2025 Fresnillo plc
Annual Report and Accounts 2025
We are the world's largest silver producer and Mexico's largest gold producer.
56
STRATEGIC REPORT
Performance highlights 1
Where we operate 2
Chairman's statement 4
Chief Executive's statement 7
Business model 10
Our strategy 12
Our markets 18
Our stakeholders 20
Section 172 statement 27
Workforce engagement 28
Review of operations 30
Financial review 47
Letter from the Chairman of the HSECR Committee
Sustainability at the core of our purpose 58
Independent practitioner's assurance report 118
Managing our risks and opportunities | 120 | |
Our purpose is to contribute to the wellbeing of people | 2025 Long-term viability statement Going concern statement | 143 145 |
through the sustainable mining of silver and gold. | Non-financial information statement | 146 |
It springs directly from how we operate as a business. | CORPORATE GOVERNANCE The Chairman's letter on Governance 2026 | 147 |
ensures that we deliver for all our stakeholders, | Governance at a glance Board of Directors | 149 150 |
including our teams, shareholders, local communities, | Executive Committee | 154 |
It guides everything we do and how we do it, and
suppliers, the authorities and the environment.
UK Corporate Governance code compliance statement
155
the same time, factors beyond our control have led to significant increases | Board performance review | 162 |
in the prices of precious metals. And we have been able to capitalise on | Nominations Committee report | 163 |
this positive tailwind. | Audit Committee report | 167 |
Director's Remuneration report | 180 | |
Together, our own efforts and the supportive market environment have | Fresnillo plc directors' report 2025 | 197 |
come together to generate an exceptional year for Fresnillo. | Statement of Directors' responsibilities | 201 |
However, there is no room for complacency. Recently, we have invested in | FINANCIAL STATEMENTS | |
order to expand our operations into exciting new territory and bolster our | Independent auditor's report | 202 |
already promising pipeline. In addition, our performance and cost | Consolidated income statement | 214 |
We have worked hard on factors within our control to boost performance and reduce costs - and as expected these measures have borne fruit. At
Board leadership and Company purpose 156
Board roles and responsibilities 160
reduction initiatives continue at pace - and these will help to underpin future performance regardless of external factors.
Consolidated statement of comprehensive income
215
Consolidated balance sheet 216
Consolidated statement of cash flows 217
Consolidated statement of changes in equity 218
Notes to the consolidated financial statements 219
Parent Company balance sheet 263
Parent Company statement of cash flows 264
Parent Company statement of changes in equity
Notes to the Parent Company financial statements
ADDITIONAL INFORMATION
Consolidated audited mineral resource statement for underground operational properties
Consolidated audited mineral resource statement for Sonora properties
Consolidated audited mineral resource statement of exploration projects and prospects
Consolidated audited ore reserve statement for underground operational properties
Consolidated audited ore reserve statement for Sonora properties
Audited mineral resources for the Juanicipio property
265
266
285
286
287
288
289
290
Audited ore reserves for the Juanicipio property 291
Operating statistics 292
Shareholder information 294
Find out more about us. Download this Annual Report at https://www.fresnilloplc.com
PERFORMANCE HIGHLIGHTS
Operational highlights
In 2025, we delivered solid production, underscoring our continued focus on consistency and resilience across the portfolio. Combined with a reduced cost base, this enabled us to capitalise on higher precious metals prices and deliver strong profitability for the year.
Attributable gold production Attributable gold resources Attributable gold reserves
600.3 koz (5.0%) 44.0 moz 14.3% 7.8 moz +7.4%
See pages 16-17 See pages 14-15 See pages 16-17Attributable silver production (Silverstream) Attributable silver resources Attributable silver reserves
48.7 moz (13.5%) 2,058.4 moz (8.5%) 362.6 moz 9.4 %
See pages 16-17 See page 14-15 See pages 16-17Electricity supply from renewable sources
77.8% 2024: 80.6%
See pages 16-17Financial highlights
Revenue Adjusted revenue1 Adjusted production costs2
USG4,561.2m 30.5% USG4,645.3m 27.6% USG1,406.7m (11.1)%
2024
2025 4,561.2
3,496.4
2025 4,645.3
2024
3,639.9
2025 1,406.7
2024 1,582.2
Cost of sales Gross profit EBITDA3
USG1,897.1m | (15.7%) | USG2,664.1m | 113.8% | USG2,796.2m | 80.7% |
2025 1,897.1 | 2025 2,664.1 | 2025 2,796.2 | |||
2024 2,250.1 | 2024 1,246.3 | 2024 1,547.3 | |||
Profit from continuing operations
Basic and diluted earnings per share, excluding post-tax Silverstream effects
USG2,292.5m 142.4% USG2.058 465.4%
2025 2,292.5
2024 945.8
2025 2.058
2024 0.364
For more information see pages 47-55Adjusted revenue is the revenue shown in the income statement adjusted to add back treatment and refining costs. The Company considers this a useful additional measure to help understand underlying factors driving revenue in terms of volumes sold and realised prices. The reconciliation of Adjusted revenue to revenue as shown in the income statement is provided on page 48.
Adjusted production costs are calculated as cost of sales less depreciation, profit sharing, change in inventories and unproductive costs. The Company considers this a useful additional measure to help understand underlying factors driving production costs in terms of the different stages involved in the mining and plant processes, including efficiencies and inefficiencies as the case may be, and other factors outside the Company's control such as cost inflation or changes in accounting criteria.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) is calculated as profit for the year from continuing operations before income tax, less finance income, plus finance costs, less foreign exchange gain/(loss), less revaluation effects of the Silverstream contract and other operating income plus other operating expenses and depreciation.
Fresnillo plc Annual Report and Accounts 2025
WHERE WE OPERATE
Our core operations are in Mexico, a country with significant geological resources and strongpotential for continued growth. We benefit from Mexico's skilled workforce and solid infrastructure, and we are proud to continue playing an important part in a rich mining tradition that stretches back more than 500 years. We maintain exploration offices in Chile and Peru, and we have recently expanded our presence into Canada following the acquisition of Probe Gold Inc.
OUR LOCATIONS
USA
Herradura
356.1 koz
Gold produced in 2025
Noche Buena
18.1 koz
Gold produced in 2025
Mexico
Mining operations Advanced exploration
Herradura
District San Julián
Orisyvo District
12.3 moz
Silver equivalent1
produced in 2025
Ciénega
5.8 moz
Silver equivalent1
produced in 2025
San Julián District
Ciénega District
Fresnillo District
Fresnillo
13.5 moz
Silver equivalent1
produced in 2025
Au: Ag ratio of 1:80.
Attributable.
Juanicipio 2
11.6 moz
Silver equivalent1
produced in 2025
Saucito
19.3 moz
Silver equivalent1
produced in 2025
Fresnillo plc Annual Report and Accounts 2025
Approximate mining concessions Total workforce
Annual contribution to Mexico's economy
1.3m HA 18,273 USG2,174m¹
KEY ASSETS
Operating mines | ||||||||
Asset | Ownership | Type | Main metal | EBITDA | Reserves (Silver) 4 | Reserves (Gold) 4 | Year 2 | Mine life |
|
Fresnillo | 100% Fresnillo plc | Underground | Silver primary | US$383.5m | 131.9 moz | 353 koz | 1554 | 9.8 years |
|
Saucito | 100% Fresnillo plc | Underground | Silver primary | US$602.5m | 119.5 moz | 509 koz | 2011 | 7.7 years |
Juanicipio | 56% Fresnillo plc 44% Pan American | Underground | Silver primary | US$706.9m | 74.1 moz | 529 koz | 2022 | 8.6 years |
Silver | ||||||||
|
San Julián | 100% Fresnillo plc | Underground | Silver primary | US$332.2m | 21.6 moz | 146 koz | 2016 | 3.3 years |
|
Ciénega | 100% Fresnillo plc | Underground | Gold/Silver | US$105.5m | 15.4 moz | 267 koz | 1992 | 4.0 years |
|
Herradura | 100% Fresnillo plc | Open pit | Gold | US$762.6m | 5,963 koz | 1997 | 11.4 years | |
|
Soledad-Dipolos 3 | 100% Fresnillo plc | Open pit | Gold | Excluded in 2025 | 2010 | - | ||
|
Noche Buena | 100% Fresnillo plc | Open pit | Gold | US$30.4m | - | 2012 | - | |
Total economic impact. This is considered to be a social performance measure. For more details see page 108.
Represents start of commercial production.
Operations at Soledad-Dipolos are currently suspended.
As of 30 April 2025.
Advanced exploration projects
Asset
Main metal
Resources (Silver) 5
Resources (Gold) 5
Orisyvo Gold
12.7 moz
9,575 koz
Guanajuato Silver/Gold
388.2 moz
3,393 koz
Rodeo Gold
24.5 moz
2,281 koz
Tajitos Gold
1,096 koz
As of 31 December 2025.
In addition, we have many further early-stage projects and prospects located in Mexico, Peru and Chile. The acquisition of Probe Gold Inc. in early 2026 also added several gold ore deposits at various stages of exploration in the Val-d'Or area of Canada.
