S& P 500 hits all time highs U.S.-Japan trade deal optimism
Investing.com -- Fresnillo (LON:FRES) reported second-quarter silver production of 12.5 million ounces, falling 4% short of the consensus estimate of 13.1 million ounces.
The company’s shares dipped in London trading after the report. The stock was down 3% as of 07:13 GMT.
However, a stronger performance in the gold segment—particularly at Herradura and San Julian—offset the miss, with total silver equivalent volumes coming in 4% above expectations, according to RBC Capital Markets.
Gold production reached 157,000 ounces in the quarter, beating forecasts by 12% compared to the 140,000-ounce consensus.
RBC analysts estimate that, all else being equal, the latest results should lift consensus EBITDA forecasts by 4.2% for the first half of 2025 and by 2% for the full year (FY25).
“With 60% of the mid-point of gold production achieved, FRES is on track to exceed 2025 gold guidance, but silver volumes could fall short of expectations if performance does not improve in the second half of the year,” analysts led by Marina Calero wrote.
“We wait for interim results on August 5th to learn more about plans to improve performance at the silver portfolio and recent developments at silverstream as well as the upside from the ongoing initiatives at Herradura,” they added.
By-product output was generally solid in Q2. Lead production totaled 15.2kt, slightly below expectations of around 15.7kt, while zinc output reached 28.4kt, exceeding the 27.0kt consensus by 5%, RBC noted.
Fresnillo maintained its full-year 2025 production guidance, targeting 49–56 million ounces of silver and 525,000–580,000 ounces of gold.
At the half-year mark, silver production has reached 47% and gold 57% of the midpoint of those ranges.