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Buenaventura Announces First Quarter 2011 Results


News provided by

Compania de Minas Buenaventura S.A.A.

Apr 28, 2011, 07:43 ET

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LIMA, Peru, April 28, 2011 /PRNewswire/ -- 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 results for the first quarter 2011. All figures have been prepared in accordance with Peruvian GAAP 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 during the first quarter was US$218.3 million, a 40% increase when compared to the figure reported in 1Q10 (US$156.4 million), mainly due to a 171% increase in operating income.

EBITDA from Buenaventura's Direct Operations was US$205.0 million, 142% higher than the figure reported in 1Q10 (US$84.6 million), while EBITDA including Yanacocha and Cerro Verde increased 40%, from US$280.1 million in 1Q10 to US$394.6 million in 1Q11.

These results were mainly driven by an increase in gold, silver and copper sales from Buenaventura's direct operations, as well as the higher metal prices.

It is important to note the positive impact of Buenaventura's new La Zanja operation when comparing 1Q11 vs. 1Q10 operating results".

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



1Q11

1Q10

Var%

Total Revenues

375.7

201.7

86%

Operating Income

176.5

65.2

171%

EBITDA

(BVN Direct Operations)***

205.0

84.6

142%

EBITDA

(inc. Yanacocha and Cerro Verde) ***

394.6

280.1

41%

Net Income

218.3

156.4

40%

EPS*

0.86

0.61

40%


(*) As of March 31, 2011, Buenaventura had a total of 254,442,328 shares outstanding.

Operating Revenue

During 1Q11, net sales were US$363.5 million, a 94% increase when compared to the US$187.6 million reported in 1Q10. This was explained by an increase in the volume of gold, silver and copper sold, as well as higher realized prices across all metals.

Royalty income in 1Q11 decreased 13% from US$14.1 million reported in 1Q10 to US$12.3 million in 1Q11 due to lower gold volume sold at Yanacocha.


Operating Highlights

1Q11

1Q10

Var%

Net Sales

(in millions of US$)

363.5

187.6

94%

Average Realized Gold Price Gold (US$/oz)*

1,393

1,115

25%

Average Realized Gold Price (US$/oz) inc. Yanacocha

1,387

1,114

25%

Average Realized Silver Price (US$/oz)*

31.78

17.06

86%

Average Realized Lead Price (US$/MT)*

2,601

2,186

19%

Average Realized Zinc Price (US$/MT)*

2,423

2,254

7%

Average Realized Copper Price (US$/MT)*

9,642

7,288

32%


(*) Buenaventura's Direct Operations


Sales Content


1Q11

1Q10

Var%

Gold (in oz)*

120,426

98,245

23%

Gold (in oz) inc. Yanacocha

243,849

278,868

-13%

Silver (in oz)*

3,697,027

2,738,939

35%

Lead (in MT)*

2,772

5,354

-48%

Zinc (in MT)*

7,888

11,364

-31%

Copper (in MT)*

7,166

2,105

240%


(*) Buenaventura Direct Operations

Production and Operating Costs

Buenaventura's equity production(1) in 1Q11 was 116,270 ounces of gold, 19% higher than the 97,770 ounces reported in 1Q10. Silver production in 1Q11 was 3.5 million ounces, an 18% increase when compared to the figure reported in 1Q10 (3.0 million oz).


Equity Production(1)


1Q11

1Q10

Var%

Gold (oz)

116,270

97,770

19%

Gold (oz) inc. Yanacocha

242,076

282,321

-14%

Silver (oz)

3,533,975

2,988,453

18%

Lead ( MT)

3,092

4,284

-28%

Zinc ( MT)

2,608

7,451

-65%

Copper (MT) inc. Cerro Verde

18,760

15,424

22%


Orcopampa's (100% owned by Buenaventura) production from the Chipmo mine in 1Q11 was 73,570 ounces, 13% higher than the 65,130 ounces reported in 1Q10, while the old tailings treatment produced 4,954 gold ounces (compared to 6,989 ounces in 1Q10). As a consequence, total gold production in 1Q11 was 78,524 ounces, 9% higher than the 72,119 ounces reported in 1Q10. (See Appendix 2)

Cash operating cost in 1Q11 was US$373/oz, 12% higher when compared to 1Q10 (US$333/oz). This was mainly explained by the 29% decrease in gold production from the treatment of old tailings, increased consumption of support supplies and higher labor costs.

