About the Companies
Industrias Peñoles and Fresnillo, both part of the same group, are leading global producers of silver and gold. Fresnillo holds the title as the world’s primary silver producer.
Stock Market Performance
Shares of mining companies listed on the stock market, Industrias Peñoles and Fresnillo, experienced an upward trend following the release of their positive second-quarter financial reports.
The companies benefited from global geopolitical tensions that increased demand for safe-haven assets like gold and silver, positively impacting their operations.
Peñoles Performance
Peñoles’ stocks, traded on the Mexican Stock Exchange (BMV), rose by 2.12%, closing at 509.73 pesos. This marked its highest increase since June 30, when it rose by 5.24%.
In terms of market capitalization, Peñoles added 5,525 million pesos, reaching a total of 203,933 million pesos.
Peñoles’ net sales amounted to 2,079 million US dollars in the second quarter of the year, a 27.2% increase from 1,634 million US dollars in the same period last year.
According to the report submitted to the BMV, this outcome was driven by higher gold and silver prices (40.3% and 16.6%, respectively) and increased sales volumes in gold, copper matte, sulfate of soda, and magnesium oxide.
From April to June, the company’s profits reached 333.3 million US dollars, contrasting with losses of 23.2 million US dollars in the same quarter of 2024.
The operating cash flow (EBITDA) reached 680.2 million US dollars, a 61.6% annual increase from 421 million.
“This performance reflects the growing global uncertainty stemming from the tariffs implemented by the United States and their potential impact on international trade and economic growth,” stated Peñoles in its quarterly report to the BMV.
The company further explained that “geopolitical conflicts have driven demand for precious metals as safe-haven assets while exerting pressure on industrial metal prices due to global economic uncertainty.”
Positive Outlook for 2025
Experts anticipate a strong performance from Peñoles in the second half of 2025.
Analysts from Monex Casa de Bolsa confirmed a positive outlook for Peñoles, considering an attractive gold price and favorable volume advancements.
They adjusted their recommendation for Peñoles’ stocks to “hold” with a target price of 450 pesos per share by the end of 2025.
“The second-quarter 2025 figures were positive, surpassing our expectations due to a favorable price environment and cost improvements from currency fluctuations and operational efficiencies. We expect Peñoles to continue capitalizing on this scenario, where management still projects margin improvements,” wrote Guillermo Quechol, Intercam analyst, in a report.
Intercam raised its target price for Peñoles’ stocks from 440 to 583 pesos, maintaining its “buy” recommendation.
GBM analysts considered the report positive and in line with their expectations.
“Revenues increased due to elevated gold and silver prices, while operating cash flow improved 55.2% annually. Despite declines in silver and base metal production, strong free cash flow generation (579 million US dollars) and a 40% net debt reduction strengthened the balance sheet,” they wrote.
Fresnillo’s Stock Performance
Shares of Fresnillo, Peñoles’ subsidiary, also rose on the London Stock Exchange after publishing its Q2 report, which exceeded market expectations.
Fresnillo’s stocks increased by 6% to 1.52 British pounds, marking its highest rise since March 5, when it climbed by 6.22%.
Revenues increased by 30.1%, reaching 1,940 million US dollars, supported by a 45.8% increase in the average realized gold price to 3,167.6 US dollars per ounce and a 21.9% rise in silver prices to 33.7 US dollars per ounce.
According to the report, gold production increased by 15.9% to 313,840 ounces, driven by better grades and recoveries in leaching platforms at Herradura.
Silver extraction, however, decreased by 11.7% to 24.9 million ounces, including Silverstream contributions, due to the closure of San Julián DOB and lower grades at Ciénega and Juanicipio.
