Fresnillo plc plans to invest between $ 175 million and $ 180 million in mineral exploration in 2021.
Of that amount, it expects to capitalize approximately 15 million dollars.
With a 32% year-on-year decline, Fresnillo plc’s exploration expenses totaled $ 107.3 million in 2020.
The decline was in line with the company‘s strategy to focus exploration on specific targets, including its current operating districts and advanced exploration projects.
Likewise, the lower investment was in part a response to improve Fresnillo plc’s financial stability during the increased financial uncertainty earlier in the year as a result of the Covid-19 pandemic.
Additionally, the company suspended exploration activities for a period of time to mitigate any adverse impacts from the pandemic.
In 2020, the company capitalized an additional $ 8.5 million, primarily related to exploration expenses at the Juanicipio and Centauro Deep project.
As a result, the venture capital invested in exploration totaled 115.8 million dollars in 2020, while in 2019, 12.2 million dollars were capitalized, totaling 170.1 million in venture capital invested in exploration, a decrease of 31.9% compared to 2019
Fresnillo plc is the world’s largest primary silver producer and Mexico’s largest gold producer.
The company has seven mines in operation, all in Mexico:
- Ciénega (including the San Ramón satellite mine Las Casas Rosario & Cluster Cebollitas).
- Soledad-Dipolos (Currently, operations are suspended).
- Noche Buena.
- San Julián (Veins and Disseminated Ore Body).
It also has three development projects: the Pyrite Plant in Fresnillo, the optimization of the beneficiation plant also in Fresnillo and Juanicipio, and six advanced exploration projects: Orisyvo, Centauro with great potential and Centauro Deep, Guanajuato, Rodeo and Tajitos. as well as several other long-term exploration prospects.
Fresnillo plc has mining concessions and exploration projects in Mexico, Peru and Chile.