TIDMFRES
RNS Number : 4567X
Fresnillo PLC
26 April 2023
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
26 April 2023
FIRST QUARTER PRODUCTION REPORT
FOR THE THREE MONTHSED 31 MARCH 2023
Octavio Alvídrez, Chief Executive Officer, said:
"I am pleased to report a solid start to the year. Silver and
gold production are both up on the previous quarter driven by the
increasing contribution from our new Juanicipio mine and the strong
performance at our Herradura gold mine in particular. We have a
very clear set of priorities that we are focused on in the second
quarter. This includes the continued safe ramp up of the Juanicipio
plant now that we have successfully completed the commissioning
phase, while also progressing the tie-in to the national power grid
of our new Pyrites Plant. Both of these projects will support our
production objectives into the future. We have successfully managed
through considerable recent challenges, reaching a sound level of
operational consistency, putting us well on track to meet our full
year production guidance."
HIGHLIGHTS
Silver
-- Quarterly attributable silver production of 13.1 moz
(including Silverstream), up 5.1% vs. 4Q22 mainly driven by a
higher ore grade at San Julián (DOB) and the increased contribution
of ore from Juanicipio, partly offset by the lower volume of ore
processed at Saucito.
-- Quarterly attributable silver production remained flat
(-0.9%) vs. 1Q22 primarily due to the lower ore grade and decreased
volume of ore processed at San Julián (DOB) and Ciénega, offset by
the increase in volume of ore processed at Fresnillo and higher ore
grade at San Julián Veins.
Gold
-- Quarterly attributable gold production of 173.0 koz up 3.0%
vs. 4Q22 mainly due to the higher ore grade at Saucito and higher
ore grade and recovery rate at Herradura, partly offset by the
lower recovery rate and decrease in ore grade at Noche Buena.
-- Quarterly attributable gold production up 15.5% vs. 1Q22
primarily due to the higher volume of ore processed and ore grade
at Herradura and the higher ore grade at Saucito, partly offset by
the decrease in gold production at Noche Buena.
By-Products
-- Quarterly attributable by-product lead production up 4.8% vs.
4Q22 due to a higher ore grade at Saucito and San Julián (DOB) and
the increased contribution from Juanicipio, partly offset by the
lower ore grade and volume of ore processed at Ciénega.
-- Quarterly attributable by-product zinc production up 4.6% vs.
4Q22 due to the higher volume of ore processed at Fresnillo,
increased contribution from Juanicipio and the higher ore grade at
San Julián (DOB) and Saucito, partly offset by the lower ore grade,
volume of ore processed and recovery rate at Ciénega.
-- Quarterly attributable by-product lead production increased
9.2% vs. 1Q22 due to the higher volume of ore processed at
Fresnillo and higher ore grade at San Julián (DOB), partly offset
by the decrease in volume of ore processed and lower ore grade at
Ciénega.
-- Quarterly attributable by-product zinc production slightly
increased by 1.7% vs. 1Q22, driven by the higher volume of ore
processed and ore grade at Fresnillo, partly offset by the lower
ore grade, recovery rate and volume of ore processed at Saucito and
San Juli án (DOB) .
Operations
The commissioning of Juanicipio was completed as planned during
1Q23. We are now in the ramp-up phase, with full nameplate capacity
expected by 3Q23. As previously reported, ore will continue to be
processed at the nearby Saucito and Fresnillo plants as
required.
We remain focused on complying with the requirements from the
state-owned electricity company and the energy regulator to
complete the tie-in of the Pyrites Plant to the national power
grid, with the commissioning and start up of operations expected in
2Q23 .
