Guidance Holds Firm
Fresnillo Reaffirms 2026 Production Guidance Amid Mixed Q2 Results as Shares Rise
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Key Points
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Gabriel Durán was appointed interim chief operating officer for Fresnillo's Central Region following the departure of the regional COO.
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Second-quarter silver output was 10.9 million ounces, down 12.6% year on year, with the end of the Silverstream contributing to the drop.
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Fresnillo reaffirmed its 2026 production outlook, targeting silver 42.0–46.5 million ounces, gold 500,000–550,000 ounces, lead 54,000–59,000 tonnes and zinc 85,000–95,000 tonnes.
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Q2 gold production was 154,812 ounces, down 1.9% year on year due to lower ore grades at Herradura and San Julián Veins, with higher-grade ore offsetting at the Fresnillo mine.
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Fresnillo’s shares rose about 4.4% to 2,566 pence on the London Stock Exchange following the quarterly results.
Fresnillo, the world's largest primary silver producer, posted mixed second-quarter results but held firm on its 2026 production targets. Market Screener reported that Q2 silver output fell 12.6% year on year to 10.9 million ounces, while gold production climbed 13.8% quarter on quarter to 154,812 ounces. Shares jumped about 4.4% to 2,566 pence on the London Stock Exchange following the update.
The company reaffirmed its full-year 2026 guidance: 42.0–46.5 million ounces of silver, 500,000–550,000 ounces of gold, 54,000–59,000 tonnes of lead, and 85,000–95,000 tonnes of zinc. It also maintained its 2027 and 2028 targets, signaling confidence despite near-term grade and operational headwinds.
Silver Output Drops as Silverstream Era Ends
Q2 silver production came in at 10.9 million ounces, down 1.7% from Q1 and 12.6% below the same quarter last year. Two forces drove the decline: lower ore grades across several mines, and the end of the Silverstream contract, which had long supplied a steady stream of by-product silver to Fresnillo's books. Market Screener noted that first-half silver output fell 11.4% to 22.0 million ounces compared to a year earlier.
Despite the drop, Fresnillo kept its annual silver target unchanged. The 42.0–46.5 million ounce range implies a meaningful production ramp in the second half. The company pointed to ongoing mine improvements and grade recovery plans as the basis for that confidence.
Gold Rebounds Strongly in Q2 Despite Annual Shortfall
Gold was a brighter story in the quarter. Output rose 13.8% from Q1 to 154,812 ounces, driven by higher-grade ore at the Fresnillo mine. That partially offset weakness at Herradura and San Julián Veins, where grades fell short. Still, the Q2 figure sat 1.9% below the 157,735 ounces produced in Q2 2025, according to Market Screener.
For the first half, gold output totaled 290,885 ounces, down 7.3% year on year. Fresnillo's full-year gold target of 500,000–550,000 ounces means the company needs a stronger second half. Management cited grade improvements at key mines as the path to closing that gap.
Base Metals Offer a Bright Spot Amid Grade Volatility
Lead and zinc moved in opposite directions in Q2. Lead production jumped 15.1% quarter on quarter to 17,438 tonnes. Zinc dipped 2.6% to 27,672 tonnes. The divergence reflects ore variability across Fresnillo's mines, where grade fluctuations are a persistent challenge. Market Screener reported that first-half base metal results still improved overall, reinforcing the company's broader output outlook.
Full-year targets for lead sit at 54,000–59,000 tonnes and zinc at 85,000–95,000 tonnes. First-half output puts both metals roughly on pace. Unlike silver and gold, neither base metal faces a structural headwind like the loss of the Silverstream contract.
Leadership Shake-Up in Central Region Brings Interim COO
Fresnillo also flagged a management change in its Central Region. The regional chief operating officer departed, and Gabriel Durán stepped in as interim COO for the area. The company said interim arrangements are in place to maintain operational continuity. Market Screener noted that Fresnillo stressed safety and disciplined execution as priorities during the transition.
Leadership stability matters in mining, where operational decisions directly affect ore recovery and costs. Fresnillo gave no timeline for a permanent appointment. The company's Central Region includes key producing assets, making the role critical to hitting second-half targets.
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