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LONDON - Fresnillo (LON:FRES) plc, the world’s largest primary silver producer, reported a 297% increase in profit for the first half of 2025, driven by higher precious metals prices and improved operational performance despite lower silver production.
The Mexico-focused miner posted profit of $467.6 million for the six months ended June 30, up from $117.7 million in the same period last year. Adjusted revenue rose 27.1% to $1.98 billion, primarily due to higher gold and silver prices and increased gold sales volumes.
Gold production increased 15.9% to 313,840 ounces, mainly due to improved operations at Herradura, while silver production declined 11.7% to 24.9 million ounces following the planned closure of San Julián DOB and lower output at other mines.
The company’s EBITDA more than doubled to $1.10 billion, with EBITDA margin expanding to 56.9% from 36.6% a year earlier. Cost of sales decreased 16.7% to $913.2 million, helped by the devaluation of the Mexican peso against the US dollar and cost-reduction initiatives.
Fresnillo also announced that Peñoles will buy back the Silverstream Contract for $40 million following operational difficulties at the Sabinas mine. This resulted in a non-cash Silverstream loss of $133 million after tax in the first-half results.
"Our profitability has significantly improved, driven not only by favorable precious metals prices but also by consistent operational performance and rigorous cost discipline," said CEO Octavio Alvídrez.
The company declared an interim dividend of 20.8 US cents per share, up from 6.4 cents in the prior year. Fresnillo has increased its 2025 gold production guidance while adjusting silver production expectations to reflect the Silverstream buyback.
Based on a press release statement, Fresnillo maintained a solid financial position with cash and other liquid funds of $1.82 billion as of June 30, 2025.
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