Attributable 1Q23 4Q22 % Change 1Q22 % Change
Silver (koz) 12,337 12,073 2.2 12,528 (1.5)
-------- -------- --------- -------- ---------
Silverstream (koz) 821 450 82.6 748 9.8
-------- -------- --------- -------- ---------
Total Silver (koz) 13,158 12,522 5.1 13,276 (0.9)
-------- -------- --------- -------- ---------
Gold (oz) 173,034 167,969 3.0 149,792 15.5
-------- -------- --------- -------- ---------
Lead (t) 13,368 12,756 4.8 12,244 9.2
-------- -------- --------- -------- ---------
Zinc (t) 24,118 23,060 4.6 23,726 1.7
-------- -------- --------- -------- ---------
Silver Equivalent Basis [1]
Attributable quarterly silver equivalent ounces of 27.0 moz in
1Q23 (4Q22: 25.9 moz, 1Q22: 25.3 moz).
SAFETY PERFORMANCE
We are extremely saddened to report that following an accident
in the first quarter, and subsequent complications in hospital, we
tragically lost a colleague from the Saucito mine. The safety and
wellbeing of our people remains our priority. We will continue
working to strengthen the deployment of our safety programmes, and
protocols that protect our people throughout all our operating
units and identify preventive measures to provide a safe
environment for our workforce. Our "I care, We care" programme
still needs to mature and be transformed into the safety culture in
our company, an objective that we are placing even more focus
on.
2023 OUTLOOK
2023 guidance remains unchanged. Attributable silver production
is expected to be in the range of 57.0 to 64.0 moz (including
Silverstream) while attributable gold production is expected to be
in the range of 590 to 640 koz. Expressed in silver equivalent
ounces (1) , production is expected to be 104 -115 million
ounces.
For further information, please visit our website
www.fresnilloplc.com or contact:
FRESNILLO PLC Tel: +44 (0)20 7399 2470
London Office
Gabriela Mayor, Head of Investor
Relations
Mark Mochalski
Mexico City Office Tel: +52 55 52 79 3206
Ana Belem Zárate
POWERSCOURT Tel: +44 (0)7793 858 211
Peter Ogden
MINING OPERATIONS
FRESNILLO MINE PRODUCTION
1Q23 4Q22 % Change 1Q22 % Change
Ore Processed (t) 668,366 624,105 7.1 575,499 16.1
--------- --------- --------- --------- ---------
Production
--------- --------- --------- --------- ---------
Silver (koz) 3,557 3,606 (1.4) 3,015 18.0
--------- --------- --------- --------- ---------
Gold (oz) 8,750 8,314 5.2 8,480 3.2
--------- --------- --------- --------- ---------
Lead (t) 5,651 5,609 0.7 4,787 18.0
--------- --------- --------- --------- ---------
Zinc (t) 12,094 11,097 9.0 9,381 28.9
--------- --------- --------- --------- ---------
Ore Grades
--------- --------- --------- --------- ---------
Silver (g/t) 184 197 (6.8) 179 2.7
--------- --------- --------- --------- ---------
Gold (g/t) 0.57 0.58 (2.4) 0.64 (12.0)
--------- --------- --------- --------- ---------
Lead (%) 1.00 1.05 (5.2) 0.99 1.1
--------- --------- --------- --------- ---------
Zinc (%) 2.42 2.37 1.9 2.24 8.2
--------- --------- --------- --------- ---------
Quarterly silver production slightly decreased 1.4% vs. 4Q22
mainly due to a lower ore grade as a greater portion of ore was
extracted from the western areas of the mine with lower silver ore
grade but higher base metal content. This was mitigated by the
higher volume of ore processed from these areas.
Quarterly silver production increased 18.0% vs. 1Q22 mainly as a
result of the higher volume of ore processed from the Candelaria,
San Alberto, San Ricardo, San Mateo and San Carlos areas and, to a
lesser extent, the higher ore grade.
Mine development rates increased quarter on quarter to an
average of 3,105m per month in 1Q23 (4Q22: 2,933m per month),
primarily due to the availability of equipment and the higher
productivity of some contractors and unionised personnel.
Quarterly by-product gold production increased 5.2% and 3.2% vs.
4Q22 and 1Q22 respectively, mainly driven by the higher volume of
ore processed, partially offset by the lower ore grade.
