Global copper producer, Grupo México reached record-high production volumes in 2020 on improved performance of its mining division in Peru and the US. The company expects its mining production in 2021 to be comparable to last year.
The company’s capital investments were lower than planned at $1.11bn in 2020 due to a slowdown in construction and reduced worker mobility because of the COVID-19 pandemic. The company plans to invest $2.15bn in 2021 in various projects across its three sectors intending to boost the economy and employment.
The miner increased copper production by 1pc or 9,681mt to 1.13mn mt in 2020 compared to 1.12mn mt produced in the prior year. Copper production rose by 2.4pc to 289,938mt in Q4 2020 against 283,022mt in the same prior-year quarter.
The yearly mining improvements were attributed to apt execution of pandemic-related operational procedures, while the quarterly advances were due to 2.3pc higher output at the Peruvian mines from higher ore grades and Cuajone’s recovery, along with 1.7pc increased production at US mines. Mining gains surpassed the company’s quarterly transportation and infrastructure divisions.
The company’s zinc production fell 6.8pc to 68,930mt in 2020 compared to 73,922mt in the prior-year period. Zinc output dropped by 17.7pc to 16,763mt in Q4 2020 from 20,364mt in Q4 2019. Lower production in Charcas and Santa Eulalia, partly lessened by an increase in San Martin, led to the reduced zinc output.
The producer’s copper sales increased 3.6pc to 1.13mn mt in 2020 from 1.09mn mt a year ago. Copper sales improved by 9.7pc to 291,841mt in Q4 2020 compared to 266,135mt in the same quarter of 2019. The miner’s zinc sales rose 1pc to 104,752mt in 2020 over 103,668mt in 2019 and increased by 0.7pc to 26,991mt in Q4 2020 from 26,813mt in Q4 2019.
The company’s revenue hit a record in 2020, improving by 2.1pc to $10.91bn compared to $10.68bn in 2019. Revenues rose by 22.1pc to $3.22bn in Q4 2020 against $2.63bn in Q4 2019. Net profit tallied at $2.11bn in 2020, an increase of 19.3pc from $1.77bn in 2019. Net income surged 96.5pc to $1.07bn in Q4 2020 against $542mn in the prior-year quarter.