Fresnillo Plc · LSE:FRES

Fresnillo — Investor Day (December 2019)

124 slides from Fresnillo's investor day presentation, Dec 2, 2019

1. Slide 1: Capital Markets Day

   Capital Markets Day Monday 2nd December 2019 LSE: FRES BMV: FRES www.fresnilloplc.com

2. 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

3. Slide 3: Agenda

   AGENDA 3 TIME MIN PRESENTER TOPIC 08:30 – 08:35 05 Octavio Alvídrez Introduction 08:35 – 09:35 60 Andre Sougarret Operations 09:35 – 09:50 15 David Giles Geological Model/ R&R (operating mines) 09:50 – 10:10 20 Octavio Alvídrez Projects 10:10 – 10:40 30 David Giles Exploration (new projects) 10:40 –

4. Slide 4: Fresnillo at a Glance

   FRESNILLO AT A GLANCE 4 FRESNILLO TODAY • 7 OPERATIONS ACROSS MEXICO • WORLDS LARGEST SILVER PRODUCER & MEXICO’S LARGEST GOLD PRODUCER • SILVER RESOURCES OF 2.2 BILLION OUNCES AND GOLD RESOURCES OF 39.1 MILLION • GROWTH POTENTIAL SUPPORTED BY MINING CONCESSIONS ACROSS MEXICO, PERU AND CHILE • SUBSTA

5. Slide 5: A Decade of Production and Resource Growth per Share

   FRESNILLO AT A GLANCE 5 A DECADE OF PRODUCTION AND RESOURCE GROWTH PER SHARE 140 200 PRODUCTION (EQ AG OZ) PER THOUSAND SHARES 180 PRODUCTION (EQ AG OZ) PER 120 PRODUCTION EQ AG MOZ) 160 THOUSAND SHARES 100 140 PRODUCTION 80 120 100 60 80 40 60 40 20 20 - - 2007 2008 2009 2010 2011 2012 2013 2014 20

6. Slide 6: Growth and Returns

   FRESNILLO AT A GLANCE 6 GROWTH AND RETURNS INVESTING IN GROWTH GROWTH OUTCOME RETURNS Increase in silver equivalent resources EBITDA Total Exploration Expenses from the (2007-2018) (2008 to 2018) last decade (2008 to 2018) Total EBITDA – US$ 9,485m 4,817.4 million ounces* Average EBITDA – US$ 862m U

7. Slide 7: Investment Proposition

   FRESNILLO AT A GLANCE 7 OUR KEY COMPETITIVE ADVANTAGES POSITION US TO MEET NEAR-TERM COMMITMENTS AND DRIVE LONG-TERM VALUE INVESTMENT PROPOSITION HIGH QUALITY ASSETS COMPETITIVE MARGINS DISCIPLINED APPROACH TO COMMITMENT TO SUSTAINABLE STRONG BALANCE SHEET SUPPORTED BY A FOCUS ON DEVELOPMENT BUSINES

8. Slide 8: Today's Focus: Challenges and Action Plan

   FRESNILLO AT A GLANCE 8 TODAYS FOCUS CHALLENGES FOCUSED ACTION PLAN • Flat Production • Stabilise current operations and improve performance • Prepare quality growth - Juanicipio • Intensive infill drilling programme • Greater variability in the operations • Innovative training facilities • Lower op

9. Slide 9: Operations

   ~n 2 o q [a4 wi a. ce) ae

10. Slide 10: Operational Review

    OPERATIONAL REVIEW 2 ANDRÉ SOUGARRET - CHIEF OPERATING OFFICER BACKGROUND FIRST IMPRESSIONS CORE AREAS OF FOCUS - Major Mexican business with long track 1. Safety record 2. Addressing near term operational - Cultural commitment to safety, challenges head-on community and staff development 3. Reduce

11. Slide 11: Safety Performance

    SAFETY 3 SAFETY PERFORMANCE Lost Time Injury Frequency Rate Lost Time Injury Frequency Rate (LTIFR) Total Recordable Injury Frequency Rate Monthly Data 12 Month Rolling Average 14 23.22 11.60 20.47 11.42 19.15 12 10 9.27 8.09 Frequency Rate 8.14 8.64 8.32 7.12 7.70 8 6.46 7.60 7.30 7.21 7.22 7.16 6.

12. Slide 12: I Care, We Care Programme

    SAFETY 4 “I CARE, WE CARE” PROGRAMME - STRATEGIES • Global health and safety programme • Based on shared values across the entire organisation “caring for our people” • Driven by senior managment • Focus on high potential incidents LEADERSHIP • SENIOR LEADERSHIP EDUCATION COURSES VALUES-DRIVEN LEADE

13. Slide 13: Tailings Dams Review Update

    TAILINGS DAMS 5 TAILINGS DAMS - REVIEW UPDATE Fresnillo remains committed to A series of initiatives were launched in early 2019 to align governance updating TSF governance practices to practices with current best practice meet all industry standards • Updating the inventory of TSFs and validating d

14. Slide 14: Operational Priorities

    OPERATIONS 6 FRESNILLO PLC – GROUP LEVEL OPERATIONAL PRIORITIES KEY OBJECTIVES INVESTING IN THE DRIVERS GOLD 1. Increase personnel safety 1. Operational discipline PRODUCTION (KOZ) 2. Operate the seven mines and best practices at full capacity and as 2. Flexible long term mine efficiently as possibl

