REG - Fresnillo Plc - Second quarter production report

FresnilloAnnouncement

23/07/2025 07:00

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RNS Number : 2100S  Fresnillo PLC  23 July 2025

 

 
 
                                       Fresnillo plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

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

 

23 July 2025

 

 

 

SECOND QUARTER PRODUCTION REPORT

FOR THE THREE MONTHS ENDED 30 JUNE 2025

 

Octavio Alvídrez, Chief Executive Officer, said:

 

"I am pleased to report another quarter of robust silver and gold production,
reflecting the resilience and dedication of our teams and consistent
performance of our operating mines. Gold production is trending towards the
upper end of our full-year guidance, driven by a strong performance at
Herradura, while silver production remains in line with guidance albeit
impacted by the weaker Silverstream contribution and lower grades at the
Fresnillo mine. Our rigorous focus on operational optimisation and cost
reduction initiatives continues to yield positive results, combined with
favourable precious metals prices."

 

 

 

HIGHLIGHTS

 

Silver

 

·    Quarterly attributable silver production of 12.5 moz (including
Silverstream) increased 1.0% vs. 1Q25 due to the higher volume of ore
processed and higher ore grade at Saucito and San Julián Veins, partly offset
by the lower ore grade at Fresnillo and lower ore grade and a decrease in
recovery rate at Ciénega.

 

·    Quarterly attributable silver production (including Silverstream)
down 14.7% vs. 2Q24, mainly due to the cessation of mining activities at San
Julián DOB, the lower ore grade and decreased recovery rate at Ciénega, and
the lower ore grade at Juanicipio, mitigated by the increase in volume of ore
processed and higher ore grade at San Julián Veins.

 

·    First half attributable silver production of 24.9 moz (including
Silverstream) decreased 11.8% vs. 1H24, mainly due to the cessation of mining
activities at San Julián DOB, a decrease in volume of ore processed, lower
ore grade and decreased recovery rate at Ciénega and lower ore grade at
Juanicipio.

 

Gold

 

·    Quarterly attributable gold production of 157.7 koz, increased 1.0%
vs. 1Q25, mainly driven by the higher ore grade and ore processed at Saucito,
San Julián Veins and Ciénega, and the increased contribution from Noche
Buena. This was partly offset by the lower ore grade and decrease in volume of
ore processed at Herradura and the lower ore grade at Fresnillo.

 

·    Quarterly attributable gold production increased 21.3% vs. 2Q24
primarily due to the higher ore grade and the additional gold inventories
processed at Herradura, partly offset by the lower ore grade and decreased ore
processed at Fresnillo.

 

·    First half attributable gold production of 313.8 koz, increased 15.9%
vs. 1H24 mainly due to the higher ore grade and the additional gold
inventories processed at Herradura, partly offset by the lower ore grade and
decreased volumes of ore processed at Saucito and Ciénega, and the lower
volume of ore processed at Fresnillo.

 

By-Products

 

·    Quarterly attributable by-product lead production slightly increased
vs. 1Q25, mainly driven by the higher ore grade and increased volume of ore
processed at Saucito and Juanicipio, partly offset by the lower ore grade at
Fresnillo.

 

·    Quarterly attributable by product zinc production increased 12.5% vs.
1Q25 due to the higher ore grade and increase in volume of ore processed at
Saucito and Juanicipio, partly offset by the lower ore grade and decreased
recovery rate at Ciénega.

 

·    Quarterly and first half attributable by-product lead production
decreased 10.4% and 5.2% vs. 2Q24 and 1H24, respectively, mainly due to the
lower ore grade and decrease in volumes of ore processed at Fresnillo and the
cessation of mining activities at San Julián DOB, partly mitigated by the
higher ore grade at Saucito.

 

·    Quarterly and first half attributable by-product zinc production
decreased 2.9% and 3.2% vs. 2Q24 and 1H24, respectively, mainly due to the
cessation of mining activities at San Julián DOB and the lower ore grade,
decreased recovery rate and lower volume of ore processed at Ciénega, partly
mitigated by the higher ore grade at Saucito.

