Q4 2025 Grupo Mexico SAB de CV Earnings Call
To Grupo Mexico's fourth quarter earnings conference call with US This morning.
Grupo Mexico stops executives, who will discuss the financial performance of the company during the fourth quarter 2025 results, giving you a summary of the latest news and addressing any questions. You may have at the end of the call.
Before we begin I would like to remind you that information discussed on today's call may include forward looking statements regarding the company's results and prospects, which are subject to risks and uncertainties actual results may differ materially and the company cautions not to place undue reliance on these forward looking.
<unk> Grupo.
Grupo Mexico undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise.
All results are expressed in full U S GAAP.
The presentation may be followed through our webcast, but if you wish to ask a question during the Q&A session you need to do so via phone call by pressing star one one.
Company of the slides and the company will be reviewing today is available on the website at Grupo Mexico Dot com at this moment I would like to remind everyone that your line must be in listen only mode until the question and answer session. Now we will begin with Ms. Marlene Finny.
Yeah.
Thank you so almost got him in and good morning, everyone and thank you for joining us today for the whole nation.
Fourth quarter earnings conference call and one clarify all year.
And with me today are the type of thing.
All of our three divisions.
And doing this call Garland mentioned before we will be following a presentation that can be downloaded from our website or followed by a pause in their work.
I always want to go.
Presentation habits there.
Well you can find on slide number three huh.
We will be following to that.
So I'll kick off with we believe is the highlight.
Followed by the quarter Scorecard International highlight then that Oakland, but let me say that I know that's something that would provide detailed information regarding our mining division main highlights and budget.
And comment on the industry economic environment, He will leave info, but nonetheless, zyla, who will go through the financial results, mainly events of our transportation division and last but not least with different physical things that well comment on infrastructure division's relevant events and financial highlights.
As usual again that line will be opened for questions and answers.
With that being said, let's go who are mainly the highlight in that summer bye.
And in 2025, we made significant progress in the road to get for a while.
Or will you wait for.
Intervening in phase three level cousins across various ages of Mexico, We just we just didn't work.
We're both community and transportation of three years.
Is it going to stage was completed during the last quarter, we can 100% of costumes and additional improvements along the real mix is it a food lines. They.
This was a minority investment that reached almost 14 million.
Yes, if you don't have guns of luxury that unit into Luna.
In Mexico wasn't worth it the cost go up like that.
Yeah.
Can you tell me if Goldberg Hoover helmet in English, but it didn't cost goes up and they've got they were young metallurgical blessed with up to 500 was granted by the Mexican mining timber. We've got 19 of company commitments reached risk prevention and then please do.
The infrastructure Division obtained environmental management system as part of its commitment to energy efficiency and environmental they're supposed to be.
This reduces environmental impact insurance compliance with the regulatory requirement and establishes continuous improvement processes or the environmental performance of the fund.
Continuing on slide number six our when we started going to mine in Mexico, along with the took a balance one of mines in Peru received a corporate Mark accreditation for compliance with a global industry standard on tailings management established international.
In terms of mining.
These equity infusion confirmed commitment to international best practices.
Providing insurance to authority neighboring communities and other stakeholders that operations are conducted.
And lastly, southern Peru was recognized by the Peruvian government as a mining company with the largest number of projects awarded on their public works for Texas in 2025.
This mechanism the company has carryout 40 projects and invested more than.
400 million in infrastructure and infrastructure to help bridge to help.
Rich social guts.
It is currently implementing four additional projects totaling $28 million, which will benefit more than 5000 people.
Now we will continue on slide number seven.
Here you have a scorecard with the main numbers are worth it.
Or I read anything into any 25, which are record high.
Hi off more than $18 billion, representing an increase of 12, 44% when compared to 2024.
34% increase year over year on a quarterly basis.
Our EBITDA also reached a record high with almost 10 billion in 2025, an increase of almost 19% compared to plan things work and more than 50 per cent compared to the fourth quarter of last year.
