TIDMFRES
RNS Number : 1140E
Fresnillo PLC
26 October 2022
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
26 October 2022
THIRD QUARTER PRODUCTION REPORT
FOR THE THREE MONTHSED 30 SEPTEMBER 2022
Octavio Alvídrez, Chief Executive Officer, said:
"We have delivered a solid quarter of production, with continued
improvement in volumes at both Fresnillo and Saucito particular
positives, albeit this was partially offset with the lower ore
throughput and expected grade variability at San Julián
Disseminated Ore Body. Recruitment and training campaigns are
on-going in what remains a very tight labour market in Mexico,
which, alongside industry wide supply bottlenecks, is making for a
challenging operating environment. Nonetheless, we are confident in
the overall performance of the business and our full year
production guidance remains unchanged.
"I am pleased to confirm the additional testing required by the
state energy regulator ahead of final tie-in to the grid at
Juanicipio is on track. We expect to complete that process and
achieve tie-in by the end of October with commissioning and ramp up
thereafter. At full operating capacity our new mine will produce
nearly 12 million ounces of silver a year, making a considerable
contribution to our overall silver production.
"Our focus in the final quarter is to achieve our 2022 targets,
continue to drive volumes in the Fresnillo District, and deliver a
rapid ramp up of our new Juanicipio mine, while always prioritising
the safety and wellbeing of our people."
TOTAL PRODUCTION
HIGHLIGHTS
Silver
-- Quarterly attributable silver production of 13.6 moz
(including Silverstream), decreased 5.4% vs. 2Q22 mainly driven by
the expected lower ore grade and decreased volume of ore processed
at San Julián Disseminated Ore Body (DOB).
-- Quarterly attributable silver production (including
Silverstream) increased 7.4% vs. 3Q21 due to the higher
contribution from Juanicipio, higher ore processed and ore grade at
Fresnillo and higher ore grade at Saucito. This was partly offset
by the expected lower ore grade and decreased volume of ore
processed at San Julián DOB.
-- Year to date attributable silver production of 41.2 moz
(including Silverstream) increased 2.6% vs YTD 21 mainly driven by
the increased contribution of ore from Juanicipio, partially offset
by the lower ore grade at San Julián DOB.
Gold
-- Quarterly attributable gold production of 159.2 koz remained
flat vs. 2Q22, as a result of the expected lower ore grade and
decrease in ore processed at Noche Buena and lower ore grade at
Fresnillo, offset by a higher ore grade and increased ore processed
at Saucito and Herradura.
-- Quarterly attributable gold production decreased 7.7% vs.
3Q21mainly due to a lower recovery rate as higher volumes of
sulphide ore are processed and lower ore grade at Herradura, and a
decrease in volume of ore processed and lower ore grade at Noche
Buena and Ciénega. These factors were partly mitigated by the
higher ore grade at Saucito.
-- Year to date attributable gold production of 468.0 koz, down
22.1% vs. YTD 21 primarily due to a decrease in the recovery rate,
lower ore grade and decreased ore processed at Herradura, and a
lower volume of ore processed and ore grade at Saucito and
Ciénega.
By-Products
-- Quarterly attributable by-product lead and zinc production
decreased 7.7% and 4.7% vs. 2Q22 respectively, mainly driven by a
decreased ore processed, lower ore grade and recovery rate at San
Julián DOB and lower ore grade at Saucito.
-- Quarterly attributable by-product lead and zinc production
increased 3.1% and 11.5% vs. 3Q21 respectively, mainly due to a
higher volume of ore processed at Fresnillo and the increased
contribution at Juanicipio, partly offset by decreased volumes of
ore processed and lower ore grades at San Julián DOB and lower ore
grades at Saucito.
-- Year to date attributable by-product lead production
decreased 10.2% vs. YTD 21 primarily due to a decreased volume of
ore processed and lower ore grade at Saucito and a lower ore grade
at San Julián DOB, partially mitigated by the contribution from
Juanicipio.
