REG - Fresnillo Plc - 3rd Quarter Results

FresnilloAnnouncement

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RNS Number : 3175E  Fresnillo PLC  22 October 2025

 

 
 
        Fresnillo plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

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

 

22 October 2025

 

 

 

THIRD QUARTER PRODUCTION REPORT

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2025

 

Octavio Alvídrez, Chief Executive Officer, said:

 

"Production performance is in line with our expectations, and we are on track
to meet our full year guidance, with gold trending towards the upper end of
the range. Silver production was lower as expected, mainly due to the
cessation of mining activities at San Julián DOB, with gold production up
year to date driven primarily by the continued strong performance at
Herradura. We remain focused on achieving our priorities in the last quarter
of the year. The safety of our people is key, while our continued focus on
running our operations as efficiently as possible will enable us to further
capitalise on the consistently strong precious metals prices."

 

 

 

HIGHLIGHTS

 

Silver

 

·    Quarterly attributable silver production of 11.7 moz (including
Silverstream) decreased 6.6% vs. 2Q25 mainly due to: i) the lower ore grade at
San Julián Veins in accordance with the mine plan; ii) a decrease in volume
of ore processed, lower ore grade and decreased recovery rate at Ciénega,
mainly driven by the higher portion of oxides; and iii) a lower volume of ore
processed at Saucito, which resulted from slower mining cycles due to the need
for additional ventilation in high temperature areas, and reduced availability
of in mine equipment.

 

·    Quarterly attributable silver production (including Silverstream)
down 19.1% vs. 3Q24, mainly due to: i) the cessation of mining activities at
San Julián DOB; ii) a lower ore grade, decrease in volume of ore processed,
and lower recovery rate at Ciénega and Saucito; and iii) a lower ore grade in
accordance with the mine plan at Juanicipio.

 

·    Year to date attributable silver production of 36.6 moz (including
Silverstream) decreased 14.2% vs. YTD24, mainly due to: i) the cessation of
mining activities at San Julián DOB; ii) the lower ore grade, decrease in
volume of ore processed, and lower recovery rate at Ciénega; and iii) lower
ore grade at Juanicipio.

 

Gold

 

·    Quarterly attributable gold production of 151.3 koz, decreased 4.1%
vs. 2Q25, primarily due to a lower ore grade and a decrease in the recovery
rate in accordance with the mine plan at Herradura; and the lower ore grade at
San Julián Veins. This was partly mitigated by the higher ore grade at
Ciénega, Saucito, and Juanicipio.

 

·    Quarterly attributable gold production decreased 3.5% vs. 3Q24 due to
the lower ore grade and a decrease in the volume of ore processed at Fresnillo
and Herradura, and a decrease in the volume of ore processed at Saucito. This
was partly mitigated by the higher ore grade and recovery rate at Ciénega.

 

·    Year to date attributable gold production of 465.1 koz, increased
8.8% vs. YTD24 primarily due to higher selectivity, which led to the higher
ore grade at Herradura; partly offset by the lower ore grade and a decrease in
volume of ore processed at Fresnillo and Saucito.

 

By-Products

 

·    Quarterly attributable by-product lead production increased by 1.4%
vs. 2Q25, mainly driven by the higher ore grade at Juanicipio.

 

·    Quarterly attributable by-product zinc production decreased 12.9% vs.
2Q25 due to the lower volume of ore processed and ore grade at Saucito, and a
lower ore grade and decrease in recovery rate at Fresnillo.

 

·    Quarterly and year to date attributable by-product lead and zinc
production decreased vs. 3Q24 and YTD24, mainly due to the lower ore grade and
volumes of ore processed at Fresnillo and the cessation of mining activities
at San Julián DOB. This was partly mitigated by higher ore grade at Saucito.
 

