REG - Fresnillo Plc - First Quarter Production Report
23/04/2025 07:00
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RNS Number : 7417F Fresnillo PLC 23 April 2025
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com (http://www.fresnilloplc.com)
23 April 2025
FIRST QUARTER PRODUCTION REPORT
FOR THE THREE MONTHS ENDED 31 MARCH 2025
Octavio Alvídrez, Chief Executive Officer, said:
"We have started 2025 in line with our expectations, delivering a stable
operating performance and maintaining the momentum we achieved in 2024. Our
full year guidance remains unchanged. Silver production is down as
anticipated, as we account for the impact of cessation of mining activities at
the San Julián DOB, although we expect to see a stronger second half
performance. Gold production is up on the same period last year, driven by a
continued strong performance at Herradura, as well as the benefit of
processing gold inventories accumulated in the previous period. With those
inventories now depleted, we expect gold production to normalise in line with
our guidance.
Overall, our operations remain well-aligned with our plan, positioning us well
to capitalise on stronger precious metals prices. Cost discipline remains a
key focus, supported by a favourable Mexican peso USD exchange rate. We are
focused on sustaining our operational stability, maintaining our strong
financial performance and delivering value to our stakeholders throughout
2025, with our core priority as always being the safety of our people and the
well-being of our communities."
HIGHLIGHTS
Silver
· Quarterly attributable silver production of 12.4 moz (including
Silverstream) was down 9.7% vs. 4Q24 primarily due to lower ore grade and
volume of ore processed at Saucito, the cessation of mining activities at San
Julián DOB and lower volume of ore processed at San Julián Veins. This was
partly mitigated by the higher ore grade at Fresnillo.
· Quarterly attributable silver production (including Silverstream)
decreased 8.4% vs. 1Q24, mainly due to the cessation of mining activities at
San Julián DOB and a decreased ore grade and volume of ore processed at
Ciénega, partly mitigated by the higher production from the Silverstream and
increased ore grade at Fresnillo.
Gold
· Quarterly attributable gold production of 156.1 koz, down 23.5% vs.
4Q24, primarily due to the decrease in volumes of ore processed and lower ore
grade at Herradura, Saucito, Fresnillo and Ciénega, and a lower contribution
from Noche Buena.
· Quarterly attributable gold production increased 10.8% vs. 1Q24
primarily due to the higher ore grade, increased volume of ore processed and
recovery rates at Herradura, offset by the lower ore grade at Saucito and
lower ore grade and volume of ore processed at Ciénega.
By-Products
• Quarterly attributable by-product lead production decreased 10.9%
vs. 4Q24 due to the lower ore grade and volume of ore processed at Fresnillo
and Ciénega and the cessation of operations at San Julián DOB partly
mitigated by the higher ore grade at Juanicipio.
• Quarterly attributable by-product zinc production decreased 12.8%
vs. 4Q24 mainly due to the lower ore grade and volume of ore processed at
Fresnillo, the cessation of operations at San Julián DOB and lower ore grade,
volume of ore processed and recovery rate at Ciénega, partly mitigated by
higher ore grade at Juanicipio and Saucito.
• Quarterly attributable by-product lead production remained flat
when compared to 1Q24 due to the higher ore grade at Saucito, offset by the
decreased contribution from San Julián DOB.
• Quarterly attributable by-product zinc production decreased vs.
1Q24 primarily due to the lower contribution from San Julián DOB and lower
volume of ore processed at Fresnillo, partly mitigated by the higher ore grade
at Saucito.
1Q25 4Q24 % Change 1Q24 % Change
Silver (koz) 11,889 13,219 (10.1) 13,117 (9.4)
Silverstream (koz) 488 481 1.5 397 22.9
Total Silver (koz) 12,377 13,700 (9.7) 13,513 (8.4)
Gold (oz) 156,105 203,942 (23.5) 140,847 10.8
Lead (t) 15,030 16,863 (10.9) 14,924 0.7
Zinc (t) 25,249 28,951 (12.8) 26,157 (3.5)
SAFETY PERFORMANCE
We remain committed to instilling a true culture of safety across our business
and to meeting our Zero Fatalities target. We continue to work to identify
preventive measures, focusing on training and maintaining stringent adherence
to our safety policies to provide a safer environment for our workforce.
