Watch Live

Tweet TWEET

Buenaventura Announces Third Quarter 2012 Results

  Buenaventura Announces Third Quarter 2012 Results

Business Wire

LIMA, Peru -- October 31, 2012

Compañia 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 results for the third quarter 2012. All
figures have been prepared in accordance with IFRS and are stated in U.S.
dollars (US$).

Comments from the Chief Executive Officer:

Mr. Roque Benavides, Buenaventura’s Chief Executive Officer, stated:

“Net income in the third quarter was US$185.6 million, 11% lower than the
figure reported in 3Q11 (US$208.7 million). EBITDA from Buenaventura’s Direct
Operations was US$158.5 million, 37% lower than the figure reported in 3Q11
(US$252.3 million), while EBITDA including Affiliates decreased 14%, from
US$446.5 million in 3Q11 to US$384.4 million in 3Q12.

These results were mainly explained by lower gold volume sold from
Buenaventura’s direct operations, as well as lower silver and base metal
prices. Higher costs also impacted results due to an increase in contractor
expenses as well as higher supply costs.


Financial Highlights (in millions of US$, except EPS figures):

                  3Q12    3Q11    Var%   9M12      9M11      Var%
Total Revenues     411.9   435.3   -5%    1,139.4   1,154.3   -1%
Operating Income   120.6   214.0   -44%   331.6     540.3     -39%
EBITDA
                   158.5   252.3   -37%   439.7     643.3     -32%
(BVN Direct
Operations)
EBITDA
                   384.4   446.5   -14%   1,137.5   1,237.8   -8%
(inc.
Associates)
Net Income         185.6   208.7   -11%   545.6     631.0     -14%
EPS*               0.7     0.8     -11%   2.1       2.5       -14%
                                                             

(*) As of September 30, 2012, Buenaventura had 254,232,571 shares outstanding.

Within this release, Buenaventura presents financial measures in accordance
with IFRS, as well as on a non-GAAP basis.

Operating Revenue

During 3Q12, net sales were US$394.0 million, 6% lower than the US$418.1
million reported in 3Q11. This was explained by lower metal prices and gold
volume sold.

Royalty income increased 4% from US$17.1 million reported in 3Q11 to US$17.9
million in 3Q12 due to higher revenues at Yanacocha.

                                                               
Operating       3Q12       3Q11       Var   9M12        9M11        Var
Highlights                               %                                %
Net Sales (in
millions of     394.0      418.1      -6%   1,084.7     1,108.9     -2%
US$)
Average
Realized Gold   1,671      1,695      -1%   1,672       1,543       8%
Price Gold
(US$/oz)*
Average
Realized Gold
Price (US$/oz)  1,656      1,677      -1%   1,653       1,542       7%
inc.
Associates
Average
Realized        29.68      38.99      -24%  29.93       37.33       -20%
Silver Price
(US$/oz)*
Average
Realized Lead   2,030      2,378      -15%  1,973       2,441       -19%
Price
(US$/MT)*
Average
Realized Zinc   1,868      2,235      -16%  1,909       2,276       -16%
Price
(US$/MT)*
Average
Realized        7,989      9,066      -12%  8,119       9,244       -12%
Copper Price
(US$/MT)*
(*)
Buenaventura’s                                                      
Direct
Operations
                                                                          
                                                              
Sales Content
               3Q12       3Q11       Var   9M12        9M11        Var
                                         %                                %
Gold (in oz)*   113,563    134,863    -16%  347,400     381,469     -9%
Gold (in oz)
inc.            287,284    283,091    1%    631,544     765,476     -17%
Associates
Silver (in      4,392,833  4,069,550  8%    11,882,677  10,427,079  14%
oz)*
Lead (in MT)*   8,391      8,217      2%    19,996      15,511      29%
Zinc (in MT)*   15,613     12,114     29%   37,987      28,243      35%
Copper (in      3,886      4,383      -11%  10,394      15,061      -31%
MT)*
(*)
Buenaventura
Direct
Operations
                                                                          

Accumulated net sales in the first nine-month period 2012 were US$1,084.7
million, 2% lower than the figure reported in the same period 2011 (US$1,108.9
million), while royalty income was US$54.6 million, a 20% increase when
compared to the US$45.4 million reported in 2011.

Production and Operating Costs

Buenaventura’s equity production^1 in 3Q12 was 112,750 ounces of gold, 5%
higher than the 107,157 ounces reported in 3Q11 mainly due to an increase in
Orcopampa and Tantahuatay production. Silver production in 3Q12 was 4.7
million ounces, a 12% increase when compared to the figure reported in 3Q11
(4.2 million oz).

