The mining and transport conglomerate Grupo México reported a net gain in the second quarter that rose 10%, exceeding analysts’ forecasts, since it reduced costs in its mining division, even when the income and copper production decreased.
The net gain of the group, one of the main copper producers, was $ 1,230 million of income that fell 4% to 4,240 million dollars, according to a presentation dated Monday night, the latter above an estimate of 4.220 million dollars of the analysts surveyed by LSE.
Meanwhile, profits before interest, taxes, depreciation and amortization (EBITDA) for three months until the end of June reached 2.36 billion dollars. The analysts surveyed by LSE expected Ebitda to reach only 2,220 million dollars.
Grupo Mexico, controlled by billionaire Germán Larrea, is among the largest copper producers in the world by volume.
He maintained the forecasts of an expected annual production of 1.08 million metric tons of copper, since the production of red metal during the quarter reached 267,325 tons, 1.3% less than in the same period of the previous year, due to a lower production in its Buenavista mine in the northern state of Sonora.
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Mining Giant Grupo México reports 10% profits in the 2T
Sales also fell 2.9% compared to the previous year, to 252,498 tons.
However, the cash cost of the mining division fell by 10% compared to the previous year.
Earlier this month, the president of the United States, Donald Trump, announced a 50% tariff on copper shipments from August 1 in an attempt to promote national development.
However, the United States depends on imports for almost half of its refined copper needs, and local projects often take years to take off. Chile, Canada and Mexico are its main suppliers.
The Grupo México Transportation Division saw its sales fall due in large part to the exchange effects, the firm said, while its infrastructure arm was affected by the suspension of four platform projects by the PEMEX Petroleum Producer.
With Reuters information.
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