Fresnillo plc (LON:FRES) will hold its Annual General Meeting today. Chairman Mr Alejandro Baillères will make the following statement:
“Good morning and thank you for joining us today. I continue to consider it a privilege to be presenting to you as your Chairman.
2025 was an exceptional year for Fresnillo.
We delivered a significant increase in profitability as our efforts to boost performance and reduce costs were complemented by a positive price environment for precious metals. While we initially expected 2025 to be a challenging year to surpass the achievements of 2024, I am delighted to report that several key factors converged to generate one of the most rewarding periods in Fresnillo’s history.
Silver production was in line with our guidance, supported by performances above expectations at Juanicipio and San Julián Veins, while gold production was ahead of guidance, driven by the expertise of the team at Herradura who continue to execute our plans with great consistency.
The team has worked extremely hard to improve the operating performance of our mine sites, and I would like to recognise their outstanding efforts. Our focus on operational efficiencies and cost discipline, supported by a devaluation of the Mexican peso, has allowed us to capitalise on the significant tailwinds provided by higher gold and silver prices.
We achieved US$4.6 billion in adjusted revenue during the year, up nearly 28%. Gross profit more than doubled, increasing 113.8% to over US$2.6 billion. These results demonstrate our ability to grow our cash position while managing inflationary headwinds.
For 2025, we declared an interim dividend of 20.8 US cents per share and a final dividend of 108.12 US cents per share, bringing the total for the year to 128.92 US cents per share.
Furthermore, our strong balance sheet and healthy cash generation provided the flexibility to pursue strategic growth, leading to our proposal to acquire Probe Gold Inc. in Canada, a deal we successfully concluded in January 2026. This acquisition represents a disciplined entry into a Tier 1 mining-friendly jurisdiction and adds a significant resource base to our portfolio.
During the year, we saw a positive shift in the political climate in Mexico following the appointment of the government led by President Claudia Sheinbaum. We have appreciated the receptive dialogue with the new administration, which provides us with cautious confidence regarding the future business environment and the certainty of mining concessions.
Alongside our performance initiatives, we are continuing to advance our development pipeline. We have made good progress at Guanajuato, Orisyvo, Rodeo and Tajitos, and I am pleased to welcome Lucerito into our advanced exploration pipeline. We are also maintaining investment in our exploration projects in Chile and Peru.
Our purpose is to contribute to the wellbeing of people through the sustainable mining of silver and gold. However, while our underlying safety metrics showed improvement, I must report with great sadness that we experienced two fatal incidents during the year. This is a painful reminder that our work is far from finished, and we must never be complacent in our goal of zero harm.
We have continued to make advances in sustainability matters that are critical to our business. We remain committed to our decarbonisation targets, successfully sourcing over 75% of our energy from renewable sources, and we continue to prioritise the safeguarding of water resources in the communities where we operate.
I would also like to provide a short update on your Board. While there were no changes during the 2025 financial year, we are proposing the re-election of Alberto Tiburcio for one further year to ensure continuity as we navigate several ongoing developments within the Audit Committee, and Dame Judith Macgregor, as we believe it would be highly beneficial to the Company for her to continue in her role as Senior Independent Director for an additional year. I look forward to their continued guidance.
I would like to conclude by again congratulating our team on an exceptional performance in 2025. Looking ahead, geopolitical instability remains a global concern, but I am encouraged by the more business-friendly environment in Mexico and our expansion into Canada.
The longer-term outlook is positive. We anticipate that at least one of our advanced prospects will join our development portfolio in the coming two to three years. With demand for silver and gold forecasted to exceed supply, driven by the green energy transition and the safe-haven status of gold, Fresnillo is well-positioned to capitalise on the opportunities ahead.
Finally, I would like to thank my Board colleagues, the management team, and our employees for their dedication, and our shareholders for your ongoing support.”
