Buenaventura (BVN) Halts Mining Activities at Tajo Norte Mine
Compañía de Minas Buenaventura S.A.A. BVN has announced that it temporarily suspended mining activities at Colquijirca’s Tajo Norte mine for up to three years. The suspension was due to a delay in the approval of Colquijirca's Modification of Environmental Impact Assessment.
Various factors, including administrative difficulties due to the Covid-19 pandemic, Peru's related 2020 state of emergency and the 2022 regulation changes relating to the processing of environmental evaluations, have contributed to the delay.
The company submitted a notice to the Peruvian Ministry of Energy and Mines regarding the suspension on Oct 03.
However, exploration activities and stockpiled ore rehandling at the concentrator plant will be carried out at the mine. Water management, and care and maintenance activities will also be conducted.
Usual mining activities will continue at the Marcapunta underground mine. The company is implementing a plan to boost production at the mine. The current 10,000 tons per day (tpd) output rate is anticipated to rise to 12,000 tpd in the next two to three years.
At the end of second-quarter 2023, the company expected gold production from El Brocal in 2023 to be 24,000-26,000 ounces. Silver production was expected at 2.7-3.0 million ounces. Lead production was expected between 7,500 MT and 8,300 MT. Zinc output was projected between 23,000 MT and 25,000 MT.
Price Performance
Shares of Buenaventura have gained 16.2% in the past year against the industry’s 16.6% decline.
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Zacks Rank & Stocks to Consider
Buenaventura currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Hawkins, Inc. HWKN, Carpenter Technology Corporation CRS and L.B. Foster Company FSTR. HWKN and CRS sport a Zacks Rank #1 (Strong Buy) at present, and FSTR carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares gained 58% in the last year.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.48 per share. The consensus estimate for 2023 earnings has moved 8% north in the past 60 days. Its shares gained 109.6% in the last year.
L.B. Foster has an average trailing four-quarter earnings surprise of 134.5%. The Zacks Consensus Estimate for FSTR’s 2023 earnings is pegged at 53 cents per share. Earnings estimates have been unchanged in the past 60 days. FSTR’s shares gained 98.4% in the last year.
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