TORONTO, Aug. 19 /CNW/ - Investment Dealer Raymond James has released an
extensive report on the Latin America mining landscape which provides
important insights on mining investment opportunities in the region.
Entitled, "Mining in Latin America - Navigating the Latin America
Landscape" the 165-page report is a detailed analysis of seven countries in
the region and their relative attractiveness for mining investment, as well as
investment cases for companies in the Raymond James research coverage universe
that have exposure to the region.
"Latin America remains integral to the mining industry's ability to meet
the growing global demand for base metals and minerals," says Tom Meyer,
Raymond James Analyst. "Our report is meant to provide investors with an
overview of various mining jurisdictions in the region, as well as our best
investment ideas. It underscores the fact that Latin America continues to be
an important destination for mining investment."
In ranking the various countries in the report, six different criteria
were used: mining taxation, regulatory and tax stability, political stability,
infrastructure, power availability and labour climate.
On a scale of one to 10, every country except Ecuador ranked above five.
Mexico ranked number one with a score of 8.3, followed by Brazil, Argentina
and Chile (tied), Peru, Colombia and Ecuador. And, on a long term basis, the
report names Mexico, Brazil and Chile as the top three Latin American
countries for mining investment.
"All of these countries have certain attributes that make them favorable
locations for mining investment," says Meyer. "But we believe that even more
favorable opportunities would exist if these countries improved any or all of
the criteria used in the rankings. Modest improvements would create an even
stronger mining sector in Latin America."
The report points out that beyond mineral wealth, investment decisions
are based on a myriad of other factors including environmental considerations,
availability of supporting infrastructure, the political atmosphere, and the
status of the taxation regime, royalty structure and the legal standing on
"Mining operations tend to have relatively long lives, so making an
investment in a mine requires a strong feeling of confidence in the stability
of the country you are operating in," explains Meyer. "It takes a long time to
get a mine up and running to ensure it will ultimately produce positive
returns for the mining firm and investors."
With these factors in mind, the report provides extensive insights and
recommendations on 17 mid-cap growth firms from the Raymond James coverage
universe. They include:
- Amerigo Resources (ARG)
- Antofagasta (ANTO)
- Aura Minerals (ORA)
- Candente (DNT)
- Centenario (CCT)
- Chariot Resources (CHD)
- Coro Mining (COP)
- Corriente (CTQ)
- Eldorado Gold (EGO)
- Frontera Copper (FCC)
- Global Copper (GLQ)
- Greystar Resources (GSL)
- Inca Pacific (IPR)
- International Royalty Corp. (IRC)
- MAG Silver (MAG)
- Pan American Silver (PAAS)
- Quadra Mining (QUA)
- Silver Wheaton (SLW)
Those singled out as having the best upside potential include, Frontera
Copper Corp., Pan American Silver Corp., and Quadra mining.
Raymond James is a leading global independent full service investment
dealer offering a full range of professional investments and products
including: private client service, financial and estate planning, portfolio
management, insurance, equity research, investment banking and institutional
sales and trading. Through its network of approximately 4,800 Financial
Advisors in Canada, the United States and key international centres, Raymond
James serves more than 1.3 million individual investors and families and
manages more than $220 billion in client assets under administration. For more
information about Raymond James, please visit our web site at:
For further information:
For further information: Peter Kahnert, Senior Vice President, Corporate
Communications & Marketing, Raymond James Ltd., Tel: (416) 777-7063,
firstname.lastname@example.org; Raymond James Ltd., 5300-40 King Street West,
Scotia Plaza, Toronto, Ontario, M5H 3Y2, (416) 777-7000 Phone, (416) 777-7020
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