At Poracota, gold production in 1Q11 was 12,101 ounces, a decrease of 13% when compared to 1Q10 (13,929 ounces) due to an 18% decrease in the ore grade (See Appendix 2). Cash operating cost was US$982/oz, 17% higher than the figure reported in 1Q10 (US$840/oz), explained by a 27% increase in diamond drilling.

Total royalties paid to the government at both Orcopampa and Poracota in 1Q11 totaled US$2.7 million.

At Uchucchacua (100% owned by Buenaventura), total silver production in 1Q11 was 2.5 million ounces, an increase of 23% when compared to 2.0 million ounces in 1Q10, due to 21% increase in ore volume treated (See Appendix 2). Zinc production in 1Q11 was 1,902 MT, an increase of 25% from the 1,516 MT reported in 1Q10, while lead production increased 12% (1,974 MT in 1Q11 vs. 1,756 MT in 1Q10).

Cash operating cost in 1Q11 was US$14.98/oz, a 35% increase compared to US$11.12/oz in 1Q10. This increase was primarily due to a 35% rise in contractor expenses due to increased drifting work, and higher royalties paid to the government, as well as higher commercial deductions to payable silver content, in each case due to the increased price of silver.

Total royalties paid to the government at Uchucchacua in 1Q11 totaled US$1.5 million.

At Antapite (100% owned by Buenaventura), total production in 1Q11 was 8,254 ounces of gold, an increase of 17% compared to 1Q10 (7,069 ounces), mainly due to a 19% increase in ore treated (See Appendix 2).

Gold cash operating cost in 1Q11 was US$916/oz, 15% higher than in 1Q10 (US$799/oz), mainly due to an increase in labor costs.

Total royalties paid to the government at Antapite in 1Q11 totaled US$0.3 million.

La Zanja (53.06% owned by Buenaventura) total production in 1Q11 was 25,151 ounces of gold (13,345 ounces attributable to Buenaventura), while the cash operating cost was US$386/oz.

Total royalties paid to the government at La Zanja in 1Q11 totaled US$0.4 million.

At El Brocal (46.08% owned by Buenaventura), full capacity of the concentrator plant was devoted to copper ore treatment to leverage the high copper prices in 1Q11.

Copper production for 1Q11 was 7,473 MT, 249% higher than 1Q10 (2,142 MT). Copper cash cost for 1Q11 was US$3,220/MT, a 22% decrease when compared to the US$4,137/MT reported in 1Q10 due to higher by-product contribution from the silver and gold content in concentrate. Silver production in 1Q11 was 453,674 ounces, 26% lower than the 609,867 ounces produced in 1Q10.

Total royalties paid to the government at Colquijirca and Marcapunta in 1Q11 totaled US$0.8 million.

Operating Expenses

General and administrative expenses in 1Q11 were US$17.0 million, 51% higher than the figure reported in 1Q10 (US$11.3 million) due to higher administrative labor expenses.

Exploration Costs in Non-Operational Mining Sites

Exploration costs at non-operational mining sites, which include care and maintenance, in 1Q11 were US$10.6 million, a 35% increase compared to the US$7.9 million reported in 1Q10. Buenaventura's main exploration efforts were focused at the Marcapunta (US$1.9 million), La Joya (US$0.8 million) and Mallay (US$2.3 million) projects.

Operating Income

Operating income in 1Q11 was US$176.5 million, a 171% increase compared to the US$65.2 million reported in 1Q10. This increase was mainly due to the 94% increase in net sales as a result of higher average realized prices and increases in the volume of gold, silver and copper sold.

