REG - Fresnillo PLC - First Quarter Production Report

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RNS Number : 4134B  Fresnillo PLC  22 April 2026

 

 
 
        Fresnillo plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

www.fresnilloplc.com (http://www.fresnilloplc.com)

 

22 April 2026

 

 

 

FIRST QUARTER PRODUCTION REPORT

FOR THE THREE MONTHS ENDED 31 MARCH 2026

 

Octavio Alvídrez, Chief Executive Officer, said:

 

"We have started 2026 in line with our expectations, with production across
our operations consistent with the guidance set at the beginning of the year.
Our operational plans are progressing well. In particular, commissioning of
the new leaching pad at Herradura is complete and ore depositing has begun
while the interconnection of the Jarillas shaft at Saucito is on track to be
completed later this year.

 

"With ongoing global volatility, we continue to monitor costs closely and note
that precious metals prices remain resilient.

 

The safety of our people and the well-being of our communities remain, as
always, our key priority."

 

 

 

HIGHLIGHTS

 

Silver

 

·    Quarterly attributable silver production of 11.1 moz decreased 8.5%
vs. 4Q25 mainly due to the lower ore grades and decreased volumes of ore
processed at Saucito, Fresnillo and Juanicipio, partly offset by the increased
ore throughput and higher ore grade at Ciénega.

 

·    Quarterly attributable silver production down 6.5% vs. 1Q25, mainly
due to the end of the contribution from the Silverstream in 4Q25, the lower
ore grade, decreased volume of ore processed and lower recovery rates at
Fresnillo and Ciénega, and the lower ore grade and recovery rate at
Juanicipio.

 

 

Gold

 

·    Quarterly attributable gold production of 136.1 koz, up 0.7% vs.
4Q25, primarily due to the higher ore grade and recovery rate at Herradura
and, to a lower extent, at Fresnillo, and the higher volume of ore processed
and increased ore grade at Ciénega. This was partly offset by the lower ore
grade at Saucito and San Julián Veins, and the lower contribution from Noche
Buena.

 

·    Quarterly attributable gold production decreased 12.8% vs. 1Q25
primarily due to the decrease in the volume of ore processed and lower ore
grade and recovery rate at Herradura. In contrast, gold production in 1Q25 was
supported by the higher ore grades from planned mining areas and additional
gold inventories processed.

 

 

By-Products

 

·    Quarterly attributable by-product lead production decreased by 6.9%
vs. 4Q25, mainly driven by the lower ore grade and decrease in ore throughput
at Saucito and Fresnillo, mitigated by the higher ore grade at Juanicipio.

 

·    Quarterly attributable by-product lead production increased by 2.4%
vs 1Q25 due to the higher ore grade at Juanicipio, partly offset by the lower
ore grade and decrease in volumes of ore processed at Fresnillo and Saucito.

 

·    Quarterly attributable by-product zinc production decreased 5.1% vs.
4Q25 mainly due to lower ore grade at Fresnillo and decreased volumes of ore
processed at Saucito, partly mitigated by the higher ore grade at Juanicipio.

 

·    Quarterly attributable by-product zinc production increased 3.5% vs.
1Q25, driven by the higher ore grade at Juanicipio and Fresnillo, partially
offset by the lower ore grade and decreased ore throughput at Saucito, and the
cessation of production of zinc concentrate at Ciénega from 3Q25.

 

 

 

                     1Q26     4Q25     % Change  1Q25     % Change
 Silver (koz)        11,121   12,160   -8.5      11,889   -6.5
 Silverstream (koz)  0        0        N/A       488      -100.0
 Total Silver (koz)  11,121   12,160   -8.5      12,377   -10.1
 Gold (oz)           136,074  135,192  0.7       156,105  -12.8
 Lead (t)            15,390   16,535   -6.9      15,030   2.4
 Zinc (t)            26,126   27,528   -5.1      25,249   3.5

 

SAFETY PERFORMANCE

 

Our priority is ensuring the wellbeing and safety of our entire workforce. We
are dedicated to embedding an authentic safety culture throughout every level
of our operations and remain focused on achieving our goal of zero fatalities.
We prioritise training and rigorous compliance with our safety policies, with
a focus on preventive measures for a secure working environment for all our
people.