15. Slide 15: Fresnillo Mine Overview

    OPERATIONS 7 FRESNILLO MINE OVERVIEW Ore grade (g/t) 220 190 ±1% 215 ±5% KEY CHALLENGES FOCUSED ACTION PLAN SILVER 1. Decreasing vein width, 1. Dilution control: PRODUCTION (MOZ) increased dilution improved appraising, 2. Ore grade variability drilling, and blasting 21.0 ±5% 15.6 3. Increased base m

16. Slide 16: Fresnillo Mine: Dilution

    OPERATIONS 8 FRESNILLO MINE Action Plan 1. DECREASING VEIN WIDTH, INCREASED DILUTION 4.5 • Topographic scanner 4.0 3.9 • Implementing full 3D cavity monitoring system scanning 3.6 3.6 3.4 3.4 • 51% of total production stopes 3.5 AVG VEIN WIDTH IN METRES • Improved drilling techniques 3.0 • Adjust bl

17. Slide 17: Fresnillo Mine: Ore Grade Variability

    OPERATIONS 9 FRESNILLO MINE 2. ORE GRADE VARIABILITY 300 Action Plan 250 258 220 227 230 214 200 • Infill drilling programme • Reduce drilling pattern from 150m to 75m, and up to 40m in some g/t Ag 150 100 areas • Sampling and assaying 50 • Sampling procedure review, additional qa/qc steps introduce

18. Slide 18: Contractor Underperformance and Development Delays

    OPERATIONS 10 FRESNILLO 3. CONTRACTOR UNDERPERFORMANCE AND DEVELOPMENT DELAYS 4,500 3,809 3,934 Action Plan 4,000 3,500 3,271 3,359 • Increase development to an estimated average of 3,150 mts per month 2,893 Avg mts per month 3,000 in 2019 2,500 • Rationalise contractors: 4 houses developing 1,000m

19. Slide 19: Tunnel Boring Machine

    OPERATIONS 11 FRESNILLO 3a. TUNNEL BORING MACHINE • Capex: US$22.7 million • Start date: Dec 2016 • Finish date: Q4 2019 • Ramp up: 1Q 2020 • 300 mts per month • Total of 11 km will be developed SAN CARLOS VEIN LONG SECTION SAN CARLOS SHAFT RAMP 14 RAMP 6 RAMP 10 C/F 695W C/F 920W RPA 790-930 TSC N-

20. Slide 20: Deep Infrastructure

    OPERATIONS 12 FRESNILLO MINE 4. DEEP INFRASTRUCTURE Action Plan Ramp 6 Ramp 10 • Deepen San Carlos shaft: access 56% of reserves through extending existing 550m shaft to 990m • $35m capex Actual 550m • Start date: Jun 2016 440 m Deepening • End date: Q4 2020 • San Alberto General pump station: drain

21. Slide 21: Productivity

    OPERATIONS 13 FRESNILLO MINE 5. PRODUCTIVITY Action Plan • Reduce downtime through improved access to work areas • Semi automatic equipment • 12-15% more productivity • Sunday shifts • Currently 4,000-4,500 tpd • Reliability Centered Maintenance • 1st phase: critical mine equipment • 2nd phase: Incl

22. Slide 22: Fresnillo Outlook

    OPERATIONS 14 FRESNILLO OUTLOOK OPERATIONAL KPIs  Progress on plans set out on previous  Haulage level 695m  Haulage level 920m pages  Pyrites project complete  Increase ore processed to 9000 tpd,  Development rates 3700 – 4000 m/m subject to increase in mine  Optimised Lead and Zinc circuit

23. Slide 23: Saucito Overview

    OPERATIONS 15 SAUCITO OVERVIEW Ore grade (g/t) 328 227 ±1% 211 ±5% KEY CHALLENGES FOCUSED ACTION PLAN SILVER 1. Approaching greater ore 1. Improved appraising, PRODUCTION (MOZ) grade variability drilling, and blasting 22.0 2. Narrower veins 18.4 ±1% 2. Infill drilling, dilution 18.0 ±5% 3. Deeper pr

24. Slide 24: Saucito Mine Layout

    OPERATIONS 16 SAUCITO 1. SAUCITO MINE LAYOUT N Bonanza area (250 mts – 600 mts) New production areas (600 mts – 950 mts)

25. Slide 25: Saucito: Decreasing Vein Width, Increased Dilution

    OPERATIONS 17 SAUCITO 1. DECREASING VEIN WIDTH, INCREASED DILUTION 4.5 4.2 4.0 3.8 3.9 Action Plan 3.5 3.2 AVG VEIN WIDTH IN METRES 3.0 3.0 • Topographic scanner 2.5 • Implementing full 3D cavity monitoring system scanning 2.0 • 51% of total production stopes 1.5 • Improved drilling techniques 1.0 0

26. Slide 26: Saucito: Ore Grade Variability

    OPERATIONS 18 SAUCITO MINE 2. ORE GRADE VARIABILITY 400.0 350.0 338.9 327.5 Action Plan 300.0 302.7 279.8 250.0 257.6 • Infill drilling programme 200.0 • Reduce drilling pattern from 150m to 75m, and up to 40m in some g/t Ag 150.0 areas 100.0 • Sampling and assaying 50.0 • Sampling procedure review,

27. Slide 27: Saucito: Contractor Underperformance

    OPERATIONS 19 SAUCITO 3. CONTRACTOR UNDERPERFORMANCE AND DEVELOPMENT DELAYS 4,500 3,934 Action Plan 4,000 3,809 3,271 3,359 3,500 2,893 • Increase development to an estimated average of 3,250 mts per month 3,000 Avg mts per month 2,500 in 2019 2,000 • Rationalise contractors: 4 houses developing 1,0

