TIDMFRES
RNS Number : 2207B
Fresnillo PLC
29 January 2020
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
29 January 2020
FOURTH QUARTER PRODUCTION REPORT
FOR THE THREE MONTHSED 31 DECEMBER 2019
Octavio Alvídrez, Chief Executive Officer, said:
"Silver and gold production is up on the previous quarter as we
begin to see the impact of our performance improvement plan, which
includes intensive infill drilling to improve the certainty of the
geological model, dilution control and raising development rates,
together with actions to address contractor productivity and
equipment availability. Full year silver and gold production is in
line with our updated guidance.
"As we set out at our capital markets day in December, we are
determined to drive better performance from our core assets and we
will continue to implement our mine improvement plan throughout the
year. Though grades remain variable as we update and refine our
geological models, we continue to process higher volumes of ore on
a consistent basis, and as a result, our 2020 forecasts are
unchanged."
TOTAL PRODUCTION
4Q19 3Q19 % Change 4Q18 % Change FY 19 FY 18 % Change
Silver (koz) 13,131 12,624 4.0 14,647 -10.4 51,764 58,079 -10.9
--------- --------- --------- --------- --------- --------- --------- ---------
Silverstream
(koz) 643 659 -2.4 860 -25.2 2,850 3,725 -23.5
--------- --------- --------- --------- --------- --------- --------- ---------
Total Silver
(koz) 13,775 13,283 3.7 15,507 -11.2 54,614 61,804 -11.6
--------- --------- --------- --------- --------- --------- --------- ---------
Gold (oz) 233,744 209,752 11.4 232,026 0.7 875,913 922,527 -5.1
--------- --------- --------- --------- --------- --------- --------- ---------
Lead (t) 14,997 15,561 -3.6 15,252 -1.7 55,722 53,181 4.8
--------- --------- --------- --------- --------- --------- --------- ---------
Zinc (t) 24,832 25,340 -2.0 24,531 1.2 92,578 88,520 4.6
--------- --------- --------- --------- --------- --------- --------- ---------
HIGHLIGHTS
Silver
-- Quarterly silver production of 13.8 moz (including
Silverstream), up 3.7% vs. 3Q19 driven by higher ore grades at both
San Julián Disseminated Ore Body (DOB) and Saucito.
-- Quarterly silver production (including Silverstream), down
11.2% vs. 4Q18 due to the expected lower ore grade at Saucito, as
well as a lower volume of ore processed and ore grade at San Julián
Veins.
-- Full year silver production of 54.6 moz (including
Silverstream), down 11.6% vs. FY18 as a result of the expected
lower ore grade at Saucito as well as lower than expected ore
grades at Fresnillo and San Julián Veins and DOB.
Gold
-- Quarterly gold production of 233.7 koz increased 11.4% vs.
3Q19 mainly driven by a higher volume of ore processed, ore grade
and overall rate of recovery at Herradura, partially offset by a
lower ore throughput and ore grade at Noche Buena.
-- Quarterly gold production remained flat vs. 4Q18 as increases
in production at Herradura were offset by a lower volume of ore
processed at Noche Buena and lower ore grade and volume of ore
processed at San Julián Veins.
-- Full year gold production of 875.9 koz decreased 5.1% vs.
FY18 due to the expected lower production from Noche Buena and a
lower ore grade at San Julián Veins. This was mitigated by a higher
ore grade at Fresnillo and a higher volume of ore processed and ore
grade at Herradura.
By-Products
-- Quarterly by-product lead production decreased 3.6% vs. 3Q19
driven by a lower volume of ore processed and ore grade at
Fresnillo, mitigated by higher ore grades at both Saucito and San
Julián DOB.
-- Quarterly by-product lead production decreased 1.7% vs. 4Q18
due to a lower ore grade and recovery rate at Saucito, mitigated by
a higher volume of ore processed and ore grade at Fresnillo.
-- Full year by-product lead production increased 4.8% vs. FY18
due to a higher ore grade at Fresnillo, higher recovery rate at San
Julián DOB and a higher ore grade and recovery rate at Ciénega,
offset by lower production at Saucito.
-- By-product zinc production decreased 2.0% vs. 3Q19 due to a
lower volume of ore processed at Fresnillo and lower ore grades at
Ciénega and San Julián DOB, mitigated by a higher ore grade at
Saucito.
-- By-product zinc production increased 1.2% vs. 4Q18 mainly as
a result of a higher ore grade and volume of ore processed at
Fresnillo and a higher ore grade at Ciénega, offset by lower ore
grades at both Saucito and San Julian DOB.
