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Lima-based investment advisers BBV Continental continues to take a shine to Peruvian precious metals-focused Buenaventura (NYSE: BVN).
The company enjoyed a 48.3% increase in profits to US$18.5mn in 1Q01, said Continental, despite low metal prices and reduced income from its 43.65% stake in Latin America's largest gold mine, Yanacocha in northern Peru's Cajamarca department.
Higher output from its own flagship mines, Orcopampa and Uchuchaccua, were the main reason behind the good showing.
Continental reiterates its "buy" recommendation for Buenaventura as those mines' prospects remain good, Antapite gold mine has started up and Yanacocha's costs are expected to fall this year.
"We believe there is much more upside than downside potential for the price of gold, given current global macro-economic conditions, which may favor a recovery in the yellow metal during the second half," it added.