Mexico: The market value of mining companies rose 105 thousand million pesos in one month

The Mexican mining companies listed on the stock market started the year with a bang, since during the first month of 2023 they collectively earned just over 100 billion pesos in market value. This occurs despite forecasts that mineral prices will fall throughout this year.

The five Mexican mining companies listed on the Mexican Stock Exchange: Grupo México, Fresnillo, Peñoles, Frisco and Autlán, had an approximate value of 774 thousand 505 million pesos at the beginning of the year and at the end of January they reached 879 thousand 629 million of pesos.

In little more than a month, the mining companies, owned by several of the wealthiest people in the country, have increased their value by almost 14 percent, equivalent to 105 thousand 124 million pesos.

The takeoff of the shares of the largest Mexican mining companies in the country occurs in a context in which the rating agency Fitch Ratings predicts that the prices of the main metals (gold, silver and copper) will fall in 2023, but will remain for above the average of the last 10 years.

According to a report by the firm, this year the price of copper will contract 8 percent, while that of iron ore will fall 26 percent, that of gold around 11 percent and that of zinc 18 percent.

In this context, the shares of Grupo México, the largest mining company in the country, went from 69.8 to 82.4 pesos, which is equivalent to an increase of 17.6 percent. This means that in the aforementioned period the value of the conglomerate in the stock market increased from 543 thousand 393 million to 639 thousand 459 million pesos, that is, a profit of 96 billion pesos.

Mostly owned by Germán Larrea, the country’s second-richest person, Grupo México is the world’s third-biggest copper producer and fourth-biggest silver producer. In addition, the conglomerate is preparing an offer to take over Banamex, one of the most important banks in the country, which would expand its empire to the financial system.

By market size, Fresnillo, owned by the Bailleres family, is the second largest mining company in the country, which in the referred period saw its market value decrease slightly by 0.5 percent, going from 127 thousand 482 million pesos to 126 one thousand 745 million; In third place is Peñoles, whose current market value is 107 thousand 187 million pesos, almost 10 percent more compared to the 97 thousand 759 million pesos with which it started the year.

Peñoles, also from the Bailleres family, is the largest silver producer in the world, which has led it to be listed on the London Stock Exchange; It is the leader in gold extraction in Mexico and 30 percent of its income is from that mineral.

In fourth place, with a considerably smaller size than the previous ones, is Frisco, owned by Carlos Slim, the wealthiest person in Mexico, whose value is 17 thousand 895 million pesos, 16 percent more compared to 15 thousand 416 million beginning of the year; Meanwhile, in the fifth is the Autlán mining company, chaired by José Antonio Rivero Larrea, with a value of 5 thousand 302 million pesos, equivalent to an increase of 4.6 percent compared to the 5 thousand 65 million pesos of the start of 2023 .

By Editor

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