Mexico's Fresnillo H1 revenue jumps on higher precious metal prices; raises dividend
Mexico's Fresnillo H1 revenue jumps on higher precious metal prices; raises dividend
Overview
Mexico precious metals miner's H1 revenue rose 74.7% yr/yr on higher gold and silver prices
Adjusted EPS for H1 climbed 227.9% yr/yr to US$175.1 cents per share
Company raised interim dividend to 43.4 cents per share
Outlook
Fresnillo sees 2026 silver output at 42.0-46.5 moz and gold at 500-550 koz
Company expects 2026 capex of $500-550 mln, revised from prior guidance
Exploration expenses for 2026 expected to be about $260 mln
Result Drivers
PRECIOUS METALS PRICES - Higher realized silver and gold prices drove revenue and profit growth, partly offsetting lower sales volumes
LOWER PRODUCTION VOLUMES - Silver and gold output fell due to lower ore grades, equipment delays and weather disruptions
COST INFLATION - Adjusted production costs rose on currency revaluation, inflation, and higher maintenance and contractor expenses
Company press release: ID:nRSD1156Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $3.38 bln |
|
H1 Adjusted Revenue | Beat | $3.41 bln | $3.05 bln (2 Analysts) |
H1 Net Income | Beat | $1.46 bln | $1.12 bln (1 Analyst) |
H1 EBITDA | Slight Beat* | $2.35 bln | $2.33 bln (2 Analysts) |
H1 Dividend |
| $0.43 |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the diversified mining peer group is "buy."
Wall Street's median 12-month price target for Fresnillo PLC is GBp3,200.00, about 28.1% above its August 3 closing price of GBp2,498.00
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Aug 3 - Mexico mining industry sees investment jump in 2026 as firms expand projects, buy equipment
Aug 3 - Mali says mining-backed fund could unlock up to $800 million for infrastructure projects
Aug 4 - Rio Tinto signals no rush to revive Glencore deal as standstill ends
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)