-- Full year by-product zinc production increased 4.6% vs. FY18
mainly due to a higher ore grade and recovery rate at Ciénega.
Development Projects
-- Since the Capital Markets Day held in December last year,
progress on projects continues. A fuller update on our development
projects and exploration programme will be provided alongside our
preliminary results, due to be announced on 3rd March 2020.
2020 Outlook
-- Silver production expected to be in the range of 51 to 56 moz, including Silverstream.
-- Gold production expected to be in the range of 815 to 900 koz.
Full Year Financial Results
-- Fresnillo will announce its full year 2019 results on 3rd March 2020.
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
Patrick Chambers
Mexico City Office Tel: +52 55 52 79 3206
Ana Belem Zárate
POWERSCOURT Tel: +44 (0)20 7250 1446
Peter Ogden
MINING OPERATIONS
FRESNILLO MINE PRODUCTION
4Q 19 3Q 19 % change 4Q 18 % change FY 19 FY 18 % change
Ore Processed
(t) 618,940 648,646 -4.6 571,330 8.3 2,461,785 2,443,440 0.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,192 3,408 -6.3 3,244 -1.6 13,007 15,117 -14.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 11,723 15,601 -24.9 10,437 12.3 52,259 42,290 23.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 5,665 7,037 -19.5 3,867 46.5 21,472 19,619 9.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 9,348 10,225 -8.6 6,153 51.9 31,530 31,094 1.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 181 183 -1.1 199 -9.0 185 214 -13.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.82 0.99 -17.2 0.76 7.9 0.89 0.70 27.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 1.08 1.24 -12.9 0.79 36.7 1.01 0.90 12.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 2.10 2.14 -1.9 1.52 38.2 1.80 1.75 2.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production was down 6.3% vs. 3Q19 due to
unscheduled staff absences over the holiday period. This resulted
in a lower volume of ore processed from both production stopes and
development areas.
Full year silver production decreased 14.0% vs FY18 due to a
lower silver ore grade resulting from higher dilution, differences
with the geological model and limited access to higher ore grade
areas caused by delays in development, all factors previoulsy
described and being addressed with the mine improvement plan.
Quarterly silver production decreased 1.6% vs. 4Q18 driven by a
lower ore grade for the reasons described above, mitigated by a
higher volume of ore processed due to the improved operational
continuity in 4Q19.
We continue to work on controlling dilution with the use of more
efficient and accurate topographic scanners, improved blasting and
drilling techniques enabling us to adjust to the narrower vein
widths in the mine. We continued to implement initiatives to
increase efficiency and reduce downtime to improve operational
continuity. The infill drilling programme which will increase the
certainty of the geological model is progressing well.
Development rates were up vs. 4Q18 to just over 2,900 metres per
month in 4Q19 (4Q18: 2,500 metres), though down on the previous
quarter (3Q19: 3,200 metres per month) for the reasons explained
above. The tunnel boring machine was commissioned and began
operations during the quarter. The machine will ramp up in 1Q20
which, together with a new contractor that was hired and began
operating in January this year, will contribute to an increase in
development rates to between 3,400-3,800 metres a month by the end
of 2020.
Quarterly by-product gold production decreased 24.9% vs. 3Q19
driven by a lower ore grade, and to a lesser extent, lower volume
of ore processed and recovery rate. Against 4Q18, quarterly
by-product gold increased 12.3% due to a higher volume of ore
processed and ore grade, offset by a lower recovery rate.
Simillarly, Full year by-product gold production increased 23.6%
vs. FY18 as a result of a higher ore grade.
Silver ore grade in 2020 is expected to be in the range of 185
to 200 g/t, while gold ore grade is estimated to be between 0.85 to
0.90 g/t.
SAUCITO MINE PRODUCTION
4Q 19 3Q 19 % change 4Q 18 % change FY 19 FY 18 % change
Ore Processed
(t) 721,963 703,002 2.7 693,608 4.1 2,752,638 2,792,057 -1.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 4,280 4,040 6.0 4,890 -12.5 17,160 19,781 -13.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 21,727 21,096 3.0 22,932 -5.3 79,539 86,092 -7.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 5,418 4,906 10.4 8,362 -35.2 20,764 22,662 -8.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 7,658 6,655 15.1 10,132 -24.4 29,365 29,506 -0.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 220 207 6.3 260 -15.4 228 258 -11.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.26 1.22 3.3 1.30 -3.1 1.19 1.25 -4.8
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.91 0.84 8.3 1.36 -33.1 0.90 0.94 -4.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 1.65 1.38 19.6 2.21 -25.3 1.57 1.61 -2.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly silver production increased 6.0% vs. 3Q19, primarily
driven by the expected higher ore grade in the quarter.
