gmm6k-_063003.txt
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Act of 1934
For the month of June 2003
Mexico Mining Group, S.A. de C.V.
(Translation of Registrant's name into English)
Grupo Minero Mexico, S.A. DE C.V.
Baja California 200 Col. Roma Sur
06760 Mexico, D.F.
(Address of principal executive offices)
Indicate by check mark whether the registrant files of will file annual
reports under cover of Form 20-F of Form 40-F
Form 20-F X FORM 40-F
Indicate by check mark whether the registrant by furnish the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g-32(b) under the Securities Exchange Act
of 1934
Yes: No X
If "yes" is marked, indicate the file number assigned to the registrant
in connection with Rule 12g3-2(b):
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MINERA MEXICO, S.A. DE C.V. (PREVIOUSLY GRUPO MINERO MEXICO, S.A. DE C.V. (1))
Date: August 06, 2003
By:
Name: Daniel Tellechea Salido
Title: Managing Director, Finance
MINERA MEXICO, S.A. DE C.V. AND SUBSIDIARIES (1)
CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2003 AND 2002
EXPRESSED IN THOUSANDS OF CONSTANT MEXICAN PESOS AS OF JUNE 30, 2003
A S S E T S
2003 2002
CURRENT:
Cash and marketable securities $ 958,851 $ 872,293
Notes and accounts receivable
Trade, 551,529 793,792
Affiliated companies 334,418 2,784,514
Recoverable taxes 580,192 387,489
Other 273,911 282,359
---------- ----------
1,740,050 4,248,154
Inventories of primary and secondary
metals and byproducts 1,062,332 1,101,289
Materials and supplies, 1,033,733 1,057,777
Prepaid expenses and other 62,409 48,131
---------- ----------
Total current assets 4,857,375 7,327,644
AFFILIATED COMPANIES LONG TERM 72,379 9,054,062
OTHER ASSETS:
Deferred charges 2,261,806 2,322,237
Share in trust and others 560,257 522,054
---------- ----------
2,822,063 2,844,291
PROPERTY AND EQUIPMENT, 28,240,985 29,856,875
INVESTMENTS IN SHARES OF ASSOCIATED AND
OTHER UNCONSOLIDATED COMPANIES 5,918 6,105
GOODWILL 94,304 121,784
---------- ----------
$ 36,093,024 $ 49,210,761
========== ==========
LIABILITIES AND STOCKHOLDERS'EQUITY
2003 2002
CURRENT:
Notes and interest payable $ 2,105,001 $ 2,062,418
Accounts payable and accrued liabilities 2,102,959 2,699,029
Affiliated companies 375,243 594,640
Income tax, asset tax and
employee profit sharing 181,687 95,538
---------- ----------
Total current liabilities 4,764,890 5,451,625
LONG-TERM DEBT 11,895,666 11,745,192
LIABILITY FOR VOLUNTARY RETIREMENT, PENSIONS,
SENIORITY PREMIUMS AND MEDICAL SERVICES 385,951 298,296
AFFILIATED COMPANIES LONG TERM 622,287 595,272
DEFERRED INCOME TAXES 7,918,096 7,648,538
---------- ----------
Total liabilities 25,586,890 25,738,923
STOCKHOLDERS' EQUITY:
Capital stock 6,058,181 11,887,346
Additional paid-in capital 1,681,956 22,696
Effect in merger 69,602 -
Retained earnings 18,273,125 38,997,394
Initial effect of deferred income taxes (9,972,046) (8,713,312)
Cumulative effect of restatement (6,504,189) (19,599,127)
---------- ----------
Total majority stockholders' equity 9,606,629 22,594,997
Minority interest 899,505 876,841
---------- ----------
10,506,134 23,471,838
Total stockholders' equity $ 36,093,024 $ 49,210,761
========== ==========
(1) ON MAY 28, 2003, WE AND MINERA MEXICO, S.A. DE C.V. HELD AN EXTRAORDINARY
SHAREHOLDERS' MEETINGS APPROVING THE MERGER OF GRUPO MINERO MEXICO, S.A. DE
C.V. AND INTO MINERA MEXICO, S.A. DE C.V. BETWEEN OURSELVES AND WITH REGARD TO
LEGAL, TAX AND ACCOUNTING RIGHTS AND OBLIGATIONS AMONG OURSELVES, THE MERGER
IS EFFECTIVE AS OF JUNE 1, 2003.