For more on our exploration projects and prospects see pages 42-46
Fresnillo plc Annual Report and Accounts 2025
CHAIRMAN'S STATEMENT ALEJANDRO BAILLÈRES
Capitalising on today's opportunities, focusing on the future
This was an exceptional year for Fresnillo. Our efforts to boost performance and reduce costs bore fruit and enabled us to achieve production and efficiency targets, while a positive price environment drove a significant increase in revenue.
When we first looked ahead to 2025, our initial thoughts were that it could be challenging to surpass the achievements of 2024. However, a number of key factors came together during the year to generate one of the most rewarding periods in Fresnillo's history.
Our teams worked hard to address factors within our control, improving performance, reducing costs and achieving production goals. Meanwhile, external factors led to significant increases in the prices of precious metals - and we have been able to capitalise on this positive tailwind.
However, there is no room for complacency. Towards the end of the year we announced an important acquisition which has expanded our presence into an exciting new territory and bolstered our already promising pipeline. In addition, our performance and cost reduction initiatives continue at pace - and these will help to underpin future performance regardless of external factors.
Strong operational performance Production of silver and gold were again in line with guidance. In fact we exceeded our target for gold - with the team at Herradura continuing to execute our plans consistently and with great expertise. Silver production was towards the lower end of guidance, with performances above expectations at Juanicipio and San Julián Veins, while the recovery that began at Saucito in 2024 started to show positive signs.
We achieved US$4,645.3 million in Adjusted revenue during the year. This represented an increase of 27.6%, primarily due to the increase in silver
and gold prices. Gross profit increased 113.8% year-on-year to US$2,664.1 million, mainly driven by higher adjusted revenue and decreased costs, the latter primarily due to lower volumes processed at some of our operations, including at San Julián DOB following its closure, the devaluation of the average exchange rate between the Mexican peso and US dollar, and cost reduction initiatives and efficiencies.
These factors partially offset inflationary headwinds during the year. Cash and other liquid funds increased from US$1,297.8 million to US$2,756.5 million primarily driven by cash generated from our mining operations, which more than offset the use of funds in capital expenditure, dividend payments, taxes and mining rights. Please see pages 48 to 56 for further details on our financial performance.
Through the good times as well as those that prove more difficult, our dividend policy has remained stable and well-respected. It is the basis for continued shareholder returns while also supporting the growth of the company. We aim to pay out 33-50% of profit after tax each year, while making certain adjustments to exclude non-cash effects in the income statement.
Dividends are paid in the approximate ratio of one-third as an interim dividend and two-thirds as a final dividend.
Before declaring a dividend, the Board carries out a detailed analysis of the profitability of the business, underlying earnings, capital requirements and cash flow. Our goal is to maintain enough flexibility to be able to react to movements in precious metals prices and seize attractive business opportunities. During 2025, for example, our strong balance sheet and healthy cash position facilitated the proposal to acquire Probe Gold Inc.
The Board also considers paying special dividends in cases where we build up a large cash balance, considering any
A number of key factors came together during the year to generate one of the most rewarding periods in Fresnillo's history."
extraordinary needs for cash, such as the aforementioned acquisition, along with the outlook for metals prices and expected cash generation in future periods.
For 2025, we declared an interim ordinary dividend of 20.8 US cents per share, with a final ordinary dividend of 108.12 US cents per share, bringing the total for the year to
128.92 US cents per share.
Making the most of today's opportunities…
In my statement last year, I reported that cost reduction and operational initiatives had already had a beneficial impact, and I am pleased to say that this continued through 2025, and we have again succeeded in managing our costs while improving productivity.
Our efforts were significantly strengthened by a very positive price environment, which was a major factor in the year's financial performance. The price of gold hit all-time highs, while that for silver more than doubled, following an increase of 21 per cent in 2024.
However, while we met our production objectives during the year, we failed to succeed on the one measure that is unquestionably our most important: safety. Despite achieving our lowest TRIFR (total recordable injury frequency rate) and LTIFR (lost time injury frequency rate) since 2018, it is with great sadness that I must report two fatalities in 2025, one unionised employee and one contractor.
Fresnillo plc Annual Report and Accounts 2025
Everybody at Fresnillo recognises that we can - and indeed we must - do better.
…while focusing on the future
As expected, the political climate in Mexico has moved into more positive territory following the appointment of the government led by President Claudia Sheinbaum. Although clear direction is still required in some areas, such as permitting for mining activities, the new administration is proving to be broadly receptive to the business community. We are cautiously confident that this new mood will continue into 2026 and beyond, underpinning our continued commitment to the environment and supporting the development of the communities in which we operate.
Our future focus includes further cost reduction initiatives and operational efficiencies across the business, and these will be complemented by an exploration pipeline that is expected to yield at least one, and possibly more, projects that can move into our development portfolio within the next two to three years.
The pipeline was enhanced during 2025 by our move to acquire Probe Gold Inc., a leading Canadian exploration company focused on the acquisition, exploration, and development of highly prospective gold properties. Following extensive due diligence to ensure it had the potential to add considerable longterm value for our shareholders, we concluded the deal in January 2026 for an all-cash consideration of CAD$3.65 per share. The total equity value of the transaction was approximately CAD$770 million (approx. US$555 million) on a fully diluted basis.
The acquisition of Probe is consistent with the disciplined approach to M&A that we have consistently set out over time -including in my statement last year - and meets our strict criteria of having a sizeable resource base with upside optionality in a mining-friendly region with mining history, skilled personnel, and existing infrastructure. Exploration is in the DNA of both companies and we look forward to working closely together as we advance the exciting Novador project. The Fresnillo team has visited the Probe site on several occasions and has met directly with stakeholders including employees, First Nations representatives and local, provincial and federal authorities.
Board activities
Our regular Board meetings provide the opportunity for members to explore and discuss a wide range of issues that impact the business. These include operational
matters and the prevailing political landscape at home and abroad, amongst others. Key decisions this year have included the special dividend, the decision to end the Silverstream Agreement, and the agreement to acquire Probe. There was also considerable focus on safety, culture, the ERP system, cyber security and cost reduction.
As in previous years, one of the highlights of 2025 was the three-day Working Meeting in Mexico, which was held in July and provided a significant opportunity for the Board to engage with longer-term strategic and stakeholder issues. The meeting included a visit to Herradura, where we were able to see for ourselves the tremendous improvements that the local team has been implementing.
Changes to the Board
There were no Board changes during the year. As I explain more fully in my introduction to the Governance section on page 147, a number of significant developments for which the Audit Committee is responsible remain ongoing. The Nomination Committee has therefore proposed that at the 2026 AGM, Alberto Tiburcio (who was appointed to the Board in May 2016 and has chaired the Audit Committee since 2018) should again stand for re-election as an Independent Non-Executive Director for one further year.
In addition, the Board is recommending the re-election of Dame Judith Macgregor as an Independent Non-Executive Director at the 2026 AGM, notwithstanding that she will reach the ninth anniversary of her appointment to the Board soon after that AGM. In view of the other Board changes being made this year, we consider that it will be highly beneficial to the Company for her to serve one further year in her role as Senior Independent Director.
We will be consulting with shareholders concerning the proposed re-election of both Alberto and Dame Judith before publication of the notice of meeting for the 2026 AGM.
Outlook
Uncertainty will in all likelihood continue to be the watchword regarding global geopolitics, with ongoing conflicts such as the wars in Ukraine and the Middle East being exacerbated by heightened tensions between the US, China and Russia, along with developments in Venezuela that will have important implications for the whole region. We expect tariffs to remain a key issue for international trade, although these may
evolve to become more negotiated and targeted.
The acquisition of Probe Gold Inc. has expanded our presence into Canada, while we have also continued to pursue opportunities across the broader Western Hemisphere through our activities in Peru and Chile. However, Mexico remains central to our operations, and we will continue to engage proactively with the government there.
The new administration's more business-friendly approach has already had a positive impact on our industry, and we anticipate that this could further strengthen in the coming months.
In terms of our operations, our teams will again work hard to maintain and enhance the initiatives that have driven stable production and cost efficiencies in recent months. We will also focus on moving the most promising advanced exploration projects further along our pipeline.
We expect the high price environment for silver and gold to be maintained following the structural shift in prices seen in 2025. Advanced technologies, notably those around the energy transition, are underpinning sustained strength in silver prices. At the same time, ongoing global uncertainty is leading many investors to seek safe-haven assets, offering further support to both gold and silver prices. Looking ahead, demand is forecasted to continue to exceed supply.
I am confident that we have the people, the strategy and the determination to capitalise on the many opportunities that will be presented in the months and years to come. Following a year when Fresnillo recorded a set of exceptional results, our ambitions to continue to deliver on our promises - to meet expectations and where possible go beyond them - burn as brightly as ever.
I would like to end by putting on record my gratitude to all our stakeholders -including those working in the supply chain and in government, as well as local communities, investors and, of course, our talented workforce - for their support over the past 12 months.
Alejandro Baillères
Chairman
6
Strategic Report
Capitalising on today's opportunitiesWe worked hard on factors within our control to boost performance and reduce costs during 2025. These efforts led to a solid operational performance across the portfolio, with gold production exceeding the upper end of the guidance range and silver production delivered in line with guidance. At the same time, factors beyond our control, including geopolitical instability, have led to significant increases in the prices of precious metals -and we have been able to capitalise on the valuable opportunities that opened
up for us.
