Slim's Mexican miner Frisco slides into red on derivative losses

Wed Feb 27, 2013 8:31pm EST

Related Topics

* Frisco Q4 net loss 1.3 billion pesos

* Losses due to bad derivatives bets

* Revenues up 5 percent to 2.6 billion pesos

MEXICO CITY, Feb 27 (Reuters) - Mexican miner Frisco , owned by billionaire Carlos Slim, posted a 1.3 billion peso ($101 million) net loss in the fourth quarter, hit hard by bad bets on derivatives contracts.

Losses resulting from metals derivative contracts came to 2.5 billion pesos -- close to the amount of the revenue it made the quarter. Revenue had gained some 5 percent.

Frisco reported an 872 million peso profit in the same period in 2011.

The company, which operates 8 mines in Mexico, said gold production fell 26 percent to 45,086 ounces, while silver production rose 5 percent to 1.27 million ounces.

Frisco said it also produced 7,247 tonnes of copper during the quarter, up 37 percent on the fourth quarter of 2011.

Prior to the announcement, Frisco's share price rose 0.7 percent to 53.41 pesos on Wednesday.