REG - Fresnillo Plc - Update on new Mexican Mining Law

FresnilloAnnouncement

09/05/2023 07:15

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RNS Number : 7671Y  Fresnillo PLC  09 May 2023

 
Fresnillo Plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

www.fresnilloplc.com (http://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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