Welcome, my name is Ricardo Pino.
I am a Professor of Operations Management
at Centrum Graduate Business School at Lima, Peru.
Today, we're going to talk about the Fortune Mine Company.
Fortune Mine Company was founded in 1953 by Alberto Benavides,
a Peruvian engineer, businessman, and politician.
During its first 25 years,
Fortune focused on the exploration of silver mines and several
of its most important projects in Peru were built within this timeframe.
Their first success, the acquisition of the Julcani mine in
1953 was followed in 1962 by the exploration of the Orcopampa mine.
In 1971, the company started listing on the Lima Stock Exchange.
Since the late 80's,
Fortune focused on increasing production and productivity.
The expansion of mineral reserves was accomplished through
acquisitions and in exploration programs.
As part of this strategy,
Fortune acquired equity in Yanacocha mine in 1992.
The major goldmine in Peru and main explorations that led them to open more gold mines.
This turned Fortune from being primarily
a silver mining firm into a producer of many different precious metal,
principally gold and silver.
Fortune composition and corporate structure was as follows,
fully owned mines in that the company has full equity control.
Also, controlled mines in which the company does
not have fully property but the majority of it.
Finally, participation stake where Fortune does not hold
majority participation and has no control over
the operation of mines as Yanacocha and Cerro Verde.
The Board of Directors of Fortune has 13 members led by Roque Benavides,
the son of the founder,
also filled the role of executive president for the company.
Despite its growth, Fortune remains as a family-owned company.
Fortune is the largest Peruvian publicly trade precious metal mining company