Compania de Minas Buenaventura Announces Fourth Quarter 2009 Results

February 25, 2010

LIMA, Peru, Feb. 25 /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 2009. 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, Buenaventura’s Chief Executive Officer stated:

“Net income during the fourth quarter totaled US$210.4 million, a
significant improvement when compared to the loss reported in 4Q08 (negative
US$6.1 million).

EBITDA from Buenaventura’s Direct Operations was US$116.9 million, 295%
higher than the figure reported in 4Q08 (US$29.6 million), while EBITDA
including Yanacocha and Cerro Verde increased 392%, from US$73.0 million in
4Q08 to US$359.0 million in 4Q09.

These positive results were mainly driven by higher revenues due to the
increases in metal prices, as well as Yanacocha and Cerro Verde’s

Operating Revenue

During 4Q09, net sales were US$243.5 million, a 57% increase when compared
to the US$155.0 million reported in 4Q08. This was explained by higher
realized prices in all metals despite a decrease in the volume of gold,
silver, zinc and lead sold.

Royalty income during 4Q09 totaled US$17.5 million, a 72% increase when
compared to the US$10.2 million reported in 4Q08 due to higher sales at

Net sales for 2009 were US$819.4 million, a 7% increase compared to 2008
(US$766.6 million), while royalty income was US$62.2 million, a 27% increase
when compared to the US$48.8 million reported in 2008.

Production and Operating Costs

Buenaventura’s equity production(1) during 4Q09 was 113,827 ounces of
gold, 1% higher than the 113,068 million ounces reported in 4Q08. Silver
production during 4Q09 was 3.5 million ounces, a 12% decrease when compared to
the 4.0 million ounces reported in 4Q08.

Equity production(1) for the twelve month 2009 period was 424,731 ounces
of gold and 14.8 million ounces of silver. This represented stable gold
production (422,732 ounces in 2008), and a 6% decrease in silver production
compared to 2008 (15.6 million ounces).

Orcopampa’s (100%) total gold production was 87,748 ounces, 12% higher
than 4Q08 production (78,459 ounces). Production from the Chipmo mine in 4Q09
was 77,624 ounces, 11% higher than the 70,155 ounces reported in 4Q08,
complemented by old tailings treatment, which produced 10,124 gold ounces.
Accumulated total gold production for 2009 was 315,227 ounces, an 11% increase
when compared to 2008 (284,511 ounces).

Cash operating cost in 4Q09 was US$322/oz, 22% higher when compared to 4Q08
(US$263/oz). This was explained by:

1. A 53% increase in contractor costs due to a 39% increase in diamond
drilling and a 43% increase in drifting work.

2. A 23% increase in labor costs.

Cash operating cost for 2009 was US$290/oz, 19% higher than the figure
reported in 2008 (US$244/oz).

At Poracota, gold production in 4Q09 was 13,474 ounces, a decrease of 2%
when compared to 4Q08 (13,736 ounces), while the cash operating cost increased
69% from US$571/oz in 4Q08 to US$963/oz in 4Q09. This increase was due to a
125% increase in diamond drilling. Accumulated gold production for the twelve-
month 2009 period was 51,516 ounces, 12% higher than the figure reported in
2008 (46,126 ounces).

Total royalties paid to the government at both Orcopampa and Poracota in
4Q09 was US$3.6 million.

At Uchucchacua (100%), total silver production during 4Q09 was 18% lower
than 4Q08 (2,497,134 ounces and 3,034,526 ounces, respectively) due to a 6%
decline in ore treated and 12% lower silver grade. Zinc production decreased
46% (from 2,861 MT in 4Q08 to 1,551 MT in 4Q09), while lead production
decreased 48% (1,445 MT in 4Q09 vs. 2,774 MT in 4Q08). Accumulated production
for 2009 was 10,555,566 ounces of silver, 8% lower than in 2008 (11,417,199
ounces); 8,209 MT of zinc, a decrease of 27% when compared to 2008 (11,300 MT)
and 8,548 MT of lead, 23% lower than the figure reported in 2008 (11,101 MT).

