REG - Fresnillo Plc - Replacement RNS for 4Q23 Production Report

FresnilloAnnouncement

24/01/2024 15:30

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RNS Number : 8117A  Fresnillo PLC  24 January 2024

 
 
  Fresnillo plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

www.fresnilloplc.com (http://www.fresnilloplc.com)

 

24 January 2024

 

 

The following amendment has been made to the Fourth Quarter Production Report
announcement released on 24 January 2024 at 07:00 under RNS No 6893A

 

The FRESNILLO MINE PRODUCTION section has been updated. Figures for 4Q23 and
FY23, along with their respective % changes have been corrected, as shown
below. The changes are minor and do not affect the explanations below the
table or the messaging of the report overall.

 

All other details remain unchanged, including the consolidated figures at a
Group level.

 

New version

                    4Q23     3Q23     % Change  4Q22     % Change   FY23      FY22       % Change
 Ore Processed (t)  609,135  673,233  (9.5)     624,105  (2.4)     2,618,509  2,462,409  6.3

 Production
 Silver (koz)       2,781    3,201    (13.1)    3,605    (22.9)    12,772     13,609     (6.2)
 Gold (oz)          8,149    9,013    (9.6)     8,314    (2.0)     36,909     34,432     7.2
 Lead (t)           5,226    5,175    1.0       5,609    (6.8)     21,373     21,756     (1.8)
 Zinc (t)           10,592   12,003   (11.8)    11,097   (4.5)     45,386     43,342     4.7

 Ore Grades
 Silver (g/t)       160      166      (3.6)     197      (18.9)    170        189        (9.8)
 Gold (g/t)         0.59     0.59     (1.1)     0.58     1.3       0.62       0.61       0.6
 Lead (%)           1.03     0.90     14.5      1.05     (2.2)     0.96       1.05       (8.1)
 Zinc (%)           2.42     2.33     4.0       2.37     1.9       2.32       2.38       (2.6)

 

Quarterly silver production decreased 13.1% when compared to 3Q23, mainly due
to a decreased volume of ore processed as development ore was not processed as
a measure to increase head grades to the mill along with a higher proportion
of volumes extracted from the western areas of the mine with lower ore grades.
We are increasing development in eastern areas with higher grades albeit with
narrower widths.

 

Quarterly silver production decreased 22.9% vs. 4Q22, mainly due to the lower
ore grade as explained above.

 

Full year silver production decreased 6.2% vs. FY22 driven by the lower ore
grade, partially mitigated by the increase in volume of ore processed from the
Candelaria, San Carlos, San Alberto and Santa Elena areas.

 

Mine development rates increased quarter on quarter to an average of 3,038m
per month in 4Q23 (3Q23: 2,987m per month) as productivity from unionised
personnel increased after taking over from contractors in 3Q23.

 

Quarterly by-product gold production decreased 9.6% vs. 3Q23 mainly driven by
the decreased volume of ore processed and lower ore grade.

 

Full year by-product gold production increased 7.2% vs. FY22 primarily as a
result of the higher volume of ore processed.

 

Silver ore grade in 2024 is expected to be in the range of 180 to 200 g/t,
while the gold ore grade is estimated to be

between 0.60 to 0.70 g/t.

 

 

Old version

                    4Q23     3Q23     % Change  4Q22     % Change   FY23      FY22       % Change
 Ore Processed (t)  621,344  673,233  (7.7)     624,105  (0.4)     2,630,719  2,462,409  6.8

 Production
 Silver (koz)       2,838    3,201    (11.3)    3,605    (21.3)    12,829     13,609     (5.7)
 Gold (oz)          8,248    9,013    (8.5)     8,314    (0.8)     37,008     34,432     7.5
 Lead (t)           5,289    5,175    2.2       5,609    (5.7)     21,436     21,756     (1.5)
 Zinc (t)           10,791   12,003   (10.1)    11,097   (2.8)     45,585     43,342     5.2

