Bloomberg News

Panoro 2-Day Gain Biggest Since 2010 on Sale Hopes

May 28, 2012

Panoro Minerals Ltd. (PML) rallied the most over two days in almost a year in Lima as copper gained and investors speculated the Canadian company will take on a partner to develop properties in Peru.

Vancouver-based Panoro rose 7.5 percent to 72 cents today in Lima. The company gained 22 percent over the past two days, the most on a closing basis since June 8, 2011. The stock has doubled this year, the biggest rally among companies in Peru’s benchmark IGBVL (IGBVL) equity index, which rose 0.5 percent today. Copper increased 0.6 percent in London.

“Investors expect the company will sell a stake,” said Jose Luis Bustamante, head of trading at Cartisa SAB in Lima. “Quite a few companies have Panoro in their sights.”

Panoro may sell one of its Peruvian copper and gold properties this year, country manager Christian Pilon said in a Nov. 16 interview.

“Panoro’s projects are of permanent interest among miners,” Pilon said today in e-mailed comments. “It’s difficult to control speculation.”

Vancouver-based Panoro, which raised $6.5 million from a private placement last year, has discovered 90 million metric tons of 0.77 percent copper resources at its Cotabambas deposit and 154 million metric tons at its Antilla property with ore grades of 0.47 percent copper.

The company plans to drill another 20,000 meters at Cotabambas to expand ore reserves.

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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