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Grupo Mexico's Q3'19 earnings flat

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Grupo Mexico's Q3'19 earnings flat

Grupo México SAB de CV's net profit for the third quarter stood at US$249.7 million, in line with year-ago figures as higher depreciation charges and costs offset revenue gains, the company said Oct. 23.

Revenue climbed 7.7% year over year to US$2.79 billion due to an increase in production that positively offset a decline in copper and zinc prices.

EBITDA grew 7.9% on a yearly basis to US$1.25 billion. Capital expenditures totaled US$292.4 million, falling from about US$411.8 million in the third quarter of 2018.

The group produced 286,335 tonnes of copper, up 12.6% year over year on the back of higher production at operations in Mexico, Peru and the U.S.

The company expects full-year 2019 copper production of 1.13 million tonnes and plans to build-up copper capacity to nearly 2 mtpa by 2025. Copper output in 2018 was just over 1 Mt.

Zinc output fell 1.2% to 17,259 tonnes, silver production was down 4% to 3.3 million ounces, and gold production dropped 3.8% to 11,824 ounces.

The company's Southern Copper Corp. division, which houses its Latin American mining assets, reported a 5.5% yearly rise in third-quarter net profit to US$389.6 million as copper production grew 12.7% year over year to 252,380 tonnes, mainly due to higher production at the Toquepala mine in Peru and the Buenavista mine in Mexico, partially offset by lower production at the Cuajone mine in Peru.

Southern Copper Chairman German Larrea said the company would increase its copper production capacity to 1.1 million tonnes of copper and 200,000 tonnes of zinc by 2023.

The unit aims to reach annual production of 1.5 million tonnes of copper by 2026, one year later than what the company announced in July.