Unbiased Information Is Power

Q: What is Vizcarra Consultores' offer for the mining sector and how does it differ from that of other consulting firms?
A: We have been providing regional sector analyses for five years, but I have over 20 years of experience in different sectors, including financial, transportation infrastructure, energy, mining, insurance, and automotive, among others. Our main differentiator is that we have no political bias. We do not believe in everything that is said by politicians or media; we get facts from official national institutions, such as INEGI, Banco de México, Secretaría de Economía, and from international sources like the International Monetary Fund and the World Bank. Our fact-based forecasting provides a guide on how the economy will behave in the coming years, allowing our clients to strategize around anticipated events.

Q: What are the main challenges your clients face and how are you helping them?
A: Our clients’ main priority is to understand the economic landscape. They want to know if the economy is in good shape because the media makes the country look like it is doing badly. Our work is based on official information provided by autonomous organizations such as INEGI, the Mexican central bank (BANXICO), and international scale such as the IMF, World Bank, so clients know how the economy will affect their operations. If a company has unbiased information about the industry and the economic landscape, it can make better decisions and get ahead of its competitors. We make sure clients are aware of what is really going on, so that they have solid information and do not rely on polemic news.

Q: What is Mexico’s economic panorama and what factors allowed the firm to reach these conclusions?
A: At the beginning of 2023, rating firms expected Mexico’s GDP to grow by 1.0% for the year. We forecasted 2.4% growth in GDP based on information from official statistics. Forecasts now expect Mexico’s GDP to grow by 3.2% in 2023, so we were much closer than all our competitors. The same happened with our inflation forecasts. Other firms said the country would close with an inflation rate of 6%, while we forecasted 4.3%. Forecasts now estimate Mexico will close the year with a 4.4% inflation rate. We based this forecast on reports on investment, exports, and the super-peso, factors that let us understand the country was not doing badly from an economic perspective. The country is not doing spectacularly well either, but it is moving toward a better environment.

Q: Given the political uncertainty, what do you recommend to your clients so that they can be as safe as possible?
A: Information is power, so our customers need to be informed all the time. Our company provides monthly reports so our clients in all sectors know how the economy is performing. We make this information understandable for everyone, allowing our clients to feel calm despite the controversial news they may hear.

Q: What is the legacy of the current administration and what does the firm expect from the next government?
A: The current administration is focusing on energy independence, which is not bad. However, there are many challenges, like it is more profitable to import from Texas than to build our own production facilities, just to name one element. We expect these challenges to intensify over the next five years. In addition, the government focuses more on social aspects than on economic elements, which creates problems for investors. 

We believe that the next government will follow the same path, as the same political party will likely win the election. We do not expect a radical change, but stability. Mexico will continue to be attractive to investors. We work for clients from five countries in Latin America and Mexico is doing better compared to those other countries.

Q: What trends are emerging in the mining industry?
A: The main trends are environmental, social and governance policies. Customers are often concerned about dealing with communities and establishing sustainable operations. Another drift is communication, as companies want to communicate that they are responsible. This drift is especially important in the case of mining, because the sector has a poor image. Therefore, companies must be careful how they approach the government and communities. They should also decide carefully where they will invest, whether it is in social programs or clean energy, among other areas. It is best for companies to diversify and invest in different areas. This can make the company sustainable for longer and help make it more profitable.

Q: What are the company's objectives in Mexico and what strategies is it using to continue positioning itself as a key mining consultancy?
A: Our mission is to let the market know that we are among the best options to analyze markets, sectors, and companies. By eliminating political biases, we provide better economic analysis. Our goal is to continue growing and expanding our operations in Mexico to cover more clients and sectors. Our strategy is to show who we are, our experience, and the results we can provide. 

Our main advice to all sectors is to take the information seriously. We invite them to get a specialized second opinion based on economic reality, rather than on superficial factors, such as scandals. This will enable companies to make better decisions and investments.

Vizcarra Consultores performs economic analysis for clients in numerous sectors, including finance, energy, mining, insurance, and automotive. It works with leading global organizations and international companies.