annual report 2015 · ing. carlos slim helú chairman of the board of directors ing. alejandro...

ANNUALREPORT2015

INDEX01·COMPANY PROFILE

02·HISTORY

03·FINANCIAL AND OPERATING HIGHLIGHTS

04·STOCKHOLDER REPORT

05·OPERATING UNITS

06·PROJECTS UNDER FEASIBILITY STUDY AND IMPLEMENTATION

07·EXPLORATION

08·RESEARCH AND DEVELOPMENT

09·COLLABORATORS

10·SOCIAL

11·ENVIRONMENTAL PERFORMANCE

12·CORPORATE GOVERNANCE

2

4

6

8

12

32

34

37

38

40

42

46

PAGE

Minera Frisco is a mining company with a long history of exploration and exploitation of mining lots for production and sale of mainly gold and silver doré bars. It also produces copper cathode in addition to copper, lead-silver and zinc concentrates. The company currently has nine operating mining units in Mexico: El Coronel, Asientos, El Porvenir, Tayahua, San Felipe, María, San Francisco del Oro, Ocampo and Concheño.

Minera Frisco maintains a permanent strategy of process improvement, cost minimization and result maximization. Through its own resources, the company uses profitable, cut-ting-edge technology for mineral location and processing. Moreover, it carries out explora-tion for the development of new projects, two of which are currently under development: Tayahua Cu-Primario and Guanaceví.

At the end of 2015, the company had 7,918 employees. Socially, it develops activities to improve the life quality of the communities that are related to its mining projects and units, promoting training, education and health. In addition, it implements sustainability initia-tives that focus on minimizing waste generation, water and energy consumption, and on compensating for adverse environmental impact.

VISIONTo be an efficient mining company extracting precious and base metals through minimum-risk processes, guaranteeing our stockholders’ return on investment and favoring sustainable development of the communities in which we operate.

PRINCIPLES • Honesty and intellectual integrity

• Quality at a low cost

• Operating efficiency

• Workplace safety

• Environmental compliance

• Community integration

MISSIONTo develop a harmonious relationship with all our stakeholders, always promoting a culture of innova-tion, and technological and environmental efficiency practices that will allows us to work together towards the achievement of our common goals.

01 COMPANY PROFILE

2015 ANNUAL REPORT 3MINERA FRISCO2

02 HISTORY

1962As a result of the new Mining Law, foreign and Mexican companies associate to constitute Minera Frisco, S.A.

1972Minera Lampazos starts operations with the exploitation of silver minerals (the unit closed down in 1987).

1978Minera Cumobabi, S.A. de C.V. starts operations exploiting copper and molyb-denum minerals (closed down in 1989).

1980Minera Maria starts operations in the municipality of Cananea in Sonora, exploiting copper minerals (closed down in 1981).

1985Empresas Frisco, S.A. de C.V. is constitu-ted; acquired by Grupo Carso.

1994Compañía San Felipe in Baja California starts operations (closed down in 2001).

1998Minera Tayahua in Mazapil, Zacatecas, is acquired (51% ).

2001Creation of the ¨Reserva San Francisco del Oro¨ Management Unit for the Con-servation of Wild Life (UMA).

2004The second stage of Minera María starts operations, exploiting copper minerals for cathode production.

2008Start of operations of the Asientos unit in Aguascalientes and the El Coronel unit in Zacatecas.

2010Starting in the second semester, Frisco began a program of investment in six pro-jects of expansion and new mining units.

2011In January, Minera Frisco S.A.B. de C.V. began trading in the Mexican Stock Exchange.

2012Acquisition of the Ocampo mine and the Venus and Los Jarros projects concluded.

2013Start of operations of El Porvenir and Concheño, as well as of the expansion operations of the El Coronel and San Felipe units.

2014Start of the consolidation stage of new projects and their expansions.

2015Work is carried out to make every unit more efficient through the develop-ment and implementation of strategies that will allow minimization of macro-economic impacts.

