Efficiency, Effectiveness and Value Creation of Mining Companies in Peru

Abstract

Purpose: The objective of this research was to test the efficiency, effectiveness and effectiveness are directly and highly related to the creation of added economic value in the mining sector of Peru, 1999-2021. Method: The finances of 15 mining companies have been analyzed. There are 345 records in 23 years. 357 accounts and 31 ratios have been analyzed, achieving 120 correlation coefficients, two econometric models with data from the Securities Market Superintendence. Results and conclusion: The results showed correlation between economic added value and efficiency (93%), with effectiveness (69.1%) and with effectiveness (91.3%). With turnover of total assets (0.939), with net profit (0.807), profitability of assets (0.915) and profitability on equity (0.911). It is concluded that the mining sector consolidated its assets, assets and has created value for shareholders. Research implications: The mining sector has created value of $6,181 million in the 23 years. the sector’s value creation requires that the returns on assets and equity are equal to or above two digits. Originality/value: Good mining management practices achieve economic, social and environmental balance in southern Peru