Buenaventura Announces First Quarter 2012 Results
28.04.2012 | Business Wire
Compañia de Minas Buenaventura S.A.A. ('Buenaventura? or 'the Comments from the Chief Executive Officer: Financial Highlights (in millions of US$, except EPS figures): 1Q12 (BVN Direct Operations)? (inc. Yanacocha and Cerro Verde) ? ? Within this release, Buenaventura presents financial measures Operating Revenue Net Sales Zinc Price (US$/MT)* Production and Operating Costs Orcopampa′s(100% owned by Buenaventura) production from General and Administrative Expenses Exploration Costs in Non-Operational Mining Sites Operating Income Share in Associated Companies YANACOCHA CERRO VERDE CANTERAS DEL HALLAZGO (Chucapaca project) Net Income Project Development LA ZANJA DEVELOPMENT PROGRAM Pampa Verde Project will allow the development of a new TANTAHUATAY DEVELOPMENT PROGRAM MALLAY RIO SECO MANGANESE SULFATE PLANT BREAPAMPA HUANZA HYDROELECTRICAL PLANT * * * Company Description (1) First time adoption of International Financial Reporting Note on Forward-Looking Statements APPENDIX 1 Subsidiaries and Affiliates (as of December 31, 2011) APPENDIX 2 APPENDIX 3 Note: APPENDIX 4 Net cash and cash equivalents used in investment activities Net cash and cash equivalents used in financing activities Contacts in Lima:
Company?) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru′s largest,
publicly-traded precious metals mining company, announced today results
for the first quarter 2012. All figures have been prepared in accordance
with IFRS and are stated in U.S. dollars (US$).
Mr. Roque Benavides, Buenaventura′s Chief Executive Officer, stated:
'Net income in the first quarter reached US$207.5, 8% lower than the
figure reported in 1Q11 (US$224.8 million). EBITDA from Buenaventura′s
Direct Operations was US$171.1 million, 17% lower than the figure
reported in 1Q11 (US$207.0 million), while EBITDA including Yanacocha
and Cerro Verde increased 2%, from US$396.6 million in 1Q11 to US$403.1
million in 1Q12.
The Company reported higher operating costs and expenses in 1Q12, while
sales remained flat, which led to lower than expected results.
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
1Q11
?
?
Var% Total Revenues
?
?
377.0
?
?
375.7
?
?
0% Operating Income
?
?
131.5
?
?
178.4
?
?
-26% EBITDA
?
?
171.1
?
?
207.0
?
?
-17% EBITDA
?
?
403.1
?
?
396.6
?
?
2% Net Income
?
?
207.5
?
?
224.8
?
?
-8% EPS*
?
?
0.82
?
?
0.88
?
?
-8%
?
?
?
?
?
?
(*) As of March 31, 2012, Buenaventura had 254,442,328 shares
outstanding.
in accordance with Peruvian GAAP, as well as 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 with Peruvian GAAP financial
measures.
During 1Q12, net sales were US$359.0 million, similar to the US$363.5
million reported in 1Q11. Lower base metal prices, as well as a decrease
in silver, copper and zinc volume sold offset higher precious metal
prices. It is important to mention that due to logistic constraints at
the Callao Port and warehouses, lead-silver concentrate inventories
tripled when comparing 1Q12 with 1Q11, representing a US$31 million
increase at market value.
Royalty income increased 47%, from US$12.3 million reported in 1Q11 to
US$18.1 million in 1Q12 due to higher revenues at Yanacocha.
?
?
?
?
?
?
?
?
?
?
?
?
?
Operating Highlights
?
?
?
1Q12
?
?
1Q11
?
?
Var%
?
(in millions of US$)
?
?
?
359.0
?
?
363.5
?
?
-1%
?
Average Realized Gold Price Gold (US$/oz)*
?
?
?
1,721
?
?
1,393
?
?
24%
?
Average Realized Gold Price (US$/oz) inc. Yanacocha
?
?
?
1,707
?
?
1,234
?
?
38%
?
Average Realized Silver Price (US$/oz)*
?
?
?
32.20
?
?
31.78
?
?
1%
?
