Fresnillo plc (LSE:FRES) has reported lower silver and gold production for the third quarter of 2026, reflecting reduced ore grades and processing volumes at several operations, while maintaining its full-year production guidance across all metals.
The Mexico-focused precious metals producer recorded attributable silver production of 10.3 million ounces during the quarter, representing an 11.6% decline compared with the corresponding period in 2025.
Attributable gold production decreased 10.7% year on year to 135,100 ounces. Both silver and gold output also declined compared with the second quarter of 2026.
Fresnillo attributed the reduction in production to lower ore grades at certain mining operations, reduced volumes of ore processed and the cessation of contributions from its Silverstream arrangement.
The company also reported quarter-on-quarter declines in lead and zinc production, which are recovered as by-products of its silver and gold mining activities.
Despite the lower quarterly output, management said production remained broadly consistent with its expectations for the period.
Fresnillo reaffirmed its full-year 2026 production guidance, including attributable silver output of between 42.0 million and 46.5 million ounces and gold production of between 500,000 and 550,000 ounces.
The company also maintained its existing production outlook for 2027 and 2028, with no revisions announced following the third-quarter operating update.
Fresnillo operates several mining assets in Mexico, including Fresnillo, Herradura, Saucito, Juanicipio, San Julián and Ciénega.
Its operations include underground silver and gold mines, alongside associated processing facilities producing lead and zinc as secondary metals.
Management said the company’s operational priorities remain focused on maintaining production efficiency, managing costs and implementing safety measures across its mining portfolio.
The group continues to address variations in ore grades and processing volumes at its underground operations as part of its ongoing mine planning and production activities.
Looking ahead to the final quarter of 2026, Fresnillo will continue operating within its existing production plans as it works towards its annual output targets.
The company has maintained its full-year guidance of 42.0 million to 46.5 million ounces of silver and 500,000 to 550,000 ounces of gold, despite the year-on-year decline in third-quarter production.
Leave a Reply