 

OUTLOOK

 

·    Our 2026 outlook is in line with previous guidance and the 2027 and
2028 expected production remains unchanged:

                                       GUIDANCE 2026  EXPECTED 2027  EXPECTED 2028
 Attributable silver production (moz)  42 to 46.5     45 to 51       45 to 51
 Attributable gold production (koz)    500 to 550     535 to 595     535 to 595
 Attributable lead production (kt)     54 to 59       51 to 57       56 to 62
 Attributable zinc production (kt)     85 to 95       93 to 103      100 to 112
 Silver eq. (moz)(1 1 )                82 to 91       88 to 99       88 to 99

 

For further information, please visit our website www.fresnilloplc.com
(http://www.fresnilloplc.com) or contact:

 FRESNILLO PLC                                                            Tel: +44 (0)20 7399 2470

 London Office

 Gabriela Mayor, Head of Investor Relations

 Mark Mochalski
 Mexico City Office                                                       Tel: +52 55 52 79 3206

 Ana Belem Zárate

 SODALI                                                                   Tel: +44 (0)7793 858 211

 Peter Ogden

 

 

MINING OPERATIONS

 

FRESNILLO MINE PRODUCTION

 

                                    1Q26     4Q25     % Change  1Q25     % Change
 Ore Processed (t)                  510,424  524,563  -2.7      518,474  -1.6

 Production
 Silver (koz)                       2,369    2,706    -12.5     2,733    -13.3
 Gold (oz)                          12,193   11,326   7.7       10,685   14.1
 Lead (t)                           5,437    5,883    -7.6      5,698    -4.6
 Zinc (t)                           11,376   12,775   -11.0     11,096   2.5

 Ore Grades
 Silver (g/t)                       161      178      -9.6      181      -11.0
 Gold (g/t)                         1.00     0.91     9.9       0.86     16.3
 Lead (%)                           1.27     1.32     -3.8      1.29     -1.6
 Zinc (%)                           2.98     3.25     -8.3      2.92     2.1

 Pyrite Concentrates Processed (t)  24,095   24,022   0.3       16,937   42.3

 Production
 Silver (koz)                       378      415      -8.9      346      9.2
 Gold (oz)                          597      740      -19.3     433      37.9

 Ore Grades
 Silver (g/t)                       734      740      -0.8      869      -15.5
 Gold (g/t)                         2.49     2.45     1.6       2.77     -10.1

 

Quarterly silver production decreased 12.5% and 13.3% vs 4Q25 and 1Q25,
respectively, mainly driven by the lower silver ore grades at the San Alberto
and Candelaria areas, and increased dilution in narrower veins at several cut
and fill stopes. Additional measures have been implemented, including enhanced
supervision of the marking of drilling patterns and mucking line control, as
well as stricter adherence to the mine plan in narrower vein areas.

 

Quarterly silver production was also impacted by a decrease in volumes of ore
processed as a result of slower mining cycles in  the San Mateo and Santa
Elena areas due to lower availability of anchoring equipment in March, and
structural faults at San Alberto, which limited the areas mined while
additional ground support was concluded.

 

Mine development rates remained broadly stable at an average of 3,513m per
month in 1Q26 (3,565m per month in 4Q25).

 

Quarterly gold production increased 7.7% and 14.1% vs. 4Q25 and 1Q25,
respectively, driven by the higher than expected gold ore grade in the areas
mined, partly offset by the lower volumes of ore processed.

 

The silver ore grade in 2026 is expected to be in the range of 160 to 180 g/t,
while the gold ore grade is estimated to be between 0.55 to 0.65 g/t.

