Capitalising on today's
opportunities, focusing
on the future
2025 Fresnillo plc
Annual Report and Accounts 2025
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
56
Sustainability at the core of our purpose 58
Independent practitioner’s assurance report 118
Managing our risks and opportunities 120
2025 Long-term viability statement 143
Going concern statement 145
Non-financial information statement 146
CORPORATE GOVERNANCE
The Chairman’s letter on Governance 2026 147
Governance at a glance 149
Board of Directors 150
Executive Committee 154
UK Corporate Governance code compliance
statement
155
Board leadership and Company purpose 156
Board roles and responsibilities 160
Board performance review 162
Nominations Committee report 163
Audit Committee report 167
Director’s Remuneration report 180
Fresnillo plc directors’ report 2025 197
Statement of Directors’ responsibilities 201
FINANCIAL STATEMENTS
Independent auditor’s report 202
Consolidated income statement 214
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
265
Notes to the Parent Company financial
statements
266
ADDITIONAL INFORMATION
Consolidated audited mineral resource
statement for underground operational
properties
285
Consolidated audited mineral resource
statement for Sonora properties
286
Consolidated audited mineral resource
statement of exploration projects and
prospects
287
Consolidated audited ore reserve statement
for underground operational properties
288
Consolidated audited ore reserve statement
for Sonora properties
289
Audited mineral resources for the Juanicipio
property
290
Audited ore reserves for the Juanicipio property 291
Operating statistics 292
Shareholder information 294
We are the world’s
largest silver producer
and Mexico’s largest
gold producer.
Our purpose is to contribute to the wellbeing of people
through the sustainable mining of silver and gold.
It springs directly from how we operate as a business.
It guides everything we do and how we do it, and
ensures that we deliver for all our stakeholders,
including our teams, shareholders, local communities,
suppliers, the authorities and the environment.
Find out more about us.
Download this Annual Report at
www.fresnilloplc.com
We have worked hard on factors within our control to boost performance
and reduce costs – and as expected these measures have borne fruit. At
the same time, factors beyond our control have led to significant increases
in the prices of precious metals. And we have been able to capitalise on
this positive tailwind.
Together, our own efforts and the supportive market environment have
come together to generate an exceptional year for Fresnillo.
However, there is no room for complacency. Recently, we have invested in
order to expand our operations into exciting new territory and bolster 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.
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 16-17
Attributable 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 16-17
Electricity supply from renewable sources
77.8%
2024: 80.6%
See pages 16-17
Financial highlights
Revenue Adjusted revenue
1
Adjusted production costs
2
US$4,561.2m
30.5%
US$4,645.3m
27.6%
US$1,406.7m
(11.1) %
Cost of sales Gross profit EBITDA
3
US$1,897.1m
(15.7%)
US$2,664.1m
113.8%
US$2,796.2m
80.7%
Profit from continuing operations
Basic and diluted earnings per share,
excluding post-tax Silverstream effects
US$2,292.5m
142.4%
US$2.058
465.4%
For more information
see pages 47-55
1. Adjusted 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.
2. 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.
3. 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.
1
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.
4,561.2
3,496.4
2025
2024
4,645.3
3,639.9
2025
2024
1,406.7
1,582.2
2025
2024
1,897.1
2,250.1
2025
2024
2,664.1
1,246.3
2025
2024
2,796.2
1,547.3
2025
2024
2,292.5
945.8
2025
2024
2.058
0.364
2025
2024
Fresnillo plc Annual Report and Accounts 2025
Our core operations are in Mexico, a country with significant geological resources and
strong potential 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.
2
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
WHERE WE OPERATE
Ciénega
District
Fresnillo
District
San Julián
District
Orisyvo
District
Herradura
District
San Julián
12.3 moz
Silver equivalent
1
produced in 2025
Saucito
19.3 moz
Fresnillo
13.5 moz
Silver equivalent
1
produced in 2025
Silver equivalent
1
produced in 2025
Juanicipio
2
11.6 moz
Silver equivalent
1
produced in 2025
Ciénega
5.8 moz
Silver equivalent
1
produced in 2025
Noche Buena
18.1 koz
Gold produced in 2025
Herradura
356.1 koz
Gold produced in 2025
OUR LOCATIONS
Mexico
USA
Mining operations
Advanced exploration
1. Au: Ag ratio of 1:80.
2. Attributable.
Approximate mining concessions Total workforce
Annual contribution to Mexico’s
economy
1.3m HA 18,273 US$2,174m¹
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
Silver
Underground Silver primary US$706.9m 74.1 moz 529 koz 2022 8.6 years
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 –
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
5. As of 31December 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
3
Fresnillo plc Annual Report and Accounts 2025
1. Total economic impact. This is considered to be a social performance measure. For more details see page 108.
2. Represents start of commercial production.
3. Operations at Soledad-Dipolos are currently suspended.
4. As of 30 April 2025.
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
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.
4
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
Capitalising on today’s
opportunities, focusing on
the future
CHAIRMAN'S STATEMENT
ALEJANDRO BAILLÈRES
A number of key factors
came together during the
year to generate one of the
most rewarding periods in
Fresnillo's history.”
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 long-
term 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
5
Fresnillo plc Annual Report and Accounts 2025
6
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
We 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.
Capitalising
on today’s
opportunities
600.3 koz
Attributable gold production
48.7 moz
Attributable silver production
For more details on our
performance see pages 16-17
The tremendous efforts of our
teams were complemented by
sustained high prices for
precious metals.”
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.
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.
7
Fresnillo plc Annual Report and Accounts 2025
CHIEF EXECUTIVE’S STATEMENT
OCTAVIO ALVÍDREZ
Exceptional performance
in a positive price
environment
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.
8
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
CHIEF EXECUTIVE’S STATEMENT CONTINUED
OCTAVIO ALVÍDREZ
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.
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 56-117
Looking 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
9
Fresnillo plc Annual Report and Accounts 2025
Picture to come
10
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
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.
BUSINESS MODEL
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
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.
OPERATE
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.
SUSTAIN
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.
DEVELOP
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
serviceareas.
For more information see pages 30-41
For more information see
page 107
Sharing the benefits
Economic value distributed is considered to be a social performance measure.
Wages and benefits to workers (US$)
167.6m
Wages and benefits to workers (US$)
1,580.2m
For more information see pages 42-46
11
Fresnillo plc Annual Report and Accounts 2025
1. Net cash (Cash and other liquid funds at 31 December 2025 – Debt at 31 December 2025).
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
with high stakeholder expectations in terms of
ethical, social and environmental performance.
This underlines 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 cash
1
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$2,466.0 million.
Technology
We leverage smart technologies to
address productivity, growth and
sustainability challenges, drawing on
the expertise of our partners to identify
and implement innovative, effective
solutions across our value chains.
STAKEHOLDERS
Building Trust
Doing business ethically and responsibly
Caring for our people
Partnering with our communities
Protecting the environment
For more information see
pages 62-63
Payments to local governments (US$)
9.4m
Total economic impact (US$)
2,173.8m
Payments to Federal Government (US$)
416.6m
OUR SUSTAINABILITY FRAMEWORK
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.
12
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
OUR STRATEGY
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.
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.
RISK MANAGEMENT
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 details see Our culture
on pages 64-66
For more information see Managing Our Risks
and Opportunities pages 120-142
For more details see Corporate
Governance on pages 147-201
Our long-term strategic priorities
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.
EXPLORE
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.
DEVELOP
Deliver profitable growth,optimise cash flowand
returns
• Continue advancing projects in the exploration
pipeline towards development.
• Identify two further world-class assets with the
potential to complement our portfolio.
.
OPERATE
Maximise the potential of our operations
• Drive improvements in productivity and efficiency
across our portfolio.
• Focus on the profitability of our mines.
SUSTAIN
Advance and enhance the sustainability
of our business
• Strengthen modern mining practices.
• Empower people.
• Address local and regional priorities.
• Generate shared value.
13
Fresnillo plc Annual Report and Accounts 2025
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.
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$26 million to continue
drilling at the Novador project in
Canada.
2025 Progress
• There are no projects currently under
development and additional work is
required before our projects in the
advanced exploration phase can
become development projects.
2026 Strategic priorities
• Monitor infrastructure projects to
make sure they are developed in
accordance with the mine plans.
• Advance the Rodeo and Tajitos
projects.
14
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
OUR STRATEGY CONTINUED
FINANCIAL
EXPLORE
DEVELOP
2,787.3
1,559.8
649.3
743.1
1,208.3
2,796.2
1,547.3
655.7
751.1
1,206.3
2.058
0.364
0.310
0.351
0.572
2025 Group KPIs/performance
Earnings per share excluding post-tax
Silverstream revaluation effects
EBITDA and
EBITDA margin
Cash flow from operating activities
before changes in working capital
(US$/share)
(US$ and %) (US$)
2.058
2,796.2m
61.3%
2,787.3m
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 resources
1
Attributable gold resources
1
(millions of ounces)
(millions of ounces)
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).
Increased, primarily due to the favourable impact of
the higher price of gold at Herradura and the Lucerito
exploration project.
1 2025 resources from the mines are presented as of
30 April 2025. Resources from the exploration
projects are presented as of 31December 2025.
15
Fresnillo plc Annual Report and Accounts 2025
2022
2021
2023
2024
2025
2023
2022
2021
2024
2025
2023
61.3%
44.3%
24.2%
30.9%
44.6%
2,058.4
2,250.5
2,219.7
2,203.9
2,319.70
2022
2021
2024
2025
2023
44.0
38.5
37.9
39.1
39.0
2022
2021
2024
2025
2023
2022
2021
2024
2025
2023
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
600.3koz 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.
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
16
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
OUR STRATEGY CONTINUED
OPERATE
SUSTAIN
0.0189
0.0182
0.0248
0.0244
0.0232
0.360
0.304
0.287
0.327
0.377
0.126
0.132
0.103
0.053
0.056
Fresh water
Waste water
2
2
4
1
1
6.26
7.59
12.08
10.26
10.42
77.8%
80.6%
53.3%
35.6%
49.7%
Production: Monitors total production
levels at our mines and contributions
from advanced development projects.
2025 Group KPIs/performance
Attributable silver production Attributable gold production
(millions of ounces) (thousands of ounces)
48.7
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
ownmines, with the shaded portion representing
additional ounces accrued under the
Silverstreamcontract.
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 reserves
1
Attributable gold reserves
1
(millions of ounces) (millions of ounces)
362.6
7.8
Increased primarily due to higher metals prices and a
lower cut-off grade, and the addition of ounces
through the infill campaign.
Increased, mainly as a result of the higher price of
gold, primarily at Herradura.
1 2025 reserves are presented as of 30 April 2025.
2025 Group KPIs/performance
Fatalities Greenhouse gas intensity
Total recordable injury frequency
rate (TRIFR)
(Number of fatal injuries to employees or contractors) (Tonnes of CO
2
e per tonne of mineral processed) (For every 1,000,000 hours worked)
2
0.0189
6.26
Water intensity Renewable electricity
(m
3
per tonne of mineral processed) (Percentage of renewable electricity
consumption)
0.486
77.8%
17
Fresnillo plc Annual Report and Accounts 2025
7.8
7.2
7.1
8.2
7.8
2022
2021
2024
2025
2023
362.6
331.3
356.6
396.1
419.8
2022
2021
2024
2025
2023
2022
2021
2024
2025
2023
2022
2024
2025
2023
2022
2021
2024
2025
2023
2022
2021
2024
2025
2023
2022
2021
2024
2025
2023
2021
600.3
631.6
610.6
635.9
751.2
2022
2021
2024
2025
2023
47.6
54.3
53.5
51.1
50.0
1.1
2.0
2.8
2.7
3.1
48.7
56.3
56.3
53.8
53.1
2023
2022
2024
2025
2023
18
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
Capitalising
on today's
opportunities
in a rapidly
changing world
In 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.
OUR MARKETS
19
Fresnillo plc Annual Report and Accounts 2025
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.
3,445.35
2,389.70
1,942.67
1,802.37
1,798.89
2022
2021
2024
2025
2023
SILVER
Silver price chart
(US$ per ounce)
40.17
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 long-
term 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.
40.17
28.30
23.40
21.78
25.14
2022
2021
2024
2025
2023
Price milestones
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-
highs as the market navigated consecutive
years of structural supply deficits.
Energy transition
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.
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:
20
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
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.
OUR STAKEHOLDERS
BUILDING TRUST: RELATIONSHIPS WITH KEY STAKEHOLDERS
EMPLOYEES
AND UNIONS
COMMUNITIES
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.
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 23Read more on page 22
21
Fresnillo plc Annual Report and Accounts 2025
Fostering collaborative
and respectful
relationships with
policymakers for the
common good, aligning
key strategic priorities
with the needs of
communities.
CONTRACTORS AND
SUPPLIERS
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
GOVERNMENT
Relevance
Proactive, transparent and
collaborative dialogue helps mitigate
regulatory risks and secure long-
term 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
MINORITY
SHAREHOLDERS
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
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.
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
22
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
OUR STAKEHOLDERS CONTINUED
BUILDING TRUST: RELATIONSHIPS WITH KEY STAKEHOLDERS
EMPLOYEES
AND UNIONS
Engaging our internal stakeholders for the long term
to instil a long-lasting culture where everybody
understands our Purpose and how we do business.
For more information, please refer
to the Managing our risks and
opportunities section on
pages 120-142
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
23
Fresnillo plc Annual Report and Accounts 2025
Building trust in the communities where we operate,
acting ethically, being accountable for our impacts and
sharing the benefits of mining.
COMMUNITIES
For more information, please refer
to the Managing our risks and
opportunities section on
pages 120-142
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 long-
term 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
24
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
OUR STAKEHOLDERS CONTINUED
BUILDING TRUST: RELATIONSHIPS WITH KEY STAKEHOLDERS
GOVERNMENT
Collaborative and respectful relations for the common
good with policymakers and representatives of local,
state and federal government.
For more information, please refer
to the Managing our risks and
opportunities section on
pages 120-142
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
25
Fresnillo plc Annual Report and Accounts 2025
CONTRACTORS
AND SUPPLIERS
Collaborative partnerships with contractors and suppliers
to improve productivity and safety.
For more information, please refer
to the Managing our risks and
opportunities section on
pages 120-142
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
26
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
OUR STAKEHOLDERS CONTINUED
BUILDING TRUST: RELATIONSHIPS WITH KEY STAKEHOLDERS
MINORITY
SHAREHOLDERS
Strong and transparent relationships to invest through
the cycles and generate sustained returns.
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 opportunities
pages 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. Working
meeting 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.
27
Fresnillo plc Annual Report and Accounts 2025
SECTION 172 STATEMENT
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.
28
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
WORKFORCE ENGAGEMENT
29
Fresnillo plc Annual Report and Accounts 2025
Despite our excellent financial
performance in 2025, we know there is no
room for complacency – and we are
always striving to ensure a stronger and
more sustainable future that delivers
maximum long-term value for our people,
our communities and our shareholders.
For example, we are continuing to keep a
close eye on costs across the business.
And in the early months of 2026, we were
also delighted to complete the acquisition
of Probe Gold Inc. – a deal that not only
takes Fresnillo into an exciting new
country but also fully meets our strict
criteria for M&A. These include a sizeable
resource base with upside optionality in a
region with established mining history,
skilled personnel and existing
infrastructure.
At the same time, our robust cash position
will continue to fund improvements at our
existing mines while advancing our key
projects and exploration ambitions -
underpinning future performance
regardless of external factors.
Focusing
on the future
US$2,756.5m
Cash and other liquid funds
For more details on our performance
see pages 14-17
10m oz gold
Probe's estimated resource base
Fresnillo
One of the world’s longest continuously operated mines, Fresnillo produced 21.1% of
the Group’s total silver in 2025 and generated 15.9% of total Adjusted revenue.
2025 Objectives Comment
Decrease dilution.
PA
See: Mine production and key developments below.
Improve short and mid-term planning processes.
PA
See: Mine production and key developments below.
Continue to focus on key cost reduction initiatives.
PA
See: Mine production and key developments below.
Maintain the ongoing programme to rationalise the
contractor base.
PA
See: Financial highlights below.
Improve our safety performance and continue
strengthening our safety-centred culture.
A
TRIFR and LTIFR decreased 18% and 14% respectively
compared to 2024, and zero fatalities.
Increase the resource base and convert resources into
reserves.
PA
See: Mine production and key developments below.
A: Achieved; PA: Partially achieved; NA: Not achieved.
2026 Objectives
Continue to implement measures to reduce dilution.
Improve productivity and the utilisation of equipment.
Continue to focus on key cost reduction initiatives.
Advance the 'Integrated District Operations' strategy.
Continue efforts to improve safety performance and raise safety awareness.
Maintain the resource base and convert resources into reserves.
2026 Outlook
For 2026, the silver ore grade is expected to be in the range of 160-180 g/t, with the gold ore grade around 0.55-0.65 g/t.
Mine production
2025 2024 % change
Ore milled (kt) 2,099
2,334
(10.1)
Silver (koz) 10,273 10,242 0.3
Gold (oz) 40,753
51,473
(20.8)
Lead (t) 21,432
27,088
(20.9)
Zinc (t) 44,721
50,702
(11.8)
Silver ore grade (g/t) 168.0 152 10.5
Total reserves
1
2025 2024 % change
Silver (moz) 131.9 104.5 26.2
Increased due to a higher silver price, infill drilling campaign
and lower the cut-off grade, partly offset by depletion.
Gold (moz) 353.0 263.0 34.2
Increased due to a higher gold price.
Total resources
2
2025 2024 % change
Silver (moz) 502.6 690.7 (27.2)
Decreased due to the implementation of the RPEEE
(Reasonable Prospects for Eventual Economic Extraction)
principle, and depletion. This was offset by a higher price,
lower cut-off grade, and good results from the exploration
brownfield and infill programme, adding mineral resources
to existing structures.
Gold (moz) 1.21 1.46 (17.1)
Decreased due to depletion.
1 2025 reserves as of 30 April 2025.
2 2025 resources as of 30 April 2025.
30
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – MINES IN OPERATION
FRESNILLO DISTRICT
Fresnillo cost per tonne
(US$/tonne milled)
131.8
Fresnillo cash cost
(Silver US$/ounce)
18.0
% figures represent margin between cash cost
and silver price.
Fresnillo ore milled per person
(Tonnes)
587
18.0
15.4
15.7
12.9
13.0
2022
2021
2024
2025
2023
Financial highlights 2025 2024 % change
Adjusted revenue (US$m) 739.3 591.2 25.1
Revenue (US$m) 710.2 542.6 30.9
Adjusted production costs (US$m) 276.5 261.9 5.6
Depreciation (US$m) 95.2 96.3 (1.1)
Segment profit (US$m) 437.7 277.3 57.8
Capital expenditure (US$m) 91.8 90.3 1.7
Exploration (US$m) 18.1 18.8 (3.7)
Cost per tonne total (US$) 131.75 112.23 17.4
Cash cost (US$/oz silver) 17.97 15.42 16.5
Margin (US$/oz)² 25.63 13.36 91.8
Margin (expressed as % of silver price) 58.78 46.42 —
All-in sustaining cost (US$) 27.02 21.97 23.0
Key developments in the year
Silver production remained broadly stable
as the higher ore grade from the San
Alberto and Candelaria areas was offset by
the decrease in volume of ore processed.
The decrease was driven by the lower
contribution from the San Ricardo area in
the west section of the mine together with
unplanned downtime for maintenance at
the flotation plant.
Mine development rates remained
broadly stable at an average of 3,273m
per month in 2025 (3,236m per month
in 2024).
Productivity, calculated as tonnes of ore
milled per person, decreased vs 2024
driven by the lower volumes processed
as explained above, mitigated by the
ongoing efforts to increase productivity
of our personnel and rationalise the
contractor base.
The Pyrites plant at Fresnillo produced 1.6
moz of silver and 2.3 koz of gold in 2025.
This was higher year-on-year due to the
additional contribution made by historic
tailings and, to a lesser extent, a small
portion of current tailings being processed
as higher prices made this more
economical.
During the year, several operational
improvement initiatives continued to be
implemented. Dilution control measures
have begun to deliver results and will
remain a focus in 2026. Improvements to
mine planning were also introduced to
support operational performance, though
their full impact was limited by lower
equipment availability. The rationalisation
of the contractor base continues to be an
important objective, with opportunities
pursued as contractor performance
improves. In parallel, cost reduction
initiatives were implemented during the
year, however the expected savings were
not fully realised. These initiatives will
continue to be central to ongoing efforts
to enhance efficiency and lay the
foundations for more consistent
performance going forward.
Financial performance
Cost per tonne increased 17.4% to US$131.8
in 2025, primarily driven by the increase in
development contractors, the higher cost
of mechanical and electrical
maintenance, a greater consumption of
explosives and milling balls, the lower
volume of ore processed, and underlying
cost inflation. This was partly mitigated by
the favourable effect of the devaluation of
the average Mexican peso vs US dollar
exchange rate.
Cash cost per silver equivalent ounce
1
increased to US$18.0 (2024: US$15.4)
mainly due to the increase in cost per
tonne and the effect of relative metal
prices in equivalent ounces (which
represented 58% of the total increase),
partly mitigated by lower treatment and
refining charges. However, margin per
ounce increased 91.8% to US$25.6
(2024: US$13.4). Expressed as a
percentage of the silver price, it
increased to 58.8% (2024: 46.4%).
All-in sustaining cost increased by 23.0%
to US$27.0 per equivalent silver ounce,
explained by the higher cash cost and
an increase in sustaining capex.
31
Fresnillo plc Annual Report and Accounts 2025
131.8
112.2
101.1
91.5
84.7
2022
2021
2024
2025
2023
587
618
633
608
589
2022
2021
2024
2025
2023
1 Cash cost per equivalent ounce is calculated
as the total cash cost (cost of sales plus
treatment and refining charges, less
depreciation) divided by the silver or gold
equivalent ounces sold.
2 Margin defined as average realised price less
cash cost per ounce.
Capital expenditure
Total capital expenditure in
2025 was US$91.8 million, which
included sustaining capex, mine
development, and the tailings
management programme.
Saucito
Saucito contributed 28.3% to total silver production in 2025 and generated 20.0%
of total Adjusted revenue.
2025 Objectives Comment
Continue progressing the deepening of the Jarillas shaft. A See: Mine production and key developments below.
Continue our focus on cost reduction initiatives and
contractor rationalisation.
PA See: Mine production and key developments below.
Sustain improved safety performance. A TRIFR decreased 11%, while LTIFR remained stable
compared to 2024, and zero fatalities.
Improve equipment availability. NA See: Mine production and key developments below.
Increase the resource base and convert resources into
reserves.
PA See: Mine production and key developments below.
A: Achieved; PA: Partially achieved; NA: Not achieved.
2026 Objectives
Complete the interconnection of the Jarillas Shaft, on track to become fully operational in 2027.
Maintain hauling capacity during the Jarillas shaft connection process.
Continue cost reduction initiatives and contractor rationalisation.
Continue efforts to improve safety performance and raise safety awareness.
Improve equipment availability.
Increase the resource base and convert resources into reserves.
2026 Outlook
The silver ore grade for 2026 is expected to be in the range of 200-220 g/t, while the gold grade is estimated to be between
0.95-1.15 g/t.
Mine production
2025 2024¹ % change
Ore milled (kt) 2,278 2,364 (3.6)
Silver (koz) 13,791 14,474 (4.7)
Gold (oz) 69,388 82,718 (16.1)
Lead (t) 27,158 22,729 19.5
Zinc (t) 40,307 34,097 18.2
Silver ore grade (g/t) 213 214 (0.5)
Gold ore grade (g/t) 1.24 1.40 (11.4)
Total reserves
2
2025 2024 % change
Silver (moz) 119.5 111.6 7.1
Increased due to the infill drilling campaign, lower cut-off
grade and higher price, offset by depletion.
Gold (koz) 509.0 515.0 (1.2)
Decreased slightly due to capping.
Total resources
3
2025 2024 % change
Silver (moz) 336.9 346.3 (2.7)
Decreased as a result of the implementation of the RPEEE
principle, depletion and exploration results, partly mitigated
by the lower cut-off grade strategy and higher prices.
Gold (moz) 1.5 1.7 (11.8)
2 Saucito mine production excludes ore processed and production from
Juanicipio.
3 2025 reserves as of 30 April 2025.
4 2025 resources as of 30 April 2025.
32
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – MINES IN OPERATION CONTINUED
SAUCITO DISTRICT
Saucito cost per tonne
(US$/tonne milled)
119.1
Saucito cash cost
(Silver US$/ounce)
13.0
% figures represent margin between cash cost
and silver price.
Saucito ore milled per person
(Tonnes)
686
Financial highlights 2025 2024 % change
Adjusted revenue (US$m) 929.9 760.0 22.4
Revenue (US$m) 908.2 720.6 26.0
Adjusted production costs (US$m) 271.4 314.5 (13.7)
Depreciation (US$m) 103.9 118.8 (12.5)
Segment profit (US$m) 649.4 405.1 60.3
Capital expenditure (US$m) 92.1 97.3 (5.3)
Exploration (US$m) 13.4 12.9 3.9
Cost per tonne total (US$) 119.12 133.03 (10.5)
Cash cost (US$/oz silver) 13.01 13.64 (4.6)
Margin (US$/oz)2 30.59 15.14 102.0
Margin (expressed as % of silver price) 70.16 52.61 —
All-in sustaining cost (US$) 18.94 18.56 2.0
Key developments in the year
Silver production decreased year-on-
year due to a lower volume of ore
processed, which resulted from reduced
availability of equipment, increased
corrective maintenance, and slower
mining cycles caused by the need for
additional ventilation in high
temperature areas and greater need for
shotcreting due to poor rock quality.
Gold production decreased primarily
driven by the lower ore grade and the
decrease in volume of ore processed.
Mine development rates decreased year-
on-year to an average of 2,472 metres per
month in 2025 (2024: 2,683 metres per
month), primarily due to lower availability
of equipment and additional ventilation
required in certain areas.
Productivity remained broadly stable vs
2024, driven by productivity
improvements achieved by our personnel
that allowed us to rationalise the
contractor base, partially offset by lower
ore throughput.
Reduced levels of service from equipment
manufacturers affected equipment
availability in 2025. However, service terms
have since been reviewed, and initiatives
and agreements with the service
providers have been established to
improve equipment availability in 2026.
In 2025, we continued to optimise the
contractor base, enhancing the
capabilities of high-performing
contractors, while implementing cost
reduction initiatives. These initiatives have
already delivered some positive results,
and are expected to generate further
benefits in 2026.
The Pyrites plant at Saucito produced 515
koz of silver and 1.5 koz of gold in 2025.
The project to deepen the Jarillas shaft
from 630 metres to 1,000 metres remains
on track to be completed by 2027.
Construction of the supporting
infrastructure and activities to place
equipment on site continued during the
year. While the connection of the shaft
was deferred from 2025 to 2026 to
minimise operational disruption, this has
not affected the project's target of
becoming fully operational in 2027.
Financial performance
Cost per tonne decreased 10.5% to
US$119.1, primarily due to the favourable
year-on-year impact on costs from the
conversion of the commercial
arrangement with Met-Mex for
processing non mining/core material at
the pyrites plant into a tolling
agreement in 2025, and the favourable
effect of the average devaluation of the
Mexican peso vs the US dollar. This was
partly offset by underlying cost inflation
and increased consumption of reagents.
Cash cost per silver equivalent ounce
1
decreased to US$13.0 per ounce (2024:
US$13.6 per silver ounce) mainly as a result
of a lower cost per tonne, partly offset by
the lower gold ore grade and the effect of
relative metal prices in equivalent ounces.
Margin per ounce increased to US$30.6 in
2025 (2024: US$15.1). Expressed as a
percentage of the silver price, it increased
from 52.6% to 70.2%.
33
Fresnillo plc Annual Report and Accounts 2025
All-in sustaining cost increased by
2.0% to US$18.9 per equivalent silver
ounce, due to the higher
extraordinary mining rights and an
increase in sustaining capex and
capitalised mine development per
equivalent silver ounce, mitigated by
the lower cash cost.
Capital expenditure
Capital expenditure in 2025 totalled
US$92.1 million, mainly allocated to
sustaining capex, in-mine
development, the tailings dam and the
project to deepen the Jarillas shaft.
119.1
133.0
141.2
119.5
89.8
2022
2021
2024
2025
2023
13.0
13.6
15.1
13.1
11.5
2025
686
688
621
558
721
2022
2021
2024
2025
2023
1 Cash cost per equivalent ounce is calculated as
the total cash cost (cost of sales plus treatment
and refining charges, less depreciation) divided
by the silver or gold equivalent ounces sold.
2 Margin defined as average realised price less
cash cost per ounce.
2022
2021
2024
2023
Juanicipio
Juanicipio contributed 19.8% to the Group’s total attributable silver production in
2025 and generated 19.9% of total Adjusted revenue.
2025 Objectives Comment
Cost reduction initiatives.
A
See: Mine production and key developments below.
Increase development rates to 1,300 metres per month.
NA
See: Key developments below.
Increase the resource base and convert resources into
reserves.
NA
See: Total reserves and resources below.
Improve our safety performance.
NA
TRIFR and LTIFR decreased 32% and 24% respectively
compared to 2024, but the zero fatalities objective
remains to be achieved.
A: Achieved; PA: Partially achieved; NA: Not achieved.
2026 Objectives
Continue efforts to improve safety performance and raise safety awareness.
Continue cost reduction initiatives.
Achieve development rates of 1,200 metres per month.
Construct and commission the underground conveyor belt to reduce haulage costs.
Increase the resource base and convert resources into reserves.
2026 Outlook
The average silver ore grade is expected to be between 320-380 g/t while the gold grade is estimated to be between 1.1-1.3 g/t.
Mine production
2025 2024 % change
Ore milled (kt) 768 744 3.2
Silver (koz) 9,643 10,400 (7.3)
Gold (oz) 23,854 21,856 9.1
Lead (t) 12,538 9,957 25.9
Zinc (t) 20,359 16,737 21.6
Silver ore grade (g/t) 423 468 (9.6)
Gold ore grade (g/t) 1.27 1.25 1.6
Total reserves
1
2025 2024 % change
Silver (moz) 74.1 73.9 0.3
Broadly stable due to infill drilling, a higher price and the
lower cut-off grade, partly offset by depletion.
Gold (koz) 529 527 0.4
Total resources
2
2025 2024 % change
Silver (moz) 119.9 142.5 (15.9)
Gold (koz) 721 834 (13.5)
Decreased mainly due to the implementation of the RPEEE
principle, and depletion.
1 2025 reserves as of 30 April 2025.
2 2025 resources as of 30 April 2025.
34
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – MINES IN OPERATION CONTINUED
JUANICIPIO DISTRICT
Juanicipio cost per tonne
(US$/tonne milled)
113.8
Juanicipio cash cost
(Silver US$/ounce)
8.2
% figures represent margin between
cash cost and silver price.
Juanicipio ore milled per person
(Tonnes)
1,088
Financial highlights 2025 2024 % change
Adjusted revenue (US$m) 922.6 662.8 39.2
Revenue (US$m) 896.8 627.5 42.9
Adjusted production costs (US$m) 156.2 153.8 1.6
Depreciation (US$m) 84.1 89.2 (5.7)
Segment profit (US$m) 747.0 475.1 57.2
Capital expenditure (US$m) 54.4 59.3 (8.3)
Exploration (US$m) 9.1 8.2 11.0
Cost per tonne total (US$) 113.81 115.8 (1.7)
Cash cost (US$/oz silver) 8.18 8.18 0.0
Margin (US$/oz)2 35.42 20.60 71.9
Margin (expressed as % of silver price) 81.24 71.58 —
All-in sustaining cost (US$) 12.91 11.71 10.2
Key developments in the year
Attributable silver production decreased
7.3% year-on-year mainly due to the
lower ore grade in accordance with the
mine plan, mitigated by the higher
volume of ore processed which was
driven by optimisation of the
maintenance programme at the
flotation plant. Attributable gold
production increased due to the
improved recovery rate and higher
volume of ore processed.
Productivity increased as a result of
efforts to increase the productivity of our
own personnel and optimise the
contractor base.
Mine development decreased to 1,168
metres per month in 2025 (2024: 1,222
metres per month) due to lower
equipment availability caused by
reduced service from equipment
manufacturers.
Financial performance
Cost per tonne decreased slightly,
driven by the favourable effect of the
average devaluation of the Mexican
peso vs the US dollar, partly offset by
underlying cost inflation.
Cash cost per silver equivalent ounce
1
remained stable at US$8.2 per ounce
(2024: US$8.2 per silver ounce), primarily
due to the lower treatment and refining
charges, offset by the adverse effect of
the relative metal prices in equivalent
ounces and the lower ore grade. Margin
per ounce increased to US$35.4 in 2025
(2024: US$20.6). Expressed as a
percentage of the silver price, it
increased from 71.6% to 81.2%.
All-in sustaining cost increased 10.2% to
US$12.9 per equivalent silver ounce,
primarily driven by an increase in
sustaining capex per ounce.
Capital expenditure
Capital expenditure in 2025 totalled
US$54.4 million and was allocated
primarily to mine development and
purchase of equipment.
35
Fresnillo plc Annual Report and Accounts 2025
1 Cash cost per equivalent ounce is calculated
as the total cash cost (cost of sales plus
treatment and refining charges, less
depreciation) divided by the silver or gold
equivalent ounces sold.
2 Margin defined as average realised price less
cash cost per ounce.
113.8
115.8
123.1
2024
2025
8.2
8.2
10.7
2024
2025
1,088
1,020
1,022
2024
2025
2023
2023
2023
San Julián
San Julián contributed 17.0% to the Group's total attributable silver production in
2025 and generated 11.4% of total Adjusted revenue.
2025 Objectives Comment
Focus on implementing the second stage of the optimisation
plan at San Julián Veins to improve the cost base.
A See: Key developments below.
Continue exploration in the region with the aim of increasing
the resource base and extending mine life beyond 2030.
PA See: Reserves and resources below.
Increase the resource base and convert resources into
reserves.
A See: Reserves and resources below.
Improve our safety performance.
A
Safety performance significantly improved compared
to 2024, with TRIFR and LTIFR decreasing 30% and 26%
respectively and zero fatalities.
A: Achieved; PA: Partially achieved; NA: Not achieved.
2026 Objectives
Sustain operational performance and commence
evaluation of marginal capital projects to improve cost base.
Complete TSF construction and begin evaluation of its
expansion beyond 2029.
Continue exploration efforts to extend mine life.
Continue to improve safety performance and raise safety
awareness.
2026 Outlook
For the year ahead, the silver ore grade at San Julián
Veins is expected to be in the range of 210-230 g/t, with
the gold ore grade expected to average 0.9-1.1 g/t.
Production San Julián Veins
2025
2024 % change
Ore milled (kt) 1,261 1,237 1.9
Silver (koz) 8,293 8,443 (1.8)
Gold (oz) 50,573 49,633 1.9
Silver ore grade (g/t) 225 232 (3.0)
Gold ore grade (g/t) 1.31 1.31 —
1 2025 reserves as of 30 April 2025.
2 2025 resources as of 30 April 2025.
Reserves San Julián Veins
1
2025
2024
% change
Silver (moz) 21.6 27.6 (21.7)
Decreased due to depletion, partly mitigated by the lower cut-off grade and
higher metals prices.
Gold (koz) 146.0 128.0 14.1
Increased due to the lower cut-off grade and higher metals prices, partly
mitigated by depletion.
Resources San Julián Veins
2
2025
2024 % change
Silver (moz) 63.0 115.4 (45.4)
Gold (koz) 495 883 (43.9)
Despite intensive exploration efforts which delivered results above plan, resources
decreased due to the implementation of the RPEEE principle and depletion of
certain areas, partly mitigated by the lower cut-off grade and higher price.
36
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – MINES IN OPERATION CONTINUED
SAN JULIÁN DISTRICT
San Julián Veins
1
ore milled per
person
(Tonnes)
773
1 This indicator included ore from the San Julián
disseminated ore body from 2021-2024.
San Julián Veins cost per tonne
(US$/tonne milled)
125.8
San Julián Veins cash cost
(Silver US$/ounce)
13.29
% figures represent margin between cash cost
and silver price.
Financial highlights 2025 2024 % change
Adjusted revenue (US$m) 527.9 469.6 12.4
Revenue (US$m) 524.4 456.0 15.0
Adjusted production costs (US$m) 158.7 201.0 (21.0)
Depreciation (US$m) 75.0 162.7 (53.9)
Segment profit (US$m) 366.0 253.8 44.2
Capital expenditure (US$m) 49.7 49.4 0.6
Exploration (US$m) 14.5 16.5 (12.1)
Cost per tonne total (US$)
125.84 106.14 18.6
Cash cost (US$/oz silver)
13.29 10.95 21.4
Margin (US$/oz)2
30.31 17.83 70.0
Margin (expressed as % of silver price)
69.52 61.95 —
All-in sustaining cost (US$)
19.82 16.60 19.4
Key developments in the year
Gold production increased year-on-year,
primarily due to the increased volume of
ore processed resulting from efforts to
optimise plant operation and
maintenance programmes. Silver
production decreased, driven by the
lower ore grade, partly offset by
increased ore throughput.
Productivity decreased following the
cessation of activities at the
disseminated ore body (DOB).
Remaining operations at the Veins are
less productive on a tonnes per person
basis. This is due to the use of long hole
drilling, a method that is more selective
and targets higher grade ore compared
to the massive sub-level method
previously used at the DOB.
In 2025, we continued implementing
the optimisation plan at San Julián,
consolidating operations with the plant
and ensuring the sustainability and
profitability of the site. Additional cost-
containment measures were
implemented during the year, alongside
a strong focus on exploration. Looking
ahead, the focus remains on further
improving cost discipline and
implementing structural improvements
to support future production and
extend the mine’s operational life.
Financial performance
San Julián Veins
Cost per tonne increased 18.6% to
US$125.8, primarily driven by the
increase in contractor and maintenance
costs following the absorption of shared
fixed costs from San Julián DOB, which
was closed in 4Q24, and underlying cost
inflation. This was mitigated by the
favourable effect of the average
devaluation of the Mexican peso vs the
US dollar.
Cash cost per equivalent ounce of silver
increased 21.4% due to the higher cost
per tonne. However, margin per ounce
increased 70.0% to US$30.3 (2024:
US$17.8), while margin expressed as a
percentage of the silver price increased
from 62.0% in 2024 to 69.5% in 2025.
All-in sustaining cost increased to
US$19.8 per equivalent silver ounce
driven by a higher cash cost and
increased capitalised mine
development per equivalent ounce.
Capital expenditure
Capital expenditure in 2025 was
US$49.7 million, mainly allocated to
mining works and sustaining capex.
37
Fresnillo plc Annual Report and Accounts 2025
773
1,498
1,570
1,693
1,602
125.8
106.1
109.0
91.0
81.5
13.3
11.0
14.4
13.8
13.0
1 Cash cost per equivalent ounce is calculated as
the total cash cost (cost of sales plus treatment
and refining charges, less depreciation) divided
by the silver or gold equivalent ounces sold.
2 Margin defined as average realised price less
cash cost per ounce.
37
2022
2021
2024
2025
2023
2022
2021
2024
2025
2023
2022
2021
2024
2025
2023
Ciénega
Ciénega contributed 6.2% to total attributable gold production and 5.7% to total
attributable silver production in 2025. The mine generated 5.0% of total Adjusted
revenue during 2025.
2025 Objectives Comment
Continue to focus on maximising productivity with own
resources while enhancing contractor efficiency.
PA See: Key developments below.
Continue exploration programme in selected high-grade
target areas to extend the reserve base and mine life.
A See: Reserves and resources below.
Finalise evaluation of satellite deposits to complement
production.
A See: Key developments below.
Improve our safety performance. PA TRIFR and LTIFR decreased 15% and 28% respectively
compared to 2024, but the zero fatalities objective
remains to be achieved.
A: Achieved; PA: Partially achieved; NA: Not achieved.
2026 Objectives
Continue to improve safety performance and raise safety awareness.
Consolidate exploration results into production and new reserves.
Complete the transition to the more productive long hole mining method.
2026 Outlook
In 2026, the average gold ore grade is expected to be between 1.4-1.6 g/t, with the silver ore grade expected to average
110-130 g/t.
Mine production
2025
2024 % change
Ore milled (kt) 900 1,059 (15.0)
Silver (koz) 2,775 4,834 (42.6)
Gold (oz) 37,410 39,422 (5.1)
Lead (t) 948 2,922 (67.6)
Zinc (t) 527 3,168 (83.4)
Silver ore grade (g/t) 125 166 (24.7)
Gold ore grade (g/t) 1.39 1.27 9.4
Total reserves
1
2025
2024 % change
Silver (moz) 15.4 13.8 11.6
Gold (koz) 267 122 118.9
Increased as a result of the lower cut off grade and a higher
price, and exploration results, partly mitigated by depletion.
Total resources
2
2025
2024 % change
Silver (moz) 74.0 113.7 (34.9)
Gold (koz) 925 1,458 (36.5)
Decreased as a result of the implementation of the RPEEE
principle, exploration results, changes to the model, in
particular related to capping and depletion, partly mitigated
by the lower cut-off grade and a higher price.
1 2025 reserves as of 30 April 2025.
2 2025 resources as of 30 April 2025
.
38
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – MINES IN OPERATION CONTINUED
CIÉNEGA DISTRICT
Ciénega ore milled per person
(Tonnes)
765
Ciénega cost per tonne
(US$/tonne milled)
119.6
Ciénega cash cost
(Gold US$/ounce)
1,697.5
% figures represent margin between cash cost
and gold price.
Financial highlights
2025
2024 % change
Adjusted revenue (US$m) 232.4 228.4 1.8
Revenue (US$m) 230.1 222.5 3.4
Adjusted production costs (US$m) 107.6 128.7 (16.4)
Depreciation (US$m) 45.8 63.2 (27.5)
Segment profit (US$m) 123.9 92.9 33.4
Capital expenditure (US$m) 17.6 17.1 2.9
Exploration (US$m) 7.4 4.9 51.0
Cost per tonne total (US$) 119.59 121.51 (1.6)
Cash cost (US$/oz gold) 1,697.51 1,440.18 17.9
Margin (US$/oz)2 1,835.23 1,013.40 81.1
Margin (expressed as % of gold price) 51.95 41.30 —
All-in sustaining cost (US$) 2,224.63 1,823.91 22.0
Key developments in the year
Gold production decreased year-on-year,
mainly due to the lower volume of ore
extracted from the Jessica Transversal and
Vetas Angostas areas and the depletion of
Taspana. This was partly mitigated by the
higher ore grade from the Victoria
complex and, to a lesser extent, the higher
concentration of cyanide to improve
recovery rates in the leaching process.
Silver production decreased vs 2024,
driven by the lower ore grade, the lower
volume of ore processed, and decreased
recovery rate due to the higher portion
of oxides processed at the flotation plant
following the depletion of sulphides
from Taspana.
An economic analysis of the milling and
flotation process was conducted in 1H25 as
part of the project to optimise operations
and increase profitability. The analysis
concluded that the contribution from the
zinc concentrate to the mine’s profitability
was marginal. As a result, it was decided
that production of zinc concentrate would
cease from 3Q25 with no further
contribution expected thereafter.
Productivity decreased due to the lower
volume of ore processed, despite ongoing
programmes to improve productivity and
optimise the contractor base. This was
further compounded by market
conditions, which have made it
increasingly challenging to retain talent.
In 2025, the team continued to focus on
exploration, resulting in the discovery of
new high-grade gold areas. These are now
in development, with production
expected to start in 1H26. Additionally,
several satellite mineralised areas were
evaluated, with further detailed analysis
and permitting planned for 2026.
Financial performance
Cost per tonne decreased to US$119.6 in
2025. This was driven by the decrease in
development contractors, and the
favourable effect of the average
devaluation of the Mexican peso vs the US
dollar, partly offset by the lower volume of
ore processed and underlying cost
inflation.
Cash cost per equivalent gold ounce
increased by 17.9%, primarily due to the
lower silver, lead and zinc ore grades.
Margin per ounce increased significantly
to US$1,835.2 in 2025 (2024: US$1,013.4).
Expressed as a percentage of the gold
price, the margin increased to 52.0%
(2024: 41.3%).
All-in sustaining cost increased 22.0% to
US$2,224.6 per equivalent gold ounce,
primarily driven by the higher cash cost.
Capital expenditure
Capital expenditure in 2025 totalled
US$17.6 million and was allocated
primarily to mine development, sustaining
capex and safety and environment,
including the construction of the
tailings dam.
39
Fresnillo plc Annual Report and Accounts 2025
765
829
647
612
842
2022
2021
2024
2025
2023
119.6
121.5
135.8
116.3
86.1
2024
2022
2021
2023
2025
1,697.5
1,440.2
1,743.7
1,406.4
962.1
2022
2021
2024
2025
2023
1 Cash cost per equivalent ounce is calculated
as the total cash cost (cost of sales plus
treatment and refining charges, less
depreciation) divided by the silver or gold
equivalent ounces sold.
2 Margin defined as average realised price less
cash cost per ounce.
Herradura
One of Mexico’s largest open pit gold mines, Herradura produced 59.3% of the
Group’s total gold in 2025 and generated 26.7% of total adjusted revenue.
2025 Objectives Comment
Continue metallurgical analysis for sulphides to optimise
recovery.
A See: Key developments below.
Advance phase 2 of the Operational Excellence
programme to capture further efficiencies and cost
reduction initiatives.
A See: Financial performance below.
Complete engineering of the Carbon in Column project
for dynamic leaching plants and start construction.
A See: Key developments below.
Complete engineering and start early works for Valles
underground mine.
A See: Key developments below.
Improve our safety performance. A Safety indicators improved slightly over 2024 (TRIFR and
LTIFR below 2.0), with zero fatalities.
Increase the resource base and convert resources into
reserves.
A See: Reserves and resources below.
A: Achieved; PA: Partially achieved; NA: Not achieved.
2026 Objectives
Complete engineering and start construction of sulphides crushing circuit and Adsorption, Desorption and Recovery
(ADR)plant.
Initiate the optimisation programme for the dynamic leaching plant 1 through repowering.
Complete construction of the Carbon In Column project for dynamic leaching plants.
Complete rehabilitation works for the Valles underground mine.
Continue to improve safety performance and raise safety awareness.
2026 Outlook
Gold ore grades in 2026 are expected to be in the range of 0.50–0.70 g/t.
Mine production
2025 2024 % change
Ore deposited (kt) 20,035 22,742 (11.9)
Total volume hauled (kt) 95,645 97,692 (2.1)
Gold (oz) 356,097 360,598 (1.2)
Silver (koz) 516 524 (1.5)
Gold ore grade (g/t) 0.69 0.71 (2.8)
Total reserves
1
2025 2024 % change
Gold (moz) 6.0 5.7 5.3%
Increased due to a higher price and lower cut-off grade, partly offset by depletion.
Total resources
2
2025 2024 % change
Gold (moz) 9.6 6.8 41.2%
Increased due to a higher price, a lower cut off grade, and replacement due to
brownfield exploration campaign.
1 2025 reserves as of 30 April 2025.
2 2025 resources as of 30 April 2025.
40
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – MINES IN OPERATION CONTINUED
HERRADURA DISTRICT
Financial highlights 2025 2024 % change
Adjusted revenue (US$m) 1,241.2 884.7 40.3
Revenue (US$m) 1,239.7 883.6 40.3
Adjusted production costs (US$m) 424.1 505.5 (16.1)
Depreciation (US$m) 91.3 91.7 (0.4)
Segment profit (US$m) 767.4 323.7 137.1
Capital expenditure (US$m) 89.9 55.0 63.5
Exploration (US$m) 6.6 16.6 (60.2)
Cost per tonne total (US$) 21.17 22.23 (4.8)
Cash cost (US$/oz gold) 1,214.95 1,441.87 (15.7)
Margin (US$/oz)2 2,317.79 1,011.71 129.1
Margin (expressed as % of gold price) 65.6 41.2 —
All-in sustaining cost (US$) 1,628.71 1,730.28 (5.9)
Key developments in the year
Annual gold production decreased 1.2%,
driven by the lower volumes of ore
processed resulting from greater
selectivity and a minor delay in the
commissioning of phase XV of the
leaching pad, as well as the lower ore
grade. This was mitigated by the higher
recovery rate resulting from the increase
in the proportion of oxides deposited on
the pads.
Despite slightly lower production
compared to 2024, all operational goals
were surpassed relative to the original
plan, enabling the delivery of gold
production above guidance. From an
operational perspective, efficient cost
control, optimised drilling patterns, and
improved mine cycles contributed to
higher-than-expected gold recoveries in
the heap leach process, while selective
mining continued to deliver higher
grades to the dynamic leaching plants.
In line with previously outlined strategic
initiatives, we continued to implement
measures to optimise operational
performance. The Carbon-in-Column
facility is under construction, with
startup expected in 1Q26 and full
operational capacity by 2Q26. In
addition, analysis and test work for a
new sulphides crushing circuit were
successfully completed, with detailed
engineering for this facility and the ADR
plants now underway. At the mine, the
fleet renewal programme has
commenced, aimed at reducing
operating costs and improving
operational efficiencies.
Development of the Valles underground
project continued according to plan,
with engineering completed and early
works initiated. Production startup
remains on track for 1H27.
Financial performance
Cost per tonne of ore hauled decreased
4.8%, primarily due to cost efficiencies
from shorter haulage distances and the
favourable effect of the average
devaluation of the Mexican peso vs the
US dollar, partly offset by underlying
cost inflation.
Cash cost decreased 15.7% to US$1,214.9
per equivalent ounce of gold
1
, mainly
due to the variation in change in
inventories and lower cost per tonne,
partly offset by the lower gold ore grade.
Margin per ounce increased 129.1% from
US$1,011.7 to US$2,317.8, while margin
expressed as a percentage of the gold
price increased from 41.2% in 2024 to
65.6% in 2025.
All-in sustaining cost decreased 5.9% to
US$1,628.7 per equivalent gold ounce,
mainly due to the lower cash cost.
Capital expenditure
Capital expenditure in 2025 totalled
US$89.9 million, which was focused on
mining works, the construction of the
leaching pads and sustaining capex,
and tailings dams.
Herradura ore milled per person
(Tonnes)
30,134
Herradura cost per tonne
(US$/tonne processed)
21.2
Herradura cash cost
(Gold US$/ounce)
1,214.9
% figures represent margin between cash cost
and gold price.
41
Fresnillo plc Annual Report and Accounts 2025
223
30,134
32,840
35,959
40,967
42,672
2022
2021
2024
2025
2023
21.2
22.2
24.2
19.7
21.7
2022
2021
2024
2025
2023
1,214.9
1,441.9
1,384.6
1,150.5
951.4
2022
2021
2024
2025
2023
1 Cash cost per equivalent ounce is calculated as
the total cash cost (cost of sales plus treatment
and refining charges, less depreciation) divided
by the silver or gold equivalent ounces sold.
2 Margin defined as average realised price less
cash cost per ounce.
Noche Buena
Full-year gold production totalled 18,116
ounces. As previously announced,
mining activities concluded in May
2023, and the mine closure plan has
continued as expected. For further
details on our mine closure process, see
the Sustainability section on page 103.
Based on new technical information
and revised recovery grades and
leaching targets, the estimated gold
content in the leaching pads at Noche
Buena was increased by 20.7 thousand
ounces as at 1 January 2025.
Our pipeline of exploration projects is key to our ongoing strategy of organic growth.
The diagram below shows our operations, projects and prospects across all stages.
42
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS CONTINUED
A STRONG GROWTH PIPELINE
PROJECTS AND
PROSPECTS PORTFOLIO
Mines in
operation
Developments
Projects
PEA
(Rodeo, Guanajuato, Tajitos)
Feasibility
(Orisyvo, Novador/Canada )
Advanced exploration
(Pilarica/Peru, San Juan, Candameña, Lucerito)
Early stage drilling (14)
(Capricornio/Chile, Chicayo-Supaypacha/Peru, Fresnillo and San Julián districts)
Prospecting and drill target generation (37)
(Santiago and La Palma/Peru, Pencahue/Chile, Escritorio, Buenavista)
Systematic project generation
*Operations at Soledad-Dipolas are currently suspended.
Mines in operation
Fresnillo, Saucito, Herradura, Soledad-Dipolos*,
San Julián Veins, Ciénega, Juanicipio
Development projects
No projects under development.
Prospecting and drill target generation (37)
Santiago and La Zarca/Peru, Pencahue/Chile, Detour belt/Canada, Olivos, Escritorio, La Yesca
Early stage drilling (14)
Capricornio/Chile, Chiclayo-Supaypacha/Peru, Fresnillo and San Julián districts
Advanced exploration
Pilarica/Peru, San Juan, Candameña, Lucerito
PEA
Rodeo, Guanajuato, Tajitos
Feasibility
Orisyvo, Novador/Canada
EXPECTED DELIVERY OF GROWTH
43
Fresnillo plc Annual Report and Accounts 2025
43
Exploration continues to be the key driver of growth for the Group. We believe that
continuous investment across price cycles is the most efficient and sustainable route
to create a portfolio of prospects and projects that extends across multiple stages.
Our firm and unchanging commitment
to exploration sets us apart from many
of our peers and provides a solid
platform for our future success.
Our exploration teams have a proud and
highly respected reputation in the
Mexican mining industry. They have
been responsible for our most
significant breakthroughs, such as those
at San Julián and Saucito, and are ideally
qualified to identify and develop new
opportunities. One of the most
important roles of our teams is to
engage with local communities and
seek their participation at an early stage
of a project. Not only does this help
safeguard our licence to operate, it also
gives us the opportunity to meet and
consult with local people, thereby
ensuring that we are able to tailor any
subsequent community support
programmes to meet their specific
needs (see Sustainability section on
pages 104-109).
Our focus remains on Mexico, where we
seek to identify and consolidate new
districts with favourable gold-silver
potential, while also maintaining
exploration offices in Chile and Peru. In
addition, our pipeline was strengthened
with the acquisition of Probe Gold at the
beginning of 2026. Following due
diligence and several visits to engage
with the team and key stakeholders in
Canada, we have established an
exploration programme to continue
drilling at the Novador project while
advancing the permitting process.
In 2025, our drilling programmes
increased by 7.7% compared to 2024,
with a total of 800,434 metres drilled.
80% of drilling activities were carried out
at, or close to, our existing operations, in
line with our continued focus on
brownfield exploration which maximises
the possibility of good returns. We
drilled 159,065 metres in greenfield
targets where we are consolidating
districts.
Brownfield exploration
The Group’s strategy of focusing on
brownfield (on-lease or near-mine)
exploration to extend mine life
continued during the year. Our belief
that brownfield exploration and
discovery offer the best route to the
expansion of low-cost, low-risk mineral
resources and mineral reserves in well-
understood environments remains
central to our approach. Brownfield
exploration is configured to deliver a
balanced project pipeline that includes
identifying early-stage targets with
project lead times of typically four to five
years, combined with progressing more
advanced projects that can potentially
deliver new mining opportunities within
the next two to three years.
The objectives of the drilling campaigns
at our mines are threefold: (i) replenish
and augment our mineral reserves,
converting inferred resources into the
indicated category with infill drilling; (ii)
increase the total and inferred resources
by drilling at extensions of known
mineralisation and also by testing new
targets; and (iii) continue to ensure the
quality of the reserves blocks scheduled
to be mined in the short term, with
selected additional drilling carried out
wherever deemed necessary due to
grade variations. We work hard to
ensure the long-term sustainability of
our business and to drive growth by
replenishing depleted reserves and
maintaining a robust growth pipeline.
Greenfield exploration
We carefully define and execute drilling
campaigns aimed at discovering and
increasing resources at our early-stage
prospects in new mineral districts,
focusing on projects that have shown
good potential for supporting our
growth ambitions. For projects in the
relatively early stages, we may conduct
preliminary economic assessments
(PEAs), which comprise an economic
analysis of the potential viability of
mineral resources.
For more advanced projects, we
undertake extensive de-risking activities
to refine models, explore the extent of
mineralisation and provide
comprehensive support to a project as it
moves into and through the
development stage – a key moment in
the journey towards becoming an
operational mine.
All our exploration projects are
measured against a set of strict criteria
to ensure they meet our operational,
revenue and profitability objectives. For
example, we will only proceed with a
stand-alone project if it offers a
minimum potential of 150 moz of silver
or 2 moz of gold. We also consider a
range of additional factors before
commencing activities, such as ore
grades, metallurgical recoveries,
extraction costs, environmental impact,
and sustainability and community
investment, as well as the available
infrastructure. The exploration budget is
allocated to selected projects based on
their score in the favourability and risk
analyses performed yearly on our
prospects and projects portfolio, to be
followed by the implementation of an
exploration programme based on a
disciplined milestone-completion
approach.
2025 performance
Mineral resources and ore reserves
Estimations of our mineral resources
and ore reserves are developed by our
corporate technical staff in line with
best practice and are audited every year
by independent consultants prior to
public statement under the JORC Code
reporting standards. The 2025 mineral
resources estimates were based on
price assumptions of US$2,300/oz gold
and US$30.0/oz silver, and ore reserves
estimated at US$2,100/oz gold and
US$26.5/oz silver. In line with last year’s
approach, these price assumptions were
based on an average of the price
outlooks from various financial
institutions. The increased metals prices,
along with lower contractual charges on
concentrate sales and cost reductions
achieved through our efficiency and
cost savings initiatives, resulted in a
decrease in cut-off grades in 2025.
Following the considerable efforts by
our teams to intensify the infill drilling
campaign, the proven and probable
reserves at all our underground mines
were replenished during 2025.
The corporate technical services team
continued to improve across all
disciplines in 2025, with a special focus
on improving our geotechnical models,
grade control, recovery parameters and
reconciliation process.
Exploration and variations in reserves
and resources at our existing mines are
set out as part of our Review of
Operations (see pages 30-41).
44
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – EXPLORATION
Silver in consolidated overall mineral resources decreased 8.5% to 2,058 moz, primarily driven by the implementation of the
Reasonable Prospects for Eventual Economic Extraction (RPEEE) principle, in accordance with JORC 2012 and NI 43-101 international
reporting codes. This new approach, which we have adopted in line with our commitment to follow industry best practice, classifies
mineral resources based on an expectation of future economic extraction, considering technical and economic parameters, thereby
providing a clear assessment of material that could be mined in the future. While the application of this principle has initially had a
negative impact on the reported resource base, it will have a positive long-term impact because it enhances confidence in the
estimates and reinforces transparency. The 192.1 moz decrease was the result of the variations shown below.
Gold in consolidated overall mineral resources increased 14.3% to 44.0 moz, primarily driven by the contributions shown below.
Silver in consolidated overall ore reserves increased 9.4% to 362.6 moz, with the increase of 31.2 moz primarily driven by the
contributions shown below.
Gold in consolidated overall ore reserves increased 7.4% to 7.8 moz, with the 533 koz increase primarily driven by the
contributions shown below.
45
Fresnillo plc Annual Report and Accounts 2025
2,250,464
99,496 17,290
9,180 5,755 2,493
(9,360) (14,285)
(22,594)
(39,636)
(52,376)
(188,017)
2,058,411
Resources
2024
Lucerito
Guanajuato
Rodeo
Candameña
Others
Saucito
San Julián
DOB
Juanicipio
Ciénega
San Julián
Veins
Fresnillo Resources
2025
0
1,000,000
2,000,000
3,000,000
38,470
2,831
2,483
867
814
198 144 28
(113) (191) (256)
(384)
(388)
(533)
43,970
Resources
2024
Herradura
Lucerito
Rodeo
Noche
Buena
Candameña
Guanajuato
Others Juanicipio
Saucito
Fresnillo
Soledad-
Dipolos
San
Julián
Veins
Ciénega
Resources
2025
0
25,000
50,000
331,331
27,406
7,987
1,614 162
(5,923)
362,577
Reserves 2024
Fresnillo
Saucito Ciénega Juanicipio
San Julián Veins
Reserves 2025
0
200,000
400,000
7,234
283
145
90 18 2
(6)
7,767
Reserves 2024
Herradura
Ciénega
Fresnillo
San Julian Veins
Juanicipio
Saucito
Reserves 2025
0
5,000
10,000
45
The following section provides details
about our advanced exploration projects,
highlighting the progress made in 2025 as
well as outlining our plans for the year
ahead.
Advanced exploration projects
Orisyvo
Orisyvo is a world-class, high-sulphidation
epithermal, disseminated gold deposit
located in the Sierra Madre mountains of
Chihuahua state, hosting open-pit
constrained total resources of 9.6 million
ounces of gold. The project is in the pre-
feasibility stage aiming at the
development of a bulk-mining
underground operation targeting the
high-grade core of the ore deposit and the
construction of the associated
infrastructure, which includes mineral
processing and tailings storage facilities.
During 2025, the initial pre-feasibility study
was completed, and several opportunities
to optimise the overall results were
identified and are currently being
evaluated. These focus primarily on
reducing initial capital expenditures and
operating costs. The key areas under
review and subject to trade-off studies
include alternatives for energy supply,
mining sequence and mineral processing
scenarios. Environmental studies continue
in preparation for submission to the
authorities. The land acquisition strategy,
alongside the region-wide community
engagement programme and ongoing
coordination with local and state
governments, continues as planned in
preparation for the required consultation
processes with Indigenous Peoples.
The 2026 programme includes refining the
pre-feasibility study to deliver its final
version and advance to feasibility level
work, while continuing community and
government engagement programmes.
Rodeo
Rodeo is an open pit, heap leaching gold
project located in central Durango state,
with mineralisation occurring in a
disseminated volcanic rock-hosted ore
body, showing thorough oxidation down
to depths exceeding 200 metres. Gold
metallurgical recoveries have been
obtained in column test-work. Following
the formalisation of agreements with the
intervening communities in 2024, a 22,336
metres drilling programme was
completed to obtain sufficient samples for
more detailed metallurgical investigations
and to evaluate extensions of the known
ore bodies.
Positive drilling results, together with
higher gold prices, supported an increase
in mineral resources to 2.3 million ounces
of gold, with 67% classified in the indicated
category. Metallurgical column test-work is
ongoing and continues to deliver
encouraging preliminary results.
Simultaneously, a regional hydrogeological
study and evaluation of water and energy
supply alternatives are in progress. The
information gathered will form the basis of
an updated Preliminary Economic
Assessment to be delivered in 2H 2026. A
region-wide community engagement
programme also continues, focusing on
health, infrastructure and educational
initiatives developed in collaboration with
local communities and government
stakeholders. This has revealed strong
support for the project.
Tajitos
Tajitos is a low strip ratio open-pit, heap-
leach, disseminated gold project located in
the Herradura Corridor of northwestern
Sonora state, with mineral resources
amounting to 1.1 million ounces of gold, of
which 92% are classified in the indicated
category. An updated Preliminary
Economic Assessment is expected in 1H
2026, following the completion of
evaluations of alternatives for mine
development, water and energy supply,
mineral processing, and tailings storage
facilities. The potential development of the
Tajitos project would benefit from
synergies and existing infrastructure at the
La Herradura mine. Environmental studies
associated with this project are
progressing well, alongside a regional
community engagement programme
that includes the Caborca municipality.
During 2025, a drilling programme
totalling 19,198 metres was completed in
the western portion of the district, which
included 11,406 metres of core drilling and
7,792 metres of reverse circulation drilling.
Current targets under evaluation include
an outcropping vein system showing good
gold grades amenable to underground
mining, and several areas with good
potential for the discovery of additional
disseminated mineralisation. Promising
results have been obtained from both
target types, and drilling at these locations
is planned to continue during 2026.
Guanajuato
Guanajuato is a historic, world-class gold
and silver epithermal vein field stretching
more than 40 kilometres across the central
Mexican state of Guanajuato. During 2025,
122,098 metres of core drilling were
completed, of which 88% was focused on
the southern portion of the district, where
the evaluation of a significant newly
discovered silver-gold vein system is
progressing well. Total resources at our
Guanajuato project amount to
approximately 3 moz of gold and 388
million ounces of silver, with 17% classified
in the indicated category. In 2025,
additional step-out and initial infill drilling
programmes were undertaken at
Guanajuato Sur, alongside environmental
studies, land acquisition, and evaluation of
alternative mine development and mineral
processing scenarios.
For 2026, several studies are planned,
including evaluations of mine
development technologies, geotechnical,
geohydrological assessments,
environmental studies, detailed
metallurgical investigations, and
preliminary infrastructure designs. These
are expected to form the basis of a PEA to
be delivered at year end. Infill and step-out
drilling will continue, together with
strengthened community and
government engagement programmes.
Exploration continued at a slower pace in
the central portion of the district, which
hosts 28% of the total resources, with 14,339
metres of surface and underground core
drilling completed at several targets at the
historic Torres and Peregrina mine areas.
Alternatives for mine development at
these locations are under consideration.
Prospects
In Mexico, our focus was on the Lucerito
project, an open-pit, polymetallic sulphide
deposit, located in central Durango. Initial
metallurgical investigations using Biox and
Albion technologies to recover refractory
gold delivered promising results, and 9,135
metres of core drilling were completed for
metallurgical testing and refinement of
the geological model. The positive results
obtained, together with rising metals
prices, supported an increase in mineral
resources to 5.6 moz of gold and 328 moz
of silver. Additional drilling and
metallurgical investigations will continue
in 2026, with a preliminary conceptual
study expected to be delivered by year-
end.
At Candameña, a gold-silver epithermal
deposit, drilling results were modest, and
metallurgical investigations of its refractory
gold ores are scheduled for 2026.
In Peru, the drilling programme
completed at the La Palma porphyry
prospect returned marginal grades, and
focus has since shifted to advancing social
and environmental permitting at other
prospects with strong exploration
potential, and these are expected to be
drilled during 2026.
In Chile, drilling resumed at the
Capricornio gold prospect, a joint venture
with SQM which hosts several untested
targets under cover that will continue to
be evaluated during 2026.
Early-stage exploration
We routinely carry out activities at our six
exploration offices to accumulate regional
geological, geophysical, structural and
geochemical data and analyse it in a GIS
environment. Areas identified with good
potential are followed up by gathering
remote sensing hydrothermal alteration
data commissioned from international
high-quality service providers. The
information gained is integrated into the
database to refine our understanding of
the targeted ore deposit systems.
Furthermore, our regional prospecting
teams in Mexico, Peru and Chile carry out
the field work required to validate the
exploration targets and eventually
incorporate them into our prospect
pipeline, while also evaluating a selection
of third-party prospects.
46
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
REVIEW OF OPERATIONS – EXPLORATION CONTINUED
The consolidated financial
statements of Fresnillo plc are
prepared in accordance with
UK-adopted international
accounting standards. This
financial review intends to
explain the main factors
affecting performance as well
as provide a detailed analysis of
the financial results in order to
enhance the understanding of
the Group’s financial
statements.
All comparisons refer to 2025 figures
compared to 2024, unless otherwise
noted. The financial information and
year-on-year variations are presented in
US dollars, except where otherwise
indicated. The full financial statements
and their accompanying notes can be
found on pages 115-264.
The following report presents how we
have managed our financial resources.
Commentary on financial performance
The Group’s financial performance in
2025 reflects the positive impact of
higher precious metals prices coupled
with a more stable operational
performance, which was achieved
despite a number of challenges.
Adjusted revenue
1
increased 27.6% vs
2024 to US$4,645.3 million. This was
primarily due to higher gold and silver
prices. Revenue increased 30.5% year-
on-year to US$4,561.2 million, principally
as a result of higher Adjusted revenue
and lower treatment and refining
charges.
Adjusted production costs
2
decreased
11.1% vs 2024. This was mainly due to the
cessation of mining activities at San
Julián DOB; the lower volumes
processed at Herradura, Fresnillo,
Ciénega and Saucito; the favourable
effect of the devaluation of the average
Mexican peso vs. the US dollar exchange
rate; and net efficiencies achieved,
principally at Herradura. These factors
were partly offset by cost inflation of 3.2%,
excluding the exchange rate devaluation.
As a result, gross profit more than
doubled to US$2,664.1 million, while
EBITDA3 increased by 80.7% to
US$2,796.2 million in 2025.
We maintained our strong financial
position, with US$2,756.5 million in cash
and other liquid funds as of 31
December 2025, a net increase of
US$1,458.7 million over the period,
having paid dividends of US$654.3
million: US$346.3 million in accordance
with our policy (adjusted for
extraordinary, non-cash items, in
particular the revaluation of the
Silverstream contract and the effect of
the exchange rate on deferred taxes), in
addition to US$308.0 million in
extraordinary dividends. We also
invested US$400.1 million in capex,
spent US$173.5 million on exploration
expenses, and paid US$369.5 million in
taxes, special mining rights, and
profit sharing.
47
Fresnillo plc Annual Report and Accounts 2025
The Group’s financial performance
in 2025 reflects the positive impact
of higher precious metals prices
together with a more stable
operational performance.”
FINANCIAL REVIEW
Income statement highlights
2025 2024
Amount
change Change %
US$ million US$ million US$million
Adjusted revenue¹ 4,645.3 3,639.9 1,005.4 27.6
Total revenue 4,561.2 3,496.4 1,064.8 30.5
Cost of sales (1,897.1) (2,250.1) 353.0 (15.7)
Gross profit 2,664.1 1,246.3 1,417.8 113.8
Exploration expenses 173.5 163.0 10.5 6.4
Operating profit 2,292.5 945.8 1,346.7 142.4
EBITDA³ 2,796.2 1,547.3 1,248.9 80.7
Special mining rights 193.2 127.0 66.2 52.1
Income tax (Tax income)⁴ 315.0 390.2 (75.2) (19.3)
Profit for the period 1,573.8 226.7 1,347.1 594.2
Profit for the period, excluding post-tax Silverstream effects 1,706.3 354.3 1,352.0 381.6
Basic and diluted earnings per share (US$/share)⁵ 1.878 0.191 1.687 883.2
Basic and diluted earnings per share, excluding post-tax Silverstream effects
(US$/share) 2.058 0.364 1.694 465.4
1 Adjusted revenue is revenue as disclosed in the income statement adjusted to exclude treatment and refining charges.
2 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.
3 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.
5 The weighted average number of Ordinary Shares was 736,893,589 for 2025 and 2024. See Note 18 to the consolidated financial statements.
The Group’s financial results are largely determined by the performance of our operations. However, other factors beyond our
control, including a number of macroeconomic variables, affect our financial results. These include:
Metals prices
The average realised silver price increased 51.4% from US$28.8 per ounce in 2024 to US$43.6 per ounce in 2025, while the average
realised gold price rose 44.0% to US$3,532.7 per ounce. The average realised zinc by-product price increased 1.6% to US$1.30 per
pound, with the lead by-product price decreasing 4.6% vs 2024 to US$0.88 per pound.
MX$/US$ exchange rate
Spot Exchange Rate at 31 December 2025 Spot Exchange Rate at 31 December 2024 Impact
$18.00 per US dollar $20.27 per US dollar The 11.4% spot revaluation had a
favourable effect on deferred taxes and
special mining rights
Average Mexican peso/US dollar exchange rate 2025 Average Mexican peso/US dollar exchange rate 2024 Impact
$19.22 per US dollar $18.30 per US dollar The 5.1% devaluation had a positive effect
of US$51.6 million on the Group’s costs
denominated in Mexican pesos
(approximately 45% of total costs) when
converted to US dollars.
Cost inflation
The Mexican Consumer Price Index for 2025 calculated cost inflation at 3.9%. However, to evaluate the Group’s cost inflation for
the year, we calculate the unit price increase for each component of adjusted production costs and take into consideration their
weighted average within the Group’s basket. The resulting cost deflation estimate for 2025 was 0.2%, which included the
favourable effect of the 5.1% average devaluation of the Mexican peso against the US dollar. Underlying cost inflation (cost
inflation excluding the devaluation of the Mexican peso vs. US dollar) was 3.2%. We conduct the same exercise for each individual
mine operation, whose basket components may carry different weightings.
The main components driving our cost inflation are listed below:
Labour
Unionised workers received on average a 7% increase in wages in Mexican pesos, while non-unionised employees received on
average a 6% increase in wages in Mexican pesos; when converted to US dollars this resulted in a weighted average labour
inflation of 1.5%.
48
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
FINANCIAL REVIEW CONTINUED
Energy
Electricity
The weighted average cost of electricity in US dollars remained broadly stable at US$8.18 cents per kWh in 2025.
Diesel
The weighted average cost of diesel decreased 4.0% in US dollars to 107.4 US cents per litre in 2025, compared to 111.9 US cents
per litre in 2024.
Operating materials
The weighted average unit prices of all operating materials increased by 2.2% over the year as the unit prices of steel balls for milling,
explosives and reagents, including sodium cyanide, continued to increase in US dollar terms, reflecting global inflationary pressures.
This was partly offset by the decrease in the unit price of lubricants. There has been no significant impact on the unit cost of operating
materials from the devaluation of the Mexican peso/US dollar exchange rate as the majority of these items are dollar-denominated.
Year-on-year
change in unit
price %
Steel balls for milling 4.3
Sodium cyanide 4.1
Explosives 3.3
Tyres 1.7
Other reagents 1.3
Steel for drilling (2.6)
Lubricants (7.6)
Weighted average of all operating materials 2.2
Contractors
Agreements are signed with each individual contractor company and include specific terms and conditions that cover not only
labour, but also operating materials, equipment and maintenance, among others. Contractor costs are mainly denominated in
Mexican pesos and are an important component of our total production costs. In 2025, increases per unit (i.e. per metre
developed/per tonne hauled) granted to contractors whose agreements were due for review during the period, resulted in a
weighted average decrease of approximately 1.3% in US dollars, after considering the devaluation of the Mexican peso vs
the US dollar.
The effects of the above external factors, combined with the Group’s internal variables, are further described below through the
main line items of the income statement.
Revenue
Consolidated revenue
2025 2024
Amount
Change Change %
US$ million US$ million US$ million
Adjusted revenue¹ 4,645.3 3,639.9 1,005.4 27.6
Treatment and refining charges (84.1) (143.6) 59.5 (41.4)
Total revenue 4,561.2 3,496.4 1,064.8 30.5
1 Adjusted revenue is revenue as disclosed in the income statement adjusted to exclude treatment and refining charges.
Adjusted revenue increased by US$1,005.4 million, driven by the higher gold and silver prices, partly offset by the lower volumes
of all metals sold. Changes in the contribution by metal were the result of the relative changes in metals prices and volumes
produced. The effect by metal, both in terms of volume and price, is shown in the table below.
Adjusted revenue
1
by metal
2025 2024
US$ million
%
contribution US$ million % contribution
Volume
variance US$
million
Price variance
US$ million
Total net
change US$
million Change %
Gold 2,071.2 44.6 1,514.7 41.6 (93.0) 649.4 556.5 36.7%
Silver 2,161.9 46.5 1,673.9 46.0 (309.9) 797.9 488.0 29.2%
Lead 124.6 2.7 139.8 3.8 (9.0) (6.2) (15.2) (10.9%)
Zinc 287.6 6.2 311.5 8.6 28.8 4.9 (23.9) (7.7%)
Total Adjusted revenue 4,645.3 100 3,639.9 100.0 (440.8) 1,446.1 1,005.4 27.6%
1 Adjusted revenue is revenue as disclosed in the income statement adjusted to exclude treatment and refining charges.
49
Fresnillo plc Annual Report and Accounts 2025
Adjusted revenue by mine
The contribution by mine to Adjusted revenues is outlined in the table below. This is expected to change further in the future, as
new projects are incorporated into the Group’s operations and as precious metals prices fluctuate.
2025 2024
(US$ million) % contribution (US$ million) % contribution Change %
Herradura 1,241.2 26.7 884.7 24.3 40.3
Saucito 929.9 20.0 760.0 20.9 22.4
Juanicipio 922.6 19.9 662.8 18.2 39.2
Fresnillo 739.3 15.9 591.2 16.2 25.1
San Julián (Veins) 527.9 11.4 354.5 9.7 48.9
Ciénega 232.4 5.0 228.4 6.3 1.8
Noche Buena 52.0 1.1 43.4 1.2 19.8
San Julián (DOB) 0.0 0.0 115.1 3.2 (100.0)
Total 4,645.3 100.0 3,639.9 100.0 27.6
Treatment and refining charges
Treatment and refining charges
1
are reviewed annually using international benchmarks. Treatment charges per tonne of lead
and zinc concentrate and silver refining charges decreased substantially in dollar terms by 40.7%, 41.8% and 41.6%, respectively.
These factors, combined with the lower volumes of lead and zinc concentrates shipped from our mines to Met-Mex, resulted in
a 41.4% decrease in treatment and refining charges set out in the income statement in absolute terms when compared to 2024.
1 Treatment and refining charges include the cost of treatment and refining as well as the margin charged by the refiner.
Cost of sales
Concept
2025 2024
Amount
Change
Change %US$ million US$ million US$ million
Adjusted production costs² 1,406.7 1,582.2 (175.5) (11.1)
Depreciation 490.6 619.8 (129.2) (20.8)
Profit sharing 15.7 12.3 3.4 27.6
Change in work in progress (22.4) 35.8 (58.2) N/A
Unproductive Costs³ 6.5 — 6.5 100.0
Cost of sales 1,897.1 2,250.1 (353.0) (15.7)
2 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.
3 Unproductive costs mainly relate to expenses incurred on assets that are not currently in operation.
50
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
FINANCIAL REVIEW CONTINUED
Cost of sales decreased 15.7% to 1,897.1 million in 2025. The main factors driving the US$353.0 million decrease are listed below.
Adjusted production costs decreased by US$175.5 million as shown in the graph below:
USD Million
45.8
(13.8)
(38.0)
(44.2)
(51.6)
(73.7) (175.5)
Cost inflation
(+3.2%)
excluding the
MXP/USD
devaluation
effect
Net efficiencies
mainly at
Herradura
Others San Julián DOB
mine closure
MXP/USD
Devaluation
effect (+5.1%)
Net decrease in
volume of ore
processed
Decrease in
Adjusted
Production Cost
(200.0)
(150.0)
(100.0)
(50.0)
0.0
50.0
100.0
Ongoing efforts to implement cost reduction initiatives have continued, generating positive results in 2025 and driving US$13.8 million
in net worth of operating efficiencies. These included efficiencies and cost reductions at Herradura (-US$39.6 million), and decreased
contractor costs for development at Ciénega (-US$6.7 million). This achievement was offset by inefficiencies and cost increases at
Fresnillo as a result of increased contractor costs for development, increased mechanical and electrical maintenance and higher
consumption of explosives and milling balls at (+US$27.5 million), increased electrical and mechanical maintenance at Saucito
(+US$3.4 million), and higher IT costs and increased mechanical maintenance at Juanicipio (+US$1.6 million).
Others reflect non-mining/core process costs converted from a commercial arrangement to a tolling agreement.
The decrease in depreciation (-US$129.2 million) was mainly due to lower depreciation of the asset base at San Julián as the DOB
approached the end of its life, with its assets being fully depreciated in 2024, and, to a lesser extent, the reduced depletion factor
at Ciénega and Saucito.
51
Fresnillo plc Annual Report and Accounts 2025
Gross profit
Gross profit is a key financial indicator of profitability at each business unit and the Fresnillo Group as a whole.
Total gross profit doubled from US$1,246.3 million in 2024 to US$2,664.1 million in 2025.
The main factors driving the US$1,417.8 million increase in gross profit are shown in the graphic below:
USD Million
1,432
129.1
59.5
51.6
39.2
18.9
13.8
(45.8)
(286.4)
1,417.8
Higher
Metals
Prices (Ag
+51.5% and
Au
+44.0%)
Lower
depreciation
Lower
treatment
and
refining
charges
MXP/USD
Devaluation
effect
(+5.1%)
Others
Gold
ounces
increased
in Noche
Buena's
inventory
Net
efficiencies
and lower
development
mainly at
Herradura
Cost
inflation
(+3.2%)
excluding
the MXP/
USD
devaluation
effect
Lower
sales
volume:
Ag -14.7%,
Au -5.0%,
Pb -6.6%,
Zn -9.2%
2025 Gross
Profit
—
500
1,000
1,500
2,000
The contribution by mine to the Group’s consolidated gross profit and the year-on-year variations are outlined in the table below:
Contribution by mine to consolidated gross profit
2025 2024 Change
US$ million % contribution US$ million % contribution US$ million %
Herradura 716.2 26.9 274.2 22.0 442.0 161.2
Juanicipio 661.7 24.9 384.8 31.0 276.9 72.0
Saucito 543.1 20.4 281.7 22.7 261.4 92.8
Fresnillo 339.1 12.8 180.0 14.5 159.1 88.4
San Julián 289.3 10.9 89.3 7.2 200.0 224.0
Ciénega 77.7 2.9 29.6 2.4 48.1 162.5
Noche Buena 31.1 1.2 3.2 0.2 27.9 871.9
Total for operating mines 2,658.2 100.0 1,242.8 100.0 1,415.4 113.9
Other subsidiaries 5.9 3.5 2.4 68.6
Total Fresnillo plc 2,664.1 1,246.3 1,417.8 113.8
Administrative and corporate expenses
Administrative and corporate expenses increased 8.0% from US$109.5 million in 2024 to US$118.2 million in 2025, primarily due to
an increase in personnel as well as performance bonuses linked to operating and financial results paid to administrative
personnel, partly mitigated by the favourable effect of the devaluation of the Mexican peso vs the US dollar on administrative
expenses denominated in pesos.
52
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
FINANCIAL REVIEW CONTINUED
Exploration expenses
Exploration expenses increased 6.4% from US$163.0 million in 2024 to US$173.5 million in 2025. In line with our strategy,
exploration continued to focus on the Fresnillo district and the Ciénega and San Julián mines, prioritising efforts to increase the
resource base, convert resources into reserves and improve the confidence of the grade distribution in reserves. An additional
US$2.6 million was capitalised, mainly relating to exploration expenses at the Guanajuato and Orisyvo projects. As a result, risk
capital invested in exploration totalled US$176.1 million in 2025, compared to US$165.0 million in 2024 (of which US$2.0 million
was capitalised). This represents a year-on-year increase of 6.7%.
EBITDA
EBITDA is a gauge of the Group’s financial performance and a key indicator to measure debt capacity. It is calculated as profit for
the year from continuing operations before income tax, less finance income, plus finance costs, less foreign exchange gain/(loss),
less the net Silverstream effects and other operating income plus other operating expenses and depreciation.
2025 2024 Amount Change %
US$ million US$ million US$ million
Profit from continuing operations before income tax
2,082.0
743.9 1,338.1 179.9
– Finance income
(92.5)
(46.9) (45.6) 97.2
+ Finance costs
68.5
73.6 (5.1) (6.9)
– Revaluation effects of Silverstream contract
189.2
182.3 6.9 3.8
– Foreign exchange loss, net
45.2
(7.0) 52.2 N/A
– Other operating income
(20.2)
(39.6) 19.4 (49.0)
+ Other operating expense
33.3
21.3 12.0 56.3
+ Depreciation
490.6
619.8 (129.2) (20.8)
EBITDA
2,796.2
1,547.3 1,248.9 80.7
EBITDA margin
61.3
44.3 — —
In 2025, EBITDA increased 80.7% to US$2,796.2 million, primarily driven by the higher gross profit. EBITDA margin expressed as
a percentage of revenue increased, from 44.3% in 2024 to 61.3% in 2025.
Other operating income and expense
In 2025, a net loss of US$13.1 million was recognised in the income statement primarily as a result of the assets derecognised in
connection with new projects which, in accordance with the energy supply agreement with the state-owned company (CFE), are
required for grid connection and must be transferred to CFE. However, this compared negatively with the net gain of US$18.3
million recorded in 2024, mainly due to higher proceeds obtained from the sale of the non-core Guazapares mining concessions
to Coeur Mining.
Silverstream effects
As reported in the 2025 Interim Report, following a thorough evaluation of strategic options, it was concluded that terminating
the Silverstream contract via a buy-back was in the best interests of Fresnillo and its shareholders. The decision to end the
Agreement followed a comprehensive review by Fresnillo and its independent advisers SRK, of the ongoing operational and
financial issues at the Sabinas mine. This resulted in a US$132.4 million net loss after taxes in the income statement, including the
impacts of amortisation. Further information related to the Silverstream contract is provided in notes 14 and 30 to the
consolidated financial statements.
Net finance costs
Net finance income of US$24.0 million compared favourably to the US$26.6 million loss recorded in 2024. This was mainly driven
by the increased interest on short-term deposits and investments, net of the interest paid on the 4.250% Senior Notes due 2050.
Taxation
Income tax expense for the year was US$315.0 million, which compared favourably to the tax expense of US$390.2 million in 2024.
The effective tax rate, excluding the special mining rights, was 15.1% (2024: 52.5%), compared to the 30% statutory tax rate. The
reason for the variation in the effective tax rate is the difference between the tax and the accounting treatment related mainly to:
i) the effect of the spot exchange rate on the tax value of assets and liabilities; ii) the special mining rights deductible for
corporate income tax; iii) the effect of Mexican inflation on the restatement of tax value of fixed assets; and iv) the benefit from
the lower border tax, which applied to the Herradura and Noche Buena mines, as described in the table below:
2025 2024
Spot exchange rate devaluation (revaluation) (11.4) 20.0
Exchange rate effect on tax value of assets and liabilities (US$192.5 million) US$300.2 million
Special mining right deductible for corporate income tax (US$58.4 million) (US$38.1 million)
Inflationary uplift of the tax base of assets and liabilities (US$50.7 million) (US$55.2 million)
Benefit from the lower border tax, which applied to Herradura and Noche Buena mines (US$24.0 million)
Mining rights in 2025 were US$193.2 million compared to mining rights of US$127.0 million charged in 2024, mainly as a result of
the increase in the profit base used in the calculation along with the increase from 7.5% to 8.5% in 2025.
53
Fresnillo plc Annual Report and Accounts 2025
Profit for the period
Profit for the year increased year-on-year by 594.2% as a result of the factors described above.
2025 2024
Amount
change Change %
US$ million US$ million US$ million
Profit for the period 1,573.8 226.7 1,347.1 594.2
Profit for the period, excluding post-tax Silverstream effects 1,706.3 354.3 1,352.0 381.6
Profit due to non-controlling interests1 189.8 85.8 104.0 121.2
Profit attributable to equity shareholders of the Group 1,384.0 140.9 1,243.1 882.3
Basic and diluted earnings per share (US$/share)² 1.878 0.191 1.687 883.2
Basic and diluted earnings per share, excluding post-tax Silverstream effects
(US$/share) 2.058 0.364 1.694 465.4
1 The increase reflects the higher profit generated at Juanicipio, where Pan American Silver owns 44% of the outstanding shares.
2 The weighted average number of Ordinary Shares was 736,893,589 for 2025 and 2024. See Note 18 to the consolidated financial statements.
Cash flow
A summary of the key items from the cash flow statement:
2025 2024
Amount
change Change %
Cash generated by operations before changes in working capital 2,787.3 1,559.8 1,227.5 78.7
Increase in working capital (128.1) (162.9) 34.8 (21.4)
Taxes and employee profit sharing paid (369.5) (97.1) (272.4) 280.5
Net cash from operating activities 2,289.7 1,299.8 989.9 76.2
Disposal of equity instruments and dividends 178.3 3.6 174.7 >100
Silverstream contract 85.9 30.0 55.9 186.3
Financial gains/(expenses) and foreign exchange effects 48.7 (9.8) 58.5 N/A
Proceeds from the sales of mining concessions (lay-back agreement in 2023.
See Note 2 to consolidated financial statements) 16.1 10.0 6.1 61.0
Dividends paid to shareholders of the Company (654.3) (78.2) (576.1) 736.7
Purchase of property, plant and equipment (400.1) (370.5) (29.6) 8.0
Dividends paid to non-controlling interests and loans by minority
shareholders (105.2) (118.8) 13.6 (11.4)
Net (decrease)/increase in cash during the period after foreign exchange
differences 1,458.7 763.2 695.5 91.1
Cash and other liquid funds at 31 December¹ 2,756.5 1,297.8 1,458.7 112.4
1 Cash and other liquid funds are disclosed in Note 17 to the consolidated financial statements.
Cash generated by operations before changes in working capital increased 78.7% to US$2,787.3 million, primarily due to
higher precious metals prices. Working capital increased US$128.1 million, mainly due to: i) a US$208.3 million increase in
trade receivables from related parties principally because of higher precious metals prices; ii) an increase in ore inventories
of US$20.4 million; and iii) a US$20.1 million increase in prepayments. This was partly offset by a US$120.7 million increase in
trade payables.
Taxes and employee profit sharing paid increased to US$369.5 million, mainly due to: i) the higher final income tax paid in 2025,
net of provisional taxes paid, corresponding to the 2024 tax fiscal year; ii) an increase in provisional tax payments paid in 2025;
iii) an increase in mining rights payments; and iv) higher profit sharing paid.
54
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
FINANCIAL REVIEW CONTINUED
As a result of the above factors, net cash from operating activities increased 76.2% to US$2,289.7 million in 2025.
In addition, the Group benefited from additional sources of cash, primarily generated by:
a. Proceeds from the sale of Mag Silver shares and dividends received for US$178.3 million.
b. Proceeds from the Silverstream contract of US$85.9 million.
c. Financial gains and foreign exchange effects of US$48.7 million, which compared favourably to the financial expenses and
foreign exchange effects of US$9.8 million in 2024. This was primarily driven by the increased interest on short-term deposits
and investments, net of interest paid on the 4.250% Senior Notes due 2050.
Main uses of funds were:
a. Dividends paid to shareholders of the Group in 2025 totalled US$654.3 million, compared with US$78.2 million in 2024. The
2025 payment comprised: i) the 2024 final ordinary dividend of 26.1 cents per share paid in May 2025, totalling US$192.3 million,
in line with our dividend policy, which includes a consideration of profits generated in the year, adjusted for the extraordinary,
non-cash items, in particular the revaluation of the Silverstream contract and the effect of the exchange rate on deferred taxes,
ii) a one-off special dividend of 41.8 cents per share also paid in May 2025, totalling US$308.0 million, and iii) the 2025 interim
ordinary dividend paid in September of US$153.3 million, equivalent to 20.8 cents per share.
b. The purchase of property, plant and equipment for a total of US$400.1 million. Capital expenditures for 2025 are described in
the Review of Operations section (see pages 30-41).
c. Dividends and loans paid to non-controlling interest US$105.2 million decreased 11.4% vs 2024.
The sources and uses of funds described above resulted in an increase in net cash of US$1,458.7 million (net increase in cash and
other liquid assets), which combined with the US$1,297.8 million balance at the beginning of the year resulted in cash and other
liquid assets of US$2,756.5 million at the end of December 2025.
Balance sheet
Fresnillo plc continued to maintain a solid financial position during the period with cash and other liquid funds of US$2,756.5 million
as of 31 December 2025. Taking this and the US$839.9 million outstanding Senior Notes, Fresnillo plc’s net cash was US$1,916.6 million
as of 31 December 2025. This compares positively to the net cash of US$458.3 million as of 31 December 2024.
Inventories increased 4.2% to US$502.6 million, mainly due to the increased inventories of lead and zinc concentrates at Fresnillo
and Saucito.
Dividends
Based on the Group’s 2025 performance, the Directors have recommended a final ordinary dividend of 108.12 US cents per
Ordinary Share, which will be paid on 29 May 2026 to shareholders on the register on 24 April 2026. The dividend will be paid in
UK pounds sterling unless shareholders elect to be paid in US dollars. This is in addition to the interim ordinary dividend of
20.8 US cents per share. This is above the Group’s traditional dividend policy to pay out 33-50% of the profit attributable to equity
shareholders of the company after making certain customary adjustments to exclude extraordinary non-cash effects in the
income statement, and was permitted by strong cash generation throughout the year, which resulted in a high cash balance at
year end. The company continues to maintain a healthy cash balance to invest in growth-focused projects, along with an
additional buffer for any M&A opportunities that may present themselves in the future. The dividend policy remains unchanged.
As disclosed in previous reports, the corporate income tax reform introduced in Mexico in 2014 created a withholding tax
obligation of 10% relating to the payment of dividends, including to foreign nationals. The 2025 final ordinary dividend will be
subject to this withholding obligation.
55
Fresnillo plc Annual Report and Accounts 2025
Dear shareholder,
Mining plays a vital role in addressing
global challenges, from modernising
infrastructure and technology to
advancing the energy transition. As the
first link within many commercial and
industrial value chains, mining is
essential to a wide range of sectors.
However, as a resource-intensive
industry, mining demands a disciplined,
forward-looking approach to managing
its impacts.
The HSECR Committee assists the
Board in monitoring the systems to deal
with the management of health, safety,
environment and community relations
risks. It reviews the Company’s
strategies and performance in these
areas and monitors progress against
Board-approved commitments and
objectives, helping ensure that we
follow responsible mining practices that
support long-term value creation.
Over the past year, the Committee has
focused on strengthening its forward-
looking perspective. We have
sharpened the focus of our discussions
and directed greater attention to the
issues we believe are — and will
increasingly become — the most
material to the Company’s future. This
approach is helping us to better align
long-term ambitions with day-to-day
execution, while reinforcing that
sustaining today’s progress — and
achieving tomorrow’s — depends on
consistency, discipline and continuous
improvement. With this in mind, I share
the key highlights of the period.
Caring for Our People
Supporting the Company’s growth
means strengthening the wellbeing
pillars of our workforce — beginning
with safety. During the year, the
Company recorded reductions of 17.6%
in total recordable injury frequency rates
(TRIFR) and 13.7% in lost-time injury
frequency rates (LTIFR) compared to
2024, reducing them to 6.26 and 4.10,
respectively — the lowest levels to date.
However, two fatal accidents in 2025
underline the imperative of continued
vigilance. We extend our sincere
condolences to the families, colleagues
and communities affected. These
unacceptable incidents remind us that
we are far from where we need to be:
zero fatalities remains our
uncompromising goal and achieving it
demands unwavering commitment and
operational rigour across every layer of
the organisation.
Following the investigations of these
fatal accidents, the Company
immediately implemented actions
driven by the short-term findings, with
further measures incorporated into the
2026 operational plan across priority
areas — including critical risk
management, preventive reporting and
visible leadership. To reinforce
awareness and accountability, lessons
learned were shared with leadership
teams at all sites. At the same time,
management advanced the rollout of a
new Contractors' Safety Standard,
designed to harmonise contractor
requirements and establish a more
comprehensive framework for
evaluating their performance.
Leadership teams — together with
unions and contractor representatives
— took part in the symbolic signing of
the new Safety Standard during
quarterly meetings, reinforcing
collective accountability for how safety
must be managed at Fresnillo every
single day.
Wellbeing, however, extends beyond
physical safety. It also derives from
workplaces that are inclusive and
promote healthy habits, both physically
and mentally. In 2025, the Company
formalised its inclusion efforts through
the creation of the Labour Inclusion
Committee, strengthening governance
around diversity commitments and
guiding initiatives aligned with the
broader roadmap and evolving
ambitions. In addition, the Company
continued to develop and evolve its
approach to mental health, establishing
an in-house team of psychologists to
help employees build psychological,
emotional and social resilience —
reinforcing the kind of work
environment that sustains wellbeing,
safety and long-term performance.
