Fresnillo PLC (OTCPK:FNLPF)

Half Year 2026 Fresnillo PLC Earnings Call Transcript

Aug 4, 2026 / 08:00 AM GMT

Release Date Price: $35.09 (+5.06%)

Transcript

Key Points

Positve

Fresnillo PLC (FNLPF) delivered a record financial performance in H1 2026, with revenues up sharply and gross profit and EBITDA more than doubling year-on-year.
The company more than doubled its interim dividend versus the prior year, returning over $2 billion to shareholders over the past five years.
Gold production showed strong sequential momentum, increasing 13.8% against the first quarter, with the Fresnillo mine seeing a 47.6% increase in gold production year-on-year.
The company is advancing a robust portfolio of growth projects, including the Valles and Nochebuena brownfield projects, which are expected to start production in Q3 2026 and Q4 2026, respectively.
Fresnillo PLC (FNLPF) maintained disciplined cost control, with controllable costs rising only 3.5% in H1 2026 despite inflation and a strong Mexican peso.
The company's balance sheet remains strong with a healthy cash balance of $2.5 billion, allowing for strategic investments like the acquisition of Probe Gold and an investment in Project SINDA.

Negative

First half gold production decreased 7.3% year-on-year due to lower ore volumes and recovery rates at Herradura, and silver production also declined due to the planned end of the Silver Stream Agreement and grade variability.
Adjusted production costs increased by almost 21% ($138 million), driven by a 12.5% revaluation of the Mexican peso and cost inflation, which negatively impacted profitability.
The company faces temporary cost increases at Saucito due to the ongoing shaft connection project, which has increased haulage costs and contractor expenses until its completion in Q3.
Fresnillo PLC (FNLPF) is experiencing higher stripping costs at Herradura, with 100% of stripping now taken directly to the income statement, and longer haulage distances, negatively impacting costs by $11.4 million.
The company's growth projects, such as Novador and Orisyvo, are facing delays due to permitting processes and other challenges, with production not expected until 2033, which may disappoint investors looking for near-term growth.
The company's 2026 guidance for silver production is at risk due to issues with ventilation and ground control at Saucito, which may lead to lower production in 2027 and 2028.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FRES.L - Fresnillo PLC
Half Year 2026 Fresnillo PLC Earnings Call
Aug 04, 2026 / 08:00AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, everyone.

Thank you for joining us today.

Welcome to the interim results presentation in what was an outstanding period for the company.

My name is Octavio Alvidres, CEO of Fresnillo, and this morning I'm joined by Mario Arreguin, our CFO, and Daniel Dies, Chief Operating Officer of the Northern Region.

As always, I need to point out to a disclaimer before I begin, but let's move on to set what we will cover in our presentation.

I will take you through the key operating and financial highlights.

Daniel and I then provide an operational update, followed by Mario that will provide us a financial update.

I will then conclude and provide some comments on the

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