Fresnillo plc’s Next Big Move — Will Brownfield Projects Unlock the Next Growth Wave?

Fresnillo presented its recent financial and operational results during the half-year call, providing a comprehensive overview of the company’s current standing and future outlook. The results show a significant improvement in several areas, though there are also challenges and risks that the company acknowledges. Financially, Fresnillo has demonstrated robust performance. The company reported that both gross profit and EBITDA exceeded $1 billion. Revenue gains were driven primarily by increased prices for gold and silver, rather than volume, with gold prices seeing a remarkable 42% increase. Despite challenges, such as the operational difficulties at San Julián Disseminated Ore Body mine, the company has effectively managed costs, benefitting from a favorable exchange rate and cost reduction initiatives. However, a major financial event was the buyback of the Silverstream contract from Peñoles. This resulted in a noncash loss of $133 million post-tax, affecting the profit for the period.