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REG - Fresnillo Plc - 2Q22 Production Report

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RNS Number : 8093T  Fresnillo PLC  27 July 2022

 
                                                                                           Fresnillo
plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

www.fresnilloplc.com (http://www.fresnilloplc.com)

 

27 July 2022

SECOND QUARTER PRODUCTION REPORT

FOR THE THREE MONTHS ENDED 30 JUNE 2022

 

Octavio Alvídrez, Chief Executive Officer, said:

 

"I am pleased to report a solid quarter of production, in line with our
expectations. We are making good operational progress, despite the ongoing
impact of the pandemic and global supply chain bottlenecks, which are likely
to persist in the second half. We continue to address the challenges presented
by the Mexico labour reform which limits the use of contractors. Our
recruitment and training campaigns are proving effective and we should
complete this process by year end in our underground mines, while our open pit
mines are now fully staffed. We expect to achieve the tie-in of the Juanicipio
plant, our next major growth project, to the national electricity grid over
the coming weeks and to start commissioning and ramp-up of operations soon
after. We remain on track to meet our full year guidance."

 

TOTAL PRODUCTION

 

HIGHLIGHTS

 

Silver

 

•    Quarterly attributable silver production of 14.4 moz (including
Silverstream), up 8.1% vs. 1Q22 driven by a higher volume of ore processed and
higher ore grades at Fresnillo and Saucito and a higher ore grade at San
Julián Disseminated Ore Body (DOB).

 

•    Quarterly attributable silver production (including Silverstream)
decreased 3.6% vs. 2Q21 due to the expected lower ore grade and decreased
volume of ore processed at San Julián DOB. This was mitigated by the
increased contribution of ore from Juanicipio.

 

•    First half attributable silver production of 27.6 moz (including
Silverstream), in line with 1H21 as the expected lower ore grade at San
Julián DOB and lower volume of ore processed at Saucito was offset by the
increased contribution of ore from Juanicipio.

 

Gold

 

•     Quarterly attributable gold production of 159.0 koz, up 6.1% vs.
1Q22, primarily due to the expected higher volume of ore processed at
Herradura and Noche Buena.

 

•     Quarterly attributable gold production decreased 20.6% vs. 2Q21
mainly due to a lower recovery rate and the expected decrease in the volume of
ore processed at Herradura.

 

•     First half attributable gold production of 308.8 koz, down 27.9%
vs. 1H21 primarily due to a decrease in the volume of ore processed and lower
ore grade at Herradura and Saucito.

 

Silver Equivalent Basis 1  (#_ftn1)

 

Attributable quarterly silver equivalent ounces of 27.1 moz in 2Q22 (2Q21:
30.9 moz) and attributable first half silver equivalent ounces of 52.3 moz
(1H21: 61.8 moz).

 

OPERATING ENVIRONMENT

 

The labour reform in Mexico which restricts subcontracting of labour came into
effect from 1st September 2021 resulting in the requirement to internalise a
high proportion of our contractor workforce. The actions we announced to
address this short term challenge, including recruitment campaigns, training
and investment in new equipment, are on-going. We expect to complete the
staffing process in the Fresnillo District, San Julián and Ciénega by year
end, and as previously reported, our open pit mines are now fully staffed. The
challenges set out in the first quarter, including a tight labour market,
global supply chain bottlenecks and cost inflation remain and these will have
some impact in the second half of the year.

 

COVID-19 UPDATE

 

As reported during the previous quarter, we saw a drop in Covid-related
absenteeism across our operations from March onwards and have seen a more
limited impact on our operations during 2Q22. Though we have implemented
strict protocols to limit the spread of the virus, a fifth wave has now
reached Mexico and we are seeing a rise in positive cases in the country.
Should this trend continue, we will see an increase in Covid-related
absenteeism in the second half. The safety and well-being of our people is our
priority, and we continue to closely monitor the spread of the virus and
implement a range of safety measures across our business.

