By Natalia Siniawski
Mining and transportation conglomerate Grupo Mexico BMV:GMEXICO/B reported third-quarter net profit rose more than 50%, boosted by higher sales volumes of molybdenum, silver and zinc even as copper production fell.
Net profit for the group, a leading copper producer, came in at $1.29 billion from revenues that jumped 11% to $4.59 billion, according to a filing on Tuesday, the latter above a $4.41 billion estimate of analysts polled by LSEG.
Earnings before interest, taxes, depreciation, and amortization for the three months through end-September rose 15% to $2.51 billion.
Grupo Mexico, controlled by billionaire German Larrea, ranks among the world's largest copper producers by volume.
It maintained its annual copper forecast of 1.08 million metric tons, as third-quarter copper production slipped 2.6% to 798,394 tons due to weaker output in Mexico and Peru and a shift toward molybdenum, zinc and silver.
The mining division posted third-quarter sales of $10.33 billion, up 9.6% from a year earlier on higher molybdenum, silver and zinc volumes and stronger metal prices.
Although copper sales fell 4.3% from a year earlier, sales of molybdenum - a metal used to strengthen steel and speed petroleum refining - grew 7.9%, along with sales of silver and zinc which grew 19.3% and 7.3%.
The copper producer is looking to decide on investments for projects in the United States within the next three to five years.
"There is an opportunity to invest up to $6.2 billion in the reopening and expansion of projects that align with the new mining and industrial policies of President Trump's administration," Grupo Mexico said.
In October, Citigroup NYSE:C rejected Grupo Mexico's bid for its retail unit in the country, known as Banamex, opting instead to push forward with a previously agreed-upon deal.
Grupo Mexico surprised the market when it made the unsolicited $9.3 billion offer for Banamex more than two years after it had backed away from negotiations.
Analysts had speculated that Grupo Mexico could engage in a back-and-forth for Banamex. However, the company said it would not enter a bidding war .
In 2023, the company bowed out of the race for Banamex after talks struggled over tensions with the government of then-President Andres Manuel Lopez Obrador, leading Citi to opt to list the unit.