Average Realized Lead Price (US$/MT)*
?
?
?
2,085
?
?
2,601
?
?
-20%
?
Average Realized
?
?
?
2,042
?
?
2,423
?
?
-16%
?
Average Realized Copper Price (US$/MT)*
?
?
?
8,361
?
?
9,642
?
?
-13%
?
(*) Buenaventura′s Direct Operations
?
?
?
?
Sales Content
?
?
?
?
?
?
?
1Q12
?
?
?
1Q11
?
?
?
Var
?
?
Gold (in oz)*
?
?
?
127,017
?
?
?
120,426
?
?
?
5%
?
Gold (in oz) inc. Yanacocha
?
?
?
280,718
?
?
?
243,849
?
?
?
15%
?
Silver (in oz)*
?
?
?
2,810,762
?
?
?
3,697,027
?
?
?
-24%
?
Lead (in MT)*
?
?
?
2,135
?
?
?
2,772
?
?
?
-23%
?
Zinc (in MT)*
?
?
?
7,943
?
?
?
7,888
?
?
?
1%
?
Copper (in MT)*
?
?
?
5,714
?
?
?
7,166
?
?
?
-20%
?
(*) Buenaventura Direct Operations
Buenaventura′s equity production1 in 1Q12 was 117,852 ounces
of gold, in-line with the figures reported in 1Q11. Silver production in
1Q12 was 4.0 million ounces, a 14% increase when compared to the figure
reported in 1Q11 (3.5 million oz) mainly due to higher production from
Uchucchacua.
Equity Production 1
?
?
?
?
?
?
1Q12
?
?
?
1Q11
?
?
?
Var%
?
Gold (oz)
?
?
?
117,852
?
?
?
116,270
?
?
?
1%
?
Gold (oz) inc. Yanacocha
?
?
?
277,798
?
?
?
242,076
?
?
?
15%
?
Silver (oz)
?
?
?
4,013,509
?
?
?
3,533,975
?
?
?
14%
?
Lead ( MT)
?
?
?
4,907
?
?
?
3,092
?
?
?
59%
?
Zinc ( MT)
?
?
?
7,735
?
?
?
2,608
?
?
?
197%
?
Copper (MT) inc. Cerro Verde
?
?
?
15,338
?
?
?
18,760
?
?
?
-18%
?
?
?
?
?
?
?
?
?
?
?
the Chipmo mine in 1Q12 was 62,358 ounces, 15% lower than the 73,570
ounces reported in 1Q11 due to a lower tonnage treated and ore grade
declines (See Appendix 2). The old tailings treatment produced 6,907
gold ounces (compared to 4,043 ounces in 1Q11). As a consequence, total
gold production in 1Q12 was 69,265 ounces, 11% lower than the 77,614
ounces reported in 1Q11.
Cash operating cost in 1Q12 was US$463/oz, 24% higher when compared to
1Q11 (US$373/oz). This was mainly explained by:
?
?
1.
?
The 12% decrease in gold ounces produced due to lower ore grades
2.
A 20% increase in supply expenses: reagents (cyanide) and diesel
3.
Contractor costs increased approximately 50% due to the 27% increase
in drilling (7,803m vs. 6,765m) and the 13% increase in drifting
work (5,518m vs. 4,879m).
4.
These factors were partially offset by an increase in the by-product
credit contribution explained by higher silver production and prices.
?
At Poracota, gold production in 1Q12 was 11,320 ounces, a 6% decrease
when compared to 1Q11 (12,101 ounces) due to lower ore grade and a
decrease in the recovery rate (See Appendix 2). Cash operating cost was
US$1,257/oz, 28% higher than the figure reported in 1Q11 (US$982/oz),
mainly explained by:
?
?
1.
?
Contractor costs increased approximately 21% due to the increase of
drifting work (19% higher vs. 1Q11).
2.
A 62% increase in commercial deductions due to a temporary increase
of arsenic content in the mine concentrate.
?