2015 ANNUAL REPORT 54 MINERA FRISCO

SALES

PRODUCTION

GOLD(‘000 Oz)

SILVER(‘000 Oz)

COPPER(‘000 Oz)

SALES(MXN MILLIONS) 2015 2014 2013 VARIATION %

2015/2014 VARIATION %

2014/2013

Gold 7,583 6,959 4,810 9% 45%

Silver 2,146 2,055 1,928 4% 7%

Lead 458 380 365 21% 4%

Zinc 1,054 1,030 916 2% 12%

Copper 1,395 1,930 2,182 -28% -12%

Hedging effect 971 39 104 – –

Other services 3 6 – – –

Consolidated 13,611 12,398 10,305 10% 20%

19%

17%

17%4%

4%3%

21%11%

16%

9%

8%

8%

47%60% 56%

2015 SALES PER PRODUCT



Gold Silver Lead Zinc Copper

2013

2013

2013

2014

2014

2014

2015

2015

2015

269

7,523

26,296

423

8,855

25,822

411

9,331 20,871

03 FINANCIAL AND OPERATING HIGHLIGHTS

SELECTED DATA 2015 2014 VARIATION % 2015/2014

Production

Gold Oz 411,858 423,340 -3%

Silver Oz 9,331,069 8,854,540 5%

Copper tonnes 20,871 25,823 -19%

Net salesMXN$ million 13,611 12,398 10%

US$ million 860 931 -8%

Operating profitMXN$ million 1,271 1,368 -7%

US$ million 80 103 -22%

EBITDA MXN$ million 4,648 4,521 3%

US$ million 294 339 -13%

Operating margin 9% 11%

EBITDA margin 34% 36%

ZINC(Tn)

LEAD(Tn)

2013

2013

2014

2014

2015

2015

63,675

18,914

58,913

18,275

71,628

21,642


04 STOCKHOLDER REPORT

MINERA FRISCO

After a period of expansion, in 2015 Minera Frisco focused on the con-solidation and optimization of its operations. Facing an environment of metals falling prices, the company implemented efficiency strate-gies in order to optimize the use of its resources in the achievement of better results.

Tonnage processing in the operations of Minera Frisco was maintained at practically the same levels during 2015 when compared to 2014.

During the first half of the year 2015 most of the units operated at maximum capacity; while in the second half, units such as Concheño, El Porvenir and El Coronel decreased their processed tonnage due to the effect of increased rainfall registered in this period. María did not make any deposits in 2015, since it made its last deposit in the third quarter of 2014. At San Felipe, a greater tonnage was processed due to the improvements in its crushing circuit and also to the start of mineral processing in the underground mine at the end of 2015. San

Francisco del Oro, Asientos and Tayahua experienced a slight increase in processed tonnage when comparing year after year; this was a result of better use of installed capacity.

In terms of metal production, when comparing 2015 with 2014, production of gold decreased by 3%, silver production increased by 5% and copper production decreased by 19% this one due mainly to the decrease in production at María. Zinc and Lead production increased 22% and 18% respectively.

Net sales increased by 10% in 2015 with respect to 2014, reaching Ps.13,611 MM. It is worth men-tioning that the prices of major metals produced, decreased for the third consecutive year, the prices of gold, silver and copper decreased by 8%, 18% and 20% respectively. This reduction and a lower production of gold and copper affected directly financial results, obtaining an EBITDA margin of 34%, two percentage points less than in 2014.

THE GROWTH OF THE GDP WAS 2.5%, DRIVEN MAINLY BY TRADE AND MANUFACTURING, WHICH GREW AT 4.5% AND 2.9% RESPECTIVELY

THE COMPANY IMPLEMENTED EFFICIENCY STRATEGIES IN ORDER TO OPTIMIZE THE USE OF ITS RESOURCES IN THE ACHIEVEMENT OF BETTER RESULTS

The global economic environment in 2015 sustained a moderate growth rate. World markets were impacted by the fall in oil prices and commodities, the strengthening of the U.S. dollar and nervousness in the face of the economic slowdown of China.