Our copper production and 275 remained stable Chilean a slight reduction of around 1% compared to the zinc via the 'twenty 'twenty four.
Almost 1.007 million tons compared to the same quarter of last year, we saw an increase of almost 2%.
Our net cash costs amounted $89 per pound.
Good point anytime soon.
Actually this was a 22% improvement when compared to 2024, reflecting a reduction of 26, 10, and 34 point to improvement when compared to the fourth quarter of 2024.
We keep them.
As you know we are we keep on being the mining company with the lowest cash cost worldwide.
I usually can find is the summary.
Our financial highlights on slide number eight which is there for you to have engaged you need at any point in the presentation.
Also important to mention that our board approved a 1% and 50 cents per share and this quarter's dividend, which translates into a three or four in one dividend yield and up almost 50% payout ratio.
On slide number nine.
Okay.
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Ooh Ooh political continues to have a solid balance sheet with over.
$581 million generating during the fourth quarter of 2025 as you might already know or that is mainly in the U S dollars, representing a seven 9% of adult that while the rest is it nominated in Mexican pesos.
And 87% of Holdco debt was issued at a fixed rate.
Our stock had an excellent performance in the U S. It increased over 99% in Minnesota, and just shy of 72% in peso.
On this slide you can also GWB there between 'twenty 'twenty, four and putting 75, but then the payout ratios and implied dividend yields including the one 1.5 is that there's still demand for the water approved by the board, which will be paid on March two.
The second part of it.
Yeah.
On the next slide slide number 10.
We show that we continue to have a comfortable debt maturity profile with no payments over $1 billion in 2028.
While our cash position ended the quarter at $10.2 billion.
Now I'll pass the word to Mr competitive meet there isn't another company that the government on the mining Division performance.
Thank you Marilyn.
Good afternoon, everyone and thank you again for joining us today.
We'll start today with a brief remarks on the current copper market on slide 12.
As you can see here beyond meat copper price decreased over 21%.
From an average $4.16 per pound in the fourth quarter of 2024 and $5 from three points Europe III.
Core <unk>.
Well the comex market, we saw a 22% decrease average.
During the past quarter.
The fourth quarter. It went from two five to $5.50 per pound.
Now based on current supply and demand dynamics, we're currently estimating our corporate market deficit.
320000 pumps for these years.
Copper inventories worldwide at the end of September were around 1.054 million tons.
We estimate that this inventory currently covers approximately 14 based on global demand.
Now, let's move on with the mining division's financial highlights from slide 13.
Our accumulated sales reached $46 billion 17, 5% higher than that.
Sure.
Volume increases for molybdenum zinc and silver.
Together with that increases.
We've been increasing prices of copper.
8.2 of them first with more molybdenum three 8%.
Sync three 2% and silver 41, 6%.
Sales showed a 42, 5% increase compared to the fourth quarter of 'twenty 'twenty four.
Our EBITDA totaled $8 $2 billion for the year 23, 3% higher than 2004.
56 <unk>.
2% and up 68% increase compared to the fourth quarter of 2024.
Now, let's move to production.
Our copper production remained relatively stable totaling almost 1 million to $70000 of.
A slight reduction of 1% compared to the same period of 'twenty 'twenty four.
Production increases were achieved a harmful into I'm sorry, the other operations.
I will have byproduct production showed excellent results in cumulative terms sink none of them silver dropped from 36 seven.
Seven four and 14, 5% respectively.
Our net cash cost amounted to 89 cents per pound.
22, 3% improvement compared to 2024.
Reflecting our results from 26 cents and up 32% improvement.
40% reduction when compared to the fourth quarter of 'twenty one for.
Mainly due to higher byproduct credits.
Regarding capex, we invested $1 four.
Billions of dollars in for instance, five.
And I was like when she was talking about our projects and our progress in slide 14.
Starting with our Peruvian projects on slide 14.
As of December 31 reached 24% completion.