Protecting the Environment
Protecting the environment today is
fundamental to securing the Company’s
future. The way it manages land,
biodiversity, water and emissions
determines not only its impact on
ecosystems and neighbouring
communities, but also its licence to
operate and its capacity to grow. With this
in mind, the Company continues to
strengthen its environmental
commitments, the governance that
underpins them and the results they
deliver.
56
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
Looking ahead, our 2026
vision remains clear: zero
fatalities and a TRIFR aligned
the International Council on
Mining and Metals (ICMM)
standards.”
LETTER FROM THE CHAIRMAN OF THE HEALTH, SAFETY, ENVIRONMENT & COMMUNITY
RELATIONS (HSECR) COMMITTEE
During the year, the Company
advanced two strategic initiatives
focused on priority ecosystems. Led by
the Ministry of the Environment
(SEMARNAT), the Company subscribed
to the National Agreement for Forests,
Jungles and Mangroves, reinforcing our
alignment with national efforts to
strengthen sustainable forest
management from 2026 onward. In
parallel, at Minera Penmont, the
Company renewed the collaboration
agreement with Sonora’s Ecology and
Sustainable Development Commission
(CEDES) to continue supporting the
conservation of the Sonoran pronghorn
— a critically endangered subspecies
endemic to the Sonoran Desert. These
efforts will be developed in coordination
with the relevant authorities and
specialists over the coming years.
The Company also continued
strengthening the systems used to
manage environmental risks. Following
the completion of the Environmental
Risk Portfolio in 2025, the focus will now
shift to deployment across business
units — prioritising the most material
risks, reinforcing critical controls and
ensuring clear accountability and
monitoring. In parallel, the Tailings
Management System — aligned with
the Mining Association of Canada (MAC)
and the Canadian Dam Association
(CDA) standards — reached 70%
implementation across all our facilities,
an increase from 59% in 2024 and a
milestone in the safe operation of
tailings storage facilities. This represents
a significant move away from
incremental care and maintenance and
towards strategic multiyear solutions,
enabling increased safety and
operational effectiveness.
Resource security is essential not only
for sustaining operations, but for
supporting neighbouring communities
which depend on shared natural
systems. In 2025, the Company
continued to advance its water-
stewardship efforts, replacing
freshwater with treated municipal
wastewater. This accounted for 80.9% of
water usage in the Fresnillo District,
broadly in line with 2024. The Company
also continued to achieve its renewable
electricity consumption goal beyond the
2030 target of 75%, reaching 77.8%
during the year.
Partnering with Our Communities
Just as responsible resource management
is essential to our future, so too is
supporting the wellbeing of neighbouring
communities. In 2025, the Company
continued to deliver awareness
workshops for contractors, underlining
their responsibility for respectful conduct
in and around host communities. Our
social investment, which totalled US$4.56
million in 2025, is part of our strategic aim
to deliver sustainable growth and
economic opportunity. To this end, we
consolidated the social investment
portfolio key priorities such as health and
wellbeing, education, access to and
conservation of water, local economic
entrepreneurship and the protection of
local ecosystems. Developed through
ongoing dialogue with communities and
implemented in partnership with public
institutions, NGOs and civil society, these
initiatives aim to expand access to
essential services and strengthen local
capabilities that endure beyond the life of
our operations.
Looking forward
We will continue to prioritise operational
excellence and strive for a zero-harm
approach to people and the
environment, all underpinned by strong
governance and ethical conduct. While
progress is not always linear, we believe
the consistency of our approach to
responsible mining enhances
operational resilience, empowers our
workforce, supports local communities
and creates shared, lasting value for
society. The HSECR Committee remains
committed to providing comprehensive
oversight of the matters within its remit,
while supporting continued progress in
the Company’s strategy and overall
ESG performance.
Yours faithfully,
Arturo Fernández
Chairman, Health, Safety, Environment
and Community Relations Committee
Role of the Committee
The role and duties of the HSECR
Committee are set out in its terms
of reference, a copy of which can be
found on the Company’s website.
HSECR Committee Membership
Mr Arturo Fernández (Chair), Dame
Judith Macgregor and Mr
Fernando Ruiz.
Key contributors: Chief Executive
Officer, Chief Operating Officer North,
Chief Operating Officer Central, VP
Projects and Construction (Peñoles),
General Counsel and Compliance
Officer, Assistant VP Safety and
Environment, Medical Services
Manager, Community Relations
Manager, and ESG Compliance
Manager.
HSECR Committee Activity
During the year, the Committee
met in accordance with its terms of
reference.
57
Fresnillo plc Annual Report and Accounts 2025
2025 ESG
HIGHLIGHTS
Modern Slavery: DEI: DEI:
Raised our CCLA
assessment to
Evolving Good
Practice (Tier 2)
Received the gold
and innovation
awards at Herradura
from Sello WIM
México
Creation of Labour
Inclusion
Committee
Safety: Water: Renewables: TSFs:
Achieved a
Reduced freshwater
consumption by
Consumed Achieved
6.26
16.5%
77.8%
70%
TRIFR, our lowest to
date
at the Fresnillo
District
electricity from
renewable sources
implementation of
our Tailings
Management
System across all
our facilities
58
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE
We believe that precious
metals are part of the solution
to pressing global challenges.
They are vital components in
equipment needed for everything from
the successful diagnosis and treatment
of life-changing illnesses to a smooth
energy transition. We strive to mine
these resources in a way that supports
lives and livelihoods long into the future.
Our sustainability strategy constantly
challenges us to set new standards in
mining in order to operate responsibly
and increase our contribution to
broader society. By integrating
sustainable development
considerations into our business goals,
we aim to reduce our environmental
footprint while supporting the
wellbeing, resilience and quality of life of
our workers and communities.
Mining has the potential to drive
economic and social progress when
conducted responsibly. To safeguard
these benefits, we maintain strong
governance and ethical standards,
ensuring transparency and integrity
across our operations. Through
proactive engagement with employees,
unions, contractors, suppliers,
communities, government entities and
NGOs, we foster positive relationships
while proactively mitigating risks such
as bribery, corruption, money
laundering, fraud, and human rights
violations.
Collaboration underpins our
sustainability strategy. Earning the trust
of our diverse stakeholders is integral to
our continued success. Strong
partnerships with different entities
provide us with insights and the means
to strengthen our strategy and explore
new avenues. Long-term relationships
with our workforce enable us to build a
robust pipeline of talent to progress our
goals, while positive connections with
communities secure vital support in
pursuit of our ambitions.
It is through collaboration that we
recognise our stakeholders’ interests
and effectively address the matters that
are important to them. Forging
reciprocal relationships also widens our
sphere of influence, extending the
positive impact of our work. By creating
the positive change that our
stakeholders value, we will begin to
dispel negative perceptions of mining,
helping to firmly cement our role in the
future economy. See our Stakeholders
section on pages 20-27.
To achieve our long-term vision, we are focusing our efforts on four key areas that bring together the benefits of precious metals and
sustainable mining practices:
STRENGTHENING MODERN
MINING PRACTICES
To limit our impact on the planet, we strive for
zero-harm to people and the environment.
Robust policies and responsible management
of infrastructure and resources, backed by
operational excellence, hold us to high
standards and drive continuous improvement
in managing risks and leveraging new
technologies.
EMPOWERING PEOPLE
Modern mining offers rewarding careers and
builds lifelong skills. We nurture a
collaborative, supportive environment to
encourage people to forge a long, rewarding
career with us, where they feel involved and
engaged in progressing our strategy and
performance.
ADDRESSING LOCAL AND
REGIONAL PRIORITIES
We want to use our influence to be a force for
improvement in areas where we operate. By
engaging with our neighbouring
communities, we are working to address their
priorities and enhance their resilience for long-
term wellbeing and prosperity.
GENERATING SHARED VALUE
As a responsible corporate citizen, we work to
distribute the benefits of our operations locally
and nationally through robust policies and
oversight.
59
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE
OUR APPROACH TO SUSTAINABLE MINING
Engagement
We actively engage with governments,
NGOs, business associations, and
industry stakeholders to drive
environmental and social progress.
These partnerships generate valuable
insights, drive innovation, allocate
resources effectively, and promote best
practices across the industry. However,
our commitment goes beyond mining:
• We participate in the Silver Institute’s
initiative to further study the life cycle
of silver and its role as a climate-smart
metal.
• We engage in innovation-driven
partnerships, such as the Colorado
Cleantech Challenge, which connects
mining companies with clean
technology providers to collaboratively
address and overcome the
environmental challenges inherent in
our industry, enhancing environmental
performance and industry sustainability.
• We are members of the IFRS
Sustainability Alliance and, through
management membership, form part
of the IFRS Sustainability Reference
Group with the purpose of expanding
our knowledge and contributing to
technical discussions on setting
sustainability standards.
• In Mexico, we are part of CESPEDES,
the national chapter of the World
Business Council for Sustainable
Development (WBCSD), collaborating
on best practices and policy
engagement.
• Finally, we actively engage in market
research and sharing best practices
and recently contributed to the
development of the Mexican Stock
Exchange’s gender equity guide.
Basis of preparation and reporting
standards
Fresnillo plc prepares its sustainability
disclosures in accordance with UK
regulatory requirements, its country of
incorporation and primary listing. As a
foreign issuer in Mexico, the Company is
not subject to mandatory application of
the Mexican sustainability reporting
standards under NIIF S1 and NIIF S2. In
line with this regulation, the Company
discloses that the sustainability
information contained in this report has
not been prepared in accordance with
NIIF S1 or NIIF S2.
The Company continues to monitor
regulatory developments in the UK,
including the rollout of sustainability-
related disclosure requirements, and will
adapt its reporting approach as these
requirements become effective.
60
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Materiality assessment
We actively engage with stakeholders to
identify, assess, and prioritise material
issues that impact both our business and
our stakeholders. This process, known as
materiality assessment, informs our
sustainability strategy and non-financial
reporting, ensuring alignment with
evolving societal expectations and
industry trends. Given the dynamic nature
of our industry, we conduct in-depth
materiality assessments periodically,
ensuring best practices and alignment
with industry standards.
The materiality assessment we
conducted in 2023, focuses on
operational mining sites in Mexico. As in
previous years, we assessed materiality
for both the present and the next 10
years, aligning with the medium-term
scenarios in our Enterprise Risk
Management Framework and the
Company’s Strategic Plan.
The assessment outcomes were
communicated internally and
incorporated into our sustainability
strategy and disclosures, ensuring
transparency and alignment with
business priorities. Issues identified as
high priority for both the business and
external stakeholders are being actively
managed and strategically
communicated.
Materiality 2023 Materiality 2033
Biodiversity conservation Innovation and technology
Climate change Mine closure
Community relations Relationship with government and authorities
Data privacy and cybersecurity Relationship with Indigenous People
Diversity, equity and inclusion Responsible value chain
Environmental management Talent development
Ethics and corporate integrity Waste management
Governance, risk and crisis management Water management
Health, safety and occupational wellbeing
Human rights
Relevance of material issues:
High
Medium
Low
61
Fresnillo plc Annual Report and Accounts 2025
Our sustainability framework
Our sustainability strategy is structured around four strategic pillars: Doing
Business Ethically and Responsibly, Caring for Our People, Protecting the
Environment, and Partnering with Our Communities.
These pillars guide our efforts in addressing material issues that impact our business and stakeholders. By setting clear
commitments and tracking measurable progress, we ensure accountability, drive continuous improvement, and align our
actions with long-term sustainability commitments. See our ESG KPIs Tables in pages 111-117
Pillar Overall ambitions Pillar & ambitions Material issues Page 61
Intersection with principal risks
Pages 120-142
DOING BUSINESS
ETHICALLY AND
RESPONSIBLY
See pages 65-68
We affirm our ethical
culture through our
behaviour and actions
• Ethics culture
• Responsible
business
Data privacy and cybersecurity
Potential actions by the government
Ethics and corporate integrity
Cybersecurity
Relationship with government
and authorities
Human resources
Responsible value chain
CARING FOR OUR
PEOPLE
See pages 69-82
We prioritise our
workforce’s health,
safety and wellbeing
• Our culture
• Our people
• Safety
• Health
Diversity, equity and inclusion Safety
Health, safety and occupational
wellbeing
Union Relations
Human Rights Human resources
Innovation and technology
Talent development
PROTECTING THE
ENVIRONMENT
See pages 83-103
We optimise resource
consumption to curb
our impacts and are
accountable for our
environmental footprint
• Energy
• Climate change
• Waste
management
• Water
stewardship
• Biodiversity
• Mine closure
Biodiversity conservation
Climate change
Climate change Tailings dams
Environmental management
Environmental incidents
Innovation and technology
Mine closure
Waste management
Water management
PARTNERING WITH
OUR COMMUNITIES
See pages 104-109
We engage
meaningfully with our
communities and
support the issues that
matter to them
• Community
relations
• Socio-economic
development
• Respecting
human rights
Community relations Security
Human Rights Access to Land
Relationship with Indigenous
People
Licence to Operate
62
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
SDG alignment Our commitments Our objectives Our progress
• Embed a culture of trust and
accountability that strengthens
operational integrity.
• Be accountable for our actions
across the value chain.
• Strengthen understanding of and
confidence in the Whistleblowing
Mechanism.
• Deployed communications campaign
to avoid information leakage and fear
of retaliation.
• Empower people to make the right
decisions for the safety of our
operations.
• Reduce TRIFR rate to the ICMM
range.
• Reduced TRIFR to 6.26 from 7.59 in
2024
• Continually work towards achieving
zero fatalities.
• Achieve zero fatalities. • Unfortunately, we experienced two
fatalities in the period.
• Provide safe and healthy working
environments.
• Reduce new cases of occupational
illness.
• Reduced new cases of occupational
illness from 46 to 33, a 28% decrease.
• Foster diversity, equity, and inclusion
in our workforce and increase the
overall participation of women.
• Increase representation of women in
our workforce to 12% and in
managerial roles to 8% by 2025.
• Achieved 12.63% of women in our
workforce and 10.56% in managerial
roles.
• Enhance resource efficiency and
reduce consumption.
• Protect ecosystems surrounding our
operations.
• Achieve 75% renewables in electricity
mix by 2030.
• Achieved 77.8% of renewable electricity
consumption
• Use water efficiently and responsibly,
reducing freshwater consumption.
• Decreased freshwater consumption by
16.5% in Fresnillo District, despite a 1.7%
increase company-wide.
• Manage waste responsibly throughout
the lifecycle of our operations.
• Implement the Tailings Management
System across all mines.
• Achieved 70% progress, up from 59% in
2024.
• Uplift communities through social
investment programmes to improve
local services and infrastructure, and
promote entrepreneurship.
• Drive community growth through
initiatives that support community
aspirations.
• Social investment totalled US$4.56
million, down 4.5% from 2024.
• Contribute to local economy
through responsible tax policies,
employment and procurement.
• Promote local employment and
procurement.
• Economic value distributed totalled
US$ 2,173.8 million, down 1% from 2024.
63
Fresnillo plc Annual Report and Accounts 2025
Our culture
We recognise that organisational culture is the foundation of safe and successful operations. Grounded in our values —
trust, responsibility and respect, integrity and loyalty — this culture guides decisions and behaviour at every level. It fosters
mutual respect, commitment and operational excellence, helping protect our people while supporting the achievement of the
Company’s strategic objectives.
DESIRED BEHAVIOURS
Our culture is anchored in key competencies that define the expected behaviours across all processes and levels of the
organisation. They ensure the safety of our operations while fostering the wellbeing and development of our people:
• Teamwork: We promote effective collaboration, recognising that collective efforts drive our success.
• Clear and Effective Communication: We encourage open and transparent information flow, essential for informed
decision-making and agile problem-solving.
• Agile Adaptability: We value the ability to adjust quickly to change and leverage emerging opportunities.
• Effective Execution: We prioritise operational discipline and a results-driven approach to maintain excellence in our
dailyactivities.
• Growth and Development: We invest in our people, providing tools, training, and opportunities to help them achieve
theirgoals.
• Emotional Intelligence: We foster self-regulation and empathy; essential qualities for respectful and constructive
workenvironments.
BOARD OVERSIGHT
OUTCOMES FROM MONITORING OUR CULTURE
• Ensures the alignment of the Company’s Purpose,
strategy, values, and culture.
• Monitors the Company’s performance through specific
Board Committees and working sessions.
• Foster initiatives that support our business objectives and
promote our workforce’s wellbeing.
• Enhance the quality of leadership practices through
direct mentoring from leaders and by improving
workforce competencies.
• Continue to evolve our DEI strategy and effectively
communicate the positive impacts achieved.
See Board Leadership and Company Purpose section in
pages156-160
MONITORING OUR CULTURE
EMPLOYEE ENGAGEMENT
• Organisational climate surveys:
– Employee and contractor satisfaction
– Organisational culture
– Psychosocial risks
• Safety Culture surveys:
– Safety perception (LEAL)
• Ethics Culture survey:
– ‘World’s Most Ethical Companies’ (Ethisphere)
• KPIs:
– Whistleblowing and ethical conduct investigations
– Turnover rate
– Diversity indicators
– Training
• Building organisational culture:
– Ethics and compliance framework
– ‘I Care, We Care’ philosophy
– Living in Balance strategy
– Harassment Prevention programme
– Diversity, equity and inclusion strategy
• Giving employees a voice and safe channels:
– Workplace conduct commissioners
– Whistleblowing mechanism (Línea Correcta)
– I Care, We Care Committee
– Safety and hygiene committees
– Workforce engagement sessions with designated
NED
• Leading with dialogue and accountability:
– Visible leadership in the field
– Constructive, trust-based dialogue with unions
See Sustainability section in pages 58-117 See Sustainability section in pages 58-117
64
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
DOING BUSINESS ETHICALLY AND RESPONSIBLY
We affirm our ethical culture through our behaviour and actions.
Ethics culture
We expect our workforce and business
partners to embody our organisational
values and comply with our Code of
Ethics and Conduct, to create a
foundation of trust and accountability
across the Company. To support this,
our Ethics and Compliance (E&C)
Programme is a core element of how
we manage the business — setting clear
expectations, preventing misconduct
and reinforcing an integrity-driven
culture. It brings together policies,
training, reporting mechanisms and
oversight processes, ensuring our
standards are applied throughout the
broader business ecosystem.
External evaluations support this effort
by helping us identify improvement
opportunities, reduce integrity risks and
reinforce an ethical culture in the
Company. We participate in
Ethisphere’s World’s Most Ethical
Companies annual assessment, using
independent benchmarking to enhance
our programme and align with leading
global practices on Ethics Culture,
Corporate Governance, Ethics and
Compliance and Third-Party
Management.
In 2025, our integrity practices received
regional recognition and were ranked in
schemes such as Mexico’s Corporate
Integrity Ranking (IC500) and AMITAI’s
Most Ethical Companies report.
Training and capacity building
Our E&C Programme defines clear
behavioural expectations, supports
ethical decision-making in daily work
activities, and reinforces accountability
— primarily through structured training
and ongoing engagement initiatives.
For our employees, we annually endorse
our Code of Conduct, including a
declaration of potential conflict of
interests. In 2025, we also conducted
workshops on key issues such as
Conflicts of Interest, Anti-corruption and
Anti-bribery (ABAC), Harassment
Prevention, Regulatory Compliance and
the Whistleblowing Mechanism. These
included:
• Workshops for exploration teams
under the ‘We Act with Integrity’
campaign, addressing key
compliance topics and using case
studies to illustrate real-world
scenarios.
• A dedicated workshop for the
Comptrollers team, outlining their
responsibilities and risk-management
role, including how they identify,
evaluate and respond to risks and
applicable regulations.
• Targeted training on anti-bribery,
corruption and fraud for higher-risk
functions such as Procurement,
Contracts, Controllership and
government Relations, reinforcing
key concepts, raising awareness of
inherent risks and reviewing
applicable controls.
• The Power of Saying No webinar,
which focused on recognising
workplace harassment and the
actions required to address, remedy
and prevent it.
We also implement ongoing campaigns
to engage our entire workforce through
different forms of media and channels
as well as a dedicated internal portal.
Our aim is to ensure that internal
policies and key aspects of the E&C
Programme are effectively
communicated and understood. In
2025, these efforts included:
• Guidelines on gifts and hospitality.
• Whistleblowing statistics every six
months.
• Identification and acknowledgment
of conflicts of interest.
• Cybersecurity awareness.
Additionally, we continuously engage
our business partners through
corporate communications and media
to reinforce our compliance policies and
the Code itself, which is publicly
available on our corporate website.
Harassment Prevention Programme
We believe that safe, respectful
workplaces are essential to both
wellbeing and performance. Our
Harassment Prevention Programme
equips employees with the tools to
recognise, prevent and report workplace
harassment, helping promote a culture
where everyone can work confidently
and securely.
During 2025, we strengthened our
approach to preventing and addressing
workplace and sexual harassment
across all operations, ensuring new
and existing employees received
appropriate training and support. Key
actions during the year included:
• Stronger investigative capacity
through refresher workshops for
union representatives participating in
Workplace Behaviour Commissions.
• Awareness-building sessions for
Informal Leaders on harassment
prevention. Additionally, participation
in Mexico’s Women in Mining event,
providing practical tools for employees
to exercise their “right to say no”.
• Targeted reinforcement at priority
sites, including comprehensive
retraining for all employees at Minera
San Julián.
• Developed online training on
workplace harassment, reaching 1,468
non-unionised personnel; additionally,
164 received in-person training. See
the case study on page 72
In parallel, we identified the need to
strengthen the soft skills and people
management capabilities of leadership
teams in the Fresnillo District and
implemented a 10-month
transformational leadership programme.
See the case study on page 70
Whistleblowing mechanism
Our Whistleblowing mechanism (‘Línea
Correcta’) serves as a confidential and
secure channel for raising concerns
regarding the Company's operations
and any unethical behaviour. It is
operated by Ethics Global, an external
third-party provider, which ensures the
anonymity of whistleblowers when filing
a report. The Whistleblowing
Mechanism is widely available to our
employees, contractors, and other
stakeholders such as suppliers and
members of surrounding communities.
The reports received are reviewed
quarterly by the Honour Commission
and monitored by the Audit Committee.
Twice a year, the Board of Directors also
receives these reports at Board
meetings. See Corporate Governance on
pages 147-201
65
Fresnillo plc Annual Report and Accounts 2025
To ensure effective case management,
all investigations are conducted by
qualified professionals with specialised
training in workplace behaviour,
compliance and fraud prevention.
Thorough investigative procedures are
in place to either substantiate or dismiss
allegations — including, but not limited
to, reviewing tender options to ensure
fairness and transparency, reviewing
third-party quality surveys to assess
performance, or conducting interviews
to identify instances of bribery or
unethical practices. In some cases, there
may not be sufficient evidence to reach
a definitive conclusion, but efforts are
made to monitor the situation and take
preventive measures when necessary.
We continue to reinforce a strong
speak-up culture by encouraging
employees to raise concerns without
fear of retaliation, while also promoting
responsible use of reporting channels so
that issues are handled fairly and
efficiently. In 2025, we designed and
deployed a communications campaign
to reduce risks related to information
leakage and retaliation, while
encouraging the use of our reporting
channels for potential breaches of our
Code of Ethics and Conduct.
The campaign included infographics
and videos explaining reportable
behaviours, expectations for leaders and
employees, the importance of
confidentiality in investigations and
common misconceptions that may
discourage reporting.
During the year, we recorded an
increase in workplace and sexual
harassment reports. Targeted
communications and training across
the organisation — including in
previously identified higher-risk areas —
helped encourage employees to speak
up and ensured cases were addressed
promptly and appropriately. This trend
reflects stronger awareness, clearer
expectations and growing confidence in
our reporting mechanisms. See ESG KPI
Tables on pages 111-117.
Cases by classification
Type 2025 2024
Labour harassment 104 72
Sexual harassment 25 13
Inappropriate arrangements
with suppliers
13 20
Abuse of authority 13 21
Non-compliance with internal
policy
9 4
Other 6 12
Unsafe conditions 4 2
Conflict of interest 3 5
Professional negligence 3 3
Fraud 3 6
Misuse of assets 1 2
Breach of trust 1 1
Total 185 161
What’s next
Looking ahead, we remain
committed to fostering a culture
rooted in integrity and respect. Our
priorities include delivering ongoing
training on reinforcing organisational
values, addressing grievances
effectively, and promoting the active
use of our reporting channels by:
• Conducting workshops and
providing a manager toolkit for
middle management at mining
operations, emphasising their
responsibilities as ethical role
models to promote integrity and
ethical behaviour in the workplace.
• Continuing our efforts to eliminate
all forms of workplace violence,
prevent workplace and sexual
harassment, and strengthen
confidence in the Whistleblowing
Mechanism, through specific
training and awareness
campaigns.
66
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Responsible business
Modern slavery and commitment to
human rights
We are committed to upholding human
rights and do not tolerate any form of
modern slavery, including forced labour
and human trafficking, in any aspect of
our business or supply chain.
In 2025, we strengthened our approach
to preventing Modern Slavery by
expanding our risk assessment beyond
tier 1 suppliers to include tiers 2 and 3.
This enhancement built on the work
achieved in our 2024 reporting
processes and was subsequently
recognised by the CCLA benchmark,
which upgraded our assessment from
'Meeting Basic Expectations' to 'Evolving
Good Practice'. We recognise that
sustaining this level of performance—
and making further progress—requires
ongoing effort.
For more information, refer to our
website for the latest available modern
slavery statement.
Compliance programme
Our Ethics and Compliance (E&C)
Programme provides the framework
that helps prevent, detect and respond
to integrity risks across the business.
Our policy mandates:
• Enforcing a zero-tolerance policy for
corruption and bribery.
• Encouraging the reporting of
suspected misconduct through our
Whistleblowing Mechanism (Línea
Correcta).
• Ensuring all reported incidents of
bribery and corruption are thoroughly
investigated.
• Avoiding engagement with third
parties flagged for bribery or
corruption concerns, following due
diligence.
• Ensuring all transactions are recorded
accurately and transparently.
In 2025, we strengthened this
framework by updating our Zero-
Tolerance Policy on Bribery, Corruption
and Fraud, aligning with the UK
Economic and Corporate Transparency
Act (ECTA) and reinforcing controls
against fraudulent practices. We also
updated the Donations, Sponsorship
and Political Contributions Policy,
introducing enhanced approval
controls. See Corporate Governance on
pages 147-201
Anti-Bribery and Anti-Corruption
(ABAC)
Compliance with the UK Bribery Act
2010, the Mexican General Law of
Administrative Accountability, and
relevant federal and state regulations, is
a core commitment upheld across the
organisation.
While our Internal and third-party Codes
of Ethics and Conduct establish expected
behaviours, we continuously supervise
operations to mitigate risks and ensure
compliance with legal and ethical
standards. Disciplinary actions for
involvement in violations — whether
directly or indirectly — may include legal
measures, employment termination for
our workforce, or the cessation of business
relationships for third parties. Our ABAC
programme is aligned with international
best practices, such as the United Nations
Global Compact (UNGC), International
Labour Organization (ILO) convention, and
Organization for Economic Cooperation
and Development (OECD) corporate
responsibility guidelines. It is regularly
reviewed against regulatory
developments and leading practices to
ensure alignment with evolving
expectations.
Money Laundering Prevention (AML)
We rigorously monitor transactions and
report suspicious activity in line with
local Anti-Money Laundering (AML)
regulations. During the second half of
2025, regulatory amendments increased
the level of scrutiny applied to mineral
concentrate transactions and customer
due-diligence requirements —
particularly around identifying Ultimate
Beneficial Owners (UBOs). As a result,
our Third-Party Due Diligence processes
were reinforced to align with the
updated AML expectations.
Third Party Due Diligence
We conduct due diligence before
entering relationships with third parties —
including contractors, customers and
suppliers — and renew the process every
one to three years according to their risk
level. Where risks cannot be adequately
mitigated, the relationship is discontinued.
Our due diligence process is aligned
with our Anti-Bribery and Anti-
Corruption (ABAC) and Anti-Money
Laundering (AML) frameworks, as well
as our broader risk management
approach. This integration helps prevent
unethical practices — including fraud
and human-rights violations — by
reinforcing monitoring and control in
higher-exposure areas. All third parties
are also required to commit to our
standards on ethics and integrity,
human and labour rights, health and
safety, and environmental and
community considerations.
Since 2023, the automation and
standardisation of the due diligence
process has strengthened visibility of
third-party criticality through a risk-
based approach. Over this period, we
have observed a 52% decrease in the
number of due diligence assessments
performed, primarily as a result of the
centralisation of supplier and contractor
renewals at our parent company,
Industrias Peñoles. Under this operating
model, due diligence processes that
were previously managed by Fresnillo
are now conducted centrally, reducing
duplication while maintaining coverage
in line with Group policy.
In parallel, enhancements to our due
diligence system have improved the
accuracy of risk classification.
Questionnaires are tailored to the
specific type of services performed by
each supplier or contractor, enabling
the more precise identification of
inherent risk. Accordingly, changes in
the proportion of risk categories over
time reflect improved risk
differentiation, rather than a
deterioration in the underlying
third-party risk profile.
67
Fresnillo plc Annual Report and Accounts 2025
66
78
92
81
82
27
19
5
16
16
7
2
3
1
2
1
1
1
Low-risk Medium-risk High-risk Rejected
2025
2024
2023
2022
2021
Third-party due diligences performed, %
As part of our continuous improvement
efforts, a third-party due diligence
optimisation project is being developed
to streamline and strengthen the
process. This project focuses on refining
third-party risk categorisation,
improving risk quantification and
simplifying workflows based on
compliance criticality, with the aim of
enhancing overall efficiency and
effectiveness. It additionally includes
and addresses the identification of
Foreign Terrorist Organisations (FTOs).
Government payment transparency
As required by the UK Reports on
Payments to Governments Regulation
2014, its amendment in December 2015
and the Disclosure and Transparency
Rules of the Financial Conduct Authority
(FCA), since 2016 we have reported an
overview of payments to governments
made by our Company and its
subsidiaries during the previous
reporting year.
The payments disclosed are those
arising from activities involving the
exploration, prospecting, discovery,
development, and extraction of minerals
(extractive activities), based on
materiality established by such
regulations (where a payment or a series
of related payments have exceeded
£86,000).
The type of payments that were
disclosed for the 2024 fiscal year are:
• Taxes: Fresnillo pays taxes on its
income, including special mining
rights. In accordance with the UK
Regulations, payments made in
relation to consumption, sales or
employee taxes were excluded.
• Royalties.
• Licence fees, rental fees, entry fees
and other considerations for licences
or concessions: these are fees paid as
consideration for acquiring a licence
for gaining access to an area where
extractive activities are performed.
For more information, please refer to
our website for the latest available
Report on payments to governments.
What’s next:
• Strengthen our approach to
assessing and mitigating modern
slavery risks by enhancing supplier
and contractor evaluations and
reinforcing modern slavery
awareness through annual training
and the endorsement of our Code
of Conduct.
• Compulsory training on regulatory
compliance for teams involved in
core business processes.
• Targeted training for higher-risk
roles, with emphasis on fraud and
bribery prevention.
• Implement the third-party due
diligence optimisation and
customisation project (version 2.0),
to improve workflow efficiency and
refine risk categorisation, including
the identification and flagging of
FTOs.
68
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
CARING FOR OUR PEOPLE
We prioritise our workforce’s health, safety and wellbeing.
Our people
Our corporate culture is rooted in ethics
and a genuine commitment to the
wellbeing of our people. This enables us
to foster long-term relationships with
our workforce, built on respect for
labour rights, constructive dialogue with
union representatives, and initiatives to
address the issues that matter most to
our employees and contractors. Guided
by these principles, we strive to attract,
develop, and retain top talent to secure
a robust pipeline that drives our
organisation’s success.
Our current workforce comprises 18,273
individuals, 9.0% of whom are non-
unionised, 30.3% are unionised and
60.7% are contractors. Additionally, of
our total workforce, 12.63% are women.
See our ESG KPIs Tables on pages 111-117
Workforce composition by affiliation
Attraction
We collaborate with leading educational
institutions that offer degrees in fields
related to earth sciences, such as
mining, geology, metallurgy, and
engineering. Our cohort-based
recruitment system for non-unionised
workers includes short and long-term
internships, residencies, and the
Engineers in Training programme.
The Engineers in Training programme is
tailored for residency graduates,
providing a dedicated coach for
guidance and performance appraisals,
with the potential for permanent roles
in the Company.
These initiatives offer undergraduates
meaningful professional experience,
embedding our culture and values early
in their careers, while building a robust
talent pipeline aligned with our growth
strategy. They also support our
commitment to increasing the
participation of women in the mining
industry. Over time, we have made
progress toward gender-balanced
cohorts. Nevertheless, we recognise
there is much we still can do to better
accommodate young professional
women in our ranks, and have therefore
incorporated this area of focus into our
DEI strategy.
Diversity in talent attraction*
* Includes junior non-unionised, non-executive
positions, such as long-term internships and
Engineers in Training programmes. The 2025 cohort
comprised 208 individuals.
Retention
To unlock our employees’ full potential,
we foster a work culture that champions
inclusion, collaboration and innovation,
while prioritising physical and emotional
wellbeing through robust safety policies,
career development plans, and
recognition initiatives. Long-term career
growth is a cornerstone of our retention
strategy, reflected in our ongoing
investment in training programmes and
commitment to offering fair,
competitive compensation packages
and benefits that exceed legal
requirements, tailored to responsibilities
and performance-based evaluations. To
celebrate their dedication and
contributions, we honour employees'
milestones annually through our Loyalty
Recognition Programme.
Acknowledging the importance of a
modern work environment, we prioritise
initiatives that enhance workforce
wellbeing, promote work-life balance
and address the unique needs
associated with mining units, including:
• Enhanced support for remote
locations: Flexible working
arrangements such as fly-in-fly-out
schedules, role rotation, variable
workdays, and additional measures to
compensate personnel working in
areas with limited family support
infrastructure.
• Quality-of-life facilities: Access to
gyms, pools, sports courts, and reliable
telecommunications.
• Health, nutrition, and cultural
programmes: Organisation-wide
initiatives to promote comprehensive
wellbeing. The ‘Living in Balance
programme’ also provides tools for
employees and families to foster
healthy habits that improve their
lifestyle (see Health on pages 80-82).
69
Fresnillo plc Annual Report and Accounts 2025
60.7%
60.3%
63.3%
62.8%
63.4%
30.3%
30.9%
28.7%
29.3%
29.0%
9.0%
8.8%
8.0%
7.9%
7.6%
Contractors
Unionised employees
Non-unionised employees
2025
2024
2023
2022
2021
58%
56%
58%
55%
56%
42%
44%
42%
45%
44%
Men Women
2025
2024
2023
2022
2021
Development
Our onboarding procedures integrate unionised and non-
unionised personnel through immersive in-person sessions,
while contractors complete a comprehensive programme via
our online ‘Virtual Campus’ before accessing industrial
facilities, ensuring safe operations. Core onboarding topics
include:
• Industrial safety and hygiene: Basic safety, ‘I Care, We Care’
philosophy and critical risks controls protocol.
• Health, safety and environmental regulation: Special permits
and norms, first aid, CPR, and compliance regulations.
• Company overview: HSECR management system,
antibribery practices, workplace harassment prevention and
psychosocial risk management.
The onboarding experience highlights the Company’s safety
culture, fostering a collective commitment to accountability,
risk prevention, and critical risk controls, ensuring alignment
with operational standards (see Safety on pages 74-79). All
personnel undergo regular reinduction processes to reinforce
safety protocols and operational excellence.
Our performance appraisal system identifies training needs,
high-potential individuals, and key positions for succession
planning, advancing promising candidates into institutional
development programmes. Aligned with our strategic
priorities, these programmes strengthen both technical
competencies and leadership capabilities.
The soft skills development programmes provide tailored
support across all organisational levels. Managers and
supervisors strengthen their technical expertise in exploration,
mine planning, accounting, mineral processing and digital
innovation while also gaining leadership and managerial skills.
Executives focus on strategic challenges, deepening their
knowledge in finance, human resources, corporate social
responsibility, and leadership.
The technical development programmes focus on
strengthening and certifying competencies vital to business
processes — such as Rock Mechanics, Ventilation, Safety,
Environment, Planning, and Metallurgy — and aim to enhance
core safety capabilities such as critical risks and controls.
We also operate three evaluation centres registered with the
National Council for Standardization and Certification of
Labour Competencies (CONOCER).
In 2025, we achieved an average of 59 training hours per
worker, including 18 hours specifically dedicated to safety
training. See our ESG KPIs Tables on pages 111-117.
Case study
Transforming our approach to leadership
In 2025, we launched the Transformational Human-Centred Leadership Programme
in the Fresnillo District.
Its aim is to strengthen organisational culture and leadership
capabilities, with a focus on trust, communication, shared
accountability and employee wellbeing.
The 10-month programme involved 56 senior operational
leaders from Fresnillo, Saucito and Juanicipio mines. It
combined an initial diagnostic assessment, training
modules on emotional intelligence, teamwork and
behavioural change, organisational coaching and
structured follow-up. Early outcomes include:
• Greater openness and improved active listening,
strengthening team unity.
• Emotional management practices introduced at the
start of shifts to reduce stress and improve team
dynamics.
• Role rotations between supervisors and advisors to
support cross-functional understanding and leadership
succession.
• Evolution in feedback processes, replacing reprimands
with coaching, recognition and structured improvement
agreements.
• Development of a safety project at Minera Juanicipio,
targeting accident reduction involving low-profile
haulage trucks.
Overall feedback indicates meaningful progress in
communication quality, leadership style and workplace
relationships. These early results demonstrate both
immediate impact and strong potential to support a
lasting cultural transformation.
70
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Diversity, equity and inclusion
We are committed to fostering inclusion
and promoting gender equality, guided
by the Women’s Empowerment
Principles (WEPs), which we signed in
2020. To increase the overall
representation of women, we have
established two key objectives:
1. Strengthen the contribution of
women to the Company’s success.
2. Positively impact female employees'
experience and opportunities.
In 2020, we committed to raising the
overall representation of women in our
workforce to 12% by 2025 and breaking
the glass ceiling at the operating
manager and superintendent levels,
with the aim of increasing the
percentage of women in these roles to
8%. Significant progress has been made,
with the overall representation of
women reaching 12.63% and women in
managerial roles rising to 10.56% by
2025. While proud of these
achievements, we recognise that further
efforts are needed to close the gap with
the national average of 18.5%, as
reported by the Mexican Mining
Chamber.
Percentage of women in the workforce
Glass ceiling: women in managerial
positions*
* Figures reflect an updated methodological
approach that distinguishes managerial roles from
senior executive positions, which are excluded from
this indicator, to ensure consistency.
Since adhering to the WEPs, we have
participated in multiple initiatives that
have enabled us to measure our
progress, identify areas of opportunity,
and drive organisational improvements.
In 2024, we joined the United Nations
Global Compact (UNGC) Target Gender
Equality (TGE) Accelerator Programme
and reassessed our performance using
the WEPs Gender Gap Analysis Tool,
achieving an overall score of 54%. Our
strongest results are in the
commitments pillar, with medium
performance in implementation and
greater opportunities for improvement
in metrics and transparency.
Further advancing our gender diversity
efforts, two of our mines have
undergone evaluation under the
Women in Mining (WIM) Mexico Seal, a
methodology that assesses mining units
across nine pillars, including harassment
prevention, professional development,
inclusive facilities and working
conditions. In 2025, Herradura was
awarded the highest distinction — Gold
— and also received an Innovation
Achievement Award for extending the
methodology beyond site-level
assessment to help inform the
Company’s broader strategy. Saucito
participated in the 2025 evaluation
cycle, with results expected in the first
quarter of 2026.
These workstreams have marked
significant progress in our journey,
providing valuable insights to
recalibrate the Company’s gender
diversity strategy in line with the
Women’s Empowerment Principles
(WEPs) and in preparation for the 2026–
2040 Strategic Plan. To oversee the
implementation of this strategy, we
established a Labour Inclusion
Committee, with leadership
representation from operations,
exploration and corporate offices,
supported by a multidisciplinary team.
Regarding diversity and inclusion more
broadly, we have continued to deepen
our initiatives by hosting annual rallies
in Caborca, Sonora, in collaboration with
the TELETON Sonora Foundation, the
local National System for Integral Family
Development (DIF), and Sonora
University’s (UNISON) Caborca campus.
These events aim to raise awareness
and provide practical tools for fostering
an inclusive society and workplace. In
2025, the rally brought together 200
participants, including students and
teachers, and featured conferences on
mental health, stress management,
nutrition and school support networks,
as well as practical workshops on
mindfulness, injury prevention,
emotional first aid and violence
prevention.
Finally, as part of our broader approach
to assessing workforce and DEI
performance, every year we participate
in the Workforce Disclosure Initiative
(WDI) assessment. In early 2026,
Fresnillo was short-listed for the WDI
Award and received special mentions in
the workforce action, value chain data
and most transparent categories.
Gender pay gap
We are committed to the principle of
equal pay for equal work. Our
remuneration framework is designed to
ensure that employees at the same
hierarchical level and in comparable
roles are paid within consistent salary
bands, irrespective of gender.
The gender pay gap shown reflects the
weighted average salary differences
across hierarchical levels for non-
unionised, non-executive employees,
demonstrating a reduction of 4.11% in
2025. While pay is aligned within each
level, the remaining gap is primarily
driven by workforce composition factors
— particularly tenure — rather than
unequal pay for the same role.
Overall gender pay gap
Note: Non-unionised and non-executive personnel
comprises senior engineers, junior engineers and
assistants. This population is assessed because it
represents the primary talent pipeline for future
managerial and leadership roles, making it a
relevant cohort for monitoring progression and
representation dynamics.
71
Fresnillo plc Annual Report and Accounts 2025
12.63%
12.46%
11.88%
12.11%
11.01%
10.56%
9.55%
6.21%
6.06%
4.46%
8%
2025
2022
2021
2024
2023
2025
2022
2021
2024
2023
12%
(4.11)%
(4.46)%
(3.12)%
(3.59)%
(2.28)%
2025
2022
2021
2024
2023
Case study
Strengthening workplace respect and inclusion
In 2025, we launched a compulsory online training campaign to prevent workplace harassment,
as part of our Women’s Empowerment Principles (WEPs) 2025–2026 roadmap, reinforcing our
commitment to safe, respectful and inclusive workplaces.
The initiative was developed by a cross-functional team
and introduced new digital learning tools designed to
increase engagement and relevance. These included
practical case studies illustrating different forms of
workplace harassment and avatars reflecting Fresnillo’s
working environments. It also included a corporate video
outlining the Company’s journey and approach to
prevention, featuring a message from the CEO.
To support effective and consistent implementation,
members of the Labour Inclusion Committee actively
promoted the programme with local leadership teams,
helping cascade key messages across operations and
encouraging completion of the training.
By year end, training had been rolled out to non-unionised
personnel, achieving 91.61% completion. The programme
will be extended to unionised employees and contractors
during 2026 and incorporated into the induction process
for new employees going forward.
The materials developed for this initiative will also serve as a
standard reference for future training and awareness
campaigns, supporting long-term consistency in the
Company’s approach to dignity, respect and inclusion at work.
72
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Labour relations
Unions play a pivotal role in our
commitment to support ongoing
operations at our mine sites, enhancing
productivity and developing a robust
safety culture. We believe that
maintaining fair and respectful
relationships with unions is essential to
building trust and mutual
accountability, while upholding workers’
rights to freedom of expression, free
association, and collective bargaining.
We actively engage with unions through
regular dialogue and periodic operational
reviews, leadership development
programmes, and wellbeing initiatives –
including sports and cultural events – as
well as collaborative projects focused on
continuous improvement. Regular
interactions take place between the CEO,
the Head of HR, and union senior
leadership, while our business units
maintain close ties with local union
committees and delegates at an
operational level.
These engagements underscore our
dedication to open communication and
foster collaboration for capacity-building
initiatives, particularly for those newly
elected as union committee members.
In partnership with the union, we also
conduct the ‘LEAL’ survey on workplace
behaviour perceptions and experiences,
using its insights to refine our strategy
and drive continuous improvement in
our safety culture (see Safety on pages
74-79).
Case study
Working with the union to build shared safety leadership
We maintain a constructive and collaborative relationship with the union, grounded in a shared
commitment to protecting life and promoting safe operations.
This partnership supports the Company’s objective of
strengthening an intedependent safety culture in which
responsibility for risk prevention is shared across all levels
of the organisation.
In 2025, we began rolling out leadership practices through
local union committees and safety commissions.
Under this model, unionised employees actively
participate in safety verifications and risk reviews, taking
on a leadership role in day-to-day operational safety and
reinforcing the principle that safe operations depend on
collective ownership.
• The Company’s commitment to collaborative safety
leadership is also reflected in its flagship Annual Safety
Symposium, conducted in partnership with unions,
contractors and public authorities. The event provides a
platform to exchange best practices, discuss industry
challenges and reinforce shared safety standards across
operations. The 13
th
edition is scheduled to take place in
2026 under the theme 'From awareness to action:
protecting life', further strengthening cross-stakeholder
engagement and collective responsibility for safety.
What’s next:
• Implement action plans to address findings from the latest organisational culture survey.
• Formalise succession planning across key roles and functions.
• Strengthen and consolidate the Labour Inclusion Committee and continue the rollout of the Company’s gender diversity
strategy.
73
Fresnillo plc Annual Report and Accounts 2025
Safety
We uphold a deep commitment to Life
through our ‘I Care, We Care’
philosophy, with the goal of ensuring
safe operations and zero harm.
Strategy
Safety is a fundamental value, reflecting
our moral obligation to protect the
wellbeing of our workers. Our goal is
clear – to operate without fatal
accidents, minimise exposure to risk,
prevent harm to people and damage to
assets, and foster an ethical, safe work
environment supported by visible
leadership across the organisation.
Prevention is at the heart of our safety
culture. Our ‘I Care, We Care’ philosophy
addresses inherent risks though five
strategic pillars: leadership, accountability,
behaviour risk competencies, system risk
competencies, and learning environment.
This approach fosters continuous
improvement, effectively reducing risks
through the provision of the right tools
and training.
Each pillar establishes critical controls
and performance standards across
business processes, empowering
personnel to make sound, responsible
decisions and to identify and address
risks in line with safety protocols.
The ‘I Care, We Care’ technical
components focus on critical risks —those
with the potential for fatal or serious harm
— while the operational framework
ensures that all risks are managed
systematically. Together, this approach
enables comprehensive risk management
and supports continuous improvement in
safety practices, risk management and
emergency preparedness, reinforcing a
learning environment built on high
performance standards.
Management
Our approach to safety management is
grounded in the consistent and
disciplined application of critical
controls. We focus on verifying their
effectiveness, ensuring proper
deployment, and reinforcing visible
leadership in the field through active
engagement with employees and
contractors at all levels of the
organisation. This is supported by a
range of mechanisms to identify and
assess risks, with a strong operational
focus on reducing exposure during field
activities. Our Safety Operational Plan
provides the structure through which
these elements are implemented and
sustained.
Leadership in the field
We consider safety a ‘Life Value’, and
uphold it through values-driven Visible
Leadership, embedding responsibility
and accountability at every level and
among all members of our workforce.
We deliver leadership practices to
promote leadership by example in the
field. This approach ensures the
oversight and verification of critical risks
and their associated controls,
contributing to the strengthening of our
preventive culture. Leadership practices
aim to empower individuals to identify
missing or failed controls and make the
right decisions, for example by stopping
tasks if necessary to ensure safe
operations until controls are addressed.
In 2025, we:
• Continued quality verification of
leadership practices (using the
coaching mode and quality for
management categories). Safety
specialists provide ongoing support
and feedback to leaders and middle
management. Outcomes from these
processes are communicated by
leaders and supervisors through
formal meetings, shift-start meetings,
and safety huddles.
• Strengthened leadership
accountability by area through clearer
performance indicators and targets,
enabling more focused actions and
more effective allocation of resources.
74
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Safe Operations Culture: Behaviour,
Participation, Engagement and
Awareness
Safety is a shared responsibility across
the organisation. Our workforce, in
diverse roles and responsibilities,
actively participates in hazard
identification, risk assessment and the
design and implementation of control
measures. This frontline ownership is
supported by safety and risk
management specialists, who provide
training, guidance and technical advice
across operations and projects.
Collaboration is embedded through
formal governance mechanisms —
including health and safety committees,
emergency response teams and joint
commissions with unions and
contractors — which support training,
facilitate inspections, recommend
preventive measures and conduct
accident investigations. Together, these
structures strengthen risk management
and reinforce a strong, participatory
safety culture.
In 2025, we continued advancing the
maturity of the ‘I Care, We Care’
Operational Committee, with a focus
on empowering people and promoting
safe operations. Safety performance was
reviewed, and cross-functional control
and learning initiatives were
implemented. A key outcome was the
development of the 2026 Safety
Operational Plan, centred on achieving
zero fatalities by:
• Strengthening the quality of
leadership practices across all
organisational levels and contract
types.
• Standardising the critical risk control
framework, including its deployment
mechanisms — such as performance
standards and verification tools —
aligned with best available practice.
• Reviewing, verifying and updating
cross-cutting and cross-functional
performance standards.
• Implementing a unified safety
standard for contractors.
Our relationship with contractors is a
key pillar of our safety strategy,
particularly in light of the findings of
investigations into fatal accidents in
previous periods. Since 2022, we have
strengthened this relationship through
quarterly Business Partner Meetings
which provide a structured forum to
assess safety performance, analyse
shared challenges, and establish mutual
commitments to safe operations. These
meetings bring together contractors’
leadership representatives and our
operational leaders to ensure alignment,
enable performance reporting, and
agree on specific actions — prioritising
the most critical risks.
In recent years, we have strengthened
contractors’ alignment with our
technical and operational standards,
performance indicators and
dashboards. In parallel, we have
embedded leadership practices across
the chain of command, involving both
contractors’ leadership and our
operational leaders responsible for
contractor oversight. These practices are
supported through coaching and
regular quality assessments. Together,
these structured dialogue mechanisms
have reinforced accountability and
promoted the systematic sharing of
lessons learned and best practices.
In 2025, this approach continued to
evolve. We issued a unified Contractor
Standard with a strong focus on health,
safety and environmental risks. All
contractors symbolically signed the
standard during the quarterly meetings,
reinforcing their shared commitment to
its adoption. In addition, the ‘I Care, We
Care’ Operational Committee defined a
contractor-specific 2026 Safety
Operational Plan to support
implementation as well as the
monitoring of progress and
accountability going forward.
During the year, we maintained close
collaboration with the National Miners’
and Metallurgists’ Union FRENTE
through regular experience-sharing
sessions among local committees and
ongoing coordination to align
communication. Together, we
continued to promote skills
development through practical
workshops for local committee
members, new employees and
emerging leaders.
75
Fresnillo plc Annual Report and Accounts 2025
Case study
Living our philosophy, every day
The 'I Care, We Care' Operational Committee plays a central role in advancing the Company’s
safety culture and in supporting the technical and behavioural deployment of its ‘safe
operations’ philosophy.
During 2025, the Committee held two in-person working
sessions. The first focused on reviewing progress against
the operational plan developed by the Committee,
agreeing standardisation guidelines, promoting the
adoption of best practices, and establishing shared
commitments to further raise safety performance
standards. The second session centred on reviewing
performance trends, conducting a strategic assessment of
strengths and gaps in risk management, and developing
the Committee’s operational plan for 2026 based on these
findings.
At both sessions, leadership practices were carried out,
including operational verifications and direct engagement
with frontline teams. These activities reinforced visible
leadership, strengthened alignment around safe work
expectations, and helped embed the Company’s
commitment to protecting life into daily operations.
The Committee’s work has contributed to the progressive
maturation of the Company’s safety culture, strengthening
cross-site consistency and supporting the integration of
safety leadership into operational decision-making.
The 2026 operational plan developed by the Committee
sets out transversal actions which aim to sustain
momentum towards achieving the Company’s vision of
zero harm.
The year concluded with the participation of the full
Executive Leadership Team in the Committee’s final
session:
“Achieving zero fatalities and zero harm requires all of us
to live our ‘I Care, We Care’ philosophy with conviction and
passion. Our five strategic lines provide clear direction, but
success depends on our consistency and focus in every
safety effort. We must be disciplined in learning from
experience—acting with both speed and depth — and in
recognising and encouraging the commitment of
everyone who contributes to our operations. This is
valuable work, and it is work that belongs to all of us.”
— Octavio Alvídrez, Chief Executive Officer
76
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Risk Management
In 2025, we strengthened our critical risk
management framework by expanding
the number of top critical risks from ten
to twelve. As part of this process, we
issued standards covering explosives
and blasting, electrical safety, rock falls,
and loss of control of equipment and
vehicles. We also initiated the
development and testing of role-based
verification tools specifically for these
critical risks. Our aim is to progressively
refine these tools, ensuring our risk
management approach remains
adaptive and informed by operational
feedback and continuous learning.
To further deepen our critical risk and
controls management strategy, we
launched two site-level pilots in 2025, at
Saucito and Ciénega. This initiative aims
to strengthen risk and controls
management through a comprehensive
and technically robust approach, based
on continuous, detailed verification
processes and the active involvement of
all stakeholders in risk management —
from leadership and technical
specialists to contractors, suppliers and
support teams.
In parallel, we continued to enhance our
analysis of safety performance and
preventive reporting, moving beyond
corporate-level indicators to a drill-down
approach that enables deeper insights
and more targeted allocation of
resources. Finally, the training
programme for our permanent
emergency brigades — established last
year— continued to progress, further
strengthening emergency
preparedness across our operations.
Communication
In 2025, we deployed a communication
strategy to reinforce key messages
linked to daily operations and to
strengthen the ‘I Care, We Care’
philosophy as a core element of our
business identity. The campaign, “I take
care of myself, and together, we care for
one another”, focused on four main
themes:
1. Critical risk management and safe
decision-making: Strengthening
performance in the control of critical
risks, reinforcing the consistent
application of critical controls, and
empowering people to take the right
actions and make only safe decisions
when facing risk.
2. Personal safety and protective
behaviour: Promoting care for hands
and the correct, consistent use of
personal protection equipment (PPE)
as essential daily safety practices.
3. Culture, accountability and
commitment to life: Reinforcing zero
fatalities and zero harm as the only
acceptable outcome and promoting a
culture of 'safety without excuses' that
moves decisively from awareness to
action.
4. Seasonal risk prevention:
Reinforcing safety measures during
the holiday season, when operational
and personal risk factors tend to
increase.
Certifications and awards
We hold safety-related certifications
relevant to our industry in our mining
units, including ISO 45001, and the
International Cyanide Management
Code (see our site ESG KPIs Tables on
pages 111-117).
Performance
Since 2021, we have strengthened our
preventive reporting through near-miss
reporting, with a focus on identifying
missed or failed critical controls that
could lead to harm. Although near-miss
events do not involve energy release or
damage, they provide operational
leaders with early visibility of potential
hazards to people or equipment,
enabling timely preventive action. This
approach supports a proactive
management culture and encourages
active worker participation in an early
warning system, enhancing awareness
of the safety environment and enabling
informed, timely decision-making. As a
result, near-miss reporting increased by
75% compared with 2024.
During the year, we also recorded a
17.6% reduction in the Total Recordable
Injury Frequency Rate (TRIFR) and a
13.7% reduction in the Lost Time Injury
Frequency Rate (LTIFR), reducing them
to 6.26 and 4.10, respectively—our lowest
levels to date. Site-level performance is
presented in the ESG KPI Tables on
pages 111–117.
Despite this positive trend, we deeply
regret the loss of one unionised
employee and one contractor during
the year. Not achieving our objective of
zero fatal accidents is a profound
reminder that there is no margin for
error and reinforces the need to
continuously strengthen a robust risk
management culture across all
processes, activities and environments—
every day, on every shift.
Fatal Injuries and Fatal Injury
Frequency Rate
Fatal injuries: Number of fatal injuries to employees
and contractors. Fatality injury frequency rate:
Number of fatal injuries to employees and
contractors for every 1,000,000 hours of exposure
time.
Injury Frequency Rate for every
1,000,000 hours
Total Recordable Injury Frequency Rate (TRIFR):
Lost-Time Cases + Restricted Work Cases + Medical
Treatment per 1,000,000 Hours Worked. Lost Time
Injury Frequency Rate (LTIFR): Number of Lost-Time
Injuries per 1,000,000 Hours Worked.
77
Fresnillo plc Annual Report and Accounts 2025
2
2
4
1
1
2025
2022
2021
2024
2023
6.26
7.59
12.08
10.26
10.42
4.10
4.75
7.40
5.44
5.76
TRIFR LTIFR
2025
2024
2023
2022
2021
In 2025, new potential risk scenarios
emerged in non-routine tasks. Root
cause analyses provided valuable
insights, leading to the following
actions:
• Conducting in-depth analyses using
the Incident Cause Analysis Method
(ICAM).
• Reinforcing competencies in risk
analysis and control implementation,
while empowering all workers to take
ownership of safety in every activity —
both within and outside the
production value chain — with
greater rigour and discipline in
routine and non-routine operations.
• Strengthening engagement with all
business partners, regardless of
company size, nature or duration of
their operations.
• Implementing a mechanism to
categorise, monitor, and evaluate
business partners, assessing their
compliance with standards and
expected performance, and the
presence of adequate and just
accountability, to determine their
hiring and retention.
• Intensifying efforts in the planning,
risk analysis, and control of non-
routine activities or those outside the
productive chain.
• Enhancing verification and follow-up
through leadership practices for
activities outside the productive chain.
Our 2026 vision is to achieve zero
fatalities and decrease our TRIFR to
align with the International Council on
Mining and Metals (ICMM) standards.
We remain resolute in our commitment
to implement disciplined controls,
enhance leadership qualities, and
strengthen accountability at every level
to achieve safe operations in every task
in order to achieve the objective of zero
harm: zero fatalities, zero accidents and
zero damage.
Goal Decrease TRIFR by 5%: Reduce TRIFR rate to ICMM range
Time horizon Short-term (1 year) Medium and long term (3-5 years)
Actions to achieve it • Mature risk management
• Organise consultation forums
• Mature the 'I Care, We Care' Operational
Committee
• Enhance quality of leadership practices
• Consolidate risk management
• Improve risk management across scenarios and
stakeholders
• Improve personnel competencies and training
• Implement projects to improve safety
What’s next:
• Continue to make progress against our commitments to reduce fatality rates and TRIFR.
• Enhance the quality of leadership practices through direct mentoring by leaders and the continued development of
workforce competencies.
• Strengthen the ‘I Care, We Care’ Operational Committee into an effective learning environment by elevating key
commitments to mandatory requirements.
• Consolidate the health and safety management system through the ‘I Care, We Care’ strategy, focusing on risk reduction,
improved safety performance and increased productivity.
• Conduct comprehensive verification processes of the implementation of technical standards and safety management to
identify and address gaps.
• Continue deploying the ‘I Care, We Care’ verification – Eye on Risk, a multidisciplinary, peer-based approach that enables
technical verification in the field, across management practices and at system level.
• Develop conceptual designs for technology and innovation projects aimed at improving overall workforce safety.
• Further mature incident risk management processes, including analysis, communication of results and cross-functional
learning.
• Advance the risk management strategy to address different operational scenarios and stakeholder contexts.
78
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Case study
Focusing on risk
In 2025, we launched the 'I Care, We Care – Eye on Risk' verification process as part of the
continued maturation of our risk management system.
The initiative was designed by a multidisciplinary team drawn
from operations, in line with the core principles of the 'I Care,
We Care' philosophy and the Company’s internal safety
standards. Deliverables included the end-to-end verification
process design, technical checklists, evaluation criteria, and
tools for data collection and reporting.
During 2025, two full verification cycles were completed at
Saucito and Ciénega. Verification teams comprised
members of the “I Care, We Care” Committee, operational
leaders and technical specialists. Each verification was led
by a senior manager, supported by safety specialists.
One of the defining features of this initiative is its peer-to-
peer approach: verifications are conducted between leaders
in the same technical discipline, enabling structured
dialogue on operational requirements, control effectiveness,
management gaps and improvement opportunities. This
model strengthens visible leadership, encourages
constructive professional challenge and reinforces shared
ownership of risk management outcomes.
Beyond its technical function, the process has become a
platform for organisational learning, supporting the
identification of best practices, alignment around risk
management expectations, and the reinforcement of
human-centred, visible leadership.
79
Fresnillo plc Annual Report and Accounts 2025
33
46
39
34
19
Health
We are committed to ensuring
the wellbeing of our workforce
by promoting safe and healthy
working environments.
Supported by a multidisciplinary team of
health and organisational development
specialists, we take a comprehensive
approach to workplace health. Our efforts
focus on the early identification and
management of health risks to prevent
both occupational and chronic diseases,
strengthen emergency preparedness, and
promote healthy habits across our
operations. In recent years, this approach
has evolved into a more holistic model,
moving beyond traditional occupational
health programmes to address both
physical and mental wellbeing. Our
strategic pillars are:
• Health care: medical check-ups,
consultations and health campaigns
• Comprehensive wellbeing:
nutritional guidance, sports
promotion and psychological support
• Industrial care: ergonomics and
industrial hygiene
• Innovation and development: health
technologies and software
• Emergencies: preparedness and
response training
Our approach is further informed by
periodic workforce surveys designed to
better understand health behaviours
and promote preventive care. ‘Living in
Balance’ surveys conducted in 2023 and
2024 highlighted the need to
strengthen general wellbeing indicators,
including sleep quality, stress, anxiety
and depression. In response, during
2025 we expanded the coverage of
medical screening programmes and
mental health initiatives, and
consolidated our fatigue management
system. These are described in more
detail in the following sections. The next
survey cycle is scheduled for 2026.
Occupational Health
Our occupational health approach
focuses on the proactive identification,
mitigation and management of health
risks to which our workforce is exposed,
with the objective of preventing
accidents and occupational illnesses.
Health care: Focused on identifying,
evaluating, analysing and interpreting
employees’ medical information to
develop a health profile for each work
centre. This includes pre-employment,
periodic, exit and specialised medical
examinations, as well as guidance on
preventive care measures, including
gynaecological check-ups.
In 2025, almost 10,000 periodic medical
examinations were conducted across
our workforce, covering non-unionised
and unionised employees and
contractors. We also maintained a
strong focus on women’s health
through targeted gynaecological
screening, achieving high coverage
among non-unionised personnel and
steady progress among unionised
personnel, supporting early detection
and timely treatment.
Industrial care: Centred on industrial
hygiene and ergonomics to enhance
workplace quality, productivity, safety
and health, with active monitoring of
exposure to physical and chemical risks.
Industrial hygiene identifies workplace
hazards—such as noise, dust, vibration,
heavy metal contamination and
extreme temperatures—and
implements targeted interventions to
mitigate health risks and prevent
occupational diseases. Ergonomics
systematically analyses the interaction
between individuals, their tasks,
equipment and their physical
environment to improve working
conditions and overall wellbeing.
In 2025, we rolled out an ambitious work
programme comprising on-site
assessments, technical studies and
recommendations, systematic
monitoring of control measures,
targeted training and exposure
awareness, and regular engagement
with operational leaders. This work
reflects a structured and preventive
approach that integrates technical
controls, clear procedures and
workforce capability to sustainably
reduce occupational health risks.
As part of this effort, we advanced the
deployment of engineering and
operational controls to reduce physical
exposure risks. Key initiatives included
redesigning tools and equipment to
improve ergonomics, introducing
mechanical handling solutions and
automation in sampling and material
handling processes to minimise manual
load movement, and implementing an
intelligent hydration system to support
adequate fluid intake for personnel
exposed to high temperatures.
These measures help address
musculoskeletal strain, vibration and
noise exposure, as well as heat stroke,
while improving overall working
conditions and operational reliability.
To support long-term consistency and
scalability across operations, we also
strengthened our management
framework by developing and updating
procedures and technical standards for
assessing and controlling occupational
exposures, such as vibration and noise.
This included formalising measurement
protocols, reinforcing safety and
warning signage, and reinforcing
compliance with the proper use of
personal protective equipment (PPE).
Innovation and development: Focused
on strengthening occupational health
management through the adoption of
digital tools, data analytics and
emerging health technologies. This
pillar promotes innovation across all the
other pillars to improve prevention, early
detection and decision-making,
supporting a more proactive and
evidence-based approach to workforce
health. The consolidation of our Fatigue
Risk Management System during the
period is an example of this approach in
action (see case study page 81).
Emergency preparedness: Recognised
as a core capability of our health teams
alongside prevention. Training in Basic
Life Support (BLS), Prehospital Trauma
Life Support (PHTLS), Advanced
Cardiovascular Life Support (ACLS) and
defensive ambulance driving forms an
integral part of the medical staff’s
professional development.
In 2025, we recertified personnel at
Ciénega in ACLS and PHTLS, as this site
presents the highest level of medical
risk due to its remote location and its
role in providing healthcare services to
surrounding communities. Training
programmes at other operations will
continue throughout 2026.
New cases of Occupational Illneses
During the year, 33 occupational
illnesses were recorded, primarily
related to hearing loss, pneumoconiosis
and ergonomic risk, representing a
decrease compared with the previous
year. While this trend reflects progress
in exposure and control prevention,
occupational illnesses are typically
associated with historic exposures and
therefore improvements may not be
immediately reflected in annual figures.
Reported trends may also be influenced
by changes in the regulatory framework.
In recent years, amendments to
Mexican regulations have broadened
the definition of work-related illness,
which may affect the number of cases
identified and reported moving forward,
independent of underlying exposure
conditions.
80
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
2025
2022
2021
2024
2023
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Case study
Demonstrating our commitment to safety and wellbeing
In 2025, we consolidated our Fatigue Management System (FMS) following successful pilots at
Herradura and Juanicipio.
Our goal was to enhance workforce safety while supporting
business continuity in high-risk mining operations.
The FMS follows a dual predictive and reactive approach,
aligned with international best practices in responsible
mining and occupational risk management. It integrates
scientifically validated biomathematical technology
(SAFTE® – ReadiWatch) to predict fatigue based on sleep
patterns and circadian rhythms, with an in-cab Driver
Safety System (DSS) using computer vision and artificial
intelligence to detect fatigue, microsleeps and distraction
in real time. This combination enables both early risk
identification and immediate operational intervention.
The results have been impressive, demonstrating that
active fatigue management reduces critical events,
strengthens preventive decision-making and improves the
safety of personnel and material transport. Analysis of key
indicators, including the Fatigue Index (FIN), confirms that
shorter shifts significantly lower fatigue risk, supporting
organisational decisions. Medical assessments of affected
workers also identified social, medical and mental health
factors as relevant contributors to fatigue, enabling timely
referrals and more comprehensive interventions.
Overall, the FMS reinforces our commitment to
occupational safety and workforce wellbeing through data-
driven risk management, as part of our broader
sustainability approach.
81
Fresnillo plc Annual Report and Accounts 2025
Comprehensive Wellbeing
Complementing our occupational
health approach, comprehensive
wellbeing promotes preventive care to
reduce chronic diseases and enhance
fitness for work, through a holistic
approach that balances health,
productivity and quality of life.
Our initiatives include vaccination and
supplementary health campaigns.
These efforts are complemented by
community health campaigns carried
out in collaboration with local and
federal authorities, health agencies and
the UNAM Foundation (see Socio-
economic development on pages 107–
109). Furthermore, in recognition of the
growing percentage of women in our
workforce, particularly those of
childbearing age, we have developed a
dedicated programme focused on
prenatal care, cancer screening, and
education and training in cancer
prevention, deploying breast cancer
awareness campaigns that include
impactful conferences, breast
examinations, cytology screenings, and
physical activity sessions.
We also provide nutritional guidance
and promote sports, as Mexico has one
of the highest percentages of
overweight citizens according to the
Organisation for Economic Co-
operation and Development (OECD)
with over 70% of adults falling under
this category.
In 2025, we conducted the Fit
Challenge, which seeks to promote
physical activity and a balanced diet,
involving a total of 564 employees who
achieved an average weight loss of 0.75
kilograms per person. The Fresnillo
District was also the venue for the BAL
Championship, involving a total of 585
individuals taking part in over 66
football, basketball, softball and
volleyball teams, among others.
Mental health is a core component of
our comprehensive wellbeing approach
and is managed in line with the Mexican
standard NOM-035-STPS, which guides
the identification, analysis and
prevention of psychosocial risk factors in
the workplace. Our psychology services
are designed to support how employees
think, feel and respond at work,
strengthening emotional resilience, safe
conduct and healthy working
environments.
Psychosocial risks are assessed through
voluntary reference guide
questionnaires and periodic
psychometric evaluations. Employees
identified as having been exposed to
traumatic events or elevated risk receive
psychological assessments and targeted
support. Their progress and
reintegration to activities are monitored,
with temporary role adjustments
implemented where appropriate to
safeguard their wellbeing and prevent
further health risks.
In 2025, we strengthened this approach
through the creation of a dedicated
Mental Health Department, staffed with
in-house psychologists and with at least
one specialist assigned to each mining
unit. We also implemented our Mental
Health Strategic Plan, combining
prevention, early intervention and
regulatory compliance.
Activities included psychosocial
assessments, psychological support for
injured personnel, incorporation of
psychological assessments in defensive
driving training, and continued
promotion of formal reporting channels
for workplace harassment and
inappropriate behaviour, including the
Whistleblowing Mechanism and Labour
Behaviour Commissions (see Ethics and
culture on pages 65–68).
By year end, 446 employees and
contractors had participated in the
emotional maturity programme, more
than 4,500 NOM-035 assessments had
been conducted, and over 2,700
psychological evaluations had been
completed across different
programmes. These efforts strengthen
our ability to manage psychosocial risks
proactively and foster safe, supportive
and productive workplaces.
Certifications and awards We hold
certifications including the Mexican
Social Security Institute’s (IMSS)
‘Safe and Healthy working
Environment’ (ELSSA) and the ‘100%
Smoke and Emissions-free space’ of the
Mexican Health Ministry (see our ESG
KPIs Tables on pages 111-117).
What’s next:
• Conduct the third editions of the
‘Living in Balance’ and ‘Readiness
for Change' and 'Motivation' to
Adopt a Healthy Lifestyle’ surveys
in 2026 to further inform
preventive health strategies.
• Strengthen workforce
preparedness through continued
training in emergency response,
hazardous materials management
and occupational health.
• Enhance health monitoring
capabilities by developing internal
KPIs for ergonomics and mature
the hygiene performance
indicators.
• Expand psychosocial risk
management through regular
psychological assessments for
new and existing personnel,
targeted prevention initiatives,
and strengthened psychological
support services for employees
exposed to risk.
• Consolidate behavioural and
leadership development
workshops and the emotional
maturity programme, to promote
assertive behaviours, resilience and
healthy interpersonal dynamics.
• Promote healthy lifestyles through
structured active breaks during the
working day, internal sports
tournaments and nutrition
awareness campaigns, including
traffic-light labelling in industrial
canteens
82
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
PROTECTING OUR ENVIRONMENT
We optimise resource consumption to curb our impact and are
accountable for our environmental footprint.
While recognising the critical role that
mining and precious metals processing
have as essential industries, we also
acknowledge the environmental impacts
of our operations, including water
consumption, land disturbance, waste
generation, and Greenhouse Gas (GHG)
emissions. To sustain our social licence to
operate, we prioritise resource
optimisation, mitigate adverse impacts,
and transparently communicate our
environmental footprint to stakeholders. A
systematic approach to environmental
management enables us to:
• Prevent or mitigate adverse
environmental impacts.
• Comply with legal and regulatory
requirements.
• Improve environmental performance
across the life cycle of products and
services.
• Achieve financial and operational
benefits through sustainable
practices.
• Transparently communicate
environmental progress to stakeholders
to support our licence to operate.
Environmental Impact Assessments
(EIAs) are a top priority before launching
any activity. They enable us to identify
potential impacts on key issues such as
water resources, air quality, land use,
biodiversity and socioeconomic
conditions, while also assessing the
condition and vulnerability of local and
regional resources. These assessments
inform the development of robust
environmental management plans and
support compliance with ISO 14001
standards.
In 2025, we identified our environmental
risk portfolio as the foundation of a
company-wide approach to critical
controls, highlighting those factors that
are most material across our operations.
Our aim is to strengthen incident
prevention, reduce the severity of
potential impacts on the environment
and human health, and embed early-
warning systems and continuous
improvement practices across
operations.
In 2026, this strategy will be rolled out
across all business units, with each site
identifying its highest-priority
environmental risks and we will be
implementing critical controls,
performance standards and field
verification processes.
Energy
Mining is inherently energy-intensive,
relying heavily on fuel and electricity to
extract, process, and transport minerals.
Vigilantly monitoring energy
consumption and GHG emissions is
central to our sustainability efforts,
enabling us to mitigate risks, improve
resource efficiency, and contribute to
cost management, thereby securing
business continuity.
In 2025, renewable sources accounted
for 77.8% of our total electricity
consumption across the different
regulatory frameworks under which we
operate, representing a slight decrease
compared with the previous period. This
was mainly due to lower renewable
generation resulting from adverse
climatic conditions, as well as the
depletion of our renewable inventory
under the self-supply scheme.
36.7% of total electricity was secured
under the Electricity Sector Law (LIE)
regulatory framework, with Fuentes de
Energía Peñoles (FEP) acting as our
Qualified Services Supplier. A total of
94.3% of this consumption was sourced
by the wind farm Eólica Mesa La Paz
(MLP), while the remainder was
procured from the wholesale electricity
market (WEM).
The remaining 63.3% of electricity was
secured under the legacy Self-Supply
regime, under which some of our load
centres continue to operate. Of this, 68.2%
was sourced by the wind farm Eólica de
Coahuila (EDC), with the remaining
energy sourced from the Mexican power
utility and Federal Electricity Commission
(CFE) Basic Supply.
In absolute terms, renewable energy
consumption fell from 987.7 GWh/year
in 2024 to 889.2 GWh/year in 2025,
together with an overall decrease of
6.7% in electricity consumption. See our
ESG KPIs Tables on pages 111-117.
We have increased our use of renewable
energy in recent years, with the aim of
achieving 75% renewables in our
electricity mix by 2030. This target will
remain unchanged, as new expansion
and exploration projects continue to
come online and place additional
demand on available renewable
capacity. Looking ahead, we will
continue to prioritise a reliable and
cost-competitive energy supply,
underpinned by clean energy sources.
Renewable electricity consumption
Energy intensity
(MWhe / ton processed ore)
GHG intensity
(ton CO
2
e / ton processed ore)
83
Fresnillo plc Annual Report and Accounts 2025
T
Regulatory framework % Renewable % Non-renewable Total
LSE (Wholesale Electricity Market) 34.6%
a
2.1%
b
36.7%
Self-supply (Legacy contracts) 43.2%
c
20.1%
d
63.3%
Total 77.8% 22.2% 100 %
Notes: Sourcing for each figure corresponds to: a) MLP, b) WEM, c) EDC, d) CFE.
0.0189
0.0183
0.0248
0.0246
0.0231
2025
2022
2021
2024
2023
0.097
0.092
0.088
0.080
0.081
2025
2022
2021
2024
2023
77.8%
80.6%
53.3%
35.6%
49.7%
2025
2022
2021
2024
2023
Global GHG emissions and energy consumption for the period 1 January 2025 to 31 December 2025
GHG emissions (tonnes of CO
2
e) Energy (MWhe)
Reporting year Previous year
%
change Reporting year Previous year
%
change
2025 2024 2025-2024 2025 2024 2025-2024
Scope 1 + Scope 2 (market-based) 531,282 598,581 (11.2) 2,728,515* 3,003,587 (9.2)
Scope 1: Combustion of fuel (mobile and
stationary sources).
418,439* 469,122 (10.8) 1,585,142 1,778,651 (10.9)
Diesel Total 371,409 415,283 (10.6) 1,371,229 1,533,177 (10.6)
Diesel (Company-owned) 283,650 283,431 0.1 1,047,235 1,046,401 0.1
Diesel (contractors) 87,759 131,852 (33.4) 323,994 486,776 (33.4)
Gasoline Total 5,848 5,935 (1.5) 22,524 22,859 (1.5)
Gasoline (Company-owned) 3,643 3,214 13.3 14,030 12,381 13.3
Gasoline (contractors) 2,205 2,721 (18.9) 8,494 10,479 (18.9)
Natural gas Total 37,634 43,728 (13.9) 175,779 204,245 (13.9)
Natural gas (Company-owned) 37,634 43,728 (13.9) 175,779 204,245 (13.9)
Natural gas (contractors) 0 0 n/a 0 0 n/a
LPG Total 3,549 4,177 (15.0) 15,610 18,370 (15.0)
LPG (Company-owned) 3,382 3,977 (15.0) 14,876 17,491 (15.0)
LPG (contractors) 167 200 (16.4) 735 879 (16.4)
Scope 2 (market-based): Electricity
purchased from the grid and PPAs
112,843* 129,459 (12.8) 1,143,373 1,224,936 (6.7)
Mexican National Grid (CFE and WEM) 112,843 85,831 31.5 254,150 193,314 31.5
Thermal – Thermoelectric Peñoles (TEP) 0 43,628 (100.0) 0 43,949 (100.0)
Wind – Coahuila Wind Force (EDC) & Mesa
La Paz (MLP)
0 0 n/a 889,223 987,674 (10.0)
Intensity measurement: Emissions and
energy reported above per tonne of
processed ore. Scope 2 emissions are market-
based.
0.0189* 0.0183 3.4 0.097* 0.092 5.8
Notes:
1. Figures marked with an asterisk (*) have been assured by EY. Refer to the assurance statement on pages (118-119).
2. Methodology: We have reported on all the emission sources required under Streamlined Energy & Carbon Reporting. These sources fall within our operational control.
We do not have responsibility for any emission sources that are not included in our Consolidated Statement. The emissions and energy consumed in the United
Kingdom and offshore as well as those pertaining to our exploration projects and corporate offices are negligible. We have used the Greenhouse Gas Protocol: A
Corporate Accounting and Reporting Standard (Revised Edition), and a 100-year time horizon Global Warming Potential (GWP) for Methane (CH
4
) and Nitrous oxide
(N
2
O) equivalences. Updates to Scope 1 and Scope 2 data compared with prior periods reflect changes in the Mexican National Grid emission factor and the fossil fuel
heating values published by the Mexican Ministry of Energy. As these parameters are typically released after publication of this report, the fossil fuel heating values and
electricity grid emission factors (CFE and WEM) applied to 2025 consumption correspond to 2024 data.
3. Scope 1 corresponds to direct GHG emissions / direct energy consumed.
4. Scope 2 corresponds to indirect GHG emissions from purchased electricity consumption.
5. Processed ore corresponds to the ore processed in the beneficiation and leaching plants, the mineral deposited in the leaching pads as well as iron concentrate treated
in the pyrites plant.
84
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Climate change
Task Force on Climate-related
Financial Disclosures (TCFD)
Compliance Statement
FCA Listing Rules
We have provided climate-related
financial disclosures for the year ended
31 December 2025 according to the UK’s
Listing Rule 6.6.6R(8) of information to
be included in the annual reports and
accounts, having taken into
consideration the UK Listing Rule
Guidance (UKLR) 6.6.8G and UKLR
6.6.9G for all sectors and non-financial
sectors. This includes all four of the
TCFD pillars and the 11 recommended
disclosures set out in Figure 4 of
Section C of the report entitled
‘Recommendations of the Task
Force on Climate-related Financial
Disclosures’ published in 2021 by the
TCFD. In completing this work, we made
use of TCFD guidance material,
including the TCFD technical
supplement on the use of scenario
analysis, TCFD Guidance on Metrics,
Targets and Transition Plans, and the
TCFD Guidance for All Sectors.
Our report is partially consistent with the
TCFD recommendations as outlined in
the table below. Further development is
still required on Strategy recommended
disclosure B, and Metrics and Targets
recommended disclosure C. These gaps
stem from our ongoing efforts to quantify
Climate Risks and Opportunities (CROs),
integrate them into business strategy, and
define additional climate-related targets.
In 2026, we plan to
continue our progress in reporting
across all four TCFD pillars, with
particular focus on integrating climate
analysis into the environmental risk
portfolio. Additional details on our
planned improvements are provided in
the table below.
Task Force on Climate-related Financial Disclosures Statement. Summary of Fresnillo’s TCFD response
TCFD Pillar TCFD recommendation
Cross-
reference Summary of progress to date What’s next
Governance a) Board oversight Page 86 Consistent: The HSECR committee assists the Board and
collaborates with management to provide oversight on
the effectiveness of the Company’s ESG strategies –
including climate change – which is discussed at quarterly
meetings; the Chairman of the HSECR reports insights
from these meetings to the Board.
Assess progress on TCFD disclosure and oversight of
the Company’s approach to physical risks and
transition risks. Develop synergy between the Audit
and the HSECR Committees.
b) Management’s role Page 86 Consistent: Within the Senior and Middle Management
tiers, the responsibility for climate change
encompasses identifying strategic risks, evaluating
their impact on achieving strategic objectives, and
supervising the implementation of controls in both
strategic and operational plans.
Integrate climate-related opportunities into the
Company’s growth strategy and cost control initiatives.
Define criteria and coordinate efforts to mature climate
financial analysis.
Strategy a) Climate-related risks
and opportunities
Page 87 Consistent: Time horizons for CROs are defined based
on the ERM framework and the Company’s strategic
planning. The shortlist of CROs includes detailed
descriptions of impacts on our business.
Continue to improve and refine financial materiality
assessments of the most relevant CROs.
b) Impact on the
Company’s business,
strategy and financial
planning
Page 91 Partially consistent: Engaged with industry experts to
understand decarbonisation value levers and matured
an energy demand forecast process. More work is
needed to integrate climate-related considerations into
overall strategic decision-making.
Continue to develop and mature inputs to integrate
climate-analysis into financial planning, informing the
Company’s strategy, and how the implementation of
this strategy will align with Mexico's NDCs and the UK’s
transition planning.
c) Resilience of the
Company’s strategy
Page 91 Consistent: Strengthened climate-scenario analysis
including a 2°C scenario for transition risks and 4°C for
physical risks. Gathered qualitative and quantitative key
insights on risk exposure, informing climate resilience.
Quantified risk materialisation scenarios of our most
prevalent CROs.
Develop a framework that allows for connectivity
between CROs and capital expenditures. Incorporate
ongoing cost control initiatives and climate-
opportunities to climate mitigation and adaptation
strategies.
Risk
Management
a) Risk identification
and assessment
process.
Page 92 Consistent: Defined comprehensive CRO register,
providing insights into the most exposed CROs per
facility.
Update analysis as new projects and expansions come
online. Continue monitoring risks and develop KRIs.
b) Risk management
process
Page 93 Consistent: Designed climate-risk management
framework, and climate-risk assessments.
Develop action plans to strengthen and standardise
existing controls and mitigation measures, integrating
analysis into the environmental risk portfolio.
c) Integration into
overall risk
management
Page 95 Consistent: Streamlined climate into the ERM
framework.
Continue maturing the climate-risk management
framework, connectivity with emerging risks and
review insurance opportunities.
Metrics and
Targets
a) Climate-related
metrics to assess
climate risks and
opportunities
Page 94 Consistent: Disclosed industry specific metrics. Fully comply with cross-industry indicators.
b) Scope 1, Scope 2, and,
if appropriate, Scope 3
GHG metrics and the
related risks
Page 97 Consistent: GHG emissions aligned to GHG Protocol
methodology. Third-party verification of Scope 1 and
Scope 2 GHG emissions.
Refine scope 3 GHG inventory while concurrently
carrying out third-party verification of climate-related
KPIs.
c) Climate-related
targets and
performance against
targets
Page 97 Partially consistent: Aim to source 75% of the
Company's electricity from renewable energy by 2030.
Introduced the first remuneration indicator in 2023
relative to GHG emissions intensity and water intensity.
More work is needed to commit to other targets.
Analyse different approaches to setting GHG emission
reductions and timeframes for resulting viable options.
Mature connections between climate change and
other ESG risks, incorporating them more explicitly into
KPIs and targets.
85
Fresnillo plc Annual Report and Accounts 2025
Governance
The role of the Board and its
Committees
The Company’s governance framework
is detailed on page 149. Board
Committees focus on specific topics on
behalf of the Board, drawing on the
Directors’ diverse range of skill sets and
experiences. During these sessions,
Directors actively engage in discussions,
raise inquiries and provide
recommendations to guide
Management.
Two Committees play a particularly
active role in overseeing climate change
and broader ESG matters, in line with
their respective Terms of Reference
(ToR), which are available on the
Company’s corporate website.
• The Audit Committee reviews and
challenges the Company’s climate-
related financial disclosures and
oversees progress on reporting. It also
conducts a quarterly review of
principal and emerging risks — many
of which intersect with climate-
related risks — and monitors the
effectiveness of risk management and
internal controls.
• The HSECR Committee engages
closely with Management to oversee
the Company’s strategies, ensuring
they effectively address ESG
considerations, including climate
change. On a quarterly basis, it
monitors key performance indicators
and benchmarks progress against
industry peers. Discussions include
climate change and other
sustainability regulatory
requirements, progress against the
Company’s renewables target, and
intensity metrics on water, energy and
GHG emissions.
The Board receives updates from its
Committees, including reports from the
Chairs of the Audit and HSECR
Committees, as well as regular
sustainability performance updates
from the CEO. Additionally, Board
working meetings incorporate strategic
discussions on climate change and
broader ESG priorities, reinforcing their
role as an ongoing area of focus. During
2025, key climate-related governance
activities included:
• A dedicated working session for the
Board, including an expert briefing by
a senior sustainability leader on
emerging sustainability, climate,
geopolitical and regulatory trends
shaping the mining sector and the
Company’s strategic context.
• A dedicated working session for the
Board to discuss the Company’s
sustainability challenges, progress
against its Strategic Plan – including
LOM-aligned energy demand and
GHG emissions –, planned next steps
and benchmarking against its peers.
• Audit Committee approval of third-
party external assurance for KPIs
related to direct and indirect energy
consumption and GHG emissions for
the reporting year.
• HSECR Committee review of
regulatory updates on IFRS-ISSB
jurisdictional implementation in the
UK and Mexico, including an
assessment of the Company’s current
gaps, key recommendations and
planned actions.
• Participation by three Board
members and the CEO in Chapter
Zero Mexico’s first Climate
Governance Forum.
To ensure Directors possess the
necessary expertise to oversee
Fresnillo’s climate-related regulatory
compliance and overall strategy, Board
working sessions and HSECR
Committee agendas in recent years
have included briefings on regulatory
updates, reporting frameworks, and
sustainability trends with an industry
perspective from both management
and sustainability experts.
Relevant competencies of Board
members for addressing climate
change — particularly within the HSECR
Committee — are detailed in the Board
biographies in the governance section
on page 150 Notably:
• Mr. Arturo Fernández brings extensive
expertise in Mexican public policy and
a strong academic background in
macroeconomics.
• Dame Judith Macgregor provides
valuable international perspectives on
climate change, leveraging her
extensive diplomatic background.
• Mr. Fernando Ruiz offers considerable
experience in Mexican taxation and
insights into evolving carbon pricing
legislation.
• Ms. Georgina Kessel contributes
significant experience in energy and
climate change.
• Ms. Rosa Vázquez brings extensive
experience in sustainability,
environmental management and ESG
governance from senior leadership
roles in the global chemicals sector.
Management’s role
Guided by the Board and Executive
Committee, and in alignment with our
risk appetite, we systematically assess,
prioritise, and manage climate-related
risks through our Enterprise Risk
Management (ERM) framework.
Climate oversight is embedded within
senior management, ensuring that
decision-makers at the highest level
integrate climate-related risks and
opportunities into the Company’s long-
term strategy. The following roles have
direct responsibility for assessing and
managing these risks:
86
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Management Role Responsibilities
Chief Executive Officer (CEO) Oversees the integration of climate-related risks and opportunities into business strategy,
ensuring alignment with corporate objectives and regulatory requirements. Leads
communication on climate goals and holds the organisation accountable for
implementation.
Chief Financial Officer (CFO) Ensures financial resilience by overseeing compliance with climate-related regulations and
integrating climate risks into financial planning and reporting. Collaborates with operations
to evaluate cost-effective decarbonisation opportunities.
Chief Operations Officers (COOs
– North and Centre Districts)
Lead operational initiatives to enhance energy and resource efficiency, reduce GHG
emissions, and address environmental risks, ensuring alignment with the Company’s
sustainability strategy.
Assistant VP Safety and
Environment
Leads operational implementation of the safety and environmental management systems,
including environmental risk management, regulatory compliance, the implementation of
critical controls and performance reporting.
Corporate Risk Manager Oversees corporate risk management, ensuring climate-related risks are identified,
assessed, and integrated into the broader Enterprise Risk Management (ERM) framework.
In addition, prepares scenarios of possible risks that could materialise.
ESG Compliance Manager Leads sustainability and ESG compliance at a corporate level, ensuring alignment with
climate-related regulation and disclosure requirements and the integration of ESG
considerations into strategy, risk management and external reporting.
Additional functional areas such as
Finance, Energy, Projects and
Construction and Community Relations
contribute expertise and provide
operational support, ensuring
alignment with climate ambitions.
In recent years, we have strengthened
our approach to climate risk assessment
by forming cross-functional steering
teams to refine climate-risk frameworks
and develop climate financial analysis.
Following the harmonisation of climate
risk management with the ERM
framework, in 2025 a team from Risk,
Financial Control, and ESG Compliance
continued collaboration with the
mining units to assess site-specific
climate-related risks.
In parallel, the Company reinforced
internal climate awareness through a
company-wide campaign under the
banner 'A cleaner path is a safer path',
aimed at strengthening baseline
understanding of climate change, its
operational implications, and the
actions being taken to mitigate its
impacts. This initiative supports the
integration of climate considerations
into day-to-day decision-making and
operational culture.
Governance Priorities for 2026
In 2026, we will further refine how
climate priorities translate into
measurable business objectives,
ensuring alignment across strategy,
operations, and investment decisions.
Under the Executive Committee’s
guidance, management will focus on
integrating climate-related
opportunities into the Company’s
growth strategy and cost control
initiatives, tracking progress while
maintaining flexibility in the context of
evolving regulations and market
conditions.
To support this drive, climate-related
matters will continue to be overseen
through our established governance
structures, including the planning of
thematic discussions within the HSECR
Committee. These sessions will help
prioritise actions and inform the
development of capabilities and future
disclosures, while also recognising that
progress will be phased and subject to
operational and regulatory constraints.
In parallel, targeted training and
capacity-building initiatives will continue
to strengthen internal capabilities,
enabling both management and
operational teams to incorporate climate
considerations into decision-making and
day-to-day practices.
Strategy
Climate change represents a principal risk
for the Company, with strategic
implications for the business. Mining plays
a key role in enabling the global transition
to a low-carbon future by providing
essential minerals for renewable energy
technologies. However, at the same time,
it expected to decarbonise its own
operations and adapt to evolving
regulations to reduce its impact.
Although Mexico does not currently
have a net zero target, the country’s
plans to increase reductions in its
Nationally Determined Contributions
(NDCs) of economy-wide emissions to
50% by 2035 will require the
participation of heavy industries such as
mining. This regulatory shift, along with
increasing pressure for carbon pricing
mechanisms, underscores the
importance of preparing for transition
risks while also leveraging opportunities
to enhance efficiency and incorporate
renewables to reduce costs.
Scenario analysis
We use scenario analysis to evaluate
how different climate futures could
impact our business. Our approach
follows internationally recognised
methodologies:
• Physical Risk Scenarios: Based on
the Intergovernmental Panel on
Climate Change (IPCC) and Shared
Socioeconomic Pathways (SSPs),
these scenarios encompass a
spectrum of potential futures shaped
by various combinations of possible
socioeconomic, regulatory and
climate factors which offer insights
into possible social, economic,
political, and technological changes
between the present and 2100. These
were used to assess impacts such as
extreme weather events.
• Transition Risk Scenarios: Based on
the International Energy Agency (IEA)—
which relies on the Global Energy and
Climate (GEC) Model — these scenarios
examine future energy trends to model
potential regulatory and market
changes, including carbon pricing. The
Net Zero Emissions (NZE) scenario
shows a narrow but achievable pathway
for the global energy sector to achieve
net zero by 2050, whereas the
Announced Pledges Scenarios (APS)
considers all climate commitments
made by Governments around the
world, including NDCs and net
zero targets.
87
Fresnillo plc Annual Report and Accounts 2025
Climate scenarios
Scenario name
Warming
trajectory by
2100 Description
Physical Scenario
Source
Transition Scenario
source
Rapid 1.5°C A rapid transition to a global low-carbon economy that
achieves net zero by 2050.
Not considered IEA NZE
Steady <2°C A steady transition in line with the Paris Agreement, limiting
peak warming below 2°C. World economies adopt more
sustainable growth, with lower material intensity and respect
for environmental boundaries.
IPCC SSP 1-2.6 IEA APS
Delayed 2-3°C A slow transition with notable physical and transition impacts.
Emissions decline after 2045, but environmental degradation,
moderate growth, and persistent inequality increase
vulnerability.
IPCC SSP 2-4.5 Not considered
Business as
usual
>4°C A worst-case scenario with unconstrained emissions, leading
to extreme warming and intensified physical risks. Rapid
technological progress is coupled with high fossil fuel use and
resource-intensive lifestyles.
IPCC SSP 5-8.5 Not considered
We anticipate that transition risks will
materialise more rapidly than physical
risks, as proactive climate action seeks
to mitigate the most severe
consequences of climate change. While
reducing emissions can help limit long-
term physical risks, it also introduces
regulatory, financial, and market-driven
challenges. Conversely, in the absence
of emissions constraints, physical risks
will intensify, becoming more frequent
and severe.
Scenario analysis provides a structured
approach to understanding potential
climate-related impacts on our
business. While not a forecast, it enables
us to evaluate a range of possible
futures and integrate climate
considerations into operational and
financial planning. In past years,
management has been assessing the
resilience of the Company taking into
consideration different climate-related
scenarios. This ongoing work has taken
into consideration how climate-related
risks and opportunities may evolve and
their potential business implications
under different conditions.
Physical risks
There are significant potential physical
risks to our operations due to extreme
weather events caused by climate
change. These risks vary depending on
factors such as whether a mine is
underground or open-pit and its
geographic location within Mexico.
In 2023, we conducted a scenario
analysis based on IPCC scenarios for
eight physical risk hazards: wildfire, heat,
flood, precipitation, drought, hail/
thunderstorms, cold, and wind. The
focus of this analysis was impact,
understood as potential financial loss
due to asset and infrastructure damage,
as well as disruption to revenue-
generating activities. The analysis was
performed at five-year intervals from
2020 to 2100. By evaluating the severity
and frequency of these risks in the short
term and projecting their evolution
through 2050, we identified sites
currently exposed to physical risks as
well as those that may become more
vulnerable over time.
Risk classifications ranged from ‘Lowest’
to ‘Highest,’ based on hazard severity in
2020 under a >4°C scenario (business as
usual) — as per the base year default of
the modelling tool used to model these
hazards. The risk change categories
indicate how risk levels are expected to
shift by 2050 under the same scenario.
These range from ‘lowest increase in
risk’ to ‘highest increase in risk’, with an
additional ‘reduction in risk’ category
where applicable. The risk classification
for each hazard reflects the average
across all sites included in our scenario
analysis—incorporating all our operating
mines and advanced exploration
projects. We have highlighted in the
table below the results that are most
relevant for this preliminary analysis.
