Fresnillo Plc (LON:FRES) has reported a solid operational performance in the second quarter, driven by consistent execution across its asset portfolio. Its focus remains firmly on operational discipline, and it remains on track to meet full-year production guidance.
Gold production showed strong sequential momentum, increasing 13.8% against the first quarter. However, as anticipated in its 2026 guidance, first-half gold production decreased 7.3% year-on-year due to lower production at Herradura. First-half silver production reflects an anticipated year-on-year reduction, primarily due to the planned end of the Silverstream agreement alongside expected grade variability at Saucito and Juanicipio.
Looking ahead to the second half of the year, operational plans are tracking in line with expectations. The company will continue to focus on efficiency, cost control, and consistent volume performance across its operations to drive shareholder value. Above all, safety remains its highest priority.
HIGHLIGHTS
Silver
· Quarterly attributable silver production of 10.9 moz decreased 1.7% vs. 1Q26 mainly due to the lower ore grade at Saucito and Ciénega, mitigated by a higher volume of ore processed at Fresnillo.
· Quarterly attributable silver production down 12.6% vs. 2Q25, mainly due to the lower ore grade and decreased volume of ore processed at Saucito, the end of the contribution from the Silverstream, the lower ore grades at San Julián Veins and Juanicipio, and the lower ore grade, decreased volume of ore processed and lower recovery rate at Ciénega.
· First half attributable silver production of 22.0 moz decreased 11.4% vs. 1H25, mainly due to the end of the contribution from the Silverstream, the lower ore grade and decrease in volume of ore processed at Saucito, the lower ore grade at Juanicipio, Fresnillo and San Julián Veins, and the lower ore grade and recovery rate, and decreased volume of ore processed at Ciénega.
Gold
· Quarterly attributable gold production of 154.8 koz, increased 13.8% vs. 1Q26, mainly driven by the increased volume of ore processed at Herradura, and, to a lesser extent, the higher ore grade and increased volume of ore processed at Fresnillo and Saucito.
· Quarterly attributable gold production decreased 1.9% vs. 2Q25 primarily due to lower ore grade at Herradura and San Julián Veins, mitigated by the higher ore grade at Fresnillo.
· First half attributable gold production of 290.9 koz, decreased 7.3% vs. 1H25, mainly due to the lower ore grade, decreased volume of ore processed and lower recovery rate at Herradura.
By-Products
· Quarterly attributable by-product lead and zinc production increased 13.3% and 5.9% vs. 1Q26, respectively, mainly driven by the higher ore grade and increased volume of ore processed at Fresnillo, partly offset by the lower ore grade at Saucito.
· Quarterly and first half attributable by-product lead production increased 15.1% and 8.8% vs. 2Q25 and 1H25, respectively, mainly due to the higher ore grade at Fresnillo and Juanicipio, partly offset by the lower ore grade at Saucito.
· Quarterly attributable by-product zinc production decreased 2.6% vs. 2Q25, primarily due to the lower ore grade at Saucito, partly offset by the higher ore grade at Fresnillo and Juanicipio.
· First half attributable by-product zinc production remained broadly stable when compared to 1H25.
| 2Q26 | 1Q26 | % Change | 2Q25 | % Change | 1H26 | 1H25 | % Change | |
| Silver (koz) | 10,928 | 11,121 | (1.7) | 12,054 | (9.3) | 22,049 | 23,943 | (7.9) |
| Silverstream (koz) | 0 | 0 | N/A | 452 | (100.0) | 0 | 940 | (100.0) |
| Total Silver (koz) | 10,928 | 11,121 | (1.7) | 12,506 | (12.6) | 22,049 | 24,882 | (11.4) |
| Gold (oz) | 154,812 | 136,074 | 13.8 | 157,735 | (1.9) | 290,885 | 313,840 | (7.3) |
| Lead (t) | 17,438 | 15,390 | 13.3 | 15,152 | 15.1 | 32,828 | 30,182 | 8.8 |
| Zinc (t) | 27,672 | 26,126 | 5.9 | 28,403 | (2.6) | 53,798 | 53,651 | 0.3 |
SAFETY PERFORMANCE
The wellbeing and safety of the workforce remain the highest priority. The company is committed to fostering a strong and enduring safety culture across all operations, with the ultimate objective of achieving zero fatalities. Through continuous training, rigorous adherence to safety standards and a proactive approach to risk prevention, it aims to provide a safe and healthy working environment for everyone.
CHANGES TO EXECUTIVE ROLES
Tomás Iturriaga stepped down as Chief Operating Officer, Central Region, after more than five years with the company. The Board thanks Tomás for his contribution and wishes him well for the future.
Gabriel Durán, who is currently serving as Vice President for the Central Region, has worked with the company for over 30 years. He has an in-depth knowledge of the District and will temporarily assume responsibilities for the region, reporting to the CEO.
2026 OUTLOOK
Our 2026 outlook remains in line with previous guidance:
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 500.0 to 550 koz.
Attributable lead production expected to be in the range of 54 to 59 kt.
Attributable zinc production expected to be in the range of 85 to 95 kt.
Expressed in silver equivalent ounces[1], total production is expected to be 82 -91 million ounces.
Expected production for 2027 and 2028 remains unchanged.
INTERIM RESULTS
Fresnillo will announce its 2026 Interim Results on 4th August 2026.
