Compania de Minas Buenaventura Announces Fourth Quarter 2008 Results

February 26, 2009

LIMA, Peru, Feb. 26 /PRNewswire-FirstCall/ — Compania de Minas
Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock
Exchange: BUE.LM), Peru’s largest publicly traded precious metals mining
company, announced today its results for the fourth quarter 2008. All figures
have been prepared according to Peruvian GAAP and are stated in U.S. dollars

Comments from the Chief Executive Officer:

Mr. Roque Benavides, Chief Executive Officer of Buenaventura, stated:

“As expected, due to the decline in commodity prices, Buenaventura
reported a net loss of US$6.1 million in 4Q08, or -US$0.02 per ADS.

“Operating income in the fourth quarter was US$16.9 million, 84% lower
than the figure reported in 4Q07, while EBITDA from Buenaventura’s direct
operations totaled US$29.6 million, 78% lower than the figure achieved in
4Q07. EBITDA including Yanacocha and Cerro Verde decreased 72% from
US$264.3 million in 4Q07 to US$73.0 million in 4Q08.

“These results are explained by silver and lower base metal prices, which
reduced not only the by-product contribution at the Company’s direct
operations, but also had an significant negative effect at Cerro Verde.”

Operating Revenue

During 4Q08, net sales were US$155.0 million, a 32% decrease when compared
to the US$226.5 million reported in 4Q07 mainly due to significant decreases
in the prices of silver and base metals, as well as lower volume of silver,
lead and zinc sold. On the other hand, gold volume sold, as well as the
realized price of gold remained stable.

Royalty income during 4Q08 totaled US$10.2 million, a 13% decrease when
compared to the US$11.7 million reported in 4Q07.

Net sales for the full year period were US$766.6 million, a 3% increase
compared to 2007 (US$747.0 million), while royalty income was US$48.8 million,
a 43% increase when compared to US$34.0 million in 2007.

Production and Operating Costs

Buenaventura’s equity production(1) during 4Q08 was 113,068 ounces of
gold, 4% higher than the 109,132 ounces reported in 4Q07; and 4,007,958 ounces
of silver, a 5% decrease when compared to the 4,198,027 ounces reported in

Equity production (1) for the accumulated twelve-month period was 422,732
ounces of gold and 15,530,981 ounces of silver. This represented an increase
of 5% in gold production (404,166 ounces in 2007), and a 5% increase in silver
production compared to 2007 (14,765,694 ounces).

At Orcopampa (100%), total gold production in 4Q08 was 78,459 ounces, a
13% increase when compared to the 69,146 ounces reported in 4Q07. This
production includes 8,304 gold ounces from old tailings treatment. Accumulated
gold production for the twelve-month period 2008 was 284,511 ounces, a 6%
increase when compared to 2007 (267,935 ounces).

Cash operating cost during 4Q08 was US$263/oz, 41% higher when compared to
4Q07 (US$186/oz). This was explained by:

1. A 30% increase in exploration and development (3,896m drifted in 4Q08
vs. 2,987m in 4Q07).

2. A 24% increase in contractor’s fees due to lower rock quality.

3. Higher consumption of mine support supplies and higher steel prices.

Cash operating costs for 2008 were US$244/oz, 49% higher than the
US$164/oz reported in 2007.

At Poracota, gold production in 4Q08 was 13,736 ounces, while the cash
operating cost was US$571/oz. Accumulated gold production for the twelve-month
period 2008 was 46,126 ounces, while the cash cost was US$623/oz.

Total royalty paid to the government at both Orcopampa and Poracota in
4Q08 was US$2.5 million.

At Uchucchacua (100%), total silver production during 4Q08 was 3,034,526
ounces, similar to 4Q07 production (2,986,989 oz). Zinc production decreased
11% (from 3,230 MT in 4Q07 to 2,861 MT in 4Q08), while lead production
decreased 11% (2,774 MT in 4Q08 vs. 3,104 MT in 4Q07).

