Revenue from the holding's Mining Division closed at US$6.22 billion in Q2, which is 32.7% higher than in the same period in 2023, due to increases in sales volumes of copper, molybdenum and zinc, in addition of the 6.0% increase in copper prices during the first half of the year.
Grupo México's accumulated consolidated revenues in the second quarter of the year (2Q24) reached US$ 8,190 million, 12.1% more than in the same period of 2023 and 27.4% more than in 2Q23. While the Mining Division's revenues closed at US$ 6,220 million in 2Q24, which is 10.9% higher than in 2023 and 32.7% higher than in 2Q23, due to increases of 2.2%, 14.8% and 33.7% in the sales volumes of copper, molybdenum and zinc, respectively. The 6.0% rise in copper prices during the first half of the year also had an influence. This was partially offset by a 23.0% decrease in molybdenum prices and a 7.0% drop in zinc prices.
While the Transportation Division achieved accumulated revenues of US$1,770 million, 12.4% more than in 2023 and 9.0% more than in 2Q23. While the accumulated net income of the Infrastructure Division totaled US$388 million, an increase of 15.7% vs. 2023 and 10.3% higher than in 2Q23.
"Despite a period of uncertainty in the countries where we operate, Grupo México continues with its expansion plans to continue promoting economic growth and well-being in these countries. As a result of our investment plan sustained over several decades, as well as With a continued focus on cost control, we were able to benefit from the positive copper price environment, showing double-digit growth in all our indicators, led by the excellent results of the Mining Division. In addition, we achieved the expected production at the new concentrator. Buenavista Zinc in Mexico, which has produced 23,300 tons of zinc and 5,544 tons of copper as of 2H24," the company said today in its statement.
The accumulated consolidated production of copper in the first half of this year showed a recovery of 5.3% versus the first half of 2023, reaching 538,741 tons, including 5,544 tons of copper from the new Buenavista Zinc concentrator in Mexico.
"The increase in copper production is primarily due to growth in our Peruvian operations, given higher ore grades, as well as higher production in Mexico, which was partially offset by a decrease in Asarco production (... "We continue to have the best cost in the copper industry worldwide," indicates the statement from the Larrea holding company.
During 2Q24, production increased 4.7%, following a dynamic similar to that of the first half of the year.
BYPRODUCTS
Net cash cost of byproducts showed a 0.4% improvement compared to 1H23, due to an improvement in unit production costs given higher volumes, as well as higher byproduct credits for molybdenum, zinc and silver .
Compared to 2Q23, net cash cost was 22.1% lower, going from US$1.32 to US$1.03—a reduction of US$0.29—mainly due to higher by-product credits. Likewise, it shows an improvement of 19.5% versus 1Q24, mainly due to higher by-product credits due to higher volumes and prices, and the effect of economies of scale, due to the units produced.
Consolidated EBITDA as of 1H24 amounted to US$ 4.3 billion, 15.1% above the same period of the previous year and 43.3% more quarterly.
During 1H24, the Mining Division obtained US$3,350 million in EBITDA—18.3% higher than in 2023—and showed an increase of 60.7% during 2Q24.
While the Transportation Division obtained an EBITDA of US$764 million during 1H24—an increase of 2.3% compared to the previous year and a drop of 3.7% during 2Q24—significantly affected by the coordinated actions undertaken by the authorities. to control migratory flows.
"Our railway network received an unprecedented number of migrants entering our country, causing high levels of congestion," the holding company clarified on its website.
This was reflected in higher costs and an impact on operating metrics as well as revenue.
"We are in constant dialogue with federal authorities and today we can report zero trains boarded by crowds, thus avoiding the risks faced by migrants who travel illegally aboard freight trains," the company stated.
In the Infrastructure Division, for its part, accumulated EBITDA totaled US$ 229 million, which is 41.5% higher than in 1H23 and 82.8% higher during the quarter.
Likewise, on July 19, 2024, the Board of Directors declared the payment of a cash dividend of $1.20 pesos (Mexican) per outstanding share, to be paid in a single installment as of August 28, 2024. This dividend implies a annualized dividend yield of 4.6%.
