Buenaventura Announces Fourth Quarter and Full Year 2012 Results
Buenaventura Announces Fourth Quarter and Full Year 2012 Results
Business Wire
LIMA, Peru -- February 28, 2013
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 fourth 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 fourth quarter was US$139.1 million, 39% lower than the
figure reported in 4Q11 (US$227.9 million). EBITDA from Buenaventura’s Direct
Operations was US$130.2 million, 32% lower than the figure reported in 4Q11
(US$192.1 million), while EBITDA including Affiliates decreased 33%, from
US$421.7 million in 4Q11 to US$281.5 million in 4Q12.
These results were mainly explained by lower volume of gold sold, higher
operating costs, exploration efforts and decreased contributions from
affiliates.
Financial Highlights (in millions of US$, except EPS figures):
4Q12 4Q11 Var FY 2012 FY 2011 Var
Total 424.2 402.3 5% 1,563.5 1,556.6 0%
Revenues
Operating 86.7 164.0 -47% 418.2 704.4 -41%
Income
EBITDA
Direct 130.2 192.1 -32% 569.9 835.4 -32%
Operations
EBITDA
Including 281.5 421.7 -33% 1,438.8 1,681.3 -14%
Affiliates
Net Income 139.1 227.9 -39% 684.7 858.9 -20%
EPS 0.55 0.90 -39% 2.69 3.38 -20%
(*) As of December 31, 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 Revenues
During 4Q12, net sales were US$411.6 million, a 7% increase compared to the
US$385.0 million reported in 4Q11. This was explained by higher sales content
of all metals, except gold.
Royalty income decreased 28% to US$12.6 million in 4Q12 from the US$17.4
million reported in 4Q11 due to lower revenues at Yanacocha.
Operating 4Q12 4Q11 Var FY 2012 FY 2011 Var
Highlights % %
Net Sales
(million of 411.6 385.0 7% 1,496.3 1,493.9 0%
US$)
Average Gold
Price
(US$/oz.) 1,713 1,690 1% 1,679 1,574 7%
Direct
Operations
Average Gold
Price
(US$/oz.) inc 1,714 1,684 2% 1,669 1,577 6%
Yanacocha &
Coimolache
Average Silver
Price 32.64 32.40 1% 31.25 35.40 -12%
(US$/oz.)
Average Lead 2,203 1,991 11% 2,065 2,262 -9%
Price (US$/MT)
Average Zinc 1,947 1,905 2% 1,919 2,200 -13%
Price (US$/MT)
Average Copper 7,899 7,524 5% 7,937 8,568 -7%
Price (US$/MT)
(*)
Buenaventura’s
Direct
Operations
Sales Content
4Q12 4Q11 Var FY 2012 FY 2011 Var
% %
Gold Oz Direct 92,454 122,833 -25% 439,816 505,894 -13%
Operations
Gold Oz inc
Yanacocha & 212,469 270,728 -22% 1,078,826 1,145,603 -6%
Tantahuatay
Silver Oz 5,507,511 4,366,347 26% 17,474,113 14,843,193 18%
Lead MT 5,518 3,857 43% 25,589 18,192 41%
Zinc MT 5,267 4,041 30% 43,180 33,307 30%
Copper MT 12,028 7,516 60% 22,373 23,231 -4%
(*)
Buenaventura’s
Direct
Operations
Accumulated net sales in 2012 were US$1,496.3 million, in-line with the figure
reported in 2011, while royalty income was US$67.2 million, a 7% increase
compared to the US$62.7 million reported in 2011.
Production and Operating Costs
Buenaventura’s equity production^1 in 4Q12 was 108,489 ounces of gold, 13%
lower than the 124,504 ounces reported in 4Q11 mainly due to a decrease in
Orcopampa production. Silver production, including affiliates, in 4Q12 was 4.6
million ounces, a 12% increase when compared to the figure reported in 4Q11
(4.1 million oz.).
Equity production^1 in 2012 was 446,443 ounces of gold and 18.3 million ounces
of silver. This represented a 6% decrease in gold production (475,770 oz. in
2011), and a 12% increase in silver production compared to 2011 (16.2 million
oz.).
