Mining giant Grupo Mexico reports higher profit on price boost, trims copper guidance

By Reuters News

By Natalia Siniawski

MEXICO CITY, Oct 20 (Reuters) - Mining and transportation conglomerate Grupo Mexico GMEXICOB.MX said higher metal prices helped its third-quarter net profit rise by more than half from a year earlier, even as copper production slightly dipped.

The group, a leading global copper producer, lowered its 2026 copper production guidance to 1.028 million metric tons from a previous forecast of 1.034 million tons, a difference of 6,000 tons.

Its quarterly copper production reached 260,322 tons, down 1.9% from the same period a year ago, due to decreases in Peru and at the Asarco unit in the United States. The lower figures were partially offset by an increase in operations in Mexico.

Grupo Mexico said the decline was due to lower ore grades in Peru and at Asarco that had been expected, and added it was evaluating options to increase production volumes in Peru.

Its long-delayed $1.1 billion Tia Maria copper project reached 49.6% completion by the end of September, with commercial operations expected to begin in the first half of 2028, Grupo Mexico said.

Copper prices rose 30.6% this year through the third quarter, while silver prices more than doubled. Copper accounts for roughly three-quarters of Grupo Mexico's revenue.

Net profit came in at $2 billion, 56% more than a year before, and above the $1.78 billion estimate of analysts polled by LSEG. Revenue climbed 38% to $6.33 billion, also surpassing a $5.81 billion estimate.

Earnings before interest, taxes, depreciation and amortization for the three months through September rose 50.5% to $3.77 billion.

In addition to copper, output of some other metals also weakened, with zinc production falling 7.9% and silver declining 5.7%. Gold output rose 2.4%.

Grupo Mexico, controlled by billionaire German Larrea, is one of the world's largest copper producers through its mining division and also operates rail and infrastructure businesses across Mexico and other Latin American countries.

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