28. Slide 28: Saucito Outlook

    OPERATIONS 20 SAUCITO OUTLOOK  Progress on plans set out on previous  Review geological and geomechanic models by  Jarillas shaft deepening the end of 2020, including mine costs pages  Jarillas WW by 2023  Reliability Centered Maintenance  Mine preparation (ventilation, filling, sewage,  Mine

29. Slide 29: San Julián Veins Overview

    OPERATIONS 21 SAN JULIÁN VEINS Ag ore grade (g/t) 173 115 ±1% 145 ±5% Au ore grade (g/t) 2.5 1.6 ±1% 1.4 ±5% KEY CHALLENGES FOCUSED ACTION PLAN SILVER PRODUCTION (MOZ) 1. Disperse, narrow veins 4.3 ±1% 1. Improved appraising, 4.7 ±5% 2.1 2. Ore grade variability drilling, and blasting 3. Convert res

30. Slide 30: San Julián Disseminated Ore Body

    OPERATIONS 22 SAN JULIÁN DISSEMINATED ORE BODY Ag ore grade (g/t) 180 139 ±1% 197 ±5% Au ore grade (g/t) 0.1 0.1 0.1 KEY CHALLENGES FOCUSED ACTION PLAN SILVER PRODUCTION (MOZ) 11.4 ±5% 1. Stability of the mine 8.6 ±1% 1. Change mine sequencing 4.6 2. Increase resource base to maintain geotechnical 3

31. Slide 31: San Julián Disseminated Ore Body Mining

    OPERATIONS 23 SAN JULIÁN DISSEMINATED ORE BODY • Backfill mining method • Stope unit 16 m x 25 m x 20 m (WxHxD) • Parallel sequence in three areas • Rock falls issues resulting from mining along horizontal advances • Adjust sequence to concave shape • Adjustment is expected to be concluded by 1H 202

32. Slide 32: San Julián Water Reservoir

    OPERATIONS 24 SAN JULIÁN WATER RESERVOIR • Capex: US$15 million • Indigenous consultation: 3Q 2018 • Start date: 4Q 2018 • Finish date: 4Q 2019 • Capacity: 1,200,000m3 • Ensure water supply for the San Julián mine

33. Slide 33: San Julián Outlook

    OPERATIONS 25 SAN JULIÁN OUTLOOK  Progress on plans set out on previous pages • Optimise operation costs • Technology projects: Ventilation on demand, operational control, Remote operations • Increase resource base • New mining areas • Control sustaining capex 2019 -2020 2020 -2021 CONSOLIDATE OPER

34. Slide 34: Ciénega Overview

    OPERATIONS 26 CIÉNEGA OVERVIEW Silver Ore grade (g/t) 129 162 ±1% 181 ±5% Gold Ore grade (g/t) 2.1 1.6 ±1% 1.8 ±5% KEY CHALLENGES FOCUSED ACTION PLAN SILVER PRODUCTION (MOZ) 6.2 ±5% 1. Safety and security 5.9 ±1% 1. Focus on exploration 4.8 2. Increase resources 2. Construction of tailings 3. Increa

35. Slide 35: Ciénega Layout

    OPERATIONS 27 CIÉNEGA CIÉNEGA LAYOUT

36. Slide 36: Ciénega Layout

    OPERATIONS 28 CIÉNEGA CIÉNEGA LAYOUT

37. Slide 37: Ciénega Outlook

    OPERATIONS 29 CIÉNEGA • Conclude construction of the tailings • Optimise operation costs • Engineering and Construction for dam 3 in 1Q 2020 • Convert resources into reserves to tailings dam #4 • Infill drilling programme (48-50K mts) the west and east of Ciénega • Develop long term mine plan • Cont

38. Slide 38: Herradura Overview

    OPERATIONS 30 HERRADURA OVERVIEW Ore grade HL (g/t) 0.57 0.5 ±1% 0.7 ±5% Ore grade DLP (g/t) 2.1 1.5 ±1% 1.1 ±5% KEY CHALLENGES FOCUSED ACTION PLAN 1. Deeper pit, higher 1. Review options for mine consumption of inputs plan 2. Increase in stripping ratio 2. Dual fuel system 3. Control of haulage cos

39. Slide 39: Herradura: Increasing Stripping Ratio

    OPERATIONS 31 HERRADURA 1. INCREASING STRIPPING RATIO 6.00 5.00 Action Plan 4.82 4.60 4.12 4.00 4.00 3.72 • Ongoing review of LOM and profitability Stripping ratio 3.00 • Deploy efficiency and cost reduction initiatives • Shorten distance to leaching pads and waste dumps 2.00 • Implement dual fuel s

40. Slide 40: Herradura: Geotechnical Model

    OPERATIONS 32 HERRADURA 2. GEOTECHNICAL MODEL UG_3.6 UG_3.7 UG_3.1 UG_3.5 UG_3.4 UG_3.3 UG_3.2

41. Slide 41: Herradura Outlook

    OPERATIONS 33 HERRADURA OUTLOOK  Geotechnical bench monitoring  Review models:  Optimised mine plan  Pre-splitting techniques for bench walls  Geomechanic  Slopes angles  Short term planning and operational control  Mine costs  Mine costs  Installation of dual fuel system in 30 trucks  In

42. Slide 42: Noche Buena Overview

    OPERATIONS 34 NOCHE BUENA OVERVIEW Ore grade (g/t) 0.50 0.56 ±1% 0.53 ±1% KEY CHALLENGES FOCUSED ACTION PLAN 1. Deeper pit, higher 1. Strict cost control, deploy consumption of inputs efficiency teams 2. Increase gold recovery 2. Install carbon columns 3. Mine depleted by 2021 3. Mine closure activi

