Fresnillo Plc · LSE:FRES
Fresnillo — H1 2025 Earnings Presentation
46 slides from Fresnillo's earnings presentation, Aug 5, 2025
Slide 1: Half Year Interim Results 5 August 2025
H A L F YE A R I N TE R I M R E S U LT S 5 AU G US T 2025 LSE: FRES BMV: FRES www.fresnilloplc.com
Slide 2: Disclaimer
D IS CL A IMER 2 This document includes statements that are, or may be deemed to be, “forward-looking A number of factors could cause results and developments to differ materially from those statements”. These forward-looking statements can be identified by the use of forward- expressed or implied b
Slide 3: Agenda
A GE ND A 3 01 Investment proposition 02 HSECR 03 1H25 Highlights 04 Operational performance 05 Silverstream update 06 Financial performance 07 2H25 outlook
Slide 4: Investment Proposition
INVESTMENT PROPOSITION O C TAVI O A LV Í D R EZ
Slide 5: Investment Proposition: Driving Sustainable Value Creation
1 H 2 5 I N T E R I M R E S U LT S – I N V E S T M E N T P R O P O S I T I O N 5 DRIVING SUSTAINABLE VALUE CREATION WORLD’S #1 SILVER CONSIDERABLE HIGH QUALITY PRODUCER GOLD PRODUCTION MINING ASSETS 24.9 Moz of si lver i n 1H25 313.8 koz of gold in 1H25 2.25Boz 38.5Moz Silver Resources Gold Resource
Slide 6: Silver & Gold Markets: Positive Fundamentals Continue to Drive Demand
1 H 25 I N T E R I M R E S U LT S - S I LV E R & G O L D M A R K E T S 6 P OS I T I V E F U ND A M E N TA L S C ON T I NU E T O D RI V E D E M A ND F O R P R E CI O US M E TA L S GLOBAL DEMAND FOR GOLD (MOZ) With gold consistently reaching record highs throughout 1H25, the rally reflects ongoing mac
Slide 7: HSECR
HSECR OCTAVIO ALVIDREZ 4 FRESNILLO.
Slide 8: HSECR: Health & Safety, Environment, Community Relations
1 H 2 5 I N T E R I M R E S U LT S – H S E C R 8 S U STA I N AB I L I T Y I S C OR E T O O UR P U RP O SE : “ T O CO NT R I B UT E T O T H E W E L L B EI N G OF P E OP L E T H RO UG H T HE S U STA I N AB L E M I N I N G O F S I LV E R A ND G OL D ” HEALTH ENVIRONMENT COMMUNITY & SAFETY RELATIONS WE
Slide 9: 1H25 Highlights
1H25 HIGHLIGHTS O C TAVI O A LV Í D R EZ
Slide 10: Operational Performance Highlights
1 H 2 5 I N T E R I M R E S U LT S – O P E R AT I O N A L P E R F O R M A N C E H I G H L I G H T S 10 ATTRIBUTABLE HALF YEAR SILVER ATTRIBUTABLE HALF YEAR GOLD PRODUCTION PRODUCTION 24.9MOZ 313.8KOZ • Strong gold production through optimised operations, particularly at Herradura • Silver production
Slide 11: Financial Performance Highlights
1 H 2 5 I N T E R I M R E S U LT S – F I N A N C I A L P E R F O R M A N C E H I G H L I G H T S 11 GROSS PROFIT (US$) ADJUSTED EPS* (US CENTS PER SHARE) 1,022.9M 53.4US¢ per share OPERATING PROFIT (US$) EBITDA MARGIN 860.8M 56.9% EBITDA (US$) CASH ON HAND AT 30 JUNE 2025 (US$) 1,102.1M 1,823.0M PRO
Slide 12: Operational Performance
O P E R AT I O N A L PERFORMANCE TOMÁS ITURRIAGA & DANIEL DIEZ
Slide 13: Operations: Fresnillo
1 H 2 5 I N T E R I M R E S U LT S – O P E R AT I O N S Silver Production 13 F R E SN I L L O Silver Ore Grade Production guidance range Production Grade KEY DEVELOPMENTS 16 • Substantial improvement in silver grades from processed ore, a 12% increase YoY. 240 220 • Production volumes are impacted m
