value with Our Communities
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 13 C O M M I T M E N T T O S U S TA I N A B L E B U S I N E S S P R A C T I C E S S U S TA I N A B I L I T Y – C R E AT I N G L O N G - T E R M VA L U E W I T H O U R C O M M U N I T I E S SOCIAL INVESTMENT PORTFOLIO
Slide 14: Sustainability – Forecasting Our Energy Demand
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 14 C O M M I T M E N T T O S U S TA I N A B L E B U S I N E S S P R A C T I C E S S U S TA I N A B I L I T Y – F O R E C A S T I N G O U R E N E R G Y D E M A N D We recognise that we have a clear responsibility to play o
Slide 15: Strong Balance Sheet
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 15 S T R O N G B A L A N C E S H E E T – U N D E R L I N E D B Y D E M O N S T R AT E D S O L I D F I N A N C I A L S REVENUES EBITDA and EBITDA MARGIN US$mm US$mm 2,500 1,200 0.7 2,000 1,000 0.6 1,500 800 0.5 2,703 48% 2
Slide 16: Outlook
OUTLOOK FRESNILLO.
Slide 17: Outlook - Expected Attributable Production Profile
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 17 O U T L O O K - E X P E C T E D A T 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 Production guidance range +/- 5% Million Oz Silver * Thousand Oz Gold 70 800 60 700 50 600 40 500 400 30 4 300 20 200 10 100 0 0
Slide 18: Outlook - Capex Spend Expectations
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 18 O U T L O O K - C A P E X S P E N D E X P E C T AT I O N S Forecast 2022 US$ Million Million Usd 900 Sustaining (Operations) 800 Fresnillo 115.0 M 4 690 Saucito 154.9 M 700 Ciénega 50.8 M 595 San Julián 67.9 M 600 535
Slide 19: Consolidated Outlook
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 19 C O N S O L I D AT E D O U T L O O K 1 2 Expe cted Avg. Investm ent YEAR (US$ m illion) Annual 2021 2022 2023 2024 2025 2026 Production PROJECT 3.5 m oz Ag & PYRITES 4 PLANT 155 PRODUCTION 13 koz Au (Optimization proje
Slide 20: Concluding Remarks
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 20 CONCLUDING REMARKS WORLD-CLASS ASSETS JUANICIPIO PRIMED TO SAFETY, A CLEAR PLAN TO STRONG EXPLORATION ADD SIGNIFICANT ENVIRONMENTAL CARE RESOLVE POTENTIAL, BACKED SIZEABLE RESOURCES SILVER PRODUCTION, AND COMMITMENT TO
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