Yes BVN being down 50%

    smaller golds

    Posted by victorh on 15th of May 2020 at 03:12 pm

    Yes BVN being down 50% since last year while gold has skyrocketed is about the worst under  performance  of any gold stock.  There are reasons for such a sharp decline as they eliminated their dividend, they reported a decline in gold production as Peru has extended their quarantine period which means no mining so any mining is limited to critical activities only.Also several brokerages downgraded the stock and Moodys downgraded BVN to B1 a negative outlook. In addition there has been talk that Peru may nationalize the mines. So as you can see fear in the equity markets has little to do with the bad performance of BVN . Sometimes fundamentals are very good reasons a stock can suddenly under perform.    


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