Fresnillo plc

21 Upper Brook Street

London W1K 7PY

United Kingdom

www.fresnilloplc.com

 

4 August 2026

Fresnillo plc interim results

for the six months to 30 June 2026

 

Octavio Alvídrez, Chief Executive Officer, commented:

 

"Fresnillo delivered an exceptional financial performance in the first half of 2026. Through a combination of solid operational execution and cost discipline, we continued to capitalise on the historic strength of precious metals prices, with revenues up 74.7% to US$3.4 billion, driving Gross Profit up 130.7% to US$2.4 billion and strong operating cash flow. Our financial position enabled us to fund the strategic acquisition of Probe Gold, ongoing capex requirements, investment in exploration, and to declare an increased interim dividend of 43.4 cents per share for the period, in accordance with our dividend policy, while maintaining a robust balance sheet.

 

"Operationally, gold and silver production was in line with our expectations and plans across our mines are progressing well. We saw year-on-year changes from lower grades, a minor delay in the commissioning of the leaching pad XV at Herradura, and weather-related disruptions.

 

"We remain focused on managing costs within our control by driving efficiencies across our supply chain and advancing key infrastructure projects, including the interconnection of the Jarillas shaft at Saucito.

 

"Our full-year production guidance remains unchanged, and our high-margin portfolio puts us in a strong position to capitalise on ongoing market tailwinds. The safety and well-being of our people and host communities remain our core priority as we deliver on our strategy for the remainder of 2026."

 

 

 

 

First half highlights

 

Financial highlights (1H26/1H25 comparisons)

·    Adjusted Revenues[1] of US$3,413.2m, up 72.1%; mainly due to higher silver and gold prices, partly offset by the anticipated lower volumes of gold and silver sold.

·    Revenues of US$3,382.6m, up 74.7%; driven by the increased adjusted revenues and lower treatment and refining charges.

·    Adjusted production costs[2] of US$811.9m, up 20.5% over 1H25, primarily due to the 12.5% revaluation of the Mexican peso vs. the US dollar, cost inflation, higher maintenance costs at Saucito, higher stripping and longer haulage distances at Herradura, together with higher contractor costs associated with the temporary hauling of material while the two sections of the Jarillas shaft at Saucito are being interconnected.

·    Cost of sales of US$1,023.2m, up 12.0% mainly as a result of the higher adjusted production costs, mitigated by lower depreciation.

·    Gross profit and EBITDA[3] of US$2,359.4m and US$2,349.7m, up 130.7% and 113.2%, respectively.

·    Exploration expenses of US$109.3m, up 42.5% but in line with the increased guidance to intensify exploration activities at several operations and advanced exploration projects.

·    Profit from continuing operations before net finance costs and income tax of US$2,143.8m, up 149.0%.

·    Profit for the period before income tax of US$2,163.1m, up 227.6%.

·    Income tax expense of US$516.5m and mining rights of US$183.2m, up 322.6% and 159.6%, respectively.

·    Profit for the period of US$1,463.4m, up 213.0% from US$467.6m.

·    Basic and diluted EPS from continuing operations of US$175.1 cents per share, up 227.9% from US$53.4 cents per share.

·    Cash generated from operations, before changes in working capital, of US$2,364.7m, up 114.3%.

·    Strong balance sheet with cash and other liquid funds as of 30 June 2026 of US$2,503.1m (31 December 2025: $2,756.5m).

·    Interim dividend of 43.4 US cents per share, totalling US$319.8m (1H25: US$153.3m).

 

Operational highlights (1H26/1H25 comparisons)

 

As disclosed in the 2Q26 production report on 22 July 2026:

 

·    First half attributable silver production of 22.0 moz decreased 11.4% vs. 1H25, mainly due to the end of the contribution from the Silverstream contract, the lower ore grade and decrease in volume of ore processed at Saucito, the lower ore grade at Juanicipio, Fresnillo and San Julián Veins, and the lower ore grade and recovery rate, and decreased volume of ore processed at Ciénega.

·    First half attributable gold production of 290.9 koz, decreased 7.3% vs. 1H25, mainly due to the lower ore grade, decreased volume of ore processed and lower recovery rate at Herradura.

·    Ongoing focus on safety, cost control, and productivity.

 

Highlights for 1H26

 

US$ million unless stated	H1 26	H1 25	% change
Silver production (koz) *	22,049	24,882	(11.4)
Gold production (oz)	290,885	313,840	(7.3)
Total revenues	3,382.6	1,936.2	74.7
Adjusted revenues1	3,413.2	1,982.9	72.1
Cost of Sales	1,023.2	913.2	12.0
Gross profit	2,359.4	1,022.9	130.7
Adjusted production costs2	811.9	673.5	20.5
EBITDA3	2,349.7	1,102.1	113.2
Profit for the period	1,463.4	467.6	213.0
Cash generated by operations before changes in working capital	2,364.7	1,103.6	114.3
Basic and Diluted EPS (US$)4	1.751	0.534	227.9
Basic and Diluted EPS, excluding post-tax Silverstream revaluation effects (US$)	1.751	0.715	144.9
Dividend per ordinary share (US$)	0.434	0.208	108.7