 Ore Grades
 Silver (g/t)       160      166      (3.6)     197      (18.8)    170        189        (9.8)
 Gold (g/t)         0.58     0.59     (1.7)     0.58     0.6       0.61       0.61       0.5
 Lead (%)           1.02     0.90     13.6      1.05     (2.9)     0.96       1.05       (8.2)
 Zinc (%)           2.41     2.33     3.7       2.37     1.6       2.32       2.38       (2.7)

 

Quarterly silver production decreased 11.3% when compared to 3Q23, mainly due
to a decreased volume of ore processed as development ore was not processed as
a measure to increase head grades to the mill along with a higher proportion
of volumes extracted from the western areas of the mine with lower ore grades.
We are increasing development in eastern areas with higher grades albeit with
narrower widths.

 

Quarterly silver production decreased 21.3% vs. 4Q22, mainly due to the lower
ore grade as explained above.

 

Full year silver production decreased 5.7% vs. FY22 driven by the lower ore
grade, partially mitigated by the increase in volume of ore processed from the
Candelaria, San Carlos, San Alberto and Santa Elena areas.

 

Mine development rates increased quarter on quarter to an average of 3,038m
per month in 4Q23 (3Q23: 2,987m per month) as productivity from unionised
personnel increased after taking over from contractors in 3Q23.

 

Quarterly by-product gold production decreased 8.5% vs. 3Q23 mainly driven by
the decreased volume of ore processed and lower ore grade.

 

Full year by-product gold production increased 7.5% vs. FY22 primarily as a
result of the higher volume of ore processed.

 

Silver ore grade in 2024 is expected to be in the range of 180 to 200 g/t,
while the gold ore grade is estimated to be

between 0.60 to 0.70 g/t.

 

The full amended text is shown below.

 

 

FOURTH QUARTER PRODUCTION REPORT

FOR THE THREE MONTHS ENDED 31 DECEMBER 2023

 

Octavio Alvídrez, Chief Executive Officer, said:

 

"We achieved our full year guidance of 105.1 million silver equivalent ounces.
Notably gold, lead and zinc production were within our guided ranges. Silver
production was up 4.7% year on year driven by the ramp up at Juanicipio and
higher ore grade at San Julián Veins, albeit it was slightly below
expectations.

 

"This year we overcame many operational challenges, which is a testament to
the strong and determined teams we have across our sites. We successfully
ramped up production at our new mine, Juanicipio, reaching full nameplate
capacity.

 

"We continued to see the impact of inflation and the revaluation of the
Mexican peso affecting costs across the business.

 

"Our priorities for 2024 are clear. Safety is key and we will continue working
hard to instill a true culture of safety across our operations. We will
continue to identify cost reduction initiatives to address inflation, while we
will also focus on efficiencies across all our mines."

 

HIGHLIGHTS

 

Silver

 

·    Full year attributable silver production of 56.3 moz (including
Silverstream) increased 4.7% vs. FY22, as a result of the ramp-up at
Juanicipio and higher ore grade at San Julián Veins, partly offset by the
lower ore grade at San Julián (DOB) and Fresnillo.

 

·    Quarterly attributable silver production of 14.2 moz (including
Silverstream) remained at a similar level to 3Q23, as the increased production
driven by the higher ore grade and increase in volumes of ore processed at
Saucito and the higher ore grade at San Julián Veins was offset by the
decreased volume of ore processed and lower ore grade at Fresnillo and the
lower ore grade at San Julián (DOB).

 

·    Quarterly attributable silver production (including Silverstream)
increased 13.1% vs. 4Q22, primarily due to the ramp-up at Juanicipio, the
higher ore grade at San Julián Veins and a higher volume of ore processed at
Saucito, partially offset by the lower ore grade at Fresnillo and San Julián
(DOB).

