The MasterBlog: Peru: junior miners are back | beyondbrics | FT.com
Subscribe to The MasterBlog in a Reader Subscribe to The MasterBlog by Email

MasterBlogs Headlines

Wednesday, September 8, 2010

Peru: junior miners are back | beyondbrics | FT.com

In Peru back in 2008, junior miners - those companies who rely largely on capital markets for finance - proved to be the canaries down their own mines who warned of the credit crunch.
Juniors had flooded into the market to join a frenzy of exploration, attracted by a heady mix of soaring commodity prices, cheap credit, China-like rates of economic growth and Alan Garcia’s pro-investment policies. But, true to hot money form, they had already begun a rapid exit by the time Lehman Brothers fell and the commodities boom ended.
Now juniors are coming back, in a more orderly fashion.
They have been attracted, in part, by Peru’s economic recovery: GDP growth has hit double figures in recent months, and is forecast to be as high as 8 per cent for 2010 as a whole.
Credit is also attainable once more. Gonzalo de Rosa, junior-mining analyst at Banco de Credito, told beyondbrics:
As the crisis passes, [juniors] have been more actively getting more credit facilities; they can do private placements. I don’t think that’s going to be an issue for them in the next few years.
As prices begin to present a positive trend they’re going to be gain more appreciation in the market.
Some juniors have a headstart now, with social and environmental impact assessments approved before the downturn. Yet the increase in junior investment is not as steep as it was two years ago.
Alonso Segura, chief economist at Banco de Credito, points out the juniors’ challenge:
One thing is betting on the sovereigns of an investment grade country which is a star performer in the region, a medium-sized economy, or buying bonds of a very well rated company - a very different issue is buying bonds of a junior company, which is basically going to a casino.
Casinos or not, junior miners are certainly back in vogue

Peru: junior miners are back | beyondbrics | FT.com

Share this|
________________________
The MasterBlog

No comments:

Post a Comment

Commented on The MasterBlog

Tags, Categories

news United States Venezuela Finance Money Latin America Oil Current Affairs Middle East Commodities Capitalism Chavez International Relations Israel Gold Economics NT Democracy China Politics Credit Hedge Funds Banks Europe Metals Asia Palestinians Miscellaneous Stocks Dollar Mining ForEx Corruption obama Iran UK Terrorism Africa Demographics Government UN Living Bailout Military Russia Debt Tech Islam Switzerland Philosophy Judaica Science Housing PDVSA Revolution USA War petroleo Scams articles Fed Education France Canada Security Travel central_banks OPEC Castro Nuclear freedom Colombia EU Energy Mining Stocks Diplomacy bonds India drugs Anti-Semitism populism Arabs Brazil Environment Irak Saudi Arabia elections Art Cuba Food Goldman Sachs Syria Afghanistan Hamas Lebanon Silver Trade copper Anti-Israel Egypt Hizbollah Madoff Ponzi Warren Buffett press Aviation BP Euro FARC Gaza Honduras Japan Music SEC Smuggling humor socialism trading Che Guevara Freddie Mac Geneve IMF Spain Turkey currencies violence wikileaks Agriculture Bolívar ETF Restaurants Satire communism computers derivatives Al-Qaida Bubble FT Greece NY PIIGS Republicans Sarkozy Space Sports BRIC CITGO DRC Flotilla Germany Globovision Google Health Inflation Law Libya Mexico Muslim Brotherhood Nazis Pensions Peru Uranium cnbc crime cyberattack fannieMae pakistan stratfor Apollo 11 Autos BBC Bernanke CIA Chile Climate change Congo Democrats EIA Haiti Holocaust IFTTT ISIS Jordan Labor M+A New York OAS Philanthropy Shell South Africa Tufts Ukraine bitly carbon earthquake facebook racism twitter Atom BHP Beijing Business CERN CVG CapitalMarkets Congress Curaçao ECB EPA ETA Ecuador Entebbe Florida Gulf oil spill Harvard Hezbollah Human Rights ICC Kenya L'Oréal Large Hadron Collider MasterBlog Morocco Nobel Panama Paulson RIO SWF Shiites Stats Sunnis Sweden TARP Tunisia UN Watch Uganda VC Water Yen apple berksire hathaway blogs bush elderly hft iPad journalism mavi marmara nationalization psycology sex spy taxes yuan ALCASA ANC Airbus Amazon Ariel Sharon Australia Batista Bettencourt Big Bang Big Mac Bill Gates Bin Laden Blackstone Blogger Boeing COMEX Capriles Charlie Hebdo Clinton Cocoa DSK Desalination Durban EADS Ecopetrol Elkann Entrepreneur FIAT FTSE Fannie Freddie Funds GE Hayek Helicopters Higgs Boson Hitler Huntsman Ice Cream Intel Izarra KKR Keynes Khodorskovsky Krugman LBO LSE Lex Mac Malawi Maps MasterCharts MasterFeeds MasterLiving MasterMetals MasterTech Microsoft Miliband Monarchy Moon Mossad Mugabe NYSE Namibia Nestle OWS OccupyWallStreet Oman PPP Pemex Perry Philippines Post Office Private Equity Property Putin QE Rio de Janeiro Rwanda Sephardim Shimon Peres Stuxnet TMX Tennis UAV UNHRC VALE Volcker WTC WWII Wimbledon World Bank World Cup ZIRP Zapatero airlines babies citibank culture ethics foreclosures happiness history iPhone infrastructure internet jobs kissinger lahde laptops lawyers leadership lithium markets miami microfinance pharmaceuticals real estate religion startup stock exchanges strippers subprime taliban temasek ubs universities weddimg zerohedge

Subscribe via email

Enter your email address:

Delivered by FeedBurner

AddThis

MasterStats