Equity Production ^1
4Q12 4Q11 Var% FY 2012 FY 2011 Var%
Gold (oz)
Direct 108,489 124,504 -13% 446,443 475,770 -6%
Operations
Gold (oz)
inc. 211,448 270,659 -22% 1,033,969 1,040,218 -1%
Affiliates
Silver
(oz) inc. 4,593,711 4,107,467 12% 18,262,156 16,243,279 12%
Affiliates
Lead ( MT) 5,844 3,475 68% 25,345 17,444 45%
Zinc ( MT) 6,787 3,151 115% 39,139 22,621 73%
Copper
(MT) inc. 20,670 16,980 22% 66,221 69,873 -5%
Affiliates
Orcopampa’s (100% owned by Buenaventura) total gold production in 4Q12 was
59,779 ounces, 16% lower than the 71,296 ounces reported in 4Q11. Production
from the Chipmo mine during 4Q12 was 55,652 ounces, 15% lower compared to the
65,788 ounces reported in 4Q11 due to a 9-day strike in October (See Appendix
2). The old tailings treatment produced 4,128 ounces of gold (compared to
5,508 oz. in 4Q11). Accumulated total gold production in 2012 was 260,378
ounces, a 9% decrease when compared to 2011 (285,201 oz.).
Cash operating cost in 4Q12 was US$714/oz., 51% higher when compared to 4Q11
(US$472/oz.). This was mainly explained by lower gold production and higher
contractor expenses due to greater exploration efforts. Cash cost during 2012
was US$559/oz.
At Uchucchacua (100% owned by Buenaventura), total silver production in 4Q12
was 3.01 million ounces, 8% higher when compared to 2.79 million ounces in
4Q11 due to a 5% increase in the recovery rate (See Appendix 2). Zinc
production in 4Q12 was 2,931 MT, 43% higher than the figure reported in 4Q11
(2,047 MT), while lead production increased 25% (2,556 MT in 4Q12 vs. 2,051 MT
in 4Q11). During 2012, silver production was 11.3 million ounces; zinc
production was 9,820 MT, while lead production was 8,742 MT vs. 10.1 million
ounces, 6,668 MT and 7,546 MT, respectively, in 2011.
Cash operating cost in 4Q12 was US$16.57/oz., in-line with the figure reported
in 4Q11 (US$16.35/oz.). Cash cost during 2012 was US$16.97/oz. (US$16.27/oz.
in 2011).
At Julcani (100% owned by Buenaventura), total production in 4Q12 was 615,712
ounces of silver, 1% higher compared to 4Q11 (611,711 ounces). During 2012,
silver production was 2.4 million ounces, similar to the figure reported in
2011.
Silver cash operating cost in 4Q12 was US$14.38/oz., 15% higher than 4Q11
(US$12.52/oz.), mainly due to an increase in energy supply expenses. Cash cost
during 2012 was US$13.5/oz.
Breapampa (100% owned by Buenaventura) commenced operations in November. Total
production in 4Q12 was 8,817 ounces of gold.
La Zanja (53.06% owned by Buenaventura) total production in 4Q12 was 28,670
ounces of gold, a 13% decrease when compared to 4Q11 (32,857 oz.). Accumulated
gold production in 2012 was 112,387 ounces, 16% lower than 2011 (134,190 oz.),
but in-line with La Zanja’s mining plan.
Cash operating cost in 4Q12 was US$753/oz., 63% higher than 4Q11 (US$463/oz.)
due to an increase in supply costs (mainly explained by an increase of reagent
consumption and prices). Cash cost during 2012 was US$622/oz.
Tantahuatay (40.04% owned by Buenaventura) total production in 4Q12 was 35,340
ounces of gold (14,150 oz. attributable to Buenaventura). During 2012, gold
production was 141,268 ounces (56,564 oz. attributable to Buenaventura). Cash
operating cost in 4Q12 was US$393/oz and US$402/oz for 2012.
At El Brocal (53.76% owned by Buenaventura), total plant capacity was devoted
to treat copper ores during 4Q12.
Copper production was 13,166 MT, 68% higher than the 7,852 MT reported in
4Q11. For 2012, copper production increased 2% (24,218 MT in 4Q12 versus
23,796 MT in 4Q11). Copper cash cost was US$5,198/MT, 26% higher than 4Q11
(US$4,135/MT).