 

 

Gold

 

·    Full year attributable gold production of 610.6 koz, down 4.0% vs.
FY22 mainly driven by the decrease in gold production at Noche Buena as it
approached the end of its mine life, partially mitigated by the ramp up at
Juanicipio and the higher ore grade at Herradura.

 

·    Quarterly attributable gold production of 152.6 koz up 15.1% vs.
3Q23, mainly driven by the higher volume of ore processed and ore grade at
Herradura.

 

·    Quarterly attributable gold production down 9.1% vs. 4Q22 primarily
due to the decrease in the volume of ore processed at Herradura and the mine
closure plan at Noche Buena, partly mitigated by the ramp-up at Juanicipio.

 

 

By-Products

 

•     Full year attributable by-product lead production increased 9.2%
vs. FY22 due to a greater contribution from Juanicipio and higher volume of
ore processed and ore grade at Saucito partly offset by the decreased
production at Ciénega.

 

•     Full year attributable by-product zinc production increased 8.6%
vs. FY22 due to the increased production from Juanicipio and the higher volume
of ore processed and ore grade at Saucito partly offset by the lower ore grade
at San Julián (DOB).

 

•     Quarterly attributable by-product lead production up 9.1% vs. 3Q23
primarily due to the higher ore grade and increased volume of ore processed at
Saucito.

 

•     Quarterly attributable by-product lead and zinc production up
24.6% and 25.1% vs. 4Q22 respectively, mainly due to the higher ore grades and
increase in volumes of ore processed at Saucito and the ramp-up at Juanicipio,
partially offset by the lower ore grades at San Julián (DOB) and Ciénega.

 

 

                     4Q23     3Q23     % Change  4Q22     % Change  FY23     FY22     % Change
 Silver (koz)        13,548   13,434   0.9       12,073   12.2      53,454   51,052   4.7
 Silverstream (koz)  612      670      (8.6)     450      36.2      2,828    2,688    5.2
 Total Silver (koz)  14,161   14,104   0.4       12,522   13.1      56,282   53,740   4.7
 Gold (oz)           152,605  132,627  15.1      167,969  (9.1)     610,646  635,926  (4.0)
 Lead (t)            15,895   14,575   9.1       12,756   24.6      57,833   52,950   9.2
 Zinc (t)            28,844   29,073   (0.8)     23,060   25.1      107,705  99,153   8.6

 

SAFETY PERFORMANCE

 

As reported previously, we are deeply saddened by the fatal accidents in 2023.
Full investigations were undertaken to identify the root causes of these
accidents. The lessons learnt were shared across the Group and additional
safety workshops were carried out to prevent these incidents from occurring
again. Our safety procedures and programmes continued to be reinforced across
the Group and we reiterate our commitment to guarantee a safe environment for
all our people. Safety remains the absolute priority for the Board, the
management and the Company. Work to instill a true culture of safety across
our contractor and employee workforce is on-going and prioritised at every
mine site.

 

 

ITEMS IMPACTING THE INCOME STATEMENT

 

Adjusted production costs in 2023 were impacted by:

1.   The 11.7% average revaluation of the Mexican peso vs. the US dollar
from $20.1 pesos per US dollar in 2022 to $17.8 pesos per US dollar in 2023,
which is expected to have an adverse effect of c. US$125 million.

2.   Ongoing cost inflation of 3.9%, excluding the effect of the revaluation
of the Mexican peso vs. US dollar, which is expected to have a negative impact
of c. US$60 million.

 

In addition, cost of sales is expected to be impacted by a decrease in
inventories both at Juanicipio as a result of the start up of the
beneficiation plant, enabling additional volumes to be processed and the
historical stockpile to be depleted, and at Noche Buena as it approached the
end of its mine life. This, together with the favourable effect of the
reassessment of the gold inventories at Herradura, resulted in an estimated
reduction in inventories of c. US$55 million in 2023. Otherwise, the reduction
in inventories would have been c. US$85 million.

