| Depletion of reserves at existing mines, combined with no new mineral deposits identified, which would impact the Group's growth projections and production capabilities. |
Highly trained and experienced exploration team. Investement in the Group's exploration programme almost doubled in 2010 and will continue to increase for regional properties and areas of influence. Use of technology to enhance probability of finding resources. Pipeline of projects across multiple stages of exploration. |
| Delays in securing land access for performing exploration/mining activities, caused by complex or unsuccessful negotiations with ejidos (cooperative landowners) that could delay or interrupt the exlporation activities. |
Enagagement with government agencies and communities. Retaining specialised negotiators. Purchases of surface land at and near our projects at an early stage. |
| Security related risks such as cartel activity, kidnapping and theft, could cause business interruptions resulting from their impact on personnel and property; while the Group, its employees, contractors and facilities are not necessarily specific targets, security issues have become pervasive in many parts of the country. |
Enhanced security and surveillance measures. Greater prudence regarding ground transportation arrangements for people and goods. |
| Finding and/or retaining personnel with the requisite knowledge, skills and experiences for key positions, particularly when competition for such personnel increases during periods of expansion in the mining industry |
Benchmarking information on compensation and employment supplied annually by external advisors. Competitive remuneration structure sought against domestic and international peer group. Talent identification plan deployed; training linked to succession plan and career development. Ongoing recruitment strategy. |
| Internal union conflicts at the national level may cause temporary stoppages or disrupt operations, even when the source of those conflicts is not related to local labour contracts and/or working conditions at the Company. |
Close communication with union leaders at both local and national level. Efforts to broaden the base of support among unionised workers, including outreach to key influencers. Annual contract negotiations approached in cooperative manner with aim of retaining mutually beneficial contract terms. |