43. Slide 43: Noche Buena Outlook

    OPERATIONS 35 NOCHE BUENA OUTLOOK  Geotechnical bench monitoring  Gold recovery on leaching pads  Pre-splitting techniques for bench walls  Adjust fixed costs structure  Short term planning and operational control  Closure plan  Mine closure  Site caracterisation  Review final design of wal

44. Slide 44: Geological Model – Reserves & Resources

    1 GEOLOGICAL MODEL – RESERVES & RESOURCES

45. Slide 45: Modelling and Planning Cycle

    GEOLOGICAL MODEL – RESERVES & RESOURCES 2 MODELLING AND PLANNING CYCLE OVERVIEW • Resources & reserves audited & certified by independent competent persons under JORC every year dilution calibration adjustment assumptions cut-offs

46. Slide 46: Fresnillo: Reserve Ore Grade vs Production Ore Grade

    GEOLOGICAL MODEL – RESERVES & RESOURCES 3 RESERVE ORE GRADE VS PRODUCTION ORE GRADE FRESNILLO RESERVE GRADE PRODUCTION GRADE 2015 2018 2019 • Silver grade decrease in reserves was • Ore grade in production from 2008- larger in the initial years 2008-2012 2013 was above reserve grade Grade in product

47. Slide 47: Saucito: Reserve Ore Grade vs Production Ore Grade

    GEOLOGICAL MODEL – RESERVES & RESOURCES 4 RESERVE ORE GRADE VS PRODUCTION ORE GRADE SAUCITO RESERVE GRADE PRODUCTION GRADE 2015 2018 2019 • Reserves have been replaced with • Ore grade in production has been lower silver ore grade due to vein within reasonable variability vs.ore Grade in production

48. Slide 48: San Julián: Reserve Ore Grade vs Production Ore Grade

    GEOLOGICAL MODEL – RESERVES & RESOURCES 5 RESERVE ORE GRADE VS PRODUCTION ORE GRADE San Julián (Veins) RESERVE GRADE PRODUCTION GRADE 2016 2018 2019 • Gold ore grade in reserves has • Gold ore grade in production has decreased year on year been above the reserve grade, until Grade in production (Au

49. Slide 49: Measures Underway

    GEOLOGICAL MODEL – RESERVES & RESOURCES 6 MEASURES UNDERWAY 4 TEAMS HAVE BEEN WORKING IN 2019 ON THE RESERVE (GEOLOGICAL) MODEL TO EVALUATE: • Interdisciplinary teams comprised of operations and exploration personnel • Identify areas of opportunity, following recommendations from the reserve and res

50. Slide 50: Conclusions to Date

    GEOLOGICAL MODEL – RESERVES & RESOURCES 7 CONCLUSIONS TO DATE • The reserve model at the Fresnillo mine meets industry standards, with local variances of up to 10 g/t silver. • Infill drilled areas tend to have lower ore grade, and areas with new development have increased ore grade. • The reserve m

51. Slide 51: Projects

    1 PROJECTS

52. Slide 52: Project Objective and Criteria

    OPERATIONS 2 FRESNILLO OBJECTIVE 95% of our growth has been organic Stringent criteria • 15 years of Resources • 7-10 years of Reserves • Internal IRR in excess of 15% • Use prices of US$1,250 & US$15 /oz for gold and silver respectively • Profitable through the full mining cycles – sensitivity anal

53. Slide 53: Optimisation of Beneficiation Plant

    OPERATIONS 3 FRESNILLO OPTIMISATION OF BENEFICIATION PLANT Three phases: 1. Zinc thickener installed in 2017 2. Increase flotation cells (Ongoing) 3. Install vibrating screens to increase capacity to 9000 tpd only when the mine is developed and prepared for this expansion: Main requirements to incre

54. Slide 54: Fresnillo Flotation Plant (Pyrites Plant Phase 2)

    PROJECTS 4 FRESNILLO FLOTATION PLANT (2ND PHASE OF THE PYRITES PLANT) OVERVIEW The second phase of the Pyrites plant is expected to increase silver and gold recoveries at the Fresnillo mine by processing historic and ongoing tailings. KEY METRIC ESTIMATES (100% BASIS)* Estimated capex US$53.8 millio

55. Slide 55: Juanicipio Progress Highlights – Planning

    PROJECTS 5 JUANICIPIO PROGRESS HIGHLIGHTS - PLANNING April 2019 project approval based on a Feasibility Study developed from Basic Engineering for the project  Detailed Engineering has now been advanced sufficiently to allow: • Freezing of project scope • Detailed estimating, scheduling and executi

56. Slide 56: Juanicipio Progress Highlights

    PROJECTS 6 JUANICIPIO PROGRESS HIGHLIGHTS • Mine development according to plan • 22Km still to be developed • First production stope expected October 2020 • Construction of the flotation plant • December 2020 – optimistic • Review and update in due course • Original tailings dam construction permitt

57. Slide 57: Juanicipio Current Project Layout

    PROJECTS 7 JUANICIPIO CURRENT PROJECT LAYOUT Processing plant Mine entry and infrastructure

58. Slide 58: Juanicipio Process Plant General Arrangement

    PROJECTS 8 JUANICIPIO PROCESS PLANT GENERAL ARRANGEMENT

59. Slide 59: Juanicipio Process Plant Basic Flow Sheet

    PROJECTS 9 JUANICIPIO CRUSHER STOCK-PILE Pb ROUGHER PROCESS PLANT Pb SCAVENGER BASIC FLOW SHEET Pb CLEANING Pb FILTER Pb LEAD CIRCUIT CONC. SAG MILL THICKENER Pb PRESS FILTER Zn ROUGHER Zn SCAVENGER ANALIZER Zn CLEANING Zn FILTER ZINC CIRCUIT Zn CONC. BALL MILL THICKENER Zn PRESS FILTER IRON CIRCUIT