The dramatic drop in oil prices and inputs affected the economies dependent from them, benefi-ting net importing countries, the industry -through energy costs- as well as consumers.

In Mexico, growth of the GDP was 2.5%, driven mainly by trade and manufacturing, which grew at 4.5% and 2.9% respectively, and took a negative impact from the fall in the volume and price of oil; without considering this sector, the economy would have grown at about 3%. The increase in money transfers (remittances) of 5% in USD and 25% in pesos, greater total salaries and a low inflation rate, were reflected in a rise in consumption.

Inflation in Mexico was 2.13% in the year. Trade balance was affected by the drop in oil prices and showed a deficit of 14 billion dollars. Due to the continuous volatility of the Mexican peso against the US dollar, the Central Bank intervened in the market auctioning dollars, throughout the year international reserves decreased 24 billion dollars.

The cut in public spending announced for 2016, the finan-cial adjustment in Pemex, oil price coverage at 49 USD per barrel, the intervention of the central Bank in monetary policy and the operating surplus of the Banco de México, generated by revaluation reserves in pesos which will be partially delivered in April 2016 to the SHCP, strengthen the country in times and scenarios of uncertainty and international volatility.

ECONOMIC OUTLOOK


The company continues with a strategy of metal coverage, already covering most of the estima-ted production for the remaining of 2016. In addition, a coverage plan for 2017 was started.

At the end of 2015, the debt consisted of syndicated credit for US$1,100 MM and $5,000 MM Ps of long-term marketable debt securities. The total debt of the company at the end of 2015 was US$1,391 MM, 16% less when compared with the close of 2014.

In December 2015, the renegotiation of the syndicated loan was achieved. Which allowed Minera Frisco to access better financing terms which includes a 5-year term with increasing amortiza-tion, as well as a better interest rate with respect to the previous syndicated loan.

During the year, exploration work was carried out in areas adjacent to the operating units in order to replace and increase resources and reserves of the company. Furthermore, through Frisco, Research and Development (FID*), the characterization activities, evaluation and research and metallurgic activities continued in order to obtain the maximum utilization of the mineral reserves.

The human element is the most important resource for facing the challenges posed by our current environment. At the end of 2015, the total company employees was 7,918. We developed acti-vities to spread, institute and ensure that all preventive protection measures are complied with in order to guarantee the health, safety and integrity of all our collaborators and neighboring communities.

At Minera Frisco we reaffirm our commitment to work with each stakeholder from our Mining Units, creating job opportunities, supporting infrastructure development and the creation of social programs to benefit the communities located in nearby areas from our mines.

Regarding environmental performance in 2015, Minera Frisco reiterated its goal of reducing, preventing and miti-gating the potential impacts its operation could generate.

Looking into 2016, Minera Frisco will continue to seek for improvements that will translate into efficiency and produc-tivity, reduce costs and improve processes. With the imple-mentation of these steps, the benefits will be reflected in cash flow.

Finally, we want to express our gratitude for the efforts and the trust of our clients, suppliers, neigh-boring communities, collaborators and stockholders in 2015. Once more, we assert our firm commit-ment to continuously improve the performance of Minera Frisco, S.A.B. de C.V. in the coming years.

Sincerely

TOTAL ASSETS REACHED $47,358.8 MM PS AND

STOCKHOLDERS EQUITY OF CONTROLLING

SHARING CLOSED AT $15,953.4 MM PS

Ing. Carlos Slim Helú Chairman of the Board of Directors

Ing. Alejandro Aboumrad González Chief Executive Officer

* By its spanish initials Frisco Investigación y Desarrollo.