Silver production decreased 56% from 420,329 ounces in 4Q11 to 185,231 ounces
in 4Q12.
During 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 5%, from 2.9 million ounces in 2011 to 3.1 million ounces in 2012.
Lead production was 12,329 MT in 2012, 30% higher than 2011 (9,504 MT).
General and Administrative Expenses
General and administrative expenses in 4Q12 were US$21.6 million, 32% higher
than the figure reported in 4Q11 (US$16.3 million). This figure included
US$6.0 million in metallurgical research studies. For 2012, general and
administrative expenses were US$99.3 million versus US$75.2 million in 2012
(an increase of 32%).
Operating Income
Operating income in 4Q12 was US$86.7 million, a 47% decrease compared to the
US$164.0 million reported in 4Q11. This decrease was mainly due to a 53%
increase in operating costs and exploration expenses, while revenues increased
5%. It is important to mention that during 4Q12, El Brocal purchased US$18.0
million in copper concentrates to blend with Marcapunta copper concentrates,
which negatively impacted operational costs and margins.
For 2012, operating income was US$418.2 million versus US$704.4 million in
2012 (a decrease of 41%).
Share in Associated Companies
During 4Q12, Buenaventura’s share in associated companies was US$89.9 million,
28% lower than the US$124.5 million reported in 4Q11. Yanacocha’s contribution
to these results decreased 63%, from US$86.8 million in 4Q11 to US$32.4
million in 4Q12, while Cerro Verde’s contribution decreased 28% from US$40.0
million in 4Q11 to US$28.6 million in 4Q12. Coimolache (Tantahuatay mine)
results partially offset this decrease with a 44% higher contribution (US$8.8
million in 4Q12 vs. US$6.1 million in 4Q11).
For 2012, Buenaventura’s share in associated companies was US$464.2 million,
in-line with the figure reported in 2012.
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), 4Q12 gold production was 235,875
ounces of gold, 30% lower than 4Q11 production (334,833 oz.). Accumulated gold
production in 2012 was 1,345,992 ounces, 4% higher than 2012 (1,293,123 oz.).
Costs applicable to sales (CAS) at Yanacocha in 4Q12 were US$635/oz., 19%
higher than the figure reported in 4Q11 (US$533/oz.) due to lower production.
Net income at Yanacocha in 4Q12 was US$75.7 million, 62% lower compared to
4Q11 (US$199.2 million). Accumulated net income in 2012 was US$626.5 million,
2% lower than 2011 (US$642.4 million).
During 4Q12, EBITDA totaled US$186.0 million, a 49% decrease compared to 4Q11
(US$362.0 million). This decrease was mainly due to a 29% decrease in sales.
Accumulated EBITDA in 2012 was US$1,241.8 million, 6% higher than 2012
(US$1,167.4 million).
Capital expenditures at Yanacocha were US$172.5 million in 4Q12 and US$995.0
in 2012.
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 4Q12 copper production was
68,874 MT, a 4% increase compared to 4Q11 (65,958 MT). Accumulated total
copper production in 2012 was 269,649 MT, 8% lower than 293,581 MT in 2012.
During 4Q12, Cerro Verde reported net income of US$146.2 million, a 28%
decrease compared to US$202.6 million in 4Q11. This was mainly due to an 11%
decrease in sales revenues (US$501.0 million in 4Q12 versus US$565.0 million
in 4Q11). Accumulated net income in 2012 was US$772.1 million, 28% lower than
US$1,078.4 million in 2012.
Capital expenditures at Cerro Verde in 4Q12 totaled US$200.0 million and
US$600.8 in 2012.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.04% owned by Buenaventura), attributable contribution was
US$8.8 million (US$6.1 million in 4Q11). For 2012, attributable contribution
was US$40.2 million (US$9.6 million in 2012).
CANTERAS DEL HALLAZGO (Chucapaca project)
At the Chucapaca Project (49% owned by Buenaventura), a value-engineering
phase was initiated to improve the project’s economic returns of after the
completion of a Feasibility Study. Additional studies will be directed towards
evaluating potential options, including underground and combined open-pit and
underground mining scenarios, a review of capital costs and capital
efficiencies, along with re-commencement of an exploration phase at the
Chucapaca Area of Interest (AOI).
