Buenaventura Climbs on Investor Optimism for Earnings Outlook
Cia. de Minas Buenaventura SAA, Peru’s biggest precious-metals miner, rose to the highest in six weeks in Lima trading as investors speculated that next week’s earnings report will reflect gains from subsidiaries.
The shares jumped 4.9 percent to $45.20 at 2:25 p.m. New York time, after earlier gaining as much as 6.6 percent to the highest level since Jan. 7.
“Investors see it as an attractive stock due to its exposure to gold prices and strong performances from equity stakes in other companies,” Cesar Dextre, an analyst at Lima- based brokerage Kallpa Securities SAB, said in a telephone interview. The shares’ 18 percent drop this year through the end of last week was “overdone,” he said.
Sociedad Minera Cerro Verde SA and Soc. Minera El Brocal SAA (BROCALC1), in which Buenaventura holds stakes, boosted fourth-quarter net income by 53 percent and 23 percent, respectively. Buenaventura is scheduled to report earnings Feb. 24.
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