UPDATE: Bank of America Downgrades Compania De Minas Buenaventura to Underperform, Lowers PO

In a report published Wednesday, Bank of America downgraded Compania De Minas Buenaventura SA

from Market Perform to Underperform, and reduced price target from $43 to $35, following negative update from Chucapaca's project. Bank of America noted, We downgrade Buenaventura to Underperform and revise our PO to US$35/sh (from US$43/sh). In our view, with the update on Chucapaca and still very little visibility on the development of Minas Conga, we are concerned with the company's production sustainability. On the other hand, we believe gold prices can reach US$2,400/oz by end of 2014 and we think, over time, BVN should still replace reserves, as it has been a successful exploration company, but visibility now is more limited. Compania De Minas Buenaventura closed at $34.10 on Tuesday.