The company committed almost 800 million project development.
Mobilization of $1 7 million phones once you read from left.
Yeah.
Completion of Faxes rose blood centers and temporary contractor costs.
Issuance of purchase orders for metallic structures, when the dry area and the selection upstate to be our technology or the expertise Sx EW process.
Significant brokers households, being made.
Energy infrastructure for demand.
Now, let's move on to the most chunk us where.
Environmental social programs continued to be implemented throughout the year and the communities, but why do you Wanna get bottle located located within the directory of improvements.
Despite these efforts the presence of illegal miners in the project area has hindered progress.
In response, the company continues to work with relevant authorities to restore control.
Even better.
Lastly.
In our <unk> project the crop the comprehensive review of Geological information used to estimate the project to mineral resources have been duly audited in accordance with applicable SEC. My name is kosher standards based on this information the company with Vince lets you made me not researched and developed a corresponding might've been going.
Going forward.
Now, let's move on to slide 15.
To continue wherever breaks in the United States.
We are analyzing the following projects with Pcbs studies.
We'd have to.
Our mine production and vertically integrate our forex operations with smelting and refining capacity.
At our re mind, we're considering an expansion.
We currently produce.
136000 tons of concentrates.
It has a potential production increase of 58000 tons of additional copper per year.
To reach a production.
Shy of 100000 tons of their own 95000 tons, which is 161% decrease.
This requires an investment of $1 billion.
Would likely take approximately three years to be completed.
Now, let's move on for our superb in mind.
Sure.
Looking to maximize lower ore grade sulfides.
Through our concentrator plant represent an investment of $1 9 billion.
And resulting in an increase of 65000 tons of copper per year as.
As well as considerable silver and molybdenum byproduct.
Currently the feasibility studies aren't being completed.
And we will have them by the end of the year.
And we're proceeding with technical evaluation to reopen expand and modernize the Hayden smelter in Amarillo refinery.
This project would increase the initial is milk around 600000 corporate concentrated.
Refined up to 450000 tons of copper content per year.
I can state.
And lastly, we are proud to announce almost to completion of the pioneering autonomous haulage system at the circles mine.
Ray, Arizona, which is redirecting the future of the operation with 11 autonomous trucks, we had capacity of 300 shortfall.
Now continuing on slide 16.
Before I, let you know about the chest.
Spain.
Deposits located within does courtyard mining district and de beers Empire.
Metallurgy concern of worldwide importance. The project consists of an underground mine with a million plan.
<unk> 8000 tonnes per day capacity are good producing copper concentrates with every serve based mine life for over 20 years and potential for exploration.
We'd also be obtained as a byproduct.
The project will implement technology at the service of a circular economy in areas, such as water management and waste.
May 2025 last year, we obtained the mining permit.
Yeah and.
And with this permit the final engineering work started northern to begin construction in 2026 and production by 2029.
It is estimated to require an initial investment of around $440 million.
In 2026, a water treatment plant will be built to ensure the quality of the water of the water currently in the pit.
Additionally, in the first half of 2026, the company will issue a final drilling exploration campaign.
On a satellite ore body.
Were $8 5 million tonnes of inferred resources have been identified.
Now going to slide 17, with our Mexican projects, we have a lot of cool where diesel engineering do you feel on the rate for the concentrate or Sx EW plant, what are diesel logistics infrastructure and power delivery.
Lastly, <unk>.
I used to approximately 45 kilometers away from our point of Vista mine and will operate as a conventional open pit mine and on.
Capacity of 36000 tons of corporate scaffolds.
Operationally, we use a highly cost efficient and environmentally friendly Sx EW technology.
So if you happen to have any follow up questions, we'd be happy to address them during the Q&A session.
Now I will look for a number of comments on the transportation Division.
Okay.
Good morning, everyone and thank you for joining us.
Continuing with the transportation divisions results on slide 19 I.
I would like to talk a lot of financial highlights this quarter.