Equity production^1 in the first nine-month period 2012 was 337,761 ounces of
gold and 13.2 million ounces of silver. This represented a 2% decrease in gold
production (344,751 ounces in 2011), and a 17% increase in silver production
compared to 2011 (11.2 million ounces).


Equity Production ^1
               3Q12       3Q11       Var%  9M12        9M11        Var%
Gold (oz)
Direct          112,750    107,157    5%    337,761     344,751     -2%
Operations
Gold (oz) inc.  267,144    256,887    4%    822,327     769,089     7%
Yanacocha
Silver (oz)     4,678,811  4,189,062  12%   13,203,863  11,244,038  17%
Lead ( MT)      7,942      5,698      39%   19,450      13,819      41%
Zinc ( MT)      13,073     9,971      31%   32,328      19,474      66%
Copper (MT)
inc. Cerro      15,648     16,297     -4%   44,683      52,779      -15%
Verde
                                                                   

^1 Production includes 100% of Buenaventura’s operating units, 100% of
CEDIMIN, 53.06% of La Zanja, 40.04% of Tantahuatay and 53.76% of El Brocal.

Orcopampa’s (100% owned by Buenaventura) total gold production in 3Q12 was
70,588 ounces, 17% higher than the 60,171 ounces reported in 3Q11. Production
from the Chipmo mine in 3Q12 was 65,362 ounces, 25% higher compared to the
52,265 ounces reported in 3Q11 due to a 16% increase in tonnage treated and 6%
higher ore grade (See Appendix 2). The old tailings treatment produced 5,226
gold ounces (compared to 7,906 ounces in 3Q11). Accumulated total gold
production in the first nine-month period 2012 was 200,599 ounces, a 6%
decrease when compared to 2011 (213,906 ounces).

Cash operating cost in 3Q12 was US$537/oz, 3% lower when compared to 3Q11
(US$554/oz). This was mainly explained by the 16% increase in gold ounces
recovered due to higher tonnage treated and better ore grades.

At Uchucchacua (100% owned by Buenaventura), total silver production in 3Q12
was 2.79 million ounces, a 1% increase when compared to 2.75 million ounces in
3Q11 due to a 4% higher recovery rate (See Appendix). Zinc production in 3Q12
was 2,628 MT, 57% higher than the figure reported in 3Q11 (1,673 MT), while
lead production increased 14% (2,259 MT in 3Q12 vs. 1,975 MT in 3Q11). In the
first nine-month period 2012, silver production was 8.25 million ounces; zinc
production was 6,879 MT, while lead production was 6,145 MT vs. 7.30 million
ounces, 4,625 MT and 5,308 MT, respectively, in 2011.

Cash operating cost in 3Q12 was US$16.8/oz, in-line with the US$16.7/oz in
3Q11. It is important to note that efficiency improvements at Uchucchacua have
permitted the Company to offset the increase in contractor, labor and supply
costs, which have affected the entire industry.

At Julcani (100% owned by Buenaventura), total production in 3Q12 was 589,838
ounces of silver, 3% lower compared to 3Q11 (605,346 ounces). In the first
nine-month period 2012, silver production was 1.82 million ounces, 0.5% higher
than in 3Q11 (1.82 million ounces).

Silver cash operating cost in 3Q12 was US$14.6/oz, 15% higher than the 3Q11
cash cost (US$12.52/oz). This was mainly due to:

1. A 9% increase in labor costs

2. Contractor costs rose 25% due to higher labor costs, which impacted unit
prices, as well as a 39% increase of DDHH work.

La Zanja (53.06% owned by Buenaventura) total production in 3Q12 was 29,702
ounces of gold, a 24% decrease when compared to 3Q11 (39,262 ounces). This was
in-line with the 2012 mining plan. Accumulated gold production in the first
nine-month period 2012 was 83,718 ounces, 17% lower when compared to first
nine-month period 2011 (101,333 ounces). Cash operating cost in 3Q12 was
US$620/oz, 72% higher than 3Q11 (US$360/oz) due to a higher stripping as well
as an increase in supply costs (mainly explained by an increase of reagent
consumption and prices). These costs were in-line with the 2012 budget.

Tantahuatay (40.04% owned by Buenaventura) total production in 3Q12 was 39,194
ounces of gold (15,678 ounces attributable to Buenaventura). In the first
nine-month period 2012, gold production was 105,929 ounces (42,372
attributable to Buenaventura). Cash operating cost in 3Q12 was US$326/oz.

