Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Shares of Caterpillar (NYSE:CAT), the world’s largest maker of mining and construction equipment, were falling almost 6% in early afternoon trade in New York after JPMorgan downgraded the stock Monday.
Analysts at JPMorgan lower CAT to underweight from neutral on concerns about the company’s direct exposure to oil and gas and indirect exposure to mining, U.S. construction and emerging markets.
They argued that as much as 15% of the machinery maker’s revenues are dependent on the oil and gas industry, as it supplies turbines to offshore rigs, as well as reciprocating engines and transmissions for on-site drilling.
The company also provides construction equipment that is used in infrastructure development, along with aftermarket and services.
Caterpillar’s Resources division has exposure to the Canada’s oil sands industry, Morgan Stanley says, while its business in the Middle East is also likely to be hurt by the more than 50% drop in crude prices since the end of June.
The downgrade came barely two weeks after chief executive officer Doug Oberhelman said he didn’t expect any significant impact on the firm’s businesses from depressed oil prices.
U.S. oil prices briefly dropped below $50 a barrel Monday for the first time since April 2009 as a consequence of persistent glut in the global market.