Our sales reached $3 4 billion. It seems are one to increase versus 2024 slightly impacted by an FX rate.
At the end of the year without you spoke one six increase Mexican vessels.
Our our coordinate that.
By the end of the quarter was totaled $1 billion.
Which is.
Basically flat versus 2028.
Eight 5% higher versus the fourth quarter of 2020.
Q4.
EBITDA margins stood at 41 41, 8%.
Accumulated transported volumes decreased one four.
4% netcom kilometers on cargoes, respectively, and we ended the year with 1.986 million railcars all.
As far as net income.
$487 million for the year, 2% lower than 2020 core again in <unk>.
Yeah, Thanks effect.
We ended the year with.
5% increase in vessels.
Lastly.
I think we had about 40 cents off vessel for sure was approved by our board.
As we continue with the main variations or revenue on slide 20.
These foundations consumers are we sort of results in Mexican peso. So these might already be using different currencies.
I'll start with the segment.
The strongest from a revenue growth each quarter.
All of those segments.
The 15%.
By additional volume and longer hauls and production.
Our automotive made automakers shifting from over from using boats.
So to get to the U S to return to the rail.
Efficiencies and and buying some velocity has improved throughout the network.
The agricultural segment grew by 14%.
The increase of grain imports.
And the mineral segment with an 11% increase driven by increased.
Increased marketing programs in the supply and demand of iron ore.
The mid growth range, we have in energy segment, that's showing a 7% increase in revenue.
We are increasingly buying product imports from the U S.
S into Mexico.
<unk> segment increased only 2%.
The additional copper.
Pipeline volumes and longer and longer hauls.
This was partially offset by the lower demand in construction products, which also impacted cement.
Shipments and partially offset by a lower demand for cement cement exports.
On the other ones, we saw revenue declines in few segments intermodal decreased 4%.
This is mainly due to the influence from Asia from Asian markets, but basically what the most significant impact.
Plus the <unk>.
Systems of the cost of the Mexican peso dropped or one offline.
One time and on the other more intensive revisions for the Mexican authorities I think you've seen throughout the year.
Then carnival becomes hot.
Yes.
It is.
For it to get to the destination, so shifts into over the road.
Also in intermodal.
The beginning of the year.
A lot of impact from what you're going for renewable fuels.
So the government has strengthened.
There are activities against illegal fuel allows us to compensate substantially and be very competitive versus over the road.
Until we close we have a decrease of 9%.
What's worrying so raj.
And.
I'm talking about operating metrics on slide 21.
In general metrics showed consistent improvement and performance remains in or as we saw an increase in average train speed of 11%.
19% each region's offline that resulted in a considerable improvement.
18% new car velocity.
Moving to slide 22.
<unk> on our expected Capex for 2026 <unk>.
<unk> board approve an investment.
Roughly 470.
$70 million.
For maintenance special projects and acquisitions of locomotives.
He's got this allows us to maintain strategic and steady improvement.
About half of our Capex will be used rail infrastructure equipment bridges.
Commodities on machine learning overhauls.
2% of the Capex.
This will be used in yards and terminals focusing.
Typically in deciding enlargement Doug.
Welcome to utilization so that we can run.
Longer trains and start to.
To move from 100.
22 wells on trains to 192 railcar trains.
The rest of North America current results.
In the U S.
We're running a hunting license to railcars.
We need to shorten our plane at the border.
Basically on the intermodal and automotive trains.
That's where we will be adjusting.
And lastly in investments of $70 million is planned for the acquisition of locomotives or or or.
Uh huh.
Claims.
Sure.
Northbound trains you see sort of improvement and our need for long haul trains not not the yard service locomotives.
On slide nine between you'll find out.
<unk> outlook that implies a two 2% and 4% volume growth.
Two 7% revenue growth.
That concludes our overview for the transportation. In addition, I will now.
Noninterest use a comment on the type of issue.
Do you.
