10th Anniversary of Listing on the LSE

RNS Number : 7572P

Fresnillo PLC

31 May 2018

 

                                                                                                        Fresnillo plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

www.fresnilloplc.com

31 May 2018

Fresnillo plc

Fresnillo celebrates 10^th anniversary of listing on the LSE

Fresnillo has a history stretching back to the year 1910, today the Company ("Fresnillo") celebrates 10 years as a London listed business. As the first Mexican company to list in London, the IPO represented a pioneering step by an ambitious business pursuing a strategy of sustainable long-term growth. On its admission to the Main Market of the London Stock Exchange, Fresnillo joined the FTSE 100 index, where it has remained.   

Fresnillo's listing on the London Stock Exchange (LSE) was a significant milestone in the development of the business following its spin out from parent company Peñoles Group. Fresnillo has remained committed to its stated strategy of enhancing efficiencies at existing operations whilst still exploring new opportunities. During its time on the LSE, Fresnillo has achieved considerable financial and operational progress, meeting the objectives set out at the time of the IPO.

Since the IPO, Fresnillo has invested over US$6 billion to sustain and expand its operations, develop new projects, from three mines in 2008 to seven today, undertake strategic acquisitions and increase silver equivalent resources by 158%, firmly establishing itself as the world's leading producer of silver and Mexico's largest gold producer. The Company achieved its IPO target for gold production of 750koz three years ahead of plan (up from 264koz in FY 2008) and remains on track to deliver its 10 year silver production of 65moz in 2018 (up from 37.8 moz in FY 2008).

Fresnillo has remained committed to acting responsibly - its people are core to its success. Since 2008, Fresnillo has seen a 149% increase in the number of employees to 4,817 today. Fresnillo has invested over US$120 million in Health & Safety initiatives for its workforce and distributed over US$280 million in profit sharing to employees since 2008, in addition to having contributed US$2.3bn in taxation to the Mexican economy.

Finally, throughout the volatility of the resources cycle, Fresnillo has continued to prioritise returns to its investors. It has returned US$2.5 billion in dividends to shareholders, having never failed to pay an interim and final dividend since listing. The Company's share price has grown from 555p to 1,338p, outperforming the FTSE 100 market by over 118%.

Alberto Baillères, Chairman of Fresnillo said:

"We can look back on our first 10 years as a London listed business with real pride. I would like to thank all our employees for their huge efforts, as well as our shareholders for their continued long term support.

"We have remained faithful to our stated strategy, investing in our business, growing production and delivering returns to our shareholders in what has been a very volatile time for the wider mining sector.

"We are also proud to represent Mexico on the London Stock Exchange and to have been one of the first Latin American companies to seek a London listing. Our presence in London has been integral to our ability to support our growth over the years and we look forward to this continuing into the future.

"We face the coming years confident in our strategy and with renewed commitment to delivering on our potential. Our strategic focus of enhancing existing assets, while seeking new opportunities remains unchanged and we look forward to the next 10 years with great excitement and enthusiasm." 

For further information, please visit our website www.fresnilloplc.com or contact:

Fresnillo plc            London Office                                   Gabriela Mayor, Head of Investor Relations Patrick Chambers	Tel: [phone]
Mexico City Office Ana Belem Zárate	Tel: [phone]
Powerscourt Peter Ogden	Tel: [phone]

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 the San Ramón satellite mine), Herradura, Soledad-Dipolos¹, Noche Buena and San Julián (phase I and II), two development projects - the Pyrites plant, and second line of DLP at Herradura, and four advanced exploration projects - Orisyvo, Juanicipio, Las Casas Rosario & Cluster Cebollitas and Centauro Deep, as well as a number of other long term exploration prospects. In total, Fresnillo plc has mining concessions covering approximately 1.8 million hectares in Mexico.

Fresnillo plc has a strong and long tradition of 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, producing 65 million ounces of silver per year by 2018, having already surpassed the gold target of 750,000 ounces.

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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