O U R C O N F I D E N C E I N T H E F U T U R E I S
Employment, investment and sustainability
Annual Report 2020
INDEX
Letter to shareholders
Grupo México Results
Mining Division
Transportation Division
Infrastructure Division
Fundación Grupo México
Board and Management Team
IA GMX 2020 – INDEX
4
8
28
64
86
110
132
IA GMX 2020 – LETTER TO THE SHAREHOLDERS
LETTER TO THE
SHAREHOLDERS
In 2020, we faced unprecedented challenges that we were able to overcome through
our unwavering commitment to maintain our investment levels, sources of
employment, sustainability actions, and the support to all the communities
where we are present.
For Grupo México, it was a year of significant achievements, a year to be innovative,
resilient, and able to protect our workers and their families, as well as to give continuity
and greater efficiency to our operations, which turned out to be essential to overcome
the onslaught of the pandemic and drive the economic recovery. Our confidence in
the future was and is unwavering.
Our investments in the last ten years surpassed US$20 billion, which enabled
us to consolidate this year as the largest industrial conglomerate in México,
with world-class assets and presence in four countries: México, Perú, the US,
and Spain.
During 2020, Grupo México’s shares appreciated by 62% in MXN and 54% in
USD, given the expectation of better market returns, productive capacity growth
through investment, division-wide operating efficiency, financial discipline, higher
metals prices, and the industrial and commercial reactivation since the fourth quarter.
Conveyor belts that transport the ore to the concentrator.
5
IA GMX 2020 – LETTER TO THE SHAREHOLDERS
We confirm our commitment to the generation of well-paid, highly specialized
In 2020, with solidarity actions, experience, and an unwavering desire to learn, we
work for nearly 30 thousand employees in our three divisions.
guaranteed safe environments, contributed to prevent infection, and helped
to strengthen the social and hospital response capacity before the effects
Sustainability consolidated as an essential component of our business model;
of the virus in the countries where we operate were felt.
we perfected four corporate policies in this area, focused on occupational health,
workplace safety, and care of the environment and the communities.
Fundación Grupo México donated 611 million pesos in kind for the medical
staff and most vulnerable population; we accelerated the delivery of a hospital in
Despite the complex scenario for this year, we obtained the following results:
Oaxaca and assigned medical professionals from Doctor Vagón to the Cananea
General Hospital, in Sonora. In Perú, we donated 18 temporary hospitals and two
• We held our place as the fifth producer of copper in the world.
oxygen plants.
• We achieved record figures in the production of copper, molybdenum, and
silver.
At Grupo México, we now renew our unwavering trust in ourselves and in
• We consolidated as the best cash-cost in the industry: -20.5% compared to
the countries where we are present, to keep growing together and to build a
2019.
better future.
• Our exploration program confirmed that we still have the largest mining
reserves in the world.
• We completed the Buenavista del Cobre, Cananea, and Toquepala projects
in Perú. We will continue our aggressive large-scale investment program in
Buenavista Zinc and El Arco, Tía María, Michiquillay, and Los Chancas.
• For yet another year, we were a driving factor behind economic and social
development in the countries where we operate.
We maintained uninterrupted operations in over 11 thousand kilometers of
railroads in México and the US. Our cargo railway was crucial in guaranteeing
the supply and activities of essential industries and businesses, even at the
height of the health contingency.
With strict sanitary measures, we achieved an all-time high of 99.5% in the
operating efficiency of our oil rigs; we surpassed by 40% the sales levels of our
engineering services, and made over 80% progress in the construction of our
Fenicias Wind Farm in Nuevo León.
Regards,
Germán Larrea Mota Velasco
6
7
IA GMX 2020 – GRUPO MÉXICO RESULTS
GRUPO MÉXICO
RESULTS
During 2020, a year full of challenges and adversities, at Grupo México, we maintained a
solid balance sheet with a strong cash flow generation and a low leverage profile, a net
debt to EBITDA ratio of 0.9x, and a comfortable debt maturities schedule. We maintain our
unwavering commitment to continue with an important investment program for the company’s
growth and the development of the countries where we work.
Relevant consolidated figures
Accrued sales during 2020 totaled US$10.90 billion, a record in Grupo México’s history, and
2.1% higher than in 2019.
In the Mining Division, sales totaled US$8.56 billion, 7.5% higher than in 2019, given higher
volumes produced, as well as a favorable price environment for Copper (+2.9%), Silver
(27.6%) and Gold (+27.1%).
We invested over US$20 billion in the last decade,
which reflects our unwavering trust and commitment
to the countries where we are present.
9
Panoramic view of the Cananea open pit, Sonora, México.
GMXT Railroad Operations Control Center in Guadalajara, Jalisco, México.
As a result of our intense investment program,
this year we achieved record EBITDA of US$5.36
billion
In the Transportation Division, sales declined 12.7% during 2020, reporting
US$2.16 billion, mainly due to lower volumes transported as a result of the
COVID-19 pandemic.
In the Infrastructure Division, net sales accrued US$528 million, a 9.0% decrease,
due to the decline in drilling quotas and a decrease in activity in the construction
sector.
Despite the difficulties faced, we achieved 8.4% EBITDA, above the figure for 2019.
Fenicias Wind Farm, with a total installed capacity of 168 MW in Nuevo León, México.
GRUPO MÉXICO
Thousands of dollars
Sales
Cost of Sales
Operating Profit
EBITDA
EBITDA Margin (%)
Net Profit
Profit Margin (%)
Investments/Capex
Employees
4Q
Variation
January - December
Variation
2019
2020
2,634,663
1,395,348
818,845
1,160,900
44.1%
542,209
20.6%
290,242
30,263
3,216,954
1,473,147
1,314,842
1,734,915
53.9%
1,077,033
33.5%
402,597
29,169
Thousands
of USD
582,291
77,799
495,997
574,015
%
22.1
5.6
60.6
49.4
534,824
98.6
112,356
(1,094)
38.7
(3.6)
2019
2020
10,680,649
5,514,115
3,479,725
4,945,274
46.3%
1,766,249
16.5%
1,124,646
30,263
10,909,181
5,297,736
3,958,016
5,362,988
49.2%
2,118,435
19.4%
1,114,693
29,169
Thousands
of USD
228,531
(216,379)
478,291
417,714
%
2.1
(3.9)
13.7
8.4
352,185
19.9
(9,954)
(1,094)
(0.9)
(3.6)
10
11
SALES
Mining Division
Copper
Silver (Thousands of oz.)
Molybdenum
Zinc
Sulfuric acid
Gold (ounces)
Lead
Others
Thousands of USD
2020
Var. %
2019
Volume in Tons
2020
Var. %
2019
6,522,655
318,760
549,369
277,779
169,239
67,521
41,670
18,614
7,094,322
460,290
510,311
249,344
127,694
83,117
31,261
9,871
9
44
(7)
(10)
(25)
23
(25)
(47)
(13)
(9)
2
1,094,252
20,739
26,849
103,668
1,832,662
49,163
21,020
–
1,133,951
21,085
30,259
104,752
1,732,859
47,734
19,335
–
4
2
13
1
(5)
(3)
(8)
–
1,887,766
1,753,069
(7)
–
–
–
–
–
–
Transportation Division (cars)
2,473,004
2,158,312
Infrastructure Division
579,782
527,638
Total Sales*
$10,680,649
$10,909,207
* Considering eliminated sums due to intercompany sales.
EBITDA
Millions of Dollars
Division
Mining
Transportation
Infrastructure
2019
2020
Var. %
3,564
1,096
272
4,155
944
267
17
(14)
(2)
(8)
Consolidated
$4,945
$5,363
Infrastructure
5%
Transportation
18%
Mining
77%
12
SHARE OF SALES BY CONTINENTS
AND COUNTRIES IN 2020
ASIA
17%
US
22%
LATIN AMERICA
8%
MÉXICO
31%
EUROPE
22%
TOTAL SALES
Millions of Dollars
11,000
10,500
10,000
9,500
9,000
8,500
8,000
7,500
7,000
9,786
10,495
10,681
10,909
2017
2018
2019
2020
Combined cycle plant with annual capacity for 520 Mw in Nacozari de García, Sonora, México.
IA GMX 2020 – GRUPO MÉXICO RESULTS
Consolidated Debt
Our total debt amounts to US$8.95 billion and our net
debt amounts to US$4.9 billion, resulting in a net debt
to EBITDA ratio of 0.9x.
82% of the debt contracts are dollar-denominated, and 18% are
peso-denominated; 94% of the debt has a fixed rate. Furthermore,
our maturities calendar has payments worth under US$1.0 billion
Hoppers loaded with polyethylene in Nachital de Lázaro Cárdenas, Veracruz, México.
annually up to 2035.
Capital Investments
In 2020, we invested US$1.11 billion in the three divisions. Growth project
investments have been smaller than expected as a result of the COVID-19
pandemic.
•
•
•
Mining: US$628 million
Transportation: US$269 million
Infrastructure: US$218 million
During 2021, we have scheduled the investment of $2.15 billion in different
projects in the three division which, we believe, will enable the economic
reactivation and generation of employment insofar as the pandemic allows.
Consolidated net profit was 20% greater than
in 2019, totaling US$2.12 billion.
