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FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

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Presentation on theme: "FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors."— Presentation transcript:

1 FEDERICO OVIEDO GENERAL MANAGER 2009 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.

2 BOLSA DE VALORES DE LIMA Bolsa de Valores de Lima (BVL) is the only stock exchange in Peru. Moreover, is the only one in the region that has a mining Venture Exchange. The BVL is regulated by the Comisión Nacional Supervisora de Empresas y Valores – CONASEV (Peruvian Securities Commission) The BVL is a public company and its shares are traded in the Peruvian equity market. Trading is made by an electronic system, which guarantees a transparent and efficient market. SEC recognizes BVL as designated offshore securities market under S regulations.

3 Local and foreign investors do not have to pay taxes on capital gains obtained in the BVL up to December 31, 2009. There are no taxes or restrictions to short term or long term capital flows in or out of the country. The exchange rate is market driven and there are no taxes or restrictions to buying/selling foreign currency in Peru. Peru has a very friendly market environment for business

4 Intitutional investment (million US$) Source: SBS, CONASEV To September 2008, investment funds had US$ 298 fund.

5 Peruvian Private Pension Fund´s (AFP´s) appetite for mining Investment made by the AFPs in the mining sector during 2008 reached US$ 2,167 million on December 2008, 13.9% of the total portfolio (US$ 15,587 million). Mutual Funds Share % in Stocks Source: CONASEV

6 Bond placement – Mining Companies (Millions US$) Southern Perú Copper Corp. - Suc. Perú Southern Copper Corp. Cía. Minera Atacocha Minera Barrick Misquichilca Soc. Minera Cerro Verde Minera Yanacocha

7 Capital increase through cash contribution Mining Companies (Thousands US$) Volcán Cía. Minera Cía. Minera Condestable Cía Minera San Ignacio de Morococha Soc. Minera el Brocal Soc. Minera Cerro Verde Minera Andina de Exploraciones La Cima 442,797501,122

8 Mining companies represent 50% of the BVL stock exchange capitalization. Market Capitalization by Industry

9 The IGBVL shows a high correlation with mining industry index IGBVL vs Industry Indexes (Base 30.12.1991=100)

10 50% of the companies that conform the IGBVL are in the mining industry. In the last 6 years, more than 20% of trading has corresponded to mining shares.

11 %Equity Traded in the BVL (dic 2008)Mining in % of equity operations in the BVL In 2008, the traded volume of mining shares accounted for 36% of total equity and mining industry accounted for 47% the number of operations in the BVL. Source: BVL

12 Listed companies by Industry (*) To december 2008 There are 257 listed companies in BVL, of which 13% belong to the mining industry.

13 BVL, opening new markets…

14 Only for mining companies in prospecting phase. Provides liquidity through stock sales. The Venture Exchange is a segment based in high international standards. Attractive investment option. Venture Exchange Launched by the BVL in 2003 Funding opportunity through capital markets. The only Venture Exchange segment in Latin America…

15 Peru, the unknown Latin- American jewel - Diario Cronista, Argentina Best Latin American company in New Markets class - Business News Americas, Famous Hall, Ten Mining Favorable economic conditions and a rapidly growing globalization process are together. A valid alternative to collect capital for foreign and local emergent investors, as level of the TSX-V o AIM market - Courtney Chamberlain, Chairman Minera IRL. Our goal is to become a bound reference for mining projects in the region, considering listed companies and investors interests.

16 Hemos escogido a la BVL por ser la de mayor rendimiento de Latinoamérica, por que mas del 60 por ciento de las empresas que cotizan en ella son empresas orientadas a los recursos naturales, y porque además Perú es un país con tradición minera y porque sus inversionistas son sofisticados, poseen un alto grado de conocimiento de la industria. Cesar López, Presidente de Apoquindo Minerals. Nowadays, Peru is more attractive for mining investors. We have chosen the BVL for its high Latin American performance, because more than 60% of their companies belongs to primary sector, and because of its mining tradition and sophisticated investors who have a high degree of industry knowledge. Cesar López, President of Apoquindo Minerals. Cesar López, President of Apoquindo Minerals.

17 Today, more than 269 mining projects are being developed in Peru, which shows a great opportunity of mining industry. Mining companies' share of market capitalization accounts for US$ 30,307 million to December 2008. For the same period Junior mining companies' share of market capitalization accounts for US$ 242 million. Up to 2008 closing, 8 mining companies are listed in the BVL. During 2008, juniors Minera IRL and International Consolidated Minerals were incorporated in the Regular Exchange segment.

18 There are 8 listed junior mining companies: Vena Resource Candente Resource Panoro Minerals Nortsemont Mining Inca Pacific Alturas Minerals Corp Fortuna Silver Mines Inc. Apoquindo Minerals Inc. Number of companies and Junior´s Traded Volume

19 The most important Junior mining projects of listed companies…

20 We have 3 Junior mining projects overseas…

21 Listing in the BVL represents for these companies additional benefits: Lower costs than other X´s. Double listing help to increase the companies liquidity in their main market. Contribute mining companies to be transparent, therefore, derives in a better image for investors. The high performance provides them more funding at lower costs. Listing paper work: Short and simple.

22 Peru is clearly headed towards sustained economic growth, and has a great mining potential. Peru is the first mining country in Latin America. The BVL is emerging as a natural market for junior mining companies There are more than 269 mining projects in Peru and we only have 8 junior mining companies listed in the BVL. The Venture Exchange provides a major opportunity for junior mining companies. Moreover, there is a huge appetite among investors for this kind of companies. We are the only stock exchange in the Latin American region that has accurately developed its Venture Exchange segment based on the experience and standards of the most important international markets.

23 Contacts: Mariella Córdova Vargas: mcordova@bvl.com.pemcordova@bvl.com.pe Phone Number: (511) 619 3333 Ext. 2414. María del Pilar Falcón: mfalcon@bvl.com.pemfalcon@bvl.com.pe Phone Number: (511) 619 3333 Ext. 2226 An exceptional opportunity for Juniors to obtain financing from Peruvian and International investors.


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