Mining companies across Latin America exhibited improved credit ratios, with median net leverage falling to 1.3x in 2016 compared with 2.9x in 2015. An improved pricing environment, reductions in cash costs and completions of capital investments resulted in improved cash flow generation. Fitch Ratings expects miners to use higher cash flows to improve liquidity and/or reduce gross debt levels. Maintaining adequate levels of debt in order to exhibit sustainable levels of leverage is crucial to each company’s rating.

Executive Summary

CAP S.A.

Compania de Minas Buenaventura S.A.A.

Compania Minera Milpo S.A.A.

Corporacion Nacional del Cobre de Chile (Codelco)

Gerdau S.A.

Hochschild Mining Plc

Minsur S.A.

Southern Copper Corporation (SCC)

Vale S.A.

VM Holding S.A. (VMH)

Volcan Compania Minera S.A.A.