Take a shot at the Peruvian miners

By
A A A

Now that markets have reacted to Ollanta Humala's election as president of Peru, it might be time for the brave to dip back into the country's battered miners. Humala's economic advisor has made the unusual move of reassuring investors that the incoming government will "respect" existing tax contracts with mining companies. The news has come as a profound relief for those who feared that the left-wing Humala would take a page from Hugo Chavez' playbook and tax Peruvian miners into oblivion -- or even nationalize their assets outright. However, while the new administration is not looking for any "handouts" from resource companies, added surcharges on copper and gold prices may be in store. At the moment, these "windfall" taxes may only end up in line with what other countries currently collect from their mining industries. In the meantime, go ahead and take a shot at the Peruvian miners here. Peru is a global giant where copper production is concerned and Southern Copper ( SCCO , quote ) and Buenaventura ( BVN , quote ) are the easiest ways for U.S. investors to play. And the broad Peruvian ETF EPU ( quote ) has already regained half of its dramatic 14% post-election losses: Between them, BVN and SCCO account for 30% of EPU's holdings.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

Referenced Stocks: BVN , EPU , SCCO

Emerging Money

Emerging Money

More from Emerging Money:

Related Videos

Stocks

Referenced

Most Active by Volume

61,354,178
  • $10.59 ▲ 13.26%
57,732,182
  • $16.27 ▲ 1.12%
51,991,548
  • $103.30 ▲ 0.78%
48,129,834
  • $20.65 ▲ 5.52%
41,623,916
  • $12.63 ▲ 8.13%
34,295,241
  • $76.68 ▲ 2.49%
31,519,079
  • $34.57 ▼ 1.00%
28,847,879
  • $3.64 ▲ 0.28%
As of 9/2/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com