It is said that all companies are wrapped in a context that either benefits or prejudices them, and many are sensitive to changes in policy, currency, climate and the economy. Although variances in copper prices are an important catalyst for the company, this does not mark its path. Since the 2008 crisis, copper prices have quadrupled while Grupo Mexico’s (GMexico) sales have increased almost fourteenfold – so although there is a direct connection with copper prices, Grupo Mexico is more than the copper it produces.
GMexico is a holding company listed on the Mexican Stock Exchange (ticker symbol GMEXICOB) operating primarily in the mining industry, freight, the multimodal railroad service industry, and the infrastructure sector.
The company is the world’s sixth-largest integrated copper producer. It also produces molybdenum, silver, zinc, lead, gold and sulphuric acid. GMexico also operates Mexico’s largest railroad system.
With a market capitalisation of $25bn, GMexico is the second most traded share on the Mexican Stock Exchange and third in terms of market value.
The Mining Division, through Southern Copper Corporation (listed on the NYSE: SCCO) and Asarco Company, has operations in Mexico, Peru, and the United States. It holds the world’s largest copper reserves.
GMexico’s Transportation Division is represented by Ferromex and Ferrosur (covering approximately 84 percent of the country) and Ferrosur, which together form the largest railroad company with the most extensive coverage in Mexico, connecting to five border points with the United States, four ports on the Pacific Coast, and two ports on the Gulf of Mexico.
The Infrastructure Division, which has extensive experience in the construction of dams, tunneling, hydroelectric plants, roads, highways, industrial plants, and exploration drilling, is strategically positioned to execute on infrastructure growth opportunities in Latin America.
GMexico growth potential
Taking an aggressive approach in terms of expansion, GMexico aims to double its copper output in the next five years to one million tons, increase the market penetration of its railroads from 19 to 25 percent in the next five years, and increase its infrastructure projects.
CSR and sustainable development
Social responsibility and sustainable development are a fundamental part of the company and represent an integral part of the decision making process to create value in its operations. GMexico is seeking to guarantee a more responsible operation in terms of social, economic, and environmental issues. Attaining sustainability in terms of the environment, health, and overall well-being of its employees and its neighbour communities is a strategic objective. The company understands sustainable development as “meeting the needs of today without compromising the needs of tomorrow.”
73 percent of all water is reclaimed water
1.4 million trees are planted every year
30 percent improvement in fuel efficiency
10 Clean Industry certifications.
For more information email:
Ir@mm.gmexico.com; www.gmexico.com