In 2012, Buenaventura’s total disbursement at the Chucapaca project was
US$32.4 million.
Net Income
Buenaventura’s 4Q12 net income was US$139.1 million (US$0.54 per share), a 39%
decrease compared to the US$227.9 million (US$0.90 per share) reported in
4Q11. Accumulated net income in 2012 was US$684.7 million (US$2.69 per share),
20% lower compared to 2012 (US$858.9 million).
Project Development
LA ZANJA DEVELOPMENT PROGRAM
* The 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$74.2 million. Completion is expected in 3Q13.
* Engineering for slope stability was developed during 4Q12.
RIO SECO MANGANESE SULFATE PLANT
* Buenaventura continued with the construction of the manganese sulfate
plant. The project’s total budget is US$ 90.0 million.
* The project includes an acid leaching facility, a sulfuric acid production
plant and a manganese sulfate crystallization plant.
* The Company has started the commissioning process for the project’s main
equipment.
HUANZA HYDROELECTRICAL PLANT
* Construction progress at the Huanza Project included:
1. Water Conduction Tunnel: 10,074 meters of excavation is
100% complete
2. Power plant: civil work is 100% complete
3. Pallca Dam: 100% complete
4. Construction of electromechanical equipment is nearly
complete
5. Commissioning of the Pallca Dam began February 26, 2013 and
will continue on different sections on a progressive basis
Other Information
At the Board of Directors meeting held February 28, 2013, the following
resolutions were passed:
To call for the Annual Shareholders Meeting to be held March 26, 2013 to:
• Approve the financial statements as of December 31, 2012
• Approve the 2012 Annual Report
• Approve a cash dividend of US$0.30 per share or ADS to be paid in U.S.
currency.
• Approve a simplification of corporate structure by absorbing wholly-owned
subsidiaries CEDIMIN SAC and Inversiones Colquijirca S.A.
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*, Breapampa*, Mallay*, 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
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, 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 December 31 Full Year
Orcopampa Orcopampa Old Tailings Orcopampa Orcopampa Old Tailings
2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 %
Ore
Milled 122,177 130,685 -7% 508,646 499,728 2%
DST
Ore
Grade 0.48 0.53 -11% 0.49 0.55 -11%
OZ/ST
Recovery 95.6% 94.3% 1% 95.9% 94.7% 1%
Rate %
Ounces 55,652 65,788 -15% 4,128 5,508 -25% 240,134 260,958 -8% 20,245 24,243 -16%
Produced
Orcopampa Total 4Q12 59,780 4Q11 71,296 FY2012 260,379 FY2011 285,201
Production
LA ZANJA Tantahuatay
4Q12 4Q11 % FY2012 FY2011 % 4Q12 4Q11 % FY2012 FY2011 %
Ounces 28,670 32,857 -13% 112,387 134,190 -16% 35,340 29,895 18% 141,268 46,164 206%
Produced
SILVER PRODUCTION
Three Months Ended December 31 Full Year
Uchucchacua Colquijirca Uchucchacua Colquijirca
2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 %
Ore
Milled 292,481 294,754 -1% 1,156,655 1,086,123 6% 2,177,003 929,032 134%
DST
Ore
Grade 12.70 13.07 -3% 13.00 13.00 0% 2.16 2.67 -19%
OZ/ST
Recovery 81.1% 71.6% 13% 74.9% 71.2% 5% 56.5% 76.1% -26%
Rate %
Ounces 3,012,187 2,788,798 8% 11,263,322 10,090,936 12% 2,655,961 1,876,503 42%
Produced
ZINC PRODUCTION
Three Months Ended December 31 Full Year
Uchucchacua Colquijirca Uchucchacua Colquijirca