UNDER MEXICAN LAW, THE VALIDITY OF THE MERGER VIS-A-VIS THIRD PARTIES IS
EFFECTIVE NINETY DAYS AFTER THE REGISTRATION OF THE SHAREHOLDERS' RESOLUTIONS
AND ACCOMPANYING MERGER AGREEMENT WITH THE MEXICAN PUBLIC REGISTY OF COMMERCE.
THE EXECUTED RESOLUTIONS AND ACCOMPANYING MERGER AGREEMENT WERE REGISTERED ON
JULY 2, 3003, WITH THE MEXICAN PUBLIC REGISTRY OF COMMERCE.
MINERA MEXICO'S FINANCIAL INFORMATION SHOWN IN THIS REPORT, CONTAINS INCOR-
PORATED THE EFFECTS OF THE MERGER ABOVE MENTIONED, AND THAT THEY WERE AS
FOLLOWS:
THE CONSOLIDATED RESULTS (LOSSES) ACCUMULATED OF THE PERIOD OF SIX MONTHS ENDED
ON JUNE 30, INCLUDE THE CAPITALIZATION OF THE RESULTS OF THE PERIOD OF JANUARY
1st. TO MAY 30, 2003 (DATE WHEN THE MERGER TOOK PLACE), WITH AN AMOUNT OF
$ 354.7 MILLION PESOS WHICH ARE INTEGRATED BASICALLY FOR AND AMOUNT OF $ 69.1
MILLION PESOS OF OPERATING LOSSES, $ 171.5 MILLION PESOS OF NET COMPREHENSIVE
FINANCING COSTS, $ 105.3 MILLION OF DEFERRED TAX EFFECT AND $ 8.8 MILLION PESOS
OF OTHER SMALLER ITEMS, SITUATION THAT WAS REFLECTED AS A DECREASE IN THE
STOCKHOLDERS EQUITY.
MINERA MEXICO, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 2003 AND 2002
IN THOUSANDS OF MEXICAN PESOS OF PURCHASING POWER OF JUNE 30, 2003
2003 2002
-------------- -------------
NET SALES 3,569,838 100 3,750,529 100
COST OF SALES 2,590,058 73 2,734,663 73
---------- ---------
979,780 27 1,015,866 27
OPERATING EXPENSES:
Administrative expenses 159,249 4 193,150 5
Depreciation and amortization 933,326 26 867,380 23
---------- ---------
OPERATING LOSS (112,795) (3) (44,664) (1)
NET COMPREHENSIVE FINANCING COST:
Interest expense, net 95,658 3 129,221 3
Exchange loss, net 234,429 7 302,391 8
Realized income on hedging activities (1,212) - - -
Monetary position loss (gain) 43,092 1 (116,188) (3)
---------- --------
371,967 10 315,424 8
OTHER INCOME (EXPENSES), net 28,807 1 (24,239) (1)
---------- --------
Loss before provisions (455,955) (13) (384,327) (10)
PROVISIONS FOR:
Income taxes 6,522 - 13,569 -
Deferred tax 196,713 7 150,513 4
Asset taxes 59,190 2 74,013 2
Employee profit sharing 1,917 - 3,316 -
---------- ----------
264,342 7 241,411 6
---------- ----------
Consolidated net loss for the periods (720,297) (20) (625,738) (17)
========== =========
ALLOCATION OF CONSOLIDATED NET LOSS:
Majority interest (720,845) (20) (632,526) (17)
Minority interest 548 - 6,788 -
---------- ----------
(720,297) (20) (625,738) (17)
========== =========
Average realized copper (cts. pound) 77.95 76.00