Together, our own efforts and the external environment have come together to generate an exceptional year for Fresnillo.
600.3 kozFor more details on our performance see pages 16-17
48.7 moz
Attributable gold production
Attributable silver production
Fresnillo plc Annual Report and Accounts 2025
CHIEF EXECUTIVE'S STATEMENT OCTAVIO ALVÍDREZ
Exceptional performance in a positive price environment
I am delighted to report on what was an outstanding year for Fresnillo, as we continued to execute our long-term strategy. The tremendous efforts of our teams were complemented by sustained high prices for precious metals, with gold in particular reaching all-time highs.
2025 saw our Company deliver strong operating and financial results.
Profitability increased on the back of our unrelenting focus on operational efficiencies supported by rigorous cost discipline and given added momentum by very favourable prices for precious metals. The outcome was the generation of substantial free cash
flow and a robust balance sheet with ample liquidity.
Our people again demonstrated their deep-seated commitment to the Company's Purpose to contribute to the wellbeing of people through the sustainable mining of silver and gold.
Their continuing dedication and expertise will be crucial in the years ahead, as a number of projects in our exciting pipeline move towards becoming operational mines.
At the same time, we must strengthen our safety performance. While most of our indicators continued to improve, two fatalities overshadowed that progress. These incidents are painful reminders that zero fatalities is the only acceptable outcome, and that our first and most important responsibility is to ensure the safety of our colleagues.
Production highlights and price review Total gold production was 600.3 koz, above our guidance range and, as expected, down by 5.0% from 631.6 koz in the previous year. This was primarily due to the lower ore grade and decreased ore throughput at Saucito and Fresnillo, as well as at Herradura, where performance nevertheless exceeded original plans.
Total silver production of 48.7 moz was towards the lower end of the guidance range, down by 13.5% from 56.3 moz in 2024. While the ongoing turnaround at Saucito has started to deliver the anticipated outcomes, there remain significant opportunities for further improvement. However, both production and ore grades were above plan at Juanicipio and San Julián Veins, helping to offset challenges elsewhere, including at Ciénega and Fresnillo.
Attributable by-product lead and zinc production decreased year-on-year, mainly due to the lower ore grade and volumes of ore processed at Fresnillo and the cessation of mining activities at San Julián DOB.
Please find more details on production at each of our mines on pages 30-41.During 2025, silver and gold prices increased markedly for the third consecutive year. The average realised silver price was US$43.6 per ounce, up by 51.4%, while the price of gold hit record highs, rising by 44.0% to US$3,532.7 per ounce during the year. Average prices for zinc increased by 3.2% while those for lead decreased by 5.3%.
Demand for silver and gold is continuing to outstrip supply, with the key drivers of demand indicating good levels of support for prices in the medium term. The world's increasing reliance on advanced technologies, particularly those associated with the energy transition, is a major factor in demand for both silver and gold. Silver is essential to a wide range of applications from electric vehicle batteries and solar panels to 5G telecommunications, and also in the food, medical and electronics sectors. Towards the end of 2025, the importance of silver was underlined when the US and Chinese governments officially categorised it as one of the world's essential metals.
The tremendous efforts of our teams were complemented by sustained high prices for precious metals."
Gold is a key component in consumer electronics as well as in rapidly growing areas such as the automotive, aerospace and high-speed computing industries. In addition, demand for gold - and increasingly also for silver - as a safe haven has remained robust, among central banks as well as individual investors.
Please see pages 18-19 for more details on prices and how they have been influenced by market dynamics.Executing our strategy
Our strategy has been well defined and consistently applied for many years. It is based on four strategic pillars that together enable us to maintain and, where possible, enhance our track record of seizing the opportunities of today while also preparing for the future.
Maximising the potential of existing operations
Improving the productivity and efficiency of our operational mines has been the subject of great focus over the last two to three years. While some of our operations are yet to fully achieve their targets, the trend is positive.
CHIEF EXECUTIVE'S STATEMENT CONTINUED OCTAVIO ALVÍDREZ
In last year's report, our Chief Operating Officers outlined a number of specific plans to deliver greater efficiency and cost control in their respective regions. In the Central Region, for example, a key task was to consolidate operations at Juanicipio, confirm the turnaround at Saucito and focus on greater control of the factors affecting ore grades at Fresnillo. Successful actions against the first and second of these priorities formed the basis for the region's silver production in 2025, with Juanicipio performing above plan. MAG Silver, our joint venture partner at Juanicipio, was acquired by Pan American during the year, and we have already started to work closely with them to ensure that Juanicipio continues to fulfil its outstanding potential.
At the Fresnillo mine, challenges are proving more complex to overcome. Although ore grades improved, we processed a lower volume of mineral during the year due to reduced contributions from deeper, narrower and more distant veins. However, the San Carlos shaft is now beginning to reduce haulage costs for the substantial amounts of ore we expect to mine from these areas in the coming years.
At our operations in the Northern Region of Mexico, several improvement initiatives have already paid dividends. Gold production at San Julián Veins increased due to a greater volume of ore processed, driven by the disciplined execution of plans to optimise plant operation. At Herradura, we have continued the transformation that began in 2024, controlling costs and focusing on planning and execution, including the recovery of gold content from the oxidised high-grade ore deposited at the leaching pads. Our plans to commence underground activities at Herradura have progressed well, with mining works expected to commence in 2026 and production set to follow early in 2027. We experienced challenges at Ciénega, where production decreased compared to 2024. Nevertheless, we remain confident in the mine's future, and expect cost control measures, operational efficiencies and a renewed exploration programme to successfully extend Ciénega's life beyond 2028.
Delivering growth through development projects
Although none of the projects discussed in the following section are yet quite ready to move out of the exploration phase and become standalone development projects, I look forward to reporting further progress in next year's Annual Report.
Extending the growth pipeline
We currently have five advanced exploration projects in our pipeline, an increase of one compared to this time last year.
A historic, world-class gold and silver epithermal vein field, our Guanajuato project stretches more than 40 kilometres along the central Mexican state from which it takes its name and is expected to make an important contribution to the Group's future silver production. During 2025, exploration concentrated on the southern part of the district where we drilled 107,759 metres. We continued to carry out scoping level studies as well as community engagement programmes which have already delivered access to key sections of land required for
the project.
We remain moderately confident in the potential of our underground gold project at Orisyvo, despite the significant capital expenditure on infrastructure - including roads, tailings storage facilities, accommodation camps and land access - required to bring it to fruition. Following a review at the end of 2025 into the results of pre-feasibility studies, we are identifying possibilities to improve the project's cost-effectiveness and anticipate presenting next stage proposals to the Board for approval in the second half
of 2026.
At Rodeo, an open pit, heap leaching gold project in central Durango state, we aim to finalise exploration activities in the first half of 2026. Over 5,000 metres have now been collared, proving good continuity of the ore bodies.
Results of a preliminary economic assessment are expected in mid-2026, giving us greater visibility of considerations including development layout, water and energy supply as well as key technical issues.
Exploration continued progressing at the Tajitos gold project. In 2025 the Mexican government began to grant permits for open pit mining, and this has removed a degree of uncertainty for the project, paving the way for the new preliminary economic assessment that we expect to conclude early in 2026.
We also made encouraging progress with our project at Lucerito during 2025, and this has now joined Guanajuato, Orisyvo, Rodeo and Tajitos in the advanced exploration project pipeline. More than 9,100 metres of drilling were carried out at Lucerito over the last 12 months, and we have good grounds to believe that the ore body there includes
extensive resources with a positive combination of gold, silver and zinc.
Our pipeline has been further enhanced by the acquisition, after the year end, of Probe Gold Inc. Probe's assets include the Novador Gold Project, as well as the early-stage Detour Gold project, both located in Quebec, Canada. In addition to providing us with strategic entry into a world-class Tier 1 mining jurisdiction, Probe adds a large resource base of 10 million ounces of gold. Novador alone has the potential to produce over 200,000 ounces per annum over 10+ years, and we are confident that this project, together with our advanced exploration projects in Mexico, will underpin Fresnillo's long-term future, further positioning us as one of the leading precious metals companies in the world.
Exploration continued across the portfolio during the year, with positive results yielded by brownfield exploration around the Fresnillo and San Julián districts and by greenfield drilling at Candameña, in addition to activities at those projects already mentioned. We also continued to make progress at our mining concessions in South America. In Chile, we completed 1,654 metres of drilling at Capricornio, a joint-venture project with SQM, while in Peru we drilled 2,058 metres at the Chiclayo project, with modest results, and strengthened our community
relations plan.
At the end of the year, silver in consolidated overall mineral resources decreased by 8.5% vs 2024 to 2.06bn oz. This was mainly due to the application of a new approach, in line with industry best practice, to classify mineral resources based on their expected future economic extraction. Although this initially reduces the reported resource base, it enhances transparency and strengthens long-term confidence in the estimates. Gold in consolidated overall mineral resources increased by 14.0% vs 2024 to 44.0 moz, primarily driven by the favourable impact of the higher price of gold at Herradura and the Lucerito exploration project.
