Fresnillo plc reported robust second-half results, driven by increased silver production and favorable metal prices, reinforcing its position as a leading global silver producer. The company's operational and financial milestones are expected to influence investor sentiment in the precious metals sector.
- Fresnillo produced 112 million silver equivalent ounces in H2 2025, up 5% YoY.
- Silver output reached 98 million ounces, supported by improved efficiency at Guanaceví and San Juan del Río.
- Cash costs per ounce held steady at $6.80, despite rising input costs.
- Net profit rose 12% to $489 million in H2 2025.
- Average silver price rose to $32.40/oz in H2 2025 from $28.50/oz in H2 2024.
- Fresnillo reaffirmed full-year 2025 guidance with silver output projected above 190 million ounces.
Fresnillo plc delivered a strong second-half performance, reporting 112 million ounces of silver equivalent production, a 5% year-on-year increase, with silver output reaching 98 million ounces. Cash costs per ounce of silver were maintained at $6.80, reflecting disciplined cost management amid elevated input prices. The company achieved a net profit of $489 million for the period, marking a 12% improvement over the same quarter in the prior year. These results were supported by a sustained average silver price of $32.40 per ounce during H2 2025, surpassing the $28.50 average in H2 2024. The improved earnings were underpinned by higher throughput at the Guanaceví and San Juan del Río operations, where production efficiency gains and expanded mining activities contributed to output growth. Fresnillo also advanced its sustainability initiatives, with a 23% reduction in carbon intensity at its core mines, aligning with long-term ESG commitments. The company reaffirmed its full-year 2025 production guidance, targeting 215 million to 225 million silver equivalent ounces, with silver production expected to exceed 190 million ounces. Market reactions followed the earnings release, with Fresnillo's shares (FRES.L) rising 6.2% in early trading, outpacing the broader materials sector. Silver miners such as Pan American Silver (PAAS) and First Majestic Silver (AG) also saw gains, while the broader silver price (SLV) strengthened by 4.1% to $33.90 per ounce. Gold (GLD) remained stable, suggesting a market focus on silver-specific tailwinds. Analysts noted that Fresnillo’s cost control and production resilience could provide a benchmark for peer performance in a tightening commodity environment.