The profits of the mining company Industrias Peñoles were reduced by more than half in the second quarter, adding 74.8 million dollars, after a drop in sales and suffering from the increase in the cost of inputs, after the high levels of inflation .
According to its financial report sent to the Mexican Stock Exchange, the company’s net income decreased 61.7% when compared to the same period last year, as a result of lower volumes sold.
This led to its operating flow totaling 298.2 million dollars, which meant a decline of 45.7% compared to the same quarter of the previous year.
Net sales totaled 1,469.7 million dollars, which meant a reduction of 6.6% , where the decrease in gold production stands out, which fell 17.2% due to a lower volume of ore processed.
Similarly, lead production fell 3.9% and milled ore 1.9%, while silver and zinc registered slight advances, 1.4% and 1%, respectively.
In addition to the previous scenario, the mining company highlights an increase in its production costs , due to a higher consumption of materials in operations and the increase in the cost of its inputs, also underlining that inflation has generated an economic environment with greater concerns.
“Persistent inflation has raised concerns about a global recession or stagflation . The foregoing, together with the implementation of stricter monetary policies, were the factors that caused greater volatility and uncertainty in the markets during the second quarter of 2022”, he adds.
The foregoing caused the prices of gold and silver to have ups and downs , with a greater downward bias in the short term. The price per ounce of gold stood at 1,870.58 dollars, which meant a slight advance of 3% compared to the same period last year.
On the contrary, the average price per ounce of silver throughout the second quarter was 22.62 dollars, which implied a reduction of 15.5%, while the decrease in the price of copper was 2.0%.
