Fresnillo (FRES) H2 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, with gold production exceeding guidance and silver in line with expectations, driven by strong cost control, operational discipline, and high precious metals prices.

• Completed the acquisition of Probe Gold in Canada, adding approximately 10 million ounces of gold resources and expanding the exploration pipeline.

• Returned $950 million to shareholders in dividends, representing 69% of earnings, well above the stated dividend policy.

• Captured $46 million in cost savings and maintained a strong balance sheet with significant free cash flow, enabling flexibility for future investments and shareholder returns.

Financial highlights

• Revenue reached $4,561.2M, up 30.5% year-over-year, with record profitability and significant margin improvements.

• Gross profit increased by 114% to $2,664.1M, operating profit by 142% to $2,292.5M, profit for the period by almost 600%, and EBITDA by 80.7% to $2,796.2M.

• Adjusted EPS surged 465.4% to $2.06 per share; adjusted revenues grew by $1 billion, while adjusted production costs decreased by almost 11%.

• Higher average gold and silver prices offset lower sales volumes, with silver prices up 44% and gold up 51.5%.

• Year-end cash and cash equivalents reached $2.8 billion, up from $1.3 billion, driven by $2.8 billion in operating cash flow.

Outlook and guidance

• 2026 is expected to be a transition year, with lower silver production due to mine sequencing and shaft connections, but production is expected to increase in 2027 and 2028.

• Production guidance for 2026: silver and gold output expected to remain robust, with a +/-5% range.

• CapEx for 2026 set at $765M, with major investments in shaft connections, leaching pads, and conveyor projects.

• Exploration budget for 2026 is $308M, with 35% allocated to greenfield projects.

• Brownfield projects Valles and Noche Buena prioritized for near-term growth; greenfield projects like Rodeo and Tajitos targeted for 2030 and beyond.