Mexican precious metals miner Industrias Peñoles (BMV: PE&OLES) reported in a statement to the nation's stock exchange that this year up to the end of the third quarter it absorbed a net loss of US$1.51mn on hedge contract derivatives.

The company issued the statement in response to an order by Mexico's securities regulator for companies that trade on the nation's stock exchange to explain their derivate positions.

The miner made 901mn pesos (US$69.1mn) in third quarter profits on output of 419,846oz gold, 30.9Moz silver, 34,243t lead, 56,469t zinc, 1,491t copper, 223t cadmium and 307t bismuth.

Peñoles is the world's largest primary silver producer.