Grupo Mexico Reports Strong 3Q Earnings Boosted by Copper Production and Strong Prices

Grupo Mexico

Grupo Mexico, a prominent conglomerate with interests in mining, rail, and infrastructure, has reported a significant increase in earnings for the third quarter of 2024, driven by higher copper production and robust sales prices.

The company produced 280,900 metric tonnes (t) of copper in Q3 2024, marking a 10.6% increase from the same period last year. Copper sales also saw an 8.2% rise, reaching 275,070t. This surge in production and sales comes as copper prices continue to climb. The average copper price for the quarter was $4.23 per pound, up 12.2% from the previous year, according to Comex data.

Strong Mining Division Performance

Grupo Mexico's mining division, represented by its subsidiary Americas Mining, experienced a strong performance with a 17.8% increase in sales, reaching $3.2 billion. Profits for the division surged by 55%, totaling $864 million. Despite a rise in the cost of sales (up 5.4% to $1.4 billion), the company’s profit margins remained robust.

The company’s overall profits reached $1 billion for the quarter, a 44% year-over-year increase, with revenues climbing 13.4% to $4.13 billion.

Key Mining Operations

The increase in copper output can be attributed to stronger production from Grupo Mexico’s mining operations in Peru and Mexico, particularly at the Toquepala, Buenavista, Cuajone, and Caridad mines. These mines played a crucial role in boosting the company's copper yield.

"Grupo Mexico was able to benefit from a favorable copper price environment which, combined with excellent production levels and stringent cost control, translated into excellent financial results, particularly from the mining division," the company stated.

Zinc and Molybdenum Performance

Grupo Mexico also saw significant improvements in zinc and molybdenum production during the quarter. Zinc production nearly doubled, reaching 31,080t, driven by the Buenavista Zinc concentrator. Zinc sales also rose by 50%, amounting to 37,355t. Zinc prices were up 14.5%, averaging $1.26 per pound in Q3.

Molybdenum production rose by 6%, reaching 7,270t, while sales saw a 5.6% increase to 7,326t.

Americas Mining and Global Expansion

The Americas Mining division, a key subsidiary of Grupo Mexico, oversees operations through Southern Copper in Mexico and Peru, as well as Asarco in the United States. These subsidiaries have been critical to the company’s solid performance in Q3 2024.

Grupo Mexico's diverse mining operations, strict cost controls, and favorable commodity prices have positioned the company for continued growth in the coming quarters.