* Silver production includes volumes realised under the Silverstream contract

¹ Adjusted revenues are the revenues shown in the income statement adjusted to add back treatment and refining charges. The Company considers this is a useful additional measure to help understand underlying factors driving revenue in terms of volumes sold and realised prices

² Adjusted production costs are calculated as cost of sales less depreciation, profit sharing, hedging and change in inventories. The Company considers this a useful additional measure to help understand underlying factors driving production costs in terms of the different stages involved in the mining and plant processes, including efficiencies and inefficiencies as the case may be and other factors outside the Company's control such as cost inflation or changes in accounting criteria.

³ Earnings before interest, taxes, depreciation and amortisation (EBITDA) is calculated as profit for the year from continuing operations before income tax, less finance income, plus finance costs, less foreign exchange gain/(loss), less revaluation effects of the Silverstream contract, less other operating income plus other operating expenses and depreciation.

⁴ The weighted average number of shares for H1 2026 and H1 2025 was 736.9m. See Note 8 in the Interim Consolidated Financial Statements.

 

 

 

Commentary on the Group's results

Operating results

 

First half attributable silver production of 22.0 moz (including Silverstream) decreased 11.4% vs. 1H25, mainly due to the end of the contribution from the Silverstream, the lower ore grade and decrease in volume of ore processed at Saucito, the lower ore grade at Juanicipio, Fresnillo and San Julián Veins, and the lower ore grade and recovery rate, and decreased volume of ore processed at Ciénega. 

First half attributable gold production of 290.9 koz, decreased 7.3% vs. 1H25 due to the lower ore grade at Herradura resulting from reduced volumes of high-grade ore processed at the Dynamic Leaching Plant I, due to a fissure in the ball mill. To a lesser extent, the decrease in volumes of ore processed at Herradura driven by a minor delay in the commissioning of the leaching pad XV, and heavy rain and fog at the beginning of the year also contributed to the lower gold production.

First half attributable by-product lead production increased 8.8% vs. 1H25 mainly due to the higher ore grade at Fresnillo and Juanicipio, partly offset by the lower ore grade at Saucito.

First half attributable by-product zinc production remained broadly stable when compared to 1H25.

 

Financial results

Total revenue increased by 74.7% to US$3,382.6 million in 1H26, mainly due to higher silver and gold prices, partly offset by the anticipated decrease in gold and silver ounces sold.

 

The average realised silver price increased 134.4% from US$33.7 per ounce in 1H25 to US$78.9 per ounce in 1H26, while the average realised gold price rose 47.3%, from US$3,167.6 per ounce in 1H25 to US$4,666.8 per ounce in 1H26. The average realised lead by-product price decreased to US$86.5 cents per pound, down 2.3% vs 1H26, while the average realised zinc by-product price increased by 27.0% to US$155.3 cents per pound.

 

Adjusted production costs[4] increased by 20.5% to US$811.9 million in 1H26. The US$138.4 million decrease resulted primarily from the 12.5% revaluation of the Mexican peso vs. the US dollar, cost inflation, higher maintenance costs at Saucito, higher stripping and longer haulage distances at Herradura, together with higher contractor costs associated with the temporary hauling of material while the two sections of the Jarillas shaft at Saucito are being interconnected.

Depreciation decreased 11.0%, primarily due to lower production at Herradura, and the lower depletion factor at Fresnillo and Ciénega driven by the increase in reserves. 

The factors mentioned above resulted in a 12.0% increase in cost of sales compared with 1H25.

The increase in revenues, together with the increase in cost of sales, resulted in a 130.7% increase in gross profit to US$2,359.4 million in 1H26.

Driven by an increase in gross profit, EBITDA increased by 113.2%, with EBITDA margin rising from 56.9% in 1H25 to 69.5% in 1H26. Similarly, profit from continuing operations before net finance costs and income tax increased from US$860.8 million in 1H25 to US$2,143.8 million in 1H26.

Profit from continuing operations before income tax increased 227.6% from US$660.3 million in 1H25 to US$2,163.1 million in 1H26.

Income tax expense for the period was US$516.5m, up 322.6% from US$122.2 million in 1H25. The effective tax rate, excluding the special mining rights, was 23.9% (1H25: 18.5%), which was below the 30% statutory tax rate. This variance resulted mainly from the special mining rights deductible for corporate income tax; the revaluation of the Mexican peso/US dollar spot exchange rate on the tax value of assets and liabilities; the benefit from the lower border tax which applied to the Herradura and Noche Buena mines; and the effect of the inflation rate (Mexican Consumer Price Index) that impacted the inflationary uplift of the tax base for assets and liabilities.

