annual report

ANNUAL
REPORT
2015
INDEX
PAGE
01·COMPANY PROFILE
2
02·HISTORY
4
03·FINANCIAL AND OPERATING
HIGHLIGHTS
6
04·STOCKHOLDER REPORT
8
05·OPERATING UNITS
12
06·PROJECTS UNDER FEASIBILITY
STUDY AND IMPLEMENTATION
32
07·EXPLORATION
34
08·RESEARCH AND DEVELOPMENT
37
09·COLLABORATORS
38
10·SOCIAL
40
11·ENVIRONMENTAL PERFORMANCE
42
12·CORPORATE GOVERNANCE
46
01
COMPANY
PROFILE
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.
MISSION
To develop a harmonious relationship with all our
stakeholders, always promoting a culture of innovation, and technological and environmental efficiency
practices that will allows us to work together towards
the achievement of our common goals.
Minera Frisco maintains a permanent strategy of process improvement, cost minimization
and result maximization. Through its own resources, the company uses profitable, cutting-edge technology for mineral location and processing. Moreover, it carries out exploration 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 initiatives that focus on minimizing waste generation, water and energy consumption, and on
compensating for adverse environmental impact.
VISION
To 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
2
MINERA FRISCO
•
Honesty and intellectual integrity
•
Quality at a low cost
•
Operating efficiency
•
Workplace safety
•
Environmental compliance
•
Community integration
2015 ANNUAL REPORT
3
02 HISTORY
1962
1972
1978
1980
1985
1994
1998
2001
2004
2008
2010
2011
2012
2013
2014
2015
As a result of the new Mining Law, foreign
and Mexican companies associate to
constitute Minera Frisco, S.A.
Empresas Frisco, S.A. de C.V. is constituted; acquired by Grupo Carso.
The second stage of Minera María starts
operations, exploiting copper minerals
for cathode production.
Acquisition of the Ocampo mine and the
Venus and Los Jarros projects concluded.
4
MINERA FRISCO
Minera Lampazos starts operations with
the exploitation of silver minerals (the
unit closed down in 1987).
Compañía San Felipe in Baja California
starts operations (closed down in 2001).
Start of operations of the Asientos unit in
Aguascalientes and the El Coronel unit in
Zacatecas.
Start of operations of El Porvenir and
Concheño, as well as of the expansion
operations of the El Coronel and San
Felipe units.
Minera Cumobabi, S.A. de C.V. starts
operations exploiting copper and molybdenum minerals (closed down in 1989).
Minera Tayahua in Mazapil, Zacatecas, is
acquired (51% ).
Starting in the second semester, Frisco
began a program of investment in six projects of expansion and new mining units.
Start of the consolidation stage of new
projects and their expansions.
Minera Maria starts operations in the
municipality of Cananea in Sonora,
exploiting copper minerals (closed down
in 1981).
Creation of the ¨Reserva San Francisco
del Oro¨ Management Unit for the Conservation of Wild Life (UMA).
In January, Minera Frisco S.A.B. de C.V.
began trading in the Mexican Stock
Exchange.
Work is carried out to make every unit
more efficient through the development and implementation of strategies
that will allow minimization of macroeconomic impacts.
