Bloomberg News

Rio Alto Gains Most in Three Months on Gold: Lima Mover

March 26, 2012

Rio Alto Mining Ltd. (RIO), a gold producer with a mine in Peru, rose the most in almost three months in Lima trading as gold futures advanced in New York.

The Calgary-based company jumped 7.1 percent to $4.55 at the close of trade in Lima, the most since Jan. 4, after earlier gaining as much as 8.2 percent.

Rio Alto extended a rally this year to 45 percent as gold for April delivery rose as much as 1.9 percent in New York after Federal Reserve Chairman Ben S. Bernanke said accommodative monetary policy is still needed to reduce unemployment.

“Gold stocks are being driven by the recovery of the price of gold and Bernanke’s comments,” said Eduardo Fernandini, a trader at Lima-based Kallpa Securities SAB. “There’s a discount between gold prices and producers, so Peruvian gold shares are still cheap.”

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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