TIDMFRES
RNS Number : 9190A
Fresnillo PLC
03 June 2019
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com
3 June 2019
Fresnillo plc
Report on Payments to Governments for the Year 2018
Background
This Report provides an overview of the payments to governments
made by Fresnillo plc and its subsidiaries for the year ended 31
December 2018 as required under the UK Reports on Payments to
Governments Regulation 2014 and its amendment in December 2015 (the
UK Regulations). This Report is also intended to satisfy the
requirements of the Disclosure and Transparency Rules of the
Financial Conduct Authority in the United Kingdom.
This Report is available for download from
http://www.fresnilloplc.com/investor-relations/regulatory-announcements/
The 'Basis of Preparation' section below contains information
about the content of the Report, the types of payments included and
the principles that have been applied in preparing the Report.
Basis for preparation - Report on Payments to Governments for
the year 2018
Reporting entities
In accordance with the UK Regulations, this Report includes
payments to government made by Fresnillo plc and its subsidiary
undertakings (Fresnillo).
Activities
Payments made by Fresnillo to governments arising from
activities involving the exploration, prospection, discovery,
development and extraction of minerals (extractive activities) are
disclosed in this Report. When payments cover both extractive and
processing activities and cannot be split, the payment has been
disclosed in full.
Government
Government includes any national, regional or local authority of
a country to which Fresnillo has made a payment related to these
regulations, and includes any department, agency or entity that is
controlled by such authority.
Project
Payments are reported at project level, except for payments that
are not attributable to a specific project which are reported at
entity level. Within the UK Regulations, a project is defined as
being the operational activities which are governed by a single
contract, licence, lease, concession or a similar legal agreement,
and form the basis for payment liabilities with a government. If
agreements of this kind are substantially interconnected (i.e.
forming a set of operationally and geographically integrated
contracts, licenses, leases or concessions) these are treated for
the purposes of these Regulations as a single project. Indicators
of integration include geographic proximity and common operational
management. For some payments that cannot be attributable to a
specific project, they were indicated at an entity level.
Materiality
In line with the UK Regulations, where a payment or a series or
related payments have not exceeded GBP86,000 (US$114,241[1]) they
have not been disclosed.
Reporting currency
Payments disclosed in this report have been disclosed in US
Dollars. Where actual payments have been made in a currency other
than US Dollars, i.e. Mexican pesos (MXN), they have been
translated using the annual average exchange rate MXN / USD issued
by The Central Bank of Mexico[2].
Type of payments
a) Taxes. There are taxes paid by Fresnillo on its income,
including special mining rights. Payments are reported net of
refunds. In accordance with the UK Regulations payments made in
relation to consumption, sales or employee taxes were excluded.
b) License fees, rental fees, entry fees and other
considerations for licenses or concessions. These are fees paid as
consideration for acquiring a license for gaining access to an area
where extractive activities are performed.
Payments reported are on a cash flow basis and refunds are
included in the year received (i.e. 2018).