At Uchucchacua(100% owned by Buenaventura), total silver
production in 1Q12 was 2.7 million ounces, a 10% increase when compared
to 2.5 million ounces in 1Q11 due to higher tonnage treated, and an
increase in the silver grade & recovery rate (See Appendix). Zinc
production in 1Q12 was 2,439 MT, 28% higher than the figure reported in
1Q11 (1,902MT). In addition, lead production increased 11% (2,193 MT in
1Q12 vs. 1,974 MT in 1Q11).
__________________
1 Production includes 100% of
Buenaventura′s operating units, 100% of CEDIMIN, 53.06% of La Zanja and
53.78% of El Brocal.
Cash operating cost in 1Q12 was US$17.91/oz, a 20% increase compared to
US$14.98/oz in 1Q11. This increase was primarily due to a:
?
?
1.
?
23% increase in contractor expenses explained by higher wages and
one-time bonuses for closing negotiations with unions. Last year,
the effect of this expense was reflected in 2Q11.
2.
Labor and supply expenses increased 13% and 14%, respectively.
3.
An increase in commercial terms due to higher silver refining
charges, as well as lower by-product credit contribution due to
lower lead and zinc prices
?
At Julcani (100% owned by Buenaventura), total production in 1Q12
was 631,628 ounces of silver, an increase of 4% compared to 1Q11
(606,288 ounces), mainly due to a 3% increase in tonnage treated.
Silver cash operating cost in 1Q12 was US$12.77/oz, 15% higher than 1Q11
(US$11.10/oz), mainly explained by a 13% increase in contractors costs
due to higher prices and drifting work increases.
At La Zanja (53.06% owned by Buenaventura) total production in
1Q12 was 26,329 ounces of gold, a 5% increase when compared to 1Q11
(25,151 ounces). Cash operating cost in 1Q12 was US$496/oz, 43% higher
than 1Q11 (US$346 /oz) due to higher labor and contractor expenses,
partially offset by higher silver by-product contribution.
At Tantahuatay (40% owned by Buenaventura) Total production in
1Q12 was 27,606 ounces of gold (11,042 ounces attributable to
Buenaventura). Cash operating cost in 1Q12 was US$497/oz.
During 1Q12, El Brocal(53.76% owned by Buenaventura)
produced 7,607 MT of zinc and 2,279 MT of lead. Silver production
decreased 2% from 443,942 ounces in 1Q12 to 453,674 ounces in 1Q11. Zinc
cash cost in 1Q12 was US$1,346/MT.
Copper production in 1Q12 was 5,614 MT, 25% lower than 1Q11 (7,473 MT).
Copper cash cost was US$4,984/MT, 55% higher when compared to the
US$3,220/MT reported in 1Q11 due to higher contractor expenses at
Marcapunta.
General and administrative expenses in 1Q12 were US$29.8 million, 76%
higher than the figure reported in 1Q11 (US$17.0 million) due to a
higher long-term compensation provision (US$7.3 million in 1Q12 vs. zero
in 1Q11) and a US$3.8 million increase in worker ?s profit sharing.
Exploration costs at non-operational mining sites, which include care
and maintenance, in 1Q12 were US$19.4 million, an 83% increase compared
to the US$10.6 million reported in 1Q11. Buenaventura′s main exploration
efforts were focused at the Tambomayo (US$3.0 million), San Gregorio
(US$2.4 million), Breapampa (US$2.0 million), Mallay (US$2.0 million)
and Trapiche (US$1.5 million) projects.
Operating income in 1Q12 was US$131.5 million, a 26% decrease compared
to the US$178.4 million reported in 1Q11. This decrease was mainly due
to the 15% increase in operating costs and an 81% increase in operating
expenses, while revenues remained flat.
During 1Q12, Buenaventura′s share in associated companies was US$136.0
million, 20% higher than the US$112.9 million reported in 1Q11.
Yanacocha′s contribution to these results increased 83%, from US$48.2
million in 1Q11 to US$88.2 million in 1Q12, while Cerro Verde′s
contribution decreased 37% from US$71.0 million in 1Q11 to US$44.9
million in 1Q12.
At Yanacocha (43.65% owned by Buenaventura), 1Q12 gold production was
366,428 ounces of gold, 27% higher than the figure reported in 1Q11
(288,214 ounces).
