TIDMFRES
RNS Number : 2441V
Fresnillo PLC
02 December 2019
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
2 December 2019
FRESNILLO PLC CAPITAL MARKETS DAY
Focus on stabilising production, improving operational
performance and project delivery
At a Capital Markets Day in London today, Fresnillo plc's
("Fresnillo" or "the Group") CEO Octavio Alvídrez and members of
his senior management team including CFO Mario Arreguín, VP
Exploration David Giles and COO Andre Sougarret, will provide an
update on the Group's current operational performance and set out
key management priorities for 2020. The presentation will include
detail on the extensive measures to stabilise and improve
production at Fresnillo's mines, as well as on the geological
models, exploration, development projects, capex and costs.
Octavio Alvídrez, Chief Executive said:
"Our priorities for 2020 are to stabilise production, and to
unlock the full potential of our current mines and projects. We
will focus on operational improvement and efficiency, while
de-risking and advancing our development pipeline, most notably the
new Juanicipio mine. We are confident that with the proactive
measures put in place at our mines, together with our consistent,
focused strategy, we will deliver on these priorities and that we
will continue to create sustained value for stakeholders in the
long-term, balancing growth with returns and maintaining a solid
financial position."
Fresnillo will also set out its broader ESG strategy in full,
including its enhanced approach to safety, an update on its
tailings dam management, how it works with the indigenous groups
and local communities, its commitment to reducing its carbon
footprint through efficiencies and the greater use of wind power,
and an extensive water stewardship strategy.
Key points from the presentation include:
Overall production outlook
The figures below represent management's best estimate of likely
production, based on the current geological models and anticipated
production improvements.
-- Fresnillo has narrowed its 2019 outlook to c. 885koz +/-1% of
gold and c. 55moz +/-1% of silver, both within stated guidance.
-- In 2020, Fresnillo expects to produce c. 54moz +/-5% of silver and c. 857koz +/-5% of gold.
-- In 2021, Fresnillo expects to produce c. 66moz +/-5% of silver and c. 785koz +/-5% of gold.
-- In 2022, Fresnillo expects to produce c. 71moz +/-5% of silver and c. 665koz +/-5% of gold.
The increase in silver production is explained by operation
improvements at the Fresnillo mine, the Pyrites plant, Juanicipio
and San Julián.
The decrease in gold production is driven by the planned Noche
Buena closure and lower production from Herradura.
Detailed mine by mine outlook:
SILVER OUTLOOK* Production (Moz) Grade (g/t)
2019 +/-1% 2022 +/-5% 2019 +/-1% 2022 +/-5%
----------- ----------- ----------- -----------
Fresnillo (inc. pyrite plant) 13.2 21.0 190 215
----------- ----------- ----------- -----------
Saucito (inc. pyrite plant) 18.4 18.0 227 211
----------- ----------- ----------- -----------
San Julián (Veins) 4.3 4.7 115 145
----------- ----------- ----------- -----------
San Julián (Disseminated
Ore Body) 8.6 11.4 139 197
----------- ----------- ----------- -----------
Ciénega 5.9 6.2 162 181
----------- ----------- ----------- -----------
*excludes contributions from Herradura and Juanicipio
GOLD OUTLOOK** Production (Koz) Grade (g/t)
2019 +/-1% 2022 +/-5% 2019 +/-1% 2022 +/-5%
----------- ----------- ---------------- ----------------
San Julián (Veins) 62.1 39.0 1.6 1.4
----------- ----------- ---------------- ----------------
San Julián (Disseminated
Ore Body) 2.4 2.5 0.1 0.1
----------- ----------- ---------------- ----------------
Ciénega 63.8 67.5 1.6 1.8
----------- ----------- ---------------- ----------------
Herradura 474.0 343.0 0.5(1) 1.5(2) 0.7(1) 1.1(2)
----------- ----------- ------- ------- ------- -------
Noche Buena 141.0 34.0 0.56 0.53
----------- ----------- ---------------- ----------------
1 Heap Leach
2 Dynamic Leaching Plant
**excludes contributions from Fresnillo, Saucito, Juanicipio and
Pyrites
Capex
The following figures only include sustaining capex from current
operations and growth capex of projects approved by the Board.
-- Total capital expenditure in 2019 is expected to be US$585
million with around US$65 million from Juanicipio being rescheduled
into 2020.
-- Sustaining and new project capex in 2020 is expected to be
around US$670 million, due to further investment across our current
operations, offset by the deferral of projects for approval
(Orisyvo and Ciénega Expansion) as we focus on current
operations.
-- Sustaining and new project capex forecast for 2021 is expected to be around US$475 million.
-- A forecast for 2022 is included for the first time at around US$415 million.
Presentation and Webcast
The presentation and webcast for the Capital Markets Day will be
available at www.fresnilloplc.com.
-Ends-
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
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.
LEI: 549300JXWH1UV5J0XV81
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCGBBDDSBGBGCD
(END) Dow Jones Newswires
December 02, 2019 02:00 ET (07:00 GMT)
Fresnillo (LSE:FRES)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fresnillo (LSE:FRES)
Historical Stock Chart
From Jul 2023 to Jul 2024