Fresnillo plc' Board meeting

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Fresnillo plcInterim Results 2008 August 19,
2008
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Disclaimer

• This document includes statements that are, or
  may be deemed to be, forward-looking
  statements. These forward-looking statements can
  be identified by the use of forward-looking
  terminology, including the terms believes,
  estimates, plans, projects, anticipates,
  expects, intends, may, will, or should
  or, in each case, their negative or other
  variations or comparable terminology, or by
  discussions of strategy, plans, objectives,
  goals, future events or intentions. These
  forward-looking statements include all matters
  that are not historical facts. They appear in a
  number of places throughout this document and
  include, but are not limited to, statements
  regarding the Fresnillo Groups intentions,
  beliefs or current expectations concerning, among
  other things, the Fresnillo Groups results of
  operations, financial position, liquidity,
  prospects, growth, strategies and the silver and
  gold industries.
• By their nature, 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 Groups 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 exchange rates), the Fresnillo Groups
  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, political and economic
  uncertainty.
• Forward-looking statements may, and often do,
  differ materially from actual results. Any
  forward-looking statements in this document speak
  only as of the date of this document, reflect the
  Fresnillo Groups current view with respect to
  future events and are subject to risks relating
  to future events and other risks, uncertainties
  and assumptions relating to the Fresnillo Groups
  operations, results of operations, growth
  strategy and liquidity. Investors should
  specifically consider the factors identified in
  this document which could cause actual results to
  differ before making an investment decision.
  Subject to the requirements of the Prospectus
  Rules, the Disclosure and Transparency Rules and
  the Listing Rules or applicable law, the
  Fresnillo Group explicitly disclaims any
  obligation or undertaking publicly to release the
  result of any revisions to any forward-looking
  statements in this document that may occur due to
  any change in the Companys expectations or to
  reflect events or circumstances after the date of
  this document.

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Agenda

1H08 Highlights Jaime Lomelin Development
Projects and Exploration David Giles Financial
Review Mario Arreguin Conclusion Jaime Lomelin Q
and A
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1H 2008 Highlights

• Increased EBITDA and Cash Flow levels
• Stable Production in line with mining plan, Cost
  Control
• Higher price environment
• Delivering on growth
• Resource upgrades
• 22 contained silver ounces at Fresnillo
• 11 contained gold ounces at Herradura
• 6 contained gold ounces at Cienega
• Development projects on schedule
• Two new veins at Fresnillo II discovered
• Exploration success
• Strong balance sheet with no bank debt
• Maiden interim dividend of US0.059 (5.9 cents)
  per share

Committed to double production, on a silver
equivalent basis, within the next 10 years
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Financial Highlights
1 Fresnillo attributable production 2 The
weighted average number of shares for 1H 2008 was
656,131,000. For 2007, the EPS calculation has
assumed that the ordinary shares in issue,
pursuant to the Merger agreement dated 18 April
2008, had been in issue throughout the period.
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Highlights Mines in Operation
Fresnillo
Ciénega
Herradura3
1 Resources update from 1 January 2008 to 31 May
2008, latest data available 2 Cost incurred
directly during the mining process such as
labour, raw materials, contractors, energy,
freight and maintenance 3 56 owned by Fresnillo
plc
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Growth Pipeline delivering on growth
Key developments in 1H08

• Stable production
• Resources growth
• Production cost control

FresnilloHerraduraCiénega
Existing mining operations

• Shaft and ramp progress
• Resources definition
• Soledad and Dipolos feasibility study in progress

Fresnillo II (Saucito)Soledad Dipolos in the
Herradura Corridor
Development projects
Fresnillo II (Jarillas Valdecañas)San
JuliánOrisyvo San Juan

• Extension of mineralised zones

Exploration prospects
Lucerito, Leones, San Ramon, San Javier,
Garambullo, Tocayos, Casandra, Villagarcia,
Sianori, Jarros, Maguarichi, S. Brigida,
Petlacala, Guanajuato, Carmen

• International Northair JV
• Garambullo and Leones drill ready

Target definition
Other claims
Prospective gold-silver belts
Prospect generation
Source SRK Mineral Expert's Report
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Agenda

1H08 Highlights Jaime Lomelin Development
Projects and Exploration David Giles Financial
Review Mario Arreguin Conclusion Jaime Lomelin Q
and A
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Development Projects Fresnillo II
Fresnillo II

• 7 increase in meters drilled (29,800 m)
• Resources increased at Fresnillo II. Positive
  drilling results obtained on the Jarrillas and
  Valdecañas Veins
• Two new veins were discovered, Madroño and
  Mezquite
• Shaft extended to 530 meters, and on target for
  completion to 570 meters at year end ramp to
  3000 meters
• Operation in Saucito on schedule to start in 2011
  