2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 %
Ore
Milled 292,481 294,754 -1% 1,156,655 1,086,123 6% 2,177,003 929,032 134%
DST
Ore 1.63 1.46 12% 1.51 1.31 15% 2.73 3.89 -30%
Grade %
Recovery 67.8% 52.3% 30% 62.0% 51.7% 20% 64.8% 71.9% -10%
Rate %
ST 3,231 2,257 43% 10,825 7,350 47% 38,525 25,968 48%
Produced
APPENDIX 3: EBITDA RECONCILIATION (in thousand US$)
4Q12 4Q11 FY 2012 FY 2011
Net Income 148,451 251,591 742,790 960,478
Add / Subtract: -18,262 -59,502 -172,892 -125,113
Provision for 28,252 35,467 142,594 211,589
income tax, net
Share in
associated
companies by the -89,935 -124,510 -464,239 -468,363
equity method,
net
Interest income -1,725 -4,575 -9,486 -11,827
Interest expense 3,608 6,740 8,290 11,823
Loss on currency
exchange -1,969 -677 -1,715 675
difference
Long Term
Compensation -5,592 -5,982 1,720 -5,982
provision
Depreciation and 38,803 27,206 123,043 96,381
Amortization
Workers´
participation 6,679 6,829 23,284 40,591
provision
Impairment of 3,617 0 3,617 0
Long-Lived Assets
EBITDA
Buenaventura 130,189 192,089 569,898 835,365
Direct Operations
EBITDA Yanacocha 81,185 158,028 542,067 509,554
(43.65%)
EBITDA Cerro 53,276 59,018 256,050 316,756
Verde (19.58%)
EBITDA Coimolache 16,836 12,606 70,793 19,618
(40%)
EBITDA
Buenaventura + 281,486 421,741 1,438,808 1,681,293
All 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). 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: PROVEN AND PROBABLE RESERVES
GOLD
% DST (000) Grade Oz Attributable
Ownership (Oz/TCS) (000)
Orcopampa 100.00 1,091 0.421 459 459
Julcani 100.00 425 0.017 7 7
Shila - 100.00 8 0.397 3 3
Paula
Antapite 100.00 48 0.300 14 14
Ishihuinca 100.00 13 0.334 4 4
Poracota 100.00 36 0.332 12 12
Yanacocha 43.65 220,778 0.027 5,907 2,578
Yanacocha 43.65 590,855 0.021 12,582 5,492
(Conga)
El Brocal
Marcapunta 53.76 20,016 0.010 204 110
(Sulphides)
La Zanja 53.06 24,795 0.018 437 232
La Zanja 53.06 40 21
(on Pads)
Tantahuatay 40.00 24,428 0.019 464 185
(Oxides)
Tantahuatay
(Oxides on 40.00 14,845 0.004 64 26
Leach Pad)
Breapampa 100.00 5,133 0.038 197 197
Mallay 100.00 288 0.026 8 8
Total 902,759 0.023 20,402 9,348
SILVER
% DST (000) Grade Oz Attributable
Ownership (Oz/TCS) (000)
Orcopampa 100.00 1,091 0.54 589 589
Poracota 100.00 36 0.08 3 3
Uchucchacua
(Silver - 100.00 4,661 13.45 62,682 62,682
Sulphides)
Uchucchacua
(Zinc 100.00 670 5.09 3,409 3,409
-Sulphides)
Uchucchacua
(Silver - 100.00 355 16.93 6,008 6,008
Oxides)
Julcani 100.00 425 18.56 7,879 7,879
Recuperada 100.00 114 8.80 1,007 1,007
Antapite 100.00 48 0.22 11 11
Shila - 100.00 8 0.92 8 8
Paula
El Brocal
(Tajo Norte 53.76 63,333 0.76 48,262 25,946
- La Llave)
El Brocal
Marcapunta 53.76 20,016 0.47 9,442 5,076
(Sulphides)
Breapampa 100.00 5,133 0.73 3,750 3,750
La Zanja 53.06 24,795 0.21 5,156 2,736
La Zanja 53.06 3,267 1,734
(on Pads)
Tantahuatay 40.00 24,428 0.24 5,762 2,305
(Oxides)
Tantahuatay
(Oxides on 40.00 14,845 0.44 6,517 2,607
Leach Pad)
Yanacocha 43.65 590,855 0.06 37,784 16,493
(Conga)
Mallay 100.00 288 10.87 3,133 3,133
Total 751,101 0.27 204,669 145,376
ZINC
% DST (000) Grade % ST Attributable
Ownership (000)
Mallay 100.00 288 7.09 20 20
Uchucchacua
(Silver - 100.00 4,661 1.35 63 63
Sulphides)
Uchucchacua
(Zinc - 100.00 670 5.57 37 37
Sulphides)
Recuperada 100.00 114 7.05 8 8
El Brocal
(Tajo Norte 53.76 63,333 2.40 1,520 817