 

By-Products

 

•     Quarterly attributable by-product lead and zinc production
increased 18.7% and 13.0% vs. 1Q22 respectively, driven primarily by higher
volumes of ore processed and ore grades at Saucito and Fresnillo and higher
ore grades at San Julián DOB.

 

•     Quarterly attributable by-product lead and zinc production
decreased 11.3% and 3.2% vs. 2Q21 respectively, due to lower volumes of ore
processed and lower ore grades at Saucito and San Julián DOB.

 

•   Similarly, first half attributable by-product lead and zinc
production decreased 15.6% and 5.7% vs. 1H21 respectively, primarily due to
lower volumes of ore processed and ore grades at Saucito and a decrease in ore
grades at San Julián DOB.

 

 

                     2Q22     1Q22     % Change  2Q21     % Change  1H22     1H21     % Change
 Silver (koz)        13,664   12,528   9.1       14,092   (3.0)     26,192   25,931   1.0
 Silverstream (koz)  692      748      (7.5)     803      (13.8)    1,440    1,599    (9.9)
 Total Silver (koz)  14,356   13,276   8.1       14,895   (3.6)     27,632   27,530   0.4
 Gold (oz)           158,960  149,792  6.1       200,163  (20.6)    308,752  428,356  (27.9)
 Lead (t)            14,535   12,244   18.7      16,386   (11.3)    26,779   31,726   (15.6)
 Zinc (t)            26,808   23,726   13.0      27,687   (3.2)     50,533   53,568   (5.7)

 

 

DEVELOPMENT PROJECTS

 

We expect to complete the tie-in of the Juanicipio plant and Pyrites Plant at
Fresnillo to the national electricity grid in the coming weeks. Commissioning
of the Juanicipio plant will follow soon after with the ramp up of the plant
beginning towards the end of the third quarter.

 

SAFETY PERFORMANCE

 

The safety and wellbeing of our people remains our absolute priority and we
continue to nurture a strong safety culture across all our mines through the
reinforcement of our safety training and the monitoring of the adherence to
our safety policies. The 'I Care, We Care' programme continues to be rolled
out across the business and is a central aspect of all operations and new
development projects.

 

 

2022 OUTLOOK

 

We remain on track to meet our 2022 full year guidance of 50.5 to 56.5 moz of
attributable silver (including Silverstream) and 600 to 650 koz of
attributable gold production.

 

INTERIM RESULTS

Fresnillo will announce its 2022 Interim Results on 2(nd) of August 2022.

 

 

For further information, please visit our website www.fresnilloplc.com
(http://www.fresnilloplc.com) or contact:

 FRESNILLO PLC                                                            Tel: +44 (0)20 7399 2470

 London Office

 Gabriela Mayor, Head of Investor Relations

 Patrick Chambers
 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

 

                    2Q22     1Q22     % Change  2Q21     % Change  1H22       1H21       % Change
 Ore Processed (t)  618,860  575,499  7.5       579,863  6.7       1,194,359  1,141,223  4.7

 Production
 Silver (koz)       3,595    3,015    19.2      3,348    7.4       6,609      6,608      0.0
 Gold (oz)          9,668    8,480    14.0      8,736    10.7      18,148     17,112     6.1
 Lead (t)           5,644    4,787    17.9      4,875    15.8      10,432     9,367      11.4
 Zinc (t)           10,758   9,381    14.7      8,404    28.0      20,139     15,546     29.5

 Ore Grades
 Silver (g/t)       197      179      10.1      201      (1.6)     189        202        (6.5)
 Gold (g/t)         0.69     0.64     7.0       0.69     (0.5)     0.67       0.69       (3.3)
 Lead (%)           1.10     0.99     10.7      0.99     10.7      1.04       0.97       7.8
 Zinc (%)           2.46     2.24     9.9       2.07     18.6      2.35       1.95       20.5

 

Quarterly silver production was up 19.2% vs. 1Q22 due to a higher ore grade
and a higher volume of ore processed having regained access to some higher
grade mining areas during the previous quarter, helping to increase
operational flexibility.