In line with our expectations, quarterly and full year silver
production decreased 12.5% and 13.3% vs. 4Q18 and FY18
respectively, though to a lesser extent than forecast. This was due
to a lower ore grade as a result of the gradual depletion of higher
ore grade areas as well as increased dilution as the Jarillas vein
narrows.
The gradual depletion of higher ore grade areas is anticipated
to continue in 2020, therefore we expect the silver ore grade to
average 200-220 g/t in the year.
We continued implementing initiatives to reduce dilution,
improve the mine's operational consistency while advancing the
infill drilling programme in order to increase the certainty of the
geological model. The enhanced operational performance in part has
been driven by improved development rates, increasing the
operational flexibility of the mine.
Quarterly by-product gold production increased 3.0% vs. 3Q19 due
to a higher ore grade and volume of ore processed, offset by a
lower recovery rate.
Quarterly by-product gold production decreased 5.3% vs. 4Q18
driven by a lower recovery rate and ore grade, mitigated by a
higher volume of ore processed. Similarly, full year by-product
gold production decreased 7.6% vs. FY18 due to a lower ore
grade.
Expected gold ore grade in 2020 will be around 0.95 g/t.
PYRITES PLANT (PHASE I)
4Q 19 3Q 19 % change 4Q 18 % change FY 19 FY 18 % change
Ore Processed
(t) 41,935 38,572 8.7 56,699 -26.0 167,513 131,780 27.1
------- ------- --------- ------- --------- -------- -------- ---------
Production
------- ------- --------- ------- --------- -------- -------- ---------
Silver (koz) 248 285 -12.9 470 -47.2 1,171 977 19.9
------- ------- --------- ------- --------- -------- -------- ---------
Gold (oz) 775 954 -18.8 1,952 -60.3 4,045 3,556 13.8
------- ------- --------- ------- --------- -------- -------- ---------
Ore Grades
------- ------- --------- ------- --------- -------- -------- ---------
Silver (g/t) 273 314 -13.1 348 -21.6 299 393 -23.9
------- ------- --------- ------- --------- -------- -------- ---------
Gold (g/t) 2.22 2.44 -9.0 2.5 -11.2 2.32 2.8 -17.1
------- ------- --------- ------- --------- -------- -------- ---------
Quarterly silver and gold production decreased 12.9% and 18.8%
vs. 3Q19 driven by a lower ore grade from the flotation plant and a
lower recovery rate, mitigated by a higher volume of ore
processed.
Similarly, quarterly silver and gold production decreased 47.2%
and 60.3% vs. 4Q18 due to the expected lower ore grade from the
flotation plant, volume of ore processed and recovery rate. This
follows the depletion of the pre-operative high grade stockpile
following the plant's start-up in mid-2018. Accordingly, comparing
figures vs. FY are not relevant.
In 2020, this plant is expected to recover around 1 moz silver
and 3 koz gold from the on-going Saucito tailings.
CIENEGA MINE PRODUCTION
4Q 19 3Q 19 % change 4Q 18 % change FY 19 FY 18 % change
Ore Processed
(t) 343,534 335,493 2.4 340,529 0.9 1,329,134 1,323,908 0.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 17,969 17,858 0.6 15,588 15.3 65,583 66,869 -1.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 1,492 1,384 7.8 1,703 -12.4 5,796 5,999 -3.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 1,678 1,826 -8.1 1,007 66.6 5,839 4,799 21.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 2,390 2,755 -13.2 1,767 35.3 8,986 5,892 52.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.75 1.78 -1.7 1.49 17.4 1.66 1.65 0.6
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 158 151 4.6 180 -12.2 159 164 -3.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.74 0.81 -8.6 0.48 54.2 0.67 0.60 11.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 1.17 1.35 -13.3 0.87 34.5 1.13 0.83 36.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Quarterly gold production remained flat vs. 3Q19, due to higher
volume of ore processed as a result of a more efficient maintenance
programme offset by a lower ore grade. During the same comparative
period, silver production increased 7.8% driven by a higher ore
grade.
Quarterly gold production increased 15.3% vs. 4Q18 due to a
higher ore grade. This resulted from the higher proportion of
material extracted from the eastern zone of the district with
higher gold content in 4Q19, compared to the lower ore grade
material extracted in 4Q18 from the deeper levels, in line with the
natural depletion of the mine.