Average risk classification for all mining sites assessed by hazard
Hazard
Current risk
(2020)
Risk change
(2020-2050)
Wildfire High Lowest increase
Wind Low Lowest increase
Heat Low Medium increase
Drought Low Reduction in risk
Precipitation (rainfall) Low Low increase
Cold Low Reduction in risk
Hail and thunderstorms Low Reduction in risk
Flood* Lowest Lowest increase
* There are three common flood types: 1) Fluvial floods (or river floods), caused by an overflow of a river, lake or stream into neighbouring land. 2) Pluvial floods (flash floods
and surface water), caused by extreme precipitation. Surface water floods occur when the urban drainage system is overwhelmed, whereas flash floods are caused by
torrential precipitation falling within a short amount of time, as well as due to the sudden release of water from a levee or dam. 3) Coastal floods (or storm surge) are the
inundation of land along the coast by seawater caused by tsunamis, high tides and windstorms.
88
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Transition risks
Our operations face a range of potential
transition risks, including market shifts,
policy and legal changes, technological
advancements, and reputational factors.
Many of these risks fall outside our direct
operational control, necessitating a
proactive and preventive approach.
When incorporating scenario analysis,
the warming trajectory expected by 2100
for transition risks remains consistent
across the NZE and APS scenarios, as
both assume progress toward
decarbonisation—albeit at different
speeds.
We conducted scenario analysis using a
net zero Emissions (NZE) pathway and
an Announced Pledges (APS) scenario.
In the absence of a current carbon
pricing mechanism in Mexico, we used
carbon price projections from the
International Energy Agency (IEA) for
both developed and developing
economies. This dual approach accounts
for potential future pricing policies in
Mexico and reflects costs associated with
the EU’s and other potential Carbon
Border Adjustment Mechanisms
(CBAM). Our analysis considered Scope 1
and 2 emissions by mine site, based on
calculations from the 2025 update of our
2025-2040 Strategic Plan, including only
the Life of Mine (LOM) of existing assets
and most material energy sources
(electricity and diesel).
Projected impact of carbon pricing,
net zero scenario
(US$ million)
Developed economy (US$140/tCO2e)
Developing economy (US$90/tCO2e)
Projected impact of carbon pricing,
Announced Pledges scenario
(US$ million)
Developed economy (US$135/tCO
2
e)
Developing economy (US$40/tCO
2
e)
The findings indicate that, depending on
the pricing scenario, our Company faces
significant potential exposure to rising
costs from carbon pricing if additional
emission reduction measures are not
implemented. Additionally, we
anticipate cost pressures from our
upstream value chain, as suppliers pass
on expenses related to new equipment
investments and direct carbon costs.
Given that commodity prices are
market-driven, we have limited ability to
influence downstream pricing. Moreover,
further granularity in carbon emissions
data across the value chain is needed to
fully assess the financial impact of
carbon pricing.
Despite continuous monitoring of
carbon pricing mechanisms, we
currently assess its risk rating as low due
to the limited applicability of such
instruments in Mexico—as detailed in
the Climate Resilience section on page
91. However, given the potential financial
implications as well as the evolving
regulatory landscape and growing
public policy commitments nationally
and internationally, together with its
relevance for internal shadow pricing or
carbon budgeting, we recognise the
need to ensure both Company Senior
Management and stakeholders remain
informed of its potential impact.
Climate Risk Identification and
Assessment
Our climate risk assessment is an
evolving process that integrates periodic
reviews to refine our strategic response.
After running some calibration exercises
for our scenario analysis in 2023, we
reassessed our Climate-Related Risks
and Opportunities (CROs) through an
updated analysis aligned with our
Enterprise Risk Management (ERM)
framework. This review incorporated
insights from risk owners across key
areas—Industrial Safety, Water, Tailings
Storage Facilities (TSFs), Mine Planning,
and Maintenance — enabling a more
focused approach to prioritising climate
resilience and adaptation measures.
We have identified and evaluated 25
material CROs based on their likelihood
and potential impact, ensuring alignment
with the operational horizons of the
Company Strategic Planning framework.
These risks span short-term (2025-2029),
medium-term (2030-2035), and long-term
(beyond 2036) time horizons, providing a
structured approach to managing
exposure across the mining lifecycle. While
certain operations are expected to cease
before 2040, the Company seeks to
maintain a consistent long-term
assessment at a business-wide level,
recognising that CROs continue to be
relevant throughout closure and post-
closure phases.
The current list of CROs, together with the
most recent Red-Amber-Green (RAG) risk
ratings based on the ERM framework —
which incorporates both impact and
likelihood of occurrence — is shown in the
table below. As these risks are assessed as
part of the annual risk assessment process,
certain risks experienced changes in their
risk ratings, compared to 2024. These
changes reflect evolving climatic
conditions, shifts in underlying risk factors,
improved availability of data and overall
information, and enhanced engagement
with risk owners, and together enable a
more robust assessment of both short and
long-term impacts. In addition,
improvements in controls and mitigation
measures contributed to changes in the
overall risk profile for some risks.
Specifically, CROs P1, P2, P3, P5, P6, T2, T3
and T5 — which are deemed to be
particularly relevant by management–
are highlighted and explained in more
detail in the following sections.
The ongoing strategic review of the
Company’s CROs continues to inform its
risk management approach and
provides valuable input for the further
development of its climate strategy.
Further details on the ERM framework
are set out in the Managing our risks and
opportunities section on pages 120-142.
89
Fresnillo plc Annual Report and Accounts 2025
86
86
73
60
60
53
56
51
44
42
56
55
47
39
39
34
36
33
29
27
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
83
83
70
58
58
51
54
49
43
41
25
25
21
17
17
15
16
14
13
12
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
List of Climate Risks and Opportunities
ID
Risk
Category
Climate risk type -
subcategory Summary risk title Levers affected Value chain impact
Time
horizon
Risk
Rating
Chg. vs.
‘24
P1 Operational Physical - Acute Extreme weather events (rainfall, storms,
flooding) impact operations and cause
business disruption
Decrease in
revenue, Increase
in costs
Extraction and
beneficiation
Medium
Term
Medium Decrease
P2 Operational Physical - Acute Extreme weather events (cold, freezing
conditions, snowfall) impact operations
and cause business disruption
Decrease in
revenue
Extraction and
beneficiation
Medium
Term
Medium Stable
P3 Financial Physical - Acute Extreme weather events (heatwaves and
wildfires) impact operations and cause
business disruption
Decrease in
revenue
Extraction and
beneficiation
Medium
Term
Medium Stable
P4 Operational Physical - Chronic Chronic changes to climate affecting
operations and mine closure
Increase in costs Extraction and
beneficiation /
Closure and post-
closure
Long
Term
Medium Increase
P5 Financial Physical - Chronic Droughts stress water management
systems
Increase in costs Extraction and
beneficiation
Long
Term
Low Decrease
P6 Operational Physical - Chronic More frequent extreme weather events
increase insurance costs
Increase in costs Extraction and
beneficiation
Long
Term
Low Decrease
T1 Compliance Transition - Markets Lower ESG score decreases credit rating Increase in loan
costs
Development and
construction
Short
Term
Low Stable
T2 Operational Transition - Reputation Intensive water use affecting social licence
to operate
Increase in costs Extraction and
beneficiation
Short
Term
Medium Stable
T3 Financial Transition - Reputation Community engagement required to
avoid negative perceptions relating to
changes in local ecosystem
Increase in costs Development and
construction
Short
Term
Medium Increase
T4 Operational Transition - Reputation Capital re-allocation to implement a
decarbonisation strategy
Increase in costs Extraction and
beneficiation
Short
Term
Low Stable
T5 Compliance Transition – Policy and
Legal
Introduction of carbon taxes Decrease in
revenue, Increase
in costs
Extraction and
beneficiation / Other
Medium
Term
Low Stable
T6 Operational Transition – Policy and
Legal
Impacts of purchasing offsets Increase in costs Extraction and
beneficiation
Medium
Term
Low Decrease
T7 Compliance Transition – Policy and
Legal
More stringent land and water usage
regulations are enforced
Increase in costs Extraction and
beneficiation
Medium
Term
Medium Decrease
T8 Compliance Transition - Reputation Increased emissions due to fossil fuel
subsidies
n/a Extraction and
beneficiation
Medium
Term
Medium Increase
T9 Operational Transition - Markets Diesel prices affect costs associated with
energy during extraction
Increase in costs Extraction and
beneficiation
Long
Term
Low Decrease
T10 Compliance Transition - Policy and
Legal
Changing political environment Increase in costs Extraction and
beneficiation
Long
Term
Medium Stable
T11 Compliance Transition - Policy and
Legal
More stringent emissions standards to
comply with Mexico's NDC
Decrease in
revenue
Extraction and
beneficiation
Long
Term
Low Stable
T12 Operational Transition - Policy and
Legal
Implementation of optimisation software Increase in costs Extraction and
beneficiation
Long
Term
Low Stable
O1 Operational Transition - Energy
Source
Switching to renewable sources of energy Reduction in costs Extraction and
beneficiation
Short
Term
High Stable
O2 Strategic Transition - Markets Increased demand for silver for PV panels Increase in revenue Extraction and
beneficiation
Short
Term
Medium Stable
O3 Operational Transition - Resilience Reduction in the material footprint of
Fresnillo as a whole
Reduction in costs Extraction and
beneficiation
Medium
Term
Low Stable
O4 Strategic Transition - Resilience Climate modelling exercises are used to
build organisational resilience
Reduction in costs Extraction and
beneficiation
Long
Term
Medium Stable
O5 Operational Transition – Resource
Efficiency
Implementing efficient closed water
circuits
Reduction in costs Extraction and
beneficiation
Long
Term
Medium Stable
O6 Operational Transition – Resource
Efficiency
Introduction of adaptive technologies to
reduce carbon intensity of assets and
operations
Reduction in costs Extraction and
beneficiation
Long
Term
Medium Stable
O7 Operational Transition – Resource
Efficiency
Introduction of adaptive technologies to
reduce water intensity of assets and
operations
Reduction in costs Extraction and
beneficiation
Long
Term
Medium Stable
90
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Impact on the business, strategy and
financial planning
Climate change affects various stages of
the mining life cycle, including
exploration, development, operation,
closure, and post-closure. Most of our
CROs have been identified as relevant to
the operational stage. Our thorough
analysis of our CROs is intended to serve
as the foundation for informed strategic
decision-making for current operations
and development projects. The
Company has already made certain
climate-related strategic decisions, such
as increasing renewable energy
consumption, and investing in energy
and operational efficiency. Where
decisions have been approved by the
Board, the effects were considered in
the preparation of the financial
statements (see the Judgements
section of the Consolidated Financial
Statements note on page 220).
Our climate strategy follows a proactive
approach, seeking to mitigate our
contribution to climate change while
adapting to its physical consequences.
To support this, we have undertaken
analytical work to strengthen our
understanding of climate-related drivers
and constraints; however, we recognise
that these initiatives represent enabling
steps rather than completed solutions.
• The regional climate modelling
project, concluded in 2023, improved
our understanding of site-specific
climate parameters across operations.
While the analysis enhanced risk
awareness, further work is required to
translate these insights into
operational thresholds, metrics and
decision-making tools, supported by
additional training and capability-
building at site level.
• The decarbonisation roadmap,
covering our largest assets and those
of our parent company, Industrias
Peñoles, provided an assessment of
available low-carbon technologies
and their potential applicability to our
operations. The analysis confirmed
that renewable electricity and fleet
electrification remain the most
material levers; however, it also
highlighted technical, infrastructure
and economic constraints—
particularly for existing operations—
that limit near-term implementation
and target setting. As a result, further
feasibility work is required before
these pathways can be translated into
measurable targets.
In recognition of these limitations,
additional work is underway to
strengthen the integration of climate
considerations into strategic and
financial planning. In 2025, we refined
criteria and workflows to incorporate
energy consumption by source into
long-term Strategic Plan models
aligned to the Life-of-Mine plans of
current operational assets — although
more work is needed to also apply this
methodology to advanced exploration
projects.
Our strategic focus remains on
embedding climate considerations into
day-to-day operational and cost-
efficiency initiatives in ore processing,
and energy and water consumption, as
well as on strengthening analytical
discipline in the accounting of impacts
and GHG reductions, as a foundation for
future target development. This
approach ensures that all contributing
factors — beyond large-scale
technology investments — are
systematically incorporated, reinforcing
our ability to drive meaningful progress.
We also recognise climate-related
opportunities, including increasing
demand for silver in solar PV
applications and copper in green
technologies. Adaptation measures will
continue to prioritise workforce
wellbeing, infrastructure resilience,
water security and collaboration with
neighbouring communities, ultimately
minimising the potential impact on our
business and supporting business
continuity.
These ongoing efforts form part of a
gradual pathway towards the
development of a transition plan
aligned with the Transition Pathway
Taskforce (TPT) framework. While
further information and engagement
are required — particularly in relation to
Scope 3 emissions — we consider this
staged approach essential to enhance
our ability to anticipate and integrate
associated costs and revenue streams
more accurately, ensuring long-term
profitability and resilience.
Climate resilience
In 2024, the Company deepened its
analysis of key physical risks, focusing on
wildfire exposure and water stress in the
Fresnillo District and extreme heat
conditions at Herradura — the operation
with the highest number of days
exceeding 38°C across all scenarios. This
work involved dedicated working sessions
with operational teams to assess exposure
and resilience. A summary of the findings
is presented below.
In addition, the most exposed risks were
also assessed by mining unit. Scenario
assumptions were deliberately stress-
tested to reflect severe but plausible
conditions, in order to ensure that
potential impacts were meaningful
from an operational and financial
perspective because, under normal
circumstances, these would not
represent business interruption or
severe damages to infrastructure. More
information on how the Company
manages our CROs is available in the
next section, on pages 95-96.
91
Fresnillo plc Annual Report and Accounts 2025
Hazard Assumptions What we did in 2025 Conclusion
Wildfire Potentially disrupts
operations, damages
infrastructure and
equipment, and poses safety
hazards due to flames,
excess heat, and smoke.
Conducted a detailed review
of reinsurance risk surveys,
business continuity audits for
each mine, and current
insurance coverage.
Based on this assessment, wildfire risk was
assessed as moderate within the broader
extreme weather risk category. Existing
preventive and response controls — including
on-site firefighting systems and trained
brigades — reduce the likelihood of material
business disruption. In addition, potential fire-
related damage to assets and operations is
covered by insurance.
Heat stress -
equipment and
infrastructure
Extreme heat may reduce
machinery performance or
damage equipment.
Held interviews with mine
leadership, operations, and
mine planning teams to
identify equipment
vulnerabilities.
The risk of heat damage to equipment and
infrastructure was assessed as non-material, as
only a few spare parts, such as tyres, may be
vulnerable during certain seasons, with no
historical data indicating significant impact. A
more detailed analysis is required.
Heat stress -
worker
productivity
High temperatures may
impact worker productivity.
Engaged with medical and
human resources teams to
evaluate personnel exposure,
existing site condition
monitoring processes, and
compliance with labour
regulations on heat exposure.
The risk of heat stress on worker productivity is
difficult to quantify, as job roles already factor
in heat exposure regulations, and mitigation
measures such as air conditioning improve
overall site conditions despite average or peak
temperatures.
Water stress Increased water scarcity and
reduced precipitation drive
competition for water
resources.
Engaged with environmental,
operations and accounting
teams to identify operational
strategies to reduce mine
water consumption and
enhance community
engagement.
The impact of water stress is complex, context-
dependent, and sometimes indirect,
influencing our social licence more than
operational performance. The Company will
continue to substitute freshwater with treated
wastewater — when possible — and strive to
reduce freshwater consumption, improving
operational efficiency and strengthening
community relations.
Additionally, we continue to monitor
transition risks, such as regulatory
developments related to emissions
reduction, carbon pricing mechanisms
and land and water usage regulations,
as well as evolving ESG considerations in
credit ratings methodologies:
• The Special Tax on Products and
Services (IEPS) applied to fossil fuels
has been in place since 2014. Mexico’s
federal Emissions Trading System
applies only to facilities with direct
(point-source) emissions exceeding
100,000 tonnes of CO
2
e per year, a
threshold that is not met by any of the
Company’s operations. In addition,
state-level environmental taxes at
operations in Durango and Zacatecas
— also limited to point-source
emissions — cover only 1% of the
Company’s total GHG emissions.
• The ESG profile scores of our credit
ratings are in line with the metals and
mining sector.
In 2025, we refined, standardised and
formally documented our long-term
energy planning analysis, aligning it
with the life-of-mine (LOM) profiles of
our operations. This process underwent
multiple internal reviews and
incorporated key operational drivers,
including mine development plans,
incremental increases in equipment
and associated energy demand,
ventilation depth and requirements,
and other structural factors affecting
future consumption.
Based on our thorough and evolving
analysis of CROs, our management is
confident in our Company's resilience
and ability to thrive amidst the
challenges of climate change. We are
dedicated to sustainable operations and
remain optimistic about our profit-
generation capacity. With strong
processes to manage and adapt to
climate-related risks, we are well-
equipped to successfully navigate the
changing climate landscape, securing
the long-term sustainability and success
of our business.
Strategy Priorities for 2026
In 2026, the Company will continue to
consolidate and embed its long-term
energy planning forecast within the
Strategic Plan, while selectively advancing
its application to advanced exploration
projects, based on conceptual
engineering assumptions, when available.
We consider the energy forecast
analysis to be a critical input for
strengthening our financial and
strategic planning, enabling the
integration of more granular
assumptions on key resources — such
as energy and water — into forward-
looking assessments. Building on this
foundation, we are working to enhance
connectivity between climate-related
risks and opportunities and capital
allocation decisions, and to further
refine the quantitative assessment of
the Company’s most material climate-
related opportunities.
Risk Management
The Board has overall responsibility for
the Company’s approach to risk
management and delegates this
oversight to the Audit Committee.
Climate change is considered a
principal risk to the business, and the
Company applies a Group-wide risk
management framework
encompassing risk identification,
assessment, prioritisation, mitigation
and ongoing monitoring, which is
regularly reviewed and enhanced in line
with best practice. Climate change is
also closely linked to a number of
emerging risks, notably Water stress
and drought, transition to a low-carbon
future and increasing societal and
investor expectations (see Managing our
Risks and Opportunities on page 120).
92
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Identifying and assessing climate risks
and opportunities
The intricate and rapidly evolving nature
of climate change amplifies risks related
to environmental incidents, water
access, workforce health and safety,
regulatory changes, and social licence to
operate. A robust climate strategy
depends on a deep understanding of
our business models CROs, considering
the mining lifecycle and our value chain.
Our risk management system follows a
structured approach — identification,
assessment, prioritisation, mitigation,
and monitoring — continuously refined
in line with best practices.
Climate change considerations were
first incorporated into our annual risk
appraisal in 2021. The process began
with a risk catalogue informed by
industry benchmarks, peer insights, and
climate guidance, followed by
workshops and interviews across all
business areas to build a comprehensive
CRO register. In 2023, we refined this
register, consolidating risks into a more
focused list of material CROs. This
involved fully integrating climate
change into our Enterprise Risk
Management (ERM) framework,
aligning climate risk scoring with
corporate risk criteria, ensuring risk
definitions were broad enough to be
relevant across the business.
In 2024, we conducted our first
dedicated climate risk assessment,
applying a balanced and representative
approach to evaluate what
management deemed the most
material physical and transition CROs to
the organisation. We believe that an
insight into this comprehensive subset
of CROs offers an opportunity to
enhance controls and mitigation actions
for risks that have either materialised or
remain latent.
This process was informed by past
experiences of business continuity
interruptions—such as Hurricane Rosa
in Herradura, where extreme
precipitation disrupted transport routes
and access roads, caused landslides, and
flooded the pit and other critical
infrastructure. Further examples include
the polar vortex in San Julián, which
caused blockages to access roads,
interrupting critical supplies, and power
shortages. The process was also
informed by past events that did not
affect business continuity, such as
wildfires close to our facilities at Ciénega
and San Julián, as well as current
operational challenges and local
conditions including water sourcing
availability, community perception of
water stress and disruptions to local
ecosystems.
In 2025, the Company built on its initial
climate risk assessment by undertaking
a more granular, scenario-based
analysis at site level. Thirteen scenarios
of potential climate-risk materialisation
were developed across mining units,
drawing on operational data, historical
incident records, local conditions and
external technical and scientific sources.
These scenarios focused on key physical
risk drivers identified in the assessment
process, including extreme precipitation,
wildfires and water stress affecting both
operations and surrounding communities.
The scenarios were used to evaluate
potential operational, environmental and
social impacts and to stress-test existing
controls and response measures. The
outcomes informed a reassessment of the
likelihood and severity of selected climate-
related risks, resulting in updated risk
ratings under the Enterprise Risk
Management framework and a clearer
prioritisation of mitigation actions and
management focus areas.
The assessment involved interviews
with risk owners, the mapping of
critical processes, surveys across
mining units and key corporate
departments, quantification of impact
and benchmarking against reports
from insurance institutions and
consultancy firms.
Summary of scenarios built
Mining unit Extreme rainfall Wildfire
Water stress –
operations
Water stress –
communities
Herradura
☑ ☑ ☑
Ciénega
☑ ☑ ☑
San Julián
☑ ☑
Fresnillo
☑ ☑
Saucito
☑ ☑
Juanicipio
☑
During the period, and as a result of the
mid-year climate risk assessment,
controls were also strengthened across
several priority CROs. For example,
additional administrative measures
enhanced the effectiveness of
management systems in responding to
extreme weather events, while
improvements in reinsurance market
assessment and the updating of insured
values reinforced financial resilience.
Controls related to water management
were enhanced through targeted
information sessions to improve
understanding of water circulation and
treatment processes. In parallel, actions
to strengthen the Company’s social
licence to operate supported the
management of community
perceptions and associated
environmental matters. As a result, we
saw improvements in the risk ratings
of P1, P5, P6 and T3, as shown in the
table below.
93
Fresnillo plc Annual Report and Accounts 2025
Climate risk assessment matrix
Risk
ID Risk name Likelihood Impact Risk rating Velocity Appetite Business interruption Assessment of controls
P1 Extreme weather events (rainfall, storms,
flooding) impact operations and cause
business disruption
Likely Medium Medium < 1 year Medium Partial shutdown Adequate with areas of
opportunity
P2 Extreme weather events (cold, freezing
conditions, snowfall) impact operations and
cause business disruption
Unlikely Medium Medium < 1 year Low Impact on one or more
processes
Requires improvement
P3 Extreme weather events (heatwaves and
wildfires) impact operations and cause
business disruption
Unlikely Medium Medium < 1 year Low Impact on one or more
processes
Requires improvement
P5 Droughts stress water management systems Unlikely Low Low < 3 years Low Impact on one or more
processes
Requires improvement
P6 More frequent extreme weather events
increase insurance costs
Unlikely Low Low < 3 years Low n/a Adequate with areas of
opportunity
T2 Intensive water use affects our social licence
to operate
Likely Medium Medium < 1 year Low No impact Adequate with areas of
opportunity
T3 Community engagement required to avoid
negative perceptions relating to changes in
local ecosystem
Unlikely Medium Medium < 3 years Low No impact Adequate with areas of
opportunity
T5 Introduction of carbon taxes Rare Low Low < 5 years Medium No impact Adequate with areas of
opportunity
The latest risk assessment did not
identify any climate-related risk that
would currently be considered
catastrophic for the operations
evaluated, in the sense of causing severe
infrastructure damage or a complete
interruption of business. However, it
highlighted the potential for
unexpected or extreme meteorological
events to generate significant
operational disruption.
Accordingly, the Company reassessed
its exposure to climate-related risks and
identified P1 – Extreme weather events
(including heavy rainfall, storms and
flooding) as the risk to which it is
currently most exposed, given the
potential of such events to disrupt
operations and affect business
continuity.
This process provides clearer insights
into the Company’s risk appetite for
material climate-related risks,
identifying opportunities to strengthen
mitigation measures, and to support
more effective long-term planning.
Managing climate risks
The business-wide impacts of climate
change originally led us to include climate
change as an emerging risk, as part of
provision 28 of the 2018 UK Corporate
Governance Code. Today, however, we
now consider it to be a principal risk.
Updates on the regulatory landscape are
considered in line with business-wide
regulatory monitoring processes. In this
regard, climate change related risks have
been included in the financial viability
study, primarily focused on hypothetical
scenarios of winter storms and extreme
rainfall. For a more detailed overview of
these scenarios, refer to the Viability
Statement on pages 143-144.
Our updated climate change risk
management system is a collaborative
effort involving operational and
corporate departments including
Mine Operations, Plant Operations,
Maintenance, Mine Closure,
Environment, Industrial Safety, Tailings
Storage Facilities (TSFs), Community
Relations, Energy, Financial Planning,
Operational Controllership, Financial
Controllership, Explorations
Controllership, Legal, ESG and Risk.
Ongoing work focuses on the definition
of risk owners, identifying current
controls and mitigation actions, and
collaboratively enhancing these
through monitoring and management,
across all operating units. Our purpose is
to run this exercise periodically with risk
owners to ensure the accuracy of
impact assessments and the adequacy
of future mitigation actions.
In recent years, our focus has been on
fully integrating our assessment of
climate-related risks and opportunities
with our ERM framework. As a result, we
have updated our climate risk
framework to reflect the same scoring
system and timeframes as our central
ERM framework, enabling climate to be
ranked alongside other risks to our
business. Additionally, following the
2024 assessment detailed in the
previous section, we have updated our
controls and mitigation actions for each
CRO in that subset.
94
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
P1 Extreme weather
events (rainfall, storms,
flooding) impact
operations and cause
business disruption
1. Continuous monitoring by qualified personnel using weather stations to predict and anticipate
extreme weather events.
2. Communication protocols and coordination with municipal, state, and federal authorities.
3. Emergency Preparedness Response Plans (EPRPs) for extreme weather events, with continuous
training for emergency response teams
4. TSFs Potential Failure Model Assessments (PFMAs).
5. Deep drainage systems with regular maintenance to withstand extreme rainfall, diversion channels
around industrial areas, contingency ponds surrounding leaching pads, freeboard capacity in TSFs to
contain 100-year storms, pumping systems, lightning rods, and slope stability monitoring in leaching
pads and waste rock heaps.
References in other sections:
• Safety 74-79
Under development
P2 Extreme weather
events (cold, freezing
conditions, snowfall)
impact operations and
cause business
disruption
Controls 1, 2 and 3.
6. HVAC systems for offices, housing, and support areas as well as flu prevention campaigns.
7. Road maintenance, tree pruning to prevent damage to power lines, and construction of alternative
routes.
8. Maintenance and signage of roads, and instrumentation in ventilation circuits.
References in other sections:
• Safety 74-79
Under development
P3 Extreme weather
events (heatwaves and
wildfires) impact
operations and cause
business disruption
Controls 1, 2, 3 and 6.
9. Firefighting systems and brigades, wildfire response equipment and non-damaging testing of
pipelines and infrastructure near forested areas.
10. Cleaning and reforestation campaigns near facilities.
11. Occupational health site monitoring of job conditions (including temperature) and mitigation
measures (such as breaks, hydration or air conditioning) in compliance with labour regulations on
heat exposure.
12. Intelligent hydration systems.
References in other sections:
• Safety 74-79
• Environment 85-103
Under development
P5 Droughts stress water
management systems
13. Tracking water usage in processes and continuous monitoring of groundwater levels across all
business units.
14. Long-term water consumption planning per business unit, including monitoring water concession
titles, usage licences and strict control of bore fields’ consumption.
15. Implementation of wastewater treatment, water recirculation, and reuse efficiency to minimise
freshwater consumption.
16. Infrastructure in place to redirect water supply within the mine and plant, with daily monitoring.
17. Strict control over groundwater extraction for operational use.
18. Specific site initiatives:
– Municipal wastewater treatment and potabilisation of groundwater in Fresnillo District.
– Rainwater harvesting project in Ciénega.
– Early warning system for drought conditions at Herradura.
References in other sections:
• Water stewardship 100-101
• Socioeconomic development 107-109
Percentage of freshwater
withdrawn in regions with
high or extremely high-
water stress
Percentage of water
consumed in regions with
high or extremely high-
water stress
Percentage of water reuse
efficiency*
Wastewater intensity
Percentage of third-party
wastewater inputs
P6 More frequent
extreme weather
events increase
insurance costs
19. Ongoing global monitoring of insurance coverage, pricing, and policy types available for extreme
weather events and climate change-related risks.
n/a
T2 Intensive water use
affecting social licence
to operate
20.Implementation of wastewater treatment, water recirculation, and reuse efficiency to minimise
freshwater consumption to prevent conflicts with local communities.
21. Community engagement framework, including:
a. Meetings with community leaders to discuss water usage concerns.
b. Monitoring community grievances over water shortages and prioritising the addressing of water-
related complaints.
c. Specific engagement programmes related to biodiversity and water management.
References in other sections:
• Water 100-101
• Community relations 104-105
• Socio-economic development 107-109
Wastewater intensity
Percentage of third-party
wastewater inputs
Community grievances*
T3 Community
engagement required
to avoid negative
perceptions relating to
changes in local
ecosystem
Control 21.
References in other sections:
• Community relations 104-105
• Socio-economic development 107-109
Community grievances*
Risk
ID Risk name Controls and mitigation actions Metrics
95
Fresnillo plc Annual Report and Accounts 2025
T5 Introduction of carbon
taxes
22.Engagement with regulators and law makers on energy and climate change regulations through
industry associations
23.Strategy of increasing renewable electricity consumption through legacy self-supply and current
regulatory frameworks.
24.Energy and operational efficiency measures including demand control to reduce electricity demand
in peak hours, haulage route optimisation, mine shafts, harmonic filters, and on demand ventilation
systems
25.Use of hydraulic electric drills in underground mines, replacing drills reliant on fossil fuels.
26.Deployment of fuel switching projects from diesel to electricity.
References in other sections:
• Energy 83-84
• Our approach to sustainable mining 59
Absolute Scope 1 and 2 GHG
emissions
Percentage of grid electricity
Percentage renewable
electricity
O1 Switching to
renewable sources of
energy
Control 22, 23, 24 and 25.
References in other sections:
• Energy 83-84
Percentage renewable
electricity
O2 Increased demand for
silver for PV panels
27.Monitor commodity insights through the Silver Institute and specialised reports.
28.Advanced exploration projects such as Guanajuato focus on silver reserves, whereas exploration
projects in Latin America focus on product diversification
References in other sections:
• Exploration 44-46
• Our markets 18-19
Silver price**
Annual global industrial
silver demand***
Risk
ID Risk name Controls and mitigation actions Metrics
Note: Metrics with (*) are found in the ESG KPIs Tables on pages 111-117,(**) in other sections of this Annual Report, (***) not presented in this Annual Report.
Risk Management priorities for 2026
Following the completion of our 2025 climate risk assessment and scenarios for the most exposed risks at each site, we will
develop action plans for the CROs identified, working with risk owners to strengthen and standardise existing controls and
mitigation measures, and integrating them into the development of the environmental risk portfolio.
Looking ahead, we aim to further develop Key Risk Indicators and leverage scenario analysis to quantify key opportunities, such
as the growing demand for metals and minerals in the global transition to a low carbon future.
96
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Metrics and Targets
Our target is to source at least 75% of electricity from renewable sources by 2030, an objective that has been surpassed since
2024. This target will remain unchanged, as new expansion and exploration projects continue to come online and place
additional demand on available renewable capacity.
Our primary climate-related metrics and targets are linked to our priority CROs, detailed in the previous section. Additionally, the
mining industry is energy and water intensive, and the rigorous monitoring of our usage of both resources is therefore key to our
operations. Our metrics are outlined in table below. Further work is still needed to comply with the cross-industry metrics.
TCFD category Metric
Unit of
measurement % change YoY FY25 FY24 FY23 FY22 FY21
SASB Climate-related Disclosure Topics and Metrics, Metals and Mining
GHG emissions Absolute Scope 1 and 2 (market-based) tCO
2
e -11.2% 531,282 598,581 825,325 968,249 894,149
Scope 1 tCO
2
e -10.8% 418,439* 469,122 469,146 545,970 544,107
Percentage of Scope 1 emissions under
emissions limiting regulations
% n/a 0 0 0 0 0
Scope 2 (market-based) tCO
2
e -12.8% 112,843* 129,459 356,179 422,279 350,042
Absolute Scope 3
a
tCO
2
e n/a + 728,734 700,479 713,043 729,158
GHG emissions intensity measurement
(Scope 1 & Scope 2 market-based)
tCO
2
e / ton of mineral
processed
3.6% 0.0189* 0.0183 0.0248 0.0246 0.0231
Energy
management
Total energy consumed GJ -9.2% 9,822,653 10,812,917 10,590,930 11,350,894 11,327,936
Percentage of grid electricity of total
energy consumed
% n/a 9.3% 6.4% 10.6% 14.8% 10.0%
Percentage renewable energy of total
energy consumed
% n/a 32.6% 32.9% 21.3% 12.4% 17.4%
Percentage renewable electricity of total
electricity consumed
% n/a 77.8% 80.6% 53.3% 35.6% 49.7%
Energy intensity measurement MWh / ton of mineral
processed
5.8% 0.0970* 0.0916 0.0885 0.0801 0.0814
Water management Total freshwater withdrawn thousand m
3
-3.0% 30,274 31,215 24,057 30,023 28,488
Total freshwater consumed thousand m
3
1.7% 10,114 9,944 9,521 12,817 14,534
Percentage of freshwater consumed in
regions with High or Extremely High
Baseline Water Stress
% n/a 100% 100% 100% 100% 100%
Percentage of third-party wastewater
inputs
% n/a 25.9% 30.2% 26.3% 14.0% 12.9%
Wastewater intensity m
3
/ ton of mineral
processed
-4.1% 0.126 0.132 0.103 0.053 0.056
Tailings Storage
Facilities
Management
Number of TSFs
b
Number 11.8% 19 17 17 14 n/a
Cross industry, Climate-related Metric Categories
Remuneration –
CEO Annual Bonus
Weighting points
c
Number 0.0% 5 5 5 n/a n/a
Notes:
a. Scope 3 GHG emissions categories that have been deemed most material include Purchased goods and services, processing of sold products, downstream
transportation and distribution, and Investments. See ESG KPIs tables on pages 111-117.
b. During 2024, the Tailings Review Executive Committee authorised changing the scope of the Tailings Management System to focus only on TSFs, resulting in an update
of the TSF inventory, leaving a record of 6 operational TSFs, 3 under care and maintenance in operational units, and 8 under care and maintenance in legacy units. See
Tailings and mineral waste on pages 98-99
c. Two indicators were included in the CEO Annual bonus under the ESG objective category in 2023, related to water and GHG emission intensities. See Director’s
remuneration report on pages 180-196
(*) Figures marked with an asterisk have been assured by EY. Please refer to the assurance statement on pages 118-119
(+) Processing of sold products and attributable silver from silverstream contract was not available at the time of publication; it will be updated retroactively.
Available Scope 3 figures for the period are reported in the ESG KPIs table in pages 111-117
97
Fresnillo plc Annual Report and Accounts 2025
Waste management
We safeguard local
communities and the
environment through
responsible waste
management.
Our operations generate two main
types of waste:
• Mineral waste — such as tailings and
waste rock
• Non-mineral waste — including
hazardous materials (e.g., used oils)
and non-hazardous recyclables like
wood and plastics
Each waste stream is managed through
dedicated processes that focus on safe
disposal and regulatory compliance,
while minimising environmental
impact. See our ESG KPIs Tables on
pages 111-117
Tailings and mineral waste
Safe tailings management is a critical
aspect of our mining operations,
covering every phase from design to
post-closure. We have adopted a range
of industry-leading principles and
practices for the governance and
operation of our Tailings Storage
Facilities (TSFs). As a result, we reported
no tailings-related incidents in 2025.
Governance
Our governance framework defines the
roles, responsibilities, and accountability
of those involved in the design,
construction, operation, maintenance,
and monitoring of TSFs. The Board’s
Health, Safety, Environment, and
Community Relations (HSECR)
Committee is regularly updated on
compliance, key issues, risks, and
recommended actions.
The Independent Tailings Review Panel
(ITRP) conducts annual field visits and
presents findings to senior
management for follow-up twice a year.
The Tailings Review Executive
Committee — comprising Board
members, advisors, and general
managers — continues to meet every
two months, fostering coordination
across management and enabling
timely, informed decision-making.
The Independent Tailings Review Panel
(ITRP) carried out a review programme
in 2025, covering the Herradura, San
Julián, Saucito, Juanicipio and Fresnillo
(San Carlos and Proaño) facilities –as
well as the new Fátima Norte and
Fátima Sur projects.
The Panel conducted site visits and
inspections across all these facilities,
with the exception of San Julián, which
was not visited during this review cycle.
Additionally, the ITRP issued a total of
142 recommendations during the year.
Of these, 14% have already been
addressed and a further 57% have
approved response plans in progress.
High-priority recommendations
accounted for 7% of the total; the
majority of these have already been
closed, with the remainder subject to
active response plans.
In 2025, we updated our Tailings
Management System guidelines to
strengthen site-level accountability for
decision-making. At the same time, the
Tailings Review Committee continues to
ensure compliance with these
guidelines, drawing on reviews and
reports from both the Corporate Tailings
Team and the Independent Tailings
Review Panel (ITRP).
Element Roles Responsibilities and Activities
Site Management Mine Manager • Risk owner and responsible for operating facilities following the
Tailings Management System guidelines.
Responsible Tailings Facility
Engineer (RTFE)
• Ensure safe operation and implementation of the Tailings
Management System.
Engineer of Record (EoR) • Provide technical expertise to ensure the TSF is managed safely
and complies with appropriate governance and best practices.
Stewardship Corporate Tailings Manager • Develop, update and manage Corporate Governance and Tailings
Management System.
• Administer external reviews and verifications.
External Reviews Independent Tailings Review Panel
(ITRP)
• Annual review programme to confirm compliance with
Governance and best practice requirements.
Inspectors, reviewers, and auditors • Implement Dam Safety Inspections.
• Implement Dam Safety Reviews.
Group-level
oversight
Accountable Executive Officer (AEO) • Accountable for tailings management and implementing the
systems needed for responsible tailings management.
Tailings Review Executive
Committee
• Provide governance and overall oversight.
• Continuous oversight of operation, governance, inspection, review,
and audit reports.
98
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Strategy and Risk Management
Guided by our Tailings Management
System, we uphold safety and
environmental standards throughout
the lifecycle of TSFs. Our system is based
on the ICMM tailings governance
principles and is primarily aligned with
the Mining Association of Canada (MAC)
and the Canadian Dam Association
(CDA), which we believe to be industry
best practice. Our design, construction,
surveillance, and maintenance practices
are supported by qualified engineering
firms. Compliance efforts are supported
by advanced instrumentation and
monitoring systems, enabling near real-
time management of critical controls,
detailed condition reporting, and
prompt response capabilities.
While we are currently not
implementing the Global Industry
Standard on Tailings Management
(GISTM), we continue to monitor
updates and industry developments
related to its implementation. We
believe advancing our Tailings
Management System will position us to
meet many GISTM requirements.
We closely monitor tailings volumes to
optimise remaining capacity and extend
facility lifespan, while adopting practices
that reduce surface storage and
improve resource recovery. As part of
this effort, we continually assess new
technologies — evaluating their safety,
efficiency and environmental benefits,
as well as their maturity and economic
feasibility. Our focus includes:
1. Improving safety: Advanced
surveillance, monitoring, and alerting
technologies (e.g., InSAR, drones, and
data analytics).
2. Enhancing operational efficiency:
Downstream processing technologies
(e.g. paste and filtered tailings).
3. Reducing environmental risks:
Upstream processing technologies
(e.g. selective processing, water and
energy efficiency).
Since 2019, we have systematically
evaluated all tailings facilities against
leading industry standards. This work
exposed important gaps in historical
information and design assumptions,
prompting detailed studies, additional
investigations and, in some cases,
structural reinforcement. As a result, we
now have a far clearer understanding of
our facilities and significantly greater
confidence in their integrity. At the
same time, we recognised that relying
on short-term solutions to maintain
continuity was not sustainable — and
that stronger, forward-looking planning
was required.
By 2025, every site had a feasible,
engineered pathway to meet storage
needs for at least the next five years, with
several plans already aligned to current
life-of-mine expectations. This represents a
step-change in how we manage tailings:
moving from incremental extensions to
strategic, multi-year solutions that
prioritise safety, compliance and
operational continuity.
This strategic shift has been reinforced
through the continued rollout of our
Tailings Management System. In 2025,
implementation reached 70% across all
sites (up from 59% in 2024), including
76% at operational facilities and 61% at
non-operational facilities. The most
significant advances were in risk and
safety management, with full
compliance achieved in:
• Geotechnical characterisation.
• Stability analysis.
• Potential Failure Mode Assessment
(PFMA).
• Dam Breach Analysis (DBA).
• Critical controls and Trigger Action
Response Plans (TARPs).
• Operation, Maintenance and
Surveillance (OMS) Manual.
• Emergency Response Plans (ERPs) –
marking an important milestone in
strengthening preparedness across
our facilities.
Performance
In 2025, we invested US$102.6 million in
eight TSF projects. Our operations
comprise six active tailings facilities,
three facilities under care and
maintenance, and two additional
facilities currently under construction.
All projects are executed in line with our
Tailings Management System and
Capital Project Management System,
incorporating site and tailings
characterisation-based designs, quality
assurance, validation of design by the
Engineer of Record (EoR), and robust
project documentation. In addition, we
also manage eight legacy facilities that
remain under care and maintenance.
See our ESG KPIs Tables on pages 111-117.
During 2025, we generated 13.85 million
tons of tailings and reprocessed 1.58
million tons of old tailings. These
contributed to a net increase of 13.74
million tons in stored tailings, despite 15.36
million tons being deposited during the
year. Key contributions include:
• Fresnillo (Pyrites Plant): Tailings from
legacy facilities were reprocessed at
the Pyrites Plant to recover
economically valuable metals.
• San Julián: Closure of the
Disseminated Ore Body (DOB)
deposit in 2024, ending the use of
tailings paste to backfill underground
mine works. However, tailings
backfilling is being assessed for use at
Fresnillo and Saucito.
Non-mineral waste
Our goal is to optimise resource use by
minimising physical waste and
maximising process efficiency.
We identify two categories of non-
mineral waste: non-hazardous and
hazardous.
Non-hazardous waste
Most non-hazardous waste from our
mining operations consists of waste that
requires special handling. This includes
materials with potential for recycling
(such as cardboard, tyres, wood, steel,
plastics), and urban solid waste (such as
food or sanitary waste). To ensure proper
handling, we adhere to rigorous
materials management protocols and
have dedicated storage sites within our
business units.
We manage waste by segregating,
recycling, and repurposing materials in
compliance with regulatory standards:
• Recyclables are sent to accredited
facilities.
• Urban solid waste is compacted and
disposed of safely.
• Organic waste may be composted or
repurposed for community use.
Hazardous waste
We are committed to responsible
hazardous waste management and
provide comprehensive training to all
personnel covering the entire waste
lifecycle. We securely store, identify, and
organise hazardous waste before
sending it to authorised facilities for final
disposal. Preventive maintenance is also
carried out to ensure equipment
efficiency and minimise the risk of oil
spills, while spent lubricating oil is
reprocessed for reuse.
We also prioritise safe and responsible
cyanide management in compliance with
the International Cyanide Management
Code (ICMC) best practices and Mexican
standard NOM-155 SEMARNAT-2007,
which establish environmental
requirements for gold and silver leaching
systems (production, transportation,
storage, usage, and facilities
decommissioning). Herradura and Noche
Buena are certified under the
International ICMC, which accounts for
each of their Merrill-Crowe processes and
the dynamic leaching plants. Other mines
are not certified but operate under its
principles. No incidents related to cyanide
management were reported in 2025.
See our ESG KPIs Tables on pages 111-117.
99
Fresnillo plc Annual Report and Accounts 2025
Water stewardship
We manage water responsibly
and play an active role in
promoting a watershed-based
approach in the regions where
we operate.
Mining and ore processing require
significant volumes of water, a challenge
that is particularly acute in arid regions
where local communities also face
water scarcity. For this reason, we
prioritise minimising our water footprint
and strengthening how we manage water
across the life cycle of our activities.
Our water stewardship strategy is
structured around four key pillars:
• Efficiency and reuse: reducing
freshwater dependency and
operational risk.
• Pollution prevention: safeguarding
water quality and downstream users.
• Watershed and community
engagement: strengthening water
management at watershed level.
• Transparency and accountability:
ensuring compliance, measurement
and continuous improvement.
Many of our operations are located in
river basins already experiencing high
levels of water stress. Climate change is
expected to further intensify these
conditions through higher
temperatures, changing rainfall
patterns and increased competition for
water resources. To better understand
the potential evolution of these risks, we
assess current water stress levels and
projected conditions under different
climate scenarios to 2030:
Business unit
Current Conditions Water stress considering climate change scenarios (by 2030)
Overall Water Risk Water stress Optimistic Business as usual Pessimistic
Herradura
Noche Buena
Fresnillo
Saucito
Juanicipio
Ciénega
San Julián
Key
Overall Water Risk Water stress
Extremely High (4-5) Extremely High (>80%)
High (3-4) High (40-80%)
Medium – High (2-3) Medium - High (20-40%)
Source: World Resources Institute (WRI) Aqueduct 4.0. Water stress measures the ratio of total water demand to available renewable surface and groundwater supplies.
Higher values indicate more competition among users.
Across our operations, water is
managed through closed-loop systems
that maximise recirculation. In 2025,
recirculation efficiency reached 83.5%,
compared with 84.2% in 2024. This slight
decrease reflects a sharper reduction in
tonnes processed (-14.2%) relative to the
decrease in total water used in
operations (-4.2%).
Where excess mine water is generated
as part of mine development, it is
discharged to surface water bodies in
accordance with regulatory
requirements, making it available for
subsequent use by nearby
communities. To safeguard water
quality and downstream users, we apply
operational controls such as routing
mine water to settlement ponds and
allowing for decantation to reduce total
suspended solids prior to disposal.
In 2025, we completed the rehabilitation
and inauguration of the Proaño Potable
Water Plant, under an agreement with
Fresnillo’s municipal Potable Water,
Sewage and Sanitation System. The
plant treats mine water for domestic
supply to the city, while water rejected
during the process is repurposed for
industrial use. Sewage sludge
generated is managed in line with our
waste management approach See
Waste Management on pages 98-99
This arrangement avoids discharges to
surface water bodies or the municipal
sewer system and in 2025 reduced our
freshwater consumption at the Fresnillo
District by 16.5%. However, freshwater
consumption increased at Herradura,
due to the construction of the new
phase of leaching pads and the tailings
storage facility (TSF 2), and at Noche
Buena, where inventory recovery
activities continue. These two operations
rely primarily on bore fields and
together account for approximately 80%
of our total freshwater use, increasing
our total freshwater intensity.
Further detail on water performance is
provided in the statement of water
inputs and outputs in the ESG KPI
tables on pages 111-117.
Water intensity
(m
3
/ ton processed ore)
Recirculation efficiency
Looking ahead, we will continue refining
our water management standards and
procedures, as well as enhancing our
water accounting to improve tracking,
efficiency, and transparency—
reinforcing our commitment to
sustainable and responsible water use.
100
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
83.5%
84.2%
84.9%
81.7%
79.0%
2025
2021
2024
2023
0.36
0.30
0.29
0.33
0.38
0.13
0.13
0.10
0.05
0.06
Freshwater intensity
Treated wastewater intensity
2025
2021
2024
2023
2023
2022
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Biodiversity
We are committed to
preserving biodiversity through
responsible practices that
mitigate the impact of our
operations on ecosystems and
natural habitats.
Our approach is grounded in regulatory
compliance and international best
practice. In line with Mexico’s
biodiversity regulation (NOM-059-
SEMARNAT-2010), Environmental
Impact Assessments (EIAs) and
environmental management plans
provide the foundation for identifying,
avoiding, mitigating and, where
necessary, compensating for
biodiversity impacts.
Before initiating any project or
implementing significant operational
changes — such as permit or facility
expansions — we conduct
comprehensive assessments to evaluate
potential effects on flora, fauna and
ecosystems. These assessments inform
the design of long-term environmental
management programmes, which
operate throughout the life cycle of
each project and include monitoring of
air, soil, water, vegetation and wildlife, as
well as closure planning.
During project development and
operation, we identify species of special
concern and implement Wildlife Rescue
and Relocation Programmes. These
include the use of exclusion barriers,
such as fencing and wildlife corridors,
species surveys, relocation of flora and
fauna, and post-relocation monitoring.
Key measures include:
• Regular inspections to assess plant
and wildlife conditions and apply
preventive measures to support
survival rates.
• Prohibiting the introduction of non-
native species and limiting vegetation
disturbance to designated
construction areas.
• Training new employees on ecological
protection requirements.
• Prohibiting hunting on company-
owned land.
Rehabilitation is integrated into project
planning from the outset. Following
operations, we restore affected areas
using endemic vegetation and apply soil
conservation measures — such as
erosion control using plant-based
cordons—to support habitat recovery
and improve moisture retention.
All operations maintain forestry
nurseries to support rehabilitation
activities and conserve native species.
Personnel receive training in planting,
irrigation and pest management, and in
some cases the nurseries also support
environmental education and research
initiatives in collaboration with local
authorities.
In addition, our Wildlife Conservation
Management Units (UMAs) contribute
to the long-term conservation of
habitats and wildlife populations. At
Fresnillo and Ciénega, these facilities
also host educational visits for
employees and local communities,
particularly children, to promote
environmental awareness.
In 2025, we renewed our cooperation
agreement with the Commission for
Ecology and Sustainable Development
of Sonora (CEDES) for another four
years, to support the conservation of the
endangered Sonoran pronghorn
(berrendo sonorense), an endemic
species of high ecological value. The
programme includes continuous
population monitoring, protection of
critical habitat, environmental
education initiatives, and the promotion
of sustainable management practices to
support the long-term recovery of the
species in its natural environment.
In 2025 we also joined Mexico’s National
Agreement for Forests, Jungles and
Mangroves, promoted by the Ministry of
Environment and Natural Resources
(SEMARNAT), which aims to halt
deforestation and forest degradation
nationwide. The agreement includes
commitments for 2026 to:
• Conserve and restore forests and
tropical ecosystems.
• Promote sustainable forestry
development and strengthen
community-based forest
management.
• Foster sustainable forest value
chains across the public, private
and social sectors.
• Strengthen the national wildfire
management programme and
prevent agricultural-related wildfires.
Together, these operational actions and
strategic collaborations support both
ecosystem conservation and the long-
term sustainability of the regions in
which we operate.
101
Fresnillo plc Annual Report and Accounts 2025
Case study
Partnering to prevent and respond to wildfires
Wildfires represent one of the most significant threats to ecosystems and neighbouring
communities across our operating regions.
These events — caused by both natural factors and human
activity — can result in biodiversity loss, soil degradation
and air pollution. In the context of climate change and
rising temperatures, the frequency and severity of wildfires
have increased, making prevention and rapid response an
operational and environmental priority.
For this reason, we work closely with authorities on wildfire
prevention and emergency response by maintaining
trained and equipped brigades capable of rapid
deployment.
We also implement measures focused on:
• Environmental education and awareness to promote
safe practices in forested areas.
• Control of high-risk human activities, including
restrictions on unauthorised campfires and agricultural
burning in surrounding communities.
• Forest maintenance, including the removal of combustible
material, creation of firebreaks and clearing of critical areas.
• Monitoring and early-warning systems, supported by
regular patrols and observation towers.
We do not operate in Mexican Natural Protected Areas, UNESCO Natural World Heritage Sites, UNESCO Man and the
Biosphere Reserves, Ramsar Wetlands of International Importance, or areas designated by the International Union for
Conservation of Nature (IUCN).
102
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Mine closure
Our mine closure vision is an
integral part of our project
planning, shaping both design
and cost considerations
throughout the lifecycle of our
operations.
It also incorporates social impact
assessments and stakeholder
engagement to support long-term
community transitions. See Community
Relations on pages 104-105
Our mining units benefit from
conceptual closure plans which are
updated every three years on a mine-
site basis with the support of a third-
party expert, and an internal
multidisciplinary team. Mine closure
provisions are updated annually for cost
adjustments. See Significant accounting
policies on pages 223-234
Noche Buena is the first mine in our
portfolio scheduled for closure. While pit
operations have ceased, inventory
recovery will continue as long as it
remains economically viable. The
progressive closure plan focuses on
restoring land for livestock and wildlife
use, with a 20-year post-closure
commitment to rehabilitation and
maintenance. This includes the removal
of most access roads, power corridors,
and water infrastructure, while ensuring
waste facilities and processing areas are
safely decommissioned. Certain
structures, such as leaching pads, may
require extended care.
In 2025, we carried out a range of
rehabilitation activities, including
reforestation across 144 hectares using
native species. We also continued
advancing slope grading works to
reduce slope angles and improve
ground stability, thereby lowering the
risk of landslides, rockfalls and collapses.
These measures help minimise erosion
caused by rain and wind and create
conditions that allow vegetation to be
re-established, supporting ecosystem
restoration and closure plans.
What’s next:
• Progressively roll out our critical
environmental risk portfolio and
controls framework across our
operations.
• Continue maturing our climate
change mitigation and adaptation
strategies.
• Advance the implementation of
our Tailings Management System.
• Continue developing standards
and procedures for water
management within our
operations.
• Expand partnerships and
collaborative initiatives to support
environmental conservation efforts.
103
Fresnillo plc Annual Report and Accounts 2025
PARTNERING WITH OUR COMMUNITIES
We engage meaningfully with our communities and support the issues that
matter to them
Community relations
We build and maintain
communities’ trust by
engaging effectively and taking
responsibility for our impacts.
This approach is essential to
securing our social licence
to operate.
Our community strategy, spanning all
phases of the mining lifecycle, focuses
on fostering mutual understanding and
collaboration between our operations
and local communities, ensuring shared
development and growth.
Engaging communities effectively in
the lifecycle of mining
Stakeholders in the global mining
industry increasingly expect companies
to manage social and environmental
impacts responsibly while contributing
to community development. Managing
these expectations responsibly,
transparently, and in a timely manner
helps us reduce opposition to projects
and aims to mitigate potential impacts
on local communities.
Projects are carefully designed to avoid
adverse impacts, and when challenges
arise, mitigation measures are
implemented proactively. Key elements
of our approach include:
• Monitoring public opinion and media
to identify challenges through
partnerships with peers, business
associations, governments and NGOs.
• Conducting social studies to align
engagement strategies with
community perceptions.
• Engaging communities through
formal and informal settings and
ongoing social programmes.
• Operating a grievance mechanism to
resolve concerns efficiently and
prevent escalation.
• Aligning mitigation strategies with
global best practices in social and
environmental responsibility.
Our community engagement strategy
evolves with the mining lifecycle, from
building relationships during
exploration to trust-building and risk
assessments in the development phase,
ongoing dialogue during operations,
and impact mitigation in closure. Local
employment, procurement, and social
investment also evolve over time,
transitioning from early-stage support
to capacity-building initiatives that align
with community needs at each phase.
See Socio-economic development on
pages 107-109.
Framework for community engagement in the life cycle of mining
Exploration Project development Operation Closure
Regulatory framework
Know
Stakeholder identification, assessment and mapping
Social studies and assessments: environmental and social impact, image and
reputation, ethnographic and socio-hydrological
Engage
Formal and informal meetings
Strategic social investment
Communication and transparency
Develop
Strategic social investment – aligned to Sustainable Development Goals (SDGs)
Local employment and procurement
Economic impact
Manage
Prevention and management of social risks
Grievance mechanism
Social closure plans
104
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Social risk management
Our evaluation procedures help us to
identify potential risks and potentially
impacted stakeholder groups,
prioritising risks based on their impact
and location. Preventive and mitigation
actions are implemented through
collaborative strategic planning and
overseen by dedicated committees.
Clear responsibilities are assigned within
an accountability framework to ensure
that the issues' underlying risks are
effectively addressed and resolved, while
remaining vigilant to any potential
re-emergence.
Potential risks include negative
perceptions of company performance,
unmet community expectations and
commitments, ineffective
communication, competition for natural
resources, and anti-mining activism, as
well as reduced government spending.
Strategic Programmes
In 2025, we continued strengthening
strategic programmes across all our
business units, aligning them with our
social management and investment
frameworks. These programmes aim to
strengthen community relations by
raising awareness of social realities in
our internal workforce, and by
embedding social considerations into
day-to-day operational practices. Key
programmes include:
• Operational Engagement
Programme: Designed to strengthen
collaboration between Community
Relations and operational teams, this
programme promotes shared
ownership of social risk management,
grievance handling and community
engagement. It also encourages
broader participation by operational
personnel in community social
programmes, reinforcing trust,
coordination and accountability.
• Social Engagement Programme:
This programme develops ‘social
ambassadors’ within our operations
who engage directly with
communities, communicating the
Company’s commitment to modern,
socially responsible mining practices.
It has contributed to increased
awareness among employees of the
social impacts of our activities and the
realities of the communities in which
we operate.
• Contractor Awareness Programme:
Focused on foreign and local
contractors, this programme seeks to
prevent and mitigate social risks in
local communities, with an emphasis
on ethics, human rights and
accountability. Through structured
engagement and awareness-raising,
contractors are encouraged to align
with our social management
approach and to actively participate in
community engagement efforts.
Community Grievances
Our grievance mechanism forms part of
a broader process to identify, assess and
manage social risks across our
operations and is designed to support
fair and efficient resolution processes.
Potential risks are identified and
prioritised based on their potential
impact, with preventive and mitigation
measures defined accordingly. These
actions are monitored by dedicated
follow-up committees for each material
risk, supporting continuous oversight
and coordination.
Dedicated Community Relations teams
at each operating unit and advanced
exploration project document and
manage grievances through a
specialised system, acting as
intermediaries between communities
and relevant operational areas to
facilitate timely investigation and
resolution. Clear responsibilities are
assigned to subject-matter specialists
within an accountability framework, and
strategic leaders at site level are kept
informed to support coordinated
mitigation planning. The process
remains active until the underlying
conditions contributing to the risk have
been addressed.
In 2025, we recorded 19 community
grievances; further details on
performance are provided in the
ESG KPIs tables on pages 1111-117
105
Fresnillo plc Annual Report and Accounts 2025
Case study
Engaging our contractors to help manage social risk
Over recent years, our analysis of community grievances highlighted the importance of
engaging business partners as part of our broader approach to social risk management.
Contractors play a critical role in day-to-day interactions at site level and are therefore an
important link between our operations and surrounding communities.
In response, since 2023 we have progressively enhanced
awareness and engagement initiatives with contractors.
Through targeted briefings and dialogue, contractors are
encouraged to recognise their role within Fresnillo plc’s
value chain and their shared responsibility for managing
social risks and safeguarding community trust.
These initiatives emphasise the importance of responsible
conduct, alignment with the Company’s Code of Conduct,
and timely communication with Community Relations
teams in the event of incidents or concerns. Contractors are
also encouraged to participate in, or contribute to,
community engagement and social programmes,
reinforcing consistent messages and behaviours across
ouroperations.
This approach has supported greater awareness among
contractors of the social context in which we operate and
has contributed to strengthening coordination between
contractors, operational teams and Community Relations.
As part of our ongoing efforts to manage community
grievances and prevent recurrence, contractor
engagement remains an important focus area within our
social risk management framework.
106
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Socio-economic development
In addition to effective
stakeholder engagement, the
equitable distribution of mining
benefits significantly
contributes to the overall
wellbeing of communities. Our
commitment to creating value
in the regions where we
operate is demonstrated by our
actions, which include
providing job opportunities,
local procurement, skills
development, targeted
community investments, and
fulfilling our financial
responsibilities by paying our
fair share of taxes.
Economic impact
Our activities yield a positive economic
impact in the regions where we operate.
In particular, employment, contracting
opportunities and contributions to local
and federal government demonstrate
our commitment to sharing the benefits
of mining. In 2025, our economic value
distributed amounted to US$2,173.8
million, up 1% versus 2024.
Economic value distributed, by
concept
Concept
US$
million Percentage
Payments to suppliers
(contractors)
1,580.2 72.7%
Payments to federal
government
416.6 19.2%
Wages and benefits of
workers
167.6 7.7%
Payments to local
governments
9.4 0.4%
Total 2,173.8 100%
Economic Value Distributed is considered to be
a social performance measure. We consider our
community investment to be an indirect economic
impact of our activities and therefore present
it separately from the Economic Value
Distributed measure.
Mining fund
Introduced in 2014, Mexico's special tax on
mining activities was designed to create a
fund to support the sustainable
development of mining regions,
benefiting communities near mining
operations. However, this fund has since
been reallocated to national public
spending. In response, we continue to
work closely with the communities where
we operate to engage authorities and
advocate for infrastructure projects that
directly benefit mining communities.
In 2025, we contributed US$79 million to
the Fund for Sustainable Development of
Mining States and Municipalities.
Local employment and procurement
Local employment is a key driver of
social acceptability and community
development. From the early days of
exploration, we prioritise hiring locally
and continue this commitment
throughout the development and
operational phases. Employment
opportunities are offered directly or
through our mining contractors, and in
2025, regional labour accounted for
75.9% of our total workforce.
We actively participate in the mining
clusters of Zacatecas, Sonora,
Chihuahua and Durango. These clusters
serve as key platforms for fostering
regional supplier development,
enhancing their integration into the
mining industry’s value chain.
Additionally, they provide an effective
mechanism for maintaining close
relationships with key stakeholders,
including state governments, while
supporting local procurement
capabilities and skills development.
Furthermore, Peñoles’ Centre for
Technical Studies in Laguna del Rey
(CETLAR) provides training for mining,
instrumentation and maintenance
technicians, tailored to our specific
needs. Candidates are selected from
communities near our operations,
fostering local talent and promoting
long-term community engagement.
107
Fresnillo plc Annual Report and Accounts 2025
Economic value distributed, by state
ZAC - Zacatecas JAL - Jalisco
SON - Sonora DUR - Durango
CDMX - Ciudad de México
(Mexico City, federal entity)
COAH - Coahuila
CHIH - Chihuahua GTO - Guanajuato
Social investment
We are committed to
maintaining and strengthening
our social licence to operate
by addressing the most
pressing needs of our
communities and building
trust through accountable
and collaborative partnerships.
Our operations are located in
communities with diverse socio-
economic profiles, including areas with
low to high levels of marginalisation,
and spanning urban, rural and remote
settings. Based on perception surveys,
baseline studies and ongoing
stakeholder engagement, common
challenges across our areas of influence
include access to water and
infrastructure, employment
opportunities, public services and
community wellbeing.
In response, our social investment
focuses on defined development levers,
including education, capacity-building
for self-development, infrastructure and
social wellbeing. These priorities are
aligned with the United Nations
Sustainable Development Goals (SDGs),
particularly Quality Education, Clean
Water, Decent Work and Economic
Growth, and Health and Wellbeing, and
are designed to support community
aspirations while ensuring the
responsible use of resources. During
2025 we also incorporated a new
investment axis focused on biodiversity
and climate-related actions at
community level — contributing to SDG
15 (Life on Land).
The delivery of these priorities is
supported by coordinated efforts across
multiple areas of the Company,
combining social investment with
operational, medical, environmental and
socio-environmental programmes to
maximise social impact at the local level.
Embracing the concept of Shared Value,
these efforts support community
development while also generating
long-term benefits for the Company
through more resilient and inclusive
local economies, helping to reduce
poverty, inequality, and social
fragmentation.
In 2025, we invested US$4.56 million in
local communities, representing a 4.5%
decrease compared with 2024. The
distribution of investment by strategic
lever and by region is shown in
the graphic.
Social Investment by strategic
lever, 2025
%
Quality education 34.2%
Health and wellbeing 24.5%
Life on land 7.3%
Economic development 5.7%
Clean water 2.2%
Other 26.1%
We believe that meaningful and lasting
impact can only be achieved through
collaborative efforts. Through our
‘Alliance for the Common Good’
strategy, we proactively engage all levels
of government in transparent and
participatory dialogue. Our primary
objective is to build long-term capacity
in our neighbouring communities and
to foster lasting relationships with them,
civil society organisations, and
government entities.
By providing accurate and verifiable
information, we advocate decision-
making that prioritises the needs of
communities. This involves promoting
projects that address pressing concerns
and securing funding from various
government sources. These
partnerships are vital in mitigating the
impact of negative external influences
and ensuring operational continuity,
from both a regulatory and public
investment perspective. Our work helps
highlight our contributions to society,
strengthens the State’s presence in
these regions and, most importantly,
improves community wellbeing.
108
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
* Includes the Orisyvo, Rodeo and Guanajuato advanced exploration projects.
Social investment by business unit, 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Social investment portfolio
SDG alignment
Objective
We are committed to
enhancing the health and
wellbeing of our neighbouring
communities through a
preventive approach. Our efforts
focus on promoting initiatives
that improve access to
healthcare, encourage healthy
lifestyles, and strengthen
community wellbeing.
We are committed to advancing
inclusive and quality education,
recognising its critical role in reducing
poverty and inequality. By fostering
education, we aim to expand
development opportunities for children
and young people in our communities.
We aim to reduce our
freshwater footprint through
operational efficiency. We also
strive to secure access to safe
water and infrastructure for our
neighbouring communities,
aiming to avoid reliance on
Company supplied water.
Through community
committees, we support
tripartite water supply projects
in partnership with government
entities and NGOs, delivering
solutions that meet local needs.
We are committed to
fostering entrepreneurship
in our neighbouring
communities through
collaborative strategies that
promote self-sustaining
local economies and
support regional supplier
diversification within our
value chain. By working
with strategic partners, we
focus on developing
entrepreneurial skills,
empowering small and
medium-sized enterprises
(SMEs) for long-term
success and facilitating
economic resilience beyond
mine closure.
We are committed to
contributing to the
protection of terrestrial
ecosystems by promoting
biodiversity conservation,
habitat protection and
environmental awareness in
the communities where we
operate. Our approach
seeks to support the
sustainable management of
ecosystems and species of
conservation interest, while
fostering environmental
stewardship and education.
Key initiatives in 2025
Community Health Weeks in
partnership with the UNAM
Foundation, local and federal
authorities and health agencies
to bring quality health to our
neighbouring communities,
providing:
• 2,559 optometry
appointments and 2,413
items of corrective eyewear.
• 2,657 odontology
appointments and 17,471
dental procedures.
• 603 physical therapy
appointments.
• 947 general medical
appointments.
Leaders in the Horizon, a sports
training programme for young
people and adults to develop
sport leaders in communities
close to Herradura and the
Guanajuato project. In 2025 the
programme was implemented
in Ciénega and San Julián.
Sports and recreational
activities to promote health
and wellbeing among children,
young people and adults.
Examples include the Santos
Fresnillo plc Soccer Academy,
the Baseball Academy, the
Basketball Academy, the BMX
Minera Fresnillo Club, and the
Tennis Club.
Fresnillo Recreational Park is a
high-quality sports facility
designed to encourage physical
activity and provide relaxation
space for families.
PREST-MATH is designed to enhance
critical thinking, problem-solving, and
mathematical reasoning through
interactive learning. Introduced in 45
primary schools in the communities of
San Julián, Herradura, and the Fresnillo
District, it operates in partnership with
INNOVEC and the education ministries
of Sonora, Zacatecas, and Chihuahua. In
2025, preparations are being made to
implement the programme in the
Ciénega unit.
Picando Letras has been redesigned
with an inclusive approach that
promotes equity, cultural diversity,
harmony and reading comprehension.
Delivered in partnership with Ensamble
Alejandría, it is currently active in schools
across communities neighbouring our
mines. In 2025, preparations were made
to implement the programme in the
San Julián unit.
FIRST robotics competition engages
students in Science, Technology,
Engineering and Maths (STEM) subjects
while fostering teamwork and
leadership skills. We currently support
over 150 high school students and
sponsor five teams from communities
near the Orisyvo and Guanajuato
projects, Herradura, Ciénega, and
Fresnillo. In 2025, two new rookie teams
from the communities of Juanicipio and
San Julián joined the Fresnillo team.
Excellence Scholarships covering
academic, living, and other expenses, to
support top-performing applicants from
the FIRST robotics competition to
access higher education. Currently, we
sponsor 35 students at La Salle
University’s Laguna and Noroeste
Campuses, as well as technological and
state universities in regions where we
sponsor robotics teams.
We are helping to ensure that
communities suffering from
water scarcity receive the clean
water they need through a
range of sustainable
infrastructure projects:
• We maintain water
committees that integrate
partnerships with civil society
and government,
successfully rehabilitating
water wells in the 15 de
Septiembre community in
Penmont.
• In the Las Torres project, we
continue to provide water
from the Mata and Peregrina
dams to the communities of
Mineral de Peregrina, Mineral
del Cedro, and Calderones..
• In Ciénega, we continue to
support the community by
supplying water via pipeline
to the community pools
'Pileta Aserradero' and 'Pileta
del Pueblo.'
• We continue working to
consolidate the community's
collective water system in
San Julián in synergy with AC
FORMAC and the
government of the state of
Chihuahua.
• Likewise, we continue to
support the development of
an alternative well in the
community of Saucito del
Poleo.
Productive Projects is our
flagship programme to
support the creation and
consolidation of small
businesses.
Through our partnership
with ProEmpleo, they
receive tailored advisory
services in marketing,
finance, and business
administration, aimed at
enhancing their autonomy,
generating employment,
and expanding their market
reach beyond the regional
level. We have launched
workshops for
entrepreneurs at all our
mines.
In 2025, we expanded our
sustainable productive
projects framework by
introducing a sixth phase
focused on local supplier
integration, aimed at
incorporating community-
based businesses into our
supply chain.
Environmental education
activities, including
Environment Week, aimed
at raising awareness among
children and young people
of biodiversity conservation
and climate change.
At Fresnillo, Ciénega and
Penmont, our Wildlife
Management Units host
educational visits for
employees and local
communities, particularly
children, to promote
environmental awareness.
109
Fresnillo plc Annual Report and Accounts 2025
Respecting human rights
We are committed to
respecting and protecting
human rights, and to ensuring
that our operations and supply
chain are not complicit in
abuses — commitments
anchored in the UN Global
Compact Principles. We do not
tolerate threats, intimidation or
violence for corporate gain,
including against those who
may oppose our activities.
Mining exploration and operations can
reshape ecosystems, livelihoods and
social structures. For this reason, our
work begins with proactive
engagement with neighbouring
communities and rigorous due
diligence on land and procurement.
These processes help us identify social,
environmental, labour and human-
rights risks and impacts, guiding our
stakeholder-engagement strategy,
while aligning with local laws and
international best practices.
Indigenous and Native Peoples
We recognise the distinct identities,
cultural heritage and collective rights of
Indigenous and Native Peoples, and we
are committed to meaningful
engagement in a way that consistently
demonstrates our respect for them.
Free, Prior and Informed Consent (FPIC)
is a fundamental right and a core
element of this commitment. We
evaluate potential impacts and benefits
in advance and share this information
openly, helping communities prepare
for consultation and to participate
meaningfully. During consultation, we
adapt our engagement methods,
provide information in culturally
appropriate ways and work toward fair,
mutually beneficial agreements.
There were no Indigenous consultations
conducted in 2025.
Land acquisitions and resettlements
We recognise that maintaining an
adequate standard of living following
land acquisition or resettlement is a
basic human right, and we are
committed to managing these
processes responsibly. Whenever
possible, we avoid resettlement
altogether and seek alternative
solutions. Where resettlement is
unavoidable, we work with affected
households, communities and
authorities to minimise adverse impacts
and restore — or improve — living
conditions.
No community resettlements occurred
in 2025.
Interactions with security forces
Our security model is primarily
preventive and deterrent. It relies on
technology, private security contractors
and coordination with public security
authorities:
• Private security contractors: Our
private security personnel remain
unarmed to reduce risk, avoid
confrontations with criminal groups
and minimise the likelihood of violent
incidents involving unauthorised
access to our facilities. All contractors
undergo background checks against
national criminal databases.
• Public security forces: Only a limited
number of operations are supported
by armed, trained officers from the
State Mining Police – a specialised
unit established through cooperation
between the National Guard, the
Ministry of Economy and the Mexican
Mining Chamber in regions with
elevated security risk. These personnel
operate under the Federal Protection
Service framework and complete a
Human Rights Training Module
focused on promoting and
respecting human rights in the
course of their duties.
110
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
ESG KPIs
DOING BUSINESS ETHICALLY AND RESPONSIBLY
Compliance
Ethical conduct
Whistleblowing: number of reports Number 8.9% 220 202 213 143 186
Whistleblowing: number of cases Number 14.9% 185 161 163 113 157
Tone from the top: number of reports
related to managers
Number (21.4%) 11 14 19 8 8
Discipline: Number of disciplinary actions Number 40.7% 83 59 67 41 50
Discipline: Number of control reinforcement Number 11.1% 10 9 11 13 9
CARING FOR OUR PEOPLE
Workforce
Total personnel
Employees and contractors Number 1.0% 18,273 18,095 19,776 21,709 20,116 EM-MM-000.B
Workforce composition, by affiliation
Non-unionised Number 3.6% 1,648 1,591 1,580 1,710 1,533
Percentage non-unionised Percentage #DIV/0! 8.8% 8.0% 7.9% 7.6%
Unionised Number (1.1%) 5,529 5,588 5,680 6,360 5,826
Percentage unionised Percentage 30.3% 30.9% 28.7% 29.3% 29.0% EM-MM-310a.1
Contractors Number 1.6% 11,096 10,916 12,516 13,639 12,757
Percentage contractors Percentage 60.7% 60.3% 63.3% 62.8% 63.4% EM-MM-000.B
Workforce composition, by gender
Men Number 0.8% 15,966 15,841 17,427 19,081 17,901
Women Number 2.4% 2,307 2,254 2,349 2,628 2,215
Percentage women Percentage 12.63% 12.46% 11.88% 12.11% 11.01%
Labour turnover
Total turnover Rate 11.20% 13.30% 22.07% 13.56% 10.00%
Voluntary turnover Rate 5.85% 7.79% 9.19% 9.19% 6.44%
Training per person
Average training hours per person Hours (12.7%) 59 67 65 83 71
Average HSECR-training per person Hours (23.2%) 21 28 28 23 27 EM-MM-320a.1
Average non-HSECR training per person Hours (5.4%) 37 40 37 60 44
Average safety training per person Hours (19.8%) 18 23 23 19 20 EM-MM-320a.1
Diversity, equity and inclusion
Workforce composition, by seniority
Senior executives Number (4%) 24 25 21 17 17
Men Number (5%) 21 22 18 14 15
Women Number —% 3 3 3 3 2
Percentage women Percentage 12.50% 12.00% 14.29% 17.65% 11.76%
Managers Number 15% 180 157 145 165 157
Men Percentage 13% 161 142 136 155 150
Women Percentage 27% 19 15 9 10 7
Percentage women Percentage 10.56% 9.55% 6.21% 6.06% 4.46%
Women in leadership positions Number 22% 22 18 12 13 9
Percentage women Percentage 10.78% 9.89% 7.23% 7.14% 5.17%
Indicator Metric
% var
2025-2024 2025 2024 2023 2022 2021 Notes
111
Fresnillo plc Annual Report and Accounts 2025
CARING FOR OUR PEOPLE (CONTINUED)
Diversity, equity and inclusion (continued)
Workforce composition, by affiliation
Non-unionised Number 3.6% 1,648 1,591 1,580 1,710 1,533
Men Percentage 2.3% 1,293 1,264 1,276 1,372 1,256
Women Percentage 8.6% 355 327 304 338 277
Percentage women Percentage 21.5% 20.6% 19.2% 19.8% 18.1%
Unionised Number (1.1%) 5,529 5,588 5,680 6,360 5,826
Men Number (0.9%) 4,827 4,869 4,978 5,566 5,171
Women Number (2.4%) 702 719 702 794 655
Percentage women Percentage 12.7% 12.9% 12.4% 12.5% 11.2%
Contractors Number 1.6% 11,096 10,916 12,516 13,639 12,757
Men Number 1.4% 9,846 9,708 11,173 12,143 11,474
Women Number 3.5% 1,250 1,208 1,343 1,496 1,283
Percentage women Percentage 11.3% 11.1% 10.7% 11.0% 10.1%
Health and Safety
Occupational Health
New cases of occupational illnesses Number (28.3%) 33 46 39 34 19
Occupational Safety
Fatal injuries Number —% 2 2 4 1 1 EM-MM-320a.1
Fatal frequency rate Rate 4.5% 0.046 0.044 0.081 0.020 0.022 EM-MM-320a.1
Total recordable injury frequency rate
(TRIFR)
Rate (17.5%) 6.26 7.59 12.08 10.26 10.42 EM-MM-320a.1
Lost time injury frequency rate (LTIFR) Rate (13.7%) 4.1 4.75 7.4 5.44 5.76 EM-MM-320a.1
PROTECTING THE ENVIRONMENT
Greenhouse Gas (GHG) emissions
GHG emissions, by source
Diesel GHG emissions ton CO2e (10.6%) 371,409 415,283 428,015 500,747 499,449
Gasoline GHG emissions ton CO2e (1.5%) 5,848 5,935 5,995 7,512 6,925
Liquified Natural Gas (LNG) GHG emissions ton CO2e (13.9%) 37,634 43,728 30,657 33,330 34,188
Petroleum Liquified Gas (LPG) GHG
emissions
ton CO2e (15.0%) 3,549 4,177 4,478 4,380 3,545
Electricity from the grid GHG emissions,
market based
ton CO2e 31.5% 112,843 85,831 136,914 203,486 132,865
Electricity from thermal GHG emissions,
market based
ton CO2e (100.0%) 0 43,628 219,265 218,793 217,177
Electricity from wind GHG emissions,
market based
ton CO2e —% 0 0 0 0 0
Total GHG emissions
Direct GHG emissions (Scope 1) ton CO2e (10.8%) 418,439 469,122 469,146 545,970 544,107 EM-MM-110a.1
Indirect GHG emissions (Scope 2), market
based
ton CO2e (12.8%) 112,843 129,459 356,179 422,279 350,042
Direct and indirect GHG emissions (Scope 1
and Scope 2), market based
ton CO2e (11.2%) 531,282 598,581 825,325 968,249 894,149
Indirect GHG emissions (Scope 2),location
based
ton CO2e (6.7%) 507,657 543,872 514,984 478,671 465,596
Direct and indirect GHG emissions (Scope 1
and Scope 2), location based
ton CO2e (8.6%) 926,097 1,012,994 984,130 1,024,640 1,009,703
Other GHG emission metrics
Direct GHG emissions covered under
emissions-limiting regulations
Percentage – 0% 0% 0% 0% 0% EM-MM-110a.1
Indicator Metric
% var
2025-2024 2025 2024 2023 2022 2021 Notes
112
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
PROTECTING THE ENVIRONMENT (CONTINUED)
Greenhouse Gas (GHG) emissions (continued)
GHG emissions from purchased goods and
services
ton CO2e (10.2%) 132,583 147,672 157,073 168,947 176,193 Blasting
agents
(explosives),
steel balls for
milling and
lube oil.
GHG emissions from downstream
transportation and distribution
ton CO2e (14.7%) 17,067 20,009 16,371 16,595 15,178 Intermediate
products
transportation
to processing
facilities.
GHG emissions from processing of sold
products
ton CO2e n/a * 490,894 456,390 460,478 473,604 Smelting and
refining.
GHG emissions from Investments ton CO2e n/a * 70,159 70,645 67,022 64,183 Silverstream
contract.
Total GHG emissions from the value chain
(Scope 3)
ton CO2e n/a * 728,734 700,479 713,042 729,158
Greenhouse Gas emissions intensity (Scope 1
& Scope 2)
ton CO2e/
ton of
mineral
processed
3.3% 0.0189 0.0183 0.0248 0.0246 0.0231
GHG emission intensity - economic ton CO2e /
US$ M
revenue
(32.0%) 116.5 171.2 305.1 398.0 255.7
GHG emission intensity - economic ton CO2e /
US$ M gross
profit
(58.5%) 199.4 480.3 1,640.0 1,806.4 954.3
* Processing of sold products was not available at the time of publication; it will be updated retroactively.
Energy
Energy Consumption by source
Diesel MWh (10.6%) 1,371,229 1,533,177 1,580,181 1,848,756 1,843,999
Gasoline MWh (1.5%) 22,524 22,859 23,092 28,934 26,672
Liquified Natural Gas (LNG) MWh (13.9%) 175,779 204,245 143,192 155,680 159,685
Petroleum Liquified Gas (LPG) MWh (15.0%) 15,610 18,371 19,696 19,264 15,593
Electricity from the grid MWh 31.5% 254,150 193,314 312,590 467,784 314,103
Electricity from thermal MWh (100.0%) 0 43,949 236,889 240,875 239,198
Electricity from wind MWh (10.0%) 889,223 987,674 626,284 391,733 547,399
Total Direct Energy Consumption MWh (10.9%) 1,585,142 1,778,652 1,766,162 2,052,634 2,045,950
Total Indirect Energy Consumption MWh (6.7%) 1,143,373 1,224,936 1,175,763 1,100,392 1,100,699
Total Direct and Indirect Energy
Consumption
MWh (9.2%) 2,728,515 3,003,588 2,941,925 3,153,026 3,146,649
Total Energy Consumption GJ (9.2%) 9,822,653 10,812,917 10,590,930 11,350,894 11,327,936 EM-MM-130a.1
Grid Electricity Consumption Percentage 9.3% 6.4% 10.6% 14.8% 10.0% EM-MM-130a.1
Renewable Energy Consumption Percentage 32.6% 32.9% 21.3% 12.4% 17.4% EM-MM-130a.1
Renewable Electricity Consumption as
percentage of total electricity
consumption
Percentage 77.8% 80.6% 53.3% 35.6% 49.7% EM-MM-130a.1
Energy intensity MWh/ton of
mineral
processed
5.4% 0.097 0.092 0.088 0.080 0.081
Energy intensity - economic GWh / US$
M revenue
(30.2%) 0.60 0.86 1.09 1.30 0.90
Energy intensity - economic GWh / US$
M gross
profit
(57.7%) 1.02 2.41 5.85 5.88 3.36
Figures in bold assured by EY.
Indicator Metric
% var
2025-2024 2025 2024 2023 2022 2021 Notes
113
Fresnillo plc Annual Report and Accounts 2025
PROTECTING THE ENVIRONMENT (CONTINUED)
Water
Statement of water inputs and outputs
Surface water – Rivers and creeks megalitres (100.0%) 0 166 540 617 669
Ground water – Mine Water megalitres (15.8%) 1,918 2,277 2,270 5,154 6,166
Ground water – Bore fields megalitres 11.5% 7,921 7,101 6,205 6,721 7,370
Ground water – Ore entrainment megalitres (30.7%) 296 427 542 353 362
Third party – Wastewater megalitres (17.7%) 3,550 4,313 3,417 2,094 2,150
Total water inputs megalitres (4.2%) 13,686 14,284 12,973 14,938 16,718
Surface water – Discharges megalitres (18.5%) 22 27 36 28 33
Other – Water entrained in concentrates megalitres (4.5%) 42 44 40 35 35
Total water outputs megalitres (10.0%) 63 70 75 63 68
Water (continued)
Water deviations
Surface water – Rivers and creeks megalitres n/a 0 0 0 0 0
Ground water – Aquifer Interception
(dewatering)
megalitres (5.2%) 20,138 21,244 14,501 17,179 13,921
Total water inputs megalitres (5.2%) 20,138 21,244 14,501 17,179 13,921
Surface water – Discharges megalitres (13.8%) 17,808 20,652 14,299 17,051 13,807
Surface water – Supply to third party
(donation)
megalitres 293.6% 2,330 592 202 128 115
Surface water – Loss (evaporation,
infiltration, etc.)
megalitres n/a 0 0 0 0 0
Total water outputs megalitres (5.2%) 20,138 21,244 14,501 17,179 13,921
Statement of operational efficiency
Total volume to task megalitres (10.0%) 65,530 72,832 71,653 77,135 76,010
Total volume of reused water megalitres (10.8%) 54,695 61,314 60,803 63,025 60,031
Efficiency of reuse Percentage 83.5% 84.2% 84.9% 81.7% 79.0%
Total volume of recycled water megalitres (32.6%) 3,119 4,629 3,806 2,401 1,955
Water management
Total water withdrawn megalitres (4.8%) 33,887 35,599 27,549 32,180 30,707 EM-MM-140a.1
Total water deviations megalitres (5.2%) 20,160 21,271 14,537 17,207 13,954
Total water consumed megalitres (4.2%) 13,727 14,328 13,013 14,973 16,753 EM-MM-140a.1
Percentage consumed sourced from
wastewater
Percentage 25.9% 30.1% 26.3% 14.0% 12.8%
Total freshwater withdrawn megalitres (3.0%) 30,274 31,215 24,057 30,023 28,488 EM-MM-140a.1
In regions with high or extremely high
baseline water stress
Percentage 100% 100% 100% 100% 100% EM-MM-140a.1
Total freshwater consumed megalitres 1.7% 10,114 9,944 9,521 12,817 14,534 EM-MM-140a.1
In regions with high or extremely high
baseline water stress
Percentage 100% 100% 100% 100% 100% EM-MM-140a.1
Indicator Metric
% var
2025-2024 2025 2024 2023 2022 2021 Notes
114
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Other water metrics
Total water intensity m3/ton of
mineral
processed
11.5% 0.486 0.436 0.390 0.380 0.432
Freshwater intensity m3/ton of
mineral
processed
18.4% 0.360 0.304 0.287 0.327 0.377
Wastewater intensity m3/ton of
mineral
processed
(4.5%) 0.126 0.132 0.103 0.053 0.056
Water consumption intensity - economic megalitre /
US$ M
revenue
(26.6%) 3.01 4.10 4.81 6.15 4.79
Water consumption intensity - economic megalitre /
US$ M gross
profit
(55.2%) 5.15 11.50 25.86 27.93 17.88
PROTECTING THE ENVIRONMENT (CONTINUED)
Waste
Tailing Storage Facilities
Operational facilities Number —% 6 6 6 6 n/a EM-MM-540a.1
Facilities under construction Number n/a 2 0 0 0 n/a EM-MM-540a.1
Facilities under care and maintenance Number —% 3 3 3 3 n/a EM-MM-540a.1
Facilities in legacy units Number —% 8 8 8 5 n/a EM-MM-540a.1
Total facilities Number 11.8% 19 17 17 14 n/a EM-MM-540a.1
Total facilities
Mine waste – waste rock kton (0.8%) 75,962 76,608 88,241 119,424 131,603 EM-MM-150a.6
Processing waste – tailings kton (14.6%) 7,548 8,841 8,980 8,167 7,986 EM-MM-150a.5
Metallurgical waste – tailings kton 0.9% 6,303 6,246 5,045 5,993 6,225 EM-MM-150a.5
Metallurgical waste – heaps kton (37.6%) 13,715 21,989 21,209 29,345 28,642 EM-MM-150a.5
Non-mineral waste
Hazardous waste ton (6.4%) 3,316 3,544 3,206 1,870 n/a EM-MM-150a.7
Non-hazardous waste ton (13.8%) 9,718 11,274 9,994 11,279 n/a
Municipal solid waste ton (11.0%) 2,664 2,992 2,786 2,337 n/a
Special handling waste ton (14.8%) 7,054 8,282 7,209 8,941 n/a
Total non-mineral waste ton (12.0%) 13,034 14,817 13,201 13,148 n/a EM-MM-150a.4
Sodium cyanide
Sodium cyanide (NaCN) consumption ton (8.1%) 11,692 12,721 11,632 13,503 13,400
PARTNERING WITH OUR COMMUNITIES
Community Relations
Grievance statistics
Outstanding grievances from previous
periods
Number 16.7% 7 6 10 11 14
New grievances received in the period Number (36.8%) 12 19 21 11 22
Total grievances Number (24.0%) 19 25 31 22 36
Closed grievances in the period Number (27.8%) 13 18 25 12 25
Outstanding grievances at the end of the
period
Number (14.3%) 6 7 6 10 11
Local employment and procurement
Local employment Percentage 75.9 % 75.0 % 73.7 % 67.3 % 71.0 %
Indicator Metric
% var
2025-2024 2025 2024 2023 2022 2021 Notes
115
Fresnillo plc Annual Report and Accounts 2025
Economic value distributed
Wages and benefits to workers US$ million 12.0% 167.6 149.7 151.7 146.6 127.5
Payments to suppliers (contractors) US$ million (10.9%) 1,580.2 1,773.5 1,983.2 1,817.3 1,617.4
Payments to local governments US$ million 17.5% 9.4 8.0 12.6 6.2 4.6
Payments to Federal Government US$ million 88.3% 416.6 221.2 200.2 258.6 370.4
Total economic impact US$ million 1.0% 2,173.8 2,152.5 2,347.8 2,228.7 2,120.0
Fund for Sustainable Development of Mining States and Municipalities
Company contribution US$ million 148.4% 79.0 31.8 33.2 48.7 64.1
Social Investment
Education US$ million (18.3%) 1.56 1.91 1.15 0.82 0.89
Health US$ million (13.8%) 1.12 1.30 1.34 1.10 0.63
Water US$ million (58.3%) 0.10 0.24 0.21 0.14 0.36
Decent work and economic growth US$ million (16.1%) 0.26 0.31 0.18 0.17 0.12
Life on land US$ million n/a 0.33 n/a n/a n/a n/a
Other US$ million 16.7% 1.19 1.02 0.93 1.08 1.13
Total social investment US$ million (4.6%) 4.56 4.78 3.82 3.31 3.14
NORMALISATION FACTORS
Production
Ore processed in beneficiation & leaching
plants and deposited in leaching pads
ton (14.2%) 28,134,416 32,777,895 33,247,107 39,322,756 38,675,025
Revenue
Total revenue US$ 000 30.5% 4,561,200 3,496,400 2,705,086 2,432,990 3,496,385
Gross profit US$ 000 113.8% 2,664,300 1,246,273 503,238 536,020 936,925
Indicator Metric
% var
2025-2024 2025 2024 2023 2022 2021 Notes
SITE DATA
Health and Safety
Occupational Safety
Total recordable injury frequency rate
(TRIFR) – 2025
Rate 1.82 0 6.07 12.63 6.71 6.3 4.57
Total recordable injury frequency rate
(TRIFR) – 2024
Rate 1.79 2.53 7.43 14.17 9.84 7.44 6.56
Lost time injury frequency rate
(LTIFR) – 2025
Rate 1.57 0 4.77 7.66 4.31 2.87 2.98
Lost time injury frequency rate
(LTIFR) – 2024
Rate 1.67 2.53 5.57 7.7 5.69 3.98 4.04
Greenhouse Gas (GHG) emissions and Energy
GHG emissions
Direct GHG emissions (Scope 1) ton CO2e 299,385 1,230 39,244 31,279 18,030 11,323 17,949
Indirect GHG emissions (Scope 2),
market based
ton CO2e 6,636 727 47,842 48,630 2,095 805 6,107
Indirect GHG emissions (Scope 2),
location based
ton CO2e 96,830 9,540 134,830 122,529 59,854 34,506 49,570
Energy
Percentage of renewable electricity
consumption
Percentage 93.1% 92.4% 64.5% 60.3% 96.5% 97.7% 87.7%
Metric Herradura
Noche
Buena Fresnillo Saucito Juanicipio Ciénega San Julián
116
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
SUSTAINABILITY AT THE CORE OF OUR PURPOSE CONTINUED
OUR APPROACH TO SUSTAINABLE MINING
Water
Water management
Total water withdrawn megalitres 6,063 2,124 9,399 6,207 2,209 7,404 480
Total water deviations megalitres 0 0 7,175 4,823 1,392 6,769 0
Total water consumed megalitres 6,063 2,124 2,223 1,384 818 635 480
Freshwater management
Total freshwater withdrawn megalitres 6,063 2,124 7,402 5,375 1,426 7,402 480
Total freshwater consumption megalitres 6,063 2,124 227 552 35 632 480
Percent freshwater consumption
out of total consumption
Percentage 100.0% 100.0% 10.2% 39.9% 4.2% 99.7% 100.0%
Metric Herradura
Noche
Buena Fresnillo Saucito Juanicipio Ciénega San Julián
Name Status
Coordinates (lat./
long.)
Constructi
on year
Embarkment
height
Construction
method
Last external
review
Waste
Tailings Storage Facilities inventory
Fresnillo Fresnillo TSF (Proaño) Care and
maintenance
23°09'11.99"N
102°51'45.35"W
1953 38 m Upstream DSI, Jan 2025 EM-
MM-540a.1
Fresnillo San Carlos TSF Operating 23°08'52.26"N
102°53'10"W
2020 32 m Centreline DSI, Jul 2025 EM-
MM-540a.1
Fresnillo Fátima Norte TSF Under
construction
23°07'36"N
102°53'13"W
2025 27 m Downstream ITRP, Jul 2025 EM-
MM-540a.1
Saucito Saucito TSF Operating 23°07’30”N
102°55’37.2W
2011 50 m Centreline DSI, Jul 2025 EM-
MM-540a.1
Ciénega Ciénega TSF1 Care and
maintenance
25°02'23.59"N
106°20'20.31"W
1991 105 m Downstream DSI, May 2025 EM-
MM-540a.1
Ciénega Ciénega TSF2 Care and
maintenance
25°03'06''N
106°20'46.60W
1998 84 m Upstream DSI, May 2025 EM-
MM-540a.1
Ciénega Ciénega TSF3 Operating 25°02'01.65''N
106°19'45.33W
2020 96 m Downstream DSI, May 2025 EM-
MM-540a.1
San Julián San Julián TSF Operating 26°02'34.02"N
106°30'05.26"W
2015 152 m Downstream
**
ITRP, Oct 2025 EM-
MM-540a.1
Juanicipio Juanicipio TSF Operating 23°09'57"N
102°58'19"W
2020 30 m Downstream DSI, Jul 2025 EM-
MM-540a.1
Herradura Herradura TSF Operating 31°07'43.35"N
112°51'34.47"W
2014 47 m Downstream ITRP, Jan 2025 EM-
MM-540a.1
Herradura Herradura TSF 2 Under
construction
31°07'28"N
112°52'27"W
2025 25 m Downstream EM-
MM-540a.1
Note: DSI – Dam Safety Inspection. ITRP – Independent Tailings Review Panel. ** Downstream w/ upstream rise
Metric Herradura
Noche
Buena Fresnillo Saucito Juanicipio Ciénega San Julián Exploration
SITE DATA (CONTINUED)
Certification and awards
Health
Safe and healthy work environments (ELSSA) Certified Certified Certified Certified Certified Certified Certified 0
100% smoke- and emissions-free space Certified Certified 0 Certified Certified 0 0 0
Cardio-protected space 0 0 0 Certified 0 0 0 0
Occupational Safety
ISO 45001 Certified Certified Certified Certified 0 0 0 0
Environmental Management
ISO 14001 Certified Certified Certified Certified 0 0 0 Certified
International Cyanide Management Code
(ICMC) Certified Certified 0 0 0 0 0 0
117
Fresnillo plc Annual Report and Accounts 2025
To the Directors of Fresnillo plc on
Fresnillo plc's Annual Report
Ernst & Young LLP (‘EY’) was engaged by
Fresnillo plc (‘the Company’) to perform a
limited assurance engagement in
accordance with International Standard
on Assurance Engagements (ISAE) 3000
(Revised) and the International Standard
for Assurance Engagements on
Greenhouse Gas Statements (ISAE 3410)
to report on Fresnillo plc’s Key
Performance Indicators: Scope 1
Greenhouse Gas (GHG) Emissions, Scope
2 GHG Emissions, GHG Intensity (Scope 1
and 2) per tonne of mineral processed,
Energy Use (MWh), and Energy Intensity
(MWh) per tonne of mineral processed
(collectively the ‘Subject Matter’)
presented in Appendix A. In preparing
the Subject Matter, the Company applied
the WRI/WBCSD The Greenhouse Gas
Protocol Corporate Accounting and
Reporting Standards (Revised edition)
and the UK Streamlined Energy and
Carbon Reporting (SECR) requirements
as stipulated by the Companies Act 2006
(Strategic Report and Director’s Report)
Regulations 2013 and the Companies
(Director’s Report) and Limited Liability
Partnership (Energy and Carbon Report)
Regulations 2018 (the ‘Criteria’).