1

2

435

7 8

10

9

6

EL PORVENIRLocation: Aguascalientes

Type of mine: Open pit

Metals: Au/Ag

Capacity: 10,000 tpd

EL CORONELLocation: Zacatecas


Metals: Au/Ag


OCAMPOLocation: Chihuahua

Type of mine:

Open pit and underground

Metals: Au/Ag

Capacity: 7,000 tpd

6

3

9 ASIENTOSLocation: Aguascalientes

Type of mine: Underground

Metals: Au/Ag/Cu/Pb/Zn

Capacity: 4,000 tpd

TAYAHUA-COPPER PRIMARY*Location: Zacatecas


Metals: Au/Ag/Cu/Zn


CONCHEÑOLocation: Chihuahua

Type of mine:


Metals: Au/Ag


7

4

10 TAYAHUALocation: Zacatecas



Capacity: 5,500 tpd

SAN FRANCISCO DEL OROLocation: Chihuahua



Capacity: 4,000 tpd

MARÍA Location: Sonora


Metals: Cu


SAN FELIPELocation: Baja California

Type of mine:


Metals: Au/Ag


8

5

2

05 UNITS IN OPERATION

*Expansion project


EL CORONEL

Located in the state of Zacatecas. It is an open pit mine; its ores are mined through heap leaching in bed and recovered by carbon adsorption and electrolysis and later melted into doré bars with saleable gold and silver content. The expansion pro-ject was concluded in 2014; it consisted of the installation of a new crushing circuit with a capacity of 30,000 additional tons per day, with enlargement of pits and bed formation. Current capacity is 55,000 tons per day. This unit produces doré bars with saleable gold and silver content.

Au Ag

Location

Zacatecas Nominal Capacity

55,000 TPDType of mine

Open pit

Process

Heap leaching

Metals


SAN FELIPE

Located in the state of Baja California, it is an open pit and underground mine, its metal is benefited through heap lea-ching in beds. In 2014, its expansion project (construction of a new crushing circuit, bed creation and Merril Crowe plant) operated continuously for the first time at its design capacity. At the end of 2014, improvements were made on the crushing circuit that allowed an increase in its capacity to 37,000 tons per day. At the end of 2015, it started processing metal from the underground mine. This unit produces doré bars with saleable content of gold and silver.

Location

Baja California Nominal Capacity



Process

Heap leaching

Metals

Au Ag


ASIENTOS

Located in the state of Aguascalientes, it is an underground mine having a process of in-plant milling and floatation. It ope-rates at a nominal installed milling capacity of 4,000 tons per day; the mineral is mined through the process of floatation . The unit produces lead, zinc and copper concentrates with gold, sil-ver, lead, zinc and copper contents.

Location

Aguascalientes Nominal Capacity


Underground

Process

Milling and floatation

Metals

Au

Cu

Ag Pb Zn


TAYAHUA

Located in the state of Zacatecas, it is an underground mine that mainly exploits bodies of primary copper and zinc. Exploited mineral in this mine is extracted and crushed at a plant with a nominal capacity of 5,500 tons per day, to later be distributed in two floatation circuits, lead-zinc and copper-zinc. The final product consists of lead, zinc and copper con-centrates with contents of gold, silver, lead, zinc and copper. A project is currently being developed in this unit to mine and exploit an important mineralized body of primary copper. The project consists of the development of a 6-kilometer access ramp and the installation of a crushing circuit, milling and extension of the current floatation plant with an additional nominal capacity of 10,000 tons per day.

Location

Zacatecas Nominal Capacity


Underground

Process


Metals

Au

Cu

Ag Pb Zn


SAN FRANCISCO DEL ORO

Located in the state of Chihuahua, it is an underground mine that produces poly-metallic concentrates. The exploited mine-ral in this mine is extracted and milled in a plant with a nominal capacity of 4,000 tons per day; the mineral is mined through the process of floatation. It produces concentrates of lead, zinc and copper with contents of gold, silver, lead, zinc and copper.

Location Chihuahua Nominal Capacity


Underground

Process


Metals

Au

Cu

Ag Pb Zn


MARÍA

Located in the state of Sonora; it is an open pit mine with a nomi-nal crushing capacity of 27,000 tons per day. The crushed mine-ral is deposited in beds that carry out a process of heap leaching. It benefits from a ESDE plant facility for the final production of copper cathodes. The last deposit of mineral in bed was made in the third quarter of 2014, so production has been gradually decreasing since the fourth quarter in accordance to its recovery kinetics, expecting to conclude in the first semester of 2016.