Administrative expenses are expected to increase by c. US$35 million vs 2022,
mainly due to the adverse effects of the revaluation of the Mexican peso
vs the US Dollar on administrative expenses denominated in pesos, including
personnel salaries, and the increase in corporate expenses as a result of the
review of the Shared Services Agreement with Peñoles in line with the
increased services provided.

Depreciation is expected to be very similar to 2022 at c. US$500 million.

 

 

2024 OUTLOOK

 

Our 2024 outlook is in line with previous expectations:

·    Attributable silver production expected to be in the range of 55.0 to
62.0 moz (including Silverstream)

·    Attributable gold production expected to be in the range of 580 to
630 koz.

 

Expressed in silver equivalent ounces 1  (#_ftn1) , production is expected to
be 101-112 million ounces.

 

 

 

FULL YEAR FINANCIAL RESULTS

 

Fresnillo will announce its full year 2023 results on 5th March 2024.

 

 

For further information, please visit our website www.fresnilloplc.com
(http://www.fresnilloplc.com) or contact:

 FRESNILLO PLC                                                  Tel: +44 (0)20 7399 2470

 London Office

 Gabriela Mayor, Head of Investor Relations

 Mark Mochalski
 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

 

                    4Q23     3Q23     % Change  4Q22     % Change   FY23      FY22       % Change
 Ore Processed (t)  609,135  673,233  (9.5)     624,105  (2.4)     2,618,509  2,462,409  6.3

 Production
 Silver (koz)       2,781    3,201    (13.1)    3,605    (22.9)    12,772     13,609     (6.2)
 Gold (oz)          8,149    9,013    (9.6)     8,314    (2.0)     36,909     34,432     7.2
 Lead (t)           5,226    5,175    1.0       5,609    (6.8)     21,373     21,756     (1.8)
 Zinc (t)           10,592   12,003   (11.8)    11,097   (4.5)     45,386     43,342     4.7

 Ore Grades
 Silver (g/t)       160      166      (3.6)     197      (18.9)    170        189        (9.8)
 Gold (g/t)         0.59     0.59     (1.1)     0.58     1.3       0.62       0.61       0.6
 Lead (%)           1.03     0.90     14.5      1.05     (2.2)     0.96       1.05       (8.1)
 Zinc (%)           2.42     2.33     4.0       2.37     1.9       2.32       2.38       (2.6)

 

Quarterly silver production decreased 13.1% when compared to 3Q23, mainly due
to a decreased volume of ore processed as development ore was not processed as
a measure to increase head grades to the mill along with a higher proportion
of volumes extracted from the western areas of the mine with lower ore grades.
We are increasing development in eastern areas with higher grades albeit with
narrower widths.

 

Quarterly silver production decreased 22.9% vs. 4Q22, mainly due to the lower
ore grade as explained above.

 

Full year silver production decreased 6.2% vs. FY22 driven by the lower ore
grade, partially mitigated by the increase in volume of ore processed from the
Candelaria, San Carlos, San Alberto and Santa Elena areas.

 

Mine development rates increased quarter on quarter to an average of 3,038m
per month in 4Q23 (3Q23: 2,987m per month) as productivity from unionised
personnel increased after taking over from contractors in 3Q23.

 

Quarterly by-product gold production decreased 9.6% vs. 3Q23 mainly driven by
the decreased volume of ore processed and lower ore grade.

 

Full year by-product gold production increased 7.2% vs. FY22 primarily as a
result of the higher volume of ore processed.

 

Silver ore grade in 2024 is expected to be in the range of 180 to 200 g/t,
while the gold ore grade is estimated to be

between 0.60 to 0.70 g/t.

