Fresnillo (LSE:FRES) delivered a solid operational performance during the second quarter of 2026, with attributable silver production reaching 10.9 million ounces. Silver output declined 1.7% from the previous quarter and was 12.6% lower than a year earlier, reflecting reduced ore grades at several key operations and the planned conclusion of the Silverstream agreement. Gold production increased 13.8% quarter on quarter to 154,812 ounces, although it remained 1.9% below the level recorded in the same period last year.
Production of by-product metals, including lead and zinc, improved during the quarter, and the company reaffirmed its full-year 2026 production guidance across all of its principal commodities.
Operational focus remains on safety and efficiency
Fresnillo said it continues to prioritise workplace safety through initiatives aimed at achieving zero fatalities across its operations. The company also confirmed a leadership change within its Central Region, with long-serving executive Gabriel Durán assuming responsibilities on an interim basis following the departure of the regional chief operating officer.
Management continues to address operational challenges, including ore grade variability, ground stability issues and equipment constraints, through enhanced mine planning and additional ground support measures designed to improve productivity and operational reliability.
Strong financial position supports long-term outlook
The miner remains focused on balancing production volumes with cost discipline and operational efficiency as it prepares to report its interim financial results on 4 August 2026.
Management believes its diversified production profile, project pipeline and ongoing operational improvements position the company to continue generating value for shareholders despite mine-specific challenges.
Investment outlook
Fresnillo’s investment case is supported by a significant recovery in profitability and cash flow during 2025, together with low leverage and a pipeline of development projects that supports future production.
However, near-term technical indicators remain relatively subdued, with the shares trading below their 20-day and 50-day moving averages. Valuation also appears less compelling, with the stock trading on a price-to-earnings ratio of around 23.4, while higher capital expenditure and tax-related cash outflows are expected to weigh on performance during 2026.
About Fresnillo
Fresnillo plc is a London-listed precious metals mining company with large-scale underground and open-pit operations across Mexico. The group is one of the world’s largest primary silver producers and a major gold producer, while also generating revenue from lead and zinc by-products.
Its strategy focuses on maintaining efficient, low-cost operations, advancing a portfolio of development projects and investing in operational excellence to support long-term production growth and shareholder returns.
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