 

SAUCITO MINE PRODUCTION

 

                                    1Q26     4Q25     % Change  1Q25     % Change
 Ore Processed (t)                  550,106  567,341  -3.0      563,068  -2.3

 Production
 Silver (koz)                       3,187    3,670    -13.2     3,185    0.1
 Gold (oz)                          13,773   19,162   -28.1     13,754   0.1
 Lead (t)                           5,835    7,056    -17.3     6,368    -8.4
 Zinc (t)                           8,759    9,247    -5.3      9,449    -7.3

 Ore Grades
 Silver (g/t)                       208      226      -8.0      199      4.5
 Gold (g/t)                         1.02     1.37     -25.5     1.01     1.0
 Lead (%)                           1.24     1.43     -13.3     1.31     -5.3
 Zinc (%)                           2.06     2.05     0.5       2.14     -3.7

 Pyrite Concentrates Processed (t)  16,924   19,211   -11.9     18,338   -7.7

 Production
 Silver (koz)                       104      125      -16.8     128      -18.8
 Gold (oz)                          285      477      -40.3     242      17.8

 Ore Grades
 Silver (g/t)                       286      285      0.4       299      -4.3
 Gold (g/t)                         1.67     1.99     -16.1     1.58     5.7

 

Quarterly silver production decreased 13.2% vs 4Q25, mainly due to lower ore
grade as a result of increased dilution at the Alamitos area, and differences
with the geological model. In addition, the expected decrease in volumes of
ore processed also contributed to the lower silver production. This was
primarily due to the stoppage of the Jarillas shaft in mid-March to
interconnect its two sections, which required a switch to ore haulage via
ramps. However, ramp haulage is now increasing and is expected to normalise in
2Q26, thus reducing the volume of stockpiled ore in the mine.

 

Quarterly silver and gold production remained unchanged vs 1Q25 due to the
higher ore grade as a result of dilution control, offset by the decrease in
volume of ore processed.

 

Quarterly gold production decreased 25.5% vs 4Q25, mainly due to lower ore
grades, as explained above.

 

Mine development rates decreased to 2,273m per month in 1Q26 (4Q25: 2,493m per
month) primarily due to lower availability of trucks, as some units were
temporarily reallocated to ore haulage when the shaft was stopped, and high
turnover among contractor personnel, which adversely impacted performance
during the first quarter. However, additional contractor personnel are being
hired, and development rates are expected to improve in the coming months.

 

The connection of the two sections of the shaft is expected to be concluded in
4Q26.

 

The silver ore grade for 2026 is expected to be in the range of 200-220 g/t,
while the gold grade is estimated to be between 0.95-1.15 g/t.

 

 

 

JUANICIPIO - ATTRIBUTABLE

 

                                    1Q26     4Q25     % Change  1Q25     % Change
 Ore Processed (t)                  190,493  193,918  -1.8      188,730  0.9

 Production
 Silver (koz)                       2,201    2,358    -6.7      2,503    -12.1
 Gold (oz)                          6,386    5,961    7.1       5,711    11.8
 Lead (t)                           3,881    3,385    14.7      2,686    44.5
 Zinc (t)                           5,990    5,506    8.8       4,291    39.6

 Ore Grades
 Silver (g/t)                       389      420      -7.4      430      -9.5
 Gold (g/t)                         1.35     1.27     6.3       1.24     8.9
 Lead (%)                           2.22     1.94     14.4      1.61     37.9
 Zinc (%)                           3.92     3.51     11.7      2.90     35.2

 Pyrite Concentrates Processed (t)  1,358    6,800    -80.0     0        N/A

 Production
 Silver (koz)                       20       79       -74.7     0        N/A
 Gold (oz)                          24       149      -83.9     0        N/A

 Ore Grades
 Silver (g/t)                       705      519      35.8      0        N/A
 Gold (g/t)                         1.75     1.74     0.6       0        N/A

Attributable quarterly silver production decreased 6.7% vs 4Q25, mainly due to
the expected decrease in silver ore grades as deeper areas are mined and, to a
lesser extent, lower ore throughput.

