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BofAML Global Metals, Mining & Steel Conference 201513 May 2015
Octavio Alvídrez, CEOFresnillo plc
LSE: FRES BMV: FRESwww.fresnilloplc.com
“Well placed to address cyclical uncertainties”
2
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, theirnegative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, futureevents or intentions. These forward-looking statements include all matters that are not historical facts. They appear in anumber of places throughout this document and include, but are not limited to, statements regarding the FresnilloGroup’s intentions, beliefs or current expectations concerning, among other things, the Fresnillo Group’s results ofoperations, 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 andcircumstances. Forward-looking statements are not guarantees of future performance and the actual results of theFresnillo Group’s operations, financial position and liquidity, and the development of the markets and the industry inwhich the Fresnillo Group operates, may differ materially from those described in, or suggested by, the forward-lookingstatements contained in this document. In addition, even if the results of operations, financial position and liquidity, andthe 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 ordevelopments in subsequent periods. A number of factors could cause results and developments to differ materiallyfrom those expressed or implied by the forward-looking statements including, without limitation, general economic andbusiness 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 ordevelop new reserves, including its ability to convert its resources into reserves and its mineral potential into resourcesor 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 inthis document speak only as of the date of this document, reflect the Fresnillo Group’s current view with respect tofuture events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating tothe Fresnillo Group’s operations, results of operations, growth strategy and liquidity. Investors should specificallyconsider the factors identified in this document which could cause actual results to differ before making an investmentdecision. Subject to the requirements of the Prospectus Rules, the Disclosure and Transparency Rules and the ListingRules or applicable law, the Fresnillo Group explicitly disclaims any obligation or undertaking publicly to release theresult of any revisions to any forward-looking statements in this document that may occur due to any change in theCompany’s expectations or to reflect events or circumstances after the date of this document.
Disclaimer
3
Fresnillo at a Glance
Location Key Highlights
� World’s largest silver producer and Mexico’s second largest gold producer
� Market cap of US$8 billion*
� Mining concessions of 2m hectares in Mexico and 370 thousand hectares in Peru
� Cash costs and AISC amongst the lowest in the industry
� Production target of 65 moz of silver and 750 koz of gold by 2018
� Substantial, high quality project pipeline and strong commitment to disciplined and sustainable growth
� Strategy of consolidating districts – 2014 acquisition of Newmont Mining’s 44% in Penmont JV with operating assets and several exploration projects in the prospective Herradura region
� Focus on projects that can be developed into low-cost, world-class mines
* As at 5 May 2015** Operations at Soledad-Dipolos are currently suspended
Fresnillo plc mines (6 and a satellite mine)**
Development projects (2)
Advanced exploration projects (4)
Prospects in drilling
Prospects at an early stage
SOUTH PERU
HERRADURA DISTRICT
CIÉNEGADISTRICT
FRESNILLO DISTRICT
