Companhia de Minas Buenaventura SA (ADR)
Peru is one of the fastest growing economies in Latin America. Its economy has been expanding at a startling speed, with an annual average GDP growth rate of 5% over the last two decades. The staggering rate of economic growth has been fueled by a commodities boom and a significant influx of foreign direct investment into the country´s commodities sector. This has generated solid tax and royalty revenues that more »
People seem to be very excited about some Latin American countries. Bolivia has recently sold $500 million in 10 year bonds at at a rate below 5%, and Peru's 10 year debt also trades at very tight spreads. I think rates on those sovereign bonds do not reflect real risk and are way too low.
That said, some fundamentals give support for so much excitement: in a world that more »
Gold was one of my first topics when I started my Foolish musings. In December I introduced you to Newmont Mining (NYSE: NEM), down 29%, and Compania De Minas Buenaventura SA Buena (NYSE: BVN), down 2%. At the same time, the metal itself is down 8%, as measured by the SPDR Gold Trust (NYSEMKT: GLD). In February I wrote about Barrick Gold Corp (NYSE: ABX), down 23% since then.
So more »
Opposition to mining projects has polarized Peruvian politics and now threatens the future of mining in the Andean nation. Protests against the giant Minas Conga copper and gold project being developed by Newmont (NYSE: NEM) and Beunaventura (NYSE: BVN) and other projects got so rowdy that the nation's president effectively declared a state of emergency. A state of emergency is a euphemism for martial law.
Newmont has had to more »
Gold has been at the top of its game for a while now, but investors are starting to turn bearish as stocks trembled across the board last week. For Goldcorp (NYSE: GG) investors, dividend time is approaching, and these shareholders are holding their breath to see what the industry is going to do to their payout.
Goldcorp looks like one of the more stable gold mining stocks to own right more »
I love gold. Well, I am attached to gold stocks, anyway. When last I wrote on this topic, I offered a couple of high yielding stocks that might profit from political changes in Peru. Since then, Newmont Mining (NYSE: NEM) is up 2%, and Companhia de Minas Buenaventura SA (NYSE: BVN) is down 6%. The case for gold is unchanged, however, as long as uncertainty reigns in Europe and the more »
Newmont Mining Corp (NYSE: NEM), primarily a gold mining company, is up 6% over the past year. Compania De Minas Buenaventura SA Buena (NYSE: BVN), primarily a gold mining company, is down 18% over the same period. Why the difference?
It's not in the numbers. BVN earnings are growing twice as fast as NEM's, 30% to 15%. Both stocks are cheaply priced at a PEG of 0.5 more »