- La Llave)
Total 69,066 2.39 1,648 945
LEAD
% DST (000) Grade % ST Attributable
Ownership (000)
Julcani 100.00 425 1.88 8 8
Uchucchacua
(Silver - 100.00 4,661 0.97 45 45
Sulphides)
Uchucchacua
(Zinc 100.00 670 3.87 26 26
-Sulphides)
Mallay 100.00 288 6.24 18 18
Recuperada 100.00 114 4.04 5 5
El Brocal
(Tajo Norte 53.76 63,333 0.80 507 272
- La Llave)
Total 69,491 0.88 609 374
COPPER
% DST (000) Grade % ST Attributable
Ownership (000)
Julcani 100.00 425 0.50 2 2
Cerro Verde 19.58 4,194,537 0.37 15,520 3,039
(Sulphides)
Cerro Verde 19.58 530,850 0.50 2,654 520
(Oxides)
Yanacocha 43.65 590,855 0.28 1,648 719
(Conga)
El Brocal
Marcapunta 53.76 20,016 1.99 398 214
(Sulphides)
Total 5,336,683 0.38 20,222 4,493
MOLYBDENUM
% DST (000) Grade % ST Attributable
Ownership (000)
Cerro Verde 19.58 4,194,537 0.01 587 115
(Sulphides)
Total 4,194,537 0.01 587 115
Prices used for Reserves Calculation:
Gold US$1,400 /Oz - Silver US$30 /Oz - Zinc US$2,028 /MT - Lead US$2,000 /MT Copper -
US$6,600 /MT
APPENDIX 5
Compañía de Minas Buenaventura S.A.A. and subsidiaries
Consolidated Statement of Financial Position
As of December 31, 2012 and 2011
2012 2011
Assets US$(000) US$(000)
Current assets
Cash and cash equivalents 186,712 480,968
Financial assets at fair value through profit 54,509 52,178
or loss
Trade accounts receivable, net 256,431 172,569
Other accounts receivable 108,568 48,521
Accounts receivable from associates 22,534 47,425
Derivative financial instruments - 1,283
Inventory, net 163,067 149,108
Prepaid expenses 11,837 16,234
Total current assets 803,658 968,286
Other accounts receivable 6,702 5,570
Other accounts receivable from associates 33,377 32,262
Long-term inventory 55,937 48,845
Investment in associates 2,436,237 1,935,004
Mining concessions, development cost and 1,134,276 830,997
property, plant and equipment, net
Deferred income tax asset, net 113,343 125,538
Other assets 5,123 7,047
Total assets 4,588,653 3,953,549
Liabilities and shareholders’ equity, net
Current liabilities
Trade accounts payable 199,551 142,375
Income tax payable 7,935 36,423
Other accounts payable 59,096 41,150
Provisions 71,780 91,287
Other accounts payable to associates 890 883
Embedded derivatives for concentrates sales, 4,939 7,306
net
Financial obligations 5,815 1,042
Total current liabilities 350,006 320,466
Other non-current provisions 100,041 86,528
Other accounts payable to associates 731 1,004
Financial obligations 173,489 105,072
Total liabilities 624,267 513,070
Shareholders’ equity net
Capital stock, net of treasury shares of 750,540 750,540
US$(000) 62,622
Investments shares, net of treasury shares of 1,399 2,019
(000) US$762
Additional paid-in capital 219,471 225,978
Legal reserve 162,663 162,639
Other reserves 269 269
Retained earnings 2,566,787 2,034,768
Cumulative unrealized, gain (loss) 925 2,068
3,702,054 3,178,281
Non-controlling interest 262,332 262,198
Total shareholders’ equity, net 3,964,386 3,440,479
Total liabilities and shareholders’ equity, 4,588,653 3,953,549
net
Compañía de Minas Buenaventura S.A.A. and subsidiaries
Consolidated Income Statements
For the three and twelve month periods ended December 31, 2012 and 2011
For the three month period For the twelve month
ended December, 31 period ended December,31
2012 2011 2012 2011
US$(000) US$(000) US$(000) US$(000)
Operating