Costs applicable to sales (CAS) at Yanacocha in 1Q12 were US$481/oz, 20%
lower than the figure reported in 1Q11 (US$603/oz) due to lower
operating costs, partially offset by higher worker ?s participation.
Net income at Yanacocha in 1Q12 was US$202.0 million, a 82% increase
compared to the 1Q11 figure (US$110.7 million).
Capital expenditures at Yanacocha were US$227.4 million in 1Q12.
At Cerro Verde (19.35% owned by Buenaventura), 1Q12 copper production
was 63,295 MT, a 20% decrease when compared to 1Q11 (79,463 MT).
During 1Q12, Cerro Verde reported net income of US$232.3 million, a 37%
decrease when compared to US$367.7 million in 1Q11. This was mainly due
to a 23% decrease in sales revenues (US$568.8 million in 1Q12 versus
US$740.9 million in 1Q11).
Capital expenditures at Cerro Verde in 1Q12 totaled US$82.2 million.
At Canteras del Hallazgo (49% owned by Buenaventura), there was a net
loss reported in 1Q12 totaling US$5.4 million due to the execution of
the project′s exploration program.
Buenaventura′s 1Q12 net income was US$207.5 million (US$0.82 per share),
an 8% decrease compared to the US$224.8 million (US$0.88 per share)
reported in 1Q11. This was mainly due to a 26% decline in operating
income.
?
?
?
open pit, an expansion of the current leach pad and improvements
in the operation′s road access. Construction began in 2Q11. As of
March 31, 2012, total project expenditures were US$25.5 million
(total investment is US$32.5 million). Completion is expected in
3Q12.
?
?
?
?
?
Progress as of March 31, 2012
San Pedro Sur Leach Pad Stage II
51.88%
San Pedro Sur Waste Rock Deposit
100%
Pampa Verde Pit
0%
Pampa Verde Top Soil Deposit
0%
Pampa Verde Waste Soil Deposit
45%
Pampa Verde Acid Water Plant
8.40%
Pampa Verde Auxiliary Access
40%
Pampa Verde Waste Rock Deposit
12%
Pampa Verde Haul Road to SPS
14%
?
(additional 10.5 Ha), development of the Cienaga Norte Pit and an
access road between the leach pad and the open pit. Total CAPEX totals
US$30 million. Project construction will begin in 3Q12, after the
approval of the environmental impact assessment.
Mallay mine construction was completed in 1Q12. The project has
already received the mine operating license, which allows the mine to
begin production. Total CAPEX was US$60 million.
During the first year of operation, silver production from Mallay is
expected to be approximately 900k oz of silver.
Currently, Mallay holds Brownfield exploration investments in the
Chancas?Chiptaj area.
Buenaventura continued with the construction of the manganese sulfate
plant with a total budget of US$76.0 million. As of March 31, 2012,
total expenditures were US$44.5 million. The project includes an acid
leaching facility, a sulfuric acid production plant and a manganese
sulfate crystallization plant.
The leaching processing facilities are expected to be completed at the
end of 2Q12. The construction of the Sulfuric Acid and the Manganese
Sulfate Plant is expected to be ready in 2Q12. Construction and
start-up tests at both plants are scheduled at the end of 2012.
As of March 31, 2012, Buenaventura′s total investment at the Breapampa
Project was US$30.1 million, representing 62% of the entire budget
(US$48.0 million).
Construction progress includes:
?
?
?
?
?
?
?
?
?
?
?
?
?
?
Progress as of March 31, 2012
Leach Pad Stage I
?
?
?
98%
Process Plant
?
?
?
97%
Dam Facilities
?
?
?
97%
Internal Electric System
?
?
?
96%
Waste Soil Deposit
?
?
?
71%
Top Soil Deposit
?
?
?
90%
?
?
?
This project should be completed by the end of 2Q12. Production will
begin at the beginning of 3Q12.
Expected gold production in 2012 is approximately 22,000 ounces.
As of March, 2012, Buenaventura′s total disbursement at the Huanza
Project was US$146.4 million (which included US$14.5 million in
advanced payments), representing 92% of the entire budget. US$116
million of the total amount invested was financed via a leasing
agreement totaling US$119.0 million.