Profit for the period increased from US$467.6 million in 1H25 to US$1,463.4 million in 1H26, a 213.0% increase half-on-half as a result of the factors described above. Profit due to non-controlling interests increased 135.0% to US$173.4 million, reflecting the profit generated at Juanicipio, where Pan American Silver owns 44% of the outstanding shares. Accordingly, the profit attributable to equity shareholders of the Group was US$1,290.0 million, a 227.6% increase half-on-half.

Cash generated by operations before changes in working capital increased by 114.3% to US$2,364.7 million, mainly as a result of the higher profit from continuing operations generated in the year.

Capital expenditure in 1H26 totalled US$236.2 million, a 49.6% increase over 1H25. Investments during the period included mine development and stripping, purchase of in-mine equipment, construction of a leaching pad at Herradura, the deepening of the Jarillas shaft at Saucito, and investments in tailings dams.

Other uses of funds during the period were dividends paid of US$797.4 million (US$501.0 million in 1H25), a record high in the Group's history, income tax, special mining rights and profit sharing paid of US$890.0 million (US$255.4 million in 1H25), the acquisition of Probe Gold of US$547.8 million[5], and dividends paid to non-controlling interests in subsidiaries of US$191.7 million (US$59.4 1H25).

Fresnillo plc continued to maintain a solid financial position during the period with cash, cash equivalents and short-term investments of US$2,503.1 million as of 30 June 2026, decreasing 9.2% versus 31 December 2025 and increasing 37.3% versus 30 June 2025.

 

 

Interim Dividend

 

The Board of Directors has declared an interim dividend of 43.4 US cents per Ordinary Share totalling US$319.8 million, which will be paid on 18 September 2026 to shareholders on the register on 14 August 2026. The dividend will be paid in UK pounds sterling unless shareholders elect to be paid in US dollars. This interim dividend is higher than the previous period due to the increase in profit in 1H26, and remains in line with the Group's dividend policy. This decision was made after a comprehensive review of the Group's financial situation, ensuring that the Group is well placed to meet its current and future financial requirements, including its development and exploration projects.

 

As previously disclosed, the corporate income tax reform introduced in Mexico in 2014 created a withholding tax obligation of 10% (including to foreign nationals). The 2026 interim dividend will be subject to this withholding obligation.

 

5% share purchase in Sinda

As reported on 22 June 2026, Fresnillo entered into an agreement to acquire shares of common stock (the "Common Shares") of Sinda Ltd ("Sinda") pursuant to a private placement concurrent to Sinda's initial public offering and NYSE listing in the United States (the "Concurrent Placement"). The closing of the Concurrent Placement occurred on July 27, 2026, with Fresnillo purchasing 7,939,544 Common Shares of Sinda (NYSE: SIND) for gross proceeds of approximately US$95.3 million (US$12.0 per share). This investment enhances Fresnillo's exposure to attractive geological silver districts, complementary to its organic portfolio. This transaction was not recognised in the Group's interim financial statements since the closing occurred after 30 June 2026.

 

Outlook

 

Our 2026 outlook remains in line with previous guidance:

 

Attributable silver production expected to be in the range of 42.0 to 46.5 moz.

 

Attributable gold production expected to be in the range of 500.0 to 550 koz.

 

Attributable lead production expected to be in the range of 54 to 59 kt.

 

Attributable zinc production expected to be in the range of 85 to 95 kt.

 

Expressed in silver equivalent ounces, total production is expected to be 82 -91 million ounces.

 

Expected production for 2027 and 2028 remains unchanged. However we expect a slightly higher production of gold from the Herradura district and Fresnillo, and slightly lower production of silver from Saucito. A more detailed update regarding individual metal production expectations for 2027 and 2028 is expected to be issued in the Q4 production report.

 

Exploration expenses for 2026 are expected to be c. US$260 million, and risk capital invested in exploration anticipated to be approximately c. US$308 million.

Capex for 2026 has been revised to a range of US$500-550 million, reflecting the rationalisation of capex across mining operations.

 

 

Analyst Presentation

Fresnillo plc will be hosting a webcast presentation for analysts and investors today at 9:00am (GMT). A link to the webcast will be made available on Fresnillo's homepage: www.fresnilloplc.com, or can be accessed directly here:

https://sparklive.lseg.com/Fresnillo/events/1fc8d84b-87f4-4e9a-a2c0-13f763a90f68/fresnillo-1h26-interim-results

For those unable to access the webcast, a conference line will also be provided, please pre-register here:

https://registrations.events/direct/LON840923

 

For further information, please visit our website: www.fresnilloplc.com or contact:

 

Fresnillo plc
London Office Gabriela Mayor, Head of Investor Relations Mark Mochalski	Tel: +44(0)20 7339 2470
Mexico City Office Ana Belém Zárate	Tel: +52 55 52 79 3206
Sodali Peter Ogden	Tel: +44(0)20 7250 1446

 

 

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-Dipolos¹, Noche Buena² and San Julián Veins and five advanced exploration projects - Orisyvo, Rodeo, Guanajuato, Novador 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.

² Mineral extraction concluded in May 2023, however leaching of gold content inventories at the leaching pads continues.