 

Quarterly silver production increased 7.4% vs. 2Q21 driven by a higher volume
of ore processed in 2Q22 as ore throughput was affected in 2Q21, when a short
circuit of a main power line occured, limiting the water pumping capacity
thereby affecting access to some mining areas and limiting haulage
capabilities. This was partially offset by the slightly lower ore grade due to
limited access to some areas with higher ore grades as we continued to
experience relatively limited operational flexibility.

 

First half silver production remained flat vs. 1H21 due to the expected lower
ore grade in line with the mining sequence.

 

Mine development rates remained at similar levels quarter on quarter averaging
2,900m per month in 2Q22 (1Q22: 2,866m per month). We remain confident that we
can maintain a rate of 2,900 to 3,100 m per month on average as previously
stated over the coming months.

 

Quarterly by-product gold production increased 14.0% vs. 1Q22 driven by a
higher volume of ore processed and ore grade.

 

Quarterly and year to date by-product gold production increased 10.7% and 6.1%
vs. 2Q21 and 1H21 respectively, due to a higher volume of ore processed and a
higher recovery rate.

 

The silver ore grade in 2022 is expected to remain in the range of 190-210
g/t, while the gold ore grade is expected to remain in the range of 0.55-0.70
g/t.

 

 

SAUCITO MINE PRODUCTION

 

                    2Q22     1Q22     % Change  2Q21     % Change  1H22       1H21       % Change
 Ore Processed (t)  512,739  495,419  3.5       660,039  (22.3)    1,008,158  1,310,923  (23.1)

 Production
 Silver (koz)       3,043    2,738    11.1      3,454    (11.9)    5,781      6,602      (12.4)
 Gold (oz)          16,785   16,388   2.4       24,760   (32.2)    33,172     51,578     (35.7)
 Lead (t)           5,180    4,264    21.5      7,650    (32.3)    9,444      15,490     (39.0)
 Zinc (t)           8,367    7,299    14.6      11,722   (28.6)    15,665     23,570     (33.5)

 Ore Grades
 Silver (g/t)       205      193      6.3       190      7.9       199        184        8.4
 Gold (g/t)         1.31     1.29     1.8       1.51     (13.3)    1.30       1.58       (17.9)
 Lead (%)           1.19     0.98     20.5      1.35     (12.3)    1.09       1.38       (21.1)
 Zinc (%)           2.12     1.81     17.0      2.43     (12.7)    1.97       2.45       (19.7)

 

Quarterly silver production increased 11.1% vs. 1Q22 mainly due to a higher
ore grade and an increased volume of ore processed.

 

Quarterly silver production decreased 11.9% vs. 2Q21 as a result of the lower
volume of ore processed driven by the residual impact of the labour reform in
Mexico. This was mitigated by the higher ore grade due to improved dilution
control, as well as successfully regaining access to certain areas of the mine
that were impacted by the localised seismicity in previous quarters, and an
improved recovery rate due to more efficient grinding in the mill circuit.

 

First half silver production decreased 12.4% vs. 1H21 due to a lower volume of
ore processed, mitigated by a higher ore grade, for reasons explained above.

 

We continued our recruitment and training campaigns with the target of
gradually reducing the shortage of personnel through the second half of the
year. However, as explained in the prior quarters, we continue to expect some
variability in the ore grade and volumes of ore processed in 2022 driven by
the need for additional development of the mine in order to recapture
operational flexibility following high levels of localised seismicity and
shortages of personnel reported last year.

 

Quarterly by-product gold production increased 2.4% vs. 1Q22 driven by the
higher volume of ore processed, offset by a lower recovery rate.

 

Quarterly and first half by-product gold production decreased 32.2%  and
35.7% vs. 2Q21 and 1H21, respectively, due to a lower volume of ore processed
for reasons explained above and a lower ore grade.

 

Full year 2022 silver ore grade is expected to remain between 175-195 g/t,
while the gold ore grade is estimated to remain around 1.10-1.20 g/t.