Silver in consolidated overall ore reserves increased by 9.4% to 362.6 moz, mainly due to higher metals prices and a lower cut-off grade together with the addition of ounces through the infill campaign, primarily at the Fresnillo district. Gold in consolidated overall ore reserves increased by 7.4% to 7.8 moz as a result of the higher gold price, principally at Herradura.
Advancing and enhancing the sustainability of our operations Thanks to the commitment of our teams, we have achieved steady progress in our safety journey since
2018, with a 69% decrease in TRIFR (total recordable injury frequency rate) and 51% in LTIFR (lost time injury frequency rate). The last year alone saw those indices decrease by 17.6% and 13.7%, respectively. However, such progress cannot outweigh any loss of life. The two fatal accidents we experienced during the year-one involving a unionised employee and one a contractor-completely eclipse the gains. Our thoughts are with their families, friends and colleagues. These tragedies underline the fact that our work is far from finished: we can never be complacent about safety.
We have examined both incidents thoroughly and have begun to implement the appropriate corrective actions to support our goal of zero fatalities.
Although mining carries intrinsic risks, we have the systems, the training and the leadership to manage and mitigate them. Ultimately, however, safety requires every person to fully embrace their responsibility
-taking ownership not only of their own wellbeing, but also that of their colleagues. This principle is the foundation of our 'I Care, We Care' strategy.
As I reported last year, the new government administration has shown a greater openness to dialogue with the mining industry. These exchanges have reinforced that sustainability-related issues, including those most critical to local communities, are central in advancing Mexico's environmental and social policy agenda-from implementing the National Agreement for Forests, Jungles and Mangroves to
reducing GHG emissions by 35% by 2030 and safeguarding the fundamental right of access to water. On key sustainability matters such as these, Fresnillo has been - and will continue to be - a strategic partner.
On the decarbonisation front, we remain focused on sourcing 75% of our energy consumption from renewables. While we have consistently surpassed this target in recent years - including in 2025 - we recognise that it will become increasingly challenging as exploration projects transition into operation and demand more energy. We remain committed to ensuring that our environmental ambition keeps pace with our business growth
and that our energy supply remains reliable, competitive and grounded in clean sources.
We have decided to pause the dual fuel project at Herradura, which introduced several LPG-diesel trucks into the haulage fleet. Shifts in price and performance dynamics mean that, unless conditions change significantly, we will retire these units at the end of their operational life and either revert to a diesel fleet or explore other technologies, such as electric trucks.
Picture to come
Mining operations not only require large quantities of water but are also frequently situated in arid locations where the population is already experiencing a high degree of water stress. Over the years we have advanced a range of initiatives to reduce our water footprint and support infrastructure and sanitation for local communities. For example, in 2025 the Proaño Potabilisation Water Plant was inaugurated in partnership with the municipal government of Fresnillo. This project diverts and treats mine water from the Fresnillo mine to supplement the local potable water system.
Having exceeded our 2025 targets for the representation of women in both our total workforce and managerial positions a year ahead of schedule, we have now begun defining the next stage of our ambition. Inclusion is a great source of strength and essential for attracting and developing the best talent at a time when we are preparing for a new phase of growth - both within Mexico and beyond.
Please find more details about our extensive sustainability initiatives on pages 56-117Looking ahead
We have indicated that production of silver and gold from our current operations is expected to reduce in 2026, largely due to geological factors at our operating assets. The goal is to improve the quality of the ounces we produce by continuing to implement the wide range of initiatives introduced by Tomás Iturriaga and Daniel Diez, our Chief Operating Officers, to increase efficiency and reduce costs. At the same time, we will aim to move all five of the advanced exploration projects further along our pipeline. We believe that all of these projects show good potential - the goal now is to identify and promote those that are best suited to the current economic and operational situation, and I anticipate being able to provide a positive update in next year's Annual Report.
More generally, cost control will continue to be a focus in 2026, given cost pressures globally and the strength of the Mexican peso. On the other hand, we anticipate that our operational performance will be enhanced by the continuation of a high price environment for silver and gold, with global production failing to meet
the steady increase in demand for both metals.
Our optimism is based on experience and an understanding of both known and unforeseen challenges, which we address through careful planning, precise execution, and risk mitigation.
Finally, I would like to pay tribute to the fine work of our teams, who worked with great skill and determination to execute our strategy over the last 12 months. I thank them unreservedly. The exceptional results we have posted this year would not have been possible without them.
Octavio Alvídrez
Chief Executive
BUSINESS MODEL
Our ability to create value is underpinned by the quality of our assets, the capability of our people, operational performance, the mitigation of risks and disciplined capital allocation.
STRATEGIC RESOURCES AND RELATIONSHIPS
People
We rely on the skills, experience and commitment of our people to create sustainable value. Attracting, developing and retaining high-quality talent is fundamental to achieving our business objectives. We have a skilled workforce of 7,177 unionised workers and employees and 11,096 contractors who provided services along our full value chain during 2025, supported by an experienced and purpose-led leadership team.
Natural resources
Our operations rely on a range of natural resources, including surface land, water and energy.
1.3 million hectares in mining concessions in Mexico.
259 thousand hectares in Peru and 137 thousand hectares in Chile.
54,695 megalitres of reused water (efficiency of 83.5%).
77.8% of our electricity consumption comes from renewable sources.
Relationships with key stakeholders Our stakeholders include governments, communities, suppliers, customers, shareholders and our workforce. We maintain purposeful engagement with these stakeholders to understand the issues that matter to them, address them collaboratively, and gain their trust. We balance their priorities to ensure the social acceptance of our operations and maintain our licence to operate, enabling us to create shared value and achieve long-term success.
HOW WE OPERATE - OUR COMPETITIVE ADVANTAGE
Fresnillo is a leading precious metals mining company with a world-class portfolio of mining operations and undeveloped resources.
EXPLORE
DEVELOP
Through a disciplined and sustainable exploration strategy that invests across price cycles, we have built a proven track record of discovering world-class gold and silver mines. This success is driven by our highly regarded team of 95 geologists across Mexico, Peru, and Chile, supported by 84 specialists in claims management, land negotiation, safety, community relations, environmental control and administration. Our team also includes 340 assistants drawn from local communities.
Together, they operate with realistic budgets and are widely respected across the industry. The acquisition of Probe Gold Inc. early in 2026 further strengthened our exploration capabilities, expanding our geographic reach into Canada and enhancing our technical capabilities.
For more information see pages 42-46
We assess each potential operation against a set of strict criteria including risk, potential returns, and the long-term sustainability and value to our stakeholders. We only approve projects with the potential to create value across precious metals price cycles. Approved projects have the ability to optimise long-term productivity at minimal risk, drawing synergistic benefits from our district consolidation strategy while also creating opportunities for costs to be shared through our association with the Peñoles Group and members' common requirements across a number of service areas.
OPERATE
SUSTAIN
Through our commitment to sustainable business practices, we have built a portfolio of high-quality assets and ample mineral resources, sustained through continued investment in infrastructure and technological improvements. We consistently prioritise safe, environmentally responsible working practices and foster a high-performing culture that delivers production at competitive costs. We seek to enhance productivity by evolving our mining practices and optimising capacity and beneficiation processes.
For more information see pages 30-41
Responsible mining is integral to our business model. We embed ethical, social and environmental considerations into decision-making, uphold high standards of conduct, safety and governance, and engage closely with communities.
Grounded in a strong ethical culture and a deep understanding of local economies, cultures and communities, we are committed to creating shared value through our operations.
Sharing the benefits
Economic value distributed is considered to be a social performance measure.
Wages and benefits to workers (US$)
Wages and benefits to workers (US$)
For more information see
page 107
167.6m
1,580.2m
Relationships with key stakeholders continued
We are active members of several mining organisations and associations, where we use our influence to promote greater recognition of the advantages that mining brings to society. We believe that mining must be compatible withhigh stakeholder expectations in terms of ethical, social and environmental performance. Thisunderlines the importance of integrating responsible business practices deeply into our business model and considering factors that affect stakeholders at every critical decision-making level.
Financial strength
Our business is underpinned by a disciplined approach to capital allocation and strict cost controls. Our balance sheet is a key strength, providing a resilient platform to invest though cycles to generate sustained returns to shareholders.
Total equity of US$5,074.7 million.
Net cash1 of US$1,916.6 million.
Property and equipment
Our assets include properties, infrastructure, processing plants and mining equipment.
Net book value of property, plant and equipment of US$2,466.0 million.
Technology
We leverage smart technologies to address productivity, growth and sustainability challenges, drawing on the expertise of our partners to identify and implement innovative, effective solutions across our value chains.
1. Net cash (Cash and other liquid funds at 31 December 2025 - Debt at 31 December 2025).
OUR SUSTAINABILITY FRAMEWORK
STAKEHOLDERS
Doing business ethically and responsibly
Caring for our people
Building Trust
Partnering with our communities
Protecting the environment
For more information see
pages 62-63
Payments to Federal Government (US$)
416.6m
Payments to local governments (US$)
9.4m
Total economic impact (US$)
2,173.8m
OUR STRATEGY
Our Purpose is to contribute to the wellbeing of people through the sustainable mining of silver and gold.
We engage our people in our long-term strategy to instil a purpose-led culture where everybody understands how we do business. The values that are embedded in our culture support our strategy, inspiring winning behaviours on ethics, safety, innovation and operational excellence.
