peru election results - comments, page-2

My thoughts -
Iam looking through this short term noise and it is worth noting a couple of points ?
1. Humala only won by a very short margin and in our opinion will not have the balance of power to bring any serious legislation changes to the country,
2. Mining is the single largest contributor by a long way to the economy in Peru and we do not believe Humala will seriously jeopardise this,
3. MNC have other worthy projects in Chilie that are each progressing well,
4. MNC will not be into production in Peru for a minimum of 3 -4 years (that?s if they still own the project by then) and the real question is, will Humala still be in power?
5. This does not change the day to day operations of MNC, they are cashed up and focused on proving up a substantial copper resource,
6. If this election result was serious we would be seeing a larger impact to BHP on today?s market as they both have extensive operations in the region that are in production,
7. The copper price will be the direct beneficiary / increased tightening of supply as a result of any action by Humala,
8. The market is reacting to the fear of the new president changing legislation,
9. The company is well advanced in their drill program with results expected to the market shortly, they also raised $30mil to institutions globally at $0.38 (only a month ago), professional money would not take the risk of committing such funds if they believed the new President posed any serious threat.
10. Finally it does not change the size or the value of what MNC have here, the only thing that changes if not when Humala successfully implements a MRRT is the profits this project would generate!

I do not like the prices here any more than you do, however Iam looking through the short term noise / volatility in the share price and seeing opportunity and the bigger picture.

I have been buying for most of the morning.