Last checked at 27 May 2009 07:00
Fresnillo Plc
28 Grosvenor Street
London W1K 4QR
United Kingdom
www.fresnilloplc.com
27 May 2009
Annual General Meeting Statement
Fresnillo plc will hold its Annual General Meeting today at 11.30 am in London, and Mr Alberto Baillères, Chairman, will make the following comment:
"Our May 2008 debut on the London Stock Exchange marked the beginning of a new chapter in Fresnillo plc's long history. I am pleased to report that all of the operational commitments we made at the time of the IPO have been met in our first year as a publicly listed company despite the unprecedented turmoil in the financial markets.
We have had a strong start to 2009, with silver production up 9% on last year and stable gold production. In US dollar terms, our costs are declining compared to last year due to a higher exchange rate, lower input costs and our ongoing cost control programme. This year we are expecting the ongoing operational efficiencies at our mines to result in a slightly higher level of silver and gold production than that achieved in 2008.
Our development projects are nearing production with our gold project, Soledad-Dipolos, expected to begin in the first quarter of 2010. Our Saucito silver and gold project which is just a few kilometres from our existing Fresnillo mine is on track to commence production in 2011. These two projects are prime examples of our strategy of consolidating mining districts to create world class operations.
Acting in a responsible manner towards our employees, the environment and the communities in which we operate is integral to Fresnillo plc's activities. Over the year, we invested US$800,000 in our sustainability programmes and are continually looking at ways to implement best practice through new programmes.
After the end of the financial year, we announced that Hector Rangel, an independent non-executive director, would be standing down. At the same time, we announced the appointment of Fernando Solana who has had a distinguished career in government, diplomacy and banking, to replace Mr Rangel.
In conclusion, Fresnillo plc performed strongly in 2008 delivering on promises and developing a strong platform for future growth. During the year we remained focussed on our goal of maintaining our position as the world's largest primary silver producer, with the aim of doubling gold and silver production by 2018. Equally, we remained true to our core values of trust, responsibility, integrity and loyalty.
The fundamentals of Fresnillo are strong. By its very nature, our business is cyclical and the challenges that we are facing in 2009 will be met with a highly experienced management team that has been through numerous cycles before. Fresnillo has a strong balance sheet and our focus will be on improving the Company's cost efficiency. We are confident that by maximising the potential of our existing operations and growing the business organically and by strategic acquisitions, we will generate value for our shareholders, not only in the short-term but, just as importantly, in the medium and long-term.
End
For further information, please visit our website, www.fresnilloplc.com or contact:
Fresnillo plc
London Office Tel: +44 (0)20 7399 2470
Octavio Alvidrez, Head of Investor Relations
Mexico City Office
Gabriela Mayor Tel: +52 55 52 79 3203
JPMorgan Cazenove Tel: +44 (0)20 7588 2828
Ian Hannam
Andrew Wray
Brunswick Tel: +44 (0)20 7404 5959
Patrick Handley
Carole Cable
About Fresnillo plc
Fresnillo Plc is the world's largest primary silver producer and Mexico's second largest gold producer, listed on the London Stock Exchange under the symbol FRES.
Fresnillo has three producing mines, all of them in Mexico - Fresnillo, Ciénega and Herradura; two development projects - Saucito, Soledad & Dipolos; and three exploration prospects - San Juan, San Julian, Orysivo, as well as a number of other long term exploration prospects and, in total, has mining concessions covering approximately 1.75 million hectares in Mexico.
Fresnillo has a strong and long tradition of mining, a proven track record of mining development and reserves replacement, and a low cost of production, being in the lowest quartile of the cost curve for both silver and gold.
Fresnillo intends to maintain its position as the world's largest primary silver producer with the aim of approximately doubling production, on a silver equivalent ounce basis by 2018 and increasing its gold production.