60. Slide 60: Juanicipio Process Plant Equipment

    PROJECTS 10 JUANICIPIO PROCESS PLANT EQUIPMENT • 90% of all critical process plant equipment requisitioned • 70% of all critical process plant equipment ordered with firm delivery dates • Outotec TC 20 and TC 50 flotation cells built and on site • 35 meter tailing thickener built and on site

61. Slide 61: Juanicipio Mine Development Progress

    PROJECTS 11 JUANICIPIO PROGRESS HIGHLIGHTS – MINE DEVELOPMENT Critical Mine Equipment Procurement • 100% of mobile mining equipment required for start of production requisitioned • Sandvik cable installer manufactured and on site • Horizontal development 26% complete • Vertical development 23% compl

62. Slide 62: Orisyvo Project, Chihuahua

    PROJECTS 12 ORISYVO PROJECT CHIHUAHUA • Underground resources of 4.65 moz of gold at 1.98 g/t. (50 % oxides, 50% sulphides) • Open-pit alternative: 9.6 moz of gold at 1.0 g/t, stripping ratio high • Advancing metallurgical studies in sulphide material (65 to 80% recoveries) • Advancing geotechnical

63. Slide 63: Orisyvo – Initial Model

    PROJECTS 13 ORISYVO – INITIAL MODEL

64. Slide 64: Exploration

    2 o & a ie) = a. x< if)

65. Slide 65: Exploration: Invest, Replace, Consolidate

    EXPLORATION 2 INVEST REPLACE CONSOLIDATE FOCUS ESG in exploration through at least reserves mined districts in selected gold-silver belts On quality, min 2 Moz gold Community & Environment the cycles each year (budget 70% brownfield, 30% greenfield) equivalent engagement PROJECT CRITERIA HURDLES Loc

66. Slide 66: Exploration Strategy: Mexico, Peru, Chile

    EXPLORATION STRATEGY 3 MEXICO • Extensive exploration concessions in key districts • Herradura, Fresnillo, San Julián, Ciénega Districts (reserves and resources) • Guanajuato, Orisyvo, Rodeo, Tajitos advanced projects (resources) FOCUS BUDGET ON THE FRESNILLO AND SAN JULIAN DISTRICTS MAINTAIN AND CO

67. Slide 67: Strategic Portfolio: A Moving Pipeline

    FRESNILLO PLC STRATEGIC PORTFOLIO: A MOVING PIPELINE 4 2020 PROPOSED ALLOCATION Fresnillo 35% of the exploration budget Saucito (reserves conversion separate) Herradura Nochebuena Mine Operations Ciénega - San Ramón Soledad &Dipolos* San Julián 20% Cebollitas Cluster Development Projects Centauro Ex

68. Slide 68: Risk Assessment

    RISK ASSESSMENT 5 FRESNILLO DISTRICT HERRADURA DISTRICT SAN JULIAN DISTRICT RISK ASSESSMENT 1. Impact of metal prices 2. Potential actions by government 3, 6, 8, 9, 4 1, 3, 8, 10, 2 1, 8, 3, 4, 10 3. Access to land CIÉNEGA DISTRICT ORISYVO GUANAJUATO 4. Security 5. Public perception against mining 6

69. Slide 69: Fresnillo District

    WHY FRESNILLO? 6 • Best value margin • In house experience • 9 targets identified • 3 areas in drilling with 15 rigs FRESNILLO DISTRICT

70. Slide 70: Slide 70

71. Slide 71: Slide 71

72. Slide 72: San Julián District

    WHY SAN JULIÁN? 9 • Convert resources into reserves • Successful gold-silver vein exploration • 3 DOB (Disseminated Ore Body) silver type targets to be explored • Follow-up ground geophysics and mapping in process SAN JULIÁN DISTRICT

73. Slide 73: San Julián District New Vein Discoveries

    SAN JULIÁN DISTRICT 10 San Julián District new vein discoveries KEY T-IGA Ignimbrite R-MAS Massive Rhyolite TL Felsic Tuff D-RdFL Rhyodacite DAC Tuffs and Dacite Vein Fault Diamond drill

74. Slide 74: San Julián District Resistivity Maps, Versatem Airborne Technology

    SAN JULIÁN DISTRICT, RESISTIVITY MAPS, LATEST VERSATEM AIRBORNE TECHNOLOGY 11

75. Slide 75: Slide 75

76. Slide 76: La Herradura, Sonora

    13 • Exploration along gold mineralised regional faults • Potential open at depth LA HERRADURA, SONORA

77. Slide 77: Herradura Mine, Sonora

    HERRADURA MINE, SONORA 14 • Mine exploration in depth extension • Geotechnical study in process Ore Zones • Grade and stripping sensitive • Cost alternatives, feasibility study • Exploration in district

78. Slide 78: Guanajuato District, Mexico

    GUANAJUATO DISTRICT, MEXICO 15 GUANAJUATO NORTH 1. Gigante 2. La Fragua 3. Sabino 4. Veta Madre N 5. La Luz 6. Opulencia 7. Nevada GUANAJUATO CENTER 8. Desquite-San Cosme 9. Desquite SE 10. San Gregorio 11. Cebolletas 12. Villalpando 13. Mesa Paredes 14. Nayal 15. Apolo 16. Gloria-Hallazgo 17. Falla

79. Slide 79: Operational Flotation Plant; Reopening Veta Madre Reserves

    16 • Operational flotation plant • Reopening mine reserves on the Veta Madre vein

