Fresnillo (FRES) — Dividend Yield: 2.52%

Fresnillo (LON: FRES) is the world's largest primary silver producer and a leading gold mining company, listed on the FTSE 100 with a market capitalisation of approximately £26.0 billion. The company operates seven mines and three advanced development projects across Mexico, producing silver, gold, lead, and zinc. Fresnillo's unique position as a primary silver producer makes it one of the most direct ways to gain precious metals exposure on the London Stock Exchange.

Fresnillo's dividend yield of approximately 2.52% varies with precious metals prices, as the company's distribution policy links payouts to profitability. During periods of strong silver and gold prices, Fresnillo has the capacity to deliver significantly higher dividends. The company's low-cost production profile and substantial mineral reserves provide a foundation for sustainable long-term cash flow generation.

For investors seeking precious metals exposure within the FTSE 100, Fresnillo offers a unique pure-play opportunity in silver and gold. Silver has significant industrial applications in solar panels, electronics, and medical devices, in addition to its traditional role as a store of value and monetary metal. The growing demand for silver in photovoltaic cells for solar energy installations creates a compelling structural demand story that complements the metal's investment appeal.

Fresnillo's exploration programme is one of the most active in the precious metals sector, continuously identifying new mineral deposits to replace mined reserves and extend mine life. The company's Juanicipio mine, a major development project, has ramped up production, adding significant silver and gold output to the portfolio. Operating exclusively in Mexico provides geographic concentration risk but also access to one of the world's most mineralised regions. With its leading market position in silver, exposure to gold, and leverage to precious metals prices, Fresnillo is a key holding for investors seeking inflation protection and commodity diversification in the FTSE 100.