Slide 1: Full Year Preliminary Results
FULL YEAR P R E L I M I N A RY R E S U LT S 05 MARCH 2024 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 01 Highlights 02 HSECR 03 Operational & projects performance 04 Reserves, resources & exploration update 05 Financial performance 06 2024 outlook
Slide 4: Highlights
HIGHLIGHTS OCTAVIO ALVÍDREZ
Slide 5: Delivering Long-Term Value
2 0 2 3 P R E L I M I N A RY R E S U LT S – I N V E S T M E N T P R O P O S I T I O N 5 DELIVERING LONG-TERM VALUE WORLD’S #1 SILVER SUBSTANTIAL GOLD HIGH QUALITY PRODUCER PRODUCTION MINING ASSETS 56.3 Moz 610.6 koz 2.2 Boz 37.9Moz of silver in 2023 of gold in 2023 Silver Resources Gold Resources HE
Slide 6: Preliminary Financial Performance Highlights
2 0 2 3 P R E L I M I N A R Y R E S U LT S – F I N A N C I A L P E R F O R M A N C E H I G H L I G H T S 6 TOTAL REVENUE (US$) ADJUSTED EPS* (US CENTS PER SHARE) 2,705.1M 31.0US¢ per share OPERATING PROFIT (US$) EBITDA MARGIN 142.5M 24.2% EBITDA (US$) CASH ON HAND AT 31 DEC 2023 (US$) 655.7M 534.6M
Slide 7: HSECR
HSECR OCTAVIO ALVÍDREZ
Slide 8: HSECR: Sustainability Is Core to Our Purpose
2 0 2 3 P R E L I M I N A RY R E S U LT S – H S E C R 8 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 I N G O F S I LV E R A N D G O L D ” HEALTH ENVIRONMENT COMMUN
Slide 9: Operational & Projects Performance
O P E R AT I O N A L & PROJECTS PERFORMANCE TOMÁS ITURRIAGA
Slide 10: Operations: Fresnillo
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 10 FRESNILLO Production Grade KEY ACTIONS 16 350 Million Ounces 14 • Deepening of the San Carlos shaft concluded. 300 12 • Permits to tie in the Pyrites Plant at Fresnillo were granted in 2Q23 with Grams/tonne 10 250 commissioning and ra
Slide 11: Operations: Saucito
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 11 SAUCITO Production Grade 20 350 Million Ounces 18 16 300 14 Grams/tonne 12 250 10 8 200 6 4 150 2 0 100 KEY ACTIONS 2019 2020 2021 2022 2023 2024e • Volume of ore processed increased, however it was impacted by equipment KEY OPERATING
Slide 12: Operations: Juanicipio
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 12 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 % ) KEY OPERATING HIGHLIGHTS FY23 Silver production – moz 9,415 Gold production – koz 20.6 Cost per tonne - US$ 114.8 Cash cost - US$/oz of Ag 6.8 AISC – US$
Slide 13: Operations: Herradura
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 13 HERRADURA Gold Production Production Gold Ore Grade Grade KEY ACTIONS 6 0.8 • Annual gold production increased year-on-year as a result of the higher ore grade 0.75 5 in the sulphides and positive variations with the geological model
Slide 14: Operations: Other Operations
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 14 O T H E R O P E R AT I O N S SAN JULIÁN • Exploration continued in the area however no additional resources were discovered at San Julián DOB, which is entering its final year of operation. • The recovery of ore panels under paste fil
Slide 15: 2024 Focus – Northern Region
2024 FOCUS – NORTHERN REGION 15 HERRADURA • Operational turnaround initiative launched • Mine redesign study • Maintenance efficiency programme • Metallurgical recovery optimisation opportunities (Leach Pads) • Consolidation of Herradura District to maximise return over installed capacity • Herradur
Slide 16: Reserves, Resources & Exploration Update
RESERVES, RESOURCES & E X P L O R AT I O N U P D AT E GUILLERMO GASTÉLUM
Slide 17: Strong Silver Resource & Reserves Bases
RESERVES & RESOURCES 17 S T R O N G S I LV E R R E S O U R C E & R E S E R V E S B A S E S SILVER RESOURCES RESOURCES CHANGE 2,219Moz Total silver resources 2023 2,219,713 2022** 2,203,872 Koz +15,841 % +0.7% • Positive exploration results at the Guanajuato greenfields project and at San Julián vein
