MEXICO CITY, July 31 Mexican mining company
Industrias Penoles on Tuesday reported a 40.4
percent drop in second-quarter profit, despite a slight increase
in revenue as investment costs rose and most metal prices fell.
The miner and metals processor, which controls the world's
largest primary silver producer, Fresnillo, said profit
in the second quarter was 2.19 billion pesos ($165.09 million)
versus 3.68 billion pesos ($277.41 million) in the same period
General expenses rose for the quarter, as exploration
investments jumped 86 percent, while sales costs increased 17.7
percent. Significantly lower metal prices for the quarter -
silver and lead each down 22.9 percent, zinc down 14.5 percent
and copper down 14.0 percent -- also contributed to lower
profits, Penoles said in its report to the Mexican stock
Still revenue rose 4.1 percent to 25.87 billion pesos ($1.95
billion) for the quarter, percent, boosted by a favorable
exchange rate and higher gold prices.
Penoles spun off precious metals unit Fresnillo in 2008 and
now focuses on base metals mining and refining.
Penoles stock was down 4.11 percent at 550.15 pesos per
share in early afternoon trading on the local exchange.