Fresnillo Plc · LSE:FRES
Fresnillo — BofA Global Metals, Mining & Steel Conference 2020
21 slides from Fresnillo's conference presentation, May 13, 2020
Slide 1: Rising to challenges, moving forward with confidence
b aa —v— FRESNILLO. "Rising to challenges, moving forward with confidence” BofA: Global Metals, Mining & Steel Conference Wednesday 13* May 2020 Octavio Alvidrez, CEO Fresnillo plc 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 statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “in
Slide 3: Agenda
AGENDA Overview Fresnillo at a Glance COVID-19 Response The Fresnillo Proposition: * Commitment to sustainable business practices High quality assets Continued focus on costs Disciplined approach to development Strong balance sheet Outlook
Slide 4: Fresnillo at a Glance
FRESNILLO AT A GLANCE World's largest silver producer (54.6 moz in 2019) and Mexico's largest gold producer (875.9 koz in 2019) Total assets of US$4.8 billion’ and market cap of US$6.2 billion? Silver resources of 2.3 billion ounces and gold resources of 39.0 million ounces are the foundation for cr
Slide 5: COVID-19 Response
COVID-19 RESPONSE 5 The well-being of our workforce and the communities in which we operate is our first priority and we will continue to do all we can to ensure their safety HEALTH & SAFETY OF GOVERNMENT AND OUR EMPLOYEES COMMUNITY INTERACTION Ensure the safety of our workforce Engagement with all
Slide 6: Investment Proposition
INVESTMENT PROPOSITION OUR KEY COMPETITIVE ADVANTAGES POSITION US TO MEET NEAR-TERM COMMITMENTS AND DRIVE LONG-TERM VALUE pray HIGH QUALITY ASSETS 2.3 BNOZ OF SILVER RESOURCES 39.0 MOZ OF GOLD RESOURCES DISTRICTS WITH GROWTH POTENTIAL as CONTINUED FOCUS ON COSTS TO MAINTAIN HEALTHY MARGINS CONSOLIDA
Slide 7: Commitment to Sustainable Business Practices
COMMITMENT TO SUSTAINABLE BUSINESS PRACTICES Our Purpose: “Contribute to the wellbeing of people through the sustainable mining of silver and gold” Embedding a safe and ethical culture, implementing responsible mining practices and sharing the benefits of mining to wider society, while recognising t
Slide 8: Operating Units
OPERATING UNITS * District consolidation strategy enables us to leverage local knowledge and shared infrastructure * Portfolio contains 2,257 moz of attributable silver resources and 39.0 moz of gold resources GOLD (02) MINE MINE TYPE 1920 2019 FRESNILLO UNDERGROUND SILVER 8,781 $2,259 SAUCITO* UNDE
Slide 9: Investing in the Future - Fresnillo District Action Plan Update
INVESTING IN THE FUTURE - FRESNILLO DISTRICT ACTION PLAN UPDATE FRESNILLO PROJECT PURPOSE San Carlos Shaft Deepening > Access to deeper reserves Tunnel Boring Machine Increase development rates Vertical Conveyor Belt Lower costs Topographical Scanner Lower dilution Semi-automatic Drilling Increase p
Slide 10: Cash costs and AISC
• • • • 800 10.0 1,200 14.0 1,000 12.0 8.0 600 10.0 800 6.0 8.0 400 600 4.0 6.0 400 200 4.0 2.0 200 2.0 - - - - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Ag cash cost Au cash cost Ag AISC Au AISC Cash cost per ounce is calculated as total cash cost (cost of sales plus treatment and refinning
Slide 11: Disciplined Approach to Development - Pyrites Plant Project
DISCIPLINED APPROACH TO DEVELOPMENT - PROJECTS PYRITES PLANT PROJECT IN THE FRESNILLO DISTRICT OVERVIEW Expected avg. annual silver production 3.5 moz Expected avg. annual gold production 13.0 koz Expected cash cost at full capacity (average LoM) $2.51 /oz Expected IRR at US$20/0z Ag & US$1,200/0z A
Slide 12: Optimisation of Beneficiation Plant at the Fresnillo Mine
DISCIPLINED APPROACH TO DEVELOPMENT - PROJECTS 12 OPTIMISATION OF BENEFICIATION PLANT AT THE FRESNILLO MINE Three phases: Main requirements to increase capacity (Phase Ill): 1. Zinc thickener installed in 2017 + Robbins equipment MDM 5000 for W San Alberto 2. Increase flotation cells (Ongoing), with
Slide 13: Disciplined Approach to Development - Juanicipio
DISCIPLINED APPROACH TO DEVELOPMENT - PROJECTS JUANICIPIO wv with Mac SILVER. FRESNILLO: 56%) OVERVIEW Mine development continued, first stope fully Prepared by the end of 3Q20 Construction of flotation plant and infrastructure advanced as expected in 1920 Underground operation has been temporarily
Slide 14: Other Projects - Orisyvo, Guanajuato & Rodeo
DISCIPLINED APPROACH TO DEVELOPMENT - PROJECTS 14 OTHER PROJECT & POTENTIAL PROJECTS - ORISYVO, GUANAJUATO & RODEO OVERVIEW - ORISYVO (GOLD! - 2,950m of test drilling at the Orisyvo project in 2019 - Following improved metallurgy recovery results in 2019, full-scale metallurgical test work is to be
Slide 15: Exploration
EXPLORATION STRONG ORGANIC GROWTH PIPELINE Fresnillo 2020 Budget: US$ 135m Saucito Herradura Nochebuena 60% Cienega - San Ramon Cebollitas Cluster San Julian Soledad & Dipolos* Mine Operations Development Projects Pyrites Plant Juanicipio 20% Centauro Great Potential Orisyvo Gua Rodeo Tajito: Advanc
Slide 16: Shared with Peñoles, the holding company
* Shared with Peñoles, the holding company
Slide 17: Outlook
OUTLOOK Outlook 2020 7
Slide 18: Project approval status
1 2 4 3 APPROVED BY THE BOARD SUBJECT TO ONGOING INTERNAL REVIEW (SUBJECT TO BOARD APPROVAL) Silver) as of 1st January 2018.
Slide 19: 2020 silver and gold guidance
1 1 2020 silver guidance: 51-56 moz 2020 gold guidance: 815-900 koz
Slide 20: Capex and exploration guidance
Sustaining (Operations) New Projects Approved Capex and exploration guidance under constant review
Slide 21: Concluding Remarks
CONCLUDING REMARKS STRONG COMMITMENT TO OPERATIONAL DELIVERY, MAXIMISING POTENTIAL OF OUR EXISTING MINES FOCUS ON REDUCING COST AND CAPTURING EFFICIENCIES PRIORITISING THE HEALTH OF OUR WORKFORCE DURING COVID OUTBREAK SAFETY TO REMAIN AT THE HEART OF EVERYTHING WE DO PURPOSEFUL ENGAGEMENT WITH STAKE
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