YTD YTD
3Q22 2Q22 % Change 3Q21 % Change 22 21 % Change
Silver (koz) 12,787 13,664 (6.4) 11,800 8.4 38,980 37,730 3.3
-------- -------- --------- -------- --------- -------- -------- ---------
Silverstream
(koz) 799 692 15.5 851 (6.1) 2,238 2,451 (8.7)
-------- -------- --------- -------- --------- -------- -------- ---------
Total Silver
(koz) 13,586 14,356 (5.4) 12,651 7.4 41,218 40,181 2.6
-------- -------- --------- -------- --------- -------- -------- ---------
Gold (oz) 159,205 158,960 0.2 172,534 (7.7) 467,957 600,890 (22.1)
-------- -------- --------- -------- --------- -------- -------- ---------
Lead (t) 13,415 14,535 (7.7) 13,010 3.1 40,194 44,736 (10.2)
-------- -------- --------- -------- --------- -------- -------- ---------
Zinc (t) 25,560 26,808 (4.7) 22,930 11.5 76,093 76,498 (0.5)
-------- -------- --------- -------- --------- -------- -------- ---------
DEVELOPMENT PROJECTS
As reported in September, all construction activities related to
final tie-in to the electrical grid at Juanicipio and Pyrites Plant
at Fresnillo were completed. However, the state-owned electricity
regulator, CFE (Comisión Federal de Electricidad), requested
additional testing to verify compatibility between new and updated
substation equipment installed by Juanicipio and existing older CFE
infrastructure before the final tie-in to the electrical grid.
The additional testing is on track, and we expect to complete
this process and achieve tie-in by the end of October, with
commissioning and ramp up thereafter. We now expect to reach c.60%
capacity by the end of the year, lower than our earlier guidance,
given this unexpected delay to final tie-in. However, our 2023
expectations for Juanicipio are unchanged.
As we have been prioritising the process at Juanicipio, the
timetable for the tie in of the Pyrites plant to the national
electricity grid has been extended by a few weeks. We will update
the market in due course on achieving this milestone.
SAFETY PERFORMANCE
We continue to roll out our 'I Care, We Care' programme across
the business and to focus on reporting, investigating and learning
from our high potential incidents. Safety performance in the period
was excellent, but we are determined to continually improve our
health and safety measures. We will continue working toward
identifying preventive and mitigating controls and training our
workforce to achieve this goal.
OPERATING ENVIRONMENT
As communicated in previous reports, the labour reform in Mexico
which restricts subcontracting of labour came into effect from
September 2021. This resulted in the requirement to internalise a
proportion of our contractor workforce. Contractor uptake varied
across the Group, resulting in staff vacancies and lower equipment
availability at our underground mines. Recruitment and training
campaigns continue, albeit at a slightly slower pace than initially
anticipated as a result of the tight labour market in Mexico. We
expect to complete the staffing process in the Fresnillo District,
San Julián and Ci é nega by year end, though we do not expect this
to have any material impact on our guidance.
2022 OUTLOOK
We remain on track to meet our 2022 full year guidance of 50.5
to 56.5 moz of attributable silver (including Silverstream) and 600
to 650 koz of attributable gold production.
For further information, please visit our website
www.fresnilloplc.com or contact:
FRESNILLO PLC Tel: +44 (0)20 7399 2470
London Office
Gabriela Mayor, Head of Investor
Relations
Mexico City Office Tel: +52 55 52 79 3206
Ana Belem Zárate
POWERSCOURT Tel: +44 (0)7793 858 211
Peter Ogden
MINING OPERATIONS
FRESNILLO MINE PRODUCTION
YTD YTD
3Q22 2Q22 % Change 3Q21 % Change 22 21 % Change
Ore Processed
(t) 643,945 618,860 4.1 547,140 17.7 1,838,304 1,688,363 8.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,394 3,595 (5.6) 2,722 24.7 10,004 9,331 7.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 7,970 9,668 (17.6) 7,983 (0.2) 26,118 25,095 4.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 5,715 5,644 1.3 4,904 16.5 16,147 14,271 13.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 12,107 10,758 (12.5) 8,958 35.2 32,246 24,504 31.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 181 197 (8.1) 170 6.5 186 191 (2.6)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.54 0.69 (21.7) 0.62 (12.9) 0.62 0.67 (7.5)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 1.05 1.10 (4.5) 1.07 (1.9) 1.05 1.00 5.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 2.45 2.46 (0.4) 2.27 7.9 2.38 2.05 16.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production decreased 5.6% vs. 2Q22 mainly due
to lower ore grades and narrower veins in the East area of the
mine.
