Investors quailed when economic nationalist Ollanta Humala was elected President of Peru June 5. Peru ranks first in the world for production of silver—second for copper and zinc, sixth for gold—and Peruvian mining stocks were hit hard June 6. For example, the country's largest precious metals producer, Compania de Minas Buenaventura, plunged 11.7%. However, Humala's recent cabinet appointments of moderates, and his decision to retain economist Julio Velarde as Central Bank President would appear to have turned the tide of world opinion.
"Our stock price has been negatively affected by a lot of uncertainty with the new President," says Scott Moore about Sulliden Gold Corp.'s (TSX:SUE; OTCQX:SDDDF) flagship Shahuindo Gold and Silver Project. But, the VP of Corporate Development adds, "At the end of the day, the pro-leftist candidate has to fund the social agenda, and that means they have to have good economic drivers. In Peru mining is the economic driver." He declares, "It would seem that Humala's policies are trying to address the concerns of the market". . .View full article
