Fresnillo PLC Reports Record Profits Amid Rising Metal Prices

Fresnillo PLC, a leading mining company based in Mexico City, Mexico, has reported record profits for the first half of 2025. The company, which primarily explores for silver, gold, lead, and zinc, announced over $1 billion in gross profit and EBITDA. This significant financial performance is attributed to the rising prices of gold and silver, coupled with effective cost management strategies.

Fresnillo PLC operates several mines, including Fresnillo, Saucito, Cienega, Herradura, Noche Buena, and San Julian. The company also develops the Pyrites Plant and Herradura DLP, with advanced exploration projects such as Orisyvo, Juanicipio, Las Casas Rosario and Cluster Cebollitas, and Centauro Deep. Fresnillo holds mining concessions covering approximately 1.8 million hectares in Mexico and offers various services, including leasing mining equipment, producing dore bars, and providing administrative services.

The company, incorporated in 2007, is a subsidiary of Industrias Penoles S.A.B. de C.V. and trades on the London Stock Exchange. As of August 6, 2025, Fresnillo’s close price was 1738 MXN, with a 52-week high of 1673 MXN and a low of 502 MXN on September 4, 2024. The market capitalization stands at 13,350,000,000 MXN, with a price-to-earnings ratio of 96.89.

Strategic Acquisition: Los Coyotes Silver-Gold Project

In a strategic move, Fresnillo PLC has acquired the Los Coyotes silver-gold project located in Sonora, Mexico. The acquisition was made through a purchase and sale agreement with Orogen Royalties Inc., a subsidiary of Fresnillo. This acquisition adds to Fresnillo’s extensive portfolio of mining projects and underscores its commitment to expanding its operations in Mexico.

Investment Performance: A Look Back at Fresnillo’s Stock

Investors who purchased Fresnillo shares five years ago would have seen substantial returns. On August 5, 2020, Fresnillo shares were trading at 13.40 GBP. An investment of 10,000 GBP at that time would have resulted in 746.269 shares. With the closing price on August 4, 2025, at 14.34 GBP, the value of this investment would have significantly increased, highlighting the strong performance of Fresnillo’s stock over the past five years.

Market Overview: FTSE 100 and Fresnillo’s Performance

The FTSE 100 index, which includes Fresnillo PLC, has shown resilience with minimal changes recently. On August 8, 2025, the FTSE 100 was up by 0.06 percent, reaching 9,106.24 points. Fresnillo’s performance has contributed positively to the index, reflecting investor confidence in the company amidst a challenging market environment.

Overall, Fresnillo PLC’s strategic initiatives, coupled with favorable market conditions, have positioned the company for continued success in the metals and mining sector.