2015 ANNUAL REPORT
5
71,628
03
FINANCIAL AND
OPERATING HIGHLIGHTS
58,913
63,675
21,642
Gold
Production
Oz
423,340
-3%
Silver
Oz
Copper
Net sales
9,331,069
8,854,540
5%
tonnes
20,871
25,823
-19%
MXN$ million
13,611
12,398
10%
860
931
-8%
1,271
1,368
-7%
80
103
-22%
4,648
4,521
3%
294
339
-13%
9%
34%
US$ million
MXN$ million
Operating profit
US$ million
MXN$ million
EBITDA
US$ million
Operating margin
EBITDA margin
ZINC
(Tn)
SALES
SALES
(MXN MILLIONS)
2013
Gold
7,583
6,959
4,810
9%
45%
11%
Silver
2,146
2,055
1,928
4%
7%
36%
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
–
–
–
13,611
12,398
10,305
10%
20%
20,871
25,822
7,523
423
26,296
GOLD
SILVER
(‘000 Oz)
201
3
201
4
201
5
201
3
201
4
201
5
201
3
201
4
201
5
269
8%
2015
SALES PER
PRODUCT
3%
MINERA FRISCO
21%
56%
2014
SALES PER
PRODUCT
47%
2013
SALES PER
PRODUCT
9%
17%
4%
17%
19%
COPPER
(‘000 Oz)
Gold
6
16%
60%
8%
4%
(‘000 Oz)
VARIATION %
2014/2013
2014
11%
411
VARIATION %
2015/2014
2015
Consolidated
8,855
18,914
LEAD
(Tn)
PRODUCTION
9,331
3
411,858
201
5
201
VARIATION %
2015/2014
4
3
201
2014
201
4
2015
SELECTED DATA
201
5
201
18,275
Silver
Lead
Zinc
Copper
2015 ANNUAL REPORT
7
04
STOCKHOLDER
REPORT
ECONOMIC OUTLOOK
MINERA FRISCO
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, benefiting 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 GROWTH OF
THE GDP WAS 2.5%,
DRIVEN MAINLY
BY TRADE AND
MANUFACTURING,
WHICH GREW AT
4.5% AND 2.9%
RESPECTIVELY
8
MINERA FRISCO
The cut in public spending announced for 2016, the financial 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.
THE COMPANY
IMPLEMENTED
EFFICIENCY
STRATEGIES
IN ORDER TO
OPTIMIZE THE
USE OF ITS
RESOURCES
IN THE
ACHIEVEMENT
OF BETTER
RESULTS
After a period of expansion, in 2015 Minera Frisco focused on the consolidation and optimization of its operations. Facing an environment
of metals falling prices, the company implemented efficiency strategies 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 mentioning 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.
2015 ANNUAL REPORT
9
The company continues with a strategy of metal coverage, already covering most of the estimated 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 amortization, 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.
Regarding environmental performance in 2015, Minera
Frisco reiterated its goal of reducing, preventing and mitigating the potential impacts its operation could generate.
Looking into 2016, Minera Frisco will continue to seek for
improvements that will translate into efficiency and productivity, reduce costs and improve processes. With the implementation of these steps, the benefits will be reflected in
cash flow.
TOTAL ASSETS REACHED
$47,358.8 MM PS AND
STOCKHOLDERS EQUITY
OF CONTROLLING
SHARING CLOSED AT
$15,953.4 MM PS
Finally, we want to express our gratitude for the efforts and the trust of our clients, suppliers, neighboring communities, collaborators and stockholders in 2015. Once more, we assert our firm commitment to continuously improve the performance of Minera Frisco, S.A.B. de C.V. in the coming years.
Sincerely
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 activities 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.
Ing. Carlos Slim Helú
Ing. Alejandro Aboumrad González
Chairman of the Board of Directors
Chief Executive Officer
* By its spanish initials Frisco Investigación y Desarrollo.
10
MINERA FRISCO
2015 ANNUAL REPORT
11
2
05
1
UNITS IN
OPERATION
3 4
5
7 8
6
10
9
MARÍA
Location: Sonora
Type of mine: Open pit
Metals: Cu
Capacity: 27,000 tpd
3
4
2
SAN FELIPE
Location: Baja California
Type of mine:
Open pit and underground
Metals: Au/Ag
Capacity: 37,000 tpd
OCAMPO
Location: Chihuahua
Type of mine:
Open pit and underground
Metals: Au/Ag
Capacity: 7,000 tpd
5
SAN FRANCISCO DEL ORO
Location: Chihuahua
Type of mine: Underground
Metals: Au/Ag/Cu/Pb/Zn
Capacity: 4,000 tpd
6
EL CORONEL
Location: Zacatecas
Type of mine: Open pit
Metals: Au/Ag
Capacity: 55,000 tpd
TAYAHUA-COPPER PRIMARY*
Location: Zacatecas
Type of mine: Underground
Metals: Au/Ag/Cu/Zn
Capacity: 10,000 tpd
8
EL PORVENIR
Location: Aguascalientes
Type of mine: Open pit
Metals: Au/Ag
Capacity: 10,000 tpd
10 ASIENTOS
TAYAHUA
Location: Zacatecas
Type of mine: Underground
Metals: Au/Ag/Cu/Pb/Zn
Capacity: 5,500 tpd
9
CONCHEÑO
Location: Chihuahua
Type of mine:
Open pit and underground
Metals: Au/Ag
Capacity: 15,000 tpd
7
Location: Aguascalientes
Type of mine: Underground
Metals: Au/Ag/Cu/Pb/Zn
Capacity: 4,000 tpd
*Expansion project
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MINERA FRISCO
2015 ANNUAL REPORT
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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 project 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.
