Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Buenaventura Profit Misses Estimates on Metals Slide

Cia. de Minas Buenaventura SA, Peru’s biggest precious-metals producer, said second-quarter profit declined 23 percent on falling metals prices and rising costs, missing analysts’ estimates.

Net income fell to $152.6 million, or 60 cents a share, from $197.6 million, or 78 cents, in the year earlier, Lima-based Buenaventura said today in an e-mailed statement. Analysts expected profit of 77 cents a share excluding some items, the average of three estimates compiled by Bloomberg.

Freeport-McMoRan Copper & Gold Inc.’s Cerro Verde copper mine, in which Buenaventura holds a 18 percent stake, and the company’s Soc. Minera El Brocal SAA unit contributed less to Buenaventura’s earnings on lower copper, silver and zinc prices, said Inteligo SAB analyst Lali Merino, who doesn’t own Buenaventura shares.

“The drop in prices and copper production decline offset the higher price of gold,” Merino said in a telephone interview from Lima before the report was released. “Costs were also an issue.”

She rates the stock a buy.

Income from Buenaventura’s Cerro Verde stake fell 49 percent to $33.9 million. Newmont Mining Corp.’s Yanacocha gold mine, in which Buenaventura holds a 44 percent stake, contributed $86.6 million toward earnings, up 33 percent from a year earlier.

Falling Prices

Revenue rose 2 percent to $350.5 million. Gold production climbed 3 percent to 277,394 ounces, while copper output fell 20 percent, Buenaventura said. Silver output gained 32 percent to 4.5 million ounces. New York-traded copper and silver futures dropped 14 percent and 21 percent from a year earlier, respectively, while gold rose 7 percent.

General and administrative expenses jumped 28 percent to $25 million, while exploration spending more than doubled to $26.4 million.

Gold futures for December delivery fell 0.6 percent to 1,614.60 an ounce today on the Comex in New York. Silver dropped 0.4 percent to $27.914.

The report was released after the close of regular trading today. Buenaventura’s American depositary receipts, each representing one ordinary share, fell 68 cents, or 1.8 percent, to close at $36.42 in New York. The ADRs have dropped 5 percent this year.

(Buenaventura will hold its quarterly conference call Aug. 1 at 11 a.m. New York time. To call from outside the U.S.: 1-973-582-2710, Code: 95064617. For U.S. participants: 1-888-693-3477.)

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.