Grupo México maintains a solid balance sheet and
strong free cash flow generation.
GRUPO MÉXICO MATURITIES AS AT DECEMBER 31, 2020
1,600
1,400
1,200
1,000
800
600
3
6
5
6
1
5
400
4
2
3
200
1
4
1
6
5
1
0
0
5
1
,
0
0
2
1
,
0
1
1
1
,
5
1
0
1
,
0
0
0
1
,
8
2
7
8
5
3
5
0
1
6
4
6
5
0
6
4
6
5
1
6
1
6
1
7
1
8
1
9
1
0
0
0
0
0
0
0
0
1
2
0
2
2
2
0
2
3
2
0
2
4
2
0
2
5
2
0
2
6
2
0
2
7
2
0
2
8
2
0
2
9
2
0
2
0
3
0
2
1
3
0
2
2
3
0
2
3
3
0
2
4
3
0
2
5
3
0
2
6
3
0
2
7
3
0
2
8
3
0
2
9
3
0
2
0
4
0
2
1
4
0
2
2
4
0
2
3
4
0
2
4
4
0
2
5
4
0
2
6
4
0
2
7
4
0
2
8
4
0
2
9
4
0
2
0
5
0
2
1
5
0
2
MINING DIVISION
TRANSPORTATION DIVISION
INFRASTRUCTURE DIVISION
14
15
In 2020, we were the
company that paid
the most taxes in
México and Perú.
We have paid US$13
billion in taxes in the
last 10 years.
IA GMX 2020 – GRUPO MÉXICO RESULTS
Performance of Grupo México’s stock
Thanks to the operating efficiency displayed in all our divisions, the expansion projects,
the increase in copper prices, and the sound fundamentals of the metal, Grupo México’s
stock appreciated by over 62% in peso terms in 2020, thus surpassing market returns.
GMEXICO STOCK PRICE AND DISCOUNT TO ITS SUM OF THE PARTS
142.62
41%
84.12
53.43
56.25
43.74
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
9
1
0
2
/
1
3
/
2
1
0
2
0
2
/
1
3
/
1
0
2
0
2
/
9
2
/
2
0
2
0
2
/
1
3
/
3
0
2
0
2
/
0
3
/
4
0
2
0
2
/
1
3
/
5
0
2
0
2
/
0
3
/
6
0
2
0
2
/
1
3
/
7
0
2
0
2
/
1
3
/
8
0
2
0
2
/
0
3
/
9
0
2
0
2
/
1
3
/
0
1
0
2
0
2
/
0
3
/
1
1
0
2
0
2
/
1
3
/
2
1
REAL PRICE
%
DISCOUNT
THEORETICAL PRICE
Despite the price growth during the year, Grupo
México continued to trade at a huge discount.
Drilling rig for blasting in Cananea, Sonora, México.
17
IA GMX 2020 – GRUPO MÉXICO RESULTS
the unwavering conviction
We maintain
that
constant investment growth, the excellence of our
technical staff, and the state-of-the-art technology
that we use enable us to provide sound results to
our shareholders.
Dividend payments per share
During 2020, Grupo México paid 3.45 mexican pesos per share, a sum 8% higher
than a year earlier, and maintained the annualized dividend yield above 5%, despite
Fuel terminal at Cadereyta, Nuevo León.
Natural hedging in US dollars
the sharp hike in the stock price. Grupo México continues to build a solid track
89% of our sales are in US dollars, so we have a natural hedge in that currency, with
record of transferring value to its shareholders through dividend payments.
a positive result against the dollar’s appreciation.
ANNUAL DIVIDEND RETURNS
2018
6.1%
2019
6.6%
2020
5.2%
Sales
Cost of Sales
USD
100%
55%
74%
89%
MXN
–
45%
26%
11%
USD
58%
27%
39%
50%
MXN
28%
73%
61%
40%
SOLES
14%
–
–
10%
Mining
Transportation
Infrastructure
Weighted total
18
19
IA GMX 2020 – GRUPO MÉXICO RESULTS
Grupo México Transportes is a pioneer
in the use of liquefied natural gas
for railroad transportation to reduce
polluting emissions even further.
A traditional locomotive removes 300
trucks from the highways, reducing
traffic and carbon emissions.
During 2020, rating agencies Fitch and S&P
confirmed the Group’s BBB+ rating, with a stable
outlook.
Tender with Liquefied Natural Gas for our hybrid locomotives emitting 60% less
greenhouse gases into the atmosphere, compared to traditional diesel locomotives.
Credit Profile
Rating agencies noted Grupo México’s position as one of the largest copper producers
worldwide, with one of the lowest extraction costs in the industry, the largest reserves,
and the longest mine life, as well as a sustained growth profile and strategic synergies
within its three divisions.
Moreover, they emphasized the diversification of revenue sources through the Group’s
three divisions and GMXT’s leadership position in the railroad industry.
20
21
HIGHLIGHTS
2017
2018
2019
2020
Real Var. %
2020/2019
2017
2018
2019
2020
Real Var. %
2020/2019
IA GMX 2020 – GRUPO MÉXICO RESULTS
Volume Sold *
Copper
(tons)
Zinc
Silver
Silver
(tons)
(thousands of ounces)
(ounces)
Molybdenum
(tons)
Average Price (USD)
Copper
(COMEX)
Zinc
Silver
Gold
(LME)
(COMEX)
(LF)
(pound)
(pound)
(ounce)
(ounce)
Molybdenum
(MW DEALER OXIDE)
(pound)
1,024,952
1,001,388
1,094,252
107,572
16,843
54,223
21,358
2.80
1.31
17.03
1,257.13
8.21
106,483
103,668
19,477
55,938
22,055
2.93
1.33
15.65
1,269.14
11.94
20,739
49,163
26,849
2.72
1.16
16.16
1,392.17
11.35
1,133,951
104,752
21,085
47,734
30,259
2.80
1.03
20.62
1,769.59
8.69
Transportation Division Statistics
Net ton kms
Cars loaded
(millions
of tons)
(millions
of units)
59,078
1,730
64,809
1,962
65,444
1,888
62,823
1,753
4,859
16,786
25,745
8,550
12,185
13,560
9,786
5,010
1,591
4,531
1,522
4,789
17,146
25,805
8,384
12,196
13,609
10,495
5,419
983
4,889
1,147
5,908
17,084
27,566
9,377
13,320
14,246
10,681
5,514
1,268
4,945
1,766
7,325
17,100
28,608
8,952
13,364
15,244
10,909
5,298
1,370
5,363
2,118
Balance (millions of USD)
Current Assets
Fixed Assets
Total Assets
Banking Liabilities
Total Liabilities
Total Shareholder Capital
Balance (millions of USD)
Total Sales
Cost of Sales
Taxes Incurred
EBITDA
Net profit
22
4
1
2
(3)
13
3
(11)
28
27
(23)
(4)
(7)
24
0
4
(5)
0
7
2
(4)
8
8
20
Cash Flow
(millions of USD)
Generated by Operations
Dividends Paid
Taxes Paid
Applied in Financial Activities
Used in Investments
Flow after investments and
financial activities
Financial Ratios
Operating Margin
EBITDA Margin
Current assets to current liabilities
(times)
Total liabilities to total assets
Debt/Shareholders' Equity total +debt
EBITDA/Interest
Personnel employed
(times)
Annual inflation
México
United States
Perú
Average exchange rate
México (pesos/dollar)
Perú (soles/dollar)
2,821
(673)
1,239
1,669
3,008
(1,352)
1,716
(186)
(1,500)
(1,686)
2,714
(1,591)
1,843
777
(1,125)
422
(290)
1,011
34%
46%
2.0
47%
39%
8.91
34%
47%
2.6
47%
38%
9.85
33%
46%
2.6
48%
40%
8.96
3,761
(1,328)
1,589
(476)
(1,115)
(1,127)
37%
49%
3.3
47%
37%
9.75
30,477
31,596
30,263
29,169
7%
2%
2%
5%
2%
2%
3%
2%
2%
3%
1%
2%
18.93
3.26
19.24
3.28
19.26
3.34
21.50
3.50
Stated in accordance with US Generally Accepted Accounting Principles (US GAAP)
* Throughout the report, tons are metric and ounces are troy.
39
(17)
(14)
161
(1)
(11)
11
6
23
(3)
(7)
9
(4)
-
(50)
-
12
5
23
Inside of the Charcas mine, in San Luis Potosí, México.
We have an unwavering will to generate well-paid
jobs with a high training level.
We are a primary company contributing over 200
thousand indirect jobs and 30 thousand direct
jobs.
In the countries where we operate, in the last 10
years, we have generated economic revenues of
approximately US$77 billion.
24
Fuel storage terminal in Cadereyta, Nuevo León, México.
IA GMX 2020 – GRUPO MÉXICO RESULTS
We have seven greenhouses used to reforest and
thus mitigate the effects of climate change and help
to maintain ecosystem stability.
In the last 10 years, we have invested over US$3 billion
in environmental projects and in the protection of
natural resources.
We have invested over US$1.6 billion in workplace
security, healthcare, and community development
issues in the last 10 years.
In the last 20 years, we closed and redressed six of
our metal smelting and refining plants both in México
and in the United States, and built new plants that
comply with international environmental standards.
