Fresnillo Plc · LSE:FRES
Fresnillo — Gold Forum Americas 2023
20 slides from Fresnillo's conference presentation, Sep 18, 2023
Slide 1: Gold Forum Americas
G O L D F O R U M A M E R I CA S 18 SEPTEMBER 2023 OCTAVIO ALVÍDREZ, CEO 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
FRESNILLO AT A GLANCE FRESNILLO.
Slide 4: Fresnillo at a Glance
G O L D F O R U M A M E R I C A S 2 0 2 3 - 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
INVESTMENT PROPOSITION —v— FRESNILLO.
Slide 6: Delivering Long-Term Value Through Steady Progress – FY22 Highlights
GOLD FORUM AMERICAS 2023 6 DELIVERING LONG-TERM VALUE THROUGH STEADY PROGRESS – FY22 HIGHLIGHTS WORLD’S #1 SILVER HIGH QUALITY PRODUCER MINING ASSETS 53.7 Moz 2.2 Boz 39.1Moz of silver in 2022 Silver Resources Gold Resources HEALTHY MARGINS, POSITIVE STRONG WITH A COST FOCUS ECONOMIC IMPACT BALANCE
Slide 7: High Quality Assets
GOLD FORUM AMERICAS 2023 - HIGH QUALITY ASSETS 7 140 180 PRODUCTION (EQ AG OZ) PER THOUSAND SHARES 160 PRODUCTION (EQ AG OZ) PER 120 PRODUCTION EQ AG MOZ) 140 THOUSAND SHARES 100 120 80 100 60 80 60 40 40 20 20 - - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e
Slide 8: Remain on Track to Meet 2023 Guidance
GOLD FORUM AMERICAS 2023 - HIGH QUALITY ASSETS 8 REMAIN ON TRACK TO MEET 2023 GUIDANCE SILVER 28.0moz PRODUCTION 57.0 – 64.0moz 1H Guidance GOLD 325.4koz PRODUCTION 590 – 640koz 1H Guidance
Slide 9: Margins Supported by a Focus on Cost
GOLD FORUM AMERICAS 2023 - MARGINS SUPPORTED BY A FOCUS ON COST 9 ALL-IN SUSTAINING COST OF GOLD & PRICE EVOLUTION AISC (Au eq US$/oz) Au price (US$/oz) 1,948 1,792 1,795 1,799 1,392 18% Margin 22% Margin 1,269 42% Margin 39% Margin 22% Margin 29% Margin 1,482 $23.3 1,522 900 1,081 1,045 1,096 2018
Slide 10: Disciplined Approach to Development
GOLD FORUM AMERICAS 2023 – DISCIPLINED APPROACH TO DEVELOPMENT 10 Commercial production at Commercial production at Saucito II San Julián phase II Juanicipio project construction Soledad-Dipolos began Noche Buena began commissioning commissioning completed in 4Q21 Peñoles acquired Commissioning of
Slide 11: 1H23 Operational Performance Highlights
G O L D F O R U M A M E R I C A S 2 0 2 3 – 1 H 2 3 O P E R AT I O N A L P E R F O R M A N C E H I G H L I G H T S 11 ATTRIBUTABLE HALF YEAR SILVER ATTRIBUTABLE HALF YEAR GOLD PRODUCTION PRODUCTION 28.0MOZ 325.4KOZ • Remain on track to meet our 2023 full year guidance of: Attributable silver product
Slide 12: Disciplined Approach to Development
GOLD FORUM AMERICAS 2023 – DISCIPLINED APPROACH TO DEVELOPMENT 12 Fresnillo Saucito 2023 Budget: US$175m Herradura Nochebuena Soledad & Dipolos* 51% San Julián Ciénega Mine Juanicipio Operations Development Projects 24% PEA Feasibility (Rodeo, Tajitos, (Orisyvo) Guanajuato) Advanced exploration (Pil
Slide 13: Solid Project Pipeline for the Future
GOLD FORUM AMERICAS 2023 –SOLID PROJECT PIPELINE FOR THE FUTURE 13 ORISYVO (GOLD) RODEO (GOLD) GUANAJUATO (SILVER / GOLD) TAJITOS (GOLD) Advanced to pre-feasibility stage with Regional studies continued along with Exploration intensified in 1H23, with core During 1H23, 46,972 metres of core and some
Slide 14: Commitment to Sustainable Business Practices
G O L D F O R U M A M E R I C A S 2 0 2 3 - C O M M I T M E N T T O S U S TA I N A B L E B U S I N E S S 14 PRACTICES S U S TA I N A B I L I T Y I S C O R E T O O U R P U R P O S E : “ T O C O N T R I B U T E T O T H E W E L L B E I N G O F P E O P L E T H R O U G H T H E S U S TA I N A B L E M I N
Slide 15: Strong Balance Sheet, Underlined by Demonstrated Solid Financials
G O L D F O R U M A M E R I C A S 2 0 2 3 - S T R O N G B A L A N C E S H E E T, U N D E R L I N E D B Y 15 D E M O N S T R AT E D S O L I D F I N A N C I A L S REVENUES EBITDA and EBITDA MARGIN US$mm US$mm 2,500 1,200 0.7 2,000 1,000 0.6 1,500 800 48% 0.5 2,703 45% 2,430 2,433 1,000 2,120 600 1,169
Slide 16: Outlook
OUTLOOK —v— FRESNILLO.
Slide 17: Expected Attributable Production Profile
G O L D F O R U M A M E R I C A S 2 0 2 3 – E X P E C T E D AT T R I B U TA B L E 17 PRODUCTION PROFILE Production guidance range +/- 5% Potential additional production related to initiatives under development Million Oz Silver* Thousand Oz Gold 80 700 70 600 60 500 50 4 400 40 300 30 20 200 10 100
Slide 18: Capex Spend Expectations
G O L D F O R U M A M E R I C A S 2 0 2 3 – C A P E X S P E N D E X P E C TAT I O N S 18 Million Usd 700 592 • Total sustaining capex for 20234 for all of the 600 555 530 mines, along with a small part for new 500 505 projects approved, is expected to be 400 US$555m 300 • 2023 capex revised lower fo
Slide 19: Consolidated Outlook
G O L D F O R U M A M E R I C A S 2 0 2 3 – C O N S O L I D AT E D O U T L O O K 19
Slide 20: Concluding Remarks
GOLD FORUM AMERICAS 2023 – CONCLUDING REMARKS 20 CONTINUED FOCUS ON COST CONTROL AND GROWTH PIPELINE EXPECTATION FOR SHORT AND MEDIUM CONTINUES TO INFLATION TO EASE TERM PRODUCTION STEADY PROGRESS PRODUCTION AT OUTLOOK PROGRESS, WITH DOWN AND THE WITH ROBUST JUANICIPIO RAMPING UNCHANGED ORISYVO ADVA