ORISYVO
SAN JULIÁN
4
Our Business Model and Strategy
Our Business Model+
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 the environmental impact• Maintain sound relations with communities
+supported by four strategic pillars to createvalue
5
Mining Districts
HERRADURA DISTRICT
Mines: Herradura, Soledad and Noche Buena2014 production: 394.8k oz goldResources: 8.95 Moz goldNew facilities: Dynamic Leaching PlantExploration: Centauro Deep, Tajitos, Choya, San Javier, Las Norias, El Nudo, Carina, Cerritos, El Dorado
FRESNILLO DISTRICT
Mines: Fresnillo and Saucito2014 production: 35.5 Moz silver, 92.9k oz goldResources: 1,200.2 Moz silver, 3.20 Moz goldProjects: Pyrites plantExploration: Juanicipio, Las Natalias
CIÉNEGA DISTRICT
Mines: Ciénega and San Ramón satellite mine2014 production: 108.2k oz gold, 4.1 Moz silverResources: 1.58 Moz gold, 142.4 Moz silverExploration: Cluster cebollitas, Manzanillas, Pereñita, La Huerta
6
Districts of the Future
SAN JULIÁN
Under constructionSilver-gold veins and disseminated ore bodyResources: 190 Moz silver, 860 koz goldApproved CAPEX: US$515mFlotation plant with 6,000 tpd capacityDynamic leaching plant with 3,000 tpd capacityAverage expected level of production: 10.3 Moz silver and 44koz of gold
ORISYVO
Porphyry system
Resources: 8.7 Moz gold
Preparation of a preliminary economic assessment
7
2014 Operational Highlights
• Maximise the potential of existing operations
– Annual silver production (including Silverstream) up 4.9% to 45.0 moz
– Optimised milling capacity to 4,000 tpd at Ciénega
– Reached full capacity at Noche Buena following plant expansion
• Deliver growth through development projects
– Saucito II (silver mine expansion) commenced on time and on budget; San Julián (silver and gold project)
on track to start production in 4Q15
– Acquired Newmont’s 44% stake in Penmont: consolidating assets we operate; entrenching leadership in
the Herradura Corridor
– Construction of pyrites plant to improve precious metal recovery approved
8
2014 Operational Highlights
• Extend the growth pipeline
– Despite lower price assumptions1, total gold and silver reserves rose 45% and 21% respectively; gold
resources rose 2%
– Gold reserves and resources at Centauro pit grew 96% and 32% respectively; evaluated Mega Centauro
expansion as natural evolution of Herradura pit
– Continuing exploration at Centauro Deep
– Preparation of Las Casas-Rosario veins (Ciénega)
– Good progress at key exploration projects: Cebollitas, Guanajuato, Candameña, Rodeo, Pilarica
• Advance sustainable development
– HSECR system reached overall maturity of 84% (vs 77% in 2013)
– Obtained industry standard OHSAS 18001 certification at Penmont, Ciénega and Fresnillo
– Obtained the Mexican “Healthy Company” certification at Penmont and exploration HQ in Chihuahua
– Launched SafeStart at Fresnillo and Ciénega complementing existing behavioural safety initiatives
– Conducted a Great Place to Work® survey and achieved certification
1 Au price: $1,150/oz, Ag price: $18.0/oz
9
2014 Production Overview
2014 PRODUCTION* 2013 PRODUCTION*
SILVER(Koz)
GOLD(Oz)
SILVER(Koz)
GOLD(Oz)
Fresnillo mine Silver underground mine 20,098 35,676 22,764 33,079
Saucito mine Silver underground mine 15,397 57,227 11,581 45,177
Ciénega mine(including San Ramón satellitemine)
Gold-Silver underground mines 4,075 108,211 4,240 112,053
Herradura mine Gold open pit mine 679 265,564 299 264,562
Noche Buena mine Gold open pit mine 102 129,242 49 108,729
Soledad-Dipolos mine Gold open pit mine - - 31 47,285
Subtotal 40,352 595,920 38,965 610,884
Silverstream Sabinas polymetallicunderground mine (operated byPeñoles)
4,648 N/A 3,945 N/A
Total 45,000 595,920 42,910 610,884
