Fresnillo delivers strong 2025 performance and highest dividend to date

Fresnillo plc (LON:FRES) has announced its financial results for the full year ended 31 December 2025.

Octavio Alvídrez, CEO said:

“I am pleased to report a record financial performance in 2025, as Fresnillo continued to benefit from a high precious metals price environment, combined with our ongoing focus on operational consistency. These results demonstrate our ability to leverage our high-quality asset base while managing costs carefully to expand margins, resulting in significant cash generation and returns to our shareholders. I would like to thank our teams for their focus and execution throughout the period.

“We are today reporting a 27.6% increase in Adjusted Revenues to US$4.6 billion and an 80.7% rise in EBITDA to US$2.8 billion. In line with this robust performance, we are proposing a final ordinary dividend above the traditional policy of paying 50% of the adjusted profit, bringing total shareholder distributions for 2025 to US$950.0 million, or 128.92 US cents per share, our highest to date as a listed company.

“Operationally, silver production was in line with guidance and gold production exceeded expectations. We continued to implement structural improvements across our mines to support future production and effectively manage the cost base, while also laying the foundations for future growth by advancing our exploration projects and enhancing our pipeline through the announcement of the acquisition of Probe Gold.

“Looking ahead, we remain committed to responsible growth, with the safety of our people as our top priority. We will continue to monitor and manage costs, while advancing our exploration pipeline to support long-term value creation. Our financial position remains solid, with a net cash position of US$1,916.6 million, enabling us to invest in future growth while maintaining attractive returns to shareholders.”

Financial Highlights – 12 months to 31 December 2025

1 Fresnillo attributable production, plus ounces registered in production through the Silverstream Contract.

2 Adjusted Revenue is revenue as disclosed in the income statement adjusted to exclude treatment and refining charges.

3 Earnings before interest, taxes, depreciation and amortisation (EBITDA) is calculated as gross profit plus depreciation less administrative, selling and exploration expenses. The reconciliation of EBITDA to amounts determined in accordance with IFRS can be found in the Financial Review.

4. The weighted average number of ordinary shares was 736,893,589 for 2025 and 2024 See note 18 in the consolidated financial statements.

2025 Highlights

Significantly increased profit margins and strong financial position underpinned by higher precious metal prices, operational discipline, and a continued focus on costs.

·    Adjusted revenue of US$4,645.3 million, up 27.6% vs 2024 primarily due to the higher precious metals prices, mitigated by the lower volumes of all metals sold.

·    Revenue of US$4,561.2 million, up 30.5% vs 2024 driven by the increase in adjusted revenue and lower treatment and refining charges.

·    Adjusted production costs¹ of US$1,406.7 million, down 11.1% vs 2024 primarily driven by the lower volumes processed at Herradura, Fresnillo, Ciénega and Saucito; the favourable effect of the devaluation of the average Mexican peso vs. US dollar exchange rate; the cessation of mining activities at San Julián DOB; and net efficiencies achieved, principally at Herradura.  

·    Gross profit of US$2,664.1 million, up 113.8%; EBITDA² of US$2,796.2 million, up 80.7%.

·    Exploration expenses of US$173.5 million, up 6.4%.

·      Profit from continuing operations of US$2,292.5 million, up 142.4%. as a result of higher gross profit.

·      Non-cash Silverstream loss, net of taxes, of US$132.4 million following the decision to end the Silverstream Contract in light of operational and financial difficulties impacting the long-term viability of the Sabinas mine.

·      Income tax expense of US$315.0 million down 19.3% vs 2024, primarily as a result of the 11.4% revaluation of the spot Mexican peso vs. US dollar exchange rate on the tax value of assets and liabilities, the special mining rights deductible for corporate income tax.

·      Mining rights of US$193.2 million, up 52.1% vs. 2024 due to the increase in the profit base used in the calculation along with the increase in the mining rights from 7.5% to 8.5% in 2025.

·    Profit for the year attributable to equity shareholders of the Group of US$1,384.0 million vs US$140.9 million in 2024.

·    US$2,756.5 million in cash and other liquid funds as of 31 December 2025. Net cash position of US$1,916.6 million as of 31 December 2025, compared with US$458.3 million as of 31 December 2024.

1 Adjusted production costs are calculated as cost of sales less depreciation, profit sharing, change in inventories and unproductive costs. The Company considers this a useful additional measure to help understand underlying factors driving production costs in terms of the different stages involved in the mining and plant processes, including efficiencies and inefficiencies as the case may be and other factors outside the Company’s control such as cost inflation or changes in accounting criteria.

2 Earnings before interest, taxes, depreciation and amortisation (EBITDA) is calculated as profit for the year from continuing operations before income tax, less finance income, plus finance costs, less foreign exchange gain/(loss), less revaluation effects of the Silverstream contract and other operating income plus other operating expenses and depreciation.

Total 2025 dividend payment of US$950 million, or 128.92 US cents per share

·    Total ordinary dividend for the year amounting to US$950.0 million, or 128.92 US cents per share, comprised of:

–     The 2025 interim ordinary dividend of US$153.3 million, or 20.8 US cents per share, which was paid in September 2025, and

–     The 2025 final ordinary dividend of 108.12 US cents per share, totalling US$796.7million.

·    This is above the Group’s traditional dividend policy to pay out 50% of the profit attributable to equity shareholders of the company after making certain customary adjustments to exclude extraordinary non-cash effects in the income statement, and was permitted by strong cash generation throughout the year, which resulted in a high cash balance at year end. The company continues to maintain a healthy cash balance to invest in growth focused projects, along with an additional buffer for any M&A opportunities that may present themselves in the future. The dividend policy remains unchanged.  

