Fresnillo (FRES) H1 2024 earnings summary

Executive summary

• Maintained position as the world's largest silver producer and a leading gold producer in Mexico, with attributable 1H24 silver production of 28.2 Moz and gold production of 270.9 koz.

• EBITDA margin reached 36.6%, with EBITDA up 55% year-over-year to $544.2 million, reflecting strong operational performance and cost focus.

• Interim dividend raised to 6.40 US¢ per share, totaling $47.2 million, supported by a robust balance sheet and net debt/EBITDA of 0.17x.

• On track to meet full-year 2024 production guidance for silver (55–62 Moz) and gold (580–630 koz), with continued investment in brownfield and advanced exploration projects.

• Focus remains on productivity improvements, cost containment, and long-term growth investments.

Financial highlights

• Adjusted revenues rose 9% year-over-year to $1,560.2 million, driven by higher silver and gold prices and increased silver volumes.

• EBITDA for the first half reached $544.2 million, up 55% year-over-year; gross profit increased 39% to $392.4 million.

• Profit for the period grew 31% to $117.7 million; free cash flow reached $187.4 million, up from $18.7 million in 1H23.

• Cash on hand at 30 June 2024 was $691.0 million, with net cash from operating activities up 94% year-over-year.

• CapEx for 1H24 totaled $170.3 million, down 25% year-over-year.

Outlook and guidance

• Full-year 2024 production guidance unchanged: silver 55.0–62.0 Moz, gold 580–630 koz.

• CapEx for 2024 revised to $410 million, with continued focus on cost control and operational efficiencies.

• Brownfield and advanced exploration projects (Rodeo, Orisyvo, Guanajuato, Tajitos) to support future production growth.

• Lead and zinc output projected to rise as mining deepens in Fresnillo district.

• Cost reduction and operational efficiency programs to continue, with further savings expected in 2H24.