Grupo México (GMEXICOB) Q2 2024 earnings summary

Executive summary

• Achieved double-digit growth in all consolidated financial indicators for 2Q24, driven by strong mining performance and higher copper prices.

• Maintains a solid balance sheet with low leverage and 95% of debt at fixed rates.

• Sustainability initiatives advanced, including the start of wind energy supply and multiple ESG certifications.

• Expansion plans and cost control enabled the company to benefit from favorable copper prices despite regional uncertainties.

• Buenavista Zinc concentrator met production targets.

Financial highlights

• 2Q24 revenue reached $4,397M, up 27.4% year-over-year; 1H24 revenue was $8,196M, up 12.1%.

• 2Q24 EBITDA was $2,332M, up 43.3% year-over-year; 1H24 EBITDA was $4,298M, up 15.1%.

• 2Q24 operating income rose 59.3% to $1,964M; 1H24 operating income up 18.4% to $3,507M.

• Dividend per share for 2Q24 was MXN 1.20, with a 4.6% yield.

• 2Q24 net income reached $1.07B, up 24.2% year-over-year.

Outlook and guidance

• Copper market expected to face a deficit in 2024, with strong demand from decarbonization technologies.

• Expansion projects continue, with over $15B in capital investments planned for the decade, including major mining and infrastructure projects in Mexico and Peru.

• Buenavista Zinc and Fenicias Wind Farm to support future growth and sustainability targets.

• Tía María project in Peru restarted; construction expected to begin in 2025, operations in 2027.

• Resilient US economy and new demand drivers offsetting weak Chinese real estate sector.