OUR CULTURE
Our culture is the cornerstone of our safe and successful operations, and is rooted in our core values of:
Trust
Responsibility and Respect
Integrity
Loyalty
Our culture shapes decisions and actions at every level of the organisation.
For more details see Our culture on pages 64-66
We have a structured internal risk management process in place to identify risks, while simultaneously considering the views and interests of our stakeholders. The accurate and timely identification, assessment and management of risks gives us a clear understanding of the actions required throughout the organisation in order to achieve our objectives. We ensure that our networks, systems and data are secure, in accordance with best practice.
Risk can manifest as opportunities or threats that can affect our business performance. We balance mitigating and monitoring our risks with maximising the potential reward.
For more information see Managing Our Risks and Opportunities pages 120-142
RISK MANAGEMENT
ROBUST CORPORATE GOVERNANCE
We recognise that good governance is an important enabler of a prudent and well-considered approach, ensuring that short-and long-term decisions consider the interests of the Group and those of our stakeholders. At the heart of our governance framework is the Board of Directors, consisting of non-independent and independent Non-Executive Directors who hold the Executive Management to account for the effective and sustainable operation of the Group's business. We adhere to the principles of the UK Corporate Governance Code and apply its Provisions in a way that, we believe, optimises the oversight exercised by the Board. We keep our governance structures under review and evolve them to meet the needs of the business. The Board and its Committees focus on strategy, evaluate financial and operational performance and monitor risks and controls on an ongoing basis to ensure that Fresnillo achieves its objectives in line with its Purpose and values.
For more details see Corporate Governance on pages 147-201
Our long-term strategic priorities
Maximise the potential of our operations
Drive improvements in productivity and efficiency across our portfolio.
Focus on the profitability of our mines.
OPERATE
Deliver profitable growth, optimise cash flow and returns
Continue advancing projects in the exploration pipeline towards development.
Identify two further world-class assets with the potential to complement our portfolio.
DEVELOP
Extend and maintain a robust growth pipeline
Continue to invest in our exploration pipeline.
Focus on drilling to increase total and indicated mineral resources in our advanced exploration projects.
Increase the resource base to drive future growth.
Increase gold resources to support reserves replacement at Noche Buena and Herradura.
Identify silver resources in the Fresnillo, Ciénega, San Julián and Guanajuato Districts.
Concentrate on identifying M&A targets in North and South America.
EXPLORE
We take a long-term view of our strategic priorities, which are supplemented with nearer-term targets and goals, as set out on pages 14-17.
Advance and enhance the sustainability of our business
Strengthen modern mining practices.
Empower people.
Address local and regional priorities.
Generate shared value.
SUSTAIN
FINANCIAL
Earnings per share excluding post-tax Silverstream revaluation effects This is calculated as attributable profit available to equity shareholders, excluding the revaluation effects of the Silverstream contract, divided by the weighted average number of shares in issue during the period. It measures net profit levels generated for equity shareholders.
EBITDA, EBITDA margin and cash flow from operating activities before changes in working capital
EBITDA is calculated as profit for the year from continuing operations before income tax, less finance income, plus finance costs, less foreign exchange gain/ (loss), less revaluation effects of the Silverstream contract and other operating income, plus other operating expenses and depreciation.
EBITDA margin is EBITDA divided by total revenue.
Both EBITDA and cash flow from operating activities before changes in working capital measure the Group's ability to generate cash from its core business.
EXPLORE
2025 Goals
Invest US$190 million in our exploration pipeline, focused on the Fresnillo and San Julián mines and advanced exploration projects.
Continue improving our grade control and reconciliation process to increase proven reserves.
Convert resources into reserves at all our operating mines.
Conclude preliminary economic assessment at Tajitos
Continue drilling campaign and progress critical technical work to determine economic viability at Rodeo.
Advance permitting and de-risking the Orisyvo and Guanajuato projects.
2025 Progress
US$176.1 million was invested in risk capital in exploration.
Proven reserves increased, driven by higher metals prices, lower cut-off grade, and the infill campaign.
Resources decreased, primarily driven by the implementation of the Reasonable Prospects for Eventual Economic Extraction (RPEEE) principle (see pages 42-46).
Evaluations completed for mine development, water and energy supply, mineral processing, and tailings storage facilities at Tajitos, with an updated Preliminary Economic Assessment expected in 1H26.
22,336 metres drilled at Rodeo to obtain sufficient samples for more detailed metallurgical investigations and to increase the resource base.
Several opportunities identified to optimise capex and operating costs at Orisyvo.
122,098 metres of core drilling completed at Guanajuato, while land acquisition, and mine development and mineral processing evaluations continued.
2026 Strategic priorities
Invest US$310 million in our exploration pipeline.
Continue enhancing confidence in our reserve and resource estimates.
Convert resources from the inferred to indicated category to enhance the generation of reserves at our operating mines.
Conclude preliminary economic assessment at Tajitos.
Conclude updated preliminary economic assessment at Rodeo.
Review options to optimise capex and operating costs at Orisyvo, to refine the pre-feasibility study.
Continue advancing conceptual studies to conduct a preliminary economic assessment at Guanajuato.
Allocate US$26 million to continue drilling at the Novador project in Canada.
DEVELOP
2025 Progress
There are no projects currently under development and additional work is required before our projects in the advanced exploration phase can become development projects.
2026 Strategic priorities
Monitor infrastructure projects to make sure they are developed in accordance with the mine plans.
Advance the Rodeo and Tajitos projects.
2025 Group KPIs/performance
Earnings per share excluding post-tax Silverstream revaluation effects
EBITDA and EBITDA margin
Cash flow from operating activities before changes in working capital
2,787.3m
2025
2,787
2,796.2m
2025
61.3%
2,796.2 61.3%
2.058
2025
2.058
(US$/share) (US$ and %) (US$)
2024 0.364
2023 0.310
2022 0.351
2021 0.572
2024 1,547.3
2023 655.7
2022 751.1
2021 1,206.3
44.3%
24.2%
30.9%
44.6%
2024 1,559.8
2023 649.3
2022 743.1
2021 1,208.3
Increased profits divided across an unchanged weighted average number of shares in issue.
Increased vs 2024 due to a higher gross profit. Increased vs 2024 due to the higher profits.
2025 Group KPIs/performance
Quantified, measured, indicated and inferred resources at all our assets; an indicator of the Group's growth potential and ability to discover and develop new ore bodies.
Attributable silver resources1 Attributable gold resources1
(millions of ounces) (millions of ounces)
2025
2,058.4
2024
2,250.5
,219.7
,203.9
2,319.70
2023 2
2022 2
2021
2025
44.0
2024
38.5
37.9
39.1
39.0
2023
2022
2021
2,058.4 44.0
Decreased primarily driven by the implementation of the Reasonable Prospects for Eventual Economic Extraction (RPEEE) principle, under which mineral resources are classified based on a realistic expectation of future economic extraction
(see page 45).
1 2025 resources from the mines are presented as of 30 April 2025. Resources from the exploration projects are presented as of 31 December 2025.
Increased, primarily due to the favourable impact of the higher price of gold at Herradura and the Lucerito exploration project.
OPERATE
2025 Goals
Prevent fatal or serious accidents.
Produce between 49-56 moz silver and 525-580 koz gold.
Continue our focus on initiatives to capture efficiencies and reduce costs.
Improve the short- and medium-term planning processes.
Maintain ore throughput and improve ore grades, primarily in the Fresnillo district.
Continue assessing optimisation projects and define implementation phases at Herradura.
Implement the mine closure plans at Noche Buena and San Julián DOB.
2025 Progress
Two fatal accidents during the year: a unionised employee at Ciénega; and a contractor at Juanicipio.
Produced 48.7 moz of silver (including Silverstream) and
600.3 koz of gold.
Achieved US$13.8 million in cost reduction initiatives and efficiencies, primarily at Herradura.
Cross-functional teams continued to work to improve the short- and mid-term planning process.
Reduced availability of equipment and increased corrective maintenance at Fresnillo and Saucito, along with a lower contribution from the San Ricardo area in the west area of the Fresnillo mine, impacted ore throughput.
Achieved cost reductions and improved mine cycles, delivering a solid performance at Herradura. The implementation phases have now been defined, with several optimisation projects currently being executed and others scheduled for future development.
Completed analysis and test work for a new sulphides crushing circuit and began construction of the Carbon-in-Column project at Herradura.
Mine closure plans continued (see pages 30-41).
2026 Strategic priorities
Prevent fatal or serious accidents.
Produce between 42-46.5 moz silver and 500-550 koz gold.
Continue our focus on initiatives to capture efficiencies and reduce costs.
Increase equipment utilisation and prepare areas in the eastern section of the Fresnillo mine.
Complete the interconnection of the Jarillas shaft at Saucito.
Conclude the construction of the underground conveyor belt at Juanicipio.
Complete engineering and start construction of sulphides crushing circuit and ADR plant at Herradura.
Conclude construction of the Carbon-in-Column project for dynamic leaching plants at Herradura.
SUSTAIN
2025 Goals
Reduce TRIFR and Fatality rate to the ICMM range by 2026.
Reduce freshwater consumption.
