Fresnillo Plc · LSE:FRES
Fresnillo — Denver Gold Forum 2022
19 slides from Fresnillo's conference presentation, Sep 19, 2022
Slide 1: Denver Gold Forum 19 September 2022
D E N V E R G O L D F O R UM 19 SEPTEMBER 2022 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: Fresnillo at a Glance
PRESNILLO AT A GLANCE av FRESNILLO.
Slide 4: Fresnillo at a Glance
D E N V E R G O L D F O R U M 2 0 2 2 - F R E S N I L L O AT A G L A N C E 4 2 Au:Ag ratio of 1:80
Slide 5: Investment Proposition
INWleS TMNT PROPOSITION av FRESNILLO.
Slide 6: Our key competitive advantages position us to meet near-term commitments and drive long-term value
DENVER GOLD FORUM 2022 6 OUR KEY COMPETITIVE ADVANTAGES POSITION US TO MEET NEAR-TERM COMMITMENTS AND DRIVE LONG-TERM VALUE #1 SILVER HIGH QUALITY HEALTHY MARGINS, PRODUCER MINING ASSETS FOCUS ON COST ~ 113Moz 2.3 Boz ~ 37% Silver Equivalent ounces Silver Resources 1H22 EBITDA Margin in 2021 39.0 Mo
Slide 7: Production - High Quality Assets
DENVER GOLD FORUM 2022 - HIGH QUALITY ASSETS 7 140 200 PRODUCTION (EQ AG OZ) PER THOUSAND SHARES PRODUCTION (EQ AG OZ) PER PRODUCTION EQ AG MOZ) 120 160 THOUSAND SHARES PRODUCTION 100 120 80 80 60 40 40 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 6,000 7.5 AG EQ RERS
Slide 8: On track to meet 2022 guidance
DENVER GOLD FORUM 2022 - HIGH QUALITY ASSETS 8 ON TRACK TO MEET 2022 GUIDANCE SILVER 27.6moz PRODUCTION 50.5 – 56.6moz 1H Guidance GOLD 308.8koz PRODUCTION 600 – 650koz 1H Guidance
Slide 9: Healthy margins supported by a focus on cost
D E N V E R G O L D F O R U M 2 0 2 2 - 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 9 FOCUS ON COST 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 29% Margin 1,081 1,045 1,096 900 2018 2019 2020
Slide 10: Disciplined approach to development
DENVER GOLD FORUM 2022 DISCIPLINED APPROACH TO 10 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 an Soledad-Dipolos began Noche Buena began commissioning commissioning
Slide 11: Juanicipio (JV with MAG Silver, Fresnillo: 56%)
DENVER GOLD FORUM 2022 - DISCIPLINED APPROACH TO DEVELOPMENT 11 J U A N I C I P I O ( J V W I T H M A G S I LV E R . F R E S N I L L O : 5 6 % ) • Next major growth project with an expected average annual production of 11.7 moz of silver and 43.5 koz of gold • Construction of the flotation plant con
Slide 12: 2022 Budget: US$180m
DENVER GOLD FORUM 2022 - DISCIPLINED APPROACH TO DEVELOPMENT 12 2022 Budget: US$ 180m
Slide 13: Commitment to sustainable business practices
D E N V E R G O L D F O R U M 2 0 2 2 - 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 13 PRACTICES 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
Slide 14: Strong balance sheet, underlined by demonstrated solid financials
D E N V E R G O L D F O R U M 2 0 2 2 - 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 14 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% 2,430 45% 600 44% 1,206 0.4 1,000 2,104 2
Slide 15: Outlook
8 ovTLoor av FRESNILLO.
Slide 16: Expected attributable production profile
D E N V E R G O L D F O R U M 2 0 2 2 – 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 16 PROFILE Production guidance range +/- 5% Million Oz Silver * Thousand Oz Gold 70 800 60 700 50 600 40 500 4 400 30 300 20 200 10 100 0 0 2021 2022 2023 2024 2021 2022 2023 2024 Thousand Tons Lead Tho
Slide 17: Capex spend expectations
D E N V E R G O L D F O R U M 2 0 2 2 – C A P E X S P E N D E X P E C TAT I O N S 17 Increase in sustaining capex seen in 2022 driven by a one off purchase of equipment to substitute for loss of contractor equipment following labour reform. Expected to be offset through lower contractors costs in th
Slide 18: Consolidated outlook
D E N V E R G O L D F O R U M 2 0 2 2 – C O N S O L I D AT E D O U T L O O K 18 1 Expected Avg.2 Investm ent YEAR (US$ m illion) Annual 2021 2022 2023 2024 2025 2026 2027 Production PROJECT 3.5 m oz Ag & PYRITES PLANT 155 PRODUCTION 13 koz Au (Optimization project) ENERGY SUPPLY 3 11.7 m oz Ag & MIN
Slide 19: Concluding remarks
DENVER GOLD FORUM 2022 – CONCLUDING REMARKS 19 ROBUST PROACTIVE JUANICIPIO RAMP UP MAINTAIN CLOSE COST SHORT AND MEDIUM OPERATIONAL AND MANAGEMENT OF IMMINENT CONTROLS TERM PRODUCTION FINANCIAL LABOUR AND OTHER OUTLOOK PERFORMANCE OPERATIONAL UNCHANGED CHALLENGES FOCUS ON GROWTH PROJECTS