Slim Miner Frisco Slumps Amid Labor Dispute: Mexico City MoverJonathan Levin
Minera Frisco SAB, billionaire Carlos Slim’s gold and silver miner, declined as a labor dispute dragged on at its El Coronel mine and two others.
Frisco fell 0.5 percent to 46.55 pesos at 2:55 p.m. in Mexico City, extending its two-day drop to 1.9 percent. The company said yesterday that a minority group of workers outside the main union had halted output.
El Coronel is Frisco’s biggest mine, processing more than 3 million tons in the first quarter. Labor disputes are also affecting the Maria mine, its second-largest, and San Francisco del Oro, according to the company. The work stoppage came as workers for a pro-government union decided to switch to the National Mine Workers’ Union, according to the Associated Press, which cited Julio Pomar, a spokesman for that union.
“If the strike goes on for much longer, logically it’s going to affect the company’s results,” Gerardo Copca, an analyst at Metanalisis SA, said in a telephone interview from Mexico City.
Gold fell today, leaving the precious metal down 17 percent this year. Silver also retreated.
As of the close of trading yesterday, Minera Frisco traded at 131 times trailing earnings, making it the priciest stock on Mexico’s benchmark IPC index.