Peñoles grows more than expected in the first quarter

Industrias Peñoles, one of the world's largest producers of silver and other metals, performed better than expected in the first quarter, benefiting from higher metal prices amid uncertainty stemming from U.S. President Donald Trump's tariff policy.

The company's revenue grew 28.8% annually between January and March, 11.2% above the analyst consensus forecast.

In addition, operating cash flow (EBITDA) more than tripled, growing 220.2%, exceeding forecasts by 15.3%.

Peñoles said average gold and silver prices rose just over 38% in the quarter, while zinc and copper increased at a slower pace, and only lead declined.

"This performance was primarily explained by the global uncertainty generated by U.S. tariff policies and their potential repercussions on international trade and economic growth, which boosted demand for precious metals as safe haven assets and put pressure on industrial metals compared to their 2024 close," the company said in its financial report.

In its report submitted to the Mexican Stock Exchange (BMV) on the last day of April, the mining company explained that gold reached historic highs as a strategic asset in the face of uncertainty, a weakening dollar, and stock market volatility, while silver rebounded, benefiting from gold.

Demand for precious metals for investment remained strong, with record inflows into exchange-traded funds (ETFs), while purchases by various central banks continued, in contrast to limited supply, especially in the case of silver.

Higher volumes

Increased sales volumes of gold, silver, lead, concentrates, matte copper, and magnesium oxide also supported the results and offset decreases in zinc, copper, and sodium sulfate, the mining company added in its quarterly report.

At the same time, cost of sales decreased 3.3% due to lower production costs associated with the exchange rate depreciation, lower electricity consumption, the suspension of operations at one unit due to a strike, and other factors.

With this, Peñoles' net profit rose to $185.9 million, compared to a loss of $39 million recorded a year earlier.

For Intercam Banco stock analysts, Industrias Peñoles' quarterly report exceeded their expectations.

They explained that the price environment remains favorable, and that geopolitical uncertainty linked to trade policies in the United States, continued purchases by central banks, and volatility in financial markets support demand for gold as a safe haven asset.