REG - Fresnillo Plc - Statement re Juanicipio commissioning update

FresnilloAnnouncement

13/09/2022 07:00

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RNS Number : 1951Z  Fresnillo PLC  13 September 2022

 
 

 

 

 

 Fresnillo plc

 21 Upper Brook Street

 London W1K 7PY

 United Kingdom

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

 

September 13, 2022

FRESNILLO PROVIDES JUANICIPIO COMMISSIONING UPDATE

 

Fresnillo plc is pleased to confirm that all construction activities related
to final tie-in to the electrical grid have been completed and all systems are
ready to be energised. Prior to making the final tie-in to the electrical
grid, as a precautionary measure to ensure uninterrupted service to the
surrounding area, the state-owned electricity regulator, CFE (Comisión
Federal de Electricidad), has requested additional testing to verify
compatibility between new and updated substation equipment installed by
Juanicipio and existing older CFE infrastructure. Specialised start-up
protocols and operations controls may also need to be implemented during
initial mill start-up to prevent local power fluctuations. Given the extensive
preparatory and testing work already undertaken, the project team does not
foresee any impediment to a successful conclusion to this precautionary
measure.

 

Based on the timing of these tests, we expect that power for final
commissioning and start of operations should be available by the end of
October, and that production ramp up will commence immediately thereafter.

 

In the meantime, stoping, underground development and material stockpiling at
Juanicipio will continue uninterrupted. We will continue to make available any
unused plant capacity at Fresnillo and Saucito operations to process
mineralised material produced at Juanicipio during this period.

 

As a result, there is no impact on full year production guidance, nor on
expected production from Juanicipio in 2023 and beyond.

 

Octavio Alvídrez, Chief Executive Officer of Fresnillo said:

 

"We continue to make good progress to complete the tie-in of the new
Juanicipio mine to the national grid and I am pleased that we are a step
closer to achieve this important milestone. We have undertaken extensive
testing work to ensure tie-in proceeds smoothly. However, safety has always
been at the core of our activities and we fully understand the prudent
approach taken by the electricity regulator. Juanicipio is our next major
growth project, the ninth new mine we have successfully constructed since we
listed in London in 2008. Juanicipio will make a material contribution to our
production from 2023 and we look forward to its successful commissioning in
the fourth quarter."

 

 

 

 

 

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-Dipolos1, 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 currently
in the process of final commissioning before ramping up, 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.

 

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
 Mexico City Office                                             Tel: +52 55 52 79 3206

 Ana Belem Zárate
 Powerscourt                                                    Tel: +44 (0)20 7549 0997
 Peter Ogden

 

Fresnillo plc 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.

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