 

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.

 

 

H1 2026 Operational Review

 

Production

Production	H1 2026	H1 2025	%  change
Silver (koz)	22,049	23,943	(7.9)
Silverstream prod'n (koz)	0	940	(100.0)
Total Silver prod'n (koz)	22,049	24,882	(11.4)
Gold  (oz)	290,885	313,840	(7.3)
Lead  (t)	32,828	30,182	8.8
Zinc  (t)	53,798	53,651	0.3

 

First half attributable silver production of 22.0 moz (including Silverstream) decreased 11.4% vs. 1H25, mainly due to the end of the contribution from the Silverstream, the lower ore grade and decrease in volume of ore processed at Saucito, the lower ore grade at Juanicipio, Fresnillo and San Julián Veins, and the lower ore grade and recovery rate, and decreased volume of ore processed at Ciénega. 

First half attributable gold production of 290.9 koz, decreased 7.3% vs. 1H25 due to the lower ore grade at Herradura resulting from reduced volumes of high-grade ore processed at the Dynamic Leaching Plant I, due to a fissure in the ball mill. To a lesser extent, the decrease in volumes of ore processed at Herradura driven by a minor delay in the commissioning of the leaching pad XV, and heavy rain and fog at the beginning of the year also contributed to the lower gold production.

First half attributable by-product lead production increased 8.8% vs. 1H25 mainly due to the higher ore grade at Fresnillo and Juanicipio, partly offset by the lower ore grade at Saucito.

First half attributable by-product zinc production remained broadly stable when compared to 1H25.

 

Fresnillo mine production

 

	H1 2026	H1 2025	%  change
Ore Processed (t)	1,038,608	1,040,826	(0.2)
Production
Silver (koz)	4,854	5,151	(5.8)
Gold  (oz)	29,274	19,831	47.6
Lead (t)	13,113	10,464	25.3
Zinc (t)	25,170	22,213	13.3
Ore Grades
Silver (g/t)	162	170	(4.7)
Gold (g/t)	1.14	0.80	42.5
Lead (%)	1.49	1.20	24.2
Zinc (%)	3.30	2.85	15.8
Pyrite Concentrates Processed (t)	42,527	38,606	10.2
Production
Silver (koz)	782	754	3.7
Gold (oz)	1,057	958	10.3

 

First half silver production decreased 5.8% vs IH25, primarily driven by the lower ore grade due to increased dilution in narrower veins, as well as poor ground stability in long-hole stopes and a structural fault at San Alberto, which delayed access to the area. Additional anchoring and shotcreting activities are being implemented to strengthen ground support.

 

Mine development rates increased 13.3% half on half to an average of 3,435m per month in 1H25 (1H25: 3,033m per month), primarily due to higher equipment availability.

 

First half by product gold production increased 47.6% vs IH25, mainly due to the higher ore grade.

 

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 0.80 to 1.0 g/t.

 

 

Saucito mine production

 

	H1 2026	H1 2025	% change
Ore Processed (t)	1,128,571	1,151,176	(2.0)
Production
Silver (koz)	6,228	6,734	(7.5)
Gold  (oz)	29,948	31,437	(4.7)
Lead (t)	11,361	13,615	(16.6)
Zinc (t)	16,309	21,411	(23.8)
Ore Grades
Silver (g/t)	198	206	(3.9)
Gold (g/t)	1.08	1.12	(3.6)
Lead (%)	1.18	1.38	(14.5)
Zinc (%)	1.88	2.38	(21.0)
Pyrite Concentrates Processed (t)	38,627	34,880	10.7
Production
Silver (koz)	226	262	(13.7)
Gold (oz)	674	538	25.3

 

 

First half silver production decreased 7.5% vs. 1H25, mainly due to lower ore grade. In addition, the lower volume of ore processed from the Natalias, Mezquite and Central areas, and the temporary stoppage of the Jarillas shaft in mid-March to complete the interconnection of its two sections, also contributed to the lower silver production.

 

First half by-product gold production decreased 4.7% vs. 1H25, due to the lower ore grade and decreased volume of ore processed.

 

Mine development rates increased 2.7% half on half to an average of 2,504m per month in 1H26 (1H25: 2,439m per month), primarily due to increased availability of contractors' equipment, relative to 1H25. 

 

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

 

	H1 2026	H1 2025	% change
Ore Processed (t)	381,798	380,538	0.3
Production
Silver (koz)	4,420	4,859	(9.0)
Gold  (oz)	13,454	11,294	19.1
Lead (t)	7,923	5,619	41.0
Zinc (t)	12,318	9,500	29.7
Ore Grades
Silver (g/t)	390	423	(7.8)
Gold (g/t)	1.41	1.23	14.6
Lead (%)	2.28	1.66	37.3
Zinc (%)	4.04	3.12	29.5
Pyrite Concentrates Processed (t)	1,358	3,995	(66.0)
Production
Silver (koz)	20	54	(63.0)
Gold (oz)	24	74	(67.6)

 

Attributable first half attributable silver production decreased 9.0% vs. 1H25, mainly due to the expected lower ore grade.

