Profits for Miner Grupo Mexico jump 17% on higher metal prices
The mining and transport conglomerate Grupo Mexico announced a 17% increase in its first-quarter profit on Friday. This was primarily due to higher metal prices.
The miner's net profit jumped to $1.09bn, far exceeding the $816m estimate of analysts polled at LSEG. This was due to the surge in copper and silver, and its reduction of production costs.
Asarco, a U.S.-based unit, saw its output decline.
Silver prices soared 38%, while the price of red metal rose 18%.
The revenue of Grupo Mexico, a company that also operates vast freight railroads, an infrastructure division and sprawling freight railways, increased by 10% in the first quarter to $4.20 Billion.
A reduction in production costs of copper and its byproducts was also cited as a factor that contributed to the company's increased earnings.
Grupo Mexico is controlled by German Larrea and is the largest copper producer in the world. It has mines located in Peru, Spain, the United States and Mexico.
Copper prices have been falling since the first quarter, putting the company at risk.
Analysts say that import taxes could also be imposed on copper.
Grupo Mexico noted that trade policies and tariffs could impact its results. (Reporting and editing by Bill Berkrot; Kyalia Madry and Natalia Siniawski)
(source: Reuters)