Slide 18: Strong Gold Resource & Reserve Bases
RESERVES & RESOURCES 18 STRONG GOLD RESOURCE & RESERVE BASES CHANGE RESOURCES GOLD RESOURCES 2023 2022** Koz % 37.9Moz Total gold resources 37,937 39,109 -1,172 -3.1% • Positive exploration results at the Guanajuato greenfields project and at Centauro Profundo. • Gold in consolidated overall mineral
Slide 19: Projects: Orisyvo, Rodeo & Guanajuato
2 0 2 3 P R E L I M I N A RY R E S U LT S – P R O J E C T S 19 S T R O N G P R O J E C T S F O R T H E F U T U R E - O R I S Y V O , R O D E O & G U A N A J U AT O ORISYVO (GOLD) RODEO (GOLD) GUANAJUATO (SILVER / GOLD) TAJITOS (GOLD) • Several pre-feasibility level studies are • Continued to strengt
Slide 20: Exploration Update
2 0 2 3 P R E L I M I N A RY R E S U LT S – E X P L O R AT I O N U P D AT E 20 2024 Budget: US$190 m 2023 Highlights: 42% ▪ Invested US$185.9 million of risk capital in exploration during the year. Mine Good exploration results at Fresnillo, San Julian, and Guanajuato. Operations ▪ Pre-feasibility l
Slide 21: Financial Performance
FINANCIAL PERFORMANCE MARIO ARREGUÍN
Slide 22: Income Statement (IFRS)
2 0 2 3 P R E L I M I N A R Y R E S U LT S – I N C O M E S TAT E M E N T ( I F R S ) 22 (MILLION USD) ACCUM DECEMBER CHANGE CONCEPT 2023 % 2022 % $ % ADJUSTED REVENUES 2,869.1 2,597.2 271.9 10.5 HEDGING (METALS) 0.0 (3.8) 3.8 N/A TREATMENT AND REFINING CHARGES (164.0) (160.5) (3.5) (2.2) REVENUES 2,
Slide 23: Adjusted Production Cost Analysis
2 0 2 3 P R E L I M I N A R Y R E S U LT S – A D J U S T E D P R O D U C T I O N C O S T A N A LY S I S 23 ( C O N S O L I D AT E D ) CHANGE YTD 23 YTD 22 $ % Adjusted Production Cost 1,624.1 1,445.8 +178.2* +12.3 Change in inventories and others 78.5 -59.0 +137.5 N/A Depreciation 497.3 500.6 -3.3 -
Slide 24: Gross Profit Analysis
( C O N S O L I D AT E D ) 0.0 75.0 150.0 225.0 300.0 375.0 450.0 525.0 (75.0) Higher volume of ore processed at USD MILLION 1 Juanicipio 206.2 (Ramp-up and plant start-up) Higher Metal Prices 2 (Au +9.1% and Ag +8.1%) 192.9 Gold Inventory Adjustment at Herradura Gross Profit 3 (+30,700.4 oz) 30.9 L
Slide 25: Cash Flow (IFRS)
2 0 2 3 P R E L I M I N A R Y R E S U LT S – C A S H F L O W ( I F R S ) 25 (MILLION USD) YEAR TO DATE CHANGE CONCEPT 2023 2022 $ % CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 649.3 743.1 (93.7) (12.6) WORKING CAPITAL 20.6 (66.1) 86.8 N/A INCOME TAX AND PROFIT SHARING PAID (244.0)
Slide 26: Balance Sheet (IFRS)
2 0 2 3 P R E L I M I N A R Y R E S U LT S – B A L A N C E S H E E T ( I F R S ) 26 (MILLION USD) Change Concept 31-DEC-23 31-DEC-22 % Assets Cash and Investments 534.6 969.1 (44.8) Trade and Other Receivables 482.4 404.5 19.3 Inventories 532.7 587.4 (9.3) Prepaid Expenses 23.2 34.4 (32.7) Silverstr
Slide 27: 2024 Outlook
2024 OUTLOOK OCTAVIO ALVÍDREZ
Slide 28: Expected Attributable Production Profile
2 0 2 3 P R E L I M I N A R Y R E S U LT S – 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 28 PROFILE Production guidance range +/- 5% Million Oz Silver* Thousand Oz Gold 80 700 70 600 60 500 50 4 400 40 300 30 200 20 10 100 0 0 2023 2024 2025 2026 2023 2024 2025 2026 Thousand Tons Lead
Slide 29: Capex Spend Expectations
2 0 2 3 P R E L I M I N A R Y R E S U LT S – C A P E X S P E N D E X P E C TAT I O N S 29 Million Usd 700 600 • Total sustaining capex for 20244 for all of the 485 490 500 mines, along with a small part for new 500 440 projects approved, is expected to be 400 US$440m 300 • Projects not approved are
Slide 30: Consolidated Outlook
1 2 2 0 2 3 P R E L I M I N A R Y R E S U LT S – C O N S O L I D AT E D O U T L O O K 30 1 Greenfield project development to be complemented with brownfield growth possibilities at the Herradura and Guanajuato Centro Districts. (1) Total annual average production Subject to pre-feasability and feasa