Average realized zinc price (cts. pound) 37.64 39.00
Exports 40.74% 49.92%
Ratio of EBITDA to interest expense 1.68 1.22
Inflation rate 4.27% 4.94%
Devaluation rate (average) 14.43% (1.63%)
Earnings per share (0.94) (0.97)
Number of shares 769,604,346 659,161,917
MINERA MEXICO, S.A. DE C.V. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS 1st. and 2nd. Quarter, 2003 and 2nd. Quarter 2002
IN THOUSANDS OF MEXICAN PESOS OF PURCHASING POWER OF JUNE 30, 2003
2003 2002
------------------------------ ---------------
QTR. 1 % QTR. 2 % QTR. 2
--------- --------- --------- %
NET SALES 1,625,345 100 1,944,493 100 1,778,815 100
COST OF SALES 1,109,062 68 1,480,995 76 1,193,640 67
--------- --------- ---------
516,283 32 463,498 24 585,175 33
OPERATING EXPENSES:
Administrative expenses 81,110 5 73,205 4 101,540 6
Depreciation and
amortization 467,241 29 466,086 24 439,575 25
--------- --------- ---------
OPERATING (LOSS) INCOME (32,068) (3) (75,793) (4) 44,060 3
NET COMPREHENSIVE FINANCING COST:
Interest expense, net 140,664 8 (174,778) (9) 69,020 4
Exchange loss (gain), net 129,135 8 (396,250) (20) 398,080 22
Realized income on hedging
activities 0 - (1,112) - - -
Monetary position (gain)
Loss (294,674) (18) 328,784 17 21,014 1
--------- --------- ---------
(24,875) (2) (243,356) (13) 488,114 27
OTHER INCOME (EXPENSES), net 587 - 28,279 1 (20,116) (2)
--------- --------- ---------
(loss) Income before
provisions (6,606) 0 195,842 10 (464,170) (26)
PROVISIONS FOR:
Income taxes 5,321 - 1,201 - 7,766 0
Deferred income taxes 45,250 3 151,464 8 153,907 10
Asset taxes 62,578 4 (3,388) - 39,768 3
Employee profit sharing 1,636 - 281 - 1,645 -
--------- --------- ---------
114,785 7 149,558 8 203,086 11
--------- --------- ---------
Consolidated net (loss)
income for the periods (121,391) (7) 46,284 2 (667,256) (38)
========= ========= =========
ALLOCATION OF CONSOLIDATED NET
(LOSS) INCOME:
Majority interest (129,094) (7) 52,012 2 (674,935) (38)
Minority interest 7,703 - (5,728) - 7,679 -
--------- --------- ---------
(121,391) (7) 46,284 2 (667,256) (38)
========= ========= =========
Average realized copper
price(cts. Pound) 78.08 77.86 78.00
Average realized zinc
price (cts. Pound) 37.95 37.31 39.00
Exports 25.83% 52.42% 44.55%
*LTM Ratio of EBITDA to
interest expense 1.47 1.68 1.22
LTM inflation rate 5.64% 4.27% 4.94%
LTM devaluation rate (average) 18.46% 14.43% (1.63%)
Earnings per share (0.20) 0.07 (1.04)
Number of shares 659,161,917 769,604,346 659,161,917
* Last twelve months
MINERA MEXICO, S.A. DE C.V.