At El Brocal (53.76% owned by Buenaventura), Zinc production in 3Q12 was
13,298 MT, a 5% decrease when compared to 3Q11 (14,025 MT). Silver production
increased 22% from 1.0 million ounces in 3Q11 to 1.2 million ounces in 3Q12.
Lead production was 4,816 MT, 3% higher than 4,693 MT reported in 2011. During
the first nine-month period 2012, total zinc production was 34,949 MT, a 48%
increase when compared to the 23,675 MT reported in 2011. In the case of
silver, total production increased 16%, from 2.5 million ounces in 2011 to 2.9
million ounces in the first nine-month period 2012. Lead production in the
first nine-month period 2012 was 12,329 MT, 30% higher than 2011 (9,504 MT).

Zinc cash costs was US$975/MT in 3Q11 compared to a negative US$458/MT in
3Q12. This was explained by a decrease in silver by-product contribution due
to lower prices.

At Marcapunta, copper production was 3,754 MT, 17% lower than the 4,549 MT
reported in 3Q11. For the first nine-month period 2012, copper production
decreased 41% (15,944 MT in 3Q11 versus 9,438 MT in 3Q12). Cash cost at
Marcapunta was US$6,754/MT in 3Q12 (vs. US$3,922/MT in 3Q11).

General and Administrative Expenses

General and administrative expenses in 3Q12 were US$22.9 million, 2% higher
than the figure reported in 3Q11 (US$22.3 million). This figure included
US$4.0 million in metallurgical research studies. For the first nine-month
period 2012, general and administrative expenses were US$77.7 million versus
US$58.8 million in 2011 (a 32% increase).

Exploration Costs at Non-Operational Mining Sites

Exploration costs at non-operational mining sites, which include care and
maintenance, in 3Q12 were US$27.4 million, a 114% increase compared to the
US$12.8 million reported in 3Q11. Buenaventura’s main exploration efforts were
focused at the Trapiche (US$5.1 million), Tambomayo (US$4.4 million), San
Gregorio (US$4.0 million), Chancas/Focus (US$2.8 million) and Breapampa
(US$2.1 million) projects.

Exploration costs at non-operational mining sites in the first nine-month
period 2012 reached US$73.2 million, 106% higher than 2011 (US$35.5 million).

Operating Income

Operating income in 3Q12 was US$120.6 million, a 44% decrease compared to the
US$214.0 million reported in 3Q11. This decrease was mainly due to a 27%
increase in operating costs, while revenues decreased 5%.

For the accumulated first nine-month period 2012, operating income was
US$331.6 million versus US$540.3 million in 2011 (a decrease of 39%).

Share in Associated Companies

During 3Q12, Buenaventura’s share in associated companies was US$116.3
million, 8% higher than the US$107.7 million figure reported in 3Q11.
Yanacocha’s contribution to these results decreased 18%, from US$79.8 million
in 3Q11 to US$65.1 million in 3Q12, while Cerro Verde’s contribution increased
38% from US$31.8 million in 3Q11 to US$43.7 million in 3Q12.

For the first nine-month period 2012, Buenaventura’s share in associated
companies was US$374.3 million, 9% higher than the US$343.9 million reported
in 2011.

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), 3Q12 gold production was 353,710
ounces of gold, 8% higher than 3Q11 production (328,411 oz). Accumulated gold
production in the first nine-month period 2012 was 1,110,117 ounces, 16%
higher than in 2011 (958,290 oz).

Costs applicable to sales (CAS) at Yanacocha in 3Q12 were US$539/oz, 15% lower
than the figure reported in 3Q11 (US$633/oz) due to higher production and
lower mining costs. Net income at Yanacocha in 3Q12 was US$150.5 million, 18%
lower compared to the 3Q11 figure (US$183.3 million). Accumulated net income
in the first nine-month period 2012 was US$550.8 million, 24% higher than in
2011 (US$443.1 million).

During 3Q12, EBITDA totaled US$316.1 million, a 3% decrease compared to 3Q11
(US$327.2 million). This decrease was mainly due to an increase in other
expenses related to unexpected employee terminations. Accumulated EBITDA in
the first nine-month period 2012 was US$1,055.9 million, 31% higher than 2011
(US$805.3 million).

Capital expenditures at Yanacocha were US$262.6 million in 3Q12 and US$822.9
for the first nine-month period 2012.

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), 3Q12 copper production was
69,150 MT, a 3% decrease compared to the figure reported in 3Q11 (71,255 MT).
Accumulated total copper production in the first nine-month period 2012 was
200,775 MT, 12% lower than 227,622 MT in 2011.

During 3Q12, Cerro Verde reported net income of US$219.7 million, a 33%
increase when compared to US$164.9 million in 3Q11. This was mainly due to a
22% decrease in sales revenues (US$575.0 million in 3Q12 versus US$470.1
million in 3Q11). Accumulated net income in the first nine-month period 2012
was US$625.9 million, 29% lower than US$875.8 million in 2011.

