Grupo Mexico Posts Large Profit Increase in Q1 Report

Grupo Mexico (BMV:GMEXICOB) has released it’s first quarter results in 2018, detailing consolidated revenues 18 percent higher than Q1 2017, totalling US$2.66 billion.

Revenues in the Mexican companies mining division grew 15 percent.

Due to a landslide at the Mission mine in Arizona the company corrected it’s copper guidance for 2018, cutting it by 40,000 tons to 1,020,000 tons. However due to a new concentrator at Toquepala in Peru projected to begin production in Q3 2018 the company still expects a 1 percent growth rate in copper production over 2017.

As highlighted in the press release:

Michiquillay acquisition- On February 20, 2018, the Company won the public bidding process for the Michiquillay project in Cajamarca, Peru. The Company’s tender included a purchase price of US$400 million and annual royalties of 3 percent over net revenues.

San Martin mine, Zacatecas- On February 28, in a calm and peaceful environment, the workers of the San Martin mine at our Industrial Minera México subsidiary, held an election to vote on the Union that will hold the collective bargaining agreement in San Martín.

SX/EW corrective program, Buenavista del Cobre, Sonora- We have obtained a lower copper grade in the pregnant leaching solution (PLS) of the SX/EW plants, given the lower solubility index of the new leaching pads, due to the characteristics of the ore that is being deposited in them. The company has developed a 12 months corrective program to overcome this temporary decrease in production.

Click here to view the full Grupo Mexico (BMV:GMEXICOB) press release.