S A L E S
ACCUMULATED AS OF JUNE 30th, 2003 AND 2002
C O N C E P T REAL REAL VARIATION %
2003 2002
V O L U M E
GOLD (Kg) 494 530 (36) (7)
SILVER (Kg) 231,498 242,476 (10,978) (5)
LEAD (TONS) 11,308 14,156 (2,848) (20)
COPPER (TONS) 125,950 143,840 (17,890) (12)
ZINC (TONS) 43,966 49,362 (5,396) (11)
ZINC CONTAINED IN CONCENTRATES (TONS) 8,420 15,907 (7,487) (47)
COPPER CONTAINED IN CONCENTRATES (TONS) (11) (2,179) 2,168 (99)
THOUSANDS OF MEXICAN PESOS
EXPRESSED IN TERM OF THE PURCHASING POWER OF THE MEXICAN CURRENCY AS OF
JUNE 30th, 2003
GOLD 2% 59,147 51,916 7,231 14
SILVER 10% 371,299 359,131 12,168 3
LEAD 2% 54,506 65,343 (10,837) (17)
COPPER 64% 2,296,387 2,374,712 (78,325) (3)
ZINC 11% 387,920 418,297 (30,377) (7)
ZINC CONTAINED IN CONCENTRATES 2% 84,057 125,785 (41,728) (33)
COPPER CONTAINED IN CONCENTRATES (0%) (16) (31,236) 31,220 (100)
OTHERS 9% 316,538 386,581 (70,043) (18)
--------- --------- -------- ---
T O T A L 100% 3,569,838 3,750,529 (180,691) (5)
TOTAL THOUSAND DOLLARS 100% 330,639 375,746 (45,107) (12)
% OF CONTRIBUTION PER COMPANY
VARIATION IN % OF PARTICIPATION
SALES 2003/2002 TOTAL SALES 2003
PESOS DOLLARS PESOS
----- ------- -----
MEXCOBRE (11%) (12%) 58%
I.M.M.S.A. (16%) (22%) 26%
MEXCANANEA 12% 6% 16%
MINERA MEXICO (5%) (12%) 100%
MINERA MEXICO, S.A. DE C.V.
SALES
ACCUMULATED AS OF JUNE 30tht, 2003 AND 2002
EXPRESSED IN TERMS OF THE PURCHASING POWER OF THE MEXICAN CURRENCY
AS OF JUNE 30th, 2003
(THOUSAND OF MEXICAN PESOS)
C O N C E P T REAL REAL VARIATION %
2003 2002
MINERA MEXICO
GOLD 59,147 51,916 7,231 14
SILVER 371,299 359,131 12,168 3
LEAD 54,506 65,343 (10,837) (17)
COPPER 2,296,387 2,374,712 (78,325) (3)
ZINC 387,920 418,297 (30,377) (7)
ZINC CONTAINED IN CONCENTRATES 84,057 125,785 (41,728) (33)
COPPER CONTAINED IN CONCENTRATES (16) (31,236) 31,220 (100)
OTHERS 316,538 386,581 (70,043) (18)
--------- --------- --------- ---
T O T A L 3,569,838 3,750,529 (180,691) (5)
MEXCOBRE
GOLD 36,571 42,408 (5,837) (14)
SILVER 132,167 192,693 (60,526) (31)
COPPER 2,713 3,340 (627) (19)
ELECTROLYTIC CATHODIC COPPER 1,028,445 1,025,808 2,637 0
ELECTROWON CATHODIC COPPER 195,412 112,091 83,321 74
COPPER ROD 562,121 918,430 (356,309) (39)
COPPER CONTAINED IN CONCENTRATES 0 (30,964) 30,964 (100)
MOLYBDENUM 164,721 128,265 36,456 28
OTHERS 61,546 49,081 12,465 25
--------- --------- ------- ---
SUBTOTAL 2,183.696 2,441,152 (257,456) (11)
INTERCOMPANY SALES 107,730 165,059 (57,329) (35)
--------- --------- --------- ---
TOTAL 2,075,966 2,276,093 (200,127) (9)
========= ========= ========= ===
IMMSA/MIMENOSA(underground mines)
GOLD 40,261 32,885 7,376 22
SILVER 305,987 337,106 (31,119) (9)
LEAD 54,506 65,343 (10,837) (17)
COPPER 159,020 151,128 7,892 5
ZINC 375,503 408,674 (33,171) (8)
ZINC CONTAINED IN CONCENTRATES 100,526 125,786 (25,260) (20)
COPPER CONTAINED IN CONCENTRATES 29,485 60,660 (31,175) (51)
OTHERS 118,965 229,975 (111,010) (48)
--------- --------- ------- ---
SUBTOTAL 1,184,253 1,411,557 (227,304) (16)
INTERCOMPANY SALES 258,118 423,006 (164,888) (39)
--------- --------- ------- ---
TOTAL 926,135 988,551 (62,416) (6)
========= ========= ======= ===
MEXCANANEA
SILVER 12,782 9,809 2,973 30
COPPER (1,093) 0 (1,093) 100
COPPER CATHODES 572,015 511,696 60,319 12
COPPER CONTAINED IN CONCENTRATES 698,656 621,975 76,681 12
--------- --------- --------- ---
SUBTOTAL 1,282,360 1,143,480 138,880 12
INTERCOMPANY SALES 714,623 657,595 57,028 9
--------- --------- --------- ---
TOTAL 567,737 485,885 81,852 17
========= ========= ========= ===
MINERA MEXICO, S.A. DE C.V.
