Fresnillo Plc · LSE:FRES
Fresnillo — Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference
23 slides from Fresnillo's conference presentation, May 16, 2012
Slide 1: Strengthening our Precious Metals Position
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference May 16, 2012 Strengthening our Precious Metals Position
Slide 2: Disclaimer
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 2 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”,
Slide 3: Agenda
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 3 Agenda • 1Q 2012 Operational Highlights • 2011 Financial Highlights • Operations Review • Exploration • Conclusions • Q&A
Slide 4: 1Q 2012 Operational Highlights
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 4 1Q 2012 Operational Highlights • Noche Buena commenced first commercial gold production within time and budget in March • Quarterly attributable gold production above expectations and an increase of 26.3% to 121,792 ounces compared wi
Slide 5: 2011 Financial Highlights
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 5 2011 Financial Highlights • Profit and Loss: • Adjusted revenue1 of US$2,307.5 million, up 57% • EBITDA2 of US$1,538 million, up 63% (EBITDA margin of 70%) • Operating Profit of US$1,360.9 million, up 63% • Profit for the year of US$1
Slide 6: 2011 Financial Highlights
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 6 2011 Financial Highlights • Cash Flow • Net Cash from operations activities US$1,249.2 million, up 78% • US$179 million capital invested in exploration (including US$45 million which were capitalized) • US$423 million invested in CAPE
Slide 7: Operations Review
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 7 Operations Review
Slide 8: 2011 Sales contribution
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 8 2011 Sales contribution by Mine (US$ M) by Product (US$ M) Silver Gold Lead Zinc $1,500 $1,200 $1,000 $1,000 $800 $600 $500 $400 $200 $- $- Silver Gold Lead Zinc Fresnillo Saucito Ciénega Herradura Soledad-Dipolos
Slide 9: Silver: Fresnillo District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 9 Silver Fresnillo District
Slide 10: Fresnillo - Fresnillo District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 10 Fresnillo - Fresnillo District Resources (Oz M Ag) M&I I 800 600 • Ownership: 100% Fresnillo plc 400 • Location: Zacatecas 200 • Facilities: Underground mine and flotation plant 0 • Milling capacity: 8,000 tpd 2007 2008 2009 2010 201
Slide 11: Saucito - Fresnillo District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 11 Saucito- Fresnillo District Resources (Oz M Ag) M&I I 600 400 • Ownership: 100% Fresnillo plc • Location: Zacatecas, 8 km SW of the 200 Fresnillo mine • Facilities: Underground mine and 0 flotation plant 2007 2008 2009 2010 2011 • 20
Slide 12: Gold: Herradura District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 12 Gold Herradura District
Slide 13: Herradura - Herradura District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 13 Herradura – Herradura District Resources (Oz K Au) M&I I 6,000 4,000 • Ownership: Minera Penmont (56% Fresnillo, 44% Newmont USA Limited) 2,000 • Location: Sonora • Facilities: Open pit mine, heap leach 0 and Merrill-Crowe plant 2007
Slide 14: Soledad-Dipolos - Herradura District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 14 Soledad-Dipolos Herradura District Resources (Oz K Au) M&I I 1,500 1,000 • Ownership: Minera Penmont (56% Fresnillo, 44% Newmont USA Limited) 500 • Location: Sonora • Facilities: Open pit mine, heap leach 0 and Merrill-Crowe plant 20
Slide 15: Noche Buena - Herradura District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 15 Noche Buena Herradura District Resources (Oz K Au) M&I I 800 600 • Ownership: Minera Penmont (56% 400 Fresnillo, 44% Newmont USA Limited) 200 • Location: Sonora • Facilities: Open pit mine, heap leach - and Merrill-Crowe plant 2007 2
Slide 16: Ciénega - Ciénega District
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 16 Ciénega - Ciénega District Resources (Oz K Au) M&I I 3,000 2,000 • Ownership: 100% Fresnillo plc • Location: Durango 1,000 • Facilities: Underground mine, flotation and leaching plant 0 • 2011 milling capacity: 2,800 tpd • Workforce:
Slide 17: Exploration
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 17 Exploration
Slide 18: Resources and Reserves
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 18 Resources and Reserves • Substantial increase in Total Resources (Measured, Indicated Gold Resources and Inferred): 25 • Silver 1,811 Moz, up 23% • Gold 23.5 Moz, up 17% 20 MOz • Ten year Reserve Life: 15 • Silver 403 Moz • Gold 4.6
Slide 19: Exploration
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 19 Exploration • Fresnillo District: • Drilling of new geophysical-geochemical targets was initiated in two areas and totalled 10,434 metres in 15 holes. • Infill drilling continued to upgrade Fresnillo Saucito resources on Juanicipio.
Slide 20: Exploration
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 20 Exploration • San Julián • Silver and gold resources both increased from the previous year and three gold-silver veins were discovered. The San Julián ramp was extended to 13,389 metres and 237 metres were constructed on the new Todo
Slide 21: Estimated project delivery
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 21 Estimated project delivery On track to produce 65m oz of silver and new target of 500k oz of gold by 2018 Project 2012 2013 2014 2015 2016 2017 2018 Dynamic Construction Production Leaching Detailed San Julián Construction Production
Slide 22: Conclusions
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 22 Conclusions
Slide 23: Conclusions
May 16, 2012 BAML 2012 Global Metals, Mining & Steel Conference 23 Conclusions • In 2012 we will: • Reinforce safety procedures • Maintain silver production at 41 million ounces • Increase attributable gold production to 460,000 ounces • Continue cost control initiatives • Expand our resource base w
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