Fresnillo shares fall as dividend misses expectations and weaker metals weigh
March 3 (Reuters) - Precious metals miner Fresnillo FRES.L reported an 81% surge in annual profit and set a record dividend on Tuesday, but its shares fell as much as 5% amid a decline in metal prices and signs some investors had expected an even higher payout.
The London-listed company is benefiting from global political uncertainty that is fuelling investment in safe-haven assets, such as gold, while it also continues to broaden its North American presence.
Fresnillo, the world's largest primary silver producer, reported its 2025 earnings before interest, tax, depreciation, and amortization rose to $2.80 billion, driven by higher metal prices. It also paid out $950 million in 2025, or about 63% of adjusted profit, above its customary 50% payout rate, but its shares fell as much as 5.4% as gold and silver prices fell, while expectations of a more generous payout also seemed to weigh.
"Whilst precious metal prices are lower today, unrealistic expectations for an even higher dividend than the stated policy rate, beyond that announced, will add to a sense of disappointment," Peel Hunt analyst Kieron Hodgson said, commenting on the share move.
HIGH‑PRICE ENVIRONMENT
Silver demand tied to energy‑transition technologies, along with renewed interest in gold and silver as safe-haven investments, is expected to keep prices elevated at a time when the escalating conflictin the Middle East is further pushing investors away from riskier assets.
Fresnillo said it expects the high price environment for silver and gold to persist, and that tariffs would remain a key issue for international trade.
The miner said silver production was in line with its outlook and that gold output beat expectations. It also reiterated its 2026 forecast for its silver and gold production.