Conclusion
Based on the procedures performed and
evidence obtained, nothing has come to
our attention that causes us to believe
that the Subject Matter is not prepared,
in all material respects, in accordance
with the Criteria.
Basis for our conclusion
We conducted our engagement in
accordance with International Standard on
Assurance Engagements 3000 (Revised),
Assurance Engagements Other than
Audits or Reviews of Historical Financial
Information and the International Standard
for Assurance Engagements on
Greenhouse Gas Statements (ISAE 3410), as
promulgated by the International Auditing
and Assurance Standards Board (IAASB)
and the terms of our engagement letter
dated 17 December 2025 as agreed with
Fresnillo plc.
In performing this engagement, we have
applied International Standard on
Quality Management (‘ISQM’) 1 Quality
Management for Firms that Perform
Audits or Reviews of Financial
Statements, or Other Assurance or
Related Services engagements, which
requires that we design, implement and
operate a system of quality management
including policies or procedures
regarding compliance with ethical
requirements, professional standards
and applicable legal and regulatory
requirements.
We have maintained our independence
and other ethical requirements of the
Institute of Chartered Accountants of
England and Wales (‘ICAEW’) Code of
Ethics (which includes the requirements
of the Code of Ethics for Professional
Accountants issued by the International
Ethics Standards Board for Accountants
(‘IESBA’)). We are the independent
auditor of the Company and therefore
we will also comply with the
independence requirements that are
relevant to our audit of the financial
statements in the UK, including the
FRC’s Ethical Standard as applied to
listed public interest entities.
Responsibilities of the Company
The Subject Matter needs to be read and
understood together with the Criteria.
The directors of the Company are solely
responsible for:
• the selection of the Subject Matter to
be assured;
• selecting suitable Criteria against
which the Subject Matter is to be
evaluated and ensuring the Criteria is
relevant and appropriate;
• preparing and presenting the Subject
Matter in accordance with the Criteria;
and
• designing and implementing internal
controls and other processes they
determine is necessary, to enable the
Subject Matter to be free from material
misstatement, whether due to fraud or
error.
Responsibilities of Ernst & Young LLP
It is our responsibility to:
• plan and perform the engagement to
obtain limited assurance in respect of
whether the Subject Matter has not
been prepared in all material respects
in accordance with the Criteria;
• form an independent conclusion on
the basis of the work performed and
evidence obtained; and
• report our conclusion to the directors
of the Company.
Our approach
We conducted our engagement in
accordance with International Standard
on Assurance Engagements 3000
(Revised), Assurance Engagements
Other than Audits or Reviews of
Historical Financial Information and ISAE
3410, Assurance Engagements on
Greenhouse Gas Statements, as
promulgated by the International
Auditing and Assurance Standards Board
(IAASB).
Those standards require that we plan
and perform our engagement to express
a conclusion on whether we are aware of
any material modifications that need to
be made to the Subject Matter in order
for it to be in accordance with the
Criteria, and to issue a report.
The procedures performed in a limited
assurance engagement vary in nature
and timing from, and are less in extent
than for, a reasonable assurance
engagement. Consequently, the level of
assurance obtained in a limited
assurance engagement is substantially
lower than the assurance that would
have been obtained had a reasonable
assurance engagement been performed.
Our procedures were designed to obtain
a limited level of assurance on which to
base our conclusion and do not provide
all the evidence that would be required
to provide a reasonable level of
assurance.
Although we considered the
effectiveness of management’s internal
controls when determining the nature
and extent of our procedures, our
assurance engagement was not
designed to provide assurance on
internal controls. Our procedures did not
include testing controls or performing
procedures relating to checking
aggregation or calculation of data within
IT systems.
A limited assurance engagement
consists of making enquiries, primarily of
persons responsible for preparing the
Subject Matter and related information
and applying analytical and other
appropriate procedures.
Because a limited assurance
engagement can cover a range of
assurance, the detail of the procedures
we have performed is included below, so
that our conclusion can be understood in
the context of the nature, timing and
extent of procedures we performed:
• Made inquiries with Fresnillo plc
representatives responsible for
greenhouse gas emissions and energy
management, collection of the
underlying data and reporting on the
Subject Matter;
• Obtained an understanding of the
process to prepare the Subject Matter
data by conducting interviews with
responsible personnel at a sample of
sites, and Fresnillo management
representatives involved in the
reporting process;
• Performed analytical procedures to
support reasonableness of the Subject
Matter data;
118
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
INDEPENDENT LIMITED ASSURANCE REPORT
• Selected a sample data point to trace it
through the GHG emissions reporting
process, and assessed whether GHG
emissions, energy use and production
indicators data have been collected,
prepared, collated and reported
appropriately; and
• Read the Report to assess whether the
Subject Matter has been reported
appropriately.
We also performed such other
procedures as we considered necessary
in the circumstances.
Inherent limitations
Non-financial information is subject to
more inherent limitations than financial
information, given the characteristics of
the underlying subject matter. Because
there is not yet a large body of
established practice upon which to base
measurement and evaluation
techniques, the methods used for
measuring or evaluating non-financial
information, including the precision of
different techniques, can differ, yet be
equally acceptable. This may affect the
comparability between entities, and
over time.
Our conclusion is based on historical
information and the projection of any
information or conclusions in the
attached report to any future periods
would be inappropriate.
The GHG quantification process is
subject to scientific uncertainty, which
arises because of incomplete scientific
knowledge about the measurement of
GHGs. Additionally, GHG procedures are
subject to estimation (or measurement)
uncertainty resulting from the
measurement and calculation processes
used to quantify emissions within the
bounds of existing scientific knowledge.
Use of our report
This report is produced in accordance
with the terms of our engagement letter
dated 17 December 2025, solely for the
purpose of reporting to the directors of
Fresnillo plc in connection with the
Subject Matter for the period ended 31
December 2025.
Those terms permit disclosure on
Fresnillo plc’s website, solely for the
purpose of Fresnillo plc showing that
it has obtained an independent
assurance report in connection with
the Subject Matter.
To the fullest extent permitted by law, we
do not accept or assume responsibility to
anyone other than the Company and the
Company's directors as a body, for our
work, for this report, or for the
conclusions we have formed. This
engagement is separate to, and distinct
from, our appointment as the auditor to
the Company.
Ernst & Young LLP
2 March 2026
London, United Kingdom
119
Fresnillo plc Annual Report and Accounts 2025
KPI Name 2025 Value Assured
Scope 1 Emissions 418,439 tCO
2
e
Scope 2 Emissions (Market Based) 112,843 tCO
2
e
Scope 2 Emissions (Location Based) 507,657 tCO
2
e
Emissions Intensity (Scope 1 and Scope 2 Market Based) per tonne of
mineral processed
0.0189 tCO
2
e per tonne of mineral processed
Energy Use (MWh) 2,728,515 MWh
Energy Intensity per tonne of mineral processed 0.097 MWh per tonne of mineral processed
Our approach to risk
Effective risk management is an essential
part of our culture and strategy. By
understanding, prioritising and
managing risk, Fresnillo plc safeguards
our people, our assets, our values and
reputation, and the environment, and
identifies opportunities to best serve the
long-term interests of all our
stakeholders. We are focused on
conducting our business responsibly,
safely and legally, while making risk-
informed decisions when responding to
the opportunities or threats that are
presented to us. Risk management is a
key accountability and performance
criterion for our leaders.
Our risk management process helps us
to manage risks that have the potential
to impact our business objectives, and
timely risk monitoring is at the core of
our management practices. All
employees have responsibility for
identifying and managing risks. Our risk
management framework reflects the
importance of risk awareness across
Fresnillo plc. It enables us to identify,
assess, prioritise and manage risks to
deliver the value creation objectives
defined in our business model.
Risk appetite
Defining risk appetite is key to
embedding our risk management
system into our organisational culture.
The Company’s risk appetite statement
helps to align our strategy with the
objectives of each business unit,
clarifying which risk levels are, or are not,
acceptable. It promotes consistent
decision-making on risk, aligned with the
strategic focus and risk/reward balance
approved by the Board.
We define risk appetite as ‘the nature
and extent of risk Fresnillo plc is willing
to accept in relation to the pursuit of its
objectives’. We look at risk appetite in the
context of the severity of the
consequences should the risk
materialise, any relevant internal or
external factors influencing the risk, and
the status of management actions to
mitigate or control the risk. A scale is
used to help determine the limit of
appetite for each risk, recognising that
risk appetite will change over time.
The risk appetite statement for each
principal risk articulates what is an
acceptable level of exposure, relative
to the amount of reward we are
seeking, and helps to determine how
much control or mitigating actions
may be required.
Risks that are approaching the limit of
the Company's risk appetite may require
management actions to be accelerated
or enhanced to ensure the risks remain
within appetite levels. If a risk exceeds
appetite, it will threaten the achievement
of objectives and may require a change
to strategy.
Risk management framework
Our strategy, values and risk appetite
inform and shape our risk management
framework. We embed risk
management at every level of the
organisation to effectively manage
threats and opportunities to our business
and host communities, and our
environmental impact.
Fresnillo plc has an enterprise-wide risk
management information system which
includes a set of integrated tools and
applications to capture, manage and
communicate material risks to the
business. This system incorporates three
lines of defence: 1
st
line - Unit leaders
including mine, exploration and project
personnel, as well as leaders of corporate
and support areas; 2
nd
line - Corporate
level oversight functions including the
risk management team, the Health,
Safety, Security, Environment and
Community Relations (HSECR) team, the
project oversight function and the
Executive Committee; and 3rd line -
Group Internal Audit.
120
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES
Governance structure
This structure shown below supports our risk management framework and enables the effective management of material risks.
Top down
Bottom up
Board and Committees
Third line of defence
Board
Overall responsibility for
assessing the nature and
extent of principal and
emerging risks and the risk
appetite of the Company and
for facilitating the effective,
entrepreneurial and prudent
management of the business.
Audit Committee/HSECR
Committee
Responsible for reviewing the
effectiveness of the
Company’s risk management
systems and processes.
Reviews assurance regarding
mitigating controls.
Internal Audit
Provides independent and
objective assurance that risk
management, governance and
internal control processes are
working effectively, thus
ensuring that the Company
can achieve its objectives.
Executive management
1
Second line of defence
Executive Committee
Responsible for the review and assessment of the
principal risks and for recommending risk appetite
and tolerance to the Board. Develops Company
strategy in line with Board appetite.
Risk management
Responsible for monitoring principal and key risks
and ensuring the effectiveness of regional and
function risk management.
Operations &
projects
Exploration &
ore reserves
Finance
Legal, ethics &
compliance
Security
Human
resources and
union
Community
relations
Safety & health
and ESG
TI-TO
Cyber security
Insurance
policies and
coverage
Operational management
2
First line of defence
Management steer regional departments, providing oversight of risk management in their areas of responsibility.
Responsible for identifying, assessing and mitigating both key and operational risks within their functions/
business areas. Risks should be discussed as part of country management meetings.
Strategic risks
People, operational, safety
and communities’ risks
Financial risks
• Resources to reserves
• Potential actions by the
government*
• Exploration*
• Capital Project*
• Technology, Cyber & AI*
• Low-carbon transition
• Climate change and natural
disaster*
• Security*
• People and culture*
• Union & labour relations*
• Operational, maintenance
and planning
• Health, safety and
environment*
• Communities and social*
• Ethics and compliance
• Tailings dams*
• Global macroeconomic
developments*
• Impact of metals prices and
exchange rates*
• Liquidity
• Market
• Credit
• Tax
• Disclosure
* Principal risk.
1 Main areas of executive management
2 All the Company's risks are considered
121
Fresnillo plc Annual Report and Accounts 2025
Risk management process
Set strategy,
objectives and
risk appetite
1. Risk analysis
2. Controls and
risk responses
3. Audit &
assurance
4. Communication
& monitoring
5. Improvement &
embedding 6. Resilience
Identify,
prioritise and
evaluate risks
to our strategy
and objectives
Implement
controls and
actions to manage
risks within risk
appetite
Check and
verify that
controls and
actions are
effective in
managing the
risks
Communicate principal
and emerging risks and
escalate as appropriate
Build risk
capability and
culture so active
management is
embedded in how
we run our
business
Develop the
company's culture
and capacity to
adapt, resist,
absorb and
recover from the
impact of a risk
First line
• Assess
existing risks
and assess
new risks in
the business
units
• Ensure
continuous
improvement of
processes and
controls.
• Implement
corrective and
preventive
actions based on
the results of
leadership team
monitoring
• Control self-
certifications
• Prepare risk dashboards
and risk matrices
presenting the status of
individual risks in the
business units
• Comply with the
highest
international
industry
standards in
areas such as
TSFs
Second line
• Review Key
Risk
Indicators
(KRIs) and
mitigating
actions
• Implement
controls and
mitigations in
response to risk
scenarios
• Monitor
compliance
with
international
risk standards
• Carry out ongoing
reviews of risks and
threats.
• Prepare quarterly, half-
yearly and annual
reports and briefings to
the Audit and HSECR
Committee
• Promote the risk
culture across
the Company
through
workshops and
training
• Create risk
scenarios to
anticipate
impacts and
prepare risk
responses.
Third line
• Execute the
annual
internal audit
programme
• Provide advice and
recommendations
regarding the most
exposed or new risks
• Implement
appropriate
policies and
guidelines to
build resilience
to risks
Culture & leadership
1. Risk analysis
A complete view of our risk universe
starts with the analysis of our business,
the external environment in which we
operate, the regulatory landscape and
our internal operations. This includes the
impacts on and of our strategy, initiatives,
governance, and processes.
The Board, the Audit Committee, the
HSECR Committee, the Executive
Committee and Internal Audit
periodically use working sessions and
interviews to review the evolution of
principal and emerging risks, as well as
the appetite for each risk. At these
working sessions, the views and
suggestions of Board members are
considered, and adjustments are made
according to the factors influencing
each risk.
We primarily use the following
methods in risk assessment:
• Scenario planning.
• Horizon scanning.
• Real time risk management
monitoring.
• Social media monitoring.
• Collaboration with other organisations
such as third-party suppliers.
Aspects we review when assessing our
principal and key risks:
• Risk ownership: each risk has an owner.
In addition, each key risk is sponsored
by a member of the Executive
Committee who drives the monitoring
and progress of mitigation measures.
• Probability and impact: five-by-five
scoring matrix applied globally.
• Gross risk: before preventive controls.
• Net risk: after preventive controls have
been applied.
• Risk appetite: defined at the principal
and emerging risk level and approved
by the Board.
• Risk tolerance: in data format, shows
the amount of deviation from risk
appetite.
• Key risk indicators: quantitative and
qualitative measures that provide early
signals of a change in the degree of
risk.
• Actions: key controls in place and
activities required to mitigate them if
necessary.
• Impact on the Company's strategic
pillars and interdependencies between
key risks.
• Any relevant risks where the principal
risk is affected or may affect the
emerging risk.
122
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
All principal risks are detailed in a
standardised statement. This ensures
effective review, understanding and
monitoring across the Company,
together with consistency, both in
terminology and in the underlying
assessment itself. Following the
establishment of climate change as a
separate principal risk in 2020/21, reviews
have been carried out at various levels,
including the Executive Committee and
the Board. These include the
identification and documentation of
climate-related risks and the review and
consideration of appropriate risk
responses. This consolidated view is an
input to our review of the Company's
risk profile.
As part of the top-down process, an
updated assessment was completed
for each principal risk by the relevant
risk owner, working with the Executive
Committee risk sponsor and the
risk function.
The framework is based on ISO 31000
(International standard that provides
guidelines and principles for managing
risk), ISO 22301 (International standard for
Business Continuity Management
Systems) and COSO ERM.
1
1 The Committee of Sponsoring Organizations
(COSO) of the Treadway Commission Enterprise
Risk Management (ERM) framework
Emerging risk considerations
Emerging risks are very uncertain
by nature. Given the diversity of our
operations and projects as well as
our geographic footprint, we are
exposed to many highly uncertain,
complex, and often interrelated risks.
The Company continues to focus on
horizon scanning activity to inform and
support the identification of the most
pertinent internal and external trends
and developments.
We monitor key indicators of emerging
risks and their potential impact on our
business, markets and host
communities. Many emerging risk topics
are reviewed on a recurring basis,
alongside ongoing activity addressing
their impacts. However, it is
acknowledged that the nature of the
emerging risks will evolve and could
drive future trends which the Company
will need to prepare for in the long term.
2. Controls and risk responses
We use five key processes to better
address our risks: (i) a monthly procedure
for evaluating and mitigating principal
risks; (ii) a process to identify and analyse
the impact of geopolitical instability on
all the Company’s risks, including
projects, with a main focus on safety and
identification of new risks; (iii) dashboards
for each business unit to monitor
mitigation actions and risk level; (iv)
impact and probability scenarios
conducted for risks related to security,
supply chain of critical inputs for
operations, cost increases and projects,
and (v) collaboration with government,
the mining sector and communities to
ensure that we follow best practice.
We have an internal control framework
in place to mitigate the impact of
principal and emerging risks. Our
executives (including operations,
exploration and project managers, the
controllership group, and the HSECR
team), regularly engage in strengthening
the effectiveness of our current controls.
In January 2024, the UK Corporate
Governance Code was updated,
introducing a new requirement
(applicable from 2026) for the Board to
make an annual declaration as to the
effectiveness of the Group's material
internal controls. During 2025, with the
support of a specialist team and external
advice, the comprehensive internal
control framework was enhanced to
document material financial and non-
financial controls, responsibilities and
accountabilities and align them with the
Company's processes. The material
controls related to financial, operational,
and information technology processes
have already been documented and
evaluated, and improvements are
planned for 2026 to make the controls
more efficient. This has improved risk
management, reduced potential
negative impacts, and ensured
compliance with regulatory
requirements for internal controls.
The challenges facing the Risk
Department and Executive Committee
include changes to mining and water
laws in Mexico; security issues near our
business units; extreme volatility of gold
and silver prices, rising operating costs;
potential disruptions in the supply chain
for critical inputs; geopolitical instability;
and matters relating to our social licence
and access to land. Due to the
uncertainty surrounding these risks and
those arising from new projects such as
the acquisition of mining companies,
during 2025, in addition to our
established risk management activities,
all strategic decisions were analysed
using risk scenarios that modelled their
potential impacts.
3. Audit and assurance
In pursuing the Company's business
objectives, the Board cannot give
absolute assurance that the
implementation of a risk management
process will overcome, eliminate, or
mitigate all material risks. However, by
developing and implementing an annual
and ongoing risk management process
to identify, report and manage significant
risks, the Board intends to provide
reasonable assurance against material
misstatement or loss.
We monitor how well we manage
material risks to our objectives by
checking and verifying the
implementation of our response
plans (actions and controls) and our
actual performance against objectives.
We enhance the 'check and verify'
step by applying the three lines of
defence approach.
123
Fresnillo plc Annual Report and Accounts 2025
The internal audit team consists of highly experienced professionals from various specialties, who frequently review operational,
financial, exploration and project processes in the field, using internationally recognised standards and methodologies.
First line
• Annual self-assessments of controls and bi-annual compliance assurance statements.
Second line
• As part of our ERM approach, the risk team conducts specialised reviews to assess risks and controls to ensure compliance,
focused on validating and testing key controls to augment the first line attestations.
• The risk team annually reviews key controls for our principal risks, significant local risks and response plans to identify and
respond to any significant changes in the control environment. While many controls are tailored to business unit requirements,
there are consistent themes across our control environment. These include clear oversight and reporting by business unit
management teams, governance processes for operations, maintenance and tenders, attention to health and safety, the
wellbeing of our people and prioritising the maintenance of integrity and a strong ethical culture.
Third line
and
external
activities
• We are supported by external partners in certain specialised areas. Furthermore, we are subject to significant assurance
activities and third line audits conducted through our Internal Audit team, external third parties, certification standards and
customer requirements in our various business lines.
• The work plan of the internal audit area considers all the Company's operational and financial processes, continuously following
up on the recommendations made in each audit, with a particular focus on the most exposed risks and those that have an
impact on regulatory non-compliance or business disruption.
• External reviews include those that support the range of ISO certifications we manage across the business as well as
independent performance and regulatory reports on Fresnillo plc operations. Examples include:
– business continuity risk inspections of all business units by Zurick & Marsh in 2025.
– ISO 45001 and ISO 14001 audits of Fresnillo and Saucito mines by BSI Group auditors.
– certification that the Herradura mine leaching operations comply with the Cyanide Code issued by the International
Cyanide Code Institute.
Governance
• The HSECR Committee meets before every Board meeting to review the effectiveness of our risk management and internal
control systems, with particular attention paid to safety, climate, tailings dams and environmental risks.
• The Audit Committee continues to focus closely on key financial processes, material risks and internal controls. Further close
attention has been given to the key areas of judgement and estimation in the financial statements. The Committee receives
regular reports from Internal Audit, Internal Control and Risk Management, enabling it to determine whether internal controls
and processes are functioning appropriately.
4. Communication and monitoring
Risk can be of any nature and manifest
itself and escalate from any part of the
business as a threat or even an
opportunity. When risks are material to
the Company, they are escalated to the
Executive Committee and, where
appropriate, to the Board or its
Committees. This requires a strong risk
culture, which we continue to develop
and encourage.
Although we deploy controls to reduce
the likelihood and consequences of risks,
some risks inherent in our business
remain. These include natural
catastrophes, for which there is limited
capacity in international insurance
markets. We monitor these threats closely
and develop business resilience plans.
The steps of the risk assessment process
previously explained allow for analyses,
reports and briefings that communicate
the results and main findings; this
information is mainly presented and
discussed at Audit Committee and
Board meetings.
5 & 6. Improvement, embedding
and resilience
To ensure that we can prioritise our
efforts and resources, we regularly assess
the potential consequences and
likelihood of impact of our principal risks,
creating impact scenarios to implement
prevention-mitigation measures and
response plans. These assessments, and
the effectiveness of our associated
controls, reflect management's current
expectations, forecasts and assumptions.
They involve subjective judgements and
depend on changes in our internal and
external environment.
The Board confirms that:
• a robust assessment of principal
and emerging risks has been
carried out.
• with support from the Audit and
the HSECR Committees, it has
monitored the risk management
framework throughout the year.
• it has reviewed the planning,
progress and preliminary results of
the enhancement of the
comprehensive internal control
framework.
Principal risks and uncertainties
The principal risks and uncertainties
outlined in this section reflect the risks
that could materially affect (negatively or
positively) our ability to meet our
strategic objectives. They could
materialise from a combination of
external or internal factors and manifest
or escalate from any part of the business
as an opportunity or threat.
We define principal risk as 'risk, or a
combination of risks, which may seriously
affect the business model, performance,
future or reputation of the Company'.
The Company's risk profile has been
developed based on the most significant
risks in our business profiles. All of our
principal risks were reviewed at least twice
during the year, including through Key Risk
Indicators (KRIs), which were developed to
help embed the risk appetite framework in
the business and enhance the monitoring
and mitigation of risks.
Due to the effects of geopolitical
instability, the volatility of prices for
precious metals such as gold and silver,
as well as insecurity and violence near
business units, threats of cyberattacks,
and changes in mining industry laws and
regulations in Mexico, it has been
necessary to reassess the principal risks
and reorder their importance, probability,
and impact, as well as reassess the
related mitigation actions.
Our principal risks are summarised in the
following table and shown in order of
maximum reasonable consequence,
probability and change since 2024.
124
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
Current assessment of principal risks, as of February 2026
2025 Risk Risk appetite* Risk level
Change in risk level
vs 2024
1
Potential actions by governments (political, legal, regulatory, tax & concessions) Low Very high Stable
V
2
Security Low Very high With attention
V
3
Impact of metals prices and exchange rates High Very high Increasing
V
4
Cybersecurity Low High Stable
5
Safety (incidents due to unsafe acts or conditions could lead to injuries or
fatalities)
Low High Increasing
V
6
Access to land (full access to plots of land) Low High With attention
7
Projects (performance risk) Medium High Increasing
8
Global macroeconomic developments (energy and supply chain disruptions,
inflation and cost)
Medium High With attention
9
Union relations (labour relations) Low High Stable
V
10
Human resources (attract and retain requisite skilled people/talent crisis) Medium High Stable
11
Licence to operate (community relations) Medium Medium Stable
12
Exploration (new ore resources) High Medium Stable
13
Climate change (comply with international standards and regulations) Medium Medium Stable
V
14
Tailings dams (overflow or collapse of tailings deposits) Low Medium Stable
V
15
Environmental Incidents (cyanide spills and chemical contamination) Low Medium Stable
V
* Appetite determined by the Board in January 2026. With attention. Potential for increase in the short term. (V) Risks that were considered for the viability assessment
Very high
Low
Low
Heat map
2025
2024
Increasing likelihood
Almost
certain
LikelyPossibleUnlikely
Rate
Very low Low Moderate High Very High
Increasing financial and non-financial consequences-impact
125
Fresnillo plc Annual Report and Accounts 2025
15
14
2
1
3
7
4
6
5
4
10
9
9
8
10
12
11
13
Emerging risks
As mining is a long-term business, our
strategy aims to create sustained value
over the life of our mining operations and
beyond. This involves careful allocation of
key resource inputs – the natural, human,
intellectual, financial, manufactured, and
social and relationship capitals – which
are essential to achieving this aim.
In the longer term, as the world
transitions to a low-carbon future and
consumer demand for sustainable goods
flows through the value chain, the supply
and demand dynamics of commodities
are expected to shift. This will lead to
increasing demand for resources and
solutions with low CO
2
emissions, and
lower social and environmental
footprints, in addition to a growing
demand for transparent, sustainable and
circular value chains.
Fresnillo plc defines an emerging risk as
“a new manifestation of risk that cannot
yet be fully assessed, a risk that is known
to some degree but is not likely to
materialise or have an impact for several
years, or a risk that the company is not
fully aware of but that could, due to
emerging macro trends in the mid or
long-term future, have significant
implications for the achievement of our
strategic plan”. Furthermore, we
consider emerging risks in the context of
longer-term impact and shorter-term
risk velocity. We have therefore defined
emerging risks as those risks captured on
a risk register that: (i) are likely to be of
significant scale beyond a five-year
timeframe; or (ii) have the velocity to
significantly increase in severity within
the five-year period.
Emerging risks constantly change, can
materialise quickly, and can significantly
affect the Company and its operations.
Procedures must be in place for
continuous monitoring of these risks to
allow the company to adapt or develop
appropriate actions.
To strengthen our emerging risks
management framework, during 2025
we carried out activities to: (i) identify
new emerging risks in light of
geopolitical instability, technological
disruption, the implications of artificial
intelligence for business strategy and
climate change; (ii) re-assess the
emerging risks identified in 2024; (iii)
deploy effective monitoring mechanisms
recognising the potential for emerging
risks to evolve or materialise quickly; (iv)
carry out horizon scanning to consider
disruptive scenarios, and (v) implement
mitigating control actions and enhance
our risk awareness culture.
This process involved workshops, surveys
and meetings with the Board, Executive
Committee, business unit leaders,
support and corporate areas, as well as
suppliers, contractors and customers. We
also consulted third-party information
from global risk reports, academic
publications, risk consulting experts and
industry benchmarks.
Emerging risks can impact our principal
risks directly or can become elevated to a
standalone principal risk. The way we
manage emerging risks is dynamic – it
reflects the outcomes of our monitoring
and the evolution of the risk as well as
findings from our scenario analyses.
Managing emerging risks involves
staying on top of technological advances
in the mining industry and beyond;
seeking value-capturing innovations that
focus on efficiencies; drawing on new
sources of information and working
closely with universities specialising in
mining and geology; as well as training
and upskilling our people.
126
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
Emerging Risk Description Timescale
Geopolitical instability The potential political, economic, military and social risks that can emerge from a nation’s
involvement in international affairs. These risks can have far-reaching implications for both the
country itself and the global community at large. There are many factors that can contribute
to geopolitical risks, such as a nation’s economic stability, its political relations with other
countries, and its military strength.
< 1
Year
Transition to a low-
carbon future
The transition to a low-carbon future is a "transition risk" according to the Task Force on
Climate-related Financial Disclosures (TCFD) and presents challenges and opportunities
for our portfolio in the short and long term. It is considered within the climate change
principal risk mitigation strategy. However, we consider this risk to be an emerging risk
due to the speed of potential new climate change regulations and the obstacles that
government may place in the way of investment support for clean energy.
> 5
Years
Technological
disruption and the
rapid proliferation of
Artificial Intelligence
Generative Artificial Intelligence (AI) and advancing technologies have the potential to
unlock transformative opportunities for businesses through enhancing efficiency, and
data-driven insights to support decision making, driving pace and breadth of innovation.
It is also in its infancy, which carries significant unknown risks. Our focus is on robust
monitoring and internal upskilling to understand this evolution, supported by strong
governance processes to support its use.
< 3
Years
Increasing societal and
investor expectations
There is increasing expectation and focus on social equality, fairness and sustainability.
Financial institutions are also placing greater emphasis on Environmental, Social and
Governance (ESG) considerations when making investment decisions.
< 3
Years
Replacement of
depletion of ore
reserves
The inability to replace depleted ore reserves in key business units through exploration,
projects or acquisitions.
> 5
Years
Unexpected mine-
closure liabilities that
have the potential to
increase costs
There is a possibility that government authorities could introduce more costly and
rigorously applied environmental provisions and obligations in the mine closure process.
> 5
Years
Emerging risks are currently managed through the Group's risk management framework, which regularly enhances controls
and mitigating actions. Emerging risk topics were discussed in executive level committees throughout 2025, with key actions
assigned to closely monitor their manifestation and potential opportunities and, in some cases, also form part of the business
planning process.
127
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
1
POTENTIAL ACTIONS BY GOVERNMENTS
(POLITICAL, LEGAL, REGULATORY, TAX AND CONCESSIONS)
Risk description
Regulatory initiatives or policies issued by
the government, at all three levels –
federal, state and municipal – may have
an adverse impact on the operation of
the Company. This could include new
laws, regulations, rules or guidelines with
a negative impact on the mining
industry in Mexico. The prohibition on
granting new mining concessions
continues under the new federal
government administration.
There have also been complications
around obtaining permits and licences
for construction and environmental
matters from the Ministry of Economy
and the Ministry of Environment.
Recent changes to Mexico's water law
could complicate the process of
maintaining and obtaining water
concessions.
We paid special attention to the
following aspects:
• Permits for building/expanding tailings
dams and projects.
• Inability to obtain necessary water
concessions due to government
control or private interests.
• Prohibition of new concessions for
open-pit mining.
• Discrepancies in the criteria used in
audits carried out by the tax authority.
• Possible new environmental taxes or
royalties on the mining industry.
• Possible profit sharing with indigenous
communities.
• Potential trade disputes and new
labour regulations under the United
States-Mexico-Canada Agreement.
Factors contributing to risk
• A considerable level of uncertainty is
likely to dominate the Mexican legal
landscape for the foreseeable future,
with potential impacts on the timing,
consistency and nature of legal
decisions, including:
– Delays or failures in obtaining
permits and licences from
government offices such as
CONAGUA and SEMARNAT.
– Reorganisation of the Mexican
Supreme Court and election of
Justices and Federal Judges by
popular vote.
– New judicial administration body
and new judicial discipline tribunal.
– Legal reforms to the following laws:
'Mining Law', 'Law on National
Waters', 'Law on Ecological Balance
and Environmental Protection' and
'General Law for the prevention and
integrated management of waste in
the field of mining and water
concessions', impacting on the
granting of new concessions and
their duration, exploration activities
and consultation with communities
and Indigenous Peoples as well as
payments of 5% of profits to the
communities.
– Tax audits and information requests
have increased.
Controls, mitigating actions and outlook
1. As a result of the new mining law, risk
scenarios were developed for each
change and impact, considering the
legal and operational criteria to
implement the necessary mitigation
and prevention measures. These
scenarios are constantly updated.
2. Commitment to constant
communication with all levels of
government.
3. Increased monitoring of the processes
being implemented at the Ministry of
Energy, Environment, Labour and
Economy and daily monitoring, follow-
up and attention to issues before the
Congress of the Union that may affect
the mining industry.
4. Collaboration with other members of
the mining community through the
Mexican Mining Chamber to lobby
against any new harmful taxes,
royalties or regulations. Support for
industry lobbying efforts to improve
the general public's understanding of
the mining industry.
For more details see Protecting our
Environment on pages 83-103
Link to strategy
Risk appetite
Low
Risk owner
• Government Relations Department
• Legal Department
• Taxes and Royalties Department
• Mining and Water Concessions
Department
Risk oversight
• The Board
• Audit Committee
Behaviour
Stable
Risk rating (relative position)
2025: Very high (1)
2024: Very high (1)
128
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
2
SECURITY
Risk description
In all our business units, we face the risk
of theft, which can occur within the
mines or during transportation. Our
employees, contractors and suppliers are
also at risk of violence due to insecurity in
some of the regions in which we operate.
According to information from the
Ministry of Security and Citizen
Protection and the National Guard, the
presence of organised crime and high-
impact crimes (homicide, kidnapping
and extortion) increased in 2025,
especially in the states where our
business units are located such as
Zacatecas, Sonora and Guanajuato.
The main risks we face are:
• High-impact thefts in ore
transportation, most notably of gold
doré and silver concentrates.
• Theft of assets such as vehicles,
equipment, spare parts and fuel.
• Homicide.
• Kidnappings.
• Extortion.
• Vandalism.
• Consumption and sale of toxic
substances in our mining units.
Factors contributing to risk
The remote nature of many of our
locations and projects.
Increase in mineral theft during
transport on roads near business units.
Presence of organised crime in areas
near business units that could lead to
theft and extortion.
Influence of territorial disputes between
drug cartels, organised crime and
anarchy in some regions of Mexico where
we have operations, projects and
exploration camps, especially close to our
operations in Fresnillo, Zacatecas;
Caborca, Sonora; and in the mountains
of Durango and Chihuahua.
Controls, mitigating actions and outlook
1. Our property security teams closely
monitor the security situation,
maintaining clear internal
communications and coordinating
work in areas of greater insecurity.
2. We maintain close relationships with
authorities at federal, state and local
levels.
3. We interact and meet regularly with
representatives of the National Guard
and also the Army and the Navy in
some cases. There are military
installations located near most of our
operations.
4. We continue to implement greater
technological and physical security at
our operations including:
• the use of a remote monitoring
process at the Herradura, Noche
Buena, San Julián, Juanicipio, Saucito
and Fresnillo mines;
• local operating and command centres
for each business unit in the Saucito,
Fresnillo and Juanicipio mines;
5. Increase in logistical controls to reduce
the potential for theft of mineral
concentrate such as:
• real-time tracking technology;
• surveillance cameras to identify
alterations in the transported material;
• protection and support services on
distribution routes;
• reduction in the number of authorised
stops to optimise delivery times and
minimise exposure of trucks
transporting ore concentrates or doré.
6. We continue to invest in community
programmes, infrastructure
improvements and government
initiatives to support the development
of legal local communities and
discourage criminal acts.
7. To combat drug consumption
we have:
• increased the number of anti-doping
tests conducted at the start of the day
in the mining units;
• carried out frequent inspections
outside and inside the mines to verify
that drugs are not consumed or sold;
• introduced drug consumption
prevention campaigns, focused on
employees.
Link to strategy
Risk appetite
Low
Risk owner
• Security Department
• Legal Department
Risk oversight
• Audit Committee
• Executive Committee
Behaviour
With attention
Risk rating (relative position)
2025: Very high (2)
2024: Very high (2)
129
Fresnillo plc Annual Report and Accounts 2025
3
IMPACT OF METALS PRICES AND EXCHANGE RATES
Risk description
Our financial results are heavily
dependent on commodity prices –
principally gold and silver. There is an
inherent risk when investing or planning
for the future prices of these precious
metals.
The volatility of these prices is high and
unpredictable and prices are strongly
influenced by a variety of external factors,
including wars, geopolitical disruption,
world economic growth, inventory
balances, industry demand and supply,
and possible substitution, among others.
Our sales are mainly denominated in US
dollars, although some of our operating
costs are in Mexican pesos. Thus, any
strengthening of the Mexican peso may
negatively affect our financial results.
Factors contributing to risk
Gold and silver prices in 2025 experienced
a historic increase, with silver rising by up
to 150% and gold increasing by more than
60%, driven by safe-haven demand,
geopolitical fears and strong industrial
purchases. Silver closed 2025 above
$70-$75 per ounce, while gold reached
record highs above $4,500.
Macro-economic and geopolitical factors
can directly affect the price of
commodities, both positively and
negatively, These include the war
between Ukraine and Russia, trade
tensions in the US-China relationship,
US policy in Latin America against drug
cartels, especially the situation with
Venezuela and Mexico and change in
US monetary policy, with
the Federal Reserve making multiple
interest rate cuts during the year and
markets betting on further easing in 2026.
Increased attraction of investing in
instruments such as cryptocurrencies
could lead to investors reducing their
investment activities in precious metals.
Controls, mitigating actions and outlook
1. We consider exposure to commodity
price fluctuations an integral part of
our business and our usual policy is to
sell our products at prevailing market
prices although we do have a hedging
policy for precious metals.
2. We monitor the commodity markets
closely to determine the effect of price
fluctuations on earnings, capital
expenditure and cash flows. When we
feel it is appropriate, we use derivative
instruments to manage our exposure
to commodity price fluctuations. We
run our business plans through various
commodity price scenarios and
develop contingency plans as required.
For more details see Market Review on
pages 18-19
3. We have hedging policies for
exchange rate risk, including those
associated with project-related capex.
4. We focus on cost efficiencies and
capital discipline to deliver competitive
all-in sustaining cost.
Link to strategy
Risk appetite
High
Risk owner
• Financial Planning
• Treasury
Risk oversight
• The Investment Committee
• Audit Committee
Behaviour
Increasing
Risk rating (relative position)
2025: Very High (3)
2024: High (4)
130
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
4
CYBERSECURITY
Risk description
Information is an asset that must always
be protected. This requires maintaining
confidentiality and integrity and
ensuring the availability of information
security management throughout all
business processes. Breaches in, or
failures of, our information security
management could adversely impact
our business activities. Malicious
interventions (hacking) of our
information or operations’ networks
could affect our reputation and/or
operational continuity.
Poor information security could lead to
loss or harm to our technical infrastructure
and the use of our technology by
malicious persons or bodies.
The list below shows our top eight
cybersecurity and privacy risks:
1. Corruption of data - Critical data where
any unauthorised modification can
have adverse impacts.
2. Unauthorised access - Cybersecurity
and privacy incidents due to incorrect
access permissions or system abuse,
exploitation, or misuse.
3. Breach and data theft - Disclosure of
critical and sensitive company data by
an internal or external source.
4. Business disruption - Disrupting key
applications or systems for a period.
5. Lack of cybersecurity ownership -
Failure to assign responsibility for
implementing and adopting
cybersecurity practices daily.
6. Non-compliance - Cybersecurity and
privacy incidents resulting in non-
compliance with applicable
regulations, including privacy.
7. Health and safety incidents - Breach of
availability, integrity or confidentiality of
data which impacts health and safety.
8. Halt or loss of operations -
Cybersecurity and privacy incidents
which result in loss of operating licence
or closure of operations.
Factors contributing to risk
Globally, cyber-attacks have increased
in frequency and impact across all
industries; we suffered a cybersecurity
incident (partial disruption of services)
in July 2024, which had negative
consequences for the Group
(Peñoles and Fresnillo plc).
Rising geopolitical tensions.
Heavy reliance on technology and
automated systems to support
operations within the mining industry.
The industrial and mining sectors are
seen to have a significantly weak level of
protection, while the damage that can be
caused is very high.
Global and national cybersecurity and
cybercrime regulations that could deter
criminals are still developing and are not
yet sufficiently mature.
Controls, mitigating actions and outlook
Our cybersecurity programme, aligned
with business strategies, is based on a
governance model with three lines of
defence, involving all operational, tactical,
and strategic business levels to prevent
and mitigate the effects of computer
risks. Our approach is also based on the
NIST Cybersecurity Framework, which
is used to assess and improve our ability
to prevent, detect, and respond to
cyberattacks.
1. We maintain continuous awareness
of cybersecurity at all levels of the
organisation, through workshops,
communications, campaigns, and
exercises that allow us to understand
and increase our cybersecurity culture.
As cybersecurity is a risk that requires
more active involvement of executive
teams, we carried out awareness and
training exercises focused on this level
during 2025.
2. The Security Operations Centre (SOC)
provides analytics that correlate
information from multiple business unit
sources, helping us to easily identify the
impact of a threat and address the
incident in a timely manner.
3. Cybersecurity incident response plans
are in place and regularly assessed to
ensure we can respond quickly and
effectively to cybersecurity incidents.
4. We conduct ongoing assessments of
the technology controls implemented
in our operations and services.
5. Constant threat intelligence
monitoring enables us to analyse
cybersecurity trends, and to adjust our
operations to anticipate and apply
necessary controls.
6. In addition, our systems, networks, and
assets are continuously monitored
through cybersecurity tools that use
Artificial Intelligence and Machine
Learning technology to analyse
behaviours in the organisation's
networks, identifying and mitigating
advanced threats.
7. Controls are in place to comply with
the ‘Ley Federal de Protección de
Datos Personales en Posesión de
Particulares’ (LFPDPPP).
8. During the year, we carried out the
second phase of auditing our Personal
Data Management System with the
NYCE office, with the objective of
achieving certification in our business
units.
Our plan for 2026 is to focus our efforts
on mitigating cyber risks, implementing
and maturing controls in line with the
threat landscape and emphasising the
importance of individual employee
responsibility to remain vigilant and alert
to cyber threats.
Risk Assessment, Disaster Recovery Plans,
Data Loss Prevention, Pen testing, IT/OT
Network Behavioural Analysis, and
targeted security enhancements for
Operational Technology (OT)
environments are among the initiatives
that will increase our level of cybersecurity
maturity (based on NIST CSF).
Link to strategy
Risk appetite
Low
Risk owner
• IT & TO Department
• Cybersecurity Office
Risk oversight
• The Cyber Security Committee
• Audit Committee
Behaviour
Stable
Risk rating (relative position)
2025: High (4)
2024: High (3)
131
Fresnillo plc Annual Report and Accounts 2025
5
SAFETY
(INCIDENTS DUE TO UNSAFE ACTS OR CONDITIONS COULD LEAD TO INJURIES OR FATALITIES)
Risk description
The mining industry is inherently
dangerous. Major hazards across our
operations and projects include process
safety, underground mining, surface
mining and tailings and water storage.
Our workforce faces risks such as fire,
explosion, electrocution and carbon
monoxide poisoning, as well as risks
specific to each mine site and
development project. These include
rockfalls caused by geological conditions,
cyanide contamination, explosion,
becoming trapped, electrocution, insect
bites, falls, heavy or light equipment
collisions involving machinery or
personnel and accidents occurring while
personnel are being transported.
These risks have the potential to cause
death, illness or injury, damage to the
environment, and disruption to
communities. A poor safety record or
serious accidents could have a long-term
impact on morale and on our reputation
and productivity, in particular:
• Rockfall/terrain failure.
• Loss of vehicle/equipment control.
• Team-vehicle-person interaction.
Factors contributing to risk
In 2025, we unfortunately experienced
two fatalities (one in Juanicipio and
another in Ciénega), increasing the
degree of risk.
Frequent transportation of our people
to remote business units is an ongoing
feature of our operations. In many
cases, these units have poor accessibility
by road.
Failure to comply with safety
programmes, measures and audits or
with the findings of inspections.
High turnover of workforce, including
contractors.
Controls, mitigating actions and outlook
1. Nothing is more important than the
safety and wellbeing of our employees,
contractors and communities. Our
objective is first and foremost to have
zero fatalities. We believe all incidents
and injuries are preventable, so our
focus is on identifying, managing and,
where possible, eliminating risks. We
constantly seek to improve our safety
and health risk management
procedures, with focus on the early
identification of risks and the
prevention of fatalities.
2. We are raising awareness of the risks
generated by our operational activities.
This includes quarterly meetings on
the main safety risks at each mining
unit, project and exploration site,
overseen by the Executive Committee.
For more details see Our people and
compatible mining on pages 69-82
3. Continuing the implementation of the
'I Care, We Care' programme in all our
operations, including strengthening
the programme’s five lines of action.
4. We are reinforcing the four pillars
of our “Safety and Occupational
Health” strategy:
• Safety and health risk management:
workers at all levels are able to identify
hazards and controls, so that all jobs
are carried out safely.
• Leadership: all employees and
contractors are health and safety
leaders, and we demonstrate our
commitment through each individual’s
responsible behaviour.
• Contractor management: our
contractors are an integral part of our
safety team and culture, and we work
together to improve.
• Reporting, research and learning from
our accidents: we share good practices
and learn from our mistakes.
For more details see Sharing the
benefits on page 107
5. We have implemented technical and
safety standards and procedures for
slope geotechnical, tailings
management, underground mining
and process safety.
6. We are advancing the automation of
hazardous processes.
7. The critical controls that reduce risk in
the business units are periodically
updated and improved through
inspections and performance
evaluations, which are carried out by
the safety team, external auditors such
as ‘Real Safety’ and by government
authorities such as the Ministry of
Labour and PROFEPA.
For more details see Safety on
pages 69-82
Link to strategy
Risk appetite
Low
Risk owner
• Safety
• Human Resources
Risk oversight
• HCSER Committee
Behaviour
Increasing
Risk rating (relative position)
2025: High (5)
2024: High (10)
132
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
6
ACCESS TO LAND
(FULL ACCESS TO PLOTS OF LAND)
Risk description
Significant failure or delay in accessing
surface land above our mining
concessions and other lands of interest is
a permanent risk to our strategy and has
a potentially high impact on our
objectives.
The biggest risk is failing to gain full
control of the lands where we explore or
operate.
Possible barriers to access to land
include:
• Increasing landowner expectations.
• Refusal to comply with the terms of
previous land acquisitions and
conditions regarding local
communities.
• Influence of multiple special interests
in land negotiations.
• Conflicts regarding land boundaries,
and the subsequent resolution process.
• Succession problems among
landowners resulting in a lack of clarity
about the legal right to own and sell
land.
• Risk of litigation, such as increased
activism by agrarian communities and/
or judicial authorities.
• Presence of indigenous communities
in proximity to lands of interest, where
prior and informed consultation and
consent of such communities are
required.
Factors contributing to risk
The new mining law complicates efforts
to regularise access to land and the
procedures for obtaining new permits.
It is becoming increasingly difficult to
negotiate land prices, with landowners
demanding more money and benefits
for access to land.
Social insecurity prevailing in the regions
where our mining interests are located
may not allow the necessary work to be
carried out to demonstrate the
minimum investments required by law,
leading to the possible cancellation of
the concession.
The Federal Government is continuing its
policy of not granting new mining
concessions.
Controls, mitigating actions and outlook
1. We undertake meticulous analysis of
exploration objectives and
construction project designs to
minimise land requirements.
2. Initiatives undertaken to secure access
to land in areas of strategic interest or
value include:
• Judicious use of lease or occupation
contracts with purchase options, in
compliance with legal and regulatory
requirements.
• Early participation of our community
relations teams during the negotiation
and acquisition of socially challenging
objectives.
• Strategic use of our social investment
projects to build trust.
• Close collaboration with our land
negotiation teams, which include
specialists hired directly by Fresnillo
and provided by Peñoles as part of the
service agreement.
3. We perform ongoing reviews of the
legal status of our land rights,
identifying certain areas of opportunity
and continuing to implement
measures to manage this risk on a case-
by-case basis. Such measures include,
wherever possible, negotiations with
agricultural communities for the direct
purchase of land.
4. We use mechanisms provided for in
agricultural law as well as other legal
mechanisms under mining legislation
that provide greater protection for land
occupation.
5. We negotiate carefully with the
government on concessions with
geological mining interest that have
already been granted.
Link to strategy
Risk appetite
Low
Risk owner
• Legal Department
• Community Relations
Risk oversight
• Audit Committee
Behaviour
With attention
Risk rating (relative position)
2025: High (6)
2024: Medium (6)
133
Fresnillo plc Annual Report and Accounts 2025
7
PROJECTS
(PERFORMANCE RISK-GREENFIELD PROJECTS)
Risk description
The pursuit of advanced exploration and
project development opportunities is
essential to achieving our strategic goals.
However, this carries certain risks:
• Current or new government
regulations that obstruct, limit or
restrict the granting of mining
concessions; delay or failure to obtain
permits, licences, authorisations, etc.
• Economic viability: the impact of the
cost of capital to develop and maintain
the mine; future metals prices; and
operating costs throughout the mine's
life cycle.
• Access to land: a significant failure or
delay in land acquisition has a very
high impact on our projects.
• Delivery risk: projects can exceed
budget in terms of cost and time;
they cannot be built according to the
required specifications or there may
be a delay during construction; and
major mining teams cannot be
delivered on time.
• Other uncertainties such as:
fluctuations in the degree of ore and
recovery; unforeseen complexities in
the mining process; poor quality of the
ore; unexpected presence of
groundwater or lack of water; lack of
energy, lack of community support;
and inability or difficulty in obtaining
and maintaining the required building
and operating permits.
The following risks relate specifically to
prospective projects in Chile and Peru:
• Government instability, especially
in Peru.
• Potential actions by the government
(political, legal, regulatory and tax).
• Security.
• Licence to operate (community relations)
• Access to water (national regulation
and geographic complications).
• Environmental compliance.
• Competition for land (threat from
green power generation companies,
for example thermosolar).
• Informal mining.
• Industrial safety compliance
(National Geological and Mining
Service SERNAGEOMIN).
• Increased mining taxes and fees.
Factors contributing to risk
In 2025, progress on projects was
hampered by the government's failure to
issue permits and licences, the presence of
organised crime near the projects, a lack
of electricity and diesel fuel, a shortage of
water, and the lack of full land rights.
Prohibition of new open-pit mining
concessions.
Uncontrolled increases in the costs of
critical inputs directly affecting the
planning and progress of projects.
In some regions there are no specialised
contractors or contractors with the
technology to develop the projects.
Contractor productivity may be lower
than anticipated, causing delays in
the programme.
Increase in the number of high impact
crimes (homicide, kidnapping, extortion)
in the regions of the projects.
We have identified the following threats
to project development:
• Insufficient resources for project
execution.
• Changes in operational priorities that
can affect projects.
• Inadequate management structure for
project supervision.
• Delays in obtaining necessary permits
for construction and operation.
• Lengthy procedures for land acquisition,
electricity supply and water.
Controls, mitigating actions and outlook
1. Our investment assessment process
determines how best to manage
available capital using the following
criteria:
• Technical: we evaluate and confirm the
resource estimate; conduct
metallurgical research of mineral
bodies to optimise the recovery of
economic elements; calculate and
determine the investment required for
the overall infrastructure (including
roads, energy, water, general services,
housing) and the infrastructure
required for the mine and plant.
• Financial: we analyse the risk in relation
to the return on the proposed capital
investments; set the expected Internal
Rates of Return (IRR) per project as
thresholds for approving the allocation
of capital based on the current value of
expected cash flows of invested capital;
and perform stochastic and
probabilistic analyses.
• Qualitative: we consider the alignment
of investment with our Strategic Plan
and business model; identify synergies
with other investments and operating
assets; and consider the implications
for safety and the environment, the
safety of facilities, people, resources
and community relations.
2. The management of our projects is
based on the Project Management
Body of Knowledge (PMBOK) standard
of the Institute of Project Management
(PMI). It allows us to closely monitor
project controls to ensure the delivery
of approved projects on time, within
budget and in accordance with
defined specifications. The executive
management team and the Board
of Directors are regularly updated
on progress.
3. Each advanced exploration project and
major capital development project has
a risk record containing the project-
specific identified and assessed risks.
Link to strategy
Risk appetite
Medium
Risk owner
• Projects
• Legal
• Community Relations
• Access to Land Department
Risk oversight
• Audit Committee
• The Investment Committee
Behaviour
Increasing
Risk rating (relative position)
2025: High (7)
2024: High (9)
134
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
8
GLOBAL MACROECONOMIC DEVELOPMENTS
(ENERGY AND SUPPLY CHAIN DISRUPTIONS, INFLATION AND COST)
Risk description
Geopolitics has the potential to increase
trade tensions, affecting rules-based
trading systems. Trade measures can
impact our markets, operations or key
projects, limiting the advantages of
being a multinational company with a
global presence and leading to
increased costs.
Disruptions or restrictions in the supply
of critical operating inputs such as steel,
cyanide, copper, diesel, transport
equipment, oxygen and truck tyres,
electricity, diesel and gas, steel, sulphuric
acid or mining equipment spare parts
(supplied mainly by land transport from
the US and by sea from China and
Europe) could negatively affect
production or increase costs.
Factors contributing to risk
The 2026 review of the USMCA (United
States-Mexico-Canada Agreement)
which could lead to increased costs or
shortages of critical supplies for
operations, as well as impacts on labour
arrangements.
Indirect impacts of the war in Ukraine
and conflict in Latin America due to US
policies against drug cartels, especially in
Venezuela and Mexico.
Lack of electricity infrastructure of the
state-owned company (Comisión
Federal de Electricidad CFE), which
supplies energy in Mexico.
Possible inflation growth in Mexico.
Controls, mitigating actions and outlook
1. We execute operational excellence
initiatives to counter inflation and
improve margins, and also enhance
cost competitiveness by improving the
quality of the portfolio.
2. We maintain a rigorous, risk-based
supplier management framework to
ensure that we engage solely with
reputable product and service
providers, supported by the necessary
controls to ensure the traceability of all
supplies (including avoiding any
conduct related to modern slavery).
3. To achieve cost competitiveness, we
endeavour to buy the greatest possible
proportion of our key inputs, such as
fuel and tyres, on as variable a price
basis as possible and to link costs to
underlying commodity indices where
this option exists.
4. We are committed to incorporating
sustainable technological and
innovative solutions, such as using sea
water and renewable power when
economically viable, to mitigate
exposure to potentially scarce
resources.
For more details see Sustainability at
the core of our purpose pages 58-117
Link to strategy
Risk appetite
Medium
Risk owner
• Procurement and contracts
• Operational Comptrollers
• Financial Planning
Risk oversight
• Audit Committee
Behaviour
With attention
Risk rating (relative position)
2025: High (8)
2024: High (5)
135
Fresnillo plc Annual Report and Accounts 2025
9
UNION RELATIONS
(LABOUR RELATIONS)
Risk description
Our highly skilled unionised workforce
and experienced management team are
critical to sustaining our current
operations, executing development
projects and achieving long-term growth
without major disruption. We are
committed to safety, non-discrimination,
diversity and inclusion, and compliance
with Mexico’s strict labour regulations.
The Labour Reform allows the existence
of several unions within a company and
gives freedom of choice to the employee.
This has led to a complex, rare work
environment at the Fresnillo mine, with
violent clashes between the union and a
group of workers seeking to register a
new independent union. The risk is that
the fighting will continue and worsen,
eventually reducing the mine’s
workforce. There is also a risk that this
conflict could spread to other mines.
There is a risk of strikes or illegal work
stoppages at some of our mining units
by workers who do not agree with profit
sharing or some of its benefits, mainly at
the Herradura mine.
Factors contributing to risk
In 2026, elections will be held for
important union positions in several
business units, and the collective labour
agreement will be reviewed. This could
create tension in the workplace.
We run the risk of an outside union
seeking to destabilise the current union.
We could also be adversely affected by
national union politics.
Controls, mitigating actions and outlook
1. We remain attentive to any
developments in labour or trade union
issues. Our executive leadership and
the Executive Committee recognise
the importance of trade union
relations and follow any developments
with interest. Our strategy is to
integrate unionised personnel into
each team in the business unit. We
achieve this by clearly assigning
responsibilities and through
programmes aimed at maintaining
close relations with trade unions in
mines and at the national level.
2. Long-term labour agreements (usually
three years) are in place with all the
unions at our operations, helping to
ensure labour stability.
3. We seek to identify and address labour
issues that may arise throughout the
period covered by the labour
agreements and to anticipate any
potential issues in good time. When
appropriate, we hire experienced legal
advisors to support us on labour issues.
4. We have increased communication
with trade union leaders in mining
units to monitor the working
environment and conducted a review
of the contractual benefits for union
members in our mines.
5. We maintain constructive relationships
with our employees and their unions
through regular communication and
consultation. We are proactive in our
interactions with trade unions, and
their representatives and leaders at
various levels of the organisation are
regularly involved in discussions about:
• the future of the workforce.
• the economic situation facing the
industry.
• our production results.
6. We encourage union participation
in our security initiatives and other
operational improvements. These
initiatives include the Security
Guardians programmes, certification
partnerships, integration of high
productivity equipment, and
family activities.
For more details see Our People on
pages 69-82
Link to strategy
Risk appetite
Low
Risk owner
• Human Resources
• Legal
Risk oversight
• Audit Committee
• People & Remuneration Committee
Behaviour
Stable
Risk rating (relative position)
2025: High (9)
2024: High (7)
136
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
10
HUMAN RESOURCES
(ATTRACT AND RETAIN REQUISITE SKILLED PEOPLE / TALENT CRISIS)
Risk description
Our ability to achieve our operating
strategy depends on attracting,
developing and retaining a wide range
of skilled and experienced people, not
only our own employees but also those
of our contractors.
Managing talent and maintaining a
high-quality workforce in a rapidly
changing technological and cultural
environment is a key priority for us. Any
failure in this regard could negatively
impact current operating performance
and future growth prospects.
We face multiple risks in the processes of
recruiting, hiring, training and retaining
talented, skilled and experienced people:
• Sourcing skilled labour in the mining
sector has become a major risk, and
our industry requires an increasing
number of people who are trained and
experienced in mining processes.
• Digital and technological innovation has
the potential to generate substantial
improvements in the Company's
productivity, safety and environmental
management. There is a risk that our
workforce will be unable to transform to
the extent necessary or will be resistant
to change and unwilling to accept the
impact of automation or to acquire new
technological skills.
• The lack of reliable contractors with
sufficient infrastructure, machinery,
performance history and trained
personnel is also a risk that could
affect our ability to develop and
build mine sites.
In addition, contractual terms prohibit us
from hiring specialised personnel from
business partners or contractors.
Factors contributing to risk
In Mexico, federal labour law is in the
process of gradually reducing the
working week from 48 to 40 hours. This
change is being implemented gradually
between 2026 and 2030, without any
reduction in salaries, resulting in the
need to create an additional shift.
The shortage of skilled and experienced
technical labour in the mining industry is
leading to increased competition in the
regions where we operate. In certain
regions, there are not enough candidates
with the necessary skills to operate
mining equipment.
Several of our business units are located
in remote regions with limited and
complex access, making it difficult to find
skilled labour in those regions.
Evolving societal expectations are
putting pressure on our corporate and
employer brand: who we are and what
we stand for.
Controls, mitigating actions and outlook
1. We enhance the talent of our
employees through training and
career development, invest in
initiatives to broaden the talent pool
and are committed to our diversity and
inclusion policy. Through these actions
we aim to increase employee
retention, as well as the number of
women, people with disabilities and
employees with international
experience in the workplace.
2. Our employee performance
management system is designed to
attract and retain key employees by
creating appropriate reward and
remuneration structures and providing
personal development opportunities.
We have a talent management system
in place to identify and develop internal
candidates for key management
positions, as well as to identify suitable
external candidates where appropriate.
3. We aim for continuous improvement,
driven by opportunities for training,
development and personal growth; in
short, we focus on fair recruitment, fair
pay and benefits, and gender equality.
4. Our goal is to be an employer of
choice, and we recognise that in order
to be a profitable and sustainable
business, we need to create value for
our employees and their families. We
do this by providing a healthy, safe,
productive and team-oriented work
environment that not only encourages
our people to reach their potential but
also supports process improvement.
5. A renewed approach to talent
management has been implemented
in the human resources areas of the
business units. This ensures that all our
employees have a meaningful
conversation about their performance,
motivations and experience, as well as
a quality development plan that
enables them to acquire the skills and
experience they need for the future.
6. Employees who live far away from the
business units are permanently
supported with transportation, medical
care for them and their families, health
and nutrition programmes with access
to high quality food, and support with
clothing and accessories to protect
them from changes in the weather.
7. A global graduate programme
and strategic partnerships are in
place to establish mutually beneficial
relationships with universities and
schools specialising in mining
and geology.
8. We have established local internship
training programmes as well as other
future skills development partnerships.
9. We have continued our performance
appraisal process, reinforcing formal
feedback. We promote certification of key
technical competencies for operational
staff and have implemented a leadership
and management competency
development programme for required
positions. We develop our high-
potential middle managers through
the Leaders with Vision programme.
10. Ongoing training workshops are held
for staff by business partners and
contractors, focusing on new
technologies and best practices in the
mining industry. Our partners include
Caterpillar, Matco, Epiroc, Robbins and
Sandvik, among others.
For more details, see Our people on
pages 69-82
Link to strategy
Risk appetite
Medium
Risk owner
• Human Resources
Risk oversight
• Audit Committee
• People & Remuneration Committee
Behaviour
Stable
Risk rating (relative position)
2025: High (10)
2024: High (8)
137
Fresnillo plc Annual Report and Accounts 2025
11
LICENCE TO OPERATE
(COMMUNITY RELATIONS)
Risk description
Locally and globally, the mining
industry’s stakeholders have high
expectations relating to social and
environmental performance. These
expectations go beyond the responsible
management of negative impacts to
include continuous engagement and
contribution to stakeholder
development.
Failure to adequately address these
expectations increases the risk of
opposition to mining projects and
operations. Negative sentiment towards
mining or specifically towards Fresnillo
plc could have an impact on our
reputation and acceptability in the
regions where we have a presence.
We monitor the following risks:
• Negative perception of the Company’s
social and environmental performance.
• Failure to identify and address
legitimate concerns and expectations
of the community and of society at
large.
• Insufficient or ineffective engagement
and communication.
• Failure to contribute purposefully to
community development.
Factors contributing to risk
Higher expectations and scrutiny of
social and environmental performance.
Increasing expectations of shared
benefits associated with land
agreements.
Perceived competition for access to
natural resources, notably water.
Significant reduction in government
spending on community infrastructure,
development programmes and services.
Anti-mining activism fuelling opposition
to our industry.
Community concerns about insecurity,
access to water and the environmental
impact of our operations.
Controls, mitigating actions and outlook
1. We hold regular meetings with key
community stakeholders to share
information about the company, and
its social and environmental practices.
2. An internet communication channel
was implemented in 2025 which
makes it possible to capture concerns
from the community, with cases
remaining anonymous if requested.
This initiative has extended our ability
to interact virtually with communities
as effectively as we do when issues are
raised in-person. The module is
proving especially valuable in instances
where people are using digital
technology to explore our company
and key issues.
3. We closely monitor threats and
opportunities in the communities
associated with our operations by
maintaining constant and direct
contact with the leaders of each
business unit, by carrying out social
studies and media monitoring, and
through our complaints and claims
process.
4. Governance over the complaints
process is improving every year.
Complaints are received, assessed and
managed, involving line managers,
while dissatisfied stakeholders are kept
informed of the status of each case,
until satisfactory closure agreements
are reached.
5. We deploy social programmes in the
communities near the business units,
including support for schools, clinics
and health, the supply of medicines,
nutrition and food, as well as
maintenance of roads and bridges and
water supply.
For more details see Communities
pages 104-110
Link to strategy
Risk appetite
Medium
Risk owner
• Community Relations
• Human Resources
Risk oversight
• HSECR Committee
Behaviour
Stable
Risk rating (relative position)
2025: Medium (11)
2024: Medium (11)
138
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
12
EXPLORATION
(NEW ORE RESOURCES)
Risk description
We are highly dependent on the success
of the exploration programme to meet
our strategic value-creation targets
and our goals for long-term production
and reserves.
Maintaining a reasonable investment in
exploration, even when metals prices are
low, has been our policy through the
years. While continuous investment has
always been a hallmark of our
exploration strategy, replenishing
exploited reserves and increasing our
total amount of resources could be a
challenge in the future.
The growing level of insecurity, a more
challenging land access scenario, and
delays in obtaining government permits
detailed previously, translate into a
longer timeframe to deliver new
discoveries and improve the category of
resources. In addition, difficulties in
obtaining new mineral concessions
could hamper exploration in new
target areas.
Factors contributing to risk
In Mexico, the mining legislation enacted
in 2024 establishes that exploration
activities in new concessions will be
carried out only by the Mexican
Geological Survey assigned to the
Ministry of Economy.
New concessions would be granted
through a bidding process following
exploration orders submitted to the
Service. However, pre-existing
concessions may continue to be explored
by their holders and may be
commercialised upon authorisation by
the federal Ministry of Economy. Fresnillo
plc's concessions will allow the company
to continue its brownfield and greenfield
exploration programmes, at least in the
medium term. Access to new
concessions will be difficult.
This year, the exploration programme
has been complicated and delayed
mainly for the following reasons:
• Restrictions on new mining concessions.
• Delays in procedures regarding access
to land.
• Presence of organised crime
(insecurity) in the regions where we
have projects and exploration camps.
• Delays and failures to obtain permits
and licences from government
authorities.
• Increased exploration costs.
• In Chile, risk factors include: lack of
water in the Atacama Desert in the
north and possibility of conflict with
forestry or agricultural interests in the
south; overall higher costs compared to
those in Mexico; seasonal restrictions to
exploration in the High Andes; scarcity
of open grounds for staking; poor
infrastructure in remote zones; the
presence of anti-mining communities
or NGOs; and strong competition for
mining claims and staff.
• In Peru, the main risk factors include:
the long lead time required to obtain
social permits (emphasising the need
for strong community relations teams
and programmes); delays in obtaining
government permits; poor
infrastructure in mountainous regions;
the presence of anti-mining
communities or NGOs; and the
possibility of invasion by illegal miners.
Controls, mitigating actions and outlook
1. Increasing regional exploration drilling
programmes to intensify efforts in the
districts with high potential.
2. Carrying out aggressive local
exploration drilling programmes to
upgrade the resources category and
convert inferred resources into reserves.
3. A team of highly trained and
motivated geologists, including both
employees and long-term contractors.
4. Advisory technical reviews by
international third-party experts and
routine use of up-to-date and
integrated GIS databases, cutting edge
geophysical and geochemical
techniques, large to small scale
hyperspectral methods, remote
sensing imagery, and analytical
software that identifies favourable
regions for field-checking by the team.
5. The maintenance of a pipeline of drill-
ready high priority projects.
For more details see Our Strategy on
pages 12-17
Link to strategy
Risk appetite
High
Risk owner
• Exploration
• Projects
• Legal
Risk oversight
• The Board
• The Investment Committee
Behaviour
Stable
Risk rating (relative position)
2025: Medium (12)
2024: Medium (12)
139
Fresnillo plc Annual Report and Accounts 2025
13
CLIMATE CHANGE
Risk description
The mining industry is highly exposed
and sensitive to climate change:
• Societal responses to the transition to a
low-carbon economy include stricter
regulations to reduce emissions, a
transformation of the global energy
system, changes in behavioural and
consumption choices, and emerging
technologies.
• Our operations and projects are
expected to face severe physical risks
from extreme weather events, such as
high temperatures, drought and
extreme rainfall from more frequent
and intense hurricanes in the Pacific
Ocean. These potential natural
disasters can affect the health and
safety of our people, damage access
roads and mine infrastructure, disrupt
operations and impact our
neighbouring communities.
The most significant risk we currently
face relates to compliance with all
provisions and requirements of
international agreements to reduce
pollution and greenhouse gas emissions,
and regulatory disclosure standards in
both Mexico and the UK.
In addition, the mining industry is also
expected to face chronic risks in the
coming years, such as rising
temperatures, which may increase our
demand for water, or a decrease in
annual rainfall, which is certain to
exacerbate water stress in the regions
where we operate. These outcomes may
also intensify competition for access to
water resources, increasing the risks to
our social licence to operate.
Factors contributing to risk
Burning fossil fuels adds greenhouse
gases to the atmosphere, increasing the
greenhouse effect and global warming.
Deforestation by industrial logging in
areas where we have operations and
projects adds greenhouse gases to the
atmosphere.
Increased temperatures in desert areas
where we operate can worsen air quality
and have effects on respiratory and
cardiovascular health.
Changes in weather patterns can worsen
air quality and cause respiratory and
cardiovascular issues.
Forest fires near units where we have
operations or projects generate smoke
and other air pollutants harmful to
health.
Oil and gas extraction is a major source
of CO
2
pollution.
Increasing farming of livestock such as
cows and sheep produces large amounts
of methane when the animals digest
their food.
Controls, mitigating actions and outlook
1. Understanding the exposure of each
asset through assessment
programmes, such as our critical risk
assessment and asset integrity
assurance programme, and climate
change resilience assessments with
support from external consultants
such as PWC, Marsh and Zurich.
2. Maintaining business resilience plans
and emergency response plans
together with training and annual
exercises help us to prepare for a
natural disaster, for example by
deploying established communication
plans and coordination with local,
regional and state agencies.
3. Using the latest generation of climate
analyses (weather forecasts, climate
outlooks, modelling and disaster
projections) to obtain quantitative
information on short-, medium- and
long-term physical climate risks.
4. Applying protection principles rather
than a compliance-based approach
across our operations, fostering proactive
relationships with international civil
society organisations, governments and
environmental departments to support
protective legislation.
5. Actively supporting and reporting on
our practices in relation to the
commitments in the International
Council on Mining and Metals
statement on water management.
Link to strategy
Risk appetite
Medium
Risk owner
• ESG Department
• Legal Department
Risk oversight
• HSECR Committee
Behaviour
Stable
Risk rating (relative position)
2025: Medium (13)
2024: Medium (13)
140
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
14
TAILINGS DAMS
(OVERFLOW OR COLLAPSE OF TAILINGS DEPOSITS)
Risk description
Ensuring the stability of our tailings
storage facilities (TSFs) during their entire
lifecycles is central to our operations. A
failure, collapse or overtopping of any of
our TSFs could result in fatalities, damage
to the environment, regulatory violations,
reputational damage and disruption to
the quality of life of neighbouring
communities as well as our operations.
Before constructing a dam, we conduct a
series of studies to confirm the suitability
of the area. These studies include
geotechnical, geological, geophysical,
hydrological, hydrogeological, and
seismic analyses. Before construction
begins, the Ministry of Environment and
Natural Resources (SEMARNAT), through
the Federal Office for Environmental
Protection (PROFEPA), conducts several
assessments.
Most of our currently operational facilities
were designed and constructed under
local and national controls and
standards. Following investigation, re-
design, and construction processes
during the last four years, they also
comply with our new tailings
management policy and guidelines.
Obtaining permits, licences and
certifications from the government to be
able to operate TSFs is a risk due to the
time involved in carrying out these
procedures, together with any legal
complications. Planning new TSFs with
the necessary time and to international
standards is also a risk, due to the
limitations of the land around our mines
and the costs and time involved in
construction. If we fail to manage these
in a timely manner, we run the risk of
disrupting the operation.
Factors contributing to risk
The climate in recent years has become
harsher in the regions where we operate,
for example with more severe and
prolonged rainfall, more intense air that
degrades the geomembrane liners,
snowfall, and frost that complicates the
operation, among other issues.
Controls, mitigating actions and outlook
1. The Global Industry Standard on
Tailings Management (GISTM) was
published in 2020 and is best practice.
We understand the value and
importance it brings to our industry,
and we continually review and assess
the impact of compliance. Taking
GISTM into account, we have updated
our risk assessment methods with a
focus on more detailed risk
identification, failure modes, and
controls to avoid catastrophic failures.
2. We launched a new tailings policy in
2023, based on industry best practices,
reinforcing our commitment to the
safety and health of our workforce,
communities, and the environment.
Every year, internal audit and external
auditors specialised in tailings dams,
such as Hawcroft Consulting and
Knight Piésold Consulting, check our
compliance with the policy.
3. Catastrophic failures of TSFs are
unacceptable and their potential for
failure is evaluated and addressed
throughout the life of each facility. We
manage our TSFs in a manner that
allows the effectiveness of their design,
operation and closure to be monitored
at the highest levels of the Company:
• Our TSFs are constantly monitored,
and all relevant information is provided
to the authorities, regulating bodies,
and the communities that could be
affected.
• We manage our TSFs using data,
modelling, and construction and
operating methods validated and
recorded by qualified technical teams
and reviewed by independent
international experts, whose
recommendations we implement to
strengthen the control environment.
• Risk management includes timely risk
identification, control definition, and
verification. Controls are based on the
consequences of the potential failure
of the TSFs.
4. In 2025 we continued initiatives to
align our governance practices with
current best practices:
• Updating the inventory of TSFs and
validating the data log.
• Reviewing findings of the Independent
Tailings Review Panel (ITRP) and
prioritising recommendations arising
from inspections.
For more details see Tailings and
mineral waste management on
pages 98-99
External sources of confidence
• Compliance with the Independent
Tailings Review Panel (ITRP) annual
review programme. This panel is
comprised of renowned international
experts.
• Periodically, we are inspected by the
ITRP, which issues corrective and
preventive recommendations to
ensure that the tailings dams remain
in good condition. In 2025, the ITRP
visited all Fresnillo plc tailings dams.
Link to strategy
Risk appetite
Low
Risk owner
• TSF’s Department
• Safety & Environmental Department
Risk oversight
• HSECR Committee
• Executive Committee
Behaviour
Stable
Risk rating (relative position)
2025: Medium (14)
2024: Medium (14)
141
Fresnillo plc Annual Report and Accounts 2025
15
ENVIRONMENTAL INCIDENTS
(CYANIDE SPILLS AND CHEMICAL CONTAMINATION)
Risk description
Environmental incidents are an inherent
risk in our industry. These incidents
include possible cyanide spills and dust
emissions, which could have a high
impact on our people, communities and
businesses. We seek to achieve
operational excellence to ensure that our
employees and contractors go home safe
and healthy, and that there are no
adverse impacts on the communities
and the environment where we operate.
An operating incident that damages the
environment could affect both our
relationship with local stakeholders and
our reputation, reducing the social value
we generate.
We continue to be alert to the following
risks:
• Cyanide management.
• Impact on the environment through
erosion/deforestation/forest loss or
disturbance of biodiversity because of
the operations of the business unit or
project activities.
• An event involving a leak or spill of
cyanide or SO
2
, which due to its
chemical properties could generate an
event of major consequence on the
premises of the business unit and/or in
the nearby area.
Environmental issues directly related to
climate change and tailings storage are
considered in our specific principal risks
‘Climate Change’ and ‘Tailings dams’.
Factors contributing to risk
Climate change in the regions where we
operate is beginning to increase the risk
of incidents impacting the environment,
mainly due to more extreme rainfall.
We operate in challenging environments,
including forests and agricultural areas in
Chihuahua and Durango, and also the
Sonora Desert, where water scarcity is a
key problem.
Disruptions and lack of supply of critical
inputs for the operation.
Failure to address the recommendations
of external audits, especially those
related to the environment.
Controls, mitigating actions and outlook
1. We work to raise awareness among
employees and contractors, providing
training to promote operational
excellence.
2. The potential environmental impact of
a project is a key consideration when
assessing its viability, and we
encourage the integration of
innovative technology in the project
design to mitigate such impacts.
3. We have an environmental
management system in place. We have
strengthened the regulatory risk pillar
of this system, incorporating monthly
updates of environmental regulations.
Furthermore, we now regularly monitor
the environmental authority inspection
processes to assure compliance with
our environmental commitments and
action plans.
4. Each site maintains updated
environmental emergency
preparedness and detailed closure
plans with appropriate financial
provisions to ensure physical and
chemical stability once operations
have ceased.
For more details see Environment on
pages 83-103
5. We comply with international best
practices as promoted by the
International Cyanide Management
Institute (ICMI) and the Mexican
standard NOM-155SEMARNAT-2007,
which establishes environmental
requirements for gold and silver
leaching systems.
For more details see Cyanide
Management on page 99
External sources of confidence
Fresnillo, Saucito, Herradura and
Noche Buena are ISO 14001 and
ISO 45001 certified.
In addition, Fresnillo and Saucito
achieved the badge of environmental
excellence issued by the Environmental
Protection Attorney's Office (PROFEPA).
Our Herradura and Noche Buena
leaching operations comply with the
Cyanide Code issued by the International
Cyanide Code Institute with the
respective certification.
Link to strategy
Risk appetite
Low
Risk owner
• Safety & Environmental Department
Risk oversight
• HSECR Committee
Behaviour
Stable
Risk rating (relative position)
2025: Medium (15)
2024: Medium (15)
142
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
RESPONSE/MITIGATION TO OUR RISKS
Based on their assessment of prospects and viability, the Directors confirm that
they have the expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the next five years.
In accordance with provision 31 section 4
of the UK Corporate Governance Code,
considering the Group’s current position
and its principal risks for a period longer
than the 12 months required by the
going concern statement, management
prepared a viability analysis which was
assessed by the Board for approval.
As discussed above, we closely monitor
and assess the impact of key principal
and emerging risks on our long-term
prospects and, where possible,
proactively build response plans into our
investment decisions.
Our long-term planning reflects our
business model of running our business
in ways that are safer, smarter and more
sustainable. To ensure we remain
resilient in the long term, our business
model is continuously stress tested
against the key uncertainties within the
emerging risks, with recommended
actions to mitigate potential downside.
The Directors reviewed the viability
period and confirmed the suitability of a
five-year period to December 2030. This
period aligns with the mining industry’s
typical planning cycle and with the
Company’s five-year forecast period
normally used to evaluate liquidity and
contingency plans. It allows us to model
capital expenditure and development
programmes planned during the
timeframe and reflects cash flows
generated by the projects currently
under development. Due to the long
business cycles in our industry, the
Directors considered that a shorter
period would be insufficient.
Reporting on the Company’s viability
requires the Directors to consider those
principal risks that could impair the
solvency and liquidity of the Company. In
order to determine those risks, the
Directors robustly assessed the Group-
wide principal risks and operation-
specific risks by undertaking
consultations with executive
management, mine managers and other
personnel across our operations. These
consultations also enabled the Directors
to identify low probability, high loss
scenarios – ‘singular events’ – with the
potential magnitude to severely impact
the solvency and/or liquidity of Fresnillo.
To assess the Group’s viability, the
Directors identified that of our
principal risks, the following are the
most important:
• Potential actions by the government,
which could include the withdrawal of
concessions, permits and licences,
particularly the withdrawal of permits
for the storage and handling of
explosives at mining units.
• Security, particularly the theft of
explosives at one of our business units
with high rates of high impact crime
and theft.
• Impact of metals price and
exchange rates, especially the
volatility of gold and silver prices over a
period.
• Safety, risk scenarios involving fires,
explosions, severe flooding and
fatalities.
• Union relations, the possibility of an
illegal work stoppage or disruption of
operations by unionised workers
especially at the La Herradura mine.
• Climate change, the effects of winter
storms and torrential rains.
• Tailings dams, in particular the failure,
collapse or overtopping of a tailings
dam.
• Environmental incidents, the
possibility of spills of toxic substances
into the environment and as a risk
associated with others that would have
a severe impact, e.g. tailings dams.
Having determined that none of the
individual risks would in isolation
compromise the Group’s viability, the
Directors went on to group principal risks
into the following severe but plausible
scenarios, in each case determining the
risk proximity (how soon the risk could
occur) and velocity (the speed with which
the impact of a risk could be felt):
Scenario 1: Impact of metals prices. Our
model assumes that prices for gold and
silver in 2026 fall to US$2,562 per oz and
US$32 per oz respectively. We further
assume that precious metals prices
remain at a low level for the following
four years of the viability period, varying
between US$4,000 – US$2,562 per gold
oz. and US$55 – US$32 per silver oz.
To create an impartial projection for a
future environment of low metals prices,
the Directors used an average of the
three lowest forecasts for each year of the
assessment, based on consensus
estimates published by institutional
financial analysts. This environment was
deemed to be the most significant risk,
and pervasive across the Company.
(Principal risk.)
Scenario 2: Bench collapse at an open
pit mine. A landslide occurs covering the
lower pit of La Herradura mine. Due to
the unexpected nature of the event,
fatalities occur. Production is gradually
ramped back up and re-established to
full capacity. (Singular event.)
Scenario 3: Tailings deposit breach at
a mine. A tailings deposit collapses and
tailings are released into the surrounding
area, causing environmental damage.
A fund is created by the Company to be
used to remediate and compensate for
any damage caused. The investigation
into the causes of the event is drawn out
and further time is required before all
environmental permits are reinstated.
As a result, the mine remains closed
throughout the viability assessment
period. (Principal risk.)
Scenario 4: Flooding at a mine. A failure
occurs in the rock mass of the Saucito
mine that contains excess water, which
causes a strong entry of water into the
mine above the pumping capacity, thus
stopping production in one of the main
areas. This situation causes the loss of
permits, additional costs and expenses,
and reputational damage. Recovery to
pre-event production levels begins once
management determines it is safe to do
so. (Singular event)
Scenario 5: Action by the government
at a mine. Explosives are stolen in
Fresnillo mine, causing the authorities to
suspend the mine's explosives permit.
Production is halted while an
investigation into the matter is
completed. Once permits have been
restored, production ramps back up to
pre-event levels. (Principal risk.)
143
Fresnillo plc Annual Report and Accounts 2025
2025 LONG-TERM VIABILITY STATEMENT
Scenario 6: Fire in a process plant. A
major fire breaks out at the Veins plant at
the San Julián mine, causing diverse
damage to operating equipment,
significant business interruption and loss
of licences and permits, as well as
reputational and environmental damage.
(Singular event.)
Scenario 7: Total power failure at a
mine. Power is totally lost at San Julián
mine due to a severe winter storm in the
Chihuahua and Durango region,
resulting in business interruption,
additional costs, and failure to meet
established objectives and targets.
(Singular event.)
Scenario 8: Strike breaks out over
union disagreements. Due to
differences in profit sharing and other
demands of unionised employees, a
long-lasting strike breaks out in the La
Herradura mine, causing business
disruption, additional costs and
expenses, reputational damage and
complications with communities near
the mine. (Principal risk.)
The hypothetical scenarios above are
'extremely severe' to create outcomes
that could threaten the viability of the
Group. However, multiple control
measures are in place to prevent and
mitigate any such occurrences and the
likelihood of these risks materialising is
very low. Should any of these scenarios
take place, various options are available
to the Company to maintain sufficient
liquidity to continue in operation,
including the deferral of capital and/or
exploration expenditure. When
quantifying the expected financial
impact and remediation time required
for each of these risks, management
performed benchmarking against the
Group's own experience and against
publicly available information on
relevant, comparable incidents in the
mining industry.
All scenarios were first evaluated using
metals prices based on average analyst
consensus. As no mitigations were
necessary, it was decided that there was
no threat to the viability of the Company.
To create a more stringent test and
further challenge the resilience of the
Group, all scenarios were then overlaid
with scenario one (low metals prices) and
then re-evaluated.
Even with prices stressed by the impact
of precious metals prices, none of the
scenarios in the viability assessment
turned out to be negative. Of the entire
analysis, the lowest level of cash balance
was identified in scenario three (US$
1,543.4 million), with a positive balance.
This is explained by the fact that in 2025,
the Company closed the financial year
with a cash balance of US$2,756.5 million,
which goes a long way towards
addressing the impacts of these types of
risks should they materialise.
Risk management and internal control
systems are in place throughout the
Group. The internal control systems
enable the Directors to monitor key
variables that could impact the liquidity
and solvency of the Group. We are
confident that management can
sufficiently mitigate any situations as
they might occur.
Our risk mitigation and control measures
include a Crisis Committee, while the
Board would also be briefed and
convened as necessary, to respond to
events as they develop. At each level of
our organisation, we have appointed
dedicated personnel responsible for
media management and engaging with
authorities and other stakeholders,
depending on the magnitude of the crisis.
Based on the results of this robust
analysis and having considered the
established controls for the risks and the
available mitigating actions, the
Directors have a reasonable expectation
that the Group will be able to continue in
operation and meet its liabilities as they
fall due over the five-year period of their
detailed assessment. This longer-term
assessment process supports the
Directors’ statements on both viability,
as set out above, and going concern.
144
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
2025 LONG-TERM VIABILITY STATEMENT CONTINUED
The Group’s business activities, together
with the factors likely to affect its future
development, performance and position
are set out above in the Strategic Review
on pages 1-146. The financial position of
the Group, its cash flows and liquidity
position are described in the Financial
Review on pages 47-55. In addition, note
31 to the financial statements includes
the Group’s objectives, policies and
processes for managing its capital; its
financial risk management objectives;
details of its financial instruments; and its
exposures to credit risk and liquidity risk.
In making their assessment of the
Group’s ability to manage its future cash
requirements, the Directors have
considered the Company and Group
budgets, and the cash flow forecasts for
the period to 31 December 2027 (being
the going concern assessment period). In
addition, they reviewed a more
conservative cash flow scenario
using lower silver and gold prices of
US$37.2 /Oz and US$2,549 /Oz
respectively throughout this period,
while maintaining current budgeted
expenditure while only considering
projects approved by the Executive
Committee. This resulted in our current
cash balances reducing over time but
maintaining sufficient liquidity
throughout the period.
The Directors have further calculated
metals prices for a reverse stress test
(US$20.0 /Oz and US$1,570 /Oz for silver
and gold respectively), which are
assumed to be maintained until the end
of 2027. This would result in cash
balances decreasing to minimal levels by
the end of 2027, without applying
mitigations and not using the revolving
credit facility.
Should metals prices remain below the
stressed prices above for an extended
period, management has identified
specific elements of capital and
exploration expenditure which could be
deferred without adversely affecting
production profiles throughout the
period. On the other hand, management
could amend the mining plans to
concentrate on production with a higher
margin to accelerate cash generation
without affecting the integrity of the
mine plans. Finally, to maintain a strong
liquidity, in January 2024 management
acquired a committed revolving credit
facility of US$350 million, which could be
used if needed.
After reviewing all of the above
considerations, the Directors have a
reasonable expectation that
management has sufficient flexibility in
adverse circumstances to maintain
adequate resources to continue in
operational existence for the foreseeable
future. The Directors, therefore, continue
to adopt the going concern basis of
accounting in preparing the annual
financial statements.
145
Fresnillo plc Annual Report and Accounts 2025
GOING CONCERN STATEMENT
This section of the Strategic Report constitutes Fresnillo plc’s Non-Financial Information Statement,
produced to comply with sections 414CA and 414CB of the Companies Act. The information listed is
incorporated by cross-reference.
Environmental
matters
• Sustainability
1
.
• Code of Conduct
2
.
• Recruitment,
selection and
training of
personnel
3
.
• Environment section pages 83-103 • Tailings and
Environmental
incidents.
• Climate change
• GHG emissions.
• GHG intensity.
• Energy intensity.
• Mining & metallurgical
waste.
• Water withdrawal.
• Water intensity.
Company’s employees
• Our People section pages 69-82.
• Safety section pages 74-79.
• Organisational Culture section
page64-66.
• Occupational Health section page
80-82.
• Security.
• Safety.
• Union relations.
• Labour turnover.
• Training hours.
• Injury frequency rates.
• Cases of Occupational
diseases.
• Details of number of cases in
HR matters. See page 66.
• Number of disciplinary
actions. See page 111.
Social matters
• How we report sustainability,
materiality assessment section on
page 61.
• Communities section of the ARA, on
pages 104-109.
• Access to land.
• Licence to
operate
• Economic value distributed.
• Local employment.
• Community investment.
• Number of community
grievances. See page 105
Respect for human
rights
• Sustainability
1
.
• Diversity and
inclusion
1
.
• Code of Conduct
2
.
• Harassment
Prevention Protocol
3
.
• Diversity & Inclusion section on
page71.
• Operating labour commissions in
each business unit, more
information on page 73.
• Awareness training sessions in
harassement prevention. See
page65
• Human resources. • Percentage of women.
• Diversity in talent attraction.
• Gender pay gap.
Anti-corruption and
anti-bribery (ABAC)
matters
• Anti-bribery and
corruption
1
.
• Code of Conduct
2
.
• Donations and
Political
Contributions
3
.
• Promotional
expenses (including
gifts policy)
3
.
• Third-party Due
Diligence
3
.
• Government
relations
3
.
• Governance activities during 2025
included reviews of elements of the
ABAC programme, which were
presented periodically to the Board
and to the Audit Committee. See
page 176.
• During 2025, we continued
performing our third-party due
diligence process, completing 188
assessments: 14 were classified as
high risk, 50 as medium risk, and 124
as low risk. No third parties were
classified as non-recommended or
rejected.
• Corporate Integrity 500 and World’s
Most Ethical Companies by
Ethisphere rankings See page 65.
• Ethics Culture section on page 65.
• Potential actions
by the
government (e.g.
taxes, more
stringent
regulations).
• Completion rate on training
programme for employees.
• ABAC policy certification by
third parties.
• Details of number of cases of
alleged inappropriate
arrangement with suppliers
(some of them related with
alleged bribes). See page 65.
• Ethical conduct. See
page65.
Non-Financial information Policies and guidelines Outcomes Principal risk KPIs
1. https://www.fresnilloplc.com/responsibility/our-approach/bribery-and-corruption/
2. https://www.fresnilloplc.com/responsibility/our-approach/code-of-conduct/
3. Public commitment as part of our Code of Conduct, detail on our stance and procedures available in our intranet policy site.
The Strategic Report which is set out on pages 1 to 146 has been approved by the Board of Directors of Fresnillo plc
Signed on behalf of the Board
Alberto Tiburcio
Director
2 March 2026
146
Strategic Report
Fresnillo plc Annual Report and Accounts 2025
NON-FINANCIAL INFORMATION STATEMENT
Strategically, 2025 has been a year of challenge and opportunity and the Board
played a key role in ensuring that the Company's responses were well
considered.”
Dear shareholder,
Last year, I introduced the Governance Section of our annual
report by focusing on the actions that the Board had taken to
improve the effectiveness of our governance arrangements
during 2024. By contrast, 2025 has been a year during which
the attention of the Board has been more oriented towards
wider business matters. This was partly because of the
opportunities presented by strong precious metals prices but
also due to a number of geo-political and other challenges
that continued to require our vigilance. In this letter, I would
like to highlight some of the areas where the Board’s
engagement with these issues has contributed to Fresnillo’s
development during the year.
Governance and strategy
Strategically, 2025 has been a year of challenge and
opportunity and the Board, supported by a structure that
combines Independent and Non-Independent Directors,
played a key role in ensuring that the Company’s responses
were well considered.
In the months prior to the October announcement of
Fresnillo's intention to acquire Canadian exploration
company Probe Gold Inc., the Board formed a special
committee comprising both Independent and Non-
Independent Directors. This committee met several times
to evaluate the alignment of the proposed transaction with
the Company’s strategy, given its primary focus on Mexico. It
also sought specialist input from the executive team to satisfy
itself and the Board that the transaction would meet the
criteria previously established by the Board to ensure that
any acquisition fulfils the Company’s financial and
operational objectives.
The Board’s decision in July 2025 to terminate the Silverstream
Agreement, which was entered into with Peñoles in 2008, is
another example of the Board’s structure facilitating its review
of strategic options. To ensure that the interests of the
Company’s minority shareholders were safeguarded, the
Independent Directors were asked to examine the proposed
transaction and the reasonableness of the consideration
payable. After evaluating independent advice from BofA
Securities, they were able to conclude that the valuation
offered for the buy-back of the Silverstream Agreement was
fair and in the best interests of Fresnillo's shareholders, despite
the considerable challenges identified during the evaluation
process. Our Senior Independent Director, Dame Judith
Macgregor, explains more about the work of the Independent
Directors in her report on page 161.
Governance and risk
While our Audit Committee takes the lead in monitoring the
Company’s risk management and internal controls
framework, the Board as a whole has also allocated time to
review the work of the executive team in these important
areas. Such reviews have been driven by recent events, for
example, the maturity of the Company’s cybersecurity
arrangements has continued to be a regular topic for Board
discussion during 2025; as has long-term planning in the case
of our Enterprise Resource Planning (ERP) implementation
programme. The Board received regular briefings both
directly and via the Chairman of the Audit Committee on the
processes being put in place to allow the Board to report on
the effectiveness of the material controls in future years. More
information on the work of the Audit Committee can be found
on pages 167 to 179.
Governance and stakeholders
The Board’s three-day Working Meeting in July, which
included a visit to the Herradura Mine, was an opportunity for
members to discuss the main concerns of Fresnillo’s key
stakeholders, particularly the workforce and local
communities. Presentations from the Company’s advisers
setting out investor perspectives on the Company’s
performance and strategic options were helpful in informing
subsequent Board discussions and decisions. More
information about the Board’s programme of activity and
areas of focus during the Working Meeting can be found on
page 159. The Board performance review carried out by
Ceradas during 2025 confirmed the many benefits of holding
an annual Working Meeting in enabling the Board to
understand and assess the risks and opportunities facing
the Company.
Evolution of the Board
In 2024, two new Independent Non-Executive Directors were
appointed to the Board and it has been pleasing to see Rosa
Vázquez and Luz Adriana Ramirez establishing themselves as
valuable contributors to our Board discussions. With Rosa
becoming a member of the Audit Committee in March 2025
and Luz Adriana becoming a member of the HSECR
Committee in March 2026, we look forward to their further
involvement in the work of the Board Committees over the
coming years. Also, in March 2025, Georgina Kessel was
appointed as a member of the Remuneration Committee and
stepped down as a member of the HSECR Committee.
147
Fresnillo plc Annual Report and Accounts 2025
THE CHAIRMAN’S LETTER ON GOVERNANCE 2025
ALEJANDRO BAILLÈRES
Furthermore, our Board performance review indicated strong
levels of satisfaction with the insights and challenge that all
our Directors – both Independent and Non-Independent –
have brought to the Board’s discussions during the year. Last
year, we announced that Alberto Tiburcio (who was appointed
to the Board in May 2016 and has chaired the Audit
Committee since 2018) would stand for re-election as an
Independent Non-Executive Director to enable, among other
things, the Audit Committee to oversee the execution of some
significant developments for which it is responsible. As there is
still much to do in relation to the change in auditor in 2027, it
will be useful for the Company that he oversees the transition,
and the ongoing embedding of changes resulting from
Provision 29 of the Code. Given that the Board continues to
consider Alberto to be independent in character and
judgement, the Nominations Committee has proposed that
Alberto should stand for re-election at the 2026 Annual
General Meeting 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
Directors at the 2026 AGM, notwithstanding that she will reach
the ninth anniversary of her appointment to the Board soon
after that AGM. Dame Judith has been scrupulously
independent in her role as an Independent Non-Executive
Director and, in view of the other Board changes being made
this year, we consider that it will be highly beneficial for 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 Tiburcio and Dame Judith Macgregor before
publication of the Notice of the meeting for the 2026 AGM.