Attributable quarterly silver production decreased 12.1% vs 1Q25 driven by the
lower ore grade and recovery rate, mitigated by the higher volume of ore
processed due to the optimisation of the maintenance programme.

Attributable quarterly gold production increased 7.1% and 11.8% vs 4Q25 and
1Q25, respectively, due to the higher ore grade and improved recovery rate.

 

The silver ore grade in 2026 is expected to be in the range of 320-370 g/t,
while the gold grade is estimated to be between 1.1-1.3 g/t.

 

 

CIÉNEGA MINE PRODUCTION

 

                    1Q26     4Q25     % Change  1Q25     % Change
 Ore Processed (t)  227,402  207,317  9.7       229,647  -1.0

 Production
 Gold (oz)          10,003   8,561    16.8      8,144    22.8
 Silver (koz)       674      586      15.0      889      -24.2
 Lead (t)           237      211      12.3      277      -14.4
 Zinc (t)           0        0        N/A       413      -100.0

 Ore Grades
 Gold (g/t)         1.46     1.37     6.6       1.20     21.7
 Silver (g/t)       131      121      8.3       140      -6.4
 Lead (%)           0.27     0.25     8.0       0.24     12.5
 Zinc (%)           0.30     0.31     -3.2      0.36     -16.7

Quarterly gold and silver production increased 16.8% and 15.0% vs 4Q25,
respectively, mainly due to the increase in volume of ore processed, driven by
the timely preparation of long hole drilling stopes and optimised allocation
of personnel and equipment, and the higher ore grade as a result of increased
dilution control.

Quarterly gold production increased 22.8% vs. 1Q25 mainly due to higher ore
grades from Veta Victoria and Virginia areas and to a lesser extent, partly
offset by the lower volume of ore processed.

Quarterly silver production decreased 24.2% vs 1Q25 as a result of decreased
recovery rate due to the higher portion of oxides processed at the flotation
plant following the depletion of sulphides from Taspana, lower ore grade and
decreased volumes of ore processed.

The gold and silver ore grades for 2026 are estimated to be in the ranges of
1.4-1.6 g/t and 110-130 g/t, respectively.

 

SAN JULIÁN MINE VEINS

 

                          1Q26     4Q25     % Change  1Q25     % Change
 Ore Processed Veins (t)  318,398  319,066  -0.2      292,574  8.8

 Production Veins
 Gold (oz)                11,635   13,033   -10.7     12,088   -3.7
 Silver (koz)             2,018    2,100    -3.9      1,979    2.0

 Ore Grades Veins
 Gold (g/t)               1.20     1.33     -9.8      1.36     -11.8
 Silver (g/t)             220      226      -2.7      231      -4.8

Quarterly gold and silver production decreased vs 4Q25, due to the lower ore
grade at the San Antonio area.

Quarterly gold production decreased 3.7% vs 1Q25, primarily driven by the
lower ore grade, mitigated by the increase in volume of ore processed due to
operational continuity in 1Q26, whereas an electrical fault affected the ball
mill in the prior year period, which required an unplanned maintenance
stoppage.

Quarterly silver production increased 2.0% vs. 1Q25 driven by the higher
volume of ore processed due to previously mentioned factors, partly offset by
the lower ore grade and reduced recovery rate.

Silver and gold ore grades in 2026 are expected to be in the ranges of 210-230
g/t and 0.9-1.1 g/t, respectively.

