Fresnillo (LSE:FRES) delivered record financial results for 2025, with adjusted revenue rising 27.6% to US$4.65 billion. EBITDA surged 80.7% to US$2.80 billion, supported primarily by stronger precious metal prices and disciplined cost management, even as overall production volumes declined.
Profit for the year climbed to US$1.57 billion, reflecting sharply improved margins. The company ended the year with net cash of US$1.92 billion, underpinning a total dividend of US$950 million — the largest distribution in its history and above its standard payout framework.
Operationally, silver production met guidance and gold output exceeded expectations, though both were lower year-on-year due to mine closures, reduced grades and lower ore throughput. Output of by-product lead and zinc also declined. Management highlighted efficiency and optimisation initiatives across core assets, alongside the wind-down of the Silverstream contract and continued investment in exploration and development projects aimed at strengthening the long-term pipeline.
These actions are intended to enhance Fresnillo’s cost structure and sustain production capacity, while maintaining strong shareholder returns in a favourable pricing environment.
From an investment perspective, the group benefits from robust margins, low leverage and significantly improved cash flow, reinforced by constructive earnings guidance. However, technical indicators suggest the shares may be overbought, and valuation metrics — including a relatively elevated P/E ratio — point to reduced near-term margin of safety.
More about Fresnillo
Fresnillo plc is a leading precious metals producer focused primarily on silver and gold, with major operations in Mexico. The company operates mines including Herradura, Fresnillo, Ciénega, Saucito and San Julián, and also generates revenue from lead and zinc by-products. Its performance is closely linked to global precious metal price movements, positioning it as a key player in the international mining sector.
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