PS: In its 2013 annual report, Buenaventura filed that the holding company that owned Chucapaca (51% GFI/ 49% BVN at the time) had an asset value of U$139.44m and after accounting adjustments, the 49% owned by BVN was carried by the company at U$39.231m. In other words, at least the BVN CFO will be happy about this deal. Looks like a distressed sale decision by GFI.
Chucapaca, then and now
How times change in the gold world.
Back on May 11th 2010, when the Chucapaca gold discovery in South Peru was announced to the world, 49% owner Buenaventura managed to get a U$2.10 pop on its share price from the razzle and the dazzle. It was already a U$32 stock, by the ned of the day it was nearly at $35 (it managed that number the next day). As BVN was running 254m shares at the time, it’s fair to say that its 49% ownership of Chucapaca added half a billion dollars to the company market cap. Or if you like, the 5.6m oz AuEq resource at that time (which is now 6.1m oz) was valued by the neverwrong Mister Market at over a billion dollars.
Today, BVN bought out the 51% held by its JV partner Gold Fields (GFI) for $81m, plus a 1.5% NSR.