TIDMFRES
RNS Number : 7671Y
Fresnillo PLC
09 May 2023
Fresnillo Plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
9 May 2023
Update on new Mexican Mining Law
Further to the last update provided by Fresnillo plc
("Fresnillo" or the "Company") in its production report on 26 April
2023, the Company is today providing an update on the reform to
Mexico's Federal Mining Law (the "Reform"), which has now been
enacted.
Fresnillo continues to analyse the Reform in detail; however, at
this stage, the Company does not believe it will have any material
impact on its current operations or advance exploration projects.
Specifically:
1. Concessions for current operating mines.
Regarding mining concessions for current operations, none of the
Company's current operations are expected to be impacted as a
consequence of the new law, since the Company has all necessary
concessions currently in place to permit its operations on an
ongoing basis.
Furthermore, the average remaining term of such concessions is
28 years and would, in any case, each be subject to renewal at the
end of their respective terms.
2. Concessions for current advance exploration projects.
Regarding concessions for Fresnillo's main advance exploration
projects Orisyvo and Rodeo, Fresnillo currently holds all
concession permits which have an average term of 33 years, and
which are in any case subject to renewal at the end of their
respective terms.
3. Regarding tailings dams.
Fresnillo continues to analyse any possible implications
regarding new requirements for the deposit of tailings or
industrial residues. However, no significant adverse impact is
currently anticipated.
4. Environmental and social aspects.
Fresnillo notes that the new legislation places greater emphasis
on environmental and social obligations. Consistent with its
purpose to contribute to the wellbeing of people through the
sustainable mining of silver and gold, Fresnillo will continue to
comply with environmental and social best practices and obligations
in the places where it operates.
5. Additional regulations to new law.
Fresnillo notes that certain aspects of the new law may require
additional clarifications from the regulator. This would be
accomplished either through guidance and/or complementary
regulation ("leyes reglamentarias") that is yet to be issued.
Fresnillo will continue to engage with all relevant stakeholders to
ensure it is meeting the requirements on the law.
Fresnillo will continue to review any potential aspects of the
new law which may merit legal analysis in order to determine the
best course of action, including potential challenges based on
constitutional aspects, if any."
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)20 7549 0997
Peter Ogden
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.
LEI: 549300JXWH1UV5J0XV81
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