 

 

 Attributable Production  3Q25     2Q25     % Change  3Q24     % Change  YTD25    YTD24    % Change
 Silver (koz)             11,486   12,054   (4.7)     13,886   (17.3)    35,429   41,041   (13.7)
 Silverstream (koz)       195      452      (56.9)    552      (64.7)    1,134    1,566    (27.6)
 Total Silver (koz)       11,681   12,506   (6.6)     14,439   (19.1)    36,563   42,607   (14.2)
 Gold (oz)                151,256  157,735  (4.1)     156,759  (3.5)     465,096  427,631  8.8
 Lead (t)                 15,359   15,152   1.4       17,707   (13.3)    45,541   49,536   (8.1)
 Zinc (t)                 24,735   28,403   (12.9)    32,297   (23.4)    78,387   87,695   (10.6)

 

SAFETY PERFORMANCE

 

The safety of our people is our absolute priority. We remain committed to
instilling a true culture of safety across our business and to our Zero
Fatalities target. We continue to work on preventive measures, focusing on
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 the previous guidance announced in the
Interim Results:

Attributable silver production expected to be in the range of 47.5 to 54.5 moz
(including Silverstream).

Attributable gold production expected to be in the range of 550 to 590 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  (#_ftn1) , total production is
expected to be 91-102 million ounces.

 

2026 and 2027 expected production is unchanged.

 

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

 

                                    3Q25     2Q25     % Change  3Q24     % Change  YTD25      YTD24      % Change
 Ore Processed (t)                  533,515  522,352  2.1       578,523  (7.8)     1,574,340  1,790,515  (12.1)

 Production
 Silver (koz)                       2,416    2,418    (0.1)     2,590    (6.7)     7,567      7,849      (3.6)
 Gold (oz)                          9,597    9,145    4.9       14,396   (33.3)    29,427     37,551     (21.6)
 Lead (t)                           5,085    4,766    6.7       7,526    (32.4)    15,549     20,150     (22.8)
 Zinc (t)                           9,734    11,118   (12.4)    14,365   (32.2)    31,947     37,293     (14.3)

 Ore Grades
 Silver (g/t)                       156      159      (1.9)     155      0.6       165        152        8.6
 Gold (g/t)                         0.77     0.74     4.1       1.04     (26.0)    0.79       0.88       (10.2)
 Lead (%)                           1.12     1.10     1.8       1.50     (25.3)    1.17       1.31       (10.7)
 Zinc (%)                           2.46     2.78     (11.5)    3.32     (25.9)    2.72       2.83       (3.9)

 Pyrite Concentrates Processed (t)  23,279   21,669   7.4       15,524   50.0      61,885     46,912     31.9

 Production
 Silver (koz)                       399      408      (2.2)     372      7.3       1,153      985        17.1
 Gold (oz)                          592      525      12.8      392      51.0      1,549      1,063      45.7

 Ore Grades
 Silver (g/t)                       721      800      (9.9)     1,019    (29.2)    789        974        (19.0)
 Gold (g/t)                         2.25     2.65     (15.1)    2.72     (17.3)    2.53       2.77       (8.7)

 

Quarterly silver production remained flat vs 2Q25, and decreased 6.7% vs 3Q24,
driven by the decrease in volume of ore processed due to the lower
contribution from San Carlos, Candelaria, Santa Elena, East, and San Alberto.

 

Year to date silver production decreased 3.6% vs YTD24 due to the lower volume
of ore processed, partly mitigated by the higher ore grade.

 

Mine development rates increased to an average of 3,449m per month in 3Q25
(3,150m per month in 2Q25) due to higher equipment availability and increased
efficiency through a better distribution of contractors by area of the mine.

 

Quarterly gold production increased 4.9% vs. 2Q25, driven by the higher ore
grade and increased volume of ore processed.

 

Quarterly and year to date gold production decreased 33.3% and 21.6% vs. 3Q24
and YTD24 due to the lower ore grade and decreased 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

 

                                    3Q25     2Q25     % Change  3Q24     % Change  YTD25      YTD24      % Change
 Ore Processed (t)                  559,767  588,108  (4.8)     590,362  (5.2)     1,710,943  1,764,932  (3.1)

 Production
 Silver (koz)                       3,387    3,549    (4.6)     3,697    (8.4)     10,121     10,507     (3.7)
 Gold (oz)                          18,789   17,683   6.3       19,856   (5.4)     50,226     57,513     (12.7)
 Lead (t)                           6,487    7,247    (10.5)    5,738    13.1      20,102     16,304     23.3
 Zinc (t)                           9,649    11,962   (19.3)    9,280    4.0       31,060     24,884     24.8

