Compania de Minas Buenaventura Announces Third Quarter 2009 Results
Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock
company, announced today its results for the third quarter 2009. All figures
have been prepared according to Peruvian GAAP and are stated in U.S. dollars
Comments from the Chief Executive Officer:
“This quarter net income was
reported in 3Q08.
“EBITDA from Buenaventura’s Direct Operations was
increase of 12% when compared to the figure reported in 3Q08 (
“Higher gold sales revenues, in addition to the 67% increase in
contributions from Yanacocha and Cerro Verde, positively impacted
During 3Q09, net sales were
realized price of gold despite a decrease in the volume of lead, silver and
Royalty income during 3Q09 totaled
compared to the
Net sales for the nine month period 2009 were
decrease compared to the same period of 2008 (
Buenaventura’s equity production(1) during 3Q09 was 108,736 ounces of
gold, 2% higher than the 106,161 ounces reported in 3Q08. Silver production
during 3Q09 was 3,518,740 ounces, a 4% decrease when compared to the
3,682,022 ounces reported in 3Q08.
Equity production(1) for the nine month period 2009 was 310,905 ounces of
gold and 11,221,621 ounces of silver. This represented stable gold production
(308,683 ounces in 2008), and a 3% decrease in silver production compared to
2008 (11,557,431 ounces).
Orcopampa’s (100%) total gold production was 82,569 ounces, 13% higher
than 3Q08 production (73,342 ounces). Production from the Chipmo mine in 3Q09
was 73,849 ounces, 5% higher than the 70,197 ounces reported in 3Q08, which
was complemented by the old tailings treatment that produced 8,720 gold
ounces. Accumulated total gold production for the nine-month period 2009 was
227,479 ounces, an 11% increase when compared to 2008 (205,557 ounces).
Cash operating cost in 3Q09 was
1. A 30% increase in contractor costs due to a 51% increase in diamond
drilling, and an 8% rise in tonnage exploited.
2. An increase in labor costs due to the salary adjustments negotiated
with unions in July, 2009.
At Poracota, gold production in 3Q09 was 13,366 ounces, an increase of 18%
when compared to 3Q08 (11,297 ounces), while the cash operating cost increased
treated, which offset a 16% decline in ore grade. Accumulated gold production
for the nine-month period 2009 was 38,043 ounces, 17% higher than the figure
reported in 3Q08 (32,389 ounces).
Total royalties paid to the government at both Orcopampa and Poracota in
At Uchucchacua (100%), total silver production during 3Q09 was 5% lower
than 3Q08 (2,457,477 ounces and 2,583,873 ounces, respectively) due to a 19%
decline in ore treated and 12% lower silver grade. Zinc production decreased
40% (from 1,
decreased 39% (1,
for the nine-month period 2009 was 8,058,432 ounces of silver, 4% lower than
in 2008 (8,382,673 ounces); 6,
to 2008 (8,
Cash operating cost in 3Q09 was
1. The lower by-product contribution due to a decrease in zinc and lead
2. A 36% rise in contractor expenses explained by a 9% increase in tonnage
exploited and a 23% increase in diamond drilling.
3. The aforementioned factors were partially offset by a 20% decrease in
supply costs due to a reduction in reagent consumption for the cyanidation
Total royalties paid to the government at Uchucchacua in 3Q09 was
At Antapite (100%), total production in 3Q09 was 8,297 ounces of gold, a
decrease of 11% compared to 3Q08 (9,351 ounces), mainly due to a 34% decrease
in ore milled despite a 32% increase in grade. Accumulated gold production was
23,430 ounces, a 31% decrease when compared to 2008
Gold cash operating cost in 3Q09 was
reported in 3Q08 (
Total royalties paid to the government at Antapite in 3Q09
At Colquijirca (El Brocal 45.97%), total zinc production was 16,795 MT in
3Q09, an 8% decrease when compared to the 18,169 MT reported in 3Q08 due to an
8% decrease in ore grade. Total silver production during 3Q09 was 946,637
ounces, a 25% decrease when compared to the 1,263,051 ounces reported in 3Q08
as a result of an 18% decline in silver grades and an 8% decrease in the
recovery rate. Total lead production for 3Q09 was 5,
when compared to 6,
For the nine-month period 2009, total zinc production was 50,
decrease when compared to the 63,
silver, total production decreased 24%, from 3,651,447 ounces in 2008 to
2,770,176 ounces in 2009. Lead production for the nine-month period 2009 was
Zinc cash cost in Colquijirca increased from
contribution as a consequence of lower prices, in addition to lower zinc grade
in the tonnage milled, as previously mentioned.
