Grupo Mexico SAB, the mining and railroad company controlled by billionaire German Larrea, surged the most in two months after Peru said it could move ahead on a $1.3 billion project in the South American nation.
Shares in Grupo Mexico jumped 3.1 percent to 49.24 pesos today in Mexico City trading, the most since May 23. The stock was the biggest gainer on Mexico’s benchmark IPC index.
Peru’s Mining and Energy Ministry said yesterday it was issuing an environmental permit for the Tia Maria mine project of Southern Copper Corp., which is controlled by Grupo Mexico. The project will fuel an 8 percent increase in Mexico City-based Grupo Mexico’s earnings before interest, taxes, depreciation and amortization, according to CI Casa de Bolsa SA.
The rally is “totally related to the Tia Maria project,” Aldo Miranda, a trader at CI Casa de Bolsa, said in an e-mailed response to questions.