Quarterly silver production increased 24.7% vs. 3Q21 driven by
the increase in volume of ore processed and higher ore grade in
3Q22 as operating restrictions that affected ore throughput in
2021were addressed: i) a short circuit of a main power line, which
limited the water pumping capacity thereby affecting access to some
mining areas and haulage levels, and ii) the temporary suspension
of certain areas of the mine for safety review.
Year to date silver production increased 7.2% vs. YTD 21 due to
higher volume of ore processed driven by the factors mentioned
above, partially offset by the lower ore grade.
Mine development improved quarter on quarter averaging 3,030 m
per month in 3Q22 (2Q22: 2,900m per month), with the YTD rate
averaging c. 2,930 m per month. We remain confident that we can
continue making progress towards the upper end of our 2,900 to
3,100 forecast range in the year.
Quarterly by-product gold production decreased 17.6% vs. 2Q22
driven by the lower ore grade.
Year to date by-product gold production increased 4.1% vs. YTD
21 due to a higher volume of ore processed partially offset by the
lower ore grade.
The silver ore grade in 2022 is expected to be in the lower end
of the range of 190-210 g/t, while gold ore grade is expected to
remain in the range of 0.55-0.70 g/t.
SAUCITO MINE PRODUCTION
YTD YTD
3Q22 2Q22 % Change 3Q21 % Change 22 21 % Change
Ore Processed (t) 556,199 512,739 8.5 565,425 (1.6) 1,564,357 1,876,348 (16.6)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,171 3,043 4.2 2,846 11.4 8,952 9,448 (5,2)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 22,249 16,785 32.6 19,143 16.2 55,422 70,721 (21.6)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 4,513 5,180 (12.9) 4,853 (7.0) 13,958 20,344 (31.4)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 6,882 8,367 (17.7) 7,226 (4.7) 22,547 30,797 (26.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 199 205 (2.9) 178 11.8 199 182 9.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.58 1.31 20.6 1.36 16.2 1.40 1.51 (7.3)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.96 1.19 (19.3) 1.01 (5.0) 1.04 1.27 (18.1)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 1.64 2.12 (22.6) 1.69 (3.0) 1.85 2.22 (16.7)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production increased 4.2% vs. 2Q22 mainly due
to a higher volume of ore processed as we continue to improve mine
logistics and normalise operations in areas previously impacted by
the localised seismicity reported in previous quarters.
Quarterly silver production increased 11.4% vs. 3Q21 mainly due
to the higher ore grade resulting from improvements to the short
term mine planning process and the regained access to certain areas
of the mine with higher ore grades.
Year to date silver production decreased 5.2% vs. YTD 21 due to
the lower volume of ore processed mainly driven by the residual
impact of the labour reform, which delayed preparation of the mine
due to the decreased equipment availability and shortage of
qualified personnel. However, the aforementioned factors were
partially mitigated by a higher ore grade resulting from improved
short term planning and access to higher grade zones.
We continue to expect some variability in the ore grade and
volumes of ore processed in 4Q22 driven by the need for additional
development of the mine in order to recapture operational
flexibility following high levels of localised seismicity and
shortages of personnel reported last year.
Quarterly by-product gold production increased 32.6% vs. 2Q22
driven by the higher ore grade and higher volume of ore
processed.
Quarterly by-product gold production increased 16.2% vs. 3Q21
mainly due to higher ore grade.
