Fresnillo (LSE:FRES), the Mexico-focused silver and gold miner, reported revenue of $3.38 billion for the six months to 30 June, up 74.7% from $1.94 billion a year earlier.
Gross profit rose 130.7% to $2.36 billion, while profit for the period jumped 213% to $1.46 billion from $467.6 million in the first half of 2025. Basic and diluted earnings per share from continuing operations climbed 227.9% to 175.1 cents, up from 53.4 cents.
The gains came despite falling output: attributable silver production fell 11.4% to 22.0 million ounces, partly reflecting the end of contributions from the Silverstream contract, while gold production dropped 7.3% to 290.9 thousand ounces on lower grades and processing disruptions at Herradura.
The average realised silver price rose 134.4% to $78.9 per ounce, and gold rose 47.3% to $4,666.8 per ounce, more than offsetting the volume declines.
"Fresnillo delivered an exceptional financial performance in the first half of 2026," said chief executive Octavio Alvídrez, citing "solid operational execution and cost discipline."
Cash and liquid funds stood at $2.5 billion at period end, down from $2.76 billion at the end of December, after funding the acquisition of Probe Gold, capital expenditure of $236.2 million and record dividend payments of $797.4 million.
Full-year guidance remains unchanged, with attributable silver production expected between 42.0 and 46.5 million ounces and gold between 500,000 and 550,000 ounces; capital expenditure guidance has been revised to $500-550 million.
The board declared an interim dividend of 43.4 cents per share, up from 30.6 cents a year earlier, totalling $319.8 million.
News Intelligence what this means for the company
Fresnillo's first-half profit surged 213% to $1.46 billion as silver and gold prices climbed 134% and 47% respectively, far outpacing a 11% drop in silver output and 7% fall in gold production. The company maintained full-year production guidance, raised its interim dividend 42% to 43.4 cents per share, and retained $2.5 billion in cash after funding the Probe Gold acquisition and record dividend payments of $797.4 million—demonstrating pricing power and financial discipline even as operational headwinds persist.
The earnings beat is entirely commodity-driven rather than operationally driven: production fell while costs held steady, leaving the investment case hostage to precious metals prices. The company's ability to sustain dividends and fund growth depends on silver and gold remaining elevated; any price reversion would expose the underlying production decline and operational challenges at Herradura.
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