Buenaventura: One Of The Best Picks Among Gold Miners
Fri, Apr. 8, 5:40 PM
Feb. 27, 2015, 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.
Nov. 14, 2014, 5:38 PM
Oct. 10, 2014, 12:21 PM| Oct. 10, 2014, 12:21 PM
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
Sep. 19, 2013, 11:19 AM
- Barrick Gold (ABX -1.7%) and Buenaventura (BVN +3.4%) look cheap among gold miners in the Americas, J.P. Morgan says while still giving both Neutral ratings because of political risk; ABX has added uncertainty around its balance sheet.
- The firm says ABX’s cash flows have become more difficult to forecast, given uncertainty around two key assets: Fiscal problems in the Dominican Republic will channel half of the early cash flows from the Pueblo Viego project away from ABX, plus the negative ruling from the Chilean court has forced a halt to construction on the Chilean side of the Pascua Lama property.
- On BVN, the tax problem for Peru's resource industry was resolved but the Conga project has become tied up in political disputes linked to positioning for the next election.
- JPM prefers Buy-rated Goldcorp (GG -1.6%), Newmont Mining (NEM -1.3%) and Eldorado Gold (EGO -0.6%).
Aug. 27, 2013, 5:15 PM
- Gold (GLD +0.9%) benefited from today's risk-off investment climate but gold stocks are stocks first and gold plays second (if that), as the miners (GDX -4.2%) finished among the day's worst performers; they also tend to get hit hard by rising oil prices.
- BVN -6.8%, NGD -6.1%, CDE -5.7%, AUQ -5.6%, IAG -5.3%, SLW -4.9%, KGC -4.4%, AUY -4.4%, GG -4.3%, RGLD -4.2%, NEM -3.5%, ABX -3.4%, AU -3.1%, GFI -2.5%, HMY -2%.
- ETFs: GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING, SIL, SLVP, SILJ.
Aug. 2, 2013, 5:49 PM
Jul. 31, 2013, 12:24 PM
- 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.
Jul. 22, 2013, 10:14 AMMetal miners is the strongest sector in early trading as gold futures climb as high as $1,325/oz.: GDX +4.9%, GDXJ +5.8%, NUGT +15.1%. Newmont Mining (NEM +4.6%) tops all S&P 500 gainers; also RGLD +6%, ABX +5.3%, GG +4.6%, KGC +4.6%, BVN +4.2%, GFI +3.8%. Silver miners (SIL +4.4%): CDE +7%, SLW +5.6%, HL +3.2%. | Jul. 22, 2013, 10:14 AM | 5 Comments
Jun. 28, 2013, 5:31 PM
CompaÃ±Ãa 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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