Buenaventura shares have seen an increase of more than 50% since Antofagasta revealed its 19% stake, consolidating itself as the largest shareholder after the founders of the Peruvian mining company.
Cia de Minas Buenaventura SAA (BVN) has experienced significant changes in its share structure following the acquisition of 18.9% of its shares by Antofagasta Plc, the Chilean company controlled by the richest family in Chile.
Despite more than a month having passed since this operation, Antofagasta’s entry into Buenaventura continues to be perceived as a strategic collaboration to boost growth in the copper sector.
Comment: A little over a month ago, Compañía de Minas Buenaventura SAA, a leading company in precious and base metals in Peru, announced that Antofagasta Plc, the Chilean company controlled by the richest family in Chile, acquired 18.9% of its shares for $463 million dollars. This operation stood out as part of Antofagasta’s geographic diversification strategy.
Since then, Buenaventura and Antofagasta have been in talks to establish a framework for collaboration on strategic, operational and financial matters. This dialogue includes the possibility of Antofagasta having representation on the Buenaventura board of directors. Recently, the board of shareholders of Buenaventura convened a meeting to consider a partial reform of the bylaws that facilitates the inclusion of two directors proposed by Antofagasta.
Although more than a month has passed since the acquisition, Antofagasta’s entry into Buenaventura continues to be seen as an alliance to boost growth plans in the copper sector, rather than as a threat to control of the Peruvian company. Buenaventura shares have seen an increase of more than 50% since Antofagasta revealed its 19% stake, consolidating itself as the largest shareholder after the founders of the Peruvian mining company.
According to fundamental indicators, Compañía de Minas Buenaventura SAA (BVN) has a strong position in the market. Although its current price-to-earnings (P/E) ratio is 39.69, indicating a relatively high share value compared to its earnings per share (EPS) of 0.38, a significant increase in EPS is expected in the coming year, which which could be interpreted as a positive signal for investors.
Looking at the charts, although the stock has experienced positive growth since December taking the price to overbought levels, the consolidation above the moving averages and the proximity to the high zone suggests continuity in favor of buyers. The next target could be projected towards the resistance of 16.75, followed by the psychological zone of 17.71. On the other hand, sellers could consider profit-taking as the divergence signals evident in the MACD persist. In case a bearish move develops, target levels were estimated around the 12.74 support.
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– 2024-05-10 15:04:35
