Fresnillo reports 11% drop in 2026 silver output, warns of supply gap

Mexican miner Fresnillo, the world's largest primary silver producer, announced that silver output in the first half of 2026 fell 11.4% year‑on‑year to 22 million ounces. About one‑third of the decline is linked to the termination of the Silverstream financing agreement, while the remaining shortfall stems from lower ore grades across its mines. Despite record‑high silver prices, the company said production cannot be accelerated and has revised its capital‑expenditure plan downward, while keeping its 2026 production target of 42‑46.5 million ounces.

Industry analysts at Metals Focus and the Silver Institute project a global supply deficit of roughly 46.3 million ounces in 2026, marking the sixth consecutive year of a shortfall. They note that new mine projects take many years to come online and that existing operations are constrained, suggesting the supply gap will persist in the near term.