Emerging Markets : High Metals Prices Boost Peru Miner

Compañía de Minas Buenaventura, Peru’s largest publicly traded precious metals mining company, is basking in record high prices for much of its output. Buenaventura operates seven mines in Peru and holds controlling interests in two other mining companies, as well as minority interests in several others. It owns a 44% stake in Minera Yanacocha, a partnership with Denver, Colorado-based Newmont Mining, one of the largest precious-metals producers in the world. Yanacocha, located in northern Peru, is the largest gold mine in Latin America. As its ore grades deteriorate, Yanacocha is building a gold mill for $250 million to process transitional ores.

Buenaventura also owns 18.5% of Cerro Verde, a copper producer located in southern Peru. The company is a major holder of mining rights in Peru and is looking to expand internationally. It is exploring for gold in Argentina and Brazil.

Mining has become a backbone of Peru’s economy. The country’s output of copper, zinc, silver and lead reached record highs last year.

Buenaventura has been listed on the Lima Stock Exchange since 1971, and its American depositary receipts have traded on the New York Stock Exchange since 1996.

Gordon Platt