Grupo Mexico has withdrawn its proposal to combine the operations of its subsidiary companies Asarco and Southern Copper. The conglomerate made the announcement within its Q3 2011 financials.
Grupo Mexico said that Asarco's assets are operating at full capacity in the US the jurisdiction with the lowest country risk. The results for its operations have been better than expected which are expected to report an EBITDA in excess of USD 800 million for 2011. Asarco had increased its reserves 25% to 5.7 million tons of copper and these reserves have the potential for further increases due to its ongoing exploration program.
The company plans to increase its production 40% over the next 4 year. Current Asarco mines have an average useful life of over 28 years. The holding company for Asarco and Southern Copper, AMC, may decide to offer securities in the capital markets and may also provide alternative sources.
Meanwhile Grupo Mexico more fully explained its decision to appeal a USD 1.3 billion award made to Southern Peru Copper shareholders by the Delaware Court of Chancery in a landmark shareholder derivative lawsuit.
Earlier this month the Delaware court found Grupo Mexico basically browbeat a special committee of Southern Copper's independent directors into paying USD 3.1 million in Southern Peru Copper stock to acquire 100% of Minera Mexico, a private company owned by Grupo Mexico.
The company said that we believe the opinion entered by Chancellor Strine is unsupported by Delaware law and inconsistent with the record. For example, the opinion ignores that increase in the value of Southern Peru Copper Corporation stock as a result of increased copper prices, also increases the value of Minera Mexico. In addition, it is important to note that over 90% of the SPCC stockholders voted in favor of the transaction, including Cerro Trading and Phelps Dodge only 0.05% of the votes were against the transaction.
The company asserted that the merger between SPCC and Minera Mexico has created value and has been very beneficial for all stockholders, particularly SPCC's minority stockholders, who had not held any interest in Minera Mexico prior to the transaction. It is important to note the value of Minera Mexico has increased from USD 3.1 billion on the transaction date to approximately USD 16 billion and the minority shareholders have reaped the benefit of this increased value solely as a result of the transaction.
Americas Mining Corporation copper production in the third quarter of 3Q11 increased 14.6% to 203,917 tonnes compared to 177,968 tonnes in Q3 2010. During the first 9 months of this year copper production increased 11.9% from 503,714 tonnes during the first 9 months of 2010 to 563,422 tonnes.
Molybdenum production declined 4% in Q3 2011 to 4,787 tonnes compared to 5,009 tonnes in 3Q10. During the first 9 months of this year moly production was 13,663 tonnes down 11.2% from 15,273 tonnes.
Silver production dropped 10% in 3Q11 to 3,977,000 ounces down from 4,415,000 ounces in Q3 2010. The decrease was mainly attributed to less material processed for third parties at the Amarillo refinery no production at the Santa Eulalia mine and also lower grades at Cuajone. During the first nine months of 2011 silver production dropped 14.4% from 13,593,000 ounces during the first 9 months of 2010 to 11,635,000 ounces.
Gold production increased 5.2% in 3Q11 to 16,180 ounces while gold production for the first 9 months of this year declined 14.1% to 44,738 ounces.
Zinc production dropped 12% in Q3 2011 to 21,537 tonnes down from 24,500 tonnes in Q3 2010. For the first 9 months of this year, zinc production plummeted 18% from 76,750 tonnes in the first 9 months of 2010 to 62,898 tonnes.
(Sourced from www.mineweb.com)