Thank you very much Fernando and good afternoon, everyone.
I will start by going through the financial highlights of the infrastructure Division shown in slide number 25.
Our sales reached $646 million during 2025.
A 17, 5% decrease when compared to 2024.
It was due to the impact of the temporary suspension of four of our Jackups already reached a negative exchange rate effects.
This was partially offset by the full year operation of the ECS business environment and the integration of the new Dow intramuscular portfolio in the real estate business unit.
Our EBITDA totaled $309 million, a decrease of 27% versus 2024.
EBITDA EBITDA margin standing at 47, 8%.
Lastly, net income totaled 44 million, 57% lower when compared to last year.
To close the infrastructure Division highlights I would like to go through some of our most relevant event on slide number 26 and 27.
The energy business delivered another year of solid growth reporting cumulative revenues of $303 $5 million.
And a record EBITDA of $163 5 million burgers.
Representing increases of $16 four at eight 6% year over year, respectively.
Their results were supported mainly by the continued ramp up of the Venetian as wind farm, which added 344 gigawatt hours of incremental generation.
Which is 10% higher than what we originally anticipated.
<unk> produced $32 $4 million of EBITDA during the year.
In parallel our energy platform continues to actively pursue growth and investment opportunities.
The real estate business sustained its growth momentum in 2025 generating revenues of $95 $6 million and EBITDA of $59 $3 million.
An increase of 19, 3% and 14, 6% year over year, respectively.
Performance was driven by the incorporation of the caller, Joe Metz Fuller portfolio, which added 90 power centers to the platform.
Along with higher rental rates, while my thinking I know that your rate of 94, 5%.
When the peso basis revenue and EBITDA increased 25, and 30% respectively.
Going to slide number 27, our construction and engineering businesses reported a cumulative revenues of $160 million and EBITDA of $16 million compared to 75.
It's also declined year over year due to the project completions and the FX impact.
The Mexican peso spreads have contracted and was limited to 3% reflecting stable underlying activity.
Although EBITDA margins was temporarily affected by the project mix and backlog that business now maintains a strong technical capability, a healthy backlog and a proven record.
Our execution.
Our toll road business continues to provide stable and strong performance reporting cumulative revenues of $73 million and EBITDA of $50 million representing year over year increases of 3% respectively.
Average daily traffic increased 3% compared to 3000 equivalent vehicles, it's important that my time adjustments and sustained demand across the network.
Service revenue and EBITDA grew eight 9% highlighting strong operating leverage and effective cost management.
With this I conclude my review of the main highlights of the infrastructure Division. We are happy to answer your follow up questions. Thank you.
Thank you ladies and gentlemen, if you do have a question simply press star one mine to get into queue and wait for your name to be announced.
To withdraw your question Press Star one again.
Our first question comes from the line of cavity, a batter with Citi. Please proceed.
Hi, everyone.
Boston, we have two questions here from my home.
The first one but it picked up a public company balance sheet.
And the cash position of the company how states. It seems it seems quite all right. So then the question on your staff to smart towards the proper allocation strategy going forward.
How do you think about the company strategy.
For the mutual Tom comes off.
So are you going to try and feed.
A lot of money to the shareholders.
Buybacks are our diesel so ultra is your thoughts about the second one.
Once you got called.
All dollar attention here and I've, often hamzah, it's called that Youre seeing for the stock today.
And I don't know how much you guys had a discussion about that but it's something that.
Awesome.
Do you hear from Tom your.
Your thoughts about maybe have it all.
On the job for many of them or something like that.
Thank you Scott.
Some of the parts of the company has to be so.
Is it true that it helps them. Thank you.
Oh, thank you.
I did it quite well.
The second question, but I think the first one.
Regarding the cash that we have I think we're one of the company that has the most if not the only company with.
That's a strong pipeline of projects to develop as we were going to come in Oh, we are developing a dumb.
Yeah, My Oh, we have a very strong pipeline.
