Fresnillo Plc · LSE:FRES
Fresnillo — Denver Gold Forum 2019
15 slides from Fresnillo's conference presentation, Sep 17, 2019
Slide 1: Consolidating our growth, Advancing our pipeline
FRESNILLO. “Consolidating our growth Advancing our pipeline” Tuesday 17‘ September 2019 Octavio Alvidrez, CEO Fresnillo ple
Slide 2: Disclaimer
DISCLAIMER 2 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”, “in
Slide 3: Agenda
AGENDA Fresnillo at a Glance Our investment proposition Investing in the future of the Fresnillo District Outlook Conclusion
Slide 4: Fresnillo at a Glance
FRESNILLO AT A GLANCE World's largest silver producer (61.8 moz in 2018) and Mexico's largest gold producer (922.5 koz in 2018) Total assets of US$4.7 billion! and market cap of US$6.7 billion? Silver resources of 2.2 billion ounces and gold resources of 39.1 million are the foundation for creating
Slide 5: Investment Proposition
INVESTMENT PROPOSITION 5 OUR KEY COMPETITIVE ADVANTAGES POSITION US TO MEET NEAR-TERM COMMITMENTS AND DRIVE LONG-TERM VALUE 2 &® © © Ww HIGH QUALITY ASSETS COMPETITIVE MARGINS DISCIPLINED APPROACH TO COMMITMENT TO SUSTAINABLE STRONG BALANCE SHEET SUPPORTED BY A FOCUS ON DEVELOPMENT BUSINESS PRACTICE
Slide 6: Commitment to Sustainable Business Practices
COMMITMENT TO SUSTAINABLE BUSINESS PRACTICES We believe that responsible mining is compatible with high stakeholder expectations in terms of ethical, social and environmental performance, and recognise that our social licence to operate is dependent upon being trusted by our stakeholders. HEALTH Con
Slide 7: High Quality Assets
a) HIGH QUALITY ASSETS * District consolidation strategy enables us to leverage local knowledge and shared infrastructure * Portfolio contains over 2,204 moz of attributable silver resources and 39.1 moz of gold resources * 2019 production guidance: 55-58 moz silver and 880-910 koz gold GOLD (02) MI
Slide 8: Investing in the Future - Fresnillo District
INVESTING IN THE FUTURE- FRESNILLO DISTRICT 8 FRESNILLO DISTRICT PROGRAMMES ¢ Infill Drilling Programme >» Improve geological certainty * Sampling and Assaying » Improve geological certainty * — Dilution Control > Increase grades * Increase Development Rates Increase operational flexibility * — Pyri
Slide 9: Disciplined Approach to Development - Projects
DISCLIPINED APPROACH TO DEVELOPMENT - PROJECTS 9 PYRITES PLANT PROJECT IN THE FRESNILLO DISTRICT OVERVIEW Expected avg, annual silver production 3.5 moz Expected avg. annual gold production 13.0 koz Expected cash cost (average LoM) $2.51 /oz Expected IRR at US$20/0z Ag & US$1,200/0z Au 29.3% Leachin
Slide 10: Disciplined Approach to Development - Projects Cont...
DISCLIPINED APPROACH TO DEVELOPMENT - PROJECTS Cont... 10 JUANICIPIO wy with Mac SILVER. FRESNILLO: 56%) OVERVIEW 8km from the Fresnillo mine This project is being developed on a stand-alone basis RE EIRIGES MR STES MODE ESIS)s Fresnillo ple will develop, construct and operate Juanicipio. Expected a
Slide 11: Exploration
EXPLORATION 1 2019 Budget: USS 160 M (inc. USS10 M C: 2018 Expense: US$ 172.8 M 42% Mine Operations 30% 33% Advanced Exploration Prospects in drilling 10% 25% Early stage Exploration Underlain by 1.8M hectares of concessions in Mexico, 650k hectares in Peru and 10k hectares in Chile t t Systematic P
Slide 12: Approved by the Board
1 2 3 APPROVED BY THE BOARD SUBJECT TO ONGOING INTERNAL REVIEW (SUBJECT TO BOARD APPROVAL)
Slide 13: Expected Attributable Production Profile
EXPECTED ATTRIBUTABLE PRODUCTION PROFILE 13 Million Oz ATTRIBUTABLE SILVER* Thousand 02 ATTRIBUTABLE GOLD 80 1,000 60 | 800 o | 600 400 2 ; 200 iy 0 2018 2019 2020 2021 2018 2019 2020 2021 “Including Silverstream Thousand Tons Thousand Tons 80 ATTRIBUTABLE LEAD 120 ATTRIBUTABLE ZINC 100 80 40 60 20
Slide 14: Capex Spend Expectations
CAPEX SPEND EXPECTATIONS FRESNILLO 126M SAUCITO 126M CIENEGA 58M SAN JULIAN 55M HERRADURA 49M NOCHE BUENA 12M OTHERS 10M PROJECTS APPROVED JUANICIPIO 126M PYRITES PLANT 46M SAN JULIAN 12M CENTAURO EXTENSION 7™ PROJECTS FOR APPROVAL FRESNILLO OPTIMISATION 25M OTHERS 2M MILLION USD 900 800 700 700 670
Slide 15: Conclusion
CONCLUSION PRIORITISE SAFETY, SUPPORT OF THE WORKFORCE AND ENVIRONMENT CONTINUED OPERATIONAL FOCUS TO MAXIMISE POTENTIAL OF OUR EXISTING MINES 15 CREATE VALUE THROUGH DISCIPLINED GROWTH, EXPLORATION & DEVELOPMENT