Capital expenditures at Cerro Verde in 3Q12 totaled US$148.8 million and
US$400.8 in the first nine-month 2012 period.

CANTERAS DEL HALLAZGO (Chucapaca project)

At Canteras del Hallazgo (49% owned by Buenaventura), expenses attributable to
Buenaventura totaled US$6.7 million, mainly due to social expenses (US$8.2
million in 3Q11). For the first nine-month period 2012, attributable expenses
were US$20.1 million (US$21.3 million in 2011).

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.04% owned by Buenaventura), attributable contribution was
US$13.5 million (US$4.4 million in 3Q11). For the first nine-month period
2012, attributable contribution was US$31.4 million (US$3.5 million in 2011)

Net Income

Buenaventura’s 3Q12 net income was US$185.6 million (US$0.73 per share), an
11% decrease compared to the US$208.7 million (US$0.82 per share) reported in
3Q11. Accumulated net income in the first nine-month period 2012 was US$545.6
million, 14% lower when compared to 2011 (US$631.0 million).

Project Development

LA ZANJA DEVELOPMENT PROGRAM

  *Pampa Verde Project will allow the development of a new open pit, an
    expansion of the current leach pad and improvements to the operation’s
    road access. Construction began in 2Q11. The project’s total investment is
    US$70.4 million. Completion is expected in 1Q13.

                                     
                                     Progress as of September 30, 2012
San Pedro Sur Leach Pad Stage II      100%
San Pedro Sur Leach Pad Stage III     22.34%
San Pedro Sur Waste Rock Deposit      100%
Pampa Verde Pit                       60.00%
Pampa Verde Top Soil Deposit          30.00%
Pampa Verde Waste Soil Deposit        60.00%
Pampa Verde Acid Water Plant          75.00%
Pampa Verde Auxiliary Access          87.00%
Pampa Verde Waste Rock Deposit        70.00%
Pampa Verde Haul Road to SPS          70.00%
                                     

TANTAHUATAY DEVELOPMENT PROGRAM

  *The acid water dam was completed
  *Cienaga Norte project: The Environmental Impact Assessment approval is
    expected by the end of 4Q12.

PORACOTA – ULTRAFINE MILLING

  *The Poracota Ultrafine Milling project began in 1Q12. The project’s total
    investment is US$4.5 million.
  *The objective of this project is to process material from Manto Aguila.
    Project completion is expected by the end of 1Q13.

                         
                         Progress as of September 30, 2012
Civil Work                58%
Structure Fabrication     100%
Plant Construction        0%
                         

RIO SECO MANGANESE SULFATE PLANT

  *Buenaventura continued with the construction of the manganese sulfate
    plant. The project’s total budget is US$ 90.0 million.
  *The project includes an acid leaching facility, a sulfuric acid production
    plant and a manganese sulfate crystallization plant.
  *Pilot tests for the leaching processing facilities are expected in 4Q12.
    The operation of the sulfuric acid and the manganese sulfate plant is
    expected in 1Q13.

BREAPAMPA

  *As of September 30, 2012, construction at the Breapampa Project was
    completed for a total budget of US$48.0 million.
  *Currently, the Company is waiting for water and operating permits.

HUANZA HYDROELECTRICAL PLANT

  *Construction progress at the Huanza Project included:

1. Water Conduction Tunnel: 10,074 meters of excavation was completed,
representing 100%.

2. Powerplant: civil work was 90% complete.

3. Pallca Dam: 97% was complete (48,500m^3 of concrete).

4. The construction of electromechanical equipment is nearly complete, and
will be delivered on schedule. Equipment construction is 20% complete.

Other Information

At the Board of Directors meeting held October 30, 2012, the following
resolutions were passed:

Declaration of a cash dividend of US$0.20 per share, or ADS, to be paid in
U.S. dollars on November 30, 2012 to shareholders of record as of November 16,
2012.

Company Description

Compañía 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*, El Brocal, La Zanja,
Coimolache and CEDIMIN*).

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont
Mining Corporation), an important precious metal producer; 19.58% of Sociedad
Minera Cerro Verde, an important Peruvian copper producer, and 49% of Canteras
del Hallazgo S.A, owner the Chucapaca project.

For a printed version of the Company’s 2011 Form 20-F, please contact the
persons indicated above, or download a PDF format file from the Company’s web
site.

(*) Operations wholly owned by Buenaventura

(1) First time adoption of International Financial Reporting Standards
(“IFRS”)

As part of the first adoption of the International Financial Reporting
Standards (IFRS) in Peru, as of October 14, 2011, through Resolution
N°102-2011-EF/94.01.1, the Superintendence of Securities Market (“SMV”, before
CONASEV), required to all legal entities under its supervision to adopt IFRS
since the year The nine-month period 2012.