Slide 31: Concluding Remarks
2 0 2 3 P R E L I M I N A RY R E S U LT S – C O N C L U D I N G R E M A R K S 31 PRIORITISE SAFETY FOCUS ON CAPITAL ALLOCATION CONTINUED CONFIDENCE IN THE CULTURE ACROSS OPERATIONAL DISCIPLINE ACROSS PROGRESS AT OUR LONG-TERM OUR SITES FOR BOTH EFFICIENCIES AND CURRENT ADVANCED STRENGTH AND EMPLOYEE
Slide 32: Appendix
APPENDIX
Slide 33: Grade Expectations
G R A D E E X P E C TAT I O N S F O R 2 0 2 4 33 GOLD (G/T) MINE MINE TYPE FY 2024e FY 2023 Fresnillo Underground silver 0.60-0.70 0.61 Saucito Underground silver 1.10-1.30 1.34 Juanicipio Underground silver - 1.27 San Julián (veins) Underground silver & gold 1.00-1.20 1.17 San Julián (disseminated)
Slide 34: Operations: San Julián
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 34 SAN JULIÁN (VEIN SYSTEM) S A N J U L I Á N ( D I S S E M I N AT E D O R E B O D Y ) KEY OPERATING HIGHLIGHTS 2023 2022 KEY OPERATING HIGHLIGHTS 2023 2022 Gold production – koz 41.0 43.4 Gold production – koz 3.5 3.3 Silver production
Slide 35: Operations: Ciénega
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 35 CIÉNEGA KEY ACTIONS • Several initiatives were implemented to decrease personnel rotation, with the impact expected to materialise in 2024. • The contractor base was optimised and the productivity of unionised personnel increased. • S
Slide 36: Operations: Noche Buena
2 0 2 3 P R E L I M I N A RY R E S U LT S – O P E R AT I O N S 36 NOCHE BUENA KEY ACTIONS • The mine closure plan commenced. • Ore extraction ended in 2Q 2023 but gold recovery from the leaching pads continued. KEY OPERATING HIGHLIGHTS 2023 2022 Silver production – koz 10 20 Gold production – koz 42
Slide 37: Contribution to Adjusted Revenues by Metal
2 0 2 3 P R E L I M I N A R Y R E S U LT S – C O N T R I B U T I O N B Y M I N E A N D B Y M E TA L 37 TO ADJUSTED REVENUES 2023 2023 ADJUSTED REVENUES : US$2,869.1M ACCUM DECEMBER CHANGE BY: P R O D U C T (Million USD) 2023 2022 VOLUME PRICE TOTAL GOLD 1,186.2 1,114.2 (27.8) 99.8 72.0 SILVER 1,310.
Slide 38: Contribution to Adjusted Revenues by Mine and Metal
2 0 2 3 P R E L I M I N A R Y R E S U LT S – C O N T R I B U T I O N B Y M I N E A N D B Y M E TA L 38 TO ADJUSTED REVENUES 2023 2023 ADJUSTED REVENUES 1 : US$2,869.1M By mine By metal Fresnillo Saucito Ciénega Herradura Silver Gold Noche Buena San Julián DOB San Julián Veins Juanicipio Lead Zinc Fr
Slide 39: Exploration Expenditure by Area
2 0 2 3 P R E L I M I N A R Y R E S U LT S – I N C O M E S TAT E M E N T ( I F R S ) 39 (MILLION USD) ACCUM DIC 2023 (Million USD) Operating Units Fresnillo 22.9 Saucito 13.5 Ciénega 6.7 San Julián 19.6 Herradura 5.7 Noche Buena 0.7 Juanicipio 7.3 76.4 Projects Guanajuato 18.6 V
Slide 40: Cash Flow (IFRS)
2 0 2 3 P R E L I M I N A R Y R E S U LT S – C A S H F L O W ( I F R S ) 40 • Decrease in inventories +US$54.6 million (MILLION USD) • Decrease in prepayments and other assets +US$10.4 million • Increase in trade and other accounts receivables YEAR TO DATEreceivables from related parties • (-US$45.6
Slide 41: Consolidated Cost Inflation 2023
2 0 2 3 P R E L I M I N A R Y R E S U LT S – C O N S O L I D AT E D C O S T I N F L AT I O N 2 0 2 3 41 (USD BASED) Consolidated Unit Price Weighted Increase % Weight (*) Average Labour Unionized Personnel 22.8% 8.8% 2.0% Employees 21.8% 4.2% 0.9% Weighted 22.5% Operating Materials 3.8% 16.6% 0.6% E
Slide 42: Adjusted Production Cost 2023
2 0 2 3 P R E L I M I N A R Y R E S U LT S – A D J U S T E D P R O D U C T I O N C O S T - 2 0 2 3 42 2023 ADJUSTED PRODUCTION COST : US$1,622.0M Operating Materials Costs from Contractors = 24% = US$385.4 M 24% Own 18% Ctrt. 6% Maintenance & repairs 20% Own 18 % Energy 17% Ctrt. 2% Own 16% Ctrt. 1%
Slide 43: Notes
NOTES 43 4