Attributable first half gold production increased 19.1% vs 1H25, mainly due to the higher ore grade.

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

 

	H1 2026	H1 2025	% change
Ore Processed (t)	467,343	482,599	(3.2)
Production
Gold  (oz)	20,379	17,678	15.3
Silver (koz)	1,218	1,653	(26.3)
Lead (t)	431	484	(11.0)
Zinc (t)	0	527	(100.0)
Ore Grades
Gold (g/t)	1.45	1.24	16.9
Silver (g/t)	117	133	(12.0)
Lead (%)	0.26	0.22	18.2
Zinc (%)	0.30	0.30	0.0

 

First half gold production increased 15.3% vs. 1H25, due to the higher ore grade at Victoria and Virginia stopes, partly offset by the lower volume of ore processed due to reduced equipment availability.

First half silver production decreased 26.3% vs. 1H25 primarily driven by decreased recovery rate due to the higher portion of oxides processed at the flotation plant following the depletion of sulphides from Taspana, and lower ore grade. The lower volume of ore processed also impacted first half silver production vs 1H25.

The gold and silver ore grades for 2026 are estimated to be in the ranges of 1.5-1.7 g/t and 110-130 g/t, respectively.

 

San Julián Veins production

 

	H1 2026	H1 2025	% change
Ore Processed Veins (t)	638,975	616,058	3.7
Production Veins
Gold (oz)	22,195	25,919	(14.4)
Silver (koz)	3,973	4,218	(5.8)
Ore Grades Veins
Gold (g/t)	1.13	1.37	(17.5)
Silver (g/t)	215	234	(8.1)

 

First half gold and silver production decreased vs. 1H25, primarily driven by the lower ore grade and differences with the geological model, mainly at the San Antonio Vein, and increased dilution at medium width veins. This was mitigated by the higher volume of ore processed compared with 1H25 due to improved operational continuity in 1H26, whereas an electrical fault in 1H25 affected the ball mill and required an unplanned maintenance stoppage.

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 mine production

 

	H1 2026	H1 2025	% change
Ore Processed (t)	9,858,090	10,125,225	(2.6)
Total Volume Hauled (t)	45,814,614	48,504,399	(5.5)
Production
Gold (oz)	167,559	197,431	(15.1)
Silver (koz)	326	255	27.8
Ore Grades
Gold (g/t)	0.64	0.71	(9.9)
Silver (g/t)	1.47	1.22	20.5

 

First half gold production decreased 15.1% vs. 1H25 due to lower ore grade resulting from reduced volumes of high-grade ore processed at the Dynamic Leaching Plant 1, following a fissure in the ball mill that led to more frequent temporary stoppages and extended maintenance works. In addition, the decrease in volumes of ore processed, driven by a minor delay in the commissioning of the leaching pad XV, phase II, and heavy rain and fog at the beginning of the year, also impacted gold production.

The Carbon-in-Column facility was commissioned in 1Q26, and achieved full operational capacity in 2Q26, thus contributing to the increase in production quarter on quarter. 

In addition, the engineering for the sulphides crushing circuit and the ADR plants continued during the period.

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

 

Noche Buena mine production

First half gold production totalled 6,321 ounces, a 27.2% decrease when compared with 1H25. As previously announced, a more detailed analysis and preparatory activities were undertaken in 2Q26 to resume operations at Noche Buena in 2027. This included recruitment of personnel, rehabilitation of facilities, and advancing engineering studies. 

 

Below we provide an update on other projects which are expected to contribute to our medium and long term growth. These projects have not yet been approved by the Board and are subject to ongoing internal review. However, certain minor works and exploration activities might be in progress in preparation for Board approval and as such, are included within the 2026 approved capex and exploration budget.

 

 

Advanced exploration projects

 

Rodeo

Rodeo is an open pit, heap leaching gold project located in central Durango state. Gold occurs in a volcanic rock-hosted disseminated ore body showing thorough oxidation down to depths exceeding 200 metres. The metallurgical and extension drilling campaign completed in 2025 delivered an increase of mineral resources, which now stand at 2.3 million ounces of gold, 67% in the indicated category. The comprehensive metallurgical investigations completed have confirmed good recoveries for the proposed heap leaching operation.

Good results have been obtained from the 5,319 metres of core drilling completed in 1H 2026, focusing on priority infill drilling within the pit limits, and in the initial exploration of a disseminated gold target located close to the main deposit. Drilling will continue during 2H 2026.

The advanced PEA of the project is at its final stage, with results expected during early 3Q 2026. This will be submitted for approval and followed by the PFS stage, expected to start during the third quarter. The project execution timeline indicates production start by late 2029 to early 2030, subject to permitting timing. A robust community and government engagement programme continues in operation in the region, receiving good response from the involved parties.