Accumulated production for the twelve-month period 2008 was 11,417,199
ounces of silver, 16% higher than 2007 (9,873,771 ounces); 11,300 MT of zinc,
an increase of 44% when compared to 2007 (7,853 MT) and 11,101 MT of lead, 26%
higher than in 2007 (8,806 MT).

Cash operating cost in 4Q08 was US$7.25/oz, a 118% increase compared to
the US$3.32/oz in 4Q07. This was best explained by:

1. The lower lead and zinc by-product contribution due to lower production
and realized prices. This explained the US$4.5/oz increase considering that in
4Q08 this contribution was US$2.31/oz vs. US$6.81/oz in 4Q07. This was
partially offset by a decrease in treatment charges.

2. An increase in contractor expenses due to the 22% increase in tonnage
exploited and the 41% increase in diamond drilling works.

It is important to mention that in October 2008, the Company adopted the
following decisions in order to adjust its operations to new market

1. Ceased exploitation and treatment of the zinc, lead and low silver
grade ores.

2. Switched the new concentrating circuit (500 STD) to treat conventional

3. Ceased the cyanidation process.

As a consequence, silver cash operating costs decreased from US$7.92/oz in
October to US$6.98/oz in December.

Cash operating cost for 2008 was US$6.54/oz, 42% higher than the
US$4.62/oz reported in 2007.

Total royalty paid to the government at Uchucchacua in 4Q08 was
US$0.5 million.

At Antapite (100%), total production in 4Q08 was 9,130 ounces of gold, a
decrease of 51% compared to 4Q07 (18,627 ounces), mainly due to a 55% decrease
in gold grade from 0.43 Oz/ST to 0.19 Oz/ST and a lower recovery rate (from
96.4% in 4Q07 to 93.5% in 4Q08). Accumulated gold production was 43,319
ounces, a 40% decrease when compared to 2007 (72,171 oz).

Gold cash operating cost in 4Q08 was US$755/oz, an 88% increase when
compared to the US$401/oz in 4Q07. This increase was due to the lower gold
content due to lower grades, while tonnage exploited remained stable.

2008 cash operating costs were US$637/oz compared to US$383/oz in 2007.

Total royalty paid to the government at Antapite in 4Q08 was
US$0.1 million.

At Colquijirca (El Brocal 35.78%), total zinc production was 18,612 MT in
4Q08, a 24% decrease when compared to the 24,467 MT reported in 4Q07 due to a
23% decrease in the ore grade and a decrease in the recovery rate. Total
silver production during 4Q08 was 841,744 ounces, a 52% decrease when compared
to the 1,797,276 ounces reported in 4Q07 due to lower silver grade.

For the twelve-month period 2008, total zinc production was 81,630 MT, a
6% decrease when compared to the 87,151 MT reported in 2007. In the case of
silver, total production decreased 37% from 7,099,097 ounces in 2007 to
4,493,191 ounces in 2008.

At Marcapunta, copper production for 4Q08 was 2,090 MT and 7,496 MT for
the 2008 accumulated period.

Zinc cash operating cost for 4Q08 was US$626 per MT compared to US$143 per
MT in 4Q07, due a decrease in lead and silver contribution. Full year cash
operating cost was US$384/oz compared to US$126/MT in 4Q07.

Total royalty paid to the government at Colquijirca in 4Q08 was

Operating Expenses

General and administrative expenses for 4Q08 were a positive
US$5.7 million due to a US$15.3 million credit for the “Long-Term Compensation
provision.” Due to this factor, general and administrative expenses for the
twelve-month period 2008 totaled US$34.9 million, a 41% decrease when compared
to the US$59.2 million reported in 2007.

