Revenue up 31 pct yr/yr on higher metals prices
* Costs rise 51 pct on new mines, exploration (Adds details on revenue, costs)
MEXICO CITY, March 1 (Reuters) – Mexican mining company Penoles posted a 28 percent drop in fourth-quarter profit on Tuesday on higher costs, including investments in a new mine and more exploration.
The base metals producer, which also controls the world’s largest primary silver producer Fresnillo (FRES.L: Quote), reported a fourth-quarter net profit of 1.642 billion pesos ($133 million), compared with 2.28 billion pesos in the year-earlier period, according to a filing with the Mexican stock exchange.
The company paid 12.5 billion pesos in cost of sales during the quarter — up nearly 51 percent, compared with 8.3 billion pesos in the year-earlier period.
Penoles said in a statement that costs were higher as it started operations at the Soledad-Dipolos mine and spent a record amount on exploration.
Higher metals prices helped lift revenues during the quarter to 18.481 billion pesos — up 31 percent compared with 14.102 billion in the year-ago period.
Penoles shares (PENOLES.MX: Quote) were up 1.08 percent at 425.48 pesos. ($1= 12.3103 pesos at end December) (Reporting by Michael O’Boyle; editing by Gunna Dickson)