For periods up to and including the year ended December 31, 2011, the Company
prepared its financial statements in accordance with Generally Accepted
Accounting Principles in Peru (Peru GAAP). These consolidated financial
statements, for the year ended December 31, The nine-month period 2012, are
the first the Company has prepared in accordance with IFRS, in which the
Company has applied IFRS 1 “First Time Adoption of International Financial
Reporting Standard” in the opening balance as of January 1, 2011, transition
date to IFRS. The IFRS 1 application implies that all the standards are apply
retrospectively at the transition date, including certain mandatory exceptions
and voluntary exemptions defined in the standard.

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’s 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’s, Yanacocha’s and Cerro Verde’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.

                             **Tables to follow**

APPENDIX 1

Equity Participation in
Subsidiaries and Affiliates (as of December 31, The nine-month period 2012)
                                 BVN        Operating
                                 Equity %   Mines / Business
Cedimin S.A.C*                    100.00     Shila / Paula
Consorcio Energetico de           100.00     Energy – Huanza
Huancavelica S.A*                                  Hydroelectrical Project
Buenaventura Ingenieros S.A*      100.00     Engineering Consultant
Minera La Zanja S.A*              53.06      La Zanja
Sociedad Minera El Brocal         53.76      Colquijirca and Marcapunta
S.A.A*
Canteras del Hallazgo S.A **      49.00      Chucapaca Project
Compañía Minera Coimolache        40.04      Tantahuatay
S.A **
Minera Yanacocha S.R.L **         43.65      Yanacocha
Sociedad Minera Cerro Verde       19.58      Cerro Verde
S.A.A **

(*)Consolidates

(**) Equity Accounting

APPENDIX 2                                                                                                             
             
             GOLD PRODUCTION
             Three Months Ended September 30                             Nine Months Ended September 30
             Orcopampa                        Orcopampa Old Tailings      Orcopampa                         Orcopampa Old Tailings
             2012       2011       %       2012     2011     %      2012       2011       %        2012       2011       %
Ore Milled   125,551     108,689     16%                                  350,563     334,790     5%
MT
Ore Grade    16.87       15.87       6%                                   17.04       19.10       -11%
gr/MT
Recovery     95.9%       94.1%       2%                                   96.0%       94.9%       1%
Rate %
Ounces       65,362     52,265     25%     5,226    7,906    -34%   184,482    195,170    -5%      16,117     18,736     -14%
Produced
                                                                                                                                    
Orcopampa
Total                    3Q12        70,588   3Q11      60,171    9M12%   200,599     9M11        213,906
Production
                                                                                                              
             Three Months Ended September 30                             Nine Months Ended September 30
             Antapite                         Poracota                    Antapite                          Poracota
             2012       2011       %       2012     2011     %      2012       2011       %        2012       2011       %
Ore Milled   10,112      36,200      -72%     18,114    59,774    -70%    72,530      105,631     -31%      122,366     170,452     -28%
MT
Ore Grade    6.72        5.66        19%      4.22      8.13      -48%    4.63        6.86        -33%      6.27        8.40        -25%
gr/MT
Recovery     95.7%       96.9%       -1%      68.5%     80.5%     -15%    95.3%       96.5%       -1%       75.6%       82.8%       -9%
Rate %
Ounces       2,093      6,392      -67%    1,687    12,584   -87%   10,315     22,470     -54%     19,238     38,111     -50%
Produced
                                                                                                              
             LA ZANJA                                                    TANTAHUATAY
             3Q12       3Q11       %       9M12     9M11     %      3Q12       3Q11       %        9M12       9M11       %
Ounces       29,702     39,262     -24%    83,718   101,333  -17%   39,194     16,269     141%     105,929    16,269     551%
Produced
                                                                                                              
             SILVER PRODUCTION
             Three Months Ended September 30                             Nine Months Ended September 30
             Uchucchacua                      Colquijirca                 Uchucchacua                       Colquijirca
             2012       2011       %       2012     2011     %      2012       2011       %        2012       2011       %
Ore Milled   263,454     268,377     -2%      695,800   416,986   67%     783,967     717,919     9%        1,689,846   842,805     101%
MT
Ore Grade    445.71      447.77      0%       36.70     81.49     -55%    449.14      446.83      1%        41.06       74.65       -45%
gr/MT
Recovery     73.8%       71.2%       4%       66.0%     74.1%     -11%    72.8%       70.8%       3%        63.2%       76.1%       -17%
Rate %
Ounces       2,785,910  2,751,532  1%      536,167  891,672  -40%   8,247,266  7,302,138  13%      1,410,027  1,882,307  -25%
Produced
                                                                                                              
