Fresnillo's Profits Jump Despite Lower Silver and Gold Production in H1

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Fresnillo's gross profits more than doubled in the first half of the year, driven by high gold and silver prices despite lower production from its mines. The company's production guidance for 2026 remained unchanged while the company reduced its capex plan to half a billion from US$756 million.

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Fresnillo's Financial/Operational Results

Fresnillo, the world's largest silver producer, recorded gross profits of US$2.36 billion in the first half of the year, a 130.7% increase from the same period in 2025, as higher silver and gold prices offset lower output, sales, and increased production costs.

Fresnillo averaged a realized silver price increase of 134.4% to US$78.9 per ounce, from US$33.7 per ounce in 2025, while its average realized gold price rose 47.3% to US$4,666.8 per ounce.

Throughout the first half of 2026, the mining company produced 22 million ounces of silver, down 11.4% from the same period last year. The decline mainly reflects the end of contribution from the Silverstream contract at the Sabinas mine in Mexico, as well as lower ore grades at Mexican mines such as Saucito, Juanicipio, Cienaga, and San Julian Veins. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Plant Database can view detailed profiles of the four mines.

Gold production reached 290,900 ounces, 7.3% lower than the same period last year, also driven by lower ore grades, processing, and recoveries at the Herradura mine in Mexico.

"Operationally, gold and silver production was in line with our expectations, and plans across our mines are progressing well. We saw year-on-year changes from lower grades, a minor delay in the commissioning of the leaching pad XV at Herradura, and weather-related disruptions," said Octavio Alvidrez, Fresnillo's chief executive officer.

Despite the lower first-half volumes, Fresnillo maintained its production guidance for 2026 at between 42 million ounces and 46.5 million ounces for silver and 500,000--550,000 ounces for gold.

Meanwhile, the company reduced its capital-spending for 2026 to between US$500 million and US$550 million across mining operations from US$756 million.

Growing Portfolio

Fresnillo is advancing a portfolio of brownfield and greenfield projects in Mexico and Canada, although many of them still are pending permits and approvals.

Industrial Info Resources is tracking 29 Fresnillo projects worldwide amounting to US$2.90 billion in investments. The GMI Metals & Minerals Project Database offers more information on these projects--including construction schedules, investment values and necessary equipment--in a full list of project reports.

Among the most advanced is the Rodeo gold open pit project in Durango, Mexico, where the company is finalizing its preliminary economic assessment (PEA). If permits are secured, the company expects to begin production at the site in late 2029 or early 2030, with an estimated production range of 90,000-110,000 ounces of gold per year.

Meanwhile, the company's Orisyvo and Novador gold projects in Mexico and Canada, respectively, are expected to begin production by 2033. Orisyvo is advancing in pre-feasibility work, land acquisition and community consultations, with an average projected production of 180,000- 200,000 ounces of gold annually.

Novador, for its part, is expected to complete its pre-feasibility study in the third quarter. This asset could add an additional more than 200,000 ounces of gold to the company's output.

Key Takeaways

• Fresnillo recorded a gross profit of US$2.4 billion in the first half of the year, a 130.7% yearly increase.
• Silver production dropped by 11.4% year-over-year to 22 million ounces of silver in 1H.
• The company continues to move forward with several brownfield and greenfield projects aimed at increasing production.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).