Full year gold production slightly decreased vs. FY18 mainly due
to a lower recovery rate mitigated by a slightly higher ore grade
and volume of ore processed resulting from the efficiencies reached
in the maintenance programme.
Quarterly and full year by-product silver production decreased
12.4% and 3.4%, respectively when compared to the corresponding
periods of 2018 due to lower ore grade due to the eastern zone of
the district having a lower silver content.
The gold and silver ore grades for 2020 are expected to be
around 1.65 to 1.75 g/t and 155 to 165 g/t respectively.
SAN JULIÁN MINE PRODUCTION
4Q 19 3Q 19 % change 4Q 18 % change FY 19 FY 18 % change
Ore Processed Veins
(t) 281,552 321,798 -12.5 337,428 -16.6 1,265,030 1,270,781 -0.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Processed DOB
(t) 559,389 559,693 -0.1 587,905 -4.9 2,226,956 2,221,433 0.2
-------- -------- --------- -------- --------- ---------- ---------- ---------
Total production
at San Julián
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 13,923 14,234 -2.2 23,003 -39.5 64,600 82,344 - 21.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 3,387 3,080 10.0 3,904 -13.2 13,009 14,630 - 11.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 13,196 13,711 -3.8 22,065 -40.2 62,207 79,219 -21.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 952 1,035 -8.1 1,380 -31.0 4,317 5,434 -20.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Production DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (oz) 727 523 39.0 938 -22.5 2,393 3,125 -23.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (koz) 2,435 2,045 19.1 2,524 -3.5 8,692 9,196 -5.5
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (t) 2,235 1,792 24.7 2,017 10.8 7,648 6,101 25.4
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (t) 5,436 5,705 -4.7 6,479 -16.1 22,697 22,027 3.0
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades Veins
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 1.54 1.39 10.8 2.11 -27.0 1.61 2.01 -19.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 113.69 108.09 5.2 137.22 -17.1 115.40 144.06 -19.9
-------- -------- --------- -------- --------- ---------- ---------- ---------
Ore Grades DOB
-------- -------- --------- -------- --------- ---------- ---------- ---------
Gold (g/t) 0.08 0.07 14.3 0.10 -20.0 0.08 0.09 -11.1
-------- -------- --------- -------- --------- ---------- ---------- ---------
Silver (g/t) 153.64 130.13 18.1 158.09 -2.8 139.46 154.37 -9.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
Lead (%) 0.48 0.41 17.1 0.51 -5.9 0.44 0.43 2.3
-------- -------- --------- -------- --------- ---------- ---------- ---------
Zinc (%) 1.28 1.35 -5.2 1.48 -13.5 1.36 1.35 0.7
-------- -------- --------- -------- --------- ---------- ---------- ---------
SAN JULIÁN VEINS
Quarterly silver and gold production decreased 8.1% and 3.8%
respectively vs. 3Q19 driven by a lower volume of ore processed
following the transition to a new contractor as mentioned in the
previous quarter, mitigated by higher ore grades. To note, the
contractor fully ramped up during December.
Quarterly silver and gold production decreased 31.0% and 40.2%
vs. 4Q18 driven by the depletion of high ore grade areas at San
Julián and San Atanasio, in addition to a lower volume of ore
processed.
Full year silver and gold production decreased 20.5% and 21.5%
respectively vs. FY18 due to a lower ore grade, resulting from the
same reason as explained above.
Actions to control dilution are being implemented, including
improving drilling and blasting techniques. This is expected to
reduce ore grade variability and improve grade reconciliation going
forward.
The 2020 silver and gold ore grades are expected to remain flat
year on year, averaging 110-120 g/t and 1.6-1.7 g/t,
respectively.
SAN JULIÁN DISSEMINATED ORE BODY (DOB)
Quarterly silver production increased 19.1% vs. 3Q19 driven by a
temporary higher ore grade. As described in prior quarters, the
mine sequencing has been changed to maintain the geotechnical
stability of some high ore grade stopes which has had the desired
effect leading to no rock falls during the period. We expect to
regain access to these higher quality areas in 2H20. As a result,
the ore grade in 1H20 is expected to remain at similar levels to
those observed in 2H19.
Quarterly silver production decreased 3.5% vs. 4Q18 driven by a
lower volume of ore processed and to a lesser extent, ore grade,
mitigated by a higher recovery rate.
Full year silver production decreased 5.5% vs. FY18 driven by a
lower ore grade for reasons explained above, mitigated by a higher
recovery rate.