The silver ore grade in 2023 is expected to remain in the range
of 185-205 g/t, while the gold ore grade is expected to remain in
the range of 0.50-0.70 g/t.
SAUCITO MINE PRODUCTION
1Q23 4Q22 % Change 1Q22 % Change
Ore Processed (t) 471,959 508,455 (7.2) 495,419 (4.7)
--------- --------- --------- --------- ---------
Production
--------- --------- --------- --------- ---------
Silver (koz) 2,804 3,026 (7.3) 2,738 2.4
--------- --------- --------- --------- ---------
Gold (oz) 21,378 18,076 18.3 16,388 30.5
--------- --------- --------- --------- ---------
Lead (t) 4,301 3,859 11.5 4,264 0.9
--------- --------- --------- --------- ---------
Zinc (t) 5,991 5,868 2.1 7,299 (17.9)
--------- --------- --------- --------- ---------
Ore Grades
--------- --------- --------- --------- ---------
Silver (g/t) 207 208 (0.5) 193 7.5
--------- --------- --------- --------- ---------
Gold (g/t) 1.77 1.39 26.7 1.29 37.4
--------- --------- --------- --------- ---------
Lead (%) 1.07 0.90 18.9 0.98 9.1
--------- --------- --------- --------- ---------
Zinc (%) 1.68 1.56 8.0 1.81 (7.2)
--------- --------- --------- --------- ---------
Quarterly silver production decreased 7.3% vs. 4Q22 mainly
driven by the decrease in volume of ore processed due to lower
availability of mining scalers and haulage equipment at the West
and Central areas.
Quarterly silver production increased 2.4% vs. 1Q22 due to
higher ore grade at the Jarillas West area and lower dilution,
which more than compensated for the lower volume of ore processed
in 1Q23.
Quarterly by-product gold production increased 18.3% and 30.5%
vs. 4Q22 and 1Q22 respectively, mainly driven by a higher ore grade
at the Jarillas West area, partly offset by the lower volume of ore
processed.
We will continue working toward increasing the availability of
equipment and utilisation rates, whilst improving the productivity
of our personnel. These measures are expected to increase volumes
of ore processed in the coming months.
Full year 2023 silver ore grade is estimated to remain between
190-210 g/t, while the gold ore grade is estimated to continue to
be around 1.20-1.40 g/t.
PYRITES PLANT (PHASE I)
1Q23 4Q22 % Change 1Q22 % Change
Iron Concentrates Processed
(t) 27,952 32,211 (13.0) 32,364 (13.6)
-------- -------- --------- -------- ---------
Production
-------- -------- --------- -------- ---------
Silver (koz) 111 111 0.2 150 (25.9)
-------- -------- --------- -------- ---------
Gold (oz) 270 374 (27.7) 510 (47.0)
-------- -------- --------- -------- ---------
Ore Grades
-------- -------- --------- -------- ---------
Silver (g/t) 177 145 22.0 193 (8.3)
-------- -------- --------- -------- ---------
Gold (g/t) 1.31 1.19 9.3 1.59 (17.8)
-------- -------- --------- -------- ---------
Quarterly silver production remained flat vs. 4Q22 as the
decrease in volume of pyrite concentrates processed and lower
recovery rates were offset by a higher ore grade from the Saucito's
flotation plant due to lower dilution and better ore grade at long
hole drilling areas.
Quarterly silver production decreased 25.9% vs. 1Q22 due to the
decreased volume of pyrite concentrates processed, and lower ore
grade and recovery rate.
Quarterly gold production decreased 27.7% vs. 4Q22 due to the
lower recovery rate and decreased volume of pyrite concentrates
processed, partly offset by the higher ore grade from Saucito's
flotation plant.
Quarterly gold production decreased 47.0% vs. 1Q22 as a result
of the lower ore grade and recovery rate and the decrease in volume
of pyrite concentrates processed.
After the successful tie-in of Juanicipio mine in the 4Q22, the
Pyrites Plant awaits the tie-in process to the national grid in
2Q23. Once this takes place, commissioning and ramp up will start
immediately.