Looking forward
As a Board, we enter 2026 with a mixture of positive but
realistic anticipation. We know that we will need to maintain
and build on our progress, but in that pursuit, I am confident
that my Board colleagues will continue to provide solid and
sound advice to me and the Executive Team. I would therefore
like to thank them all for their wisdom and efforts which
contributed so much to the work of the Board and its
Committees during the year.
I would also like to conclude by expressing my sincere
appreciation to our shareholders for their continued support
and to all Fresnillo plc’s personnel for their hard work and
contributions to our collective efforts.
Yours faithfully,
Mr Alejandro Baillères
Chairman of the Board
2 March 2026
148
Governance
Fresnillo plc Annual Report and Accounts 2025
THE CHAIRMAN’S LETTER ON GOVERNANCE 2025 CONTINUED
ALEJANDRO BAILLÈRES
Governance framework
The Board
The main role of the Board is to set the corporate values which underpin the culture by which the Group continues to operate. The Board is
responsible for the supervision of the management of the Group’s activities including the implementation of the Group’s long-term plans and
commercial strategy.
The composition of the Board is structured to ensure that no one individual can dominate its decision-making processes.
The Chair
• Guides and leads the Board.
• Oversees the Group's governance framework.
• Promotes a culture of openness and debate.
The Senior Independent Director (SID)
• Acts as a sounding board for the Chair and intermediary for the
other Directors when necessary.
• Is available to shareholders if they have concerns that cannot be
resolved through other channels.
The Independent Non-Exectuive Directors (INEDS)
The independent members of the Board engage with management
through their participation in the Board Committees.
The Non-Independent Non-Executive Directors (NED)
The non-independent members of the Board by virtue of either (a)
having been appointed to the Board by Peñoles pursuant to the
Relationship Agreement, (see further details on page 160) or (b) having
been appointed for more than nine years and no longer considered by
the Board to be independent
.1
The Non-Independent Non-Executive Directors appointed by Peñoles
maintain regular contact with the Executive Committee to support and/
or challenge as appropriate.
The Non-Executive Directors challenge management in an objective and
constructive manner.
The Company Secretary
The Company Secretary, working alongside the Chairman and
Management, ensures that the Board has the policies, processes,
information, time and resources it needs in order to function
effectively. The advice and services of the Company Secretary (whose
appointment and removal are matters reserved for the Board) are
also available to the Directors. The Board also regularly receives advice
on UK corporate governance and legal developments from its UK
legal and corporate governance advisors.
The respective responsibilities of the Chairman and the Senior
Independent Director are set down in a written statement (which may
be found in the Terms of Reference section of the Company’s website).
Board Committees
The Board relies on the advice and recommendations provided by the
Board Committees. Committee members have the requisite skills and
experience to enable their Committee to review and focus on specific
topics on behalf of the Board. Each Committee operates within clearly
defined terms of references and reports regularly to the Board.
Standing Committees
Nominations Committee
Chair: Alejandro Baillères
The Nominations Committee
makes recommendations on the
structure, size and composition
of the Board and its Committees.
This includes succession
planning for Directors and other
senior executives.
Audit Committee
Chair: Alberto Tiburcio
The Audit Committee is
responsible for overseeing all
financial reporting, external and
internal audits, whistleblowing,
related-party transactions, as well
as risk and internal control
matters.
Health, safety, environment and
community relations (HSECR)
committee
Chair: Arturo Fernández
The focus of the HSECR Committee
is to monitor the systems that are in
place to oversee the Group’s health,
safety, environment and community
relations activities.
Remuneration Committee
Chair: Alberto Tiburcio
The Remuneration Committee is
responsible for oversight of the
Group’s approach to
remuneration and setting the
key performance indicators for
the Executive Committee.
The Executive Committee
Octavio Alvídrez
Chief Executive Officer
Mario Arreguín
Chief Financial Officer
Tomás Iturriaga
Chief Operating Officer Central
Daniel Diez
Chief Operating Officer North
Marcelo Ramos
Vice President of Business Development
Guillermo Gastélum
Vice President of Exploration
The Executive Committee is responsible for the operational leadership and
management of the Group and is headed by the Chief Executive Officer.
The responsibilities of the Chief Executive Officer are set down in a
written statement which may be found in the Terms of Reference
section of the Company’s website.
Special Committees
From time to time, the Board establishes special committees
consisting of a sub-group of Directors, with a specific, temporary
purpose and remit. During 2025, a Special Committee was established
to consider in detail aspects of the Probe Gold Inc. acquisition. This
Committee met four times.
Ethics Committee (previously the Honour Commission)
The Ethics Committee consists of the Chief Executive Officer, the
Human Resources Head, the Internal Audit Director and the General
Counsel and Compliance Officer.
The Ethics Committee is responsible for ensuring that ethical
business standards within the Group are maintained, principally
through its role in reviewing and determining the actions to be taken
in response to all matters raised through the Whistleblowing Hotline
and other pathways to report misconduct such as fraud, corruption,
or illegal activities.
1 The appointments of Charles Jacobs and Fernando Ruiz were made outside the scope of the Relationship Agreement.
149
Fresnillo plc Annual Report and Accounts 2025
GOVERNANCE AT A GLANCE
For further information on the activities of the Board during the year please see pages pages 156-157
For the Nominations
Committee Report see
pages 163-166
For the Audit Committee
Report see pages 167-179
For the HSECR Committee
Report see pages 56-57
For the Directors'
Remuneration Report
see pages 180-191
Alejandro Baillères
Chairman
Charles Jacobs
Non-Executive Director
Arturo Fernández
Non-Executive Director
Appointed: 16 April 2012 as Director and 28 April
2021 as Chairman
Appointed: 16 May 2014 Appointed: 15 April 2008
3/4
2
1/1 3/3 4/4 4/4 4/4
Current external listed company
directorships
All four of the BAL Listed Entities (as defined
below) and Fomento Económico Mexicano
S.A.B. de C.V.
None. All four of the BAL Listed Entities. and Fomento
Económico Mexicano S.A.B. de C.V. (Alternate
Director).
Other key current appointments
Mr Baillères is Chairman of Grupo BAL and a
member of the Board of Trustees of Instituto
Tecnológico Autónomo de México. He is
Chairman of the Board of Directors of Centro
Cultural Manuel Gómez Morin, A.C.
Mr Jacobs is co-head of UK Investment
Banking at JP Morgan.
Mr Fernández is rector and a member of the
Board of Trustees of Instituto Tecnológico
Autónomo de México and a member of the
board of Grupo Financiero BBVA México S.A. de
C.V.
Key strengths and experience
• Insurance and related financial services in
Mexico.
• Broad board-level commercial experience in
Mexico.
As Chairman of Grupo BAL and former Chief
Executive Officer of Grupo Nacional Provincial
(a leading insurance company in Mexico), Mr
Baillères brings knowledge and experience of
Mexican and international business to his role.
• Board and governance experience.
• Rare combination of legal and investment
banking experience with a focus on capital
markets, mining and metals.
Mr Jacobs’ background as the former Senior
Partner of global law firm, Linklaters, and head
of their mining sector, along with his previous
Non-executive Directorships at Investec and
the Shanghai International Financial Advisory
Council, means he brings 35 years of global
experience in governance, mining, and
corporate finance, as well as legal and
regulatory matters to the boardroom.
• International economics and public policy.
• Directorships of several Mexican companies.
Mr Fernández's career brings together a solid
academic economics background, many years’
experience within the Mexican public policy
arena and broad commercial experience
(through board directorships of leading
businesses in a number of sectors in Mexico).
2. The Chairman was unable to attend the Board meeting in July 2025 as a result of being requested to attend a high-level government meeting at short notice. Four
scheduled Board meetings were held during the year. In October 2025, an additional meeting was held at short notice to discuss and approve the Probe Gold Inc.
acquisition. This meeting was attended by all of the Directors except Luz Adriana Ramírez who was unable to attend because of a prior commitment, but discussed her
views on the transaction with the Chairman before the meeting.
150
Governance
Fresnillo plc Annual Report and Accounts 2025
BOARD OF DIRECTORS
NON-INDEPENDENT NON-EXECUTIVE DIRECTORS
Fernando Ruiz
Non-Executive Director
Eduardo Cepeda
Non-Executive Director
Appointed: 15 April 2008 Appointed: 24 June 2021
4/4 4/4 4/4
Current external listed company
directorships
Kimberly Clark de México S.A.B. de C.V.
(Alternate Director), Grupo Mexico S.A.B. de C.V.
and two BAL Listed Entities (Grupo Nacional
Provincial S.A.B., and Grupo Palacio de Hierro
S.A.B. de C.V.).
Three BAL Listed Entities, (Industrias Peñoles,
S.A.B. de C.V., Grupo Nacional Provincial, S.A.B.,
Grupo Palacio de Hierro, S.A.B. de C.V.), Bolsa
Mexicana de Valores, S.A.B. de C.V. and RLH
Properties, S.A.B. de C.V.
Other key current appointments
Mr Ruiz is a Non-Executive Director of Rassini
S.A.P.I de C.V. ArcelorMittal Mexico S.A. de C.V.
and Cuatro B Materiales de Construcción,
S.A.P.I. de C.V.
Mr Cepeda is a Director of Valores Mexicanos
Casa de Bolsa, S.A. de C.V. and EnerAB, S. de R.L.
de C.V.
Key strengths and experience
• Mexican tax and accounting experience.
• International board and audit committee
experience.
Mr Ruiz was, until 2006, managing partner of
Chevez, Ruiz, Zamarripa y Cia., S.C., tax advisers
and consultants in Mexico and now serves on
the board and audit committees of several
Mexican and international companies. He has
extensive knowledge of Mexican tax and
accounting issues.
• Finance, international markets and banking
in the public and private sectors.
Mr Cepeda was President and Senior Country
Officer for Mexico City at JP Morgan from 1993
to 2019 and Chief Executive Officer of JP
Morgan Wealth Management Latin America,
also based in Mexico City from 2009 to 2012. Mr
Cepeda has served as Vice President of the
Mexican Bank Association and has also been a
board member of the Woodrow Wilson
International Center for Scholars and a
counsellor in several organisations related to
culture, education and health.
Committee membership key
Board
Nominations Committee
Audit Committee
Health, Safety, Environment and
Community Relations (HSECR)
Committee
Remuneration Committee
Chairman
NOTE
Some Directors hold directorships of some, or all of the following, listed companies. These are all part of
the consortium known as Grupo BAL (along with Fresnillo plc, see also page 185: Industrias
Peñoles S.A.B. de C.V., Grupo Palacio de Hierro S.A.B. de C.V., Grupo Nacional Provincial S.A.B. and Grupo
Profuturo S.A.B. de C.V. In this section, these companies are jointly or individually referred to as the BAL
Listed Entities.
151
Fresnillo plc Annual Report and Accounts 2025
Dame Judith Macgregor
Senior Independent Non-
Executive Director
Alberto Tiburcio
Independent Non-
Executive Director
Georgina Kessel
Independent Non-
Executive Director
Guadalupe De La Vega
Independent Non-
Executive Director
Appointed: 23 May 2017
Appointed: 4 May 2016 Appointed: 30 May 2018 Appointed: 29 May 2020
4/4 4/4 4/4 5/5 3/3 4/4 1/1 5/5 2/3
4
4/4 1/1 3/3
Current external listed
company directorships
None. Mr Tiburcio is an Independent
Non-Executive Director of
Fomento Económico Mexicano,
S.A.B. de C.V., Coca-Cola FEMSA,
S.A.B. de C.V. and two BAL Listed
Entities (Grupo Nacional
Provincial S.A.B. and Grupo
Palacio de Hierro S.A.B. de C.V.).
None. Ms de la Vega is a Director of
Sitios Latinoamérica, S.A.B. de
C.V.
Other key current
appointments
Dame Judith is Vice Chair of the
University of Southampton’s
Governing Council and Chair of
the International Strategic
Advisory Group to UK Research
and Innovation. She is a Member
of the Board of Trustees of the
University of Cape Town
Foundation and the Caradon
Lecture Trusts.
Mr Tiburcio is an Independent
Non-Executive Director of Grupo
Financiero Scotiabank Inverlat,
S.A. de C.V. (a Mexican subsidiary
of The Bank of Nova Scotia),
Profuturo Afore S.A. de C.V.,
Transparencia Mexicana, and a
member of the Board of Trustees
of Instituto Tecnológico
Autónomo de México and a non-
independent Board Member of
Tankroom S.A.P.I. de C.V.
Ms Kessel is a Non-executive
Director of Grupo Financiero
Scotiabank Inverlat, S.A. de C.V. (a
subsidiary of The Bank of Nova
Scotia) serving as Chair of the
Board and member of the Risk,
Audit, Human Resources and
Corporate governance
Committees. Ms Kessel is also a
member of the board of trustees
of Instituto Tecnológico
Autónomo de México and a non-
resident fellow of the Centre on
Global Energy Policy of Columbia
University.
Ms de la Vega is a Director of a
number of non-listed companies
including Almacenes
Distribuidores de la Frontera, S.A.
de C.V., Maximus Inmobiliaria, S.
de R.L. de C.V., Citibanamex,
Coparmex, and Altec
Purificación, S.A. de C.V. She is
also a Director of ITESM (Tec de
Monterrey) EISAC, and member
of the Consejo Asesor de
Desarrrollo Económico Regional
y Relocalización.
Key strengths and
experience
• International diplomatic
experience.
• Government relations in
resource-rich countries.
• International research
collaboration.
• Wide-ranging managerial and
Equity, Diversity and Inclusion
(EDI) experience.
Dame Judith’s distinguished
career as a British diplomat
brings a range of international
experience to her role. She has
worked closely with and
promoted the interests and
profiles of UK companies across a
wide range of sectors, including
the mining sector, in a number of
countries including Mexico.
As Senior Independent Director,
Judith is available to shareholders
if they have concerns that have
not been resolved through the
normal channels of Chairman,
Chief Executive Officer, Chief
Financial Officer or Head of
Investor Relations.
• International and Mexican
audit and accountancy and
Mexican tax experience.
• Mexican and international
board and audit committee
experience.
Mr Tiburcio was the Chairman
and CEO of Mancera S.C. (the
Mexican firm of Ernst & Young
LLP) from January 2001 until his
retirement in June 2013, having
been a partner for more than 30
years. He has served as auditor
and advisor to many prestigious
Mexican companies and now sits
on the boards and audit
committees of important
Mexican companies and
institutions, thus bringing
Mexican tax and corporate
governance knowledge as well as
Mexican and international audit
and accounting experience to
the Board.
• Ministerial experience within
Mexican government.
• Knowledge of Mexican energy
sector.
Ms Kessel has broadened the
Board’s energy and climate
change expertise having served
as Minister of Energy from 2006
to 2011 and chaired the Board of
Trustees of the Federal Electricity
Commission. She has previously
held senior board positions at
Iberdrola, S.A., Nacional
Financiera and the National Bank
of Foreign Trade. She also
chaired the Board of Directors of
Petróleos Mexicanos. Ms Kessel
also served as CEO of the
National Bank of Works and
Public Services. She was
previously adviser to the
Chairman of the Federal
Competition Commission and
Head of the Investment Unit at
the Ministry of Finance and
Public Credit of Mexico.
• Broad business leadership
experience within Mexico and
internationally.
• Community and economic
development programme
leadership within Mexico.
Ms de la Vega has held senior
executive roles in a variety of
Mexican businesses spanning a
range of sectors and she has also
been an investor in a number of
those companies. She also serves
on the boards of educational and
cultural institutions and has a
strong commitment to small
enterprises working in health,
economic and community
development.
4. Georgina Kessel was appointed to the Remuneration Committee in March 2025 and therefore did not attend the Remuneration Committee Meeting held in February 2025.
152
Governance
Fresnillo plc Annual Report and Accounts 2025
BOARD OF DIRECTORS
INDEPENDENT NON-EXECUTIVE DIRECTORS
Héctor Rangel
Independent Non-
Executive Director
Luz Adriana Ramírez
Independent Non-
Executive Director
Rosa Vázquez
Independent Non-
Executive Director
Appointed: 24 June 2021
Appointed: 21 May 2024 Appointed: 21 May 2024
4/4 5/5 4/4 4/4 4/5
5
Current external listed
company directorships
Mr Rangel is an Independent
Non-Executive Director of a BAL
Listed Entity (Grupo Nacional
Provincial, S.A.B.).
Ms Ramírez has served as an
independent director on the
Board of Directors of Fibra Mty
S.A.P.I. de C.V. (FMTY14) since
2020 and is a member of its
Audit and Corporate Practices
committees.
None.
Other key current
appointments
Mr Rangel is the President of
BCP Securities Mexico, a joint
venture with BCP Securities LLC,
and presently serves on the
board of Polyforum Cultural
Siqueiros.
Ms Ramírez is a Non-Executive
Director of Scotiabank Inverlat,
S.A. de C.V. (a subsidiary of The
Bank of Nova Scotia), and is a
member of its Audit and Human
Resources committees.
She is also Vice President for the
Mexican Association of Executive
Women (AMME).
Ms Vázquez is an active member
of the Risk & Audit Committee
and chairs the Sustainability
Committee at Bocar Group.
Additionally, she serves as an
independent Director of Insignia
Life, S.A. de C.V., where she chairs
the Investment Committee and
serves on the Audit Committee.
Key strengths and
experience
• Finance, international markets
and banking.
Mr Rangel was the Chief
Executive Officer of Nacional
Financiera S.N.C. and Banco
Nacional de Comercio Exterior
and a member of Mexico’s
cabinet under President Felipe
Calderon. Mr Rangel held various
executive positions with the
Grupo Financiero Bancomer
from 1991 until 2008, including
Chairman of the Board. Mr
Rangel has also been President
of the Mexico Bank Association
and President of the Mexican
Business Council. Mr Rangel
served on the Company’s Board
as an Independent Non-
executive Director from April
2008 to January 2009.
• Commercial, consumer and
industrial finance and
business.
Ms Ramírez served as Managing
Director/Country Manager of
VISA in Mexico for almost 11 years.
Ms Ramírez has served as Vice
President in the Committee of
the Executive Council of Global
Companies (CEEG) for six
consecutive years. She worked
for 18 years at General Electric,
within various businesses in the
industrial, corporate and financial
areas. Ms Ramírez is a dynamic
senior executive who is able to
draw on a successful career
across multiple industries. She is
a strong leader, motivating
teams to deliver on strategy and
objectives.
• Governance, compliance and
Regulatory.
• Sustainability.
• Risk and Audit.
Ms Vázquez 30-year professional
career began at DuPont. She also
served as President and Country
Manager of The Chemours
Company between 2015 and
2023.
Ms Vázquez was a board
member of the ICC International
Chamber of Commerce, ANIQ
and DuPont-Duwest. She is a
strong people leader with a track
record of developing talent,
motivating teams, and driving
engagement, and her experience
and technical knowledge adds
value to the Board, particularly
an orientation to best practices
and governance. She holds a
degree in Public Accounting
from Tec de Monterrey (ITESM), a
diploma in Finance from ITAM, as
well as a Board Member Diploma
from IPADE.
Board
Nominations Committee
Audit Committee
Health, Safety, Environment
and Community Relations
(HSECR) Committee
Remuneration Committee
Chairman
5. Rosa Vázquez was appointed to the Audit Committee in March 2025 and therefore did not attend the Audit Committee
meeting held in February 2025.
153
Fresnillo plc Annual Report and Accounts 2025
Octavio Alvídrez
Chief Executive Officer
Mario Arreguín
Chief Financial Officer
Guillermo Gastélum
Vice President of Exploration
Appointed: 15 August 2012
Appointed: 15 April 2008 Appointed: 1 January 2021
Committee membership
Mr Alvídrez is invited to attend Board, Audit
Committee, HSECR Committee and Remuneration
Committee meetings.
Mr Arreguín is invited to attend Board and Audit
Committee meetings.
Mr Gastélum is invited to attend Board
meetings.
Key strengths and experience
• Mine management within Mexico.
• UK investor relations.
• Group Treasurer.
Mr Alvídrez has extensive experience within the
mining industry having previously held the position of
General Manager of the Madero mine operated by
Peñoles, which is one of Mexico’s largest mines. Mr
Alvídrez joined the Peñoles Group in August 1988,
since then he has held a number of senior operational
and financial positions across Peñoles and Fresnillo.
Mr Alvídrez is a former Director of the Lowell Institute
for Mineral Resources of the University of Arizona. Mr
Alvídrez continues being a Board member, and was a
previous President of The Silver Institute. He is a
member of the Mexican Mining Chamber and a Vice-
president of the Advisory Board of the School of Mines
of the University of Guanajuato, Mexico.
• Accountancy and treasury.
• Investment banking.
Mr Arreguín was previously employed by Peñoles
where he held the position of Chief Financial Officer
for 11 years and Group Treasurer for six years prior to
this. Mr Arreguín has a background in investment
banking and project management.
• Senior mining exploration experience in
Mexico.
• Geological engineering background.
Mr Gastélum has extensive experience in the
Mexican mining sector, most recently as
Deputy Director of Northern Exploration at
Fresnillo. Prior to this, Mr Gastélum was
Regional Manager of Exploration at Peñoles. He
started his career with Peñoles 34 years ago. He
was appointed as Vice President of Exploration
of Peñoles in 2007, having previously served as
Subdirector of Exploration for northern Mexico
and Chile and Regional Exploration Manager.
Tomás Iturriaga
Chief Operating Officer Central
Daniel Diez
Chief Operating Officer North
Marcelo Ramos
Vice President of Business Development
Appointed: 19 November 2020 Appointed: 1 December 2023 Appointed: 30 July 2024
Committee membership
Mr Iturriaga is invited to attend Board meetings and
on occasions the Audit Committee and HSECR
Committee.
Mr Diez is invited to attend Board meetings and on
occasions the Audit Committee and HSECR
Committee.
Mr Ramos is invited to attend Board meetings
and on occasions the Audit Committee and
HSECR Committee.
Key strengths and experience
• Senior operational experience in Mexico and
North America.
• Strong mining background.
Mr Iturriaga brings more than 20 years of
professional experience and a significant track
record in the mining sector. In May 2018, Mr Iturriaga
became Director of Health, Safety, Environment and
Community Relations at Peñoles. Prior to joining
Peñoles, Mr Iturriaga held several positions at
Goldcorp, such as General Manager of Los Filos
mine, Chief Operating Officer Mexico and Regional
Vice-President and General Manager Mexico. He also
held the position of Vice President North American
Operations at Capstone Mining Corp in Canada and
Vice President of Operations and Country Manager
for Mexico of Endeavour Silver Corp.
• Senior operational experience in South America,
Australia and Pakistan.
• Strong mining background.
Mr Diez brings more than 25 years of sector experience
and a broad understanding of the mining industry,
acquired through significant corporate, operational and
project development roles in Chile, Australia, Pakistan
and Brazil. He joined from Gold Fields where he led its
Chile operations overseeing the development of the
Salares Norte project, a high-grade, gold-silver, open pit
deposit situated in the High Andes of northern Chile.
Previously he held several senior leadership positions at
Yamana Gold. He has also served as Mining Expert
(LATAM) at McKinsey & Company and development
roles at both Xstrata and Antofagasta. He was a Board
member of Minera Alumbrera Ltd. and has also been
Chairman of the Board of Directors of MARA a (joint
venture between Yamana, Glencore and Newmont) and
Minera Alumbrera Limited.
• Senior business development experience in
North and South America, Australia and Asia.
• Strong mining background.
Mr Ramos was appointed to Fresnillo plc in 2024
having previously held the role of Vice President
of Business Development at Baluarte Minero
(part of Peñoles). Mr Ramos has more than 20
years' of international metals and mining sector
experience across different commodities such
as gold and base metals, primarily leading M&A
activities across different regions including
North America, South America, Australia and
Asia. Prior to working in Peñoles, he was Vice
President of Business Development of Oceana
Gold Corporation in Colorado US. Mr Ramos has
a Bachelor's degree of Industrial Engineering
from the Universidade Federal do Rio de Janeiro,
and an MBA from the Alliance Manchester
Business School.
154
Governance
Fresnillo plc Annual Report and Accounts 2025
BOARD OF DIRECTORS
EXECUTIVE COMMITTEE
As a commercial company listed on the London Stock Exchange,
Fresnillo is required under the FCA UK Listing Rules to comply
with the Provisions of the Financial Reporting Council’s UK
Corporate Governance Code (the Code – a copy of which can be
found on the website of the Financial Reporting Council
www.frc.org.uk) or otherwise explain its reasons for non-
compliance. The following statement is therefore made in respect
of the year ended 31 December 2025.
For the financial year ended 31 December 2025 the Company
has complied with the provisions of the Code other than as set
out below:
• Code Provision 9 provides that ‘the chair should be
independent on appointment’. Mr Alejandro Baillères, who
was appointed as Chairman on 29 April 2021, was appointed to
the Board by Peñoles pursuant to the Relationship
Agreement (see page 160); thus, at the time of his
appointment, he was not independent. Mr Alejandro Baillères
is beneficially interested in more than 50% of the share capital
of the Company through his interest in Industrias Peñoles
S.A.B. de C.V., the Company’s controlling shareholder. Having
served as Deputy Chairman for more than three years – and
having received guidance for many years from Mr Alberto
Baillères, the previous Chairman – the Board considers that Mr
Alejandro Baillères possesses significant knowledge and
experience of the Company to carry out the role of the
Chairman. The Board considers that the continued oversight
of the Company’s strategic and operational integrity through
its membership of the Peñoles Group enhances the quality of
its corporate governance rather than detracts from it,
especially as related-party transactions are reviewed and
approved by Independent Directors and the Audit
Committee. The Board therefore believes that Mr Alejandro
Baillères’ involvement is a governance strength since it
assures the Chairman’s alignment with all shareholders’
interests. Given Mr Alejandro Baillères’ experience and
understanding of Mexican business and its regulatory context,
this assessment gains further validity in the continuing
political and social environment in Mexico. Notwithstanding
the expectations of the Code, the Board values and endorses
Mr Alejandro Baillères’ chairmanship of the Company. The
size, composition and balance of skills on the Board, including
its independence and diversity as well as the existence of a
Senior Independent Director and the adequacy of the
succession plans, were assessed as part of the Board
performance evaluation exercise during the year, and were
considered to be highly satisfactory.
• Code Provision 19 provides that the chair should not remain in
post beyond nine years and the nine-year period is calculated
from first being appointed to the Board. Mr Alejandro Baillères
was first appointed to the Board in April 2012. As explained
above, the Board and Company benefit greatly from Mr
Alejandro Baillères' significant and relevant Board and industry
knowledge and experience. The Board believes that Mr
Alejandro Baillères' continued appointment as Chair of the
Company is in the best interests of the Company and the
Company’s shareholders. As explained above, Mr Alejandro
Baillères' tenure is considered in the Board performance review
exercise and the Board is content that there is value in this
continuity and that there is sufficient independent
representation from other Board members.
• Code Provision 32, which provides that the Board should
establish a Remuneration Committee of Independent Non-
Executive Directors with a minimum membership of three. In
addition, the Chair of the Board can only be a member if they
were independent on appointment. The Chairman of the
Company, Alejandro Baillères, who was not independent at the
time of his appointment, is a member of the Remuneration
Committee. The Board believes that Mr Alejandro Baillères’
experience and knowledge of both the Group and the Mexican
market – and his considerable contribution to the Remuneration
Committee’s deliberations – justifies his membership of the
Remuneration Committee. Mr Alejandro Baillères is not involved
in matters concerning his own remuneration. The other
members of the Remuneration Committee are Alberto Tiburcio,
Guadalupe de la Vega and Georgina Kessel, who are all
Independent Non-Executive Directors.
• Code Provision 36, which provides that remuneration
schemes should promote long-term shareholdings by
Executive Directors that support alignment with long-term
shareholder interests. The Company’s approach to executive
remuneration is explained in the Directors’ Remuneration
Report on pages 180-191. The Company does not use share-
based forms of remuneration because it has not been a
common form of remuneration in Mexico. The annual bonus
scheme sets targets which are aligned to the long-term
strategic objectives so that these priorities are embedded
within the day-to-day activities of the Company’s business.
Information about how the Principles of the Code were applied
and compliance, or otherwise, with the Code’s Provisions may be
found in the following sections of this report, which also provide
cross-references to other sections of the report and/or the
Company’s website (www.fresnilloplc.com) where more detailed
descriptions are available.
Board Leadership and Company Purpose Page
A Board effectiveness 162
B Purpose, values, strategy and culture 157
C Board decision-making 156-157
D Engagement with stakeholders
20-26, 157-158
and 161
E Oversight of workplace policies and practices
28, 65-82 and
157
Division of Responsibilities
F Role of the Chair 149 and 160
G Independence 160
H External commitments and conflicts of interest 160
I Board resources 149
Composition, Succession and Review
J Succession Planning and Recruitment 165
K Board composition and skills 150-154, 166
L Board evaluation 162
Audit, Risk and Internal Control
M
Financial reporting and significant accounting
matters
External audit and internal audit – independence
and effectiveness
170-175
N Fair, balanced and understandable assessment 179
O Risk management and internal controls 158, 176-179
Remuneration
P Remuneration objectives and key responsibilities 180
Q Remuneration policy 192-196
R
2025 remuneration outcomes:Annual Report on
Remuneration
184-191
The following documents are available on the Company’s
website:
• Schedule of Matters reserved for the Board.
• Statement of Responsibilities of the Chairman, Chief Executive
Officer and Senior Independent Director.
• Terms of Reference: Audit Committee, HSECR Committee,
Nominations Committee and Remuneration Committee.
• Directors’ Remuneration Policy.
155
Fresnillo plc Annual Report and Accounts 2025
UK CORPORATE GOVERNANCE CODE COMPLIANCE STATEMENT
Effective board
The Board consists entirely of Non-Executive Directors and its
role is therefore essentially supervisory. The leadership and
management of the Company’s day-to-day operations is the
responsibility of the Executive Committee (comprising the
Chief Executive Officer, Chief Financial Officer, Vice President
of Exploration, the Vice President of Business Development,
the Chief Operating Officer Central and the Chief Operating
Officer North). The Non-Independent Non-Executive members
of the Board maintain regular contact with the Executive
Committee to challenge and/or support as appropriate.
This structure creates two levels of oversight for the Executive
Management, initially from the Non-Independent Non-
Executive Directors, and then from the Board as a whole,
including the Independent Non-Executive Directors.
The independent members of the Board engage with
Executive Management through their participation in the
Board Committees, particularly the Audit Committee and the
HSECR Committee. Committee meetings provide most of the
INEDs with an opportunity to discuss operational and financial
matters in detail with management before they are presented
to the Board as a whole. Examples of such detailed
engagement through the Committees typically include the
oversight of financial reporting, risks and internal controls,
reviews of plans to improve the safety culture across the
Group and diversity and inclusion initiatives.
The biographies of the Board members and the Executive
Committee are detailed on pages 150 to 154, outline the wide
range of experience and skills available to the Company. The
Board members continue to ensure that the business model
and strategy, described on pages 10 to 17 and agreed by the
Board, are delivered for the benefit of the Company’s
stakeholders. The section 172 Statement on page 27 examines
how those different categories of stakeholders are considered.
Board activities during 2025
Strategic direction
The Board supervises the implementation of both the Group’s
long-term plans and commercial strategy. The strategy itself -
to explore, develop, operate and sustain – has been largely
unchanged for many years. Further information on the
strategy is set out in the Strategic Report on pages 12 to 17.
Regular management reports to the Board focus on these
four strategic priorities. The primary focus of the Board in
respect of exploration has been on acquisition opportunities
both within Mexico and further afield, primarily the acquisition
of Probe Gold Inc. in Canada that was approved by the Board
and announced in October 2025. More information can be
found on pages 10 to 17 of the Strategic Report.
The challenge for the Board has been less about the strategy
itself and more about the context within which the Company
seeks to pursue its strategy. This was an important driver for
the Working Meeting in July which enabled Board members
to take time to consider in detail some of the key political,
legislative, environmental (particularly safety and
consumption reduction), technological (with particular focus
on cybersecurity and artificial intelligence), ESG and
competitive factors which impinge on the Company’s ability
to deliver the strategy. For more information on the Working
Meeting see page 159.
On behalf of the Board, the HSECR Committee reviews many of
the factors which enable the Company’s activities to be
sustainable. However, the Board itself monitored the Company’s
sustainability performance in relation to energy efficiency,
tailings dams, water consumption and climate change.
Approval of business plan and budget – principal decision
Each year the Board reviews the Business Plan and Budget for
the following year. This is usually at the October Board
meeting with follow-up reviews early in the following year. This
is an important annual decision for the Board which aligns
with the longer-term Strategic Plan and Company Purpose; it
considers site-specific priorities and challenges, sets the
annual production targets and the resources necessary to
achieve them, while responsibly managing the impacts of the
Group’s activities. Even though approving a business plan and
budget is a recurring decision year-on-year, the relevant
context and circumstances may change annually; the Board
therefore considers strategies and actions that might affect
stakeholders differently each year. In October 2025, the Board
approved the 2026 Business Plan and Budget.
The Executive Committee presents the Business Plan and
Budget for the Board’s discussion and approval. The discussion
and decision-making of the Board is complemented by a pro-
forma template, distributed within the Board papers, that
identifies relevant stakeholder considerations that are required
to be taken into account, with a focus on:
• Generating long-term value for all stakeholders in a
challenging and changing environment characterised by
increasing demands and expectations.
• Prioritising social and environmental performance to
maintain the trust of stakeholders, providing essential
support for our business model.
156
Governance
Fresnillo plc Annual Report and Accounts 2025
BOARD LEADERSHIP AND COMPANY PURPOSE
The factors, as set out in section 172 of the Companies Act 2006, that the Board considered in approving the 2026 Business Plan
and Budget were as follows:
Employees and unions • Enhance critical risk control protocols and safety culture.
• Embed zero-tolerance for fatal accidents.
• Continue deploying the Group’s health and safety strategies, including industrial hygiene and
ergonomics, the prevention of psychosocial risks, as well as wellbeing and mental health
programmes.
• Pursue joint strategy with the Union in order to increase safety & labour productivity.
• Promote wellbeing programmes.
• Follow up on safety programme 'I Care, We Care'.
Local communities • Strengthen community relations and licence to operate.
• Continue community programmes aligned to the United Nations Sustainable Development
Goals (SDGs): health and wellbeing, quality education, decent work and economic growth,
water and sanitation, life of terrestrial ecosystems, reading skills and reforestation.
• Promote engagement on the challenges and benefits of the mining industry.
Government and
regulators
• Continue to maintain high standards of corporate governance and adherence to regulations.
Contractors and
suppliers
• Improve contractor management.
• Align health and safety practices of contractors; reinforce safety protocols.
Minority shareholders • Ensure that the dividend payment policy is applied in line with the financial and operational
performance of the Company.
• Consider aspects such as environment, health, safety, communities, growth projects, licence to
operate, compliance with regulations, transparency and increases in reserves and resources.
Environmental
considerations
• Maintain continuous implementation of best practices regarding environmental, hazardous
waste and mineral waste management (including tailings storage facilities).
• Continue to explore and implement clean and renewable energy alternatives.
• Continue to review the TCFD (Task Force for Climate Related Financial Disclosures) objectives.
Customers • Ensure greater certainty in specifications of concentrate supply to improve accuracy of assay
sampling. Deliver the best product quality for efficient treatment processes.
Special Dividend - Principal Decision
In March 2025, the Board agreed a one-off special dividend of
41.8 US cents per share, equivalent to US$308.0 million in
addition to the Ordinary dividend of 26.1 US cents per share
announced at the same time. This decision was taken after a
comprehensive review of the Group's financial position, the
expectations of the Company’s independent shareholders
concerning the use of cash, the Company’s strong balance
sheet and the positive free cash flow that the Group is
expecting to generate in the long-term.
Monitoring performance
At each Board meeting in 2025, the members of the Executive
Committee reported on the quarterly performance of the
business, focusing specifically on operations, exploration,
HSECR and culture and ethics. The CEO and Chief Operating
Officers presented updates on mining activities while the VP
of Exploration provided updates on exploration initiatives. The
CFO also presented a summary of the quarterly financial
performance with particular emphasis on the performance of
the business compared to the previous years and to the
approved budget.
The performance of members of the Executive Committee
was assessed by the Remuneration Committee by reference
to previously agreed performance metrics when determining
the bonus awards for the year. Further details of these
outcomes for 2025 are set out in the Directors’ Remuneration
Report on pages 184 to 191.
Purpose, Values and Culture
The Board has established the corporate values and standards
by which the Group operates. During the year, the Board
received and reviewed reports on health and safety and ethics
initiatives as well as reports on the operation of the Company’s
anti-bribery and corruption and whistleblowing procedures all
of which set key cultural expectations for the Group. Prior to
review by the Board, many of these reports are considered by
the relevant Board Committees, providing the Independent
NEDs who are members of those Committees with the
opportunity to engage with the executives on specific aspects
of the programmes and outcomes being presented. As in 2024,
aspects of culture discussed with management during the year
through the Board Committees included the following:
• The HSECR Committee discussed the role of safety
leadership in setting the right safety culture for the
organisation.
• The Audit Committee reviewed the whistleblowing reports
and the Ethics Committee's responses and actions ensure
that the whistleblowing policy is operating equitably.
• The HSECR Committee reviewed management’s responses
to community grievances and wider engagement.
In addition, the Working Meeting in July enabled Board
members to see for themselves some of these community
engagement programmes and initiatives in operation.
During the year, the Company relaunched its culture survey
process which was presented to the Board in October.
Progress on the resulting initiatives will be monitored during
the course of 2026.
Overseeing stakeholder relationships
The Executive Committee is responsible for the day-to-day
stewardship of all stakeholder relationships and its members
157
Fresnillo plc Annual Report and Accounts 2025
report to the Board on the key metrics and initiatives. The
Board, either directly or through its Committees, primarily the
HSECR Committee, engages or oversees engagement with
the Company’s stakeholders through a number of governance
activities. These are described in more detail, along with
further information about the Company’s engagement with
key stakeholders, in the stakeholder section on pages 20 to 26.
During the year, the Board received reports on community
and employee initiatives, while the Working Meeting in July
2025 provided the Directors with an opportunity to see some
of these initiatives for themselves (see below).
Specific stakeholder activity considered by the Board during
the year included updates on:
• The safety performance and ‘I Care, We Care’ programme.
• Community relations initiatives.
• The Diversity, Equity and Inclusion programme.
• The Prevention of Harassment programme.
• Workforce engagement events.
The Board received quarterly updates at each of its meetings
on management’s engagement with independent investors.
During 2025 these were supplemented by meetings between
Dame Judith Macgregor (as Senior Independent Director) and
some institutional investors (see page 161). The 2025 Annual
General Meeting also provided an opportunity for the
Chairman and some Directors to meet with independent
shareholders. Feedback from those discussions has informed
some of the reporting in this Governance Report.
Risk and controls governance
The primary responsibility for the governance of risk and
internal controls lies with the Audit Committee, which
reviewed the detail of the risk matrix and the routine changes
made by the executive team during the year along with
regular reviews of the emerging risks. The Chair of the Audit
Committee reported to the Board on the outcome of these
discussions. In addition, at its meetings in February and July
2025, the Board received reports from management on the
process used by management to assess the Company’s risk
matrix and the proposed changes in the executives’
assessment of the likelihood and impact of the Principal Risks
and Uncertainties. The Board also reviewed the changes in the
executives’ assessment of the emerging risks compared to the
previous year. These analyses formed the basis on which the
Board reviewed and approved the Principal Risks and
Uncertainties during the year.
On a quarterly basis, the Board reviews reports prepared by
Internal Audit on the internal controls environment (which
were reviewed in more detail by the Audit Committee prior to
being submitted to the Board). During 2025, the Board
accepted the assessments set out in each quarterly report.
At its meeting in February 2026, the Board, through the
Executive Committee and the Audit Committee, reviewed the
effectiveness of the Group’s system of internal controls.
Following this review, the Board considers that the measures
that have been or are planned to be implemented, particularly
those specifically highlighted in this report, complement
Fresnillo’s risk management framework and are appropriate
to the Group’s circumstances. The Board is committed to the
continued development of its internal control regime with a
view to achieving and maintaining best practice levels of risk
management and internal control for international mining
companies listed on the London Stock Exchange.
The Board also received reports from the Audit Committee on
the effectiveness of the Whistleblowing line based on its half-
yearly reviews of the work of the Ethics Committee in
assessing its responses to individual cases. It also received
regular updates on the operation of the Company’s external
anti-bribery and corruption plan and the procedures that were
put in place during the year to further enhance the
Company’s anti-fraud procedures.
Throughout the year, the Board, through the Audit
Committee, has monitored the steps being taken by
management to meet the new requirements of Provision 29
of the Code relating to internal controls. A focused session on
the new requirements was held at the Working Meeting in
July 2025 which covered the following particular aspects:
• The impact of the new Provision on Directors’ duties and
obligations.
• The new material controls declaration required by
Provision 29.
• The scope and categorisation of material controls.
• The robustness of the underlying bottom-up transaction
level controls and the associated second line monitoring
activities.
• Resource and programme planning, progress to date,
timeline and next steps.
• Tolerance levels and testing.
Further information on the changes to the Board’s approach
to monitoring internal controls is set out in the Audit
Committee Report on pages 168 and 177 of this section.
The Audit Committee Report on pages 167 to 179 provides
further details on the governance of the Company’s risk
management processes and internal controls. Information
about the Company’s risk management and internal controls
framework can be found on pages 120 to 124.
158
Governance
Fresnillo plc Annual Report and Accounts 2025
BOARD LEADERSHIP AND COMPANY PURPOSE CONTINUED
Case study
July 2025 working meeting
The Board held a Working Meeting in July 2025, with members accompanied by the Executive
Directors. Sessions were held over a three-day period during which the Company’s wider
strategic issues were discussed in detail.
The meeting began with a visit to the Company’s
Herradura mine, where Board members were briefed on
the operation of the mine, including production scope and
the mine infrastructure. During the visit, presentations
were also given concerning local community and
environmental initiatives.
Key topics covered during later sessions included the
Company’s strategic plan, opportunities and challenges in
delivering that plan, ESG and the programme for ensuring
compliance with Provision 29 of the UK Corporate
Governance Code, as well as focused sessions on the
Mergers and Acquisitions Strategy, Cybersecurity and
Artificial Intelligence trends (including pilot programmes
and applications) and the Sabinas Mine (Silverstream
Agreement).
Environmental, Social and Governance
Discussions focused on sustainability, geopolitical and
mining industry trends and challenges. The Board
considered how the Company is responding to these
trends, including how they could evolve in the future.
Topics of discussion included:
• Fresnillo’s safety journey and the 2026 vision.
• The need to foster Diversity, Equity and Inclusion.
• The need to enhance efficiency and reduce
consumption.
'I Care, We Care' Initiative
Discussions centred around Safety as a core value and how
the 'I Care, We Care' initiative is promoting a safety culture
based on caring for people, promoting leadership,
accountability, risk-based management systems and cross
functional learning. The learning pillar within the 'I Care,
We Care' programme was specifically considered during
the visit to Herradura on the first day of the working
meeting.
159
Fresnillo plc Annual Report and Accounts 2025
Working
meeting
Roles
The composition of the Board is structured to ensure that no
one individual can dominate its decision-making processes.
Chairman’s independence
Mr Alejandro Baillères was appointed as the Chairman of the
Company in April 2021. Mr Alejandro Baillères is beneficially
interested in more than 50% of the share capital of the
Company through his interest in Industrias Peñoles S.A.B. de
C.V., the Company’s controlling shareholder. Mr Alejandro
Baillères is the Chairman of Peñoles and other companies
within the BAL Group, thus at the time of his appointment, he
was not independent. With Peñoles having a significant stake
in the Company, the Board believes that the Chairman’s non-
independence is not a hindrance for his involvement on the
Board but an asset to other shareholders especially as related-
party transactions are reviewed and approved by Independent
Directors and the Audit Committee.
Relationship Agreement
Peñoles has entered into a relationship agreement with the
Company (the ‘Relationship Agreement’) to ensure that
relationships between the Fresnillo Group and the Peñoles
Group are conducted at arm’s length and on normal
commercial terms. Messrs Alejandro Baillères and Arturo
Fernández have been appointed to the Board by Peñoles
pursuant to the Relationship Agreement. Following changes
to the Listing Rules in 2024, the Board has determined that
the Relationship Agreement should continue to provide a
basis for the relationship between the Company and the
Peñoles Group.
The Relationship Agreement provides a constitutional basis for
ensuring that the Company is able to carry on its business
independently from the Peñoles Group, and thus comply with
UK Listing Rule 5.3.1. The Independent Non-Executive
Directors annually review the good standing of the
Relationship Agreement (with the most recent review being
undertaken in July 2025). They are satisfied that the Company
has complied with the independence provisions included in
the Relationship Agreement during the financial year ended
31 December 2025. As far as the Company is aware, such
provisions have been complied with during the financial year
ended 31 December 2025 by Peñoles and/or any of its
associates.
The Relationship Agreement continues to provide a
foundation for a transparent governance system, which
ensures that the Company benefits from Mr Alejandro
Baillères’ leadership and experience while being able to
demonstrate to other shareholders that the Fresnillo Group is
capable of carrying on its business independently of any
companies with which he is connected.
Directors’ independence
Throughout 2025, the Board considered the following
Directors to be independent: Georgina Kessel, Dame Judith
Macgregor, Hector Rangel, Alberto Tiburcio, Guadalupe de la
Vega, Luz Adriana Ramírez and Rosa Vázquez.
Further information on the consideration of Directors’
independence can be found on page 165 of the Nominations
Committee Report.
Time commitment
All Directors pre-clear any proposed appointments to listed
company boards with the Chairman, prior to committing to
them, and such appointments are ratified by the Board at the
next possible meeting. With the exception of Guadalupe de la
Vega who was appointed to the board of America Móvil, S.A.B.
de C.V. during the year, none of the Directors took on any
significant new additional external appointments in the year.
The Non-Executive Directors are required, by their letters of
appointment, to spend 14 days per annum on Company
business. More information on time commitment can be
found in the Nominations Report on page 166.
The other listed company directorships of the Fresnillo plc
Directors are set out on pages 150 to 154 of this report. The
Board and Committee attendance record of each of the
Directors during 2025 is set out in their biographies on pages
150 to 154 of this report.
Conflicts of interest
The Group requires that Directors complete a Director’s list
which sets out details of situations where each Director’s
interest may conflict with those of the Company (situational
conflicts). Each Director re-submitted their Director’s list as at
31 December 2025 for the Board to consider and authorise any
new situational conflicts identified in the re-submitted lists. In
addition, at the beginning of each Board meeting, the
Company Secretary reminds the Directors' of their duties
under sections 175, 177 and 182 of the Companies Act which
relate to the disclosure of any conflicts of interest prior to any
matter that may be discussed by the Board. Further
information about related-party matters considered by the
Board during the year is set out in the Audit Committee report
on pages 171 and 178 to 179.
Director concerns
Directors have the right to raise concerns at Board meetings
and can ask for those concerns to be recorded in the Board
minutes. The Board has also established a procedure which
enables Directors, in relevant circumstances, to obtain
independent professional advice at the Company’s expense.
Board development and induction
Induction
All new Directors appointed to the Board undertake an
induction programme aimed at ensuring they develop an
understanding and awareness of our businesses, people and
processes, and of their roles and responsibilities as Directors
of the Company. The induction programme includes
meetings with members of the Board and Executive
Committee members. It also includes briefings on the
Group’s strategy, UK Corporate Governance Code, operations,
projects and exploration activities as well as visits to the
Group’s operations. New Directors are also briefed on their
responsibilities and duties as directors of a UK Listed plc by
the Company’s external UK legal counsel. There were no new
director appointments during the year.
Continuing personal development
The Working Meeting provided an opportunity for the existing
Directors to receive strategic, stakeholder and operational
updates on the Company’s business. At the regular Board
meetings, the Directors were briefed on governance, legal,
regulatory and market developments that are relevant to
Directors of UK-listed companies.
160
Governance
Fresnillo plc Annual Report and Accounts 2025
BOARD ROLES AND RESPONSIBILITIES
Dame Judith Macgregor has been Fresnillo’s Senior Independent Director (SID) since
May 2024. In this report, she reflects on the work of the independent Non-Executive
Directors during 2025.
Dear shareholder,
On behalf of the independent members of the Fresnillo Board,
I am pleased to present this report describing how we have
sought to work with the Chairman, the non-independent
Directors and the senior executive team to create a
constructive environment of accountability within the
Fresnillo boardroom during 2025.
Communication is the pre-eminent activity that I undertake in
my role as Senior Independent Director to ensure that the
views of my fellow independent Directors both individually
and collectively are articulated well to our Chairman and other
non-independent Board members. I also recognise my
responsibility to ensure that I understand any concerns that
our independent shareholders might have, particularly
concerning governance matters, not least as we have had a
non-independent Chairman since our IPO.
Communications with the independent directors
Central to my role as Senior Independent Director is my work
with the independent members on the Fresnillo Board.
During the year, we have met together both formally and
informally following which I have been in contact with the
Chairman and/or the senior executives, as appropriate, to
ensure that any concerns or uncertainties are understood and
addressed.
Areas of particular interest have included the ability to visit in
person our mining operations and to have the chance to meet
with staff and understand better the working environment,
especially regarding important environmental and safety
issues. This led to a very useful group visit to the Herradura
District in July 2025, complementing our visit to Juanicipio and
Saucito in 2024. We have also discussed ways to enhance
debate on strategic policy options at our meetings and
strengthen our ongoing briefings to keep up with
technological and operational developments, as well as
corporate governance changes.
Communication with our Chairman
As required by the UK Corporate Governance Code, the
independent NEDs met to review the performance of our
Chairman in July. This focused on how Board meetings could
make best use of the input of the independent Directors. The
open, inclusive and searching style in which our meetings are
conducted by our Chairman was also much appreciated.
Following the meeting of the independent Directors, I briefed
the Chairman on a number of questions that independent
Directors had raised concerning matters that we feel the Board
and committees should explore. In particular the importance of
regular review of our cyber security policies and plans for Board
Succession, alongside the wider development of the talent and
skills required in the company and wider sector.
I am pleased to report that the Chairman has been receptive
to such conversations and good discussions on these subjects
have followed. The Chairman is demonstrably respectful of the
role that the independent Directors perform on the Board.
Furthermore, he is keen that the independent NEDs have
good interaction with the executives and receive timely
information to carry out our duties. Our three-day Working
Meeting in July (outside of formal Board meetings) was a
particularly useful opportunity in that regard.
Communication with the independent shareholders
It is an important aspect of my role to be available to engage
with shareholders, if there are questions or concerns that I can
usefully discuss with them. To date these have revolved
around the role of the Board in driving growth and ensuring
effective governance. It has been an opportunity to assure
investors of our commitment to sustainable exploration and
organic growth, alongside a considered policy of acquisition.
And in particular to underline our firm determination, led by
the Chairman, to challenge and improve our safety
performance across the board. The importance of regular
monitoring of our community outreach and our wider ESG
requirements has also been a feature of our conversations.
Related party matters
Given the relationship that our controlling shareholder has
with Fresnillo, both as 75% owner and as a commercial
counter-party (given the Met-Mex refining arrangement), it is
important that the independent Directors scrutinise any
related party matters to ensure that they operate in the best
interests of the Company, and in accordance with the relevant
related party rules and the Relationship Agreement between
Fresnillo and the controlling shareholder. Through Board
meetings and their membership of the Board Committees,
particularly the Audit Committee, independent Directors are
able to probe issues of concern and add suggestions on other
issues of interest. Any substantive related party matter
requiring Board agreement has to be approved by the
independent Directors, alone, before being put into effect.
During the year, we have had important, timely and
constructive discussions about a small number of related
party matters, all of which we have been able to approve. In
these cases, for example on the Silverstream decision, we were
given extensive briefing both on the detail and the various
options - allowing us to consider all of the complex aspects
involved before any approval was given.
In concluding, I would like to thank my independent Board
colleagues for their wisdom and friendship as we have sought
to bring impartial scrutiny to the Board’s deliberations and
operation, when needed. I would also like to thank our
Chairman, the non-independent members of the Board and
the executive team for their willingness to respect and engage
with our questions and concerns. I believe that, as a Board, we
have a healthy ongoing dialogue and I look forward to it
continuing during 2026.
Yours faithfully
Dame Judith Macgregor
Senior Independent Director
161
Fresnillo plc Annual Report and Accounts 2025
SENIOR INDEPENDENT DIRECTOR'S REPORT
DAME JUDITH MACGREGOR
Board performance review
The Board conducts an annual review of the effectiveness of
the performance of the Board and its Committees. A
combination of externally-facilitated and internally-run
evaluations is carried out over a three-year cycle and forms the
Board Development Programme. The Board recognises that a
continuous and constructive review of its performance is an
important factor in achieving its objectives and realising its
full potential.
In carrying out these reviews, performance, composition,
diversity and how effectively members work together to
achieve objectives form the basis of the focus topics to be
covered.
The cycle of the Board performance evaluation is summarised
as follows:
YEAR 1 YEAR 2 YEAR 3
2023
Externally-facilitated Board
evaluation using questionnaires
and interviews.
2024
Follow-up on action plan prepared
in response to Year 1 evaluation using
questionnaires.
2025
Focus on outstanding and
emerging issues arising from the
action plan using questionnaires.
In 2026, the Company will be in ‘Year 1’ of the cycle and an externally facilitated Board review will be conducted.
MID-AUGUST 2025 END-AUGUST 2025 October 2025 NOVEMBER/DECEMBER 2025
Preparation and Scope
• Scope agreed.
• Question set prepared.
• Questionnaires
circulated to Directors.
Complete and Analyse
• Questionnaires
completed by Directors.
• Results analysed and
results report prepared.
Review and Discuss
• Results report reviewed
by Chairman and
distributed to the Board.
• Results report discussed
at Board meeting.
• Progress against
previous actions
discussed.
Action and looking ahead
• Actions and priorities for
change agreed.
At its meeting in October 2025, the Board discussed the results.
The overall conclusion from the Board performance review
process was that the performance of the Fresnillo Board
continues to be rated very highly, highlighting the excellent
work culture that has been established both in the Board and
in the Committees. The recommendations were therefore
characterised as points of potential further improvement rather
than material changes of approach. Particular areas of Board
governance which were commended in the report included:
Stakeholder engagement; Board support, including the quality
of meeting agendas and papers; Board discussions; the July
Working Meeting and the operation of the Board Committees.
However, the Board has asked management to consider
whether there are further steps that could be taken to improve
the Board’s approach to the following, and to develop proposals
where appropriate: (i) cyber risk; (ii) succession planning (iii) the
process for determining investment discussions (iv) agenda
timings; (v) papers and (vi) safety.
Committee review
The reports on each of the Board Committees prepared as
part of the Board effectiveness review were circulated to the
members of each of the Committees in October 2025 and
discussed by the Audit, HSECR and Remuneration
Committees at their meetings in October 2025 and by the
Nominations Committee at its meeting in February 2026.
Overall, the reviews of the effectiveness of all of the
Committees were very positive.
Director performance review
As part of the Board performance review, all of the Directors
were asked to complete reviews of the performance of the
Chairman, as well as their own individual performance. The
output from this review was collated by Ceradas and reported
to the Chairman.
The Independent Non-executive Directors meet annually in
order to evaluate the performance of the Chairman. A review
meeting was held in July 2025 to consider the Chairman’s
performance over the prior year and Dame Judith Macgregor,
the Senior Independent Director, subsequently discussed the
key points from that discussion with the Chairman.
162
Governance
Fresnillo plc Annual Report and Accounts 2025
BOARD PERFORMANCE REVIEW
Recently appointed Independent NEDs...are bringing fresh perspective to
complement those of our more experienced NEDs.”
Members
Meetings attended
Alejandro Baillères 1/1
Georgina Kessel 1/1
Guadalupe de la Vega 1/1
Dear shareholder,
It is a pleasure to introduce the Fresnillo plc Nominations
Committee Report for the year ended 31 December 2025 and
to briefly comment on the Committee’s key priorities during
the year.
Board composition
Following a year of change in 2024, the Board remained
unchanged during 2025. Ms Luz Adriana Ramírez and Ms Rosa
Vázquez, who were elected as Independent Non-Executive
Directors at the 2024 AGM, are contributing well to the Board
with Rosa becoming a member of the Audit Committee in
March 2025 and Luz Adriana becoming a member of the
HSECR Committee in March 2026. As recently appointed
Independent NEDs, Rosa and Luz Adriana are bringing fresh
perspectives to complement those of our more experienced
NEDs. In March 2025, Georgina Kessel was appointed as a
member of the Remuneration Committee and stepped down
as a member of the HSECR Committee.
Alberto Tiburcio, who chairs both the Audit Committee and
Remuneration Committee, reached the ninth anniversary of
his appointment to the Board in 2025. In light of Provision 10 of
the Code, which suggests that serving on a board for more
than nine years may be a circumstance which could impair, or
could appear to impair, a Non-Executive Director’s
independence, the Nominations Committee has paid
particular attention to assessing Alberto’s contribution and
independence and has concluded that Alberto continues to
perform his duties with utmost independence and therefore
continues to assess him to be an Independent Director. With
the Audit Committee needing to oversee key audit-related
developments during 2025 and the Remuneration Committee
working on the renewal of the Directors’ Remuneration Policy
in 2026, Alberto was proposed and re-elected to the Board as
an Independent Non-Executive Director for one further year at
the 2025 AGM.
By doing this, the Audit Committee has been able to benefit
from Alberto’s knowledge and experience as a long-standing
member of the Committee in overseeing important
workstreams related to the Company’s cybersecurity
programme, the implementation of the new ERP system and
work on the Company’s internal controls framework in
response to the new Code Provision 29. In 2025, the Audit
Committee also started the external auditor tender process to
appoint a new auditor for 2027 and Alberto's oversight will
facilitate a smooth transition. The Nominations Committee
believes that this approach will enable a smoother process for
Alberto’s eventual succession but believes that these
workstreams continue to need considerable time and
attention from these two Committees, and the successful
conclusion of these workstreams will be better achieved with
Alberto continuing as Chairman of both Committees for one
further year. The Nominations Committee therefore believes it
to be in the Company’s best interests, with the Board
agreeing, to propose Alberto’s re-election as an Independent
NED for one further year at the 2026 AGM.
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. The Board considers Dame Judith to be
scrupulously independent in her role as an Independent Non-
Executive Director and it will be highly beneficial to the Board
for her to serve one further year in her role as Senior
Independent Director. The Board will be consulting with
shareholders concerning the proposed re-election of both
Alberto Tiburcio and Dame Judith Macgregor before
publication of the notice of meeting for the 2026 AGM.
Board diversity
In February 2025, we revised our Board Diversity policy to
bring it into line with the 2024 version of the Code. We
continue to hold fast to the importance of making Board
appointments on the basis of merit, including considerations
such as background and experience, age, gender and
shareholder perspectives in our reviews of the composition of
the Board. I believe that with seven Non-Executive Directors
out of 12 being independent (five of whom are female), the
Board benefits from a wide diversity of thought and input in
its discussions. The Board has always predominantly consisted
of Mexican Directors, alongside at least two British Directors,
which enables the Board's decision-making to benefit from a
sound understanding of cultural, regulatory and market
contexts in both the UK and Mexico. I believe that this
approach continues to work well.
Board reviews
As in 2025, Ceradas assisted the Board and Committee in
conducting their annual performance reviews. A summary
of the overall approach and findings arising from this review
is set out on page 162 of the Corporate Governance report.
The review ratings were similar to those in 2025, indicating
that the performance of the Board and, indeed, that of the
Nominations Committee, both continue to be regarded
very well.
If any shareholders have questions about the work of the
Committee, I would be happy to discuss them at our 2026
AGM.
Yours faithfully,
Mr Alejandro Baillères
Chairman of the Nominations Committee
163
Fresnillo plc Annual Report and Accounts 2025
NOMINATIONS COMMITTEE REPORT
Role
The Nominations Committee is responsible for making
recommendations to the Board on the structure, size and
composition of the Board and its Committees and succession
planning for the Directors and other senior executives. Before
making appointments of new Directors and members of the
Executive Committee, the Nominations Committee is
responsible for evaluating the balance of skills, knowledge and
experience on the Board and identifying and nominating
suitable candidates for approval by the Board. Prior to making
such recommendations, the Nominations Committee
considers the other time commitments and significant
external interests of such candidates to ensure that they are
able to contribute effectively to the Board.
The Board has approved Board Appointments and Diversity
policies which provide the framework for the Nominations
Committee and the Board’s approach to Board appointments.
The Board has also approved a Group Diversity policy. (Full
versions of these policies may be found on the Company’s
website www.fresnilloplc.com). A further explanation of the
steps that the Company is taking to promote diversity across
its businesses is set out in the Sustainability report on pages
58 to 117.
Board appointments policy
The Nominations Committee and Board are strongly
committed to the principle of equality of opportunity when
making new appointments to the Board and its Committees,
including the Executive Committee, while ensuring that
appointments are based on merit. The Committee believes
that setting targets for the number of people from a particular
socio-economic, professional or educational background, sex
or gender identity, ethnicity, sexual orientation or disability is
not an effective approach and therefore it has no specific
quotas or targets. The Nominations Committee continues to
consider the composition of the Board and its Committees
with this commitment in mind.
The criteria for determining the composition of the Board and
future Board and Committee appointments continue to be
based on:
• Relationship Agreement requirements and guidelines for
appointments to the Board by Peñoles.
• The Company’s leading position as a precious metals miner
in Mexico.
• The Company’s inclusion in the FTSE 100 Index.
• The specific functions on Board Committees which
independent Directors will be required to fulfil.
• The provisions set out in the current terms of reference of
the Nominations Committee and the Board Diversity policy.
Diversity Tables
Sex
As at 31 December 2025
No of Board
members % of the Board
No of senior
positions
No in executive
management
(Note 2)
% of executive
management
Men 7 58.3% 3 7 100.0%
Women 5 41.7% 1 0 0
Ethnicity
1
As at 31 December 2025
No of Board
members % of the Board
No of senior
positions
No in executive
management
% of executive
management
Mixed or Multiple ethnic group: Mexican 9 75.0% 3 5 72.0%
White: British 2 16.7% 1 0 0
White: Spanish 1 8.3% 0 0 0
Mixed or Multiple ethnic group: Brazilian 0 0 0 1 14.0%
Mixed or Multiple ethnic group: Chilean 0 0 0 1 14.0%
Notes:
1. Data based on the 2025 Ethnic Diversity Voluntary Census return to the UK Department of Business and Trade.
2. Executive management includes the six members of the Executive Committee and the Company Secretary.
Directors’ length of tenure
As at 31 December 2025 0 to 3 years 3 to 6 years 6 to 9 years Over 9 years
Independent Directors 2 2 2 1
Non-independent Directors – 1 – 4
164
Governance
Fresnillo plc Annual Report and Accounts 2025
NOMINATIONS COMMITTEE REPORT CONTINUED
Executive succession planning
In February 2025, in line with its usual practice, the
Nominations Committee reviewed a schedule of possible
successors for all the positions on the Executive Committee.
This review considered both short-term emergency and long-
term planning scenarios.
Non-Executive Directors' independence and succession
planning
Each year, the Committee reviews the tenure of the
Company’s Independent Non-Executive Directors to ensure
that there are appropriate plans in place to ensure that the
balance of Independent to Non-Independent Directors
complies with Provision 11 of the Code.
During the year, the Nominations Committee’s succession
planning has specifically focused on Mr Tiburcio’s status as an
Independent Non-Executive Director bearing in mind that he
will have served as an Independent Non-Executive Director for
more than ten years at the Company’s 2026 AGM. Similarly,
the Committee has also considered Dame Judith Macgregor's
status as an Independent Non-Executive Director, considering
that she will have served as a Director for almost nine years at
the 2026 AGM. For the reasons set out on page 163, the
Committee considers that Mr Tiburcio and Dame Judith
Macgregor continue to be Independent Non-Executive
Directors and proposes that they be re-elected at the
2026 AGM.
In the light of the foregoing discussion and recommendation
of the Nominations Committee, the Board has assessed each
of these Directors by reference to the criteria set out in
Provision 10 of the Code and remains satisfied that they are
each independent in character and judgement. Mr Tiburcio is
an Independent Non-Executive DIrector of Grupo Nacional
Provincial, S.A.B. and Grupo Palacio de Hierro, S.A.B. de C.V.,
which are companies within the BAL Group. He is not involved
in executive duties in any of those companies and has a
similar obligation to be independent for those two companies
as for Fresnillo. The Committee does not consider that Mr
Tiburcio's position as an Independent Non-Executive Director
of the Company is adversely impacted by those two
appointments.
Committee Membership
In February 2026, the Committee reviewed the membership
of the Board Committees and recommended that Luz Adriana
Ramírez be appointed as a member of the HSECR Committee
with immediate effect.
Other Committee activity during 2025
The Nominations Committee also considered the following
matters as part of its usual programme of activity:
• Committee report: Approval of the 2024 Nominations
Committee report prior to publication.
• Committee review: In February 2026, the Nominations
Committee reviewed the outcome of the independent
performance review undertaken in 2025, which concluded
that the Committee is performing very well.
165
Fresnillo plc Annual Report and Accounts 2025
Board skills and experience
Skill/Experience Description
% of Board
members
Commercial leadership Sustainable commercial success in business at a senior executive level. 83
Strategy Experience in enterprise-wide strategy development. Implementation in
industries with long cycles. Developing and leading business transformation
strategies.
83
Mexican business experience Relevant experience and understanding of the Mexican political, cultural,
regulatory and business environments.
92
Capital allocation and cost-
efficiency
Extensive direct experience in environments requiring capital allocation, cost-
efficiency and cash flow management disciplines, with proven long-term
performance.
92
Health, safety, environment
and community
Extensive experience with complex workplace health, safety, environmental and
community risks, frameworks and issues.
75
Capital markets Relevant experience and understanding of capital markets, institutional investor
engagement and regulatory/governance expectations.
92
Mining and natural resources Board-level experience and/or long-term knowledge gained through working
with companies operating in the mining or natural resources sector.
67
Financial expertise Relevant experience in financial regulation and the capability to evaluate financial
statements, financial controls and risk.
83
Public policy expertise Extensive experience of public policy or regulatory matters, including fiscal and
economic, ESG (in particular climate change) and community issues, social
responsibility and transformation issues.
75
Workforce wellbeing Workforce learning and skills development, diversity and wellbeing. 92
Time commitment and overboarding
The Nominations Committee undertook a review of the time
commitment required from each Director and their other
external appointments, prior to making a recommendation to
the Board supporting that all of the continuing Directors be
proposed for re-election at the 2026 AGM.
In making this assessment, the Committee noted that the
Non-Executive Directors are required, by their letters of
appointment, to spend 14 days per annum on Company
business. More importantly, it also reviewed the time
commitments of each Director to ensure that all Board
members continue to be able to devote sufficient time and
attention to the Company’s business. Its philosophy in doing
so is to consider the total workload of each Non-Executive
Director and the particular value that each Director brings to
the Board. In particular, the Nominations Committee took into
account the following factors:
1. With operations in a few countries, and because of the
relative commonality of the Company’s activities, the Board
has not in the past considered that it needs more than four
scheduled Board meetings with additional working
meetings per year, a factor which is reflected in the relatively
modest fees that the Company pays its Non-Executive
Directors. Further information regarding fees paid to
Non-Executive Directors can be found on page 184.
2. The calendar for Board and Committee meetings is aligned
with the meetings of other companies, including listed
companies, within the BAL Group ownership structure. This
ensures that Directors who are appointed to the boards of
other companies within the BAL Group will not have any
time conflicts with their other commitments to Fresnillo plc.
The Nominations Committee noted an increase in the time
commitment in recent years; following the introduction of the
three-day working meeting in July (see page 159) albeit with
no change to the number of scheduled Board meetings
during the year. Nevertheless, all of the Directors continued to
fulfil their time commitments during 2025.
The Nominations Committee is therefore satisfied that all of
the Directors, but particularly the Non-Independent Non-
Executive Directors, spend considerably more than this
amount of time on Board and committee activity than they
are required to by their letters of appointment.
166
Governance
Fresnillo plc Annual Report and Accounts 2025
NOMINATIONS COMMITTEE REPORT CONTINUED
The Audit Committee's agenda...has been very extensive with some
significant issues and judgements required throughout the year.”
Members
Meetings attended
Alberto Tiburcio 5/5
Georgina Kessel 5/5
Héctor Rangel 5/5
Rosa Vázquez 4/5
Dear shareholder,
It gives me great pleasure to introduce the Audit Committee
Report for the year ended 31 December 2025.
The Company’s excellent financial performance during 2025
has benefitted from the high metals prices sustained
throughout the year. Nevertheless, the Audit Committee’s
agenda for the year has been very extensive with some
significant issues and judgements.
The primary focus of the Audit Committee continued to be to
closely monitor key aspects of Fresnillo’s financial reporting
and controls environment, including areas of judgement and
estimation in the financial statements, critical financial
processes, material risks and internal controls.
The items of particular focus for the Committee during the
year are detailed below:
• Silverstream Contract: In June 2025, Fresnillo and its
Parent Company, Peñoles, agreed to terminate the
Silverstream Contract (Contract) originally signed in 2007.
Under the Contract, Fresnillo made an upfront payment of
US$350 million to Peñoles in exchange for the right to
receive the proceeds from the refined silver sold from
Peñoles’ Sabinas mine. Fresnillo also agreed to pay an
established per ounce cash payment during the life of the
Contract. However, as a result of operational challenges at
the Sabinas mine in recent years, including reduced reserve
estimates, both companies agreed to terminate the
Contract. Since its inception, the Contract has been
considered to be a derivative financial instrument which
was presented in the balance sheet at fair value. Under the
termination agreement, Fresnillo received a buy-back cash
payment of US$40 million and the difference between that
and the amount included in the Fresnillo balance sheet of
US$189.2 million (US$129.4 million after tax) at the time of
the transaction was recorded as a loss in the income
statement. The Audit Committee was kept informed by
management at every step of these negotiations and
reviewed with management its valuation and accounting
implications. We also received an independent expert
opinion on the valuation to support its approval as a related
party transaction.
• Tax Contingencies: As we have reported in previous years,
tax contingencies are closely monitored by the Audit
Committee. In 2025, the Servicio de Administración
Tributaria (SAT) accepted the position taken by the
Company with respect to the tax deductibility of certain
payments to Peñoles in respect of the Contract. This was the
most important outstanding tax dispute with the SAT at the
end of 2024 and, following the completion of actions agreed
with the SAT, this dispute has been concluded with no
further cost to the Company. Although there are still some
other tax disputes outstanding at the end of 2025, these
matters are much less material. We will nevertheless
continue monitoring the discussions with the SAT and
evaluating the external tax experts' opinion on what they
believe is the most probable outcome of these disputes.
Based on current evidence, the Committee agrees with the
Company's position of not recording any reserve at year end.
• Soledad-Dipolos assets: We continue to monitor the
discussions the Company has had with local and state
authorities to regain access to the assets at the Soledad &
Dipolos mine (which currently are valued at approximately
US$100 million). We had various discussions with
Management, including the General Counsel, concerning
the Company's status in relation to both access and financial
claims against the Company and agreed that the legal
position remains the same as in 2024 and thus agreed with
the Company's decision not to impair these assets in the
2025 financial statements.
• IT and Cybersecurity: During 2025, we monitored and
evaluated the progress made in the implementation of the
previously agreed steps to improve the cybersecurity
internal control system. Although progress was made in
2025, management has developed further detailed plans to
accelerate the implementation of these controls in 2026.
The Committee will be checking progress made during the
year ahead. In addition, the Committee oversaw the
organisation’s technology governance model and the
principal IT strategies. In particular, the Committee
monitored the implementation of the Oracle ERP project.
The Committee will continue to track progress during 2026.
Further information about the Group’s approach to IT is set
out on page 131 of the Strategic report.
• External Audit Tender Process: EY was appointed as the
Company's Independent External Auditor in 2008. Following
a competitive tender process in 2016, EY was reappointed for
the period ending 31 December 2017 and subsequent years
through to 2026. Taking into account the maximum
regulatory term, the Committee carried out a tender process
for the 2027 audit which is described further on pages 174 to
175 with significant involvement from both Management and
the Committee members. The result was the selection of
PwC to become the Company’s external auditor from 2027
(subject to shareholder approval). The Committee will
monitor the transition process between EY and PwC
during 2026.
167
Fresnillo plc Annual Report and Accounts 2025
AUDIT COMMITTEE REPORT
• Climate-related financial disclosures: This annual report
includes disclosures consistent with the guidelines set out by
the Taskforce on Climate-related Financial Disclosures
(TCFD). The HSECR Committee takes primary Board-level
responsibility for the Company’s progress towards
compliance with the TCFD recommendations. However, the
Company’s reporting against these disclosure requirements
was reviewed by the Committee and we are satisfied that the
disclosures are a fair reflection of the Company’s current
position. Further details of the progress made during the year
and actions to be taken during 2026 are set out in the letter
from the Chairman of the HSECR Committee on pages 56 to
57 and in the Sustainability report on pages 58 to 117.
• Fraud detection: The Committee has continued to work
closely with Internal Control, Risk Management and the
internal audit teams following the review of the Company’s
fraud risk assessment process undertaken in line with
guidelines published by the Association of Certified Fraud
Examiners (ACFE) during 2024. The Committee monitored
the steps taken by management to prepare for the
implementation of the new UK corporate criminal offence of
failure to prevent fraud which took effect in September
2025. More information on risk management systems can
be found on pages 120 to 124.
• UK Corporate Governance Code - Risk Management and
Internal Control: The Committee has continued to evaluate
the significant amount of work undertaken by the
management team in response to the new UK Corporate
Governance Code published in 2024, particularly in relation
to the Board’s monitoring of Fresnillo’s risk management
and internal controls framework. The section on Internal
Controls (see page 177 below) sets out in detail the progress
made during 2025. We are satisfied with the progress made
and look forward to reporting fully under the new Code
requirements for 2026.
In the second half of the year, an evaluation of the
performance of the Board and its committees was carried out.
With respect to the Audit Committee, I am pleased to report
that the results of the review were very positive. Nevertheless,
we continue to look for ways to improve the efficiency of the
meetings, making sure that we remain well-briefed on the
subjects of interest to the Committee.
At the end of the year, the Committee undertook a
questionnaire-based evaluation of the performance of the
internal audit function which indicated that the function is
operating satisfactorily.
In closing, I would like to acknowledge the effort and valuable
contributions made by the members of the Committee, and
by the Company executives who work closely with it; as well as
the invaluable support and trust that the Committee
continues to receive from the Board.
I would be happy to speak with any shareholders who have
questions about the work of the Committee.
Yours faithfully,
Alberto Tiburcio
Chairman of the Audit Committee
168
Governance
Fresnillo plc Annual Report and Accounts 2025
AUDIT COMMITTEE REPORT CONTINUED
The Audit Committee
Membership
The members of the Audit Committee and their relevant
financial and auditing experience is summarised as follows:
Committee members Financial and auditing experience
Alberto Tiburcio
(appointed to the Committee
on 4 May 2016 and appointed
Chairman of the Committee
on 30 May 2018)
Previously Chairman and
CEO of EY (Mexico).
Experience in national and
international accounting and
audit practice and corporate
governance.
Georgina Kessel
(appointed to the Committee
on 1 March 2021)
Public finance experience
from her career
in government. Has served on
the Audit and Risk
Committees of major
companies in Mexico and
Spain.
Héctor Rangel
(appointed to the Committee
on 24 June 2021)
Extensive corporate and
investment banking
expertise.
Rosa Vázquez
(appointed to the Committee
on 4 March 2025)
Risk, audit and accounting
experience. Serves on the
audit committee of other
companies in Mexico.
All of the members of the Audit Committee are Independent
Non-Executive Directors.
Audit Committee activity in 2025 and early 2026
This report sets out the key activities of the Committee in
discharging its duties during 2025, and those undertaken in
2026 in respect of the audit and publication of the financial
statements for 2025. The Committee met five times during
2025 and once more in February 2026 with all the meetings
being either hybrid or virtual via video conference.
Notwithstanding this, the Committee was able to operate in
accordance with its terms of reference and it was able to
follow its usual pattern of work which is reported under the
following headings:
REPORTING
• Financial reporting: Overseeing the Company’s financial
and narrative reporting to shareholders (including
considering whether it was fair, balanced and
understandable).
• Stakeholder relationships and reporting: Overseeing the
Company’s reporting on certain stakeholder issues.
• Whistleblowing: Overseeing on behalf of the Board, the
cases reported through the whistleblower line and the
work of the Ethics Committee.
ASSURANCE
• External audit: Overseeing the work of and the
Company’s relationship with the external auditor.
• Internal audit: Overseeing the work and findings of
internal audit.
RISK AND CONTROLS
• Risk: Overseeing the operation of the Company’s risk
management framework.
• Internal control: Monitoring the Company’s internal
control environment.
• Related parties: Overseeing the financial aspects of the
Company’s commercial relationships with related
parties.
Details of the membership of the Committee and the
Committee’s effectiveness review are set out on pages 152-153
and page 162 respectively of the Governance section
169
Fresnillo plc Annual Report and Accounts 2025
Financial reporting
The Company reports to shareholders on its financial
performance twice a year.
The principal steps taken by the Committee during the period
from 1 January 2025 to the date of this report in relation to its
review of the published financial statements were:
• Review of the financial statements and Annual Report for
the year ending 31 December 2024 and consideration of EY’s
comments on these documents.
• Review of the 2025 interim financial statements and 2025
interim announcement and consideration of EY’s
comments on the drafts of these documents.
• Review of the plan for preparing the financial statements
and Annual Report for the year ending 31 December 2025.
• Review of the significant judgements and estimates that
impact the financial statements (see below).
• Review of the financial statements and Annual Report for
the year ending 31 December 2025 and consideration of EY’s
comments on these documents.
To aid the Committee members’ understanding of the
reported financial results during the year, the Chief Financial
Officer updated the Committee on the Group’s financial
performance at each of its meetings in February, April, July
and October.
Significant judgement areas
The Committee considered the principal areas of financial
statement risk and judgements made in relation to both the
interim and full-year financial statements, prior to
recommending those financial statements to the Board for
approval. In many cases, these significant judgement areas
were the same as those considered in previous years; however,
as the mining cycle progresses, these areas of judgement or
estimation evolve, and new ones may need to be considered
while others may become less important.
Process for the review of significant judgements
The significant judgement process may be summarised in the
following way:
Significant areas of judgement in 2025
The significant judgement areas considered by the Committee in 2025 are set out below. In each case, the Audit Committee
concluded that the accounting treatment and disclosure in the financial statements are appropriate.
Soledad-Dipolos (see Note 2 to the financial statements)
Assessment of risk: Minera Penmont lost access to the leaching pads at Soledad-Dipolos in 2013 due to opposition
by local agrarian group members from a community known as ejido (i.e., agrarian community)
‘El Bajio’, members of which have also presented several claims over land in the proximity of the
operations of Minera Penmont. Nevertheless, Minera Penmont continues to own the land and
mining assets and is seeking to regain access. The litigation has been protracted and
management has had to consider whether it remains likely that access to the land and assets
will be regained.
Variables considered: In 2013, the Company re-assessed and wrote-off the carrying value of certain property, plant and
equipment that could not be utilised or re-assigned to other mine units or remained at the site
and was no longer considered to have a future economic benefit to the Company. The Company
has subsequently prepared an operating plan to re-commence mining operations considering
that access is recovered. The plan is reviewed annually to consider the future investments for
restarting such operations, as well as the timing of recovery of inventory and associated
processing costs. Based on the current reserves and existing inventory, the Company has
estimated a seven-year period for the foregoing, once access to the land is regained.
The Company continues to believe that its legal postion in relation to both access and financial
claims against the Company remains the same as in 2024, and that there is a reasonable
expectation it will regain access, and thus has considered that the assets held as property plant,
and equipment and inventories as at 31 December 2025 will produce economic benefits once
the Company has regained access to them.
Sources of assurance: In making this judgement, the Committee has relied on information provided by management
concerning their discussions with the relevant authorities supported by advice received from the
Company’s internal and external legal counsel.
170
Governance
Fresnillo plc Annual Report and Accounts 2025
AUDIT COMMITTEE REPORT CONTINUED
REPORTING
Related-party transactions including revenue recognition (see Note 27 to the financial statements)
Assessment of risk: Fresnillo has a controlling shareholder and as a result has very strong ties both to Peñoles and
the broader BAL group. There is a risk that related-party relationships could be taken advantage
of to manipulate earnings or otherwise distort the Company’s financial position and/or transfer
value to Peñoles or another BAL company inappropriately. Furthermore, related-party
transaction disclosure requirements allow investors to understand the nature and extent of the
Company’s transactions with related parties and there is a risk that disclosures in the financial
statements could be inaccurate or incomplete.
Variables considered: Every year, the Committee scrutinises the probity of all major related-party transactions to
ensure that they are entered into transparently and fairly to all shareholders. Prior to the
termination of the Silverstream Agreement in June 2025, the Committee also reviewed with
management its valuation (on which an independent expert opinion was received to support
its approval as a related party transaction) and accounting implications
Sources of assurance: The Committee considered management reports on the transactions with related parties
during the year. In particular, it received confirmation from the Chief Executive Officer on the
trading relationship with Met-Mex and the basis on which pricing is determined (using a
methodology which was adopted in 2019) (see the ‘Related parties’ section on pages 178 - 179).
The Committee discussed EY’s procedures to ensure that related-party transactions are
recognised accurately and correctly reported in the relevant disclosures in the Annual Report,
as well as their related conclusions.
Internal audit routinely reviews agreements between the Company and Peñoles, the results of
which are reported to the Committee as part of its annual Internal Audit programme updates.
In addition, PricewaterhouseCoopers (PWC) conducts annual reviews of the intercompany
transactions each year (including related-party transactions). In previous years, these reviews
have not resulted in any adverse comments thus providing a degree of assurance that the
Company’s usual approach to the pricing of such transactions is reasonable.
171
Fresnillo plc Annual Report and Accounts 2025
171
Recoverable amount of long-term non-financial mining assets (see Note 13 to the financial statements)
Assessment of risk: The recoverable amount of long-term non-financial assets is influenced by the level of reserves
and resources for each mine at any moment in time, the likelihood that the resources can be
economically mined and the expected phasing of planned production (mine plan). Other key
variables considered include the expected metals prices, costs and discount rates. The estimated
valuation of the recoverable amount of long-term mining assets will change year-on-year in
response to changes in these inputs. If the financial statements are not adjusted accordingly
there is a risk of significant financial misstatement.
Variables considered: The estimation of reserves and resources, prices, costs, discount rates and related mine plans for
each business unit, along with management’s assessment of impairment indicators, were
considered.
Sources of assurance: The Committee noted that the specialist third-party reports on estimates of reserves and
resources and estimates of recoverable value had been prepared by Management and then
reviewed by EY, using specialists where necessary. The Committee also noted the reports from
SRK and AMC on reserves and resources and scrutinised the process by which they were
prepared to ensure that improvements made during the year had been properly implemented.
Internal audit also followed up on steps taken by management during the year. The Committee
further evaluated EY’s assessment of management’s position on the mines most at risk and
sensitivities performed by EY for alternative metals prices and discount rate scenarios.
Mineral reserves and resources (see pages 285-291)
Assessment of risk: Reserves and resources are a primary driver of Fresnillo’s market valuation and a significant
input into calculations of depreciation and assessments of impairment. Such calculations are
dependent on significant amounts of geological data provided by the Company’s business units
and the ability of the exploration and operational teams to find new reserves and replenish
resources that have been mined during the financial period.
Variables considered: The estimation of mineral reserves and resources requires significant judgement, not only in
respect of mineral physically in place but also metals prices and cost assumptions used to
determine the cut-off grade for identifying economically viable ore bodies. There is also
judgement in developing and maintaining the mine plans which estimate the timing and
quantities of related production. During 2025, in addition to considering changes in the price
assumptions, the Committee also considered the change in methodology for determining the
mineral resource estimates as a result of adopting the RPEEE (Reasonable Prospects for
Eventual Economic Extraction) criteria for defining mineral resources (as described further in the
Review of Operations - Exploration section on pages 42 to 46).
Sources of assurance: During 2025, the Committee continued monitoring the process and noted that, while there is
still room for improvement, management accelerated significantly the timing for providing the
relevant information to SRK and AMC. The Committee was satisfied as to the completeness of
the reports and thus was able to make an informed assessment of the position as at
31December 2025.
172
Governance
Fresnillo plc Annual Report and Accounts 2025
AUDIT COMMITTEE REPORT CONTINUED
REPORTING
172
Taxation and PTU (see Note 11 to the financial statements)
Assessment of risk: The taxation of mining companies in Mexico has been the subject of much attention as
reflected by a number of tax inspections that are ongoing or have been initiated by the tax
authorities. Some aspects of Mexican tax legislation are open to interpretation. During the year,
the Committee has continued to closely monitor tax contingencies and received reports from
management on ongoing discussions with the tax authorities.
Certain tax assets and liabilities are denominated in Mexican pesos and are revalued in US
dollars during the period, resulting in foreign exchange gains or losses which need to be taken
into account when assessing the tax charge for the period and the deferred tax computation.
In accordance with the Mexican legislation, local companies also pay employee profit sharing
(PTU) in accordance with the legally applicable formulas.
Variables considered: The Committee reviewed the status and potential outcomes of tax audits commenced during
the year and ongoing dialogue with the SAT.
The Company has considered and challenged the SAT position of not accepting the
deductibility of some payments to the Union.
Sources of assurance: Throughout the year the Committee received updates on the status of tax inspections. Reviews
of tax related matters were also undertaken by internal audit. The Committee reviewed
management’s supporting memoranda on the consolidation of tax and PTU and sought EY’s
views on the same. It ascertained the degree to which judgements and adjustments are
supported by internal and/or external subject matter experts and ensured that they
corresponded with information presented during the year prior to approving the relevant
disclosures in the annual report.
Stakeholder reporting
The Committee plays a role in overseeing, on behalf of the
Board, some key aspects of the Company’s reporting
concerning its relationships with key stakeholder groups.
• Employees: The Committee reviewed the work of the Ethics
Committee in relation to matters raised via the
whistleblower line (see following section).
• Government/Tax authorities: The Committee closely
monitors the Company’s relationship with the SAT, with the
status of any outstanding tax audits reviewed at most
meetings. The Committee receives regular reports from the
Head of Tax on her interactions with the SAT concerning
current tax audits.
• The Environment: The oversight of the Company’s
approach to managing environmental and climate-related
risks is primarily the responsibility of the HSECR Committee
which regularly reviews Fresnillo’s response to the
operational implications of such risks. The Audit Committee
reviews the Company’s reporting on such risks and
initiatives, particularly through the TCFD Report to ensure
that such disclosures are consistent with the Company’s
financial reporting.
During 2025, the Committee reviewed the Company’s
Payments to Governments data, published in June, and the
Company’s UK Tax Strategy Statement, published in
November.
Whistleblowing
The ‘Línea Correcta’ whistleblower hotline allows stakeholders
to anonymously report (via an independent third party)
violations of the Company’s Code of Conduct. The
effectiveness of the hotline is reviewed by the Committee
twice a year (February and July meetings) and the Chairman
of the Committee gives a report to the Board every six months
on the key trends and steps taken as a result of these reviews.
In 2025, there were a total of 185 reports (compared to 161 in
2024). Further details about the operation of the
whistleblowing arrangements and the reports made in 2025
are set out in the Sustainability report on page 65. During the
year, the Committee was satisfied that all matters had been or
continue to be properly investigated with appropriate action
taken.
173
Fresnillo plc Annual Report and Accounts 2025
External audit
Relationship with EY
Ernst & Young LLP (EY) was re-appointed as the Company’s
auditor at the 2025 AGM. EY was originally appointed in 2008
and, as reported below, its appointment was re-confirmed in
2016 (for the financial year ending 31 December 2017).
Steve Dobson, who has been the Company’s lead partner since
2020, rotated off the Company’s audit during the year. His
successor, Stephney Dallmann, who had been identified and
agreed with the Committee in 2024, commenced her role in
2025. During the year, the members of the Committee met twice
with representatives from EY without management present and
once with management without representatives of EY present, to
ensure that there are no issues in the relationship between
management and the external auditor which it should address.
There were none noted as a result of such discussions.
The Company complied with the Statutory Audit Services for
Large Companies Market Investigation (Mandatory Use of
Competitive Processes and Audit Committee Responsibilities)
Order 2014 during the year.
External Audit Process
The key steps in the Committee’s interactions with EY during
the period from the sign-off of the Annual Report and
Accounts for the year-ended 31 December 2024, to the date of
this report were:
• The review of a report from EY providing their observations
arising from the 2024 audit process and management
responses to those observations in April 2025.
• Discussion with EY of the findings from their review of the
interim results for the period ended 30 June 2025.
• The review of the 2025 half-year representation letter given
to EY.
• The review and approval of the external audit plan, fees and
terms of audit engagement.
• The review of the results of the ‘hard close audit’ for the ten
months to 31 October 2025.
• The review of the representation letter given to EY for the
2025 full-year audit.
• The review of EY’s report following completion of the audit
for the year ended 31 December 2025.
Quality, objectiveness and independence of the external
auditor: The Committee is mindful of its responsibility to
ensure that the external auditor maintains its independence
and objectivity and is appropriately qualified with sufficient
resources and expertise to fulfil the role. The Committee sought
written assurances from EY concerning its independence (by
reference to UK Ethical Standards for the audit profession)
which it duly received. As a result, the Committee is satisfied
with the independence of EY as the external auditor. The
Committee discussed the quality, objectiveness and
independence of the EY team with management and was
satisfied that there were no concerns in this regard.
Non-audit services policy: The Committee has adopted a
policy for the provision of non-audit services to the Fresnillo
Group by the external auditor (the ‘Policy’). The Committee
has maintained an ongoing dialogue with EY during the year
concerning the services that it provides to the Company and
the wider Peñoles Group to ensure that where such services
are provided, they are in line with the Policy or discussed with
the Committee on a timely basis.
The current Policy permits the engagement of the external
auditor to provide a narrow range of permitted services which are
closely related to the audit and/or required by law or regulation.
Any engagement of the external auditor to provide permitted
services above US$5,000 is subject to the specific approval of the
Committee. During 2025, EY provided audit-related assurance
services in connection with the review of the interim financial
statements (US$685,000), the climate related non-audit service
(US$107,562), Mexican tax opinion (US$135,000) and a review of
the proforma figures for the acquisition of Probe Gold Inc.
(US$39,579). The ratio of fees paid for non-audit work in relation to
audit work during the year was 0.37:1.00 (2024: 0.31:1.00).
Details of the fees paid to EY during the year are shown in
Note 28 to the financial statements.
Evaluation of the effectiveness of the external audit and
the auditor
The Committee assesses the effectiveness of EY as its external
auditor from two perspectives:
• Reviews of the work of EY’s UK practice, as a firm,
undertaken by the Financial Reporting Council’s Audit
Quality Review Team.
• Its own assessment of the effectiveness of the external audit
process and the role played by both EY’s UK and Mexican
teams in the performance of the annual audit.
Audit quality review: The Committee reviewed the FRC’s
Audit Quality Review (‘AQR’) on EY as a firm and the specific
report on EY’s audit of the 2024 financial statements issued in
September 2025. This inspection primarily focused on the risk
assessment and planning; execution of the audit plan; and
completion and reporting, including the quality of
communication with the Audit Committee in relation to the
following matters:
• Valuation of the Silverstream Contract.
• Recoverable amount of mining assets.
• Revenue recognition in relation to Saucito, Penmont and
Juanicipio.
• Inventory existence in relation to Saucito, Penmont and
Juanicipio.
The review assessed the audit quality as ‘Good’ indicating that no
key or other findings were identified. The report was circulated to
and noted by the members of the Committee.
Audit Committee assessment of EY and recommendation
for re-appointment: Following the completion of the 2024
annual report, the Committee undertook a review of the
performance and effectiveness of EY at its April 2025 meeting.
As part of this process, the Chief Financial Officer and Finance
Team were invited to provide their insights into their interaction
with the EY teams during that process. The Committee
concluded that EY was performing well with an overall
consensus being that the working relationship was good.
In February 2026, taking account of the performance of the
external auditor in relation to the 2025 annual report, the
Committee recommended to the Board the re-appointment
of EY as external auditor at the Company’s 2026 Annual
General Meeting.
External Audit Tender
Fresnillo last undertook an external audit tender process in
2016 and therefore, the financial year commencing 1 January
2026 will be the last year that EY can remain in this role.
During the year, the Audit Committee agreed to conduct the
external audit tender process with a view to having the new
auditor identified for the financial year commencing 1 January
2027. The aim of the process was to complete the tender
process in time to make a recommendation of a new auditor
to the Board in early 2026 so as to allow the new auditor to
observe aspects of the 2026 audit and thus facilitate a
smooth transition.
174
Governance
Fresnillo plc Annual Report and Accounts 2025
AUDIT COMMITTEE REPORT CONTINUED
ASSURANCE
Having evaluated the options, the Audit Committee decided to
invite Deloitte, KPMG and PwC to participate in the tender
process. The Audit Committee considered whether to invite
challenger audit firms to participate in the tender process but
decided that, due to the complexity and size of the Company, it
would be better served with the experience and resources, both
in the UK and Mexico, of one of the three larger firms. Having
reviewed the criteria provided, KPMG advised the Audit
Committee that they would not participate in the tender process.
The tender process included the following steps during the
second half of 2025 and early 2026:
Activity
Meetings with Deloitte and PwC
Meetings with management in Mexico City and site visits
Bids received and evaluated by management
Evaluation of bids by the Audit Committee and preferred
bidder(s) agreed
Final Presentations to Audit Committee
Audit Committee recommendation to the Board
The criteria by which the firms participating in the tender
were assessed included the following:
• Audit quality and independence.
• Experience in precious metals and mining, UK and Mexico
geography, regulation and markets.
• Approach to communication and co-ordination taking
account of time zone and language differences.
• Methodology, hours and fees.
The conclusion of this process was that the Committee
recommended to the Board that PwC be proposed as the
external auditor for the year ending 31 December 2027.
Internal Audit
The 2025 Internal Audit annual plan was approved by the
Committee in October 2024, incorporating audits across all of
Fresnillo’s business units with a focus on strategic priorities
and key risks. During the year, Internal Audit continued to
leverage technology and apply data analytics to achieve a
satisfactory depth of audit coverage and gain deeper insights
into Fresnillo’s risk and internal control environment. During
the year, Internal Audit executed a series of reviews covering
operational processes at the mining units, technology
processes, tax matters and administrative processes. These
reviews were conducted with a strong emphasis on risk
exposure, control effectiveness, productivity, cost
management and regulatory compliance. In addition, Internal
Audit carried out its annual process of verifying the validity
and accuracy of the non-financial information included in the
2025 annual report and reported the results to the Committee
at the beginning of 2026.
