Fresnillo Plc · LSE:FRES
Fresnillo — RBC Annual Silver Conference 2012
19 slides from Fresnillo's conference presentation, Dec 11, 2012
Slide 1: Strengthening our precious metals position
Strengthening our precious metals position RBC Annual Silver Conference December 11, 2012 David Giles, VP Exploration
Slide 2: Disclaimer
Disclaimer 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”, “int
Slide 3: About Fresnillo
About Fresnillo • World’s largest silver producer & Mexico’s second largest gold producer Who we are • Total workforce of 5,303 people • Mining concessions of 2.1m hectares in Mexico & 78,800 ha in Peru • Headquartered in Mexico City; listed in London and Mexico • Exploration, development, construct
Slide 4: Consistent business model and unchanged strategy
Consistent business model and unchanged strategy 1 2 Maximise the potential of Deliver growth through existing operations development projects • Operate at 100% capacity • Focus on delivery timeline • Low-cost producer • Disciplined CAPEX control • Optimise mining method • Specialized Engineering an
Slide 5: Where we operate
Where we operate Three operating mining districts and two regions with potential to become districts in the future ORISYVO HERRADURA Fresnillo plc mines (7) SAN JULIÁN DISTRICT Development projects (3) Advanced exploration projects (4) Prospects in drilling (45 aprox) Prospects at an early stage CIÉ
Slide 6: Mining Districts
Mining Districts HERRADURA DISTRICT • Mines: Herradura, Soledad-Dipolos and Noche Buena • 2011 production: 272.3k oz gold • Resources: 5.09 Moz gold • Projects: Dynamic Leaching Plant • Exploration: Centauro Deep, Tajitos, Choya, San Javier, Las Norias, El Nudo, Carina, Cerritos, El Dorado CIÉNEGA D
Slide 7: Districts of the Future
Districts of the Future SAN JULIÁN • Under construction • Silver-gold veins and disseminated ore body • Resources: 153.8 Moz silver, 780 koz gold • Approved CAPEX: US$500m • Flotation plant with 6,000 tpd capacity • Dynamic leaching plant with 3,000 tpd capacity • Average expected level of productio
Slide 8: Operations and Business Review
Operations and Business Review
Slide 9: Year so far: Jan to Sept 2012
Year so far: Jan to Sept 2012 • Record attributable gold production of 375,637 ounces, up 15.1% • Attributable silver production (incl Silverstream) of 30.4moz, down 3.6% • On track to achieve full year production targets of 41moz of silver (including Silverstream) and 460,000oz of attributable gold
Slide 10: Operations Review
Operations Review On track to achieve annual silver production target of 41Moz and 460,000 ounces of gold. 2011 PRODUCTION JAN-SEP PRODUCTION SILVER GOLD SILVER GOLD (Koz) (Oz) (Koz) (Oz) Fresnillo mine Silver underground mine 30,295 26,237 19,897 22,857 Saucito mine Silver underground mine 5,904 33
Slide 11: First half 2012 Adjusted Revenues
First half 2012 Adjusted Revenues1 Product contribution by mine Mine contribution by product (US$ M) (US$ M) 1Adjusted Revenue is revenue as disclosed in the income statement adjusted to exclude treatment and refining charges 11
Slide 12: Financial highlights
Financial highlights FY 2011 H1 2012 Average silver price US$/Oz 34.8 31.0 Average gold price US$/Oz 1,585.3 1,645.5 Revenues US$ million 2,192.7 1,085.2 Gross Profit US$ million 1.563.5 705.4 EBITDA US$ million 1,538.5 684.4 EBITDA margin 70.2% 63.1% Profit attributable to equity shareholders of th
Slide 13: The Opportunity
av FRESNILLO. - Soon Bea Hit 4 o The Opportunity
Slide 14: Exploration and Development
Exploration and Development Fresnillo District • 60moz resource identified deep near Total revised exploration budget for 2012: US$338 m San Carlos shaft • New vein drilled south of mine area Budget Herradura District allocation • Drilling continued at Centauro pit with good intersections to over 14
Slide 15: On track to achieve production targets
On track to achieve production targets SILVER GOLD MOz KOz 65 MOz 500 KOz Saucito I (ramp-up) Dynamic leaching plant Saucito II Noche Buena (ramp-up San Julián and expansion) Juanicipio San Julián Expansion at Fresnillo Centauro Deep On track to produce 65 million ounces of silver and over 500,000 o
Slide 16: Project delivery programme
Project delivery programme On track to produce 65moz of silver and 500,000 oz of gold by 2018 Expected YEAR 2012 2013 2014 2015 2016 2017 2018 Production PROJECT 50 thd Oz DYNAMIC LEACHING CONSTRUCTION PRODUCTION Au (Optimization project) 10 mill Oz DETAILED Ag y 45 thd SAN JULIÁN CONSTRUCTION PRODU
Slide 17: Conclusion
FRESNILLO. Conclusion
Slide 18: Fresnillo remains on track to achieve our goal
Fresnillo remains on track to achieve our goal • In 2012 we focused on: – Improving our safety culture and systems at all levels – Ramping up production at the Noche Buena mine – Continue development at Centauro Deep and Orisyvo – Expanding our resource base to help support our long term-targets – R
Slide 19: Conclusion and Outlook
Conclusion and Outlook We will continue to build upon our competitive differentiators: Operational excellence World class assets Experienced personnel, efficient mining We operate the largest primary silver mine in methods, continuous reserve replenishment the world and control the largest area of a