Fresnillo PLC

Latest Results (18.11.2025):

Fresnillo PLC reported its interim results for the six months to 30 June 2025, showing strong operating and financial performance. The company delivered impressive revenue growth, significant cost reductions, and a substantial improvement in profitability metrics. This performance was underpinned by higher precious metal prices and strong operational execution, particularly in optimised gold production at Herradura, along with a robust liquidity position that enabled the declaration of an interim dividend.

Revenue and Production Growth

In 1H 2025, Fresnillo PLC achieved adjusted revenues of US$1,982.9m (up 27.1%) and total revenues of US$1,936.2m (up 30.1% compared to 1H 2024), driven by higher metal prices and increased volumes of gold sold. Despite a decline in silver production due to operational changes, gold production increased by 15.9%, reflecting the company’s focus on optimised mine operations.

Cost Efficiency and Operational Improvements

The company reported a 20.2% decrease in adjusted production costs to US$673.5m, supported by cost-cutting measures, operational efficiencies, and favourable currency effects. These initiatives, particularly at the Herradura mine, contributed significantly to enhanced profitability.

Profitability and EPS Performance

Fresnillo PLC’s profitability rose markedly with gross profit reaching US$1,022.9m (a growth of 160.7%) and EBITDA climbing by 102.5% to US$1,102.1m. Profit for the period soared by 297.3% to US$467.6m, resulting in basic and diluted EPS of 53.4 cents per share from continuing operations, and adjusted EPS increasing drastically to 71.5 cents per share.

Cash Flow, Liquidity, and Dividend

The interim results underscored strong liquidity with cash and liquid funds of US$1,823.0m at 30 June 2025. Cash generated from operations doubled to US$1,103.6m, and free cash flow surged to US$1,026.1m, supporting the declaration of an interim dividend of 20.8 US cents per share.

Additional Operational and Strategic Insights

The company adjusted its production guidance for 2025, increasing gold production expectations and modifying silver production forecasts following the buyback of the Silverstream Contract. While operational challenges, including the planned closure at San Julián DOB and the cessation of Silverstream contributions, impacted silver volumes, overall strategic performance remained robust.