Location

Sonora Nominal Capacity


Open pit

Process

Heap leaching

Metals

Cu


EL PORVENIR

Located in Aguascalientes, it is an open pit mine with a crus-hing capacity of 10,000 tons per day; its minerals are obtai-ned through the process of heap leaching, producing doré bars with contents of silver and gold.

Location

Aguascalientes Nominal Capacity


Open pit

Process

Heap leaching

Metals

Au Ag


OCAMPO

Located in the state of Chihuahua, it is an open pit and under-ground mine. The underground mine has a capacity of 3,000 tons per day, and the open pit mine a capacity of 4,000 tons per day. The mineral is obtained through two processes: dynamic leaching and heap leaching. Starting in 2015, its operation is only subterranean in order to achieve better profitability and efficiency. The final product is doré bars with saleable con-tents of gold and silver.

Location

Chihuahua

Nominal Capacity

Open pit:

4,000 TPDUnderground:



Process

Dynamic andHeap leaching

Metals

Au Ag


CONCHEÑO

Located in the state of Chihuahua, it is an open pit and under-ground mine. It started operations in 2013 and began its period of commission concluding it in the second semester of 2014. The exploited mineral is crushed at a plant with capacity of 15,000 tons per day and is obtained through a dynamic lea-ching process. Concheño produces doré bars with saleable contents of gold and silver.

Location

Chihuahua Nominal Capacity



Process

Dynamic leaching

Metals

Au Ag


PROJECTS UNDER FEASIBILITY STUDY AND IMPLEMENTATION

06PROJECTS UNDER CONSTRUCTION AND EXPANSIONIn 2015 the Company focused its CAPEX program mainly on the maintenance of all of its mining units. Currently, Minera Frisco con-tinues to work on the Primary Copper Project at the Tayahua unit.

TAYAHUA PRIMARY COPPER PROJECTThe purpose of the project is the exploitation of a mineralized body of primary copper; it will have a six-kilometer access ramp and a crushing circuit with a capacity of 10,000 tons per day. After extrac-ting the mineral, it will be crushed and obtained through a new floatation plant for the production of polymetallic concentrates. The ramp of access to the mineral body has already been finished. Civil engineering work of the extraction plant is currently ongoing, as is the installation of the treadmill band going from the primary crushing station to the surface.

Minera Frisco has an ample territorial reserve and mining concessions which it will continue to explore. Work is carried out with own resources by a spe-cialized team that analyzes the viability of the mining lots based on geolo-gical and metallurgical studies and research, and environmental, social and economic evaluation. The exploration and research work for development of new projects has currently slowed down and is focused only on the search for profitable projects requiring low CAPEX. Such is the case of Guanaceví, a project in the state of Durango which is currently under study and analysis, and in the process of securing the required permits.


Some of the activities which are carried out to confirm and increase resour-ces and mineral reserves are geology and geophysics work, drilling, sample collection and analysis, and resource modelling. This work goes hand-in-hand with personnel training and outsourcing, and input acquisition.

One of the daily tasks of our exploration team is finding areas with mineralized bodies. The main objective of the exploration work is to identify mineralized bodies with contents of gold, silver and copper which are susceptible of economic exploitation. The aim is to con-firm, secure and increase mineral reserves. The positive results of this work increase the life of the mine and provide a parameter and certainty to the planning of the mine, which in turn translate into profitability and growth for the company.

EXPLORATION07

During 2015, 94% of the work was carried out with own equipment of the company which amount a total of 53 machines.

130,896 m were drilled during this period in the mining units in operation, which break down as follows:

CERTIFICATION OF RESOURCES AND RESERVESBesides ensuring continuous operation of every mining unit, the work of exploration and metallurgy –done according to the best practice stan-dards of the industry- provides greater certainty to the results. For this reason Minera Frisco continues with the process of preparing to secure certification of its resources and reserves under the guidance of a specia-lized company.

