Mining Stocks Deliver Positive Results
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Mining Stocks Deliver Positive Results

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Fernando Mares By Fernando Mares | Journalist and Industry Analyst - Thu, 03/02/2023 - 15:22

Mining companies listed in the Mexican Stock Exchange (BMV) have been performing well, registering earnings over MX$33.1 billion (US$1.8 billion). The revaluation of companies’ stock has benefited from a positive outlook after China reported solid economic data, which impacted metal prices. 

During this Wednesday's session, mining companies listed at BMV registered substantial earnings. The best-performing company was Industrias Peñoles, one of the world’s largest silver producers. During the session, its shares went up by 6.6% to MX$233.38 (US$12.9). This has been Peñoles’ best intraday performance in two months. 

Another company that did well during the session was Minera Autlan, Mexico's largest ferroalloys producer. The company’s stocks closed at a price of MX$16.23 (US$0.9), representing a 4.6% increase. Similarly, one of the world’s largest copper producers, Grupo México, gained over 4.2%, closing at MX$85.55 (US$4.9) per share. Base metals producer Minera Frisco also had an acceptable performance as its shares gained 1.1% value, closing at MX$2.73 (US$0.15).

Experts associate mining companies’ performance with the recently released economic data from China, which showed that the country’s manufacturing activity expanded at its fastest pace in a decade.

 According to the official Manufacturing Purchasing Managers’ Index (PMI), which measures the country’s performance in the manufacturing sector, China jumped from 50.1 in January to 52.6 in February. The manufacturing sector’s performance impacted the dollar price and increased the market expectations for higher metal demand. 

Industrial metals were the best-performing commodities within the mining sector as they are widely used in the construction and energy sectors. At the London Metal Exchange (LME), copper futures gained 1.9% on Wednesday and closed at US$9,132/t, other metals like aluminum gained 3.16%, zinc 4.5% and lead 1.4%. 

On Jan. 11, 2023, MBN reported that mining companies’ stock started 2023 with strong results. At that time, Industrias Peñoles and Grupo México were the companies with better performance among the 36 companies listed at BMV. Experts assure that the performance of mining companies is driven by increasing metal prices, which are mainly driven by Chinese demand. However, Jacobo Rodríguez, Director of Analysis, Black Wallstreet Capital, said that the outlook for 2023 remains neutral due to the volatility of market prices and the looming economic recession. 

Photo by:   Dylan Calluy

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