Fresnillo profit soars as higher prices offset output fall, cost rise

Fresnillo PLC on Tuesday reported higher half-year sales and profitability as metals prices rose.

The precious metals miner in Mexico, Peru and Chile said pretax profit more than tripled to USD2.16 billion in the six months ended June 30 from USD660.3 million a year prior, with attributable profit soaring to USD1.29 billion from USD393.8 million, as revenue grew 75% to USD3.38 billion from USD1.94 billion.

Sales and profitability reflected higher silver and gold prices, partly offset by the anticipated lower volumes of gold and silver sold, the firm said.

First-half attributable silver production fell 11% to 22.0 million ounces, and gold production declined 7.3% to 290,885 ounces, reflecting lower grades and operational factors.

Adjusted production costs of USD811.9 million were up 21% on-year, primarily due to the revaluation of the Mexican peso versus the dollar. Fresnillo also citied cost inflation, higher maintenance costs at its Saucito mine, higher stripping and longer haulage distances at the Herradura mine, and together with higher contractor costs.

Fresnillo maintained its existing full-year production guidance and its production targets for 2027 and 2028.

Chief Executive Octavio Alvidrez said: "Fresnillo delivered an exceptional financial performance in the first half of 2026. Through a combination of solid operational execution and cost discipline, we continued to capitalise on the historic strength of precious metals prices."

"Our full-year production guidance remains unchanged, and our high-margin portfolio puts us in a strong position to capitalise on ongoing market tailwinds," the CEO added.

In response, Fresnillo more than doubled its interim dividend to 43.4 US cents per share from 20.8 cents a year earlier.

Shares in Fresnillo were up 0.8% to 2,516.73 pence each in London on Tuesday.

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