 

 

                     2Q25     1Q25     % Change  2Q24     % Change  1H25     1H24                  % Change
 Silver (koz)        12,054   11,889   1.4       14,038   (14.1)    23,943   27,155                (11.8)
 Silverstream (koz)  452      488      (7.4)     617      (26.7)    940              1,014         (7.3)
 Total Silver (koz)  12,506   12,377   1.0       14,655   (14.7)    24,882   28,169                (11.7)
 Gold (oz)           157,735  156,105  1.0       130,025  21.3      313,840  270,872               15.9
 Lead (t)            15,152   15,030   0.8       16,906   (10.4)    30,182   31,830                (5.2)
 Zinc (t)            28,403   25,249   12.5      29,240   (2.9)     53,651   55,397                (3.2)

 

SAFETY PERFORMANCE

 

It is with profound sadness that we confirm the tragic loss of two valued
colleagues in separate fatal incidents, one at Ciénega in June and another at
Juanicipio in July. Our deepest condolences are with their families, friends,
and coworkers. Full support has been offered including providing counseling
and other resources. The safety of our people is our absolute priority. All
our employees and contractors must return home safely at the end of every
shift.  Full investigations were immediately ordered to understand the
circumstances of these incidents and further strengthen our safety protocols,
while all relevant authorities were immediately notified. These incidents are
a stark reminder of the importance of instilling a culture of safety across
all our operations. We have re-doubled those efforts, focusing on identifying
preventive measures, training and maintaining stringent adherence to our
safety policies to provide a safer environment for our workforce.

 

 

2025 OUTLOOK

 

Our 2025 outlook remains in line with previous guidance:

Attributable silver production expected to be in the range of 49.0 to 56.0 moz
(including Silverstream).

Attributable gold production expected to be in the range of 525.0 to 580 koz.

Attributable lead production expected to be in the range of 56 to 62 kt.

Attributable zinc production expected to be in the range of 93 to 103 kt.

 

Expressed in silver equivalent ounces 1 , total production is expected to be
91-102 million ounces.

 

2026 and 2027 expected production is unchanged.

 

 

INTERIM RESULTS

 

Fresnillo will announce its 2025 Interim Results on 5 August 2025.

 

 

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

 

                                    2Q25     1Q25     % Change  2Q24     % Change  1H25       1H24       % Change
 Ore Processed (t)                  522,352  518,474  0.7       589,602  (11.4)    1,040,826  1,211,992  (14.1)

 Production
 Silver (koz)                       2,418    2,733    (11.5)    2,583    (6.4)     5,151      5,259      (2.1)
 Gold (oz)                          9,145    10,685   (14.4)    13,309   (31.3)    19,831     23,155     (14.4)
 Lead (t)                           4,766    5,698    (16.4)    6,433    (25.9)    10,464     12,625     (17.1)
 Zinc (t)                           11,118   11,096   0.2       11,260   (1.3)     22,213     22,928     (3.1)

 Ore Grades
 Silver (g/t)                       159      181      (12.2)    152      4.5       170        151        12.6
 Gold (g/t)                         0.74     0.86     (14.0)    0.95     (22.1)    0.80       0.80       0.0
 Lead (%)                           1.10     1.29     (14.7)    1.27     (13.4)    1.20       1.21       (0.8)
 Zinc (%)                           2.78     2.92     (4.8)     2.61     6.5       2.85       2.59       10.0

 Pyrite Concentrates Processed (t)  21,669   16,937   27.9      17,200   26.0      38,606     31,388     23.0

 Production
 Silver (koz)                       408      346      17.9      367      11.2      754        613        23.0
 Gold (oz)                          525      433      21.2      371      41.5      958        671        42.8

 Ore Grades
 Silver (g/t)                       800      869      (7.9)     1,007    (20.6)    830        952        (12.8)
 Gold (g/t)                         2.65     2.77     (4.2)     2.80     (5.4)     2.71       2.79       (2.9)

 

Quarterly silver production decreased 11.5% vs. 1Q25, mainly driven by the
lower ore grade from development ore and long hole stopes at the San Alberto
area (west), and higher than expected overall dilution driven by narrower than
expected veins. This was partly mitigated by higher volumes extracted from the
San Alberto area.

 

Quarterly and first half silver production decreased 6.4% and 2.1% vs 2Q24 and
IH24 respectively, driven by the decrease in volume of ore processed due to
the lower contribution from Candelaria, East and San Alberto, partly mitigated
by the higher ore grade.