Slide 14: Operations: Saucito
1 H 2 5 I N T E R I M R E S U LT S – O P E R AT I O N S Silver Production 14 S A UC I T O Silver Ore Grade Production guidance range Production Grade 20 350 16 300 Million Ounces Grams/tonne 12 250 8 200 4 150 0 100 2020 2021 2022 2023 2024 2025e KEY OPERATING HIGHLIGHTS 1H25 1H24 Silver production
Slide 15: Operations: Juanicipio
1 H 2 5 I N T E R I M R E S U LT S – O P E R AT I O N S 15 J U A NI C I P I O KEY DEVELOPMENTS • Good performance on all fronts (tonnes and grades). • Development contractor replacement programme successfully completed. • Conveyor belt project progressing with slight delay. • The silver ore grade in
Slide 16: Projects: Solid Project Pipeline for the Future (Orisyvo, Guanajuato)
1 H 2 5 I N T E R I M R E S U LT S – P R O J E C T S 16 S OL I D P R OJ E C T P I PE L I N E F OR T H E F U T U RE ORISYVO (GOLD) GUANAJUATO (SILVER) Prefeasibility A level studies were completed during 1H25; the project will now undergo a During 1H25 exploration drilling amounted to 46,442m of step
Slide 17: Operations: Herradura
1 H 2 5 I N T E R I M R E S U LT S – O P E R AT I O N S 17 H E RR A DU R A Gold Production Gold Ore Grade Production guidance range KEY DEVELOPMENTS Production Grade • Strong performance in gold production in 1H25, 39% increase YoY. 5 1.2 • Consolidation of operational excellence programme, deliveri
Slide 18: Operations: Ciénega
1 H 2 5 I N T E R I M R E S U LT S – O P E R AT I O N S 18 C I É NE G A KEY DEVELOPMENTS • Production was lower than expected in gold and silver, due to unexpected low metallurgical recovery from oxidised stockwork mined during 1H. • Revised mine plan in place to improve production in 2H. • Total ex
Slide 19: Operations: San Julián (Vein System)
1 H 2 5 I N T E R I M R E S U LT S – O P E R AT I O N S 19 S A N J U L I Á N ( V E I N SY S T E M ) KEY DEVELOPMENTS • Strong performance in gold and silver production in 1H25, exceeding both targets and 1H24. • Plant optimisation performed during 2024, efficient dilution management and strict cost
Slide 20: Projects: Rodeo and Tajitos
1 H 2 5 I N T E R I M R E S U LT S – P R O J E C T S 20 S OL I D P R OJ E C T P I PE L I N E F OR T H E F U T U RE RODEO (GOLD) TAJITOS (GOLD) Drilling programme started in 1H25. Main objectives are complementing metallurgical Metallurgical testwork update completed with positive results for main or
Slide 21: Silverstream Update
S I LV E R S T R E A M U P D AT E MARIO ARREGUÍN
Slide 22: Silverstream Update
1 H 2 5 I N T E R I M R E S U LT S – S I LV E R S T R E A M U P D AT E 22 • Peñoles notified Fresnillo of operational and financial difficulties impacting silver production and the long- term viability of the mine and Fresnillo subsequently reported a revaluation loss relating to the Agreement of US
Slide 23: Financial Performance
FINANCIAL PERFORMANCE MARIO ARREGUÍN
Slide 24: Income Statement (IFRS)