The silver ore grade for 2020 is expected to increase, within a
range of 140-150 g/t as we regain access to the higher quality
areas.
HERRADURA TOTAL MINE PRODUCTION
4Q 19 3Q 19 % change 4Q 18 % change FY 19 FY 18 % change
Ore Processed
(t) 6,172,932 5,591,746 10.4 4,707,145 31.1 22,926,542 22,156,792 3.5
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Total Volume
Hauled (t) 29,856,230 33,396,651 -10.6 26,592,044 12.3 127,637,495 124,024,351 2.9
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Production
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Gold (oz) 143,417 102,439 40.0 121,409 18.1 482,722 474,168 1.8
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Silver (koz) 518 412 25.7 427 21.3 1,563 1,523 2.6
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Ore Grades
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Gold (g/t) 0.78 0.71 9.9 0.88 -11.4 0.80 0.76 5.3
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Silver (g/t) 3.80 3.27 16.2 3.64 4.4 3.15 2.74 15.0
----------- ----------- --------- ----------- --------- ------------ ------------ ---------
Quarterly gold production increased 40.0% vs. 3Q19 driven by a
higher volume of ore processed, ore grade and recovery rate. This
followed a weaker 3Q19 due to a temporary lower ore grade resulting
from a lower availability of the dynamic leaching plant (DLP).
Further, with the start-up of operations at the 13(th) leaching pad
during 3Q19, this improved the overall speed of recovery in 4Q19
reducing the residence time of the solution on the pads.
Similarly, quarterly gold production increased 18.1% vs 4Q18 due
to a higher volume of ore processed following the start-up of
operations at the second DLP in November 2018. This increase in
gold production was offset by a lower ore grade in accordance with
the mine plan.
Full year gold production remained broadly flat, up 1.8% vs.
FY18 due to a higher ore grade and volume of ore processed
following the aforementioned start-up of operations at the 2(nd)
DLP, offset by a slower overall speed of recovery following the
delay in the construction of the 13(th) leaching pad.
The gold ore grade is expected to be remain flat year on year,
averaging 0.75-0.80 g/t during 2020.
NOCHE BUENA TOTAL MINE PRODUCTION
4Q 19 3Q 19 % change 4Q 18 % change FY 19 FY 18 % change
Ore Processed
(t) 2,376,495 3,215,167 -26.1 4,395,527 -45.9 12,166,900 18,195,744 -33.1
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Total Volume
Hauled (t) 10,244,063 11,447,273 -10.5 17,220,712 -40.5 48,621,485 80,304,953 -39.5
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Production
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (oz) 24,210 37,570 -35.6 36,705 -34.0 127,166 167,208 -23.9
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (koz) 14 14 0.7 9 55.6 58 52 11.5
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Ore Grades
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Gold (g/t) 0.55 0.58 -5.2 0.50 10.0 0.55 0.52 5.8
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Silver (g/t) 0.31 0.25 24.0 0.09 244.4 0.25 0.13 92.3
----------- ----------- --------- ----------- --------- ----------- ----------- ---------
Quarterly gold production decreased 35.6% vs. 3Q19 due to a
lower volume of ore processed, recovery rate and ore grade. This
was due to heavier than expected rainfall during November and
December which impeded operations.
Quarterly and full year gold production decreased 34.0% and
23.9% vs. 4Q18 and FY18 respectively driven by a lower volume of
ore processed, in-line with the mine plan, mitigated by the higher
ore grade and recovery rates.
The gold ore grade is expected to be in the range of 0.55 to
0.60 g/t in 2020.
SILVERSTREAM
Quarterly Silverstream production decreased 2.4% vs. 3Q19 driven
by a lower ore grade, mitigated by a higher volume of ore
processed.
Quarterly and full year Silverstream production decreased 25.2%
and 23.5% vs. 4Q18 and YTD18 respectively, due to the expected
lower ore grade resulting from narrower veins, as described in
previous quarters.
Silver production in 2020 is expected to be in the range of 2.7
- 3.0 moz.
SAFETY PERFORMANCE
There was a strong safety performance during the fourth quarter.
The "I Care We Care" programme continues to be rolled out across
our operations along with the reinforcement of our safety training
for all employees and contractors, to make safety the core priority
at every working area.
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 the San Ramón satellite
mine), Herradura, Soledad-Dipolos(1) , Noche Buena and San Julián
(Phase I and II), two development projects - the Pyrites Plant at
Fresnillo and Juanicipio, and three advanced exploration projects -
Orisyvo, Las Casas Rosario & Cluster Cebollitas and Centauro
Deep, 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.
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