Q2 2024 Grupo Mexico SAB de CV Earnings Call Transcript
Key Points
- Grupo Mexico SAB de CV (GMBXF) reported double-digit increases in consolidated results for both the first half and the second quarter of 2024.
- The mining division showed outstanding results, contributing significantly to the overall performance.
- The Fenicias wind farm has started commercial operations, expected to reduce 250,000 tons of CO2 emissions annually.
- The Buenavista mines received multiple certifications for responsible production, enhancing the company's ESG credentials.
- The company maintains a solid balance sheet with low leverage and a net debt to EBITDA ratio of 0.2 times.
- Higher costs were incurred due to an unprecedented number of migrants entering Mexico, affecting the transportation division.
- The transportation division's EBITDA margin decreased to 43.3%, impacted by the immigration crisis.
- The company faces challenges in the copper market, including production cuts and weakness in China's real estate market.
- Molybdenum and zinc prices decreased by 23% and 7%, respectively, during the first half of the year.
- The company has not yet implemented a share buyback program, despite strong cash flows and a robust balance sheet, leading to investor frustration.
Good afternoon and thank you for holding. Welcome to Grupo México's second quarter earnings conference call. With us this afternoon are all of Grupo México's top executives who will discuss the financial performance of the company during the second quarter 2024 results, giving you a summary of the latest news and addressing any questions you may have at the end of the call.
Before we begin, I would like to remind you that information discussed on today's call may include forward-looking statements regarding the company's results and prospects, which are subjects to risks and uncertainties. Actual results may differ materially, and the company cautions not to place undue reliance on these forward-looking statements.
Grupo México undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All results are expressed in full US GAAP. The presentation may be followed through our webcast. (Operator Instructions) A copy of the slides that the company will be reviewing today is available on the
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