Fresnillo Stays on Track: Shares Rise

Fresnillo PLC's third-quarter production report, released October 22, 2025, reveals a mixed performance across its key commodities. While gold production is trending towards the upper end of its guidance range, silver production has declined as anticipated.

The company maintains its full-year guidance, signaling confidence in its operational strategy despite some headwinds.

Silver production experienced a notable decrease. Quarterly attributable silver production, including Silverstream, fell by 6.6% compared to the second quarter of 2025, and 19.1% compared to the third quarter of 2024, settling at 11.7 million ounces.

This decline stems primarily from the cessation of mining activities at San Julián DOB, lower ore grades at San Julián Veins, and challenges at Ciénega and Saucito mines. Year-to-date silver production also decreased by 14.2% versus YTD 2024, totaling 36.6 million ounces.

Gold production saw a slight dip. Quarterly attributable gold production reached 151.3 thousand ounces, a 4.1% decrease compared to the previous quarter and a 3.5% decrease compared to Q3 2024.

This was attributed to lower ore grades at Herradura and San Julián Veins, partially offset by higher grades at Ciénega, Saucito, and Juanicipio. However, year-to-date gold production increased by 8.8% compared to YTD 2024, reaching 465.1 thousand ounces, mainly driven by strong performance at Herradura.

By-product production presented a mixed bag. Lead production increased marginally by 1.4% compared to the second quarter, driven by higher ore grades at Juanicipio. Conversely, zinc production decreased by 12.9% due to lower ore volumes and grades at Saucito and Fresnillo. Both lead and zinc production declined compared to Q3 2024 and YTD 2024, primarily due to lower grades and volumes at Fresnillo and the San Julián DOB closure.

Fresnillo's focus remains on operational efficiency and safety. The company reiterated its commitment to a “Zero Fatalities” target, emphasizing training and adherence to safety policies.

Octavio Alvídrez, Chief Executive Officer, stated: “Production performance is in line with our expectations, and we are on track to meet our full year guidance, with gold trending towards the upper end of the range…We remain focused on achieving our priorities in the last quarter of the year.”

Fresnillo's 2025 outlook remains consistent with previous guidance. The company anticipates attributable silver production to range between 47.5 and 54.5 million ounces (including Silverstream), and gold production between 550 and 590 thousand ounces.

Lead production is projected at 56 to 62 kilotonnes, and zinc production at 93 to 103 kilotonnes. Total production, expressed in silver equivalent ounces, is expected to be 91-102 million ounces. 2026 and 2027 expected production is unchanged.

Driver Breakdown:

• Gold Strength: Herradura's strong performance continues to bolster overall gold production.
• Silver Weakness: The cessation of mining activities at San Julián DOB significantly impacts silver output.
• Operational Challenges: Ventilation issues and equipment availability at Saucito are affecting production efficiency.

Alvídrez stated, “The safety of our people is key, while our continued focus on running our operations as efficiently as possible will enable us to further capitalise on the consistently strong precious metals prices,” reinforcing the company’s commitment to sustainable and profitable operations.