...Negative Rating Outlook: Volcan Compania Minera S.A.A.'s (Volcan) Negative Outlook reflects unexpectedly weak financial performance and corresponding deterioration in credit metrics. This is a result of the company's increased product concentration on silver at a time of lower silver prices exacerbating higher average costs due to lower production at its Cerro de Pasco unit. These factors have driven Volcan's through-the-cycle net leverage ratios higher than previously projected by Fitch Ratings. Lower Margins to Improve: Fitch expects Volcan to exhibit lower production costs once its investment programs conclude in 2015 and as a result of continued cost reduction efforts, including its goal to become 100% energy self-sufficient by 2016. EBITDA margins declined to 24%¡25% during 2014 and 2013, compared with 40%¡50% historically. Deleveraging Expected: Volcan's through-the-cycle leverage ratio has increased higher than previously projected by Fitch. The company's LTM to Sept. 30, 2014, total...
