Buenaventura: One Of The Best Picks Among Gold Miners
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
- Compañía de Minas Buenaventura (NYSE:BVN): Q3 EPS of $0.31 beats by $0.14.
- Revenue of $317.6M (-8.2% Y/Y) misses by $65.4M.
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| Oct. 10, 2014, 12:21 PM
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
- Compañía de Minas Buenaventura S.A.A. (NYSE:BVN): Q2 EPS of $0.09 misses by $0.09.
- Revenue of $305.1M (+6.8% Y/Y) misses by $4.05M.
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
Feb. 3, 2014, 6:58 PM
- Peru's Minera Yanacocha, run by Newmont Mining (NEM), says work on the giant Minas Conga copper and gold mine in Peru remains on hold, despite recent reports the stalled project could soon be under way again.
- The $5B project has been suspended since late 2011 following widespread and sometimes violent protests in the Cajamarca district in northern Peru; since then, the company has worked on building reservoirs to improve water supplies, the focal point of protesters who said the mine would hurt water quality.
- NEM owns a 51.35% stake in Minera Yanacocha, while Compania de Minas Buenaventura (BVN) A has a 43.65% stake.
Jan. 21, 2014, 4:57 PM
- Peru's Buenaventura (BVN) says it expects gold production to remain steady this year vs. 2013 at nearly 900K oz., which includes output from its 43.65% stake in the Yanacocha gold mine, while silver production is forecast to rise.
- CFO Carlos Galvez says BVN reached its gold production target for 2013 despite a 17-day strike during Q4 that temporarily halted operations at its Orcopampa mine.
- Yanacocha, majority owned by Newmont Mining (NEM) and one of the biggest gold mines in South America, is expected to produce ~1M oz. in 2014, which is about the same as last year's production.
- Silver output in 2014 is expected to increase to 20M-20.5M oz., thanks to higher output at its Uchucchacua mine.
Dec. 31, 2013, 11:03 AM
- With all the problems gold miners faced this year, the pushback many received from those living near the mines probably ranked low on the list, but signs are emerging that some communities are reassessing their opposition, especially as they weigh the costs to their economies.
- For example, local opposition to the Minas Conga project in Peru, a joint venture between Newmont Mining (NEM) and Buenaventura (BVN), could be dissipating, WSJ reports.
- Yet J.P. Morgan's John Bridges sees NEM revisiting its decision on Minas Conga only in 2015 after Peru's electoral cycle is over; the project needs $5B in capital investments, and NEM likely would not restart it with gold trading at $1,200/oz.
Compañía de Minas Buenaventura SAA engages in the mining, processing, development and exploration of gold and silver and other metals through wholly owned mines, as well as through its participation in joint exploration projects. Its operates the Julcani, Recuperada, Orcopampa, Poracota,... More
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