Mexico-based mining company Minera Autlán, S.A.B. de CV (Autlán) C. Autlán estimates an increase of 3 percent in sales volume of ferroalloys from the first quarter last year, despite continuing difficulties in the international economic environment; revenue growth will not reflect the same proportion.
The company expects net sales to increase 1 percent compared to the same period in 2012, even though the ferroalloy market continues to see a slight decline in prices caused by a glut in the market. Manganese ore prices saw a slight recovery, which could contribute to an improvement in the price of ferroalloys. On the other hand, the appreciation of the Mexican peso in the quarter did not allow a greater increase in sales; however, thanks to the hedging strategy applied, the company managed to generate a financial return. Therefore, Autlán expects a net profit greater than 50 million pesos US$4.1 million).
Regarding EBITDA generation, the company estimates an approximate decrease of 11 percent compared with the same period last year, impacted by lower prices and higher sales volume, which caused an increase in costs.
