Image credits: Shane McLendon
Weekly Roundups

Grupo México Reported US$2.3 Billion Net Profit in 2020

By Paloma Duran | Thu, 01/28/2021 - 18:17

Grupo México said its high net profit was mainly due to an increase in mining production and in metal prices during 2020. Furthermore, the company announced it expects similar production for 2021. Read this and more in the weekly mining roundup!


Grupo México Reported US$2.3 Billion Net Profit in 2020

The company reported a US$2.3 billion net profit in 2020, an increase of 4 percent compared to 2019. According to Reuters, this was due to an increase in mining production and metal prices, especially during the 4Q20, when the production of copper and silver increased by 2.4 percent and 22.9 percent, respectively, compared to 2019. During the same period, gold prices grew by 26 percent and zinc prices by 10 percent compared to 2019. Grupo México announced that it expects to have a similar production in 2021.

Fresnillo Lowers Its Gold Production for 2021

Fresnillo Plc announced that it expects a lower gold production for 2021, mainly due to COVID-19 restrictions and the landslide at the Noche Buena mine that affected its operations. As a result, the company’s shares fell around 12 percent on Wednesday on the London Stock Exchange (LSE). The company announced that its 2020 gold production was 769.6koz, which is lower than the 875.9koz produced in 2019. For 2021, the company expects a gold output between 675koz and 725koz and a silver production between 53.5 and 59.5Moz. Octavio Alvídrez, CEO at Fresnillo, said he was proud that despite the challenges, the company delivered a strong operational performance and it successfully progressed in the development of several projects such as the Pyrites Plant.

Mining Investment in Mexico at Its Lowest in 13 Years

During 2020, the Mexican mining industry attracted US$2.5 billion in investment, its lowest level in the past 13 years according to Fernando Alanís, President of CAMIMEX. In 2019, mining investment totaled US$4.6 billion, which was 4.9 percent less compared to 2018. In 2020, mining activities were suspended for two months due to the COVID-19 pandemic, which also increased uncertainty for investments. Alanís said that 2021 brings a better outlook. However, the government needs to improve sector conditions to boost investment.

Carlyle Commodities Prepares Drilling Program at Cecilia Project

Carlyle announced that its first drilling program at the Cecilia Project in Sonora will start in February 2021. The program will test the San Jose structure at Cerro Magallanes “where recent sampling returned values up to 48.3g/t gold over 0.75m at surface.” Moreover, Riverside Resources, Carlyle’s project operator, has planned six drill holes to test the Cerro Magallanes rhyolitic dome. Morgan Good, Carlyle's President and CEO, said that after several months of exploration activities, the company obtained excellent high-grade gold values from channel sampling. Good said these values have not only confirmed historical results but have given them the confidence to continue drilling its highest priority targets.

Endeavour Silver Provides 2021 Production and Cost Guidance

Endeavour released the 2021 production and cost guidance for its three mines in Mexico: the Guanacevi mine in Durango, the Bolanitos mine in Guanajuato and the El Compas mine in Zacatecas. The company also presented its 2021 capital and exploration budgets and the projects it plans to carry out at these mines. Endeavour announced that for 2021, the company expects silver production between 3.6Moz and 4.3Moz and a gold production between 31,000oz and 35,500oz. In addition, it plans to invest US$10.2 million in a 50,000m drill program on brownfields projects near the three mines, greenfields exploration projects and engineering at its mines and properties.


Responsible Mining Foundation Concerned About Abandoned Risk Tailings Facilities

Responsible Mining Foundation (RMF) released a statement on the second anniversary of the tailings dam burst in Brazil, in which it emphasized that there are around 223 billion tons of tailings in more than 30,000 Tailings Storage Facilities (TSF) around the world. RMF said that more than a third of the global portfolio of TSFs needs urgent intervention and that the costs of removing the high-threat TSFs are around US$670 billion. RMF said that despite efforts toward transparent tailings management, most mining companies are still unable to report how they manage these risks and the actions that are taking to address this problem.


The data used in this article was sourced from:  
Reuters,, MBN, El Economista, Junior Mining Network, Endeavour Silver
Photo by:   Shane McLendon
Paloma Duran Paloma Duran Journalist and Industry Analyst