2025 OUTLOOK
Our 2025 outlook is in line with previous guidance:
Attributable silver production expected to be in the range of 49.0 to 56.0 moz
(including Silverstream).
Attributable gold production expected to be in the range of 525.0 to 580 koz.
Attributable lead production expected to be in the range of 56 to 62 kt.
Attributable zinc production expected to be in the range of 93 to 103 kt.
Expressed in silver equivalent ounces 1 , total production is expected to be
91-102 million ounces.
2026 and 2027 expected production is unchanged.
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
SODALI
Peter Ogden Tel: +44 (0)7793 858 211
MINING OPERATIONS
FRESNILLO MINE PRODUCTION
1Q25 4Q24 % Change 1Q24 % Change
Ore Processed (t) 518,474 543,457 (4.6) 622,390 (16.7)
Production
Silver (koz) 2,733 2,393 14.2 2,676 2.1
Gold (oz) 10,685 13,922 (23.2) 9,846 8.5
Lead (t) 5,698 6,938 (17.9) 6,191 (8.0)
Zinc (t) 11,096 13,409 (17.3) 11,668 (4.9)
Ore Grades
Silver (g/t) 181 151 19.7 151 20.0
Gold (g/t) 0.86 1.06 (19.0) 0.66 29.8
Lead (%) 1.29 1.49 (13.7) 1.15 11.8
Zinc (%) 2.92 3.25 (9.9) 2.58 13.3
Quarterly silver production increased 14.2% vs. 4Q24 driven by the higher ore
grade and decreased dilution following the optimisation of the development of
narrower veins. These factors offset the lower volume of ore processed due to
the lower availability of ore at the flotation plant while the operation of
the deepened San Carlos shaft was optimised following its commissioning in
4Q24. This process has been concluded and volumes of ore processed are
expected to increase in the coming months.
Mine development rates decreased to an average of 2,916m per month in 1Q25
(3,424m per month in 4Q24) due to lower equipment availability. Maintenance
and repair to the equipment has been carried out and development rates are
expected to increase in the second quarter.
Quarterly silver production remained at similar levels when compared to the
1Q24 as the higher ore grade compensated for the lower volume of ore
processed.
Quarterly gold production decreased 23.2% vs 4Q24 mainly due to lower ore
grade and volume of ore processed as previously mentioned.
Quarterly gold production increased 8.5% vs. 1Q24 driven by the higher ore
grade, partly mitigated by the decreased volume of ore processed.
The silver ore grade in 2025 is expected to be in the range of 160 to 180 g/t,
while the gold ore grade is estimated to be between 0.60 to 0.70 g/t.
SAUCITO MINE PRODUCTION
1Q25 4Q24 % Change 1Q24 % Change
Ore Processed (t) 563,068 599,028 (6.0) 574,969 (2.1)
Production
Silver (koz) 3,185 3,967 (19.7) 3,234 (1.5)
Gold (oz) 13,754 25,205 (45.4) 19,343 (28.9)
Lead (t) 6,368 6,425 (0.9) 4,908 29.7
Zinc (t) 9,449 9,213 2.6 6,694 41.2
Ore Grades
Silver (g/t) 199 231 (13.9) 198 0.6
Gold (g/t) 1.01 1.67 (39.7) 1.35 (25.2)
Lead (%) 1.31 1.25 4.8 1.00 31.1
Zinc (%) 2.14 1.96 9.6 1.52 40.9
Quarterly silver production decreased 19.7% vs. 4Q24 due to increased dilution
and a lower ore grade compared to the higher ore grades from long hole
drilling in the Alamito and Roble areas in 4Q24. The lower volume of ore
processed driven by the decreased availability of contractors' bolting
equipment and the lower volume extracted from the Central, Natalias and
Mezquite areas further impacted silver production. This equipment is being
replaced and additional training is being given with the objective of
increasing the availability and productivity of this equipment in the second
quarter.
