Atlantic International Partnership Headlines: 2 Emerging-Market Mining Stocks to Buy

http://altlantic-internationalpartnership.com/2011/05/atlantic-international-partnership-headlines-2-emerging-market-mining-stocks-to-buy/NEW YORK (InvestorPlace) — I was asked recently for a good reason why Southern Copper Corp.(SCCO_) was underperforming not just the price of copper, but also other huge copper mines like Freeport-McMoRan(FCX_).
The company-specific news flow certainly didn’t suggest that it should be massively trailing Freeport, especially since Southern had better reserves than Freeport. There were violent protests over a mine in Peru that resulted in a delay after the company had already invested serious money, but that wasn’t unusual. This happens in mining all the time, and it should have been mostly priced into the stock some time ago.
And then I saw the recent election results and I immediately understood — it was Peru itself.
The leftist candidate for Peru’s presidency, Ollanta Humala, won the biggest number of votes in the April 10 election and was leading the polls for the June 5 presidential runoff election. This is similar to what we saw in the 2006 election, as companies with huge exposure to Peru underperformed significantly.