August 1, 2017 / 4:04 PM / a year ago

UPDATE 1-Mexican miner Penoles 2nd-qtr profit surges on lower financial costs

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MEXICO CITY, Aug 1 (Reuters) - Mexican miner and metals processor Industrias Penoles on Tuesday posted a more than 400 percent year-on-year jump in its second-quarter profit, helped by better metals prices, higher sales and far lower financial costs.

The company, which runs the world’s largest primary silver producer, Fresnillo, made 3.22 billion pesos ($177.64 million) in profit during the three-month period, up from 639.3 million pesos in the same quarter of 2016.

Penoles had total sales of 20.71 billion pesos in the quarter, up 3.6 percent from the same period in 2016 while average metals prices also rose. Zinc, for example, jumped over 35 percent, while average silver prices were 2.3 percent higher.

The company also notched far lower financial losses of 172.9 million pesos, compared with losses of 2.42 billion pesos in the second quarter of 2016 related to derivative instruments.

Shares of Penoles were up about 2 percent after the earnings report. ($1 = 18.143 pesos on June 30) (Reporting by Gabriel Stargardter; Editing by Jonathan Oatis)

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