CONTENTS
Letter to shareholders
Analysis and discussion of results
WE WORK THE WEALTH OF THE EARTH
Mining Division
WE ARE THE POWER THAT MOVES MEXICO
Transportation Division
6
12
30
64
WE ARE THE EXPERIENCE AND INNOVATION OF THE FUTURE
Infrastructure Division
88
WE ARE THE REFLECTION OF OUR HARDWORKING COMMUNITY
Grupo México Foundation
108
DIRECTORY
Board of Directors and Management Team
132
Letter to shareholders
2019 was a year full of changes and challenges we overcame successfully. We are
satisfied to have achieved the goals we set for ourselves and that we continue to
strengthen the leadership of our Mining, Transportation and Infrastructure Divisions
for the benefit of our clients, users, partners and the communities that we live in
and we transit through.
We are proud to be the second-largest company in capital value and the fourth-largest
company in Mexico in terms of market capitalization and trading. We also have one of
the highest dividend yield ratios with an average of 6.6%. This is due to the strength
and continuity of our operations, which has allowed us to increase our share of the
different business segments in each Division.
We have achieved cumulative sales of USD$10,681 million, a record figure in our
history, reflecting our experience, ability to adapt, and best adopted practices. These
sales are 1.8% higher than 2018 sales and 2.8% higher than 4Q19 sales. EBITDA
for 2019 was USD$4,948 million, 1.2% higher than the previous period. We have a
low level of leverage, with a net debt-to-EBITA ratio of 1.4x. Our financial position has
allowed us to make capital investments in Mexico and Peru amounting to USD$1,126
million over the year.
For over ten years we have been the public company paying the second-largest amount
of taxes in Mexico. In Peru, our company carries out the most “works for taxes”, a
scheme aimed at expediting the delivery of public services. Over 84 years we have
developed a human capital distinguished for its high level of training, professionalism
and excellence.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
5
//
Aerial view of the Silver Bell Mine in Arizona, United States.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
4
Our 30,263 employees enjoy economic and labor stability. In the case of Mexico,
they receive the highest level of statutory employee profit-sharing (PTUs) in the
entire country.
Since 2010 we have seen a growth in sales of 32% and an increase in EBITDA of
24%. In ten years we increased copper production by 63%, we raised the tons/
kilometer of goods transported by our railroads by 26%, and we generated 17%
more sources of employment throughout the Group.
A reflection of the confidence we generated in the markets was the successful issue
of a bond by our Mining Division. This was an instrument for USD$1 billion, with a
term of 30 years, with a rate of 4.5%. Demand for these securities outnumbered
supply 4.6 times. Using these resources, in 2020 we will finance our mining and
metallurgical projects Buenavista Zinc, El Pilar and Pilares.
In the Transportation Division, we carried out a debt issue through Stock Certificates
for USD$402.1 million (issued in Mexican pesos). It was structured in two sections,
at 10 years with a fixed rate and at 4 years with a variable rate, achieving 8.17% and
8.34%, respectively. Thanks to these resources we refinanced two loans, thereby
improving our cost of capital and lengthening our maturities. These certificates met a
demand 2.2 times higher than the amount issued. Likewise, we invested USD$343
million in improving efficiencies in our railroad operations. This Division continues with
its growth trend, reaching an EBITDA of USD$1,096 million, 8.2% above 2018.
6
We also recorded very good results in the different business units of the Infrastructure
Division. We achieved an EBITDA of USD$272 million and accumulated net sales of
USD$580 million. An investment program of USD$1.04 billion was approved for the
construction of fuel storage terminals that will increase self-sufficiency and energy
security in Mexico. We will begin with one terminal in Monterrey and one more in
Guadalajara with an investment of USD$180 million, which will increase the storage
capacity of these cities by 7 and 15 days, respectively.
In line with our commitment to sustainable development, in 2019 we invested in
two wind farms with an installed capacity of 164 MW and 200 MW respectively. As
a result, we will increase our wind power generation capacity 5.2 times, creating
savings in our operations and reducing our CO2 emissions.
At Grupo México, success has a meaning that goes beyond operational performance.
We give priority to creating value in the locations where we work in and intensify
our efforts to work more effectively, with greater impact in the social, economic and
environmental spheres.
Sustainable development is one of the priorities of our business model. Every year
we invest an average of USD$60 million in projects for society, occupational health
and safety. Through programs and investment in community infrastructure, we seek
to generate well-being for our employees, for their families and for the communities
in which we are present.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
7
ANNUAL REPORT 2019
Through Grupo México Foundation we implement social, educational, environmental,
cultural and healthcare programs. The hospital we built in Juchitán, Oaxaca which
provides medical attention to the Istmo de Tehuantepec inhabitants, is an example.
The property was handed over ahead of schedule to the Federal Government to con-
tribute to the fight against the COVID-19 pandemic.
At Grupo México we will continue working to consolidate our position in the markets in
which we have a presence. Our shareholders can be certain they are part of the strength
of the largest mining company in Mexico, the fourth-largest copper producer in the world
and a diversified and integrated company across its value chain.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
8
Germán Larrea Mota Velasco
Ferromex locomotive. //
9
ANNUAL REPORT 2019
EBITDA 2019
USD$4.94
BILLION
With a margin of 46.3%
Analysis of results
During 2019, at Grupo México we maintained a solid balance sheet with a low
level of leverage, a net debt to EBITDA of 1.4x and a regular payment schedule.
Our financial strength ensured us a good position to face the difficult economic
environment while maintaining our commitment to continue with a significant
expansion program.
Combined cycle power generation plant,
La Caridad, Sonora, Mexico. //
We remain
committed to
ensuring sustained
growth,
striving
to increase our
productivity and
controlling costs to
continually generate
greater value.
Key consolidated figures for
Grupo México
Accumulated sales for 2019 reached USD$10.68 billion, a record figure in the
history of our company, an increase of 1.8% compared to 2018.
In our Mining Division our sales reached USD$7.96 billion, 1% higher than in 2018,
due to the growth in the production of Copper (+12%), Molybdenum (+22%) and
Zinc (+4%); this offset the significant fall in global metal prices: Copper (-6.9%),
Zinc (-12.8%) and Molybdenum (-4.9%).
The Transportation Division increased its sales in 4.8%, reaching USD$2.47 billion.
• Grupo México’s EBITDA was USD$4.94 billion, 1.2% higher than the
previous year.
• The Mining Division achieved an EBITDA of USD$3.56 billion, in line
with that of the previous year.
• The Transportation Division obtained an EBITDA of USD$1.09 billion,
increasing 8.2% compared to 2018.
• Despite the loss of income in the Energy and Construction
businesses of the Infrastructure Division, we secured an EBITDA
of USD$272 million.
The Group’s consolidated net profit was USD$1.76 billion during 2019, 54% high-
er than 2018, due to a capital gain in treasury shares in Triple A companies of
USD$426 million.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
12
//
We reforested
the La Boquera
forest in
Huixquilucan,
State of
Mexico.
13
ANNUAL REPORT 2019
Grupo México
(Thousands of USD)
January - December
Variation
2019
2018
Thousands of USD
Sales
Cost of Sales
10,680,649
10,494,796
185,853
5,514,115
5,418,724
95,391
Operating income
3,479,725
3,590,328
(110,603)
EBITDA
4,948,234
4,888,914
59,320
%
1.8
1.8
(3.1)
1.2
EBITDA margin (%)
46.3%
46.6%
Net profit
1,766,249
1,147,005
619,244
54.0
Profit margin (%)
Investments / Capex
Employees
16.5%
10.9%
1,125,878
1,686,280
(560,402)
(33.2)
30,263
31,596
(1,306)
(4.1)
Product
Volume in Tons
Thousands of USD$
2018
2019
Var %
2018
2019
Var %
Division Mining
Copper
Silver (thousands of ounces)
Molybdenum
Zinc
Sulfuric acid
Gold (ounces)
Lead
Others
1,001,388
1,094,252
19,477
22,055
20,739
26,849
106,483
103,668
1,990,185
1,832,662
55,938
22,983
49,163
21,020
9
6
22
(3)
(8)
(12)
(9)
$ 6,481,696 $ 6,522,655
299,042
318,760
509,864
549,369
1
7
8
329,923
277,779 (16)
119,731
169,239
41
70,348
67,521
(4)
52,380
41,670 (20)
20,905
18,614
(11)
Transportation Division
1,962,215
1,887,766
(4)*
2,317,001
2,427,201
5
Infrastructure Division
Total sales
* Loaded cars (thousands of units)
293,906
287,840
(2)
$10,494,796 $10,680,649
2
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
14
Total Sales
(Millions of USD)
1
8
6
0
1
,
5
9
4
0
1
,
6
8
7
9
,
3
7
1
,
8
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2016
2017
2018
2019
Share by Region and Country
in Sales*
7%
Latin America
16%
Asia
19%
Europe
* Includes all three divisions and is over total consolidated sales.
36%
Mexico
22%
United States
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
15
Capital investments
During 2019 we invested USD$1,126 million in the three Divisions. After completing
In the Mining Division we invested USD$758 million this year for the conclusion
our expansion programs at Buenavista del Cobre, Sonora and Toquepala, Peru for
of the expansion projects in Cananea, Sonora and Toquepala, Peru, as well as other
USD$3.5 billion and USD$1.3 billion respectively, we have embarked on our next
projects to achieve greater operational efficiency.
stage of growth with the Buenavista Zinc, Pilares and El Pilar projects in Sonora.
Aerial view of Buenavista del Cobre, Sonora, Mexico. //
We have invested more than
USD$8.5 billion in the last
five years.
In the Transportation Division we allocated USD$343 million to investment
projects, mainly efficiency and expansion projects, to further enhance the quality
of our service.
In the Infrastructure Division we made investments worth USD$135 million in
the Fenicias wind farm in Nuevo León and in the Salamanca-León highway and the
Silao Bypass, Guanajuato.*
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
16
* The Infrastructure CAPEX includes the CAPEX of the highway and the Fenicias Wind Farm.
17
ANNUAL REPORT 2019
Consolidated debt
Grupo México’s share performance
As of December 31, 2019, Grupo México’s total consolidated debt was USD$9,377,
Grupo México has become an increasingly competitive company in the industries
with a balance of cash, cash equivalents and restricted cash of USD$2,543 million,
where it participates in. This year we worked to secure the sustained growth that
equivalent to a net debt of USD$6,834 million.
has always characterized us, striving to increase our productivity and control costs,
in order to generate greater value for our shareholders.