Exploration Costs in non-operational mining sites

Exploration costs in non-operational mining sites during 4Q08 were
US$14.1 million, a 7% decrease compared to the US$15.1 million reported in
4Q07. The main efforts were focused at the Marcapunta (US$2.2 million), Mallay
(US$1.5 million), Chucapaca (US$0.7 million), La Zanja (US$3.5 million) and El
Milagro (US$0.2 million) projects. Exploration costs at non-operating mining
sites during the twelve-month period 2008 were US$55.2 million, a 19% increase
when compared to 2007 (US$46.4 million).

Operating Income

Operating income in 4Q08 was US$16.9 million, an 84% decrease compared to
the US$105.7 million reported in 4Q07. This result was mainly explained by
lower sales due to a decrease in silver and base metal prices, as well as
higher costs at the Company’s direct operations. The provision for the
“Impairment for long term assets” also negatively impacted operating income by
US$18.6 million.

Accumulated operating income for 2008 was US$283.7 million, a 23% decrease
when compared to the US$366.6 million reported in 2007.

Share in Affiliated Companies

During 4Q08, Buenaventura’s income from non-consolidated affiliates was
US$21.4 million, a 71% decrease when compared to the US$74.3 million reported
in 4Q07. This decrease was explained by a lower contribution from Cerro Verde
(negative US$17.0 million in 4Q08 vs. a positive US$29.5 million in 4Q07) and
Yanacocha (US$38.4 million in 4Q08 vs. US$43.7 million in 4Q07). Accumulated
income from non-consolidated affiliates was US$340.9 million, an increase of
37% compared to the US$249.6 million reported in 2007.


At Yanacocha (43.65%), 4Q08 gold production was 419,329 ounces of gold, a
decrease of 11% when compared to 4Q07 (469,760 ounces). Gold production for
the twelve-month 2008 period was 1,810,338 ounces, an increase of 16% when
compared to the 1,563,670 ounces reported in 2007.

Costs applicable to sales (CAS) at Yanacocha during 4Q08 were US$356/oz,
17% higher than the figure reported in 4Q07 (US$305/oz). Accumulated CAS for
2008 was US$358/oz, in-line with the figure reported last year.

Net income at Yanacocha during 4Q08 was US$90.1 million, an 8% decrease
when compared to the 4Q07 figure (US$98.0 million). Accumulated net income for
2008 was US$476.5 million, 115% higher than 2007 (US$221.5 million).

During 4Q08, EBITDA totaled US$159.4 million, a decrease of 9% compared to
4Q07 (US$174.2 million). This decrease was due to the previously-mentioned
increase in costs applicable to sales (CAS), which offset the higher realized
gold prices, (US$783/oz in 4Q07 to US$804/oz in 4Q08). EBITDA for the
twelve-month period 2008 was US$849.2 million, an increase of 79% when
compared to the US$475.0 million reported in 2007.

CAPEX for 4Q08 was US$110.3 million and US$248.3 million for 2008.


At Cerro Verde (19.05%), 4Q08 copper production was 79,894 MT, a 4%
increase when compared to 4Q07 (76,534 MT). Copper production in 2008 totaled
315,014 MT, 17% higher than the figured reported in 2007 (269,537 MT).

During 4Q08, Cerro Verde reported a net loss of US$100.4 million compared
to net income of US$165.0 million reported in 4Q07, best explained by lower
sales revenue, which decreased from US$422.7 million in 4Q07 to
US$26.1 million in 4Q08 due to a US$247.7 million provision for the repricing
of sales at quotational period.

Accumulated 2008 net income was US$718.4 million, an 11% decrease compared
to 2007 (US$804.7 million), while sales totaled US$1,836.0 million, an
increase of 2% compared to 2007 (US$1,794.6 million).

CAPEX in 4Q08 totaled US$44.7 million and US$133.7 million for 2008.

Net Income

This quarter, Buenaventura’s net loss was US$6.1 million, representing a
negative US$0.02 per share, compared to US$120.1 million in net income during
4Q07 (US$0.47 per share). This was explained by the following:

1. The 84% decrease in operating income.

2. The 71% decrease in contribution from affiliates

Net income for the twelve-month period 2008 was US$153.3 million
(US$0.6 per share), a 44% decrease when compared to the US$274.8 million
(US$1.08 per share) reported in 2007.