SALES VOLUME
ACCUMULATED AS OF JUNE 30th. 2003 AND 2002
(METRIC TONS)
C O N C E P T REAL REAL
2003 2002 VARIATION %
MINERA MEXICO
GOLD (Kg) 494 530 (36) (7)
SILVER (Kg) 231,498 242,476 (10,978) (5)
LEAD 11,308 14,156 (2,848) (20)
COPPER 125,950 143,840 (17,890) (12)
ZINC 43,966 49,362 (5,396) (11)
ZINC CONTAINED IN CONCENTRATES 8,420 15,907 (7,487) (47)
COPPER CONTAINED IN CONCENTRATES (11) (2,179) 2,168 (99)
MEXCOBRE
GOLD (Kg) 308 445 (137) (31)
SILVER (Kg) 82,544 131,699 (49,155) (37)
COPPER 157 269 (112) (42)
ELECTROLYTIC CATHODIC COPPER 51,689 48,711 2,978 6
ELECTROWON CATHODIC COPPER 10,747 7,060 3,687 52
COPPER ROD 29,374 54,623 (25,249) (46)
COPPER CONTAINED IN CONCENTRATES 0 (2,096) 2,096 (100)
MOLYBDENUM 1,490 1,708 (218) (13)
IMMSA/MIMENOSA
GOLD (Kg) 321 344 (23) (7)
SILVER (Kg) 191,283 223,905 (32,622) (15)
LEAD 11,308 14,156 (2,848) (20)
COPPER 8,969 9,106 (137) (2)
ZINC 42,831 48,942 (6,111) (12)
ZINC CONTAINED IN CONCENTRATES 10,487 15,907 (5,420) (34)
COPPER CONTAINED IN CONCENTRATES 1,637 3,876 (2,239) (58)
MEXCANANEA
SILVER (Kg) 7,978 6,602 1,376 21
COPPER CATHODES 32,451 33,794 (1,343) (4)
COPPER CONTAINED IN CONCENTRATES 37,722 37,880 (158) (0)
MEXICANA DE COBRE, S.A. DE C.V.