Location
Zacatecas
Nominal Capacity
55,000 TPD
Type of mine
Open pit
Process
Metals
Au Ag
Heap leaching
14
MINERA FRISCO
2015 ANNUAL REPORT
15
SAN FELIPE
Located in the state of Baja California, it is an open pit and
underground mine, its metal is benefited through heap leaching 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
37,000 TPD
Type of mine
Open pit and
underground
Metals
Au Ag
Process
Heap leaching
16
MINERA FRISCO
2015 ANNUAL REPORT
17
ASIENTOS
Located in the state of Aguascalientes, it is an underground
mine having a process of in-plant milling and floatation. It operates 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, silver, lead, zinc and copper contents.
Location
Aguascalientes
Nominal Capacity
4,000 TPD
Type of mine
Underground
Metals
Au Ag Pb Zn
Process
Milling and floatation
18
MINERA FRISCO
Cu
2015 ANNUAL REPORT
19
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 copperzinc. The final product consists of lead, zinc and copper concentrates 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
5,500 TPD
Type of mine
Underground
Process
Milling and floatation
20
MINERA FRISCO
Metals
Au Ag Pb Zn
Cu
2015 ANNUAL REPORT
21
SAN FRANCISCO
DEL ORO
Located in the state of Chihuahua, it is an underground mine
that produces poly-metallic concentrates. The exploited mineral 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
4,000 TPD
Type of mine
Underground
Process
Milling and floatation
22
MINERA FRISCO
Metals
Au Ag Pb Zn
Cu
2015 ANNUAL REPORT
23
MARÍA
Located in the state of Sonora; it is an open pit mine with a nominal crushing capacity of 27,000 tons per day. The crushed mineral 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
27,000 TPD
Type of mine
Open pit
Process
Metals
Cu
Heap leaching
24
MINERA FRISCO
2015 ANNUAL REPORT
25
EL PORVENIR
Located in Aguascalientes, it is an open pit mine with a crushing capacity of 10,000 tons per day; its minerals are obtained through the process of heap leaching, producing doré
bars with contents of silver and gold.
Location
Aguascalientes
Nominal Capacity
10,000 TPD
Type of mine
Open pit
Process
Metals
Au Ag
Heap leaching
26
MINERA FRISCO
2015 ANNUAL REPORT
27
OCAMPO
Located in the state of Chihuahua, it is an open pit and underground 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 contents of gold and silver.
Location
Chihuahua
Open pit:
Type of mine
Underground:
MINERA FRISCO
4,000 TPD
Open pit and
underground
3,000 TPD
Process
Au Ag
Dynamic and
Heap leaching
28
Nominal Capacity
Metals
2015 ANNUAL REPORT
29
CONCHEÑO
Located in the state of Chihuahua, it is an open pit and underground 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 leaching process. Concheño produces doré bars with saleable
contents of gold and silver.
Location
Chihuahua
Nominal Capacity
15,000 TPD
Type of mine
Open pit and
underground
Metals
Au Ag
Process
Dynamic leaching
30
MINERA FRISCO
2015 ANNUAL REPORT
31
06
PROJECTS UNDER
FEASIBILITY
STUDY AND
IMPLEMENTATION
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 specialized team that analyzes the viability of the mining lots based on geological 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.
32
MINERA FRISCO
PROJECTS UNDER
CONSTRUCTION
AND EXPANSION
In 2015 the Company focused its CAPEX program mainly on the
maintenance of all of its mining units. Currently, Minera Frisco continues to work on the Primary Copper Project at the Tayahua unit.
TAYAHUA
PRIMARY COPPER PROJECT
The 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 extracting 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.