Three divisions to continue to grow so the name that we keep them strong.
And track record of dividend.
Payout ratio that we normally have around 50%.
What you saw this quarter as well and then the strong pipeline of growth that is coming from all of the projects and investments.
And the second question.
Can you repeat that for me is regarding the discounts.
All of the pipe or something about the balance sheet can you repeat that for me.
Yeah sure sure Nick it's Mark <unk>.
<unk> four <unk>.
Some of the parts.
The company also.
Although how much of either starting about maybe trying to decrease just labs watchful discounts.
<unk> seen the company wise or something like that I want to hear your thoughts about that and if I may one follow up the first question.
I understand that.
Please.
You guys have today in terms of.
Organic growth, but in terms of growth should we expect something for the medium term.
It's more towards being or guidance at.
At this point.
And yes, we have.
We have always had a discount are holding this conference some of that quite well we have tried to do our business strategy over the past many years.
Two two.
Do you like.
The creek that discount.
I.
I think this is something that we have always had a even if we say a very good dividend.
<unk> performance was very good during the easier physical Mexico with people and growing our transportation.
Yeah, I circle and the infrastructure.
Restructuring division so.
I think we are trying to communicate better we will.
Continues to have the dividend.
Sure.
<unk>.
And besides that way and I think it won't be the case, even with the strong projects that we have.
And we will continue to.
And it is a possibility.
[laughter] of billion buyback, but as we have.
As we have discussed before is that that's indications. So we are trying to.
Look I want.
To see if theres something that could work for us and then if I could as well.
Yeah.
Thank you.
Thank you one moment for our next question. Please.
And it comes from the line of Regina.
Donna.
Please go ahead.
Hi, Thank you for taking my question many times from.
Hum instead of what's called.
Maybe as a follow up you you've already mentioned the strong project pipeline that you have for the year, you can see them I and methodical in Spain.
Is there are there any other relevant.
Maybe for projects that you are looking at that we should be keeping in mind when thinking about capex on a cash use of cash for the year.
Thank you Dana Thank you for your question.
No I think the main projects as we mentioned where are right now that Maria.
That will happen in the cycle and that let's say less the capex for the transportation Division are improving our operation and also to keep on going infrastructure division, but not nothing else in particular to two I mentioned.
Perfect. Thank you so much.
Actually one moment for our next question.
Comes from the line of Emerson the area with Goldman Sachs. Please proceed.
Find me something.
Hey can you hear me.
Please proceed with your question.
Can you hear me.
Alright, so I wanted to focus here guys on all day, you asking restaurants cheaply.
Hey, Ben.
And I'm a residual assets. So first question I want to understand.
Where will come from the rest of the idled capacity because it comes off the concentrate that guys have like 600 K.
K T.
And then had like 45.
Two four.
For capital right, So just trying to understand.
Where are we on the remaining portion will come from.
And if you guys are going to use is crap to filled up.
Our refining capacity.
That's the first question and.
The second one.
What is what is exactly the timeline for both hate them and already I'm already.
To reopen I mean, if you could tell.
Tell us a specific timeline in terms of when are the studies will be concluded and when they should start constructing.
Constructing.
That's the case.
And Luckily if theres anything to add downstream capacity I mean are you guys going to sell the refinery copper or maybe produce any other final product with the outcome from the refinery.
Yes.
Hi, or some let me address the first question.
From our Elong Donald capacity basically what we our ambition we have to finalize our stories, but it is.
As you Indeed mentioned.
Smoke around 150000 tons of finals, but we go to a refinery and we're evaluating if it's possible.
To complement with scrap so we can reach the capacity that was outlined in the report it will be a phased approach and we need to conclude our studies, we are expecting to conclude that.
Probably by the first half of this year.
And.
And what was your last point in terms of refined copper I mean, yes, we will evaluate the market for Rod is a strong as it has been as we'll have a real clumping I'm worried about.
For now, we're considering smelting and refining.