• Operation in Jarillas and Valdecañas East
  expected to start 2015

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Development Projects Fresnillo II
Silver Gold Veins
Fresnillo
Shaft
Fresnillo Mine
Shaft Project
Fresnillo II
V. Sto. Niño

• FRESNILLO II
• Minera Saucito
• (100 Fresnillo Plc)
• Saucito Vein
• Jarillas Vein
• Extensión Valdecañas
• Sta. Natalia Vein
• Madroño Vein
• Mezquite Vein
• Minera Juanicipio
• (56 Fresnillo Plc)
• Valdecañas Vein
• Juanicipio Vein

V. Sn. Carlos
V. Valdecañas
V. Sta. Natalia
V. Sta. Cruz
V. Juanicipio
V. Jarillas
V. Madroño
Lote Juanicipio
V. Mezquite
V. Saucito
2 Km
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Development Projects Soledad and Dipolos
Soledad and Dipolos

• Infill drilling 67,600 metres reverse circulation
  and 6,000 metres core
• Resources upgraded to 606,000 oz
  measured-indicated, plus 167,000 oz inferred.
  Potential remains open.
• Feasibility study in progress
• Pre stripping expected to begin Q42008
• On schedule to commence production in Q42009,
  reaching a peak rate of approx 100koz of gold per
  year in 2010
• Exploration activity continues with five reverse
  circulation drill rigs

Soledad
Dipolos
Tajo Centauro
On target to commence production in 2009
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Advanced Exploration Prospects
San Julian, Chihuahua
Orisyvo, Chihuahua
San Juan, Durango
plus JV option signed with Northair, at La India
project
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Exploration Success in 1H2008
San Julian
Orisyvo
LIMIT OF ALTERATION
SILVER JM DISCOVERY
New silver and gold discoveries
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Agenda

1H08 Highlights Jaime Lomelin Development
Projects and Exploration David Giles Financial
Review Mario Arreguin Conclusion Jaime Lomelin Q
and A
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Consolidated Income Statement
1 Adjusted revenue is revenue as disclosed in the
income statement adjusted to exclude hedging
effects and treatment and refining charges
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Revenue by Product
1H 2008
1H 2007
US493.8 m1
US382.9 m1
1 Adjusted revenue is revenue as disclosed in the
income statement adjusted to exclude hedging
effects and treatment and refining charges.
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Consolidated Income Statement Gross Profit
analysis
(Million dollars)
(excluding profit sharing)
Non Operational
Operational
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Production Cost
1H 2008
1H 2007
US104.0 m
US81.9 m
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Cash Cost Analysis Equivalent Silver Ounces
US/oz
Non Operational
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Consolidated Income Statement Net Profit
analysis
(Million dollars)
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Consolidated Cash Flow Statement
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Consolidated Cash Flow Statement Analysis
(Million dollars)
Shares issued and paid
Net cash from operating activities
Proceeds from repayments of loans granted to
related parties
Silverstream contract
Sale of property and equipment
Other proceeds
Transsaction cost related to the IPO
Purchase of property and equipment
Distribution to equity shareholders
Repayment of loans granted by related parties
Increase in cash
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Consolidated Balance Sheet
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Interim Dividend

• Policy is to pay out between 33 and 50 of
  profits after tax (excluding minorities)
• One third at interim, and two thirds at final
• Cash position as of 30 June 08 US286.6 m
• Interim dividend of US42.31m, equivalent to 5.9
  cents (US0.059) per share, to be paid on 19
  September 2008

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Agenda

1H08 Highlights Jaime Lomelin Development
Projects and Exploration David Giles Financial
Review Mario Arreguin Conclusion Jaime Lomelin Q
and A
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Conclusion Delivering on Growth
Near term growth

• Strong EBITDA and cash flow from operations
• Optimisation of existing mines stable
  production and cost control
• Strong balance sheet with no bank debt
• Resource upgrade at all operating mines (22
  silver ounces at Fresnillo, 6 gold ounces at
  Ciénega and 11 gold ounces at Herradura)
• Soledad and Dipolos on track for development
  feasibility study in progress

Medium term growth

• Fresnillo II
• Increased resources and two new veins discovered
• Development on track for pre-feasibility during
  1Q2009

• Exploration success
• Mineralisation extended at San Juan, San Julian,
  Orisyvo
• New Joint Venture with Northair
• Drilling to commence at two properties
  Garambullo and Leones

Long term growth
Committed to double production, on a silver
equivalent basis, within the next 10 years
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Agenda

1H08 Highlights Jaime Lomelin Development
Projects and Exploration David Giles Financial
Review Mario Arreguin Conclusion Jaime Lomelin Q
and A