Due to the continued importance of cybersecurity and the
evolving technology landscape, Internal Audit is continuing its
assessments aimed at validating the design and effectiveness of
Fresnillo’s cybersecurity, IT (Information Technology) and OT
(Operational Technology) processes and controls. The Committee
continues to review progress made in raising the level of
cybersecurity maturity and actions taken by management to
ensure compliance with laws and regulations.
In addition, Internal Audit oversaw the process of redefining
the Group's technology governance model, ensuring that it
was based on international standards.
Towards the end of each year, Internal Audit presents the
proposed annual internal audit plan and resourcing
requirements for the following year. The 2026 internal audit
plan was presented to the Committee and approved in
October 2025. The plan was developed according to the
International Standards for the Professional Practice of
Internal Auditing, and considered the following:
The 2026 internal audit plan was approved by the Committee
in December 2025 and includes planned audit engagements
aligned with strategic priorities and areas of higher risk. These
will cover major ongoing exploration and capital projects,
compliance with laws and regulations (including
environmental legislation, labour requirements and
permitting obligations), health and safety, taxation,
cybersecurity, IT/OT processes and multi risk operational
compliance processes at the mining units.
The Head of Internal Audit attended all Committee meetings
during the year. Members of the Committee meet with the Head
of Internal Audit twice a year without management present.
At each meeting, the Committee also monitored progress made
by management in addressing ‘red flag’ items (i.e. relevant
control observations) identified through internal audit work. The
Committee’s focus is on ensuring that the management
responses to remediation are appropriate, and that timely
progress is made in reducing the number of red flags over time.
In addition, the Committee monitored the quality of the dialogue
between internal audit and the Executive Committee in
reviewing internal audit findings and agreeing action plans with
appropriate levels of operational buy-in to address the points
raised. The Committee met with the Chief Executive Officer and
Chief Operating Officers several times during the year to review
the outstanding internal audit points and is satisfied with the
progress achieved through this dialogue.
At the end of the year, the Committee carried out an evaluation
of the performance of the internal audit function, based on a
focused questionnaire, and was satisfied with the outcome.
175
Fresnillo plc Annual Report and Accounts 2025
Risk
The Committee monitors how the Company’s risk
management framework is operating. Operational
responsibility for risk lies with line management (details of the
risk management system are set out on pages 120 to 124). The
Committee discusses potential changes to the Group’s risk
profile through its regular reviews of the Risk Matrix and its
consideration of any associated recommendations from
management proposing changes to the Risk Matrix to take
account of changing and emerging risk.
The emerging risks were evaluated and reviewed by the
Committee during the year. No new risk categories were
identified during 2025.
The principal risks and uncertainties are reviewed every six
months prior to the publication of both the interim and full-
year reports. The Committee discussed the proposed
statements on the principal risks and uncertainties with the
Head of Risk and executive team prior to making a
recommendation to the Board that they be approved.
Ethical risk
The Committee monitors the Company’s Ethics and
Compliance programme through regular reviews of progress
on the Group’s anti-bribery and corruption (ABAC)
programme (including attention to reports received through
the whistleblowing line as well as the training programme).
This demonstrates that the Group’s corporate values and
elements of the control culture in relation to ethics remain
embedded throughout the organisation. To this end, during
the year the Committee received reports on: the roll-out of
training in relation to the disclosure of conflicts of interest; the
Code of Conduct; Step-Up culture and harassment. The
Committee also reviewed progress on the implementation of
recommendations made following an external evaluation of
the ABAC programme in 2022. For the past two years, the
main area of focus has been the Procurement, Controllership
and Finance departments, whose processes include most of
the recommended anti-bribery controls. The
recommendations have required each of these processes to
be redesigned, and while this has taken time, the changes
were completed during 2025 and the recommendations have
therefore now all been implemented.
Further information about the Company’s approach to bribery
and corruption is set out on pages 67 to 68 of the Strategic
Report.
Fraud Risk Assessment
For the sixth consecutive year, a fraud risk assessment was
carried out in line with guidelines published by the Association
of Certified Fraud Examiners (ACFE). The processes where
there is a higher inherent risk of fraud and where the
background evidence suggests there may be a higher risk
were analysed in detail. The internal controls in place to
prevent and mitigate risks were also assessed and considered
to be adequate with, in a limited number of cases, some areas
of opportunity to improve. For the most exposed fraud risks,
working sessions are planned to continue the assessment and
improve internal controls.
Financial risk management
The Company’s objectives and policies on financial risk
management including information on the Company’s
exposures to market risk, such as foreign currency, commodity
price, interest rate, inflation rate, equity price risks, credit risk
and liquidity risk can be found in note 31 to the financial
statements. During the year, the Committee reviewed the
Company’s Treasury Policy and concluded that no further
changes were required.
Non-financial risk areas
The Committee regularly reviews and receives management
updates on current issues and developments that have
potential to give rise to specific risks and is guided by regular
updates from management on specific issues that it considers
should be kept under review. During 2025, regular reports
were received on legal matters (including changes to
regulation and litigation) and a review of the Group’s
compliance with mining licence conditions at each of its
business units. Where new potential areas of risk are identified
by management during regular reviews of the Risk Matrix, the
Committee may request further bespoke updates from
management to supplement its general review of risk and
internal controls. No new areas of non-financial risk were
identified during 2025.
Information technology and cyber risk
Throughout 2025, the Committee continued to receive
updates on the Group’s IT strategy, its linkage to the Group’s
overall business strategy and the financial implications of that
strategy for the business plan. It also monitored the progress
of the Peñoles and Fresnillo management teams in
developing the cybersecurity framework for the Group.
During 2025, the ERP implementation advanced according to
plan, with periodic updates provided to the Committee and
close monitoring of the project’s progress. The improvement
of reporting for financial analysis was initiated, along with
functional training to enhance the use of the system’s
reporting modules.
The Committee also received a presentation concerning the
establishment of the Technical Governance Committee – an
executive committee which will meet four times a year to
discuss investment issues and the technological vision and
strategy. It is anticipated that the Technical Governance
Committee will begin reporting regularly to the Committee
on its work during 2026.
Further information about the Group’s approach to IT is set out
on page 131 of the Strategic report.
Going concern
The Directors must satisfy themselves as to the Group’s ability
to continue as a going concern for a minimum of 12 months
from the approval of the financial statements. The Committee
supported the Board in this assessment by considering
whether the Company has adequate liquid resources to meet
its obligations as they fall due. In February 2026, the
Committee reviewed the Group’s budget and cash flow
forecasts for the period to 31 December 2027, taking into
account the Company’s anticipated production profiles at
each mine, budgeted capital and exploration expenditure and
the sensitivity of the cashflow forecasts to movements in
metals prices, including stress testing those forecasts to
identify the levels to which metals prices must fall to put
pressure on working capital levels.
The Committee also considered EY’s report on this
assessment and on the reasonableness of assumptions
therein, including their consistency with assumptions and
estimates used elsewhere in the preparation of the financial
statements. The Committee also challenged management on
the feasibility of the mitigating actions and the potential
speed of their implementation. Following this assessment, the
Committee satisfied itself that the going concern basis of
preparation is appropriate and the financial statements
176
Governance
Fresnillo plc Annual Report and Accounts 2025
AUDIT COMMITTEE REPORT CONTINUED
RISK AND CONTROLS
appropriately reflect the conclusions on going concern. The
going concern statement is set out in the Strategic report on
page 145.
Viability assessment
The Executive Team has developed a comprehensive
approach to the viability assessment, the key steps of which
are explained within the Viability Statement, set out in the
Strategic report on pages 143 to 144. In December 2025, the
Committee agreed with Executive Management’s proposal
that the scenarios presented in the previous year be
maintained for the purposes of the 2025 Viability Statement.
In February 2026, the Committee reviewed the proposed
Viability Statement. It also considered the potential steps that
could be taken to mitigate the cashflow impacts arising from
the most negative scenarios (including delaying project capex
or reducing exploration expenditure).
Monitoring and strengthening internal controls during
the year
The Committee assists the Board in monitoring the
effectiveness of the Company’s internal control environment.
This monitoring includes oversight of all material controls
including reporting, financial, operational, regulatory and
compliance.
During 2025, the Committee continued to review at its regular
meetings each of the quarterly internal controls reports which
were prepared by Internal Audit and subsequently submitted
to the Board. These documents specifically report on
developments in the Key Risk Indicators and the key internal
control issues arising from the quarterly Internal Audit reports.
From time to time, the Committee has proposed changes to
those reports based on its own discussion of Internal Audit’s
findings. Remediation actions arising from the control
exceptions identified throughout the year were those related
to: (i) enhancing operative discipline and adherence to safety
standards; (ii) improving some information security controls
(iii) strengthening the control management for the third-party
contracting process; and (iv) delays in obtaining permits which
may impact the continuity of projects.
Internal Controls project in preparation for the 2024 UK
Corporate Governance Code
Since 2023, management has been using the changes to the
risk management and internal control requirements
introduced by the 2024 version of the Code, (effective from
1 January 2026), as an opportunity to bring the management
process and controls into line with the COSO Framework. Two
further stages of the project were completed during 2025:
Documentation and validation of material controls
• Interviews with process owners at the corporate and
business unit levels, covering 14 financial processes, 10
operational processes related to Fresnillo plc's 10 critical risks
defined in the Company’s ERM (severity: very high and high),
and 18 systems/applications.
• Walk-through of each process to identify material controls
• Description and documentation of material controls by
process, considering review criteria, thresholds,
responsibility frequency, and evidence of their
implementation, including the automated controls within
the new ERP Oracle Fusion system.
• Recommendations for strengthening controls, where
necessary.
• Validation of controls with process owners.
Design and Implementation Testing
• Request for information to conduct the control evidence
review.
• Review and evaluation of evidence to ensure that it meets
the criteria and characteristics described in the controls.
• Making recommendations to the control owners of financial,
operational and IT controls in order to strengthen controls
based on the results of design and implementation tests.
As at 31 December 2025, the key next steps in the project were:
• Developing a continuous monitoring plan for 2026.
• Conducting design and implementation testing of newly
implemented or remediated controls.
• Preparing the Declaration to be made by the Board of
Directors, as a result of the evaluation of the effectiveness of
the material controls
Financial reporting controls
Fresnillo management has adopted a series of policies,
practices and controls in relation to the financial reporting and
consolidation process, designed to address key financial
reporting risks, including risks arising from changes in the
business or accounting standards and to provide assurance of
the completeness and accuracy of financial statements and
the Annual Report. These policies and procedures set out the
Group’s accounting policies, its treatment of transactions and
its internal reporting requirements.
The internal reporting of financial information to prepare the
Group’s annual and half-year financial statements is signed off
by the Chief Financial Officer and the Group Financial
Controller. The Chief Financial Officer and the Accounting
Information Manager must also confirm annually that all
information relevant to the Group audit has been provided
and that reasonable steps have been taken to ensure full
disclosure in response to requests for information from the
external auditors. The Committee Chair, Chief Financial Officer
and Group Financial Controller have all participated in the
drafting and review processes for the Annual Report and the
Head of Internal Audit also reviews information disclosed in
the Annual Report.
177
Fresnillo plc Annual Report and Accounts 2025
Annual review of the system of internal controls
The Committee undertakes an annual review of the Group’s
system of internal controls. In this task, the Committee is
directly supported by the independent work of the internal
audit team. This review aims to improve the understanding of
how the various sources of assurance (through the three lines of
defence) interact in the review and execution of material
controls by identifying and addressing any gaps in the control
framework. Consequently, once a year, the Committee oversees
the review of the Group’s system of internal controls through an
assessment, conducted by management, of the various sources
of confidence over the execution of material internal controls.
This is a comprehensive review incorporating operational
management, financial management and Executive
Management, complementing the independent assessment of
material risks and internal controls by internal audit.
The Chief Executive Officer, Chief Operating Officers and other
senior managers were invited to meet with the Committee to
discuss their action plans and progress for remediating the
issues identified.
This work underpins the Board’s statement on the annual
review of the system of internal controls (see statement on
page 158).
Related parties
With the Company’s Parent Company, Peñoles, owning just
under 75% of the issued share capital of the Company (see
page 199), it has and will continue to have a significant level of
influence over the affairs and operations of Fresnillo. Being
part of the same Group provides an opportunity to achieve
synergistic operational, financial and administrative
improvements by combining the resourcing of common
services that can be shared between Peñoles and Fresnillo.
Although these arrangements are beneficial to Fresnillo, the
Committee performs a role in overseeing these arrangements
to ensure that they continue to operate impartially.
The principal arrangements entered into between the
Company and related parties and reviewed by the Committee
during the year were:
The Met-Mex agreement As it does every year, the Committee considered the reasonableness of proposed treatment and
refining charges in respect of the Met-Mex arrangements for 2025, as disclosed in note 27 to the
consolidated financial statements. Management circulated a paper setting out the
methodology to determine the charges, which takes industry benchmark charges and adjusts
to reflect ore composition and transport costs. The methodology used in 2025 was the same as
that used in the previous three years. The Committee reviewed this paper and recommended
approval of the proposed charges by the Independent Directors at the Board meeting in
October 2025.
As part of its review of the Met-Mex arrangements, the Committee also confirmed with
management that the transfer pricing assessments in respect of prior year transactions (which
are undertaken for tax reasons by the Group’s external adviser, PwC), had been completed with
no issues noted. A similar assessment in respect of the 2025 transactions will be received in
duecourse.
The Silverstream
Agreement
In June 2025, the Company and its Parent Company, Peñoles, agreed to terminate the
Silverstream Agreement. Further information about the Committee's oversight of the
termination of the Silverstream Agreement is set out on pages 167 and 171.
Other agreements There are other dealings with related parties in the ordinary course of business (e.g. insurance
brokerage) which, although not requiring approval by Independent Directors, will from time-to-
time be reviewed by the Committee to ensure that the arrangements are on a reasonable
arm’s-length basis. During the year, the Committee reviewed the annual insurance renewal for
which Grupo Nacional Provincial, S.A.B., a related party, acted as broker.
During 2025, the Committee reviewed and approved a commercial agreement between the
Company and related party, TANE, S.A. de C.V., (TANE), under which the Company would invest
approximately US$2 million (made up of inventory and financial contributions) towards an
exhibition sponsored by TANE which aimed to promote Mexican silver at a museum in Mexico.
The aim of the exhibition was to promote knowledge of the origins of Mexican silver and
increase its visibility.
The Shared Services Agreement is an agreement between the Company and Peñoles which sets out, on an arm’s-length basis,
the basis and terms under which several categories of services are provided to the Company by Peñoles. The Shared Services
Agreement was renewed with effect from 1 January 2024 and must be renewed every five years. Internal Audit conducts reviews
of approximately one-third of main services provided each year to ensure that these services are provided in accordance with the
agreed KPIs. As a result, all services are reviewed by Internal Audit over a three-year cycle. Internal Audit reports to the
Committee on its review of the Shared Services Agreement.
178
Governance
Fresnillo plc Annual Report and Accounts 2025
AUDIT COMMITTEE REPORT CONTINUED
RISK AND CONTROLS CONTINUED
The following table summarises the approach taken to identify and manage related-party transactions under the Relationship
Agreement.
Process How this is managed Responsibility
Monitoring of Directors’
interests
If a Director has an interest in a company that could potentially enter
into transactions with a Fresnillo Group Company, the Board will
normally consider that interest under its arrangements for
authorising conflicts of interest under s175, Companies Act 2006.
Directors
Contract negotiation and
verification
The best possible commercial terms are negotiated by management
and, where possible, they will seek to verify them against international
benchmarking reports and/or independent valuation or assessment.
Fresnillo Executive
Committee and
management
Financial scrutiny Review of the key financial terms of any major transaction which are
verified where possible as to price and quality by external consultants
or independent benchmarking.
Audit Committee
Independent Director
approval
Under the Relationship Agreement and the Listing Rules, the
Independent Non-Executive Directors must approve any transaction
with the Peñoles Group or its associates without the Non-
independent Directors voting.
Independent Non-
Executive Directors
Ensuring that the Annual Report is fair, balanced and
understandable
In relation to the annual report and financial statements for
the year ended 31 December 2025, there are a number of steps
that the Board, supported by the Committee, undertook to
ensure that the annual report is fair, balanced and
understandable. An explanation of the process adopted in
preparing the annual report and analysis of the basis upon
which each requirement for it to be ‘fair’, ‘balanced’ and
‘understandable’ had been met was summarised in a paper
which the Board reviewed at its meeting on 25 February 2026.
The key features of this process were:
• The narrative sections of the annual report were drafted by
the members of the team with specific responsibility for the
areas referred to in the sections that they prepare. The
individuals involved included the Head of Investor Relations,
the Head of Risk, the Head of Sustainability, the General
Counsel and Compliance Officer, Company Secretary and
Mine Managers.
• As narrative sections of the annual report were prepared,
copies were circulated to Board members for review and
comment. Such comments were incorporated into updated
versions of the annual report.
• About a month prior to the annual report being approved
by the Board, members of the Audit Committee and other
Directors reviewed a current draft enabling them to assess
whether the information was consistent with their
understanding of the Company’s business and the nature
and content of discussions at the Board during the year.
Comments were received from the Directors on most areas
of the annual report, and these were incorporated into
subsequent drafts of the annual report. The sections of the
annual report which were particularly commented on
included: the operations reporting, the Sustainability report
and climate-related disclosures in particular, the
presentation of information on diversity and inclusion and
the presentation of health and safety information.
• Suggested changes put forward by the Directors, based on
knowledge obtained through Board and Audit Committee
papers and discussion and other interactions with
management, were considered by management in
preparing the final version of the annual report.
• The disclosures relating to climate change, in particular the
TCFD statements, were reviewed by members of the Board
to ensure that they were consistent with the approach and
discussions relating to climate-related change at Board and
Committee (particularly the Audit Committee and HSECR
Committee) levels.
• At the same time, Internal Audit undertook a review exercise
of the principal non-financial information in the annual
report which is extracted from the Company’s operational
records and their findings were appropriately reflected.
• The Audit Committee also reviewed the annual report and
financial statements, taking into account comments made
and reports issued by EY and decided to recommend them
to the Board for approval.
As a result of the above procedures, the Board considers that,
taken as a whole, the Annual Report is fair, balanced and
understandable.
The Corporate Governance report which is set out on pages
147 to 201 has been approved by the Board of Directors of
Fresnillo plc.
Signed on behalf of the Board.
Alberto Tiburcio
Independent Non-Executive Director
2 March 2026
179
Fresnillo plc Annual Report and Accounts 2025
Remuneration Policy in summary
The Company currently has no Executive Directors; however, the Remuneration Committee treats the Chief Executive Officer as
if he were an Executive Director for the purposes of the Remuneration Policy and for reporting on his remuneration.
Objective of the Remuneration policy
What does the policy seek to achieve?
The Group’s Remuneration policy seeks to ensure that the Company is able to attract, retain and
motivate its Executive Directors and members of the Executive Committee. The retention of key
management and the alignment of management incentives to the Group’s purpose are essential
objectives of this Policy.
Components of Directors’ remuneration
How is executive remuneration structured?
Component
Salary Bonus Benefits Pension
Rationale
Setting base salary levels for
Executive Directors and
members of the Executive
Committee at an appropriate
level is key to managerial
retention in Mexico. Salaries
are positioned within a range
of possible salaries according
to experience and length of
service.
Ordinarily, subject to
performance, the same
percentage will be applied to
salary increases across the
Company for senior
management and other
employees alike.
The annual bonus rewards
the achievement of financial
and strategic business
targets and the delivery of
personal objectives. Annual
bonus is capped at six
months’ salary and is paid on
the basis of metrics set out in
the Remuneration Policy.
Benefits are provided in line
with the Group’s policy on
employee benefits.
The Group operates a
defined contribution scheme
for all employees. Executive
Directors and key
management are entitled to
membership of the defined
contribution scheme.
Additional features of Fresnillo’s Remuneration Policy
Component
Long-term Incentives
Share-based
remuneration Shareholding guidelines Recovery of bonus
Rationale Rationale
The annual bonus scheme
sets targets which are
aligned to the Company’s
long-term strategic
objectives so that these
priorities are embedded
within the day-to-day
activities of our business. The
Company does not operate a
long-term incentive plan.
The Company does not use
share-based forms of
remuneration because the
Remuneration Committee
does not currently consider
them to be a common form
of executive remuneration in
Mexico.
In the absence of share-
based incentive schemes, the
Company does not adopt
shareholding guidelines for
executives.
There is scope within the
bonus scheme for bonus
awards to be adjusted
downwards at the discretion
of the Remuneration
Committee if they cannot be
justified by the Company's
financial or operational
performance during the year
(or in respect of previous
years).
Objective of the annual bonus
What does the annual bonus seek to achieve?
The annual bonus is set for, and based on, performance over a single-year period but the KPIs and
targets are also designed to ensure that both short-term objectives and the long-term
development of the Fresnillo Group are given broadly equal priority within variable remuneration.
180
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT
REMUNERATION AT A GLANCE
Our Purpose is to contribute to the wellbeing of people, through the sustainable mining of silver and gold.
STRATEGIC PRIORITIES
EXPLORE DEVELOP OPERATE SUSTAIN
Extend and maintain a
robust growth pipeline.
Deliver profitable growth,
optimise cash flows and
returns.
Maximise the potential of
our operations.
Advance and enhance the
sustainability of our
business.
RELEVANT BONUS METRICS
• Replenishment and
expansion of reserves
and resources.
• Exploration projects
progress.
• Development projects
progress.
• Contractors’
performance.
• EBITDA
• Production – increase in
ounces produced.
• Synergies and
teamwork.
• Management of
contractors.
Employees/Contractors
• Safety (various metrics).
• Labour relations.
Communities
• Project-based metrics.
Environment
• Environmental risk
management.
Shareholders
• EBITDA.
Key components of the annual bonus in 2025
What was achieved?
2025 2024 Change (%)
Performance Total silver reserves (moz)
362.6 331.3 9%
Total gold reserves (moz)
7.8 7.2 8%
EBITDA (US$m)
2,796.2 1,547.3 81%
Profit for the year (US$m)
1,573.8 226.7 594%
Silver production (moz)
48.7 56.3 (13%)
Gold production (koz)
600.3 631.6 (5%)
Total relevant environmental incidents
0 0
Fatalities
2 2 0%
CEO's Remuneration Total salary (US$000) 1,308 1,277 2.4%
Bonus (US$000) 469 458 2.3%
181
Fresnillo plc Annual Report and Accounts 2025
ALIGNMENT OF THE REMUNERATION POLICY TO PURPOSE AND STRATEGY
Ensuring that executive remuneration rewards excellent performance while also
incentivising executives in a way that is consistent with the expectations of the
Company's Shareholders.”
Members and meetings in 2025
Meetings attended
Alejandro Baillères 3/3
Alberto Tiburcio 3/3
Guadalupe de la Vega 3/3
Georgina Kessel 2/2*
* Georgina Kessel was appointed to the Remuneration Committee on 4 March 2025
and was therefore only eligible to attend two of three meetings during the year.
Dear shareholder,
I am delighted to introduce the Directors’ Remuneration
Report.
The Remuneration Committee continues to maintain the
approach to executive remuneration that has been applied
since Fresnillo first listed on the London Stock Exchange in
2008. We continue to welcome the support of our
shareholders for our remuneration arrangements, and I was
pleased to see that this support was again strongly
demonstrated at our 2025 AGM.
Review of variable remuneration
The Remuneration Committee has kept in focus the
importance of ensuring that executive remuneration rewards
excellent performance while also incentivising executives in a
way that is consistent with the expectations of the Company’s
shareholders. In this regard, the Committee has again
monitored the annual bonus arrangements for our senior
management team to ensure that they are aligned to our
strategy and the business context within which the Company
operates. In 2025, we continued to monitor the KPIs used to
calculate the annual bonus to Executive Committee members
and we were satisfied that they remained appropriate for that
year. However, since the end of the year, we have been
considering the appropriateness of our executive incentives in
the light of the Group's international expansion and strong
financial performance and budget projections. As a result, we
have been considering refreshing the Annual Bonus Plan for
our senior executives and, particularly, our Chief Executive
Officer in order to introduce more strategic considerations
into those bonus arrangements.
These changes are likely to involve amendments to the
parameters of the Annual Bonus Plan set out in the Directors'
Remuneration Policy ("the Policy") and we are currently
finalising the detail of the framework that we will be asking
shareholders to approve at the 2026 annual general meeting
("AGM"). The details of these changes will be included in the
Circular accompanying the Notice of Meeting for the AGM
("the AGM Circular"). At this point, I would nevertheless
confirm the Remuneration Committee's commitment to the
Annual Bonus Plan as the primary vehicle for rewarding both
short-term and long-term performance and we maintain our
long-held view that the use of long-term equity-based
incentives is not a remuneration mechanism that we consider
to be appropriate for the Company.
It is also anticipated that there will be changes to the 2026
targets to complement the changes we expect to make to the
Annual Bonus Plan structure. The essence of those changes
will also be communicated in the AGM Circular. Performance
against those targets and the basis of calculation of bonus
points awarded will be disclosed in next year’s report.
2026 Directors' Remuneration Policy
With the renewal of the Policy due in 2026, we have reviewed
whether changes are needed and have concluded that the
current Policy in essence remains appropriate as a
remuneration framework which appropriately incentivises our
senior executive team. We are nevertheless taking the
opportunity to make a small number of very minor editorial
changes to the proposed Policy (which are set out in the draft
of the Policy on pages 192 to 196). We plan to consult with
independent shareholders prior to making any further
changes and seeking shareholder approval at the 2026 AGM.
The Remuneration Policy set out on pages 192 to 196 will be
presented for approval at the 2026 Annual General Meeting.
Should the Remuneration Committee conclude amendments
are needed to the Remuneration Policy set out herein in
respect of the executives' variable remuneration (as set out
above), an additional resolution will be proposed at the 2026
Annual General Meeting to adopt a revised Remuneration
Policy, as set out in the Notice of AGM, with such revised
Remuneration Policy, if approved, superseding the
Remuneration Policy set out in this Remuneration Report and
taking effect from 19 May 2026.
As ever, I am always interested to hear the views of
shareholders on our approach to executive remuneration.
During the year, we have applied the Remuneration Policy to
executive remuneration without needing to exercise any form
of discretion other than those elements of the executive
bonus plan which require an element of judgement in
determining outcomes for the year.
Salaries, bonus and our application of the Remuneration
policy in 2025
Levels of salary increase for the members of the Executive
Committee, with the exception of the Chief Executive Officer,
continued to be aligned to the level of increase for all employees
(at around 5.3%). The CEO’s pay was increased by 8%, which was
supported by evidence from Willis Towers Watson, showing how
the CEO’s remuneration compares with the peer group used to
benchmark any Executive Committee member’s remuneration
(the ‘Peer Group’) under the terms of the Company’s Directors'
Remuneration Policy approved in 2023.
For 2025, the Committee has agreed to award bonuses to the
members of the Executive Committee to reflect their
performance against the targets set out in the Annual Bonus
Plan. The Chief Executive Officer was awarded 119.1 points
under the plan and therefore has been awarded a bonus
equivalent to six months’ salary.
182
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
CHAIRMAN'S ANNUAL STATEMENT
As I reported last year, it has been the Committee’s view that it
is not appropriate to include long-term share-based
remuneration as a component of the Company’s executive
remuneration arrangements because we believe that our
current incentive arrangements are a more effective way to
reward our senior executive team. However, the Committee
continues to monitor the role of long-term incentives in the
Company’s approach to executive remuneration and, while it
has concluded that no change will be needed when the Policy
is renewed in 2026, it has concluded that a change is needed to
provide a more appropriate incentive arrangement. As I have
already mentioned, our preferred approach will be to achieve
this through changes to the Annual Bonus Plan.
Malus and Clawback
The Remuneration Committee has considered changes to
Provisions 37 and 38 of the 2024 version of the UK Corporate
Governance Code which have strengthened malus and
clawback expectations in relation to executive remuneration.
It is a key pillar of our Directors' Remuneration Policy that
variable remuneration for executives is centred on the Annual
Bonus Plan, which rewards both short-term and long-term
business performance. A corollary of this is that we do not
have long-term incentive plans (equity-based or otherwise).
This means that the Annual Bonus Plan is the only
mechanism that the Committee can use to recover or
withhold sums from monies otherwise due to executives. By
including, as we have for some time, a provision in our
Directors' Remuneration Policy which gives the Committee
absolute discretion to adjust remuneration outcomes
downward, either in respect of sums otherwise due in the
current year (malus) or to recover sums paid in previous years
(clawback), we consider that we comply with the
requirements of Code Provision 38. Our Policy does not specify
how far back we might use discretion to recover sums paid in
previous years. Given the long-term nature of planning cycles
in our sector, it seems appropriate to retain that level of
flexibility in our use of discretion in this regard. The Committee
has not needed to exercise this discretion in 2025.
We are not proposing to change these arrangements in the
2026 version of the Policy.
Committee discussions during 2025
In the last 12 months, the Remuneration Committee met four
times and its discussions and decisions included the following:
• Review of the performance of the Chief Executive Officer
and members of the Executive Committee compared to the
KPIs set for 2024 and 2025.
• Review of KPI targets for the Chief Executive Officer and
members of the Executive Committee for 2025 and 2026.
• Review of the Non-executive Directors’ fees. The last review
of the Non-Executive Directors (NEDs') fees took effect in
July 2023. No fee increases were considered for the 2024 or
2025 financial period. The fees have recently been reviewed
taking into consideration current market conditions and
exchange rates and the Board has approved increases of
10% for Mexican-based Directors and 7% for UK-based
Directors for 2026.
• Discussion of the results of the effectiveness review of the
Committee undertaken as part of the wider Board
effectiveness review, which were considered to be
satisfactory.
• Review and revision of the terms of reference of the
Committee in response to UK regulatory developments.
I am always happy to discuss our approach to remuneration
with shareholders and will attend the 2026 AGM to answer any
questions prompted by this report. I would be happy to speak
with any shareholders who have questions about the work of
the Committee.
Yours faithfully,
Alberto Tiburcio
Chairman of the Remuneration Committee
183
Fresnillo plc Annual Report and Accounts 2025
Introduction
This report sets out information about the remuneration of the
Directors and Chief Executive Officer of the Company for the
year ended 31 December 2025. In accordance with the
regulations, the information provided in the section
entitled ‘Directors’ remuneration – 1 January 2025 to
31 December 2025’ and accompanying notes, has been
audited by Ernst & Young LLP.
The Remuneration Committee has responsibility for making
recommendations to the Board on the Group’s Remuneration
Policy for Executive Directors and the Chief Executive Officer
and other members of the Executive Committee, and for
determining specific remuneration packages for senior
management, including pension arrangements and any
compensation packages, as well as remuneration of the
Chairman within agreed terms of reference.
Audited information – Directors’ remuneration –
1 January 2025 to 31 December 2025
Single total figure of remuneration
The detailed emoluments received by the Executive and
Non-executive Directors and the Chief Executive Officer
during the year ended 31 December 2025 are detailed below:
US$ thousands
2025 2024
Salary/
Fees Benefits Bonus Pension
Total
fixed
pay
Total
variable
pay Total
Salary/
Fees Benefits Bonus Pension
Total
fixed
pay
Total
variable
pay Total
Chairman
Alejandro Baillères 55 0 0 0 55 0 55 54 0 0 0 54 0 54
Non-executive
Directors
Juan Bordes
2
0 0 0 0 0 0 0 20 0 0 0 20 0 20
Arturo Fernández 55 0 0 0 55 0 55 54 0 0 0 54 0 54
Bárbara Garza Lagüera
2
0 0 0 0 0 0 0 20 0 0 0 20 0 20
Charles Jacobs 142 0 0 0 142 0 142 138 0 0 0 138 0 138
Georgina Kessel 63 0 0 0 63 0 63 61 0 0 0 61 0 61
Judith Macgregor 142 0 0 0 142 0 142 138 0 0 0 138 0 138
Fernando Ruiz 55 0 0 0 55 0 55 54 0 0 0 54 0 54
Alberto Tiburcio 79 0 0 0 79 0 79 77 0 0 0 77 0 77
Guadalupe de la Vega 55 0 0 0 55 0 55 54 0 0 0 54 0 54
Eduardo Cepeda 55 0 0 0 55 0 55 54 0 0 0 54 0 54
Héctor Rangel 63 0 0 0 63 0 63 61 0 0 0 61 0 61
Luz Adriana Ramírez
2
55 0 0 0 55 0 55 33 0 0 0 33 0 33
Rosa Vázquez
2
62 0 0 0 62 0 62 33 0 0 0 33 0 33
Total 881 0 0 0 881 0 881 851 0 0 0 851 0 851
Chief Executive Officer
Octavio Alvídrez
1
1,308 198 469 84 1,590 469 2,059 1,277 160 458 148
1,585
458
2,043
Grand total
3
2,189 198 469 84 2,471 469
2,940
2,128 160 458 148
2,436
458
2,894
1. Details of benefits and the bonus paid to Mr Alvídrez are set out in the tables below.
2. Luz Adriana Ramírez and Rosa Vázquez were elected to the Board on 21 May 2024. Bárbara Garza Lagüera and Juan Bordes retired from the Board on the same date.
3. The Company does not operate a long-term incentive plan or any share-based incentives.
Benefits
The Chief Executive Officer participates in the Company-wide benefits scheme. The benefits provided to Mr Alvídrez during the
year consisted of:
US$ 2025 2024 2025 2024
Life insurance premiums 77,959 71,563 Medical insurance premiums 6,446 4,642
Chauffeur 39,120 37,637 Club memberships 2,900 2,412
Subsistence/meal benefits 9,182 9,299 Social security 1,459 1,475
Car 60,799 32,792
184
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
ANNUAL REPORT ON REMUNERATION 2025
Pension
The pension entitlement of the Chief Executive Officer is as follows and is explained further on pages 185 and 188:
US$‘000 Defined Contribution Scheme (DCS) Defined Benefit Scheme (DBS)
Rights as at 31 December 2025 1,820 897
Additional benefit in the event that the
Chief Executive Officer retires early.
In the event of early retirement, Mr
Alvídrez is entitled to receive his
accumulated contributions (both
member and Company) to the DCS.
Mr Alvídrez is not currently entitled to
any additional benefit on early
retirement in the DBS.
US$ thousands
Accumulated accrued benefits
(as at 31 December)
Increase (decrease) in accrued benefits
during the year (see note)
Increase (decrease), before inflation and
the effect of foreign exchange, in
accrued benefits during the year
2025 2024 2025 2024 2025 2024
Octavio Alvídrez
1
2,714 2,630 84 679 151 358
Note: The increase in accrued benefits during the year includes a revaluation effect of -US$126k (2024: +US$272k) and inflation of +US$58k (2024: +US$49k).
Shares held by Directors
The number of Ordinary Shares of the Company in which the
Directors were beneficially interested at 1 January 2025 and at
31 December 2025 was:
1 January 2025 31 December 2025
Alejandro Baillères
1
552,595,191 552,595,191
Juan Bordes 15,000 n/a
Arturo Fernández – –
Charles Jacobs 1,600 1,600
Georgina Kessel – –
Dame Judith Macgregor – –
Fernando Ruiz 30,000 30,000
Alberto Tiburcio – –
Guadalupe de la Vega – –
Eduardo Cepeda – –
Héctor Rangel – –
Luz Adriana Ramírez – –
Rosa Vázquez – –
Chief Executive Officer – –
Octavio Alvídrez – –
1. Mr Alejandro Baillères is beneficially interested in more than 50% of the share
capital of the Company through his interest in Industrias Peñoles S.A.B. de C.V.
(‘Peñoles’). The Company and Peñoles are part of the consortium known as
Grupo BAL which is now controlled and directly or indirectly majority-owned by
a Baillères Family Trust, Mr Alejandro Baillères being the major beneficiary. Mr
Alejandro Baillères and companies controlled by him hold, in aggregate 68.9%,
of the issued share capital (and voting rights) of Peñoles. Peñoles holds
552,595,191 Ordinary Shares (74.99%) of the issued share capital in the Company.
Our stakeholders and remuneration
• The Committee seeks to ensure that its approach to
executive remuneration matters is aligned with the
interests of all of its key stakeholders. In particular, the
current Policy seeks to take account of the interests of
our key stakeholders in the following ways:
Shareholders
• Feedback from major shareholders and proxy voting
agencies provided prior to the AGM is considered by the
Remuneration Committee in the course of its
discussions during the following year.
Workforce
• Salary reviews for the members of the Executive
Committee are decided after taking account of the
average salary increases discussed and agreed with the
unions.
• Metrics that promote good employment practices, e.g.
appropriate management of health and safety and the
relations with unionised employees and contractors, are
included in the targets for the Annual Bonus Plan.
Communities and environment
• Metrics that promote good community relations and
sound environmental stewardship are included in the
targets for the Annual Bonus Plan.
185
Fresnillo plc Annual Report and Accounts 2025
Salary
Policy on the consideration of wider employment
conditions and remuneration
When setting pay and benefits for Executive Directors and
members of the Executive Committee, the Remuneration
Committee takes account of pay and conditions across
the Group. It will consider the overall pay increase
percentage negotiated each year with employee
representatives as its starting point taking account of
inflation and other information supporting the annual pay
award for employees.
Factors considered in setting salary and workforce
engagement on remuneration
Benchmarking information on pay and employment
conditions provided by Mercer, Hay Group and Data
Compensation was used across the Group in determining
salaries for all employee grades including senior
management. These reports benchmarked salaries by
reference to peer groups in mining, large companies in
Mexico and internationally.
The Company negotiates salary increases with the unions
annually, to take effect from 1 April each year. The agreed rates
may also be used as the point of reference in setting the
annual salary review for the Chief Executive Officer, members
of the Executive Committee and non-unionised employees. In
2025, it was agreed that the Chief Executive Officer would
receive a salary increase of 8.0% in 2025 following a
benchmarking review undertaken by Willis Towers Watson.
Consequently, the salary payable under Mr Alvídrez’ service
agreement is MX$1,501,401 (US$78,098) per month, which
excludes payments for holidays, Company-paid savings
contributions and other cash benefits.
Policy on the alignment of executive remuneration and
the market
Reviews of the Executive Director and Executive
Committee members’ remuneration are conducted by
Willis Towers Watson from time to time at the request of
the Remuneration Committee. These enable the
Remuneration Committee to validate the Company’s
policy towards remuneration and ensure that it is globally
as well as locally competitive. The analysis evaluates the
elements of base salary, short-term compensation
(guaranteed payments and short-term bonus) and long-
term compensation (primarily stock programmes)
separately. With assistance from Willis Towers Watson, the
Remuneration Committee has established a peer group
which will be used to benchmark any Executive Director’s
and any Executive Committee member’s remuneration
(the ‘Peer Group’) to ensure that it remains within the
parameters set out in the policy.
The Peer Group will be updated where necessary, to ensure
that it remains an appropriate comparator group of
companies.
Benchmarking
The Remuneration Committee has agreed that the Chief
Executive Officer’s salary should be set within a range of
25-75% of the Peer Group for base salary. This was reviewed in
October 2024. The Peer Group consists of the following
companies:
Policy benchmarking Peer Group
Region Peer group companies
Mexico • Southern Copper (Peru)
• Alamos Gold
US/Canada • Agnico Eagle Mines Ltd
• Centerra Gold
• Hecla Mining Co.
• IAM Gold
• Newmont Goldcorp
• Pan American Silver Corp.
• Capstone Copper Corp.
Europe • Hochschild Mining
• Antofagasta
Variable remuneration
Policy on Annual Bonus Plan and variable
remuneration
It is the Company’s policy not to use its equity to
incentivise long-term performance. The Company’s core
strategy is one of long-term sustainable growth.
Sustainable growth in mining requires the steady and safe
expansion of the Group’s operations through the
discovery of new resources and construction,
maintenance and/or expansion of new mines. No
distinction is therefore made between short and long-
term incentives.
Factors considered in setting the bonus
The Annual Bonus Plan includes metrics and targets which
are aligned to at least one of the four main themes of the
Group’s strategy (see Remuneration at a Glance section on
page 180).
The Remuneration Committee has set a cap on each of the
KPIs (other than the Safety KPI) such that the points awarded
on any KPI (other than Safety) cannot exceed 135% of the
target set for that KPI at the beginning of the year.
186
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
ANNUAL REPORT ON REMUNERATION 2025
Annual bonus
Mr Alvídrez achieved 119.1 points under the bonus scheme for the year ended 31 December 2025 (2024: 127.2 points) and therefore
has received a bonus for 2025 of US$468,590 (2024: US$457,867).
The objectives, the measures associated with each objective, and the relative weighting between objectives, as applied to
Mr Alvídrez’ annual bonus payment, are detailed in the following table:
Objective
1
Measure
Weighting
points
1
2025
Target
2025
Results
Points
awarded
Financial
2
(Adjusted EBITDA for the year/Budgeted EBITDA) x 100 20 1,346 1,543 34.6
Production
3
Increase in silver equivalent ounces produced compared to the prior year production level 20 104.9 108.0 23.0
Exploration
Increase of total resources
4
(total resources for the year – total resources prior year) x 100 4 0.5 12.03 4.4
Upgrade from inferred to measured and indicated (MI) resources
(MI resources for the year – MI resources prior year) x 100
5
5 0.5 8.0 5.5
Reserves replenishment
(Reserves at year end/Reserves prior year) x100
5 100% 107% 5.5
Compliance
with cost
control vs
budget
Corporate + Admin. expenses + Adjusted production cost
Note: Staying in budget: 11 points
1 points for each additional 1% reduction
1 point less for each 1% increase
11 0% (1.6) % 12.3
Exploration
projects’
progress
6
Progress compared to project plan for three key development projects (to be reviewed
each year)
2 90% 104% 2.4
(maximum 20% increase reaching 100% of the programme) 2 90% 91% 2.0
Proportional decrease to 0 points below 90% progress 1 90% 119% 1.2
Projects
Progress according to programme (Real vs Plan) (to be reviewed each year) 3 90% 98% 4.5
3 points at 95% programme – Proportional to 6 points at 100% 4 100% 93% 1.3
Unionised labour relations (discretionary award)
(Score: 100 – Best relationships …to... 0 – Worst relationships)
2 90 90 2.0
Safety
Fatal accidents
7
0 0 2 0
Sustainability area plan progress in implementing the safety plan for the year
8
(Target =
95% progress: Maximum = 100% progress, proportional decrease to nil points from 95%
to 0%)
3 95% 95% 3
Reduction in the Lost Time Incidence Ratio
9
compared to previous year (Including
contractors)
3.5 4.8 4.1 4.0
Reduction in the Incidence Frequency Rate
9
compared to previous year (Including
contractors)
3.5 7.6 6.3 4.1
ESG
9
Communities, inclusion and diversity
12
5.0 5 5 5
Water consumption (m
3
/Tonne)
9
2.5 0.436 0.486 2.2
CO2 emissions (CO2/Tonne)
9
2.5 0.018 0.019 2.4
Synergies and
teamwork
Increase collective teamwork
10
Discretionary target as agreed by the Chairman
1 95 95 1
Total
100 120.3
Adjustments
Safety
7
0 2 0 (1.2)
Environmental
11
0 0 0 0
Other:
Special adjustment due to special/extraordinary events, determined by the
Remuneration Committee (maximum 15 points)
0 0 0 0
Total
100 119.1
1. The performance evaluation’s items, weights and targets (Budget) will be
determined on a yearly basis according to the Strategic Plan.
2. Metals prices, Silverstream and Devaluation effects will be eliminated.
Budgeted metals prices: Gold – 2,500 US$/oz; Silver – 29.0 US$/oz; Lead – 0.90 US$/
lb; Zinc – 1.30 US$/lb Budgeted exchange rate: 20.5 MX$/US$
Increase of 1.0 point per each 1% increase in EBITDA. Decrease of 1 point in case of a
1% decline in EBITDA.
3. Total production in silver equivalent ounces. Silver production + (Gold production X
70) + Lead and Zinc production (converted into silver equivalent ounces at
prevailing price and NSR terms). Same conversion rate will be used for real
production and target.
Total production = 52.7 moz silver + (0.53 moz gold X 75) + (56,000 lead tonnes
X .000074) + (87,134 zinc tonnes X .000091) 104.9 moz AgEq = 52.7 moz silver + 40.1
moz AgEq from gold + 4.1 moz AgEq from lead + 7.9 moz AgEq from Zinc.
Increase of 1.0 point per each 1% increase. Decrease of 1 point in case of a 1% decline.
4. Proportional increase in points per increase in Resources above target. A
proportional decrease in points will be applied in case of an increase in Resources
below the target. Weighted Average Resources according to Quality.
5. Increase of 2.0 points per each 1% of Resources increase above target. A decrease
of 2 points per each 1% below target will be applied. Weighted Average Resources
according to Quality.
6. Relevant ongoing projects which progress will be measured compared to plan.
7. 10 points in case of zero fatal accidents (premium of 10 points over the weight).
Zero points in the case of one accident. The total score will be reduced by 1% in the
case of two fatal accidents. From the remaining total score, an additional 2% will be
reduced in the case of three fatal accidents. In the case of four fatal accidents, an
additional 3% will be reduced from the remaining total score and so on
consecutively. Includes own workers and contractors.
8. Progress of the programme set by the Sustainability Development area. The
Chairman and coordinator will set the score.
9. Decrease of the previous year corresponding rate.
10. Foster teamwork and relationship improvement with Group companies. The
Chairman and coordinator will set the score.
11. The total score is reduced by 2% in the case of an environmental incident. From
the remaining total score, an additional 3% will be reduced in the case of two
incidents. In the case of three incidents, an additional 4% will be reduced from the
remaining total score and so on consecutively.
12. Determined by the HSECR Chairman and coordinator according to annual
programme.
187
Fresnillo plc Annual Report and Accounts 2025
Reconciliation of adjusted net profit targets and outcomes to the financial statements
US$ million 2025 2024
Profit for year as shown in financial statements 1,573.8 226.7
Interest, tax, depreciation and amortisation 1,033.2 1,138.4
Adjustments:
Changes due to currency fluctuations 60.5 (68.3)
Changes due to year-on-year movements in metals prices (including the effects of metals hedging) (1,313.8) (696.3)
Changes due to the movement in the valuation of the Silverstream contract 189.2 182.3
Adjusted EBITDA total for bonus purposes 1,542.9 782.7
The Chief Executive Officer is prohibited from participating in
the PTU scheme and may receive a bonus not greater than six
months’ pay. All other Mexican employees are eligible for PTU
payments annually. The PTU payable in respect of 2025
payments are capped at the higher of three months’ salary or
the average PTU received in the last three years.
2026 Bonus targets
The Remuneration Committee will be adapting the key
performance indicators, weightings and measures in tandem
with a revision to the structure of the Annual Bonus Plan
which will be set out in the Notice of Meeting for the 2026
AGM as part of the Directors' Remuneration Policy to be
submitted for shareholder approval at the AGM.
The 2026 targets, performance against those targets and the
basis of calculation of bonus points awarded will be disclosed
in next year’s Directors’ Remuneration Report.
Pension entitlement
Policy on pensions
The Group operates two pension schemes: (i) a defined benefit
scheme which was closed to new members on 1 July 2007
with benefits frozen at this date for existing members, subject
to indexation with reference to the Mexican National
Consumer Price Index; and (ii) a defined contribution scheme
(which was introduced on 1 July 2007). Membership of the
latter scheme is voluntary. Members earning a salary of no
more than 25 times the minimum wage in force from time-to-
time may make contributions of 5% to the scheme.
On behalf of members earning a salary of no more than 25
times the minimum wage in force from time to time, the
employing company may make contributions of 5% to the
scheme. The employing company may also make additional
contributions between 5-8% of salary to this plan. Members
may elect to match percentages between 5-8% of salary.
Executive Directors may participate in the Group’s pension
schemes on the same basis as any other employee.
Mr Alvídrez is a member of the defined benefit scheme in
relation to services with the Company prior to 1 July 2007. He is
also a member of the defined contribution scheme. He is
expected to retire at his normal retirement age of 60 years.
Chairman and Non-executive Directors
Policy on Chairman and Non-executive Directors
The remuneration of the Chairman of the Company and the
Non-executive Directors consists of fees that are paid quarterly
in arrears. The Chairman and Non-executive Directors do not
participate in any long-term incentive or annual bonus
schemes, nor do they accrue any pension entitlement. The
Chairman of the Company does not receive any fees for acting
as Chairman other than his fees as a Non-executive Director.
The fees payable to Non-executive Directors were reviewed in
February 2026 and are now calculated on the following bases:
• A base fee of £46,200 per annum is paid to each non-UK-
based Non-executive Director to reflect the time
commitment and level of involvement they are required to
make in the activities of the Board as a whole.
• There are no set fees for membership of any Board
committees or for the chairmanship of the Board, other
than as follows:
– The UK-based Non-executive Directors receive a higher
fee, currently £115,560 per annum, to reflect the additional
time commitment that they make in order to travel to
Board meetings in Mexico and for responsibilities as
committee members and, where appropriate, as Senior
Independent Director and/or Chairman of any
committee.
– The Chairman of the Audit Committee will receive an
additional fee of £19,800 per annum.
– Members of the Audit Committee will receive an
additional fee of £6,600 per annum.
188
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
ANNUAL REPORT ON REMUNERATION 2025
The key terms of the Non-executive Directors’ letters of appointment for the Directors serving at the end of the year are as
follows:
Director
Date of original letter
of appointment
1
Notice period from
Director to the
Company Duration of term
2
Fees p.a.
Alejandro Baillères 16 April 2012 3 months 1 year £42,000
Arturo Fernández 15 April 2008 3 months 1 year £42,000
Fernando Ruiz 15 April 2008 3 months 1 year £42,000
Charles Jacobs 11 April 2014 3 months 1 year £108,000
Alberto Tiburcio 4 May 2016 3 months 1 year £60,000
Dame Judith Macgregor 22 May 2017 3 months 1 year £108,000
Georgina Kessel 7 May 2018 3 months 1 year £48,000
Guadalupe de la Vega 30 May 2020 3 months 1 year £42,000
Eduardo Cepeda 24 June 2021 3 months 1 year £42,000
Héctor Rangel 28 June 2021 3 months 1 year £48,000
Luz Adriana Ramírez 21 May 2024 3 months 1 year £42,000
Rosa Vázquez 17 May 2024 3 months 1 year £48,000
1. Copies of the Directors’ letters of appointment and service agreements are available for inspection at the Company’s registered office.
2. Unexpired term: the Non-executive Directors all have rolling contracts which are subject to the annual re-election at the Annual General Meeting. The current term
expires on the date of the next Annual General Meeting, but the appointment will continue after that date provided that each Director is re-elected at the AGM.
Shareholders and remuneration
Policy on engagement with shareholders on remuneration
The composition of the Remuneration Committee has been
designed to ensure that the views of the controlling
shareholder (through the membership of the Chairman of the
Board on the Committee) and the independent shareholders
can be represented. The Remuneration Committee has
considered the views of organisations such as Institutional
Shareholder Services (ISS) and the Investment Association
both generally and as reported to the Company in relation to
its own executive remuneration practices prior to each Annual
General Meeting, when considering the Remuneration Policy
and its application.
AGM voting on the Remuneration Report
The Remuneration Committee’s approach to executive
remuneration has received strong support from shareholders
at every Annual General Meeting since the Company’s listing
on the London Stock Exchange in 2008. More than 65% of
independent share votes cast on the advisory vote at each
AGM have been in favour of the Directors’ Remuneration
report.
Year
All shares voted Independent shares voted
No. of votes
withheld
For Against For Against
2023: Remuneration policy 94.15% 5.85% 68.15% 31.85% 752,104
2023: Remuneration Report 98.47% 1.53% 91.74% 8.26% 17,493
2024: Remuneration Report 98.72% 1.28% 94.07% 5.93% 10,250
2025: Remuneration Report 99.22% 0.78% 94.99% 5.00% 3,118,818
Advisers to the Remuneration Committee
Remuneration consultants (Mercer, Hay Group and Data
Compensation) are engaged by Group companies to provide
benchmarking information on remuneration across the
Fresnillo Group but not to provide guidance on the structure
of remuneration. Such information is taken into account when
considering Executive Committee remuneration. Willis Towers
Watson advises the Remuneration Committee on executive
remuneration matters from time to time. During 2025 the
Group paid Willis Towers Watson US$150k (2024: US$5k). All of
the consultants that the Group uses are independent of the
Company and each of the Directors. No remuneration
consultants are directly engaged by the Remuneration
Committee itself.
The Company Secretary ensures that the Remuneration
Committee fulfils its duties under its terms of reference and
arranges regular updates to the Remuneration Committee on
relevant regulatory developments in the UK. The Group
human resources department provides information on
Mexican market trends and compensation structures for the
broader employee population in the Fresnillo Group.
189
Fresnillo plc Annual Report and Accounts 2025
Additional information on remuneration
Share price performance
As required by the Regulations, the following graph sets out the performance of the Company’s share price since its listing
compared to the FTSE 100 Index. As the Company was a constituent of the FTSE 100 Index for most of the year, this is deemed to
be the most appropriate index for comparative purposes for the year ended 31 December 2025.
Chief Executive Officer’s service agreement
During the year, Mr Alvídrez served as Chief Executive Officer
but was not a member of the Board. Mr Alvídrez is employed
under a contract of employment with Servicios
Administrativos Fresnillo S.A. de C.V., a subsidiary of Fresnillo
plc. Mr Alvídrez’ contract commenced on 15 August 2012 and is
governed by Mexican Federal Labour Law. Mr Alvídrez’ service
agreement does not have a fixed term and may be terminated
in writing by either party. There is no provision in Mr Alvídrez’
service agreement entitling him to additional compensation
for termination other than those required by Mexican labour
laws for termination without cause. No benefits are payable on
termination.
Under his service agreement, Mr Alvídrez is entitled to 26
working days’ paid holiday per year. He is not entitled to profit-
sharing (PTU). Mr Alvídrez is also entitled to life insurance, the
use of a chauffeur and company car, the payment of medical
insurance premiums covering limited expenses and check-
ups, meals and subsistence payments and club subscriptions.
Total remuneration of the Chief Executive Officer
The total remuneration of the Chief Executive Officer for the past ten years, in US dollars, has been as follows
Year ending 31 December 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total remuneration US$‘000s
Octavio Alvídrez 1,111 1,072 886 1,164 939 975 916 1,370 2,043 2,059
Percentage change on previous
year
(4.7%) (3.5%) (10.7%) 31.4% (19.3%) 3.8% 6.1% 49.6% 49.1% 0.8%
Proportion of maximum bonus
paid to CEO in year
Octavio Alvídrez 66.66% 33.33% Nil% Nil% 20.83% Nil% Nil% Nil% 100.00% 100.00%
190
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
ANNUAL REPORT ON REMUNERATION 2025
Changes in Directors’ remuneration 2021-2025
The changes in Directors total remuneration between 2021 and 2025 and a comparison with changes in average employee
remuneration over that period are as follows:
2025 2024 2023 2022 2021
Year-on-year change (%)
3
Salary Bonus Benefits Salary Bonus Benefits Salary Bonus Benefits Salary Bonus Benefits Salary Bonus Benefits
Directors
4
Alejandro Baillères 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (13.12%) n/a n/a (8.26%) n/a n/a
Arturo Fernández 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (13.12%) n/a n/a (8.26%) n/a n/a
Charles Jacobs 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (14.66%) n/a n/a (11.53%) n/a n/a
Georgina Kessel 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (11.33%) n/a n/a 2.27% n/a n/a
Judith Macgregor 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (13.12%) n/a n/a (8.26%) n/a n/a
Fernando Ruiz 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (13.12%) n/a n/a (8.26%) n/a n/a
Alberto Tiburcio 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (13.12%) n/a n/a (8.26%) n/a n/a
Guadalupe
de la Vega 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a (13.12%) n/a n/a 67.51% n/a n/a
Eduardo Cepeda 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a 66.02% n/a n/a (8.26%) n/a n/a
Héctor Rangel 3.0% n/a n/a 13.1% n/a n/a 11.09% n/a n/a 66.02% n/a n/a (8.26%) n/a n/a
Luz Adriana Ramírez7 66.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Rosa Vázquez7 88.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Chief Executive Officer
2
Octavio Alvídrez 2.4% 2.3% 23.85% 15.0% n/a
6
45.1% 21% 0% 30.83% 5.98% 0% 25.0% 18.07% n/a
5
9.09%
Average employee
remuneration
1
3.68% 34.41% -4.51% 0.1% 6.8% 9.2% 36% 87.34% 29.65% 11.06% 11.49% 6.26% 7.06% 2.78% 6.82%
1. Average employee remuneration is calculated by dividing the relevant personnel costs (as disclosed in note 8 to the consolidated financial statements on page 237) by
the average number of employees (as disclosed in note 8(b) to the consolidated financial statements on page 237). PTU is excluded in order to make a like-for-like
comparison with the Chief Executive Officer who does not receive PTU.
2. The Chief Executive Officer’s salary, bonus and benefit amounts are excluded from the calculation of average employee remuneration. No bonus was paid to the Chief
Executive Officer for 2021, 2022 and 2023. A bonus of 6 months' salary was paid to the Chief Executive Officer in 2024.
3. Calculated using the data from the single figure table in the annual report on remuneration (page 184)) in US dollars. The Non-executive Directors are paid fees in UK
sterling and therefore will be subject to year-on-year changes in exchange rates.
4. The Non-Executive Directors do not receive bonuses or benefits from the Company.
5. The Chief Executive Officer’s salary, bonus and benefit amounts were excluded from the calculation of Average Employee Remuneration in 2019 and 2020. No bonus was
paid to the Chief Executive Officer for 2019 but a bonus of 2.5 months was paid for 2020, and no bonus was paid to the Chief Executive Officer for 2021, thus it is not
possible to present the change as a meaningful percentage.
6. No bonus was paid to the Chief Executive Officer for 2023 but a bonus of 6 months was paid for 2024, thus it is not possible to present the change as a meaningful
percentage.
7. Luz Adriana Ramírez and Rosa Vázquez were elected to the Board on 21 May 2024 but served for a full year in 2025. Rosa Vasquez also served on the Audit Committee for
part of the year in 2025, thus receiving an additional committee fee for that period.
Relative importance of the spend on pay
2025 2024 % change
Staff costs (US$000s)
1
264,357 253,849 4.1%
Distributions to shareholders (US$000s) 653,595 78,111 736.8%
Income tax mining rights and profit sharing paid 369,482 97,062 280.7%
Purchases of property, plant and equipment 400,141 370,542 8.0%
1. Staff costs are taken without PTU in order to make a like-for-like comparison with the Chief Executive Officer who does not receive PTU.
Payments to new or departing Directors
During the year, the Company has not recruited any Executive Directors; nor has it made any payments to past Directors or
made any payments to Directors for loss of office.
This report has been approved by the Board of Directors of Fresnillo plc.
Signed on behalf of the Board.
Alberto Tiburcio
Chairman of the Remuneration Committee
2 March 2026
191
Fresnillo plc Annual Report and Accounts 2025
Introduction
This Remuneration Policy of the Company has been prepared
in accordance with The Large and Medium-sized Companies
and Groups (Accounts and Reports) (Amendment)
Regulations 2013 (‘the Regulations’). The effective date of the
new Policy will be 19 May 2026. The full text of the current
Remuneration Policy can be found on pages 206 to 210 of the
Fresnillo plc 2022 Annual Report and Accounts. Should the
Remuneration Committee conclude that amendments are
needed to the Remuneration Policy in respect of the
executive's variable remuneration, an additional resolution will
be proposed at the 2026 Annual General Meeting to adopt a
revised Remuneration Policy, as set out in the Notice of AGM,
with such revised Remuneration Policy, if approved,
superseding the Remuneration Policy set out herein and
taking effect from 19 May 2026.
As required by English law, the Company’s approved
Remuneration Policy is binding in relation to Directors. The
Company currently has no Executive Directors who would be
bound by the Remuneration Policy. However, the Company
will (as it has previously done) treat the Chief Executive Officer
as if he were an Executive Director for the purposes of the
Remuneration Policy and for reporting on his remuneration.
Details of the remuneration paid to the Chief Executive Officer
for the year ended 31 December 2025 can be found in this
year’s Annual Report on Remuneration at page 184.
Remuneration policy
The Group’s Remuneration Policy seeks to ensure that the
Company is able to attract, retain and motivate its Executive
Directors and members of the Executive Committee. The
retention of key management and the alignment of
management incentives and the creation of shareholder value
being key objectives of this policy.
Setting base salaries for Executive Directors and members of
the Executive Committee at an appropriate level is a key to
managerial retention in Mexico. Therefore, the Remuneration
Committee seeks to ensure that salaries are market
competitive both within the Mexican context and
internationally for comparable companies. Total
compensation is set within a range around the median level
for the Company’s peer group within Mexico and
internationally, total remuneration is benchmarked triennially
to ensure that the whole remuneration package is maintained
at this level over the long term. Salaries are positioned within
the range according to experience and service.
The table below sets out the key elements of Executive
Directors’ pay set out in the Remuneration Policy
(the policy table):
Provides the core reward for the role.
Operation Normally reviewed annually and fixed for 12 months starting on 1 April each year. Each review will
take into account:
• Role, experience and performance.
• Average workforce salary adjustments.
• Mexican economic factors.
• Comparison with the Company’s peer group in Mexico and internationally.
• The effect an increase will have on the overall levels of an Executive Director’s remuneration.
When benchmarking salaries, the Remuneration Committee will normally benchmark by
reference to companies of similar size and complexity to the Company in Mexico and
internationally. Details of the peer group used will be disclosed in the Annual Report
on Remuneration.
Maximum value Subject to the review process described above, the maximum value of an Executive Director’s base
salary will be determined by the Remuneration Committee in its absolute discretion and ordinarily
it will be increased in line with increases applied across the whole workforce. In exceptional
circumstances, an Executive Director’s salary may be increased by up to, but never more than, 10%
above the average pay increase for the whole workforce of the Company in any financial year. The
rationale for any such increase will be fully explained in the Annual Report on Remuneration.
Performance metric The Remuneration Committee considers individual salaries at the appropriate review meeting
each year by reference to the factors noted under the Operation heading in this Policy Table.
Discretion The Remuneration Committee established the Company’s comparator peer group in Mexico and
internationally as part of a triennial review which it undertook in October 2023 and will be reviewed
again in October 2026, if not before. The Committee will report on the outcome of these reviews
within the relevant Annual Report on Remuneration.
Base salary
192
Governance
Fresnillo plc Annual Report and Accounts 2025
APPENDIX: PROPOSED DIRECTORS’ REMUNERATION POLICY
Rewards the achievement of both short and long-term financial and strategic business targets and delivery of personal
objectives.
Operation Targets are renewed annually and relate to the strategic aims of the business as a whole. A scoring
system is used for the plan. Each objective set for the executive at the beginning of the year is
allocated a points-rating which represents a median performance target for that objective. Upper
and lower thresholds are set to allow for outstanding performance and to ensure that
underperformance is not rewarded. For each member of the Executive Committee (including the
Chief Executive Officer, the Chief Financial Officer, the Vice President of Exploration and the Chief
Operating Officer), a bonus is only payable if the aggregate performance equals or exceeds 100
points. Bonus payments are paid for aggregate performance against target at or above 100 points
on a prorated basis between two months’ salary paid for the achievement of 100 points and six
months’ salary paid for the achievement of 115 points or more, as follows:
Number of points:
100.00
100.01-115.00
115.01+
Months’ salary paid
Two months’ salary
Prorated on a linear basis between two months’ salary and six months’ salary
Six months’ salary
Maximum value The maximum percentage of salary payable as an annual bonus to an Executive Director is 50%
(six months’ salary) and is paid where the Executive Director achieves 115.01 points or more under
the Annual Bonus Plan (the target is 100 points).
Performance metric The KPI targets set out in the previous table will apply and are intended to focus on risks that are
within the control and influence of management. Thus, the management of safety, security,
project, human resource, exploration teamwork, synergies, community and environmental risks
are all currently implicitly covered within the KPIs. The KPIs and targets, which are set by reference
to the reserves and resources and financial metrics at the previous year end and/or set in the
budget for the forthcoming financial year are also designed to ensure that both short-term
objectives and the long-term development of the Fresnillo Group are given equal priority. The
achievement of project milestones will be used to measure project management performance
and the Committee’s discretion will be applied for subjective metrics such as teamwork.
Details of the measures, targets and performance which are tested on an annual basis will be
provided in the relevant Annual Report on Remuneration.
The Remuneration Committee considers that the KPIs, upon which bonuses are based, may need
to evolve from year-to-year in line with the strategy and therefore it retains the discretion to make
appropriate adjustments to the KPIs themselves, the bonus bands within the overall maximum
and the individual KPI weightings from year-to-year.
Discretion The Remuneration Committee retains the discretion to adjust bonus payments in the following
circumstances:
(i) A downward adjustment where the KPI outcomes would result, in the opinion of the
Remuneration Committee, in a bonus payment which cannot be justified by the Company’s
financial or operational performance during the year (or in respect of previous years).
(ii) A modest upward adjustment may be considered either: (i) where factors outside the control
of Executive Directors (e.g. force majeure circumstances) have significantly depressed the level
of points awarded (and in deciding whether and to what extent an adjustment is merited, the
Remuneration Committee will consider the appropriateness of the response to those
circumstances); and/or (ii) when the Executive Directors, individually or collectively, have
demonstrated a level of performance which has resulted in significant benefits to the
Company which, in the opinion of the Remuneration Committee, merits an increase in the
number of points awarded.
(iii) Poor executive response to adverse health, safety or environmental performance during the
year, in which case a downward adjustment would be considered.
(iv) Where the bonus payment is not, in the opinion of the Remuneration Committee,
commensurate with the wider stakeholder experience (especially those of employees in
relation to remuneration outcomes for the year and/or shareholders in relation to dividend
payments), a downward adjustment may be considered.
The use of any such discretions will be fully explained in the relevant Annual Report on
Remuneration.
Annual bonus
Note: Any adjustment in individual KPI weightings will not result in their achievement being any less difficult to satisfy.
193
Fresnillo plc Annual Report and Accounts 2025
Help recruit and retain employees.
Operation Executive Directors may (at the Company’s discretion) be offered life insurance, meal and
subsistence benefits, the payment of premiums for medical insurance covering expenses and
check-ups (for themselves and their family members) death in service benefits and remote
working expenses (as applicable). Benefits may be changed if the Company’s policy on benefits
changes.
Maximum value The maximum value of any benefits provided will be determined by the Company policy on
benefits that is applicable from time to time.
Performance metric None.
Discretion The Remuneration Committee may consider changes to the benefits made available to Executive
Directors in line with any changes in the Company’s policy for benefits provided to all employees.
Benefits
Rewards continued employment and sustained contribution.
Operation The Group operates a defined contribution scheme. Executive Directors are entitled to
membership of the defined contribution scheme.
Maximum value The maximum Company contribution for any employee (including Executive Directors) may not
exceed 13% of salary. Company contributions made for Executive Directors will be aligned with
Company contributions provided to the majority of the workforce from time to time.
Performance metric None.
Discretion The Remuneration Committee may consider changes to the pension contributions made for
Executive Directors, including increases, in line with any changes in the Company’s policy for
pension contributions provided to all employees.
Pension
Alignment of executive remuneration and the market
In setting the fixed remuneration of Executive Directors and
the members of the Executive Committee, information
relating to the mining company comparators is provided by
various consultants. Information relating to the Mexican
economic metrics is collated by management for the
Remuneration Committee to consider.
Reviews of the Executive Directors’ and Executive Committee
members’ remuneration are conducted by the Remuneration
Committee’s remuneration advisers from time to time at the
request of the Remuneration Committee. These enable the
Remuneration Committee to validate the Company’s policy
towards remuneration and ensure that it is globally as well as
locally competitive. The analysis evaluates the elements of
base salary, short-term compensation (guaranteed payments
and short-term bonus) and long-term compensation
(primarily stock programmes) separately. With assistance from
its remuneration advisers, the Remuneration Committee has
established a peer group which will be used to benchmark
any Executive Director’s and any Executive Committee
member’s remuneration (the ‘Peer Group’) to ensure that it
remains within the parameters set out in this Policy (see page
[180] of the Annual Report on Remuneration). The Peer Group
will be updated where necessary, to ensure that it remains an
appropriate comparator group of companies.
The consideration of wider employment conditions and
remuneration
When setting pay and benefits for Executive Directors and
members of the Executive Committee, the Remuneration
Committee takes account of pay and conditions across the
Group. It will consider the overall pay increase percentage
negotiated each year with employee representatives as its
starting point taking account of inflation and other
information supporting the annual pay award for employees.
Subject to the 10% limit in the Policy Table, the Remuneration
Committee may agree pay increases above or below the
agreed percentage in exceptional circumstances, where in its
discretion it considers such variance to the norm to be
justified. Other than the Willis Towers Watson report
specifically commissioned by the Remuneration Committee,
the same benchmark reports are used in the evaluation of
executive and employee remuneration, thus providing a
common approach to both.
Below Board level, a statutory profit-sharing arrangement
(PTU) is operated which in some years has enabled employees
to receive significant levels of bonus in line with the increased
profitability of the relevant employing company. The Chief
Executive Officer does not participate in a PTU scheme within
the Fresnillo Group. Members of the senior management
group below Board-level are employed by Servicios
Administrativos Fresnillo S.A. de C.V. or Operaciones Fresnillo,
S.A. de C.V., which pay annual PTU payments. However, such
payments are modest.
The Group operates two pension schemes: (i) a defined benefit
scheme which was closed to new members on 1 July 2007
with benefits frozen at this date for existing members, subject
to indexation with reference to the Mexican National
Consumer Price Index; and (ii) a defined contribution scheme
(which was introduced on 1 July 2007). Membership of the
latter scheme is voluntary, members earning a salary of no
more than 25 times the minimum wage in force from time to
time may make contributions of 5% to the scheme.
On behalf of members earning a salary of no more than 25
times the minimum wage in force from time to time the
employing company may make contributions of 5% to the
scheme. The employing company may also make additional
contributions between 5-8% of salary to this plan. Members
may elect to match percentages between 5-8% of salary.
194
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
APPENDIX: DIRECTORS’ REMUNERATION POLICY
Executive Directors may participate in the Group’s pension
schemes on the same basis as any other employee.
The Remuneration Committee does not consult with
employees in setting Directors’ remuneration. Engagement
with employees as a stakeholder group is primarily the
responsibility of the Board; however, where appropriate, the
Remuneration Committee will consider any relevant feedback
from employees to the Board in relation to remuneration
matters when discharging its responsibilities under this Policy.
Engagement with shareholders on remuneration
The composition of the Remuneration Committee has been
designed to ensure that the views of the controlling
shareholder (through the membership of the Chairman of the
Board on the Committee) and the independent shareholders
can be represented. The Remuneration Committee has
considered the views of organisations such as Institutional
Shareholder Services (ISS) and the Investment Association
both generally and as reported to the Company in relation to
its own executive remuneration practices prior to each Annual
General Meeting, when considering the Remuneration policy
and its application. Details of votes cast for and against the
resolutions to approve the proposed Remuneration Policy and
annual report on remuneration for each year will be
announced to the market as soon as practicable after the
conclusion of the annual general meeting at which such
resolutions are voted upon.
Policy on recruitment
The Remuneration Committee will consider the remuneration
of new Executive Directors by reference to the Policy Table set
out above. The Remuneration Committee will not, as a matter
of standard practice, pay sign-on payments or compensate
new Directors for any variable remuneration forfeited from any
employment prior to joining the Board. However, it may
choose to do so in exceptional circumstances, when it
considers this to be in the best interests of the Company (and
therefore shareholders), in which case any buy-out payments
will not exceed the remuneration relinquished and will mirror
(as far as possible) the delivery mechanism, time horizons and
performance requirements attached to that remuneration.
Where possible this will be facilitated through the Company’s
existing Annual Bonus Plan, as set out in the Policy Table
above, but if not, the Remuneration Committee may fulfil this
requirement in line with the provisions of 9.3.2 of the UK
Listing Rules.
For the avoidance of doubt, the value of any ‘sign-on’ and/or ‘buy-
out’ payments will not count towards the limits on annual bonus
in the Policy Table above. Any such payments will be fully
explained in the next annual report on remuneration both as to
the reason for payment and the rationale for the quantum.
Salary will be set so as to be market competitive both within
the Mexican context and internationally for comparable
companies and taking account of the experience and seniority
of the appointee coming into the new role. The Remuneration
Committee is likely to set base salaries below median on
appointment while retaining discretion to award increases
during the first and, possibly, subsequent years to bring
salaries into the normal range expected for Executive
Directors, in line with the Company’s stated Policy. Such
increases will not ordinarily exceed the maximum level set out
in the Policy Table but may be subject to a maximum which is
no more than 20% higher than the cap set out in the Policy
Table. New Executive Directors will receive benefits and
pensions in line with the Company’s existing Policy and will be
able to participate in the Annual Bonus Plan on a pro-rated
basis for the portion of the financial year for which they are in
post although the Remuneration Committee may use its
discretion to ensure that benefits and pension contributions
are offered at a competitive level compared to the market. The
maximum level of variable pay for new recruits will be the
same as that set out in the Policy Table for existing employees
(pro-rated as necessary).
In the case of an internal appointment or promotion, any
variable pay element awarded in respect of the prior role
will be allowed to pay out according to its original terms
stipulated on grant or adjusted as considered desirable to
reflect the new role.
Where appropriate, to recruit, promote or transfer individuals
to a different location of residence, the Remuneration
Committee may also, to the extent it considers reasonable,
approve the payment of one-off relocation and repatriation
related expenses. It may also pay or make a contribution
towards any legal fees appropriately incurred by the individual
in connection with their employment by the Group.
Policy on loss of office
Other than in circumstances of gross misconduct, Executive
Directors and members of the Executive Committee, including
the Chief Executive Officer, leaving employment from the
Group, will be entitled to receive salary and pro-rated annual
bonus based on performance to the date of leaving. Statutory
entitlements are payable according to Mexican labour law,
based on length of service. Employee and Company pension
contributions are payable in accordance with the applicable
pension plan rules. Mexican labour law does not make any
provision for employers and employees to give or receive notice
of termination of employment. Therefore, the Committee will
not generally make payments in lieu of notice to departing
executives. However, the Committee reserves the right to make
additional payments where such payments are made in good
faith in discharge of an existing legal obligation (or by way of
damages for breach of such an obligation), or by way of
settlement or compromise of any claim arising in connection
with the termination of an Executive Director’s office or
employment or by way of contribution to legal fees
appropriately incurred by the individual in connection with the
termination of their employment by the Group. No contractual
commitments concerning loss of office were entered into with
any Director prior to 27 June 2012.
Annual Bonus Plan and policy on variable remuneration
It is the Company’s policy not to use its equity to incentivise
long-term performance. The Company’s core strategy is one of
long-term sustainable growth. Sustainable growth in mining
requires the steady and safe expansion of the Group’s
operations through the discovery of new resources and
construction, maintenance and/or expansion of new mines.
No distinction is therefore made between short and long-term
incentives.
The Company operates a single cash-based Annual Bonus
Plan for Executive Directors and the members of the
Executive Committee, including the Chief Executive Officer as
described in the Policy Table above. In the event of a change
of control, the Remuneration Committee shall, in accordance
with the Annual Bonus Plan rules, as amended from time to
time and in its absolute discretion, determine whether and to
what extent the annual bonus will vest and be paid early. The
Committee may also decide that the bonus award will vest to
a greater or lesser extent having regard to the Director’s or the
Group’s performance or such other factors it may consider
appropriate. The Remuneration Committee may decide that
bonus awards will vest pro-rata to take account of early
vesting or in full.
195
Fresnillo plc Annual Report and Accounts 2025
Recovery of bonus
The absence of long-term incentives and the operation of
Mexican law makes it difficult to adopt claw-back
arrangements in order to recover bonuses that have already
been paid. The Remuneration Committee has considered
whether claw-back provisions should be incorporated into the
service agreement for the Chief Executive Officer. Given that
the Company does not operate any remuneration plans with a
timeframe of more than one year, the Remuneration
Committee does not consider that there is much value in
introducing claw-back provisions into the contractual
arrangements with the Chief Executive Officer at this stage.
However, within this Remuneration Policy, the Remuneration
Committee reserves the right to apply malus to bonuses
before they are paid where the KPI outcomes would result, in
the opinion of the Remuneration Committee, in a bonus
payment which cannot be justified by the Company’s financial
performance or the Executive Director’s personal performance
during the year (or previous years). In this case a downward
adjustment to the bonus payment would be applied
Illustrations of the application of the Remuneration Policy
for the Chief Executive Officer
The following table sets out the fixed and variable
remuneration of the Chief Executive Officer in the different
scenarios where he receives minimum, target and maximum
variable pay (based on 31 December 2025 remuneration).
Component Maximum value US$ thousands Minimum Target Maximum
Share incentives
1
US$2,059k
Annual bonus US$469k Annual variable pay
2, 4
US$1,746k 22.8%
US$1,590k 8.9%
Pension benefits 84 Fixed pay
3
100% 91.1% 77.2%
Other benefits 198
Base salary 1,308
1. Fresnillo plc does not operate any share option or share-based long-term incentive plans.
2. Variable pay consists only of remuneration where performance measures or targets relate only to one financial year.
3. Fixed pay includes salary, benefits and pension.
4. The Company does not operate any equity-based long-term incentives, consequently, the Company’s share price does not have any impact on the variable remuneration
paid to Executive Directors and members of the Executive Committee who do not sit on the Board.
External appointments
It is the Board’s policy to allow Executive Directors to accept
directorships of other quoted and non-quoted companies and
retain any fees or other remuneration for doing so, provided
that they have obtained the consent of the Chairman of the
Company. Any such directorships must be formally notified
to the Board.
Chairman and Non-executive Directors
The remuneration of the Chairman of the Company and the
Non-executive Directors consists of fees that are paid quarterly
in arrears. The Chairman and Non-executive Directors do not
participate in any long-term incentive or annual bonus
schemes, nor do they accrue any pension entitlement. Neither
the Chairman nor any of the Non-executive Directors has a
service contract with the Company; however, each has
entered into a letter of appointment with the Company.
Non-executive Directors’ letters of appointment
On their initial appointment, each of the Non-executive
Directors signs a letter of appointment with the Company. The
letters of appointment of serving Non-executive Directors are
drafted in accordance with Provision 18 of the UK Corporate
Governance Code, thus obliging them to retire at each Annual
General Meeting and be subject to annual re-election by
shareholders to serve for a further term of one year. The
amendments have been drafted such that renewed
appointment will not necessitate a new letter of appointment.
The Chairman of the Company shall not receive any fees for
acting as Chairman other than his fees as a Non-executive
Director. Each Non-executive Director is expected to commit a
minimum of 14 days per year in fulfilling their duties as a
Director of the Company.
The total fees for Non-executive Directors, including the
Chairman, will not exceed the maximum stated in the
Company’s Articles of Association.
The level of fees is reviewed periodically and takes into
account the time commitment, responsibilities, market levels
and the skills and experience required. Non-executive
Directors normally receive a basic fee and an additional fee for
specific Board responsibilities, including chairmanship or
membership of Board committees or acting as the Senior
Independent Director. Additional fees may be paid to Non-
executive Directors on a per diem basis to reflect increased
time commitment in certain limited circumstances.
Expenses incurred in the performance of non-executive duties
for the Company may be reimbursed or paid for directly by the
Company, as appropriate, including any tax and social security
due on the expenses.
Non-executive Directors may be provided with benefits to
enable them to undertake their duties.
Shareholding guidelines
Fresnillo has not introduced share ownership guidelines.
The Company does not operate share-based incentive
arrangements given that the culture for incentives in the
Mexican market does not favour share-based incentives.
Consequently, there would be neither opportunity nor
appetite for executives to build a shareholding in the
Company and therefore the Remuneration Committee has
not adopted any shareholding guidelines.
Payments under previous policies
Any remuneration payment or benefit, or any payment for loss
of office which a Director received or became entitled to under
a previous Remuneration Policy or before the person became
a Director (unless the payment was in consideration of
becoming a Director) shall lawfully be paid out under this
policy, even though it may not be consistent with, or otherwise
provided for under, the Policy Table set out above.
196
Governance
Fresnillo plc Annual Report and Accounts 2025
DIRECTORS’ REMUNERATION REPORT CONTINUED
APPENDIX: DIRECTORS’ REMUNERATION POLICY
In accordance with Section 415 of the Companies Act 2006, the Directors of Fresnillo plc present their report for the year ended
31 December 2025.
The Directors believe that the requisite components of this report are set out elsewhere in this Annual Report and/or on the
Company’s website www.fresnilloplc.com. The table below sets out where the necessary disclosures can be found.
Business performance
Results Results for the year ended 31 December 2025 are set out in the Financial Review on pages 47 to 55
and the consolidated income statement on page 214.
Dividends Information regarding the proposed dividend can be found in the Financial Review on page 55.
Information regarding dividend payments can be found in the notes to the financial statements
on page 247-248.
Strategic Report The Strategic Report can be found on pages 2 to 146.
Corporate Governance
statement
The Company’s statement on Corporate Governance can be found on page 155.
Directors’ Remuneration
Report
The Directors’ Remuneration Report can be found on pages 180 to 191.
Activities in research and
development
The Company does not have any research and development activities.
Future developments Details about the Company’s future developments can be found in the Strategic Report on pages
12 to 17.
Post-balance sheet events The Company completed the acquisition of Probe Gold Inc. on 21 January 2026 following the
conclusion of all of the relevant regulatory and court approvals. There were no other post-balance
sheet events.
Directors
Directors Directors that have served during the year and summaries of the current Directors’ key skills and
experience are set out in the Corporate Governance report on pages 150 to 154 and 166.
Directors’ interests Details of the Directors’ beneficial interests are set out in the Directors’ Remuneration Report on
page 185.
Directors’ indemnities The Company has given indemnities to each of the Directors in respect of any liability arising
against them in connection with the Company’s (and any associated company’s) activities in the
conduct of their duties. These indemnities are subject to the conditions set out in the Companies
Act 2006 and remain in place at the date of this report.
Directors’ and Officers’
Liability Insurance
Directors’ and Officers’ Liability Insurance cover is in place at the date of this report. Cover is
reviewed annually.
197
Fresnillo plc Annual Report and Accounts 2025
FRESNILLO PLC DIRECTORS’ REPORT 2025
Articles of Association Any amendments made to the Articles of Association may be made by a special resolution of
shareholders. The following is a summary of the structure, rights and restrictions of the Company’s
share capital:
The Company has two classes of share capital: 736,893,589 Ordinary Shares of US$0.50 (‘Ordinary
Shares’) and 50,000 deferred shares of £1.00 each (Sterling Deferred Shares). The Ordinary Shares are
listed on the London Stock Exchange and the Mexican Stock Exchange. The rights and obligations
attaching to these shares are governed by UK law and the Company’s Articles of Association.
Ordinary shareholders are entitled to receive notice and to attend and speak at any general
meeting of the Company. On a show of hands, every shareholder present in person or by proxy (or
being a corporation represented by a duly authorised representative) shall have one vote, and on a
poll every shareholder who is present in person or by proxy shall have one vote for every share held.
The Notice of Annual General Meeting specifies deadlines for exercising voting rights and
appointing a proxy or proxies.
There are no restrictions on the transfer of the Ordinary Shares other than:
• The standard restrictions for a UK-quoted company set out in article 32 of the Articles of
Association.
• Where, from time to time, certain restrictions may become imposed by laws and regulations (for
example, insider trading laws).
• Pursuant to the Listing Rules of the Financial Conduct Authority whereby certain Directors,
officers and employees of the Company require the approval of the Company to deal in the
Ordinary Shares.
The appointment and replacement of Directors is governed by the Company’s Articles of Association,
the UK Corporate Governance Code, the Companies Act 2006 and related legislation. The Articles of
Association provide that a Director may be elected by ordinary resolution of the shareholders or
appointed by the existing Directors either to fill a casual vacancy or as an additional Director, but so that
the total number of Directors shall not thereby exceed the maximum in accordance with the
Company’s Articles of Association. At every Annual General Meeting, all Directors must automatically
retire. A retiring Director is eligible for election or re-election, as applicable.
Subject to the Articles of Association, the Companies Act 2006 and related legislation, and any
regulations as may be prescribed by special resolution of the Company, the Directors may exercise
all the powers of the Company.
No shareholder holds securities carrying special rights as to the control of the Company. There are no
limitations on the holding of securities. There are no restrictions on voting rights or any arrangements by
which, with the Company’s cooperation, financial rights carried by securities are held by a person other
than the holder of the securities. There are no agreements between holders of securities that are known
to the Company which may result in restrictions on the transfer of voting rights.
The Sterling Deferred Shares only entitle the shareholder to payment of the amount paid up after
repayment to ordinary shareholders on winding up or on a return of capital. The Sterling Deferred
Shares do not entitle the holder to payment of any dividend, or to receive notice or to attend and
speak at any general meeting of the Company. The Company may also at its option redeem the
Sterling Deferred Shares at a price of £1.00 or, as custodian, purchase or cancel the Sterling
Deferred Shares or require the holder to transfer the Sterling Deferred Shares. Except at the option
of the Company, the Sterling Deferred Shares are not transferable.
Branches outside the UK The Company’s operations are outside the UK. The Company, through various subsidiaries, has
established branches in a number of jurisdictions in which it operates (mainly in Mexico).
Change of control The following represents the likely effect on significant agreements with the Company were it to
be subject to a change of control:
• The Shared Services Agreement contains a discretionary provision for Servicios Administrativos
Peñoles, S.A. de C.V., to terminate the agreement should they so wish if there is a change of
control of Fresnillo plc.
• There are no formal ‘change of control’ provisions within the Met-Mex arrangements.
• The Group’s mining concessions are held by several of its Mexican subsidiary companies. As long
as the companies holding the mining concessions remain Mexican resident companies, there
are no provisions within the concession agreements which would be triggered by a change of
control of the Company.
The Company does not have any agreements with any Non-Executive Director, Executive Director
or employee that would provide compensation for loss of office or employment resulting from a
change of control.
Constitution
198
Governance
Fresnillo plc Annual Report and Accounts 2025
FRESNILLO PLC DIRECTORS’ REPORT 2025 CONTINUED
Stakeholders and policies
Section 172 Statement The Company’s Section 172 Statement can be found in the Strategic Report on page 27.
Workforce engagement Details of how the Company engages with its workforce can be found in the Strategic Report on
page 28.
Principal decisions Overview of the key decisions and discussions of the Board during the year and the main
stakeholder inputs into those decisions are set out in the Corporate Governance Report on pages
156 to 157.
Stakeholder engagement Details of the Company’s relevant stakeholders and how it engages with them are set out in the
Strategic Report on pages 20 to 26.
Payments to governments In July 2025, the Company approved and published a report disclosing payments made to
governments. https://www.fresnilloplc.com/investors/regulatory-announcements/
Modern Slavery Statement The Company has approved and published on its website its Modern Slavery Statement in
accordance with the Modern Slavery Act 2015. https://www.fresnilloplc.com/responsibility/our-
approach/modern-slavery/
Diversity policy In February 2025 the Company approved and published on its website its policy on diversity and
inclusion. https://www.fresnilloplc.com/media/nnwj11vk/fres-plc-diversity-and-inclusion-policy.pdf
The Company has also approved a policy on labour equality and non-discrimination. https://
www.fresnilloplc.com/responsibility/our-approach/code-of-conduct/
UK tax strategy The Company’s UK tax strategy for the financial year ending 31 December 2025 is published on its
website. https://www.fresnilloplc.com/media/33zbzk1k/131125-fresnillo-plc-tax-strategy-
statement-2025.pdf
Greenhouse gas emissions Details of the Company’s greenhouse gas emissions can be found on page 84 in the Sustainability
section of the Strategic Report.
Political contributions The Company did not make any donations to political organisations during the year.
Financial risk Details of the Company’s policies on financial risk management and the Company’s exposure to
price risk, credit risk, liquidity risk and cash flow risk are outlined in Note 31 to the financial
statements.
Shareholders and share capital
Share capital Details of the Company’s share capital are set out in Note 18 to the Financial Statements on pages
246-247.
Authority to purchase own
shares
The Company was authorised by a shareholders’ resolution passed at the Annual General Meeting
held in May 2025 to purchase up to 10% of its issued Ordinary Share capital. Any shares which have
been bought back may be held as treasury shares or, if not so held, must be cancelled
immediately upon completion of the purchase, thereby reducing the amount of the Company’s
issued and authorised share capital. This authority will expire at the forthcoming Annual General
Meeting and a resolution to renew the authority for a further year will be proposed. No shares were
purchased by the Company during the year.
Major interests in shares As at 31 December 2025, in accordance with DTR 5, the Company had been advised of the
following notifiable interests (whether directly or indirectly held) in its voting rights:
Industrias Peñoles, S.A.B. de C.V. holds 552,595,191 shares (74.99%).
As at 2 March 2026, the Company has not been advised of any changes to those notifiable
interests.
2025 Annual General
Meeting
At the 2025 Annual General Meeting (AGM), all resolutions put to shareholders were passed by a
majority. In accordance with UK Listing Rules applicable to companies with a controlling
shareholder, the resolutions relating to the re-election of the Independent Non-Executive
Directors required approval by a majority of votes cast by independent shareholders as well as all
the shareholders of the Company.
Further to the Code provisions, details of proxy voting are presented at the AGM and final figures
are announced to the London Stock Exchange and uploaded to the Company’s website as soon as
practicable after the AGM.
2026 Annual General
Meeting
The Company’s 18th Annual General Meeting will be held on 19 May 2026 and the Notice of
Meeting will be issued to all shareholders 20 business days before the meeting date. In planning
the business of each AGM, the Board takes account of institutional shareholder guidelines on pre-
emption rights, share buy-backs, and shareholder rights in relation to general meetings when
drafting the usual resolutions dealing with those matters. In each case, resolutions are presented
to the AGM to give the Board flexibility to respond to market developments.
199
Fresnillo plc Annual Report and Accounts 2025
UK Listing rules disclosures
UK Listing Rule (UKLR)
6.6.4
Disclosure requirements under UKLR 6.6.4, where applicable to the Company, are identified below
along with cross-references indicating where the relevant information is set out in the Annual
Report:
• Capitalised interest for the year ended 31 December 2025 can be found on page 243.
• Details of significant contracts with controlling shareholders can be found on page 178.
• Details pertaining to services provided to the Company by Peñoles are set out on pages 255 to
256.
• A statement in relation to the agreement that the Company has entered into with the
controlling shareholder can be found in the Corporate Governance Report on page 160.
The Directors’ report has been approved by the Board of Directors of Fresnillo plc.
Signed on behalf of the Board.
Alberto Tiburcio
Independent Non-Executive Director
2 March 2026
Fresnillo plc
Registered Office:
21 Upper Brook Street
London, W1K 7PY
United Kingdom
Company Number: 6344120
200
Governance
Fresnillo plc Annual Report and Accounts 2025
FRESNILLO PLC DIRECTORS’ REPORT 2025 CONTINUED
The Directors are responsible for preparing the Annual Report
and the Group and Parent Company financial statements in
accordance with applicable United Kingdom law and
regulations.
The Directors are required to prepare financial statements for
each financial year which present a true and fair view of the
financial position of the Company and of the Group and the
financial performance and cash flows of the Company and of
the Group for that period. The Directors have elected to
prepare the Group and Parent Company financial statements
in accordance with UK-adopted International Accounting
Standards.
In preparing those financial statements, the Directors are
required to:
• Select suitable accounting policies in accordance with IAS 8:
‘Accounting Policies, Changes in Accounting Estimates and
Errors’ and then apply them consistently.
• Make judgements and accounting estimates that are
reasonable and prudent.
• present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information.
• Provide additional disclosures when compliance with the
specific requirements in IFRSs is insufficient to enable users
to understand the impact of particular transactions, other
events and conditions on the Company and of the Group’s
financial position and financial performance.
• State whether UK-adopted international accounting
standards have been followed, subject to any material
departures disclosed and explained in the financial
statements.
• Prepare the accounts on a going concern basis unless,
having assessed the ability of the Company and the Group
to continue as a going concern it is appropriate to
presume that the Company and/or the Group will not
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
and Group’s transactions and which disclose with reasonable
accuracy at any time the financial position of the Company and of
the Group and enable them to ensure that the financial
statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Company and the
Group and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Under applicable UK law and regulations, the Directors are
responsible for the preparation of a Strategic Report, Directors’
Report, Directors’ Remuneration Report and Corporate
Governance Statement that comply with that law and
regulations. In addition, the Directors are responsible for the
maintenance and integrity of the corporate and financial
information included on the Company’s website. Legislation in
the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Neither the Company nor the Directors accept any liability to
any person in relation to the annual financial report except to
the extent that such liability could arise under English law.
Accordingly, any liability to a person who has demonstrated
reliance on any untrue or misleading statement or omission
shall be determined in accordance with section 90A and
schedule 10A of the Financial Services and Markets Act 2000.
Directors’ responsibility statement under the UK Corporate
Governance Code
In accordance with Provision 25 of the UK Corporate
Governance Code, the Directors consider that the Annual
Report and accounts, taken as a whole, is fair, balanced and
understandable and provides information necessary to enable
shareholders to assess the Company’s position, performance,
business model and strategy.
Responsibility statement of the Directors in respect of the
Annual Report and Accounts
Each of the Directors whose names are listed on pages 150 to
154 confirms that to the best of their knowledge:
a) The consolidated financial statements, prepared in
accordance with UK-adopted international accounting
standards give a true and fair view of the assets, liabilities,
financial position and profit and loss of the Company and the
undertakings included in the consolidation taken as a whole.
b) The Annual Report (including the Strategic Report
encompassed within the ‘Overview’, ‘Strategic Report’,
‘Performance’ and ‘Governance’ sections) includes a fair review
of the development and performance of the business, and the
position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face.
For and on behalf of the Board.
Alberto Tiburcio
Independent Non-Executive Director
2 March 2026
201
Fresnillo plc Annual Report and Accounts 2025
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Opinion
In our opinion:
• Fresnillo plc’s Group Financial Statements and Parent Company Financial Statements (the Financial Statements) give a true
and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2025 and of the Group’s profit
for the year then ended;
• the Group Financial Statements have been properly prepared in accordance with UK adopted international accounting
standards;
• the Parent Company Financial Statements have been properly prepared in accordance with UK adopted international
accounting standards as applied in accordance with section 408 of the Companies Act 2006; and
• the Financial Statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the Financial Statements of Fresnillo plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the year
ended 31 December 2025 which comprise:
Group Parent Company
Consolidated balance sheet as at 31 December 2025 Balance sheet as at 31 December 2025
Consolidated income statement for the year then ended Statement of changes in equity for the year then ended
Consolidated statement of comprehensive income for the year
then ended
Statement of cash flows for the year then ended
Consolidated statement of changes in equity for the year
thenended
Related Notes 1 to 16 to the Financial Statements including
material accounting policy information
Consolidated statement of cash flows for the year then ended
Related Notes 1 to 31 to the Consolidated Financial Statements,
material accounting policy information
The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international
accounting standards and as regards the Parent Company Financial Statements, as applied in accordance with section 408 of
the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Independence
We are independent of the Group and Parent in accordance with the ethical requirements that are relevant to our audit of the
Financial Statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Parent Company and we
remain independent of the Group and the Parent Company in conducting the audit.
