London, April 25, 2026, 18:07 BST
- Fresnillo closed down 1.63% on Friday at 3,370 pence, underperforming a weaker FTSE 100.
- First-quarter attributable silver production, meaning the company’s share of mine output, fell 8.5% from the prior quarter to 11.1 million ounces.
- Berenberg left its hold rating and 34-pound price target unchanged after calling the production update broadly in line with expectations.
Fresnillo PLC shares ended lower on Friday, leaving investors to weigh a drop in first-quarter silver output against the Mexican miner’s decision to keep its 2026 production guidance intact. The London-listed stock closed at 3,370 pence, down 1.63%, after a week in which metals-linked shares were pushed around by commodity prices and wider market caution.
That matters now because Fresnillo is not a marginal name in silver. The company describes itself as the world’s largest primary silver producer and Mexico’s largest gold producer, so lower ore grades — the amount of metal contained in mined rock — are watched closely for what they may say about future volumes and costs.
The company said quarterly attributable silver production fell to 11.1 million ounces from 12.2 million ounces in the fourth quarter, mainly due to lower ore grades and reduced ore processed at Saucito, Fresnillo and Juanicipio. Gold output edged up 0.7% from the prior quarter to 136,074 ounces, but was down 12.8% from a year earlier.
Chief Executive Octavio Alvídrez said production was “in line with our expectations” and said the group would “monitor costs closely.” Fresnillo also said commissioning of the new leaching pad at Herradura had been completed and ore depositing had started.
The guide is the hinge. Fresnillo kept its 2026 forecast for attributable silver production at 42 million to 46.5 million ounces and gold output at 500,000 to 550,000 ounces. It also left expected 2027 and 2028 production ranges unchanged.
Berenberg analysts updated their model after the report and said silver volumes of 11.1 million ounces were just above their 11 million-ounce estimate, while gold output of 136,000 ounces was also slightly ahead. The broker kept its hold rating and 34-pound target, and said potential larger payouts could be limited by longer-dated growth projects.
The pressure was not only company-specific. Reuters reported on Thursday that Fresnillo fell 6.4% as precious and base metals weakened, while Anglo American gained after a report on interest in its Australian coal business. On Friday, Antofagasta, Fresnillo and Endeavour Mining were all cited among miners sliding more than 2% in London trading.
But the risk is clear enough: guidance depends on grades, mine throughput and cost control improving as planned. At Saucito, Fresnillo said the stoppage of the Jarillas shaft in mid-March required a switch to ramp haulage, though it expects ramp haulage to normalise in the second quarter and the shaft connection to be completed in the fourth quarter.
Fresnillo still has levers. The company said Herradura’s phase XV leaching pads are now commissioned, and it is studying a possible near-term restart at Noche Buena after a review found remaining ore could be economically viable at current gold prices.
For now, the market is treating the update as adequate rather than clean. The next test is whether second-quarter production shows the Saucito bottleneck easing and whether strong precious-metals prices can keep offsetting weaker grades.
