The Grupo Mexico logo is seen on a container at a freight train station in Mexico City, Mexico July 31, 2024.
Controlled by billionaire German Larrea, Grupo Mexico remains one of the leading global copper producers. The company maintained its annual copper output forecast of 1.08 million metric tons, although copper production fell 2.6% to 798,394 tons during the quarter, mainly due to lower output in Mexico and Peru and a shift in focus toward molybdenum, silver, and zinc production. The mining division recorded third-quarter sales of $10.33 billion, up 9.6% year on year, supported by increased sales of molybdenum, silver, and zinc, along with stronger metal prices.
While copper sales dropped 4.3% from the previous year, sales of molybdenum—a metal used in steel strengthening and petroleum refining—rose 7.9%. Silver and zinc sales climbed 19.3% and 7.3%, respectively, reflecting favorable market conditions. Grupo Mexico said it plans to evaluate potential investments in U.S. mining projects within the next three to five years. “There is an opportunity to invest up to $6.2 billion in the reopening and expansion of projects that align with the new mining and industrial policies of President Trump’s administration,” the company stated.
In a separate development, Citigroup announced in October that it had rejected Grupo Mexico’s bid for its retail banking unit in Mexico, known as Banamex, choosing instead to proceed with a previously arranged plan. Grupo Mexico had surprised the market earlier with an unsolicited $9.3 billion offer for Banamex, more than two years after it had initially withdrawn from acquisition discussions. Analysts had speculated that the company might continue negotiations for Banamex, but Grupo Mexico clarified that it would not engage in a bidding contest.
In 2023, Grupo Mexico had exited earlier talks to acquire Banamex after discussions with the government of then-President Andres Manuel Lopez Obrador faced challenges, leading Citigroup to decide to list the unit instead. Despite setbacks in the banking acquisition, the company’s strong financial performance and expansion plans highlight its strategic focus on diversification and growth across key mining segments. The improved sales of molybdenum, silver, and zinc provided a significant offset to weaker copper output, ensuring overall revenue and profit growth during the third quarter.
