London, April 24, 2026, 16:08 BST
- Fresnillo’s first-quarter silver output fell 8.5% from the prior quarter to 11.1 million ounces.
- The miner kept 2026 production guidance unchanged for silver and gold.
- Shares were down about 0.5% in late Friday trading, with the stock lower over the week.
Fresnillo PLC kept its 2026 production outlook unchanged after first-quarter silver output fell, betting that mine plans and higher precious-metals prices can steady the year after a softer start. The London-listed, Mexico-focused miner said quarterly attributable silver production dropped to 11.1 million ounces, hit by lower ore grades — the amount of metal in mined rock — and lower volumes at Saucito, Fresnillo and Juanicipio.
The update matters now because investors are watching whether Fresnillo can turn high gold and silver prices into cash generation while avoiding another year of operational slips. Its shares traded at 3,408 pence on Cboe Europe at 11:08 a.m. EDT, down 0.5% on the day and nearly 10% lower over five sessions.
The backdrop is not simple. Gold was higher on Friday but set for its first weekly loss in five weeks as oil-driven inflation worries, a stronger dollar and higher yields weighed on bullion; spot silver rose 0.3% to $75.65 an ounce, Reuters reported. UBS analyst Giovanni Staunovo said gold’s move was “connected to the oil price,” tying the metal’s fall this week to expectations for higher rates, the dollar and yields. Reuters
Fresnillo said gold production rose 0.7% from the fourth quarter to 136,074 ounces, helped by better grades and recovery rates at Herradura and Fresnillo. Compared with a year earlier, however, gold output fell 12.8%, mainly because Herradura processed less ore at lower grades after a stronger first quarter in 2025.
Chief Executive Octavio Alvídrez said 2026 had started “in line with our expectations” and that operational plans were moving ahead. He also said Fresnillo continued to “monitor costs closely” while precious-metals prices remained resilient. Fresnillo plc
The company kept 2026 guidance for silver at 42 million to 46.5 million ounces and gold at 500,000 to 550,000 ounces. Its longer-range guidance was also unchanged, with silver expected at 45 million to 51 million ounces in both 2027 and 2028 and gold at 535,000 to 595,000 ounces in each of those years.
Some of the weakness was mine-specific. Fresnillo mine silver production fell 12.5% from the fourth quarter, while Saucito silver output fell 13.2% as lower grades, lower ore throughput and work on the Jarillas shaft reduced volumes. Juanicipio’s attributable silver output fell 6.7% from the prior quarter as deeper mining brought lower silver grades.
Herradura gave the quarter some support. Gold output there rose 9.9% from the fourth quarter to 78,308 ounces, helped by higher grades and better selectivity, though it still fell 22.8% from a year earlier. Fresnillo said phase XV of Herradura’s leaching pads — where chemicals are used to extract metal from ore — had been commissioned and ore depositing had begun.
There was also a possible upside option at Noche Buena. Fresnillo said 2,869 ounces of gold were recovered from leaching pads there in the quarter, down from both comparison periods, but a recent review of remaining ore had a positive result and further work will be done in the second quarter to assess a near-term restart.
But the guidance leaves less room for error if low grades persist or project work slips. Fresnillo said ramp haulage at Saucito was expected to normalise in the second quarter, while the connection of the two sections of the Jarillas shaft was expected to be completed in the fourth quarter; delays there, or higher fuel and contractor costs, could make the second half harder.
Peers show why the market is focused on execution rather than just metal prices. Newmont, the world’s largest gold miner, beat first-quarter profit estimates this week as record gold prices offset lower output, though it warned of softer second-quarter production and higher costs. That is the same trade-off facing Fresnillo: rich prices help, but only if mine output holds up.
Fresnillo remains the world’s largest primary silver producer and Mexico’s largest gold producer, with eight operating mines in Mexico and listings in London and Mexico. For now, the company’s message is that the first-quarter drop is manageable. The share price says investors still want proof.
