2014 Highlights
Maintaining operational excellence
Record annual silver production (including Silverstream) of 45 Moz; up 4.9% vs. 2013 and ahead of 43.0 Moz guidance due mainly to increase in ore processed at Saucito and Silverstream contribution
Annual gold production of 596 Koz in line with revised guidance post Penmont acquisition; a 2.4% decrease vs. 2013 due to the stoppage of operations at Soledad-Dipolos
Silver grades at Fresnillo continued to decline but measures implemented to control dilution and improve contractor efficiency will deliver improved production in the second half 2015
Technical and capacity issues associated with ramp-up of operations at Herradura impacted production, but mine expected to reach steady state in 2015 due to measures taken in 2014
Ciénega mill capacity optimised resulting in an 8% increase in ore processed, partially offsetting expected lower gold ore grades
Start-up of Herradura dynamic leaching plant in March 2014
Production at Noche Buena ramped up and reached expanded capacity during 2014
Maintained focus on cost control to retain position as a low cost producer
Key safety indicators continued to improve in 2014
Delivering growth through the cycle
Operations commenced at Saucito II on time and on budget; set to produce 8.4 Moz silver and 35 koz gold annually at full capacity
San Julián on track to start production in 4Q15; expected average annual production of 10.3 Moz silver and 44 koz gold at full capacity
US$450 million acquisition of 44% stake in Penmont to consolidate our position in one of Mexico's most prospective gold belts
Extensive greenfield and brownfield exploration programmes continued to deliver positive results, most notably at Herradura, Orisyvo and Guanajuato
2014 exploration expenditure of US$184.5 million, delivered a 21.3% and 45.0% increase in silver and gold reserves despite lower price assumptions; gold resources grew 1.7% and silver resources declined 6.2% on exploration results
Delivering positive earnings and returns in a low price environment
Adjusted revenue of US$1,545 million
Gross profit and EBITDA of US$521.1 million and US$567.3 million
Profit from continuing operations of US$245.6 million
2014 financial results impacted by higher adjusted production costs and adverse effects of non-cash exceptional items including foreign exchange loss and higher deferred taxes
Basic and diluted EPS from continuing operations of US$0.147; adjusted EPS of US$0.074
Strong balance sheet maintained; cash, cash equivalents and short-term investments of US$449.3 million at 31 December 2014
2014 final dividend of 3 US cents per share - equivalent to approximately US$22.1 million was recommended by the Board
