Slim’s Frisco Surges as Gold Mine Strike Ends: Mexico City MoverNewley Purnell
Minera Frisco SAB, billionaire Carlos Slim’s gold and silver mining company, gained the most in two years after saying the government intervened to help end a strike at its biggest mine.
The shares jumped 13 percent to 31.05 pesos at 12:59 p.m. in Mexico City, the biggest gain on a closing basis since Jan. 2011. They had gained 8 percent yesterday. The stock was the best performer on Mexico’s benchmark IPC index, which fell 0.9 percent.
Mexico City-based Frisco’s shares had plunged 53 percent this year as strikes roiled the El Coronel mine in the northern state of Zacatecas and two others. Gold production in the second quarter at El Coronel fell by 34 percent to 31,526 ounces, after the strike led to a suspension of operations starting May 29, according to a quarterly report.
The “illegal strike” at El Coronel has been lifted “with the intervention of the Labor Ministry,” Frisco said in an Aug. 14 regulatory filing. Operations at the mine will resume shortly, according to the company.
“It’s very positive news,” said Marlene Finny, an analyst at Mexico-City based brokerage Corporativo GBM SAB, said in a phone interview. The end of the strike “came as a surprise.”
GBM upgraded Frisco today to the equivalent of buy from hold, saying in a note to clients that the company “has reached an attractive entry point” as the strike’s end “takes out the possible downside risk.”