80. Slide 80: Guanajuato – Gigante

    17 • 4 new veins discovered • Drilling in process GUANAJUATO - GIGANTE

81. Slide 81: Cerro Blanco and Naranjillo

    18 • High grade discovered in deep shoots CERRO BLANCO AND NARANJILLO

82. Slide 82: Tajitos, Sonora

    19 • Possible satellite mine for Noche Buena TAJITOS, SONORA

83. Slide 83: Tajitos, Sonora

    20 TAJITOS, SONORA Oz Au Cut Off 20.25 g/t Au (g/t) U

84. Slide 84: Peru Mineralised Trends, Mines, and Fresnillo Projects

    PERÚ MINERALISED TRENDS, MINES, AND FRESNILLO PROJECTS 21 Mineralised trends, mines, and Fresnillo projects Mineralised trend Gold mine Silver mine Fresnillo project 2020 Fresnillo mining claims City

85. Slide 85: Santo Domingo District, Peru

    WHY SANTO DOMINGO IN PERU ? 22 • Large gold – silver potential • Unexplored, claims controlled by Fresnillo plc • Some community and permitting advance SANTO DOMINGO DISTRICT, PERU

86. Slide 86: Santo Domingo District, Peru

    Santo Domingo District, Peru Multiple gold – silver targets on Fresnillo plc claims

87. Slide 87: Condoriaco, Chile

    24 • Exploring a consolidated gold – silver district • 15 veins in drilling with interesting results CONDORIACO, CHILE

88. Slide 88: Slide 88

89. Slide 89: Break

    BREAK LSE: FRES BMV: FRES www.fresnilloplc.com

90. Slide 90: Costs

    1 COSTS

91. Slide 91: Income Statement Excerpt (IFRS)

    INCOME STATEMENT EXCERPT (IFRS) 2 ACCUM JUNE CHANGE CONCEP T 2019 % 2018 % $ % ADJUSTED REVENUES 1,069.0 1,189.9 (120.9) (10.2) HEDGING (METALS) 0.1 0.0 0.1 N/A TREATMENT AND REFINING CHARGES (67.1) (74.8) 7.8 10.4 REVENUES 1,002.0 100.0 1,115.0 100.0 (113.1) (10.1) ADJUSTED PRODUCTION COST (566.4)

92. Slide 92: Consolidated Cost Inflation 1H19

    CONSOLIDATED COST INFLATION 1H19 (USD BASED) 3 CONSOLIDATED Unit price increase % Weight (*) Weighted average LABOUR: UNIONIZED 6.7% 5.8% 0.4% PERSONNEL EMPLOYEES 4.7% 2.7% 0.1% WEIGHTED 6.0% OPERATING 2.0% 20.9% 0.4% MATERIALS ENERGY: ELECTRIC ENERGY 3.3% 6.3% 0.2% DIESEL 11.3% 11.5% 1.3% GASOLINE

93. Slide 93: Adjusted Production Cost Analysis (Consolidated)

    ADJUSTED PRODUCTION COST ANALYSIS (CONSOLIDATED) 4 CHANGE 1H 19 1H 18 $ % Adjusted Production Cost 566.4 429.9 136.5 31.7 Change in inventories and others -14.7 -21.7 -7.0 -32.3 Depreciation 240.5 192.8 47.6 24.7 PTU 5.9 11.8 -5.9 -49.7 Cost of Sales 798.1 612.9 185.2 30.2% USD MILLION 160.0 * 17.23

94. Slide 94: Cost per Tonne

    COST PER TONNE 5 (USD/MT.) 1H 2019 vs 1H 2018 * * DOB = Disseminated Ore Body

95. Slide 95: Cash Cost by Product

    CASH COST BY - PRODUCT 6 SILVER MINES GOLD MINES 1H 2019 vs 1H 2018

96. Slide 96: All in Sustaining Cost by Product

    ALL IN SUSTAINING COST BY - PRODUCT 7 1H 2019 vs 1H 2018 SILVER MINES GOLD MINES

97. Slide 97: Fresnillo

    Fresnillo 8 COST PER TONNE CASH COST ALL IN SUSTAINING COSTS (US$/Ton.) (US$ per silver ounce) (US$ per silver ounce) USD 68.0 4.0 14.0 58.87 3.12 12.46 61.2 3.5 12.6 +25.5% 54.4 3.0 11.2 46.92 47.6 2.5 9.8 +83.4% 40.8 2.0 8.4 6.79 34.0 1.5 7.0 27.2 1.0 5.6 20.4 0.5 -0.82 4.2 13.6 0.0 2.8 6.8 (0.5)

98. Slide 98: Saucito

    Saucito 9 COST PER TONNE CASH COST ALL IN SUSTAINING COSTS (US$/Ton.) (US$ per silver ounce) (US$ per silver ounce) USD 72.0 2.7 11.0 65.96 2.36 10.02 64.8 2.4 9.9 +23.2% 57.6 53.56 2.2 8.8 7.88 +27.2% 50.4 1.9 7.7 43.2 1.6 6.6 1.25 +88.6% 36.0 1.4 5.5 28.8 1.1 4.4 21.6 0.8 3.3 14.4 0.5 2.2 7.2 0.3

99. Slide 99: Ciénega

    Ciénega 10 COST PER TONNE CASH COST ALL IN SUSTAINING COSTS (US$/Ton.) (US$ per gold ounce) (US$ per gold ounce) USD 87.0 210.0 1,700.0 79.46 176.85 1,533.84 78.3 189.0 1,530.0 68.39 +16.2% 168.0 69.6 1,360.0 1,198.16 +28.0% 60.9 147.0 1,190.0 52.2 126.0 1,020.0 105.0 43.5 850.0 84.0 34.8 680.0 63.0