Year to date by-product gold production decreased 21.6% vs. YTD
21, due to a lower volume of ore processed and a lower ore
grade.
Full year 2022 silver ore grade is expected to remain between
175-195 g/t, while the gold ore grade is estimated to
remain around 1.10-1.20 g/t.
PYRITES PLANT (PHASE I)
YTD YTD
3Q22 2Q22 % Change 3Q21 % Change 22 21 % Change
Pyrite Concentrates
Processed (t) 37,142 33,326 11.5 37,376 (0.6) 102,832 127,659 (19.4)
------- ------- --------- ------- --------- -------- -------- ---------
Production
------- ------- --------- ------- --------- -------- -------- ---------
Silver (koz) 142 126 12.7 143 (0.7) 418 446 (6.3)
------- ------- --------- ------- --------- -------- -------- ---------
Gold (oz) 653 422 54.7 441 48.1 1,585 1,840 (13.9)
------- ------- --------- ------- --------- -------- -------- ---------
Ore Grades
------- ------- --------- ------- --------- -------- -------- ---------
Silver (g/t) 159 160 (0.6) 157 1.3 170 149 14.1
------- ------- --------- ------- --------- -------- -------- ---------
Gold (g/t) 1.71 1.21 41.3 1.35 26.7 1.51 1.53 (1.3)
------- ------- --------- ------- --------- -------- -------- ---------
Quarterly silver production increased 12.7% vs. 2Q22 due to a
higher volume of pyrites concentrates processed.
Quarterly gold production increased 54.7% vs. 2Q22 due to a
higher ore grade and increased volume of pyrites concentrates
processed.
Quarterly gold production increased 48.1% vs. 3Q21 due to a
higher ore grade.
Year to date silver and gold production decreased 6.3% and 13.9%
vs. YTD 21 respectively, mainly due to a decrease in the volume of
pyrite concentrates processed from Saucito's flotation plant.
We anticipate silver production from the Pyrites plant at
Saucito to be in the range of 550 to 600 koz, reflecting the lower
volumes processed (previously 700 to 750 koz), while gold
production is estimated to remain in the range of 1.5 to 2.5
koz.
The tie in of the Pyrites plant to the national electricity grid
has been delayed a few weeks as we are prioritising the process at
Juanicipio. Nonetheless, we will continue working toward achieving
this milestone and will update the market in due course.
CIENEGA MINE PRODUCTION
YTD YTD
3Q22 2Q22 % Change 3Q21 % Change 22 21 % Change
Ore Processed (t) 294,210 280,526 4.9 320,277 (8.1) 857,304 980,399 (12.6)
-------- -------- --------- -------- --------- -------- -------- ---------
Production
-------- -------- --------- -------- --------- -------- -------- ---------
Gold (oz) 9,437 8,917 5.8 11,528 (18.1) 28,344 38,223 (25.8)
-------- -------- --------- -------- --------- -------- -------- ---------
Silver (koz) 1,242 1,069 16.2 1,323 (6.1) 3,727 4,046 (7.9)
-------- -------- --------- -------- --------- -------- -------- ---------
Lead (t) 904 758 19.3 985 (8.2) 2,588 3,175 (18.5)
-------- -------- --------- -------- --------- -------- -------- ---------
Zinc (t) 1,419 1,245 14.0 1,491 (4.8) 4,015 5,133 (21.8)
-------- -------- --------- -------- --------- -------- -------- ---------
Ore Grades
-------- -------- --------- -------- --------- -------- -------- ---------
Gold (g/t) 1.09 1.08 0.9 1.21 (9.9) 1.12 1.30 (13.8)
-------- -------- --------- -------- --------- -------- -------- ---------
Silver (g/t) 152 138 10.1 150 1.3 156 150 4.0
-------- -------- --------- -------- --------- -------- -------- ---------
Lead (%) 0.48 0.43 11.6 0.51 (5.9) 0.47 0.53 (11.3)
-------- -------- --------- -------- --------- -------- -------- ---------
Zinc (%) 0.87 0.79 10.1 0.85 2.4 0.84 0.94 (10.6)
-------- -------- --------- -------- --------- -------- -------- ---------
Quarterly gold and silver production increased 5.8% and 16.2%
vs. 2Q22, respectively, mainly due to higher volumes of ore
processed driven by the efficiency of the maintenance programme and
additional days worked in July which were not considered in the
production plan. The higher silver ore grade also contributed to
the increase in silver production.
