Fresnillo Plc · LSE:FRES
Fresnillo — Denver Gold Forum 2021
21 slides from Fresnillo's conference presentation, Sep 13, 2021
Slide 1: Denver Gold Forum
D E N V E R G O L D F O R UM 13 SEPTEMBER 2021 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 3 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 GLANCE av FRESNILLO.
Slide 5: Fresnillo at a Glance
D E N V E R G O L D F O R U M - F R E S N I L L O AT A G L A N C E 5 Our purpose is to contribute to the wellbeing of people through the sustainable mining of silver and gold. World’s largest silver producer (53.1 moz in 2020) and Mexico’s largest gold producer (769.6 koz in 2020). Total assets of U
Slide 6: Fresnillo at a Glance
D E N V E R G O L D F O R U M - F R E S N I L L O AT A G L A N C E 6 1 As of 31 May 2020 2 Au:Ag ratio of 1:70
Slide 7: Investment Proposition
INVESTMENT PROPOSITION —v— FRESNILLO.
Slide 8: Investment Proposition
DENVER GOLD FORUM - INVESTMENT PROPOSITION 8 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 SUSTAINABLE BALANCE SHEET A FOCUS ON COST TO DEVELOPMENT BUSINESS
Slide 9: High Quality Assets
DENVER GOLD FORUM - HIGH QUALITY ASSETS 9 200 2021 Guidance Range PRODUCTION EQ AG MOZ) 160 PRODUCTION (EQ AG OZ) PER THOUSAND SHARES 120 80 40 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 6,000 8.0 RESOURCES (EQ AG MOZ) RESOURCES (EQ AG OZ) PER AG EQ RERSOURCES PER
Slide 10: Healthy Margins Supported by a Focus on Cost
D E N V E R G O L D F O R U M - 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 10 ALL-IN SUSTAINING COST OF GOLD & PRICE EVOLUTION AISC (Au eq US$/oz) Au price (US$/oz) 1,792 1,789 1,392 1,269 42% Margin 48% Margin 22% Margin 29% Margin 1,081 1,045 936 900 2018 2019 2020 1H
Slide 11: Disciplined Approach to Development
DENVER GOLD FORUM - DISCIPLINED APPROACH TO DEVELOPMENT 11 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-Dipolos began Noche Buena began commissioning commissioning US$
Slide 12: Disciplined Approach to Development: Juanicipio
DENVER GOLD FORUM - DISCIPLINED APPROACH TO DEVELOPMENT 12 JUANICIPIO (JV WITH MAG SILVER. FRESNILLO: 56%) OVERVIEW KEY METRIC ESTIMATES (100% BASIS) • Mine development continued to advance. • Commissioning of the plant remains on track to be commissioned in 4Q CAPEX FROM 1ST JANUARY 2018 US$ 440 M
Slide 13: Disciplined Approach to Investment
DENVER GOLD FORUM - DISCIPLINED APPROACH TO INVESTMENT 13 P E A – F E A S I B I L I T Y P R O J E C T S – O R I S Y V O , R O D E O & G U A N A J U AT O RODEO (GOLD) ORISYVO (GOLD) GUANAJUATO (SILVER / GOLD) • This project is in close proximity to infrastructure, which • Assessing a 8,000 TPD mine w
Slide 14: Disciplined Approach to Investment
DENVER GOLD FORUM - DISCIPLINED APPROACH TO INVESTMENT 14 2021 Budget: US$162m US$60.9m invested YTD Fresnillo Saucito 40 % ▪ Exploration objective: 2 Moz gold or 150 Herradura Moz silver, satellite orebodies 1 Moz gold Mine Operations Nochebuena (or silver equivalent). Soledad & Dipolos* San Julián
Slide 15: Commitment to Sustainable Business Practices
D E N V E R G O L D F O R U M - C O M M I T M E N T T O S U S TA I N A B L E B U S I N E S S P R A C T I C E S 15 HEALTH ENVIRONMENT COMMUNITY & SAFETY OPTIMISING OUR USE OF RESOURCES AND BEING RELATIONS SAFETY CULTURE BASED ON CARING FOR OUR TRANSPARENT AND ACCOUNTABLE ARE CRUCIAL ELEMENTS OUR COMM
Slide 16: Strong Balance Sheet Underlined by Demonstrated Solid Financials
DENVER GOLD FORUM - STRONG BALANCE SHEET - UNDERLINED BY 16 D E M O N S T R AT E D S O L I D F I N A N C I A L S REVENUES EBITDA and EBITDA MARGIN Guidance range +/- 5% US$mm US$mm 3,000 1400 48% 50% 1200 44% 2,500 40% 2,000 1000 32% 800 30% 1,500 2,430 600 1169 20% 1,000 2,104 2,120 915 400 500 674
Slide 17: Outlook
OUTLOOK —v— FRESNILLO.
Slide 18: Expected Attributable Production Profile
D E N V E R G O L D F O R U M - E X P E C T E D AT T R I B U TA B L E P R O D U C T I O N P R O F I L E 18 Production guidance range +/- 5% Silver* Million Oz Thousand Oz Gold 80 800 70 700 60 600 50 500 40 4 400 30 300 20 200 10 100 0 0 2020 2021 2022 2023 2020 2021 2022 2023 Thousand Tons Lead Zin
Slide 19: Capex Spend Expectations
D E N V E R G O L D F O R U M - C A P E X S P E N D E X P E C TAT I O N S * 19 Forecast 6+6 2021 US$ Million Million Usd 580 600 Sustaining (Operations) 515 Fresnillo 77 M 500 Saucito 90 M4 465 Ciénega 42 M 415 San Julián 50 M 400 Herradura 86 M Noche Buena 2 M Others 13 M 300 Projects Approved 200
Slide 20: Consolidated Outlook
D E N V E R G O L D F O R U M - C O N S O L I D AT E D O U T L O O K 20 1 2 Expected Avg. Investm ent YEAR (US$ m illion) Annual 2019 2020 2021 2022 2023 2024 2025 2026 Production PROJECT 3.5 m oz Ag & PYRITES PLANT 155 PRODUCTION 13 koz Au (Optimization project) CONSTRUCTION TAILINGS FLOTATION ENER
Slide 21: Concluding Remarks
DENVER GOLD FORUM - CONCLUDING REMARKS 21 COMMITMENT TO MAINTAIN PURPOSEFUL CREATE VALUE GUIDANCE FOR 2021 OPERATIONAL COMMITMENT TO ENGAGEMENT WITH THROUGH DISCIPLINED AND BEYOND DELIVERY, MAXIMISING SAFETY & WELLBEING ALL OUR GROWTH, UNCHANGED POTENTIAL OF OUR OF OUR PEOPLE AND STAKEHOLDERS EXPLOR