Other types of payments that are required to be disclosed in
accordance with the UK Regulations are the following; however, for
the year ended 31 December 2018, there were no such reportable
payments made by Fresnillo to a government:
- Production entitlements
- Royalties
- Dividends
- Signature, discovery and production bonuses
- Infrastructure improvements
REPORT ON PAYMENTS TO GOVERNMENTS 2018
SUMMARY REPORT PER COUNTRY (IN USD)
Production Taxes (1) Royalties Dividends Bonuses Licenses & Infrastructure Total
entitlements concessions improvements
fees
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
MEXICO 0 256,065,675 0 0 0 20,649,666 0 276,715,341
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
PERU 0 0 0 0 0 3,923,697 0 3,923,697
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Total 0 256,065,675 0 0 0 24,573,364 0 280,639,039
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
MEXICO
GOVERNMENT REPORT (IN USD)
Production Taxes Royalties Dividends Bonuses Licenses & Infrastructure Total
entitlements concessions improvements
fees
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Ministry of
Economics 0 27,664,128 0 0 0 19,106,670 0 46,770,798
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Ministry of
Environment and
Natural
Resources 0 0 0 0 0 376,906 0 376,906
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Ministry of
Finance and
Public Credit 0 228,401,547 0 0 0 0 0 228,401,547
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
National Forestry
Commission 0 0 0 0 0 463,797 0 463,797
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
National Water
Commission 0 0 0 0 0 702,294 0 702,294
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Total 0 256,065,675 0 0 0 20,649,666 0 276,715,341
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
PROJECT REPORT (IN USD)
Production Taxes Royalties Dividends Bonuses Licenses & Infrastructure Total
entitlements concessions improvements
fees
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
PROJECT
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Ciénega 0 11,465,257 0 0 0 2,217,340 0 13,682,596
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Fresnillo 0 120,145,528 0 0 0 4,840,803 0 124,986,330
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Herradura /
Nochebuena 0 70,796,142 0 0 0 4,021,875 0 74,818,017
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Juanicipio (2) 0 0 0 0 0 502,965 0 502,965
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
San Julián 0 0 0 0 0 2,547,985 0 2,547,985
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Saucito 0 41,211,082 0 0 0 6,518,700 0 47,729,782
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
ENTITY LEVEL
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Comercializadora
de Metales
Fresnillo, S.A.
de C.V. 0 6,164,865 0 0 0 0 0 6,164,865
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Exploraciones
Mineras
Parreña
S.A. De C.V. 0 4,016,365 0 0 0 0 0 4,016,365
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Operaciones
Fresnillo, S.A.
de C.V. 0 1,603,540 0 0 0 0 0 1,603,540
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Servicios
Administrativos
Fresnillo, S.A.
de C.V. 0 662,896 0 0 0 0 0 662,896
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Total 0 256,065,675 0 0 0 20,649,666 0 276,715,341
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
PERU
GOVERNMENT REPORT (IN USD)
Production Taxes Royalties Dividends Bonuses Licenses & Infrastructure Total
entitlements concessions improvements
fees
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Ministry of
Energy and
Mining 0 0 0 0 0 3,923,697 0 3,923,697
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Total 0 0 0 0 0 3,923,697 0 3,923,697
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
PROJECT REPORT
(IN USD)
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Production Taxes Royalties Dividends Bonuses Licenses & Infrastructure Total
entitlements concessions improvements
fees
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
ENTITY LEVEL
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Fresnillo
Perú,
S.A.C. 0 0 0 0 0 3,923,697 0 3,923,697
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Total 0 0 0 0 0 3,923,697 0 3,923,697
------------- ------------ ---------- ---------- -------- ------------ --------------- ------------
Notes:
1: All tax payments made in 2018 to the Ministry of Finance and Public Credit (the Mexican
Tax authorities) are presented net of refunds received in 2018.
2: Represents 100% of the payments related to Juanicipio (56% Fresnillo plc, 44% MAG Silver)
For further information, please visit our website
www.fresnilloplc.com or contact:
Fresnillo plc Tel: +44 (0)20 7399 2470
London Office
Gabriela Mayor, Head of Investor
Relations
Patrick Chambers
Mexico City Office Tel: +52 55 52 79 3206
Ana Belem Zárate
Powerscourt Tel: +44 (0)20 7250 1446
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 seven operating mines, all of them in Mexico -
Fresnillo, Saucito, Ciénega (including the San Ramón satellite
mine), Herradura, Soledad-Dipolos(1) , Noche Buena and San Julián,
two development projects - the Pyrites Plant at Fresnillo and
Juanicipio, and three advanced exploration projects - Orisyvo, Las
Casas Rosario & Cluster Cebollitas and Centauro Deep, 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
[1] Bloomberg 2018 average exchange rate 1.3284 USD / GBP
[2] Banco de Mexico 2018 average exchange rate 19.2373 MXN /
USD
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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