CIENEGA MINE PRODUCTION
1Q23 4Q22 % Change 1Q22 % Change
Ore Processed (t) 240,148 256,928 (6.5) 282,568 (15.0)
--------- --------- --------- --------- ---------
Production
--------- --------- --------- --------- ---------
Gold (oz) 9,302 9,122 2.0 9,990 (6.9)
--------- --------- --------- --------- ---------
Silver (koz) 980 982 (0.2) 1,416 (30.8)
--------- --------- --------- --------- ---------
Lead (t) 748 930 (19.6) 926 (19.2)
--------- --------- --------- --------- ---------
Zinc (t) 1,002 1,372 (27.0) 1,351 (25.9)
--------- --------- --------- --------- ---------
Ore Grades
--------- --------- --------- --------- ---------
Gold (g/t) 1.30 1.20 8.5 1.20 8.6
--------- --------- --------- --------- ---------
Silver (g/t) 147 139 5.9 179 (17.7)
--------- --------- --------- --------- ---------
Lead (%) 0.47 0.56 (14.7) 0.50 (6.0)
--------- --------- --------- --------- ---------
Zinc (%) 0.77 0.94 (18.2) 0.85 (9.1)
--------- --------- --------- --------- ---------
Quarterly gold production increased 2.0% vs. 4Q22 due to a
higher ore grade as a result of the positive variation with the
geological model. This was partly offset by the lower volume of ore
processed which resulted from the longer than expected maintenance
programme and delay in the preparation of stopes driven by the
reduced availability of equipment . These factors are expected to
improve in the coming months, thus increasing volumes of ore
processed by 3Q23.
Quarterly gold production decreased 6.9% vs. 1Q22 mainly due to
the lower volume of ore processed in accordance to the mine plan,
mitigated by the higher ore grade as a result of the previously
mentioned factors.
Quarterly silver production remained flat vs. 4Q22 mainly as a
result of the higher ore grade, offset by the lower volume of ore
processed.
Quarterly silver production decreased 30.8% vs. 1Q22 due to the
lower ore grade as a result of higher dilution in narrow veins and
decreased volumes of ore processed.
The gold and silver ore grades for 2023 are estimated to remain
in the ranges of 1.0-1.1 g/t and 150-160 g/t respectively.
SAN JULIÁN MINE PRODUCTION
1Q23 4Q22 % Change 1Q22 % Change
Ore Processed Veins (t) 283,752 294,582 (3.7) 294,144 (3.5)
--------- --------- --------- --------- ---------
Ore Processed DOB (t) 522,260 517,733 0.9 541,030 (3.5)
--------- --------- --------- --------- ---------
Total production at San
Julián
--------- --------- --------- --------- ---------
Gold (oz) 12,033 11,907 1.0 11,684 3.0
--------- --------- --------- --------- ---------
Silver (koz) 3,412 3,113 9.6 3,640 (6.3)
--------- --------- --------- --------- ---------
Production Veins
--------- --------- --------- --------- ---------
Gold (oz) 11,139 11,062 0.7 10,844 2.7
--------- --------- --------- --------- ---------
Silver (koz) 1,312 1,288 1.9 1,060 23.8
--------- --------- --------- --------- ---------
Production DOB
--------- --------- --------- --------- ---------
Gold (oz) 894 845 5.7 840 6.4
--------- --------- --------- --------- ---------
Silver (koz) 2,100 1,825 15.1 2,580 (18.6)
--------- --------- --------- --------- ---------
Lead (t) 1,855 1,712 8.4 1,608 15.4
--------- --------- --------- --------- ---------
Zinc (t) 3,755 3,604 4.2 4,725 (20.5)
--------- --------- --------- --------- ---------
Ore Grades Veins
--------- --------- --------- --------- ---------
Gold (g/t) 1.28 1.23 3.6 1.21 5.0
--------- --------- --------- --------- ---------
Silver (g/t) 158 149 6.1 123 27.9
--------- --------- --------- --------- ---------
Ore Grades DOB
--------- --------- --------- --------- ---------
Gold (g/t) 0.09 0.08 9.0 0.08 11.2
--------- --------- --------- --------- ---------
Silver (g/t) 146 130 11.9 173 (15.5)
--------- --------- --------- --------- ---------
Lead (%) 0.46 0.43 8.2 0.39 19.5
--------- --------- --------- --------- ---------
Zinc (%) 0.96 0.93 3.1 1.11 (13.2)
--------- --------- --------- --------- ---------
SAN JULIÁN VEINS
Quarterly silver and gold production slightly increased 1.9% and
0.7% vs. 4Q22 respectively, due to a higher ore grade at the San
Antonio, Ultima Tierra and Eliza areas which compensated for the
lower volume of ore processed due to the optimisation in the
maintenance programme in 4Q22.