100. Slide 100: San Julián DOB

     San Julián DOB 11 COST PER TONNE CASH COST ALL IN SUSTAINING COSTS (US$/Ton.) (US$ per silver ounce) (US$ per silver ounce) USD 42.0 6.8 11.0 38.98 6.03 9.50 9.49 37.8 6.1 9.9 34.50 +13.0% 5.18 +16.4% 33.6 5.4 8.8 29.4 4.8 7.7 25.2 4.1 6.6 21.0 3.4 5.5 16.8 2.7 4.4 12.6 2.0 3.3 8.4 1.4 2.2 4.2 0.7 1

101. Slide 101: San Julián Veins

     San Julián Veins 12 COST PER TONNE CASH COST ALL IN SUSTAINING COSTS (US$/Ton.) (US$ per silver ounce) (US$ per silver ounce) USD 70.0 12.0 66.54 0.58 10.85 63.0 0.6 10.8 58.24 +14.3% 0.0 -4.45 56.0 9.6 49.0 (0.6) 8.4 (1.2) +121.7% 42.0 7.2 35.0 (1.8) 6.0 28.0 (2.4) 4.89 4.8 21.0 (3.0) 3.6 14.0 (3.6

102. Slide 102: Herradura

     Herradura 13 COST PER TONNE CASH COST ALL IN SUSTAINING COSTS (US$/Ton.) (US$ per gold ounce) (US$ per gold ounce) USD 20.0 830.0 1,000.0 18.02 770.28 925.37 18.0 747.0 900.0 +75.8% 664.0 +29.3% 16.0 800.0 715.92 14.0 581.0 700.0 +111.1% 12.0 498.0 600.0 10.25 10.0 415.0 500.0 364.85 8.0 332.0 400.0

103. Slide 103: Noche Buena

     Noche Buena 14 COST PER TONNE CASH COST ALL IN SUSTAINING COSTS (US$/Ton.) (US$ per gold ounce) (US$ per gold ounce) USD 10.0 880.0 1,200.0 9.32 772.79 +6.4% 821.91 9.0 792.0 1,080.0 1,051.80 +38.4% 704.0 -13.8% 906.56 8.0 960.0 7.0 6.74 616.0 840.0 6.0 528.0 720.0 5.0 440.0 600.0 4.0 352.0 480.0 3.

104. Slide 104: Consolidated AISC (1H 2019 vs 1H 2018)

     CONSOLIDATED AISC (1H 2019 VS 1H 2018) 15 CONSOLIDATED BY METAL SILVER MINES GOLD MINES 1H 2019 1H 2018 1H 2019 1H 2018 Silver / Gold AISC (USD/Oz) 10.71 7.45 973.9 839.9 Silver (Moz) / Gold (Koz) Volume Sold 20.69 23.03 327.1 360.7 CONSOLIDATED IN EQUIVALENT SILVER OUNCES OR GOLD OUNCES PER OZ. SIL

105. Slide 105: Social & Environmental Performance

     1 SOCIAL & ENVIRONMENTAL PERFORMANCE

106. Slide 106: Our Approach to Sustainability and Social Contribution

     SOCIAL & ENVIRONMENTAL PERFORMANCE 2 OUR APPROACH TO SUSTAINABILITY AND SOCIAL CONTRIBUTION We believe that responsible mining is compatible with high stakeholder expectations in terms of ethical, social and environmental performance, and recognise that our social licence to operate is dependent upo

107. Slide 107: Community Engagement: Social Investment Portfolio

     SOCIAL & ENVIRONMENTAL PERFORMANCE 3 COMMUNITY ENGAGEMENT PURPOSEFUL ENGAGEMENT WITH OUR COMMUNITIES SOCIAL INVESTMENT PORTFOLIO Create long-term value with our communities Education: Health and Capacity Water: Foster social cohesion Sports: Building: Working with and develop reading Develop communi

108. Slide 108: Picando Letras and First Robotics

     SOCIAL & ENVIRONMENTAL PERFORMANCE 4 COMMUNITY ENGAGEMENT PICANDO LETRAS “MINING LETTERS” Purpose: To promote the inclusion of all Schools Kids Teachers Parents Communities social actors through reading and dialogue 75 8756 215 143 34 in elementary schools Coverage: All mining districts and developm

109. Slide 109: Health & Sports, Capacity Building

     SOCIAL & ENVIRONMENTAL PERFORMANCE 5 COMMUNITY ENGAGEMENT HEALTH & SPORTS CAPACITY BUILDING In partnership with the National We provide training and follow- University Foundation, we up for Small and medium-sized organise Health Weeks benefiting enterprises (SMEs) and close to 8,000 people every yea

110. Slide 110: Rainwater Harvesting Systems – San Julián

     SOCIAL & ENVIRONMENTAL PERFORMANCE 6 COMMUNITY ENGAGEMENT RAINWATER HARVESTING SYSTEMS – SAN JULIÁN Capacity building and support for the construction of 315 water harvesting systems as part of our shared benefits of the indigenous consultation of the San Julian Water Reservoir. The project benefite

111. Slide 111: Water Stewardship: Our Approach

     SOCIAL & ENVIRONMENTAL PERFORMANCE 7 WATER STEWARDSHIP OUR APPROACH Thickeners Geosynthetic to prevent seepage from a Efficiency and Pollution Tailings Storage Facility reuse prevention Rainwater harvesting systems Watershed & Transparency Community engagement & Accountability

