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.
Nov. 5, 2013, 11:55 AM
- Buenaventura (BVN -0.7%), currently trading at base metals levels due partly to Peruvian politics, is a solid buy for long-term investors, J.P. Morgan says as it raises its price target on the shares to $20 from $19.
- The firm likes BVN’s nearly 60-year record of reserve replacement and its ongoing commitment to organic reserve growth, and expects a strong Q4; Q3 earnings were dragged down by one-off charges at Yanacocha, but the firm expects the mine to exceed the mid-point guidance expectation of 975koz.
- The analysts also believe BVN will be able to complete its major projects by the end of this year and next year’s capex level will drop.
Oct. 14, 2013, 8:22 AM
- Compania de Minas Buenaventura (BVN) is upgraded to Overweight rating from Neutral but its 2014 year-end price target is cut to $19 from $22 by J.P. Morgan.
- The firm believes BVN has fallen too far after slumping 67% YTD because of a decline in interest from emerging market investors, concern about the future of the Yanacocha mine, and operational problems in BVN's self-managed mines.
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 PMAfter-hours top gainers, as of 5:15 p.m.: VTSS +3%. AMOV +2%. SNFCA +1%. ARNA +1%. IXJ +1%.
After-hours top losers: IDCC -8%. GLD -3%. TRMR -3%. JKHY -2%. BVN -2%. | Jun. 28, 2013, 5:31 PM | 2 Comments
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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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