Orisyvo

Orisyvo is a world-class, high-sulphidation epithermal, disseminated gold deposit located in the Sierra Madre mountains of Chihuahua state, hosting open-pit constrained total resources of 9.6 million ounces of gold.

The PFS-B advanced during 1H 2026 focusing on the definition of the main enabling projects, including tailings storage facilities and water and energy supply. Work will continue during 2H 2026 with environmental studies to submit permit applications before year-end, complementary studies, and the formalisation of the process of indigenous consultation. The land acquisition strategy and government and community engagement programmes continue to operate in the region. Production is expected to start by 2033 at an average of 180 - 220 koz gold per year.

Tajitos

Tajitos is a low strip ratio open-pit, heap-leach, disseminated gold project located in the Herradura Corridor of northwestern Sonora state, hosting a resource of 1.1 million ounces of gold, 90% in the indicated category.

Good results have been obtained from 12,157 metres of core drilling completed during 1H 2026, focusing on the search for additional disseminated and vein-hosted gold deposit in the western portion of the project. Metallurgical investigation in the main pit area is being refined, and it is expected to be concluded in 2H26, with a revised PEA scheduled in 1Q27.  

Environmental studies associated with the potential development of this project are advancing well, along with our regional community relations programme and the evaluation of alternatives for water and energy supply and potential synergies with the existing infrastructure of the Herradura operations. The preliminary schedule indicates production from Tajitos may start by 2030.

Guanajuato

Guanajuato is a historic, world-class gold and silver epithermal vein field stretching more than 40 kilometres along the central Mexican state of Guanajuato. During 1H 2026, exploration was focused on the southern part of the district, with exploration drilling amounting to 32,844 metres of infill holes of the upper part of the main El Roble vein. Infill drilling will continue at an enhanced pace during 2H 2026.

PFS level studies are in progress following positive results from initial conceptual studies, including preparation for additional metallurgical investigations, geotechnical drilling, environmental permitting, land acquisition strategy, refining of layout of mining and processing infrastructure, and additional engineering work, all supported by our community and government engagement programmes. Preliminary scheduling indicates production from Guanajuato Sur to start by 2033.

Exploration continued in the central portion of the district at a slower pace, with 4,393 metres of core drilling completed at the Torres and Peregrina areas, where exploration potential remains in underexplored areas of these historic mining sites.

Novador

Following the closing of the acquisition of Probe Gold in January 2026, exploration and PFS level studies continued without interruption at the Novador project in the Quebec province of Canada. 37,550 metres of condemnation, extension, and infill drilling were completed during 1H 2026 with good results. PFS outcomes are expected during 2H 2026, to be closely followed by additional peer review and supplementary trade-off studies required for the start-up of an optimised feasibility study. Novador is expected to deliver an annual average of 200+ oz gold starting by 2033. Project activities continue to advance in accordance with applicable requirements, although there have been delays in obtaining the necessary permits.   

 

Exploration

Exploration drilling meterage completed by Fresnillo plc during 1H26 amounted to 468,878 metres, an increase of 30% with respect to 1H 2025. 75% of the drilled metres were devoted to brownfields targets. The focus of the mine exploration teams lies on infill drilling to upgrade the resources category from inferred to indicated, to foster reserve replenishment, and on infill drilling of reserves to improve their certainty for short and medium-term mine planning. At Ciénega, emphasis was also put on resource extension drilling over a recently discovered new set of veins. Brownfields exploration is also carried out by the Exploration Division, devoting 38% of its drilling metres for the period to the evaluation of targets around the Fresnillo and San Julián districts and the Tajitos and Central Guanajuato projects.

In 1H 2026, Fresnillo's greenfield exploration included 96,340 metres drilled at the Guanajuato Sur, Novador, Rodeo, Lucerito, Capricornio, and Yastai projects.

Evaluation of Fresnillo properties in Mexico, Peru, and Chile is advancing to continue strengthening and optimising our portfolio; some selected third-party projects are under evaluation as well in the three countries where we operate.

In the first six months, US$109.3 million of exploration expenses were recorded in the income statement, a 42.4% increase from the same period in 2025. Total risk capital invested in exploration for the full year 2026 is expected to be US$308 million.

 

 

 

Related party transactions

Details of related party transactions that have taken place in the first six months of the current financial year are detailed in note 16 of the interim consolidated financial statements.

 

 

Sustainability performance

 

 

At Fresnillo, our purpose to contribute to the wellbeing of people through the sustainable mining of silver and gold, shapes both our long-term vision and our daily actions, with a clear focus on the issues most material to our business and stakeholders. The following sections outline our progress in the first half of 2026, as we continue evolving toward a more responsible, resilient, and inclusive mining model.

 

 

People

 

Our workforce is essential to fulfilling our organisational purpose. We aim to foster an inclusive culture that values diversity and empowers all employees to reach their full potential.

 

Workforce figures remained largely stable during the first half of 2026, as shown in Tables 1 and 2. We have continued to build on the momentum from meeting our 2025 gender representation targets. As of June 30, 2026, women represented 15.3826% of unionised and non-unionised employees (up from 14.73% as of December 2025) and 12.95% of our total workforce, including contractors (compared to 12.63% as of December 2025).