Cash operating cost in 4Q09 was US$11.61/oz, a 60% increase compared to
the $7.25/oz in 4Q08. This was best explained by:

1. 28% lower by-product contribution due to a decrease in zinc and lead

2. An 82% rise in contractor expenses explained by a 19% increase in
diamond drilling and a 12% increase in drifting work.

3. The decrease in silver ounces recovered was due to the previously
mentioned decline in silver grade, while controlling manganese recovery and

Total royalties paid to the government at Uchucchacua in 4Q09 was US$1.3

At Antapite (100%), total production in 4Q09 was 7,574 ounces of gold, a
decrease of 17% compared to 4Q08 (9,130 ounces), mainly due to a 29% decrease
in ore milled despite a 13% increase in the gold grade and 3% increase in the
recovery rate. Accumulated 2009 gold production was 31,004 ounces, a 28%
decrease when compared to 2008 (43,319 oz).

Gold cash operating cost in 4Q09 was US$881/oz, 15% higher than 4Q08
(US$755/oz) due to the impact of a reduction in the amount of ounces
recovered. The 14% increase in gold grade and higher recovery did not offset
the lower tonnage treated. For 2009, cash operating cost was US$784/oz, 23%
higher than in 2008 (US$637/oz).

Total royalties paid to the government at Antapite in 4Q09 was US$0.1

At Colquijirca (El Brocal 45.97%), total zinc production was 16,872 MT in
4Q09, an 9% decrease when compared to the 18,612 MT reported in 4Q08 due to 9%
decline in tonnage treated and a 4% decrease in ore grade despite a 2%
decrease in the recovery rate. Total silver production during 4Q09 was 880,865
ounces, a 5% increase when compared to the 841,744 ounces reported in 4Q08,
mainly explained by a 14% increase in the silver ore grade despite a 9%
decrease in the tonnage treated. Total lead production for 4Q09 was 5,614 MT,
a 5% decrease when compared to 5,939 MT in 4Q08.

For 2009, total zinc production was 67,690 MT, a 17% decrease when
compared to the 81,630 MT reported in 4Q08. In the case of silver, total
production decreased 19%, from 4,493,191 ounces in 2008 to 3,651,041 ounces in
2009. Lead production for the twelve-month 2009 period was 20,135 MT, 19%
lower than the same period in 2008 (24,963 MT).

Zinc cash cost in Colquijirca increased from US$626/MT in 4Q08 to
US$1,083/MT in 4Q09. This was due to a higher stripping ratio (10.55 in 4Q09
vs. 3.03 in 4Q08) despite the higher zinc and lead contributions due to an
increase in prices.

At Marcapunta, copper production for 4Q09 was 1,941 MT, 7% lower than 4Q08
(2,090 MT). Accumulated copper production in 2009 was 8,284 MT, an 11%
increase when compared to 7,496 MT in 2008.

Total royalties paid to the government at Colquijirca in 4Q09 was US$1.6

Operating Expenses

General and administrative expenses for 4Q09 were US$18.8 million, higher
than the figure reported in 4Q08 (negative US$5.7 million) due to the reverse
adjustment of the long-term compensation provision (negative US$15.3 million)
reported in the comparable period of 2008. General and administrative expenses
for the twelve-month period 2009 totaled US$88.8 million, a 154% increase when
compared to the US$34.9 million reported in 2008 due to the US$16.8 million in
doubtful accounts related to Doe Run, as well as the reverse adjustment of the
long-term compensation provision (negative US$21.7 million) reported in 2008.