Share in Affiliated Companies

During 1Q11, Buenaventura's income from non-consolidated affiliates was US$105.7 million, 6% lower than the US$112.3 million reported in 1Q10. Yanacocha's contribution to these results decreased 32%, from US$70.6 million in 1Q10 to US$48.1 million in 1Q11, partially offset by a 39% increase in contributions from Cerro Verde, which rose from US$45.9 million in 1Q10 to US$63.9 million in 1Q11.

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), 1Q11 gold production was 288,214 ounces of gold, a decrease of 32% compared to 1Q10 (422,798 ounces) due to a 34% decline in the ore mined.

Costs applicable to sales at Yanacocha in 1Q11 were US$603/oz, 56% higher than the figure reported in 1Q10 (US$387/oz) due to higher labor costs and consumption of processing commodities (lime, grinding balls and cyanide), partially offset by lower worker's participation.

Net income at Yanacocha in 1Q11 was US$110.7 million, a 32% decrease compared to the 1Q10 figure (US$162.5 million).

During 1Q11, EBITDA totaled US$193.9 million, a decrease of 29% compared to 1Q10 (US$273.1 million). This decrease was mainly due to a 18% decline in revenues (US$380.1 million in 1Q11 vs. US$460.9 million in 1Q10) due to a 32% decrease in the volume of gold sold.

Capital expenditures at Yanacocha were US$105.4 million in 1Q11.  

CERRO VERDE

At Cerro Verde (19.26% owned by Buenaventura), 1Q11 copper production was 79,463 MT, a 6% increase when compared to 1Q10 (74,954 MT).

During 1Q11, Cerro Verde reported net income of US$367.7 million, a 54% increase when compared to US$238.6 million in 1Q10.

Capital expenditures at Cerro Verde in 1Q11 totaled US$21.0 million.

Net Income

This quarter, Buenaventura's net income was US$218.3 million (US$0.86 per share), 40% higher compared to the US$156.4 million (US$0.61 per share) reported in 1Q10. This increase was mainly due to a 171% increase in operating income, partially offset by a 32% decrease in contributions from Yanacocha.

Project Development

LA ZANJA EXPANSION

  • Pampa Verde Project. Construction will begin in 2Q11. This project includes the development of the Pampa Verde Pit, a mine waste deposit, an acid water plant and the construction of a road to connect the Pampa Verde Pit with San Pedro Sur Leach Pad Stage II. Construction will be completed in the third quarter 2012. Total investment for this project is expected to be US$32.5 million.

MANGANESE SULFATE PLANT

  • Buenaventura commenced construction of a manganese sulfate plant in 1Q11 with a total budget of US$56.0 million. The objective of this plant is to remove the manganese content in the Uchucchacua lead-silver concentrates using chemical processes.
  • The facilities will be located on the Northern Coast of Lima and include an acid washing plant, a sulfuric acid plant and a manganese sulfate plant.

TANTAHUATAY

  • Total estimated CAPEX is US$72.0 million. As of March 31, 2011, project expenditures have totaled US$44.3 million. The construction permit was obtained May 24, 2010. The mine construction progress is summarized in the following chart:

Structure

Progress as of March 31, 2011

Tantahuatay pit

58%

Waste rock deposit

56%

Waste soil deposit

96%

Top soil deposit

91%

Leaching platform

64%

Processing plant

81%


HUANZA HYDROELECTRICAL PLANT

  • As of March 31, 2011, Buenaventura's total investment in the Huanza Project was US$76.4 million, representing 58% from the entire budget. US$66.0 million of the total amount invested was financed via a leasing agreement with Banco del Credito Del Peru (Total leasing agreement: US$119.0 million).
  • Construction progress at the Huanza Project through March 31, 2011 was as follows:
  • Water Conduction Tunnel: 4,462m were completed, representing 44% of scheduled construction.
  • Powerhouse: excavation was completed and the first shipment of electromechanical equipment arrived.
  • Pallca Dam: excavation was completed and is ready to start with the concrete base construction.

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 and Recuperada). Buenaventura also has a controlling interest in three mining companies (El Brocal, La Zanja and CEDIMIN) as well as a minority interest in several other mining companies in Peru. The Company owns 43.65% of Minera Yanacocha S.R.L. (a partnership with Newmont Mining Corporation), an important precious metal producer, 19.26% of Sociedad Minera Cerro Verde, an important Peruvian copper producer, and 49% of Canteras del Hallazgo S.A, which owns the Chucapaca project.

