Industrias Peñoles (PE&OLES) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q'25 rose 27.2% year-over-year to $2,078.6 million, driven by higher gold and silver prices and increased sales volumes of gold, copper matte, sodium sulfate, and magnesium oxide.

• Gold and silver prices surged year-over-year, with gold up 40.3% and silver up 16.6%, while industrial metals declined due to global trade uncertainty and geopolitical tensions.

• Operating profit surged 129.2% year-over-year to $512.3 million, with EBITDA up 61.6% to $680.2 million.

• Net income attributable to controlling interest reached $333.3 million, reversing a loss in 2Q'24.

• Mining operations saw lower ore processed volumes, mainly from the cessation of San Julián (DOB) and a strike at Tizapa, but gold production rose 11.5% due to higher grades and recoveries.

Financial highlights

• Gross profit increased 73.4% year-over-year to $704.8 million, with a gross margin improvement due to higher metal prices and sales volumes.

• EBITDA increased 61.6% to $680.2M; operating income jumped 129.2% to $512.3M.

• Net margin improved to 16.0% from -1.4% in 2Q24.

• Cost of production decreased, reflecting lower ore processed, reduced electricity and maintenance costs, and favorable currency effects.

• Cash and cash equivalents rose to $2,338.1 million as of June 2025, up 88% from December 2024.

Outlook and guidance

• Management continues to focus on operational optimization and cost control, with ongoing transformation initiatives to strengthen performance.

• Ongoing exploration in Mexico, Peru, and Chile targets resource expansion and project development.

• Growth strategy focuses on high-potential projects like Racaycocha and strengthening mining operations.