81% of the contracted debt is denominated in USD dollars and 19% in Mexican
pesos; 96% of it is at a fixed rate. Issues in capital markets carried out during 2019
During 2019, our share performed very well on the Mexican Stock Exchange (BMV),
have improved the payment schedule and the debt rate.
with 20% of increase in price approximately.
Maturities Grupo México as of December 31, 2019
Grupo México Share Price January - December 2019
0
0
5
,
1
0
0
2
1 1
1
1
,
1
,
6
1
0
,
1
0
0
0
,
1
3
9
5
9
0
5
3
4
5
8
6
7
6
7
3
1
7
1
6
4
1
0
3
1
5
0
1
7
4
6
5
0
6
4
6
5
1
6
1
7
1
8
1
9
1
9
1
65.00
60.00
55.00
51.89
50.00
45.00
D
40.00
35.00
41.01
D
D
42.42
+
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
2019
Feb
Mar
Abr
May
Jun
Jul
Ago
Sep
Oct
Nov
Dic
Mining Division
Transportation Division
Infrastructure Division
1,700
1,500
1.300
1,100
900
700
500
300
100
-100
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
18
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
19
//
Mineral processing plants in La Caridad, Sonora, Mexico.
Dividend payment for 7 quarters
MXN$0.80
20
Payment of dividends per share
We have maintained the dividend payment of MXN$0.80 per share for seven
quarters, this dividend implies an annualized dividend yield of 6.56%, one of the
highest in the BMV.
6.0% 6.8%
7.1%
5.7% 7.4% 6.7% 6.4%
.
0
8
0
$
.
0
8
0
$
.
0
8
0
$
.
0
8
0
$
.
0
8
0
$
.
0
8
0
$
.
0
8
0
$
4.5%
0
6
0
$
.
3.1%
.
0
5
0
$
2.7%
0
4
0
$
.
2.3% 2.0%
.
0
3
0
$
.
0
3
0
$
1T
2T
3T
4T
1T
2T
3T
4T
1T
2T
3T
4T
2017
Dividend Yield
2018
2019
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
21
ANNUAL REPORT 2019
//
Chepe Express, Chihuahua, Mexico.
89% of our income is in
US dollars and only 47% of
our costs are in that currency.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
22
Natural dollar hedge
Despite of the fact that 2019 was a year of high volatility in the foreign exchange
market, in Grupo México we are in a privileged position to deal with exchange rate
fluctuations.
Our income is highly dollarized thanks to being from commodities (metals and
energy); likewise a large part of the freight we handle is international. As a result,
our company has a natural dollar hedge, with a positive impact on results due to
the current appreciation of the US dollar.
Sales
Cost of sales
USD
MXN
USD
MXN
Soles
Mining Division
Transportation Division
Infrastructure Division
Weighted Total
100%
42%
59%
89%
-
58%
41%
11%
67%
30%
35%
47%
33%
70%
65%
44%
11%
9%
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
23
//
Combined
cycle power
generation plant,
La Caridad,
Sonora, Mexico.
Credit profile
Rating agencies highlighted Grupo México’s position as one of the largest copper producers worldwide, with low
costs, integrated operations and long-term reserves. They also noted its sustained growth profile and strategic
synergies within its three Divisions, with a solid balance.
They emphasized the cash flow generation of the Transportation Division, which mitigates the Mining Division’s
exposure to cyclical prices in the copper industry. In turn, they highlighted the generation of operating cash flow,
which allows us to meet our investment needs and transfer value to our shareholders.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
24
During 2019, the risk
rating agencies Fitch
and S&P confirmed the
Group’s credit rating
at BBB+, with a stable
outlook.
25
ANNUAL REPORT 2019
Grupo México, S.A.B. de C.V.
Outstanding data
2016
2017
2018
2019
Real. Var. %
2019/2018
2016
2017
2018
2019
Real Var. %
2019/2018
Volume Sold*
Cash Flow (millions of USD)
Copper
Zinc
Silver
Gold
(tons)
(tons)
1,032,347
1,024,952
1,001,388
1,094,252
105,415
107,572
106,483
103,668
(thousands of ounces)
17,255
16,843
19,477
20,739
(ounces)
165,587
54,223
55,938
49,163
Molybdenum
(tons)
21,731
21,358
22,055
26,849
Average Price (USD)
Copper
(COMEX)
(pound)
Zinc
(LME)
(ounce)
Silver
(COMEX)
(ounce)
2.20
0.95
17.10
2.80
1.31
17.03
2.93
1.33
15.65
2.72
1.16
16.16
Oro
(LF)
(ounce)
1,248.34
1,257.13
1,269.14
1,392.17
9
(3)*
6
(12)*
(22)*
(7)*
(13)*
3
10
Molybdenum
(MW DEALER OXIDE)
(pound)
6.42
8.21
11.94
11.35
(5)*
Transportation Division Statistics
Net ton kilometers
(millions of tons)
54,445
59,078
64,809
65,444
Loaded cars
(thousands of units)
1,423.8
1,729.8
1,962.2
1,887.8
Balance (millions of USD)
Current Assets
Fixed Assets
Total Assets
Banking Liabilities
Total Liabilities
4,104
4,859
13,922
16,786
4,789
17,146
21,945
25,745
25,805
7,332
10,147
8,550
12,185
8,384
12,196
Total Shareholder Capital
11,798
13,560
13,609
5,908
16,950
27,566
9,377
13,320
14,246
Balance (millions of USD)
Total sales
Cost of Sales
Taxes Incurred
EBITDA
Net profit
8,173
4,601
883
3,366
1,102
9,786
5,010
1,591
4,531
1,522
10,495
10,681
5,149
983
4,889
1,147
5,514
1,271
4,948
1,766
1
(4)*
23
(1)*
7
12
9
5
2
2
29
1
54
Expressed in accordance with Generally Accepted Accounting Principles in the USA
* Throughout this report, tons are metric and ounces are troy.
** Referred to 7,785,000,000 shares.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
26
Generated by Operations
1,762
2,821
3,008
2,613
(12)*
Dividends Paid
Taxes Paid
Applied in Financial Activities
Used in Investments
Flow after investments and
financial activities
Data per share **
(292)*
(673)*
(1,352)*
(1,591)*
879
(212)*
1,239
1,669
1,716
(186)*
1,843
878
18
7
572
(1,590)*
(1,500)*
(1,686)*
(1,126)*
(33)*
198
422
(290)*
1,056
464
Total Shares in Circulation
(Thousands)
7,785,000
7,785,000
7,785,000
7,785,000
EBITDA per Share
Flow per Share
Earnings per Share
Value in books
Financial ratios
Operating margin
EBITDA margin
Current Assets to
Current Liabilities
(times)
Total Liabilities to Total Assets
Debt / Total Shareholder Capital + Debt
EBITDA / Interest
(times)
0.43
0.23
0.14
1.32
28%
41%
2.8
46%
38%
7.37
0.58
0.36
0.20
1.49
34%
46%
2.0
47%
39%
8.91
0.63
0.45
0.15
1.48
34%
47%
2.6
47%
38%
9.85
0.64
0.34
0.23
1.54
33%
46%
2.6
48%
40%
8.96
Employees
30,657
30,477
31,596
30,263
Annual inflation
Mexico
United States
Peru
3%
2%
3%
Exchange Rate at the End of Each Year
Mexico (Mexican pesos / US dollar)
Peru (soles / US dollar)
Average exchange rate
Mexico (Mexican pesos / US dollar)
Peru (soles / US dollar)
20.66
3.40
18.66
3.38
7%
2%
2%
19.74
3.25
18.93
3.26
5%
2%
2%
19.68
3.37
19.24
3.28
3%
2%
2%
18.85
3.36
19.26
3.34
–
1
26
54
4
(3)*
(1)*
3
2
4
(9)*
(4)*
(40)*
–
–
(4)*
(0)*
0
2
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
27
WE WORK THE
WEALTH
OF THE EARTH
//
Open pit mine in La Caridad,
Sonora, Mexico.
Mining Division
January - December
Variation
2019
2018
USD thousand
%
Sales
Cost of Sales
7,965,608
7,883,888
81,720
4,278,189
4,173,165
105,024
Operating income
2,610,338
2,747,996
(137,658)
EBITDA
3,567,126
3,559,308
7,818
1.0
2.5
(5.0)
0.2
EBITDA margin (%)
44.8%
45.1%
Net profit
1,355,681
915,247
440,434
48.1
Profit margin (%)
17.0%
11.6%
Investments / Capex
757,695
1,264,588
(506,893)
(40.1)
Thousands of US dollars
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
3030
Buenavista del Cobre Mine,
Cananea, Sonora, Mexico.
//
OVER
1,100,000
TONS OF COPPER
Produced in 2019
Grupo México’s Mining Division is represented by its subsidiary AMC, whose main
subsidiaries are Southern Copper Corporation (SCC) in Mexico and Peru, ASARCO in
the United States and Minera los Frailes in Spain. We are the copper producer with the
highest level of organic growth.
• Leader in copper mining
• Largest copper reserves in the world
• Lowest production costs globally
• Best portfolio of growth projects with diversified assets
Over the years, we have continuously and consistently invested to increase and
streamline our operations while maintaining a sound financial structure and a
significant portfolio of organic growth projects.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
33
6
Texas
5
Arizona
1
2
3
4
New Mexico
Baja
California
8
7
Sonora
9
10
11
12 13
15
16
17
Chihuahua
14
18
19
20
22
21
Zacatecas
23
24
S.L. Potosí
Gulf of
Mexico
Pacific
Ocean
Michoacán
25
26
CDMX
27
Guerrero
1
2
3
4
5
6
7
8
9
Ray
Mine and plant
10
Buenavista del Cobre
Mine and plant
19
Central Workshop
Plant
Hayden
Plant
Mission
Mine
Tucson Offices
Corporate Offices
Silver Bell
Mine and plant
Amarillo
Plant
11
Metallurgical Complex
Plant
20
Santa Bárbara
Underground polymetallic mine
12
La Caridad
Mine and plant Metallurgical Complex
21
Chalchihuites
Future underground mine project
13
Pilares
Future copper project
22
San Martín
Underground polymetallic mine
14
Santa Eulalia
Underground polymetallic mine
23
Charcas
Underground polymetallic mine
15
Buenavista Zinc
Mine Future project
24
Zinc Electrolytic Refinery
Plant
El Pilar
Future copper and plant project
16
Hermosillo Offices
Corporate Offices
25
Angangueo
Future underground mine project
El Arco
Future project
Lime Plant
Mine and plant
Key
17
Guaymas Terminal
Plant
18
Chihuahua Offices
Corporate Offices
26
Mexico Offices
Corporate Offices 7
27
Taxco
Underground polymetallic mine
Mines
Plants
Office
Mine + Plant
Future mining projects
*ESDE (Electrodepositioning copper cathode plant)
Mining Division - Grupo México
Geographic Location
Spain
Minera Los Frailes
Future project
Andalusia
It comprises 14 mines, three metallurgical complexes, as well as exploration
projects in Mexico, Peru, the United States, Spain, Chile, Ecuador and Argentina.