 

SAUCITO MINE PRODUCTION

 

                    4Q23     3Q23     % Change  4Q22     % Change  FY23       FY22       % Change
 Ore Processed (t)  576,189  552,872  4.2       508,455  13.3      2,163,982  2,072,812  4.4

 Production
 Silver (koz)       3,399    2,892    17.5      3,026    12.3      12,102     11,977     1.0
 Gold (oz)          17,256   15,427   11.9      18,076   (4.5)     72,763     73,497     (1.0)
 Lead (t)           6,311    4,973    26.9      3,859    63.6      19,535     17,816     9.6
 Zinc (t)           10,335   9,663    7.0       5,868    76.1      32,991     28,415     16.1

 Ore Grades
 Silver (g/t)       204      183      11.5      208      (2.0)     195        201        (3.1)
 Gold (g/t)         1.20     1.14     5.2       1.39     (13.8)    1.34       1.40       (4.3)
 Lead (%)           1.27     1.06     19.7      0.90     40.5      1.06       1.01       5.3
 Zinc (%)           2.29     2.22     3.1       1.56     46.8      1.96       1.78       10.2

 

Quarterly silver production increased 17.5% vs. 3Q23 mainly driven by the
higher ore grade due to the timely access to high grade areas and decreased
dilution through better ground control, and the increase in volume processed.

 

Quarterly silver production increased 12.3% vs. 4Q22 primarily due to the
higher volume of ore processed driven by improved productivity and increased
equipment availability.

 

Full year silver production slightly increased vs. FY22 as the higher volume
of ore processed was partly offset by a lower ore grade.

 

Quarterly by-product gold production increased 11.9% vs. 3Q23 mainly driven by
the higher ore grade and increase in volumes of ore processed.

 

Quarterly and full year by-product gold production decreased 4.5% and 1.0% vs.
4Q22 and FY22 respectively, driven by the lower ore grade and recovery rate,
partly mitigated by the higher volumes of ore processed.

 

Mine development rates remained stable quarter on quarter at 2,810m per month
in 4Q23 (3Q23: 2,840m per month). As reported, additional equipment arrived
and development rates returned to 3,000 m per month in December.

 

The silver ore grade for 2024 is expected to be in the range of 200-220 g/t,
while the gold grade is estimated to be between 1.10-1.30 g/t.

 

 

 

PYRITES PLANT

 

                                    4Q23*   3Q23*   % Change  4Q22    % Change  FY23*    FY22     % Change
 Pyrite Concentrates Processed (t)  48,167  46,934  2.6       32,211  49.5      162,344  135,044  20.2

 Production
 Silver (koz)                       328     225     45.8      111     195.1     861      529      62.6
 Gold (oz)                          599     597     0.3       374     60.2      1,960    1,959    0.1

 Ore Grades
 Silver (g/t)                       331     220     51.0      145     128.4     248      164      51.0
 Gold (g/t)                         1.71    1.46    16.9      1.19    42.8      1.59     1.44     10.4

*Includes concentrates of Fe from Saucito and Fresnillo.

 

Quarterly silver production increased 45.8% and 195.1% vs. 3Q23 and 4Q22
respectively, mainly due to the ramp up of the pyrites plant at Fresnillo.

 

Similarly, gold production increased 60.2% vs. 4Q22 mainly due to the reason
explained above partly offset by the lower recovery rate and decreased volume
of iron concentrates processed from Saucito.

 

Full year silver production increased 62.6% vs. FY22, mainly due to
contribution of the pyrites plant at Fresnillo, partly offset by the decrease
in volume of iron concentrates processed from Saucito and lower recovery rate.

 

Following some tests and technical work, it was decided to only process the
historical tailings as recovery rates improved significantly when doing so. We
will continue implementing this strategy in 2024, which means that volumes
processed will inevitably be lower than originally planned but recovery rates
and profitability will be higher than when processing both current and
historical tailings.