 

 

PYRITES PLANT (PHASE I)

 

                                    2Q22    1Q22    % Change  2Q21    % Change  1H22    1H21    % Change
 Pyrite Concentrates Processed (t)  33,326  32,364  2.8       48,523  (31.3)    65,690  90,283  (27.2)

 Production
 Silver (koz)                       126     150     (16.0)    167     (24.5)    277     304     (9.0)
 Gold (oz)                          422     510     (17.3)    721     (41.5)    932     1,399   (33.3)

 Ore Grades
 Silver (g/t)                       160     193     (17.2)    147     8.5       176     145     21.4
 Gold (g/t)                         1.21    1.59    (23.8)    1.56    (22.6)    1.40    1.60    (12.6)

 

Quarterly silver and gold production decreased 16.0% and 17.3% vs. 1Q22 due to
lower ore grades.

 

Quarterly silver production decreased 24.5% vs. 2Q21 due to a lower volume of
pyrite concentrates processed which was mitigated by the higher ore grade.

 

Quarterly and first half gold production decreased 41.5% and 33.3% vs. 2Q21
and 1H21 respectively, due to a decrease in the volume of pyrite concentrates
processed from Saucito's flotation plant and a lower ore grade.

 

First half silver production decreased 9.0% vs. 1H21 primarily due to a lower
volume of pyrite concentrates processed, mitigated by a higher ore grade and
recovery rate.

 

In 2022, we continue to estimate silver production from the Pyrites plant at
Saucito to be in the range of 700 to 750 koz while gold production is
estimated to remain in the range of 1.5 to 2.5 koz.

 

We expect to complete the tie-in of the plant to the national electricity grid
in the coming weeks followed by the ramp up of the plant soon after.

 

 

 

CIENEGA MINE PRODUCTION

 

                    2Q22     1Q22     % Change  2Q21     % Change  1H22     1H21     % Change
 Ore Processed (t)  280,526  282,568  (0.7)     333,959  (16.0)    563,094  660,123  (14.7)

 Production
 Gold (oz)          8,917    9,990    (10.7)    12,406   (28.1)    18,907   26,696   (29.2)
 Silver (koz)       1,069    1,416    (24.5)    1,425    (24.9)    2,485    2,723    (8.7)
 Lead (t)           758      926      (18.1)    964      (21.4)    1,684    2,191    (23.1)
 Zinc (t)           1,245    1,351    (7.9)     1,669    (25.4)    2,596    3,642    (28.7)

 Ore Grades
 Gold (g/t)         1.08     1.20     (10.1)    1.24     (13.1)    1.14     1.34     (15.4)
 Silver (g/t)       138      179      (23.0)    154      (10.4)    159      150      5.9
 Lead (%)           0.43     0.50     (14.5)    0.49     (11.3)    0.47     0.54     (13.3)
 Zinc (%)           0.79     0.85     (6.6)     0.91     (13.1)    0.82     0.99     (16.9)

 

Quarterly gold and silver production decreased 10.7% and 24.5% vs. 1Q22,
respectively, primarily due to a lower ore grade as a higher proportion of ore
from the main Ciénega mine was processed, as opposed to processing ore from a
satellite operation in the surrounding area with a higher average ore grade.

Quarterly gold and silver production decreased 28.1% and 24.9% vs. 2Q21,
respectively, due to a lower volume of ore processed given the continued
impact of the labour reform in Mexico, in addition to the lower ore grades.

First half gold production decreased 29.2% vs. 1H21, due to the lower ore
grade year-on-year, and lower volume of ore processed for reasons explained
above. First half silver production decreased 8.7% vs. 1H21 due to a lower
volume of ore processed, mitigated by a higher ore grade.

The gold and silver ore grades for 2022 are expected to remain in the range of
1.20-1.40 g/t and 145-155 g/t respectively.