1
2
3
4
5
6
7
8
9
Chaucha
Future copper project
Tantahuatay
Gold mine
Lima Offices
Corporate Offices
Los Chancas
Future copper project
Tía María
Future ESDE copper project
Cuajone
Copper mine
Toquepala
ESDE copper mine and plant
Ilo
Metallurgical plant complex
Catanave
Future project
Ecuador
1
2
Peru
3
4
5
6
7
8
9
Chile
Argentina
Products
During 2019, the average price of copper was USD$ 2.72/
lb, 7.17% lower than the 2018 average (USD$2.93/lb).
We achieved an increase in our production of 11.69%
with respect to the previous year, reaching 1,119,246
tons. This was mainly due to the expansion of the second
concentrator in Toquepala, Peru.
In 2019, copper
sales represented
82% of AMC’s total
revenues and 61% of
Grupo México’s total
revenues.
We estimate that by 2024 we will produce more
than 1,400,000 tons with the entry into operation of
our growth projects in Mexico: Pilares, El Pilar and
Buenavista Zinc, and in Peru: Tía María.
In 2019, we reopened the San Martín mine in Zacatecas,
Mexico, which had been on strike for more than eight
years. Once it was opened, it produced 1,335 tons of
copper, 5,837 tons of zinc and 1.2 million ounces of silver.
36
Toqepala Concentrator Expansion, Peru. //
COPPER
Use
• Industries related to electrical power, telecommunications,
construction, transportation, industrial machinery,
medical equipment, infrastructure, automotive
industry, computers and cell phones.
• As a bactericide, it is used in drinking water and
air conditioning pipes.
• Alloyed with tin it forms bronze, for the manufacture
of consumer products.
• Manufacture of fungicides and other chemical
products.
Properties: Bactericidal, electrical conductivity, o
corrosion resistance and excellent malleability and ductility.
Average price 2019: USD$2.72/lb
Increase in production vs 2018: 11.69%
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
Copper Production
Thousands of tons
.
0
0
3
8
8
.
1
1
8
.
4
2
2
8
.
2
0
3
9
.
4
4
2
2
.
9
8
9
1
.
7
9
7
1
1
.
9
8
1
2016
2017
2018
2019
Concentrators
ESDES
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
37
ANNUAL REPORT 2019
MOLYBDENUM
Use
• Manufacture of stainless and special steels. Catalyst in the oil and gas industry,
as well as in the aviation industry.
• Materials for the aeronautical industry. Fertilizers, dyes, enamels, reagents
and lubricants.
Properties: Provides greater hardness to alloys and resistance to corrosion.
Average price 2019: USD$11.35/lb
Increase in production vs 2018: 22.3%
ZINC
Use
• Industrial applications and products, galvanizing mostly.
• Manufacture of pressure molded parts, as well as bronzes.
• Base for obtaining zinc oxide, used in the manufacture of tires, paints, and
livestock feed, among other products.
Properties: Low melting point, malleability and excellent resistance.
Average price 2019: USD$1.16/lb
Increase in production vs 2018: 4.4%
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
38
Buenavista del Cobre mining trucks,
Cananea, Sonora, Mexico.
//
39
ANNUAL REPORT 2019
//
Silver bars.
//
Gold bars extracted from La Caridad, Sonora, Mexico.
Precious metals
GOLD
Use
• Jewelry and industrial applications.
• Manufacture of electronic products such as telephones, cell phones, global
positioning system (GPS) units, televisions and computers, etc.
Properties: Good conductor of heat and electricity.
Average price 2019: USD$1,392.17/oz
Increase in production vs 2018: -2.1%
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
40
SILVER
Use
• Manufacture of electrical, medical, electronic and photographic products.
• To a lesser extent in welding alloys, jewelry, minting of coins, silverware and
catalysts.
Properties: Thermal and electrical conductivity.
Average price 2019: USD$16.16/oz
Increase in production vs 2018: 16.5%
41
ANNUAL REPORT 2019
Leadership in Operating Cost and
CASH-COST
We are the mining company with the lowest cash cost worldwide, with
USD$1.07 per pound of copper after by-products.
We completed the expansion of the second concentrator in Toquepala in Peru,
adding 100,000 tons of copper per year to reach a total production of 258,000
tons per year in this mining unit. This represented an investment of USD$1.3 billion.
Sales by the Mining Division in 2019 were USD$7.96 billion and EBITDA was
USD$3.56 billion, equivalent to 45% of sales.
Sales of the Mining Division in 2019 in billions of USD
$7.96
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
43
//
Concentrator, Toquepala, Peru.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
42
Financing
In September 2019, Minera México SA de CV issued a debt bond for USD$1 billion
at a fixed interest rate. This debt matures in 2050 at an annual rate of 4.5%. During
the placement campaign, 154 purchase orders for USD$3.7 billion were received,
a level of demand 4.6 times the offer.
The funds from the issue will provide the company with additional liquidity to
finance three expansion programs in Sonora, Mexico:
• Zinc Project in Buenavista (Investment of USD$413 million)
• Pilares Project (USD$159 million investment)
• El Pilar Project (USD$130 million investment)
These projects, along with other investments in Mexico, will increase copper produc-
tion at our Mexican operations by 16%, and zinc production by 93%.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
44
Cuajone Mine, Moquegua, Peru. //
45
ANNUAL REPORT 2019
Construction of Concentrator II in
Buenavista del Cobre, Sonora, Mexico.
//
Mining Production Summary *
Copper
Distribution 2019
Tons
2016
2017
2018
2019
Zinc
Distribution 2019
Tons
2016
2017
2018
2019
Concentrates
3,341,903
3,285,846
3,361,435
3,358,672
Concentrates
139,697
129,230
135,322
Content in concentrates
830,047
811,771
822,395
930,156
Content in concentrates
73,984
68,665
70,778
146,661
73,922
Content ESDES (Cathodic)
224,366
198,859
179,666
189,090
Refineries
106,093
104,402
107,536
104,977
Total Mine Content
Foundry Content
Refineries
1,054,413
1,010,630
1,002,061
1,119,246
716,541
742,620
722,071
683,698
625,924
643,122
630,390
582,736
Refined (Refineries + ESDES)
850,290
841,981
810,056
771,826
Refined turned into wire rod
295,800
269,834
266,180
244,070
Refined turned into sheeting
11,202
12,431
7,790
6,050
* Figures expressed in metric tons except where indicated.
Lead
Distribution 2019
Tons
Concentrates
Content in concentrates
2016
2017
2018
2019
40,737
24,385
33,581
20,246
39,077
22,081
43,843
22,567
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
47
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
46
//
Buenavista del Cobre, Sonora, Mexico.
Gold
Distribution 2019
Tons
2016
2017
2018
2019
Contained in Concentrates
(ounces)
68,651
Refineries
(ounces)
164,864
66,863
50,835
70,196
49,731
68,698
45,690
Silver
Distribution 2019
Tons
2016
2017
2018
2019
Contained in Concentrates
(ounces)
17,855,211
17,657,006
18,303,215
21,315,505
Refineries
(ounces)
15,195,756
13,688,184
13,582,751
12,587,711
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
48
Molybdenum
Distribution 2019
Tons
2016
2017
2018
2019
Content in concentrates
21,736
21,328
21,985
26,886
Other products
Distribution 2019
Tons
Coal
Coke
Sulfuric acid
Cadmium
Lime
2016
2017
2018
2019
194,285
132,688
108,605
52,661
71,701
45,383
–
–
2,691,371
2,717,210
2,716,985
2,612,097
664
608
632
609
271,560
275,683
254,596
274,056
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
49
Projects started in
Mexico in 2019
PROJECT
INVESTMENT*
PROJECT PROGRESS
EXPECTED RESULTS
· Environmental permits granted.
· Basic engineering
completed, working on
detailed engineering. Basic
engineering completed,
working on detailed
engineering.
· Environmental permits granted.
· Road construction for mining
trucks started.
· Construction of pilot plant
completed.
· Environmental permits granted.
· This will double the Group’s zinc production
capacity to 160,000 tons.
· 490 direct and 1,470 indirect jobs.
· It will significantly improve the total mineral
grade (combining the expected 16% of Pilares
with the 84% of La Caridad).
· Copper oxide mineralization with possible
reserves of 325 million tons with an average
copper grade of 0.287%.
Buenavista
Zinc
$413
Pilares
$159
El Pilar
$310
*Millions of USD
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
50
Pilares,
Sonora, Mexico.
//
Baja California
Projects planned
for 2020-2027
El Pilar
Buenavista del Zinc
Buenavista del Cobre
La Caridad
Esqueda
El Arco
Pilares
Guaymas
Conexión submarina
Sonora
Baja California
North copper circuit
Baja California and Sonora
Between 2020 And 2027 Grupo México plans to invest in
Sonora and Baja California a total of USD$8,893 million.
Benefits:
· Total jobs
· Annual sales
· Annual additional taxes
· Refined copper production
· Percentage of national copper production
· Zinc production
42,721
USD$7,142 million
USD$1,235 million
874,000 tons per year
89%
80,000 tons per year
Power line
Mine
Smelter and refinery
Maritime terminal
Combined cycle power
generation plant
52
Projects in the United States
Asarco, Arizona
Asarco reached a production of 125,400 tons of copper, 6% more than in 2018,
and the cost of production fell by 9% compared to the previous year.
Due to the unionized workers’ strike, the Hayden unit in Arizona and Amarillo unit
in Texas were temporarily closed. The rest of the units in Arizona - Mission, Silver
Bell and Ray - are operating at full capacity due to the decision of some workers to
continue working, as well as new hirings.
We reiterate our commitment to guarantee a long-term sustainable operation in
the US that generates greater value for our shareholders, our partners, and the
economy of Arizona and Texas through competitive jobs and direct participation
with local communities.