25% of our energy consumption is renewable. Our
target is to reach 35% in 2022.
The Ite wetlands in the south of Perú, repaired by Grupo México. Before the Group
acquired Southern Peru, this was a tailings deposit.
The wetlands have 1,600 hectares of water bodies, floating herbs, and grasslands, which
are home to more than 126 species of birds.
Our commitment to the environment and to the
protection of natural resources is unwavering.
26
27
Copper is essential for various industries, as well as
for everyday life. Its use provides great benefits for a
greener, healthier, and more sustainable future.
Panoramic view of the Cananea open pit, Sonora, México.
IA GMX 2020 – MINING DIVISION
MINING
DIVISION
AMERICAS MINING CORPORATION (AMC)
Thousands of dollars
Sales
Cost of Sales
Operating Profit
EBITDA
EBITDA Margin (%)
Net Profit
Profit Margin (%)
Investments/Capex
January - December
2020
2019
Variation
Thousands of USD
7,965,608
4,278,189
2,610,338
3,564,166
44.7%
1,355,681
17.0%
757,696
8,566,209
4,323,484
3,173,980
4,155,134
48.5%
2,030,178
23.7%
627,951
600,601
45,295
563,642
590,968
674,497
(129,745)
%
7.5
1.1
21.6
16.6
49.8
(17.1)
Environmentally friendly warehouses and ore conveyor belts.
31
IA GMX 2020 – MINING DIVISION
The Mining Division is represented by its subsidiary AMC, whose main affiliates
are Southern Copper Corporation (SCC) in México and Perú, ASARCO in the US,
and Minera los Frailes in Spain. We are the copper producer with the highest
organic growth.
•
•
•
•
Leader in copper mining
Largest copper reserves in the world
Lower production costs worldwide
Portfolio of growth mining projects
We have 14 mines, 5 metallurgical complexes, as well as exploration projects in
México, Perú, the US, Spain, Chile, Ecuador, and Argentina.
In the Mining Division, we have invested in 2020:
•
•
•
US$386 million in México
US$206 million in Perú
US$36 million in the US
In 2020, the sales from the Mining Division totaled
US$8.57 billion, 7.5% more than in 2019.
EBITDA was US$4.15 billion, which is equivalent
to 49% of sales.
32
Ball mills for the mineral crushing and grinding process.
Arizona
1
2
4
3
6
9
14
8
12
10
11
Sonora
15
16
New Mexico
Chihuahua
13
19
17
18
Baja
California
7
5
Texas
USA
21
20
Zacatecas
22
23
S.L. Potosí
Gulf of
México
México
Pacific
Ocean
24
25
México City
Michoacán
26
Guerrero
10
11
12
13
14
15
16
17
18
Metallurgical complex
Plant
La Caridad
Mine and plant. Metallurgical complex
Pilares
Copper project
Santa Eulalia
Polymetallic underground mine
Buenavista Zinc
Zinc project
Hermosillo offices
Corporate offices
Guaymas Terminal
Plant
Chihuahua offices
Corporate offices
Central workshop
Plant
19
20
21
22
23
24
25
26
Santa Barbara
Polymetallic underground mine
Chalchihuites
Polymetallic mine project
San Martín
Polymetallic underground mine
Charcas
Polymetallic underground mine
Electrolytic Zinc Refinery
Plant
Angangueo
Polymetallic mine project
México City offices
Corporate offices
Taxco
Polymetallic underground mine
1
2
3
4
5
6
7
8
9
Ray
Mine and plant
Hayden
Plant
Mission
Mine
Silver Bell
Mine and plant
Amarillo
Plant
El Pilar
Copper project and plant
El Arco
Copper project
Lime Plant
Mine and plant
Buenavista del Cobre
Mine and plant
MINING
Spain
Aznalcóllar
Project
Andalucía
1
2
3
4
5
6
7
8
9
10
Chaucha
Copper project
Tantahuatay
Gold mine
Lima offices
Corporate offices
Los Chancas
Copper project
Tía María
Copper project
Cuajone
Copper mine
Toquepala
Copper mine
Ilo
Metallurgical complex
Catanave
Project
Michiquillay
Copper and gold project
Ecuador
1
2
Perú
10
3
4
5
78
6
9
Chile
IA GMX 2020 – MINING DIVISION
COPPER PRODUCTION
Thousands of Tons
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
1,119.2
1,128.9
1,010.6
1,002.1
811.8
822.4
930.2
947.1
198.9
179.7
189.1
181.8
2017
2018
2019
2020
SX/EW
CONCENTRATORS
The second largest
mine in the world,
Buenavista del Cobre
In 2020, we produced over one million 120 thousand tons
of copper, 40 thousand tons more than in 2019, mainly due
to greater production in the Peruvian mines (+2.3%), higher
ore grades and recovery in Cuajone, and greater production
in our US plants (1.7%).
We estimate that, by 2024, we will produce over one million 200 thousand tons
with the start of operations of our growth projects in México: Pilares, El Pilar, and
Buenavista Zinc, and in Perú: Tía María.
36
Refining plant in Nacozari de García, Sonora, México with annual production
of 708,515 tons of refined copper.
IA GMX 2020 – MINING DIVISION
We were the mining company
with the most copper production
in México and Perú, and the third
in the US.
Welding shop.
The best CASH-COST throughout the industry
worldwide: 85 cents per copper pound.
Metal mining pays salaries 16 times higher
than the minimum wage.
We reduced net cash-cost on a global level from $1.07
dollars to $0.85 dollars, -20.5% vs. 2019.
Copper sales in 2020 represented 83% of AMC’s total
sales and 65% of Grupo México’s total sales.
38
39
IA GMX 2020 – MINING DIVISION
What do we produce?
MOLYBDENUM 2%
SILVER 2%
GOLD 4%
ZINC 8%
COPPER 85%
Copper
Wound coils of copper rod at Rod plant, Esqueda, Sonora, México.
USES
Energy
Clean Energy
Manufacturing
Construction
•
•
•
•
Safe transmission and
generation of electric energy
Energy storage
Distribution
Substations
•
Wind and solar energy
(electric energy wind and
solar panels)
•
•
•
•
•
•
•
All household appliances
Hybrid and electric cars
Electric batteries
Computers and peripherals
Cell phones
Microchips
Engines
•
•
•
•
•
•
•
•
•
•
Buildings
Houses
Industrial facilities
Pipes
Drinking water
Rooftops
Air conditioning and heating
Window frames
Cooling systems
Surfaces for handrails and door handles
Transportation
•
•
•
•
•
Cars and trucks
Railroad industry
Aircrafts
Maritime transportation
Aerospace industry
PROPERTIES
•
•
•
•
•
Malleability, which makes it possible to create various tools.
Conductibility, ductility, heat-resistance, which make it the
perfect material for conveying electric energy and for electronics.
Flexibility and corrosion-resistance make it ideal for plumbing.
Its unparalleled antimicrobial properties have made it an
essential material for the healthcare industry: medical and
hospital equipment.
Its various properties, together with its high recyclability make it
the perfect ally for environmental protection.
Healthcare industry
•
Medical and hospital equipment
(ventilators, hearing devices,
EEGs, MRIs)
Aquaculture
Chemical products
Alloys
•
Nets for fish and seafood farms
•
•
•
Fertilizers
Bactericides
Pest control
•
•
With tin and zinc, it produces bronze
and other consumer products
With zinc, it produces brass
41
IA GMX 2020 – DIVISIÓN MINERA
Zinc
Gold
Silver
Molybdenum
S
E
S
U
•
Automotive industry: galvanization of steel sheets.
As zinc oxide, it is used to manufacture tires,
paints, etc.
•
Telecommunications: global positioning system units (GPS).
•
Electronics: microchips, electronic and photographic
equipment.
•
Industries and manufacturing: manufacturing of
stainless and resistant steel.
•
Agribusiness: fodder for cattle.
•
Industry in general: pressure die casting.
•
Computer and server equipment.
•
Jewelry, minting, and decorative items.
•
Industrial: welding alloys.
•
Petrochemicals: catalysts for the oil and gas industry.
•
Jewelry, minting, and decorative items.
•
Chemical products: materials for the aviation industry,
fertilizers, dyes, enamels, reagents and lubricants.
S
E
I
T
R
E
P
O
R
P
•
•
•
Its anti-rust and anti-corrosive properties
make it ideal fo galvanizing steel sheets,
used as a coating for iron and steel to protect
them against corrosion.
Energy storage; it can store six times more
energy than other battery systems. Moreover,
it is 100% recyclable.
Its low melting point, malleability, and high resistance
make it apt for manufacturing in pressure casting,
as well as brass.
42
•
Good heat and electricity conductor, does not tarnish.
•
Thermal and electric conductivity.
•
Given its thermal conductivity and high melting point,
it is suitable for manufacturing more resistant steels.
•
Impermeable to moisture and acids; does not rust.
•
Resistant to oxidation.
•
It is the most ductile and malleable element.
•
Malleability and ductility make it perfect for
welding alloys.
•
Super-alloy component.
•
Catalyst in the oil and gas industry.
•
It is present in the industries of: aviation, fertilizers, dyes,
enamels, reagents, electronics, and lubricants.