Conclusions relating to going concern
In auditing the Financial Statements, we have concluded that the Directors’ use of the going concern basis of accounting in the
preparation of the Financial Statements is appropriate. Our evaluation of the directors’ assessment of the Group and Parent
Company’s ability to continue to adopt the going concern basis of accounting included the following procedures:
• We walked through the process to confirm our understanding of management’s going concern assessment process;
• The Group has a US$350 million revolving credit facility that contains financial covenants. We confirmed through inquiries of
management, inspection of bank statements and subsequent event procedures that, as of the date of our audit opinion, no
amounts have been drawn. As a result, the Group is not subject to covenant compliance criteria nor is it expected to be
throughout the going concern period, as none of the scenarios forecast a requirement to draw down on the facility;
• We verified the terms, maturity, interest rates, and any restrictions or covenants that are relevant to the senior notes and
revolving credit facility held by the Group at the date of approving of the Financial Statements against the original contracts;
• We assessed management’s forecasting accuracy by comparing forecasts to actuals for the year ended 31 December 2025 and
assessing the reasons for differences, including the effect of market-driven factors;
• We assessed the completeness of the factors included in the going concern assessment by verifying the consistency of key
assumptions with our understanding of the business and the environment within which it operates, including consideration of
climate related impacts;
• We obtained management’s going concern assessment, including a cash forecast for the going concern period which extends
to 31 December 2027. The Group has modelled plausible adverse changes and applied reverse stress testing in respect of prices
to assess the impact on the forecast liquidity of the Group (before considering the revolving credit facility);
202
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FRESNILLO PLC
• We tested the factors and assumptions included in the base case and reverse stress test scenario for the cash forecast, in
particular comparing forecast metals prices to analyst forecasts and comparing production forecasts to 2025 production, plant
capacity and our understanding of the business and its future plans;
• We considered the mitigating actions available to management and challenged whether these are within management’s
control, although no mitigating actions have been modelled due to the level of headroom in the downside scenario;
• We have challenged and concluded that management’s downside scenario modelled is appropriately severe and the price
reduction required to exhaust liquidity in the reverse stress test is remote; and
• We reviewed the Group’s going concern disclosures included in note 2 of the financial statements, in order to evaluate
whether the disclosures are appropriate.
Our key observations:
• The Directors’ assessment forecasts that the Group will maintain sufficient liquidity and will comply with the financial
covenants throughout the going concern assessment period in all reasonably plausible scenarios, prior to the consideration of
any mitigating actions available at their discretion. Considering the short-term nature of the cash forecasts, we do not consider
climate change to impact the estimates reflected in the going concern assessment.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group and Parent Company’s ability to continue as a going concern
for the period which extends to 31 December 2027.
In relation to the Group and Parent Company’s reporting on how they have applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the directors’ statement in the Financial Statements about whether
the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities, and the responsibilities of the Directors with respect to going concern, are described in the relevant sections
of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the
Group’s ability to continue as a going concern.
Overview of our audit approach
Audit scope • Out of 12 components in scope, we performed an audit of the complete financial information of eight
components being the six operating mining units (Fresnillo, Penmont, Saucito, Juanicipio, San Julián and
Ciénega), the Parent Company and Comercializadora de Metales Fresnillo (CMF), the entity which held the
Silverstream contract. These eight components represented 100% of revenues, 100% of the Silverstream
revaluation effects and 97% of total assets.
• We performed specified procedures on certain balances at a further four components. These components
represented 3% of total assets.
Key audit
matters
• Recognition of related party transactions, including revenue recognition.
• Recoverable amount of mining assets.
• Recoverable amount of investments in subsidiaries (Parent Company only).
Materiality • Overall Group materiality was set at US$41.0 million which represents 5% of the five-year average of profit before tax
prior to Silverstream revaluation effects and material non-recurring items (Adjusted Normalised Profit).
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
In line with the approach taken in the previous year, our audit scoping reflects the requirements of ISA (UK) 600 (Revised). We
have followed a risk-based approach when developing our audit approach to obtain sufficient appropriate audit evidence on
which to base our audit opinion. We performed risk assessment procedures, with input from our component auditors, to identify
and assess risks of material misstatement of the Group financial statements and identified significant accounts and disclosures.
When identifying components at which audit work needed to be performed to respond to the identified risks of material
misstatement of the Group financial statements, we considered our understanding of the Group and its business environment,
the potential impact of climate change, the applicable financial framework, the Group’s system of internal control at the entity
level, the existence of centralised processes, applications and any relevant internal audit results.
We determined that centralised audit procedures could be performed for eight components in the following audit areas:
Key audit area on which procedures were performed centrally Component subject to central procedures
Accounting for the Silverstream Contract Comercializadora de Metales Fresnillo
Recoverable amount of mining assets Fresnillo, Penmont, Saucito, Juanicipio, San Julián and Ciénega
Recoverable amount of investments in subsidiaries
(Parent Company only)
Fresnillo plc (Parent Company)
203
Fresnillo plc Annual Report and Accounts 2025
We then identified eight components as individually relevant to the Group due to significant risks and areas of higher assessed
risk of material misstatement, including higher risk estimates, of the Group Financial Statements being associated with the
components. These eight are individually relevant due to risk, materiality or financial size of the component relative to
the Group.
For those individually relevant components, we identified the significant accounts where audit work needed to be performed at
these components by applying professional judgement, having considered the Group significant accounts on which centralised
procedures will be performed, the reasons for identifying the financial reporting component as an individually relevant
component and the size of the component’s account balance relative to the Group significant financial statement account
balance.
We then considered whether the remaining Group significant account balances not yet subject to audit procedures, in
aggregate, could give rise to a risk of material misstatement of the Group financial statements. We selected four components of
the Group to include in our audit scope to address these risks.
Having identified the components for which work will be performed, we determined the scope to assign to each component.
Of the 12 components selected, we designed and performed audit procedures on the entire financial information of eight
components (full scope components). For the remaining four components, we performed specified audit procedures to obtain
evidence for one or more relevant account assertions.
We noted that some entities presented financial losses in 2025, which, consistent with 2024, distorted the coverage assessment
over the Group’s Adjusted Normalised Profit. Therefore, when calculating their overall contribution, this shows a coverage
exceeding 100% of the Group’s Adjusted Normalised Profit.
Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit matters section of
our report.
Involvement with component teams
In establishing our overall approach to the Group Audit, we determined the type of work that needed to be undertaken at each
of the components by us, as the Group Audit engagement team, or by component auditors operating under our instruction.
All of the Group’s significant operations are in Mexico and are audited by local teams under our direct supervision. One team
performs procedures on the mine units and a separate team, the auditor of Peñoles, performs procedures on certain areas which
include the testing of internal inputs for the accounting of the Silverstream contract and other areas covered by a shared service
centre at Peñoles.
Work performed by
Primary team Component team under our direct supervision
Full scope components *
Components on which specified
audit procedures are performed
* The two full scope components relate to the Parent Company and CMF. For CMF, the primary team performed the main procedures relating to the accounting for the
Silverstream contract with the testing of cash receipts performed by the component team. In addition to these, the auditor of Peñoles performed certain supporting
procedures on the estimation of reserve and resource quantities and the Sabinas mine plan.
Senior members of the component teams attended our virtual global planning meetings during the planning phase of the audit,
and we discussed the results of interim procedures and interacted regularly with the local teams in Mexico. The primary
engagement team, including the Senior Statutory Auditor, is predominantly composed of Spanish speakers to further enhance
our interactions with both the component team and management.
The primary team, including the Senior Statutory Auditor, visited Mexico during both the planning and execution phases, with
members of the team working with and supervising the component team in Mexico for a number of weeks over three visits.
These visits involved discussion and oversight of the component team audit approach, consideration of significant accounting
and auditing issues arising from their work, reviewing key audit working papers, visiting some of the mines, meeting with
management and attending closing meetings.
The primary team was responsible for the scope and direction of the audit process. For certain procedures, in particular areas
involving significant judgement and heightened audit risk, we performed work ourselves with support where required from the
component team. In other cases, we reviewed key working papers including, but not limited to, the risk areas described below.
Based upon the above approach we are satisfied that we have been able to perform sufficient and appropriate oversight of our
component team and the work performed by the auditor of Peñoles relevant to our audit. This, together with the additional
procedures performed at Group level, gave us appropriate evidence for our opinion on the Group financial statements.
204
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FRESNILLO PLC CONTINUED
Climate change
Stakeholders are increasingly interested in how climate change will impact Fresnillo plc. The Group has determined that the
most significant future impacts from climate change on its operations are likely to be from water stress and drought, transition
to a low-carbon future and increasing societal and investor expectations. These are explained on pages 85-96 in the Task Force
On Climate Related Financial Disclosures and on page 140 in the principal risks and uncertainties, which form part of the “Other
information”, rather than the audited Financial Statements. Our procedures on these unaudited disclosures therefore consisted
solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appear to be materially misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any
consequential material impact on its Financial Statements. As explained in note 2(c) to the Group and Parent Company financial
statements, governmental and societal responses to climate change risks are still developing, and are interdependent upon each
other, and consequently financial statements cannot capture all possible future outcomes as these are not yet known. The
degree of certainty of these changes may also mean that they cannot be taken into account when determining asset and
liability valuations and the timing of future cash flows under the requirements of UK-adopted international accounting
standards and in accordance with the provisions of the Companies Act 2006. Significant judgements and estimates relating to
climate change have been described in note 2(c).
Our audit effort in considering the impact of climate change on the Financial Statements was focused on evaluating
management’s assessment of the impact of climate risk, physical and transition, their climate commitments, the effects of
material climate risks disclosed on page 140 and whether these have been appropriately considered in the assessment of
indicators of impairment of long-term non-financial assets and the timing and quantum of future cash flows underpinning the
provision of mine closure costs and associated disclosures. We also considered whether other assets and liabilities were
susceptible to material changes in measurement as a result of climate risks and opportunities. As part of this evaluation, we
performed our own risk assessment, supported by our climate change internal specialists, to determine the risks of material
misstatement in the Financial Statements from climate change which needed to be considered in our audit. Details of our
procedures and findings on the assessment of impairment indicators are included in our key audit matters below where
relevant.
We also challenged the directors’ considerations of climate change risks in their assessment of going concern and viability and
associated disclosures. Where considerations of climate change were relevant to our assessment of going concern, these are
described above.
Based on our work we have not identified the impact of climate change on the Financial Statements to be a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial
Statements of the current period and include the most significant assessed risks of material misstatement (whether or not due
to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the
allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the
context of our audit of the Financial Statements as a whole, and in our opinion thereon, and we do not provide a separate
opinion on these matters.
Key audit matter: Recognition of related party transactions, including revenue recognition
• 99.8% of the Group’s current year revenue from the sale of goods being concentrates, doré, activated carbon, slag and
precipitates (2025: US$4,552.7 million; 2024: US$3,481.8 million), and a significant amount of its expenses incurred (2024:
US$251.7 million; 2023: US$240.4 million), arise from transactions with related parties. The Silverstream contract was also
with a related party. These related parties are all subsidiaries of the Group’s direct parent, Industrias Peñoles, S.A.B. de C.V.
(Peñoles).
• Principal transactions include the sale of goods to the Met-Mex Peñoles refinery, administrative services received and the
Silverstream contract.
• The Silverstream contract was terminated during the year, therefore there was a risk that the transaction would not
consider the arm’s length principle and/or follow all the relevant governance, valuation and regulatory requirements.
• There is a risk that, if not at arm’s length or not reflecting the goods or services provided in the period, such transactions
could be used to manipulate earnings or to distribute profits to the Group’s parent.
• There is also a risk that revenues are inappropriately recognised as a result of incorrect cut-off or inappropriate
measurement of product sold.
• There is an ongoing focus by the Mexican tax authorities on transfer pricing as reflected by recently concluded and ongoing
tax inspections. There is therefore the potential risk of tax exposures arising from related party transactions.
Our judgement is that the level of risk in this area remains consistent with
the prior year.
Related party transactions are disclosed in
note 27 to the consolidated financial
statements, revenues in note 5 and
relevant accounting policies in note 2.
205
Fresnillo plc Annual Report and Accounts 2025
1
We performed full scope audit procedures over this risk area in eight components, which covered 100% of the aggregate risk
amount relating to revenue, 100% of the risk related to the Silverstream contract and 98% relating to related party expenses. In
addition, we performed specified procedures in components which covered 2% of related party expenses.
Identification of
related parties
and related
party
transactions
• We read new and amended contracts and agreements with related parties, including Met-Mex Peñoles, to
understand the nature of the transactions.
• We evaluated the appropriateness of management’s process for identifying, recording and reporting
related party transactions. For this purpose, we have performed a walkthrough of Management’s process,
we inquired of management and tested the design and implementation of relevant controls.
• As part of our procedures on completeness of related party transactions, we reviewed those transactions
that have been identified, monitored, reviewed and approved by the Audit Committee.
• We made inquiries of management at various levels and inspected board minutes and confirmation letters
to assess the completeness of related parties.
• We performed a consistency check with our other audit procedures in order to identify any related party
transactions not already identified by management or that are outside the normal course of business.
Revenue
recognition
• In order to test completeness of revenue transactions, we obtained confirmations totalling 100% of sales to
Peñoles (which represents 99.8% of total revenue), including quantities delivered, the period-end receivable
balance, and subsequent cash settlement where applicable.
• We evaluated the risk of material misstatement due to assay adjustments at 31 December 2025 by
performing a retrospective review of the quantum of previous adjustments made during the year and
determining the maximum plausible adverse effect on period-end provisional sales.
• We performed revenue cut-off testing, by reference to shipment dates.
• On a sample basis, we performed testing to verify physical deliveries of product in the year and related
party expenses against the underlying contract terms. Since this is a significant risk, our testing threshold
was lower, and our sample sizes are larger than they would otherwise have been.
• We obtained an understanding of the basis of the treatment and refining charges (T&RCs) negotiated
between the Group and Peñoles for the current year, these being deducted from revenue.
• We compared principal inputs to external benchmarks or other external evidence. We recalculated T&RCs
based on actual production and contractual terms.
• We performed overall analytical procedures which consisted of comparing actual revenues on a
disaggregated basis to detailed expectations developed based on production in the year and market prices
for relevant metals and obtained explanations for any material variances.
Silverstream
contract
• We reviewed the Silverstream buy-back agreement to understand the termination clauses and assessed
whether the process followed by management was consistent with the contractual terms.
• We reviewed correspondence and legal advice received from management’s external legal advisor and
sponsor in relation to the proposed termination.
• We reviewed supporting documentation including board minutes, communications between Fresnillo and
Peñoles, and Peñoles’ quarterly reports to assess whether any contradictory evidence existed that would
impact the appropriateness of the transaction or its presentation.
• We reviewed the Audit Committee’s terms of reference and the relationship agreement between Peñoles
and Fresnillo to ensure the transaction was carried out in accordance with the governing principles and
oversight expectations.
• Considering that the Silverstream contract is a transaction between related parties, we assessed the
governance and regulatory implications of the proposed termination of the agreement. Our procedures
included evaluating the application of relevant requirements under the UK Listing Rules, Disclosure
Guidance and Transparency Rules, and the Companies Act.
• With assistance from our valuation specialists, we challenged key economic assumptions in the valuation,
including future metal prices and the discount rate applied.
• Assisted by our non-EY specialist (geologist) we reviewed the due diligence report prepared by
management’s external geology specialist, covering the updated reserves and resources estimation and
mine plan as at 30 June 2025.
• We tested settlement of open shipments and verified the termination payment.
• We assessed the appropriateness and completeness of disclosures included in the notes to the Financial
Statements and their consistency with the disclosures made in the front half of the annual report.
Other
transactions
with related
parties
• On a sample basis, we tested related party expenses against underlying contractual terms.
• We compared actual results against detailed expectations of income statement line items impacted by
related party transactions to determine whether there was any evidence of manipulation.
Accuracy of
disclosures
• We verified that related party disclosures in the Financial Statements are consistent with the results of our
audit procedures.
Our audit response
206
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FRESNILLO PLC CONTINUED
Transfer pricing
considerations
• We read new and amended contracts and agreements with related parties, including Met-Mex Peñoles to
understand the nature and accounting impacts of related transactions.
• With the involvement of our transfer pricing specialist, we obtained and reviewed the most recent transfer
pricing studies provided to management by its transfer pricing specialist.
• Assisted by our internal transfer pricing specialists, we reviewed the updated letter provided by the external
specialist for the year ended 31 December 2025 (providing an update since the final 2024 studies). We met
with the specialist to further understand the content of the update letter and review any changes made.
• We assessed the competence, capabilities and objectivity of management’s specialist.
• We confirmed the principal inputs to external benchmarks used to determine transfer pricing ranges. In
respect of T&RCs, these include confirmations from the auditor of Peñoles in respect of T&RCs charged to
other customers.
Management
override
• We compared actual revenues on a disaggregated basis to detailed expectations developed based on
production in the year and market prices for relevant metals to identify and understand variances for
further investigation.
• We utilised data analysis tools to test revenue and search entire data sets for potential related party
transactions.
• We compared actual results against detailed expectations of income statement line items impacted by
related party transactions to determine whether there is evidence of manipulation.
Our audit response
Key observations communicated to the Audit Committee
• Our procedures did not identify issues with the identification, recording or reporting of related party transactions.
• We concluded that revenue recognition in the year is appropriate, including the treatment of related provisional pricing
terms.
• As a result of our consistency check with other audit procedures, we did not identify any additional or undisclosed related
party transactions.
• In respect of transfer pricing in transactions with related parties, we confirmed that the methodology for determining
transfer pricing in respect of the transactions with other Peñoles companies has not changed during the year and remains
reasonable.
• In respect of the termination of the Silverstream contract, based on the procedures performed, we considered that the
governance process, accounting treatment and related disclosures are appropriate.
Key audit matter: Recoverable amount of mining assets
• The identification of indicators of impairment requires management judgement, as changes in key economic assumptions
are subject to risk and uncertainty that may be beyond the control of the Group.
• The key assumptions underpinning management’s assessment of the recoverable amount of mining assets are reserves and
those resources with a high likelihood of being converted into reserves, related mine plans and production profiles,
estimated future operating and capital expenditure, future commodity prices, exchange rates and the discount rates
applied.
• The estimation of mineral reserves and resources quantities of the Group’s mines requires significant judgment and
estimation.
• The Group’s estimates of mineral reserves and resources are audited by third party specialists engaged by management
(“Reserves and Resources Specialists”).
• Changes to assumptions could lead to material changes in estimated recoverable amounts, resulting in impairment of
property plant and equipment with a net book value of US$2,522.5 million (2024: US$2,557.6 million). There is no impairment
recorded in prior years that may be reversed.
Our judgement is that the level of risk in this area remains consistent with
the prior year, as no impairment triggers were identified in any of the
mining units.
We have also considered the possible effect of climate change in the
impairment trigger assessment, in line with the prior year.
Management’s assessment of the
judgement and estimation required is set
out in note 2 to the consolidated Financial
Statements, with the results of
management’s sensitivity assessment in
note 13. The reserves and resources tables
are presented after the Parent Company
notes to the Financial Statements as
unaudited information.
207
Fresnillo plc Annual Report and Accounts 2025
2
Our audit response
We performed full scope audit procedures over this risk area in six components and specified procedures over this risk in two
components, which covered 100% of the risk amount.
Indicators of
impairment and
methodology
used to estimate
recoverable
values
• We evaluated management’s identification of indicators of impairment under IAS 36 ‘Impairment of
assets’ and considered whether climate risks could represent indicators.
• We challenged management’s assessment with particular emphasis on whether operational issues, cost
increases and decreases in estimations of reserves and resources would result in an impairment trigger
by performing our own independent assessment based on inputs calculated by our valuation specialists.
• We verified information from our procedures in respect of reserves and resources (as described below) to
management’s indicator assessment to ensure that the most recent reserves information was used.
• We considered the results of our other procedures, including in respect of the mine closure provision and
our analytical review procedures over production to evaluate whether there were any unidentified
indicators of impairment.
Estimation
process for
reserves and
resources
including external
specialists
engaged by
management
• We performed substantive procedures over the estimation of reserves and resources to evaluate the
extent to which we can rely on those estimates when concluding whether an indicator of impairment
existed.
• We walked through the process of the estimation of the reserves and resources quantities and identified
relevant controls.
• We walked through the process of determining mine plans from estimated reserves and resources
quantities.
• We assessed the competence of management’s reserves and resources specialists, as well as capabilities
and objectivity as specialists engaged by management to audit the Group’s estimates of reserves and
resources and confirmed the scope of their work was appropriate for the purpose of financial reporting.
• We assessed the potential impact of climate related matters on the estimates.
• We read the reports prepared by the Reserves and Resources Specialists, gained an understanding of the
changes in reserves and resources estimates in the year and considered their observations on the Group’s
reserve and resource estimation process insofar as they affect the Financial Statements.
• We assessed whether the implementation of the Reasonable Prospects for Eventual Economic Extraction
(RPEEE) resulted in any indicator of impairment, given the impact this had in the resource estimation.
• We engaged our own specialist (geologist) to evaluate the information provided by the Reserves and
Resources Specialists.
• We discussed directly with management’s reserves and resources specialists the results of their reports.
Sensitivity
disclosures
• We assessed the appropriateness of sensitivity disclosures included in the Financial Statements in light of
our other audit procedures.
Key observations communicated to the Audit Committee
• We assessed management’s reserves and resources specialists as appropriate specialists engaged by management for the
purposes of auditing the reserves and resources of the Group.
• The increase in gold and silver price forecasts has reduced the risk of impairment indicators being identified across the
Group’s operations.
• We concluded that, although the implementation of RPEEE resulted in an overall reduction of resources in certain mines, the
updated mine plans reflect these changes while continuing to show sufficient headroom, such that this did not give rise to an
impairment indicator at 31 December 2025.
• We concluded that no impairment indicators were identified in any of the mining units.
208
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FRESNILLO PLC CONTINUED
Key audit matter: Recoverable amount of investment in subsidiaries (Parent Company only)
• Investments in subsidiaries (US$6,246.0 million, 2024: US$4,189.7 million) are more sensitive to changes in recoverable value
than the Group’s underlying mining assets because these investments were re-measured at fair value in 2008 when the
Group was established ahead of its Initial Public Offering and have been subject to previous impairment charges, including
in the prior year.
• The principal driver of the recoverable amount of investments in subsidiaries is the estimated value of underlying mining
assets held by the Group’s subsidiaries. Refer to related considerations in the key audit matter above.
• In addition, management estimates the recoverable value of exploration projects in considering the recoverable value of
subsidiaries.
• Increases in prices and revisions of the reserves and resources estimates in the underlying assets could lead to material
changes in estimated recoverable amounts, resulting in reversals of impairment charges recognised in prior years (2025
aggregate net impairment reversal of US$2,039.0 million, 2024: net impairment reversal of US$855.7 million).
Our judgement is that the level of risk in this area, overall, remains
consistent with the prior year.
As with the recoverable amount of mining assets, in the current year
we have also considered the possible effect of climate change in the
impairment trigger assessment.
Management’s assessment of the judgement and
estimation required is set out in Note 2 to the
Parent Company Financial Statements, with the
required disclosures around the recoverability of
investments in subsidiaries included in Note 5.
Our audit response
We performed full scope audit procedures over this risk area in one component, which covered 100% of the risk amount.
Indicators of
impairment and
methodology
used to
estimate
recoverable
values
• We assessed the methodology used by management to determine whether there were any indicators of
impairment or reversals of previously recognised impairment charges for each investment in a subsidiary
to ensure that this is consistent with accounting standards. Refer to the ‘Our audit response’ section of the
key audit matter above with respect to procedures performed relating to the recoverable value of mining
assets.
• We evaluated management’s approach to valuing exploration prospects.
Key
assumptions
used in
management’s
estimate of the
recoverable
values of
investments in
subsidiaries
As the assessment of impairment of investments in subsidiaries is directly linked to the recoverable value of
mining units underlying each investment, we have performed the following procedures in respect of the
mine operations:
• We compared related production profiles to the current mine plans for each mine and considered their
consistency with our understanding of future plans at the mines obtained through enquiries with both
operating and senior management.
• We assessed operating and capital costs included in the cash flow forecasts to ensure consistency with
current operating costs, forecast mine production and other forecast information, by reviewing the cost
assumptions and understanding the methodology applied by management in their budgeting process.
We considered the possible effect of climate change on cost estimates.
• With the assistance of our valuation specialists, we assessed management’s assumptions relating to future
metals prices and discount rates by comparing these to market data and also for consistency with other
estimates used in the Financial Statements.
• We performed sensitivity analysis on management’s calculated recoverable values for alternative
assumptions for metals prices, costs and the discount rate applied.
Sensitivity
disclosures
• We assessed the appropriateness of sensitivity disclosures included in the Parent Company Financial
Statements considering our other audit procedures.
209
Fresnillo plc Annual Report and Accounts 2025
3
Key observations communicated to the Audit Committee
• We confirmed that our observations with respect to reserves and resources set out in the key audit matter in respect of the
recoverable amount of mining assets above are also relevant for the recoverable amounts of investments in subsidiaries.
• We considered the approach to determining the recoverable value of investments in subsidiaries, including the valuation of
exploration assets, to be appropriate.
• Our procedures confirmed that the estimates of production, operating and capital costs are consistent with the production
profiles of respective mines and related mine plans. We considered those to be reasonable.
• We concluded gold and silver prices used by management fall within our range of acceptable values calculated
independently by our engaged specialists.
• We consider that management’s discount rates applied are within the range of acceptable values for all of the mining units.
• We concluded that the reversal of impairment recognised during the period and the sensitivity disclosures reflected in the
Parent Company financial statements are appropriate.
In the prior year, our auditor’s report included a key audit matter in relation to the valuation of the Silverstream contract. For this
year’s audit, following the termination of the agreement, we have included the relevant considerations as part of the key audit
matter related to Recognition of related party transactions, including revenue recognition. At the time of our interim review, we
performed procedures in line with those disclosed in the key audit matters section of our 2024 audit report. In addition, we
performed specific procedures to assess other aspects related to the termination of this agreement, including governance and
related party considerations, accounting treatment, valuation methodology and related disclosures.
For purposes of the 2025 audit of the Group’s consolidated financial statements we have tested the impacts of the termination of
the agreement, including the procedures listed in the key audit matter section above. As a result, we have concluded that the
loss in the Consolidated Income Statement and the disclosures included in the Group Financial Statements as well as the front
half section of the annual report are appropriate.
Materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements
on the audit and in forming our audit opinion.
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to
influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining the
nature and extent of our audit procedures.
We determined materiality for the Group to be US$41.0 million (2024: US$24.0 million), which is 5% (2024: 5%) of the five-year
average profit before tax prior to Silverstream revaluation effects, adjusted for any material one-off transactions (“Adjusted
Normalised Profit”). We believe this measure of profit represents one of the main considerations for members of the Group,
particularly as the Silverstream revaluation effects are principally non-cash in nature and one-off transactions are not reflective of
the ongoing operations of the business.
We have concluded that, solely for the purposes of determining materiality, there are sufficient indicators to normalise the basis
for determining materiality using the five-year average, which is in line with the directors’ viability assessment period. An
illustration of our approach to Adjusted Normalised Profit is set out below, with profit before tax prior to Silverstream revaluation
effects as the starting point.
US$ million
611.1
229.8
106.3
926.2
2,295.2
2021
2022 2023
2024 2025
0
500
1000
1500
2000
2500
Profit before tax (pre-Silverstream)
Five-year average
210
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
833.7
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FRESNILLO PLC CONTINUED
We determined materiality for the Parent Company to be US$70.6 million (2024: US$49.9 million), which is 1% (2024: 1%) of equity.
The materiality of the Parent Company is higher than that of the Group, reflective of the Parent Company’s primary role being
that of a holding company.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately
low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement
was that performance materiality was 75% (2024: 75%) of our planning materiality, namely US$30.8 million (2024: US$18.0 million).
We have set performance materiality at this percentage with reference to the level of historical misstatements, our ability to
assess the likelihood of misstatements and the effectiveness of the internal control environment.
Audit work was undertaken at component locations for the purpose of responding to the assessed risks of material
misstatement of the Group Financial Statements. The performance materiality set for each component is based on the relative
scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component.
Assigned performance materiality decreased in all components, reflecting the overall performance of the Group. Where assigned
performance materiality decreased, this represents the changes in the relative contribution of profit of that component. The
allocation of performance materiality to full scope components is as follows:
Key audit matters*:
1 2
1 3
1 2
1 2
1 2
1 2
1 2
1 2
2025 2024
* The icons correspond to the key audit matters set out above. Audit procedures in respect of the recoverable amount of investments in subsidiaries are performed at the
performance materiality of the standalone parent company Financial Statements.
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of US$2.0 million
(2024: US$1.2 million), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light
of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the Annual Report other than the Financial Statements and our
auditor’s report thereon. The directors are responsible for the other information contained within the Annual Report.
Our opinion on the Financial Statements does not cover the other information and, except to the extent otherwise explicitly
stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the Financial Statements or our knowledge obtained in the course of the audit, or otherwise appears to be
materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the Financial Statements themselves. If, based on the work we
have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
211
Fresnillo plc Annual Report and Accounts 2025
30.4
30.4
18.4
16.9
14.7
9.3
9.2
4.6
16.8
16.8
4.2
11.0
7.1
7.0
3.0
3.4
Comercializadora
de Metales
Fresnillo PLC
Penmont
mining unit
Juanicipio
mining unit
Saucito
mining unit
Fresnillo
mining unit
San Julián
mining unit
Ciénega
mining unit
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Directors’ Report for the financial year for which the Financial
Statements are prepared is consistent with the Financial Statements and those reports have been prepared in accordance
with applicable legal requirements;
• the information about internal control and risk management systems in relation to financial reporting processes and about
share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Rules and Transparency Rules
sourcebook made by the Financial Conduct Authority (the FCA Rules), is consistent with the Financial Statements and has
been prepared in accordance with applicable legal requirements; and
• information about the company’s corporate governance statement and practices and about its administrative, management
and supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the
course of the audit, we have not identified material misstatements in:
• the Strategic Report or the Directors’ report; or
• the information about internal control and risk management systems in relation to financial reporting processes and about
share capital structures, given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report
to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been
received from branches not visited by us; or
• the Parent Company Financial Statements and the part of the Directors’ Remuneration Report to be audited are not in
agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit; or
• a Corporate Governance Statement has not been prepared by the company
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to going concern, longer-term viability and that part of the Corporate
Governance Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance
Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the Financial Statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 145;
• Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period
is appropriate set out on pages 143-144;
• Directors’ statement on whether it has a reasonable expectation that the Group will be able to continue in operation and
meets its liabilities set out on page 145;
• Directors’ statement on fair, balanced and understandable set out on page 179;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 123-124;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems
set out on pages 176-179; and
• The section describing the work of the audit committee set out on pages 167-179.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement set out on page 201, the Directors are responsible for the
preparation of the Financial Statements and for being satisfied that they give a true and fair view, and for such internal control as
the Directors determine is necessary to enable the preparation of Financial Statements that are free from material misstatement,
whether due to fraud or error.
In preparing the Financial Statements, the Directors are responsible for assessing the Group and Parent Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no
realistic alternative but to do so.
212
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FRESNILLO PLC CONTINUED
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
Financial Statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of
the company and management.
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that
the most significant are those related to the reporting framework (UK adopted international accounting standards and
Companies Act 2006 and UK Corporate Governance Code), regulations impacting mining operations including mining laws,
environmental and labour regulations and tax and employee profit-sharing requirements in Mexico.
• With the assistance of our forensics specialists, we understood how Fresnillo plc is complying with those frameworks by
making enquiries of management, internal audit, those responsible for legal and compliance procedures and the company
secretary. We corroborated our enquiries through our review of board minutes and papers provided to the Audit Committee.
• We have involved our forensic specialists in obtaining an understanding of the process established by management to identify,
evaluate and respond to fraud risks, who have placed specific focus on bribery and corruption risks.
• We assessed the susceptibility of the Group’s Financial Statements to material misstatement, including how fraud might occur
by meeting with management from various parts of the business to understand where it is considered there was a
susceptibility of fraud. We also considered performance targets and their propensity to influence efforts made by
Management to manage earnings. We considered the programmes and controls that the Group has established to address
risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes
and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk.
These procedures included using data analytics to test manual journals and were designed to provide reasonable assurance
that the Financial Statements were free of fraud or error. In the current year, forensic specialists reviewed our fraud risk
assessment and assisted on our journal entry testing procedures.
• Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations.
Our procedures involved enquiries of Group management and those charged with governance, legal counsel, internal audit,
and the risk and compliance departments; journal entry testing, with a focus on manual journals and those indicating large or
unusual journals based on our understanding of the business; and challenging the assumptions and judgements made by
management in respect of significant accounting estimates. Where observations are raised about management’s process or
controls surrounding compliance with laws and regulations by us or others, we consider the potential effect of those
observations.
A further description of our responsibilities for the audit of the Financial Statements is located on the Financial Reporting
Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters we are required to address
• Following the recommendation from the Audit Committee, we were appointed by the company in May 2008 to audit the
Financial Statements for the year ending 31 December 2008 and subsequent financial periods. Following a competitive tender
process, we were reappointed as auditor of the Company for the period ending 31 December 2017 and subsequent financial
periods. The total uninterrupted period of engagement is 18 years, covering periods from our initial appointment through to
the period ended 31 December 2025.
• The audit opinion is consistent with the additional report to the Audit Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for
the opinions we have formed.
Stephney Dallmann
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP , Statutory Auditor
London
3 March 2026
213
Fresnillo plc Annual Report and Accounts 2025
Year ended 31 December 2025 | Year ended 31 December 2024 | ||||||
US$ thousands | US$ thousands | ||||||
| Pre- | |||||||
| Silverstream | Silverstream | Silverstream | |||||
| revaluation | revaluation | Pre-Silverstream | revaluation | ||||
| Notes | effect | effect | Total | revaluation effect | effect | Total | |
Revenues | 5 | ||||||
Cost of sales | 6 | ( | ( | ( | ( | ||
Gross profit | |||||||
Administrative expenses | ( | ( | ( | ( | |||
Exploration expenses | 7 | ( | ( | ( | ( | ||
Selling expenses | ( | ( | ( | ( | |||
Other operating income | 9 | ||||||
Other operating expenses | 9 | ( | ( | ( | ( | ||
Profit before netfinance costs and income tax | |||||||
Finance income | 10 | ||||||
Finance costs | 10 | ( | ( | ( | ( | ||
| Revaluation effects of Silverstream | |||||||
contract | 14 | ( | ( | ( | ( | ||
Foreign exchange (loss)/gain | ( | ( | |||||
Profit before income tax | ( | ( | |||||
Corporate income tax | 11 | ( | ( | ( | ( | ||
Special mining right | 11 | ( | ( | ( | ( | ||
Income tax | 11 | ( | ( | ( | ( | ||
Profit for the year | ( | ( | |||||
| Attributable to: | |||||||
Equity shareholders of the Company | ( | ( | |||||
Non-controlling interest | |||||||
( | ( | ||||||
| Earnings per share: (US$) | |||||||
| Basic and diluted earnings per | |||||||
Ordinary Share | 12 | ||||||
| Adjusted earnings per share: (US$) | |||||||
| Adjusted basic and diluted earnings | |||||||
per Ordinary Share | 12 | ||||||
214
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31DECEMBER 2025
| Year ended 31 December | |||
2025 | 2024 | ||
| Notes | US$ thousands | US$ thousands | |
Profit for the year | |||
| Other comprehensive income/(expense) | |||
| Items that may be reclassified subsequently to profit or loss: | |||
Foreign currency translation | ( | ||
Net other comprehensive loss that may be reclassified subsequently to profit or loss: | ( | ||
| Items that will not be reclassified to profit or loss: | |||
Changes in the fair value of cash flow hedges | ( | ( | |
Total effect of cash flow hedges | ( | ( | |
Changes in the fair value of equity investments at fair value through other comprehensive income (FVOCI) | |||
Remeasurement loss on defined benefit plans | 22 | ( | ( |
Income tax effect on items that will not be reclassified to profit or loss | 11 | ( | ( |
Net other comprehensive Income that will not be reclassified to profit or loss | |||
Other comprehensive Income, net tax | |||
Total comprehensive income for the year, net of tax | |||
| Attributable to: | |||
Equity shareholders of the Company | |||
Non-controlling interests | |||
215
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31DECEMBER 2025
| As at 31 December | |||
2025 | 2024 | ||
Notes | US$ thousands | US$ thousands | |
| ASSETS | |||
| Non-current assets | |||
Property, plant and equipment (PPE) | 13 | ||
Equity instruments at FVOCI | 30.(b) | ||
Silverstream contract | 14 | ||
Deferred tax asset | 11 | ||
Inventories | 15 | ||
Other receivables | 16 | ||
Other assets | |||
| Current assets | |||
Inventories | 15 | ||
Trade and other receivables | 16 | ||
Prepayments | |||
Silverstream contract | 14 | ||
Derivative financial instruments | |||
Short-term investments | 17 | ||
Cash and cash equivalents | 17 | ||
Total assets | |||
| EQUITY AND LIABILITIES | |||
| Capital and reserves attributable to shareholders of the Company | |||
Share capital | 18 | ||
Share premium | 18 | ||
Capital reserve | 18 | ( | ( |
Hedging reserve | 18 | ( | ( |
Fair value reserve of financial assets at FVOCI | 18 | ||
Foreign currency translation reserve | 18 | ( | ( |
Retained earnings | 18 | ||
Non-controlling interests | |||
Total equity | |||
| Non-current liabilities | |||
Interest-bearing loans | 20 | ||
Lease liabilities | 25 | ||
Provision for mine closure cost | 21 | ||
Pensions and other post-employment benefit plans | 22 | ||
Deferred tax liability | 11 | ||
| Current liabilities | |||
Trade and other payables | 23 | ||
Notes payable | 30.(a) | ||
Income tax payable | |||
Derivative financial instruments | 30 | ||
Lease liabilities | 25 | ||
Provision for mine closure cost | 21 | ||
Employee profit sharing | |||
Total liabilities | |||
Total equity and liabilities |
216
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED BALANCE SHEET
AS AT 31DECEMBER 2025
| Year ended 31 December | |||
2025 | 2024 | ||
| Notes | US$ thousands | US$ thousands | |
Net cash from operating activities | 29 | ||
| Cash flows from investing activities | |||
Purchase of property, plant and equipment | 3 | ( | ( |
Proceeds from the sale of property, plant and equipment and other assets | |||
Proceeds from the sale of mining concessions | 9 | ||
Proceeds from Silverstream contract | 14 | ||
Purchase of equity instruments at FVOCI¹ | 30.(b) | ( | |
Disposal of equity instruments at FVOCI¹ | 30.(b) | ||
Dividends received from equity instruments at FVOCI | |||
Decrease/(increase) in short-term investments | 17 | ( | |
Interest received | |||
Net cash used in investing activities | ( | ||
| Cash flows from financing activities | |||
Payment of notes payable | 30.(a) | ( | ( |
Principal element of lease payments | 25.(a) | ( | ( |
Dividends paid to shareholders of the Company² | 19 | ( | ( |
Dividends paid to non-controlling interests in subsidiaries | 4.(a) | ( | ( |
Capital contribution | |||
Interest paid³ | ( | ( | |
Net cash used in financing activities | ( | ( | |
Net decrease in cash and cash equivalents during the year | |||
Effect of exchange rate on cash and cash equivalents | ( | ||
Cash and cash equivalents at 1 January | |||
Cash and cash equivalents at 31 December | 17 |
1. Following the investment strategy of the Group, during 2025, the Group decided to dispose the shares held in MAG Silver Corp. The Group disposed 9,314,877 owned
shares. The gain on the disposal of US$128.6 million has been transferred from the Fair value reserve of financial assets at FVOCI to retained earnings, net of tax
amounting to US$38.6 million.
2. Includes the effect of hedging of dividend payments made in currencies other than US dollar (Note 19).
3. As of 31December 2025 includes US$1.2 million (2024: US$1.2 million) related to a commitment fee in respect of undrawn amounts of the syndicated revolving credit
facility entered by the Group. No amounts have been draw down from the credit facility as of 31December 2025.
217
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31DECEMBER 2025
| Attributable to the equity holders of the Company | |||||||||||
| Fair value | |||||||||||
| reserve of | Foreign | ||||||||||
| financial | currency | Non- | |||||||||
| Share | Share | Capital | Hedging | assets at | translation | Retained | controlling | Total | |||
| capital | premium | reserve | reserve | FVOCI | reserve | earnings | Total | interests | equity | ||
Notes | US$ thousands | ||||||||||
| Balance at 1 January 2024 | ( | ( | |||||||||
Profit for the year | |||||||||||
Other comprehensive income, net of tax | ( | ( | ( | ( | |||||||
Total comprehensive income for the year | ( | ( | |||||||||
Hedging loss transferred to the carrying value of PPE | |||||||||||
| purchased during the year | ( | ( | ( | ( | |||||||
| Transfer of gain on disposal | |||||||||||
of equity investments at FVOCI to retained earnings | 30(b) | ||||||||||
| (net of tax) | ( | ||||||||||
Recognition of non- controlling interest | 4(a) | ( | ( | ||||||||
Dividends declared and paid | 19 | ( | ( | ( | ( | ||||||
| Balance at 31 December | |||||||||||
| 2024 | ( | ( | ( | ||||||||
Profit for the year | |||||||||||
Other comprehensive income, net of tax | ( | ( | ( | ||||||||
Total comprehensive income for the year | ( | ||||||||||
Hedging loss transferred to the carrying value of PPE | |||||||||||
| purchased during the year | |||||||||||
| Transfer of gain on disposal | |||||||||||
of equity investments at FVOCI to retained earnings | 30.(b) | ( | |||||||||
| (net of tax) | |||||||||||
Capital contribution | |||||||||||
Dividends declared and paid | 19 | ( | ( | ( | ( | ||||||
| Balance at 31 December | |||||||||||
| 2025 | ( | ( | ( | |
218
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31DECEMBER 2025
1. Corporate information
and is the holding company for the Fresnillo subsidiaries detailed in Note 5 of the Parent Company accounts (‘the Group’).
Industrias Peñoles S.A.B. de C.V. (‘Peñoles’) currently owns 75 percent of the shares of the Company and the ultimate controlling
party of the Company is the Baillères family , whose beneficial interest is held through Peñoles. The registered address of Peñoles
is Calzada Legaria 549, Mexico City 11250. Copies of Peñoles’ accounts can be obtained from www.penoles.com.mx. Further
information on related party balances and transactions with Peñoles’ group companies is disclosed in Note 27.
The consolidated Financial Statements of the Group for the year ended 31 December 2025 were authorised for issue by the Board
of Directors of Fresnillo plc on 02 March 2026.
metallurgical complex, Met-Mex (2024: 99.6% of the production), for smelting and refining. Further information about the Group
operating mines and its principal activities is disclosed in Note 3.
2. Significant accounting policies
219
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2. Significant accounting policies continued
220
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
221
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
222
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| Years | |
Buildings | 6 |
Plant and equipment | 10 |
Mining properties and development costs 1 | 10 |
Other assets | 5 |
223
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
224
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
225
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
226
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
227
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
228
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
229
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
230
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
231
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
3. Segment reporting
For management purposes, the Group is organised into operating segments based on producing mines.
At 31 December 2025, the Group has seven reportable operating segments as follows:
The Fresnillo mine, located in the state of Zacatecas, an underground silver mine;
The Saucito mine, located in the state of Zacatecas, an underground silver mine;
The Ciénega mine, located in the state of Durango, an underground silver-gold mine;
The Herradura mine, located in the state of Sonora, a surface gold mine;
The Noche Buena mine, located in the state of Sonora, a surface gold mine;
The San Julián mine, located on the border of Chihuahua/Durango states, an underground silver-gold mine, and
The Juanicipio mine, in the State of Zacatecas, an underground silver mine.
The operating performance and financial results for each of these mines are reviewed by management. As the Group’s chief
operating decision maker (CODM) does not review segment assets and liabilities, the Group has not disclosed this information.
Management monitors the results of its operating segments separately for the purpose of performance assessment and making
decisions about resource allocation. Segment performance is evaluated without taking into account certain adjustments
included in Revenue as reported in the consolidated income statement, and certain costs included within Cost of sales and Gross
Profit which are considered to be outside of the control of the operating management of the mines. The table below provides a
reconciliation from segment profit to Gross profit as per the consolidated income statement. Administrative expenses,
Exploration expenses, Selling expenses, and other income and expenses not related to production activities included in the
consolidated income statement are not allocated to operating segments. Also, the Group’s financing (including finance cost and
finance income) and income taxes are managed on a Group basis and are not allocated to operating segments. Transactions
between reportable segments are accounted for on an arm’s-length basis similar to transactions with third parties.
In 2025 99.8% of revenue was derived from customers based in Mexico (2024: 99.6% of revenue was derived from customers
based in Mexico).
232
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Operating segments
The following tables present revenue and profit information regarding the Group’s operating segments for the year ended
31 December 2025 and 2024, respectively. Revenues for the year ended 31 December 2025 and 2024 include those derived from
contracts with customers and other revenues, as shown in Note 5.
| Year ended 31 December 2025 | ||||||||||
| US$ thousands | ||||||||||
| Adjustments | ||||||||||
| Noche | San | and | ||||||||
Fresnillo | Herradura | Ciénega | Saucito | Buena | Julián | Juanicipio | Other 4 | eliminations | Total | |
| Revenues: | ||||||||||
Third party 1 | 632,318 | 1,239,748 | 230,101 | 1,007,973 | 51,793 | 524,360 | 874,938 | — | — | 4,561,231 |
Inter-segment | 67,461 | — | — | — | — | — | 17,534 | 50,278 | (135,273) | — |
Segment revenues | 699,779 | 1,239,748 | 230,101 | 1,007,973 | 51,793 | 524,360 | 892,472 | 50,278 | (135,273) | 4,561,231 |
Segment profit 2 | 437,685 | 767,366 | 123,856 | 649,423 | 30,929 | 366,021 | 746,965 | 48,166 | 3,170,411 | |
Depreciation and amortisation in cost of sales | (490,647) | |||||||||
Employee profit sharing in cost of sales | (15,653) | |||||||||
Gross profit as per the income statement | 2,664,111 | |||||||||
Capital expenditure 3 | 91,837 | 89,873 | 17,555 | 92,149 | — | 49,704 | 54,412 | 4,611 | 400,141 | |
1. During 2025 all segment revenues were derived from Met-Mex, except in Juanicipio which includes sales of iron concentrate to another external customers of US$8.5
million.
2. The Group’s CODM primarily uses this measure to monitor the operating results directly related to the production of its business units separately to make decisions
about resource allocation and performance assessment. Segment profit excludes depreciation and amortisation and employee profit sharing.
3. Capital expenditure represents the cash outflow in respect of additions to property, plant and equipment, excluding additions relating to changes in the mine closure
provision. Significant additions include expansions of tailings dams at Saucito, Fresnillo, Juanicipio, San Julián and Herradura; mining works at San Julián, Fresnillo and
Saucito and stripping cost and construction of leaching pads at Herradura mine.
4. Other inter-segment revenue corresponds to leasing services provided by Minera Bermejal, S.A. de C.V; capital expenditure mainly corresponds to Minera Bermejal, S. de
R.L. de C.V.
| Year ended 31 December 2024 | ||||||||||
| US$ thousands | ||||||||||
| Adjustments | ||||||||||
| Noche | and | |||||||||
Fresnillo | Herradura | Ciénega | Saucito | Buena | San Julián | Juanicipio | Other 4 | eliminations | Total | |
| Revenues: | ||||||||||
Third party¹ | 499,519 | 883,571 | 222,455 | 764,708 | 42,923 | 455,995 | 627,214 | — | — | 3,496,385 |
Inter-segment | 36,409 | — | — | — | — | — | 152 | 50,839 | (87,400) | — |
Segment revenues | 535,928 | 883,571 | 222,455 | 764,708 | 42,923 | 455,995 | 627,366 | 50,839 | (87,400) | 3,496,385 |
| Segment profit² | 277,333 | 323,696 | 92,898 | 405,077 | 4,348 | 253,494 | 475,113 | 49,102 | (2,662) | 1,878,399 |
Depreciation and amortisation in cost of sales | (619,779) | |||||||||
Employee profit sharing in cost of sales | (12,347) | |||||||||
Gross profit as per the income statement | 1,246,273 | |||||||||
Capital expenditure³ | 90,335 | 55,049 | 17,111 | 97,270 | — | 49,429 | 59,263 | 2,085 | — | 370,542 |
1. During 2024 all segment revenues were derived from Met-Mex, except in Juanicipio which includes sales to another external customer of US$14.7 million.
2. The Group’s CODM primarily uses this measure to monitor the operating results directly related to the production of its business units separately to make decisions
about resource allocation and performance assessment. Segment profit excludes depreciation and amortisation and employee profit sharing.
3. Capital expenditure represents the cash outflow in respect of additions to property, plant and equipment, excluding additions relating to changes in the mine closure
provision. Significant additions include expansions of tailings dams at Saucito, Fresnillo, Juanicipio and San Julián, mining works at San Julián, Fresnillo and Saucito and
stripping cost and construction of leaching pads at Herradura mine.
4. Other inter-segment revenue corresponds to leasing services provided by Minera Bermejal, S.A. de C.V; capital expenditure mainly corresponds to Minera Bermejal, S. de
R.L. de C.V.
233
Fresnillo plc Annual Report and Accounts 2025
4. Group information
The list of the Company’s subsidiaries included in the consolidated Financial Statements and its principal activities are shown in
Note 5 on the Parent Company’s separate Financial Statements. The country of incorporation or registration is also their principal
place of business.
4.(a). Material partly-owned subsidiaries
The table below shows the detail of non-wholly owned subsidiaries of the Group that have non-controlling interests:
| Portion of ownership interest | Profit (loss) allocated to non- | Accumulated non-controlling | ||||
| held by non-controlling interest | controlling interest | interest | ||||
31-Dec-2025 | 31-Dec-2024 | 31-Dec-2025 | 31-Dec-2024 | 31-Dec-2025 | 31-Dec-2024 | |
Minera Juanicipio, S.A. de C.V. | 44% | 44% | 170,903 | 90,616 | 335,908 | 266,153 |
Equipos Chaparral, S.A. de C.V. | 44% | 44% | 21,773 | (10,891) | 106,079 | 86,443 |
Other subsidiaries with non-controlling interests not considered to be material 1 | — | — | (2,835) | 6,046 | (194) | 2,433 |
1. In October 2024 the Group entered into an exploration joint venture in Chile through its subsidiary Minera Capricorno, SCM (Capricornio) and Sociedad Quimica y Minera
de Chile, S.A. de C.V. (SQM), a Chilean mining company. The agreement considers a transfer of 25% ownership which represent a net share of US$0.4 million.
Set out below is the summarised financial information for each subsidiary that has non-controlling interests that are material to
the Group. Figures are presented in thousands of US dollars unless otherwise indicated.
Summarised income statement for the year ended 31 December 2025 and 2024
Minera Juanicipio, S.A. de C.V. | Equipos Chaparral, S.A. de C.V. | |||
31-Dec-2025 | 31-Dec-2024 | 31-Dec-2025 | 31-Dec-2024 | |
Revenue | 892,472 | 627,366 | — | — |
Profit/(loss) before income tax | 562,738 | 366,541 | 55,114 | (21,698) |
Income tax charge | 174,323 | 160,595 | 5,630 | 3,054 |
Profit/(loss) for the year | 388,415 | 205,946 | 49,484 | (24,752) |
Other comprehensive (loss)/gain | (43) | (30) | (54) | 90 |
Total comprehensive income/(loss) | 388,372 | 205,916 | 49,430 | (24,662) |
Attributable to non-controlling interests | 170,884 | 90,603 | 21,749 | (10,851) |
Dividends paid to non-controlling interests | (101,200) | (26,400) | (2,200) | — |
Summarised statement of financial position as at 31 December 2025 and 2024
Minera Juanicipio, S.A. de C.V. | Equipos Chaparral, S.A. de C.V. | |||
31-Dec-2025 | 31-Dec-2024 | 31-Dec-2025 | 31-Dec-2024 | |
| Current | ||||
Assets | 532,955 | 161,736 | 22,822 | 29,462 |
Liabilities | (308,024) | (82,572) | (12,037) | (7,919) |
Total current net assets | 224,931 | 79,164 | 10,785 | 21,543 |
| Non-current | ||||
Assets | 720,588 | 730,074 | 230,314 | 174,871 |
Liabilities | (182,092) | (204,266) | (11) | (6) |
Total non-current net assets | 538,496 | 525,808 | 230,303 | 174,865 |
Net assets | 763,427 | 604,972 | 241,088 | 196,408 |
| Attributable to: | ||||
Equity holders of parent | 427,519 | 338,819 | 135,009 | 110,018 |
Non-controlling interest | 335,908 | 266,153 | 106,079 | 86,443 |
Summarised cash flow information for the year ended 31 December 2025 and 2024
Minera Juanicipio, S.A. de C.V. | Equipos Chaparral, S.A. de C.V. | |||
31-Dec-2025 | 31-Dec-2024 | 31-Dec-2025 | 31-Dec-2024 | |
Operating | 532,088 | 354,895 | 8,262 | 17,521 |
Investing | (24,583) | (40,104) | 383 | 692 |
Financing | (272,087) | (297,489) | (9,774) | (24,485) |
Net increase/(decrease) in cash and cash equivalents | 235,418 | 17,302 | (1,129) | (6,272) |
234
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
5. Revenues
Revenues reflect the sale of goods, being concentrates, doré, slag, precipitates and activated carbon of which the primary
contents are silver, gold lead and zinc.
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Revenues from contracts with customers | 4,512,948 | 3,503,662 |
| Revenues from other sources: | ||
Provisional pricing adjustment on products sold | 48,283 | (7,277) |
4,561,231 | 3,496,385 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Lead concentrates (containing silver, gold, lead and by-products) | 2,167,423 | 1,652,909 |
Doré and slag (containing gold, silver and by-products) | 816,695 | 753,747 |
Zinc concentrates (containing zinc, silver and by-products) | 346,705 | 380,169 |
Precipitates (containing gold and silver) | 747,014 | 522,077 |
Activated carbon (containing gold, silver and by-products) | 474,847 | 172,747 |
Iron concentrates (containing silver, gold, lead and by-products) | 8,547 | 14,736 |
4,561,231 | 3,496,385 |
5.(c). Value of metal content in products sold
Invoiced revenues are derived from the value of metal content which is determined by commodity market prices and adjusted
for the treatment and refining charges to be incurred by the metallurgical complex of our customer. The value of the metal
content of the products sold, before treatment and refining charges is considered as an alternative performance measure for the
Group. The Group considers this a useful additional measure to help understand underlying factors driving revenue in terms of
volumes sold and realised prices. The value of production sold by metal is as follows:
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Silver | 2,161,932 | 1,673,901 |
Gold | 2,071,175 | 1,514,702 |
Zinc | 287,594 | 311,557 |
Lead | 124,587 | 139,789 |
Value of metal content in products sold | 4,645,288 | 3,639,949 |
Refining and treatment charges 1 | (84,057) | (143,564) |
Total revenues 2 | 4,561,231 | 3,496,385 |
1. The methodology to determine the refining and treatment charges takes into account industry benchmark charges and adjustments to reflect ore composition and
transport costs (refer to Note 27.(b)).
2. Includes provisional price adjustments which represent changes in the fair value of trade receivables resulting in a gain of US$48.2 million (2024: loss of US$7.2 million).
For further detail, refer to note 2.(o).
The average realised prices for the gold and silver content of products sold, prior to the deduction of treatment and refining
charges, were:
| Year ended 31 December | ||
2025 | 2024 | |
US$ per ounce | US$ per ounce | |
Gold | 3,532.74 | 2,453.58 |
Silver | 43.60 | 28.78 |
235
Fresnillo plc Annual Report and Accounts 2025
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Depreciation and amortisation | 490,647 | 619,779 |
Contractors | 339,766 | 351,474 |
Maintenance and repairs | 288,284 | 289,475 |
Operating materials | 243,640 | 304,946 |
Personnel expenses (Note 8) | 232,099 | 230,312 |
Energy | 202,633 | 249,517 |
Mining concession rights and contributions | 28,873 | 27,192 |
Surveillance | 21,352 | 21,705 |
Insurance | 14,911 | 12,727 |
Mine equipment leased 1 | 13,577 | 59,156 |
IT services | 12,106 | 10,785 |
Freight | 6,948 | 7,607 |
Other | 24,708 | 29,672 |
Cost of production | 1,919,544 | 2,214,347 |
Change in work in progress and finished goods (ore inventories) 2 | (22,424) | 35,765 |
1,897,120 | 2,250,112 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Contractors | 112,002 | 101,514 |
Mining concession rights and contributions | 29,055 | 30,437 |
Personnel expenses (Note 8.(a)) | 15,921 | 15,461 |
Assays | 6,585 | 5,746 |
Administrative services | 2,167 | 1,406 |
Rentals | 1,380 | 869 |
Other | 6,421 | 7,615 |
173,531 | 163,048 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Operating cash outflows related to exploration activities | 172,925 | 162,837 |
236
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Salaries and wages | 112,100 | 108,800 |
Statutory healthcare and housing contributions | 49,086 | 48,214 |
Bonuses | 48,675 | 36,547 |
Other benefits | 25,048 | 29,704 |
Employees’ profit sharing | 15,859 | 13,609 |
Post-employment benefits | 9,762 | 9,684 |
Legal contributions | 6,477 | 5,625 |
Vacations and vacations bonus | 6,305 | 8,727 |
Training | 2,431 | 1,923 |
Other | 4,473 | 4,625 |
280,216 | 267,458 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Cost of sales (Note 6) | 232,099 | 230,312 |
Administrative expenses | 32,196 | 21,685 |
Exploration expenses (Note 7) | 15,921 | 15,461 |
280,216 | 267,458 |
| Year ended 31 December | ||
2025 | 2024 | |
No. | No. | |
Mining | 3,526 | 3,572 |
Plant | 932 | 1,040 |
Exploration | 155 | 101 |
Maintenance | 1,314 | 1,261 |
Administration and other | 1,268 | 1,266 |
Total | 7,240 |
237
Fresnillo plc Annual Report and Accounts 2025
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Other income: | ||
Gain on sale of mining concessions 1 | 13,050 | 24,149 |
Insurance claims recovered | 200 | 6,302 |
Gain on sale of property, plant and equipment and other assets | 286 | 1,004 |
Selling of sundry materials and scrap | 907 | 1,549 |
Change in mine closure cost provision 2 | 344 | 1,222 |
Rentals | 1,934 | 543 |
Dividends from Equity instruments at FVOCI | 1,754 | — |
Other | 1,754 | 4,790 |
20,229 | 39,559 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Other expenses: | ||
Allowance for obsolete and slow-moving inventories | 3,652 | 6,165 |
Donations | 2,909 | 4,517 |
Maintenance 3 | 6,158 | 3,554 |
Indemnities to suppliers | — | 2,151 |
Write-off of PPE assets 4 | 15,988 | 1,704 |
Change in mine closure cost provision 2 | — | 1,214 |
Environmental activities 5 | 392 | 599 |
Consumption tax expensed | 960 | 709 |
Other | 3,279 | 683 |
33,338 | 21,296 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Finance income: | ||
Interest on short-term deposits and investments | 84,088 | 42,210 |
Interest on tax receivables | 3,856 | 3,117 |
Other | 4,605 | 1,609 |
92,549 | 46,936 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Finance costs: | ||
Interest on interest-bearing loans and notes payable | 39,675 | 43,845 |
Unwinding of discount on provisions (Note 21) | 22,360 | 24,997 |
Interest on lease liabilities (Note 25.(a)) | 1,031 | 1,574 |
Other | 5,475 | 3,155 |
68,541 | 73,571 |
238
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Consolidated income statement: | ||
| Corporate income tax | ||
| Current: | ||
Income tax charge | 567,703 | 187,027 |
Amounts (over)/under provided in previous years 1 | (23,030) | (158) |
544,673 | 186,869 | |
| Deferred: | ||
Origination and reversal of temporary differences | (172,933) | 258,001 |
Effects of Silverstream contract | (56,765) | (54,683) |
(229,698) | 203,318 | |
Corporate income tax | 314,975 | 390,187 |
| Special mining right | ||
| Current: | ||
Special mining right charge (Note 11.(e)) | 191,417 | 66,469 |
Amounts (over)/under provided in previous years | 151 | (238) |
191,568 | 66,231 | |
| Deferred: | ||
Origination and reversal of temporary differences | 1,610 | 60,793 |
Special mining right | 193,178 | 127,024 |
Income tax expense reported in the income statement | 508,153 | 517,211 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Consolidated statement of comprehensive income: | ||
Deferred income tax (charge)/credit related to items recognised directly in other comprehensive income: | ||
Changes in fair value of cash flow hedges | 135 | 60 |
Changes in fair value of equity investments at FVOCI | (21,257) | (10,593) |
Remeasurement losses on defined benefit plans | 389 | 31 |
Income tax effect reported in other comprehensive income | (20,733) | (10,502) |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Accounting profit before income tax | 2,081,982 | 743,902 |
Tax at the Group’s statutory corporate income tax rate 30.0% | 624,595 | 223,171 |
Exchange rate effect on tax value of assets and liabilities 1 | (192,494) | 300,243 |
Expenses not deductible for tax purposes | 9,023 | 7,122 |
Inflationary uplift of the tax base of assets and liabilities | (50,670) | (55,170) |
Special mining right deductible for corporate income tax | (58,359) | (38,107) |
Non-taxable/non-deductible foreign exchange effects | (6,233) | (18,601) |
Update of tax values 2 | — | (13,468) |
Incentive for Northern Border Zone (note 11 (e)) | 425 | (12,921) |
Deferred tax asset not recognised | 10,890 | 6,392 |
Inflationary uplift of tax losses | (1,870) | (4,701) |
Current income tax (over)/underprovided in previous years | (22,879) | (1,977) |
Inflationary uplift on tax refunds | (1,157) | (935) |
Other | 3,704 | (861) |
Corporate income tax at the effective tax rate of 15.1% (2024: 52.5%) | 314,975 | 390,187 |
Special mining right | 193,178 | 127,024 |
Tax at the effective income tax rate of 24.4% (2024: 69.5%) | 508,153 | 517,211 |
239
Fresnillo plc Annual Report and Accounts 2025
11. Income tax expense continued
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Opening net asset/(liability) | 257,521 | 532,100 |
Income statement (charge)/credit arising on corporate income tax | 229,698 | (203,318) |
Income statement charge arising on special mining right | (1,610) | (60,793) |
Exchange difference | (16) | 34 |
Net charge related to items directly charged to other comprehensive income | (20,733) | (10,502) |
Closing net asset | 464,860 | 257,521 |
Consolidated balance sheet | Consolidated income statement | |||
2025 | 2024 | 2025 | 2024 | |
US$ thousands | US$ thousands | US$ thousands | US$ thousands | |
Related party receivables | (430,412) | (352,650) | 77,762 | 171,414 |
Other receivables | (4,452) | (11,656) | (7,205) | 5,423 |
Inventories | 150,911 | 148,629 | (2,282) | 3,749 |
Prepayments | (4,847) | (2,939) | 1,908 | (560) |
Derivative financial instruments including Silverstream contract | 191 | (71,833) | (71,889) | (66,278) |
Property, plant and equipment arising from corporate income tax | 478,359 | 300,222 | (178,137) | 66,472 |
Exploration expenses and operating liabilities | 106,974 | 90,201 | (16,774) | 17,510 |
Other payables and provisions | 81,745 | 73,659 | (8,086) | 14,046 |
Losses carried forward | 46,441 | 90,124 | 43,683 | 50,999 |
Post-employment benefits | 2,819 | 1,821 | (610) | 310 |
Deductible profit sharing | 6,089 | 3,974 | (2,115) | (3,121) |
Special mining right deductible for corporate income tax | 92,552 | 39,886 | (52,666) | (32,441) |
Equity investments at FVOCI | (676) | (10,017) | (30,598) | 792 |
Other | (9,739) | 7,580 | 17,310 | (24,996) |
Net deferred tax asset related to corporate income tax | 515,955 | 307,001 | ||
Deferred tax credit related to corporate income tax | (229,698) | 203,319 | ||
Related party receivables arising from special mining right | (120,219) | (99,487) | 20,732 | 54,524 |
Inventories arising from special mining right | 41,996 | 41,664 | (332) | (4,540) |
Property plant and equipment arising from special mining right | (10,688) | (22,444) | (11,757) | 10,756 |
Other | 37,816 | 30,787 | (7,033) | 52 |
Net deferred tax liability related to special mining rights | (51,095) | (49,480) | ||
Deferred tax (charge)/credit | (228,088) | 264,111 | ||
| Reflected in the statement of financial position as follows: | ||||
Deferred tax assets | 610,367 | 466,734 | ||
Deferred tax liabilities | (145,507) | (209,213) | ||
Net deferred tax asset | 464,860 | 257,521 |
240
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
12. Earnings per share
Earnings per share (EPS) is calculated by dividing profit for the year attributable to equity shareholders of the Company by the
weighted average number of Ordinary Shares in issue during the period.
The Company has no dilutive potential Ordinary Shares.
As of 31 December 2025 and 2024, earnings per share have been calculated as follows:
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Earnings: | ||
Profit attributable to equity holders of the Company | 1,383,988 | 140,920 |
Adjusted profit attributable to equity holders of the Company | 1,516,436 | 268,513 |
Adjusted profit is profit as disclosed in the Consolidated Income Statement adjusted to exclude revaluation effects of the
Silverstream contract ofUS$ 189.2 (US$ 132.4 net of tax) (2024: US$240.3 million gain (US$(168.2) million net of tax)).
Adjusted earnings per share have been provided in order to provide a measure of the underlying performance of the Group, prior
to the revaluation effects of the Silverstream contract, a derivative financial instrument.
241
Fresnillo plc Annual Report and Accounts 2025
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Number of shares: | ||
Weighted average number of Ordinary Shares in issue | 736,894 | 736,894 |
2025 | 2024 | |
US$ | US$ | |
| Earnings per share: | ||
Basic and diluted earnings per share | 1.878 | 0.191 |
Adjusted basic and diluted earnings per Ordinary Share | 2.058 | 0.364 |
Year ended 31 December 2025 1 | ||||||
Mining | US$ thousands | |||||
properties and | ||||||
| Land and | Plant and | development | Construction in | |||
| buildings | equipment 2 | costs | Other assets 3 | progress | Total | |
| Cost | ||||||
At 1 January 2025 | 478,595 | 3,238,079 | 3,430,657 | 395,029 | 269,613 | 7,811,973 |
Additions | — | 6,994 | 4,056 | 4,250 | 422,812 | 438,112 |
Disposals 4 | (3,366) | (48,596) | (266,703) | (1,286) | — | (319,951) |
Transfers and other movements | 66,032 | 56,520 | 202,934 | 5,352 | (330,838) | — |
At 31 December 2025 | 541,261 | 3,252,997 | 3,370,944 | 403,345 | 361,587 | 7,930,134 |
| Accumulated depreciation | ||||||
At 1 January 2025 | (282,128) | (2,230,801) | (2,463,157) | (297,222) | — | (5,273,308) |
Depreciation for the year 5 | (79,209) | (143,682) | (253,385) | (16,506) | — | (492,782) |
Disposals 4 | 1,466 | 37,101 | 262,548 | 875 | — | 301,990 |
At 31 December 2025 | (359,871) | (2,337,382) | (2,453,994) | (312,853) | — | (5,464,100) |
Net book amount at 31 December 2025 | 181,390 | 915,615 | 916,950 | 90,492 | 361,587 | 2,466,034 |
Year ended 31 December 2025 3 | ||||||
| US$ thousands | ||||||
Mining | ||||||
properties and | ||||||
| Land and | Plant and | development | Construction in | |||
| buildings | equipment 4 | costs | Other assets 2 | progress | Total | |
| Cost | ||||||
At 1 January 2024 | 435,884 | 3,132,445 | 3,240,706 | 453,048 | 285,473 | 7,547,556 |
Additions | 40,627 | 32,215 | 144,041 | (51,426) | 136,565 | 302,022 |
Disposals 4 | (70) | (27,069) | (4,148) | (6,318) | — | (37,605) |
Transfers and other movements | 2,154 | 100,488 | 50,058 | (275) | (152,425) | — |
At 31 December 2024 | 478,595 | 3,238,079 | 3,430,657 | 395,029 | 269,613 | 7,811,973 |
| Accumulated depreciation | ||||||
At 1 January 2024 | (246,713) | (1,991,095) | (2,185,700) | (263,132) | — | (4,686,640) |
Depreciation for the year 1 | (35,483) | (265,219) | (281,539) | (40,119) | — | (622,360) |
Disposals 4 | 68 | 25,513 | 4,082 | 6,029 | — | 35,692 |
At 31 December 2024 | (282,128) | (2,230,801) | (2,463,157) | (297,222) | — | (5,273,308) |
Net book amount at 31 December 2024 | 196,467 | 1,007,278 | 967,500 | 97,807 | 269,613 | 2,538,665 |
242
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Fresnillo | 62,755 | 60,674 |
Saucito | 84,346 | 81,712 |
Juanicipio | 60,138 | 48,846 |
Ciénega | 8,058 | 13,843 |
San Julián | 28,371 | 15,820 |
Herradura | 117,513 | 48,422 |
Other 1 | 406 | 296 |
361,587 | 269,613 |
243
Fresnillo plc Annual Report and Accounts 2025
14. Silverstream contract continued
2025 | 2024 | |
US$ thousands | US$ thousands | |
Balance at 31 December | 258,641 | 482,340 |
Cash received in respect of the year | (69,429) | (24,907) |
Cash receivable | — | (16,516) |
Remeasurement gains recognised in profit and loss | (189,212) | (182,276) |
Balance at 31 December | — | 258,641 |
Less – Current portion | — | 44,204 |
Non-current portion | — | 214,437 |
Year ended 31 December | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Long-term |
2024 | 29.70 | 31.36 | 32.74 | 33.31 | 33.77 | 24.50 |
15. Inventories
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Finished goods 1 | 69,704 | 36,766 |
Work in progress 2 | 259,577 | 274,936 |
Ore stockpile 3 | 11,087 | 6,281 |
Operating materials and spare parts | 179,001 | 177,043 |
519,369 | 495,026 | |
Allowance for obsolete and slow-moving inventories | (16,771) | (12,849) |
Balanace as 31 December | 502,598 | 482,177 |
Less – Current portion | 432,838 | 412,417 |
Non-current portion 4 | 69,760 | 69,760 |
1. Finished goods include metals contained in concentrates, doré bars and activated carbon on hand or in transit to a smelter or refinery.
2. Work in progress includes metals contained in ores on leaching pads for an amount ofUS$218.3 million (2024: US$253.5 million) and in stockpiles US$41.3 million(2024:
US$21.4 million) that will be processed in dynamic leaching plants (Note 2.(c)).
3. Ore stockpile includes ore mineral obtained at Juanicipio.
4. Non-current inventories relate to ore in leaching pads where the leaching process has stopped and is not expected to restart within twelve months. As at 31 December
2025 and 2024 non-current inventories corresponds to Soledad-Dipolos mine unit (Note 2.(c)).
Concentrates are a product containing sulphides with a variable content of precious and base metals and sold to smelters and/or
refineries. Doré is an alloy containing a variable mixture of gold and silver that is delivered in bar form to refineries. Activated
carbon is a product containing variable mixture of gold and silver that is delivered in small particles.
The amount of inventories recognised as an expense in the year was US$1,897 million (2024: US$2,254.0 million). During 2025 and
2024, there was no adjustment to net realisable value allowance against work-in-progress inventory. The adjustment to the
allowance for obsolete and slow-moving inventory recognised as an expense was US$3.9 million (2024: US$6.2 million).
244
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Trade receivables from related parties (Note 27) | 760,177 | 548,760 |
Value Added Tax receivable | 46,419 | 89,441 |
Other receivables from related parties (Note 27.(a)) | 1,355 | 17,339 |
Other trade receivables | 6,312 | 2,079 |
Other receivables | 16,618 | 16,885 |
830,881 | 674,504 | |
Expected credit loss of Other receivables | (296) | (293) |
Trade and other receivables classified as current assets | 830,585 | 674,211 |
| Other receivables classified as non-current assets: | ||
Other receivable | 411 | 5,264 |
Value Added Tax receivable | 41,099 | — |
Trade and other receivables classified as non-current assets | 41,510 | 5,264 |
Total trade and other receivables | 872,095 | 679,475 |
245
Fresnillo plc Annual Report and Accounts 2025
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Cash at bank and on hand | 7,070 | 2,194 |
Short-term deposits | 2,656,673 | 1,108,219 |
Cash and cash equivalents | 2,663,743 | 1,110,413 |
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Short-term investments | 92,733 | 187,403 |
| As at 31 December | ||||
2025 | 2024 | |||
Class of share | Number | Amount | Number | Amount |
Ordinary Shares each of US$0.50 | 1,000,000,000 | $500,000,000 | 1,000,000,000 | $500,000,000 |
Sterling Deferred Ordinary Shares each of £1.00 | 50,000 | £50,000 | 50,000 | £50,000 |
Ordinary Shares | Sterling Deferred Ordinary Shares | |||
Number | US$ | Number | £ | |
At 1 January 2024 | 736,893,589 | $368,545,586 | 50,000 | 50000 |
At 31 December 2024 | 736,893,589 | $368,545,586 | 50,000 | 50000 |
At 31 December 2025 | 736,893,589 | $368,545,586 | 50,000 | 50000 |
246
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
19. Dividends declared and paid
The dividends declared and paid during the years ended 31 December 2025 and 2024 are as follows:
US cents | Amount | |
per Ordinary Share | US$ thousands | |
| Year ended 31 December 2025 | ||
Final dividend for 2024 declared and paid during the year¹ | 26.1 | 192,329 |
Special dividend for 2024 declared and paid during the year 2 | 41.8 | 307,992 |
Interim dividend for 2025 declared and paid during the year 3 | 20.8 | 153,274 |
88.7 | 653,595 | |
| Year ended 31 December 2024 | ||
Final dividend for 2023 declared and paid during the year 4 | 4.2 | 30,950 |
Interim dividend for 2024 declared and paid during the year 5 | ||
10.6 | 78,111 |
1. This dividend was approved by the shareholders on 20 May 2025 and paid on 30 May 2025.
2. This dividend was approved by the shareholders on 20 May 2025 and paid on 30 May 2025.
3. This dividend was approved by the Board of Directors on 28 July 2025 and paid on 17 September 2025.
4. This dividend was approved by the shareholders on 21 May 2024 and paid on 29 May 2024.
5. This dividend was approved by the Board of Directors on 29 July 2024 and paid on 17 September 2024.
A reconciliation between dividend declared, dividends affected to retained earnings and dividend presented in the cash flow
statements is as follows:
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Dividends declared | 653,595 | 78,111 |
Foreign exchange effect | 30 | — |
Dividends recognised in retained earnings | 653,625 | 78,111 |
Foreign exchange and hedging effect | 688 | 45 |
Dividends paid | 654,313 | 78,156 |
The directors have proposed a final dividend of US$108.1 cents per share, which is subject to approval at the Annual General
Meeting and is not recognised as a liability as at 31 December 2025. Dividends paid from the profits generated from 1 January
2014 to residents in Mexico and to non-resident shareholders may be subject to an additional tax of up to 10%, which will be
withheld by the Group.
247
Fresnillo plc Annual Report and Accounts 2025
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Opening balance | 839,507 | 839,002 |
Accrued interest | 37,986 | 38,093 |
Interest paid 1 | (37,986) | (37,986) |
Amortisation of discount and transaction costs | 419 | 398 |
Closing balance | 839,926 | 839,507 |
248
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Opening balance | 245,529 | 292,316 |
Decrease to existing provision | (30,397) | (4,072) |
Effect of changes in discount rate | 11,858 | (28,736) |
Unwinding of discount rate | 22,360 | 24,997 |
Payments | (2,512) | (3,093) |
Foreign exchange | 25,644 | (35,883) |
Closing balance | 272,482 | 245,529 |
Less – Current portion | 9,961 | 11,781 |
Non-current portion | 262,521 | 233,748 |
Discount rate | Foreign currency | Estimated costs | Change in LOM | |||||
| Basis point | Effect on | Effect on | Increase/ | Effect on | Effect on | |||
| increase/ | provision: | Strengthening/ | provision: | (decrease)in | provision: | Increase/ | provision: | |
| Year ended 31 | (decrease)in | increase/ | (weakening)of | increase/ | estimated | increase/ | (decrease)in | increase/ |
| December | interest rate | (decrease) | US dollar | (decrease) | costs | (decrease) | years | (decrease) |
US$ thousands | US$ thousands | US$ thousands | US$ thousands | |||||
2025 | 50 | 3,112 | 10% | (24,624) | 10 % | 32,072 | 2 | (10,179) |
(50) | (3,480) | (5%) | 14,256 | (10) % | (32,072) | (2) | 11,764 | |
2024 | 50 | 8,783 | 10% | (19,030) | 5% | 12,991 | 2 | (9,751) |
(50) | (11,708) | (5%) | 11,017 | (5%) | (12,991) | (2) | 11,764 |
22. Pensions and other post-employment benefit plans
The Group has a defined contribution plan and a defined benefit plan.
The defined contribution plan was established as from 1 July 2007 and consists of periodic contributions made by each Mexican
non-unionised worker and contributions made by the Group to the fund matching workers’ contributions, capped at 8% of the
employee’s annual salary.
The defined benefit plan provides pension benefits based on each worker’s earnings and years of service provided by personnel
hired up to 30 June 2007 as well as statutory seniority premiums for both unionised and non-unionised workers.
The overall investment policy and strategy for the Group’s defined benefit plan is guided by the objective of achieving an
investment return which, together with contributions, ensures that there will be sufficient assets to pay pension benefits and
statutory seniority premiums for non-unionised workers as they fall due while also mitigating the various risks of the plan.
However, the portion of the plan related to statutory seniority premiums for unionised workers is not funded. The investment
strategies for the plan are generally managed under local laws and regulations. The actual asset allocation is determined by
current and expected economic and market conditions and in consideration of specific asset class risk in the risk profile. Within
this framework, the Group ensures that the trustees consider how the asset investment strategy correlates with the maturity
profile of the plan liabilities and the respective potential impact on the funded status of the plan, including potential short-term
liquidity requirements.
Death and disability benefits are covered through insurance policies.
249
Fresnillo plc Annual Report and Accounts 2025
22. Pensions and other post-employment benefit plans continued
The following tables provide information relating to changes in the defined benefit obligation and the fair value of plan assets:
Pension cost charge to income statement | Remeasurement gains/(losses) in OCI | |||||||||||
| Return on | ||||||||||||
| plan assets | Actuarial | Defined | ||||||||||
| (excluding | changes | benefit | ||||||||||
| amounts | arising from | decrease | ||||||||||
| Balance at 1 | Sub-total | included | changes in | Sub-total | due to | Balance at 31 | ||||||
| January | Service | Net | Foreign | recognised | Benefits | in net | financial | included | Contributions | personnel | December | |
| 2025 | cost | interest | exchange | in the year | paid | interest) | assumptions | in OCI1 | by employer | transfer | 2025 | |
| US$ thousands | ||||||||||||
| Defined | ||||||||||||
| benefit | ||||||||||||
obligation | (29,110) | (1,618) | (2,688) | (3,884) | (8,190) | 1,859 | (761) | (1,462) | (2,223) | — | (56) | (37,720) |
Fair value of plan assets | 17,656 | — | 1,519 | 2,390 | 3,909 | (1,859) | (216) | — | (216) | 481 | 17 | 19,988 |
| Net benefit | ||||||||||||
liability | (11,454) | (1,618) | (1,169) | (1,494) | (4,281) | — | (977) | (1,462) | (2,439) | 481 | (39) | (17,732) |
Pension cost charge to income statement | Remeasurement gains/(losses) in OCI | |||||||||||
| Return on | ||||||||||||
| plan assets | Actuarial | Defined | ||||||||||
| (excluding | changes | benefit | ||||||||||
| amounts | arising from | decrease | ||||||||||
| Balance at 1 | Sub-total | included | changes in | Sub-total | Contribution | due to | Balance at 31 | |||||
| January | Service | Net | Foreign | recognised | Benefits | in net | financial | included | s by | personnel | December | |
| 2024 | cost | interest | exchange | in the year | paid | interest) | assumptions | in OCI1 | employer | transfer | 2024 | |
| US$ thousands | ||||||||||||
| Defined | ||||||||||||
| benefit | ||||||||||||
obligation | (32,671) | 222 | (2,664) | 5,713 | 3,271 | 1,458 | — | (672) | (672) | — | (496) | (29,110) |
Fair value of plan assets | 19,460 | — | 1,486 | (2,914) | (1,428) | (1,458) | 474 | — | 474 | 256 | 352 | 17,656 |
| Net benefit | ||||||||||||
liability | (13,211) | 222 | (1,178) | 2,799 | 1,843 | — | 474 | (672) | (198) | 256 | (144) | (11,454) |
Of the total defined benefit obligation, US$17.5 million (2024: US$12.1 million) relates to statutory seniority premiums for unionised
workers which are not funded. The expected contributions to the plan for the next Annual Reporting period are nil. The principal
assumptions used in determining pension and other post-employment benefit obligations for the Group’s plans are shown below:
| As at 31 December | ||
2025 | 2024 | |
% | % | |
Discount rate | 9.09 | 10.14 |
Future salary increases (National Consumer Price Index) | 5.25 | 5.25 |
The life expectancy of current and future pensioners, men and women aged 65 and older, will live on average for a further 25 and
29 years respectively (2024: 22.5 years for men and 23.7 for women). The weighted average duration of the defined benefit
obligation is 8.0 years (2024: 7.8 years).
The fair values of the plan assets were as follows:
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
State owned companies | 618 | 279 |
Mutual funds (fixed rates) | 19,370 | 17,377 |
19,988 | 17,656 |
As at 31 December 2025 and 2024, all the funds were invested in quoted debt instruments.
The pension plan has not invested in any of the Group’s own financial instruments nor in properties or assets used by the Group.
250
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
A quantitative sensitivity analysis for significant assumptions as at 31 December 2025 is as shown below:
| Life | |||||
| Future salary increases | expectancy of | ||||
Assumptions | Discount rate | (NCPI) | pensioners | ||
| 0.5% | 0.5% | 0.5% | 0.5% | + 1 | |
| Sensitivity Level | Increase | Decrease | increase | decrease | Increase |
| Year ended 31 December 2025 | |||||
| (Decrease)/increase to the net defined benefit | |||||
obligation (US$ thousands) | (1,378) | 1,477 | 476 | (456) | (149) |
| Year ended 31 December 2024 | |||||
| (Decrease)/increase to the net defined benefit | |||||
obligation (US$ thousands) | (1,026) | 1,101 | 270 | (260) | 167 |
The sensitivity analysis above has been determined based on a method that extrapolates the impact on net defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The pension plan is
not sensitive to future changes in salaries other than in respect of inflation.
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Trade payables | 200,696 | 110,891 |
Other payables to related parties (Note 27.(a)) | 40,720 | 39,203 |
Accrued expenses | 68,210 | 38,188 |
Other taxes and contributions | 65,549 | 35,497 |
375,175 | 223,779 |
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Saucito | 36,974 | 28,030 |
Fresnillo | 41,934 | 20,324 |
San Julián | 5,303 | 4,785 |
Juanicipio | 23,963 | 21,776 |
Herradura | 19,285 | 16,167 |
Ciénega | 3,047 | 2,603 |
Other 1 | 841 | 657 |
131,347 | 94,342 |
251
Fresnillo plc Annual Report and Accounts 2025
| As at | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
IT equipment | 5,228 | 5,925 |
Plant and equipment | 3,198 | 3,123 |
Buildings | 2,621 | 2,845 |
Total lease liability | 11,047 | 11,893 |
Less – Current portion | 4,864 | 4,312 |
Non-current portion | 6,183 | 7,581 |
| Year ended 31 December 2025 | ||||
| US$ thousands | ||||
| Computer | Plant and | |||
| Buildings | equipment | Equipment | Total | |
| Cost | ||||
At 1 January 2025 | 5,907 | 15,788 | 4,139 | 25,834 |
Additions | — | 4,056 | 144 | 4,200 |
Disposals | — | (921) | — | (921) |
At 31 December 2025 | 5,907 | 18,923 | 4,283 | 29,113 |
| Accumulated depreciation | ||||
At 1 January 2025 | (3,729) | (10,301) | (1,390) | (15,420) |
Depreciation for the year | (640) | (3,519) | (502) | (4,661) |
Disposals | — | 179 | — | 179 |
At 31 December 2025 | (4,369) | (13,641) | (1,892) | (19,902) |
Net Book Value At 31 December 2025 | 1,538 | 5,282 | 2,391 | 9,211 |
| Year ended 31 December 2024 | ||||
| US$ thousands | ||||
| Computer | Plant and | |||
| Buildings | equipment | Equipment | Total | |
| Cost | ||||
At 1 January 2024 | 5,035 | 19,279 | 4,056 | 28,370 |
Additions | 942 | 1,329 | 83 | 2,354 |
Disposals | (70) | (4,820) | — | (4,890) |
At 31 December 2024 | 5,907 | 15,788 | 4,139 | 25,834 |
| Accumulated depreciation | ||||
At 1 January 2024 | (3,034) | (11,155) | (801) | (14,990) |
Depreciation for the year | (763) | (3,926) | (589) | (5,278) |
Disposals | 68 | 4,780 | — | 4,848 |
At 31 December 2025 | (3,729) | (10,301) | (1,390) | (15,420) |
Net book amount at 31 December 2024 | 2,178 | 5,487 | 2,749 | 10,414 |
252
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
253
Fresnillo plc Annual Report and Accounts 2025
Accounts receivable | Accounts payable | |||
As at 31 December | As at 31 December | |||
2025 | 2024 | 2025 | 2024 | |
US$ thousands | US$ thousands | US$ thousands | US$ thousands | |
| Trade: | ||||
Metalúrgica Met-Mex Peñoles, S.A. de C.V. | 760,177 | 548,760 | — | 6,622 |
| Other: | ||||
Industrias Peñoles, S.A.B. de C.V. 1 | — | 16,516 | — | — |
Metalúrgica Met-Mex Peñoles, S.A. de C.V. | — | 322 | 1,886 | 1,791 |
Servicios Administrativos Peñoles, S.A. de C.V. | — | — | 10,688 | 6,420 |
Servicios Especializados Peñoles, S.A. de C.V. | — | — | 8,995 | 10,374 |
Fuentes de Energía Peñoles, S.A. de C.V. | — | — | 10,624 | 6,373 |
Termoeléctrica Peñoles, S. de R.L. de C.V. | — | — | — | 439 |
Peñoles Tecnología, S.A. de C.V. | — | — | 1,282 | 1,640 |
Eólica de Coahuila S.A. de C.V. | — | — | 4,076 | 2,693 |
Minera Capela, S.A. de C.V. | — | — | — | 2 |
Grupo Nacional Provincial, S.A.B. de C.V. 2 | 995 | 357 | — | — |
Other | 360 | 144 | 3,169 | 2,849 |
Sub–total | 761,532 | 566,099 | 40,720 | 39,203 |
Less–current portion | 761,532 | 566,099 | 40,720 | 39,203 |
Non-current portion | — | — | — | — |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Silverstream contract: | ||
Industrias Peñoles, S.A.B. de C.V. | — | 258,641 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Income: | ||
| Sales: | ||
Metalúrgica Met-Mex Peñoles, S.A. de C.V. 1 | 4,552,684 | 3,481,650 |
| Insurance recovery | ||
Grupo Nacional Provincial, S.A.B. de C.V. | 246 | 8,317 |
Other income | 7,574 | 4,678 |
Total income | 4,560,504 | 3,494,645 |
254
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
| Expenses: | ||
| Administrative services: | ||
Servicios Administrativos Peñoles, S.A. de C.V. 1 | 51,171 | 52,352 |
Servicios Especializados Peñoles, S.A. de C.V. 2 | 14,938 | 18,738 |
Peñoles Tecnología, S.A. de C.V. | 6,387 | 4,970 |
72,496 | 76,060 | |
| Energy: | ||
Termoeléctrica Peñoles, S. de R.L. de C.V. | — | 7,295 |
Fuentes de Energía Peñoles, S.A. de C.V. | 38,410 | 35,711 |
Eólica de Coahuila S.A. de C.V. | 39,561 | 46,057 |
77,971 | 89,063 | |
| Operating materials and spare parts: | ||
Wideco Inc | 5,652 | 5,315 |
Metalúrgica Met-Mex Peñoles, S.A. de C.V. | 15,038 | 55,525 |
20,690 | 60,840 | |
| Equipment repair and administrative services: | ||
Serviminas, S.A. de C.V. | 750 | 2,760 |
| Insurance premiums: | ||
Grupo Nacional Provincial, S.A.B. de C.V. | 25,598 | 21,068 |
Other expenses: | 3,513 | 2,755 |
Total expenses | 201,018 | 252,546 |
| Year ended 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Salaries and bonuses | 7,612 | 6,044 |
Post-employment benefits | 432 | 395 |
Other benefits | 388 | 342 |
Total compensation paid in respect of key management personnel | 8,432 | 6,781 |
| As at 31 December | ||
2025 | 2024 | |
US$ thousands | US$ thousands | |
Accumulated accrued defined benefit pension entitlement | 5,393 | 4,325 |
| Year ended 31 December | ||
| Class of services | 2025 | 2024 |
US$ thousands | US$ thousands | |
Fees payable to the Group’s auditor for the audit of the Group’s annual accounts | 2,077 | 2,048 |
| Fees payable to the Group’s auditor and its associates for other services as follows: | ||
The audit of the Company’s subsidiaries pursuant to legislation | 892 | 975 |
Audit-related assurance services 1 | 860 | 748 |
Total | 3,829 | 3,771 |
255
Fresnillo plc Annual Report and Accounts 2025
29. Notes to the consolidated statement of cash flows
2025 | 2024 | ||
| Notes | US$ thousands | US$ thousands | |
| Reconciliation of profit for the year to net cash generated from operating activities | |||
Profit for the year | 1,573,829 | 226,691 | |
| Adjustments to reconcile profit for the period to net cash inflows from operating | |||
| activities: | |||
Depreciation and amortisation | 13 | 491,636 | 620,867 |
Employee profit sharing | 8 | 15,859 | 13,609 |
Deferred income tax (credit)/expense | 11 | (224,789) | 264,111 |
Current income tax expense | 11 | 732,942 | 253,100 |
Write-off of assets | 9 | 15,988 | 1,704 |
Gain on the sale of property, plant and equipment and other assets | (286) | (1,004) | |
Net finance costs | (24,238) | 25,131 | |
Unrealised foreign exchange loss/(gain) | 30,261 | (2,200) | |
| Difference between pension contributions paid and amounts recognised in the income | |||
statement | 1,657 | (63) | |
Dividends received from equity instruments at FVOCI | (1,754) | — | |
Non-cash movement on derivatives | (297) | (301) | |
Changes in fair value of Silverstream | 14 | 189,212 | 182,276 |
Change in mine closure cost provision | 9 | 344 | 8 |
Gain in sale of mining concessions | 9 | (13,050) | (24,149) |
| Working capital adjustments | |||
Increase in trade and other receivables | (208,292) | (196,196) | |
(Increase)/decrease in prepayments and other assets | (20,076) | 10,741 | |
(Increase)/decrease in inventories | (20,421) | 50,556 | |
Increase/(decrease) in trade and other payables | 120,664 | (28,016) | |
Cash generated from operations | 2,659,189 | 1,396,865 | |
Income tax paid 1 | (357,561) | (94,957) | |
Employee profit sharing paid | (11,921) | (2,106) | |
Net cash from operating activities | 2,289,707 | 1,299,802 |
1. Income tax paid includes US$294.3 corresponding to corporate income tax (2024: US$72.1 million) and US$63.2 million corresponding to special mining right (2024:
US$22.9 million), for further information refer to Note 11.
| At 31 December 2025 | |||||
| US$ thousands | |||||
| Fair value | Fair value | ||||
| Amortised | Fair value | (hedging | through profit | ||
| Financial assets: | cost | through OCI | instruments) | or loss | |
Trade and other receivables 1 | 21,341 | — | — | 760,177 | |
Equity instruments at FVOCI | — | 34,537 | — | — | |
Silverstream contract (note 14) | — | — | — | — | |
Derivative financial instruments | — | — | 103 | — |
| Fair value | Fair value | |||
| Amortised | (hedging | through profit | ||
| Financial liabilities: | cost | instruments) | or loss | |
Interest bearing loans (Note 20) | 839,926 | — | — | |
Trade and other payables (Note 23) | 241,416 | — | — | |
Derivative financial instruments | — | 741 | — |
256
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| At 31 December 2024 | |||||
| US$ thousands | |||||
| Fair value | Fair value | ||||
| Amortised | Fair value | (hedging | through profit | ||
| Financial assets: | cost | through OCI | instruments) | or loss | |
Trade and other receivables 1 | 8,542 | — | — | 565,276 | |
Equity instruments at FVOCI | — | 139,968 | — | — | |
Silverstream contract (Note 14) | — | — | — | 258,641 |
| Fair value | Fair value | |||
| Amortised | (hedging | through profit | ||
| Financial liabilities: | cost | instruments) | or loss | |
Interest bearing loans (Note 20) | 839,507 | — | — | |
Notes payable 2 | 2,055 | — | — | |
Trade and other payables (Note 23) | 150,094 | — | — | |
Derivative financial instruments | — | 189 | — |
| As at 31 December | |||||
Carrying amount | Fair value | ||||
2025 | 2024 | 2025 | 2024 | ||
US$ thousands | US$ thousands | US$ thousands | US$ thousands | ||
| Financial assets: | |||||
Trade and other receivables | 21,341 | 8,542 | 21,341 | 8,542 | |
| Financial liabilities: | |||||
Interest bearing loans¹ (Note 20) | 839,926 | 839,507 | 678,215 | 605,396 | |
Trade and other payables | 241,416 | 150,094 | 241,416 | 150,094 | |
Notes payable | — | 2,055 | — | 2,055 |
| As of 31 December 2025 | ||||
| Fair value measure using | ||||
| Quoted prices | Significant | Significant | ||
| in active | observable | unobservable | ||
| markets Level 1 | Level 2 | Level 3 | Total | |
US$ thousands | US$ thousands | US$ thousands | US$ thousands | |
| Financial assets: | ||||
Trade receivables | — | — | 760,177 | 760,177 |
| Derivative financial instruments: | ||||
Option and forward foreign exchange contracts | — | 103 | — | 103 |
| Other financial assets: | ||||
Equity instruments at FVOCI | 34,537 | — | — | 34,537 |
34,537 | 103 | 760,177 | 794,817 | |
257
Fresnillo plc Annual Report and Accounts 2025
30. Financial instruments continued
| As of 31 December 2024 | ||||
| Fair value measure using | ||||
| Quoted prices | Significant | Significant | ||
| in active | observable | unobservable | ||
| markets Level 1 | Level 2 | Level 3 | Total | |
US$ thousands | US$ thousands | US$ thousands | US$ thousands | |
| Financial assets: | ||||
Trade receivables | — | — | 548,760 | 548,760 |
Other receivables from related parties 1 | — | — | 16,516 | 16,516 |
| Derivative financial instruments: | ||||
Silverstream contract | — | 258,641 | 258,641 | |
| Other financial assets: | ||||
Equity instruments at FVOCI | 139,968 | — | — | 139,968 |
139,968 | — | 823,917 | 963,885 |
2025 | 2024 | |
US$ thousands | US$ thousands | |
Balance at 1 January: | 548,760 | 306,668 |
Sales | 4,512,967 | 3,503,662 |
Cash collection | (4,349,814) | (3,254,312) |
Changes in fair value | 83,129 | 32,638 |
Realised embedded derivatives during the year | (34,865) | (39,896) |
Balance at 31 December | 760,177 | 548,760 |
258
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
31. Financial risk management
Overview
The Group’s principal financial assets and liabilities, other than derivatives, comprise trade and other receivables, cash, equity
instruments at FVOCI, interest-bearing loans, notes payable and trade payables.