And brokerage will eventually come or not.
Alright, and just a follow up here, what would be the capex to modernize and reopen those assets.
Right now we have a rough estimates around $20 million.
Again, we need to finalize our studies for both the refinery on the smoked.
So 100%.
Correct.
Uh huh.
I'm, sorry can you confirm the amount of it get a little bit for me here.
Yes, it's $230 million.
230 million, okay and in terms of timing.
Timing I mean, we will finalize the studies by the first half of the year and then we take it to the board and we will evaluate.
And what's the average construction.
Yeah.
That's helpful. Okay.
Thank you.
Thank you so much my moment for our next question.
And it comes from the line of iPhone, So satisfied with Scotia Bank. Please proceed.
Yes. Thank you I have two questions. The first one is a gaming with the eye in the siding regarding methodical and this is regarding the expansions are the rates on some trade them under.
On the Silver Vale mine.
Just wondering about the timing same thing and about then when can we expect to know all the details.
One question regarding also receptor.
Expansions.
And it would be good to have you know the information and I know that he does especially with in terms of pursuits.
Okay.
Sanchez.
I'm, just kind of wanted to rather than the infrastructure unit.
How is management thinking about.
This division evolving in the next five years. So in other words, we see $10 billion in cash.
My name just mentioned that this is going to support the pipeline of projects.
All of these projects.
But.
What about expansion into infrastructure unique how do you see do you want to expand and have more energy are you thinking about high real estate. Just are you is there any target due to how a that'd be that would be generated in this division and the final one and a half east for the Union.
As for the debt.
And transportation Division.
Given that we have at Mexico imposed tariffs on Chinese imports is there any impact expected airport transported volumes for.
Or <unk>.
Thank you.
I think you are controlling address firstly, sorry cool question in terms of the expansion rate and pilgrim.
We would be expecting to have more information by the next quarter that we could share with everyone.
Currently the reserves are right around 65 years.
And a tumor bell.
Basically what we have is we're almost done with all the exploration, we're compiling it and doing all the QA QC have a new life of mine plan for the sulfites.
And we would have thought probably by.
The third.
More more more towards the fourth quarter of this year.
Any follow up questions if not the world.
That's very helpful. Thank you.
Yeah.
Thank you.
Our next question comes from the line of Jorge <unk> with Bradesco <unk>. Please proceed.
Yeah.
Yes. Thank you.
Good afternoon, all and thank you for taking my questions two questions here on my side. The first one on US article, which delivered a very strong quarter in Q4, right with production, reaching multi year highs.
I wanted to understand what drove the strong performance in each of these.
Normalized level of production going forward also if you could share what do you expect in terms of costs for the division. In 2026, then my second question on the ink for the vision I mean 2025 was of course, a challenging year right.
Given especially the golf tournament of the Pemex rigs.
I was wondering what are your expectations for the division and 26 in terms of volumes should we maybe anticipate higher contributions.
Other segments, such as real estate hotel or toll roads that could maybe help offset the continued weakness in oil weeks.
Those are my two questions. Thank you.
Yeah.
Yes.
First question for Asarco.
What happened in the fourth quarter was we were stable and we were able to run our power plants are no we should see maintenance.
I think we're getting there we're just not there.
People just don't feel like we're striving towards this year hopefully we can maintain that rhythm.
And the cash cost.
Arco should be around 15% lower from the previous year.
And I don't know if you wanted to Amc's core cash cost as well.
Yeah.
Okay perfect.
Okay.
Oh, sorry about that.
Regarding door infrastructure question.
1025 was a challenging year.
1020, <unk>, we are expecting I mean, all our all of our business lines are generally healthy and growing so we are at today.
Iowa Eyewear and as you know the challenge with possibly the hour.
It already rates division.
We've been having conversations with pemex throughout the past few weeks.
Our expectation is that we can put our platforms to work at some point this year.
