Grupo Mexico net income plunged 53.8% from $693 million in the third quarter of last year to $320.2 million for the third quarter of this year.
For the first nine months of the year, Grupo Mexico reported an 11.7% drop in net income from $1.88 billion in the same period of 2011 to $1.66 billion.
In Grupo’s Mining Division, Americas Mining Corporation (AMC) reported molybdenum prices dropped 19.2% during the third quarter, “led primarily by macroeconomic news, as consumption of molybdenum remains closely tied to the steel industry.” For the first nine months of the year average moly prices declined 18%.
Average lead prices were down 20.7%, while silver and zinc prices averaged 15%+ declines. However, average gold prices were up 8%, as sulfuric acid prices increased 23% per ton.
Grupo Mexico reported net income attributable to AMC for the first nine months of this year of $1.4 billion, down from $1.8 billion in net income for the first nine months of 2011.
For the third quarter of this year, Grupo reported an attributable net income for AMC of $420.6 million down from the attributable net income of $684 million reported during the third-quarter 2011.
However, Grupo Mexico observed that, as of Sept. 30, 2012, cumulative sales were $7.69 billion, “only 3% lower year-over-year despite a significant drop in metals prices. …This result was achieved by increased volume production sold of copper (+8%), silver (+15%) and gold (+14%).”
On Oct. 19, 2012, Grupo Mexico’s Board of Directors approved a cash dividend payment of 26-pesos (US 2-cents) per share, to be paid on Nov. 7, 2012.