Aerial view of Ray mine, Arizona, United States. //
BajaCaliforniaSonoraSinaloaChihuahuaBajaCaliforniaSurANNUAL REPORT 2019
Projects in Peru
1
2
3
4
5
6
7
8
Tía María
Project
Los Chancas
Project
Michiquillay
Gold mine
Lima
Corporate Offices
Tantahuatay
Gold mine
Cuajone
Mine
Toquepala
Mine
Ilo
Metallurgical Complex
Key
Peru
5
3
4
2
1
6
7
Gold mine
and project
Corporate
Offices
Mines and metallurgical
complexes
8
We are currently working on
several copper projects in Peru,
with an investment of more than
USD$7.33 billion.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
54
View of the pit in the Toquepala mine, Peru. //
PROJECT
INVESTMENT*
PROJECT PROGRESS
RESULTS
Tía María
$1,400
Awaiting authorization
Los Chancas
$2,800
Environmental assessments
120,000 tons per year of ESDE
metallic copper
100,000 tons of copper per year
Michiquillay
$3,138
In process of planning
Total
$7,338
*Millions of USD
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
55
Projects in Spain
Explorations
Location: Aznalcóllar Municipality, Seville province, Andalusia
Project progress:
• The pre-feasibility study was concluded with a positive result so the feasibility
study began.
• Detailed engineering was undertaken.
• Work was carried out in the second exploration campaign to evaluate a
second mineral body (Cuchichón Body) discovered 600 meters south of
the Los Frailes body, which could contain mineral resources of around 5.5
Mt of mineral.
In addition to exploration and drilling programs at existing mines, we are working
to locate deposits in other locations. Some of our most important exploration
projects are:
MEXICO
Chalchihuites
Bella Unión (La Caridad)
• Skarn-type deposit in Zacatecas near the San
• Gap-type satellite deposit with copper and
Martín mining unit, which restarted operations
molybdenum mineralization located less than
in 2019.
a kilometer from the southern limit of the La
• Drilling programs carried out between 1980 and
Caridad pit.
2014 identified 12.6 million tons of ore with an
• In 2016 and 2017, we carried out a 28,217
• The environmental evaluations were prepared, and are currently being
average silver content of 110 grams per ton,
meter drilling program to define the geometry of
Zaragoza
Madrid
Barcelona
processed.
Aznalcóllar
Seville
56
2.66% zinc, 0.37% lead and 0.67% copper.
the deposit. In these years, we identified 36.2
• The results to date indicate that the mineralization
million tons of mineralized material with an
consists of a complex mixture of oxides and
average of 0.44% copper content and 0.05%
sulfides of silver, lead and zinc that requires
molybdenum. In May 2018, we completed the
additional metallurgical research.
drilling of this project, adding 46,400 meters
• In 2017 and 2018 we carried out a further
distributed over 113 test holes.
21,000 meters of drilling to continue with the
• In 2019 the final reserves estimate was made
metallurgical research. In total 48 test holes
and in 2020, the mining plan will continue.
were drilled.
• In 2019, we analyzed 5,000 meters of core
samples from the drilling program and carried
out a 498-kilometer study of aerial hyperspectral
imaging to survey the geology of the entire
Chalchihuites mining district.
• In 2020 we will continue with the metallurgical
research.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
57
ANNUAL REPORT 2019
PERU
Los Chancas, Apurímac
Other prospects
• Copper and molybdenum porphyry deposit
• In 2019, on the South Coast, we concluded a
located in the Apurímac department in southern
13,000-meter drilling program, exploring different
Peru.
geochemical and geophysical anomalies present
• 545 million tons of mineralized rock with a
in the project. The results obtained indicate a
copper content of 0.59%, 0.04% molybdenum
Iron-Copper system with mainly disseminated
and 0.039 grams of gold per ton.
iron mineralization and low copper content.
• 181 million tons of leached rock mineralized with
• By 2020, we plan to carry out a 10,000 meter
0.357% copper.
drilling program at various prospects that have
evidence of copper porphyry located mainly on
Michiquillay, Cajamarca
the southern coast of Peru.
• Copper porphyry deposit located in the La
Encañada district, province and department
of Cajamarca, in northern Peru.
• In 2019 we developed social programs in the
communities in the area where the project
is located and we started the Semi-Detailed
Environmental Impact Study. This environmental
instrument will allow us to begin a drilling program
in late 2020 to verify and update the estimated
mineral resources.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
58
//
Aerial view of
Michiquillay,
Cajamarca, Peru.
59
ANNUAL REPORT 2019
CHILE
Baquedano Project
ECUADOR
Copper Route Project
ARGENTINA
Caldera Project
Other prospects
• It is located in the Region and province of
• Located west of the city of Cuenca and south of
• Located in the Province of Río Negro formed by
• In 2020, we will carry out exploration campaigns
Antofagasta, the prospect is of the porphyry
Guayaquil. The mineralization is characteristic of
the areas Cerro la Mina, Tanque Negro and Cerro
of 3,500 meters in the La Hoyada prospect (Cu)
type of copper and in the Atacama desert.
a copper and molybdenum porphyry system that
Abanico. The first two correspond to a Gold-Silver
and 1,500 meters in the Esperanza prospect
has been explored since 2014.
(Au-Ag) epithermal system and the latter to a
(Au-Ag) located in the provinces of Catamarca
High Voltage and Transit
• To date 79,900 meters of diamond drilling has
porphyry type system, in 2019 2,530 meters
and Río Negro respectively.
• Located in the province of Antofagasta and
been completed.
were drilled.
Tocopilla, Antofagasta Region.
• In October 2019, the infill drilling program aimed
• Detailed geological mapping work is scheduled
• With evidences of porphyry copper type
at reclassifying existing mineral resources was
for 2020 in order to design a diamond drilling
mineralization, 2,613 and 2,003 meters
restarted, with plans to continue it during 2020,
program in the different areas.
respectively of diamond drilling were carried out,
carrying out 55,000 meters, and commencing
determining in both cases that the mineralization
the feasibility study in the last quarter.
Cañadón del Moro Project
was limited to thin veins with anomalous copper
mineralization of up to 0.3%, which in terms of
volume do not meet the objectives set.
Other prospects
• Exploration campaigns are scheduled for
2020 that include diamond drilling in the
recognized strip of Cretaceous Porphyry
Copper-Gold (Cu-Au) which presents good
economic potential, with plans to drill 3
test holes with a total of 5,000 meters of
diamond drilling.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
60
• Low sulphidation epithermal deposit, with veins
of kilometer lengths amounting to a total of 7.6
km. Located in the Province of Río Negro.
• To date we have completed 4,944 meters of
diamond drilling, identifying an epithermal silver
deposit with a potential economic interest with
grades of 9.4 Oz/Ag.
• In 2020 we will continue with the 2,000-meter
diamond drill program aimed at exploring
prospective and potential ore.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
61
WE
ARE THE FORCE
THAT MOVES
MEXICO
//
AC locomotive,
Hidalgo, Mexico.
Transportation Division
Grupo México Transportes (GMXT)
Thousands of USD
January - December
Variation
2019
2018
thousands of USD
Vol. Transported (Million tons / km)
65,444
64,809
635
Railcars moved
Sales
Cost of Sales
Operating income
EBITDA
1,887,766
1,962,214
(74,448)
2,473,004 2,360,317
112,687
1,326,497
1,356,712
(30,215)
693,063
638,729
54,334
1,096,148
1,013,161
82,987
%
1.0
(3.8)
4.8
(2.2)
8.5
8.2
EBITDA margin (%)
44.3%
42.9%
Net profit
312,450
362,346
(49,896)
(13.8)
Profit margin (%)
Investments / Capex
12.6%
15.4%
342,663
372,365
(29,702)
(8.0)
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
6464
Ferromex locomotive
and tank trucks.
//
OVER
11,000
KILOMETERS OF RAIL TRACK
We are the leading company in rail freight
transport with the greatest level of coverage
and connectivity
Grupo México’s Transportation Division is represented by its subsidiary GMéxico
Transportes, SAB de CV (GMXT). GMXT provides logistics and land freight
transportation solutions in a safe, efficient, reliable and sustainable way, which
contributes to strengthening connectivity and competitivity of the markets in
which we operate.
GMXT’s main subsidiaries are:
• Ferrocarril Mexicano, S. A. de C. V. (Ferromex)
• Ferrosur, S. A. de C. V. (Ferrosur)
• Florida East Coast (FEC)
• Texas Pacifico Transportation, LTD. (TXPF)
• Intermodal México, S. A. de C. V. (IMEX)
We have 11,136 kilometers of tracks in 24 states of Mexico, as well as in Florida
and Texas in the United States.
Our Class 1 Railroad connects with five border crossings with the United States,
and we provide services to nine ports in the Pacific Ocean and four more in the
Gulf of Mexico.
Coverage in 24 states of Mexico,
together they accumulate
86% of the GDP.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
67
UP
Mexicali
Pascualitos
UP
Nogales
BNSF /UP
El Paso
Cd. Juárez
Benjamín Hill
Hermosillo
Guaymas
BNSF / UP / KSC
Ft. Worth
Dallas
Comanche
Coleman
San Angelo J.C.T.
BNSF / FWWR
Ft. Stockton
Alpine
San Angelo
Texas
Ojinaga
Presidio
Chihuahua
Piedras Negras
BNSP / UP
Eagle Pass
Topolobampo
Sufragio
Cd. Frontera
Culiacán
Torreón
Paredón
R. Arizpe
Monterrey
Cd. Victoria
Mazatlán
Zacatecas
Aguascalientes
Tepic
Train ferry
Altamira
Tampico
CSX / NS
BNSF / CN / CSX / NS
Pensacola
Jacksonville
Alabama
Titusville
Florida
Orlando
Cañaveral
Tampa
West
Palm
Beach
Palm Beach
Everglades
Miami
Transportation Division - Grupo México
Geographic Location
Integration into the US and Canadian
rail system with 8 exchange points.
Silao
Celaya
Guadalajara
Pénjamo
Irapuato
Colima
Ajuno
Mexico
City
Veracruz
Coatzacoalcos
Manzanillo
Puebla
Sánchez
Key
Salina Cruz
Ferromex
Ferrosur
Texas Pacífico
Florida East Coast
Rights of Way
Access to the European
and Asian markets
through 13 ports where
we operate.
Our network is operated by more than 11,000
highly skilled employees.
Since we began operating the railroad in 1998, we have increased our cargo transportation capacity by 440%.
We have become a modern and efficient railroad network.
The railroad industry in Mexico has shown substantial improvements since privatization:
• Reconstruction of more than 85% of the rail network.
• Increase by more than 160% in haulage power.
• Volume transported doubled.
• Sustained growth in foreign trade rail traffic.
