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The mining giant Grupo Mexico has seen its Q3 profits increase by over 50% due to strong sales of molybdenum and silver.

The mining and transportation conglomerate Grupo Mexico announced a net profit increase of more than 50% in the third quarter, driven by increased sales of molybdenum and silver, even though copper production declined.

According to a Tuesday filing, the net profit of the group, a major copper producer, was $1.29 billion on revenues that jumped by 11% to $4.59 Billion. This is above the $4.41 Billion estimate made by analysts polled at LSEG.

The three-month earnings before taxes, depreciation and amortization rose by 15%, to $2.51billion.

Grupo Mexico is controlled by German Larrea. It ranks as one of the world's biggest copper producers in terms of volume.

The company maintained its forecast for annual copper of 1.08 million tons, despite a 2.6% drop in third-quarter production to 798.394 tons. This was due to lower outputs in Mexico and Peru, and a shift to molybdenum and zinc.

The mining division reported third-quarter revenues of $10.33billion, an increase of 9.6% compared to a year ago, due to higher volumes of molybdenum and silver, and higher metal prices.

Silver and zinc sales grew by 19.3% and 7.3% respectively, while copper sales dropped 4.3%.

Copper producer plans to invest in projects in the United States between three and five years.

Grupo Mexico stated that "there is an opportunity to spend up to $6.2 Billion in the reopening or expansion of projects aligned with the new industrial and mining policies of the Trump administration."

Citigroup has announced its October 2018 results.

rejected Grupo Mexico's bid

Banamex is the retail arm of Banamex in the country. The company has decided to move forward with an agreement that was previously reached.

Grupo Mexico shocked the market by making an unsolicited offer of $9.3 billion for Banamex, more than two years after the company had abandoned negotiations.

Analysts speculated that Grupo Mexican could engage in an exchange of blows with Banamex. The company has said that it will continue to work with Banamex.

not enter a bidding war

Citi decided to list Banamex in 2023 after tensions with then-President Andres Manual Lopez Obrador led to a breakdown of talks. (Reporting and editing by Brendan O'Boyle, Deepa Babington and Natalia Siniawski)

(source: Reuters)