Buenaventura Puts Acquisitions on Ice

In early September, Buenaventura CEO Roque Benavides said that the company was looking for acquisition opportunities. But as the global economy slides, the Peruvian miner is putting potential deals on hold. However, it is keeping its eyes open for targets to acquire in the future, vice president and CFO Carlos Galvez tells LatinFinance, adding that he expects the crunch to last more than a year. “The most important thing right now is to stay liquid and be careful about spending our cash. Cash gives us the opportunity to make the acquisitions we want, but we aren’t doing anything right now,” he adds. Galvez notes that the company is no longer considering appointing an investment adviser. “We will hire one when the time is right,” he says. Benavides had previously told reporters that the company was in talks with some potential advisers, who were in turn talking to potential targets for Buenaventura. Asked what countries Buenaventura is interested in expanding into, Galvez lists Argentina, Brazil and eventually Mexico. “Our investors have asked us to diversify geographically to reduce risk,” he says. As far as diversifying by product, Galvez says that if Buenaventura acquires outside Peru, it will stick to gold and silver projects. Within Peru, however, the company will consider precious or base metals.