16 - 17 May 2017 Dedicated to meeting our commitments
Disclaimer This document includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward- looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include, but are not limited to, statements regarding the Fresnillo Group’s intentions, beliefs or current expectations concerning, among other things, the Fresnillo Group’s results of operations, financial position, liquidity, prospects, growth, strategies and the silver and gold industries. By their nature, 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 exchange 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, political and economic uncertainty. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document speak only as of the date of this document, reflect the Fresnillo Group’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Fresnillo Group’s operations, results of operations, growth strategy and liquidity. Investors should specifically consider the factors identified in this document which could cause actual results to differ before making an investment decision. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules or applicable law, the Fresnillo Group explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this document that may occur due to any change in the Company’s expectations or to reflect events or circumstances after the date of this document. 2
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Fresnillo at a Glance – Value and Volume Location Key Highlights � World’s largest silver producer (50.3 moz in 2016) and Mexico’s HERRADURA DISTRICT largest gold producer (935.5 koz in 2016) ORISYVO � Total assets of US$4.3 billion 1 and market cap of US14.4 billion 2 SAN JULIÁN � Silver resources of 2.2 billion ounces and gold resources of 38.4 million are the foundation for creating long term value FRESNILLO � Growth potential supported by mining concessions of 1.8m CIÉNEGA DISTRICT DISTRICT hectares in Mexico and 350 thousand hectares in Peru � Margins sustained by cash costs and AISC amongst the lowest in the industry � Production target of 65 moz of silver and 750 koz of gold by SOUTH PERU 2018 � Substantial, high quality project pipeline and strong Fresnillo plc mines (7 and a satellite mine) 3 commitment to disciplined and sustainable growth Development projects (3) Advanced exploration projects (4) � Focus on greenfield and brownfield projects that can be Prospects in drilling developed into low-cost, world-class mines Prospects at an early stage 1 As of 31 Dec 2016 2 As at 12 May 2017 4 3 Operations at Soledad-Dipolos are currently suspended
Our Business Model and Strategy Our Business Model… …supported by four strategic pillars to create value 1. Maximise potential of existing operations • Operate at 100% capacity • Low-cost producer • Optimise mining method and metallurgy to maintain high recovery rates 2. Deliver growth through development projects • Track record of delivery on time and on budget • Focus on CAPEX control • Specialised Engineering and Construction team 3. Extend the growth pipeline • Evaluate early-state acquisitions • Maintain reserves for 10 years • Ensure organic growth and assess key acquisition opportunities 4. Advance sustainable development • Improve general health • Reinforce safety • Minimise our environmental impact • Maintain sound relations with our communities 5
2016 Highlights � Silver production of 50.3 moz, up 7.1% vs. 2015 � Gold production of 935.5 koz, up 22.8% vs. 2015 � C1 and AISC lowered at all mines vs. 2015 � Operating profit US$676.5 million, up 237.5% on 2015 � EBITDA US$1,032.0 million, up 88.5% on 2015 � Net operating cash flow of US$898.0 million, up 65.4% � Cash and Investments: US$912 million � San Julián phase I commissioned (average annual production of 10.5m silver eq. ounces) 2017 Updates � After two consecutive years of operating challenges, the Fresnillo mine is now showing positive signs of the turnaround plan � San Julián phase II currently undergoing initial tests – commissioning expected on schedule, in 2Q17 (average annual production of 14.8m silver eq. ounces) � On track to achieve our 2017 production guidance of 58-61 moz silver (including 4.0 moz from silverstream) and 870-900 koz gold 6
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Operations Fresnillo Saucito Key operating statistics 2016 Key operating statistics 2016 Silver production – moz 15.9 Silver production – moz 21.9 Gold production – koz 42.4 Gold production – koz 86.2 Cost per tonne – US$/t 43.9 Cost per tonne – US$/t 36.8 Cash cost - US$/oz of Ag 2.09 Cash cost - US$/oz of Ag -0.39 Reserves 2016 Reserves 2016 205.5 moz Ag, 0.6 moz Au 123.2 moz Ag, 0.9 moz Au Resources 2016 798.2 moz Ag, 1.72 moz Au Resources 2016 421.5 moz Ag, 2.1 moz Au 2016 Achievements 2016 Achievements • After two years of operational challenges, the mine was • Plant running 30% above Nom. Capacity @ 7,800 tpd stabilised • Increased Ag & Au resources 12.8% & 16.7% respectively • Number of production stopes to allow for greater 2017 targets to sustain production in the future operational flexibility was increased 2017 targets to consolidate turnaround plan • Jarillas Shaft extension & deepening of six development • Reach a development rate of 4,800m/m by year end ramps to sustain production in the future • 7-10% increase in Ag production and a stable ore grade • Increase development rates to 4,000m per month • S.Carlos Shaft extension & vertical conveyor installation • Improve infrastructure inc. maintenance areas & ventilation 8
Operations Cont. Ciénega San Julián (Phase I & II) Key operating statistics 2016 Key operating statistics Aug-Dec 2016 Silver production – moz 5.1 Gold production – koz 31.4 Gold production – koz 72.9 Silver production – moz 2.1 Cost per tonne – US$/t 55.5 Reserves 2016 135.3 moz Ag, 0.4 moz Au Cash cost - US$/oz of Ag -217.2 Resources 2016 187.0 moz Ag, 0.8 moz Au Reserves 2016 66.3 moz Ag, 0.8 moz Au 2016 Achievements Resources 2016 159.2 moz Ag, 1.6 moz Au • Start up of Phase I in August (average annual production 2016 Achievements of 10.5m silver eq. ounces) • Plant running 20% above Nom. capacity @ 3,600 tpd • Development & Preparation of two Satellite mines for operational flexibility – Taspana Mine & Tajos Mine 2017 targets 2017 Priorities • Commissioning of Phase II in 2Q17 (average annual production of 14.8m silver eq. ounces) • Continue development of Rosario & Las Casas • Phase I plant ramp-up to 4,000 tpd target • Ciénega expansion evaluation progressing San Julián cost per tonne and cash cost figures are not represented as it started up in August (5 months) and most ore processed came from the development stockpile 9
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