Rail market share in Mexico
18.8%
25.2%
81.2%
1999
GMXT market share in the railroad industry
74.8%
2017
GMXT 35%
GMXT 63%
TFM 65%
KSCM 37%
1999
2017
*
GMXT: Grupo México Transportes / TFM: Transportación Ferroviaria Mexicana / KSCM: Kansas City Southern Mexico
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
70
//
Grain train,
Sumidero,
Hidalgo, Mexico.
9
9
1
1
0
0
2
2
T
T
R
R
O
O
P
P
E
E
R
R
L
L
A
A
U
U
N
N
N
N
A
A
71
71
//
Tank cars, Torreón, Coahuila.
The railroad sector is essential to the economic activity of the countries where we
are present, since it is a crucial part of the development of productive chains in
the industrial sector, transporting a large proportion of vital goods and supplies.
In 2019 our sales were USD$2.473 million, 4.8% more than in 2018, driven
by the industrial, agricultural and automotive segments; we transported 65,444
million ton-kilometers and 1,887,766 cars. We achieved a record EBITDA of
USD$1,096 million with a margin of 44.3%, mainly due to the implementation
of operating efficiencies.
In the last quarter of 2018 we started re-engineering our Master Service Plan, in line
with principles of precise Railroad Operation, thanks to which we have managed to
improve the use of assets, free up capacity on the tracks and increase efficiencies.
This program is governed by six principles:
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
72
1. Increase train length
2. Increase the capacity of the railroad network
3. Increase the speed of trains
4. Reduce time spent in yards
5. Maximize the use of locomotives
6. Balance trains in both directions
We move more than 1.9 million
railcars each year.
Operational metrics
Train speed
(km/hr)
Time spent by railcars
in yards (hours)
Railcar speed*
(km/day)
+7.2%
38.22
35.66
-2.6%
27.3
28.1
+3.0%
324.9
334.6
2018
2019
2018
2019
2018
2019
Train length
(Kilometres)
Tons per train
Annual crews
+3.3%
1.813
1.755
+2.6%
6,031
5,879
144,340
-9.3%
130,984
2018
2019
2018
2019
2018
2019
* Kilometers traveled per day.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
73
Industries served
At GMXT we develop logistics solutions for the ground transportation of basic supplies
and finished goods. We serve all kinds of industries, which is why our business
portfolio is divided into nine subsegments: agricultural, intermodal, metals, minerals,
automotive, chemical, energy, industrial, and cement.
Agricultural
We supply basic grains to the livestock, poultry and pig industries, as well as raw
materials for mills, oil companies, and breweries. Additionally, we transport corn
syrup, starch and sugar, among other products.
Intermodal
We transport consumer products for the domestic and international market. We
have intermodal terminals in Guadalajara, Monterrey, Hermosillo, Chihuahua and
Ciudad Obregón. We serve the Valley of Mexico, Manzanillo, Veracruz, Altamira,
Coatzacoalcos and provide cross-border services via Piedras Negras, Ciudad Juárez
and Nogales. Our distribution network in Mexico is supported by Intermodal México,
a company that operates our terminals and provides integrated door-to-door services.
In Florida (FEC) we have terminals in Jacksonville, Titusville, Fort Pierce, Fort
Lauderdale and Miami, a service that is complemented by the trucking company
Raven Transport.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
75
//
Containers, Puerto Manzanillo, Colima, Mexico.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
74
In the Intermodal segment, we transport around 7.2 million products annually in
739,000
containers
Metals and minerals
We provide direct service to mines to transport raw materials in bulk, as well as
to manufacturers to transport finished products, serving various markets including
most notably the automotive and construction industries.
Automotive
Our network serves 12 of the largest automotive plants in Mexico, which represent
80% of the market. We have automotive terminals in Guadalajara, Monterrey,
Hermosillo and serve the ports of Veracruz, Mazatlán, Altamira and the cross-border
market via Piedras Negras, Ciudad Juárez, and Nogales. We have a 60% share in
Mexico’s automotive cargo exports. In Florida (FEC) we have terminals in Jacksonville,
Titusville and Miami (Central Florida).
Chemicals
We provide services to the inorganic chemical, synthetic resin, fertilizer and
petrochemical industries, among others.
Energy
We serve the markets for hydrocarbons, coke, diesel, gasoline, asphalt, LP gas,
among others, which offer significant growth potential given the new import routes
of refined products (diesel / gasoline) from the US to supply the country’s main
markets in: Valley of Mexico, Jalisco, Nuevo León, Chihuahua and others. This is
also the case with the import of LP gas from the US and Canada through block trains
to satisfy domestic and industrial demand in the states of Coahuila, Chihuahua,
Sinaloa and Sonora.
Industrial
This is our most diverse business segment with markets such as breweries, the
paper industry, white goods, machinery, new rail cars, milk, cleaning products, and
more. This segment refers to finished products.
Cement
We transport the product in bulk and packaged, serving the main cement companies
in Mexico and Florida.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
76
Automotive Terminal, Puebla, Mexico. //
Diversification of income
by products and services
Cement
4.5%
Others
6.3%
Metals
4.7%
Energy
7.2%
Chemicals
7.5%
Industrial
7.7%
Automotive
10.2%
Agricultural
26.5%
Intermodal
13.9%
Minerals
11.5%
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
77
California
Mexicali
Baja California
Arizona
New Mexico
Misisipi
Alabama
Georgia
Texas
Luisiana
Monterrey
Nuevo León
Silao
Guanajuato
Guadalajara
Jalisco
Mexico
City
Coatzacoalcos
Veracruz
Chihuahua
Chihuahua
Hermosillo
Sonora
Cd. Obregón
Sonora
Los Mochis
Sinaloa
Culiacán
Sinaloa
La Paz
Baja California Sur
Intermodal Services
Geographic Location
Access to the United States
and Canada markets through
5 border points
Key
Domestic
Cross border
Maritime
FEC
Intermodal Terminals
Service in 53’ containers
Cross Border Routes
Monterrey
Silao
Chihuahua
Hermosillo
Chicago
Los Angeles
Chicago
Memphis
Chicago
Detroit
Chicago
Detroit
Domestic Routes
Florida
West Palm
Beach
Fort
Lauderdale
Miami
Coatzacoalcos
CDMX
CDMX
Silao
Guadalajara
Coatzacoalcos
Culiacán
Cd. Obregón
Hermosillo
CDMX
Guadalajara
Culiacán
La Paz
Cd. Obregón
Hermosillo
Mexicali
Mexicali
Service in 40’ and 20’ containers
Maritime routes
FEC routes
Manzanillo
Altamira
Veracruz
Jacksonville
Jacksonville
Jacksonville
Jacksonville
Jacksonville
Miami
Fort Lauderdale
CDMX
Guadalajara
Silao
Monterrey
Monterrey
CDMX
Guadalajara
Silao
Titusville
Fort Pierce
Fort Lauderdale
Miami
West Palm Beach
Titusville
Titusville
We invested 14% of our
income in 2019.
//
Bulk Hoppers,
Culiacán, Sinaloa,
Mexico.
Our investment
Safety and occupational health
In 2019, we invested more than USD$343 million mainly to improve infrastructure,
both to increase our capacity and operational efficiency, and to gain access to new
high-potential markets.
Sustainable vision
We have set ourselves the goal of moving more with less. For this reason, we
commenced a shift to locomotives that use less-polluting fuels. We also replaced
equipment with higher efficiency and environmentally friendly models, and we
worked on optimizing our traffic flows to progressively reduce our carbon footprint.
Using technology, we are making our processes more efficient. We operate with
state-of-the-art systems in the intelligent handling of our locomotives, which allows,
among other things, better fuel management and greater journey security.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
80
In the Transportation Division we have three guiding principles: safety, service
and productivity.
Operational safety is a principle that prevails across our organization aimed at
achieving a zero accident operation. Our principle of service leads us to provide
a better service to our clients every day and to exceed their expectations. This
conviction is directly linked to the objective of being more productive, maximizing
the efficiency with which we carry out each process while protecting the safety
of our partners.
We make an ongoing commitment to focus resources and efforts to create safe
working environments for our 11,251 employees. As part of this strategy we have set
up Health and Safety Committees at different levels of the organization, bodies that
ensure improvements to all working areas. 11% of our staff have direct participation in
these committees through their representatives, who represent 100% of our partners.
Taking these measures together, we succeeded in reducing personnel accidents by
7% compared to the previous year.
81
ANNUAL REPORT 2019
We are one of the eight
Class 1 Railroads in North
America.
//
Grain train,
Manzanillo,
Colima, Mexico.
We have a program aimed at promoting joint responsibility in work safety, called
Zero Tolerance, which consists of work teams that compete to have the best results
in terms of low workplace accidents.
During 2019, 9,350 employees were trained in occupational health and safety
issues, amounting to more than 62,500 working hours.
We have 34 medical care units distributed throughout Mexico, which have 20 doctors
and 111 nurses.
As part of our ongoing urban-rail coexistence program, in 2019 we invested USD$5.4
million in the level crossing signaling program to make our operations safer.
We support municipalities in their responsibilities, by signaling horizontally and
vertically with electronic barriers to avoid vehicles and pedestrians crossing before
trains pass through, on crossings with the highest number of accidents.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
82
With the signaling program
introduced during 2019
we succeeded in reducing
accidents at level crossings
by 23%.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
83
//
Round house, Patio Guadalajara, Jalisco, Mexico.
We have 823 locomotives
and more than 26,300 rail cars.
84
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
85
ANNUAL REPORT 2019
WE ARE THE
EXPERIENCE AND
INNOVATION
OF THE FUTURE
//
“Tamaulipas” platform,
Mexico.
Infrastructure Division
Mexico Projects and Developments (MPD)
Thousands of USD
January - December
Variation
2019
2018
Thousands of USD
%
Sales
Cost of Sales
579,782
626,163
(46,381)
293,671
335,741
(42,070)
Operating income
151,404
160,696
EBITDA
272,389
277,091
(9,291)
(4,702)
(7.4)
(12.5)
(5.8)
(1.7)
EBITDA margin (%)
Income before Taxes
Taxes Incurred
Deferred tax
Net profit
47.0%
91,519
44.3%
99,194
46,604
48,938
(7,675)
(2,333)
(7.7)
(4.8)
249
1,639
(1,390)
(84.8)
44,666
48,594
(3,929)
(8.1)
Profit margin (%)
7.7%
7.8%
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
88
Combined cycle power generation plant,
La Caridad, Sonora, México.
