Fresnillo plc (FRES) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

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 Alvidrez, CEO of Fresnillo, and this morning I'm joined by Mario Arreguin, our CFO, and Daniel Diez, 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 outlook. We then look forward to receiving your questions. So turning to the highlight for the first half. We delivered a strong operating performance in the first half, driven by consistent execution across our asset portfolio. Gold production showed strong sequential momentum, increasing 13.8% against the first quarter. However, as anticipated in our 2026 guidance, first half gold production decreased 7.3% year-on-year due to lower volume of ore process and recovery rate at Herradura. Our first half silver production reflects an anticipated year-on-year reduction primarily due to the planned end of the silver stream agreement alongside expected grade variability at Saucito and Juanisipio. We remain fully focused on managing costs in the face of continued inflation and moderation in the high price environment and the ongoing strength of the Mexican peso. Controllable costs rose by only 3.5% in first half 2026. Lastly, we continue to progress safety improvements, the priority of the group. We continue to see key injury and accident metrics trending downward with an ongoing commitment to zero fatalities. ...