The Group has exposure to the following risks from its use of financial instruments:
• Market risk, including foreign currency, commodity price, interest rate and equity price risks
• Credit risk
• Liquidity risk
This note presents information about the Group’s exposure to each of the above risks and the Group’s objectives, policies and
processes for assessing and managing risk. Further quantitative disclosures are included throughout the Financial Statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards
and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their
roles and obligations.
The Fresnillo Audit Committee has responsibility for overseeing how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks
faced by the Group. The Audit Committee is assisted in its oversight role by Internal Audit, which undertakes both regular and ad
hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
259
Fresnillo plc Annual Report and Accounts 2025
31. Financial risk management continued
| Effect on profit | Effect on | ||
| before tax: | equity: | ||
| Strengthening/ | increase/ | increase/ | |
| Year ended 31 December | (weakening) of | (decrease) | (decrease) |
US dollar | US$ thousands | US$ thousands | |
2025 | 5% | 1,356 | (19,031) |
(5%) | (3,418) | 23,312 | |
2024 | 10% | 955 | (582) |
(5%) | (2,228) | 582 |
(decrease) | ||||||
| Effect on profit | |||
| Basis point | before tax: | ||
| increase/ | increase/ | ||
| (decrease) in | (decrease) | ||
| interest rate | |||
| Year ended 31 December | US$ thousands | ||
2025¹ | — | — | |
(50) | (13,826) | ||
2024¹ | — | — | |
(50) | (6,556) |
260
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
| Effect on profit | Effect on | ||
| before tax: | equity: | ||
| Increase/ | increase/ | increase/ | |
| (decrease) in | (decrease) | (decrease) | |
| Year ended 31 December | equity price | ||
US$ thousands | US$ thousands | ||
2025 | 100 % | — | 34,537 |
20 % | — | (6,907) | |
2024 | 80% | — | 111,958 |
(20%) | — | (27,989) |
| US$ thousands | |||||
Within 1 year | 2–3 years | 3-5 years | > 5 years | Total | |
| As at 31 December 2025 | |||||
Interest-bearing loans | 37,986 | 75,973 | 75,973 | 1,609,727 | 1,799,659 |
Trade and other payables | 241,416 | — | — | — | 241,416 |
Lease liabilities | 5,368 | 5,349 | 920 | — | 11,637 |
261
Fresnillo plc Annual Report and Accounts 2025
31. Financial risk management continued
| US$ thousands | |||||
Within 1 year | 2–3 years | 3-5 years | > 5 years | Total | |
| As at 31 December 2024 | |||||
Interest-bearing loans | 37,986 | 75,973 | 75,973 | 1,647,713 | 1,837,645 |
Trade and other payables | 150,094 | — | — | — | 150,094 |
Notes payable | 2,055 | — | — | — | 2,055 |
Lease liabilities | 4,994 | 6,092 | 2,604 | — | 13,690 |
| US$ thousands | |||||
Within 1 year | 2-3 years | 3-5 years | > 5 years | Total | |
| As at 31 December 2025 | |||||
Inflows | 437,947 | — | — | — | 437,947 |
Outflows | (439,562) | — | — | — | (439,562) |
Net | (1,615) | — | — | — | (1,615) |
| US$ thousands | |||||
Within 1 year | 2-3 years | 3-5 years | > 5 years | Total | |
| As at 31 December 2024 | |||||
Inflows | 13,191 | — | — | — | 13,191 |
Outflows | (12,403) | — | — | — | (12,403) |
Net | 788 | — | — | — | 788 |
32. Subsequent event
On 31 October 2025, the Company entered into a definitive arrangement to acquire 100% of the issued and outstanding shares of
Probe Gold Inc for an all-cash consideration of CAD$3.65 per share. On 21 January 2026 the Group completed the acquisition of
100% of the issued and outstanding shares of Probe Gold Inc., for a total consideration of US$555 million (CAD$770 million).
Probe is a Canadian exploration company focused on the acquisition, exploration, and development of highly prospective gold
properties. It is the 100% owner of the multimillion-ounce Novador Gold Project, as well as an early-stage Detour Gold project,
both located in Quebec.
The Group has applied its judgment to weigh the characteristics of Probe’s acquisition and conclude whether it constitutes the
acquisition of a business or a set of assets and activities under IFRS 3 “Business combinations”. The Group has applied the
optional concentration test outlined in the standard and on this basis, concluded that the acquisition of Probe does not
constitute the acquisition of a business but the acquisition of a set of assets.
262
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
As at 31 December
Notes 2025 2024
US$ thousands US$ thousands
ASSETS
Non-current assets
Investments in subsidiaries 5 6,246,001 4,189,712
Equity instruments at FVOCI 15 34,537 139,968
Deferred tax asset 4 4,766 43,481
6,285,304 4,373,161
Current assets
Loans to subsidiaries 12 1,111,385 1,026,470
Income tax recoverable 818 135
Trade and other receivables 6 2,137 1,149
Derivative financial instruments 15 103 —
Cash and cash equivalents 7 521,098 446,353
1,635,541 1,474,107
Total assets 7,920,845 5,847,268
EQUITY AND LIABILITIES
Capital and reserves attributable to shareholders of the Company
Share capital 8 368,546 368,546
Share premium 8 1,153,817 1,153,817
Merger reserve 8 4,212,817 2,173,782
Hedging reserve 8 (518) —
Fair value reserve of financial assets at FVOCI 8 19,214 59,712
Retained earnings 8 1,310,582 1,234,914
Total equity 7,064,458 4,990,771
Non-current liabilities
Interest-bearing loans 10 839,926 839,507
839,926 839,507
Current liabilities
Trade and other payables 15,720 16,801
Derivative financial instruments 15 741 189
16,461 16,990
Total liabilities 856,387 856,497
Total equity and liabilities 7,920,845 5,847,268
The Company profit is US$2,678.3 million for the year ended 31December 2025 (2024: loss of US$800.9 million). In accordance
with the exemption granted under section 408 of the Companies Act 2006 a separate income statement for the Company has
not been presented.
These Financial Statements were approved by the Board of Directors on 2March 2026 and signed on its behalf by:
Dr Arturo Fernández
Non-Executive Director
2March 2026
263
Fresnillo plc Annual Report and Accounts 2025
PARENT COMPANY BALANCE SHEET
AS AT 31DECEMBER 2025
Year ended 31 December
Notes
2025 2024
US$ thousands US$ thousands
Net cash from operating activities 14 (31,258) (71,450)
Cash flows from investing activities
Capital contribution to subsidiaries 5 (17,254) (13,341)
Loans granted to subsidiaries (913,405) (2,005,228)
Proceeds from repayment of loans granted to subsidiaries 942,448 2,251,753
Interest received 120,290 153,935
Dividends received 491,647 33,600
Purchase of equity instruments at FVOCI — (1,466)
Disposal of equity instruments at FVOCI 176,584 5,098
Net cash generated from investing activities 800,310 424,351
Cash flows from financing activities
Dividends paid¹ 9 (654,313) (78,156)
Interest paid (39,207) (37,986)
Net cash used in financing activities (693,520) (116,142)
Net increase in cash and cash equivalents during the year 75,532 236,759
Effect of exchange rate on cash and equivalents (787) (6,300)
Cash and cash equivalents at 1 January 446,353 215,894
Cash and cash equivalents at 31 December 7 521,098 446,353
1. Includes the effect of hedging of dividend payments made in currencies other than US Dollar.
264
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
PARENT COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31DECEMBER 2025
Notes Share capital Share premium Merger reserve
Hedging
reserve
Fair value
reserve of
financial assets
at FVOCI
Retained
earnings Total equity
At 1 January 2024 368,546 1,153,817 1,318,114 35,708 1,367,044 4,243,229
Income for the year — — — — — 800,937 800,937
Other comprehensive
gain net of tax — — — — 24,716 — 24,716
Total comprehensive income
for the year — — — — 24,716 800,937 825,653
Transfer of gain on
disposal of equity
investments at FVOCI to
retained earnings (net of
tax) — — — — (713) 713 —
Transfer of reserves — — 855,668 — — (855,668) —
Dividends declared and
paid 9 — — — — — (78,111) (78,111)
Balance at 31
December 2024 368,546 1,153,817 2,173,782 — 59,711 1,234,915 4,990,771
Income for the year — — — — — 2,678,300 2,678,300
Other comprehensive
income net of tax — — — — 49,530 — 49,530
Total comprehensive income
for the year — — — — 49,530 2,678,300 2,727,830
Transfer of gain on
disposal of equity
investments at FVOCI to
retained earnings (net of
tax) — — — — (90,027) 90,027 —
Hedging gain (loss)
transferred to the
carrying value of PPE
purchased during the
year — — — (518) — — (518)
Transfer of reserves — — 2,039,035 — — (2,039,035) —
Dividends declared and
paid 9 — — — — — (653,625) (653,625)
Balance at 31
265
Fresnillo plc Annual Report and Accounts 2025
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31DECEMBER 2025
1. Corporate information
and is the holding company for the Fresnillo subsidiaries detailed in Note 5. The Company is a Mexican resident for taxation
purposes with tax residency in Mexico City. For further information see Note 4.
Industrias Peñoles S.A.B. de C.V. (Peñoles) currently owns 75 percent of the shares of the Company and the ultimate controlling
party of the Company is the Baillères family, whose beneficial interest is held through Peñoles. The country of incorporation of
Peñoles is Mexico. Copies ofPeñoles’ accounts can be obtained from www.penoles.com.mx.
The primary activity of the Company is as a holding company for the Fresnillo Group of companies. See Note 5.
The Financial Statements of the Company for the year ended 31December 2025 were authorised for issue by the Board of
Directors of Fresnillo plc on 2March 2026.
2. Significant accounting policies
2.(a). Basis of preparation and consolidation, and statement of compliance
The Company’s separate Financial Statements have been prepared in accordance with UK adopted international accounting
standards and the requirements of the Companies Act 2006.
The Financial Statements of the Company have been prepared on a historical cost basis, except for certain derivative financial
instruments and equity securities which have been measured at fair value.
The Financial Statements are presented in dollars of the United States of America (US dollars or US$) and all monetary amounts
are rounded to thenearest thousand (US$000) except when otherwise indicated.
The basis of preparation and accounting policies used in preparing the Financial Statements are set out below. These accounting
policies have been consistently applied to all the periods presented unless otherwise stated.
Going concern
The financial position of the Company and its cash flows are set out in the balance sheet and statement of cash flows
respectively. In addition, Note 16 includes the Company’s objectives, policies and processes for managing its capital; its financial
risk management objectives; details of its financial instruments; and its exposures to credit risk and liquidity risk.
In making their assessment of the Company’s ability to manage its future cash requirements, the Directors have considered the
Company budgets and the cash flow forecasts for the period to 31 December 2027 (being the going concern assessment period).
The Directors have also considered the cash position as of 31December 2025 (US$521 million) and the net current asset position
(US$1,619.1 million). The cash flow forecast is based on the expected profit of the Group as described in the going concern section
of the Consolidated financial statements of the Company.
After reviewing all of the above considerations, the Directors have a reasonable expectation that management have sufficient
flexibility in adverse circumstances to maintain adequate resources to continue in operational existence for the foreseeable
future. The Directors, therefore, continue to adopt the going concern basis of accounting in preparing the Financial Statements.
2.(b). Changes in accounting policies and disclosures
The accounting policies adopted in the preparation of the separate Financial Statements are consistent with those applied in the
preparation of the separate Financial Statements for the year ended 31December 2024.
New standards, interpretations and amendments (new standards) adopted by the Company
A number of new, or amended, standards became applicable for the current reporting period. The Company did not have to
change its accounting policies or make retrospective adjustments as a result of adopting these standards.
Standards, interpretations and amendments issued but not yet effective
The International Accounting Standards Board (IASB) has issued other amendments resulting from improvements to IFRSs that
Management considers do not have any impact on the accounting policies, financial position or performance of the Company,
except for the new standard IFRS 18-Presentation and Disclosure in Financial Statements; this new standard replaces IAS1-
Presentation of Financial Statements, with a focus on updates to the statement of profit or loss. This new standard is applicable
for periods commencing 1 January 2027, early adoption is permitted. The Company is currently assessing the impact of IFRS 18
and plans to adopt the new standard on the required effective date.
The Company has not early adopted any standard, interpretation or amendment that was issued but is not yet effective
2.(c). Significant accounting judgements, estimates and assumptions
The preparation of the Company’s Financial Statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the
Financial Statements. These judgements and estimates are based on management’s knowledge of the relevant facts and
circumstances, with regard to prior experience, but actual results may differ from the amounts included in the Financial
Statements. Information about such judgements and estimates is in the accounting policies and the Notes to the
FinancialStatements.
266
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
Judgements
Areas of judgement, apart from those involving estimations, that have the most significant effect on the amounts recognised in
the separate Financial Statements for the year ended 31December 2025 are:
Deferred tax asset (Note 4):
The Company has recognised a deferred tax asset of US$4.8 million (2024: US$43.5 million) mainly in respect of tax losses
amounting to US$30.8 million (2024: US$192.9 million). The Company is a Mexican resident for taxation purposes and calculates
the tax payable based in its local currency that is the Mexican peso which generates difference between financial and taxable
profits. The Company has performed an assessment of the recoverability of tax losses before their expiration based on financial
and tax projections. Management have considered the taxable profit generated in the current year of US$177.8 million and based
on a consideration of this, combined with future projections of taxable profit, consider that there is evidence that sufficient
taxable profits will be available against which the unused tax losses can be utilised.
Climate change:
We describe how climate-related risks and opportunities (CROs) may affect, and, was considered in, the preparation of the
Financial Statements in Note 2.(c) to the Consolidated Financial Statements. Because the cash flows underpinning the
recoverable amount of mining assets also underpin the recoverable amount of investments in subsidiaries holding those mining
assets, the considerations set out in that note also apply to the Parent Company Financial Statements. The Company does not
have any assets or liabilities for which measurement is directly linked to climate change performance (for example:
Sustainability-Linked Bonds).
As disclosed in Note 2.(c) to the Consolidated Financial Statements, future changes to the Group’s Climate Change Strategy,
global decarbonisation signposts and regulation may impact the Group’s significant judgements and key estimates and result in
material changes to financial results and the carrying values of certain of the Group’s assets and liabilities in future reporting
periods, which could ultimately result in material changes in the carrying value of the Company’s assets and liabilities. However,
as at the balance sheet date, management believes there is no material impact on the Company’s balance sheet carrying values
of assets or liabilities.
Estimates and assumptions
The significant area of estimation uncertainty considered by management in preparing the Financial Statements is:
• Recoverable value of investments in subsidiaries (Notes 2.(e) and 5):
The Company assesses investments in subsidiaries annually to determine whether any indication of impairment exists. Where
an indicator of impairment exists, a formal estimate of the recoverable amount is made, which is considered to be the higher
of the fair value less costs ofdisposal (FVLCD) and the value in use. Due to the nature of the subsidiaries, the assessment of the
recoverable amount is generally determined based on the net present value of future cash flows related to the subsidiaries
requiring the use of estimates and assumptions such as long-term commodity prices, estimated and economically proven and
probable reserves, as well as certain other resources that are assessed as highly likely to be converted into reserves and the
associated production profiles, discount rates, future capital requirements, and production costs. Estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. The determination of that rate requires certain judgements.
Where an impairment charge has previously been recognised, the Company assesses at the end of each reporting period
whether there is any indication that the impairment loss may no longer exist, or may have decreased. If any such indication
exists, the Company estimates the recoverable amount of that investment, requiring similar estimates and assumptions as
those for determining an impairment charge. At 31December 2025 the Company recognised an impairment reversal of
US$2,039.0 million (2024: net impairment charge of US$855.7 million) resulting in a cumulative impairment relating to
subsidiaries of US$1,576.8 million (2024: US$3,615.8 million).
2.(d). Foreign currency translation
The Company’s Financial Statements are presented in US dollars, which is the functional currency of the Company. The
functional currency for the Company is determined by the currency of the primary economic environment in which it operates.
Transactions denominated in currencies other than the functional currency of the Company are translated at the exchange rate
ruling at the date ofthe transaction. Monetary assets and liabilities denominated in foreign currencies are re-translated at the
rate of exchange ruling at the balance sheet date. All differences that arise are recorded in the income statement. Non-monetary
items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates
of the initial transactions. Non-monetary items measured at fair value in aforeign currency are translated into US dollars using
the exchange rate at the date when the fair valued is determined.
267
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
2.(e). Investments in subsidiaries
Subsidiaries are entities which the Company controls due to it being exposed to, or having the right to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. Investments in
subsidiaries are recognised at acquisition cost less any provision for impairment. Impairment charges and reversals are
recognised in the income statement and subsequently transferred from the merger reserve against retained earnings.
When the Company increases its capital investment in or where there is a return of share capital from its subsidiaries, such
movements are recognised as an addition to, or return of the original cost recognised in investment in subsidiaries. Dividends are
recognised as other income in the income statement when the right of payment has been established.
At each reporting date, an assessment is made to determine whether there are any indicators of impairment. Where an indicator
of impairment exists, an estimate of the recoverable amount of the investment in subsidiary is made, which is considered to be
the higher of the fair value less costs of disposal and the value in use. The Company usually determines FVLCD based on the net
present value of the future cash flows related to its subsidiaries. If the carrying amount of an investment exceeds the recoverable
amount, a provision is recorded in the income statement to reflect the investment at the recoverable amount.
Where an impairment charge has previously been recognised, an assessment is made at the end of each reporting period
whether there is any indication that the impairment loss may no longer exist or may have decreased. If any such indication exists,
an estimate of the recoverable amount is made. An impairment loss is reversed to profit or loss to the extent that the increased
carrying value of the investment in subsidiary does not exceed that would have been determined had no impairment loss been
recognised for the asset in prior years.
2.(f). Financial assets and liabilities
Financial assets
The Company classifies its financial assets in the following measurement categories:
• those to be measured at amortised cost.
• those to be measured subsequently at FVOCI, and.
• those to be measured subsequently at FVPL.
The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the
cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity
instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the
time of initial recognition to account for the equity investment at FVOCI.
Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the
cash flow characteristics of the asset.
Classification
The Company holds the following financial assets:
Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the
effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in
other gains/(losses) together with foreign exchange gains and losses.
The Company’s financial assets at amortised cost include receivables from loans granted to subsidiaries.
Equity instruments designated as fair value through other comprehensive income
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at
FVOCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The
classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the
income statement when the right of payment has been established, except when the Company benefits from such proceeds as
a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated
at FVOCI are not subject to impairment assessment.
The Company elected to classify irrevocably its listed equity investments under this category.
Fair value through profit or loss
Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that
is subsequently measured at FVPL is recognised in profit or loss and presented net within other gains/(losses) in the period in
which it arises.
Changes in the fair value of financial assets at FVPL are recognised in other gains/(losses) in the income statement as applicable.
The Company’s derivative financial instruments are classified as fair value through profit or loss.
268
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
De-recognition of financial assets
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been
transferred and the Company has transferred substantially all the risks and rewards of ownership.
Impairment of financial assets
For loans granted to subsidiaries the Company evaluate the expected credit loss using a one-year probability of default
corresponding to the mining industry determined by a specialised financial institution and considering an appropriate severity
based on the cost of capital of the Company.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.
The Company’s financial liabilities include trade and other payables, loans and borrowings and derivative financial instruments.
Classification
For purposes of subsequent measurement, financial liabilities held by the Company are classified as financial liabilities at
amortised cost.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs in the income statement.
De-recognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts is recognised in the income statement.
2.(g). Cash and cash equivalents
For the purposes of the balance sheet, cash and cash equivalents comprise cash at bank, cash on hand and short-term deposits
held with banks that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in
value. Short-term deposits earn interest atthe respective short-term deposit rates between one day and three months.
2.(h). Share capital
Ordinary shares issued by the Company are recorded at the net proceeds received, which is the fair value of the consideration
received less costs that are incurred in connection with the share issue. The nominal par value of the shares issued is taken to the
share capital account and any excess is recorded in the share premium account, including the costs that were incurred with the
share issue.
2.(i). Dividends receivable
Dividends are recognised when the Company’s right to receive payments is established. Dividends received are recorded in the
income statement.
269
Fresnillo plc Annual Report and Accounts 2025
2. Significant accounting policies continued
2.(j). Income tax
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from or paid to thetaxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance sheet date.
Deferred income tax
Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the tax
bases of assets andliabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences, except:
• where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that
is not a business combination and, at the time of transaction, affects neither the accounting profit nor taxable profit loss; and
• in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, where thetiming of the reversal of the temporary differences can be controlled, and it is probable that the temporary
differences will not reverse in theforeseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and
unused tax losses, to theextent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilised except:
• where the deferred income tax asset relating to deductible temporary differences arise from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; and
• in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred income tax assets are recognised only to the extent that it is probable that the temporary differences will
reverse in the foreseeable future, and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to beutilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance
sheet date.
Deferred income tax relating to items recognised directly in equity is recognised in equity and not in the income statement.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and
where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the
entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
2.(k). Derivative financial instruments and hedging
The Company enters into derivative contracts in order to manage certain market risks derived from changes in foreign exchange
and commodity prices which impact the financial and business transactions of its subsidiaries. Such derivative financial
instruments are initially recognised at fair value on the date on which aderivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is
negative.
In the Group’s consolidated Financial Statements certain of these derivative instruments are designated as cash flow hedges but
for the purposes of the Company’s stand-alone Financial Statements the related hedged items are not held by the Company, so
do not qualify as cash flow hedges.
Any gains and losses arising from changes in fair value on derivatives during the year that do not qualify for hedge accounting
are taken directly totheincome statement.
Derivatives are valued using valuation approaches and methodologies (such as Black Scholes and Net Present Value) applicable
to the specific type ofderivative instrument. The fair value of forward currency contracts is calculated by reference to current
forward exchange rates for contracts with similar maturity profiles.
270
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
2.(l). Fair value measurement
The Company measures financial instruments at fair value at each balance sheet date. Fair values of financial instruments
measured at amortised cost are disclosed in Note 15.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset considers a market participant’s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its
highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the Financial Statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities based on the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. Further information on
fair values is described in Note 15.
2.(m). Dividend distribution
Dividends on the Company’s Ordinary Shares are recognised when they have been appropriately authorised and are no longer at
the Company’s discretion. Accordingly, interim dividends are recognised when they are paid and final dividends are recognised
when they are declared following approval by shareholders at the Company’s Annual General Meeting.
Mexican Income Tax Law establishes a 10% withholding tax on earnings from 2014 and thereafter, for dividends paid to foreign
residents and Mexican individuals.
Dividends paid are not subject to income tax if paid from the Net Tax Profit Account (CUFIN). Dividends paid that exceed CUFIN
are subject to an income tax payable at a rate of 30%. The tax is payable by the Company and may be credited against the
normal income tax payable by the Company in the year in which the dividends are paid or in the following two years. Dividends
paid from earnings previously taxed are not subject to any withholding or additional tax payment.
3. Segment reporting
Segmental information is not presented in the Company’s stand-alone Financial Statements as this is presented in the Group’s
consolidated Financial Statements.
271
Fresnillo plc Annual Report and Accounts 2025
4. Income tax
4.(a). Movements in the deferred income tax liability and asset:
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Opening net asset 43,481 68,916
Income tax expense (17,565) (14,842)
Net (charge) related to items directly charged to other comprehensive income (21,150) (10,593)
Closing net asset 4,766 43,481
The amounts of deferred income tax assets and liabilities before offset as at 31 December considering the nature of the
temporary differences are asfollows:
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Prepayments and other assets (4,640) (4,701)
Provision for expected credit losses on loans granted to subsidiaries 646 303
Derivative financial instruments 191 —
Losses carried forward 9,245 57,896
Equity instruments at FVOCI (676) (10,017)
Net deferred tax asset 4,766 43,481
4.(b). Unrecognised deferred tax on investments in subsidiaries
The Company has not recognised all the deferred tax liability in respect of distributable reserves of its subsidiaries because it
controls them and only part of the temporary differences is expected to reverse in the foreseeable future. The temporary
differences for which a deferred tax liability has not been recognised aggregate to US$1,322.8 million (2024: US$1,139.3 million).
4.(c). Corporate Income Tax (‘Impuesto Sobre la Renta’ or ‘ISR’)
The Company is a Mexican resident for taxation purposes. The rate of current corporate income tax is 30%.
5. Investments in subsidiaries
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Opening balance 4,189,712 3,320,703
Impairment reversal/(charge) 2,039,035 855,668
Capital contributions 17,254 13,341
Closing balance 6,246,001 4,189,712
During 2025, the Company made an impairment assessment to determine whether the carrying value of each of its
subsidiaries was recoverable as at 31December 2025 and determine if prior year impairment could be reversed. As a result, a
cumulative impairment loss of US$1,576.8 million is recognised with respect to certain of the Company’s investment in
subsidiaries (2024: US$3,615.8 million). The recoverable amount was estimated based on the Fair Value Less Cost of Disposal
(FVLCD) model (2024: FVLCD).
The following tables provide relevant information in respect of each impaired subsidiary:
Year ended 31 December 2025
Impairment
loss/(reversal)
in the year
Cumulative
Impairment
Recoverable
amount
Discount rate
(post-tax)US$ thousands US$ thousands US$ thousands
Minera Fresnillo, S.A. de C.V. (1,458,511) 1,145,336 2,760,205 7.22 %
Minera Mexicana la Ciénega, S.A. de C.V. (465,469) 374,209 816,935 6.60 %
Minera San Julián, S.A. de C.V. (48,760) — 743,118 6.54 %
Minera Penmont, S. de R.L. de C.V. (47,169) — 2,032,678 7.45 %
Exploraciones Mineras Parreña, S.A. de C.V. (19,126) 57,237 165,095 6.96 %
(2,039,035) 1,576,782
272
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
Year ended 31 December 2024
Impairment
loss/(reversal)
in the year
Cumulative
Impairment
Recoverable
amount
Discount rate
(post-tax)US$ thousands US$ thousands US$ thousands
Minera Fresnillo, S.A. de C.V. (358,709) 2,603,847 1,243,478 7.35%
Minera Mexicana la Ciénega, S.A. de C.V. (10,806) 839,678 288,650 7.35%
Minera Saucito, S.A. de C.V. (225,376) — 1,307,706 7.34%
Minera San Julián, S.A. de C.V. (73,360) 48,760 442,970 7.33%
Minera Penmont, S. de R.L. de C.V. (130,920) 47,169 915,312 7.38%
Exploraciones Mineras Parreña, S.A. de C.V. (56,497) 76,363 145,969 7.34%
(855,668) 3,615,817
In determining FVLCD it is necessary to make a series of assumptions to estimate future cash flows including reserves and
resources volumes and related production profile, price assumptions, cost estimates and discount rate. Accordingly, the fair value
is categorised as Level 3 in the fair value hierarchy. The price assumptions used to calculate FVLCD are determined with
reference analysts’ consensus of long-term prices. As at 31December 2025, the Company used long term price assumptions of
US$3,137/ounce (2024: US$2,169/ounce) and US$37.7/ounce (2024: US$27.6/ounce) for gold and silver, respectively.
Sensitivity analysis
The key assumptions on which management bases the recoverable value calculations of the investment in subsidiaries are
commodity prices, future capital requirements, production costs, reserves and resources volumes (reflected in production
volumes) and discount rate.
The models are most sensitive to changes in commodity price assumptions. Other than commodity price assumptions,
management has considered that the fair value of the investments in subsidiaries is not significantly sensitive to reasonably
possible change in any other key assumptions.
In the absence of any changes to any of the other key assumptions, a decrease of 10% in gold and 15% in silver prices would result
in a decrease of the reversal of the year of US$730.4 million.
The subsidiaries in which investments are directly held as at 31December 2025 and 2024 are as follows:
Minera Fresnillo, S.A. de C.V. Production of lead/silver and zinc concentrates
Mexico⁴
100 100
Minera San Julián, S.A. de C.V. Production of lead/silver and zinc concentrates
Mexico⁴
100 100
Minera Penmont, S. de R.L. de C.V.¹ Production of doré bars (gold/silver)
Mexico⁴
56 56
Minera Mexicana La Ciénega, S.A. de C.V.
Production of lead and zinc concentrates and
silver precipitates Mexico⁴ 100 100
Minera Saucito, S.A. de C.V. Production of lead and zinc concentrates
Mexico⁴
100 100
Equipos Mineros Nazas, S.A. de C.V. Leasing of mining equipment
Mexico⁴
100 100
Proveedora de Equipos Fresne, S de R.L. de C.V.¹ Leasing of mining equipment
Mexico⁴
56 56
Equipos Mineros la Hacienda, S.A. de C.V. Leasing of mining equipment
Mexico⁴
100 100
Proveedora de Equipos Jerez, S.A. de C.V. Leasing of mining equipment
Mexico⁴
100 100
Equipos Chaparral, S.A. de C.V. Leasing of mining equipment
Mexico⁴
56 56
Minera Juanicipio, S.A. de C.V. Production of lead/silver and zinc concentrates
Mexico⁴
56 56
Comercializadora de Metales Fresnillo, S.A. de C.V. Holds rights over silver production from Peñoles’
polymetallic Sabinas mine through the
Silverstream contract
Mexico⁴ 100 100
Exploraciones Mineras Parreña, S.A. de C.V. Exploration services
Mexico⁴
100 100
Exploraciones y Desarrollos Mineros Coneto, S.A. P. I. de C.V. Exploration services
Mexico⁴
61 55
Minera El Bermejal, S. de R.L. de C.V. Mining equipment leasing
Mexico⁴
56 56
Compañía Minera Las Torres, S.A. de C.V. Mine project
Mexico⁴
100 100
Servicios Administrativos Fresnillo, S.A. de C.V. Administrative services
Mexico⁴
100
100
Operaciones Fresnillo, S.A. de C.V. Administrative services
Mexico⁴
100
100
Servicios de Exploración Fresnillo, S.A. de C.V. Administrative services
Mexico⁴
100
100
Prestadora de Servicios Jarillas, S.A. de C.V. Administrative services
Mexico⁴
100
100
Fresnillo Management Services, Ltd Administrative services
UK⁵
100
100
Legal company Principal activity
Country of
incorporation
Equity interest % Year
ended 31 December
2025 2024
273
Fresnillo plc Annual Report and Accounts 2025
Fresbal Investments, Ltd Holding company for mining Investments
Canada⁶
100
100
Fresnillo Perú, S.A.C. Exploration services
Peru⁷
100
100
Parreña Perú, S.A.C. Exploration services
Peru⁷
100
100
Fresnillo Chile, SpA Exploration services
Chile⁸
100
100
Minera Capricornio, SCM² Exploration services
Chile⁸
75
75
Caja de Ahorros Fresnillo, S.C.³ Administrative services
Mexico⁴
—
—
Legal company Principal activity
Country of
incorporation
Equity interest % Year
ended 31 December
2025 2024
The list of subsidiary undertakings presented in this note represents the full list of subsidiary undertakings, required to be
submitted by Section 409 of the Companies Act 2006.
1. The remaining 44% interest in these companies is held by Comercializadora de Metales Fresnillo, S.A. de C.V. a wholly-owned subsidiary of the Company.
2. In October 2024 the Group entered into an exploration joint venture in Chile through its subsidiary Minera Capricorno, SCM. The agreement is between Sociedad
Quimica y Minera de Chile, S.A. de C.V. (SQM), a Chilean mining company and Minera Capricorno, SCM, which considers a transfer of 25% ownership in Minera Capricorno
through a capital increase from SQM.
3. Whilst Fresnillo plc holds no direct ownership in Caja de Ahorros Fresnillo, S.C. the entire share capital of the company is held through its subsidiaries.
4. The registered address for all Mexican subsidiaries is: Calzada Saltillo 400 No. 989, Torreón, Coahuila 27250.
5. Registered address is: Second Floor, 21 Upper Brook Street, London W1.
6. Registered address is: 355 Burrard Street, Suite 1800, Vancouver, BC, V6C 2G8.
7. Registered address is: República de Colombia 643, Piso 9, Distrito San Isidro, Lima 27.
8. Registered address is: Apoquindo 4775 oficina 1002 – Las Condes, Santiago de Chile.
6. Trade and other receivables
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Other receivables from subsidiaries (Note 12) 2 199
Prepayments 2,135 950
2,137 1,149
Balances corresponding to Prepayments and Other receivables are not considered as financial assets.
7. Cash and cash equivalents
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Cash at bank and on hand — 2
Short-term deposits 521,098 446,351
Cash and cash equivalents 521,098 446,353
Cash at the bank earns interest at floating rates based on daily bank deposits. Short-term deposits are made for varying periods
of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at
the respective short-term deposit rates. Short-term deposits can be withdrawn at call without any penalty or loss in value.
274
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
8. Equity
Share capital and share premium
Authorised share capital of the Company is as follows:
Class of share
As at 31 December
2025 2024
Number Amount Number Amount
Ordinary Shares each of US$0.50
1,000,000,000
$500,000,000
1,000,000,000
$500,000,000
Sterling Deferred Ordinary Shares each of £1.00
50,000
£50,000
50,000
£50,000
Issued share capital of the Company is as follows:
Ordinary Shares Sterling Deferred Ordinary Shares
Number US$ Number £
At 1 January 2024 736,893,589 368,545,586 50,000
£50,000
At 31 December 2024 736,893,589 368,545,586 50,000
£50,000
At 31 December 2025 736,893,589 368,545,586 50,000 £50,000
As at 31December 2025 and 2024, all issued shares with a par value of US$0.50 each are fully paid. The rights and obligations
attached to these shares are governed by law and the Company’s Articles of Association. Ordinary shareholders are entitled to
receive notice and to attend and speak at any general meeting of the Company. There are no restrictions on the transfer of the
Ordinary shares.
The Sterling Deferred Ordinary Shares only entitle the shareholder on winding up or on a return of capital to payment of the
amount paid up after repayment to Ordinary shareholders. The Sterling Deferred Ordinary Shares do not entitle the holder to
payment of any dividend, or to receive notice or to attend and speak at any general meeting of the Company. The Company may
also at its option redeem the Sterling Deferred Ordinary Shares ata price of £1.00 or, as custodian, purchase or cancel the Sterling
Deferred Ordinary Shares or require the holder to transfer the Sterling Deferred Ordinary Shares. Except at the option of the
Company the Sterling Deferred Ordinary Shares are not transferable.
Reserves
Share premium
This reserve records the consideration premium for shares issued at a value that exceeds their nominal value.
Merger reserve
The merger reserve represents the difference between the value of the net assets acquired as part of the Pre-IPO reorganisation
andthe nominal value of the shares issued pursuant to the Merger Agreement. Movements in this reserve during 2025 and 2024
represent the impairment losses and reversals of the carrying value of Fresnillo’s investments in subsidiaries transferred from
retained earnings.
Hedging reserve
This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an
effective hedge, net of tax. When the hedged transaction occurs, the gain or the loss is transferred out of equity to the income
statement or the value of other assets.
Fair value reserve of financial assets at FVOCI
The Company has elected to recognise changes in the fair value of certain investments in equity securities in OCI, as explained in
Note 2.(f). These changes are accumulated within the FVOCI reserve within equity. The Company transfers amounts from this
reserve to retained earnings when the relevant equity securities are derecognised.
Retained earnings
This reserve records the accumulated results of the Company, less any distributions and dividends paid.
275
Fresnillo plc Annual Report and Accounts 2025
9. Dividends declared and paid
The dividends declared and paid during the years ended 31December 2025 and 2024 are as follows:
US cents per
Ordinary Share
Amount US$
thousands
Year ended 31 December 2025
Final dividend for 2024 and paid during the year¹ 26.1 192,329
Special dividend for 2024 declared and paid during the year
2
41.8 307,992
Interim dividend for 2025 declared and paid during the year³ 20.8 153,274
88.7 653,595
Year ended 31 December 2024
Final dividend for 2023 and paid during the year
4
4.2 30,950
Interim dividend for 2024 declared and paid during the year
5
6.4 47,161
10.6 78,111
1. This dividend was approved by the shareholders on 20 May 2025 and paid on 30 May 2025.
2. This dividend was approved by the shareholders on 20 May 2025 and paid on 30 May 2025.
3. This dividend was approved by the Board of Directors on 28 July 2025 and paid on 17 September 2025.
4. This dividend was approved by the shareholders on 21 May 2024 and paid on 29 May 2024.
5. This dividend was approved by the Board of Directors on 29 July 2024 and paid 17 September 2024.
A reconciliation between dividend declared, dividends affected to retained earnings and dividend presented in the cash flow
statements is as follows:
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Dividends declared 653,625 78,111
Foreign exchange effect — —
Dividends recognised in retained earnings 653,625 78,111
Foreign exchange and hedging effect 688 45
Dividends paid 654,313 78,156
The Directors have proposed a final dividend of US$108.12 cents per share, which is subject to approval at the annual general
meeting and is not recognised as a liability as at 31December 2025. Dividends paid from the profits generated from 1 January
2014 to residents in Mexico and to non-resident shareholders may be subject to an additional tax of up to 10%, which will be
withheld by the Company.
10. Interest-bearing loans
Senior Notes
On 2 October 2020, the Company completed its offering of US$850 million aggregate principal amount of 4.250% Senior Notes
due 2050 in Euronext Dublin. Movements in the year in the debt recognised in the balance sheet are as follows:
As at 31 December
2025 2024
US$ thousands US$ thousands
Opening balance 839,507 839,002
Accrued interest¹ 37,986 38,093
Interest paid (37,986) (37,986)
Amortisation of discount and transaction costs 419 398
Closing balance 839,926 839,507
1. Interest is payable semi-annually on 2 April and 2 October for 4.250% senior notes.
276
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
The Company has the following restrictions derived from the issuance of all outstanding Senior Notes:
Change of control:
Should the rating of the Senior Notes be downgraded as a result of a change of control (defined as the sale or transfer of 35% or
more of the common shares; the transfer of all or substantially all the assets of the Group; starting a dissolution or liquidation
process; or the loss of the majority in the board of directors) the Company is obligated to repurchase the notes at an equivalent
price of 101% of their nominal value plus the interest earned at the repurchase date, if requested to do so by any creditor.
Pledge on assets:
The Company shall not pledge or allow a pledge on any property that may have a material impact on business performance (key
assets). Nevertheless, the Company may pledge the aforementioned properties provided that the repayment of the Notes keeps
the same level of priority as the pledge on those assets.
11. Contingencies
The Company is subject to various laws and regulations which, if not observed, could give rise to penalties. As of
31 December 2025, the Company has the following contingencies:
• Tax periods remain open to review by the Mexican tax authorities (SAT, by its Spanish acronym) in respect of income taxes for
five years following the date of filing of corporate income tax returns, during which time the authorities have the right to raise
additional tax assessments including penalties and interest. Under certain circumstances, the reviews may cover longer
periods. As such, there is a risk that transactions, and in particular related party transactions, that have not been challenged in
the past by the authorities, may be challenged by them in the future. It is not practical to determine the amount of any
potential claims or the likelihood of any unfavourable outcome arising from these or any future inspections that may be
initiated. However, management believes that its interpretation of the relevant legislation is appropriate and that the
Company has complied with all regulations and paid or accrued all taxes and withholdings that are applicable.
• On 8 May 2008, the Company and Peñoles entered into the Separation Agreement (the Separation Agreement). This
agreement relates to theseparation of the Group and the Peñoles Group and governs certain aspects of the relationship
between the Fresnillo Group and the Peñoles Group following the initial public offering in May 2008 (Admission). The
Separation Agreement provides for cross-indemnities between the Company and Peñoles so that, in the case of Peñoles, it is
held harmless against losses, claims and liabilities (including tax liabilities) properly attributable to the precious metals
business of the Group and, in the case of the Company, it is held harmless by Peñoles against losses, claims and liabilities
which are not properly attributable to the precious metals business. Save for any liability arising in connection with tax, the
aggregate liability of either party under the indemnities shall not exceed US$250 million in aggregate.
12. Related party balances and transactions
Related parties are those entities owned or controlled by the ultimate controlling party and include the Company’s subsidiaries
disclosed in Note 5. Related party balances will be settled in cash. All the balances as at 31December 2025 and 2024 and the
transactions carried-out with related parties for the years then ended correspond to subsidiaries.
12.(a). Related party accounts receivable and payable
Accounts receivable US$ thousands Accounts payable US$ thousands
2025 2024 2025 2024
Loans¹ 1,111,385 1,026,470 — —
Other (note 6) — 189 529 1,151
Balance as 31 December 1,111,385 1,026,659 529 1,151
Less – Current portion 1,111,385 1,026,659 529 1,151
Non-current portion — — — —
1. Accounts receivable derived from loans with subsidiaries are net of provision for expected credit loss of US$2.1 million (2024: US$1.0 million).
Effective interest rates on loans granted to related parties in US dollar is 6.26% (2024: 6.49% to 7.25%) and in Mexican pesos range
from 9.37% to 12.04% (2024: 12.42% to 13.50%).
During the year the Company granted short-term loans to its subsidiaries for an amount of US$913.4 million
(2024: US$2,005 million).
277
Fresnillo plc Annual Report and Accounts 2025
12. Related party balances and transactions continued
12.(b). Principal transactions with related parties (apart from dividends, additional investments and returns of capital) are as
follows:
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Income:
Interest on loans 110,292 134,338
Total income 110,292 134,338
During 2025 and 2024 the Company did not receive short-term loans from its subsidiaries.
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Expenses:
Administrative services 8,673 7,217
Total expenses 8,673 7,217
12.(c). Compensation of key management personnel of the Company
Key management personnel comprise Non-Executive Directors. In 2025, their compensation was US$0.9 million
(2024: US$0.8million). This compensation paid is disclosed in the Directors’ Remuneration Report.
13. Auditor’s remuneration
The auditor’s remuneration for the Company was US$2.1 million (2024: US$2.1 million) in respect of the audit of its Financial
Statements.
Fees paid to Ernst & Young LLP and its associates for non-audit services to the Company itself are not disclosed in the stand-
alone Financial Statements because Group Financial Statements are prepared which include these fees on a consolidated basis.
14. Notes to the statement of cash flows
Notes
Year ended 31 December
2025 2024
US$ thousands US$ thousands
Reconciliation of profit for the year to net cash generated from operating activities
Profit for the year 2,678,300 800,937
Adjustments to reconcile profit/(loss) for the year to net cash inflows from operating
activities:
Impairment (reversal)/loss of investment in subsidiaries 5 (2,039,035) (855,668)
Dividend income (491,647) (33,600)
Income tax loss 17,680 14,842
Net finance gain (96,106) (111,048)
Foreign exchange (gain)/loss (97,169) 115,355
Other expenses 845 273
Working capital adjustments
(Decrease) in trade and other receivables (1,291) (271)
(Decrease) in trade and other payables (2,210) (2,167)
Cash (used)/generated from operations (30,633) (71,347)
Income tax paid (625) (103)
Net cash (used)/generated from operating activities (31,258) (71,450)
278
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
15. Financial instruments
15.(a). Fair value category
As at 31 December 2025
US$ thousands
Financial assets:
Amortised
cost
Fair value
through OCI
Fair value
through profit
or loss
Loans to related parties 1,111,385 — —
Equity instruments at FVOCI — 34,537 —
Derivative financial instruments — — 103
Financial liabilities:
At amortised
Cost
Fair value
through profit
or loss
Interest-bearing loans 839,926 —
Derivative financial instruments — 741
Trade and other payables 529 —
As at 31 December 2024
US$ thousands
Financial assets:
Amortised
cost
Fair value
through OCI
Fair value
through profit
or loss
Loans to related parties 1,026,470 — —
Equity instruments at FVOCI — 139,968 —
Financial liabilities:
At amortised
Cost
Fair value
through profit
or loss
Interest-bearing loans 839,507 —
Derivative financial instruments — 189
Trade and other payables 1,151 —
15.(b). Fair values
The value of financial assets and liabilities other than those measured at fair value are as follows:
As at 31 December
Carrying amount Fair value
2025 2024 2025 2024
US$ thousands US$ thousands US$ thousands US$ thousands
Financial assets:
Loans to related parties¹ 1,111,385 1,026,470 1,111,385 1,026,470
Financial liabilities:
Interest-bearing loans² 839,926 839,507 678,215 605,396
Trade and other payables 1,270 1,151 1,270 1,151
1. Loans to related party are categorised in Level 3 of the fair value hierarchy. The carrying amount is a reasonable approximation of fair value due the short-term period of
the receivable.
2. Interest-bearing loans are categorised in Level 1 of the fair value hierarchy.
279
Fresnillo plc Annual Report and Accounts 2025
The financial assets and liabilities measured at fair value are categorised into the fair value hierarchy as at 31 December asfollows:
As at 31 December 2025
US$ thousands
Fair value measure using
Quoted prices in
active markets
Level 1
Significant
observable
Level 2
Significant
unobservable
Level 3 Total
US$ thousands US$ thousands US$ thousands US$ thousands
Financial assets:
Derivative financial instruments:
Option and forward foreign exchange contracts — 103 — 103
Other financial assets:
Equity investments 34,537 — — 34,537
34,537 103 — 34,640
Financial liabilities:
Derivative financial instruments:
Option and forward foreign exchange contracts — 741 — 741
— 741 — 741
As of 31 December 2024
US$ thousands
Fair value measure using
Quoted prices in
active markets
Level 1
Significant
observable
Level 2
Significant
unobservable
Level 3 Total
US$ thousands US$ thousands US$ thousands US$ thousands
Financial assets:
Other financial assets:
Equity investments 139,968 — — 139,968
139,968 — — 139,968
Financial liabilities:
Derivative financial instruments:
Option and forward foreign exchange contracts — 189 — 189
— 189 — 189
There have been no transfers between Level 1 and Level 2 of the fair value hierarchy, and no transfers into and out of Level 3 fair
valuemeasurements.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.
280
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
The following valuation techniques were used to estimate the fair values:
Option and forward foreign exchange contracts
The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. The foreign currency forward (Level 2) contracts are measured based on observable spot
exchange rates, the yield curves of the respective currencies as well as the currency basis spreads between the respective
currencies. The foreign currency option contracts are valued using the Black-Scholes model, the significant inputs to which
include observable spot exchange rates, interest rates and the volatility of the currency.
Option commodity contracts
The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. The option commodity (Level 2) contracts are measured based on observable spot commodity
prices, the yield curves of the respective commodity as well as the commodity basis spreads between the respective
commodities. The option contracts are valued using the Black-Scholes model, the significant inputs to which include observable
spot commodities price, interest rates and the volatility of the commodity.
Equity investments:
The fair value of equity investments is derived from quoted market prices in active markets (Level 1). These investments were
irrevocably designated at fair value through OCI as the Group considers these investments to be strategic in nature. As of
31December 2025, approximately 58.6% of the investments correspond to 2,800,000 shares (2024: 2,800,000 shares) of Endeavor
Silver Corp. for an amount of US$26.3 million (2024: US$10.3 million). These equity investments are listed on the Toronto Stock
Exchange. The price per share as 31December 2025 was US$12.91 (2024: US$5.27).
During May and June 2025, the Company disposed its equity investment of 9,314,877 shares in MAG Silver, Corp. The shares sold
had a fair value of US$176.6 million and the Company realised a gain of US$128.6 million which had already been included in OCI.
This gain has been transferred to retained earnings, net of tax of US$38.6 million.
Interest-bearing loans
Fair value of the Company’s interest-bearing loan, is derived from quoted market prices in active markets (Level 1).
Loans with related parties
Fair value of the Company’s loan to related party is determined using a discounted cash flow method based on market interest
rates at each reporting date.
281
Fresnillo plc Annual Report and Accounts 2025
16. Financial Risk Management
Overview
The Company’s principal financial assets and liabilities, other than derivatives, are comprised of equity investment at FVOCI, cash,
loans to related parties, interest-bearing loans andtrade payables.
The Company enters into certain derivative transactions with the purpose of managing foreign exchange risk arising on the
activity and transactions of its subsidiaries.
The Company has exposure to the following risks from its use of financial instruments:
• Market risk, including foreign currency, interest rate and equity price risks
• Credit risk
• Liquidity risk
This note presents information about the Company’s exposure to each of the above risks and the Company’s objectives, policies
and processes forassessing and managing risk. Further quantitative disclosures are included throughout the Financial
Statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Company risk management
framework.
The Company’s risk management policies have been established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and
management standards and procedures, aims to develop a disciplined and constructive control environment in which all
employees understand their roles and obligations.
The Fresnillo Audit Committee has responsibility for overseeing how Management monitors compliance with the Company risk
management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The Audit Committee isassisted in its oversight role by Internal Audit, which undertakes both regular and
ad hoc reviews of risk management controls and procedures, theresults of which are reported to the AuditCommittee.
16.(a). Market Risk
Market risk is the risk that changes in market factors, such as foreign exchange rates, or interest rates will affect the Company
income or the value ofits financial instruments.
The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return on risk.
Foreign currency risk
The Company is exposed to foreign currency risk on transactions and balances that are denominated in currencies other than
the US dollar. Transactions in foreign currencies include the purchase of services, payment or receipt of dividends and other
items. Asa result, the Company has financial liabilities denominated in currencies other than functional currency and holds cash
and cash equivalents in Mexican peso.
In order to manage the Group’s exposure to foreign currency risk on expenditure denominated in currencies other than the US
dollar, the Company has entered into certain forward and option derivative contracts.
The following table demonstrates the sensitivity of financial assets and financial liabilities to a reasonably possible change in the
US dollar exchange rate compared to the Mexican peso, reflecting the impact on the Company’s profit before tax with all other
variables held constant. It is assumed that the same percentage change in exchange rates is applied to all applicable periods.
There is no impact on the Company’s equity other than the equivalent change in retained earnings.
Year ended 31 December
Strengthening/
(weakening) of
US dollar
Effect on profit
before tax:
increase/
(decrease)
US$ thousands
2025 5 % 540
(5) % (489)
2024 10 % 40
(5) % (69)
The Company’s exposure to reasonably possible changes in other currencies is not material.
282
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
16. Financial Risk Management continued
Commodity risk
The Company’s subsidiaries have exposure to changes in metals prices (specifically gold, lead and zinc) which have a significant
effect on the Group’s results. These prices are subject to global economic conditions and industry-related cycles.
The Company uses derivative instruments to hedge against precious metals commodity price exposure in its subsidiaries. As the
Company passes through the effect of derivatives to its subsidiaries, the Company is not sensitive to changes in commodity prices.
Interest rate risk
The Company is exposed to interest rate risk from the possibility that changes in interest rates will affect future cash flows or the
fair values of its financial instruments. The Company’s earnings are sensitive to changes in interest rates on any floating element
of the loans with related parties and interest earned on cash balances. Interest-bearing loans are at a fixed rate, therefore the
possibility of a change in interest rate only impacts its fair value but not its carrying amount. Therefore, interest-bearing loans and
loans from related parties (for which exposure is not material) are excluded from the table below.
The following table demonstrates the sensitivity of all financial assets and financial liabilities to a reasonably possible change in
interest rate applied toa full year from the balance sheet date. There is no impact on the Company’s equity other than the
equivalent change in retained earnings.
Year ended 31 December
Basis point
increase/
(decrease)
in interest rate
Effect on profit
before tax:
increase/
(decrease)
US$ thousands
2025
1
— —
(50) (8,162)
2024 — —
(50) (7,364)
1. Based on actual market conditions management considers an increase in interest rates is likely remote.
Equity price risk
The Company has exposure to changes in the price of equity instruments that it holds as equity investments held at FVOCI.
The following table demonstrates the sensitivity of FVOCI assets to a reasonably possible change in market price of these equity
instruments, reflecting the effect on the Company’s profit before tax and equity:
Year ended 31 December
Increase/
(decrease) in
equity price
Effect on profit
before tax:
increase/
(decrease)
Effect on
equity:
increase/
(decrease)
US$ thousands
2025 100 % — 34,537
(20) % — (6,907)
2024 80 % — 111,958
(20) % — (27,989)
16.(b). Credit risk
Exposure to credit risk arises as a result of transactions in the Company’s ordinary course of business and is applicable to cash
and cash equivalents, intercompany loans and derivative financial instruments.
The Company’s policies are aimed at minimising losses as a result of counterparties’ failure to honour their obligations. Individual
exposures are monitored with customers subject to credit limits to ensure that the Company’s exposure to bad debts is not
significant. The Company’s exposure tocredit risk is influenced mainly by the individual characteristics of each counter party. The
Company’s financial assets are with counterparties that the Company considers to have an appropriate credit rating. As disclosed
in Note 12, the counterparties to a significant proportion of these financial assets are related parties. At each balance sheet date,
the Company’s financial assets were neither credit-impaired nor past due other than ‘Related party accounts receivables as are
disclosed in Note 12. The Company’s policies are aimed at minimising losses from the foreign currency and commodity hedging
contracts. The Company’s foreign currency and commodity derivative contracts are entered into with large financial institutions
with strong credit ratings.
The Company’s surplus funds are managed by Servicios Administrativos Fresnillo, S.A. de C.V., which manages cash and cash
equivalents investing inseveral financial institutions. In order to minimise exposure to credit risk, the Company only deposits
cash and cash equivalents with financial institutions with a credit rating of M-1 (Moody’s) and mxA-1+ (Standard and Poor’s) and
above, and only for periods of less than three months.
283
Fresnillo plc Annual Report and Accounts 2025
The maximum credit exposure at the reporting date of each category of financial asset above is the carrying value as detailed in
the relevant notes. See Note 15.(a) for the maximum credit exposure for other financial assets, Note 7 for cash and cash
equivalents and Note 12 for related partybalances.
16.(c). Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company
monitors its risk of a shortage of funds using projected cash flows and by monitoring the maturity of both its financial assets and
liabilities.
The table below summarises the maturity profile of the Company financial liabilities based on contractual undiscounted
payments.
US$ thousands
Within 1 year 2–3 years 4-5 years > 5 years Total
As at 31 December 2025
Interest-bearing loans 37,986 75,973 75,973 1,609,727 1,799,659
Derivative financial instruments 741 — — — 741
Trade and other payables 100 — — — 100
US$ thousands
Within 1 year 2–3 years 4-5 years > 5 years Total
As at 31 December 2024
Interest-bearing loans 37,986 75,973 75,973 1,647,713 1,837,645
Derivative financial instruments 189 — — — 189
Trade and other payables 1,151 — — — 1,151
The disclosed financial derivative instruments in the above table are the gross undiscounted cash flows. However, those amounts
may be settled gross or net. The following table shows the corresponding estimated inflows based on the contractual terms:
US$ thousands
Within 1 year 2–3 years 4-5 years > 5 years Total
As at 31 December 2025
Inflows 437,947 — — — 437,947
Outflows (439,562) — — — (439,562)
Net (1,615) — — — (1,615)
US$ thousands
Within 1 year 2–3 years 4-5 years > 5 years Total
As at 31 December 2024
Inflows 13,191 — — — 13,191
Outflows (12,403) — — — (12,403)
Net 788 — — — 788
The above liquidity tables include expected inflows and outflows from currency option contracts which the Company expects to
be exercised during 2026 as at 31December 2025 and during 2025 as at 31December 2024, either by the Company or
counterparty.
Management considers that the Company has adequate current assets and forecast cash from operations to manage liquidity
risks arising from current liabilities and non-current liabilities.
Capital management
The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy
capital ratios that support its business and maximise shareholder value. Management considers capital to consist of equity and
interest-bearing loans (Note 10), as disclosed in the balance sheet and equity investments at FVOCI (Note 15).
In order to ensure an appropriate return for shareholders' capital invested in the Company, Management thoroughly evaluates
all material projects and potential acquisitions and approves them at its Executive Committee before submission to the Board
for ultimate approval, where applicable. The Company’s dividend policy aims to pay out between 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. The
Company aim is to maintain enough flexibility to be able to react to movements in precious metals prices and seize attractive
business opportunities.
284
Financial Statements
Fresnillo plc Annual Report and Accounts 2025
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
Resource category Cut-off grade²
Quantity Grade Contained metal
Tonnes(kt) Au(g/t) Ag(g/t) Pb(%) Zn(%) NSR ($/t) Au(koz) Ag(koz) Pb(kt) Zn(kt)
Minera Fresnillo – Fresnillo/Proaño Mine –
Underground
Measured
100.76 $/t NSR
10,012 0.89 434 1.01 1.86 400.73 287 139,640 101 187
Indicated 18,817 0.69 250 1.31 3.06 279.20 420 151,269 247 576
Measured and indicated 28,830 0.76 314 1.21 2.65 321.40 707 290,909 348 763
Inferred 27,105 0.58 243 0.73 1.46 236.51 502 211,730 198 397
Minera Saucito – Saucito Mine – Underground
Measured
108.13 $/t NSR
6,482 1.42 254 1.37 2.34 328.87 297 52,900 88 152
Indicated 19,811 0.96 233 1.23 2.30 286.08 612 148,480 244 455
Measured and indicated 26,294 1.08 238 1.26 2.31 296.63 909 201,380 333 607
Inferred 24,204 0.71 174 0.97 2.15 220.89 551 135,543 235 522
Minera Ciénega – Ciénega Complex –
Underground
Measured
Multiple
3
3,803 2.61 179 0.88 1.34 317.14 319 21,855 34 51
Indicated 3,897 1.79 165 0.68 1.08 251.58 225 20,708 27 42
Measured and indicated 7,699 2.20 172 0.78 1.21 283.96 544 42,564 60 93
Inferred 5,805 2.04 169 0.58 1.00 266.13 381 31,484 34 58
Minera San Julián – San Julián Mine
Underground: Veins
Measured
110.36 $/t NSR
612 1.45 241 0 0 303.01 29 4,732 — —
Indicated 5,255 1.27 148 0 0 212.36 215 24,976 — —
Measured and indicated 5,867 1.29 157 0 0 238.19 244 29,708 — —
Inferred 7,068 1.10 147 0 0 199.65 251 33,324 — —
Totals – Underground
Measured and indicated
Multiple
68,689 1.09 256 1.08 2.13 300.61 2,403 564,561 741 1,463
Inferred 64,182 0.82 200 0.73 1.52 229.24 1,685 412,081 466 977
1. Mineral resources are reported inclusive of ore reserves. Mineral resources are not ore reserves and do not have demonstrated economic viability. All figures rounded to
reflect the relative accuracy of the estimates. Gold, silver, lead and zinc assays were capped where appropriate. Given historical production it is the company’s opinion
that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.
2. To address Reasonable Prospects of Eventual Economic extraction, mineable shapes were created using a Mineable Stope Optimizer (at an NSR cut-off grade) to report
the Mineral Resources. The MSO shapes have been defined using variable NSR (Net Smelter Return) cut-off values, with additional review to exclude discontinuous, distal
mining shapes not likely to support CAPEX and development. Cut-off grades are based on metal price assumptions*, variable metallurgical recoveries (as a function of
grade and relative metal distribution), estimated mining costs, processing costs, general & administrative (G&A) costs, and NSR factors that include smelting and
transportation costs. The final tonnage and grade figures presented account for internal dilution within these stopes, with dilution within the mineable stope shapes
assigned at zero grade.
3. The cut-off grade for Ciénega’s mineral resources varies between 113.5 and 139.9 $/t NSR.
4. Metal price assumptions considered for the calculation of metal equivalent grades are as follows: Gold (US$/oz 2,300.00), Silver (US$/oz 30.00), Lead (US$/lb 0.91) and Zinc
(US$/lb 1.25).
285
CONSOLIDATED AUDITED MINERAL RESOURCE STATEMENT FOR UNDERGROUND
OPERATIONAL PROPERTIES, SRK CONSULTING (U.S.), INC.
1, 2, 4
AS AT 30APRIL 2025
Resource category Cut-off grade
Quantity Grade
Contained
metal
Tonnes(kt) Au(g/t) Au(koz)
Minera Penmont: Herradura open pit
4
Measured
Multiple
4
257,191 0.80 6,626
Indicated 118,556 0.78 2,955
Measured and indicated 375,746 0.79 9,581
Inferred 3,177 0.32 32
Minera Penmont: Noche Buena open pit
5
Measured
0.14 g/t Au
69,695 0.40 898
Indicated 6,110 0.44 86
Measured and indicated 75,805 0.40 984
Inferred 283 0.35 3
Minera Penmont: Centauro Profundo underground
Measured
1.7 g/t Au
309 3.64 36
Indicated 9,272 3.76 1,119
Measured and indicated 9,581 3.75 1,156
Inferred 14,123 3.66 1,664
Total – Open pit
Measured and indicated
Multiple
4,5
451,551 0.73 10,565
Inferred 3,460 0.32 35
Totals – Underground
Measured and indicated
1.7 g/t Au
9,581 3.75 1,156
Inferred 14,123 3.66 1,664
1. Totals may not compute exactly due to rounding.
2. Mineral Resources are reported inclusive of Ore Reserves.
3. Mineral Resources are reported in accordance with the JORC (2012) reporting code.
4. Herradura open pit Mineral Resources are reported at various cut-offs dependent on material types and grade.
a. Oxide material equal to or above 0.20 g/t Au and below 0.53 g/t Au reports to the heap leach;
b. Transitional and sulfide material equal to or above 0.27 g/t and below 0.30 g/t Au reports to the heap leach;
c. Oxide material equal to or above 0.53 g/t Au reports to the mill;
d. Transitional and sulfide material equal to or above 0.30 g/t Au reports to the mill.
5. Noche-Buena open pit Mineral Resources are reported at a cut-off grade of 0.14 g/t Au reporting to the heap leach.
6. Reasonable prospects for eventual economic extraction (RPEEE) criteria have been applied to open pit Mineral Resources by reporting blocks above the relevant cut-off
grade within a constraining pit shell using similar inter-ramp angles used for Ore Reserve pits. RPEEE was applied to underground Mineral Resources using a Mineable
Stope Optimizer, assuming a cut-and-fill mining method and a cut-off grade of 1.7 g/t Au. Underground Mineral Resources are reported at a 0 g/t cut-off grade within
contiguous mineable shapes.
7. Cut-off grades assume a gold price of US$2,300/oz. Metallurgical recoveries are determined using grade-recovery regression curves for heap leach processing by material
type. Heap leach recoveries range from 28-70% for open pits. Material processed through the mill (including all underground) assumes an average recovery of 90%.
8. Mineral Resources were estimated by Fresnillo. Simeon Robinson, P.Geo. (EGBC #43058, PGO #3904, MAIG #5609) of AMC reviewed and audited the Resource estimates
for Herradura and Centauro Profundo. Michael O’Brien. P.Geo. (EGBC #41338, FAusIMM #206669) of Red Pennant reviewed and audited the Resource estimates for
Noche Buena.
286
Additional Information
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED AUDITED MINERAL RESOURCE STATEMENT FOR SONORA PROPIERTIES, AMC
MINING CONSULTANTS (CANADA) LTD.
1-3,6-8
AS AT 30APRIL 2025
Deposit1
Cut-off grade*
Quantity Grade Contained metal
Fresnillo subsidiary
Tonnes
(kt) Gold (g/t) Silver (g/t) Lead (%) Zinc (%) Gold (koz) Silver (koz) Lead (kt) Zinc (kt)
Measured mineral resource
Orisyvo – disseminated Au ** 0.34 g/t Au 42,330 1.34 2 — — 1,830 2,104 — —
Candameña – disseminated Au
** — — — — — — — — —
Leones – breccia ** — — — — — — — — —
Lucerito – breccia/mantos ** — — — — — — — — —
Rodeo – disseminated Au — — — — — — — — —
Manzanillas – veins US$80.50/t 107 4.45 86 — — 15 295 — —
San Juan – veins — — — — — — — — —
Opulencia – veins — — — — — — — — —
Guanajuato Centro – veins US$63.67/t 2,927 0.55 42 — — 57 4,786 — —
Guanajuato Sur – veins — — — — — — — — —
Cebadillas – veins — — — — — — — — —
La Yesca – veins — — — — — — — — —
San Nicolas – veins — — — — — — — — —
Pilarica – mantos — — — — — — — — —
Total Measured 45,365 1.30 4 — — 1,903 7,186 — —
Indicated mineral resource
Orisyvo – disseminated Au ** 0.36 g/t Au 195,993 1.01 1 — — 6,334 8,542 — —
Candameña – disseminated Au
** US$14.22/t 84,712 0.60 15 0.03 — 1,622 39,524 21 46
Leones – breccia ** — — — —
Lucerito – breccia/mantos ** US$22.00/t 273,937 0.32 18 0.18 — 2,798 154,187 494 838
Rodeo – disseminated Au 0.15 g/t AuEq 114,857 0.41 5 — — 1,518 16,761 — —
Manzanillas – veins US$80.50/t 1,033 2.88 56 — — 96 1,864 — —
San Juan – veins US$80.50/t 3,229 1.61 144 — — 168 14,917 — —
Opulencia – veins US$85.50/t 3,150 2.43 111 — — 246 11,240 — —
Guanajuato Centro – veins US$73.81/t 11,571 1.58 61 — — 586 22,715 — —
Guanajuato Sur – veins US$85.50/t 714 4.18 631 — — 96 14,490 — —
Cebadillas – veins — — — — — — — — —
La Yesca – veins — — — — — — — — —
San Nicolas – veins — — — — — — — — —
Pilarica – mantos US$18.95/t 10,666 98 — — — 33,703 33 52
Total Indicated 699,862 0.60 14 — — 13,464 317,943 548 936
Inferred mineral resource
Orisyvo – disseminated Au ** 0.35 g/t Au 68,539 0.64 1 — — 1,410 2,103 — —
Candameña – disseminated Au
**
US$8.85/t 14,113 0.32 13 0.01 0.03 145 6,075 1 4
Leones – breccia ** US$25.20/t 9,171 — 91 1.29 1.12 — 26,746 119 102
Lucerito – breccia/mantos ** US$22.00/t 349,430 0.25 15 0.15 0.29 2,847 173,664 509 1,007
Rodeo – disseminated Au 0.15 g/t AuEq 69,062 0.34 3 — — 763 7,717 — —
Manzanillas – veins US$80.50/t 333 1.72 39 — — 18 423 — —
San Juan – veins US$80.50/t 8,599 1.48 137 — — 410 37,789 — —
Opulencia – veins US$85.50/t 3,500 1.70 81 — — 191 9,125 — —
Guanajuato Centro – veins US$78.02/t 16,454 1.50 58 — — 791 30,823 — —
Guanajuato Sur – veins US$85.50/t 18,261 2.43 503 — — 1,426 295,016 — —
Cebadillas – veins US$85.50/t 2,015 1.76 55 — — 114 3,541 — —
La Yesca – veins US$85.50/t 1,810 0.59 112 — — 34 6,525 — —
San Nicolas – veins 1.18 g/t Au-Eq 3,868 1.10 145 — — 136 17,988 — —
Pilarica – mantos US$34.83/t 7,252 0.38 82 1.21 1.28 89 19,202 88 93
Total Inferred 572,407 0.46 35 0.13 0.21 8,374 636,737 717 1,206
1. Mineral resources are not ore reserves and do not have demonstrated economic viability. All figures rounded to reflect the relative accuracy of the estimates. Composites
were capped where appropriate. Mineral resources are reported at variable metal, metal equivalent or NSR cut-off grades, assuming reasonable metal recoveries. Orisyvo,
Lucerito, Candameña, and Rodeo mineral resources are reported inside a conceptual pit shell based on appropriate mining and processing costs and metal recoveries
for oxide and sulfide material. Equivalent metal grades are based on US$2,300 per ounce of gold, US$30.00 per ounce of silver, US$1.25 per pound of zinc, US$0.91 per
pound of lead and US$3.00 per pound of copper. Orisyvo assumed historical metal prices of US$1,400 per ounce of gold and US$17.50 per ounce of silver. Cut-off grade
calculations assume variable metallurgical recoveries.
** Mineral Resources Statement prepared independently by SRK.
287
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED AUDITED MINERAL RESOURCE STATEMENT OF EXPLORATION
PROJECTS AND PROSPECTS¹
AS AT 31DECEMBER 2025
Deposit Cut-off grade¹
Quantity Grade Contained metal
Tonnes(kt) Au(g/t) Ag(g/t) Pb(%) Zn(%) NSR ($/t) Au(koz) Ag(koz) Pb(kt) Zn(kt)
Minera Fresnillo – Fresnillo/Proaño Mine –
Underground²
Proven
112.68 $/t
NSR
4,517 0.57 243 0.62 1.21 205.87 83 35,233 28 55
Probable 16,087 0.52 187 1.05 2.45 191.97 270 96,693 168 394
Proven and Probable 20,605 0.53 199 0.95 2.18 195.02 353 131,926 196 449
Minera Saucito – Saucito Mine – Underground²
Proven
110.28 $/t
NSR
3,899 1.19 190 1.28 2.21 239.15 149 23,858 50 86
Probable 13,546 0.83 220 1.1 1.97 236.35 359 95,681 149 267
Proven and Probable 17,444 0.91 213 1.14 2.02 236.98 509 119,540 198 353
Minera Ciénega – Ciénega Complex –
Underground²
Proven
Multiple²
1,864 2.29 133 0.45 0.67 219.49 137 7,975 8 13
Probable 1,720 2.35 135 0.41 0.55 224.98 130 7,448 7 10
Proven and Probable 3,584 2.32 134 0.43 0.62 222.12 267 15,423 16 22
Minera San Julián – San Julián Mine
Underground: Veins²
Proven
118.65 $/t
NSR
476 1.24 229 0 0 248.36 19 3,510 — —
Probable 3,679 1.07 153 0 0 181.38 127 18,127 — —
Proven and Probable 4,155 1.09 162 0 0 189.06 146 21,637 — —
Totals – Underground
Proven
Multiple
10,756 1.13 204 0.8 1.43 222.18 389 70,575 86 154
Probable 35,032 0.79 194 0.92 1.91 209.64 886 217,950 324 670
Proven and Probable 45,789 0.87 196 0.9 1.8 212.58 1,275
288,525
410 824
NSR ($/t)
1. All figures rounded to reflect the relative accuracy of the estimates. Ore reserves are reported at reported at an NSR cut-off grade based on the following assumptions:
• Metal price assumptions $2,100/oz Au, $26.50/oz Ag, $0.94/lb Pb, $1.20/lb Zn
• Pb concentrate recoveries 48% Au, 70% Ag, 66% Pb with 95% pay factor and include TC/RC
• Zn concentrate recoveries 3% Au, 9% Ag, 56% Zn with 75% Au, 70% Ag, 85% Zn pay factors and include TC/RC
• Mining costs, processing costs, general and administrative costs vary for each site and range between $110.28/t-ore and $118.65/t-ore
• Dilution and inferred material within the design shapes is reported at zero grade
• A small amount of marginal material is included in the reserves
Reserves include planned dilution to a minimum mining width and to minable outlines. Additionally, based on mining method, floor dilution is included, and appropriate
mining recovery factors are applied.
2. The NSR cut-off grade for the Ciénega reserves vary between $115.74/t NSR and $115.96/t NSR.
• The reserves are valid as of April 30, 2025. All topography is valid as of April 30, 2025
• The ore reserves were estimated by Fresnillo. Anton Chan, B.Eng, M.Sc., P.Eng, MMSAQP (#01546QP) of SRK, a Competent Person, reviewed and audited the reserve
estimates.
• kt: thousand tonnes; Au: gold; Ag: silver; Pb: Lead; Zn: zinc; g/t: grams per tonne; %: percent; oz: troy ounce; koz: thousand troy ounces.
288
Additional Information
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED AUDITED ORE RESERVE STATEMENT FOR UNDERGROUND OPERATIONAL
PROPERTIES, SRK CONSULTING (U.S.), INC.
AS AT 30APRIL 2025
Cut-off grade
Quantity Grade
Contained
metal
Reserve category Tonnes(kt) Au(g/t) Au(koz)
Minera Penmont: Herradura open pit
Proven
Multiple¹
181,916 0.82 4,781
Probable 47,436 0.78 1,182
Proven and Probable 229,353 0.81 5,963
• The Herradura Ore Reserves that are attributed to the heap leach are reported at cut-off grades of 0.21 g/t Au for oxide ore and 0.27 g/t Au for sulfide and transition ore.
Oxide material above 0.65 g/t Au and transitional and sulfide material above 0.31 g/t Au are attributed to the mill.
• Ore Reserves and all topography are valid as of 30 April 2025.
• Ore Reserves are based on a US$2,100/oz Au price.
• Exchange rate of 20 MXN to 1 US$.
• Full mining recovery assumed. Ore Reserves have no additional dilution added to that inherent in the selective mining unit (SMU) of 15 × 15 × 8 m
3
.
• Assumed metallurgical recoveries are based on operational experience and average 68% and 30% for Herradura oxide and sulfide ore, respectively, to the heap leach, and
90% for Herradura ore to the mill.
• Ore Reserves are converted from mineral resources through the process of pit optimisation, pit design, and production scheduling, and are supported by a cash flow
model.
• All figures rounded to reflect the relative accuracy of the estimates; numbers may not compute exactly due to rounding.
• Ore Reserves were estimated by Fresnillo. David Warren, BSc, MSc, P.Eng. (EGBC #15053) of AMC, a Competent Person, reviewed and audited the Ore Reserve estimates.
289
Fresnillo plc Annual Report and Accounts 2025
CONSOLIDATED AUDITED ORE RESERVE STATEMENT FOR SONORA PROPERTIES, AMC
MINING CONSULTANTS (CANADA) LTD.
AS AT 30APRIL 2025
Quantity Grade Contained metal
Resource category
Cut-off
grade Tonnes(kt) Au(g/t) Ag(g/t) Pb(%) Zn(%) Au(koz) Ag(koz) Pb(kt) Zn(kt)
Measured
140.76
g/t
AgEq
2,639 1.56 518 2.02 3.72 132 43,960 53 98
Indicated 18,138 1.62 193 2.50 4.74 942 112,330 454 860
Measured and indicated 20,777 1.61 234 2.44 4.61 1,074 156,290 508 958
Inferred 11,282 0.59 159 1.35 4.31 213 57,824 152 486
Notes:
• Totals may not compute exactly due to rounding.
• Mineral Resources declared on a 100% basis.
• Mineral Resources are inclusive of Mineral Reserves.
• Mineral Resources are reported in accordance with the JORC (2012) reporting code.
• To address RPEEE mineable shapes were created using a Mineable Stope Optimizer based on the following assumptions:
– Avoca long hole open stope mining, with a Minimum Mining Unit (MMU) dimension with a minimum mining width of 2m, 20 m long, and 20 m high.
– 140.76 g/t AgEq cut-off grade.
• Discontinuous, distal minable shapes not likely to support development and operating costs were excluded.
• Mineral Resources are reported at a 0 g/t AgEq cut-off grade within the mineable stope shape (i.e. incorporating internal dilution).
• The AgEq grade calculation and cut-off grades assume the following:
– Metal prices of Au (US$2,300.00/oz), Ag(US$30.00/oz), Pb (US$0.91/lb), and Zn (US$1.25/lb).
– Metal recoveries of 74.9% Au, 94.67% Ag, 89.52% Pb, and 80.23% Zn.
– NSR factors of US$44.87/g Au, US$0.77/g Ag, US$16.18 %Pb, and US$16.33 %Zn.
• The Mineral Resources were estimated by Fresnillo. Justin Glanvill (SACNASP), Principal Geologist of AMC, reviewed and audited the Mineral Resources.
290
Additional Information
Fresnillo plc Annual Report and Accounts 2025
AUDITED MINERAL RESOURCE FOR THE JUANICIPIO PROPERTY (100% BASIS)
AS AT 30APRIL 2025
Quantity Grade Contained metal
Reserve category
Cut-off
grade Tonnes(kt) Au(g/t) Ag(g/t) Pb(%) Zn(%) Au(koz) Ag(koz) Pb(kt) Zn(kt)
Proven
155 g/t
AgEq
2,366 1.30 410 1.84 3.35 99 31,184 44 79
Probable 18,633 1.41 169 2.18 4.12 846 101,052 406 768
Proven and Probable 20,999 1.40 196 2.14 4.03 945 132,236 450 847
Notes:
• Totals may not compute exactly due to rounding.
• All figures rounded to reflect the relative accuracy of the estimates. Ore Reserves are reported at variable cut-off value based on metal price assumptions, metallurgical
recovery assumptions, mining costs, processing costs, G&A costs, sustaining capital costs, and variable trucking costs.
• JORC Code was used for reporting of Ore Reserves.
• NSR values are calculated as:
– NSR = 40.81*Au+0.67*Ag+16.69*Pb+15.53*Zn. Units: Au (g/t), Ag (g/t), Pb (%), Zn (%).
– NSR factors are based on metal prices of $2,100/oz Au, $26.50/oz Ag, $0.94/lb Pb, and $1.20/lb Zn, and estimated recoveries of 74.90% Au, 94.67% Ag, 89.52% Pb, and
80.23% Zn.
– Payable metal assumptions for Au are 95% for lead concentrate, 65% for zinc concentrate, and 45% for pyrite concentrate; for Ag: 95% for lead concentrate, 70% for
zinc concentrate, and 43% for pyrite concentrate. Lead 95% payable and zinc 85% payable.
– The all-inclusive operating costs, excluding variable trucking costs, for longhole stopes and cut-and-fill stopes are US$104/tonne and US$137/tonne respectively (155 g/
t AgEq based on weighted average for mining method).
– Estimated stope hangingwall and footwall dilution (ELOS) of 0.81m and 0.36m, respectively, was included in the stope optimisation process for both longhole
stopping and cut and fill mining methods.
– An additional operational floor mucking dilution of 0.5m for longhole and cut-and-fill stopes is applied to the Ore Reserve calculation. An endwall dilution of 0.5m for
longhole stoping is also applied.
– Mining recovery factors are 92% for longhole stopes and cut-and-fill stopes. Mining recovery factor for ore drive development is 99%. Mining recovery factor for sill
pillars is 0%.
– Exchange rate of 20 MXN to 1 US$.
– The Ore Reserves were estimated by Fresnillo. Paul Salmenmaki, P.Eng. (EGBC #40227), a Competent Person, reviewed and audited the Ore Reserves.
291
Fresnillo plc Annual Report and Accounts 2025
AUDITED ORE RESERVES FOR THE JUANICIPIO PROPERTY (100% BASIS),
AMC MINING COUNSULTANTS (CANADA) LTD.
AS AT 30APRIL 2025
ORE PROCESSED
(tonnes)
SILVER
(grammes/tonne)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Fresnillo 2,461,785 2,336,943 2,216,467 2,462,409 2,618,509 2,333,973 2,098,904 184.5 193.9 186.2 188.7 170.2 152.1 168.5
Ciénega 1,329,134 1,318,263 1,282,367 1,114,232 1,064,543 1,058,778 900,078 158.9 158.6 153.4 152.4 147.5 165.5 125.1
Herradura 22,926,542 19,797,063 20,311,876 22,195,187 20,223,914 22,742,296 20,035,347 2.9 2.6 2.1 1.6 1.6 1.2 1.3
Saucito 2,752,638 2,767,432 2,434,449 2,072,812 2,163,982 2,363,960 2,278,284 227.6 205.8 182.9 201.3 195.2 214.0 212.8
Saucito Pyrites 167,513 172,233 159,635 135,044 109,433 91,313 71,570 299.4 220.1 150.5 164.0 199.6 264.8 310.7
Soledad-Dipolos — — — — — — — — — — — — — —
Noche Buena 12,166,900 6,682,617 8,996,842 7,428,189 2,510,639 — — 0.2 0.7 0.2 0.2 0.2 — —
San Julián – Veins 1,265,030 1,254,970 1,202,826 1,175,764 1,142,309 1,236,682 1,261,161 115.4 108.6 119.2 134.6 165.6 231.6 225.0
San Julián – DOB 2,226,956 2,229,612 2,070,563 2,092,971 2,073,847 1,554,108 — 139.5 150.3 220.6 167.9 136.2 80.7 —
Juanicipio (Total) — 71,859 251,906 646,148 1,268,757 1,328,178 1,372,673 — 327.8 470.2 519.8 472.4 468.2 423.2
ZINC CONCENTRATE
(tonnes)
SILVER
(grammes/tonne)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Fresnillo 61,639 67,851 68,192 84,466 89,932 99,740 88,836 622 627 572 549 504 351 413
Ciénega 16,897 17,470 12,339 10,264 7,219 6,646 1,368 1,177 1,336 2,056 1,982 3,548 4,208 7,121
Herradura — — — — — — — — — — — — — —
Saucito 62,171 86,451 76,696 56,531 65,273 66,712 79,492 692 501 397 501 532 533 484
Soledad-Dipolos — — — — — — — — — — — — — —
Noche Buena — — — — — — — — — — — — — —
San Julián – DOB 45,979 39,621 38,226 34,567 29,350 24,037 — 2,188 2,959 3,765 3,443 3,227 2,441 —
Juanicipio (Total) — 576 4,117 16,438 40,790 59,332 71,154 — 1,835 1,528 1,159 1,057 1,082 602
LEAD CONCENTRATE
(tonnes)
SILVER
(grammes/tonne)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Fresnillo 58,679 60,157 52,035 60,094 62,548 74,905 61,120 6,241 6,042 6,415 6,272 5,627 3,785 4,627
Ciénega 13,032 14,450 9,725 8,375 6,575 6,186 4,179 10,797 9,292 12,465 12,519 13,125 15,717 12,812
Herradura — — — — — — — — — — — — — —
Saucito 56,844 71,982 64,825 47,130 52,490 60,075 71,772 8,632 6,110 5,499 7,304 6,510 6,903 5,441
Soledad-Dipolos — — — — — — — — — — — — — —
Noche Buena — — — — — — — — — — — — — —
San Julián – DOB 16,200 14,363 16,644 14,657 15,564 8,441 — 10,478 11,924 14,801 12,281 9,483 5,554 —
Juanicipio (Total) — 894 4,457 14,440 31,157 43,057 58,881 — 20,505 20,838 17,934 15,127 11,301 8,178
DORÉ AND OTHER PRODUCTS
(tonnes)
SILVER
(grammes/tonne)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Ciénega precipitates 56.5 58.9 54.7 46.8 49.0 50.6 46.2 348,315 366,889 417,407 454,399 467,989 497,015 498,347
Ciénega Gravimetric Concentrator — — — — — — — — — — — — — —
Saucito Pyrites precipitates 83.3 60.0 39.0 37.3 26.7 29.2 25.0 437,279 476,801 451,681 441,459 551,136 570,187 641,480
Herradura doré 79.7 66.6 53.7 46.0 38.9 32.6 29.2 606,458 583,752 529,334 532,056 487,379 487,184 512,618
Herradura slag 1,284.3 1,323.7 608.9 — 34.8 — — 1,041 1,634 1,550 — 480 — —
Soledad-Dipolos doré — — — — — — — — — — — —
Soledad-Dipolos slag — — — — — — — — — — — —
Fresnillo Concentrates from Tailings Dam — — — — — — — — — — — — — —
Noche Buena doré 7.8 0.4 — — 0.7 — — 98,118 269,786 — — 254,728 — —
Noche Buena slag 248.7 11.6 — — 158.7 — — — 1,069 — — 963 — —
San Julián – Veins precipitates 155.6 142.8 151.1 172.2 215.7 346.8 325.8 862,812 877,909 869,458 837,831 801,541 757,151 791,630
Fresnillo precipitates — — 0.2 — 21.2 76.7 79.7 — — 454,780 — 566,560 569,270 612,236
Juanicipio precipitates — — 0.4 15.5 8.4 — 25.5 — — 625,852 623,760 642,547 — 461,855
METAL PRODUCED¹
,
² SILVER
(ounces)
GOLD
(ounces)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
Fresnillo 13,007,227 13,054,481 11,986,025 13,609,019 12,771,803 10,241,905 10,272,874 52,259 38,388 33,743 34,432 36,909 51,473 40,753
Ciénega 5,796,190 5,762,384 5,446,619 4,709,216 4,334,581 4,833,902 2,774,656 65,583 64,101 48,819 37,466 35,934 39,422 37,410
Herradura 1,563,060 1,305,572 925,825 775,948 610,764 524,461 515,801 482,722 425,288 421,535 349,715 355,485 360,598 356,097
Saucito 17,159,627 15,532,298 12,438,843 11,977,292 12,101,782 14,474,389 13,790,997 79,539 84,878 88,440 73,497 72,763 82,718 69,388
Saucito Pyrites 1,171,298 920,212 567,030 529,355 473,912 535,599 515,403 4,045 3,452 2,294 1,959 1,228 1,514 1,459
Soledad-Dipolos — — — — — — — — — — — — — —
Noche Buena 57,754 39,340 31,574 19,830 10,316 9,206 3,125 127,166 87,998 96,835 79,668 42,537 20,941 18,116
San Julián – Veins 4,317,225 4,030,008 4,224,406 4,638,089 5,558,565 8,442,804 8,292,807 62,207 61,790 51,840 43,397 41,009 49,633 50,573
San Julián – DOB 8,691,636 9,276,125 12,547,642 9,613,719 7,790,507 3,393,468 — 2,393 3,134 4,006 3,330 3,478 1,779 —
Juanicipio
(Attributable) — 349,220 1,789,979 5,179,950 9,414,788 10,400,181 9,642,527 — 590 3,683 12,461 20,570 21,856 23,854
Fresnillo DLP — — 2,617 — 386,609 1,404,055 1,568,613 — — 8 — 733 1,639 2,289
Juanicipio Pyrites
(Attributable) — — — — — — 212,300 — — — — — — 348
Fresnillo Total 51,764,017 50,269,640 49,960,560 51,052,418 53,453,627 54,259,970 47,589,103 875,914 769,619 751,203 635,925 610,646 631,573 600,287
292
Additional Information
Fresnillo plc Annual Report and Accounts 2025
OPERATING STATISTICS
GOLD
(grammes/tonne)
ZINC
(%) LEAD(%)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
0.89 0.73 0.68 0.61 0.62 0.92 0.82 1.80 2.07 2.20 2.38 2.32 2.93 2.85 1.0 1.1 1.0 1.1 1.0 1.4 1.2
1.66 1.63 1.27 1.14 1.14 1.27 1.39 1.13 1.18 0.90 0.86 0.63 0.55 0.31 0.7 0.7 0.5 0.5 0.4 0.4 0.2
0.80 0.77 0.76 0.69 0.76 0.71 0.69 – – – – – – — — — — — — — —
1.19 1.24 1.46 1.40 1.34 1.40 1.24 1.57 2.21 2.08 1.78 1.96 1.85 2.26 0.9 1.2 1.2 1.0 1.1 1.1 1.4
2.32 1.92 1.50 1.44 1.43 1.87 1.95 – – – – – – — — — — — —
— — — — — — — – – – – – – — — — — — — — —
0.51 0.52 0.59 0.53 0.47 — — – – – – – – — — — — — — — —
1.61 1.61 1.42 1.21 1.17 1.31 1.31 – – – – – – — — — — — — — —
0.08 0.09 0.10 0.08 0.08 0.06 — 1.36 1.19 1.27 1.09 0.94 1.04 — 0.4 0.4 0.5 0.4 0.4 0.3 —
— 0.73 1.13 1.39 1.27 1.25 1.27 – 0.60 1.20 1.72 2.06 2.78 3.30 — 0.3 0.6 0.9 1.2 1.5 1.8
GOLD
(grammes/tonne)
ZINC
(%)
LEAD
(%)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
2.6 2.2 1.9 1.8 1.7 1.8 1.5 51.2 50.3 50.6 51.3 50.5 50.8 50.3 — — — — — — —
7.1 7.6 10.2 9.4 16.1 21.5 48.4 53.2 53.0 51.6 52.5 49.2 47.7 38.6 — — — — — — —
— — — — — — — — — — — — — — — — — — — — —
3.1 2.4 1.6 1.6 1.9 1.6 1.3 47.2 49.5 48.9 50.3 50.5 51.1 50.7 — — — — — — —
— — — — — — — — — — — — — — — — — — — — —
— — — — — — — — — — — — — — — — — — — — —
0.6 1.0 1.2 1.2 1.3 1.1 — 49.4 51.7 52.3 50.6 49.1 49.7 — — — — — — — —
— 3.7 3.6 2.4 1.8 1.6 0.9 — 45.9 44.9 49.1 49.8 50.4 51.1 — — — — — — —
GOLD
(grammes/tonne)
ZINC
(%)
LEAD
(%)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
25.0 17.3 17.6 15.4 15.9 19.0 18.5 — — — — — — — 36.6 35.4 36.1 36.2 34.2 36.2 35.1
78.2 72.0 80.0 69.0 73.0 81.8 119.8 — — — — — — — 44.8 42.3 40.6 42.0 43.8 47.2 22.7
— — — — — — — — — — — — — — — — — — — — —
40.2 33.8 40.5 46.6 40.8 41.0 28.6 — — — — — — — 36.5 39.7 38.0 37.8 37.2 37.8 37.8
— — — — — — — — — — — — — — — — — — — — —
— — — — — — — — — — — — — — — — — — — — —
2.8 4.0 4.8 4.2 4.5 3.3 — — — — — — — — 47.2 49.5 51.3 48.5 44.0 43.9 —
— 34.2 42.4 44.0 33.6 23.7 20.7 — — — — — — — — 21.5 26.9 34.1 41.3 41.3 38.0
GOLD
(grammes/tonne)
2019 2020 2021 2022 2023 2024 2025
15,918 13,940 11,249 10,489 10,647 11,400 12,911
— — — — — — —
1,510 1,788 1,828 1,634 1,428 1,612 1,815
190,981 192,426 248,538 241,449 280,498 288,334 248,364
334 494 662 — 3,833 — —
— — — — — —
— — — — — —
— — — — — — —
406,85
8
475,146 — — 181,396 — —
206 1,025 — — 7,584 — —
12,432 13,461 10,670 7,839 5,913 4,451 4,828
— — 1,473 — 1,074 664 893
— — 972 1,131 712 — 757
ZINC
(tonne)
LEAD
(tonne)
2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025
31,530 34,116 34,530 43,342 45,386 50,702 44,721 21,472 21,319 18,796 21,756 21,373 27,088 21,432
8,986 9,263 6,373 5,387 3,550 3,168 527 5,839 6,112 3,947 3,518 2,881 2,922 948
— — — — — — 0 — — — — — — 0
29,365 42,774 37,469 28,415 32,991 34,097 40,307 20,764 28,592 24,615 17,816 19,535 22,729 27,158
— — — — — — — — — — — —
— — — — — — 0 — — — — — — 0
— — — — — — 0 — — — — — — 0
— — — — — — — — — — — —
22,697 20,492 19,990 17,487 14,410 11,942 0 7,648 7,112 8,543 7,105 6,843 3,704 0
0 148 1,036 4,521 11,368 16,737 20,359 — 108 671 2,755 7,202 9,957 12,538
— — — — — — — — — — — — — 0
— — — — — — — — — — — — — 0
92,578 106,793 99,397 99,153 107,705 116,646 105,915 55,722 63,242 56,573 52,950 57,833 66,400 62,076
293
Fresnillo plc Annual Report and Accounts 2025
1. Including Production from Fresnillo's Tailings
Dam
2. All figures include 100% of production from
the Penmont mines (Herradura, Soledad-
Dipolos and Noche Buena).
Financial calendar
Preliminary statement 3 March 2026
First quarter production report 22 April 2026
Annual General Meeting 19 May 2026
Second quarter production report 22 July 2026
Interim statement 4/8/2026*
Third quarter production report 21 October 2026
Dividend payment schedule
2025 Final Dividend Record Date 24 April 2026
2025 Final Dividend Payment Date 29 May 2026
2026 Interim Dividend Record Date 14 August 2026
2026 Interim Dividend Payment Date 18 September 2026
*To be confirmed
Registrar
Equiniti Ltd
Aspect House, Spencer Road, Lancing
West Sussex BN99 6DA
United Kingdom
Registered office
Corporate headquarters
Calzada Legaria No. 549
Torre 2, Piso 11
Delegación Miguel Hidalgo
11250 Mexico, D.F.
Mexico
Sponsor and corporate broker
JPMorgan Cazenove Limited
25 Bank Street
London E14 5JP
United Kingdom
Joint corporate broker
Merrill Lynch International
2 King Edward Street
London EC1A 1HQ
United Kingdom
Auditor
Ernst & Young LLP
1 More London Place
London SE1 2AF
United Kingdom
Travers Smith are Fresnillo plc UK Legal Advisers.
Share fraud warning
Share fraud includes scams where investors are called out-of-
the-blue and offered shares that turn out to be worthless or
non-existent, or an inflated price for shares they own. These
calls come from fraudsters operating in ‘boiler rooms’, mostly
based abroad. While high profits are promised, those who buy
or sell shares in this way usually lose their money. Most victims
are experienced investors, losing on average £20,000.
Protect yourself
If you are offered unsolicited investment advice, discounted
shares, inflated prices for shares you own, or free company or
research reports, take these steps before handing over any
money:
1. Get the name of the person and organisation.
2. Check the Financial Services Register at www.fca.org.uk/
register to ensure they are authorised.
3. Use the details on the Financial Services Register to contact
the firm.
4. Call the FCA Consumer Helpline on 0800 111 6768 if there are
no contact details on the Register or you are told they are
out of date.
5. Search the list of unauthorised firms and individuals to avoid
doing business with.
6. REMEMBER: if it sounds too good to be true,
it probably is.
If you use an unauthorised firm to buy or sell shares, you will
not have access to the Financial Ombudsman Service or
Financial Services Compensation Scheme (FSCS) if things go
wrong.
Report a scam
If you are approached about a share scam you should tell the
FCA using the form at www.fca.org.uk/scams (where you can
also review the latest scams) or call the Consumer Helpline on
0800 111 6768.
If you have already paid money to share fraudsters then
contact Action Fraud on 0300 123 2040.
For further information, please visit our website:
www.fresnilloplc.com or contact:
Fresnillo plc
Tel: +44(0)20 7399 2470
Gabriela Mayor, Head of Investor Relations
294
Additional Information
Fresnillo plc Annual Report and Accounts 2025
SHAREHOLDER INFORMATION
295
Fresnillo plc Annual Report and Accounts 2025
NOTESNOTES
296
Additional Information
Fresnillo plc Annual Report and Accounts 2025
NOTES
21 Upper Brook Street
Mayfair
London
W1K 7PY
www.fresnilloplc.com