Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Mexican miner Industrias Peñoles’ copper production increased by 45.6pc to 2,720.64mt in Q1 2021 from 1,867.89mt in the same quarter last year on higher recovery from its Sabinas and Capela mines.


However, the company reported a 79.6pc drop in its copper cathode production to 810.11mt in the first quarter from 3,980.72mt in Q1 2020. The miner attributed the steep decline due to a suspension in operations at its Milpillas mine.


Peñoles reported a 5.8pc decline in zinc production in Q1 2021 to 63,218.98mt compared to 67,120.78mt in the same quarter last year while its lead output trended flat, down 0.6pc to 18,952.90mt from 19,071.74mt during the same period. The miner attributed the lower output for both metals to suspensions at its Madero and Bismark mines, which have remained shut since April 2020. However, a higher output of zinc and lead from the company’s Capela mine offset some of the reductions.


However, Peñoles’ refined lead and zinc production increased by 16.7pc and 16.9pc in Q1 2021 to 28,453.84mt and 60,638.04mt, respectively, annually.


The company’s net consolidated sales grew by 48.7pc to $1.54bn in the first quarter from $1.04bn in Q1 2020, while its gross profit increased by 159.5pc to $429.4mn from $165.4mn during the same period. The higher revenue and profits were attributable to higher metal prices during the quarter. Peñoles’ EBITDA also increased by 121.9pc during the period under review to $480.4mn from $216.5mn in Q1 2020.

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