*All figures include 100% of production from the Penmont mines (Herradura, Soledad-Dipolos and Noche Buena)
10
Cash Costs
ESTIMATEDLIFE OF MINE
CASH COST Traditional* All-in sustaining costs** WEIGHTED AVERAGE
MINE UNIT
Fresnillo PER OZ. SILVER 5.29 9.84 6.20 (2023)
Saucito PER OZ. SILVER 2.48 5.43 6.00 (2021)
Ciénega PER OZ. GOLD 288.00 786.40 803.12 (2026)
Herradura PER OZ. GOLD 465.42 862.19 716.95 (2019)
Noche Buena PER OZ. GOLD 945.63 1,051.00 1,124.49 (2019)
* Cash cost per ounce is calculated as total cash cost (cost of sales plus treatment and refinning charges less depreciation)less revenues from by-products divided by the silver or gold ounces sold.
** All-In Sustaining Costs (AISC) is calculated as traditional cash cost plus on-site general, corporate and administrative costs, community costs related to current operations, capitalised stripping & underground mine development, sustaining capital expenditures and remediation expenses.
Cash Costs among the lowest in the industry
11
2014 Financial Highlights(variations vs 2013)
• Adjusted revenue of US$1,545m, down 12.3% as a result of lower prices (Au -10.2%; Ag -18.4%) and the stoppage
of operations at Soledad-Dipolos
• Cost inflation in US$ terms remained subdued (+1.6%)
• Cost per tonne in the underground mines remained broadly flat, whereas in the open pit mines the increase was
mainly due to the increase in the stripping ratios
• Gross profit and EBITDA of US$521m and US$567m, down 32% and 22% respectively
• Total risk capital invested in exploration (incl. capitalised exploration expenses) of US$185m, below original budget
but, with decline in costs, pace of progress broadly in line with plan
• Profit for the year of US$117m, down 55%
• Financial strength and flexibility enabled US$450 million buyout of Penmont JV partner where we have since seen
good exploration results
• Other key uses of cash: US$426m CAPEX; US$87m dividends and US$38m interest paid
• Year end cash balance of US$449m
• Total property, plant and equipment of US$1,970 million
• Total debt of US$796 million
• Basic and diluted earnings per ordinary share from continuing operations of US$0.147, 55% lower
• A 2014 final dividend of 3 US cents per share recommended by the Board
12
Strong Pipeline
FresnilloSaucito I & II
Herradura (DLP)
NochebuenaCiénega - San Ramón
Soledad &Dipolos*
San Julián Pyrites Plant
Mega Centauro Orisyvo Juanicipio Cluster Cebollitas Centauro Deep
Fresnillo District Rodeo Lucerito Tajitos
Candameña Guachichil Guanajuato
San Nicolás Guazapares Coneto Cebadillas
La Yesca Cairo Dátil Amata (Perú) Norias Pilarica (Perú)
Sonora and Sinaloa : San Javier Nudo Carina
Cerritos Dorado Rosario Bellavista Olivos Chihuahua: S. Brígida Rosetillas SJPinal Lucero Tempisque
Durango: Pereñita La Huerta El Carmen
Zacatecas: Urite Atotonilco Corredor Concha-Nieves Argentum Villa García
Perú: Huacravilca Sto. Domingo La Pampa
Systematic Project Generation
Mine Operations
Development Projects
Prospects in drilling
Early stage Exploration
Advanced Exploration
*Operations at Soledad-Dipolos are currently suspended.Arrows show changes from 2014 to 2015
Despite lower price assumptions, total gold and silver reserves rose
45% and 21% respectively; gold
resources rose 2%; silver resources declined 6%
13
YEAR
PROJECT
155 3.5 moz Ag &
13 koz AuPYRITES PLANT
(Optimization project)DETAILED
ENGINEERING
DETAILED
ENGINEERINGPLANT CONSTRUCTION
CENTAURO DEEP
JUANICIPIO
ORISYVO
365 225 koz Au
DEVELOPMENT
136 koz AuBASIC ENGINEERING
350
PLANT CONSTRUCTIONDETAILED
ENGINEERINGBASIC ENGINEERING
DETAILED
ENGINEERING
PRODUCTION
MINE DEVELOPMENT
PLANT CONSTRUCTION300
10 moz Ag & 30 koz Au
55 15 koz Au & 1.3 moz Ag