DIAMOND DRILLING

REVERSE CIRCULATION

DRILLING

97, 9

91 m

32,9

05 m

42 drilling equipments

11 reverse circula tion drilling

equipments

6% of the work carried out by

contractors

IN ADDITION, 7,001 M

WERE DRILLED IN EXTERNAL

PROJECTS.

EQUIPMENTS53


The function of the Frisco Research and Development depart-ment (FID) of Minera Frisco is to carry out activities for the optimum use of reserves through the mineralogical characteri-zation of the minerals and the evaluation of their metallurgical response. FID currently has a project laboratory in Zacatecas and technical personnel in most of its operating units who carry out lab and pilot tests in the search for improvement projects.

This permanent study of minerals through chemical assay, mineral characterization and metallurgical research is funda-mental for process definition and improvement. Moreover, the monitoring of recovery and product quality guarantees the pro-fitability of the operations.

RESEARCH AND DEVELOPMENT 08


Furthermore, Minera Frisco supports healthy relations with its workers and the union, in full respect of freedom of assembly and in recognition of the right to collec-tive bargaining. Collective contract and salary revision, as well of some third-party contractor agreements, was done in 2015 with satisfactory results for all parties and with the involvement of the workers of the different union committees. In this way, the objective of fostering a positive, mutually-beneficial communication is fulfilled.

2015 was year of great challenges; one of them was keeping our operating structures healthy and efficient. By the end of December 2015, the total number of employees was 7,918, broken down as follows:

In addition, 5,000 indirect jobs were created. The company grants its collaborators fair and competitive salaries as well as benefits additional to those required by the Federal Labor Law, such as life insurance for natural and/or accidental death and/or total and permanent disability; major medical expenses, savings fund, and food vouchers. Support is also provided to obtain education scholarships at mid and high school, as well as professional level through strategic alliances with the Beca Digital Carso and Beca Telmex programs, which promoted educational development of our employees and their families.

The health and safety of our collaborators and neighboring communities is an essen-tial element of Minera Frisco. Therefore, through its safety committees Frisco wor-ked on spreading, instituting and ensuring that all established preventive safety measures were complied with. Moreover, training and inspection programs were implemented to ensure compliance with safety guidelines.

Minera Frisco fosters a climate of equality and integrity through the practice of our principles and values, fully respecting the manners and customs -or natural rights- of all of the communities around us, in order to achieve a harmonious working relations-hip among its collaborators.

Minera Frisco acknowledges that its most important resource in a volatile environment is the human element; therefore we have kept our commitment, not only with our collaborators, but also with the communities close to our operating units, to develop strategies and synergies that will maintain and bolster our work structures in order to allow continuity and stability of the operations of all of our mining units.

Thus, in its recruitment and hiring process, the Company seeks to cover its vacancies with internal personnel, providing them with opportunities of pro-fessional end personal development. Secondly, it seeks to cover vacancies with personnel from the communities neighboring the mining unit. In this way we foster relations between the company and the collaborators.

COLLABORATORS09

57%21%

22%

UNIONIZEDNON-UNIONIZED

CONTRACTORSTOTAL

EMPLOYEES 2015

7,918


Minera Frisco not only cares for the development of the mining industry in Mexico, but also for the personal development of the inhabitants of our areas of interest; thus, we assign resources for the development of initiatives aimed at the sustainable development of our stakeholders. Moreover, we assume ourselves as the part of society in which the mining units are located and thus believe that collaboration and fostering of a healthy relationship with the authorities, the community and the envi-ronment are intrinsic elements of our daily work.

Health is an essential element for social development; therefore we have implemented actions such as an extensive program that includes plans to fight diseases such as cancer and social problems such as gender violence and addictions. In addition, Minera Frisco also organizes a series of sports activities for which it provides the necessary equipment and gear.