             ZINC PRODUCTION
             Three Months Ended September 30                             Nine Months Ended September 30
             Uchucchacua                      Colquijirca                 Uchucchacua                       Colquijirca
             2012       2011       %       2012     2011     %      2012       2011       %        2012       2011       %
Ore Milled   263,454     268,377     -2%      695,800   416,986   67%     783,967     717,919     9%        1,689,846   842,805     101%
MT
Ore Grade    1.57%       1.23%       28%      2.69%     4.06%     -34%    1.47%       1.25%       18%       2.93%       3.90%       -25%
%
Recovery     63.6%       50.8%       25%      65.4%     74.8%     -13%    59.6%       50.8%       17%       67.1%       72.0%       -7%
Rate %
MT           2,628      1,673      57%     12,332   14,025   -12%   6,879      4,625      49%      33,268     23,674     41%
Produced
                                                                                                                                    

APPENDIX 3

EBITDA RECONCILIATION (in thousand US$)
                                                              
                                 3Q12      3Q11      9M12       9M11
Net Income                        203,358   239,535   594,339    708,887
Add / Subtract:                   -44,826   12,799    -154,630   -65,611
Provision for income tax, net     35,069    81,893    114,342    176,122
Share in associated companies by  -116,298  -107,696  -374,304   -343,853
the equity method, net
Interest income                   -2,470    -1,875    -7,761     -7,252
Interest expense                  1,502     1,656     4,682      5,083
Loss on currency exchange         -527      529       254        1,352
difference
Depreciation and Amortization     32,445    23,241    84,240     69,175
Workers´ participation provision  5,453     15,051    16,605     33,762
Long Term Compensation provision  0         0         7,312      0
EBITDA Buenaventura Direct        158,532   252,334   439,709    643,276
Operations
EBITDA Yanacocha (43.65%)         137,997   142,840   460,891    351,526
EBITDA Cerro Verde (19.58%)       71,823    52,946    202,775    257,738
EBITDA Coimolache (40%)           22,721    6,635     54,270     6,635
EBITDA Canteras del Hallazgo      -6,669    -8,249    -20,110    -21,333
(49%)
EBITDA Buenaventura + All         384,404   446,505   1,137,534  1,237,842
Associates
                                                                 

Note:

EBITDA (Buenaventura Direct Operations) consists of earnings before net
interest, taxes, depreciation and amortization, share in associated companies,
net, loss on currency exchange difference, other, net, provision for workers’
profit sharing and provision for long-term officers’ compensation.

EBITDA (including Affiliates) consists of EBITDA (Buenaventura Direct
Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2)
Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s
equity share of EBITDA (Coimolache) plus (4) Buenaventura’s equity share of
EBITDA (Canteras del Hallazgo). All EBITDA mentioned were similarly calculated
using financial information provided to Buenaventura by the affiliated
companies.

Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA
(including affiliates) to provide further information with respect to its
operating performance and the operating performance of its equity investees,
the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including
affiliates) are not a measure of financial performance under IFRS, and may not
be comparable to similarly titled measures of other companies. You should not
consider EBITDA (Buenaventura Direct Operations) and EBITDA (including
affiliates) as alternatives to operating income or net income determined in
accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating
performance, or as an alternative to cash flows from operating activities,
determined in accordance with IFRS, as an indicator of cash flows or as a
measure of liquidity.

APPENDIX 4

Compañía de Minas Buenaventura S.A.A. and subsidiaries
Consolidated Balance sheet
As of September, 30 2012 and December, 31 2011
                                                                  
                                                         2012        2011
Assets                                                   US$(000)    US$(000)
Current assets
Cash and cash equivalents                                280,702     470,847
Financial asset at fair value through profit and loss    55,029      62,299
Trade accounts receivable, net                           187,129     172,569
Other accounts receivable                                82,523      48,521
Accounts receivable from associates                      29,916      47,425
Derivative financial instruments                         -           1,283
Embedded derivatives for concentrates sales              5,774       -
Inventory, net                                           171,951     149,108
Prepaid expenses                                         11,694     16,234
Total current assets                                     824,718     968,286
                                                                     
Other accounts receivable                                14,664      5,570
Accounts receivable from associates                      37,852      32,262
Long-term Inventory                                      42,939      48,845
Prepaid expenses                                         253
Investment in associates                                 2,350,797   1,935,004
Mining concessions, development cost and                 1,058,390   830,997
property, plant and equipment, net
Deferred income tax asset                                107,927     125,538
Other assets                                             5,209      7,047
Total assets                                             4,442,749  3,953,549
                                                                     
