REG - Fresnillo Plc - Report on Payments to Governments
09/07/2024 09:45
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RNS Number : 6809V Fresnillo PLC 09 July 2024
Fresnillo plc
21 Upper Brook Street
London W1K 7PY
United Kingdom
www.fresnilloplc.com (http://www.fresnilloplc.com)
9 July 2024
Fresnillo plc - Report on Payments to Governments for the year 2023
Background
This Report provides an overview of the payments to governments made by
Fresnillo plc and its subsidiaries for the year ended 31 December 2023 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/
(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 2023
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 £86,000 (US$106,947 1 (#_ftn1) ) 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 (#_ftn2) .
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) Royalties.
c) 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. 2023).
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
2023, there were no such reportable payments made by Fresnillo to a
government:
- Production entitlements
- Dividends
- Signature, discovery and production bonuses
- Infrastructure improvements
REPORT ON PAYMENTS TO GOVERNMENTS 2023
SUMMARY REPORT PER COUNTRY (IN USD)
Production entitlements Taxes ((1)) Royalties Dividends Bonuses Licenses & concessions fees Infrastructure improvements Total
MEXICO 0 255,639,961 616,223 0 0 41,347,940 0 297,604,125
PERU 0 0 0 0 0 2,261,351 0 2,261,351
CHILE 0 0 0 0 0 372,693 0 372,693
Total 0 255,639,961 616,223 0 0 43,981,985 0 300,238,169
MEXICO
GOVERNMENT REPORT (IN USD)
Production entitlements Taxes Royalties Dividends Bonuses Licenses & concessions fees Infrastructure improvements Total
Ministry of Economics 0 59,339,442 616,223 0 0 30,745,437 0 90,701,102
Ministry of Finance and Public Credit 0 196,300,519 0 0 0 0 0 196,300,519
National Water Commission 0 0 0 0 0 10,602,504 0 10,602,504
Total 0 255,639,961 616,223 0 0 41,347,940 0 297,604,125
PROJECT REPORT (IN USD)
Production entitlements Taxes Royalties Dividends Bonuses Licenses & concessions fees Infrastructure improvements Total
PROJECT
Ciénega 0 3,561,282 0 0 0 3,094,466 0 6,655,748
Fresnillo 0 50,052,972 0 0 0 5,151,070 0 55,204,042
Herradura / Nochebuena 0 22,093,054 0 0 0 16,218,546 0 38,311,600
Juanicipio ((2)) 0 83,437,912 0 0 0 176,041 0 83,613,953
San Julián 0 48,496,879 616,223 0 0 6,819,829 0 55,932,931
Saucito 0 39,807,954 0 0 0 9,772,026 0 49,579,980
ENTITY LEVEL
Comercializadora de Metales Fresnillo, S.A. de C.V. 0 8,993,986 0 0 0 0 0 8,993,986
Exploraciones Mineras Parreña S.A. de C.V. 0 (2,809,523) 0 0 0 0 0 (2,809,523)
Exploraciones y Desarrollos Mineros Coneto, S.A.P.I. de C.V. 0 0 0 0 0 115,963 0 115,963
Fresnillo plc 0 1,718,991 0 0 0 0 0 1,718,991
Operaciones Fresnillo, S.A. de C.V. 0 150,460 0 0 0 0 0 150,460
Servicios Administrativos Fresnillo, S.A. de C.V. 0 135,995 0 0 0 0 0 135,995
Total 0 255,639,961 616,223 0 0 41,347,940 0 297,604,125
PERU
GOVERNMENT REPORT (IN USD)
Production entitlements Taxes Royalties Dividends Bonuses Licenses & concessions fees Infrastructure improvements Total
Ministry of Energy and Mining 0 0 0 0 0 2,261,351 0 2,261,351
Total 0 0 0 0 0 2,261,351 0 2,261,351
PROJECT REPORT (IN USD)
Production entitlements Taxes Royalties Dividends Bonuses Licenses & concessions fees Infrastructure improvements Total
ENTITY LEVEL
Fresnillo Perú, 0 0 0 0 0 2,261,351 0 2,261,351
S.A.C.
Total 0 0 0 0 0 2,261,351 0 2,261,351
CHILE
GOVERNMENT REPORT (IN USD)
Production entitlements Taxes Royalties Dividends Bonuses Licenses & concessions fees Infrastructure improvements Total
Ministry of Mining 0 0 0 0 0 372,693 0 372,693
Total 0 0 0 0 0 372,693 0 372,693
PROJECT REPORT (IN USD)
Production entitlements Taxes Royalties Dividends Bonuses Licenses & concessions fees Infrastructure improvements Total
ENTITY LEVEL
Fresnillo Chile SpA. 0 0 0 0 0 372,693 0 372,693
Total 0 0 0 0 0 372,693 0 372,693
Notes:
1: All tax payments made in 2023 to the Ministry of Finance and Public
Credit (the Mexican Tax authorities) are presented net of refunds received in
2023.
2: Represents 100% of the payments related to Juanicipio (56% Fresnillo
plc, 44% MAG Silver)
1 (#_ftnref1) Bloomberg 2023 average exchange rate 1.2435 USD/GBP
2 (#_ftnref2) Banco de México 2023 average exchange rate 17.7620 MXN/USD
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