 

 

CIÉNEGA MINE PRODUCTION

 

                    4Q23     3Q23     % Change  4Q22     % Change  FY23       FY22       % Change
 Ore Processed (t)  292,612  270,531  8.2       256,928  13.9      1,064,543  1,114,232  (4.5)

 Production
 Gold (oz)          9,187    9,314    (1.4)     9,122    0.7       35,934     37,466     (4.1)
 Silver (koz)       1,213    1,131    7.3       982      23.5      4,335      4,709      (8.0)
 Lead (t)           693      683      1.4       930      (25.5)    2,881      3,518      (18.1)
 Zinc (t)           723      906      (20.3)    1,372    (47.3)    3,550      5,387      (34.1)

 Ore Grades
 Gold (g/t)         1.07     1.16     (8.3)     1.20     (11.1)    1.14       1.14       0.3
 Silver (g/t)       151      151      0.0       139      8.2       147        152        (3.2)
 Lead (%)           0.39     0.42     (8.2)     0.56     (30.0)    0.44       0.49       (11.2)
 Zinc (%)           0.47     0.64     (25.5)    0.94     (49.9)    0.63       0.86       (26.9)

 

Quarterly gold production slightly decreased 1.4% vs. 3Q23 mainly due to the
lower ore grade partly mitigated by the higher volume of ore processed driven
by the timely preparation of stopes.

Quarterly gold production remained stable vs. 4Q22 as the higher volume of ore
processed was offset by the lower ore grade.

Full year gold production decreased 4.1% vs. FY22 mainly due to the decreased
volume of ore processed in accordance with the mine plan.

Quarterly silver production increased 7.3% vs. 3Q23 due to the increase in
volume of ore processed.

Quarterly silver production increased 23.5% vs. 4Q22 driven by the increase in
the volume of ore processed and the higher ore grade.

Full year silver production decreased 8.0% vs. FY22 mainly due to the decrease
in volume of ore processed in accordance with the mine plan and lower ore
grade.

The gold and silver ore grades for 2024 are estimated to be in the ranges of
1.1-1.3 g/t and 160-180 g/t respectively.

 

SAN JULIÁN MINE PRODUCTION

 

                                  4Q23     3Q23     % Change  4Q22     % Change  FY23       FY22       % Change
 Ore Processed Veins (t)          291,661  292,391  (0.2)     294,582  (1.0)     1,142,309  1,175,764  (2.8)
 Ore Processed DOB (t)            525,081  498,607  5.3       517,733  1.4       2,073,847  2,092,971  (0.9)

 Total production at San Julián
 Gold (oz)                        11,034   11,161   (1.1)     11,907   (7.3)     44,487     46,727     (4.8)
 Silver (koz)                     3,156    3,186    (0.9)     3,113    1.4       13,349     14,252     (6.3)

 Production Veins
 Gold (oz)                        10,117   10,428   (3.0)     11,062   (8.5)     41,009     43,397     (5.5)
 Silver (koz)                     1,719    1,359    26.5      1,288    33.5      5,559      4,638      19.8

 Production DOB
 Gold (oz)                        918      733      25.2      845      8.6       3,478      3,330      4.5
 Silver (koz)                     1,437    1,826    (21.3)    1,825    (21.3)    7,791      9,614      (19.0)
 Lead (t)                         1,332    1,595    (16.5)    1,712    (22.2)    6,843      7,105      (3.7)
 Zinc (t)                         3,362    3,273    2.7       3,604    (6.7)     14,410     17,487     (17.6)

 Ore Grades Veins
 Gold (g/t)                       1.13     1.18     (3.8)     1.23     (8.1)     1.17       1.21       (2.9)
 Silver (g/t)                     200      158      26.5      149      34.3      166        135        23.1

 Ore Grades DOB
 Gold (g/t)                       0.08     0.08     5.6       0.08     7.9       0.08       0.08       3.7
 Silver (g/t)                     100      134      (25.1)    130      (23.3)    136        168        (18.9)
 Lead (%)                         0.33     0.42     (21.0)    0.43     (21.7)    0.43       0.43       0.2
 Zinc (%)                         0.86     0.90     (5.4)     0.93     (8.0)     0.94       1.09       (13.8)

 

SAN JULIÁN VEINS

Quarterly silver production increased 26.5% vs. 3Q23 and 33.5% vs. 4Q22 mainly
due to the increased development at the San Antonio and Elisa areas with a
higher silver ore grade, whilst quarterly gold production decreased 3.0% and
8.5% vs. 3Q23 and 4Q22 respectively, as a result of the lower gold ore grade.

