Grupo México (GMEXICOB) Q3 2024 earnings summary

Executive summary

• Achieved double-digit revenue and EBITDA growth, driven by strong copper prices, production, and cost controls, with the Mining Division leading performance.

• Maintained a long-term investment strategy focused on organic growth and major projects in mining, transportation, and infrastructure.

• Recognized for sustainability with Copper Mark and Molybdenum Mark certifications for Peruvian mining operations and social initiatives.

• Maintained a solid balance sheet with low leverage and a net debt/EBITDA ratio of 0.1x.

Financial highlights

• 3Q24 revenue was $4.13B, up 13.4% year-over-year; 9M24 revenue totaled $12.32B, up 12.5% year-over-year.

• 3Q24 EBITDA was $2.17B, up 22.0% from 3Q23; 9M24 EBITDA reached $6.47B, up 17.3% year-over-year.

• Net cash cost per pound of copper improved to $1.04 in 3Q24 and $1.12 for 9M24.

• Dividend per share increased to MXN 1.30 in 3Q24, with a 4.7% yield.

• Net debt to EBITDA ratio at 0.1x; cash and equivalents at $7.6B.

Outlook and guidance

• Copper market expected to see a slight surplus in 2024, with demand supported by decarbonization and AI trends.

• Major mining projects advancing: Tía María construction expected in 2025, Los Chancas and Michiquillay progressing in Peru.

• Transportation division expects 5–7% volume growth in net ton kilometers for 2025, with new investments planned.