Mexico's Fresnillo 2025 revenue beats on higher precious metal prices

Overview

• Mexico mining firm's adjusted revenue for 2025 beat analyst expectations

• EBITDA for 2025 beat analyst estimates

• Company completed acquisition of Probe Gold, expanding resource base

Outlook

• Fresnillo expects 2026 silver production between 42.0 and 46.5 million ounces

• Gold production for 2026 is anticipated to be between 500 and 550 thousand ounces

• 2026 capex projected at approximately $765 million, focusing on mining and infrastructure

Result Drivers

• PRECIOUS METAL PRICES - Higher silver and gold prices drove a 27.6% increase in adjusted revenue, despite lower production volumes

• OPERATIONAL EFFICIENCIES - Cost management and operational improvements expanded profit margins, contributing to an 80.7% rise in EBITDA

• GOLD PRODUCTION - Gold production exceeded expectations, despite lower ore grades and volumes processed at key mines

Company press release: ID:nRSC0997Va

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy."

• Wall Street's median 12-month price target for Fresnillo PLC is GBp3,548.68, about 13.9% below its March 2 closing price of GBp4,120.00

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

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