Full year silver production increased 19.8% vs. FY22 respectively, mainly due
to higher ore grade at the San Antonio, Elisa and San Atanasio areas.

Full year gold production decreased 5.5% vs. 4Q22 mainly driven by the lower
ore grade and a decrease in volume of ore processed due to the lower
availability of trucks to haul ore to the beneficiation plant.

We expect the 2024 silver and gold ore grades to be in the ranges of 160-180
g/t and 1.00-1.20 g/t, respectively.

 

SAN JULIÁN DISSEMINATED ORE BODY (DOB)

Quarterly silver production decreased 21.3% vs. 3Q23 and 4Q22 as a result of
lower ore grade in the periphery of the ore body, partly mitigated by the
increased volume of ore processed.

Full year silver production decreased 19.0% vs. FY22 mainly due to the
expected lower ore grade in the areas in the periphery of the ore body and
structural geological features which slowed down the long hole drilling
cycles.

The 2024 silver ore grade is expected to average c. 90 g/t.

Recent development

On 10 January 2024, Fresnillo learnt that Mexico's Supreme Court granted a
ruling in a case in which Fresnillo, as an affected third party, expects an
impact to the water concessions that supply water to Minera San Julián that
were granted by the Mexican State. The Mexican State is identified as the
defendant in this case.

The Company has not yet been formally notified of this ruling. Nevertheless,
the Company expects to be formally notified of the same in the coming weeks
and will thereafter assess in full detail the ruling itself and its potential
implications. This ruling affects Minera San Julián and, based on current
information, impact to the Company's production is expected to be immaterial.

 

HERRADURA TOTAL MINE PRODUCTION

 

                          4Q23        3Q23        % Change  4Q22        % Change  FY23        FY22         % Change
 Ore Processed (t)        4,534,745   3,983,615   13.8      7,084,437   (36.0)    20,223,914  22,195,187   (8.9)
 Total Volume Hauled (t)  24,409,823  24,462,202  (0.2)     27,446,767  (11.1)    99,541,551  120,370,290  (17.3)

 Production
 Gold (oz)                93,432      72,184      29.4      103,826     (10.0)    355,485     349,715      1.6
 Silver (koz)             147         120         22.6      191         (22.9)    611         776          (21.3)

 Ore Grades
 Gold (g/t)               0.84        0.73        13.9      0.71        18.4      0.76        0.69         9.9
 Silver (g/t)             1.69        1.51        11.9      1.35        24.8      1.57        1.65         (4.6)

 

Quarterly gold production increased 29.4% vs. 3Q23 mainly driven by the higher
ore grade in the sulphides and the increase in volume of ore processed as 3Q23
was impacted by an electrical fault.

Quarterly gold production decreased 10.0% vs. 4Q22 due to the lower volume of
ore processed driven by the limited operation at the Dynamic Leaching Plants
(I and II) with reduced capacity at the beginning of the quarter following the
electrical fault in 3Q23, partly mitigated by the higher ore grade as
mentioned above and the improved recovery rate.

Full year gold production increased 1.6% vs. FY22, primarily driven by the
higher ore grade in the sulphides and positive variations with the geological
model, partially offset by the decreased volume of ore processed at the
Dynamic Leaching Plant (I and II) as a result of the electrical fault in 3Q23
as mentioned previously.

The gold ore grade in 2024 is expected to be in the range of 0.60-0.70 g/t.