Quarterly gold production decreased 18.1% vs. 3Q21, due to the
lower volume of ore processed driven by the residual impact of the
labour reform in Mexico, and lower gold ore grades.
Quarterly silver production decreased 6.1% vs. 3Q21 due to a
lower volume of ore processed as previously described, partially
mitigated by a higher ore grade.
Year to date gold production decreased 25.8% vs. YTD 21, due to
the lower volume of ore processed for reasons explained above and
lower ore grade year-on-year.
Year to date silver production decreased 7.9% vs. YTD21 due to a
lower volume of ore processed, partially mitigated by a higher ore
grade.
The gold and silver ore grades for 2022 are expected to remain
in the range of 1.20-1.40 g/t and 145-155 g/t respectively.
SAN JULIÁN MINE PRODUCTION
YTD YTD
3Q22 2Q22 % Change 3Q21 % Change 22 21 % Change
Ore Processed Veins
(t) 297,216 289,821 2.6 302,987 (1.9) 881,182 894,135 (1.4)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Processed DOB
(t) 498,882 535,326 (6.8) 533,204 (6.4) 1,575,237 1,536,932 2.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Total production
at San Julián
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 11,387 11,748 (3.1) 13,612 (16.3) 34,820 42,959 (18.9)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,171 4,328 (26.7) 4,156 (23.7) 11,139 12,805 (13.0)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 10,625 10,865 (2.2) 12,550 (15.3) 32,335 39,698 (18.5)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 1,115 1,175 (5.1) 1,033 7.9 3,350 3,025 10.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 762 883 (13.7) 1,062 (28.2) 2,485 3,261 (23.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 2,056 3,152 (34.8) 3,123 (34.2) 7,789 9,780 (20.4)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 1,461 2,325 (37.2) 2,122 (31.1) 5,394 6,629 (18.6)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 3,790 5,368 (29.4) 5,039 (24.8) 13,883 15,572 (10.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.17 1.22 (4.1) 1.36 (14.0) 1.20 1.46 (17.8)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 128 138 (7.2) 116 10.3 130 115 13.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.08 0.09 (11.1) 0.11 (27.3) 0.08 0.11 (27.3)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 153 213 (28.2) 217 (29.5) 180 232 (22.4)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.39 0.51 (23.5) 0.50 (22.0) 0.43 0.53 (18.9)
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 1.01 1.29 (21.7) 1.24 (18.5) 1.14 1.33 (14.3)
-------- -------- --------- -------- --------- ---------- ---------- ---------
SAN JULIÁN VEINS
Quarterly gold and silver production decreased 2.2% and 5.1% vs
2Q22 respectively, mainly due to lower ore grades, partly mitigated
by a higher volume of ore processed.
Quarterly and year to date gold production decreased 15.3% and
18.5% vs. 3Q21 and YTD 21 respectively, mainly due to lower ore
grades driven by an operational decision to adjust the mine plan to
prioritise extraction from wider veins of the mine with higher
silver content but a lower gold ore grade.
Quarterly and year to date silver production increased 7.9% and
10.7% vs. 3Q21 and YTD 21 respectively, mainly due to higher ore
grades, partially mitigated by the lower volume of ore
processed.
We continue to expect the 2022 silver ore grade to average
120-130 g/t, however, gold ore grade is anticipated to be in the
range of 1.20-1.30 g/t (1.35-1.55 g/t previously), as a result of
the strategy to prioritise veins with higher silver content.
