Fresnillo Plc · LSE:FRES
Fresnillo — BofA Global Metals, Mining & Steel Conference 2021
24 slides from Fresnillo's conference presentation, May 19, 2021
Slide 1: BofA Global Metals, Mining & Steel Conference
BofA: G L O B A L M E TA L S , M I N I NG & S T E E L C O N F E R E N C E 1 9 M AY 2 0 2 1 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 —v— FRESNILLO.
Slide 5: Fresnillo at a Glance
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 5 F R E S N I L L O AT A G L A N C E 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
Slide 6: Fresnillo at a Glance (footnotes)
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 6 F R E S N I L L O AT A G L A N C E 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
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 8 INVESTMENT PROPOSITION 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 SUSTAI
Slide 9: High Quality Assets
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 9 HIGH QUALITY ASSETS 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
Slide 10: Healthy Margins Supported by a Focus on Cost
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 10 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 ALL-IN SUSTAINING COST OF GOLD & PRICE EVOLUTION 1,792 AISC (Au eq US$/oz) Au price (US$/oz) ¹ 1,392 1,257 1,269 58% Margin 22% Margin 39% Margin
Slide 11: Disciplined Approach to Development
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 11 DISCIPLINED APPROACH TO DEVELOPMENT 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-Dipo
Slide 12: Disciplined Approach to Development: Juanicipio
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 12 DISCIPLINED APPROACH TO DEVELOPMENT JUANICIPIO (JV WITH MAG SILVER. FRESNILLO: 56%) KEY METRIC ESTIMATES (100% BASIS) OVERVIEW • Mine development continued to advance, despite progress being slowed due to Covid-19 rest
Slide 13: Disciplined Approach to Development: Juanicipio
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 13 DISCIPLINED APPROACH TO DEVELOPMENT JUANICIPIO (JV WITH MAG SILVER. FRESNILLO: 56%)
Slide 14: PEA – Feasibility Projects: Orisyvo, Rodeo & Guanajuato
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 14 DISCIPLINED APPROACH TO DEVELOPMENT 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 ORISYVO (GOLD) RODEO (GOLD) GUANAJUATO (SILVER / GOLD) • Multi-purpose underground dril
Slide 15: Disciplined Approach to Development: Exploration
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 15 DISCIPLINED APPROACH TO DEVELOPMENT 2021 Budget: US$ 162m Fresnillo Saucito 35 % ▪ Exploration objective: 2 Moz gold or 150 Herradura Moz silver, satellite orebodies 1 Moz gold Mine Operations Nochebuena (or silver equ
Slide 16: Commitment to Sustainable Business Practices
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 16 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 Total Injury Frequency Rate and Lost Time Injury Fatal Injuries 2018-2020 Frequency Rate (2018-2020) 6 0.14 900 25 FFR: fatal injuries*1000
Slide 17: Commitment to Sustainable Business Practices
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 17 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 W E B E L I E V E T H AT R E S P O N S I B L E M I N I N G I S C O M PAT I B L E W I T H H I G H S TA K E H O L D E R E X P E C TAT I O N S
Slide 18: Commitment to Sustainable Business Practices
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 18 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 Actions included: Further actions included: • Working closely with the Mining Ministry of Mexico to develop national workplace guidance for
Slide 19: Strong Balance Sheet – Underlined by Demonstrated Solid Financials
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 19 S T R O N G B A L A N C E S H E E T – U N D E R L I N E D B Y 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 US$mm US$mm 2,500 1,200 0.7 2,000 1,000 0.6 51% 1,500 800 0.5 48% 2,4
Slide 20: Outlook
OUTLOOK FRESNILLO.
Slide 21: Outlook – Expected Attributable Production Profile
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 21 O U T L O O K - E X P E C T E D A T 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 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
Slide 22: Outlook – Capex Spend Expectations
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 22 O U T L O O K - C A P E X S P E N D E X P E C TAT I O N S Million Usd 2021 Forecast US$ Million 700 680 Sustaining (Operations) 600 Fresnillo 96 M 4 Saucito 113 M 500 485 Ciénega 52 M 445 412 San Julián 63 M 400 Herrad
Slide 23: Consolidated Outlook
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 23 C O N S O L I D AT E D O U T L O O K 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 (Optimizatio
Slide 24: Concluding Remarks
B o f A - G L O B A L M E TA L S , M I N I N G & S T E E L C O N F E R E N C E 24 CONCLUDING REMARKS STRONG FOCUS ON PRIORITISING THE PURPOSEFUL CREATE COMMITMENT TO REDUCING COSTS HEALTH OF OUR ENGAGEMENT WITH VALUE THROUGH OPERATIONAL AND CAPTURING WORKFORCE DURING STAKEHOLDERS DISCIPLINED GROWTH,
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