Fresnillo (FRES) H2 2024 earnings summary

Executive summary

• Achieved operational stability and met production guidance for two consecutive years, focusing on cost control, efficiency, and asset optimization.

• Declared a special dividend, with total 2024 shareholder returns close to $550 million, reflecting strong cash flow and a robust balance sheet.

• Maintained position as the world's top silver producer and leading gold producer in Mexico, supported by a large resource base and reserve conversion.

• Positive engagement with the new Mexican administration led to the granting of permits and a constructive regulatory environment.

• Positive ESG outcomes achieved, including improved safety, environmental performance, and community engagement.

Financial highlights

• Gross profit increased by 147.7% to $1,246.3M; operating profit up 563.8% to $945.8M; profit before taxes up 552%.

• Total revenue reached $3,496.4M, up 29.3% year-over-year; EBITDA increased 136.0% to $1,547.3M.

• Net profit decreased by 21% due to non-cash items and exchange rate effects, despite strong operational results.

• Cash flow from operations reached $1.55 billion, up 140% year-over-year; year-end cash balance at $1,297.8M.

• Total dividend for 2024 was $547.5M, including a special dividend of $308.0M.

Outlook and guidance

• 2025 production guidance for silver and gold provided, with expected ore grades detailed for each mine; guidance slightly softer than 2024 but remains sizable.

• CapEx expected to rebound in 2025 to $520M and normalize at $485–$500 million by 2027 as permitting flows improve.

• Continued focus on operational stability, cost control, and margin expansion; exploration and greenfield project advancement remain priorities.

• Expecting a low to mid-single-digit decline in adjusted production costs in 2025 if FX remains stable.