SAN JULIÁN DISSEMINATED ORE BODY (DOB)
Quarterly gold and silver production decreased 13.7% and 34.8%
vs. 2Q22, due to the expected lower ore grades, a decrease in ore
processed driven by a short stoppage to fix a failure in the
bearing pads of the SAG mill at the plant.
Similarly, quarterly and year to date gold and silver production
decreased vs 3Q21 and YTD 21, primarily due to the expected lower
ore grade following the higher than anticipated ore grade in 2021
as a result of: i) the positive variation with the geological model
in the central area of the ore body; and ii) access to higher ore
grade areas following the mine resequencing in 2019, as set out at
the time.
We continue to expect the 2022 silver ore grade to be in the
range of 150-170 g/t as we advance towards the lower grade areas in
the periphery of the ore body.
HERRADURA TOTAL MINE PRODUCTION
3Q22 2Q22 % Change 3Q21 % Change YTD 22 YTD 21 % Change
Ore Processed
(t) 5,592,474 5,301,678 5.5 4,546,401 23.0 15,110,750 16,040,807 (5.8)
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Total Volume
Hauled (t) 28,590,141 31,548,611 (9.4) 33,068,512 (13.5) 92,923,523 99,723,666 (6.8)
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Production
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (oz) 85,245 83,043 2.7 94,193 (9.5) 245,889 352,358 (30.2)
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (koz) 199 169 17.8 228 (12.7) 585 757 (22.7)
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Ore Grades
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (g/t) 0.71 0.67 6.0 0.76 (6.6) 0.69 0.79 (12.7)
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (g/t) 1.71 1.49 14.8 2.24 (23.7) 1.78 2.09 (14.8)
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Quarterly gold production increased 2.7% vs. 2Q22, mainly due to
the higher ore grades resulting from positive variations with the
geological model, and an increase in ore deposited on the leaching
pads.
Quarterly gold production decreased 9.5% vs. 3Q21 due to
expected lower ore grades and recovery rates as higher volumes of
sulphide ore are processed. This was partially mitigated by an
increase in ore deposited.
Year to date gold production decreased 30.2% vs. YTD 21 due to
the expected lower ore grade and volume of ore processed, and
decreased recovery rates for the reason explained above.
The gold ore grade in 2022 is expected to remain in the range of
0.65-0.75 g/t.
NOCHE BUENA TOTAL MINE PRODUCTION
3Q22 2Q22 % Change 3Q21 % Change YTD 22 YTD 21 % Change
Ore Processed
(t) 1,811,987 2,594,599 (30.2) 2,389,895 (24.2) 6,196,064 6,069,819 2.1
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Total Volume
Hauled (t) 6,274,060 8,105,466 (22.6) 6,222,974 0.8 19,557,715 19,471,184 0.4
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Production
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Gold (oz) 19,235 25,234 (23.8) 25,015 (23.1) 66,338 68,244 (2.8)
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Silver (koz) 3 6 (50.0) 8 (62.5) 17 21 (19.0)
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Ore Grades
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Gold (g/t) 0.44 0.53 (17.0) 0.59 (25.4) 0.53 0.55 (3.6)
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Silver (g/t) 0.16 0.22 (27.3) 0.19 (15.8) 0.23 0.19 21.1
---------- ---------- --------- ---------- --------- ----------- ----------- ---------
Quarterly gold production decreased 23.8% and 23.1% vs. 2Q22 and
3Q21 respectively, due to the expected decrease in volume of ore
deposited as the mine approaches the end of its life, aggravated by
the presence of heavy rain storms during several days in August,
which complicated operations at the bottom of the pit. The lower
ore grade further impacted quarterly gold production.
Year to date gold production decreased 2.8% vs. YTD 21 due to a
lower ore grade. This was partially mitigated by the higher volume
of ore deposited.
The expected gold ore grade in 2022 is expected to remain in the
range of 0.40-0.50 g/t.