COMPARATIVE SUMMARY OF PRODUCTION MINES AND PLANTS
ACCUMULATED OF JUNE 30th. 2003 AND 2002
C O N C E P T REAL REAL VARIATION %
2003 2002
M I N E
PERFORATION (METERS) 140,573 136,153 4,420 3%
ORE (000MT) 11,948 11,326 622 5%
ORE GRADE % 0.524 0.530 (0.006) (1%)
LEACH ORE (000 MT) 13,912 11,788 2,124 18%
ORE GRADE % 0.284 0.255 0.029 11%
WASTE (000 MT) 9,253 8,156 1,097 13%
STRIPPING RATIO W/(O+L) 0.36 0.35 0.01 3%
STRIPPING RATIO (L+W)/O 1.94 1.76 0.18 10%
MATERIAL MOVED (000 MT) 35,114 31,270 3,844 12%
CONCENTRATOR RECOVERY % 77.32 79.52 (2.20) (3%)
CONCENTRADOR
CONCENTRATES PRODUCED 181,864 171,916 9,948 6%
COPPER CONTAINED RECOVERED 47,910 47,695 215 0%
GRADES
COPPER IN CONCENTRATES
PRODUCED % 26.34 27.74 (1.40) (5%)
POUNDS OF COPPER PRODUCED 105,623,337 105,149,321 474,016 0%
SILVER CONTAINED IN
CONCENTRATES KGS. 26,075 22,601 3,474 15%
GOLD CONTAINED IN
CONCENTRATES KGS. 83 64 19 30%
MOLIBDENUM CONTAINED PRODUCED 1,535 1,663 (128) (8%)
SX-EW PLANTS
COPPER CATHODES PRODUCED 10,779 8,256 2,523 31%
POUNDS OF COPPER
PRODUCED 23,762,546 18,201,173 5,561,373 31%
SMELTER
CONCENTRATES PURCHASED 142,080 185,713 (43,633) (23%)
CONCENTRATES SMELTED 318,453 363,812 (45,359) (12%)
TOTAL SMELTED 416,597 513,291 (96,694) (19%)
COPPER CONTAINED 127,654 155,538 (27,884) (18%)
COPPER RECOVERED % 97.50 97.34 0.16 0%
PRODUCTION IN MT
COPPER ANODES 100,353 122,814 (22,461) (18%)
POUNDS OF COPPER PRODUCED 219,343,140 268,456,350 (49,113,210) (18%)
SULFURIC ACID PRODUCED (MT) 303,400 396,300 (92,900) (23%)
SILVER CONTAINED
IN ANODES PRODUCED KGS. 94,976 145,025 (50,049) (35%)
GOLD CONTAINED
IN ANODES PRODUCED GRS. 401,539 468,638 (67,099) (14%)
R E F I N E R Y
COPPER CATHODES PRODUCED 81,494 101,420 (19,826) (20%)
POUNDS OF COPPER PRODUCED 179,664,389 223,595,772 (43,928,383) (20%)
ROD PLANT
COPPER ROD PRODUCED 28,898 53,662 (24,764) (46%)
POUNDS OF COPPER PRODUCED 63,707,312 118,301,792 (54,594,480) (46%)
PRECIOUS METALS PLANT
GOLD REFINED Oz. 9,915 14,293 (4,378) (31%)
SILVER REFINED Oz. 2,645,820 4,082,711 (1,436,891) (35%)
TOTAL CONTAINED COPPER
PRODUCED T.M.S TMS 97,389 101,529 (4,140) (4%)
INDUSTRIAL MINERA MEXICO/MINERALES METALICOS DEL NORTE
SUMMARY OF PRODUCTION OF MINES AND PLANTS
ACCUMULATED AS OF JUNE 30th, 2003 AND 2002
(METRIC TONS)
C O N C E P T REAL REAL VARIATION %
2003 2002
M I N E S
MILLED TONS 2,109,400 2,396,551 (287,151) (12)
C O N C E N T R A T E S
ZINC 114,814 129,395 (14,581) (11)
LEAD 19,956 22,374 (2,418) (11)
COPPER 41,008 45,234 (4,226) (9)
CONTENS
ZINC 62,510 70,612 (8,102) (11)
LEAD 10,553 12,563 (2,010) (16)
COPPER 9,377 10,217 (840) (8)
SILVER (KGS) 164,725 193,979 (29,254) (15)
GOLD (KGS) 114.768 129.830 (15.062) (12)
P L A N T S
SAN LUIS COPPER SMELTER
GOLD (KGS) 372 433 (61) (14)
SILVER (KGS) 137,069 153,902 (16,833) (11)
COPPER BLISTER 11,625 12,315 (690) (6)
ARSENIC 872 966 (94) (10)
SAN LUIS ZINC REFINERY
GOLD (KGS) 3 2 1 50
SILVER (KGS) 6,128 6,205 (77) (1)
ZINC REFINED 44,030 47,991 (3,961) (8)
SULFURIC ACID 78,392 84,159 (5,767) (7)
CADMIUM 322 326 (4) (1)
TOLLING
GOLD (KGS) 68 66 2 3
SILVER (KGS) 70,192 71,136 (944) (1)
LEAD 8,927 8,057 870 11
COAL PLANT
COKE 42,390 43,772 (1,382) (3)
COAL 233,975 672,468 (438,493) (65)
MEXICANA DE CANANEA S.A. D E C.V.
