Fresnillo

Website: Fresnillo
Index: FTSE 100
EPIC: FRES
Supersector: Basic Resources
Sector: Mining
Subsector: Gold Mining
Market Cap: £23.84B
Payout Frequency: Semi-Annual

Fresnillo Dividend Analysis and Summary

Key dividend details

Final ordinary dividend: 108.12 US cents per share (FY2025)
Total FY2025 ordinary dividends: 128.92 US cents per share (US$950m), comprising:
- Interim: 20.8 US cents (paid Sep 2025)
- Final: 108.12 US cents (to be paid May 2026)
Ex-dividend date: 23/04/2026 (derived from record date)
Record date: 24/04/2026
Payment date: 29/05/2026
Currency: Paid in GBP by default; shareholders may elect USD
Withholding tax: 10% Mexican dividend withholding applies to the 2025 final dividend
Policy context: Board reiterates policy to pay out 33–50% of profit after tax (adjusted for non-cash items). The FY2025 total payout is above the traditional policy range, enabled by strong cash generation

Support and coverage

Profitability: FY2025 profit attributable to equity holders US$1,384m; adjusted EPS (ex-Silverstream effects) US$2.058
Payout ratio: FY2025 DPS US$1.2892 implies c.63% of adjusted EPS and c.69% of attributable profit — deliberately above policy
Cash and balance sheet: Year-end cash and liquid funds US$2.76bn; net cash US$1.92bn. Net operating cash flow US$2.29bn comfortably covers the declared FY2025 distributions (US$950m)
Near-term cash uses (2026): Guided capex ~US$765m plus exploration ~US$260m; completed Probe Gold acquisition in Jan-2026 for ~US$555m — still leaving substantial liquidity post-dividend

Dividend sustainability and growth outlook

Near-term sustainability: Strong FY2025 earnings, FCF and net cash underpin the FY2025 final payment. Liquidity remains ample even after the May 2026 payout and the Probe acquisition
Earnings trajectory: 2026 guidance points to lower production (silver 42–46.5 moz; gold 500–550 koz) versus 2025, which, absent further price strength or cost gains, could reduce earnings headroom
Policy reversion likely: Management states policy remains 33–50% post-tax (adjusted). Given 2025’s above-policy payout was cash-driven, expect normalisation toward the policy range if volumes soften or prices ease
Structural margin support: 2025 delivered major cost/efficiency gains and high metals prices; unit cost discipline and project optimisation (e.g., Herradura, Saucito shaft) help support medium-term cash generation

Structural and policy factors that may affect future dividends

M&A: Acquisition of Probe Gold (completed Jan-2026; ~US$555m) expands the growth pipeline (Novador in Quebec) but competes for capital; development capex timing will influence future payout capacity
Silverstream termination: 2025 buyback of the Silverstream contract removes a volatile derivative/cash source (US$69.5m cash received in 2025 pre-termination); simplifies earnings but slightly lowers ancillary inflows
Asset sales/portfolio: Disposal of MAG Silver stake (US$176.6m proceeds) boosted FY2025 liquidity but is non-recurring
Policy unchanged: Board reiterates 33–50% payout framework and may consider special dividends in periods of excess cash, balanced against growth/M&A needs

Risks and flags to dividend stability

Commodity price risk: Dividends are highly sensitive to silver/gold prices; management notes elevated but volatile price environment
Operational outlook: 2026 production guidance is lower, which could compress cash flows if not offset by prices/costs
Regulatory/tax in Mexico: Increased special mining right to 8.5% and broader permitting/water/concession uncertainties; ongoing tax audit environment
Capital intensity: 2026 capex and higher exploration spend, plus Probe integration and potential project development, may prioritise reinvestment over above-policy payouts
Operational/safety/security: Two fatalities in 2025; security risks in certain regions; union relations and permitting could disrupt operations
Withholding and FX: 10% Mexican withholding on the final dividend; default GBP payment could introduce FX variability to sterling receipts versus USD-declared DPS

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
17/04/2025	30/05/2025	Special	41.80¢	USX
17/04/2025	30/05/2025	Final	26.10¢	USX
14/08/2025	17/09/2025	Interim	20.80¢	USX

Total (Annual Dividends Per Share): 65.31p (Using exchange rate on 30/04/2026 $ = £0.73627)

Dividend Yield = Annual Dividends Per Share (65.31p) ÷ Share Price (3255p) = 2.01%

Ex Dividend Date	Payment Date	Type	Amount	Currency
23/04/2026	29/05/2026	Final	108.12¢	USX
14/08/2025	17/09/2025	Interim	20.80¢	USX
17/04/2025	30/05/2025	Special	41.80¢	USX
17/04/2025	30/05/2025	Final	26.10¢	USX
08/08/2024	17/09/2024	Interim	6.40¢	USX
18/04/2024	29/05/2024	Final	4.20¢	USX
10/08/2023	14/09/2023	Interim	1.40¢	USX
27/04/2023	26/05/2023	Final	13.30¢	USX
11/08/2022	14/09/2022	Interim	3.40¢	USX
28/04/2022	27/05/2022	Final	24.00¢	USX
12/08/2021	15/09/2021	Interim	9.90¢	USX
22/04/2021	30/06/2021	Final	23.50¢	USX
22/04/2021	01/06/2021	Final	23.50¢	USX
06/08/2020	16/09/2020	Interim	2.30¢	USX
23/04/2020	02/06/2020	Final	11.90¢	USX
08/08/2019	06/09/2019	Interim	2.60¢	USX
25/04/2019	24/05/2019	Final	16.70¢	USX
09/08/2018	07/09/2018	Interim	10.70¢	USX
26/04/2018	04/06/2018	Final	29.80¢	USX
10/08/2017	08/09/2017	Interim	10.60¢	USX
27/04/2017	26/05/2017	Final	21.50¢	USX
11/08/2016	09/09/2016	Interim	8.60¢	USX
21/04/2016	09/05/2016	Final	3.35¢	USX
13/08/2015	10/09/2015	Interim	2.10¢	USX
30/04/2015	22/05/2015	Final	3.00¢	USX
13/08/2014	11/09/2014	Special	5.00¢	USX
30/04/2014	22/05/2014	Special	6.80¢	USX
30/10/2013	11/11/2013	Extraordinary	22.39¢	USX
14/08/2013	10/09/2013	Interim	4.90¢	USX
17/04/2013	08/05/2013	Final	42.40¢	USX
15/08/2012	11/09/2012	Interim	15.50¢	USX
25/04/2012	23/05/2012	Final	40.00¢	USX
14/12/2011	30/12/2011	2nd Interim	41.85¢	USX
17/08/2011	13/09/2011	Interim	21.00¢	USX

Year	Interim	Final	Special	Extraordinary	Currency	Total	Change
2024	6.400	4.200			USX	10.600	-27.890
2023	1.400	13.300			USX	14.700	-46.350
2022	3.400	24.000			USX	27.400	-51.840
2021	9.900	47.000			USX	56.900	300.700
2020	2.300	11.900			USX	14.200	-26.420
2019	2.600	16.700			USX	19.300	-52.340
2018	10.700	29.800			USX	40.500	26.160
2017	10.600	21.500			USX	32.100	168.610
2016	8.600	3.350			USX	11.950	134.310
2015	2.100	3.000			USX	5.100	-56.770
2014			11.800		USX	11.800	-83.060
2013	4.900	42.400		22.390	USX	69.690	25.560
2012	15.500	40.000			USX	55.500	-11.690
2011	21.000				USX	62.850

Number of Shares:

Payment	Paid	Amount
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