Fresnillo (FRES) H1 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in 1H25, with record silver production of 24.9 Moz and gold production of 313.8 koz, maintaining leadership in silver and gold output.

• EBITDA margin surged to 56.9% from 36.6% in 1H24, with profit for the period at $467.7M and adjusted EPS up 399% year-over-year.

• Strong free cash flow over $1bn and interim dividend of 20.8 US¢ per share declared, reflecting increased profits and ample liquidity.

• Focused on cost control, safety, and community relations, achieving record renewable energy use and advancing social initiatives.

• Silverstream contract buyback resulted in a non-cash loss of $133M after tax, with no further Silverstream contribution from 2H25.

Financial highlights

• Adjusted revenues rose 27.1% year-over-year to $1,982.9M; gross profit up 160.7% to $1,022.9M; EBITDA reached $1,102.1M, up 102.5% from 1H24.

• Operating profit at $860.8M, up 266%; net profit up nearly 300%; basic and diluted EPS from continuing operations increased 399.1% to $0.534.

• Free cash flow surpassed $1bn, supporting over $150 million in dividends; cash and equivalents at period end were $1,823M.

• Adjusted production costs fell 20.2% to $673.5M, driven by efficiencies and peso devaluation.

• Main profit drivers were higher gold and silver prices (up 45.8% and 21.9% respectively) and lower production costs.

Outlook and guidance

• 2025 gold production guidance raised to 550–590 koz; silver guidance adjusted to 47.5–54.5 Moz due to end of Silverstream contributions, keeping silver-equivalent ounces stable.

• CapEx guidance for 2025 revised down to $450M due to project delays and resequencing; exploration expenses expected at $190M.

• No major cost inflation expected in H2; unit cost inflation forecasted at 2–3% for the year.

• Dividend policy remains at 50% of net profit, with potential for special dividends as cash builds.

• Multiple greenfield and brownfield projects advancing, with significant resource growth potential.