For a printed version of the Company's 2009 Form 20-F, please contact the persons indicated on the first page of this release, or download a PDF format file from the Company's web site.

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.

Endnotes:

*** In this release, Buenaventura presents financial measures in accordance with Peruvian GAAP and also on a non-GAAP basis.  EBITDA (Buenaventura Direct Operations) and EBITDA (including Yanacocha and Cerro Verde) included in this release are non-GAAP financial measures. Please see the consolidated financial information below for information reconciling non-GAAP financial measures to comparable Peruvian GAAP financial measures.

**Tables to follow**

APPENDIX 1


Equity Participation in

Subsidiaries and Affiliates


BVN

Operating


Equity %

Mines / Business

Cedimin S.A.C*

100.00

Shila / Paula

Consorcio Energetico de Huancavelica S.A*

100.00

Energy

Buenaventura Ingenieros S.A*

100.00

Engineering Consultant

Minera La Zanja S.A*

53.06

La Zanja

Sociedad Minera El Brocal S.A.A*

46.08

Colquijirca and Marcapunta Project

Canteras del Hallazgo S.A **

49.00

Chucapaca Project

Compania Minera Coimolache S.A **

40.09

Tantahuatay Project

Minera Yanacocha S.R.L **

43.65

Yanacocha

Sociedad Minera Cerro Verde S.A.A **

19.26

Cerro Verde


(*)Consolidates

(**) Equity Accounting

APPENDIX 2











GOLD PRODUCTION









Three Months Ended March 31


Orcopampa

Poracota


2011

2010

%

2011

2010

%

Ore Milled  DST

125,467

107,296

17%

60,425

54,663

11%

Ore Grade OZ/ST

0.62

0.61

0%

0.24

0.30

-18%

Recovery Rate %

95.4%

95.6%


82.1%

85.3%


Ounces Produced

73,570

65,130

13%

12,101

13,929

-13%








Orcopampa Old Tailings


1Q11

4,954

1Q10

6,989


Orcopampa Total Production

1Q11

78,524

1Q10

72,119










Three Months Ended March 31


Antapite

La Zanja


2011

2010

%

2011

2010

%

Ore Milled  DST

35,846

30,005

19%




Ore Grade OZ/ST

0.24

0.24

-1%




Recovery Rate %

95.6%

96.4%





Ounces Produced

8,254

7,069

17%

25,151

0










SILVER PRODUCTION









Three Months Ended March 31


Uchucchacua

El Brocal


2011

2010

%

2011

2010

%

Ore Milled  DST

278,978

229,729

21%

635,320

359,469


Ore Grade OZ/ST

12.60

12.63

0%

1.35

2.43


Recovery Rate %

71.0%

70.2%


53.0%

65.9%


Ounces Produced

2,501,813

2,037,956

23%

453,674

574,654

-21%









ZINC PRODUCTION









Three Months Ended March 31


Uchucchacua

Colquijirca


2011

2010

%

2011

2010

%

Ore Milled  DST

278,978

229,729

21%


359,469


Ore Grade %

1.33

1.48

-10%


0.05


Recovery Rate %

55.9%

48.5%



73.0%


ST Produced

2,097

1,671

25%


13,118


APPENDIX 3

EBITDA RECONCILIATION (in thousand US$)







1Q11

1Q10

Net Income

239,094

165,147

Add / Subtract:



Provision for income tax, net

45,539

15,908

Share in associated companies by the equity method, net

(105,705)

(112,254)

Interest income

(3,335)

(3,695)

Interest expense

2,145

2,486

Loss on currency exchange difference

798

754

Other, net

(2,067)

(3,164)

Depreciation and Amortization

21,393

16,559

Provision for long term officers´ compensation

0

423

Workers´ participation provision

7,158

2,415

EBITDA Buenaventura Direct Operations

205,020

84,579

EBITDA Yanacocha (43.65%)

84,638

119,201

EBITDA Cerro Verde (19.26%)

104,910

76,319

EBITDA Buenaventura inc Yanacocha and Cerro Verde

394,568

280,099

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 Yanacocha and Cerro Verde) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura's equity share of EBITDA (Yanacocha) and (2) Buenaventura's equity share of EBITDA (Cerro Verde). EBITDA (Yanacocha) and EBITDA (Cerro Verde) were similarly calculated using financial information provided to Buenaventura by Yanachocha and Cerro Verde, respectively.

