Fresnillo updates on the success of the additional testing requested by CFE

Fresnillo

Fresnillo plc (LON:FRES) has provided an update on the success of the additional testing requested by the state-owned power company, CFE (Comisión Federal de Electricidad). The testing to verify compatibility between new and updated substation equipment installed by Fresnillo on behalf of Fresnillo and MAG Silver as part of the Juanicipio Project and existing older CFE infrastructure has been concluded successfully.

Specifically, Fresnillo can confirm that the main substation that will provide power to the project has been inspected and approved for use. This is a key milestone as the new components of the substation are now fully connected to the grid and the main transformer for the project has been energised. Tests on the downstream power distribution and control systems for final tie in to the national grid are continuing in line with the CFE requirements.

Fresnillo acknowledges and appreciates the significant contribution made by CFE and Centro Nacional de Control de Energía (CENACE) for their cooperation, support and engagement as we continue to work closely with them towards concluding this final process.

Fresnillo is very confident in the integrity of the new systems and that they will meet the stringent requirements of the regulator. In addition, we are confident in our ability to effect a rapid ramp-up of operations once all final elements are formally approved and full load commissioning at Juanicipio commences.

Mine development at Juanicipio is ongoing with a substantial stockpile built in anticipation of the commencement of milling operations, in the interim, ore will continue to be processed at our nearby Saucito and Fresnillo operations.

As a result, there is no impact on 2022 production, nor on our 2023 production expectations.

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