43
IA GMX 2020 – MINING DIVISION
PRODUCTION SUMMARY
MINE
Copper Content in Concentrates
Copper Leachate Content
2017
811,771
198,859
2018
2019
2020
822,395
179,666
930,156
189,090
947,086
181,841
Total Copper Content
1,010,630
1,002,061
1,119,246
1,128,927
Zinc Content in Concentrates
Lead Content in Concentrates
Gold Content in Concentrates (oz.)
68,665
20,246
66,863
70,778
22,081
70,196
73,922
22,567
68,698
68,930
20,358
73,186
Silver Content in Concentrates (oz.)
17,657,006
18,303,215
21,315,505
22,810,470
Molybdenum Content in Concentrates
21,328
21,985
26,886
30,248
* Figures in metric tons except where otherwise stated.
Leaching heaps in Cananea, Sonora, México.
SMELTER AND REFINERY
Copper anodes
Refined Electrolytic Copper
Refined Copper Cathodes (SX/EWs)
Total high-purity refined copper
Copper wire rod
Refined copper slab
Refined Zinc and Alloys
Refined gold (oz.)
Refined silver (oz.)
Sulfuric Acid
Cadmium
Lime
2017
2018
2019
2020
742,620
643,122
198,859
841,981
269,834
12,431
104,402
50,835
722,071
630,390
179,666
810,056
266,180
7,790
107,536
49,731
683,698
582,736
189,090
771,826
244,070
6,050
633,801
526,674
181,841
708,515
199,427
–
104,977
102,440
45,690
42,229
13,688,184
13,582,751
12,587,711
13,887,942
2,717,210
608
275,683
2,716,985
632
254,596
2,612,097
609
274,056
2,352,409
640
279,626
44
45
IA GMX 2020 – MINING DIVISION
Baja
California
Sonora
3
1
2
4
Zacatecas
5
6
Michoacán
PROJECTS
IN MÉXICO 2020
1
2
3
Buenavista Zinc
Zinc project
Pilares
Copper project
El Pilar
Copper project
4
5
6
El Arco
Copper and gold project
Chalchihuites
Underground polymetallic mine project
Angangueo
Underground polymetallic mine project
Pilares, Sonora, México.
Investments
In México we are currently working on several
mine projects with an investment of over
US$10.80 billion.
46
47
IA GMX 2020 – MINING DIVISION
PROJECT SUMMARY
Investment
(Millions of USD)
Progress
Operation
starting date
Jobs
Capacity
Mine years
of life
•
•
Detailed engineering in process.
Purchase orders for machinery
and equipment initiated.
•
Completed 10km road.
•
•
•
•
•
•
The testing of the pilot plant
was completed.
The results obtained in the pads
of the leaching process show
copper recovery levels that confirm
the sound profitability of the project.
One of the largest undeveloped
copper deposits in the world.
The detailed engineering has
been started.
Environmental and social impact
assessment under development.
Exploration and metallurgic testing
works have been completed and
pilot plant.
•
Exploration concluded.
•
•
Basic engineering completed.
Environmental impact assessment
has been requested.
Buenavista Zinc
Pilares
El Pilar
$413
$159
$310
El Arco
$8,893
Chalchihuites
Angangueo
Total
48
$650
$400
$10,825
3Q 2023
2,500
2Q 2022
1,200
98,000
Tons of zinc
38,000
Tons of copper
4Q 2023
2,300
48,000
Tons of copper
190,000
Tons of copper
100,000
Ounces of gold
48,000
Ounces of zinc eq.
19,500
Tons of copper
2025
6,600
4Q 2024
2,900
2025
2,300
17,800
15
10
14
35
13
14
49
Amarillo
Northern Copper Circuit
California
Baja
California
Ray
Silver Bell
Mission
Hayden
Arizona
New Mexico
El Pilar
Buenavista
La Caridad
Pilares
Esqueda
El Arco
Submarine connection
Sonora Baja
California
Guaymas
Sonora
Chihuahua
Electric transmission
line
Sinaloa
Baja
California
Sur
Transmission line
Mine
Smelter and refinery
Marine terminal
Combined cycle electric
energy generation plant
IA GMX 2020 – MINING DIVISION
Baja California and Sonora
Between 2021 and 2025, the group has scheduled an investment
in mining totaling US$8.89 billion in Sonora and Baja California.
Benefits:
•
Refined copper production
•
Gold production
•
Zinc production
•
•
Total jobs
Annual sales
•
Annual taxes
874 thousand tons annually
100,000 ounces annually
108,000 tons annually
42,721
US$8.84 billion
US$1.58 billion
•
Percentage of national copper production
89%
The project includes, in addition to mines, smelting plants and refineries:
•
A desalinating plant with a capacity of 25 million m3 / year, 100% of industrial consumption.
•
El Barril, Baja California, seaport and expansion of the Guaymas, Sonora, seaport.
•
Electric interconnection between Sonora and Baja California through submarine 500 MW cable
and later in Mexicali.
•
Electric transmission line: 230 kV El Barril – La Paz – Los Cabos.
•
Two marine terminals: Sonora and Baja California.
Arizona and Texas
In Arizona and Texas, in the same period, the plan is to invest
US$1.91 billion.
•
Copper production
•
•
Total jobs
Annual sales
120,000 annual tons
10,650
US$991 million
New copper concentrator at Ray
•
US$450 million
New copper concentrator at Silver Bell
• US$900 million
•
50 thousand tons of copper/year
• 70 thousand tons of copper/year
50
51
Panoramic view of Cuajone mine in Moquegua, Perú.
In Perú, we are working on investments
totaling US$1.10 billion.
Southern Copper
Circuit
3
4
1
2
3
4
5
6
7
Tía María
Copper projet
Los Chancas
Copper projet
Michiquillay
Copper and gold projet
Tantahuatay
Gold mine
Cuajone
Copper projet
Toquepala
Copper projet
Ilo
Metallurgical complex
2
1
56
7
52
53
IA GMX 2020 – MINING DIVISION
PROJECT SUMMARY
Investment
(Millions of USD)
Progress
Operation starting
date
Jobs
Capacity
Mine years
of life
Tía María, located in the La Joya desert, to the north of Cocachacra, Islay, Perú.
•
•
•
•
•
•
•
Basic engineering, exploration and
metallurgical testing completed.
Construction permit pending.
Generation of basic engineering
and feasibility study.
Pre-feasibility study under development.
Exploration works underway.
Social impact assessment underway.
Two concentrator plants in
operation.
•
Engineering started.
•
Engineering and pre-feasibility
assessment started.
$1,750
$2,600
$3,146
$1,350
$1,200
$1,200
$11,246
Tía María
Los Chancas
Michiquillay
Toquepala expansion
Cuajone expansion
Ilo smelter
Total
54
3Q 2024
4,800
2025
5,500
2027
6,200
In operation
2,000
2024
2,000
120,000
Tons of copper
cathode
148,000
Tons of copper eq.
269,000
Tons of copper eq.
250,000
Tons of copper
80,000
Tons of copper
21
20
40
29
39
2Q 2025
1,500
950,000
Tons of concentrates
250,000
Tons of copper
N/A
22,000
55
Zaragoza
Barcelona
Madrid
Aznalcóllar
Sevilla
Projects in Spain
Aznalcóllar municipality, Seville province, Andalucía
Aerial view of the Aznalcóllar municipality, Seville, Spain.
ZINC
Project progress:
•
•
Feasibility study completed with appealing results.
New hydrogeologic model prepared, validated by the relevant water
authorities.
•
We obtained a statement of Greater Public Interest Project from the Junta
of Andalusia (Regional Government of Andalusia), ratifying the project’s
relevance and positive socioeconomic and environmental impact.
•
Environmental assessments and securing of initial construction permits are
being processed.
Once in operation, Aznalcóllar will produce
Roughly 125 thousand tons of zinc annually
over the more than 20 years of the mine’s life.
56
57
IA GMX 2020 – MINING DIVISION
Grupo México is the company with the
largest reserves SEC-registered in the US.
Other explorations
CHILE
Cobre Sol Project, Antofagasta
Copper porphyry in the Atacama desert.
•
Exploration drilling has begun.
Montonero Project, Atacama
Copper and gold project.
Aerial view of the Río Negro Province and Los Menucos in Argentina.
ARGENTINA
•
The pre-feasibility study for the leaching and SX/EW project will be performed.
Cañadón del Moro Project, Río Negro
ECUADOR
Ruta del Cobre Project, Cuenca
Copper and molybdenum porphyry.
•
Under exploration since 2014, stage of the exploration program at 50%.
Gold and silver deposit with 7.6 km veins and breccias with a thickness of 6
to 60 meters.
•
Silver ore grades of 9.4 oz. per ton.
Esperanza, Los Menucos, Río Negro Project
Gold deposit in exploration program at 20%.
58
58
59
Training in Charcas Underground Mine in San Luis Potosí, México.
Safety and Occupational Health
We ended the year with zero fatalities; accidents and
days lost rates decreased by 44% and 78%, respectively,
compared to 2019.
Minera México obtained three Silver Helmets out of the
six awarded by the Mexican Mining Chamber.
We have three schools in México and seven in Perú, from kindergarden up to middle school,
fully funded by the company. Soon, the schools will offer all grades through high school.