2015 ANNUAL REPORT
33
Some of the activities which are carried out to confirm and increase resources and mineral reserves are geology and geophysics work, drilling, sample
collection and analysis, and resource modelling. This work goes hand-inhand with personnel training and outsourcing, and input acquisition.
During 2015, 94% of the work was
carried out with own equipment of the
company which amount a total of 53
machines.
53
EQUIPMENTS
130,896 m were drilled during this
period in the mining units in operation,
which break down as follows:
42
drilling equipments
11
reverse circula­tion drilling
equipments
6%
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 confirm, 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.
34
MINERA FRISCO
DIAMOND
DRILLING
m
905
32,
97,
07 EXPLORATION
991
m
of the work carried out by
contractors
REVERSE
CIRCULATION
DRILLING
IN ADDITION,
7,001 M
WERE DRILLED
IN EXTERNAL
PROJECTS.
CERTIFICATION OF
RESOURCES AND RESERVES
Besides ensuring continuous operation of every mining unit, the work of
exploration and metallurgy –done according to the best practice standards 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 specialized company.
2015 ANNUAL REPORT
35
08
RESEARCH AND
DEVELOPMENT
The function of the Frisco Research and Development department (FID) of Minera Frisco is to carry out activities for the
optimum use of reserves through the mineralogical characterization 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 fundamental for process definition and improvement. Moreover, the
monitoring of recovery and product quality guarantees the profitability of the operations.
36
MINERA FRISCO
2015 ANNUAL REPORT
37
09
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 professional 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.
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 collective 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:
22%
CONTRACTORS
21%
TOTAL
EMPLOYEES 2015
7,918
57%
UNIONIZED
NON-UNIONIZED
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 essential element of Minera Frisco. Therefore, through its safety committees Frisco worked 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 relationship among its collaborators.
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MINERA FRISCO
2015 ANNUAL REPORT
39
10
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 neighboring 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 Company (ESR 2015), awarded by the Mexican Philanthropical Center, whose diagnostic focuses on assessing 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.
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 environment 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.
40
MINERA FRISCO
IN MINERA FRISCO,
DURING 2015 WE
FAVORED 232,816
INHABITANTS OF THE 63
COMMUNITIES NEIGH­
BORING OUR MINING
UNITS IN ASPECTS OF
HEALTH, EDUCATION,
CULTURE, SPORTS AND
INFRASTRUCTURE.
2015 ANNUAL REPORT
41
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 species 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):
11
ENVIRONMENTAL
PERFORMANCE
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 company has made an inventory of its energy consumption and its associated greenhouse effect emissions, and will continue to look for areas of
opportunity in order to make more efficient use of its energy resources.
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 Porvenir 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 previously reported.
• Six nesting territories were confirmed in addition to three more potential 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 reported), 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 transformation 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.
* By its initials in spanish Instituto Politécnico Nacional.
42
MINERA FRISCO
2015 ANNUAL REPORT
43
SAN FRANCISCO DEL ORO UMA
Work 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 UMA
The 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 conservation 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 National Program for Environmental Audit of the PROFEPA: Industria Limpia (Clean Industry). Certification 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
#
208,390
ha
80.6
ton CO2eq
478,745.1
Produced individuals
Reforested areas
Total GHG emissions
44
MINERA FRISCO
2015 ANNUAL REPORT
45
12
CORPORATE
GOVERNANCE
INVESTOR INFORMATION
MEXICAN STOCK EXCHANGE
The shares series A of Minera Frisco, S.A.B. de C.V.
are listed under the ticker symbol “MFRISCO”.
THE COMPANY’S BOARD OF DIRECTORS
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
OTC MARKET
ADR’s Level 1
Symbol: MSNFY 2:1
Cusip: 60283E101
DEPOSITARY BANK
BNY Mellon
Shareowner Services
P.O. Box 358516
Pittsburgh, PA 15252-8516
Phone 1-888-BNY-ADRS (1-888-269-2377)
[email protected]
www.bnymellon.com/shareowner
INVESTOR RELATIONS
Lizbeth Munguía Samperio
[email protected]
Independent
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.
Officers
Ing. Alejandro Aboumrad González
46
MINERA FRISCO
CEO
www.minerafrisco.com.mx
Design and production: milenio3genera
Dr. Sergio Covarrubias Vázquez
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.
ANNUAL
REPORT
2015