 

Mine development rates increased to an average of 3,150m per month in 2Q25
(2,916m per month in 1Q25) due to higher equipment availability.

 

Quarterly gold production decreased 14.4% vs. 1Q25, driven by the lower ore
grade.

 

Quarterly gold production decreased 31.3% vs. 2Q24 as a result of the lower
ore grade and decreased volume of ore processed.

 

First half gold production decreased 14.4% vs IH24 mainly as a result of the
decrease in volume of ore processed.

 

The silver ore grade in 2025 is expected to be in the range of 160 to 180 g/t,
while the gold ore grade is estimated to be between 0.60 to 0.70 g/t.

 

SAUCITO MINE PRODUCTION

 

                                    2Q25     1Q25     % Change  2Q24     % Change  1H25       1H24       % Change
 Ore Processed (t)                  588,108  563,068  4.4       599,601  (1.9)     1,151,176  1,174,570  (2.0)

 Production
 Silver (koz)                       3,549    3,185    11.4      3,577    (0.8)     6,734      6,811      (1.1)
 Gold (oz)                          17,683   13,754   28.6      18,314   (3.4)     31,437     37,658     (16.5)
 Lead (t)                           7,247    6,368    13.8      5,658    28.1      13,615     10,566     28.9
 Zinc (t)                           11,962   9,449    26.6      8,909    34.3      21,411     15,603     37.2

 Ore Grades
 Silver (g/t)                       213      199      7.0       208      2.4       206        203        1.5
 Gold (g/t)                         1.22     1.01     20.8      1.23     (0.8)     1.12       1.29       (13.2)
 Lead (%)                           1.45     1.31     10.7      1.10     31.8      1.38       1.05       31.4
 Zinc (%)                           2.61     2.14     22.0      1.92     35.9      2.38       1.72       38.4

 Pyrite Concentrates Processed (t)  16,542   18,338   (9.8)     22,877   (27.7)    34,880     45,034     (22.5)

 Production
 Silver (koz)                       134      128      4.7       123      8.9       262        233        12.4
 Gold (oz)                          296      242      22.3      340      (12.9)    538        667        (19.3)

 Ore Grades
 Silver (g/t)                       350      299      17.1      253      38.3      323        250        29.2
 Gold (g/t)                         2.00     1.58     26.6      1.80     11.1      1.78       1.77       0.6

 

Quarterly silver production increased 11.4% vs. 1Q25 mainly due to the
increased volume of ore processed from the Natalias, Mezquite and Central
areas and the higher availability of equipment, and the higher ore grade from
additional cut and fill stopes with high silver content.

 

Quarterly and first half silver production slightly decreased 0.8% and 1.1%
vs. 2Q24 and 1H24 respectively, mainly due to the lower volume of ore
processed as a result of the reduced contribution from the West and Central
areas and, to a lesser extent, the lower recovery rate. This was partly
mitigated by the higher silver ore grade as explained above.

 

Quarterly by-product gold production increased 28.6% vs. 1Q25, mainly due to
higher ore grade and increased volume of ore processed.

 

Quarterly and first half by-product gold production decreased 3.4% and 16.5%
vs. 2Q24 and 1H24 respectively, mainly due to the lower ore grade and
decreased volume of ore processed.

 

Mine development rates increased to 2,486m per month in 2Q25 (1Q25: 2,392m per
month) primarily due to increased availability of contractors' bolting
equipment relative to 1Q25.

 

The silver ore grade for 2025 is expected to be in the range of 200-220 g/t,
while the gold grade is estimated to be between 0.90-1.10 g/t.

