Andina

Moody's: Peruvian mining companies enjoy better credit ratings

12:43 | Lima, Jul. 9.

Peruvian mining enterprises have better credit ratings to obtain financing in local and foreign markets since they are among the world's most competitive firms, Moody's Investors Service Vice-President Jaime Reusche affirmed Monday.

"In Peru, mining companies, in general, have very low production prices. Their cash-cost is pretty low, which makes them quite competitive. They are among the most competitive firms in the world," he told Andina news agency.

In this context, Reusche also pointed out mining companies register better financial results, which will lead to increased fiscal revenue on the part of the State.

"They have healthy margins and pretty good profit levels that will contribute a lot to the government's revenues," he added.

According to Superintendence of Securities Market's (SMV) financial reports, Southern Peru Copper Corporation recorded a net income of US$532.2 million in 2017.

Similarly, San Ignacio de Morococha mining company reported a net profit of US$77.3 million last year.

Other enterprises listed on the Lima Stock Exchange (BVL) also showed positive results in the analyzed period.

It must be noted Peru is the world's second-largest producer of copper, zinc, and silver, according to a report titled "Mineral Commodity Summaries 2018," issued by the United States Geological Survey (USGS).

Said study also indicated the Inca country is the top producer of gold, zinc, and lead in Latin America. Plus, Peru hosts the largest silver reserves in the world.

(END) MDV/MDV/JAA/MVB

Published: 7/9/2018