US markets move higher, Oct. 28-Nov 1: Buenaventura, Rio Tinto, Southern Copper

The Dow Jones Industrial Average rose 1.44% to 27,347.36 and the S&P 500 Index increased 1.47% to 3,066.91. Spot gold gained 0.67% to US$1514.10 per ounce.

Compania de Minas Buenaventura climbed US$1.59 per share, or 11.27% to US$15.70. Peru’s largest publicly traded precious metals mining company reported third-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) from direct operations of US$55.8 million, compared with US$60.8 million in the third quarter of 2018. The decrease owed to lower production and volume sold at Buenaventura’s Orcopampa and La Zanja mines. Adjusted EBITDA including associated companies reached US$158.5 million, compared to US$150.8 million in the year-earlier quarter. Net income in the three months ended Sept. 30 reached US$4.5 million, compared to negative net income of US$10.3 million in the same period of 2018.

Rio Tinto’s shares rose US$1.42, or 2.7%, to US$53.98. At an investor seminar in London, CEO Jean-Sébastien Jacques forecast free cash flow this year at spot prices of US$10 billion. The mining executive also noted that capital expenses in 2019 are expected to be US$0.5 billion lower than the company’s previous guidance of US$5.5 billion, with US$0.5 billion deferred into 2020. Capex in 2020 is forecast to reach US$7 billion. In addition, Jacques noted that Shaft 2 has been built at its Oyu Tolgoi mine in Mongolia, with commissioning underway. In Australia, shipment and cash unit cost guidance for the company’s Pilbara iron ore operations are the same at 320 million to 330 million tonnes, at cash costs of US$14 to US$15 per tonne.

Shares of Southern Copper increased US$1.38, or 3.84%, to US$37.35. The company announced that Peru’s mining council ratified the construction permit for its Tia Maria copper protect. Work on the project had been halted since August due to opposition from the local community. In its 2018 annual report, the company said it expects Tia Maria will produce 120,000 tons (109,000 tonnes) of copper annually, employ 600 workers and indirectly provide jobs to another 4,200 people.