 

 

JUANICIPIO - ATTRIBUTABLE

 

                                     2Q25     1Q25     % Change  2Q24     % Change  1H25     1H24     % Change
 Ore Processed (t)                   191,808  188,730  1.6       188,492  1.8       380,538  370,875  2.6

 Production
 Silver (koz)                        2,356    2,503    (5.9)     2,791    (15.6)    4,859    5,280    (8.0)
 Gold (oz)                           5,583    5,711    (2.2)     5,185    7.7       11,294   10,744   5.1
 Lead (t)                            2,933    2,686    9.2       2,529    16.0      5,619    4,741    18.5
 Zinc (t)                            5,209    4,291    21.4      4,788    8.8       9,500    8,510    11.6

 Ore Grades
 Silver (g/t)                        417      430      (3.0)     498      (16.3)    423      488      (13.3)
 Gold (g/t)                          1.21     1.24     (2.4)     1.20     0.8       1.23     1.26     (2.4)
 Lead (%)                            1.71     1.61     6.2       1.56     9.6       1.66     1.46     13.7
 Zinc (%)                            3.34     2.90     15.2      2.99     11.7      3.12     2.74     13.9

 Pyrite Concentrates Processed* (t)  3,995    0        N/A       0        N/A       3,995    0        N/A

 Production
 Silver (koz)                        54       0        N/A       0        N/A       54       0        N/A
 Gold (oz)                           74       0        N/A       0        N/A       74       0        N/A

 Ore Grades
 Silver (g/t)                        598      0        N/A       0        N/A       598      0        N/A
 Gold (g/t)                          2.16     0.00     N/A       0.00     N/A       2.16     0.00     N/A

* During Q2, Juanicipio began selling its pyrite concentrate to the nearby
Saucito operation for processing at Saucito's pyrite plant. Production from
pyrite above includes further downstream processes and associated production
losses.

Attributable quarterly and first half silver production decreased against all
comparable periods mainly due to the lower ore grade in accordance with the
mine plan, partly offset by the higher volume of ore processed.

Attributable quarterly gold production decreased 2.2% vs. 1Q25 driven by the
lower ore grade and decreased recovery rate, partly mitigated by the higher
volume of ore processed.

Attributable quarterly gold production increased 7.7% vs 2Q24 due to the
higher ore grade, improved recovery rate, and higher volume of ore processed.

Attributable first half gold production increased 5.1% vs 1H24 due to the
improved recovery rate and higher volume of ore processed, partly offset by
the lower ore grade.

In 2Q25, production of pyrites concentrate at Juanicipio started, with
attributable production of 54,147 silver ounces and 73.5 gold ounces during
the period.

 

The silver ore grade in 2025 is expected to be in the range of 380-430 g/t,
while the gold grade is estimated to be between 1.2-1.4 g/t.

 

 

CIÉNEGA MINE PRODUCTION

 

                    2Q25     1Q25     % Change  2Q24     % Change  1H25     1H24     % Change
 Ore Processed (t)  252,952  229,647  10.1      257,861  (1.9)     482,599  519,542  (7.1)

 Production
 Gold (oz)          9,535    8,144    17.1      9,981    (4.5)     17,678   20,668   (14.5)
 Silver (koz)       764      889      (14.1)    1,379    (44.6)    1,653    2,581    (36.0)
 Lead (t)           207      277      (25.3)    982      (78.9)    484      1,634    (70.4)
 Zinc (t)           115      413      (72.2)    812      (85.8)    527      1,644    (67.9)

 Ore Grades
 Gold (g/t)         1.28     1.20     6.7       1.31     (2.3)     1.24     1.34     (7.5)
 Silver (g/t)       127      140      (9.3)     192      (33.9)    133      179      (25.7)
 Lead (%)           0.20     0.24     (16.7)    0.57     (64.9)    0.22     0.48     (54.2)
 Zinc (%)           0.24     0.36     (33.3)    0.58     (58.6)    0.30     0.59     (49.2)

Quarterly gold production increased 17.1% vs. 1Q25, mainly due to the higher
ore grade from a new area, Victoria complex, which has higher gold content but
lower silver ore grade, and the higher volume of ore processed due to
increased availability of bolting equipment.

Quarterly and first half gold production decreased 4.5% and 14.5% vs. 2Q24 and
1H24 respectively, mainly due to the lower volume of ore extracted from areas
such as Jessica Transversal and Vetas Angostas with higher ore grades, and the
depletion of Taspana.

Quarterly silver production decreased 14.1% vs. 1Q25 mainly due to the lower
ore grade and decreased recovery rate driven by a higher portion of oxides
processed at the flotation plant following the depletion of sulphides from the
Taspana area, partly offset by the higher volume of ore processed.

