Q: Just looking for an update on this since last quarterly report. I’m looking to increase my resource exposure. If other core holdings to consider please list and use credits as necessary.
5i Research Answer:
MX is down 36% this year, bringing valuation to 10x earnings. Yield is 2.25%. The last quarter was mixed, with a beat on earnings and a miss on revenue. Production guidance was lowered on some operational challenges, and pricing is still not great. But the Q1 did show a big improvement overall. It is hard to get too excited here, but some brokers have upgraded the stock, believing the worst is over. It is still economically and tariff-sensitive, which limits our enthusiasm. We would consider it a HOLD today.