Fresnillo (FRES) Mining Forum Americas 2026 summary

Portfolio and Strategy

• Operates eight mines with a mix of underground and open pit operations, plus five advanced exploration projects, and maintains its position as the world's top silver producer and Mexico's leading gold producer.

• Focuses on district development, notably in Fresnillo and Herradura clusters, supported by recent acquisitions such as Probe Gold in Canada and a stake in Sinda.

• Maintains a robust pipeline from exploration to efficient mine operation, with brownfield and greenfield projects providing balanced growth.

• Analyst forecasts indicate structurally higher gold and silver prices through 2029, supporting long-term profitability.

• Ongoing focus on safety, environmental responsibility, and community engagement.

Financial Performance and Capital Allocation

• Over $2 billion returned to shareholders via dividends in the last five years, with a record interim dividend of US $319.8M in 1H26, up 109% from 1H25.

• Strong balance sheet with over US $2.5bn in cash, positive free cash flow, and a 69.5% EBITDA margin in 1H26.

• Revenue, gross profit, and EBITDA have grown significantly, with margins nearly doubling in the first half of the year.

• Maintains disciplined approach to development, capital allocation, and cost management, preserving capital for future growth.

• Financial strength enables strategic acquisitions and project development.

Operational Highlights and Project Updates

• Fresnillo district mines (Fresnillo, Saucito, Juanicipio) performed as planned, maintaining grades and production targets, with major upgrades like new shaft connections and plant commissioning to improve efficiency.

• Herradura, Ciénega, and San Julián showed solid progress; Ciénega gold output up 15%, while Herradura experienced a planned decrease but remains above FY26 plan.

• Saucito to lower costs with Jarillas shaft connection; Juanicipio production exceeds plan with new conveyor investment.

• Mine development and exploration drilling accelerated across key sites, supporting future production and mine-life extension.

• Valles underground project to add 50,000–90,000 ounces/year by year-end; Noche Buena mine life extended by 6–7 years.