Fresnillo (FRES) Status update summary

Operational performance

• Gold production for the year exceeded the upper end of guidance, while silver production was in line with expectations, reflecting strong operational execution and asset resilience.

• Quarterly silver production rose 5.9% vs. 3Q25 due to higher ore grades at key mines, but fell 8.0% year-on-year, mainly from lower grades and the cessation of certain mining activities.

• Full-year silver output dropped 13.5% vs. FY24, primarily due to mine closures and lower grades, while gold output, though down 5.0% year-on-year, surpassed guidance.

• By-product lead and zinc production increased quarter-on-quarter but declined year-on-year, impacted by lower grades, mine closures, and the discontinuation of zinc production at Ciénega.

Production guidance and outlook

• 2026 guidance: silver 45–51 moz, gold 515–565 koz, lead 54–59 kt, zinc 85–95 kt; similar ranges expected for 2027–2028, with some fluctuations.

• Silver production in 2026 is expected to be lower due to changes in mine plans, reduced ore throughput, and delayed shaft connections.

• Gold production in 2026 will be lower as some output was brought forward to 2025; 2027 guidance remains unchanged, with increases expected as new areas are developed.

Mine-specific performance

• Fresnillo mine saw a 12.0% quarterly increase in silver production due to higher grades, but full-year gold output fell 20.8% year-on-year.

• Saucito mine's quarterly silver output rose 8.4% on higher grades, but annual production declined due to equipment and operational challenges.

• Juanicipio's annual gold production increased 9.1% year-on-year, while silver output fell 7.3% due to lower grades, partially offset by higher processed volumes.

• Ciénega experienced a sharp drop in annual silver and gold production, driven by lower grades, reduced throughput, and the end of zinc concentrate production.

• San Julián Veins saw a modest annual gold increase and a slight silver decrease, with 2026 grades expected to remain stable.

• Herradura's gold output dropped 1.2% year-on-year, mainly from lower grades and processing delays, while Noche Buena continued its closure plan.