October 28, 2013 / 10:13 PM / 4 years ago

UPDATE 1-Mexico's Penoles posts lower 3rd-qtr profit as metal prices fall

(Adds reasons for decline, comment from filing, share price))

MEXICO CITY, Oct 28 (Reuters) - Mexican mining company Industrias Penoles reported on Monday that its third-quarter profit fell nearly 25 percent from the same quarter a year ago, due to lower metals prices and a dearer peso.

The miner and metals processor, which runs the world’s largest primary silver producer, Fresnillo, said its profit in the period totaled 1.28 billion pesos (US$97.3 million), down from 1.67 billion pesos in the third quarter a year earlier.

The company reported revenue for the June-September period of 15.77 billion pesos, down 31.6 percent from 23.06 billion pesos in the same quarter last year.

Penoles said silver prices have fallen an average of 28.6 percent compared with last year’s third quarter, while gold prices were 19.8 percent lower.

“On the other hand, the Mexican peso appreciated an average of 2.1 percent in third-quarter of 2013, compared with the third quarter of 2012 ... which affects our dollar denominated sales and makes our peso production costs more expensive,” Penoles said in a regulatory filing.

Penoles shares were up 2.26 percent at 388.46 pesos before the company reported its financial results.

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