Soaring demand for copper will help drive mergers, BHP CEO says
Demand for copper, a key element in the energy transition, is set to rise by 70% to 100% by 2050, Mike Henry said
Mexican mining and transport firm Grupo Mexico reported on Monday a 7.2% fall in quarterly earnings, citing a nearly two-month production halt at a mine in Peru due to a community blockage.
Copper production for the quarter dropped 9.9% year-over-year, Grupo Mexico said, largely due to its Peru business, listed separately as Southern Copper Corp as well as Southern Peru Copper Corp.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) rose 3.1% to $2.2 billion, the company said in an accompanying release, above the Refinitiv forecast of $2.18 billion.
Mexico’s top copper miner’s revenues rose 9.6% to $3.76 billion, above the Refinitiv estimate of $3.68 billion.
Mexico’s Monex said in an analyst note that the results were in line with what they expected and that “through 2022, we expect (Grupo Mexico) to maintain important synergies in the mining segment, with a favorable outlook for metal prices.”
The company also cited a “complicated local and global macroeconomic environment” and “inflationary pressures” as difficulties, though it said it was “positioned to take advantage of upward cycles in metal prices.”
(By Kylie Madry, Noe Torres and Valentine Hilaire; Editing by Christian Plumb and Leslie Adler)
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