Buenaventura's Q2 profits plunges 88%

|By:, SA News Editor

It was an ugly quarter for top Peruvian miner Buenaventura (BVN -2.6%): an 88% drop in net income, production from mines it owns directly fell 65%, and sales fell 18% because of lower prices for gold, silver and copper. (H1 and Q2 results)

JPMorgan analyst John Bridges, however, is still optimistic, as BVN continues to generate free cash flows, is optimistic it can still achieve its 2013 gold and silver production guidance, and pays dividends. He recommends buying shares on weakness.