 

Table 1. Workforce composition

 

	As at June 30, 2026	As at December 31, 2025	% Change
Unionised employees	5,642	5,529	2.04
Non-unionised employees	1,706	1,648	3.52
Total unionised and non-unionised employees	7,348	7,177	2.38
Unionised and non-unionised women (%)	15.38	14.73	-
Contractors	11,729	11,096	5.70
Total workforce	19,077	18,273	4.40
Total women (%)	12.95	12.63	-

 

Table 2. Turnover

 

	As at June 30, 2026	As at June 30, 2025
Voluntary turnover (%)	2.63	2.06
Total turnover (%)	5.35	3.77

 

 

This year, Saucito Mine earned the Gold distinction of the Women in Mining (WIM) Seal - an initiative by WIM Mexico that evaluates workplace infrastructure, policies, and practices from a gender perspective, following Herradura's recognition in 2025. Building on this momentum, we continue scaling our efforts through a comprehensive programme aligned with the Women's Empowerment Principles (WEPs), aiming to embed an inclusion lens across processes and decision-making.

 

As part of this approach, our Inclusion Committee - composed of representatives from all mining units, exploration, and corporate offices - completed its first DEI maturity diagnostic in the second quarter of 2026, applying the ICMM's DEI Maturity Matrix to identify site-specific gaps and priorities. Drawing on these results, the Committee is now working to define a focused set of standardized DEI actions to be reviewed consistently across all business units, reinforcing alignment and shared accountability as the programme matures.

 

 

Safety

 

Safety is a fundamental value, rooted in our deep respect for life and embodied in the daily practice of our 'I Care, We Care' philosophy. We foster a culture of care, accountability and prevention to keep our people safe every day.

 

Between 2018 and June 2026, we have achieved a 73% reduction in the Total Recordable Injury Frequency Rate (TRIFR) and a 61% reduction in the Lost Time Injury Frequency Rate (LTIFR), per million hours worked. During the first half of 2026, we continued to improve our safety performance compared with the previous year, as shown in the table below, and reached 12 consecutive months without a fatal accident.

 

Table 3. TRIFR and LTIFR performance*

 

	As at June 30, 2026	As at December 31, 2025	% Change
Total Recordable Injury Frequency Rates (TRIFR)	5.52	6.26	-11.82
Lost Time Injury Frequency Rates (LTIFR)	3.36	4.10	-17.98
Fatal accidents	0	2	-100.00

 

     * Frequencies for every 1,000,000 hours worked

 

 

This performance reflects the continued implementation of our I Care, We Care philosophy, an integrated framework that addresses inherent industry risks through critical control management and ensures that all risks are managed systematically. During the first half of 2026, we continued to advance this work through the following initiatives:

 

Leadership remained a key focus, with continued efforts to reinforce visible leadership, accountability and risk ownership across all levels of the organisation, and the I Care, We Care Operational Committee has continued to enhance governance over the Company's Critical Risk portfolio. During the period, the Committee led the standardisation of seven of the fourteen Critical Risks and the development of common operational standards and guidance, which together with the implementation of the Business Partner Standard, continue to strengthen our systems risk competencies and the accountability needed to support a consistent approach to risk management across the business.

 

Behavioural risk competencies were also reinforced through the relaunch of the Competencies Facing the Risk (CFR) workshop, which strengthens field observation, active safety tools and leadership practices among operational leaders and middle management. Finally, the rollout of the Eye on Risk verification process - a cross-site verification process in which leaders responsible for the same operational discipline review one another's implementation of critical controls and risk management practices - significantly contributes to organisational learning environment, with findings shared across the Group to allow lessons learned and good practices to be transferred systematically between operations.

 

Together, these initiatives underpin a more proactive approach to safety across our workforce and business partners. By embedding safe decision-making into everyday operations, we continue to build a culture where everyone takes ownership of safety, supporting our ambition of eliminating fatalities and serious harm.

 

 

Health

 

We foster a safe and healthy work environment that prioritises the overall wellbeing of our workforce.

 

Our health strategy continues to evolve beyond traditional occupational health through five lines of action that focus on the early identification and prevention of both occupational and chronic diseases, while also promoting a healthier, safer, and more productive workplace: health surveillance, integral wellbeing, industrial care, development and innovation, and emergency preparedness.

 

During the first half of 2026, health surveillance continued to support early detection of occupational and non-occupational risks, with periodic medical screenings of our workforce, advancing to around a third of our annual target.

 

Integral wellbeing advanced through several initiatives, as mental health continues to gain prominence for the Company. This includes the Emotional Maturity Programme workshops, aimed at strengthening communication, self-awareness and team interaction, as well as the launch of the Behaviour Based Safety (BBS) pilot, designed to gather deeper evidence on the root causes of unsafe behaviour and generate analytics to inform accident prevention programmes.