At Marcapunta, copper production for 3Q09 was 2,
increase when compared to 5,
Total royalties paid to the government at Colquijirca in 3Q09
General and administrative expenses for 3Q09 were
than the figure reported in 3Q08 (
long-term compensation provision, while in 3Q08, Buenaventura reported a
for the nine-month period 2009 totaled
compared to the
Exploration costs at non-operational mining sites, which include care and
maintenance, during 3Q09 were
Exploration costs at non-operating mining sites during the nine-month period
Operating income in 3Q09 was
increase in operating expenses previously mentioned, which offset the increase
Accumulated operating income for the period was
decrease when compared to the
During 3Q09, Buenaventura’s income from non-consolidated affiliates was
Yanacocha’s contribution to these results increased 102%, from
in 3Q08 to
increased 18% (
Accumulated income from non-consolidated affiliates for the nine-month period
reported in 2008.
At Yanacocha (43.65%), 3Q09 gold production was 543,854 ounces of gold, an
increase of 21% compared to 3Q08 (448,721 ounces). Gold production for the
nine-month 2009 period was 1,559,465 ounces, an increase of 12% compared to
the 1,391,010 ounces reported in the same period of 2008.
Cost applicable to sales (CAS) at Yanacocha in 3Q09 was
lower than the figure reported in 3Q08 (
Net income at Yanacocha during 3Q09 was
when compared to the 3Q08 figure (
for 2009 was
During 3Q09, EBITDA totaled
to 3Q08 (
increase in ounces of gold sold and the 12% rise in realized gold prices.
EBITDA for the nine-month period 2009 was
when compared to the
CAPEX for 3Q09 was
At Cerro Verde (19.26%), 3Q09 copper production was 72,973 MT, a 7%
decrease when compared to 3Q08 (78,
month period 2009 totaled 225,498 MT, 4% lower than the figured reported in
the same period of 2008 (235,
During 3Q09, Cerro Verde reported net income of
increase compared to the
the 14% rise in sales revenue, which increased from
43% decrease compared to the same period of 2008 (
CAPEX in 3Q09 totaled
This quarter, Buenaventura’s net income was
contribution from Yanacocha and Cerro Verde.
Net income for the nine-month period 2009 was
reported in the same period of 2008.
The deepening of the Carmen and Socorro mines has progressed as scheduled;
completion is expected in 2Q10 to reach level 3920. The installation of a
pumping station at level 3980 will be completed in 1Q10.
At the Carmen mine, the deepening of the Master Shaft has already reached
level 3920. Likewise, Ramp 760 is currently at level 3961 and will continue
deepening to reach level 3920 in 2Q10.
The deepening of the Luz Shaft at the Socorro mine reached level 4058 and
will continue until level 3990. Completion is expected in 1Q10. The
construction of ramp 626 recently reached level 3920.
The project also includes the purchasing of 1 mineral and waste hoist and
1 personnel hoist to be installed in 3Q10.
The total budget of these projects is
at level 3217 and 3220, respectively. In both cases, they will continue
deepening to reach level 3170 in 2Q10. The installation of a pumping station,
at level 3220, will be completed in 1Q10.
The deepening of the Prometida Shaft reached level 3298 in
and will continue deepening to reach level 3290 by the end of 2009.
The project also includes the purchasing of 1 hoist for mineral, waste and
personnel to be installed in 3Q10.
The total budget of these projects is
La Zanja started the construction of the leaching pads and the Bramadero
investment for the project will be
will be spent in 2009.
Year-to-date, project expenditures have totaled
At the Board of Director’s meeting, held
passed the following resolution:
Declaration of a cash dividend of
U.S. dollars on
(1) Production includes 100% of operating units, 100% of CEDIMIN and
45.97% of El Brocal.
Buenaventura has a total of 254,442,328 shares outstanding.
For a full version of this press release, please visit the Company’s
webpage at www.buenaventura.com.pe.
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: firstname.lastname@example.org Contacts in New York: Maria Barona / Peter Majeski i-advize Corporate Communications, Inc. Tel: (212) 406-3690 Email: email@example.com
Compania de Minas Buenaventura S.A.A. is
precious metals company and a major holder of mining rights in
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
Poracota, Uchucchacua, Antapite, Julcani, Recuperada and Caraveli). It has
controlling interest in two mining companies (CEDIMIN and El Brocal) as well
as a minority interest in several other mining companies in
owns 43.65% in Minera Yanacocha S.R.L. (a partnership with Newmont Mining
Corporation), an important precious metal producer, and 19.26% in Sociedad
Minera Cerro Verde, an important Peruvian copper producer.
To request a printed version of the Company’s 2008 Form 20-F, please
contact the persons indicated above.
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.
SOURCE Compania de Minas Buenaventura S.A.A.