Fresnillo (FRES) Status Update summary

Operational performance

• Attributable silver production for Q3 2024 was 14.4 moz, down 1.5% vs. Q2, but up 2.4% year-on-year, driven by strong output at Saucito and San Julián Veins, offsetting declines at San Julián DOB and Fresnillo.

• Attributable gold production reached 156.8 koz, up 20.6% quarter-on-quarter and 18.2% year-on-year, mainly due to higher grades and processed volumes at Herradura and Fresnillo.

• By-product lead and zinc production increased both quarter-on-quarter and year-on-year, supported by higher ore grades and processed volumes at Fresnillo, Saucito, and Juanicipio.

• Safety remains a key focus, with a fatal accident reported at Ciénega mine in Q3; efforts continue to strengthen safety culture and achieve zero fatalities.

Mine-specific highlights

• Fresnillo mine saw stable silver output vs. Q2, but a 19.1% year-on-year decline due to lower ore grades and processed volumes; gold output rose 8.2% quarter-on-quarter.

• Saucito delivered a 3.4% quarterly and 27.8% annual increase in silver production, driven by higher ore grades and improved equipment availability.

• Ciénega's gold and silver output fell 11% and 11.7% quarter-on-quarter, but both rose year-to-date due to higher ore grades and increased processing from new areas.

• San Julián Veins posted higher silver and gold output year-on-year, while San Julián DOB continued to decline as it nears end of life.

• Herradura gold production rebounded 39.9% quarter-on-quarter after weather disruptions, with further improvement expected in Q4.

• Juanicipio saw a 2.2% increase in silver and 14.4% in gold output year-on-year as the plant reached full capacity.

2024 outlook and guidance

• Full-year guidance remains unchanged: attributable silver production expected at 55.0–62.0 moz (including Silverstream), gold at 580–630 koz.

• Total production in silver equivalent ounces is forecast at 101–112 million ounces.

• Mine-specific ore grade expectations for 2024: Fresnillo (silver 160–180 g/t, gold 0.70–0.90 g/t), Saucito (silver 200–220 g/t, gold 1.10–1.30 g/t), Ciénega (gold 1.1–1.3 g/t, silver 160–180 g/t), San Julián Veins (silver 200–230 g/t, gold 1.20–1.40 g/t), Herradura (gold 0.70–0.80 g/t), Juanicipio (silver 420–460 g/t).

• Silverstream production for 2024 is estimated at 2.0–2.5 moz.