Grupo México (GMEXICOB) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated sales of US$16.17 billion in 2024, up 12.6% year-over-year, driven by higher copper, gold, and silver prices and increased sales across all divisions.

• Mining Division revenues rose 14.1% to US$12.40 billion, with copper production up 5.5% and zinc production up 98.5% in 2024, supported by Buenavista Zinc project ramp-up.

• EBITDA reached US$8.38 billion, up 18.7% from 2023, with a margin of 51.8%.

• Maintained industry-leading low net cash cost of US$1.14/lb, a 9.6% decrease year-over-year.

• Strong ESG performance, including top S&P Global CSA ranking, Dow Jones Sustainability Index inclusion, and significant reductions in workplace accidents.

Financial highlights

• 4Q24 revenue was US$3.85 billion, up 12.8% compared to 4Q23.

• Operating income for 2024 was US$6.78 billion, up 24.7% year-over-year.

• Net income for 2024 reached US$3.69 billion, a 25.8% increase from 2023.

• 2024 net dividend per share was MXN 4.60, with a 4.2% yield in 4Q24.

• Net debt/EBITDA ratio at 0.05x, reflecting a robust balance sheet.

Outlook and guidance

• Copper market expected to face a deficit in 2024, supported by strong demand from decarbonization and AI technologies.

• Ongoing capital investment program for the decade exceeds US$15 billion, with major projects in Mexico and Peru.

• El Pilar, El Arco, Tía María, Los Chancas, and Michiquillay projects to drive future copper production and growth.

• Construction at Tía María expected to begin in 2025, with operations starting in 2027.

• Ongoing global economic uncertainties, including US-China trade tensions and slow growth in Europe and emerging markets.