Fresnillo (FRES) investor relations material

Executive summary

• Achieved record silver production of 24.9 Moz and gold production of 313.8 koz in 1H25, maintaining position as the world's largest silver producer and a leading gold producer.

• Strong operating and financial results in 1H25, with profitability driven by higher precious metals prices, operational consistency, and cost discipline, resulting in substantial free cash flow and a robust balance sheet.

• EBITDA margin surged to 56.9% from 36.6% in 1H24, with profit for the period at $467.7M and adjusted EPS up 399% year-over-year.

• Interim dividend of 20.8 US cents per share declared, reflecting increased profits and ample liquidity.

• Silverstream contract buyback resulted in a non-cash loss of $133M after tax, with no further Silverstream contribution from 2H25.

Financial highlights

• Adjusted revenues rose 27.1% year-over-year to $1,982.9M; gross profit up 160.7% to $1,022.9M; EBITDA reached $1,102.1M, up 102.5% from 1H24.

• Profit for the period up 297.3% to $467.6M; basic and diluted EPS from continuing operations increased 399.1% to $0.534.

• Free cash flow exceeded $1bn, with cash and equivalents at period end $1,823M.

• Adjusted production costs fell 20.2% to $673.5M, driven by efficiencies at Herradura and Saucito, and lower ore processed at Fresnillo.

• Interim and special dividends paid totaled $501M in 1H25.

Outlook and guidance

• 2025 gold production guidance raised to 550–590 koz due to strong Herradura performance; silver guidance adjusted to 47.5–54.5 Moz after Silverstream buyback.

• CapEx for 2025 revised down to $450M, reflecting project delays and cost optimization; exploration expenses expected at $190M.

• Silver equivalent ounce guidance for 2025 remains unchanged.

• Multiple greenfield and brownfield projects advancing, with significant resource growth potential.

• Focus remains on advancing brownfield projects, especially Herradura underground, to add ounces with lower investment.