IN MINERA FRISCO, DURING 2015 WE FAVORED 232,816 INHABITANTS OF THE 63 COMMUNITIES NEIGHBORING OUR MINING UNITS IN ASPECTS OF HEALTH, EDUCATION, CULTURE, SPORTS AND INFRASTRUCTURE.

SOCIAL Furthermore, we consider education to be a pillar of social development, so we provide materials for renovation of the schools in the communities neighboring our mining zones, helping to provide decent educational facilities to the communities. We also delivered didactic health materials in benefit of 31,648 people.

The preservation of culture and traditions is another element that provides identity to the members of society; thus we favor and support the celebration of community patron saint celebrations, among other specific activities of the regions in which we operate.

Through actions such as these, in 2015 we favored 232,816 inhabitants of the 63 communities neigh-boring our mining units in aspects of health, education, culture, sports and infrastructure.

In 2015, we earned -for a fifth time in all nine mining units- the distinction of Socially Responsible Com-pany (ESR 2015), awarded by the Mexican Philanthropical Center, whose diagnostic focuses on asses-sing actions aimed at promoting ethics and corporate governance, company life quality, community outreach and its development, and environmental care and development. Therefore, we are proud to be part of the group of companies that are committed to their sustainability and that of those who are part of them.

10

2015 ANNUAL REPORT 4140 MINERA FRISCO

Concerning waste, in 2015 the Company intensified training in matters of non-hazardous waste handling, which in addition to an increase in monitoring of waste-generating areas, resulted in better waste handling, thus managing an increase in the separation of non-hazardous waste, a decrease in their generation, and an increase in the amount of recycled

One of the priorities of Minera Frisco, is the protection of biodiversity. Our plant and tree nurseries are in current operation, producing spe-cies that are native to the regions in which each one of our operating units operates; their objective is the reforestation of the areas within and without company plots.

We also promote the conservation of biodiversity through projects such as the UMAs (Unidad de Manejo Ambiental) and species monitoring:

PROGRAM FOR THE PROTECTION AND CONSERVATION OF THE ÁGUILA REAL (ROYAL EAGLE):

For sixth consecutive year we carried out actions to favor the preservation of the Águila Real on the Altamira hill contiguous to the Asientos and El Por-venir units. We worked together with the National Polytechnic Institute (IPN*) in the drafting of the “Study on the distribution of the Águila Real and the presence of nesting sites in the physiographical sub-province plain of Ojuelos-Aguascalientes” from which the following conclusions derive:

• Unlike the belief that the population of the Águila Real was in decline, in the Ojuelos-Aguascalientes region the conservation outlook is encouraging, as there are more mating couples in the region than pre-viously reported.

• Six nesting territories were confirmed in addition to three more poten-tial sites, two of them coincided with the previously reported nesting territory and four more nesting territories were discovered, however, their status is uncertain.

During monitoring, two young eaglets were observed for the first time in the active nest (in previous years only one eaglet per year had been repor-ted), which represents a good conservation status of the area and good physical status of the adults of the species.

A study of vulnerability was also made in the Porvenir- Asientos corridor, with the objective of knowing, investigating and monitoring the transfor-mation of the ecosystem from the effects of human activity, in order to propose sustainable remedial, management and conservation measures based on scientific research, to mitigate, conciliate and make productive activities, sustainable.

ENVIRONMENTALPERFORMANCE

Minera Frisco has identified the potential impacts generated by its operation; from the inception of a project, to the closing of a mine, so working plans are drawn up accordingly in order to reduce and prevent or mitigate the impacts, always in accordance to mexican current law and legislation.

In response to recent legislation regarding climate change, the com-pany has made an inventory of its energy consumption and its associa-ted greenhouse effect emissions, and will continue to look for areas of opportunity in order to make more efficient use of its energy resources.

11

* By its initials in spanish Instituto Politécnico Nacional.


