Fresnillo
Company Overview
Fresnillo plc (LSE: FRES; OTC: FNLPF) is the world’s leading primary silver producer and a major gold producer, with a portfolio of underground and open-pit mines in Mexico (Fresnillo, Saucito, Juanicipio, San Julián, Ciénega, Herradura and related operations). 2026 attributable production guidance remains 42.0–46.5 million ounces of silver and 500–550 thousand ounces of gold (plus lead and zinc by-products). H1 2026 silver production was 22.0 moz (–11.4% YoY, partly reflecting the end of the Silverstream contribution and lower grades at certain mines); gold production was 290,885 oz (–7.3% YoY). Strong precious-metal prices drove exceptional financial results: H1 revenues of US$3.38 billion (+75%), EBITDA of US$2.35 billion (+113%) and profit of US$1.46 billion. CEO is Octavio Alvídrez.
Investment Thesis
Fresnillo offers senior-scale primary silver and gold production from a portfolio of high-quality Mexican assets, exceptional leverage to elevated precious-metal prices, and a long track record of shareholder returns. H1 2026 financial performance was record-setting on the back of higher prices despite lower metal volumes. Key risks include grade and volume variability at mature underground mines, cost inflation (including peso strength), operational challenges at certain assets, and jurisdictional exposure concentrated in Mexico. Relative to pure juniors, FNLPF ranks substantially lower risk; residual operational and cost pressures keep it above the lowest-risk senior tier.