Quarterly and first half silver production decreased 44.6% and 36.0% vs. 1Q24
and 1H24, respectively, driven by the lower ore grade and decreased recovery
rate due to the previously mentioned factors, and lower volume of ore
processed.

While metallurgical testwork is ongoing to find alternatives to increase
recovery in oxides, positive exploration results are expected to provide
higher gold production than had been anticipated during 2H25, partly
offsetting lower silver production.

The gold and silver ore grades for 2025 are estimated to be in the ranges of
1.1-1.3 g/t and 130-150 g/t, respectively.

 

SAN JULIÁN MINE VEINS

 

                          2Q25     1Q25     % Change  2Q24     % Change  1H25     1H24     % Change
 Ore Processed Veins (t)  323,484  292,574  10.6      301,643  7.2       616,058  592,646  4.0

 Production Veins
 Gold (oz)                13,831   12,088   14.4      12,353   12.0      25,919   24,326   6.5
 Silver (koz)             2,239    1,979    13.1      2,022    10.7      4,218    4,061    3.9

 Ore Grades Veins
 Gold (g/t)               1.39     1.36     2.2       1.34     3.7       1.37     1.35     1.5
 Silver (g/t)             236      231      2.2       228      3.5       234      234      0.0

Quarterly gold and silver production increased 14.4% and 13.1% vs. 1Q25,
mainly due to the higher volume of ore processed following the electrical
fault that affected the ball mill and required an unplanned maintenance
stoppage in 1Q25. The higher ore grades from the San Antonio area also
benefited production.

Quarterly and first half gold and silver production increased vs. 2Q24 and
1H24, respectively, driven by the increased volume of ore processed due to the
ongoing optimisation of the maintenance programme, and the higher ore grades.

Silver and gold ore grades in 2025 are expected to be in the ranges of 210-230
g/t and 1.10-1.30 g/t, respectively.

 

HERRADURA TOTAL MINE PRODUCTION

 

                          2Q25        1Q25        % Change  2Q24        % Change  1H25        1H24        % Change
 Ore Processed (t)        5,028,868   5,096,357   (1.3)     5,756,109   (12.6)    10,125,225  10,451,639  (3.1)
 Total Volume Hauled (t)  23,963,919  24,540,480  (2.3)     27,093,586  (11.6)    48,504,399  49,234,362  (1.5)

 Production
 Gold (oz)                96,007      101,424     (5.3)     63,628      50.9      197,431     141,686     39.3
 Silver (koz)             131         125         4.8       100         31.0      255         219         16.4

 Ore Grades
 Gold (g/t)               0.65        0.76        (14.5)    0.59        10.2      0.71        0.63        12.7
 Silver (g/t)             1.29        1.16        11.2      1.06        21.7      1.22        1.18        3.4

 

Quarterly gold production decreased 5.3% vs. 1Q25 mainly due to lower ore
grade in accordance with the mine plan, and decreased volume of ore processed.

Quarterly gold and first half production increased vs. 2Q24 and 1H24 driven by
the optimisation of mine operation standards for higher selectivity, which led
to higher gold ore grade but lower volume of ore processed. In addition, gold
contents recovered from the oxidised high grade ore deposited at the leaching
pads in 4Q24 complemented production.

The average gold ore grade in 2025 is expected to be in the range of 0.50-0.70
g/t.

 

NOCHE BUENA

 

5,057 ounces of gold were recovered from the leaching pads at Noche Buena in
2Q25, a 39.5% increase when compared to 1Q25 and a 16.4% decrease when
compared with 2Q24. First half gold production totalled 8,680 ounces, a 14.9%
decrease when compared with 1H24. As previously announced, mining activities
concluded in May 2023, and the closure plan continues as expected.

 

SILVERSTREAM

Quarterly Silverstream production decreased 7.4% and 26.7% vs. 1Q25 and 2Q24
respectively, mainly driven by the decrease in volumes of ore processed and
lower ore grade.

First half silver production decreased 7.3% vs. 1H24 due to the lower ore
grade, partly mitigated by the higher volumes of ore processed.

As previously disclosed, Fresnillo and Peñoles remain in discussions over the
outlook for the Sabinas mine. A further announcement will be made in due
course.

 

 

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 four advanced exploration projects - Orisyvo, Rodeo,
Guanajuato and Tajitos 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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