 

SAN JULIÁN MINE PRODUCTION

 

                                  2Q22     1Q22     % Change  2Q21     % Change  1H22       1H21       % Change
 Ore Processed Veins (t)          289,821  294,144  (1.5)     302,475  (4.2)     583,966    591,148    (1.2)
 Ore Processed DOB (t)            535,326  541,030  (1.1)     555,055  (3.6)     1,076,326  1,003,728  7.2

 Total production at San Julián
 Gold (oz)                        11,748   11,684   0.5       15,546   (24.4)    23,433     29,346     (20.1)
 Silver (koz)                     4,328    3,640    18.9      5,219    (17.0)    7,968      8,649      (7.9)

 Production Veins
 Gold (oz)                        10,865   10,844   0.2       14,320   (24.1)    21,710     27,147     (20.0)
 Silver (koz)                     1,175    1,060    10.9      1,027    14.5      2,235      1,992      12.2

 Production DOB
 Gold (oz)                        883      840      5.1       1,226    (28.0)    1,723      2,199      (21.7)
 Silver (koz)                     3,152    2,580    22.2      4,192    (24.8)    5,733      6,657      (13.9)
 Lead (t)                         2,325    1,608    44.6      2,813    (17.4)    3,933      4,507      (12.7)
 Zinc (t)                         5,368    4,725    13.6      5,751    (6.7)     10,093     10,533     (4.2)

 Ore Grades Veins
 Gold (g/t)                       1.22     1.21     0.5       1.56     (21.6)    1.22       1.52       (19.7)
 Silver (g/t)                     138      123      11.9      115      19.9      131        115        13.7

 Ore Grades DOB
 Gold (g/t)                       0.09     0.08     13.0      0.12     (24.8)    0.08       0.12       (29.2)
 Silver (g/t)                     213      173      23.4      275      (22.6)    193        240        (19.8)
 Lead (%)                         0.51     0.39     31.5      0.61     (16.7)    0.45       0.55       (18.4)
 Zinc (%)                         1.29     1.11     17.1      1.38     (6.0)     1.20       1.38       (13.0)

 

SAN JULIÁN VEINS

Quarterly silver production increased 10.9% and 14.5% vs. 1Q22 and 2Q21
respectively, due to higher ore grades driven by an operational decision to
adjust the mine plan to prioritise extraction from wider veins of the mine
with higher silver content but a lower gold ore grade.

Quarterly gold production remained at a similar level to 1Q22.

Quarterly and first half gold production decreased 24.1% and 20.0% vs. 2Q21
and 1H21 respectively, mainly as a result of a lower ore grade for the reasons
explained above.

First half silver production increased 12.2% vs. 1H21 due to a higher ore
grade as explained above.

We continue to expect the 2022 silver and gold ore grades to average 120-130
g/t and 1.35-1.55 g/t, respectively.

 

SAN JULIÁN DISSEMINATED ORE BODY (DOB)

 

Quarterly silver production increased 22.2% vs. 1Q22, due to a higher ore
grade as a result of an updated mining sequence, increasing the proportion of
higher grade ore extracted from the central area of the ore body.

Quarterly silver production decreased 24.8% vs. 2Q21 due to the expected lower
ore grade following the higher than anticipated ore grade in 2Q21 as a result
of: i) the positive variation with the geological model in the central area of
the ore body; and ii) access to higher ore grade areas following the mine
resequencing in 2019, as set out at the time.

First half silver production decreased 13.9% vs. 1H21 due to the expected
lower ore grade for the reasons explained above, mitigated by a higher volume
of ore processed.

We continue to expect the 2022 silver ore grade to be in the range of 150-170
g/t as we advance towards the lower grade areas in the periphery of the ore
body.