Communities
In 2020, our Community Development programs migrated to virtual mode as
a result of the pandemic.
•
•
•
4,634 workshops were held online.
290 thousand social media users, 63% more than in 2019.
3,667 students at educational centers sponsored by the company in
México and Perú continued their school programs remotely.
60
61
IA GMX 2020 – MINING DIVISION
Our commitment to build a better country for
future generations is unwavering.
We have invested over US$100 million in the last
five years in projects that foster an increase in
the quality and volumes of water available to the
neighboring communities of our operations.
We recycle 75% of the water we use in our operations.
In 2020, the Mining Division paid US$53 million for
water rights.
Water
62
The Cularjahuira dam was developed together with the Peruvian government to supply
water to over one thousand farmers in the Tacna region.
4400 HP locomotive with bulk hoppers.
COVERAGE
24 Mexican states representing 86% of the GDP
and Florida and Texas in the US.
IA GMX 2020 – TRANSPORTATION DIVISION
TRANSPORTATION
DIVISION
GRUPO MÉXICO TRANSPORTES (GMXT)
Thousands of dollars
Net ton kms (millions)
Carloads
Sales
Cost of Sales
Operating Profit
EBITDA
EBITDA Margin (%)
Net profit
Profit Margin (%)
Investments / Capex
January - December
2020
2019
Variation
Thousands of USD
%
65,444
1,887,766
2,473,004
1,331,524
693,063
1,096,148
44.3%
312,450
12.6%
342,663
62,823
1,753,069
2,158,312
1,119,200
605,341
944,211
43.7%
274,745
12.7%
268,979
(2,621)
(134,697)
(314,692)
(212,324)
(87,722)
(151,937)
(4.0)
(7.1)
(12.7)
(15.9)
(12.7)
(13.9)
(37,705)
(12.1)
(73,684)
(21.5)
Unit grain train in the La Barca district, Jalisco, México.
67
IA GMX 2020 – TRANSPORTATION DIVISION
IA GMX 2020 – TRANSPORTATION DIVISION
We have increased
the percentage of
carloads since 1998
by 420%.
Grupo Mexico’s Transportation Division is represented by its subsidiary
GMéxico Transportes, S.A.B. C.V. (GMXT). At GMXT, we provide logistics
solutions for safe, efficient, and sustainable ground cargo transportation,
that contribute to strengthen the connectivity and competitiveness of the
markets where we participate.
GMXT’s main subsidiaries are:
•
•
•
•
•
Ferrocarril Mexicano, S.A. de C.V. Ferromex
Ferrosur, S.A. de C.V. Ferrosur
Florida East Coast Railway, L.L.C (FEC)
Texas Pacífico LP, Inc. (TXPF)
Intermodal México, S.A. de C.V. (IMEX)
Railroad cargo transportation, an essential
activity, worked unwaveringly throughout 2020,
transporting essential products during the
pandemic.
68
Locomotive at the repair and maintenance workshop “Casa Redonda”, Guadalajara, Jalisco, México.
IA GMX 2020 – TRANSPORTATION DIVISION
CSX / NS
Jacksonville
Orlando
Fort Pierce
West Palm Beach
Fort Lauderdale
Miami
UP
Mexicali
Pascualitos
UP
Nogales
BNSF /UP
Cd. Juárez
El Paso
Benjamín Hill
Hermosillo
Ft. Stockton
Alpine
Ojinaga
Presidio
BNSF / FWWR
Coleman
San Angelo
BNSF / CN /
CSX / NS
Mobile
Chihuahua
Piedras Negras
BNSP / UP
Eagle Pass
Guaymas
Sufragio
Cd. Frontera
Topolobampo
Culiacán
Torreón
Paredón
R. Arizpe
Monterrey
Cd. Victoria
Mazatlán
Zacatecas
Aguascalientes
Tepic
Guadalajara
Silao
Celaya
Pénjamo
Irapuato
Colima
Ajuno
México
City
Manzanillo
Altamira
Tampico
Veracruz
Coatzacoalcos
Puebla
Sánchez
Salina Cruz
GMXT NETWORK
SYMBOLOGY
Rights of way
Coatzacoalcos-Mobile
Railferry
Veracruz-Miami
Railferry Project
We connect the US and Canada
through five border crossings.
We serve five ports along the
Pacific Coast and four in the Gulf
of México.
We offer competitive rates,
35% lower than trucks.
Our network is supported by:
•
•
•
•
Over 10,600 highly-trained employees.
816 locomotives.
Over 11,136 km of track.
Over 27,753 railroad cars.
Since 1998, we have:
•
•
Quadrupled our cargo capacity.
Increased the share in the relevant ground cargo
transportation vs. trucks.
Find out more about GMXT, a leader in
cargo transportation.
IA GMX 2020 – TRANSPORTATION DIVISION
Infrastructure crew checking a stretch of railroad on the Pacific to identify and
fix defects and risks.
SHARE OF CARGO TRANSPORTATION IN MÉXICO
Relevant market
Train
18.8%
train
25.6%
truck
81.2%
1999
Companies
2019
gmxt
35%
KCSM
65%
gmxt
64%
1999
2019
truck
74.4%
KCSM
36%
72
73
IA GMX 2020 – TRANSPORTATION DIVISION
In 2020
Our sales
totaled US$2.16
billion.
We transported
62.82 billion
tons-km.
We hauled
1,753,069 cars.
Our EBITDA totaled
US$944 million, with a
43.7% margin, mainly
due to operating
improvements, which
resulted in a 15.9% cost
reduction.
In México, track maintenance is paid
by the concessionaire, while federal
highway maintenance is paid by the
government.
74
The handbrake is a security device; it is used to: stop the locomotive when there is a downslope, for
parking, or when the maintenance crew performs electromechanical tests.
IA GMX 2020 – TRANSPORTATION DIVISION
IA GMX 2020 – DIVISIÓN TRANSPORTES
OPERATING METRICS
TRAIN SPEED
(Km/hr)
DWELL TIME
(Hours)
+290%
38.2
9.8
35
30
25
20
15
10
5
-21%
28.0
22.2
1998
2020
2018
2020
TRAIN LENGTH
(Meters)
GROSS TONS PER TRAIN
(Tons)
40
35
30
25
20
15
10
5
2,000
1,500
+51%
+506%
6,061
7,000
6,000
5,000
4,000
3,000
2,000
1,000
1,000
1,227
1,857
500
1998
2020
1998
2020
1,000
77
We transport LP gas from the US and Canada
through unit trains to meet the household and
industrial needs of the states of Coahuila,
Chihuahua, Sinaloa, and Sonora.
Tank cars in railroad terminal.
Industries served
At GMXT, we provide logistic solutions for all types of industries. Our business
portfolio is divided into nine subsegments: agricultural, intermodal, metals,
minerals, automotive, chemicals, energy, industry, and cement.
Automotive train, Puebla, México.
06 > 07
IA GMX 2020 – TRANSPORTATION DIVISION
REVENUE DIVERSIFICATION BY PRODUCTS
Cement
5%
Others
5%
Metals
5%
Industrial
7%
Energy
8%
Automotive
8%
AGRICULTURAL
28%
intermodal
14%
Chemicals
8%
Minerals
12%
We transport over 7.2 million finished
consumer products per year in over 700
thousand containers for the domestic and
international markets.
Our network serves the 12 main automotive
plants in México, which represent 80% of the
market. We transport 60% of the country’s
automotive export cargo.
79
IA GMX 2020 – TRANSPORTATION DIVISION
Our Investments
•
•
•
•
•
Reconstruction and modernization of our network.
Construction of new sidings, yards, and terminals.
Process and telecommunication automation throughout the network.
Level crossing signals.
Bypass construction.
Sustainable Vision
In order to reduce GMXT’s carbon footprint by 10% by 2023:
•
We started the conversion of hybrid locomotives that use a larger share
of gas than diesel.
•
Our locomotives have an intelligent system to optimize their performance
and fuel management, which also makes the journeys safer.
•
We have achieved the maximum reduction in the time locomotives
spend in yards, cutting dwell times and energy consumption.
•
We optimized railway traffic.
Liquefied natural gas tank car for hybrid, environmentally-friendly locomotives.
In 2020, despite the pandemic, we invested
US$269 million.
40% of our energy consumption comes
from our own sources.
80
81
IA GMX 2020 – TRANSPORTATION DIVISION
Safety and Occupational Health
Operational safety is a priority at every level of our organization, with the
goal of operating with zero accidents and ensuring the integrity of our
10,683 employees.
We offered courses to over 600 employees.
During 2020, 8,870 employees received safety and occupational health
training, totaling 136,700 man-hours.
We have 37 medical care units across the country, staffed by 25 general
practitioners and 140 nurses.
82
Welding of gondola.
Level crossing, Lagos de Moreno, Jalisco, México.
Aware of the importance of saving lives, and as no public budget had been allocated
to level crossing signals, we voluntarily rehabilitated and installed electronic barriers
to prevent the crossing of vehicles and pedestrians prior to the passing of the train
at the crossings with the highest accident rates, considering that maintenance will
be in charge of the federal, state and municipal governments, since 2018, we have
signalized 66 crossroads; thanks to this project, accidents at level crossings
have decreased by 36.1%.