Obviously helped that Mexico has their own objectives of increasing oil production and we see having a broad collaboration and communication with them. So we are very hopeful and we are expecting them to get back to work as soon as we can thats our expectation for this year hopefully.
We will make it happen and working with Pemex as a team.
Okay, Great that's clear thank you.
I guess, how much of a moment for our next question.
It comes from the line of John Tumazos, with John Tumazos very independent opinions. Please proceed.
Thank you so much when you travel the output of route.
And roughly double the output of asarco mining smelting refining.
How much might the cost per pound reduction be.
My first instinct, which per se, but maybe it's much more.
John I just couldn't hear the last part.
How much will you reduce the cost per pound of the re mine and the entire asarco system.
So large production increases.
And modernization and expansion.
Luca will the expansion rate currently we're in the 95% loan and we wouldn't be.
Would expect to be in the 50%, but that along with autonomous implementation hardest of rehab.
Or implemented.
During the second half of last year.
In terms of smoking on refining we're still doing the numbers, but we should be around between 25 from 30 cents.
Her phone in smelting and refining were skewed at all my life.
The numbers.
But we will send you a note we have.
I'll give you a number for sure.
Do you think the returns will be more than twice your cost of capital.
I have to revisit that.
You get back to you.
I'm just trying to give you a cream portfolio piece of your question. Thank you.
One moment for our next question please.
We have a follow up from Emerson Vieira with Goldman Sachs. Please proceed.
Hi, everyone thinks I have just a follow up on the head.
Neil.
Just trying to understand here if you guys.
I would eventually.
Begin their reopening in a constriction in partnership with <unk>.
U S government for any such as you'll have seen in other minerals.
And also what types of incentives could happen so.
The asset could become economically viable.
Given that these are have been just revise it.
Zero this year like some contract and I know Im just trying to understand here what are the incentives.
Uh huh.
To put that back.
And corporations.
There is a potential partnership with their government. Thank you.
And there are some again I think we are.
We're still undergoing studies.
One of the items that you put on the table there are still being analyzed.
And not only we are further.
We do this.
We're still studying so probably by the second half of this year, we would have something.
Okay.
Bob.
Thank you for your birthday here.
And as a reminder, if you do have a question simply press star one one to get in the queue.
Our next question is from Marcio Farid with Goldman Sachs. Please proceed.
Thank you.
Hello off of things.
It's good to see.
A beautiful Mexico, having.
With required off on there on the core call appropriate authority.
Mexico The U S.
Not the same as well.
But all of those properties could be done on a basis is already public corporates out there should we be a partner in developing some of those products.
From an operational excellence perspective as well.
Just somewhere somehow.
Although when you use of cash and use of solar system and look like.
I think he and I need a little bit.
Okay.
Your question is it is related to the use of cash in the cabinet.
And I think the projects we already mentioned.
In the mining division and southern copper, we have semi and all of this is the fact that we mentioned during the call.
It can go through any specifics if you want.
Although.
Okay.
And they've got the peanuts vertical that was just fantastic bye bye bye now.
I don't know if that was your question.
Oh, sorry about that yeah, no adjusted all the Capex that is now we're exclusive on our site Verizon in the U S. Okay outside of southern copper.
Really that could be a partnership between our cycle.
M a C or southern copper to develop those projects together are the idea is although SYGMA in Australian dollars, the Midwest blessing Spanish capex.
We're gonna be done solely by Grupo Mexico.
Or buy up cycle itself.
Sure.
Uncomfortable.
Uh huh.
Not at all right now how they are it's asarco are independent of southern copper and that's how it is being studied.
There are always cautious about Samsung.
Okay fair enough.
And this will conclude our Q&A session for today I will pass it back to my Lane for closing comments.
Thank you so much everyone for many cases, they obsidian next quiet and you just have any follow up questions.
Get them back.
Okay.
Thank you and thank you everybody have a good day.
Thank you Mary Lynne. This concludes our conference and thank you all for participating and you may now disconnect.