FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from...

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FEDERICO OVIEDO GENERAL MANAGER 2009 “An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.”

Transcript of FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from...

Page 1: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

FEDERICO OVIEDOGENERAL MANAGER

2009

“An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.”

Page 2: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

BOLSA DE VALORES DE LIMA• Bolsa de Valores de Lima (BVL) is the only stock exchange in Peru. Moreover, is the only one in the region that has a mining Venture Exchange.

• The BVL is regulated by the Comisión Nacional Supervisora de Empresas y Valores – CONASEV (Peruvian Securities Commission)

• The BVL is a public company and its shares are traded in the Peruvian equity market.

•Trading is made by an electronic system, which guarantees a transparent and efficient market.

• SEC recognizes BVL as designated offshore securities market under “S” regulations.

Page 3: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

•Local and foreign investors do not have to pay taxes on capital gains obtained in the BVL up to December 31, 2009.

• There are no taxes or restrictions to short term or long term capital flows in or out of the country.

• The exchange rate is market driven and there are no taxes or restrictions to buying/selling foreign currency in Peru.

Peru has a very friendly market environment for business

Page 4: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Intitutional investment(million US$)

Source: SBS, CONASEV

To September 2008, investment funds had US$ 298 fund.

Page 5: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Peruvian Private Pension Fund´s (AFP´s) appetite for mining

Investment made by the AFPs in the mining sector during 2008 reached US$ 2,167 million on December 2008, 13.9% of the total portfolio (US$ 15,587 million).

Mutual Funds Share % in Stocks

Source: CONASEV

Page 6: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Bond placement – Mining Companies (Millions US$)

•Southern Perú Copper Corp. - Suc. Perú

•Southern Copper Corp.

•Cía. Minera Atacocha

•Minera Barrick Misquichilca

•Soc. Minera Cerro Verde

•Minera Yanacocha

Page 7: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Capital increase through cash contribution Mining Companies

(Thousands US$)

•Volcán Cía. Minera

•Cía. Minera Condestable

•Cía Minera San Ignacio de Morococha

•Soc. Minera el Brocal

•Soc. Minera Cerro Verde

•Minera Andina de Exploraciones

• La Cima

442,797 501,122

Page 8: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Mining companies represent 50% of the BVL stock exchange capitalization.

Market Capitalization by Industry

Page 9: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

The IGBVL shows a high correlation with mining industry index

IGBVL vs Industry Indexes(Base 30.12.1991=100)

Page 10: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

50% of the companies that conform the IGBVL are in the mining industry.

In the last 6 years, more than 20% of trading has corresponded to mining shares.

Page 11: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

%Equity Traded in the BVL (dic 2008) Mining in % of equity operations in the BVL

In 2008, the traded volume of mining shares accounted for 36% of total equity and mining industry accounted for 47% the number of operations in the BVL.

Source: BVL

Page 12: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Listed companies by Industry

(*) To december 2008

There are 257 listed companies in BVL, of which 13% belong to the mining industry.

Page 13: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

BVL, opening new markets…

Page 14: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Only for mining companies in prospecting phase.

Provides liquidity through stock sales.

The Venture Exchange is a segment based in high international standards.

Attractive investment option.

Venture Exchange

Launched by the BVL

in 2003

Funding opportunity through capital markets.

The only Venture Exchange segment in Latin America…The only Venture Exchange segment in Latin America…

Page 15: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

“Peru, the unknown Latin-American jewel”- Diario Cronista, Argentina

“Best Latin American company in New Markets class”- Business News Americas, Famous Hall, Ten Mining

Favorable economic conditions and a rapidly growing globalization process are together.

“A valid alternative to collect capital for foreign and local emergent investors, as level of the TSX-V o AIM market”- Courtney Chamberlain, Chairman Minera IRL .

Our goal is to become a bound reference for mining projects in the region, considering listed companies’ and investors’ interests.

Page 16: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

“Hemos escogido a la BVL por ser la de mayor rendimiento de Latinoamérica, por que mas del 60 por ciento de las empresas que cotizan en ella son empresas orientadas a los recursos naturales, y porque además Perú es un país con tradición minera y porque sus inversionistas son sofisticados, poseen un alto grado de conocimiento de la industria”.

Cesar López, Presidente de Apoquindo Minerals.

Nowadays, Peru is more attractive for mining investors.

““We have chosen the BVL for its high Latin American performance, because We have chosen the BVL for its high Latin American performance, because more than 60% of their companies belongs to primary sector, and because more than 60% of their companies belongs to primary sector, and because of its mining tradition and sophisticated investors who have a high degree of its mining tradition and sophisticated investors who have a high degree of industry knowledge.of industry knowledge.

Cesar López, President of Apoquindo MineralsCesar López, President of Apoquindo Minerals..

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Today, more than 269 mining projects are being developed in Peru, which shows a great opportunity of mining industry.

Mining companies' share of market capitalization accounts for US$ 30,307 million to December 2008. For the same period Junior mining companies' share of market capitalization accounts for US$ 242 million.

Up to 2008 closing, 8 mining companies are listed in the BVL. During 2008, juniors Minera IRL and International Consolidated Minerals were incorporated in the Regular Exchange segment.

Page 18: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

There are 8 listed junior mining companies:

Vena Resource

Candente Resource

Panoro Minerals

Nortsemont Mining

Inca Pacific

Alturas Minerals Corp

Fortuna Silver Mines Inc.

Apoquindo Minerals Inc.

Number of companies and Junior´s Traded Volume

Page 19: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

The most important Junior mining projects of listed companies…

Page 20: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

We have 3 Junior mining projects overseas…

Page 21: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Listing in the BVL represents for these companies additional benefits:

Lower costs than other X´s.

Double listing help to increase the companies liquidity in their main market.

Contribute mining companies to be transparent, therefore, derives in a better image for investors.

The high performance provides them more funding at lower costs.

Listing paper work: Short and simple.

Page 22: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Peru is clearly headed towards sustained economic growth, and has a great mining potential.

Peru is the first mining country in Latin America.

The BVL is emerging as a natural market for junior mining companies

There are more than 269 mining projects in Peru and we only have 8 junior mining companies listed in the BVL.

The Venture Exchange provides a major opportunity for junior mining companies. Moreover, there is a huge appetite among investors for this kind of companies.

We are the only stock exchange in the Latin American region that has accurately developed its Venture Exchange segment based on the experience and standards of the most important international markets.

Page 23: FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

Contacts:

Mariella Córdova Vargas: [email protected]

Phone Number: (511) 619 3333 Ext. 2414.

María del Pilar Falcón: [email protected]

Phone Number: (511) 619 3333 Ext. 2226

“An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.”