Minera Frisco
Investor Presentation - 1Q16
El Coronel Unit
1962-1980 1985-2004
In 1962, Minera Frisco
is created. Since this
year, various
operations have
started, like Minera
Lampazos in 1972,
Minera Cumobabi in
1978 and Minera Maria
in 1980. Metals
production during
these years were Cu,
Mo, Ag and Au.
In 1985, Minera
Frisco was acquired
by Grupo Carso
(“Gcarso”). In 1994,
San Felipe begins
operations in Baja
California. In 1998,
Minera Tayahua is
acquiered (51%). In
2004, Minera Maria
reopens and starts
productions of
copper cathodes.
2008-2011
In 2008, Asientos and
El Coronel start
production of
concentrates and dore
bars. On January
2011, GCarso
completes the spin-off
of its mining and real
estate divisions;
Minera Frisco starts
trading in the Mexican
Stock Exchange
(MFRISCO).
Brief History
2012
Major advances on
projects were
achieved, including
completion of
construction at most
of the units. The
acquisition of the
Ocampo mine, and
Los Jarros and Venus
projects was finalized
in December.
2013
El Porvenir and
Concheño units
started operations as
well as El Coronel
and San Felipe
expansions.
2014
MFrisco focused on
the consolidation of
its projects that
started production in
2013 and 2014.
2015
Working on make
more efficient each
unit, developing and
implementing
strategies in order to
minimize economic
impacts.
Overview
3
More than 50 years of experience.
Mainly focus on gold, silver and copper.
9 operating mines
1 project under development
8,105 employees (it includes contractors)
4
Location: Sonora
Stage: Operating
Metals: Cu
Maria
Location: Baja California Norte
Stage: Operating
Metals: Au / Ag
San Felipe
Location: Chihuahua
Stage: Operating
Metals: Au / Ag
Concheño
Location: Chihuahua
Stage: Operating
Metals:Au/ Ag/ Cu/ Pb /Zn
San Francisco del Oro
Location: Zacatecas
Stage: Construction
Metals: : Au/ Ag/ Cu/ Pb/ Zn
Tayahua - Cobre Primario
Location: Zacatecas
Stage: Operating
Metals: Au/ Ag/ Cu/ Pb/ Zn
Tayahua
Location: Zacatecas
Stage: Operating
Metals: Au / Ag
El Coronel
Location: Aguascalientes
Stage: Operating
Metals: Au/ Ag/ Cu/ Pb/ Zn
Asientos
Location: Aguascalientes
Stage: Operating
Metals: Au / Ag
El Porvenir
Operating Mines Expansion Projects
Geographic Footprint
Location: Chihuahua
Stage: Operating
Metals: Au / Ag
Ocampo
Location: Chihuahua
Deposit Type: Open Pit &
Underground
Process: Dynamic
Leaching
Start of Operations: 2013
Capacity: 13,500 TPD
Main Metals: Au / Ag
Final Product: Dore Bars
5
Operating Mines: open pit & underground
Concheño
Location: Chihuahua
Deposit Type: Underground
Process: Dynamic
Leaching
Start of Operations: 2006
Capacity: 3,000 TPD
Main Metals: Au / Ag
Final Product: Dore Bars
Ocampo
Location: BCN
Deposit Type: Open Pit &
Underground
Process: Heap and
Dynamic Leaching
Start of Operations: 1994
Project expansion start-up: 2013
Capacity: 37,000 TPD
Metals: Au / Ag
Final Product: Dore Bars
San Felipe
6
Operating Mines: open pit
Location: Zacatecas
Deposit Type: Open Pit
Process: Heap Leaching
Start of Operations: 2008
Project expansion start-up: 2013
Capacity: 55,000 TPD
Metals: Au / Ag
Final Product: Dore Bars
Location: Aguascalientes
Deposit Type: Open Pit
Process: Heap Leaching
Start of Operations: 2013
Capacity: 8,500 TPD
Metals: Au / Ag
Final Product: Dore Bars
El Coronel El Porvenir
Location: Sonora
Deposit Type: Open Pit
Process: Heap Leaching
Start of Operations: 2004 (2nd phase)
Capacity: 27,000 TPD
Metals: Cu
Final Product: Copper -
Cathodes
Maria
7
Operating Mines: underground
Asientos Tayahua* San Francisco del Oro
Location: Zacatecas
Deposit Type: Underground
Process: Flotation Circuit
Start of Operations: 1917
Capacity: 5,500 TPD
Additional capacity: 10,000 TPD
Metals: Au/Ag/Cu/Pb/Zn
Final Product: Concentrates
Location: Aguascalientes
Deposit Type: Underground
Process: Flotation Circuit
Start of Operations: 2008
Capacity: 3,800 TPD
Metals: Au/Ag/Cu/Pb/Zn
Final Product: Concentrates
Location: Chihuahua
Deposit Type: Underground
Process: Flotation Circuit
Start of Operations: 2004
Capacity: 4,000 TPD
Metals: Au/Ag/Cu/Pb/Zn
Final Product: Concentrates
*Expansion project under development
8
Operations & Projects Portfolio
Nominal installed milling/crushing capacity
(tonnes/day)
*Milling/crushing processing capacity (tonnes/day)