 

HERRADURA TOTAL MINE PRODUCTION

 

                          1Q26        4Q25        % Change  1Q25        % Change
 Ore Processed (t)        4,500,486   4,754,900   -5.4      5,096,357   -11.7
 Total Volume Hauled (t)  22,315,326  23,687,175  -5.8      24,540,480  -9.1

 Production
 Gold (oz)                78,308      71,277      9.9       101,424     -22.8
 Silver (koz)             170         120         41.7      125         36.0

 Ore Grades
 Gold (g/t)               0.71        0.63        12.7      0.76        -6.6
 Silver (g/t)             1.68        1.25        34.4      1.16        44.8

 

Quarterly gold production increased 9.9% vs 4Q25 mainly driven by the higher
ore grade due to increased selectivity and higher ore grade processed at the
dynamic leaching plants, partly offset by the lower volume of ore processed
due to a minor delay in the commissioning of phase XV of the leaching pads and
heavy rain and fog in January.

Quarterly gold production decreased 22.8% vs 1Q25, driven by the decrease in
volumes of ore processed and lower ore grade, whereas higher ore grades were
mined and additional gold inventories processed in 1Q25.

The commissioning of phase XV of the leaching pads has been completed, and ore
depositing has begun.

The average gold ore grade in 2026 is expected to be in the range of 0.50-0.70
g/t.

 

NOCHE BUENA

 

2,869 ounces of gold were recovered from the leaching pads at Noche Buena in
1Q26, a 36.3% decrease vs 4Q25 and a 20.8% decrease compared to 1Q25. As
previously announced, mining activities concluded in May 2023. However, a
recent assessment of the economic viability of the remaining ore at Noche
Buena, based on current gold prices, has been completed with positive results.
More detailed analysis and preparatory activities will be undertaken in 2Q26
to support the potential near-term restart of operations at the mine.

 

 

 

ABOUT FRESNILLO PLC

Fresnillo plc is the world's largest primary silver producer and Mexico's
largest gold producer, listed on the London and Mexican Stock Exchanges under
the symbol FRES.

Fresnillo plc has eight operating mines, all of them in Mexico - Fresnillo,
Saucito, Juanicipio, Ciénega, Herradura, Soledad-Dipolos(1), Noche Buena and
San Julián Veins and five advanced exploration projects - Orisyvo, Rodeo,
Guanajuato, Tajitos and Novador as well as a number of other long term
exploration prospects.

Fresnillo plc has mining concessions and exploration projects in Mexico, Peru
and Chile.

Fresnillo plc's goal is to maintain the Group's position as the world's
largest primary silver company and Mexico's largest gold producer.

( )

(1) Operations at Soledad-Dipolos are currently suspended.

 

FORWARD-LOOKING STATEMENTS

Information contained in this announcement may include 'forward-looking
statements'. All statements other than statements of historical facts included
herein, including, without limitation, those regarding the Fresnillo Group's
intentions, beliefs or current expectations concerning, amongst other things,
the Fresnillo Group's results of operations, financial position, liquidity,
prospects, growth, strategies and the silver and gold industries are
forward-looking statements. Such forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance and the
actual results of the Fresnillo Group's operations, financial position and
liquidity, and the development of the markets and the industry in which the
Fresnillo Group operates, may differ materially from those described in, or
suggested by, the forward-looking statements contained in this document. In
addition, even if the results of operations, financial position and liquidity,
and the development of the markets and the industry in which the Fresnillo
Group operates are consistent with the forward-looking statements contained in
this document, those results or developments may not be indicative of results
or developments in subsequent periods. A number of factors could cause results
and developments to differ materially from those expressed or implied by the
forward-looking statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity prices, changes
in regulation, currency fluctuations (including the US dollar and Mexican Peso
exchanges rates), the Fresnillo Group's ability to recover its reserves or
develop new reserves, including its ability to convert its resources into
reserves and its mineral potential into resources or reserves, changes in its
business strategy and political and economic uncertainty.

 

 

 

 

 

 1  Silver eq. ounces are calculated converting only gold into silver ounces
with an Au:Ag ratio of 80:1. Lead and zinc production is not included in
silver eq. ounces.

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