Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gold miner Compania de Minas Buenaventura SAA (ADR) (NYSE: BVN) fell as much as 11.5% today after releasing earnings.
So what: First quarter revenue fell 20% from a year ago to $282 million and net income swung from a $102.7 million profit to a $16.1 million loss, or $0.06 per share. Analysts were expecting earnings of $0.25 per share on revenue of $327.8 million.
Now what: Everything is working against Buenaventura from production to precious metal prices. I don't see a reason to think prices will rise in the next year so even an increase in production from the Brocal expansion doesn't give me much incentive to buy. This is a stock I'll stay out of and think the $3.0 billion price tag is still high for the trends investors are facing in the precious metals market.