Liabilities and shareholders’ equity, net
Current liabilities
Trade accounts payable                                   173,799     142,375
Income tax payable                                       8,393       36,423
Dividends payable                                        865         1,052
Other accounts payable                                   61,757      40,098
Provisions                                               52,791      91,287
Accounts payable from associates                         870         883
Embedded derivatives for concentrates sales, net         -           7,306
Hedge derivative financial instruments                   177         -
Financial obligations                                    40,227     1,042
Total current liabilities                                338,879     320,466
                                                                     
Other non-current provisions                             106,850     86,528
Other accounts payable to associates                     799         1,004
Financial obligations                                    119,181     105,072
Other accounts payable                                   4,694      -
Total liabilities                                        570,403    513,070
                                                                     
Shareholders’ equity net
                                                                     
Capital stock, net of treasury shares of US$62,622,000   750,540     750,540
Investments shares, net of treasury shares of            1,399       2,019
US$762,000
Additional paid-in capital                               219,471     225,978
Legal reserve                                            162,649     162,639
Other reserves                                           269         269
Retained earnings                                        2,478,607   2,034,768
Cumulative unrealized, gain (loss)                       753        2,068
                                                         3,613,688  3,178,281
Non-controlling interest                                 258,658    262,198
Total shareholders’ equity, net                          3,872,346  3,440,479
                                                                   
Total liabilities and shareholders’ equity, net          4,442,749  3,953,549
                                                                     


Compañía de Minas Buenaventura S.A.A. and subsidiaries
Consolidated Statements of income
For the nine month period ended September 30, 2012 and September 30, 2011
                                                              
                        For the three month period   For the nine month period
                        ended September, 30          ended September, 30
                        2012            2011         2012          2011
                        US$(000)        US$(000)     US$(000)      US$(000)
Operating income
Net sales               393,987         418,130      1,084,736     1,108,912
Royalty income          17,868        17,126     54,621      45,375    
Total income            411,855         435,256      1,139,357     1,154,287
                                                                   
Operating costs
Cost of sales,
without considering     (164,106  )     (114,165 )   (434,961  )   (322,219  )
depreciation and
amortization
Exploration in units    (30,341   )     (29,047  )   (97,153   )   (75,371   )
in operation
Depreciation and        (32,445   )     (23,241  )   (84,240   )   (69,175   )
amortization
Royalties               (10,963   )    (20,629  )  (30,120   )  (51,939   )
Total operating costs   (237,855  )    (187,082 )  (646,474  )  (518,704  )
Gross income            174,000       248,174    492,883     635,583   
                                                                   
Operating expenses
Administrative          (22,856   )     (22,343  )   (77,652   )   (58,825   )
Exploring in            (27,400   )     (12,827  )   (73,229   )   (35,527   )
non-operating areas
Selling                 (5,204    )     (3,285   )   (12,281   )   (8,138    )
Other operating         2,094         4,323      1,831       7,246     
income, net
Total operating         (53,366   )    (34,132  )  (161,331  )  (95,244   )
expenses
Operating income        120,634       214,042    331,552     540,339   
                                                                   
Other income
(expenses), net
Share in the results    116,298         107,696      374,304       343,853
of associates
Interest income         2,470           1,875        7,761         7,252
Interest expense        (1,502    )     (1,656   )   (4,682    )   (5,083    )
Loss from currency
exchange difference,    527           (529     )  (254      )  (1,352    )
net
Total other income,     117,793         107,386      377,129       344,670
net
                                                                   
Income before income
tax and                 238,427         321,428      708,681       885,009
non-controlling
interest
Income tax              (35,069   )    (81,893  )  (114,342  )  (176,122  )
Net income              203,358       239,535    594,339     708,887   
Net income
attributable to         (17,773   )    (30,862  )  (48,721   )  (77,890   )
non-controlling
interest
Net income
attributable to         185,585       208,673    545,618     630,997   
Owners of the parent
                                                                   
Basic and diluted
earnings per share
attributable to         0.73          0.82       2.15        2.48
Buenaventura, stated
in U.S. dollars
                                                                             


Compañía de Minas Buenaventura S.A.A. and subsidiaries
Consolidated Statements of cash flows
For the nine month period ended September 30, 2012 and September 30, 2011
                                                              
                                                                   
                        For the three month period   For the nine month period
                        ended September, 30         ended September, 30
                        2012            2011         2012          2011
                        US$(000)        US$(000)     US$(000)      US$(000)
Operating activities
Proceeds from sales     363,513         368,652      1,057,157     1,087,941
Royalties received      19,818          13,837       55,071        37,482
Value Added Tax         16,884          6,920        30,161        19,360
recovered
Dividends received      3,846           -            10,854        -
Interest received       1,528           1,802        6,906         6,003
Payments to suppliers   (212,513  )     (182,485 )   (607,692  )   (533,215  )
and third parties
Payments to employees   (33,694   )     (20,153  )   (155,521  )   (106,296  )
Income tax paid         (31,238   )     (24,914  )   (107,057  )   (86,431   )
Payment of royalties    (9,738    )     (20,829  )   (29,798   )   (55,638   )
Payments of interest    (514      )    (235     )  (1,279    )  (911      )
                                                                   