//
1
Sonora
Infrastructure Division - Grupo México
Infrastructure Division
6
3
Nuevo León
1
2
3
Combined Cycle Plants
Nacozari, Sonora
Guadalajara Fuel Terminal
Project in development
Monterrey Fuel Terminal
Project in development
10
“Tamaulipas” platform,
11
“Veracruz” platform
12
“Sonora” platform
4
León-Salamanca Highway
13
“Tabasco” platform
5
Silao Bypass
14
“Zacatecas” platform
15
“Campeche” platform
16
“Chihuahua” platform
6
7
8
9
Fenicias Wind Farm
Project in development
El Retiro Wind Farm
Juchitán, Oaxaca
Onshore Drilling Base
Poza Rica, Veracruz
Offshore Drilling Base
Ciudad del Carmen, Campeche
Pacific Ocean
Guanajuato
5
4
8
2
Jalisco
Gulf of
Mexico
Key
Energy
Highway
Drilling Rig Mexico
Fuel Terminal
10
13
12
11
Tabasco
Veracruz
7
Oaxaca
16
15
14
9
Campeche
SALES
USD$580
MILLION
Infrastructure Division during 2019
The Infrastructure Division is represented by its subsidiary México
Proyectos y Desarrollos, S. A de CV (MPD), whose main subsidiaries are:
• México Compañía Constructora, SA de CV (MCC): Participates in
engineering and construction activities for infrastructure works.
• Grupo México Servicios de Ingeniería, SA de CV (GMSI): Develops
engineering projects, supervises construction activities.
• Controladora de Infraestructura Petrolera México, SA de CV (CIPM):
offers drilling services for oil and gas exploration and extraction, as well as related
value-added services such as foundations engineering and directional drilling.
• Controladora de Infraestructura Energética México, SA de CV (CIEM):
Generates energy through two combined cycle plants and two wind farms (one
in operation and the other under construction).
• Concesionaria de Infraestructura del Bajío, SA de CV (CIBSA): operates
and maintains a highway concession linking Salamanca and León, in Mexico.
• Concesionaria Autopista Silao, SA de CV (CAS): operates and maintains
the Silao Bypass highway concession.
• Grupo México Controladora de Combustibles, SA de CV (GMCC):
develops fuel transfer and storage terminals.
The EBITDA for the Division was
USD$272 million.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
93
In 2019, the Infrastructure Division
made investments of
USD$135 million.
The sales of the Infrastructure Division were USD$580 million in 2019, 7% less
than in 2018, mainly due to the reduction in the price of the gas used to generate
electrical energy.
EBITDA was USD$272 million, which was due in part to the growth in our number
of oil platforms (from five to six teams) in operation and to the increase in efficiency
practically across all our business units.
In 2019, the Infrastructure Division invested USD$135 million, of which:
• USD$50 million was earmarked for the acquisition of the new Fenicias wind
farm in the north of the country (total investment USD$250 million), which is
expected to start operating by the first quarter of 2021.
• USD$60 million were allocated to our highway projects (Salamanca-León and
Silao Bypass).
“Tabasco” platform, Mexico. //
Oil and gas
CONTROLADORA DE INFRAESTRUCTURA PETROLERA MÉXICO, SA DE CV (CIPM)
In 2019, Controladora de Infraestructura Petrolera México had revenues of USD$174
• USD$3 million of initial investment will launch the project of our fuel storage
million and an EBITDA of USD$88 million, which represents an increase of 25% and
terminals. The remainder of this investment accounts for the CAPEX for the
29% compared to the previous year.
division’s different business lines.
Additionally, in 2020, USD$412 million will be invested; USD$193 million for the
Marine drilling
new Fenicias wind farm, USD$71 for our highway projects, USD$95 million in fuel
The year closed with six operating platforms (Campeche, Tabasco, Chihuahua,
storage terminal projects at different strategic points in Mexico, and the remainder
Zacatecas, Veracruz and Tamaulipas platforms). The Zacatecas platform restarted
as operational CAPEX for the division’s different business lines.
activities in April 2019 after having been suspended since November 2016.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
94
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
95
Operational efficiency of platforms in 2019
99%
The weighted operating efficiency of the platforms during 2019 was 99%.
• Campeche platform had a productivity of 98.9%. It has a contract in place
until August 2021.
• Tabasco platform had a productivity of 99.2%. It has a contract in place until
October 2022.
• Chihuahua platform had a productivity of 98.1%. It has a contract in place
until November 2020.
• Zacatecas platform restarted operations on April 7, 2019 and had a
productivity of 99.1%. It has a contract in place until May 2020.
• Veracruz modular platform had a productivity of 99.6%, the best operating
performance of all our platforms. It has a contract in place until July 2021.
• Tamaulipas modular platform had a productivity of 98.6%. It has a contract
in place until May 2024.
Onshore Drilling
During 2019, a land drilling contract was obtained for geothermal wells in the San
Pedro Dome, located in Nayarit, with a private company that generates electricity
using steam generated from the boreholes.
1. A further extension to its contract with PEMEX is being sought.
2. Work is being done on an extension, which would take the team until at least 2021.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
96
Energy
CONTROLADORA DE INFRAESTRUCTURA ENERGÉTICA MÉXICO, S. A. DE C. V. (CIEM)
During 2019, CIEM recorded a drop in its production due to lower consumption
by our customers and low sales prices in the Wholesale Electricity Market (MEM).
CIEM net sales in 2019 were USD$226 million and EBITDA was USD$117 million,
which represents a decrease of 13% and 6% respectively over the previous year.
Grupo México Energía is building the new Fenicias wind farm in the state of Nuevo
León, which will have a capacity of 168MW to supply electrical energy to our mining
and metallurgical operations at IMMSA.
MEXICO, ENERGY GENERATOR
We are
The generating plant decreased sales by 13% and production by 8%,
building the new
which is equivalent to a decrease of 282 GWh vs 2018, for a total
Fenicias wind farm
production of 3,450 GWh in 2019. This is a result of the fall in the price
in the state of
Nuevo León, with a
capacity of 168MW,
to supply
our operations.
of gas. Wholesale Electricity Market and from CFE.
The foregoing represented USD$209 million in total sales and an EBITDA
of USD$108 million.
97
ANNUAL REPORT 2019
El Retiro Wind Farm
The wind farm generated 161,181 MWh and sold USD$16.8 million, 10% lower
in both metrics compared to the previous year. EBITDA was USD$9.1 million, a
28% decrease from 2018. The decrease in sales and EBITDA was mainly due to
lower wind resources (-8%). The EBITDA margin in US dollars was impacted by a
strengthening in the exchange rate for 2019 vs. 2018.
In August 2019, the El Retiro Wind Farm became the first private park to receive
the Clean Industry certificate by PROFEPA, reaffirming our commitment to meet the
highest environmental standards in all our operations.
The wind farm generated
161,181 MWh* and had an income
of USD$16.8 million.
*MWh: megawatt-hour
//
Turbine in the Juchitán Wind Farm, Oaxaca, Mexico.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
99
Construction
MÉXICO COMPAÑÍA CONSTRUCTORA, SA DE CV (MCC)
In 2019, MCC recorded revenues of USD$128 million
and an EBITDA of USD$32 million. Revenues were
generated by works contracted during the year with
the Ministry of Communications and Transportation,
Buenavista del Cobre, Mexicana de Cobre and Ferromex.
Principal works
• For the railroad industry, the following works were
• We continue with the building work at Juchitán
completed. Reconfiguration of tracks in the Patio
Specialty Hospital, Oaxaca (92% complete),
Monterrey, Construction of the Monterrey, Nuevo
under development thanks to an agreement
León railroad bypass and the MF San Juan-Lobos
between the Ministry of Health, the Oaxaca State
Line. In addition, the company continues to work
Government and the Grupo México Foundation.
on the Celaya Rail Bypass in Guanajuato.
Quality, Occupational Safety and Environmental
• With Minera México, the construction of the
Management
new tailings deposit for Buenavista del Cobre
in Cananea, Sonora, continues and is 90%
• Since 2007 has MCC maintained the certification
complete. In Nacozari, Sonora, we continue to
of its comprehensive management system with
work on raising the curtain of the tailings dam
validity until 2019: Quality ISO 9001: 2015,
number 7, currently at 93% completion and it is
Environmental ISO 14001: 2015, Safety and
expected to conclude in May 2020.
Health at Work OHSAS 18001: 2007. In 2019,
the comprehensive system recertification was
• In 2019, the first stage of construction of the
carried out with validity until 2021 in Quality ISO
Silao Bypass in the state of Guanajuato was
9001: 2015, Environmental ISO 14001: 2015
completed. The second stage of this bypass,
and the certification of the Safety and Health at
with a length of 6.2 km, is expected to be built
Work system is being carried out under the new
in 2020.
ISO 45001: 2018 standard.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
100
//
Aerial view
of the bypass
in Celaya,
Guanajuato,
Mexico.
101
ANNUAL REPORT 2019
//
Silao Bypass,
Guanajuato,
Mexico.
Freeways
Grupo México Autopistas
We comply with legal and regulatory matters related to
Potential 2020 projects
In 2019, Grupo México Autopistas had revenues of
Additionally, Operadora de Infraestructura del Bajío,
occupational health and safety performance, are in full
USD$43 million, 7.1% more than in 2018.
S.A. DE C.V. (a subsidiary of Grupo México), an entity
legal compliance, and can emphasize the following:
• Construction of the Zinc Concentrator Plant.
registered with the SCT and certified by ISO 9001-
• Construction of Crushing Areas for the Lime
Currently, Grupo México operates two highway
2015, manages and operates the concessions.
• During 2019, our operations had an average
• Construction of fuel storage terminals in
Plant in Agua Prieta, Sonora.
concessions:
monthly workforce of 1,862 direct employees
Monterrey and Guadalajara.
1) Salamanca-León Highway: Federal concession
and more than 390 subcontractors, giving a total
• Construction of the Southern Bypass of the City
granted to the Concesionaria de Infraestructura
of 4,739,000 hours worked during the year.
of Pachuca, Hidalgo.
• Construction of the Mayan Train.
• The result of the occupational accident rate index
was 0.5, with zero fatalities, the above being
below the indicators stipulated by the OSHA
agency (USA) and the Mexican Chamber of the
Construction Industry. (CMIC).
• The environmental and quality performance
audited and certified by third parties is optimal and
complies with all the resolutions and specifications
of the company’s construction projects.
102
del Bajío, SA de CV to build, operate, protect,
and maintain the 81.6 km highway in the state of
Guanajuato for 30 years, until 2041. Its two sections
are now in operation. During 2019 the daily capacity
was 13,206 vehicles, surpassing the 2018 figure by 3.7%
and representing an equivalent daily capacity by
vehicle type of 20,811 units.