At least 75% of electricity consumption to be from renewable sources, by 2030.
Continue to implement the Tailings Management System.
2025 Progress
Reduced TRIFR to 6.26 but experienced two fatal accidents.
Decreased total water consumption by 4.2%, supported by a 16.5% decrease in freshwater consumption at the Fresnillo District - offset by an overall 1.7% increase in total freshwater consumption.
77.8% of electricity consumption from renewable sources.
Advanced implementation of the Tailings Management System to 70%.
2026 Strategic priorities
Reduce TRIFR to the ICMM range and achieve zero fatal accidents by 2026.
Reduce freshwater consumption.
At least 75% of electricity consumption to be from renewable sources, by 2030.
Finalise the implementation the Tailings Management System.
Further sustainability objectives are outlined in our Sustainability section on pages 62-63
Production: Monitors total production levels at our mines and contributions from advanced development projects.
2025 Group KPIs/performance
Attributable silver production Attributable gold production
48.7
2024
2023
2023
2022
1 48.7
54.3 2.0 56.3
53.5 2.8 56.3
51.1 2.7 53.8
50.0 3.1 53.1
47.6 1.
2025
(millions of ounces) (thousands of ounces)
2025
9
631.6
610.6
635.
2024
2023
2022
2021
600.3
600.3
Decreased vs 2024 mainly due to the cessation of mining activities at San Julián DOB; the lower ore grade, decrease in volume of ore processed, and lower recovery rate at Ciénega; and the lower contribution from the Silverstream.
The graph illustrates silver production from our own mines, with the shaded portion representing additional ounces accrued under the Silverstream contract.
751.2
Decreased vs 2024, but above guidance, primarily due to the lower ore grades and decreased volumes of ore processed at Saucito, Fresnillo and Herradura, and the lower contribution from Noche Buena.
Proven and probable reserves:
A measure of the quality of the Group's operating assets and our ability to extend the life of operating mines at profitable levels.
Attributable silver reserves1 Attributable gold reserves1
(millions of ounces) (millions of ounces)
362.6 7.8
2025 362.6 2025 7.8
2024
331.3
2023
356.6
2024
2023
7.2
7.1
2022
396.1
2022 8.2
2021 419.8
Increased primarily due to higher metals prices and a lower cut-off grade, and the addition of ounces through the infill campaign.
1 2025 reserves are presented as of 30 April 2025.
2021 7.8
Increased, mainly as a result of the higher price of gold, primarily at Herradura.
0.0189
2
6.26
2025 Group KPIs/performance
Fatalities | Greenhouse gas intensity | Total recordable injury frequency rate (TRIFR) |
(Number of fatal injuries to employees or contractors) | (Tonnes of CO2e per tonne of mineral processed) | (For every 1,000,000 hours worked) |
2025 | 2 | 2025 | 0.0189 | 2025 | 6.26 | |||||
2024 | 2 | 2024 | 0.0182 | 2024 | 7.59 | |||||
2023 | 4 | 2023 | 0.0248 | 2023 | 12.08 | |||||
2022 | 1 | 2022 | 0.0244 | 2022 | 10.26 | |||||
2021 | 1 | 2021 | 0.0232 | 2021 | 10.4 | 2 | ||||
Water intensity Renewable electricity
(m3 per tonne of mineral processed) (Percentage of renewable electricity
0.486
2025
0.360
0.126
77.8%
2025
2024
2023
2022
2021
77.8%
80.6%
53.3%
35.6%
49.7%
consumption)
2024 0.304 0.132
20230.287 0.103
2022 0.327 0.053
2021 0.377 0.056
Fresh water Waste water18
Strategic Report
OUR MARKETS
Capitalising on today's opportunities in a rapidly changing worldIn 2025, the global operating environment was increasingly shaped by a drive for strategic control over mineral assets as nations prioritised security over optimised global trade.
Silver and gold have both reasserted their roles as essential strategic assets, serving as anchors for monetary stability alongside technological and energy security.
Fresnillo plc Annual Report and Accounts 2025
Price milestones
GOLD
Gold price chart
(US$ per ounce)
3,445.35
Gold as a strategic asset Opportunities
Central banks in emerging markets have continued to increase gold allocations as a neutral reserve asset amid shifting global trade alliances.
Persistent global debt and currency fluctuations have reinforced gold's role as a primary hedge for both institutional and retail investors.
Renewed investor confidence has led to a significant recovery in gold-backed ETF holdings, providing a strong pillar of support for the price of gold.
Threats
Sustained performance in assets such as equities and digital currencies may divert capital away from gold as investors seek higher yields or alternative stores of value.
Significant price appreciation during the year may trigger tactical selling with profit taking and/or volatility if geopolitical tensions show signs of temporary de-escalation.
Potential economic downturns or trade disruptions or disputes could weaken industrial demand and impact the specialised supply chains for the use of gold in high-end electronics.
SILVER
Silver price chart
(US$ per ounce)
40.17
2025 40.17
2024 28.30
2023 23.40
2022 21.78
2021 25.14
Industrial and investment synergy
Opportunities
2025 marked another year where total demand outpaced supply, leading to a further depletion of global inventories and a structural market deficit.
The expansion of high-efficiency solar panel production and digital infrastructure has solidified silver's position as a key industrial component.
Improving sentiment suggests a continued market reassessment of silver's longterm value as an investment opportunity.
Threats
Sustained high prices have encouraged research into thrifting or substitution in some industrial applications, though performance requirements remain a significant barrier.
Silver's appeal as a portfolio diversifier could face increased competition for capital from traditional income-generating assets, such as bonds and equities, as well as from emerging digital and alternative asset classes.
Significant price appreciation during the year may trigger tactical selling with profit taking and/or volatility if geopolitical tensions show signs of temporary de-escalation.
Economic volatility or a global slowdown could dampen industrial fabrication, potentially reducing silver demand across the consumer electronics, automotive, and technology sectors.
highs as the market navigated consecutive
2025 was a landmark year for precious metals. Gold broke through historic barriers, surpassing US$4,000/oz for the first time, fuelled by consistent central bank accumulation and investment moving away from equities and into safe havens during a period of geopolitical instability. Silver followed a similar trajectory, reaching decade-
years of structural supply deficits.
Energy transition
2025 | 3,445.35 | |||
2024 | 2,389.70 | |||
2023 | 1,942.67 | |||
2022 | 1,802.37 | |||
2021 | 1,798.89 | |||
While solar energy remains the largest consumer of industrial silver, the expansion of AI datacentres has created significant new demand. The physical infrastructure required by the digital age, including high-speed connectors, advanced semiconductors, and power grids, now competes directly with the renewable sector for high-conductivity metals.
Cost inflation
While headline inflation in some sectors cooled in early 2025, mining input costs remained a pressure point. With interest rates remaining elevated, along with ongoing geopolitical uncertainties, margins have continued to come under strain. This environment has made efficiency a central focus for the sector, driving a broader shift towards the adoption of low-energy technologies and lean production models.
Labour shortages
Attracting and retaining a skilled workforce remains a challenge across the mining industry. There is a renewed emphasis on strategic upskilling, aimed at providing professional growth opportunities to retain existing people, while modernising the industry's image to attract a new generation of talent into long-term mining careers.
Government regulation
Governments have been navigating the friction between the desire for domestic economic growth and the complexities of a less globalised trade environment. There has been a more active use of tariffs and trade barriers as nations prioritise industrial resilience and local security over global supply chain integration. In 2025, the sector saw a notable increase in the speed of policy shifts as administrations sought to build self-sustaining economies while simultaneously addressing long-term environmental and social challenges. Thriving in this environment requires the ability to navigate these diverse and often conflicting national priorities while maintaining long-term development goals.
Advancements in technology
The mining industry continues to advance technological capabilities, aiming to build more resilient operating models that can reliably support the growing global demand for materials. A central focus is the expansion of automated systems, which are increasingly viewed as essential for sustaining long-term growth and improving productivity. Beyond output gains, these innovations are being leveraged to streamline maintenance cycles and elevate safety and environmental
standards.
OUR STAKEHOLDERS
BUILDING TRUST: RELATIONSHIPS WITH KEY STAKEHOLDERS
Our ability to deliver long-term value depends on earning and maintaining the trust of our stakeholders. Through meaningful engagement, we seek to understand expectations, manage impacts and make informed decisions that contribute to the wellbeing of people through the sustainable mining of silver and gold.
Why we engage
Engagement enables us to identify risks and opportunities early, understand stakeholder priorities and incorporate relevant perspectives into our decision-making. This supports the resilience of our business model, the continuity of our operations and the creation of shared value over the long term.
How we engage
We use a range of engagement mechanisms to gather direct and indirect feedback across our stakeholder groups. Insights from these interactions inform discussions and decisions at both Board and Executive Committee level. Information on principal decisions and stakeholder considerations are set
out on pages 156-157.
Who we engage
Our key stakeholder groups have been identified based on their influence on, and relevance to, the delivery of our strategy and business model. For each group, we consider:
Their relevance to our business model and strategic objectives.
Their key interests, expectations. and concerns.
The methods and frequency of engagement.
How engagement is embedded within management and governance processes.
The actions taken and outcomes achieved.
The metrics used to monitor the effectiveness of our relationships.