Net cash and cash
equivalents provided    117,892       142,595    258,802     368,295   
by operating
activities
                                                                   
Investment activities
Decrease (increase)     2,736           (1,442   )   9,582         16,493
in time deposits
Proceeds from sales
of mining
concessions,            98              7,792        119           7,792
property, plant and
equipment
Proceeds from sales     -               60,379       -             60,379
of investments shares
Acquisitions of
mining concessions,     (140,213  )     (69,330  )   (308,920  )   (178,496  )
development
activities,
property, plant and
equipment
Payments for purchase   (23,273   )     (1,930   )   (32,184   )   (1,930    )
of investments shares
Contributions to        (13,083   )    (238,176 )  (21,961   )  (255,195  )
associates
Net cash and cash
equivalents used in     (173,735  )    (242,707 )  (353,364  )  (350,957  )
investment activities
                                                                   
Financing activities
Increase in financial   40,026          8,922        54,313        34,437
obligations
Dividends paid          -               -            (101,779  )   (83,967   )
Dividends paid to
non-controlling         (4,942    )     (22,867  )   (39,117   )   (48,418   )
interest
Payments for capital
stock reduction to      (7,980    )     -            (7,980    )   -
non-controlling
interest
Payments of financial   -             (493     )  (1,020    )  (1,500    )
obligation
Net cash and cash
equivalents provided    27,104        (14,438  )  (95,583   )  (99,448   )
by (used in)
financing activities
                                                                   
Decrease in cash and
cash equivalents        (28,739   )     (114,550 )   (190,145  )   (82,110   )
during the period,
net
Cash and cash
equivalents at          309,441       615,301    470,847     582,861   
beginning of period
Cash and cash
equivalents at          280,702       500,751    280,702     500,751   
period-end
                                                                   
                                                                   
                        For the three month period   For the nine month period
                        ended September, 30         ended September, 30
                        2012            2011         2012          2011
                        US$(000)        US$(000)     US$(000)      US$(000)
                                                                   
Reconciliation of net
income to cash and
cash equivalents
provided by operating
activities
                                                                   
Net income
attributable to         185,585         208,673      545,618       630,997
owners of the parent
Add (less)
Depreciation and        32,445          23,241       84,240        69,175
amortization
Net income
attributable to         17,773          30,862       48,721        77,890
non-controlling
interest
Deferred income tax     4,396           23,269       17,175        48,065
Accretion expense of
the provision for       988             1,417        3,405         4,169
closure of mining
units
Loss from currency      (527      )     529          254           1,352
exchange differences
Share in the results
of associates, net of   (112,452  )     (107,696 )   (363,450  )   (343,853  )
dividends received in
cash
Provisions              (17,846   )     16,811       (137,589  )   (21,473   )
Provision for
estimated fair value
of embedded
derivatives related     (21,983   )     35,099       (32,076   )   44,610
of concentrates sales
and adjustments on
open liquidations
                                                                   
Net changes in
operating assets and
liabilities accounts
                                                                   
Decrease (increase)
in operating assets
Trade accounts          (17,806   )     (75,278  )   (14,560   )   (55,912   )
receivable
Other accounts          (9,298    )     26,536       (23,304   )   31,842
receivable
Other accounts
receivable from         14,205          (20,727  )   7,225         (33,277   )
associates
Inventory               (3,723    )     (20,165  )   (16,937   )   (79,643   )
Prepaid expenses        (21,512   )     11,704       (26,747   )   14,120
                                                                   
Increase (decrease)
of operating
liabilities
Trade accounts          23,621          15,703       31,424        10,274
payable
Other accounts          44,218          (46,357  )   163,433       (47,761   )
payable
Income tax payable      (192      )     18,974       (28,030   )   17,720
                                                             
                                                                   
Net cash and cash
equivalents provided    117,892       142,595    258,802     368,295   
by operating
activities
                                                                             

Contact:

Lima:
Compañia de Minas Buenaventura S.A.A.
Roque Benavides, 511-419-2538
Carlos Galvez, 511-419-2540
or
Investor Relations:
Daniel Dominguez, 511-419-2591
daniel.dominguez@buenaventura.pe
or
New York:
i-advize Corporate Communications, Inc.
Peter Majeski, 212-406-3694
buenaventura@i-advize.com
Visit our website:
http://www.buenaventura.com
 
Press spacebar to pause and continue. Press esc to stop.