Quarterly silver production was in line with 1Q24 as the lower volume of ore
processed driven by the previously mentioned factors was partially compensated
for by the slightly higher ore grade from the cut and fill western areas.
Quarterly gold production decreased vs. 4Q24 and 1Q24 due to the lower ore
grade and decrease in volume of ore processed.
Mine development rates decreased to 2,392m per month in 1Q25 (4Q24: 2,527m per
month) primarily due to the decreased availability of contractors' bolting
equipment as mentioned above.
The silver ore grade for 2025 is expected to be in the range of 200-220 g/t,
while the gold grade is estimated to be between 0.90-1.10 g/t.
PYRITES PLANT
1Q25* 4Q24* % Change 1Q24* % Change
Pyrite Concentrates Processed (t) 35,275 40,917 (13.8) 36,344 (2.9)
Production
Silver (koz) 474 566 (16.3) 356 33.1
Gold (oz) 675 1,024 (34.1) 628 7.5
Ore Grades
Silver (g/t) 572 590 (3.1) 497 15.1
Gold (g/t) 2.15 2.68 (19.8) 2.15 0.0
*Includes concentrates of Fe from Saucito and Fresnillo.
JUANICIPIO - ATTRIBUTABLE
1Q25 4Q24 % Change 1Q24 % Change
Ore Processed (t) 188,730 186,823 1.0 182,383 3.5
Production
Silver (koz) 2,503 2,384 5.0 2,489 0.5
Gold (oz) 5,711 5,063 12.8 5,559 2.7
Lead (t) 2,686 2,510 7.0 2,211 21.5
Zinc (t) 4,291 3,971 8.1 3,722 15.3
Ore Grades
Silver (g/t) 430 417 3.1 476 (9.8)
Gold (g/t) 1.24 1.15 7.9 1.32 (6.5)
Lead (%) 1.61 1.49 7.5 1.35 19.0
Zinc (%) 2.90 2.79 3.8 2.49 16.1
Attributable quarterly silver production increased 5.0% vs. 4Q24 mainly driven
by the higher ore grade due to increased dilution control and the higher
volume of ore processed.
Attributable quarterly silver production was in line vs. 1Q24 as improved
recovery rates and the higher volume of ore processed given the optimisation
of the maintenance programme compensated for the lower ore grade.
Attributable gold production increased 12.8% vs. 4Q24 due to the higher ore
grade, improved recovery rate and the increase in volume of ore processed as
mentioned above.
Attributable gold production increased 2.7% vs. 1Q24 mainly due to a higher
recovery rate and the increased volume of ore processed which more than
compensated for the lower ore grade.
The silver ore grade in 2025 is expected to be in the range of 380-430 g/t,
while the gold grade is estimated to be between 1.2-1.4 g/t.
CIÉNEGA MINE PRODUCTION
1Q25 4Q24 % Change 1Q24 % Change
Ore Processed (t) 229,647 267,103 (14.0) 261,681 (12.3)
Production
Gold (oz) 8,144 9,866 (17.5) 10,688 (23.8)
Silver (koz) 889 1,035 (14.1) 1,201 (26.0)
Lead (t) 277 618 (55.1) 652 (57.5)
Zinc (t) 413 892 (53.8) 832 (50.4)
Ore Grades
Gold (g/t) 1.20 1.25 (4.1) 1.38 (13.1)
Silver (g/t) 140 141 (0.9) 166 (15.4)
Lead (%) 0.24 0.39 (38.6) 0.40 (40.5)
Zinc (%) 0.36 0.59 (39.1) 0.59 (38.9)
Quarterly gold production decreased 17.5% vs. 4Q24 and 23.8% vs. 1Q24 due to
the decrease in volume of ore processed given the lower availability of
bolting equipment, causing some delays in production although it is expected
to be recovered during the second half of the year. Additionally, less ore
extracted from high ore grade areas such as Jessica Transversal and Vetas
Angostas, as well as higher dilution at the Taspana area, which is approaching
the end of its operation, contributed to the lower gold production. Recovery
plans in place and higher grade zones expected in Q3 and Q4 maintain expected
production in 2025 aligned with the plan.