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

APPENDIX 4

Compania de Minas Buenaventura S.A.A. and subsidiaries



Consolidated Balance sheet




As of March, 31 2011  and  December, 31 2010





2011


2010

Assets

US$(000)


US$(000)

Current assets




Cash and cash equivalents

663,220


600,796

Financial asset at fair value through profit and loss

50,960


50,154

Trade accounts receivable, net

120,933


160,928

Other accounts receivable

38,964


23,593

Accounts receivable from related parties

17,095


18,903

Embedded derivatives for concentrates sales

20,325


13,645

Inventory, net

100,111


82,081

Prepaid taxes and expenses

33,563


21,615

Total current assets

1,045,171


971,715





Other accounts receivable

1,517


1,538

Accounts receivable from related parties

30,700


20,736

Inventory

35,902


27,104

Prepaid taxes and expenses

1,813


12,887

Investment in associates

1,523,082


1,411,036

Mining concessions and property, plant and equipment, net

553,841


532,577

Development costs, net

82,341


86,340

Deferred income tax  asset

180,727


201,454

Other assets

5,840


6,095

Total assets

3,460,934


3,271,482





Liabilities and shareholders’ equity, net




Current liabilities




Trade accounts payable

74,284


91,374

Income tax payable

25,311


26,538

Dividends

106,065


917

Other liabilities

93,633


114,921

Accounts payable from related parties

463


1,584

Hedge derivative financial instruments

12,044


16,291

Financial obligations

2,009


2,018

Total current liabilities

313,809


253,643





Other  long-term liabilities

100,872


116,214

Accounts payable from related parties

1,387


1,370

Financial obligations

66,534


55,134

Hedge derivative financial instruments

6,662


6,897

Deferred income tax  liabilities

19,410


21,152

Total liabilities

508,674


454,410





Shareholders’ equity net








Capital stock, net of treasury shares

750,540


750,540

of US$62,622,000 in the year 2011 y 2010




Investments shares, net of treasury shares

2,019


2,019

of US$142,000 in the year 2011 y 2010




Additional  paid-in capital

225,978


225,978

Legal reserve

162,639


162,633

Other reserves

269


269

Retained earnings

1,616,220


1,481,855

Cumulative translation loss

(34,075)


(34,075)

Cumulative unrealized, gain (loss)

(5,595)


(6,875)


2,717,995


2,582,344

Minority interest

234,265


234,728

Total shareholders’ equity, net

2,952,260


2,817,072





Total liabilities and shareholders’ equity, net

3,460,934


3,271,482





Compania de Minas Buenaventura S.A.A. and subsidiaries




Consolidated Statements of income




For the three month period ended March 31, 2011 and March 31, 2010








For the three month period ended March, 31  


2011


2010


US$(000)


US$(000)

Operating income




Net sales

363,480


187,609

Royalty income

12,267


14,127

Total income

375,747


201,736





Operating costs




Cost of sales, excluding depreciation and amortization

111,512


71,811

Explorations in operating areas

22,259


18,334

Depreciation and amortization

21,393


16,559

Total operating costs

155,164


106,704

Gross income

220,583


95,032





Operating expenses




Administrative expenses

16,982


11,279

Explorations in non-operating areas

10,604


7,855

Royalties

14,323


8,654

Sales expenses

2,205


2,062

Total operating expenses

44,114


29,850





Operating income

176,469


65,182





Other income (expenses), net




Share in associated companies by the equity method, net

105,705


112,254

Interest income

3,335


3,695

Interest expense

(2,145)


(2,486)

Loss on currency exchange difference

(798)


(754)