The Chepe Regional train did not suspend its services despite the pandemic. The
Chepe Express train reactivated its services in July 2020. Health protocols approved
by the governments of Chihuahua and Sinaloa were successfully implemented,
helping us to receive the “Safe Travel” distinction awarded by the WTTC.
84
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Chepe Express, Chihuahua, México.
Tabasco Rig, México.
OIL RIGS
We ended 2020 with
six operational rigs.
IA GMX 2020 – INFRASTRUCTURE DIVISION
INFRASTRUCTURE
DIVISION
MÉXICO PROYECTOS Y DESARROLLOS (MPD)
Thousands of dollars
Sales
Cost of Sales
Operating Profit
EBITDA
EBITDA Margin (%)
Earnings before tax
Taxes
Deferred tax
Net Profit
Profit Margin (%)
January - December
2020
2019
Variation
Thousands of USD
%
579,782
293,671
151,404
272,389
47.0%
91,519
46,604
249
44,666
7.7%
527,638
251,789
138,717
266,579
50.5%
84,074
32,245
11,770
40,058
7.6%
(52,144)
(41,882)
(12,688)
(5,810)
(7,445)
(14,359)
11,521
(4,607)
(9.0)
(14.3)
(8.4)
(2.1)
(8.1)
(30.8)
4,629.4
(10.3)
Construction of Fenicias Wind Farm in Nuevo León, México.
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IA GMX 2020 – INFRASTRUCTURE DIVISION
Our Infrastructure Division is represented by subsidiary México Proyectos y Desarrollos,
S.A. de C.V. (MPD), and it focuses on six business lines:
•
•
•
•
•
•
Perforadora México
México Generadora de Energía
- Combined cycle plant in La Caridad, Sonora
- El Retiro Wind Farm in Juchitán, Oaxaca
- Fenicias Wind Farm, Nuevo León (under construction)
Construction
Engineering
Salamanca - León Highway / Silao Bypass
Fuel storage
- Cadereyta, Nuevo León
- Monterrey, Nuevo León (project under development)
- Guadalajara, Jalisco (project under development)
- Aguascalientes, Aguascalientes (project under development)
Aerial view of the Salamanca-León highway, in the Bajío, México area.
91
1
Sonora
6
5
4
Nuevo León
Pacific
Ocean
3
9
8
Guanajuato
10
2
Jalisco
INFRASTRUCTURE
SYMBOLOGY
Energy
Highway
Perforadora México
Fuel Terminal
IA GMX 2020 – INFRASTRUCTURE DIVISION
Combined cycle plant
Nacozari, Sonora
Guadalajara Fuel Terminal
Project under development
Aguascalientes Fuel Terminal
Project under development
Cadereyta Fuel Terminal
Nuevo León
Monterrey Fuel Terminal
Project under development
Fenicias Wind Farm
Project under development
El Retiro Wind Farm
Juchitán, Oaxaca
Salamanca-León Highway
Silao Bypass
1
2
3
4
5
6
7
8
9
Land Drilling Base
Poza Rica, Veracruz
Offshore Drilling Base
Ciudad del Carmen, Campeche
“Tamaulipas” Oil Rig
“Veracruz” Oil Rig
“Sonora” Oil Rig
“Tabasco” Oil Rig
“Zacatecas” Oil Rig
“Campeche” Oil Rig
“Chihuahua” Oil Rig
10
11
12
13
14
15
16
17
18
18
17
11
16
Campeche
Gulf of
México
14 15
13
12
Tabasco
Veracruz
7
Oaxaca
IA GMX 2020 – INFRASTRUCTURE DIVISION
The investment in the new Fenicias
Wind Farm totals US$250 million.
Find out more about the Wind Farm.
Despite the difficulties resulting from the pandemic, we
invested US$218 million in 2020.
•
US$127 million: construction of the new Fenicias Wind Farm in the north of the
country (total investment of US$250 million), expected to start operations in the
first quarter of 2021.
•
•
•
US$13 million: highway projects (Salamanca-León and Silao Bypass).
US$6 million: initial investment in Fuel Terminals.
The rest was invested in the various business lines of the division.
For 2021, investments totaling US$228 million are scheduled, mainly in:
•
US$90 million: Fuel Storage terminals in the various strategic points across
México.
•
•
•
US$77 million: conclusion of the construction of the Fenicias Wind Farm.
US$12 million: highway projects.
Construction of the Playa del Carmen - Tulum tranche of the Mayan Train.
94
New Fenicias Wind Farm with 4 MW capacity per wind turbine.
IA GMX 2020 – INFRASTRUCTURE DIVISION
Perforadora México
•
•
•
•
Sales: US$172 million.
EBITDA: US$85 million.
Historic operating efficiency at 99.5%.
Uninterrupted operation of our oil rigs.
MARINE DRILLING
•
On our six rigs, we work in what is known as ‘shallow water’ and we operate
at ‘depth’, ranging from 20 to 90 meters.
LAND DRILLING
•
•
Sales: US$6 million.
We completed the land drilling contract for geothermal wells at the San
Pedro Dome, Nayarit.
•
We executed three service contracts for land cementations for various
private clients.
SUSTAINABILITY
•
The Clean Industry certificates issued by the Federal Environmental Protection
Agency (PROFEPA) were renewed for all the offshore platforms.
•
We received the Self-management and Health at Work Program (PASST) level 2
acknowledgment from the Ministry of Labor and Social Welfare (STPS).
•
We obtained the certificate of compliance with standard NOM-035-STPS (Psycho-
social risk factors).
•
We have international Environment certification ISO 14001 and and Occupational
Health and Safety certification ISO 45001.
96
Veracruz Oil Rig control panel.
Energy
US$230 million, 2% more
than in 2019
US$122 million in EBITDA,
4% more than in 2019
EL RETIRO WIND FARM:
•
•
•
•
Wind turbines: 37
Capacity: 74MW
EBITDA margin: 24% more than in 2019
Energy generated: 171,778 MWh, 7% more than in 2019
NEW FENICIAS WIND FARM, NUEVO LEÓN (UNDER CONSTRUCTION):
IA GMX 2020 – INFRASTRUCTURE DIVISION
IA GMX 2020 – DIVISIÓN INFRAESTRUCTURA
Wind Farm in Juchitán, Oaxaca, México.
•
•
•
We achieved the goal of zero accidents among our in-house staff and contractors.
Since 2019, we achieved the Clean Industry certifications.
We have successfully passed Ecuador’s audit of principles, which includes
Wind turbines: 42
•
•
•
•
•
Capacity: 168 MW for the supply of electric energy in our mining and
environmental topics and evaluates the interaction with our neighboring
metallurgical operations in IMMSA
Project progress: 83%
Investment to date: US$177 million (71% of the project’s total cost)
Start of operations: first quarter of 2021
communities, seeking the promotion and protection of human rights.
The Energy division ended the year with a “zero”
accidents index during 2020.
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IA GMX 2020 – INFRASTRUCTURE DIVISION
COMBINED CYCLE PLANT GENERATION IN LA CARIDAD, SONORA.
US$217 million
Sales Generator Plant, 4% higher than in 2019
US$112 million in EBITDA
3,437 GWh
Total production
•
In the Caridad generator plant, we obtained the Great Place to Work ®
certification, which assesses the work environment for employees as it
relates to the company’s performance.
•
We have been recognized as a Safe Company (PASST, level 3) issued
by the STPS.
•
We have the national Clean Industry certificate (PROFEPA).
In terms of Health and Safety,
the Caridad plant has achieved
a record of seven years without
incapacitating accidents.
Combined cycle plant in La Caridad, Sonora, México.
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IA GMX 2020 – INFRASTRUCTURE DIVISION
IA GMX 2020 – DIVISIÓN INFRAESTRUCTURA
MAIN WORKS
•
Celaya, Guanajuato, Railway Bypass for Ferromex, expected to
be completed in 2021.
•
New tailings dam at Buenavista del Cobre, Sonora, estimated
completion date March 2021.
•
With Mexicana de Cobre in Nacozari, Sonora, we concluded the
superelevation of the curtain of Tailings Dam no. 7, as well as
the additional construction works for the access road to the
curtain and the spillway.
•
Construction of the road to haul materials from the Pilares Mine
to the La Caridad Mine; estimated delivery by March 2021.
•
Expansion of Agua Prieta lime plant in Sonora. We are working
on developing the detailed engineering, and soon we will start
construction of the crushing and storage areas. It is estimated
to be completed in September 2021.
•
With Operadora de Infraestructura del Bajío, we carried out
maintenance works on the Salamanca-León Highway. We
estimate completion by August 2021.
SUSTAINABILITY
We have valid certifications until 2022: Quality ISO 9001:2015, Environmental ISO
14001:2015, and Occupational Safety and Health ISO 45001:2018.
Throughout 2020, the results of the index on incapacitating occupational accidents
continued to improve, achieving a result of 0.31. This figure is well below the average
Tailings dam at Buenavista del Cobre, Sonora, México.
Construction
Income
US$77 million
EBITDA
US$23 million
Revenues came mainly from the works hired throughout the year with the Ministry
published by OSHA (5.4), and represents a 6% improvement in our performance; on
of Communications and Transportation (SCT), Buenavista del Cobre, Mexicana de
the other hand, the severity rate decreased by 59%.
