Billionaire
German Larrea's Grupo Mexico delivered a striking third-quarter
performance with net profit soaring over 50% despite declining
copper production, as the mining and transport conglomerate
benefited from robust molybdenum, silver and zinc sales,
Reuters reported.
The
company generated $1.29bn in net profit for the quarter
ending September, whilst revenues jumped 11% to $4.59bn, surpassing
the $4.41bn consensus amongst LSEG-polled analysts.
Grupo
Mexico's earnings before interest, taxes, depreciation and
amortisation climbed 15% to $2.51bn during the three-month
period.
Despite
ranking amongst the globe's dominant copper producers by volume,
the conglomerate experienced a 2.6% contraction in copper
production to 798,394 tonnes during the quarter. The decline
stemmed from diminished output across Mexican and Peruvian
operations alongside a strategic pivot towards molybdenum, zinc and
silver extraction.
Nevertheless,
Grupo Mexico upheld its full-year copper production target of
1.08mn metric tonnes.
The
mining arm delivered third-quarter sales of $10.33bn, representing
9.6% year-on-year growth driven by increased molybdenum, silver and
zinc volumes combined with strengthened metal pricing.
Copper
sales contracted 4.3% compared to the prior year, yet molybdenum
sales, critical for steel reinforcement and petroleum refining
acceleration, expanded 7.9%. Silver and zinc sales demonstrated
robust growth of 19.3% and 7.3% respectively.
The
producer is contemplating US project investments within a
three-to-five-year horizon.
'There is
an opportunity to invest up to $6.2bn in the reopening and
expansion of projects that align with the new mining and industrial
policies of President Trump's administration,' the company
disclosed.
Citigroup
rebuffed Grupo Mexico's October bid for its Mexican retail
operation Banamex, electing to proceed with a previously arranged
deal instead.
Grupo
Mexico jolted markets by submitting an unsolicited $9.3bn
Banamex proposal more than two years following its initial
withdrawal from negotiations.
Market
observers had anticipated potential competitive bidding for
Banamex. The company, however, declared it would refrain from
entering an auction.
The
conglomerate abandoned its 2023 Banamex pursuit after discussions
foundered amid friction with then-President Andrés Manuel López
Obrador's administration, prompting Citi to pursue a listing
strategy for the unit.
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