When ‘removing copper’ has another meaning: Larrea earns $ 100 million in 2020 thanks to the metal’s rebound
Copper prices have risen almost 70% since March as investors bet on a recovery in demand
Germán Larrea Mota-Velasco did take advantage of the copper rebound.
The Mexican billionaire made $ 100 million in the past three months by cutting his stake in Southern Copper in half, according to data compiled by Bloomberg, as prices for the metal rose to seven-year highs.
Last week, it sold $ 10.7 million worth of shares in the copper miner in the largest of nearly two dozen sales since October, according to the documents.
Copper prices have risen nearly 70 percent from this year’s low in March, as investors bet on a rebound in global demand once vaccines against the novel coronavirus are rolled out. Shares in Lima-based Southern Copper are up more than a third this year, valuing Larrea’s remaining stake at nearly $ 100 million, according to data compiled by Bloomberg.
However, there is uncertainty about when and how strongly there will be a recovery, and geopolitical risks remain high. Citigroup warned this month that copper’s recent rally appears to have gone too far, too fast.
Larrea’s fortune is built on metal. The lonely billionaire and his mother, Sara, control Grupo México, a mining conglomerate and one of the world’s largest copper producers. They have a combined fortune of nearly $ 22 billion, with most of their wealth tied to Grupo Mexico, according to the Bloomberg Billionaires Index.
Larrea’s other investments include the Grupo Cinemex cinema chain, which has closed some of its cinemas in the wake of the pandemic.
A representative for Southern Copper declined to comment, while Larrea did not respond to requests for comment made through Grupo Mexico.