2) Silao Bypass: State concession granted to the
Concesionaria de Infraestructura del Bajío, SA de CV
to build, operate, protect and maintain the 17.4 km
highway in the state of Guanajuato for the next 30 years,
until 2049. Section 2, of 11.6 km, began operations in
September 2019 and Section I is scheduled to begin
construction during 2020.
Revenue of
USD$43 million,
which represented
an increase of 7.1%
compared to 2018.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
103
ANNUAL REPORT 2019
Sales during
2019 reached
USD$18 million,
exceeding those
of 2018 by 5%.
Cadereyta Transfer Terminal
Nuevo León
Escobedo Intermodal Terminal
Nuevo León
Monterrey
Engineering
GRUPO MÉXICO SERVICIOS DE INGENIERÍA, SA DE CV (GMSI)
Fuels
GRUPO MÉXICO CONTROLADORA DE COMBUSTIBLES, SA DE CV (GMCC)
Sales during 2019 amounted to USD$18 million, exceeding 2018 by 5%;
The Cadereyta Transfer Terminal in Nuevo León entered operation in June 2019
improvements were secured in all business lines (engineering personnel
and registered operations of more than 1 million liters transferred per day (6,300
management and construction supervision) with a 17% higher EBITDA compared
barrels or 10 gasoline and diesel tank trucks) equivalent to 10% of the total demand
to the previous year, resulting in the highest level of production in the history of
in Monterrey. Its annual income was USD$1.1 million, with an EBITDA margin of 44%.
the company. Likewise, there was a growth in the workforce of 26% reaching
471 employees at the end of 2019.
EBITDA result
17% higher
104
GMCC is currently developing two fuel storage terminals (Monterrey and Guadalajara)
that have signed contracts for 10 years and 100% of the assigned capacity. GMCC
will carry out construction during 2020 and part of 2021, expected to enter
operation in 4Q2021 and 2Q2022 respectively. These terminals are the first phase
of a wider plan aimed at constructing and operating other terminals through key
axes to complete the logistics chain of fuel importers and marketers.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
105
ANNUAL REPORT 2019
WE ARE THE
REFLECTION OF OUR
TIRELESS
COMMUNITY
//
Tree Planting Day.
Dr. Vagón
1.4 MILLION
MEDICAL CONSULTATIONS
Totally free
Grupo México Foundation
Grupo México Foundation (FGM) is a non-profit organization whose objective is to
promote the well-being of Mexico through health and social development programs,
as well as strategic alliances with other civil society organizations (CSOs) in the
country. Grupo México Foundation guides its actions based on four axes:
· Health
· Environment
· Support for Institutions
· Education and Culture
//
High school
- La Caridad
Educational
Center, Sonora,
Mexico
Health
As part the health care promotion strategic axis, the Grupo México Foundation, in
association with Grupo México Transportes, operates the “Dr. Vagón” program, the
Health Train.
“Dr. Railcar,” The Health Train
In 2019, “Dr. Railcar” celebrated five years in operation. Since its inception, this
initiative has provided more than 1.4 million free comprehensive medical services
to more than 360,000 patients in 226 communities in 22 states of the Mexican
Republic. “Dr. Vagón” has traveled more than 82,000 kilometers to provide free
health services to those who need it most.
Strategic allies and results of “Dr. Railcar” 2019
The work carried out by “Dr. Railcar” in 2019 was the result of teamwork with
our strategic allies, allowing us to provide specialized care, make use of more and
better equipment, donate drugs, medical and rehabilitation equipment, and carry
out studies, among many other things.
For this reason, we would like to acknowledge the excellence and professionalism
of our allies: Essilior, FUCAM, Audiotech Foundation, Farmacias del Ahorro
Foundation, MVS Radio Foundation, LAPI and Takeda.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
110
“Dr. Vagón,” the Health Train in Sonora, Mexico.
//
We thank all our
strategic allies that make
this project possible.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
111
18
States visited
107,943
Free medication
456,028
Medical services
217
Communities served
1,900
Hearing aids
111,268
Patients
8,016
Patients seen at the
Integrated Diabetic Patient Clinic
16,376
Pairs of glasses
748
IUD's
235
Vasectomies
40,859
Radiological screenings
9,265
Mammographies
64,103
Laboratory tests, desk studies
and specialized consultations for the
timely treatment of diabetic nephropathy,
diabetic retinopathy, among others.
2,205
Psychological counseling sessions
113
// “Dr. Railcar,” the Health Train in Veracruz, Mexico.
Since 2014, year by
year, the number of
medical consultations
has increased 30%.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
112
ANNUAL REPORT 2019
Environment
Mexicanos Sembrando
The “Mexicanos Sembrando” is a program of Grupo México Foundation that aims to
contribute to the reforestation of the country, restore its ecosystems and mitigate the
effects of climate change.
During 2019 we donated 2.1 million trees to
municipalities in 25 states of Mexico.
The main species we plant grow in urban areas and are fast growing, such as
White Cedar, Ash, Trueno, Palm and Jacaranda. In addition, we plant species that
are used for the reforestation of previously forested areas such as: Acchi de cochi
oak, white oak, Apache pine, Madroño, Táscal or Táscate, Huata, Huizache, Pirul,
African Karee and Trueno or Troeno.
Grupo México Foundation’s nurseries are the largest of the private sector and have
a high-tech irrigation system, greenhouses, and shade netting with the capacity
to produce 5 million trees annually. They grow more than 200 indigenous species
from different regions of Mexico, which help to stabilize ecosystems.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
114
//
Nursery and
greenhouse for
reforestation.
115
ANNUAL REPORT 2019
In 2019 we reforested 2,166
hectares which is equivalent to
3,033 soccer fields.
23 hectares reforested on the 9th Tree Planting Day
24thousand
pines planted
2,246 volunteers participated in our ninth Fundación Grupo México Tree Planting Day including employees
of Grupo México, allies of Cinemex and Grupo México Foundation. 24,000 pine trees were planted on the
23-hectare “La Boquera” site in the municipality of Huixquilucan, State of Mexico. Several of our allies joined us
in this activity: Nutriwell, Grisi, Coca Cola, ManPower Group, Bio Rad, Estafeta, CMR, LAPI, Hogan Lovells, Sura,
KPMG, Posadas and Fundación CIE.
Vagón Verde
Since 2015, in coordination with Grupo México Transportes, we have transported and donated trees to the
communities through which the railroad passes. The main objective is to support the reforestation actions of the
Mexicanos Sembrando program and create awareness among children about caring for the environment, as well
as to encourage recycling activities. In 2019, we donated 416,000 trees of 24 different species to 19 municipalities
in Mexico.
Vagón Verde.
//
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
116
//
Tree Planting Day.
117
ANNUAL REPORT 2019
Support for Institutions
Network of Business Associations and Foundations
The Network of Business Associations and Foundations (La Red, or the Network) is
a site of institutional convergence and liaison that fosters a culture of collaboration
among civil society organizations for the development of skills and best practices.
In order to achieve this we organize trainings, forums, workshops, networking spaces,
lectures and seminars that allow us to share ideas and knowledge that strengthens
the structure of the participating organizations and institutions.
We have 232 allies among Business Foundations, Socially Responsible Companies,
Social Agencies, Universities, Government Bodies and more than 4,000 Civil Society
Organizations (CSOs).
• 135 Business foundations
• 68 Social agencies and legal advisers
• 11 Academic organizations
• 18 International and governmental organizations
The activities of the Network include training for its members and affiliates.
During 2019 we organized 131 on-site workshops, representing 646 hours of training
on a range of issues that allow these organizations to advance their projects and
consolidate themselves, to the benefit of their goals.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
118
Face-to-face training for CSOs registered in The Network. //
The distribution of issues in these training sessions during 2019 was:
• Fundraising and management 22%
• Institutional development and project management 20%
• Legal issues 15%
• Human resources development 12%
• Communication and social marketing 10%
• Financial and fiscal 8%
• Volunteers 3%
• Other items 10%
119
ANNUAL REPORT 2019
During 2019, the Network
trained, on average, 472 people
each month.
Network of Associations Expo
At the Network we work closely with the Centro Mexicano Pro Bono and Appleseed
The Network of Business Associations and Foundations of Grupo México Foundation
México in training for lawyers and legal firms specialized in social development issues.
organize the Network of Associations Expo event with the aim of creating a space
for liaison and face-to-face meetings between CSOs in Mexico and to strengthen
Thanks to the digital platform “The Network”, we have a presence in many countries
contacts. In 2019 around 400 people from more than 200 CSOs attended with
including: Argentina, Brazil, El Salvador, Chile, Colombia, Costa Rica, Ecuador,
the participation of experts and leaders in social issues presenting the main
Guatemala, Peru, Venezuela, Spain and the United States.
trends and programs that contribute to the strengthening and better operation of
Mexican CSOs.
The Network has
provided 199 legal
advice sessions to Civil
Society Organizations.
EnREDados Podcast
In 2019, we developed the EnREDados podcast as a communication tool that
allows us to disseminate the work, experiences and actions of the leaders and
representatives of the Network’s allies, in addition to giving space to experts on
social and sustainable issues.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
120
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
121
Education and Culture
We have three key programs that allow us to influence the intellectual and emotional
development of children and young people in Mexico. These are the educational workshops
and volunteer programs of Grupo México and the publishing projects of the FGM.
Education, professional development and teaching materials workshops
Since 2016 we have worked together with government agencies to promote education
and development for girls, boys and young people through educational materials on
health with information and teaching resources.
The material is accessible to all people who wish to consult it through the platform
educacionsaludyvida.org. During 2019, the platform received more than 46,000 visits
and materials were downloaded 11,120 times. Through this platform and jointly with our
allies we also provide psychological and legal advice in online discussion forums.
In collaboration with the NEMI AC Foundation, we coordinated the delivery of 500
workshops for 56,000 students in 61 high schools and 27 colleges in: Angangueo,
Michoacán; Ciudad del Carmen, Campeche; Charcas, San Luis Potosí; Guerrero
Negro, Baja California Sur; Nacozari, Esqueda, Cananea and Guaymas, Sonora;
Santa Bárbara and Santa Eulalia, Chihuahua; Sombrerete, Zacatecas. The workshops
addressed topics such as addictions, intelligent communication, sexual education,
entrepreneurship, financial education, violence, and nutrition.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
123
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
122
//
Booklet I eat, enjoy and nourish myself
Volunteer Day
The participation of civil society in volunteering activities creates resilient communities
and builds social cohesion and trust. The Volunteer Day was held for the seventh
consecutive year, with collaborators from the three divisions of Grupo México and
Cinemex together with their families, bringing together their efforts and intention to
benefit the communities where we have a presence.
