Gold-Silver Rally Triples Fresnillo Profit to US$1.46 Billion

Mining: Mexico City

A gold-silver rally powered sharp first-half gains at Mexico’s Industrias Peñoles and its Fresnillo unit, with Fresnillo’s profit roughly tripling even as mine output slipped.

Fresnillo’s Profit Roughly Triples

Fresnillo, the world’s largest primary silver producer, said first-half 2026 net profit jumped about 213% to US$1.46 billion, from US$467.6 million a year earlier, as surging precious-metals prices more than offset weaker output at its Mexican mines.

Revenue climbed 74.7% to US$3.38 billion, gross profit rose 130.7% to US$2.36 billion, and EBITDA more than doubled, up 113.2% to US$2.35 billion, lifting the EBITDA margin to about 69.5%.

The London-listed miner, whose operations are entirely in Mexico, called it a record interim performance. Its shares rose after the results.

Peñoles Rides the Same Metals Wave

Industrias Peñoles, the Mexican mining and metals group that controls about 72% of Fresnillo, reported the same tailwind in its own second-quarter results, with quarterly revenue nearly doubling and profit climbing sharply amid volatile precious-metals prices.

Because Fresnillo is Peñoles’ largest earnings contributor, the parent’s results move largely in step with its silver-and-gold unit. In the first quarter of 2026, Peñoles had already reported a 91.6% jump in revenue and a 258% rise in net profit.

Peñoles also runs the Met-Mex complex in Torreón, one of the world’s largest silver and gold refineries, giving it exposure to precious-metals prices across both mining and processing.

Why Silver and Gold Are Surging

Both metals climbed to record or multi-year highs in early 2026. Silver climbed to record highs near US$75 an ounce, while gold set fresh records, driven by safe-haven demand, central-bank buying and expectations of looser monetary policy.

For primary silver miners, the move is especially powerful because costs are relatively fixed. When prices rise faster than expenses, a large share of the extra revenue drops through to profit, magnifying earnings.

Silver’s dual role, part precious metal and part industrial input for solar panels and electronics, has added a structural demand story on top of the financial one.

Lower Output, Higher Earnings

The gains came despite falling production. Fresnillo’s silver output slipped 11.4% and gold fell 7.3% in the half, reflecting lower ore grades and reduced sales volumes across its Mexican operations.

Even so, the company produced 22.0 million ounces of silver and 290,900 ounces of gold in the six months, keeping its position as the top primary silver producer worldwide.

The divergence between weaker volumes and stronger profit underscores how completely price has dominated the precious-metals story in 2026.

Guidance, Expansion and What’s Next

Fresnillo reaffirmed full-year 2026 guidance of 42 million to 46.5 million ounces of silver and 500,000 to 550,000 ounces of gold, and trimmed expected capital spending to US$500 million-US$550 million, with exploration outlays of about US$260 million.

The results also reflect the financial flexibility behind Fresnillo’s January acquisition of Probe Gold, which added the Novador development project in Quebec and gave the company its first operating footprint outside Mexico.

For investors, the question now is how long the rally lasts. With output guidance steady, earnings from here will hinge largely on whether silver and gold hold their gains.

Frequently Asked Questions

How much did Fresnillo’s profit rise in the first half of 2026?

Net profit rose about 213% to US$1.46 billion, from US$467.6 million a year earlier, roughly tripling on higher gold and silver prices.

How is Peñoles related to Fresnillo?

Industrias Peñoles is the Mexican parent that owns about 72% of Fresnillo; Fresnillo is its largest earnings driver, so their results tend to move together.

What drove the earnings surge?

A rally in silver and gold prices to record or multi-year highs more than offset lower Mexican mine output, lifting revenue and profit at both companies.

Sources: MINING.com; Mexico Business News; Mining Weekly; AXIS Negocios.

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