 Ore Grades
 Silver (g/t)                       213      213      0.0       219      (2.7)     208        208        0.0
 Gold (g/t)                         1.35     1.22     10.7      1.35     0.0       1.19       1.31       (9.2)
 Lead (%)                           1.35     1.45     (6.9)     1.13     19.5      1.37       1.08       26.9
 Zinc (%)                           2.22     2.61     (14.9)    1.99     11.6      2.33       1.81       28.7

 Pyrite Concentrates Processed (t)  17,479   16,542   5.7       24,321   (28.1)    52,359     69,354     (24.5)

 Production
 Silver (koz)                       128      134      (4.5)     155      (17.4)    390        388        0.5
 Gold (oz)                          444      296      50.0      398      11.6      982        1,065      (7.8)

 Ore Grades
 Silver (g/t)                       314      350      (10.3)    273      15.0      320        258        24.0
 Gold (g/t)                         2.25     2.00     12.5      1.76     27.8      1.94       1.77       9.6

 

Silver production decreased against all comparative periods mainly driven by
the lower volume of ore processed, which resulted from slower mining cycles
due to the need for additional ventilation in high temperature areas, and
reduced availability of in mine equipment.

 

Quarterly by-product gold production increased 6.3% vs. 2Q25, mainly due to
higher ore grade.

 

Quarterly and year to date by-product gold production decreased vs. 3Q24,
mainly due to the decreased volume of ore processed as explained above.

 

Year to date by product gold production decreased vs YTD24, driven by the
lower ore grade and the decreased volume of ore processed.

 

Mine development rates increased to 2,520m per month in 3Q25 (2Q25: 2,486m per
month) primarily due to increased availability of contractors' bolting
equipment relative to the previous quarter.

 

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

 

                                     3Q25     2Q25     % Change  3Q24     % Change  YTD25    YTD24    % Change
 Ore Processed (t)                   194,241  191,808  1.3       186,082  4.4       574,779  556,957  3.2

 Production
 Silver (koz)                        2,426    2,356    3.0       2,736    (11.3)    7,285    8,016    (9.1)
 Gold (oz)                           6,599    5,583    18.2      6,049    9.1       17,893   16,793   6.6
 Lead (t)                            3,534    2,933    20.5      2,707    30.6      9,153    7,447    22.9
 Zinc (t)                            5,352    5,209    2.7       4,257    25.7      14,852   12,767   16.3

 Ore Grades
 Silver (g/t)                        426      417      2.2       481      (11.4)    424      485      (12.6)
 Gold (g/t)                          1.37     1.21     13.2      1.32     3.8       1.27     1.28     (0.8)
 Lead (%)                            2.03     1.71     18.7      1.58     28.5      1.78     1.50     18.7
 Zinc (%)                            3.42     3.34     2.4       2.83     20.8      3.22     2.77     16.2

 Pyrite Concentrates Processed* (t)  6,281    3,995    57.2      0        N/A       10,276   0        N/A

 Production
 Silver (koz)                        79       54       46.3      0        N/A       133      0        N/A
 Gold (oz)                           126      74       70.3      0        N/A       199      0        N/A

 Ore Grades
 Silver (g/t)                        556      598      (7.0)     0        N/A       572      0        N/A
 Gold (g/t)                          1.89     2.16     (12.5)    0        N/A       2.00     0        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 silver production increased 3.0% vs 2Q25, mainly due to
the higher silver ore grade and increased volume of ore processed.

Attributable quarterly and year to date silver production decreased vs 3Q24
and YTD24, mainly due to the lower ore grade in accordance with the mine plan,
partly mitigated by the higher volume of ore processed.

Attributable quarterly gold production increased vs 2Q25 and 3Q24 due to the
higher ore grade, improved recovery rate, and increased volume of ore
processed. Attributable year to date gold production was benefited by the
higher recovery rate and increase in volume of ore processed.