Exploration Costs in non-operational mining sites

Exploration costs at non-operational mining sites, which include care and
maintenance during 4Q09 were US$5.7 million, a 59% decrease compared to the
US$14.1 million reported in 4Q08. The main efforts were focused at the
Breapampa (US$1.2 million), Trapiche (US$1.0 million), Marcapunta (US$0.9
) and Mallay (US$1.7 million) projects. Exploration costs at non-
operating mining sites during 2009 were US$30.0 million, a 46% decrease when
compared to 2008 (US$55.2 million).

First-stage diamond drilling totaling 24,000m is complete at Chucapaca.
Results are sufficiently encouraging to warrant mine initiation and a scoping
study is scheduled for completion by July 2010. Insufficient drilling has been
done to establish a definitive gold grade for the Canahuire deposit, but
indications are that it will be economically viable. Portions of the Canahuire
deposit are copper-bearing, but low-grade. Metallurgical test work is ongoing
with encouraging initial results for combined floatation and CIL cyanidation.

Exploration at the Cerro Castrejon target, 7 km southwest of the La Zanja
open pit/heap leach project, is at a very early stage with 2,500m of diamond
drilling completed. However, despite a limited amount of work, it is clear
that the La Zanja joint venture has discovered a molybdenum and copper deposit
of significant size and grade. Mineralization is sulfide dominant hosted by a
tourmaline breccia pipe with dimensions of 200mx300m, with a 300m to 400m
vertical extension.

At Breapampa Buenaventura has exercised its US$15 million option to buy
out Newmont. Buenaventura is in the process of analyzing the feasibility of
completing an environmental impact study and construction permits by the end
of 2010. The first open pit/heap leach operation will be initiated thereafter
at one of the three small oxide gold deposits in these highly prospective
93,400 hectares of mining rights. The Parcca Orcco deposit has in-pit probable
reserves of 4.7 Mt at 1.3 g/t gold and 22.2 g/t silver

At Trapiche, Buenaventura was able to report 552 Mt in total resources
with 0.46% copper and 0.013% molybdenum amenable for conventional flotation
for both the primary and enriched sulfides. Test results show concentrate
grades between 22% and 30% copper with recoveries that fluctuate between 75%
and 82%.

Tuyumina is a Cedimin prospect located 20 km East of the Paula mine. Two
new veins were discovered with a discontinuous outcrop exceeding 5 km in the N
70 degrees E direction. Prospecting in the central area began with trenches in
late 2009; the veins exposed are 2m to 3m wide and show typical quartz-
adularia low sufidation assemblages. The Olivia vein has a 100m central zone
with 6 g/t to 30 g/t gold and 4 oz/t to 25 oz/t silver. The Company is
currently evaluating depth potential with two diamond drilling rigs.

Operating Income

Operating income in 4Q09 was US$93.9 million, a 456% increase compared to
the US$16.9 million reported in 4Q08. This result was mainly explained by the
58% increase in total revenues, from US$165.2 million in 4Q08 to US$261.0
in 4Q09.

Accumulated operating income for 2009 was US$287.2 million, in-line with
the figure reported in 2008 (US$283.7 million).

Share in Affiliated Companies

During 4Q09, Buenaventura’s income from non-consolidated affiliates was
US$147.6 million, 590% higher than the US$21.4 million reported in 4Q08.
Yanacocha’s contribution to these results increased 160%, from US$38.4 million
in 4Q08 to US$99.7 million 4Q09, while contributions from Cerro Verde
increased from negative US$17.0 million in 4Q09 to US$47.9 million in 4Q08.
Accumulated income from non-consolidated affiliates in 2009 was US$451.3
, an increase of 32% compared to the US$340.9 million reported in 2008.


At Yanacocha (43.65%), 4Q09 gold production was 498,716 ounces of gold, an
increase of 19% compared to 4Q08 (419,329 ounces). Gold production for the
twelve-month 2009 period was 2,058,180 ounces, an increase of 14% compared to
the 1,810,338 ounces reported in the same period of 2008.