CIENEGA 5,000 TPD (Optimization project)
10.3 moz Ag & 44 koz Au
100 8 moz AgFRESNILLO 10,000 TPD (Optimization project)
515 SAN JULIÁN
CONSTRUCTION
LEACHING PLANTPRODUCTION
PLANT CONSTRUCTION
LEACHING PLANT CONSTRUCTION PRODUCTION
CONSTRUCTION TAILINGS FLOTATION
PRODUCTIONDEVELOPMENT
PRODUCTION
DETAILED
ENGINEERINGBASIC ENGINEERING
MINE DEVELOPMENT
PRODUCTION
MINE DEVELOPMENT
CONSTRUCTION FLOTATION PLANT
20202015 2016 2017 2018 2019Investment (US$ million)
Expected Avg. Annual Production
PRODUCTIONDETAILED
ENGINEERING
PRODUCTION
MINE DEVELOPMENT
PLANT CONSTRUCTION
155 280 koz Au MEGA CENTAURO2ND DYNAMIC LEACHING PLANT
CONSTRUCTION
Expected Delivery of Growth
(1) (2)
(1) Estimated. (2) Total average annual production.
14
Achieving 65moz Silver by 2018
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2014 2015 2016 2017 2018
Thousand Oz
Yr
Juanicipio - 56%
Pyrites Plant
San Julián
Saucito II
Saucito I
Ciénega Expansion
Ciénega
10,000 TPD FresExpansion
Fresnillo
15
-
-
--
-
-
--
-
-
-
- -
- -
-
100
200
300
400
500
600
700
800
900
1,000
2014 2015 2016 2017 2018
Thousand Oz
Yr
Orisyvo
Juanicipio - 56%
San Julián
Pyrites Plant
Saucito II
Saucito I
Ciénega Expansion
Ciénega
Fresnillo
Nochebuena
Dynamic Leaching
Mega Centauro
Herradura
Achieving 750koz Gold by 2018
16
CAPEX & Exploration Spend
0
100
200
300
400
500
600
700
800
900
1,000
2015 2016 2017 2018 2019 2020
US$ Million
Sustaining CAPEX New Projects CAPEX
CAPEX 2015 US$ Million
Sustaining
• Sustaining $185
• Mining Works (Underground) $87
• Mining Works (Stripping) $89
New Projects
US$
Million
• San Julián $133
• Pyrites Plant $60
• Saucito II $53
• Merrill Crowe at DLP $25
• Others $62
Budget Real
2015 2014 Amount %
Operating Units 50.4 66.9 (16.5) (24.7)
Advanced Projects 65.0 68.1 (3.1) (4.6)
Prospection 25.2 22.5 2.7 12.0
Regional Prospecting 17.8 12.5 4.4 42.1
Mining Rights 13.9 14.5 (0.6) (4.1)
Total Risk Capital Invested in Exploration 172.2 184.5 (12.3) (6.7)
(Million USD)Change
Risk Capital Invested in Exploration
(not related to operating mines)
17
San Julián Project
� The project encompasses an underground mine and the constructionof two plants:
� i) a flotation plant with 6,000 TPD capacity to process orefrom the disseminated body
� ii) a Dynamic Leaching Plant (DLP) to treat 3,000 TPD of orefrom the veins
� Construction progressing with the DLP expected to be commissionedin 4Q15 while the flotation plant will be commissioned in 2H16
� In 2014, the construction of the DLP, tailings dam and wastewatertreatment plant were initiated. Mining works at the vein systemcontinued
� Mining works and ventilation raises advanced 11,400m and2,500m respectively, totalling 63,000m of accumulateddevelopment
�Diamond drilling of approximately 20,000m converted aportion of the mineral resources into the reserve category,equivalent to 126moz silver and 61koz gold
Average Annual Silver Production 10.3 M Oz
Average Annual Gold Production 43.9 K Oz
Pre-operative CAPEX US$515 M
Life of mine 13 years
Disseminated Processing Capacity 6,000 TPD
Veins Processing Capacity 3,000 TPD
Expected Start-up 4Q 2015
Traditional cash cost US$7.77/oz
All-in cash cost US$9.33/oz
Expected Operating Highlights
18
Pyrites Project
� This facility is expected to increase silver and gold recovery byprocessing on-going tailings from the Fresnillo and Saucito mines, aswell as historical tailings from Fresnillo
� The plant will froth float pyrite concentrates that will be leached in a2,000TPD DLP and Merrill-Crowe plant to produce precipitates
� At the current tailings plant at Fresnillo, we plan to install a13,000TPD tailings plant to process 5,000TPD from the old dams and8,000TPD of the tailings