 

NOCHE BUENA TOTAL MINE PRODUCTION

 

                          4Q23   3Q23   % Change  4Q22       % Change  FY23       FY22        % Change
 Ore Processed (t)        0      0      N/A       1,232,125  N/A       2,510,639  7,428,189   (66.2)
 Total Volume Hauled (t)  0      0      N/A       7,296,832  N/A       8,424,676  26,854,547  (68.6)

 Production
 Gold (oz)                7,017  9,642  (27.2)    13,331     (47.4)    42,537     79,669      (46.6)
 Silver (koz)             1      2      (53.3)    3          (75.9)    10         20          (48.0)

 Ore Grades
 Gold (g/t)               0.00   0.00   N/A       0.51       N/A       0.47       0.53        (10.7)
 Silver (g/t)             0.00   0.00   N/A       0.21       N/A       0.17       0.22        (26.0)

 

Gold production decreased against all comparable periods as the mine closure
process, which started in May 2023, continued as planned.

 

JUANICIPIO - ATTRIBUTABLE

 

                    4Q23*    3Q23*    % Change  4Q22**  % Change  FY23*    FY22**   % Change
 Ore Processed (t)  194,189  180,460  7.6       92,840  109.2     710,504  361,843  96.4

 Production
 Silver (koz)       2,523    2,678    (5.8)     1,042   142.2     9,415    5,180    81.8
 Gold (oz)          5,931    5,289    12.1      3,020   96.4      20,570   12,461   65.1
 Lead (t)           2,334    2,150    8.6       647     260.7     7,202    2,755    161.4
 Zinc (t)           3,832    3,227    18.8      1,119   242.5     11,368   4,521    151.5

 Ore Grades
 Silver (g/t)       467      523      (10.7)    415     12.5      472      520      (9.1)
 Gold (g/t)         1.37     1.32     3.5       1.31    4.1       1.27     1.39     (8.7)
 Lead (%)           1.35     1.33     1.5       0.84    61.0      1.15     0.90     27.3
 Zinc (%)           2.44     2.25     8.3       1.60    52.6      2.06     1.72     19.8

* Includes ore processed from initial tests during the commissioning of the
Juanicipio plant and ore processed at the Fresnillo and Saucito beneficiation
plants.

** Ore processed at the Fresnillo and Saucito beneficiation plants.

 

Attributable quarterly silver production decreased 5.8% vs. 3Q23 as stopes
with lower silver ore grade were mined from November in accordance with the
mine plan. This was partially mitigated by the higher volume of ore processed.

 

Attributable quarterly silver and gold production increased 142.2% and 96.4%
vs. 4Q22 respectively, due to the ramp-up following the commissioning
completed in 1Q23, and to a lesser extent, a higher ore grade.

 

Full year attributable silver and gold production increased 81.8% and 65.1%
vs. FY22 respectively, mainly due to the commissioning and subsequent ramp up
to full nameplate capacity at the flotation plant, partly offset by the lower
ore grades in accordance with the mine plan.

 

Attributable quarterly gold production increased 12.1% vs. 3Q23 mainly due to
the higher volume of ore processed.

 

The silver and gold ore grades for 2024 will be provided at the time of the
Company's preliminary results.

 

SILVERSTREAM

Quarterly silverstream production decreased 8.6% vs. 3Q23 mainly due to the
decrease in volumes of ore processed   and lower ore grade.

Quarterly silverstream production increased 36.2% vs. 4Q22 mainly due to a
technical stoppage in December 2022.

Full year silverstream production increased 5.2% vs. FY22 as a result of the
higher volume of ore processed, partly offset by the lower recovery rate and
lower ore grade.

Silver production in 2024 is estimated to be 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 eight operating mines, all of them in Mexico - Fresnillo,
Saucito, Juanicipio, Ciénega, Herradura, Soledad-Dipolos(1), Noche Buena and
San Julián (Veins and Disseminated Ore Body) and four advanced exploration
projects - Orisyvo, Rodeo, Guanajuato and Tajitos 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'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.

 

 1  (#_ftnref1) Au:Ag ratio of 80:1

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