Grupo Mexico Copper Profits Soar on Higher Prices
Grupo Mexico's second-quarter net profit skyrocketed by nearly 79% to $2.20 billion, far exceeding analyst estimates of $1.66 billion. The conglomerate's revenues rose 35% to $5.71 billion during the same period, with copper prices increasing by 30.5% year-over-year to $6.16 per pound.
The mining and transportation giant attributed its impressive growth to higher copper prices, which boosted sales in its key mining division by 41.3%. Grupo Mexico's production of copper declined slightly by 3.7%, mainly due to lower output in Peru and the US Asarco unit, but was partially offset by increased productivity at Mexican operations.
Grupo Mexico is looking to expand its portfolio with potential acquisitions, including a stake in a rail asset in Brazil and freight rail assets in Argentina, provided it can gain full control over both infrastructure and operations. The company has also secured $1.25 billion through a 10-year senior unsecured bond issue, which will be used for the Tia Maria copper project in Peru.
The Tia Maria project is currently 42% complete and aims to start operating by the second half of this year. Grupo Mexico remains committed to its 2026 guidance of producing 1.034 million tons of copper.