Consistent operating performance with silver in line and gold ahead of guidance

·    Full year attributable silver production of 48.7 moz in line with guidance (including Silverstream) decreased 13.5% vs. 2024, mainly due to the cessation of mining activities at San Julián DOB, the lower ore grade, decrease in volume of ore processed, and lower recovery rate at Ciénega, and the lower contribution from the Silverstream.

·    Full year attributable gold production of 600.3 koz exceeded guidance, down 5.0% vs. 2024 primarily due to the lower ore grades and decreased volumes of ore processed at Saucito, Fresnillo and Herradura, and the lower contribution from Noche Buena.

·    Full year attributable by-product lead and zinc production decreased vs. 2024, mainly due to: i) the lower ore grade and decreased volumes of ore processed at Fresnillo; ii) the cessation of mining activities at San Julián DOB; and iii) the discontinuation of zinc production at Ciénega from August 2025 onwards.  

Continued focus on operational optimisation and efficiency-enhancing projects

·    Significant efficiencies and cost reductions achieved at Herradura, and to a lesser extent at Ciénega, partly offset by an increase in cost at the Fresnillo district. The net operating efficiencies achieved in 2025 totalled US$13.8 million.    

·    Operational optimisation initiatives continued to progress at Fresnillo, including dilution control, improved mine planning and contractor rationalisation, with early benefits achieved. However, higher maintenance costs due to lower equipment availability, and increased consumption of explosives and milling balls more than offset the positive impact.

·    Construction of supporting infrastructure and equipment placement at the Jarillas shaft in Saucito continued during the year. The shaft connection was deferred to 2026 to minimise disruption, it remains on track to be completed by 2027.

·    Implementation of the San Julián optimisation plan, including cost-containment measures, continued.

·    Efficient cost control, optimised drilling patterns, and improved mine cycles delivered a good performance at Herradura.

·    Construction of the Carbon in Column facility continued with full operational capacity expected to be achieved in 2Q26, while the analysis for a new sulphide crushing circuit was completed, and detailed engineering for this facility and the Adsorption, Desorption and Recovery (ADR) plant is now underway.

Laying the foundations for future growth through our commitment to exploration and a disciplined approach to evaluate M&A opportunities

·    Silver resources decreased 8.5% vs 2024 to 2.06bn oz, primarily driven by the implementation of the Reasonable Prospects for Eventual Economic Extraction (RPEEE) principle, in line with industry best practice, to classify mineral resources based on their expected future economic extraction.

·    Gold resources increased 14.3% vs 2024 to 44.0 moz, primarily driven by the favourable impact of the higher price of gold at Herradura and the Lucerito exploration project.

·    Proven reserves were reported at all mines.

·    Silver reserves increased 9.4% to 362.6 million ounces, mainly due to higher metals prices and a lower cut-off grade together with the addition of ounces through the infill campaign, primarily at the Fresnillo district.

·    Gold reserves increased 7.4% to 7.8 million ounces vs 2024, as a result of the higher gold price, principally at Herradura.

·    Positive drilling results and higher gold prices increased mineral resources to 2.3 million ounces of gold at Rodeo. Ongoing drilling and metallurgical testwork continue to deliver a Preliminary Economic Assessment in 2H26.

·    Several opportunities identified to optimise capex and operating costs at Orisyvo. 

·    An intensive core drilling programme was completed at Guanajuato, while land acquisition, and mine development and mineral processing evaluations continued. Total resources at our Guanajuato project amount to approximately three million ounces of gold, and 388 million ounces of silver.

·    Acquisition of Probe Gold was successfully completed in 1Q26, providing immediate access to the prolific Val d’Or district in Quebec, with established infrastructure and a skilled workforce, and adding 10 million gold ounces to our resource base.

Safety remains our top priority as we further enhance the sustainability of our operations

·    Improved TRIFR from 7.59 to 6.26 and decreased Fatality Frequency Rate to 0.046. However, the two fatalities recorded during the year underscore that further improvements are required.

·    Consumed 77.8% of electricity from renewable sources (2024: 80.6%).

·    Generated a positive economic impact^[1] of US$2,173.8 million in 2025.

2026 outlook and longer term prospects

·    Attributable silver production expected to be in the range of 42.0 to 46.5 moz.

·    Attributable gold production expected to be in the range of 500 to 550 koz.

·    Expressed in silver equivalent ounces², production is expected to be 82-91 million ounces.

·    Capex for 2026 is anticipated to be approximately US$765 million and will continue to be primarily focused on mining works, sustaining capex, optimisation projects at Herradura, the deepening of the Jarillas shaft at Saucito, a haulage conveyor at Juanicipio, and tailings dams.

·    Exploration expenses are expected to be c.US$260 million, supporting intensified drilling at our operating mines, continued de-risking our advance exploration projects, and starting drilling at Probe Gold.

·    Continue to monitor costs closely and capture further efficiencies where possible.

·    Continue working towards reducing our TRIFR to the ICMM range and achieve zero fatal accidents.

Board Committee changes

Fresnillo plc announces that its Board of Directors, on the recommendation of the Nominations Committee has approved a change to the composition of the Health, Safety, Environment and Community Relations (HSECR) Committee effective as at 2 March 2026.

Ms Luz Adriana Ramírez has been appointed as an additional member of the HSECR Committee. She currently is an Independent Non-Executive Director.

Ms Ramírez has experience in health, safety, environment and community relations issues at an executive level as well as being a member of related committees in other relevant companies and the Board believes that she brings valuable insight to the work of the HSECR Committee.

¹ Operations at Soledad-Dipolos are currently suspended