Slide 1: Half Year Interim Results 1st August 2023
HALF YEAR I N T E R I M R E S U LT S 1ST AUGUST 2023 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 Investment proposition 02 HSECR 03 1H23 highlights 04 Operational performance 05 Financial performance 06 2H23 outlook
Slide 4: Investment Proposition
INVESTMENT PROPOSITION OCTAVIO ALVÍDREZ
Slide 5: Delivering long-term value through steady progress
1 H 2 3 I N T E R I M 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 THROUGH STEADY PROGRESS WORLD’S #1 SILVER MEXICO’S #1 GOLD HIGH QUALITY PRODUCER PRODUCER MINING ASSETS 28.0 Moz 325.4 Koz 2.2 Boz 39.1Moz of silver in 1H23 of gold in 1H23 Silver Resources Go
Slide 6: HSECR
HSECR OCTAVIO ALVIDREZ av FRESNILLO.
Slide 7: HSECR: Sustainability is core to our purpose
1 H 2 3 I N T E R I M R E S U LT S – H S E C R 7 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 COMMUNITY & S
Slide 8: 1H23 Highlights
1H23 HIGHLIGHTS OCTAVIO ALVÍDREZ
Slide 9: Operational performance highlights
1 H 2 3 I N T E R I M R E S U LT S – 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 9 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 production in the range
Slide 10: Financial performance highlights
1 H 2 3 I N T E R I M 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 10 GROSS PROFIT (US$) ADJUSTED EPS* (US CENTS PER SHARE) 282.7M 10.4US¢ per share OPERATING PROFIT (US$) EBITDA MARGIN 81.2M 26% EBITDA (US$) CASH ON HAND AT 30 JUNE 2023 (US$) 351.0M 889.7M PROFIT FOR T
Slide 11: Solid project pipeline for the future
1 H 2 3 I N T E R I M R E S U LT S – P R O J E C T S 11 SOLID PROJECT PIPELINE FOR THE FUTURE 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,
Slide 12: Exploration update
1 H 2 3 I N T E R I M R E S U LT S – E X P L O R AT I O N U P D AT E 12 Fresnillo Saucito 2023 Budget: US$175m Herradura Nochebuena 1H23 Highlights: Soledad & Dipolos* 51% San Julián ▪ Front loaded 2023 exploration spend, with c. US$97 million in 1H23 Ciénega Mine Operations ▪ Drilled a total of 490
Slide 13: Operational Performance
O P E R AT I O N A L PERFORMANCE TOMÁS ITURRIAGA
Slide 14: Operations: Fresnillo
1 H 2 3 I N T E R I M R E S U LT S – O P E R AT I O N S 14 FRESNILLO Production Grade KEY ACTIONS 20 300 - Development rate of 3,197 m per month on average in 1H23. Expect to remain 15 250 around 3,100 m per month on average during 2H23 Million Ounces Grams/tonne - Continue to progress project to de
Slide 15: Operations: Saucito
1 H 2 3 I N T E R I M R E S U LT S – O P E R AT I O N S 15 SAUCITO Production Grade KEY ACTIONS 20 350 300 - Development rate of 3,022 m per month on average in 1H23. Expect to remain 15 Million Ounces Grams/tonne around 3,000 m per month on average during 2H23 250 10 - Project to deepen the Jarilla
Slide 16: Other operations
1 H 2 3 I N T E R I M R E S U LT S – O P E R AT I O N S 16 O T H E R O P E R AT I O N S JUANICIPIO HERRADURA • Commissioning complete and ramp up progressing as planned. • Pit slope optimisation project underway, looking at the optimal Expect to reach full nameplate capacity in 3Q23 inter-ramp angle
Slide 17: A focus on cost control and mitigation
1 H 2 3 I N T E R I M R E S U LT S – C O S T S 17 A F O C U S O N C O S T C O N T R O L A N D M I T I G AT I O N S Cost focus across all sites, with initiatives to save costs and improve efficiencies FRESNILLO • Deepening of the San Carlos shaft leading to reduced haulage costs • Implementation of r
Slide 18: Financial Performance
FINANCIAL PERFORMANCE MARIO ARREGUÍN
Slide 19: Income statement (IFRS)
1 H 2 3 I N T E R I M R E S U LT S – I N C O M E S TAT E M E N T ( I F R S ) 19 (MILLION USD) ACCUM JUNE CHANGE CONCEPT 2023 % 2022 % $ % ADJUSTED REVENUES 1,430.8 1,349.0 81.7 6.1 HEDGING (METALS) 0.0 (3.8) 3.8 N/A TREATMENT AND REFINING CHARGES (87.4) (86.2) (1.2) (1.4) REVENUES 1,343.3 100.0 1,25
Slide 20: Cost of sales analysis (consolidated)