 

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

 

                    3Q25     2Q25     % Change  3Q24     % Change  YTD25    YTD24    % Change
 Ore Processed (t)  210,162  252,952  (16.9)    272,133  (22.8)    692,761  791,676  (12.5)

 Production
 Gold (oz)          11,170   9,535    17.1      8,887    25.7      28,848   29,556   (2.4)
 Silver (koz)       536      764      (29.8)    1,218    (56.0)    2,189    3,799    (42.4)
 Lead (t)           253      207      22.2      669      (62.2)    737      2,303    (68.0)
 Zinc (t)           0        115      (100.0)   632      (100.0)   527      2,275    (76.8)

 Ore Grades
 Gold (g/t)         1.76     1.28     37.5      1.14     54.4      1.40     1.27     10.2
 Silver (g/t)       111      127      (12.6)    163      (31.9)    126      174      (27.6)
 Lead (%)           0.27     0.20     35.0      0.39     (30.8)    0.23     0.45     (48.9)
 Zinc (%)           0.33     0.24     37.5      0.44     (25.0)    0.31     0.54     (42.6)

Quarterly and year to date gold production increased vs. all comparative
periods, mainly due to the contribution from the Victoria complex with higher
ore grade and, to a lesser extent, the higher concentration of cyanide to
improve recovery rates in the leaching process. This was partly offset by the
lower volume of ore extracted from the Jessica Transversal and Vetas Angostas
areas and the depletion of Taspana.

Quarterly and year to date silver production decreased vs all comparative
periods, driven by the lower ore grade, and decreased recovery rate due to the
higher portion of oxides processed at the flotation plant following the
depletion of sulphides from Taspana, and the lower volume of ore processed as
explained above.

An economic analysis of the milling and flotation process was conducted in
1H25 as part of the initiatives to optimise operations and increase
profitability. The analysis concluded that the contribution from the zinc
concentrate to the mine's profitability was marginal. As a result, it was
decided that production of zinc concentrate would cease from 3Q25 with no
further contribution expected thereafter.

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

 

                          3Q25     2Q25     % Change  3Q24     % Change  YTD25    YTD24    % Change
 Ore Processed Veins (t)  326,037  323,484  0.8       314,786  3.6       942,095  907,432  3.8

 Production Veins
 Gold (oz)                11,622   13,831   (16.0)    11,914   (2.5)     37,540   36,240   3.6
 Silver (koz)             1,974    2,239    (11.8)    2,095    (5.8)     6,193    6,156    0.6

 Ore Grades Veins
 Gold (g/t)               1.16     1.39     (16.5)    1.24     (6.5)     1.30     1.31     (0.8)
 Silver (g/t)             207      236      (12.3)    226      (8.4)     225      231      (2.6)

Quarterly gold and silver production decreased vs 2Q25 and 3Q24, mainly due to
lower ore grades in accordance with the mine plan.

Year to date gold production increased vs YTD24 driven by the increased volume
of ore processed due to the ongoing optimisation of the maintenance programme.
 

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

 

                          3Q25        2Q25        % Change  3Q24        % Change  YTD25       YTD24       % Change
 Ore Processed (t)        5,155,222   5,028,868   2.5       6,257,754   (17.6)    15,280,447  16,709,393  (8.6)
 Total Volume Hauled (t)  23,306,056  24,059,274  (3.1)     26,148,467  (10.9)    71,957,824  75,382,829  (4.5)

 Production
 Gold (oz)                87,389      96,007      (9.0)     89,030      (1.8)     284,820     230,716     23.5
 Silver (koz)             140         131         6.9       119         17.6      395         338         16.9

 Ore Grades
 Gold (g/t)               0.69        0.65        6.2       0.70        (1.4)     0.70        0.65        7.7
 Silver (g/t)             1.37        1.29        6.2       1.10        24.5      1.27        1.15        10.4

 

Quarterly gold production decreased vs 2Q25 due to the additional gold
contents recovered in 1H25 from the oxidised high grade ore deposited on the
leaching pads at the end of 2024.

Quarterly gold production decreased slightly vs 3Q24, driven by the lower
volumes of ore processed as a result of the strategy to be more selective,
mitigated by the additional gold content recovered from the leaching pads.

Year to date gold production increased 23.5% vs YTD24 driven by the
optimisation of mine operation standards for higher selectivity, which led to
higher gold ore grade but lower volumes of ore processed.

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

 

NOCHE BUENA

 

4,929 ounces of gold were recovered from the leaching pads at Noche Buena in
3Q25, a 2.5% decrease vs 2Q25 and a 7.7% decrease compared to 3Q24. Year to
date gold production totalled 13,610 ounces, a 12.4% decrease vs YTD24. As
previously announced, mining activities concluded in May 2023, and the closure
plan continues as expected.

 

 

 

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  (#_ftnref1) 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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