Fri, Feb. 27, 3:49 PM
- Buenaventura (BVN +6.5%) is surging after reporting Q4 adjusted EBITDA of $167M and saying strong gold production at its Yanacocha mine helped results reach the high end of its production guidance.
- The Peruvian gold miner says it produced 245K gold oz. and 5.5M silver oz. during Q4, vs. 184K gold oz. and 4.8M silver oz. in the year-ago quarter; but full-year output was mixed, with gold production of 846K oz. coming in below the prior year's 895K oz., and silver up at 19.7M oz. vs. 18.9M oz. in 2013.
- Q4 net sales of $254M were 12% lower than the prior year's $287M, as the average realized prices for gold, silver and copper fell a respective 6%, 24% and 8% Y/Y; Q4 sales volumes rose 33%, 28% and 25% for gold, silver and copper.
Fri, Feb. 27, 6:05 AM
Nov. 14, 2014, 5:38 PM
Nov. 7, 2014, 4:39 PM
- Newmont Mining (NYSE:NEM) likely will secure key community support for its $5B Minas Conga gold project in Peru, as the company and its partner Buenaventura (NYSE:BVN) are winning over communities that opposed the project, the country’s environment minister says.
- Local communities have opposed the project on concerns over water availability at the site, but the minister now believes an understanding can be reached.
- NEM and BVN stopped work after violent protests staged by local villagers that began in 2011.
Oct. 31, 2014, 9:14 AM| Comment!
Oct. 13, 2014, 10:22 AM
- Newmont Mining's (NEM +1.5%) Peruvian unit says it will keep pushing for local support for its stalled Conga gold mine after a jailed opponent of the project was easily re-elected to lead the Cajamarca region.
- NEM said last year it would re-evaluate its proposed $5B Conga mine after the election; now it says in an open letter that it is interested in "continuing to invest in Peru and especially the Cajamarca region."
- Peruvian miner Buenaventura (BVN +1.2%) is NEM's junior partner and owns a 43.65% stake in Conga.
Oct. 10, 2014, 12:21 PM| Comment!
Oct. 6, 2014, 6:54 PM
- Peruvians yesterday showed strong support for anti-mining candidates in at least three regional elections, putting investments in the sector at risk, political analysts say.
- In the Cajamarca region, where ~$9B in mining investments are planned, including ~$5B in the giant Minas Conga copper and gold project, the anti-mining incumbent won re-election despite corruption charges that have led to his being jailed in a maximum-security facility while investigations continue.
- Newmont Mining (NYSE:NEM) has run the giant Yanacocha gold mine in Cajamarca for 20 years, and analysts say benefits of the mine haven’t been felt in the poor, mostly agricultural area; NEM owns a 51.35% stake in Minera Yanacocha, while Buenaventura (NYSE:BVN) has a 43.65% stake.
- Production at Yanacocha is flagging, and NEM wants to open the Minas Conga deposits that are adjacent to the existing mine.
Aug. 19, 2014, 8:33 AM
- Buenaventura (NYSE:BVN) is taking full control of the Chucapaca gold deposit in Peru by buying a 51% stake in the project from partner Gold Fields (NYSE:GFI), raising its stake from 49%.
- BVN, which is paying $81M plus royalties, says it will develop the deposit as an underground mine instead of as an open-pit project the two companies once deemed too costly.
- Chucapaca has been estimated to produce 500K oz. of gold per year once up and running.
Jul. 30, 2014, 7:32 PM| Comment!
Jun. 20, 2014, 3:22 PM
- It's a good idea to have exposure to gold stocks in one's portfolio, say JPMorgan analyst John Bridges and team, but beware of sector plays (GDX -1.3%), and instead pick and choose carefully.
- Goldcorp (G +0.1%) is a "simple decision stock," says the team, thanks to its strong balance sheet, growth profile, and disciplined management. Names like Barrick (ABX -1.2%), Newmont (NEM +1.1%), and Kinross (KGC -1.9%) would fare better in a gold bull market, but today's "back-to-basics phase" means valuations are driven by strong operations and accretive deals.
- Another theme is to own players with operations in the safest locations, an idea paying off for Agnico (AEM +0.7%), but the team also recently initiated B2Gold (BTG +1.1%) with positive coverage on the idea some companies can learn how to operate successfully in "more complex locations."
- Another favorite is laggard Buenaventura (BVN -0.5%) which is likely to see improved results in H2.
May. 1, 2014, 12:06 PM
- Miner Buenaventura (BVN -11.2%) shares sink after reporting disappointing Q1 results, showing a loss of $0.04/share vs. analyst consensus for a gain of $0.22/share.
- Gold equity production totaled 191,448 ox., down 21% Y/Y, mainly due to lower production at Orcopampa and Yanacocha; silver equity production was 4.1M oz., 12% lower than the prior-year quarter.
- But J.P. Morgan analysts think BVN will begin to turn around this year: The Brocal expansion should result in higher throughput starting in Q2, the Tambomayo project is progressing on track for production in 2016, and the Cerro Verde expansion - turning the mine into one of the world’s largest copper mines - is on time and on budget.
Apr. 22, 2014, 7:55 AM
- Gold and silver equities now appear more fairly valued, Goldman Sachs says, raising its sector coverage view to Neutral as it sees more responsible capital allocation, successful cost cutting initiatives, a refocus on maximizing free cash flow, and sound strategic portfolio optimization improving the positioning of select companies and offsetting its below-consensus outlook for commodity prices ($1,200/oz. gold from 2015 forward).
- The firm upgrades Barrick Gold (ABX) to Buy, believing the company's financial flexibility has significantly improved; ABX +1.8% premarket.
- B2Gold (BTG) is initiated with a Buy rating and C$4.20 price target, as Goldman cites imminent production growth from the Otjikoto project which enhances BTG’s free cash flow generation and should fund future development.
- Started at Neutral: AGI, FNV, BVN,.
- Maintained at Buy: GG, AUY, SLV.
- Sell: IAG, EGO, PAAS.
- ETFs: GDX, GDXJ, NUGT, DUST, SIL, GLDX, JNUG, SLVP, RING, SILJ, JDST, GGGG, PSAU
Apr. 15, 2014, 5:42 PM
Mar. 27, 2014, 5:45 PM
Mar. 3, 2014, 9:55 AM
- Gold futures are surging in the wake of the crisis in Ukraine, and that's giving precious metals miners a big boost in early trading.
- AU +5.2%, GOLD +5%, GFI +4.6%, MUX +4.1%, BVN +3.9%, MVG +3.6%, SSRI +3.3%, IAG +3.2%, BTG +3.1%, HMY +3.1%, EXK +3.1%, ABX +2.8%, AUY +2.8%, SA +2.8%, SLW +2.7%, GG +2.7%, NEM +2.6%, HL +2.6%, KGC +2.3%, AGI +2.2%, AG +1.9%, NG +1.9%, PPP +1.8%, AUQ +1.6%, PAAS +1.2%, NGD +1%.
- ETFs: GDX, GDXJ, NUGT, DUST, SIL, GLDX, JNUG, SLVP, RING, SILJ, GGGG, JDST, PSAU
BVN vs. ETF Alternatives
Buenaventura Mining Co Inc is a precious metal company & is engaged in the exploration, mining, concentration, smelting & marketing of polymetallic ores & metals. It produces refined gold & silver, either as dore bars or concentrates, & other metals.
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