I wouldn’t be too concerned at this point as it’s a thin margin for an election result, it will likely result in another election shortly after. Either way the Peru economy needs foreign mining companies that bring capital and expertise that a country wouldn’t want lose.
Nationalising resource projects normally results in distortion and inefficiencies. Mines require constant capital to maintain operations particularly when they dig deeper or access more complex ores. It’s more effective to let private industry run them knowing that capital is invested only when it makes sense. Not to mention the wages and flow on of these investments into other parts of an economy.
ICG Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