� The project would increase the production of silver for the period2017-2036 by an average of 3.5moz per year, however for the first 5years (2017-2021), 4.7m additional ounces will be contributed peryear
� Cash cost per ounce of US$2.51/oz
Average Annual Gold Production 12.8 koz
Total Gold Production 255.4 koz
Average Annual Silver Production 3.5 moz
Total Silver Production 68.7 moz
Pre-operatice CAPEX US$153.7 M
OPEX Pyrites Plant 50.39 USD/Ton
Expected Start-up 1H 2017
Expected Operating Highlights
19
Conclusions and Outlook
Outlook
• We have had a strong start to 2015, with operations performing well and providing a good
platform for growth
• Financial and operational flexibility maintained
• Defined strategic plan to address cyclical uncertainties
• We will maintain focus on stringent cost control across all operations
• We continue to invest prudently to achieve additional low cost ounces
• We continue to balance quality growth with returns to shareholders
• We continue identifying and adopting best practices in stakeholder engagement
Despite current markets and decline in precious metal prices, our strong balance sheet, high quality
assets, operational flexibility and conservative approach will support our goals of optimising
performance and delivering returns
On track to meet 2018 production guidance
of 65 moz silver (incl. Silverstream) and 750,000 oz gold
Appendix
“Looking beyond the cycle”
21
Fresnillo Mine: Summary
• World’s largest primary silver mine; one of oldest continuously operating mines
• Development rates reached 3,300m/month in 2014,
aiming to 4,000m/month
• Reserves of 229moz silver
• Resources of 753moz silver
• AISC (LoM basis): US$6.20/oz (2023)
• Resource base of c.25 years
2014 2013 Change %
Ore processed k t 2,625.0 2,703.4 -78.4 -2.9
Ore gradeSilver g/t 258.5 285.3 -26.8 -9.4
Gold g/t 0.5 0.5 0.0 6.1
Lead % 0.6 0.6 0.0 -6.4
Zinc % 1.0 0.9 0.0 4.0
Total productionSilver m oz 20.1 22.8 -2.7 -11.7
Gold k oz 35.7 33.1 2.6 7.9
Lead kt 13.9 15.6 -1.7 -10.7
Zinc kt 15.2 14.9 0.3 1.9
SILVER Ore Grade
22
Saucito Mine: Summary
• Saucito, including Saucito II, is one of the key growth drivers to achieve our 2018 production target
• Saucito II commenced operations on time & on budget in 4Q14, contributing low cost ounces to group profile
• Reserves of 116moz silver & resources of 447moz silver
• AISC (LoM basis): US$6.00/oz (2021)
• Resource base of c.25 years
2014 2013 Change %
Ore processed k t 1,534.6 1,181.7 352.8 29.9
Ore gradeSilver g/t 338.9 329.6 9.4 2.8
Gold g/t 1.4 1.4 0.0 -0.4
Lead % 0.7 0.6 0.2 34.4
Zinc % 1.3 0.9 0.5 52.5
Total productionSilver m oz 15.4 11.6 3.8 32.9
Gold k oz 57.2 45.2 12.1 26.7
Lead kt 10.0 5.6 4.4 77.8
Zinc kt 10.5 4.5 6.0 132.9
SILVER Ore Grade
250265
330339
200
250
300
350
400
(Gms/Ton)
23
GOLDOre Grade
SILVER Ore Grade
Ciénega Mine: Summary
2014 2013 Change %
Ore processed k t 1,341.6 1,242.2 99.4 8.0
Ore gradeGold g/t 2.6 2.9 -0.3 -10.5
Silver g/t 108.5 121.6 -13.0 -10.7
Lead % 0.5 0.6 0.0 -5.3
Zinc % 0.7 0.8 0.0 -3.4
Total productionGold k oz 108.2 112.1 -3.8 -3.4
Silver m oz 4.1 4.2 -0.2 -3.9
Lead kt 4.7 4.8 -0.1 -1.6
Zinc kt 6.0 5.5 0.5 9.9
• Optimised milling capacity reached 4,000TPD
• Reserves of 0.89moz gold & resources of 1.58moz gold
• Reserves of 75moz silver & resources of 142moz silver
• AISC (LoM basis): US$803/oz (2026) (per gold ounce)
• Resource base of c.22 years
53
105122
109
20406080
100120140160180
(Gms/T)
24
Herradura Mine: Summary
2014 2013 Change %
Total Ore processed k t 22,305.1 14,363.3 7,941.8 55.3
Ore gradeGold g/t 0.7 0.6 0.1 18.9
Silver g/t 1.2 1.1 0.1 12.0
Total productionGold k oz 265.6 264.6 1.0 0.4
Silver k oz 679.1 299.0 380.1 127.1
GOLDOre Grade