COMPARATIVE SUMMARY OF PRODUCTION MINES AND PLANTS
ACCUMULATED AS OF JUNE 30th, 2003 AND 2002
C O N C E P T REAL REAL VARIATION %
2003 2002
M I N E
PERFORATION (METERS) 252,027 375,624 (123,597) (33%)
ORE (000 MT) 8,525 9,688 (1,163) (12%)
ORE GRADE % 0.595 0.527 0.068 13%
LEACH ORE (000 MT) 14,672 15,204 (532) (3%)
ORE GRADE % 0.269 0.235 0.034 14%
WASTE (000 MT) 9,355 25,962 (16,607) (64%)
STRIPPING RATIO W/(O+L) 0.40 1.04 (0.64) (62%)
STRIPPING RATIO (L+W)/O 2.82 4.25 (1.43) (34%)
MATERIAL MOVED (000 MT) 32,552 50,854 (18,302) (36%)
CONCENTRATOR RECOVERY % 80.01 79.86 0.15 0%
CONCENTRATOR
CONCENTRATES PRODUCED 137,522 157,572 (20,050) (13%)
COPPER CONTAINED RECOVERED 39,561 40,584 (1,023) (3%)
GRADES
COPPER IN CONCENTRATES PRODUCED % 28.77 25.76 3.01 12%
POUNDS OF COPPER PRODUCED 87,216,500 89,472,810 (2,256,310) (3%)
SILVER CONTAINED IN CONCENTRATES KGS 12,779 12,517 262 2%
GOLD CONTAINED IN CONCENTRATES KGS 119 115 4 3%
SX-EW PLANTS
COPPER CATHODES PRODUCED 22,820 24,004 (1,184) (5%)
POUNDS OF COPPER PRODUCED LBS 50,308,432 52,918,794 (2,610,362) (5%)
TOTAL CONTAINED COPPER PRODUCED TMS 61,219 61,883 (664) (1%)
INDUSTRIAL MINERA MEXICO / MINERALES METALICOS DEL NORTE
COST OF PRODUCTION
ACCUMULATED AS OF JUNE 30th, 2003 AND 2002
(US DOLLARS)
C O N C E P T REAL REAL
2003 2002 VARIATION %
COST PER MT MILLED
CHARCAS 13.67 16.46 (2.79) (17)
SAN MARTIN 15.50 15.39 0.11 1
TAXCO 27.95 24.34 3.61 15
SANTA BARBARA 17.93 16.63 1.30 8
AVERAGE COST 16.82 17.03 (0.21) (1)
TOTAL PRODUCTION COST-MINES (000) 36,480 41,823 (5,343) (13)
COST PER MT PROCESSED
SAN LUIS COBRE (BLISTER) 603.68 607.27 (3.59) (1)
SAN LUIS ELECTROLITIC (Zn) 451.98 369.90 82.08) 22
NUEVA ROSITA (COKE)* 112.13 95.75 16.38 17
TOTAL PRODUCTION COST-PLANTS (000) 33,349 36,465 (3,116) (9)
TOTAL PRODUCTION COST-IMM (000) 69,829 78,288 (8,459) (11)
*COST PER MT OF PRODUCED COKE
MINERA MEXICO, S.A. DE C.V.