0.0 108.0 144.0 162.0 180.0 126.0 18.0 36.0 54.0 72.0 90.0 ( C O N S OL I D AT E D ) MXP/USD Revaluation effect 1 (20.28 to 18.21 Mxp/Usd; -10.2%) 45.0 USD MILLION Underlying cost inflation +6.2% 2 (excluding the MXP/USD revaluation 41.6 effect) PTU Juanicipio mine ramp-up and Plant 3 19.6 Start-up
Slide 21: Consolidated cost inflation YTD
1 H 2 3 I N T E R I M 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 Y T D 21 (USD BASED) Consolidated Unit Price Weighted Increase % Weight (*) Average Labour Unionized Personnel 20.6% 9.0% 1.9% Employees 19.7% 4.2% 0.8% Weighted 20.3% Operating Materials 9.4% 16.7% 1.6% Energy Elec
Slide 22: Adjusted production cost breakdown
1 H 2 3 I N T E R I M 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 1 H 2 3 22 1H23 ADJUSTED PRODUCTION COST : US$773.9M Operating Materials 23% Own 17% Ctrt. 6% Maintenance & repairs 20% Energy 18% Own 18 % Own 17% Ctrt. 2% Ctrt. 1% * Others 12% Own 11% Ctrt. 1% Personnel 20% Equipment
Slide 23: 1H23 gross profit analysis
0.0 40.0 80.0 120.0 160.0 200.0 (200.0) (160.0) (120.0) (80.0) (40.0) ( C O N S OL I D AT E D ) Juanicipio mine 1 ramp-up and plant start-up 59.2 USD MILLION 2 Higher ore volume extracted 42.6 Higher Metal Prices 3 38.5 (Au +4.2% and Ag +2.4%) Gross Profit 4 Gold inventory uplift at Herradura 21.8 5
Slide 24: Income statement (IFRS) by operating unit
1 H 2 3 I N T E R I M R E S U LT S – I N C O M E S TAT E M E N T ( I F R S ) 24 (MILLION USD) ACCUM JUNE CHANGE Operating Units CONCEPT 2023 % 2022 % $ % ➢ Fresnillo 10.1 ADJUSTED REVENUES 1,430.8 1,349.0 81.7 6.1 ➢ Saucito 6.4 HEDGING (METALS) 0.0 (3.8) 3.8 N/A TREATMENT AND REFINING CHARGES (87.4)
Slide 25: Cash flow (IFRS)
1 H 2 3 I N T E R I M R E S U LT S – C A S H F L O W ( I F R S ) 25 (MILLION USD) CASH FLOW ACCUM JUNE CHG. YTD 2022 (USD MILLION) 2023 2022 $ % CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 322.9 459.5 (136.6) (29.7) WORKING CAPITAL 75.4 76.8 (1.4) (1.8) INCOME TAX AND PROFIT SHARI
Slide 26: Cash flow (IFRS) with capex detail
1 H 2 3 I N T E R I M R E S U LT S – C A S H F L O W ( I F R S ) 26 (MILLION USD) CASH FLOW ACCUM JUNE CHG. YTD 2022 (USD MILLION) 2023 2022 $ % CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 322.9 459.5 (136.6) (29.7) WORKING CAPITAL 75.4 76.8 (1.4) (1.8) INCOME TAX AND PROFIT SHARI
Slide 27: Balance sheet (IFRS)
1 H 2 3 I N T E R I M R E S U LT S – B A L A N C E S H E E T ( I F R S ) 27 (MILLION USD) Change Concept 30-JUNE-23 31-DEC-22 % Assets Cash and Investments 889.7 969.1 (8.2) Trade and Other Receivables 441.1 404.5 9.0 Inventories 543.6 587.4 (7.4) Prepaid Expenses 24.8 34.4 (27.9) Silverstream 477.2
Slide 28: 2H23 Outlook
2H23 OUTLOOK OCTAVIO ALVÍDREZ
Slide 29: Expected attributable production profile
1 H 2 3 I N T E R I M 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 P R O F I L E 29 Production guidance range +/- 5% Potential additional production related to initiatives under development Million Oz Silver* Thousand Oz Gold 80 700 70 600 60 500 50 400 40 4 300 30 20 200
Slide 30: Capex spend expectations
1 H 2 3 I N T E R I M 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 30 Million Usd 700 • Total sustaining capex for 20234 for all of the 600 592 555 530 mines, along with a small part for new 505 500 projects approved, is expected to be 400 US$555m 300 • 2023 capex revised lower following
Slide 31: Consolidated outlook
1 H 2 3 I N T E R I M R E S U LT S – C O N S O L I D AT E D O U T L O O K 31
Slide 32: Concluding remarks
1 H 2 3 I N T E R I M R E S U LT S – C O N C L U D I N G R E M A R K S 32 GROWTH PIPELINE STEADY PROGRESS PRODUCTION AT CONTINUED FOCUS ON REITERATED 2023 CONTINUES TO WITH ROBUST JUANICIPIO RAMPING COST CONTROL PRODUCTION PROGRESS, WITH OPERATIONAL UP, EXPECTING TO OUTLOOK ORISYVO ADVANCING PERFORM
Slide 33: Appendix
APPENDIX ae FRESNILLO.