90.2%
Name Location MetalsExploitation
type Process
Milling/crushing
installed capacity*
El Coronel Zac. Au, Ag Open-pit Heap leaching 55,000
San Felipe B.C. Au, Ag Open-pit Heap leaching 37,000
Asientos Ags.Au, Ag,
Pb, Zn, Cu Underground
Milling and
flotation3,800
San
Francisco
del Oro
Chih. Au, Ag,
Pb, Zn, Cu Underground
Milling and
flotation4,000
Maria Son. Cu Open-pit Heap leaching 27,000
El Porvenir Ags. Au, Ag Open-pit Heap leaching 8,500
Ocampo Chih. Au, Ag Underground Dynamic
leaching3,000
Concheño Chih. Au, Ag Open-pit Dynamic
leaching13,500
Units in operation
82,700
157,300
2012 2015
Name Location MetalsExploitation
type Process
Current
milling/crushing
installed capacity*
Description
Additional
installed
capacity*
Expected
installed
capacity*
Status
Tayahua Zac. Au, Ag,
Pb, Zn, Cu Underground
Milling and
flotation5,500
Primary copper: access ramp
of 6 km, crushing, grinding and
flotation plant
10,000 15,500Under
construction
Expansion projects
Key Operating Data
9
growth %
-12%
growth %
0%
growth %
3%
growth %
-4% -
-
-
54% - 11%
28% 12%
-3% - 5%- -
22% - 18% -
growth %
-9% - -19% -19% -
423 412
77 118 103
2014 2015 1Q14 1Q15 1Q16
Gold ('000 Oz)
8,855 9,331
2,033 2,265 2,268
2014 2015 1Q14 1Q15 1Q16
Silver ('000 Oz)
25,823
20,871
6,460 5,256 4,772
2014 2015 1Q14 1Q15 1Q16
Copper (tonnes)
58,913
71,628
13,968 17,903 18,455
2014 2015 1Q14 1Q15 1Q16
Zinc (tonnes)
18,275
21,642
4,715 5,260 5,074
2014 2015 1Q14 1Q15 1Q16
Lead (tonnes)
Key Operating Data
10
It does not include hedging effects.
63% 15%
4%
9%
9%
2016 - Revenues by product
Gold
Silver
Copper
Zinc
Lead
UnitGold
(Oz)
Silver
(Oz)
Lead
(tonnes)
Zinc
(tonnes)
Copper
(tonnes)
El Coronel 28,393 3,379 - - -
San Felipe 26,466 340,887 - - -
Asientos 1,689 273,549 1,661 7,239 148
Tayahua 2,256 351,551 1,142 5,862 3,384
San
Francisco
del Oro
857 337,003 2,272 5,355 388
Porvenir 3,132 46,969 - - -
Ocampo 8,116 208,922 - - -
Concheño 32,519 706,137 - - -
María - - - - 853
Total 103,430 2,268,396 5,074 18,455 4,772
1Q16
14
14
15
15
16
16
17
17
1,160
1,170
1,180
1,190
1,200
1,210
1,220
1,230
1Q14 1Q15 1Q16
Ag-
ave
rage
pri
ce (
usd
/Oz)
Au
- av
erag
e p
rice
(u
sd/O
z)
Gold & Silver Price
Au (Oz) Ag (Oz)
Key Financial Data
11
37%
- 3%
2 %
growth %
10%
growth %
- 58% -65%
margin %
3% 8% -1% - -
- 11%
2% 1,797
746
258
2014 2015 2016
Capex
(million pesos)
2,499 3,423 3,406
12,398
13,611
1Q14 1Q15 1Q16 2014 2015
Revenues (million pesos)
37% -
686
1,259 1,355
4,521 4,648
1Q14 1Q15 1Q16 2014 2015
EBITDA (million pesos)
84% -
Key Financial Data
12
Indebtedness
At March 31st , 2016, the company continued with its metal hedging strategy and it covers most of the
production estimated for the remainder 2016 year. Also, a metal hedging strategy started for 2017.
Derivative Financial Instruments
Indebtedness Variation Variation
(MXN million) 1Q16/1Q15 1Q16/4Q15
Short terms marketable notes - 1,310 -100% - 0.0%
Long term bonds 5,000 5,000 0% 5,000 0.0%
Syndicated loan 19,142 16,670 15% 18,927 1.1%
Debt 24,142 22,980 5% 23,927 0.9%
4Q141Q16 1Q15
Debt (Millions) 1Q16 1Q15 Var. % Var.
Mexican Peso 24,142 22,980 5% 1,162
American Dollar 1,387 1,516 -9% (129)
FxRate. 17.40 15.15
Contact
Investor Relations:
Lizbeth Munguia Samperio
T. +52 (55) 2122.2624
Corporate Office:
Plaza Carso Lago Zurich #245
Presa Falcon Building, 17th Floor
Granada Ampliación
11529 México DF
Trading Symbol:
MSE: MFRISCO
OTC: MSNFY
www.minerafrisco.com
13
Certain statements in this presentation may be related to expectations about future events of Minera Frisco. The phrases "will allow," "will," "estimate," "expect," "intend," "might," "should" and similar expressions generally indicate comments based on financial information, operating levels and conditions of the market to date. These statements are subject to factors such as volatility in metals prices, energy inputs and other inputs, the possibility of cyclical or seasonal business or consumer slowdown risks that are detailed in the Company's annual report and may cause actual results to differ materially from current expectations. Minera Frisco undertakes no obligation to publish a review on these forward-looking statements to reflect events or circumstances occurring after the date of publication of this release.