SAN FRANCISCO DEL ORO UMAWork was carried out in the eleventh year of operation of the Unidad de Manejo Ambiental (UMA), to expand spaces and to construct a new shelter to protect the largest number of specimens. The site remains as a space dedicated to the preservation of wild species such as the wildcat, jaguar, cougar, deer, ostrich, ram and the coyote.

PALO FIERRO UMAThe UMA for the Olneya tesota (Palo Fierro) species at the San Felipe unit in the state of Baja California is currently being authorized. The objective of this EMA is to contribute to the conser-vation and recovery of the communities and habitat of Palo Fierro through sustainable use and management to ensure the long-term permanence of the species. This species has been placed under a special protection category, so the recovery of its natural habitat is of utmost importance.

As part of the environmental management activities, performance is evaluated through the Natio-nal Program for Environmental Audit of the PROFEPA: Industria Limpia (Clean Industry). Certi-fication of the Tayahua, was renewed in 2015 and the El Coronel and San Francisco del Oro units are currently under re-certification. Moreover, the Asientos and Concheño units have joined the program to obtain certification for the first time.

In addition, the El Coronel unit in Zacatecas holds a currently valid ISO 14001 certification and underwent the second surveillance audit in 2015.

Indicator Unit 2015

Water consumption m3 10,105,546

Re-used water m3 8,751,011.6

Direct energy consumption GJ 2,504,393.1

Indirect energy consumption GJ 2,308,709.9

Hazardous waste ton 2,586.3

Non-hazardous waste ton 4,720.5

Recycled waste ton 3,858

Produced individuals # 208,390

Reforested areas ha 80.6

Total GHG emissions ton CO2eq 478,745.1


Name Position Type of Member Years as Member

Non-independent

Ing. Carlos Slim Helú President Proprietary 5

C.P. José Humberto Gutiérrez Olvera Zubizarreta

Chairman Proprietary Independent 5

Ing. Alejandro Aboumrad González Chairman Proprietary Related 4

Lic. José Kuri Harfush Chairman Proprietary 5

Ing. Gerardo Kuri Kaufmann Chairman Proprietary 5

Lic. Patrick Slim Domit Chairman Proprietary 5

Ing. Ignacio Antonio Gómez García Chairman Non-independent 2

Lic. Carlos Manuel Jarque Uribe Chairman Non-independent 2

Lic. Daniel Hajj Slim Chairman Proprietary 1

Independent

Dr. Sergio Covarrubias Vázquez Chairman Independent 5

Lic. Alejandro Gutiérrez Gutiérrez Chairman Independent 5

Ing. Guillermo Gutiérrez Saldivar** Chairman Independent 5

Ing. Juan Rodríguez Torres** Chairman Proprietary Independent 5

Ing. José Shedid Merhy** Chairman Proprietary Independent 5

** Members of the Audit and Societary Practices Committee.

CORPORATEGOVERNANCE12

Officers

Ing. Alejandro Aboumrad González CEO

THE COMPANY’S BOARD OF DIRECTORS

MINERA FRISCO46

INVESTOR INFORMATION

MEXICAN STOCK EXCHANGEThe shares series A of Minera Frisco, S.A.B. de C.V.are listed under the ticker symbol “MFRISCO”.

OTC MARKETADR’s Level 1Symbol: MSNFY 2:1Cusip: 60283E101

DEPOSITARY BANKBNY MellonShareowner ServicesP.O. Box 358516Pittsburgh, PA 152528516Phone 1888BNYADRS (18882692377)[email protected]/shareowner

INVESTOR RELATIONSLizbeth Munguía [email protected]

www.minerafrisco.com.mx

Des

ign

and

prod

uctio

n: m

ileni

o3ge

nera

Minera Frisco’s 2015 Annual Report may include certain forward-looking statements regarding the Company, which depend of management’s considerations. Such statements are based on current and known information; however, they may vary due to facts, circumstances and events out of Minera Frisco’s control.

ANNUALREPORT2015

annual report 2015 · ing. carlos slim helú chairman of the board of directors ing. alejandro...

Documents