Cobre and Ferromex.
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IA GMX 2020 – INFRASTRUCTURE DIVISION
Highways
US$34 million in Income
WE CURRENTLY HAVE TWO HIGHWAY CONCESSIONS:
1) Salamanca-León Highway: Both tranches are in operation.
9,955 vehicles
Daily traffic, 23%
lower vs. 2019
17,138 units
Daily traffic equivalent
by type of vehicle
2) Silao Bypass: Tranche 2, spanning 11.6 km, started operations in September 2019.
1,574 vehicles
Daily traffic, 12%
lower vs. 2019
1,785 units
Daily traffic equivalent
by type of vehicle
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Aerial view of the Salamanca–León highway.
IA GMX 2020 – INFRASTRUCTURE DIVISION
Engineering
•
•
•
Diversification of our client portfolio.
Our workforce grew 36%, with 533 employees by the end of 2020.
We obtained the Great Place to Work® certification, which is in charge of assessing the
work environment for employees with regard to the company’s performance.
Assembly of a wind turbine in the Fenicias Wind Farm in Nuevo León, México.
In Engineering, we achieved 40% higher
sales than in 2019, and we had the highest
production in the company’s history.
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06 > 07
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IA GMX 2020 – INFRASTRUCTURE DIVISION
Fuel Storage
Over 715,000 liters shipped daily at the
Cadereyta terminal (4 thousand 500 barrels or
6.8 gasoline and diesel tank cars), 10% of the
total demand in Monterrey.
We are developing two fuel storage terminals (Monterrey and Guadalajara,
with capacities for 375 thousand and 505 thousand barrels, respectively),
and a shipping terminal in Aguascalientes, with capacity for 12 thousand 500
daily barrels, which have contracts for 10 years, and 100% of their capacity
allocated. They will become operational in 2022.
Our operations adhere to the Industrial Safety, Operational Safety and
Environmental Protection System (SASISOPA), overseen by the Safety,
Energy, and Environment Agency (ASEA). Thus, we ensure the protection of
our personnel and care of the environment.
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Fuel storage terminal in Cadereyta, Nuevo León, México.
Ongoing commitment
In 2020, we donated over 1.9 million trees
to municipalities in 20 states of México.
Tree Nursery, San Luis Potosí, México.
FUNDACIÓN
GRUPO MÉXICO
IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
Fundación Grupo México (FGM) is a non-profit organization whose mission is to develop
innovative and sustainable programs to contribute to the strengthening of the communities
Dr. Vagón in Atoyac, Veracruz, México.
and Civil Society Organizations.
We work through four axes:
•
•
•
•
Health
Environment
Support to Institutions
Education and Culture
Health
Dr. Vagón, the Health Train, provides medical services, medicines, and treatment
free of charge along three lines of action:
This year, the Foundation prioritized the COVID-19 pandemic and devoted significant
human and financial resources to support various institutions and communities where we
are present, as well as vulnerable groups to mitigate the impact of the pandemic.
•
•
•
Disease prevention
Early detection
Early treatment
The Foundation was confirmed as a member of the Mexican Network of the United Nations
Given the COVID-19 pandemic and in observance of the health recommendations,
Global compact, the largest corporate social responsibility network in the world, involving
The Health Train suspended operations in March to prevent COVID infections.
companies in all sectors and of all sizes.
During January and February, Dr. Vagón
served 14,201 patients in communities
across Oaxaca and Veracruz.
We appreciate and acknowledge the great work of our partners: Fundación
Farmacias del Ahorro, Fundación MVS Radio, Audiotech, FUCAM, LAPI, Essilor
and Grupo QP360.
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IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
SINCE ITS BEGINNINGS, DR. VAGÓN HAS PROVIDED:
1,518,306
patients
with care
284,076 lab
and clinical
tests
174,474 attendants
to workshops
594,603 free
medicines
51,497
eyeglasses
2,185 hearing
aids
Professional medical team before Caleb’s surgery.
17,842
mammograms
250 Vasectomies1
867 IUDs1
Hearing Without Borders
1Started services in 2019
Over the last few months of this year, we finished putting together what is
now known as the Hearing Without Borders program.
Optometry checkup on Dr. Vagón.
Through this program, we assist children of up to 24 months of age
with severe and acute deafness (loss of hearing), donating surgically-
placed cochlear implants. They are also given three years of monitoring
with auditory-verbal therapy and calibration of the external processor, in
order to achieve spoken language.
Our goal is to support 52
children per year.
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IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
This would not be possible without the commitment, effort and selfless
work of
2 Audiologists
3 Surgeons
1 Pediatrician
3 Therapists
2 Psychologists
1 Geneticist
4 Anesthesiologists
1 Ophthalmologist
Caleb recovering after the implant surgery.
What is a cochlear implant?
It is an electronic medical device that improves the functioning of a damaged
inner ear. Contrary to hearing aids, which amplify sound, cochlear implants
perform the task of the damaged parts of the inner ear (cochlea) to send sound
signals to the brain.
It is possible to have implants in both ears when the hearing problem affects
both ears (bilateral) or in a single ear (unilateral).
Learn more on our web page.
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Reforestation day.
Environment
Mexicanos Sembrando
•
We operate seven tree nurseries in México, located in Sonora, Coahuila,
•
•
•
Zacatecas, and San Luis Potosí.
The nurseries produce over six million trees and plants annually.
90 different species.
Goal: To reforest and thus mitigate the effects of climate change and help to
maintain the stability of all ecosystems.
Our nurseries save 70% of the water
required for their production.
We have reforested 1,900 hectares, generating
awareness about the care and protection of
the environment among children and teens
throughout México.
119
Nursery in Cananea, Sonora, México.
Associations Network Expo, 2019 Congress.
Support to Institutions
Within the area of Support to Institutions, we have two programs:
Cinemex Awareness and the Network of Entrepreneurial Associations and
Foundations, whose goal is to provide Civil Society Organizations (SCO) with
tools to strengthen the social work they do in order to have a greater impact
on their actions and on the country.
IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
Network of Entrepreneurial
Associations and Foundations
The Network promoted trainings, forums, workshops, spaces for engagement,
conferences and seminars free of charge for the participating Civil Society
Organizations.
It has 277 allies including Entrepreneurial Foundations, Socially Responsible
Enterprises, Social Agencies, Academia, and over four thousand organizations,
both in México and abroad.
Institutional Alliances:
•
•
•
152 Entrepreneurial Foundations and Companies with Social Activity.
98 Social agencies and legal firms.
17 Academic Institutions.
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IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
Associations Network Expo
In 2020, the Expored.org virtual platform was created, making it possible to achieve a
greater impact and international visibility for the first time.
•
•
•
•
•
40 experts from México, Spain, Colombia, Brazil, Argentina, and Italy.
1,221 people attended Expo Red virtually, 869 through the Expored.org platform,
and 352 connected through Social Media; 230% more attendants than in 2019.
19 hours of training sessions.
4 expert panels; 8 master talks.
Spokespersons gave a pro-bono talk at the event: Karla Iberia Sánchez, Marion
Reimers and Ana Claudia Talancón.
Conference to allies of the Network of Entrepreneurial Associations and Foundations.
157
Training sessions: 18 on-site and
139 online, 20% more than in 2019
437
Hours of learning
41
Allies to professionalize
organizations
570
Counseling sessions
through the online chat
Out of the organizations
trained in fundraising, 63%
modified and innovated their
financial campaigns
13,946
Employees trained; 163%
more than in 2019
89
Fiscal and legal counseling sessions,
channeling them to Centro Mexicano
Pro-Bono, Barra Mexicana de Abogados,
and Appleseed México
The first generation of Fundraising
Professionals of the Network was
created, in alliance with the National
Board for the Normalization and
Certification of Work Skills (CONOCER)
and La Salle International Foundation
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IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
IA GMX 2020 – DIVISIÓN INFRAESTRUCTURA
IA GMX 2020 – GRUPO MÉXICO FUNDACIÓN
Education and Culture
Editorial Fundación Grupo México
Colección Xocoyo
The 2020 edition was dedicated to peanuts (“cacahuate” in spanish), given their
relevance in Mexican cuisine and traditions. The book called “Cacahuate, golden
seed of our land” will represent México in the Unique Topic category of the Gourmand
World Cook Awards to be held in the city of Paris, France, in June 2021.
The resources raised through the sale of this book will be destined to Fundación
Vida Plena, I.A.P., an institution providing a better quality of life to low-income
senior citizens.
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06 > 07
Cover of the Peanuts book, published by Fundación Grupo México.
IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
VOLUNTEER WORK
Día de Reyes Celebration
In January, we held an event at Asilo Primavera I.A.P., to celebrate the Día de Reyes
with the children who live there. We had 109 children present, who received a gift and
ate Rosca de Reyes (a ring-shaped cake). This was possible thanks to the generosity
of the volunteer employees of Grupo México.
Virtual concert on behalf of indigenous families in the Tarahumara Sierra
As part of the commemoration of the volunteer day, in collaboration with Cáritas
Chihuahua and Banco de Alimentos Chihuahua, we organized a virtual concert
including the artistic talent of the pianist “from the sierra” Romayne Wheeler.
