The mining giant Grupo Mexico doubles its net profit in the fourth quarter due to metals boom
On 'Tuesday', Grupo Mexico, the world’s largest copper producer, said that it had nearly doubled its net profit for the fourth quarter due to higher metals prices and stronger volumes. This more than offset weaker infrastructure results related to suspended oil platforms, as well as foreign exchange headwinds.
Conglomerate's net profit reached $1.43 billion in the last year,?which is above the $1.32 million estimate of analysts polled at LSEG.
The increase in production?boosted earnings, with gold and copper both increasing by 14%. Prices also soared, with gold and silver both up 74%, and copper up 22 %, according to Grupo Mexico.
The group's revenues grew 34%, to $5.15 billion, exceeding analysts' $4.87-billion estimate.
The?miner has projects in place in Spain, the U.S. and Peru, and is looking to invest billions in the next decade.
Grupo Mexico stated that its U.S. subsidiary, Asarco could double its mine production because of?new copper policy outlined by Donald Trump. It also said that it would be moving forward with an assessment to reopen its Hayden Smelter and Amarillo Refinery in the U.S.
The firm in Mexico said that it was in discussions with the current administration about resuming more than $10 billion worth of investments, after the previous government had halted permits.
The infrastructure division of Grupo Mexico?swung from a profit to a loss during the third quarter. This was due to the suspension of Pemex's four offshore oil platforms and the effects of foreign exchange. (Reporting and editing by Natalia Siniawski; Kylie Madry)
(source: Reuters)