 

Emergency preparedness was reinforced through continued coordination between our compliance and medical teams to ensure site clinics align with Ministry of Health and Ministry of Labour and Social Welfare (STPS) requirements, alongside first-aid training to strengthen on-site response capability.

 

 

Environment

 

We optimise resource consumption and manage environmental risk responsibly, working closely with communities and government to strengthen our environmental stewardship and licence to operate.

 

Our approach to water stewardship was validated externally this half, as Juanicipio Mine received an Environmental Achievement Award from the Zacatecas State Legislature for its water management model, which relies exclusively on treated wastewater in its beneficiation plant, avoiding the consumption of freshwater.

 

Climate and energy transition efforts continued, with renewable electricity consumption reaching 83.7% in 1H26, though we expect this to ease to around 79% by year end - a modest increase against 2025, but still comfortably ahead of our 2030 target of 75%. Alongside this, we continued to advance our energy demand forecasting methodology, structured across a robust process for our current operations, which we look to extend to new projects as they advance to feasibility stages to support our decarbonisation targets.

 

Environmental risk management progressed with the roll-out of our High Potential Environmental Strategy, building on last year's Critical Environmental Risk Portfolio - a tool designed to help each site identify its most critical environmental risks and implement standardised and consistent critical controls to prevent adverse impacts. San Julián Mine served as the pilot, completing the foundational phase - mapping critical environmental risks, developing bow-tie analyses of threats and controls, and documenting Critical Control Checklists (HVCCs) - to establish a standardised framework that extends across sites. Current efforts are focused on platform training, rolling out the strategy to contractors, and tracking findings to close gaps and monitor trends.

 

Across our Tailings Storage Facilities, we maintain a comprehensive internal and external review and monitoring programme, with corrective works when needed. Tailings management also advanced through the completion of the Beleña sink at Fresnillo Mine - a project designed to reprocess high-grade tailings, reducing the stored load at the Proaño TSF and improving its stability.

 

Biodiversity and environmental stewardship were reinforced through Fresnillo District's participation in the Federal Attorney's Office for Environmental Protection's (PROFEPA) "A Goal for the Environment" programme, advancing circular economy principles through the reduction of single-use plastics. In parallel, all mining operations and exploration offices marked World Environment Day through clean-up and reforestation campaigns, conferences and community engagement.

 

 

Community Relations

 

We operate with the aim of earning and maintaining the trust of our communities through meaningful engagement, support for their most pressing priorities, and accountability for our impact.

 

Rooted in a deep understanding of local culture and traditions, we listen closely to community concerns through social perception studies and our grievance mechanism, feeding directly into our social management plan. This approach is delivered in partnership with civil society and government, aligned with the UN Sustainable Development Goals.

 

We have continued to advance our Social Involvement programme to strengthen the link between our workforce and local communities, with employees acting as social ambassadors, and are now extending this into a second phase that reaches our business partners, reinforced through awareness sessions on shared expectations for community engagement and responsible conduct. Building on this, we laid the foundations this half for a more organic Transparency and Communication strategy to engage communities on our operational and social activity.

 

Health and wellbeing (SDG3) in our communities advanced through health brigades delivered in partnership with Fundación UNAM across Fresnillo District, San Julián and Ciénega, providing dental, physiotherapy, optometry and general medicine services. Alongside this, our Líderes en el Horizonte programme with FutbolMas continued to build youth leadership through sport, consolidating in San Julián, Guanajuato and Penmont and gaining early traction in Ciénega and Saucito, complemented by our baseball, basketball and Santos-Fresnillo football academies.

 

Quality education (SDG4) continued to be a core pillar. Picando Letras, our early-literacy programme, expanded to benefit children across all operations, and Prest Math, focused on promoting mathematics, science and technology, successfully concluded the academic period in San Julián and Penmont, laying the groundwork to launch in Ciénega next period.

 

Our First Robotics programme sponsored seven community teams, with the team from Juanicipio receiving the Rising All Star Award at the FIRST World Championship in Houston, Texas. Our Excellence Scholarship programme closed the 2025-26 academic year supporting 12 students at La Salle University and 15 at public universities, with 25 new applicants for 2026-27 across three new institutions in Chihuahua and Durango.

 

Decent work and economic growth (SDG8) progressed through continued support for agro-industrial workshops and bakery initiatives in Fresnillo District, and artisanal small businesses in Saucito, alongside the selection of potential beneficiaries for a second phase of our entrepreneurship programme across Ciénega, San Julián and Penmont.

 

Clean water and sanitation (SDG6) remain a top priority for our communities. In partnership with the Durango state government and the community itself, we successfully completed a water infrastructure project in Ciénega de Nuestra Señora, now supplying clean water to most of the community.

 

Life on Land (SDG15) initiatives brought employees, contractors and community members together in shared action - from clean-up campaigns in Ciénega and reforestation in Fresnillo, to an Earth Day cycling event for children in Saucito and climate-focused conferences and theatre presentations in Penmont, among others.