Other, net

2,067


3,164

Total other income, net

108,164


115,873









Income before  income tax  and minority interest

284,633


181,055





Provision for income tax, net

(45,539)


(15,908)





Net income

239,094


165,147





Net income attributable to  minority interest

(20,762)


(8,747)





Net income attributable to  Buenaventura

218,332


156,400





Basic and diluted earnings per share attributable to




Buenaventura, stated in U.S. dollars

0.86


0.61









Weighted average number of shares outstanding (in units)

254,442,328


254,442,328

Compania de Minas Buenaventura S.A.A. and subsidiaries



Consolidated Statements of cash flows



For the three month period ended March 31, 2011 and March 31, 2010







For the three month period ended March, 31  


2011

2010


US$(000)

US$(000)

Operating activities



Proceeds from sales

396,795

222,166

Royalties received

14,150

17,672

Interest received

2,480

1,048

Value Added Tax recovered

4,035

2,301

Payments to suppliers and third parties

(209,375)

(105,631)

Payments to employees

(58,454)

(41,406)

Payment of royalties

(15,573)

(11,340)

Income tax paid

(30,232)

(17,996)

Payments of interest

(576)

(2,478)

Net cash and cash equivalents provided by  operating activities

103,250

64,336




Investment activities



Proceeds from sales of plant and equipment


601

Additions to mining concessions, property, plant and equipment

(41,348)

(54,452)

(Increase) decrease in time deposit

14,833

(18,930)

Payments for purchase of investments shares

(9,079)

(5,302)

Disbursements for development activities

(1,786)

(2,458)

Net cash and cash equivalents used in investment activities

(37,380)

(80,541)




Financing activities



Increase in financial obligations

11,387

11,606

Dividends paid to minority shareholders of subsidiary


(4,840)

Payments of long-term debt


(215,216)

Net cash and cash equivalents provides by (used in) financing activities

11,387

(208,450)




Increase (decrease) in cash and cash equivalents during the period, net

77,257

(224,655)

Cash and cash equivalents at beginning of period

582,861

714,454




Cash and cash equivalents at period-end

   660,118

   489,799











For the three month period ended March, 31  


2011

2010


US$(000)

US$(000)

Reconciliation of net income to cash and cash equivalents provided by (used in) operating activities


Net income

     218,332

     156,400

Add (less)



Depreciation and amortization

       21,393

       16,559

Net income attributable to minority interest

       20,762

         8,747

Provision for estimated fair value of embedded derivatives related to sales of concentrates

       (6,680)

         4,126

Deferred income tax

       17,531

         2,956

Loss  on currency exchange differences

            798

            754

Provision for long term officers’ compensation

-

            423

Share in associates companies by the equity method, net of dividends received in cash

   (105,705)

   (112,254)

Adjustment to present value of mining-units closure provision

         1,568

       (2,071)

Allowance for doubtful trade accounts receivable

              -  

              -  

Net cost of equipment sold



Income from release of commitment related to commercial contracts

              -  

              -  

Decrease of allowance for impairment of inventories

       (1,783)

          (105)




Net changes in operating assets and liabilities accounts






Decrease (increase) of operating assets



Trade accounts receivable, net

       39,995

       29,582

Other accounts receivable

     (21,774)

         5,634

Accounts receivable from related parties

       (8,156)

         3,545

Inventory

     (26,828)

       (7,672)

Prepaid taxes and expenses

          (875)

       (4,619)




Increase  (decrease) of operating liabilities



Trade accounts payable

     (17,090)

       13,552

Income tax payable

       (1,227)

     (14,409)

Other liabilities

     (27,011)

     (36,812)




Net cash and cash equivalents provided by operating activities

   103,250

     64,336

(1)Production includes 100% of Buenaventura's operating units, 100% of CEDIMIN, 53.06% of La Zanja and 46.08% of El Brocal.

Visit our website:

http://www.buenaventura.com

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: [email protected]

Contacts in New York:
Peter Majeski
i-advize Corporate Communications, Inc.
Tel: (212) 406-3694
Email: [email protected]

SOURCE Compania de Minas Buenaventura S.A.A.

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