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 or contact:
Fresnillo plc
London Office
Gabriela Mayor, Head of Investor Relations
Tel: +44 (0)20 7399 2470
Mexico City Office
Ana Belem Zárate
Tel: +52 55 52 79 3206
Powerscourt
Peter Ogden
Tel: +44 (0)20 7549 0997
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.
Original Article: http://otp.investis.com/clients/uk/fresnillo2/rns/regulatory-story.aspx?cid=191&newsid=1624140
