Major copper producer Grupo Mexico reported a 35% jump in first-quarter profit, helped in part by higher mine production numbers.
The higher profit- $709 million compared to $524 million a year ago- came despite a 14% drop in copper prices, an 18% fall in molybdenum and a 16% slide in zinc. Grupo Mexico, which has mines in Mexico, the US and Peru, sold more copper, moly, silver and gold compared to a year ago, with the biggest increase in gold, a 42% lift. The only metal to decline in terms of sales was zinc, a 0.1% drop.
The group’s mining division, Americas Mining Corporation, reported the following highlights from Q1:
Grupo Mexico said it is bullish on the price of copper despite lower prices due to poor economic news and a stronger dollar. It bases that assessment on tighter supply due to anticipated bad weather, strikes, lower ore grades, delays in startups of new projects and better economic growth coming in the second half. The company also expects demand from China, the world’s largest copper consumer, to increase in Q2 and to hold steady for the rest of the year as the country makes necessary investments in energy and infrastructure.