income
Net sales 411,613 384,970 1,496,349 1,493,882
Royalty income 12,557 17,367 67,178 62,742
Total income 424,170 402,337 1,563,527 1,556,624
Operating costs
Cost of sales,
without
considering (194,531 ) (123,944 ) (629,492 ) (446,163 )
depreciation
and
amortization
Exploration in
units in (55,865 ) (33,984 ) (153,018 ) (109,355 )
operation
Depreciation
and (38,803 ) (27,206 ) (123,043 ) (96,381 )
amortization
Royalties (7,547 ) (8,323 ) (37,667 ) (60,262 )
Total operating (296,746 ) (193,457 ) (943,220 ) (712,161 )
costs
Gross income 127,424 208,880 620,307 844,463
Operating
expenses
Administrative (21,643 ) (16,345 ) (99,295 ) (75,170 )
Exploring in
non-operating (22,262 ) (14,066 ) (95,491 ) (49,593 )
areas
Selling (5,809 ) (3,479 ) (18,090 ) (11,617 )
Impairment of
long-lived (3,617 ) - (3,617 ) -
assets
Excess of
workers’ profit (2,164 ) (6,221 ) (2,164 ) (6,221 )
sharing
Other operating
income 14,753 (4,733 ) 16,584 2,513
(expense), net
Total operating (40,742 ) (44,844 ) (202,073 ) (140,088 )
expenses
Operating 86,682 164,036 418,234 704,375
income
Other income
(expenses), net
Share in the
results of 89,935 124,510 464,239 468,363
associates
Interest income 1,725 4,575 9,486 11,827
Interest (3,608 ) (6,740 ) (8,290 ) (11,823 )
expense
Gain (loss)
from currency 1,969 677 1,715 (675 )
exchange
difference, net
Total other 90,021 123,022 467,150 467,692
income, net
Income before
income tax and 176,703 287,058 885,384 1,172,067
non-controlling
interest
Income tax (28,252 ) (35,467 ) (142,594 ) (211,589 )
Net income 148,451 251,591 742,790 960,478
Attributable
to:
Non-controlling 9,384 23,661 58,105 101,551
interest
Owners of the 139,067 227,930 684,685 858,927
parent
148,451 251,591 742,790 960,478
Basic and
diluted
earnings per
share
attributable to
Buenaventura,
stated in U.S. 0.54 0.90 2.69 3.38
dollars
Weighted
average number
of shares
outstanding
(common and
investment), in 254,232,571 254,442,328 254,232,571 254,442,328
units
Compañía de
Minas
Buenaventura
S.A.A. and
subsidiaries
Consolidated
Statements of
cash flows
For the three
and twelve
month periods
ended December
31, 2012 and
2011
For the three month period For the twelve month period
ended December, 31 ended December, 31
2012 2011 2012 2011
US$(000) US$(000) US$(000) US$(000)
Operating
activities
Proceeds from 352,963 417,535 1,410,120 1,505,476
sales
Royalties 21,035 18,671 76,106 56,153
received
Value Added Tax 10,779 3,225 40,940 22,585
(VAT) recovered
Dividends 5,613 - 16,467 -
received
Interest 1,700 2,525 8,606 8,528
received
Payments to
suppliers and (230,558 ) (139,264 ) (838,250 ) (672,479 )
third parties
Payments to (45,973 ) (58,381 ) (201,494 ) (164,677 )
employees
Income tax paid (29,279 ) (25,371 ) (136,336 ) (111,802 )
Payment of (9,187 ) (18,138 ) (38,985 ) (73,776 )
royalties
Payments of (206 ) (1,632 ) (1,485 ) (2,543 )
interest
Net cash and
cash
equivalents 76,887 199,170 335,689 567,465
provided by
operating
activities
Investment
activities
Decrease
(increase) in 539 (8,679 ) 10,121 7,814
time deposits
Proceeds from
sale of mining
concessions,
development 136 99 255 7,891
cost, property,
plant and
equipment
Proceeds from
sales of 3,658 - 3,658 -
investments
shares
Additions of
mining
concessions,
development (134,007 ) (139,320 ) (442,927 ) (317,816 )
cost, property,
plant and
equipment
