Mexican mining company Minera Frisco SAB (MFRISCO.MX, MSNFY) made a net profit in the third quarter, compared with a year-ago loss, as currency gains offset lower revenue and operating profits.
Frisco, the mining concern controlled by businessman Carlos Slim, made a net profit of 1.18 billion pesos ($89 million) in the July-to-September quarter, compared with a MXN196 million loss a year before.
Poor weather conditions at one mine and maintenance work and lower ore grades at others led to lower production of gold, silver, lead and zinc in the quarter, while copper output rose on the discovery of a new high-grade vein at the San Francisco del Oro mine.
Revenue in the quarter fell 13% to MXN1.91 billion from MXN2.18 billion, and the cost of sales rose on maintenance and new projects, leading to a 43% drop in operating profit to MXN479 million from MXN836 million.
Net profit was saved by a MXN1.19 billion financial gain, compared with a MXN1.15 billion financial cost in the third quarter of 2011. The positive result included a MXN1.44 billion exchange gain on currency forwards, lower interest expense and narrower losses on metals derivatives.
Total debt was MXN10.83 billion at the end of September, compared with MXN8.35 billion a year earlier. Net debt more than doubled from a year earlier to MXN9.01 billion as the company invested money in expansions and other projects.