Quarterly silver production decreased 14.1% vs. 4Q24 mainly due to the lower
volume of ore processed.
Quarterly silver production decreased 26.0% vs. 1Q24 given the lower ore grade
and volume of ore processed.
The gold and silver ore grades for 2025 are estimated to be in the ranges of
1.1-1.3 g/t and 130-150 g/t respectively.
SAN JULIÁN MINE PRODUCTION
1Q25 4Q24 % Change 1Q24 % Change
Ore Processed Veins (t) 292,574 329,250 (11.1) 291,003 0.5
Production Veins
Gold (oz) 12,088 13,394 (9.7) 11,973 1.0
Silver (koz) 1,979 2,287 (13.5) 2,039 (2.9)
Ore Grades Veins
Gold (g/t) 1.36 1.31 3.3 1.35 0.1
Silver (g/t) 231 234 (0.9) 239 (3.2)
SAN JULIÁN VEINS
Quarterly silver production decreased 13.5% vs. 4Q24 mainly due to the lower
volume of ore processed driven by an electrical fault that affected the ball
mill and required an unplanned maintenance stoppage in February.
Quarterly gold production decreased 9.7% vs. 4Q24 due to lower volume of ore
processed partially mitigated by the higher ore grade. Quarterly gold
production was in line with 1Q24.
Silver and gold ore grades in 2025 are expected to be in the ranges of 210-230
g/t and 1.10-1.30 g/t respectively.
SAN JULIÁN DISSEMINATED ORE BODY (DOB)
Mining activities concluded in November 2024 as per previous guidance.
HERRADURA TOTAL MINE PRODUCTION
1Q25 4Q24 % Change 1Q24 % Change
Ore Processed (t) 5,096,357 6,032,903 (15.5) 4,695,531 8.5
Total Volume Hauled (t) 24,540,480 22,309,345 10.0 22,140,776 10.8
Production
Gold (oz) 101,424 129,882 (21.9) 78,058 29.9
Silver (koz) 125 187 (33.1) 119 4.6
Ore Grades
Gold (g/t) 0.76 0.85 (10.1) 0.67 14.5
Silver (g/t) 1.16 1.37 (15.4) 1.32 (12.2)
Quarterly gold production decreased 21.9% vs. 4Q24 mainly due to the decrease
in volume of ore processed and lower ore grade following an extraordinary
performance in 4Q24, in line with the production plan.
Quarterly gold production increased 29.9% vs. 1Q24 as a result of higher ore
grade from planned areas and additional gold inventories processed in 1Q25,
whereas mining activities in 1Q24 were disrupted by heavy rain.
The average gold ore grade in 2025 is expected to be in the range of 0.50-0.70
g/t.
NOCHE BUENA
3,624 ounces of gold were recovered from the leaching pads at Noche Buena in
1Q25, a 33.0% decrease when compared to 4Q24 and 12.5% when compared to 1Q24.
As previously announced, mining activities concluded in May 2023, and the
closure mine plan continues as expected.
SILVERSTREAM
Quarterly silverstream production was line with the 4Q24 mainly due to higher
ore grade and improved recovery rate, which compensated for the lower volume
of ore processed.
Quarterly silverstream production increased 22.9% vs. 1Q24 due to a higher
volume of ore processed, partly offset by the lower recovery rate.
We continue to evaluate the operational and financial situation at the Sabinas
mine, as outlined with our FY24 results and we will update the market with any
further detail in due course.
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 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 Silver eq. ounces are calculated converting only gold into silver ounces
with an Au:Ag ratio of 80:1. Lead and zinc production is not included in
silver eq. ounces.
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