 

HERRADURA TOTAL MINE PRODUCTION

 

                          2Q22        1Q22        % Change  2Q21        % Change  1H22        1H21        % Change
 Ore Processed (t)        5,301,678   4,216,598   25.7      5,482,544   (3.3)     9,518,276   11,494,407  (17.2)
 Total Volume Hauled (t)  31,548,611  32,784,771  (3.8)     33,153,978  (4.8)     64,333,382  66,655,154  (3.5)

 Production
 Gold (oz)                83,043      77,602      7.0       108,990     (23.8)    160,644     258,165     (37.8)
 Silver (koz)             169         218         (22.3)    227         (25.5)    387         530         (27.0)

 Ore Grades
 Gold (g/t)               0.67        0.69        (2.7)     0.68        (1.9)     0.68        0.81        (16.3)
 Silver (g/t)             1.49        2.25        (33.6)    1.74        (14.1)    1.83        2.03        (9.9)

 

Quarterly gold production increased 7.0% vs. 1Q22 mainly due to a higher
volume of ore processed due to a higher utilisation rate of the mining fleet,
partially offset by a lower recovery rate.

Quarterly gold production decreased 23.8% vs. 2Q21 due to a lower recovery
rate, as increased volumes of sulphide ore are processed.

First half gold production decreased 37.8% vs. 1H21 due to an expected lower
volume of ore processed and ore grade, in line with the mine plan.

The gold ore grade in 2022 is expected to remain in the range of 0.65-0.75
g/t.

 

NOCHE BUENA TOTAL MINE PRODUCTION

 

                          2Q22       1Q22       % Change  2Q21       % Change  1H22        1H21        % Change
 Ore Processed (t)        2,594,599  1,789,478  45.0      2,530,510  2.5       4,384,077   3,703,923   18.4
 Total Volume Hauled (t)  8,105,466  5,178,188  56.5      6,585,098  23.1      13,283,655  13,248,211  0.3

 Production
 Gold (oz)                25,234     21,869     15.4      28,564     (11.7)    47,103      43,228      9.0
 Silver (koz)             6          8          (22.8)    8          (20.8)    14          12          14.6

 Ore Grades
 Gold (g/t)               0.53       0.62       (14.3)    0.53       (0.2)     0.57        0.52        10.3
 Silver (g/t)             0.22       0.31       (30.1)    0.17       25.8      0.26        0.19        38.6

 

Quarterly gold production increased 15.4% vs. 1Q22 due to an increase in the
volume of ore deposited as a result of a better team performance, partially
offset by a lower ore grade.

Quarterly gold production decreased 11.7% vs. 2Q21 due to a lower recovery
rate.

First half gold production increased 9.0% vs. 1H21 due to a higher volume of
ore deposited as a result of a lower stripping ratio, decreasing the waste
material moved, in addition to a higher ore grade, partially offset by a lower
recovery rate.

The expected gold ore grade in 2022 is expected to remain in the range of
0.40-0.50 g/t.

 

JUANICIPIO

Development ore from Juanicipio continued to be processed through the
Fresnillo and Saucito flotation plants during the quarter. On an attributable
basis, 1,328 koz of silver and 3,143 oz of gold were produced in 2Q22.

 

As reported in previous quarters, the construction of the Juanicipio plant was
delivered on schedule in 4Q21. The tie-in of the plant to the national
electricity grid at Juanicipio is expected in the coming weeks. Commissioning
of the plant and ramp-up of operations will follow soon after.

 

SILVERSTREAM

 

Quarterly Silverstream production decreased 7.5% vs. 1Q22 and 13.8% vs. 2Q21
mainly due to a lower ore grade. Similarly, year to date Silverstream
production decreased 9.9% vs. 1H21 due to a lower ore grade and lower volume
of ore processed.

 

Expected silver production in 2022 remains in the range of 2.5-3.5 moz.

 

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 seven operating mines, all of them in Mexico - Fresnillo,
Saucito, Ciénega (including Las Casas Rosario & Cluster Cebollitas),
Herradura, Soledad-Dipolos(1), Noche Buena and San Julián (Veins and
Disseminated Ore Body), two development projects - the Pyrites Plant at
Fresnillo and Juanicipio, both of which have been completed and are awaiting
tie-ins of the plants to the national electricity grid in the coming weeks,
and three advanced exploration projects - Orisyvo, Rodeo and Guanajuato, 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  (#_ftnref1) Au:Ag ratio of 80:1

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