Quarterly silver production increased 23.8% vs. 1Q22 mainly
driven by the aforementioned higher ore grade which was partly
offset by the lower volume of ore processed.
Quarterly gold production increased 2.7% vs. 1Q22 due to the
higher ore grade and, to a lesser extent, the improved recovery
rate which compensated for the lower volume of ore processed.
We continue to expect the 2023 silver and gold ore grades to
average 130-140 g/t and 1.20-1.30 g/t, respectively.
SAN JULIÁN DISSEMINATED ORE BODY (DOB)
Quarterly silver production increased 15.1% vs. 4Q22 mainly due
to higher ore grades at the 2,400 level and, to a lesser extent,
the higher recovery rate.
Quarterly silver production decreased 18.6% vs. 1Q22 due to the
lower ore grade in the areas in the periphery of the ore body, as
expected. Additionally, the lower volume of ore processed due to
unplanned maintenance stoppage at the beneficiation plant in 1Q23
also contributed to the decrease in silver production.
We continue to expect the 2023 silver ore grade to be in the
range of 130-140 g/t.
HERRADURA TOTAL MINE PRODUCTION
1Q23 4Q22 % Change 1Q22 % Change
Ore Processed (t) 6,485,710 7,084,437 (8.5) 4,216,598 53.8
----------- ----------- --------- ----------- ---------
Total Volume Hauled
(t) 29,223,867 27,446,767 6.5 32,784,771 (10.9)
----------- ----------- --------- ----------- ---------
Production
----------- ----------- --------- ----------- ---------
Gold (oz) 106,832 103,826 2.9 77,602 37.7
----------- ----------- --------- ----------- ---------
Silver (koz) 208 191 9.1 218 (4.4)
----------- ----------- --------- ----------- ---------
Ore Grades
----------- ----------- --------- ----------- ---------
Gold (g/t) 0.73 0.71 3.7 0.69 6.9
----------- ----------- --------- ----------- ---------
Silver (g/t) 1.72 1.35 27.4 2.25 (23.4)
----------- ----------- --------- ----------- ---------
Quarterly gold production increased 2.9% vs. 4Q22 mainly driven
by the higher recovery rate resulting from the increased irrigation
of inventory as leaching pad 14B is accessed , and higher ore
grade, partly offset by the lower volume of ore processed driven by
the failure of the main transformer at the dynamic leaching plant,
which is temporarily being replaced by a lower capacity transformer
while the main transformer is repaired.
Quarterly gold production increased 37.7% vs. 1Q22 mainly due to
the increase in volume of ore processed and higher ore grade mainly
as a result of a positive variation with the geological model. This
was partly offset by the lower recovery rate driven by gold
contents in solution still in the leaching process.
The adjusted production costs were impacted by the increase in
waste material hauled charged to costs, rather than capitalised,
despite the 20.6% decrease in the total volume of waste material
hauled (capitalised and charged to costs). This is because in 1Q22
the total stripping ratio of c. 6.8 was significantly higher than
the prevailing average stripping ratio for the life of the mine
(LOM) (under IFRIC 20 stripping costs above the average LOM
stripping ratio are capitalised), this higher stripping ratio was
due to the need to prepare and gain access to the mineral benches;
whereas in 1Q23 the 3.5 total stripping ratio was only slightly
higher than the prevailing average stripping ratio for LOM, thus
decreasing the portion of volume being capitalised.
