Fresnillo Plc · LSE:FRES
Fresnillo — Merger or Acquisition (September 2014)
11 slides from Fresnillo's merger presentation, Sep 12, 2014
Slide 1: Acquisition of 44% Interest in Penmont JV
“Looking beyond the cycle” Acquisition of 44% Interest in Penmont JV September 12, 2014 Octavio Alvídrez, CEO Fresnillo plc LSE: FRES BMV: FRES www.fresnilloplc.com
Slide 2: Disclaimer
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”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “int
Slide 3: Acquisition Summary
Acquisition Summary • Binding agreement signed to acquire Newmont Mining’s 44% interest in the Penmont Joint Proposed Venture Acquisition • Fresnillo currently holds 56% interest in JV and would hold 100% post completion • Consolidates control of producing and exploration assets already operated by
Slide 4: Strategic Rationale
Strategic Rationale Full control of the Penmont assets enables Fresnillo to maximize the value of current producing mines, develop quality assets in a key growth area and continue aggressive regional exploration programme Fresnillo has both extensive experience of operating in the Herradura Corridor
Slide 5: Herradura Resources and Reserves
Herradura Resources and Reserves Design 1250USD Resources Valles Herradura Cut-Off Grade: 0.30 gpt Au Eq. Grade Content in situ Resource Category Tonnage, (Mt) Au (gpt) Ag (gpt) Au (Moz) Ag (Moz) Ocotillo Measured 103.77 0.72 1 2.41 3.34 Indicated 99.17 0.70 1 2.23 3.19 Measured & Indicated 202.94 0
Slide 6: Noche Buena Resources and Reserves
Noche Buena Resources and Reserves Noche Buena Design 1250USD Noche Buena East Fresnillo PLC Penmont 500 m Design 1450USD Location of Resources and Reserves Dec/2013 Noche Buena Resources Reserves (Included in Resources) Noche Buena Cut-Off Grade: 0.30 gpt Au Eq. Grade Content in situ Noche Buena Re
Slide 7: Two Advanced Exploration Projects
Two Advanced Exploration Projects Mega Centauro Centauro Deep - Extension of the Centauro main pit at the Herradura mine - Underground expansion of Centauro pit at Herradura - Expected annual production of 200koz of gold - Indicated and Inferred resources at 56% ownership of 2.17 - Upon Board approv
Slide 8: Exploration Upside
Exploration Upside Sonoyta El Buro S. Fernando Elena Paraiso Carina 25 Km San Javier Sierra Pinta Las Norias Dip- PUERTO PEÑASCO Nogales Soledad Tajitos Las Flores San Manuel La Herradura N. Buena Noche Buena E Chanate SE El Chanate Bella Vista High potential, San Pedro Sur similar to El EXPLANATION
Slide 9: Production Profile
Production Profile Ongoing Business + Mega Centauro + Centauro Deep Thousand Oz Au 1,000 950 900 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (1) (2) Ongoing Business Dynamic Leaching Mega Centauro Centauro Deep (1) Herradura,
Slide 10: Conclusion
Conclusion Assuming full control of the Penmont JV would allow us to: Consolidate control of quality assets that we already operate, in a region where we have a strong track record, with significant geological potential Increase our 2018 gold production target from 500koz to 750 koz Add 2.0 million
Slide 11: Questions and Answers
“Looking beyond the cycle” Questions and Answers