{kanada_flagge} In the final leg of the presidential elections in Peru, as the recount of some 300,000 votes progresses towards a photo finish, the victory of the left-wing candidate Pedro Castillo is now a real prospect. Indeed, Castillo has already proclaimed himself the winner of the election, prompting the daily newspaper “Die Welt”, among others, to publish the headline: “The comeback of Marxism”. Given such a horror scenario, it is little wonder that the share price of mining companies and explorers with projects in the country have come under pressure.
From a distance, it is difficult to judge what the election really means for Peru and its mining sector. We do not presume to do so here. After all, entrepreneurs with on-the-ground experience confirm time and again that presidential elections in Peru should not be interpreted as binary, and that in the end everything is not eaten as hot as it is cooked. How much of this is wishful thinking remains to be seen.
What we do know for sure is that the Department of Pasco and Cerro de Pasco town, overlooking the emblematic open pit mine, voted over 75% for Castillo and thus against the current status quo. Any incumbent government will need to respond to this vote, which could conversely mean fortuitous tailwinds for the alternative: Canadian junior Cerro de Pasco (TSXV: CDPR; FRA: N8HP) – who bring a comprehensive solution to clean up the legacy of more than a hundred years of mining operations. The remediation plan proposed by CDPR aims to do justice to the local economy, the environment and the health of the local people all in one go, ending a painful recent history of nationalization and subsequent re-privatization characterized by improvisation, opportunism and neglect.
We’ve gathered 10 reasons to buy Cerro de Pasco Resources (TSXV: CDPR; FRA: N8HP) right now:
1) Large surface resources – no need for exploration, no exploration risk, only development process.
2) Good progress on permitting; this year CDPR should deliver drill results from Quilacocha tailings pond. See the recent report from the weekly newspaper “Die Zeit”.
3) Neither presidential candidate will stop the cleanup of contaminated sites launched by the state-owned company AMSAC. However, the new president is more than likely to support the reprocessing of mineral waste if it promises massive social and environmental benefits.
4) CDPR has won the full support of the local community for its tailings reprocessing project.
5) CDPR has a world-class team that is actively developing synergies with other mining operations in the area.
6) The CDPR team has track record and an excellent reputation for innovative solutions.
7) CDPR has numerous opportunities to process its material in the area using existing, underutilized plant and equipment.
8) Pending drilling permits will enable CDPR to demonstrate that higher grade material exists within the Quilachoca tailings basin. To date, only a historical estimate of a portion of the tailings basin is available.
9) The likelihood of making a deal with Glencore/Volcan tends to increase.
10) The Castillo effect should not be overstated. He too needs majorities in Congress. Peru needs investment in mining for the economy to flourish.
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According to §34b WpHG and according to paragraph 48f paragraph 5 BörseG (Austria) we would like to point out that principals, partners, authors and employees of GOLDINVEST Consulting GmbH hold or may hold shares of Cerro de Pasco Resources and therefore a possible conflict of interest exists. We also cannot exclude that other stock letters, media or research firms discuss the stocks we recommend during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between a third party that is in the camp of Cerro de Pasco Resources and GOLDINVEST Consulting GmbH, which means that there is a conflict of interest, especially since this third party remunerates GOLDINVEST Consulting GmbH for reporting on Cerro de Pasco Resources. This third party may also hold, sell or buy shares of the issuer and would thus benefit from an increase in the price of the shares of Cerro de Pasco Resources. This is another clear conflict of interest.