Slide 34: Grade expectations for 2023
G R A D E E X P E C TAT I O N S F O R 2 0 2 3 34 GOLD (G/T) MINE MINE TYPE 1H 2023 FY 2023e Fresnillo Underground silver 0.64 0.50-0.70 Saucito Underground silver 1.52 1.20-1.40 San Julián (veins) Underground silver & gold 1.20 1.20-1.30 San Julián (disseminated) Underground silver 0.09 - Ciénega Un
Slide 35: Operations: San Julián
1 H 2 3 I N T E R I M R E S U LT S – O P E R AT I O N S 35 SAN JULIÁN (VEIN SYSTEM) S A N J U L I Á N ( D I S S E M I N AT E D O R E B O D Y ) KEY OPERATING HIGHLIGHTS 1H23 1H22 KEY OPERATING HIGHLIGHTS 1H23 1H22 Gold production – koz 20.5 21.7 Gold production – koz 1.8 1.7 Silver production – moz 2
Slide 36: Operations: Ciénega
1 H 2 3 I N T E R I M R E S U LT S – O P E R AT I O N S 36 CIÉNEGA KEY OPERATING HIGHLIGHTS 1H23 1H22 Silver production – moz 1.9 2.5 Gold production – koz 17.4 18.9 Cash cost - US$/oz of Au 1,455.39 84.00 AISC – US$/oz of Au 3,072.87 1,302.58 Reserves 2022 * 31.6 moz Ag, 0.3 moz Au Resources 2022 *
Slide 37: Operations: Herradura
1 H 2 3 I N T E R I M R E S U LT S – O P E R AT I O N S 37 HERRADURA KEY OPERATING HIGHLIGHTS 1H23 1H22 Silver production – moz 0.3 0.4 Gold production – koz 189.8 160.6 Cash cost - US$/oz of Au 1,214.70 1,248.08 AISC – US$/oz of Au 1,390.22 1,755.78 Reserves 2022 * 6.2 moz Au Resources 2022 * 7.8 m
Slide 38: Operations: Noche Buena
1 H 2 3 I N T E R I M R E S U LT S – O P E R AT I O N S 38 NOCHE BUENA • Mine closure activities continue in line with the closure plan, including the reestablishment of native vegetation • Final 2023 gold ore grade was 0.47 g/t as no additional volumes will be deposited KEY OPERATING HIGHLIGHTS 1H2
Slide 39: Strong silver resource and reserve bases
RESERVES & RESOURCES 39 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 B A S E S SILVER RESOURCES RESOURCES CHANGE 2,204Moz Total silver resources 2022** 2,203,872 2021 2,319,687 Koz -115,814 % -5.0% • Resources decreased 5% vs. 2021, primarily due to depletion and higher costs and cut-off g
Slide 40: Strong gold resource and reserve bases
RESERVES & RESOURCES 40 STRONG GOLD RESOURCE & RESERVE BASES RESOURCES GOLD RESOURCES CHANGE 39.1Moz Total gold resources 2022** 39,109 2021 38,975 Koz +133.2 % +0.3% • Resources remained stable year on year • Increase at Guanajuato exploration project and 45,000 upgrade to indicated resources at Ce
Slide 41: Adjusted revenues
1 H 2 3 I N T E R I M R E S U LT S – A D J U S T E D R E V E N U E S 1 H 2 3 41 1H23 ADJUSTED REVENUES: US$1,430.8M
Slide 42: Contribution by mine and by metal to adjusted revenues
1 H 2 3 I N T E R I M 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 42 TO ADJUSTED REVENUES 1H23 1H23 ADJUSTED REVENUES 1 : US$1,430.8M By mine By metal Fresnillo Saucito Ciénega Herradura Silver Gold Noche Buena San Julián DOB San Julián Veins Juanicipio Lead Zinc Fresnillo
Slide 43: Costs summary (IFRS)
1 H 2 3 I N T E R I M R E S U LT S – C O S T S S U M M A RY ( I F R S ) 43 COST PER TONNE CASH COST AISC US $ / Tonne CHANGE US $ / Silver Ounce CHANGE US $ / Silver Ounce CHANGE 1H23 1H22 % CHG. 1H23 1H22 % CHG. 1H23 1H22 % CHG. MINE Fresnillo 91.69 87.23 5.1% 7.41 3.53 110.1% 15.27 12.52 22.0% Sau
Slide 44: Notes
NOTES 44 4