1 H 2 5 I N T E R I M R E S U LT S – I N C O M E S TAT EM E N T ( I F R S) 24 (M IL LION USD )
Slide 25: Contribution by Mine and by Metal to Adjusted Revenues
1 H 2 5 I N T E R I M R E S U LT S – C O N T R I B U T I O N B Y M I N E A N D B Y M E T A L 25 TO AD JUS TED RE VEN UE S 1 H2 5 A DJ U ST E D R EV E NU E S 1 : US $ 1, 9 8 2. 9 M ( MI L L IO N U SD ) ACCUM JUNE CHANGE BY: PRODUCT 2025 2024 VOLUME PRICE TOTAL GOLD 959.8 580.3 117.2 262.4 379.5 SILVE
Slide 26: Adjusted Production Cost Analysis
1 H 2 5 I N T E R I M R E S U LT S – A D J U ST E D P R O D U C T I O N C O S T A N A LY S I S 26 (CONSOLI DATED, M ILL ION USD ) ACCUM JUNE CHANGE CO NCE P T 2025 2024 $ % ADJUSTED PRODUCTION COST 673.5 844.2 (170.6) (20.2) PROFIT SHARING 7.9 6.0 1.9 31.5 DEPRECIATION 241.4 304.2 (62.8) (20.6) HEDG
Slide 27: Gross Profit Analysis
1 H 2 5 I N T E R I M R E S U LT S – G R O S S P R O F I T A N A LYS I S 27 (CONSOLI DATED, USD M IL LION) CHANGE ACUM JUNE 25 ACUM JUNE 24 $ % External effects. Gross Profit 1,022.9 392.4 +630.6 +160.7% USD MILLION 900.0 25.2 14.9 ( 15.1 ) ( 21.1 ) ( 41.3 ) 62.8 23.3 ( 48.9 ) 750.0 85.9 107.3 630.6
Slide 28: Exploration Expense
1 H 2 5 I N T E R I M R E S U LT S – I N C O M E S TAT EM E N T ( I F R S) 28 (M IL LION USD ) Operating Units ➢ Fresnillo 8.6 ➢ Saucito 7.3 ➢ Ciénega 3.4 ➢ San Julián 6.3 ➢ Herradura 2.0 ➢ Juanicipio 2.1 ➢ 29.8 ➢ Projects ➢Guanajuato 7.8 ➢ Valles 1.4 ➢ Orisyvo 3.9 ➢ Centauro Deep 0.2 ➢ Rodeo 2.5 15
Slide 29: Cash Flow (IFRS)
1 H 2 5 I N T E R I M R E S U LT S – C A S H F L O W ( I F R S ) 29 (M IL LION USD ) YEAR TO DATE CHANGE CONCEPT 2025 2024 $ % CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 1,103.6 547.9 555.7 101.4 WORKING CAPITAL 191.9 (76.9) 268.8 N/A INCOME TAX, SPECIAL MINING RIGHTS AND PROFIT
Slide 30: Cash Flow (IFRS) with capex detail
1 H 2 5 I N T E R I M R E S U LT S – C A S H F L O W ( I F R S ) 30 (M IL LION USD ) YEAR TO DATE CHANGE CONCEPT 2025 2024 $ % CASH GENERATED BY OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 1,103.6 547.9 555.7 101.4 WORKING CAPITAL 191.9 (76.9) 268.8 N/A INCOME TAX, SPECIAL MINING RIGHTS AND PROFIT
Slide 31: Balance Sheet (IFRS)
1 H 2 5 I N T E R I M R E S U LT S – B A L A N C E S H E E T ( I F R S ) 31 Change (M IL LION USD ) Concept 30-JUN-25 31-DEC-24 % Assets Cash and Investments 1,823.0 1,297.8 40.5 Trade and Other Receivables 532.3 674.2 (21.0) Inventories 490.9 482.2 1.8 Prepaid Expenses 18.6 13.9 34.0 Silverstream 4
Slide 32: 2H25 Outlook
2H25 OUTLOOK O C TAVI O A LV Í D R EZ
Slide 33: Expected Attributable Production Profile
1 H 2 5 I N T E R I M R E S U LT S – E X P E C T E D AT T R I B U TA B L E P R O D U C T I O N P R O F I L E 33 Production guidance range +/- 5% Silver* Gold Million Oz Thousand Oz 60 700 50 600 500 40 400 30 300 20 200 10 100 0 0 Actual 2025 2026 2027 Actual 2025 2026 2027 2024 2024 Lead Thousand T
Slide 34: Capex Spend Expectations