The gold ore grade in 2023 is estimated to be in the range of
0.65-0.75 g/t.
NOCHE BUENA TOTAL MINE PRODUCTION
1Q23 4Q22 % Change 1Q22 % Change
Ore Processed (t) 1,711,348 1,232,125 38.9 1,789,478 (4.4)
----------- ----------- --------- ----------- ---------
Total Volume Hauled
(t) 6,595,264 7,296,832 (9.6) 5,178,188 27.4
----------- ----------- --------- ----------- ---------
Production
----------- ----------- --------- ----------- ---------
Gold (oz) 11,078 13,331 (16.9) 21,869 (49.3)
----------- ----------- --------- ----------- ---------
Silver (koz) 4 3 41.4 8 (48.1)
----------- ----------- --------- ----------- ---------
Ore Grades
----------- ----------- --------- ----------- ---------
Gold (g/t) 0.48 0.51 (5.6) 0.62 (22.9)
----------- ----------- --------- ----------- ---------
Silver (g/t) 0.15 0.21 (26.9) 0.31 (52.1)
----------- ----------- --------- ----------- ---------
Quarterly gold production decreased 16.9% vs. 4Q22 due to the
lower recovery rate driven by higher leaching pads and the lower
ore grade, partly offset by the higher volume of ore processed.
Quarterly gold production decreased 49.3% vs. 1Q22 due to the
decrease in recovery rate as described above, and a lower ore grade
and volume of ore processed.
The 2023 estimated gold ore grade remains in the range of
0.40-0.50 g/t, as the mine approaches the end of its operational
life.
JUANICIPIO
1Q23* 4Q22** % Change 1Q22** % Change
Ore Processed (t) 222,024 165,786 33.9 145,485 52.6
--------- --------- --------- --------- ---------
Production
--------- --------- --------- --------- ---------
Silver (koz) 1,260 1,042 20.9 1,344 (6.3)
--------- --------- --------- --------- ---------
Gold (oz) 3,392 3,020 12.3 3,269 3.8
--------- --------- --------- --------- ---------
Lead (t) 813 647 25.7 658 23.6
--------- --------- --------- --------- ---------
Zinc (t) 1,275 1,119 13.9 970 31.4
--------- --------- --------- --------- ---------
Ore Grades
--------- --------- --------- --------- ---------
Silver (g/t) 363 415 (12.5) 597 (39.2)
--------- --------- --------- --------- ---------
Gold (g/t) 1.08 1.31 (17.6) 1.58 (31.6)
--------- --------- --------- --------- ---------
Lead (%) 0.74 0.84 (11.9) 0.94 (21.3)
--------- --------- --------- --------- ---------
Zinc (%) 1.44 1.60 (10.0) 1.74 (17.2)
--------- --------- --------- --------- ---------
* Includes ore processed as part of the initial tests during the
commissioning of the Juanicipio plant and ore processed at the
Fresnillo and Saucito beneficiation plants.
** Ore processed at the Fresnillo and Saucito beneficiation
plants.
The commissioning of Juanicipio was completed as planned during
1Q23. The ramp-up phase has begun, with full nameplate capacity
expected by 3Q23. As previously reported, ore will continue to be
processed at the nearby Saucito and Fresnillo plants as
required.
As previously disclosed, Juanicipio will be an increasingly
major influence in Fresnillo plc operations with total average
annual silver and gold production of 11.7 moz and 43.5 koz
respectively over the life of mine.
UPDATE ON ADJUSTED PRODUCTION COSTS
Adjusted production costs in 1Q23 continued to be impacted
by:
1. ongoing cost inflation, along with the revaluation of the
Mexican peso vs. the US dollar of approximately +13.2% yoy;
2. a 53.8% increase in ore processed at Herradura (+2.3 million
tonnes); together with an increase in waste material hauled at
Herradura charged to costs (+65.1%, +8.4 million tonnes) .