Payments for
purchase of
investments (4,449 ) 204,943 (58,594 ) (52,182 )
shares and
contribution to
associates
Net cash and
cash
equivalents
provided by (134,123 ) 57,043 (487,487 ) (354,293 )
(used in)
investment
activities
Financing
activities
Increase in
financial 19,945 16,525 74,258 50,962
obligations
Dividend paid (50,887 ) (58,521 ) (152,666 ) (142,488 )
Dividend paid
to (5,764 ) (18,318 ) (44,881 ) (66,736 )
non-controlling
interest
Capital stock
reduction paid
to - - (7,980 ) -
non-controlling
interest
Proceeds from
sales of - - - 60,379
investments
shares
Payments for
purchase of
investments - (225,303 ) - (225,303 )
shares to
non-controlling
interest
Payments of
financial (48 ) (500 ) (1,068 ) (2,000 )
obligation
Net cash and
cash
equivalents (36,754 ) (286,117 ) (132,337 ) (325,186 )
used in
financing
activities
Decrease in
cash and cash (93,990 ) (29,904 ) (284,135 ) (112,014 )
equivalents for
the period, net
Cash and cash
equivalents at 280,702 500,751 470,847 582,861
beginning of
period
Cash and cash
equivalents at 186,712 470,847 186,712 470,847
period-end
For the three month period For the twelve month period
ended December, 31 ended December, 31
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 139,067 227,930 684,685 858,927
owners of the
parent
Add (less)
Depreciation
and 63,209 49,147 147,449 118,322
amortization
Net income
attributable to 9,384 23,661 58,105 101,551
non-controlling
interest
Deferred income (6,366 ) (5,696 ) 10,809 42,369
tax
Accretion
expense of the
provision for
closure of 3,407 4,931 6,812 9,100
mining units
and units in
exploration
Net cost of
plant and
equipment 4,120 1,858 4,120 1,858
retired and
sold
Impairment of
long-lived 3,617 - 3,617 -
assets
Loss (gain)
from currency (1,969 ) (677 ) (1,715 ) 675
exchange
differences
Share in the
results of
associates, net (84,322 ) (124,510 ) (447,772 ) (468,363 )
of dividends
received in
cash
Provisions 131,389 9,199 (6,200 ) (12,274 )
Provision for
estimated fair
value of
embedded
derivatives
related of
concentrates
sales and
adjustments on 15,484 (10,721 ) (16,592 ) 33,889
open
liquidations
Net changes in
operating
assets and
liabilities
accounts
Decrease
(increase) in
operating
assets
Trade accounts (69,302 ) 44,271 (83,862 ) (11,641 )
receivable, net
Other accounts (36,743 ) (29,290 ) (60,047 ) 2,552
receivable
Other accounts
receivable from 16,551 (6,771 ) 23,776 (40,048 )
associates
Inventory, net (4,114 ) (8,818 ) (21,051 ) (88,461 )
Prepaid 22,350 (27,364 ) (4,397 ) (13,244 )
expenses
Increase
(decrease) of
operating
liabilities
Trade accounts 25,752 40,727 57,176 51,001
payable
Other accounts (154,169 ) 19,715 9,264 (28,046 )
payable
Income tax (458 ) (8,422 ) (28,488 ) 9,298
payable
Net cash and
cash
equivalents 76,887 199,170 335,689 567,465
provided by
operating
activities
^1 Production from Direct Operations 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.
Contact:
In Lima:
Compañia de Minas Buenaventura S.A.A.
Roque Benavides, 511-419-2538
or
Carlos Galvez, 511-419-2540
or
Investor Relations:
Daniel Dominguez, 511-419-2591
daniel.dominguez@buenaventura.pe
or
In New York:
i-advize Corporate Communications, Inc.
Peter Majeski, 212-406-3694
buenaventura@i-advize.com
or
Visit our website:
http://www.buenaventura.com
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