Grupo México, Mexico's main copper producer, reported a 38% increase in its profits in 2Q23 due to higher copper sales and a strong performance of its transportation unit.
According to the company, copper sales increased by almost 13% and production by 9.2% compared to 2Q22, due to higher ore grades found at the Toquepala mine in Peru. Mining.com reported that the company's profit improved despite copper prices having decreased by 11% compared to 2022. Despite the challenges, the company aims to produce 1.048 million mt of copper in 2023, an increase from the 1.007 million mt produced in 2022.
“We believe the company could maintain this positive trend throughout the year, with a resilient outlook for some metals and an intensive investment plan,” analysts at Monex wrote.
Grupo México increased its planned investments for 2023 from US$1.76 billion to US$1.83 billion to improve and expand its projects. However, experts point out that the company will have to evaluate the political crisis in Peru, as protests calling for the resignation of President Dina Boluarte have intensified. Last year, community members cut off the company's water supply to the Peruvian Cuajone complex, which also affected the company's operations at Los Chancas. The incidents have had repercussions such as a temporary drop in ore grade and production.
In 2022, Grupo México reported that its accumulated sales reached US$13.8 billion. Although this was a good result, sales were 6.1% lower than in 2021. The company's mining branch achieved sales of US$10.968 billion in 2022, down 9.3% from 2021. This drop was due to slow production and low prices of key metals, such as copper. However, these results were partially offset by sales of byproducts like molybdenum and zinc. According to Grupo México, the lower results were caused by “uncommon” issues like protests and illegal blockades.
Grupo México is the third largest publicly traded company in Mexico, the largest mining player in the country and the world’s third-biggest copper producer.