• Full mining activities resumed in March 2014 post temporary stoppage
• DLP commissioned in March 2014
• 100% Fresnillo post acquisition of Newmont’s 44% stake in Penmont
• Reserves of 5.3moz gold (+96%) & resources of 6.8moz gold (+32%)
• AISC (LoM basis): US$717/oz (2019)
• Resource base of c.12 years
• Based on current mine plan, Herradura to move 120m TPY
• Potential for future growth as an underground mine
0.650.57 0.61
0.72
0.50.60.70.80.91.01.11.2
(Gms/T)
25
Noche Buena Mine: Summary
• 100% Fresnillo post acquisition of Newmont’s 44% stake in Penmont
• Merrill Crowe Plant capacity increased from 750 to 1,600 m3/h
• Completed construction of 4th and 5th leaching pads
• Reserves of 1.1moz gold & resources of 1.3moz gold
• AISC (LoM basis): US$1,124/oz (2019)
• Resource base of c.5 years
2014 2013 Change %
Total Ore processed k t 15,607.2 12,283.7 3,323.5 27.1
Ore gradeGold g/t 0.5 0.5 0.0 -6.1
Silver g/t 0.4 0.2 0.1 50.5
Total productionGold k oz 129.2 108.7 20.5 18.9
Silver k oz 102.4 49.2 53.1 108.0
GOLDOre Grade
0.51
0.54
0.51
0.3
0.4
0.5
0.6
0.7
2012 2013 2014 2015 E 2016 E 2017 E 2018 E
(Gms/T)
26
Income Statement (IFRS)
C O N C E P T 2014 % 2013 % $ %
ADJUSTED REVENUES 1,545.0 1,761.9 (216.9) (12.3) HEDGING (METALS) 0.1 0.3 (0.2) (61.1) TREATMENT AND REFINING CHARGES (131.4) (147.0) 15.6 (10.6) REVENUES 1,413.7 100.0 1,615.2 100.0 (201.5) (12.5)
ADJUSTED PRODUCTION COST (678.0) (48.0) (567.7) (35.1) (110.3) 19.4 PROFIT SHARING (12.6) (0.9) (20.2) (1.2) 7.6 (37.4) DEPRECIATION (296.2) (21.0) (239.3) (14.8) (56.8) 23.7 HEDGING (EXCHANGE RATE) (1.1) (0.1) 4.3 0.3 (5.4) N/A CHANGE IN INVENTORIES 104.7 7.4 1.3 0.1 103.4 7,836.6 UNPRODUCTIVE COST AND OTHERS (9.5) (0.7) (26.1) 0.0 16.7 (63.8) COST OF SALES (892.6) (63.1) (847.7) (52.5) (44.9) 5.3
GROSS PROFIT 521.1 36.9 767.4 47.5 (246.4) (32.1)
ADMINISTRATIVE EXPENSES (34.7) (2.5) (29.5) (1.8) (5.2) 17.5 CORPORATE EXPENSES (32.9) (2.3) (32.7) (2.0) (0.1) 0.4 EXPLORATION EXPENSES (168.8) (11.9) (207.8) (12.9) 39.0 (18.8) OTHER INCOME (EXPENSE) (25.5) (1.8) (2.4) (0.1) (23.2) 979.7 SELLING EXPENSES (INCLUDES EXTRAORDINARY MINING RIGHT) (13.6) (1.0) (7.0) (0.4) (6.7) 95.8
PROFIT FROM CONTINUING OPERATIONS 245.6 17.4 488.1 30.2 (242.5) (49.7)
SILVERSTREAM REVALUATION 40.1 2.8 (65.7) (4.1) 105.8 N/A SILVERSTREAM AMORTIZATION EFFECTS FOR THE PERIOD 36.9 2.6 11.7 0.7 25.2 216.1 FINANCE INCOME / (EXPENSE) (47.2) (3.3) (8.9) (0.6) (38.2) 427.1 FOREIGN EXCHANGE GAIN / (LOSS) (24.4) (1.7) (6.5) (0.4) (17.9) 277.6
PROFIT BEFORE INCOME TAX 251.1 17.8 418.7 25.9 (167.6) (40.0)
SPECIAL MINING RIGHT (15.7) (1.1) (36.2) (2.2) 20.5 (56.6) CORPORATE INCOME TAX (118.3) (8.4) (121.5) (7.5) 3.3 (2.7) INCOME TAX EXPENSE (134.0) (9.5) (157.7) (9.8) 23.7 (15.0)
PROFIT FOR THE PERIOD 117.1 8.3 261.0 16.2 (143.9) (55.1)
ATTRIBUTABLE TO:
EQUITY SHAREHOLDERS OF THE GROUP 108.4 7.7 240.4 14.9 (132.0) (54.9)
MINORITY INTEREST 8.6 0.6 20.6 1.3 (11.9) (58.0)
117.1 8.3 261.0 16.2 (143.9) (55.1)
EBITDA 567.3 40.1 729.8 45.2 (162.5) (22.3)
CHANGEACCUM DECEMBER
27
C O N C E P T YTD 2014 YTD 2013 $ %
CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 568.5 750.2 (181.7) (24.2)
WORKING CAPITAL (183.4) 34.5 (217.9) N/A
INCOME TAX AND PROFIT SHARING PAID (263.5) (338.6) 75.2 (22.2)
NET CASH FROM OPERATING ACTIVITIES 121.6 446.0 (324.4) (72.7)
OTHER PROCEEDS
SILVERSTREAM CONTRACT 58.8 63.8 (5.0) (7.9)
PROCEEDS FROM THE SALE OF PROPERTY, PLANT AND EQUIPMENT 14.2 12.2 2.0 16.8
CAPITAL CONTRIBUTION 4.4 4.9 (0.6) (11.2)
SENIOR NOTES 0.0 793.9 (793.9) N/A
PLACEMENT OF NEW ORDINARY SHARES 0.0 346.1 (346.1) N/A
LOANS FROM PARTNERS 0.0 40.9 (40.9) N/A
TOTAL OTHER PROCEEDS 77.4 1,261.9 (1,184.5) (93.9)
PURCHASE OF MINORITY SHARES (450.5) 0.0 (450.5) N/A
