Fresnillo Plc · LSE:FRES
Fresnillo — Denver Gold Forum 2011
15 slides from Fresnillo's conference presentation, Sep 19, 2011
Slide 1: Denver Gold Forum
Denver Gold Forum Jaime Lomelín, CEO Fresnillo plc 19 September, 2011
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: H1 2011 Operational Highlights
H1 2011 Operational Highlights • Record half year silver production of 21.5 million oz, (including the Silverstream), up 2.6% • Record half year attributable gold production of 206,477 oz, up 17.1% • On track to achieve full year production targets of 44moz of silver (including 3.0 million oz from t
Slide 4: H1 2011 Financial Highlights
H1 2011 Financial Highlights • Average realised silver price US$35.74 per oz, up 99.3% • Average realised gold price US$1,462.31 per oz, up 24.8% • Adjusted Revenue[1] of US$1,114.1m, up 75.1% • Gross Profit of US$774.6m, up 91.8% • EBITDA[2] up 92.0% to US$757.0m, margins increased to 71.6% from 65
Slide 5: Operations Review
Operations Review Denver Gold Forum 19 September, 2011
Slide 6: Operation Review – Fresnillo District
Operation Review – Fresnillo District FRESNILLO SAUCITO H1 2011 H1 2010 Change % H1 2011 H1 2010* Change % Attributable production Silver m oz 16.9 17.8 (1.0) (5.4) 1.9 0.5 1.5 N/M Gold k oz 12.5 11.5 1.0 8.7 9.1 2.0 7.1 N/M Lead kt 6.7 5.8 0.9 15.5 0.6 0.1 0.5 N/M Zinc kt 6.6 6.0 0.6 9.4 0.3 0.0 0.
Slide 7: Operation Review – Ciénega District
Operation Review – Ciénega District CIÉNEGA H1 2011 H1 2010 Change % Attributable production Gold k oz 53.4 55.8 (2.4) (4.3) Silver m oz 0.6 0.7 (0.1) (14.8) Adjusted Revenue Adj Revenue US$ m 108.0 84.6 23.4 27.6 Contribution % 9.7 13.3 Costs Cost per tonne US$/t 70.1 60.8 9.3 15.2 Cost per AU oz U
Slide 8: Operation Review – Herradura District
Operation Review – Herradura District HERRADURA SOLEDAD-DIPOLOS H1 2011 H1 2010 Change % H1 2011 H1 2010 Change % Attributable production Gold k oz 88.2 79.6 8.7 10.9 43.3 27.5 15.7 57.2 Silver m oz 0.1 0.1 0.0 16.4 0.0 0.0 0.0 N/M Adjusted Revenue Adj Revenue US$ m 231.6 167.6 64.0 38.2 111.4 57.5
Slide 9: Estimated project delivery programme
Estimated project delivery programme On track to produce 65m oz of silver and over 400k oz of gold by 2018 Project 2011 2012 2013 2014 2015 2016 Nochebuena Construction Production Herradura Feasibility Construction Production Leaching Pre - San Julián Feasibility Construction Production Feasibility
Slide 10: Exploration
Exploration Denver Gold Forum 19 September, 2011
Slide 11: Exploration (1H 2011)
Exploration (1H 2011) • Investment in exploration US$ 83.9 million • 44 drill rigs advanced 226,500 m • Good drilling results: – Herradura District: Centauro Deep and Noche Buena – Fresnillo District: Infill drilling at Minera Juanicipio – Ciénega District: San Ramón veins – San Julián Project: Shal
Slide 12: Exploration
Exploration Fresnillo plc mines HERRADURA DISTRICT Development projects Advanced exploration projects Prospects in drilling 1H11 SAN JULIAN Prospects at an early stage PROJECT CIENEGA DISTRICT FRESNILLO DISTRICT GUANAJUATO PROJECT PERU Denver Gold Forum 19 September, 2011 12
Slide 13: Exploration
Exploration Exploration Fresnillo Budget Herradura Mine Operations Ciénega 17% Soledad-Dipolos Saucito I Nochebuena Development Projects 16% San Ramón Saucito II San Julián Centauro Deep Juanicipio Advanced Exploration Orisyvo Las Casas 48% Corredor Fresnillo Guanajuato Manzanillas Lucerito Prospect
Slide 14: Conclusion
Conclusion Denver Gold Forum 19 September, 2011
Slide 15: Outlook
Outlook • Volatile metal prices set to continue • Focus on safety, increasing productivity, containing costs, expanding the resource and reserve base, and strengthening our growth pipeline • Looking ahead in 2011: – Silver production to grow to 42-44moz per year – Gold production to grow by 8% to 40