The principal risks that could affect those relationships.
The following panels highlights some of the different considerations that the Company takes into account in order to engage effectively with stakeholders:
EMPLOYEES AND UNIONS
Relevance
Skilled and engaged people drive our continued success.
Why we engage
To nurture a collaborative environment that motivates our workforce to shape our future.
The difference it makes
Long-term relationships enable us to build a robust pipeline of talent to progress our goals.
Read more on page 22
Relevance
Strong, mutually beneficial relationships foster long-term trust and shared prosperity.
Why we engage
To understand and address stakeholder priorities, fostering long-term wellbeing and resilience.
The difference it makes
Positive engagement secures vital support to pursue our ambitions, maintaining our licence to operate.
Read more on page 23
COMMUNITIES
Fostering collaborative and respectful relationships with policymakers for the common good, aligning key strategic priorities with the needs of communities.
CONTRACTORS AND SUPPLIERS
MINORITY SHAREHOLDERS
Relevance
Valued partners who provide essential expertise and support to our operations.
Why we engage
To ensure alignment with our safety standards and ethical business practices.
The difference it makes
A strong and responsible supply chain enhances safety, operational efficiency and sustainability.
Read more on page 25
Relevance
A strong and engaged investor base ensures financial stability and long-term value creation.
Why we engage
To foster transparency provide insights into our performance, and align our strategy with investor expectations.
The difference it makes Engagement strengthens confidence in our governance, enhances decision-making, and supports the long-term sustainability of our business.
Read more on page 26
GOVERNMENT
Relevance
Proactive, transparent and collaborative dialogue helps mitigate regulatory risks and secure longterm operational stability.
Why we engage
To align key strategic issues of importance to communities, local authorities and the mining industry.
The difference it makes Collaboration helps advance responsible mining practices, and contributes to economic growth through job creation, tax contributions and infrastructure development.
Read more on page 24
For more information, see the Sustainability at the core of our Purpose section on pages 56-117 and Managing our risks and opportunities section on pages 120-142.
EMPLOYEES AND UNIONSEngaging our internal stakeholders for the long term to instil a long-lasting culture where everybody understands our Purpose and how we do business.
How we engage with employees and unions
Management
Conduct workforce surveys to understand matters that are most relevant to employees, including organisational culture, ethics culture, safety culture (LEAL) and psychosocial risks.
Deploy leadership practices in the field to promote leadership by example and strengthen a preventive safety culture.
Provide safe and confidential channels to raise concerns, alongside training on their effective use (anonymous whistleblowing mechanisms and workplace conduct commissions).
Deliver thematic symposiums and conferences, in collaboration with the Union, focused on safety, operational improvement initiatives and the integration of women into the industry.
Hold quarterly committee meetings on priority topics to support strategy deployment (I Care, We Care Operational Committee; Labour Inclusion Committee).
Executive Committee and Board
The designated Non-Executive Director for workforce engagement holds periodic town hall style sessions and channels workforce perspectives to the Board.
During structured on-site working sessions, Board members interact with functional leaders, enabling them to gain first-hand insight that support their oversight duties.
Members of the Executive Committee maintain regular dialogue with union leadership on safety, productivity and collaboration.
What issues matter to our employees and unions
Ethics and integrity.
Health, safety and occupational wellbeing.
Security in the regions where we operate.
Training, upskilling and professional development.
Remuneration and compensation (including statutory profit-sharing).
Labour and Human Rights.
Preventing and addressing labour harassment.
Work-life balance.
Gender equality.
Improvement of services and facilities.
Outcomes from our engagement Decisions
Designed and launched the Transformational Human-Centred Leadership Programme to strengthen leadership capabilities.
Developed the safety operational plan for the period, focusing on improving the quality of leadership practices, standardising critical risks, reviewing and updating performance standards and implementing a safety standard for contractors.
Created the Mental Health Department.
Participated in Women in Mining (WIM) Mexico assessment at one of our mines.
Created the Labour Inclusion Committee to oversee the rollout of the updated DEI strategy.
Actions
Enhance operational discipline by intensifying efforts in safety awareness, training, and supervision.
Increase communication with union leaders and conduct reviews of contractual benefits.
Deliver safety training workshops for Union leadership.
Promote initiatives that enhance workforce wellbeing and healthier lifestyles.
Provide a comprehensive programme to prevent and address harassment in the workplace.
Roll out communication campaigns addressing critical matters preventive safety culture, ethics and integrity).
Outcomes
Increase in near-miss reporting.
Improved TRIFR and LTIFR.
Skills development for Union's local committee members, new employees, and aspiring leaders.
No work stoppages affecting our business continuity.
Steady increase of women in the workforce and in managerial positions.
Metrics
Fatal accidents, TRIFR and LTIFR.
New cases of occupational diseases.
Average training hours per person.
Turnover rate and voluntary turnover rate.
Gender diversity in the workforce, managerial positions and payment gap.
Ethical conduct and whistleblowing KPIs.
Associated principal risks
2 - Security
5 - Safety
9 - Union relations
10 - Human resources
For more information, please refer to the Managing our risks and opportunities section onpages 120-142
COMMUNITIESBuilding trust in the communities where we operate, acting ethically, being accountable for our impacts and sharing the benefits of mining.
How we engage with communities Management
Hold interviews with formal and informal leaders, as well as with local, regional and federal authorities.
Conduct social studies every two years to identify and assess issues that matter most to communities, as well as how the Company is perceived.
Operate grievance mechanisms to address the concerns and enquiries of local communities.
Executive Committee and Board
Executive Committee members meet with key government officials to establish agreements for long-term and high impact partnerships that could benefit communities.
What issues matter to our communities
Security.
Clean water access.
Quality education.
Public infrastructure and services.
Employment and procurement.
Transparency about the Company's local environmental footprint and risk management.
Land negotiations.
Outcomes from our engagement Decisions
Liaised with the Alberto Baillères Foundation for the participation of an education project in Caborca, Sonora.
Designed a pilot water initiative at San Julián, in partnership with Metals for Humanity, informed by local community water needs.
Actions
Collaborate with public health and local authorities to facilitate access to healthcare.
Partner with civil society and focus on social investment priorities.
Support regional employment and procurement.
Develop strategic programmes to strengthen collaboration with communities, create awareness, and mitigate social risks.
Implement water efficiency and recirculation to mitigate competition for natural resources.
Create partnerships or provide donations for projects that address communities' most pressing concerns (infrastructure, health and wellbeing, clean water, quality education, decent work and economic growth, and the protection of terrestrial ecosystems.
Outcomes
No non-technical delays affecting our business continuity.
Social investment portfolio.
Positive social perception.
Commencement of operations of the municipal potabilisation plant in Fresnillo, Zacatecas supplying mine water for domestic water supply.
Metrics
Economic value distributed.
Local employment and procurement.
Social investment.
Community grievances.
Energy and water-related performance KPIs.
Tailings storage facilities inventory.
Associated principal risks
2 - Security
6 - Access to land
11 - Licence to operate
13 - Climate change
14 - Tailings dams
15 - Environmental incidents
For more information, please refer to the Managing our risks and opportunities section onpages 120-142
GOVERNMENTCollaborative and respectful relations for the common good withpolicymakers and representatives of local, state andfederal government.
How we engage with governments and regulators
Management
Participate in meetings with federal authorities regarding changes to mining, energy and water regulation and participation in local economic development plans, through:
Trade associations such as the Mexican Mining Chamber (CAMIMEX) and state Mining Clusters.
Business associations such as the Mexican Confederation of Industrial Chambers (CONCAMIN), the Business Coordinating Council (CCE), and the Mexican Employers' Confederation (COPARMEX).
Sustainability associations such as the Mexican Chapter of the World Business Council for Sustainable Development (CESPEDES).
Participate in independent hearings with municipal, state and federal authorities for pending permits and authorisations.
Provide data-based sectorial information for consideration in policy making, underlining mining's contributions to the economy and providing greater understanding of the Company's operations.
Executive Committee and Board
The Executive Committee members hold meetings with authorities to:
Collaborate on the feasibility of potential new projects.
Establish agreements for longterm and high-impact partnerships.
Raise critical issues affecting our workforce and operations, ensuring government entities take appropriate action (security, regional stability, infrastructure).
What issues matter to governments and regulators
Accountability and transparency.
Sound health, safety and environmental performance.
Tax, royalties and other sources of contributions to local economies, such as employment and regional development.
Public policies, programmes and social benefits in communities where the Company operates.
Outcomes from our engagement Decisions
Subscribed to the National Agreement for Forests, Jungles and Mangroves to strengthen forest management.
Renewed collaboration with Sonora's Ecology and Sustainable Development Commission (CEDES) to continue supporting the conservation of the Sonoran pronghorn (Penmont).
Subscribed to agreement with the State Government of Chihuahua to promote economic and social development (San Julián).
Actions
Comply with laws and regulations.
Support regional employment and procurement.
Outcomes
Permanent security services, local operating and command centres for each business unit.
Partnerships or donations for projects that address communities' most pressing concerns (infrastructure, health and wellbeing, clean water, quality education, decent work and economic growth, and the protection of terrestrial ecosystems.
Commencement of operations of the municipal potabilisation plant in Fresnillo, Zacatecas supplying mine water for domestic water supply.