PURCHASE OF PROPERTY, PLANT AND EQUIPMENT (425.6) (572.1) 146.6 (25.6)
DIVIDENDS PAID (87.0) (505.2) 418.3 (82.8)
NET INTEREST RECEIVED (PAID) (37.6) 6.1 (43.7) N/A
OTHERS 3.5 5.3 (1.8) N/A
TRANSACTIONS COSTS SENIOR NOTES 0.0 (4.9) 4.9 N/A
USES OF CASH (997.2) (1,070.9) 73.7 (6.9)
NET INCREASE / (DECREASE) IN CASH DURING THE PERIOD (798.2) 637.0 (1,435.2) N/A
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS (4.0) 0.9 (5.0) N/A
CASH AND CASH EQUIVALENTS AT 01 JANUARY 1,251.7 613.8 637.9 103.9
CASH AND CASH EQUIVALENTS AT 31 DECEMBER 449.3 1,251.7 (802.4) (64.1) - -
CHANGE
Cash Flow (IFRS)
(Million USD)
28
Balance Sheet (IFRS)
(Million USD)Concept 31-DIC-14 31-DIC-13 %
Assets
Cash and Investments 449.3 1,251.7 (64.1)
Trade and Other Receivables 456.1 267.5 70.5
Inventories 305.6 208.1 46.8
Prepaid Expenses 3.4 5.3 (37.0)
Silverstream 392.3 372.8 5.2
Derivative Financial Instruments 14.6 2.1 607.5
Property, Plant and Equipment 1,969.4 1,838.1 7.1
Other Assets (Long term) 151.5 149.2 1.5
Total Assets 3,742.2 4,094.9 (8.6)
Liabilities
Profit Sharing 11.6 20.4 (43.4)
Loans from Partners - 40.9 N/A
Other Liabilities (Short term) 128.2 88.9 44.2
Retirement and Pension Plan Reserves 13.8 11.5 20.6
Deferred Taxes 336.8 334.2 0.8
Senior Notes 796.2 800.0 (0.5)
Other Liabilities ( Long term) 153.8 127.0 21.1
Total Liabilities 1,440.3 1,422.9 1.2
Share Capital and Share Premium 1,522.4 1,177.3 29.3
Placement of new Ordinary Shares (0.0) 345.1 N/A
Retained earnings 1,265.8 1,270.0 (0.3)
Other Accounts (512.9) (518.9) (1.2)
Stockholder's Equity 2,275.3 2,273.4 0.1
Minority Interest 26.5 398.5 (93.3)
Total Stockholder´s Equity 2,301.8 2,672.0 (13.9)
Total Liabilities and Stockholder's Equity 3,742.2 4,094.9 (8.6)
Change
29
Reserves 2014
Mine / project Tonnes Au Ag Pb Zn Ag Eq. *
Cut-off Mt Au gpt Ag gpt % Pb % Zn koz Moz kt kt Moz
Fresnillo 2014 165 gpt Ag Eq. 26.79 0.64 266 1.46 2.96 552 229 392 793 402
2013 125 gpt Ag Eq 31.83 0.65 271 1.47 2.75 668 278 467 875 460
% Incr. 32.0% -15.8% -1.8% -1.9% -0.3% 7.7% -17.3% -17.4% -16.1% -9.3% -12.5%
Saucito 2014 216 gpt Ag Eq. 9.23 1.70 389 1.71 3.10 504 116 158 286 199
2013 145 gpt Ag Eq 10.42 1.80 384 1.75 2.91 604 129 182 304 218
% Incr. 49.0% -11.4% -5.8% 1.5% -2.0% 6.4% -16.6% -10.1% -13.2% -5.7% -8.4%
Cienega 2014 1.88 a 3.21 gpt Au Eq 15.24 1.82 154 0.56 0.90 894 75 86 137 158
2013 2.12 a 2.94 gpt Au Eq 14.71 1.71 142.5 0.55 0.88 809 67 81 129 141
% Incr. 2.5% 3.6% 6.6% 7.9% 2.6% 2.1% 10.5% 11.8% 6.3% 5.9% 12.2%
Herradura 2014 Multiple ** 209.57 0.79 5,317 340
2013 Multiple *** 105.89 0.80 2,708 174
% Incr. 97.9% -0.8% 96.4% 95.7%
Noche Buena 2014 0.30 gpt Au Eq. 63.15 0.55 1,107 71
2013 0.30 gpt Au Eq. 63.93 0.54 1,117 72
% Incr. 0.0% -1.2% 0.3% -0.9% -1.3%
Soledad & Dipolos 2014 0.30 gpt Au Eq. 37.73 0.65 784 50
2013 0.30 gpt Au Eq. 37.73 0.64 780 50
% Incr. 0.0% -0.0% 0.6% 0.6% 0.3%
San Julian - veins 2014 159 gpt Ag Eq. 7.29 2.06 155 483 36 67
San Julian - disseminated 2014 132 gpt Ag Eq. 22.42 0.07 175 0.50 1.25 50 126 112 280 169
* Metal prices used for 2014: 1,150 USD/oz Au, 18 USD/oz Ag, 0.95 USD/lb Pb and 0.95 USD/lb Zn. For year 2013: 1,250 USD/oz Au, 19.50 USD/oz Ag, 0.99 USD/lb Pb and 0.88 USD/lb Zn.
** Herradura ore reserves are reported at varied cut-offs dependent on material types and grade. Oxide material above 0.30 gpt Au reports to the heap leach, transitional and sulfide material
from 0.35 to 0.60 gpt Au report to the heap leach, oxide material above 1.14 gpt Au reports to the mill, transitional and sulfide material above 0.60 gpt Au reports to the mill.
*** In 2013, the cut-off grades for Herradura are: 0.3 gpt Au Eq. for oxides and 0.56 gpt Au Eq. for transitional and fresh ore.