Cost applicable to sales (CAS) at Yanacocha in 4Q09 was US$319/oz, 10%
lower than the figure reported in 4Q08 (US$356/oz). For 2009, CAS was
US$325/oz, a 9% decrease when compared to US$358/oz reported in 2008.

Net income at Yanacocha during 4Q09 was US$228.5 million, a 154% increase
when compared to the 4Q08 figure (US$90.1 million). Accumulated net income in
2009 was US$727.1 million, 53% higher than in 2008 (US$476.5 million).

During 4Q09, EBITDA totaled US$374.1 million, an increase of 135% compared
to 4Q08 (US$159.4 million). This increase was due to a 62% increase in
revenues (US$561.9 million in 4Q09 vs. US$347.6 million in 4Q08) due to an 18%
increase in ounces of gold sold and the 37% increase in realized gold prices.
EBITDA for 2009 was US$1,232.6 million, a 45% increase when compared to the
US$849.2 million reported in 2008.

CAPEX for 4Q09 was US$52.9 million and US$146.5 million for 2009.


At Cerro Verde (19.26%), 4Q09 copper production was 74,611 MT, a 7%
decrease when compared to 4Q08 (79,894 MT). Copper production in 2009 totaled
300,109 MT, 5% lower than the figured reported in 2008 (315,014 MT).

During 4Q09, Cerro Verde reported net income of US$244.6 million compared
to a negative US$100.4 million reported in 4Q08.

Accumulated net income in 2009 was US$708.5 million, a 1% decrease
compared to 2008 (US$718.4 million), while sales totaled US$1,757.5 million, a
decrease of 4% compared to 2008 (US$1,835.9 million).

CAPEX in 4Q09 totaled US$17.0 million and US$91.9 million for 2009.

Net Income

This quarter, Buenaventura’s net income was US$210.4 million, representing
US$0.83 per share compared to negative US$6.1 million in 4Q08 (negative
US$0.02 per share). This was mainly explained by the 590% increase in
contributions from Yanacocha and Cerro Verde.

Net income in 2009 was US$593.6 million (US$2.33 per share) compared to
the US$153.3 million (US$0.60 per share) reported in 2008.

Project Development


— Mine hoist renewal in the Chipmo area to transport ore from lower
levels of the mine that will permit mining cost reductions. CAPEX US$3.3

— 2nd stage old tailings retreatment to recover 38,000 oz of gold and 1.1
M oz of silver. CAPEX US$5.5 million.

— Tailing Dam #4 expansion for an additional 1.8 years. CAPEX US$10.4


— Mine hoist renewal in the Carmen mine to transport ore from lower
levels of the mine that will permit mining cost reductions. CAPEX US$4.2

— Improving the pumping system to avoid floods. CAPEX US$2.2 million.

— Leaching plant work to incorporate into reserves current ore resources
with manganese content and increase production moving forward.


— Expansion of metallurgical facilities to increase plant capacity from
6,000 TPD to 18,000 TPD, which considers the construction of a new tailing
dam. CAPEX US$200 million.


— Construction of a 90 Mw hydroelectric plant to ensure energy supplies
from a clean and renewable source for direct operations and projects. CAPEX
US$145 million.


La Zanja started the construction of leaching pads and the Bramadero Dam
on July 1, 2009. It is expected to initiate operations in July 2010. CAPEX
US$55.5 million.
In 2009, project expenditures totaled US$22.0 million. The mine construction
progress is summarized in the following chart:

Board Resolutions

At the Board of Director’s meeting held February 25, 2010, the Board
passed the following resolutions:

To call for the Annual Shareholders Meeting to be held March 26, 2010 to:

— Approve the financial statements as of December 31, 2009

— Approve the 2009 Annual Report

— Approve a cash dividend of US$0.30 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,
Poracota, 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 19.26% 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 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
45.97% 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

    Visit our website: http://www.buenaventura.com

SOURCE Compania de Minas Buenaventura S.A.A.

Source: newswire

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