Half Year 2024 Fresnillo PLC Earnings Call Transcript
Key Points
- Fresnillo PLC (FNLPF) remains the world's largest silver producer and a leading gold producer in Mexico.
- The company reported healthy cash flows and a strong balance sheet, with $690 million in cash on hand.
- Operational improvements and cost control measures have been implemented across various mines, showing positive results in some areas.
- The company is advancing several projects, including Orisyvo, Rodeo, Tajitos, and Guanajuato, which are expected to contribute to future growth.
- Fresnillo PLC (FNLPF) has increased its use of green energy sources, with 70% of its energy demand now coming from renewable sources, aiming for 75% by 2030.
- The company faced operational challenges in the first half of the year, including poor ground conditions and narrower-than-expected veins, impacting silver production.
- There was a significant increase in production costs, partly due to inflation and the revaluation of the Mexican peso.
- Depreciation costs increased substantially, primarily due to accelerated depreciation at the San Julián mine and the new Juanicipio mine.
- The permitting process for new projects in Mexico has become more prolonged, affecting project timelines.
- Despite efforts, the Fresnillo mine continues to face issues with high levels of dilution, impacting grades and production volumes.
Good morning, everyone. Thank you for joining us. This Fresnillo plc's interim results. I'm joined by Mario ArreguÃÂn, our CFO and also by our COOs. On the central region, Tomás Iturriaga; on the northern region, Daniel Diez; and also by our team of the London office.
This morning, you will hear an update how we are doing up to this half year on the operations, but also on the prospects and projects and how we are going.
First of all, the disclaimer. This is the agenda that we will discuss this morning. Investment proposition, HSECR, the highlights on the operational side and the financial side, operational performance at each one of the mines, the financial performance addressed by Mario ArreguÃÂn, and to finalize with the outlook before we go to Q&A.
We continue to be the world's largest silver producer and also leading producer of gold in Mexico, underpinned by the group portfolio of quality assets, 2.2 billion ounces of silver resources and close to 38 million ounces of gold. We've been working to improve the
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