Tonnes and Grades
Grades
Metal content
30
Mineral Resources 2014: OperatingMines & San Julian Project
Mine / project Tonnes Grades Au Ag Pb Zn Ag Eq. *
Cut-off Mt Au gpt Ag gpt % Pb % Zn koz Moz kt kt Moz
Fresnillo 2014 103 gpt Ag Eq 66.20 0.73 354 1.41 2.80 1,563 753 931 1,851 1,176
2013 83 gpt Ag Eq 69.48 0.76 358 1.45 2.82 1,688 800 1,006 1,961 1,216
% Incr. 24.1% -4.7% -2.8% -1.2% -2.9% -1.0% -7.4% -5.9% -7.5% -5.6% -3.3%
Saucito 2014 136 gpt Ag Eq 39.50 1.29 352 1.26 2.28 1,643 447 496 899 714
2013 98 gpt Ag Eq 44.39 1.44 363 1.38 2.39 2,054 518 611 1,060 823
% Incr. 38.8% -11.0% -10.1% -3.0% -8.8% -4.7% -20.0% -13.7% -18.8% -15.2% -13.2%
Cienega 2014 1.35 a 2.64 gpt Au Eq 29.95 1.64 148 0.57 0.95 1,583 142 170 284 296
2013 1.48 a 2.05 gpt Au Eq 31.76 1.58 141 0.54 0.96 1,609 144 171 303 296
% Incr. 13.0% -5.7% 4.3% 4.8% 5.5% -0.8% -1.6% -1.1% -0.5% -6.5% -0.1%
Herradura 2014 Multiples ** 265.69 0.79 6,786 434
2013 0.30 gpt Au Eq. 226.44 0.71 5,135 329
% Incr. 17.3% 12.6% 32.2% 31.7%
Noche Buena 2014 0.30 gpt Au Eq. 75.21 0.53 1,292 83
2013 0.30 gpt Au Eq. 104.09 0.52 1,754 112
% Incr. -27.7% 1.9% -26.4% -26.6%
San Julian - veins 2014 122 gpt Ag Eq 13.34 1.89 149 809 64 115
2013 15.11 1.73 148 841 72 126
% Incr. -11.7% 9.0% 0.7% -3.8% -11.1% -8.1%
San Julian - disseminated 2014 102 gpt Ag Eq 20.41 0.08 194 0.56 1.46 50 127 115 298 178
2013 21.30 0.08 189 0.55 1.42 52 129 117 303 176
% Incr. -4.2% 1.2% 2.7% 2.2% 2.5% -3.0% -1.5% -2.0% -1.8% 1.5%
14,598 1,533 1,711 3,331 3,053
14,004 1,663 1,905 3,627 3,135
* Metal prices used for 2014: 1,150 USD/oz Au, 18 USD/oz Ag, 0.95 USD/lb Pb and 0.95 USD/lb Zn. For year 2013: 1,250 USD/oz Au, 19.50 USD/oz Ag, 0.99 USD/lb Pb and 0.88 USD/lb Zn.
** Herradura ore resources are reported at varied cut-offs dependent on material types and grade. Oxide material above 0.30 gpt Au reports to the heap leach, transitional and sulfide material
from 0.35 to 0.60 gpt Au report to the heap leach, oxide material above 1.14 gpt Au reports to the mill, transitional and sulfide material above 0.60 gpt Au reports to the mill.
Tonnes and Grades Metal content
31
Mineral Resources 2014 (cont):Exploration Projects
Mine / project Tonnes Au Ag Pb Zn Ag Eq. *
Cut-off Mt Au gpt Ag gpt % Pb % Zn koz Moz kt kt Moz
Orisyvo 2014 Multi ple ** 279.42 0.97 1 8,718 11 568
2013 Multi ple ** 321.47 0.96 1 9,892 13 648
% Incr. 0.0% -13.1% 1.4% -2.8% -11.9% -15.5% -12.2%
Candameña 2014 Multi ple *** 62.01 0.51 20 1,019 39 104
2013 Multi ple *** 63.50 0.52 20 1,066 40 109
% Incr. 0.0% -2.4% -2.1% -1.0% -4.4% -3.4% -4.2%
Rodeo 2014 0.30 gpt Au 42.32 0.54 4 730 6 52
2013
% Incr.
Pilarica 2014 30 gpt Ag Eq. 16.17 68 0.30 0.44 0 35 48 70 49
2013 25 gpt Ag Eq. 10.83 111 0.31 0.50 39 34 54 48
% Incr. 20.0% 49.4% -38.5% -3.9% -12.3% -8.1% 43.6% 30.9% 3.3%
Centauro Deep 2014 1.70 gpt Au Eq. 40.00 3.35 4,313 276
2013 1.50 gpt gAu Eq. 37.89 3.19 3,882 249
% Incr. 13.3% 5.6% 5.2% 11.1% 10.7%
Juanicipio 2014 US$70.27/t 8.21 1.72 434 1.93 3.51 454 115 159 288 196
2013 US$70.29/t 8.02 1.76 447 1.92 3.49 453 115 154 280 189
% Incr. -0.0% 2.4% -2.1% -2.9% 0.8% 0.4% 0.3% -0.5% 3.2% 2.8% 3.3%
Guanajuato 2014 2.10 gpt Au-Eq 5.77 2.61 185 485 34 65
2013 2.10 gpt Au-Eq 2.42 2.37 159 184 12 24
% Incr. 0.0% 138.4% 10.5% 17.0% 163.5% 178.9% 170.9%
6,067 206 159 288 646
* Metal prices used for 2014: 1,150 USD/oz Au, 18 USD/oz Ag, 0.95 USD/lb Pb and 0.95 USD/lb Zn. For year 2013: 1,250 USD/oz Au, 19.50 USD/oz Ag, 0.99 USD/lb Pb and 0.88 USD/lb Zn.
** For 2014 and 2013: 0.20 gpt Au-Eq for oxide material and 0.50 gpt Au-Eq for sulphide material.
*** For 2014 and 2013: 0.30 gpt Au-Eq for oxide material and 0.70 gpt Au-Eq for sulphide material.
**** For 2014 and 2013: 0.20 gpt Au-Eq for oxide material and 0.70 gpt Au-Eq for sulphide material.
Tonnes and Grades Metal content
Grades
