Peru’s President’s PrudencePeru’s President’s Prudence
Sulliden’s Shahuindo Project is Safe For Now
By Ted Niles
Investors quailed when economic nationalist Ollanta Humalawas elected President of Peru June 5. Peru ranks first in the world forproduction of silver—second for copper and zinc, sixth for gold—and Peruvianmining stocks were hit hard June 6. For example, the country’s largest preciousmetals producer, Compania de Minas Buenaventura, plunged 11.7%. However,Humala’s recent cabinet appointments of moderates, and his decision to retaineconomist Julio Velarde as Central Bank President would appear to have turnedthe tide of world opinion.
“Our stock price has been negatively affected by a lot ofuncertainty with the new President,” says Scott Moore about Sulliden GoldCorporation’s flagship Shahuindo Gold and Silver Project. But, the VP ofCorporate Development adds, “At the end of the day, the pro-leftist candidatehas to fund the social agenda, and that means they have to have good economicdrivers. In Peru mining is the economic driver.” He declares, “It would seemthat Humala’s policies are trying to address the concerns of the market.”