Project Development


— The integration of the Carmen and Socorro mines at level 3990 concluded
in 4Q08 as scheduled.

In the Carmen mine, Master Shaft facilities at level 3920 were completed
in December 2008. The Ramp 760, currently at level 3980, will continue
deepening to reach level 3920 (760m) in 4Q09.

In the Socorro Mine, a pilot chimney connected level 4060 with level 3990
(70m) at the Luz Shaft in December 2008. The construction of ramp 626 reached
level 3960 and is expected to deepen until level 3920 (292m) by the end of

During 2008, total investment in both projects amounted US$4.8 million.


— As of December 2008, the deepening of the Nazareno Shaft reached level
3230 and will continue to reach level 3170 (60m) by the end of this year.

Accumulated investment during 2008 was US$4.4 million.

— The deepening of the Prometida Shaft reached level 3340 in December
. Work for 2009 includes:

    1. Deepening of the shaft to reach level 3290 (50m).
    2. Raising the shaft to communicate with surface (175m).

    Accumulated investment during 2008 was US$1.0 million.

Board Resolutions

At the Board of Director’s meeting, held February 26, 2009, the Board
passed the following resolution:

To call for the Annual Shareholders Meeting to be held March 27, 2009 to:

— Approve the financial statements as of December 31, 2008

— Approve the 2008 Annual Report

— Approve the appointment of Medina, Zaldivar, Paredes & Asociados
Sociedad Civil, Member of Ernst & Young Global, as external auditors for 2009.

— Approve a cash dividend of US$0.02 per share or ADS to be paid in U.S.

Company Description

Compania de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded,
precious metals company and a major holder of mining rights in Peru. The
Company is engaged in the mining, processing, development and exploration of
gold and silver and other metals via wholly owned mines as well as through its
participation in joint exploration projects.

Buenaventura currently operates several mines in Peru (Orcopampa,
Uchucchacua, Antapite, Julcani, Recuperada and Caraveli), has controlling
interest in two mining companies (CEDIMIN and El Brocal) as well as a minority
interest in several other mining companies in Peru. The Company owns 43.65% in
Minera Yanacocha S.R.L. (a partnership with Newmont Mining Corporation), an
important precious metal producer, and 19.05% in Sociedad Minera Cerro Verde,
an important Peruvian copper producer.

To request a printed version of the Company’s 2007 annual report on 20-F
form contact the persons indicated below.

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in
the U.S. Private Securities Litigation Reform Act of 1995) that involve risks
and uncertainties, including those concerning the Company’s, Yanacocha and
Cerro Verde’s costs and expenses, results of exploration, the continued
improving efficiency of operations, prevailing market prices of gold, silver,
copper and other metals mined, the success of joint ventures, estimates of
future explorations, development and production, subsidiaries’ plans for
capital expenditures, estimates of reserves and Peruvian political,
economical, social and legal developments. These forward-looking statements
reflect the Company’s view with respect to the Company and Yanacocha’s future
financial performance. Actual results could differ materially from those
projected in the forward-looking statements as a result of a variety of
factors discussed elsewhere in this Press Release.

1) Production includes 100% of operating units, 100% of CEDIMIN and
35.78% of El Brocal.

    Contacts in Lima:
    Roque Benavides / Carlos Galvez
    Compania de Minas Buenaventura S.A.A.
    Tel: (511) 419-2538 / 419-2540
    Investor Relations: Daniel Dominguez
    Tel: (511) 419-2536
    Email: ddominguez@buenaventura.com.pe

    Contacts in New York:
    Maria Barona / Peter Majeski
    i-advize Corporate Communications, Inc.
    Tel: (212) 406-3690
    Email: buenaventura@i-advize.com

SOURCE Compania de Minas Buenaventura S.A.A.

Source: newswire

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