London, April 25, 2026, 18:07 BST
- Fresnillo shares fell 1.63% to finish the day at 3,370 pence on Friday, trailing a soft FTSE 100.
- The company’s attributable silver production in the first quarter dropped to 11.1 million ounces, down 8.5% from the previous quarter.
- Berenberg stuck with its hold rating and kept the 34-pound price target where it was, describing the production update as broadly in line with what it had anticipated.
Fresnillo PLC slipped 1.63% to finish Friday at 3,370 pence, underperforming as investors reacted to a first-quarter dip in silver production. The Mexican miner, however, stood by its output guidance for 2026. Throughout the week, shares tied to metals—including Fresnillo—were buffeted by shifting commodity prices and broader market caution.
This is significant: Fresnillo isn’t some fringe player in silver. The company calls itself the world’s top primary silver producer, also leading in gold output in Mexico. That’s why shifts in ore grades — basically, how much metal each ton of rock contains — get extra scrutiny, hinting at what’s ahead for both production levels and costs.
Quarterly attributable silver production slid to 11.1 million ounces, down from 12.2 million ounces in the fourth quarter, as lower ore grades and a drop in processed ore at Saucito, Fresnillo and Juanicipio weighed on results. Gold production ticked up 0.7% over the previous quarter to 136,074 ounces, though that’s still 12.8% below where it stood a year ago.
Chief Executive Octavio Alvídrez described production as “in line with our expectations”, adding the group would “monitor costs closely.” Fresnillo noted it has finished commissioning the new leaching pad at Herradura and has begun depositing ore.
The outlook is unchanged. Fresnillo is still targeting attributable silver production of 42 million to 46.5 million ounces for 2026, and expects gold output to stay in the 500,000 to 550,000 ounce band. Forecast ranges for 2027 and 2028 didn’t move either.
Berenberg analysts tweaked their forecasts after the release, noting silver production hit 11.1 million ounces—just topping their 11 million-ounce call. Gold output of 136,000 ounces also narrowly beat their projections. The broker held firm on its hold rating and 34-pound price target, adding that bigger payouts may be capped for now by longer-term growth plans.
It wasn’t just a single name under pressure. Fresnillo dropped 6.4% on Thursday, Reuters said, tracking a pullback in metals prices. Anglo American moved up after reports surfaced of outside interest in its Australian coal assets. Friday saw more weakness: Antofagasta, Fresnillo, and Endeavour Mining each slid over 2% in London.
The risk here isn’t hard to spot: guidance relies on grades, mine throughput and cost controls actually moving in the right direction. At Saucito, Fresnillo pointed out that when the Jarillas shaft stopped in mid-March, they had to pivot to ramp haulage, a workaround they expect to settle into by the second quarter. The shaft connection? That’s on track for completion in the fourth quarter.
Fresnillo isn’t out of options yet. Herradura’s phase XV leaching pads are up and running, the company said, and there’s talk of bringing Noche Buena back online—management is weighing a restart after a recent review showed the leftover ore might still turn a profit with gold at these levels.
So far, investors seem to see the update as good enough, not perfect. Next up: watching if second-quarter output points to real progress at Saucito, and if firm precious-metals prices are enough to balance out lower grades.
