By Natalia Siniawski MEXICO CITY (Reuters) -Mining and transportation conglomerate Grupo Mexico reported third-quarter net profit rose more than 50%, boosted by higher sales volumes of molybdenum, silver and zinc even as copper production fell. Net profit for the group, a leading copper producer, came in at $1.29 billion from revenues that jumped 11% to […]
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Mining giant Grupo Mexico’s Q3 profit up over 50% on strong molybdenum, silver, zinc sales
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By Natalia Siniawski
MEXICO CITY (Reuters) -Mining and transportation conglomerate Grupo Mexico reported third-quarter net profit rose more than 50%, boosted by higher sales volumes of molybdenum, silver and zinc even as copper production fell.
Net profit for the group, a leading copper producer, came in at $1.29 billion from revenues that jumped 11% to $4.59 billion, according to a filing on Tuesday, the latter above a $4.41 billion estimate of analysts polled by LSEG.
Earnings before interest, taxes, depreciation, and amortization for the three months through end-September rose 15% to $2.51 billion.
Grupo Mexico, controlled by billionaire German Larrea, ranks among the world’s largest copper producers by volume.
It maintained its annual copper forecast of 1.08 million metric tons, as third-quarter copper production slipped 2.6% to 798,394 tons due to weaker output in Mexico and Peru and a shift toward molybdenum, zinc and silver.
The mining division posted third-quarter sales of $10.33 billion, up 9.6% from a year earlier on higher molybdenum, silver and zinc volumes and stronger metal prices.
Although copper sales fell 4.3% from a year earlier, sales of molybdenum – a metal used to strengthen steel and speed petroleum refining – grew 7.9%, along with sales of silver and zinc which grew 19.3% and 7.3%.
The copper producer is looking to decide on investments for projects in the United States within the next three to five years.
“There is an opportunity to invest up to $6.2 billion in the reopening and expansion of projects that align with the new mining and industrial policies of President Trump’s administration,” Grupo Mexico said.
In October, Citigroup rejected Grupo Mexico’s bid for its retail unit in the country, known as Banamex, opting instead to push forward with a previously agreed-upon deal.
Grupo Mexico surprised the market when it made the unsolicited $9.3 billion offer for Banamex more than two years after it had backed away from negotiations.
Analysts had speculated that Grupo Mexico could engage in a back-and-forth for Banamex. However, the company said it would not enter a bidding war.
In 2023, the company bowed out of the race for Banamex after talks struggled over tensions with the government of then-President Andres Manuel Lopez Obrador, leading Citi to opt to list the unit.
(Reporting by Natalia Siniawski; Editing by Brendan O’Boyle and Deepa Babington)