JUANICIPIO
Mineralised material from Juanicipio continued to be processed
through the Fresnillo and Saucito flotation plant during the
quarter. On an attributable basis, 1,465.7 koz of silver and 3,029
oz of gold were produced in 3Q22.
As previously reported, the state-owned electricity regulator,
CFE (Comisión Federal de Electricidad), requested additional
testing to verify compatibility between new and updated substation
equipment installed by Juanicipio and existing older CFE
infrastructure before the final tie-in to the electrical grid.
The additional testing is on track, and we expect to complete
this process and achieve tie-in by the end of October, with
commissioning and ramp up thereafter. We now expect to reach c.60%
capacity by the end of the year, lower than our earlier guidance
(85-90%), given this unexpected delay to final tie-in. However, our
2023 expectations for Juanicipio are unchanged.
SILVERSTREAM
Quarterly Silverstream production increased 15.5% vs. 2Q22
mainly due to increased volumes of ore processed and higher ore
grade. However, quarterly and year to date Silverstream production
decreased 6.1% and 8.7% vs. 3Q21 and YTD 21 respectively as a
result of lower ore grade and a decrease in ore processed.
Expected silver production in 2022 remains in the range of
2.5-3.5 moz.
ABOUT FRESNILLO PLC
Fresnillo plc is the world's largest primary silver producer and
Mexico's largest gold producer, listed on the London and Mexican
Stock Exchanges under the symbol FRES.
Fresnillo plc has seven operating mines, all of them in Mexico -
Fresnillo, Saucito, Ciénega (including Las Casas Rosario &
Cluster Cebollitas), Herradura, Soledad-Dipolos1, Noche Buena and
San Julián (Veins and Disseminated Ore Body), two development
projects - the Pyrites Plant at Fresnillo and Juanicipio, both of
which have been completed and are awaiting tie-ins of the plants to
the national electricity grid; and three advanced exploration
projects - Orisyvo, Rodeo and Guanajuato, as well as a number of
other long term exploration prospects.
Fresnillo plc has mining concessions and exploration projects in
Mexico, Peru and Chile.
Fresnillo plc has a strong and long tradition of exploring,
mining, a proven track record of mine development, reserve
replacement, and production costs in the lowest quartile of the
cost curve for silver.
Fresnillo plc's goal is to maintain the Group's position as the
world's largest primary silver company and Mexico's largest gold
producer.
(1) Operations at Soledad-Dipolos are currently suspended.
FORWARD-LOOKING STATEMENTS
Information contained in this announcement may include
'forward-looking statements'. All statements other than statements
of historical facts included herein, including, without limitation,
those regarding the Fresnillo Group's intentions, beliefs or
current expectations concerning, amongst other things, the
Fresnillo Group's results of operations, financial position,
liquidity, prospects, growth, strategies and the silver and gold
industries are forward-looking statements. Such forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. Forward-looking statements are not
guarantees of future performance and the actual results of the
Fresnillo Group's operations, financial position and liquidity, and
the development of the markets and the industry in which the
Fresnillo Group operates, may differ materially from those
described in, or suggested by, the forward-looking statements
contained in this document. In addition, even if the results of
operations, financial position and liquidity, and the development
of the markets and the industry in which the Fresnillo Group
operates are consistent with the forward-looking statements
contained in this document, those results or developments may not
be indicative of results or developments in subsequent periods. A
number of factors could cause results and developments to differ
materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity
prices, changes in regulation, currency fluctuations (including the
US dollar and Mexican Peso exchanges rates), the Fresnillo Group's
ability to recover its reserves or develop new reserves, including
its ability to convert its resources into reserves and its mineral
potential into resources or reserves, changes in its business
strategy and political and economic uncertainty.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
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END
QRTBKABPDBDKPKB
(END) Dow Jones Newswires
October 26, 2022 02:00 ET (06:00 GMT)
Fresnillo (LSE:FRES)
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부터 10월(10) 2024 으로 11월(11) 2024
Fresnillo (LSE:FRES)
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부터 11월(11) 2023 으로 11월(11) 2024
