MEXICO CITY, Apr 28 (Reuters) – Mining giant Grupo México, one of the world’s largest copper producers, expects demand for the red metal to increase during 2021 due to the recovery in the global economy, a executive.
Last year, Grupo México’s copper production, with businesses also in the railway and infrastructure sectors, reached 1.13 million tons and generated almost 83% of the sales of its huge mining segment.
Leonardo Contreras, head of the mining division, said in a call with analysts that the company anticipates copper demand growth of between 3.5% and 5.5% this year.
The forecast comes a day after Grupo México announced its corporate results for the first quarter, which include a net profit of $ 1,097 million driven by a sharp increase in metal prices.
Its revenue also jumped 40% to $ 3.435 million, which was well received by industry experts.
“Despite the record results, we expect earnings to continue to improve in the coming (quarters) as copper prices accelerate,” BTG Pactual said in a review note.
(Report by David Alire García and Noé Torres. Edited by Miguel Angel Gutiérrez)