Shares of First Quantum rose 0.3% at 9:31 a.m. in Toronto. Grupo Mexico fell 0.6% in Mexico City.
Las Cruces would give Grupo Mexico, the conglomerate controlled by Mexican billionaire German Larrea, another opportunity to expand in Europe after it failed to acquire a different Spanish copper mining complex in 2021. Grupo Mexico previously bid on nearby mining operation Minas de Aguas Tenidas, known as Matsa, but lost out to Australian producer Sandfire Resources Ltd., which bought the asset for about $1.9 billion.
First Quantum and Grupo Mexico declined to comment.
Analysts have recommended First Quantum sell assets to shore up its balance sheet after the setback at Cobre Panama. The giant mine generated 78% of First Quantum’s operating profit in the first nine months of last year, according to a company filing. Without the Panama operation, analysts have warned that First Quantum is at risk of breaching debt covenants…