112. Slide 112: Efficiency and Reuse – Closed-Circuit Processes & Wastewater

     SOCIAL & ENVIRONMENTAL PERFORMANCE 8 WATER STEWARDSHIP EFFICIENCY AND REUSE – CLOSED-CIRCUIT PROCESSES & WASTEWATER Municipal Wastewater is treated to be reused for mineral processing in our Fresnillo District. Wastewater from our camps is also recycled and reused 1.3 million m3 were recycled in 201

113. Slide 113: Pollution Prevention – Collaboration with Stakeholders

     SOCIAL & ENVIRONMENTAL PERFORMANCE 9 WATER STEWARDSHIP POLLUTION PREVENTION – COLLABORATION WITH OUR STAKEHOLDERS Geosynthetic to prevent seepage from a Reclaimed TSF. Now a Tailings Storage Facility (TSF) at “La Park at Fresnillo Herradura” Water quality monitoring Tailings technologies

114. Slide 114: Pollution Prevention – Collaboration with Stakeholders

     SOCIAL & ENVIRONMENTAL PERFORMANCE 10 WATER STEWARDSHIP POLLUTION PREVENTION – COLLABORATION WITH OUR STAKEHOLDERS Adoption of an international Water Accounting Framework to make comparisons with peers and across our own operations easier. Reporting to the CDP the performance and water related risks

115. Slide 115: Watershed and Community Engagement

     SOCIAL & ENVIRONMENTAL PERFORMANCE 11 WATER STEWARDSHIP WATERSHED AND COMMUNITY ENGAGEMENT Free, Prior and Informed Consent of the Raramuri People for the construction of a water dam for the San Julian Mine Consultation and agreements Kids building dams Community visiting the water dam during constr

116. Slide 116: Biodiversity: Relocation of Species for San Julián Water Reservoir

     SOCIAL & ENVIRONMENTAL PERFORMANCE 12 BIODIVERSITY RELOCATION OF SPECIES FOR THE SAN JULIAN WATER RESERVOIR Capture and release of a rattlesnakes Relocation of Sahuaros – Penmont Plant nursery – La Ciénega Deer registration in the Project area Frog relocation from the San Julián by means of phototra

117. Slide 117: Energy & Carbon Performance

     SOCIAL & ENVIRONMENTAL PERFORMANCE 13 ENERGY & CARBON PERFORMANCE DECOUPLING GHG EMISSIONS FROM ENERGY CONSUMPTION ENERGY GHG EMISSIONS 4,000 GWHE Scope 1 Scope 2 1,200 Scope 1 Scope 2 KT OF CO2E 3,000 1,000 853 951 800 2,000 706 458.85 462.98 286.70 600 400 1,000 1,761 1,913 2,043 530.38 200 476.42

118. Slide 118: Decarbonisation of Electricity Footprint and Truck Fleet

     SOCIAL & ENVIRONMENTAL PERFORMANCE 14 ENERGY & CARBON PERFORMANCE DECARBONISATION OF OUR ELECTRICITY FOOTPRINT AND TRUCK FLEET ELECTRICITY SUPPLY SOURCES OF ELECTRICITY SUPPLY 1,200,000 Greenhouse gas emissions Other avoided in 2019 (Q3): 1,000,000 800,000 Sources (National MWh 600,000 Grid, TEP), 2

119. Slide 119: Ethics & Integrity Performance

     SOCIAL & ENVIRONMENTAL PERFORMANCE 15 ETHICS & INTEGRITY PERFORMANCE Fresnillo plc is at the top of Corporate Integrity Ranking among the 500 largest companies (Mexicans against corruption and impunity) (national and international) operating in Mexico. This prestigious ranking is organized by the tw

120. Slide 120: Consolidated Outlook

     1 CONSOLIDATED OUTLOOK

121. Slide 121: Consolidated Outlook

     CONSOLIDATED OUTLOOK 2 1 2 Expected Avg. Investment (US$ YEAR million) Annual 2018 2019 2020 2021 2022 2023 2024 Production PROJECT LEACHING 3.5 moz Ag & 13 PYRITES PLANT PLANT 155 koz Au PRODUCTION (Optimization project) CONSTRUCTION TAILINGS FLOTATION 4 FRESNILLO BASE 30 3 moz Ag DEVELOPMENT & CON

122. Slide 122: Expected Attributable Production Profile

     CONSOLIDATED OUTLOOK 3 EXPECTED ATTRIBUTABLE PRODUCTION PROFILE 1 1 Million Oz Silver Thousand Oz Gold 80 1,000 800 60 600 40 400 20 200 0 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Thousand Tons Thousand Tons Zinc Lead 120 70 60 100 50 80 40 60 30 20 40 10 20 0 0 2018 2019 2020 2021 2022 2

123. Slide 123: Capex Spend Expectations

     CONSOLIDATED OUTLOOK 4 CAPEX SPEND EXPECTATIONS 2019 US$ Million Million Usd 900 Sustaining (Operations) 800 Fresnillo 110 M 700 670.0 670.0 Saucito 106 M Ciénega 71 M 585.0 600 San Julián 78 M 500 475.0 Herradura 46 M 415.0 Noche Buena 9 M 400 Others 2 M 300 Projects Approved 200 Juanicipio 88 M 10

124. Slide 124: Conclusion: Focus on Operational Delivery

     CONCLUSION 5 FOCUS ON OPERATIONAL DELIVERY Safety to remain at the heart of everything we do A committed management team dedicated to unlocking the full potential of our current operations Focus on reducing cost and capturing efficiencies The safe, efficient delivery of growth projects to drive long

Fresnillo — Investor Day (December 2019) on 6ix