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UPDATE 1-Slim's Frisco posts big jump in 2nd-quarter net profit
July 25, 2012 / 10:51 PM / in 5 years

UPDATE 1-Slim's Frisco posts big jump in 2nd-quarter net profit

(Updates with background; adds currency hedges)

MEXICO CITY, July 25 (Reuters) - Mexican billionaire Carlos Slim’s mining company Minera Frisco said on Wednesday that net profit in the second quarter jumped nearly 200 percent, boosted by foreign exchange bets and a lower loss from metals hedges.

Earnings rose to 299 million pesos ($22 million) in the second quarter of 2012, up from a 325 million peso loss in the same period last year, the company said in a filing with the Mexican stock exchange.

The company said the jump was due in part to a 487 million pesos gain from currency hedges to protect against a weak peso.

Minera Frisco, which focuses on precious metals, reduced its gold and silver hedges after being hit hard in the past by bad bets. The company said it reduced its silver hedges by 20.9 million ounces, as well as dropping hedges for other metals.

The company said revenues were 2.3 billion pesos in the quarter, up 11.2 percent compared with the April to June period last year, mostly due to higher production of copper concentrate and zinc.

Quarterly earnings before interest, taxation, depreciation and amortization (EBITDA) were 816 million pesos, down from 1.02 billion pesos in the second quarter of 2011.

Slim controls a financial network built on telecommunications companies that has expanded into retail, banking, construction, real estate and mining. Minera Frisco was spun off from Slim’s Grupo Carso conglomerate early last year.

The company has six mines in operation in Mexico and is expanding, spending 4.73 billion pesos on capital expenditure in the first six months of the year. ($1=13.3396 pesos) (Reporting by Mica Rosenberg; editing by Andre Grenon)

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