Buenaventura Shares Go Back Up After Earnings Disappointment

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Compañia de Minas Buenaventura (NYSE:BVN) reported a Net Loss of US$6.1 mln in 4Q, which equals US$0.02 per ADR. BVN closed at $19.45 the day ahead of the announcement, and is now up to $22.70. Buenaventura's shares have made a strong comeback since October 2008, and are now up 131% since the low of $9.82.

With respect to the company's project development, they reported that the integration of the Carmen and Socorro mines at level 3990 concluded in 4Q'08. In the Carmen Mine, Master Shaft facilities at level 3920 were completed in December 2008, and ramp 626 at the Socorro Mine will continue to deepen until 292 m. by the end of 2009. Total Investments in the projects during 2008 reached US$4.8 mln.

At the end of 2008, Assets, Liabilities and Equity were US$2.3 bln, US$539 mln and US$1.7 bln. Cash and Cash Equivalents at the end of the year were US$532 mln, up from US$303 mln in 2007.

Buenaventura has 254 mln outstanding shares, with and ADR-ratio of (1:1). The current price per ADR of US$22.7 reflects a P/E ratio of 20.7 and a Market Cap of US$5.8 bln.