SILVERSTREAM
Quarterly Silverstream production increased 82.6% vs. 4Q22 due
to the higher volume of ore processed following the technical
stoppage of the flotation plant in December and, to a lesser
extent, a higher ore grade.
Quarterly Silverstream production increased 9.8% vs. 1Q22 due to
a higher volume of ore processed and higher recovery rate, partly
offset by the lower ore grade.
Silver production in 2023 is estimated to be in the range of
2.5-3.5 moz.
UPDATE ON THE BILL TO REFORM MINING LAW PROPOSED IN MEXICO
The Company notes the regulatory initiative sent to the Mexican
Congress by the President of Mexico on 28 March 2023 (the
"Initiative") with a view to reforming several codes of
legislation, including Mexico's Federal Mining Law. The Initiative
was reviewed, modified and initially approved on 20 April 2023 (the
"Reformed Initiative") by the lower house of Congress (Chamber of
Deputies), subject to further discussion and analysis by the upper
house of Congress (the Mexican Senate) in accordance with the
legislative process in Mexico. The Reformed Initiative has now been
presented to the Mexican Senate for discussion, review and, if
thought fit, approval. Any such approval will be subject to its
return to the Federal Executive Branch for publication in due
course as a new law, which has not yet occurred. The Company will,
however, be monitoring these events closely, in order to review and
assess the possible outcomes and their potential consequences for
the mining sector in general, and Fresnillo plc in particular.
ABOUT FRESNILLO PLC
Fresnillo plc is the world's largest primary silver producer and
Mexico's largest gold producer, listed on the London and Mexican
Stock Exchanges under the symbol FRES.
Fresnillo plc has eight operating mines, all of them in Mexico -
Fresnillo, Saucito, Juanicipio, Ciénega, Herradura,
Soledad-Dipolos(1) , Noche Buena and San Julián (Veins and
Disseminated Ore Body), one development project - the Pyrites Plant
at Fresnillo, which has been completed and is awaiting tie-in of
the plant to the national electricity grid, and four advanced
exploration projects - Orisyvo, Rodeo, Guanajuato and Tajitos as
well as a number of other long term exploration prospects.
Fresnillo plc has mining concessions and exploration projects in
Mexico, Peru and Chile.
Fresnillo plc has a strong and long tradition of exploring,
mining, a proven track record of mine development, reserve
replacement, and production costs in the lowest quartile of the
cost curve for silver.
Fresnillo plc's goal is to maintain the Group's position as the
world's largest primary silver company and Mexico's largest gold
producer.
(1) Operations at Soledad-Dipolos are currently suspended.
FORWARD-LOOKING STATEMENTS
Information contained in this announcement may include
'forward-looking statements'. All statements other than statements
of historical facts included herein, including, without limitation,
those regarding the Fresnillo Group's intentions, beliefs or
current expectations concerning, amongst other things, the
Fresnillo Group's results of operations, financial position,
liquidity, prospects, growth, strategies and the silver and gold
industries are forward-looking statements. Such forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances. Forward-looking statements are not
guarantees of future performance and the actual results of the
Fresnillo Group's operations, financial position and liquidity, and
the development of the markets and the industry in which the
Fresnillo Group operates, may differ materially from those
described in, or suggested by, the forward-looking statements
contained in this document. In addition, even if the results of
operations, financial position and liquidity, and the 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 or developments in subsequent periods. A
number of factors could cause results and developments to differ
materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity
prices, changes in regulation, currency fluctuations (including the
US dollar and Mexican Peso exchanges rates), the Fresnillo Group's
ability to recover its reserves or develop new reserves, including
its ability to convert its resources into reserves and its mineral
potential into resources or reserves, changes in its business
strategy and political and economic uncertainty.
[1] Au:Ag ratio of 80:1
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END
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