METALS INVENTORY
JUNE 30th JUNE 30th VARIATION
2003 2002 %
GOLD (KG)
CONCENTRATE 64 69 (7)
IN PROCESS 435 344 26
FINISHED 20 15 33
TOTAL 519 428 21
SILVER (KG)
CONCENTRATE 21,019 42,740 (51)
IN PROCESS 214,078 240,339 (11)
FINISHED 8,971 5,954 51
TOTAL 244,068 289,033 (16)
LEAD (TON)
CONCENTRATE 460 2,819 (84)
IN PROCESS 16,430 13,516 22
FINISHED 9 9 0
TOTAL 16,899 16,344 3
COPPER (TON)
CONCENTRATE 11,951 7,106 68
IN PROCESS 30,267 25,305 20
FINISHED 2,962 10,890 (73)
TOTAL 45,180 43,301 4
ZINC (TON)
CONCENTRATE 11,946 10,587 13
IN PROCESS 12,489 7,256 72
FINISHED 4,975 6,427 (23)
TOTAL 29,410 24,270 21
TOTAL GROUP (THOUSANDS OF
MEXICAN PESOS) 1,062,332 1,101,289 (4)
MEXICANA DE COBRE / MEXICANA DE CANANEA
COMPARATIVE SUMMARY OF PRODUCTION COST
ACCUMULATED AS OF JUNE 30th. 2003 AN 2002
U S D O L L A R S
REAL REAL
2003 2002 VARIATION %
MINE-CONCENTRATOR
COST PER MT MINED 0.55 0.49 0.06 12%
COST PER MT MILLED 4.27 3.33 0.94 28%
TOTAL PRODUCTION COST (000) 50,497 37,673 12,824 34%
SX-EW PLANTS
COST PER MT OF CATHODES PRODUCED 459.75 408.18 51.57 13%
TOTAL PRODUCTION COST (000) 4,956 3,370 1,586 47%
S M E L T E R
COST PER MT OF ANODES PRODUCED 255.46 209.83 45.63 22%
TOTAL PRODUCTION COST (000) 25,636 25,771 (135) (1%)
R E F I N E R Y
COST PER MT OF ANODES PRODUCED 101.11 54.68 46.43 85%
TOTAL PRODUCTION COST (000) 8,240 5,545 2,695 49%
ROD PLANT
COST PER MT OF ROD PRODUCED 84.04 55.61 28.43 51%
TOTAL PRODUCTION COST (000) 2,428 2,984 (556) (19%)
PRECIOUS METALS PLANT
COST PER MT OF SLIMES PROCESSED 3,310.93 2,889.99 420.94 15%
TOTAL PRODUCTION COST (000) 1,442 1,791 (349) (19%)
TOTAL PRODUCTION COST (000) 93,199 77,134 16,065 21%
US CENTS PER POUND OF Cu PRODUCED
MINE CONCENTRATOR 47.8 35.9 11.9 33%
SX-EW PLANTS 20.9 18.5 2.4 13%
SMELTER 11.7 9.6 2.1 22%
REFINERY 4.6 2.5 2.1 84%
ROD PLANT 3.8 2.5 1.3 52%
U S D O L L A R S
REAL REAL
2003 2002 VARIATION %
MEXICANA DE CANANEA
MINE CONCENTRATOR
COST PER MT MINED 0.81 0.68 0.13 19%
COST PER MT MILLED 4.64 3.79 0.85 22%
TOTAL PRODUCTION COST (000) 38,639 36,091 2,548 7%
639
SX-EW PLANTS
COST PER MT OF CATHODES PRODUCED 537.34 430.57 106.77 25%
TOTAL PRODUCTION COST (000) 12,262 10,335 1,927 19%
TOTAL PRODUCTION COST (000) 50,901 46,426 4,475 10%
US CENTS PER POUND OF Cu PRODUCED
MINE CONCENTRATOR 44.3 40.8 3.5 9%
SX-EW PLANTS 24.4 19.5 4.9 25%