The solidarity of this great team was reflected in the rejuvenation of schools, public
spaces, homes, retirement homes and community dining rooms, by exterior and interior
painting, rehabilitation of recreational areas, afforestation of green areas, as well as
spending time with the beneficiaries of these activities.
1,223 employees from Grupo México and Cinemex took part, along with their families,
friends and staff from the beneficiary institutions, added up to a total of over 10,000
volunteers in Mexico, Peru and the United States. In total, 52 institutions from 27
communities in 14 states of Mexico, 2 in the United States and 3 departments of Peru
were benefited.
Vacations with Meaning
//
Book cover “Pumpkin, Fruit of the Mexican Garden,”
edited by GM Foundation.
Grupo México Foundation Publishing
For 10 years we have edited and published a book each year on the ingredients and
essential products of Mexican cuisine, in order to preserve this UNESCO intangible
heritage of humanity. In 2019 the book was dedicated to beans and their significance
in Mexican cuisine and traditions. The book “Beans, Roots and History” is a finalist
Grupo México Foundation offers the staff of Grupo México’s corporate offices the
in the Gourmand World Cook Awards in the Single Theme category.
opportunity to contribute to the development of the communities where the company
is present through volunteer actions called “Vacations with Meaning”. In 2019 the
In 2019 we supported, through the Fiscal Stimulus to Cinema (EFICINE) program,
communities visited by this initiative were Tacná, Ilabaya, Miramar and Ilo, benefiting
the film project La Novia de América, from the production company Grupo
354 people.
Guanábana Cine.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
125
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
124
Cinemex Awareness Program
As part of the strategic axis of Support for Institutions and in collaboration with
Cinemex, the following Cinemex Awareness programs are in successful operation:
Beneficiary Premier
Every year in cinemas belonging to Cinemex, Grupo México Foundation donates
premiers, in which each beneficiary CSO carries out a ticket sale and raises funds that
are also matched by Grupo México Foundation.
During 2019 we held 33
premieres, raising more than
MXN$1.5 million in benefit of
28 organizations.
Social Mini-Film (“Cineminuto”)
In 2019, with 14 mini-films, the organizations had the opportunity to publicize their
work in a minute-long film, before film screenings at Cinemex complexes, achieving
greater visibility for the benefit of their causes.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
126
The Mini-Films helped to publicize
the work of 14 civil society
organizations in 270 Cinemex
complexes in Mexico.
Institutions benefited in 2019
with the Social Mini-Film
FUCAM A.C.
Fundación Nemi A.C.
Congregación Mariana
Trinitaria A.C.
Care for women with
breast cancer
Support for the promotion of
Civil Society Organizations
Support for communities living
in extreme poverty
Fundación del Empresariado
Chihuahuense, A.C.
Education for children and youth
in the Sierra Tarahumara
Mexican Red Cross
National collection 2019
Autismo A.B.P.
Fundación Fraternidad
sin Fronteras I.A.P.
Alumbra, una luz contra
el abuso sexual infantil
Colegio el Girasol, A.C.
Fundación Gentera A.C.
Promote early detection and
care of autism
Care for people abandoned by
their families and by society
Prevention of sexual violence
against children
Quality education for children
from low-income families
Integration of low-income
people into formal education
Convivencia sin Violencia A.C.
Dpie, Pasos en Acción
Prevention of violence and education
about its consequences
Labor inclusion and donation
of prostheses to amputees
Visión Mundial de México A.C.
Care for children in poverty
Juguetón A.C.
Nationwide donations of toys
127
ANNUAL REPORT 2019
Cinemex Race
Since 2009 we have held the Cinemex Race to raise funds for various civil
organizations. In 2019 the race celebrated its 10th anniversary. The money raised in
this edition was a million Mexican pesos that we gave to Fraternidad sin Fronteras
I.A.P Foundation, which cares for people with mental disabilities who suffer from
family and social neglect.
Social Marketing Campaigns
In Cinemex’s snack kiosks, the Grupo México Foundation offers an exclusive combo
to support organizations. A percentage of the profit of every combo is collected over
8 weeks and the amount raised is donated to various causes. In 2019 we donated
MXN$1.8 million.
Organizations benefited:
• Desarrollo Integral de la Juventud Oaxaqueña A.C.
• Fraternidad sin Fronteras I.A.P.
• Alzheimer Mexico IAP
Marquee campaign
During 2019, 2,700 posters were exhibited on the marquee of 270 cinema complexes
over 48 weeks throughout Mexico, for the benefit of various Civil Organizations.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
129
//
Starting gun of the 10th Cinemex Race.
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
128
We gave a million of Mexican pesos to Fundación Fraternidad sin Fronteras I.A.P.
1 million
GRUPO MÉXICO
BOARD OF DIRECTORS
Germán Larrea Mota Velasco
President
Patrimonial Advisor
Claudio X. González Laporte
Independent Director
Xavier García de Quevedo
Prudencio López Martínez
Executive Vice President
Patrimonial Advisor
Oscar González Rocha
Executive Vice President
Patrimonial Advisor
Alfredo Casar Pérez
Patrimonial Advisor
Luis Castelazo Morales
Patrimonial Advisor
Fernando López Guerra Larrea
Patrimonial Advisor
Emilio Carrillo Gamboa
Patrimonial Advisor
Independent Secretary
Independent Director
Antonio Madero Bracho
Independent Director
Carlos Prieto Sierra
Independent Director
Carlos Rojas Mota Velasco
Independent Director
Fernando Ruiz Sahagún
Independent Director
Antonio del Valle Ruiz
Independent Director
Rolando Vega Saénz
Independent Director
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
131
BOARD
Germán Larrea Mota Velasco
CEO
Xavier García de Quevedo
Executive Vice-President
MINING DIVISION
AMERICAS MINING CORPORATION
BOARD
Germán Larrea Mota Velasco
Jorge Jáuregui Morales
President of the Board
Director of Human Resources
Oscar González Rocha
Jorge Lazalde Psihas
CEO
Counsel
Lourdes Aranda Bezaury
Director of Communication and Institutional Relations
Xavier García de Quevedo
Executive Vice-President
Francisco López Guerra Larrea
Director of Sustainability
Marlene Finny de la Torre
Administration and Finance Director
Lillie Hernández Minor
Counsel
Juan Carlos Jaques Garcés
Audit Director
Miguel Valdés Neaves
Director of Administration and Control
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
132
Vidal Muhech Dip
Director of the Board
Daniel Chávez Carreón
Director of Operations
Ernesto Ríos Patrón
Director of Engineering and Construction
Raquel Tobar Sáinz
Director of New Business and Finance
Leonardo Contreras Lerdo de Tejada
René Verde Guzmán
Director of Marketing,
General Director ASARCO
Oscar González Barrón
Administration and Finance Director
Information Technology Director
Rafael Ríos García
Security Director
Raúl Jacob Ruisanchez
Mauricio Ibañez Campos
Administration and Finance Director Southern Peru
Legal and Corporate Governance Director
Jorge Meza Viveros
Operations Director Southern Peru
133
ANNUAL REPORT 2019
SOUTHERN COPPER CORPORATION
BOARD OF DIRECTORS
TRANSPORTATION DIVISION
GRUPO MÉXICO TRANSPORTES
MANAGEMENT TEAM
Germán Larrea Mota Velasco
Luis Miguel Palomino Bonilla
President of the Board
Independent Director
Germán Larrea Mota Velasco
Patrimonial Advisor
Carlos Noriega Arias
Patrimonial Advisor
Oscar González Rocha
Executive Vice-President
Patrimonial Advisor
Xavier García de Quevedo
Executive Vice-President
Patrimonial Advisor
Alfredo Casar Pérez
Patrimonial Advisor
Vicente Ariztegui Andreve
Independent Director
Enrique Castillo Sánchez Mejorada
Independent Director
Rafael Mac Gregor Anciola
Independent Director
134
Gilberto Perezalonso Cifuentes
Independent Director
Xavier García de Quevedo
Lorenzo Reyes Retana Padilla
Patrimonial Advisor
Patrimonial Advisor
Carlos Ruíz Sacristán
Independent Director
Jorge Lazalde Psihas
Secretary
Roberto Slim Seade
Patrimonial Advisor
Christian Lippert Helguera
Secretary
Alfredo Casar Pérez
Patrimonial Advisor
Jaime Corredor Esnaola
Patrimonial Advisor
Arturo Elías Ayub
Patrimonial Advisor
Eduardo Joaquín Gallástegui Armella
Patrimonial Advisor
Hugo Rafael Gómez Díaz
Patrimonial Advisor
Fernando López Guerra Larrea
Patrimonial Advisor
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
135
ANNUAL REPORT 2019
GRUPO MÉXICO TRANSPORTES
MANAGEMENT TEAM
Germán Larrea Mota Velasco
President of the Board
Alfredo Casar Pérez
CEO
Fernando López Guerra Larrea
Managing Director
Isaac Franklin Unkind
Administration and Finance Director
Hugo Rafael Gómez Díaz
Director of Operations
Lorenzo Reyes Retana Padilla
Corporate Projects Director
Jorge Márquez Abreu
Commercial Director
Nathan Aspund
CEO Florida East Coast (FEC)
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
136
INFRASTRUCTURE DIVISION
MEXICO PROJECTS AND DEVELOPMENTS
Germán Larrea Mota Velasco
Ricardo Arce Castellanos
President of the Board
Oil and Gas, Engineering and Construction Director
Xavier García de Quevedo
Javier Gómez Aguilar
CEO
Counsel
Francisco Zinser González
Héctor Raúl Huerta Avendaño
Managing Director
Engineering Services Director
Mario Fernando Chávez Galas
Julio Francisco Larrea Mena
Administration and Finance Director
Construction Director Mexico
Jorge Agüero Navarro
Highway Director
Gustavo Ortega Gómez
Energy Director
137
ANNUAL REPORT 2019
GRUPO MÉXICO FOUNDATION
Germán Larrea Mota Velasco
President
Jessica Pons Fernández
Deputy Director General
Network of Associations and Environment
Health
Karla Díaz Castro
Administrative Manager, “Dr. Railcar,” The Health Train
Dr. Ricardo Reyes Díaz
Medical Manager, “Dr. Railcar,” The Health Train
Aura Patiño Lona
Operational Manager, “Dr. Railcar,” The Health Train
Institutional Support
Lucero Vallejo Durán
Manager, Cinemex Awareness Program
Education and Culture
Beatriz Crispín Gámez
Manager, Education and Culture
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
138