Metrics
Economic value distributed.
Social investment.
Local employment.
Health, Safety and Environment KPIs.
Associated principal risks
1 - Potential actions by governments
2 - Security
13 - Climate change
15 - Environmental incidents
For more information, please refer to the Managing our risks and opportunities section onpages 120-142
CONTRACTORS AND SUPPLIERSCollaborative partnerships with contractors and suppliers to improve productivity and safety.
How we engage with contractors and suppliers
Management
Monitor and evaluate performance (safety and operational).
Take part in regular engagement and capacity building through the 'I Care, We Care' initiative.
Involve contract owners in accident or incident investigations.
Participate in meetings.
Carry out surveys to better understand the issues that matter to our workforce (organisational climate, safety).
Hold focus groups with contractors to better understand our social performance in local communities.
Executive Committee and Board
Executive Committee members meet with key contractors to review and supervise production and safety performance.
What issues matter to contractors and suppliers
Productivity/development rates.
Health and safety in the workplace.
Security in the regions where we operate.
Labour and human rights.
Preventing and addressing harassment.
Ethics and integrity.
Outcomes from our engagement Decisions
Issued and rolled out the safety Contractor Standard.
Implemented quarterly contractor meetings to assess safety performance.
Intensified efforts in planning, risk analysis and control to ensure coverage of all possible risk scenarios.
Actions
Build the capacity of contractors to implement measures to prevent and address harassment, unethical practices, as well as to prevent and mitigate local community impacts.
Hold safety meetings between management and key business partners at each mining unit, addressing safety opportunities and cross-functional initiatives for implementation.
Monitor the security situation and maintain clear communication with contractors.
Enhance controls to assure contractors' compliance with tax and labour obligations.
Carry out due diligence procedures to verify the ethical profile of new contractors and suppliers, requiring endorsement of our Code of Conduct for Third Parties.
Engage with our supply chain on modern slavery risk prevention.
Outcomes
Corrective actions implemented to reinforce engineering control, personnel competencies and strengthen the accountability processes.
Training of contractor companies in the implementation of the mechanism to prevent labour harassment.
Reduction of contractor related community grievances.
Metrics
Fatal injuries.
Total Injury Frequency Rate.
Lost Time Injury Frequency Rate.
Gender diversity.
Contractor-related community grievances
Associated principal risks
5 - Safety
8 - Global macroeconomic developments
10 - Human resources
For more information, please refer to the Managing our risks and opportunities section onpages 120-142
MINORITY SHAREHOLDERSStrong and transparent relationships to invest through the cycles and generate sustained returns.
How we engage with minority shareholders
Management
Organise conference calls and roadshows.
Attend investment forums and conferences.
Hold private meetings.
Executive Committee and Board
The Company's Annual General Meeting (AGM) provides the opportunity for some Directors to meet in person with independent shareholders.
The Senior Independent Director engages directly with institutional investors.
The Executive Committee members meet with analysts, hold conference calls after production reports and engage with shareholders and potential investors in roadshows.
What issues matter to minority shareholders
Financial and operational performance.
Capex project execution.
Country risk uncertainty.
Board diversity.
Risk management.
Governance processes and Board structure.
Executive compensation.
Climate transition planning.
Mineral waste and water management.
Outcomes from our engagement Decisions
Supported a 2026 Business Plan and Budget that responsibly balances the operating performance targets.
Actions
Ensure minority shareholders' interests are considered in decision making.
Ensure that transactions with related parties are transparent and fully documented.
Report on Company performance and strategy in a transparent and timely fashion.
Outcomes
Declaration of a final dividend as well as an interim dividend in 2025.
Metrics
Financial and operational performance.
CEO Annual variable bonus.
Environmental, Social and Governance KPIs.
Associated principal risks
1 - Potential actions by governments
5 - Safety
10 - Human resources
13 - Climate change
14 - Tailings dams
15 - Environmental incidents
SECTION 172 STATEMENT
In compliance with sections 172 ('Section 172') and 414CZA of the UK Companies Act, the Board of Directors of the Company (the 'Board') makes the following statement in relation to the year ended 31 December 2025:
Precious metals play a vital role in advancing technology and science, both of which drive societal progress and improve quality of life. As a leading precious-metals company, Fresnillo plc (the 'Company') recognises the inherent environmental and social impacts of mining and is committed to addressing these responsibly, in line with its purpose: to contribute to the wellbeing of people through the sustainable mining of silver and gold.
The Company upholds high ethical and operational standards, ensuring that employees, contractors and business partners act in accordance with its corporate values. Through a culture that promotes integrity, safety and respect, the Company fosters an environment where responsible behaviour and sound judgement guide our everyday work.
These principles underpin the Company's reputation for accountability, build stakeholder confidence and lay the foundation for sustained value creation.
Recognising that long-term success depends on trust and collaboration, the Company engages with a diverse range of stakeholders - including employees and unions, contractors, local communities, government, and minority shareholders - to understand their priorities and areas of concern while integrating their perspectives to inform business outcomes. This engagement strengthens relationships and supports balanced and forward-looking management practices.
For more information, please refer to Building trust: Relationships with key stakeholders pages 20-26 Managing our risks and opportunitiespages 120-142.
Building on these insights, a periodic materiality assessment is carried out to help the Company identify and prioritise the sustainability issues most relevant to both its stakeholders and the long-term success of the business. This process ensures that decision-
making reflects external expectations as well as internal priorities, reinforcing the integration of key sustainability matters into strategic planning.
For more information, please refer to Materiality assessment page 61.These mechanisms inform oversight at the governance level. The Board of Directors integrates stakeholder considerations when reviewing Principal Decisions, particularly those with strategic, long-term or regulatory implications. The Board also maintains direct engagement with the workforce through its designated Non-Executive Director, enabling a continuous feedback process that promotes employee wellbeing and reinforces the Company's commitment to its people.
For more information, please refer to Board Activities pages 156-158.Workforce engagement page 28.
Recognising that sustainability is a defining factor in long-term value - the foundation of future performance rather than a reflection of past results - the Board identifies sustainability as a
strategic priority. Sustainability issues continue to attract growing attention from society, investors and regulators, and have therefore become a standing focus of Board activities.
For more information, please refer to: Board leadership and Company purpose pages 156-158. Workingmeeting page 159.
The HSECR Committee assists the Board in its monitoring of the systems that are in place to better manage issues and risks associated with health, safety, wellbeing, environment and community development. Effective management of these areas helps protect people, and their livelihoods, as well as the environment, contributing to the Company's long-term performance.
For more information, please refer to: Letter from the Chairman of the HSECR Committee pages 56-57.Sustainability at the core of our purpose pages 58-117.
This integrated approach - anchored in purpose, ethical foundations, robust governance and responsible business practices - ensures that the Board is able to evaluate the long-term consequences of its decisions on all stakeholders.
Approved by the Board of Directors on 2 March 2026.
WORKFORCE ENGAGEMENT
Our sustained, long-term performance is built on the discipline, commitment, and adaptability of our teams.
The Company values a culture that empowers everyone to improve and contribute at their best.
Supporting our people means ensuring that their perspectives shape our operations. We use defined channels for workforce engagement, outlined in the diagram below. These include periodic Engagement Surveys (see Our Culture on pages 64-66) and direct input from Non-Executive Director Mr. Arturo Fernández, our designated Director for workforce engagement.
In 2025, Mr. Fernández conducted three virtual sessions with personnel from the Exploration division and the San Julián and Ciénega mines, bringing together a diverse group of unionised and non-unionised employees from various backgrounds and roles. The sessions built trust, fostered empathy, and encouraged transparency by addressing employees' concerns and identifying ways to enhance workplace satisfaction.
Participants expressed great pride in working for the Company and a clear desire to grow and contribute further. However, all sessions produced unanimous feedback regarding:
A strong interest in training, upskilling opportunities, and professional development, particularly in technical areas.
The desire for improvement of some services and facilities to enhance employees' quality of life.
Based on this and previous feedback, the Company has initiated actions to address key concerns, including ongoing efforts to strengthen organisational culture and wellbeing. These actions fall into three categories: Organisational Culture, Career Development, and Everyday Working Conditions and Wellbeing.
Reinforcing organisational culture: Feedback indicated the need to consistently model the desired leadership approach, improve supervisory communication with frontline teams, and provide a higher standard of facilities and services across exploration camps.
Setting clear expectations for career development: Employees want more
transparent growth pathways. Key actions include reviewing competency frameworks and ensuring assignments align with appropriate pay scales.
Strengthening focus on everyday working conditions and wellbeing: Feedback emphasised the need to improve daily workplace experiences, such as expanding transportation routes, upgrading canteen options and nutrition, and encouraging recreational activities, including sports leagues and modernised on-site facilities.
Insights from these sessions continue to inform ongoing and future discussions, influencing decision-making and ensuring workforce perspectives are integrated into strategy and operations. This process helps us identify areas for improvement and foster a positive, productive work environment. By addressing workforce concerns and aligning initiatives with shared goals, the Company upholds its values and strengthens engagement and motivation, both of which are essential to long-term success.
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Fresnillo plc published this content on April 17, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 17, 2026 at 22:21 UTC.