1 H 2 5 I N T E R I M R E S U LT S – C A P E X S P E N D E X P E C TAT I O N S 34 Million Usd 600 4 485 505 480 500 • Total capex for 2025 for is expected to be 450 US$450m 400 370 300 • Potential project construction expenditures 200 not included 100 0 2023 2024 2025 2026 2027
Slide 35: Projects – Consolidated Outlook
1 2 1 H 2 5 I N T E R I M R E S U LT S – C O N S O L I D AT E D O U T L O O K 35 1 (1) Total annual average production Subject to pre-feasability and feasability assessment, final feasibility assessment and board approval
Slide 36: Concluding Remarks
1 H 2 5 I N T E R I M R E S U LT S – C O N C L U D I N G R E M A R K S 36 SAFETY IS A KEY OUTSTANDING H1 FOCUS ON COSTS AND STRONG RETURNS ADVANCING PRIORITY AS WE RE- PERFORMANCE, PRODUCTIVITY FOR OUR EXPLORATION AND DOUBLE EFFORTS DEMONSTRATING CONTINUES TO SHAREHOLDERS CONTINUED ACROSS OUR OPERAT
Slide 37: Appendix
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Slide 38: Exploration Update
2 0 2 5 I N T E R I M R E S U LT S – E X P L O R AT I O N U P D AT E 38 1H25 Highlights: • Exploration expense of US$76.7 million (a similar amount to Mine that invested in 1H24) Operations • Drilled a total of 359,268 metres, 82% of which was focused Development on brownfield target. Brownfields ex
Slide 39: Grade Expectations
G R A D E E X P E C TAT I O N S F O R 2 0 2 5 39 GOLD (G/T) MINE MINE TYPE FY 2025e FY 2024 Fresnillo Underground silver 0.60-0.70 0.92 Saucito Underground silver 0.90-1.10 1.40 Juanicipio Underground silver 1.20-1.40 1.25 San Julián (veins) Underground silver & gold 1.10-1.30 1.31 Ciénega Undergrou
Slide 40: Consolidated Cost Inflation YTD
1 H 2 5 I N T E R I M R E S U LT S – C O N S O L I D AT E D C O S T I N F L AT I O N Y T D 40 ( USD BASED) Consolidated Unit Price Weighted Increase % Weight (*) Average Labour Unionized Personnel -8.5% 9.6% -0.8% Employees -9.5% 5.4% -0.5% Weighted -8.8% Operating Materials 0.4% 17.5% 0.1% Energy E
Slide 41: Contribution by Mine and by Metal to Adjusted Revenues
1 H 2 5 I N T E R I M R E S U LT S – C O N T R I B U T I O N B Y M I N E A N D B Y M E T A L 41 TO AD JUS TED RE VEN UE S 1 H2 5 A DJ U ST E D R EV E NU E S 1 : US $ 1, 9 8 2. 9 M 1 2025 Adjusted Revenues : US$1,982.9 m By mine By metal Fresnillo Saucito Ciénega Herradura Silver Gold Noche Buena San
Slide 42: Cost per Tonne (IFRS)
1 H 2 5 I N T E R I M R E S U LT S – C O S T P E R T O N N E ( I F R S ) 42 * Cost per tonne is calculated as total adjusted production costs divided by total volume of ore processed. ** Cost per tonne excluding unproductive costs.
Slide 43: Cash Cost (IFRS)
1 H 2 5 I N T E R I M R E S U LT S – C A S H C O S T ( I F R S ) 43
Slide 44: All-in Sustaining Cost
1 H 2 5 I N T E R I M R E S U LT S – A L L I N S U S TA I N I N G C O S T ( U S $ / O Z ) 44
Slide 45: Income Statement and Cash Flow Highlights per Operating Unit
1 H 2 5 I N T E R I M R E S U LT S – I N C O M E S T AT E M E N T A N D C A S H F L O W H I G H L I G H T S 45 P E R O P E R AT I N G U N I T ACCUM JUNE 2025 C O N C E P T (Million Usd) Fresnillo Juanicipio San Julián Ciénega Saucito Herradura Noche Buena Consolidated ADJUSTED REVENUES 293.3 377.3 2
Slide 46: Notes
NOTES 46 4