The concert was broadcast in 12 countries. Thanks to the participation of employees
from the various divisions of Grupo México, Cinemex, allies, and public in general,
we managed to raise $599,608 pesos to purchase groceries that benefited 8,820
families in the Raramuri communities.
EFICINE
In 2020, we supported the production of three films through the financial
aid, EFICINE:
1.
El extraño caso del fantasma claustrofóbico
2.
La cura es la locura
3.
Mi amigo el sol
126
Delivery of groceries in the Tarahumara Sierra.
Donation of 23 respiratory support ventilators to the Sonora Government.
COVID-19 Actions
Fundación Grupo México had $611 million pesos to donate in kind to
hospitals and vulnerable communities.
At the request of President López Obrador, on April 6, 2020, Grupo México
delivered to the federal authorities the Specialty Hospital in Juchitán, Oaxaca,
to deal with the pandemic and meet the needs of the population in the region
of the Tehuantepec Isthmus.
Once the health contingency is over, the hospital unit will be, as originally
planned, a Maternity and Child hospital.
Find out what steps the company
took to deal with the pandemic.
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IA GMX 2020 – FUNDACIÓN GRUPO MÉXICO
At over 200 hospitals, healthcare centers, and vulnerable
communities in 21 states across México as well as in Perú,
we delivered the following aids and materials:
639
ventilators
Over 503 thousand
personal protection kits for doctors
Medical equipment
and various materials
for COVID hospitals
• 135 monitors
• 160 beds
• 52 resuscitation units
107,510
grocery kits and 270 tons
of food for vulnerable
communities
2,150 kits
for the implementation of
family vegetable gardens
We supported the operation
of the Post-COVID-19 Comprehensive
Lung Rehabilitation Center
318,000 liters
of liquid oxygen
120,000 liters
of antibacterial gel and
protective gear for the
National Guard
22 temporary
hospital modules
in México and Perú, adding
to a capacity of 385 beds
60,000
meals prepared
for doctors
120,000
quick tests
and 10,000 molecular tests
Two ambulances
and two oxygen plants in Perú
Medical and psychological support
helpline and WhatsApp 24/7
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IA GMX 2020 – GRUPO MÉXICO FUNDACIÓN
IA GMX 2020 – DIVISIÓN INFRAESTRUCTURA
Delivery of medical equipment to hospitals throughout the COVID-19 contingency.
Donation of groceries to vulnerable communities.
•
Through the campaign “If you have, donate; if you need, take; if you want to help, share”,
15 companies and Entrepreneurial Foundations donated over $6 million pesos in kind to
support over 20 thousand people in 15 states across México. This benefit was deployed by
91 organizations from the Network of Associations.
We established prevention protocols
and created informative campaigns to
care for the health of our 29 thousand
employees and their families.
We donated 270 tons of perishable foods to over
240 thousand families across the country.
Thanks to Grupo Cinemex, we donated perishable foods to assist the Mexican food bank,
Banco de Alimentos de México.
•
We contributed to the food security of 10,574 people in a situation of vulnerability
through the donation of 1 million pesos in groceries to the following organizations:
Yolia Niñas de la Calle, Reinserta a un Mexicano, Asociación Mexicana de Banco de
Alimentos, Comedor Santa María, and Fundación Comunitaria Oaxaca.
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Grupo México
Board
Germán Larrea Mota Velasco
CHAIRMAN
Patrimonial Board Member
Xavier García de Quevedo
PRESIDENT
Patrimonial Board Member
Emilio Carrillo Gamboa
Independent Board Member
Alfredo Casar Pérez
Patrimonial Board Member
Luis Castelazo Morales
Patrimonial Board Member
Claudio X. González Laporte
Independent Board Member
Oscar González Rocha
Patrimonial Board Member
Fernando López Guerra Larrea
Patrimonial Board Member
Prudencio López Martínez
Independent Board Member
Antonio Madero Bracho
Independent Board Member
Carlos Prieto Sierra
Independent Board Member
Carlos Rojas Mota Velasco
Independent Board Member
Fernando Ruiz Sahagún
Independent Board Member
Antonio del Valle Ruiz
Independent Board Member
Rolando Vega Saénz
Independent Board Member
Mauricio Ibáñez Campos
Secretary
IA GMX 2020 – BOARD AND MANAGEMENT TEAM
Management Team
Germán Larrea Mota Velasco
Executive President and Chairman of the Board
Lourdes Aranda Bezaury
Director of Communications and Institutional Relations
Marlene Finny de la Torre
Director of Administration and Finance
Lillie Hernández Minor
Legal Director
Juan Carlos Jaques Garcés
Audit Director
Miguel Valdés Neaves
Administration and Control Director
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133
Mining Division
Americas Mining Corporation
Management Team
IA GMX 2020 – BOARD AND MANAGEMENT TEAM
Southern Copper Corporation
Board
Germán Larrea Mota Velasco
Francisco López Guerra Larrea
Germán Larrea Mota Velasco
Rafael Mac Gregor Anciola
Chairman of the Board
Sustainability Director
Chairman of the Board
Independent Board Member
Oscar González Rocha
Vidal Muhech Dip
Executive Vice-president
Chairman of the Directors Committee
Oscar González Rocha
Chief Executive Officer
Luis Miguel Palomino Bonilla
Independent Board Member
Xavier García de Quevedo Topete
Executive Vice-president
Daniel Chávez Carreón
Operations Director
Rafael Ríos García
Director of Security
Ernesto Ríos Patrón
Vicente Ariztegui Andreve
Gilberto Perezalonso Cifuentes
Independent Board Member
Independent Board Member
Alfredo Casar Pérez
Carlos Ruíz Sacristán
Director of Engineering and Construction
Patrimonial Board Member
Independent Board Member
Leonardo Contreras Lerdo de Tejada
Raquel Tobar Sáinz
Enrique Castillo Sánchez Mejorada
Jorge Lazalde Psihas
General Director of ASARCO and IMMSA
Director of New Business and Finance
Independent Board Member
Secretary
Xavier García de Quevedo Topete
Patrimonial Board Member
Director of Supply and Commercial AMC
René Verde Guzmán
Oscar González Barrón
Director of Information Technology
Director of Administration and Control
Mauricio Ibáñez Campos
Raul Jacob Ruisanchez
Director of Administration and
Legal Director and Corporate Governance
Finance Southern Peru
Jorge Jáuregui Morales
Jorge Meza Viveros
Director of Human Resources
Director of Operations Southern Peru
Jorge Lazalde Psihas
Director of Legal and Institutional Relations
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135
Transportation Division
Grupo México Transportes
Board
Germán Larrea Mota Velasco
CHAIRMAN
Patrimonial Board Member
Alfredo Casar Pérez
Patrimonial Board Member
Jaime Corredor Esnaola
Patrimonial Board Member
Arturo Elías Ayub
Patrimonial Board Member
Hugo Rafael Gómez Díaz
Patrimonial Board Member
Fernando López Guerra Larrea
Patrimonial Board Member
Carlos Noriega Arias
Patrimonial Board Member
Lorenzo Reyes Retana
Patrimonial Board Member
Roberto Slim Seade
Eduardo Joaquín Gallástegui Armella
Patrimonial Board Member
Patrimonial Board Member
Christian Lippert Helguera
Xavier García de Quevedo Topete
Secretary
Patrimonial Board Member
IA GMX 2020 – BOARD AND MANAGEMENT TEAM
Management Team
Germán Larrea Mota Velasco
Chairman of the Board
Alfredo Casar Pérez
Chief Executive Officer
Fernando López Guerra Larrea
General Director
Isaac Franklin Unkind
General Director of Administration and Finance
Hugo Rafael Gómez Díaz
General Director of Operations
Jorge Manuel Márquez Abreu
General Commercial Director
Lorenzo Reyes Retana
General Projects Director
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Infrastructure Division
Management Team
Germán Larrea Mota Velasco
Jorge Agüero Navarro
Chairman
General Director Highways
IA GMX 2020 – BOARD AND MANAGEMENT TEAM
Fundación Grupo México
Management Team
Germán Larrea Mota Velasco
Chairman
Support to Institutions
Lucero Vallejo Durán
Conciencia Cinemex Manager
Xavier García de Quevedo Topete
Héctor Raúl Huerta Avendaño
Jessica Pons Fernández
Chief Executive Officer
General Director of Engineering Services
Francisco Zinser González
Julio Francisco Larrea Mena
General Director
General Director of Constructora México
Deputy Director-General, Environment and
Network of Entrepreneurial Associations
Education and Culture
Beatriz Crispín Gámez
and Foundations
Education and Culture Manager
Gustavo Ortega Gómez
General Director Energy
José Jaime González Acosta
Director of Operations Oil
Mario Fernando Chávez Galas
General Director of
Administration and Finance
Javier Gómez Aguilar
General Counsel
Ricardo Arce Castellanos
General Director Oil and Gas,
Engineering and Construction
Health
Karla Díaz Castro
Administrative Manager
of Dr. Vagón, the Health Train
Dr. Ricardo Reyes Díaz
Medical Manager
of Dr. Vagón, the Health Train
Aura Patiño Lona
Operations Manager
of Dr. Vagón, the Health Train
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