Construction progress at the Huanza Project included:
?
?
?
?
?
?
?
?
?
1.
?
Water Conduction Tunnel: 9,760 meters of excavation was 97%
completed.
2.
Powerplant: civil work was 75% completed.
3.
Pallca Dam: 30.1% was completed.
4.
Electromechanical equipment is nearly complete, and will be
delivered on schedule. Equipment assembly is 7% complete.
?
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;
19.35% 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 2010 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
?
Standards ('IFRS?)
As part of the first adoption of the International Financial
Reporting Standards (IFRS) in Peru, as of October 14, 2010, through
Resolution N ?102-2010-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 2011.
For periods up to and including the year ended December 31, 2010,
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,
2011, 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, 2010, 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.
?
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.
?
?
?
Equity Participation in
?
?
BVN
?
?
Operating
?
?
?
Equity %
?
?
Mines / Business
Cedimin S.A.C*
?
?
100.00
?
?
Shila / Paula
Consorcio Energetico de Huancavelica S.A*
?
?
100.00
?
?
Energy ? Huanza Hydroelectrical Project
Buenaventura Ingenieros S.A*
?
?
100.00
?
?
Engineering Consultant
Minera La Zanja S.A*
?
?
53.06
?
?
La Zanja
Sociedad Minera El Brocal S.A.A*
?
?
53.78
?
?
Colquijirca and Marcapunta
Canteras del Hallazgo S.A **
?
?
49.00
?
?
Chucapaca Project
Compañía Minera Coimolache S.A **
?
?
40.09
?
?
Tantahuatay
Minera Yanacocha S.R.L **
?
?
43.65
?
?
Yanacocha
Sociedad Minera Cerro Verde S.A.A **
?
?
19.35
?
?
Cerro Verde
?
(*)Consolidates
(**) Equity Accounting
?
?
?
?
?
?
GOLD PRODUCTION Three Months Ended March 31 Orcopampa
?
?
Orcopampa Old Tailings 2012
?
2011
?
%
?
?
2012
?
2011
?
%
Ore Milled MT
117,478
?
113,822
?
3%
126,784
?
82,115
?
54%
Ore Grade gr/MT
17.25
21.26
-19%
1.920
2.06
-7%
Recovery Rate %
95.7%
95.4%
0%
79.6%
74.9%
6% Ounces Produced 62,358
?
73,570
?
-15%
?
?
6,907
?
4,954
?
39%
?
Three Months Ended March 31 Antapite Poracota 2012
?
2011
?
%
?
?
2012
?
2011
?
%
Ore Milled MT
34,282
32,519
5%
58,221
54,817
6%
Ore Grade gr/MT
4.25
8.23
-48%
7.51
8.23
-9%
Recovery Rate %
95.3%
95.6%
0%
79.8%
82.1%
-3% Ounces Produced 4,483
?
8,254
?
-46%
?
?
11,320
?
12,101
?
-6%
?
LA ZANJA
?
?
TANTAHUATAY 1Q12
?
1Q11
?
%
?
?
1Q12
?
1Q11
?
% Ounces Produced 26,329
?
25,151
?
5%
?
?
27,606
?
0
?
?
?
SILVER PRODUCTION Three Months Ended March 31 Uchucchacua El Brocal 2012
?
2011
?
%
?
?
2012
?
2011
?
%
Ore Milled MT
259,341
253,085
2%
802,963
576,353
39%
Ore Grade gr/MT
450.17
432.00
4%
32.80
46.29
-29%
Recovery Rate %
72.4%
71.0%
2%
57.8%
53.0%
9% Ounces Produced 2,744,686
?
2,501,813
?
10%
?
?
443,942
?
453,674
?
-2%
?
SILVER PRODUCTION Three Months Ended March 31 Julcani 2012
?
2011
?
%
Ore Milled MT
32,205
31,307
3%
Ore Grade gr/MT
654.86
645.26
1%
Recovery Rate %
93.2%
93.3%
0% Ounces Produced 631,627
?
606,288
?
4%
?
ZINC PRODUCTION Three Months Ended March 31 Uchucchacua Colquijirca 2012
?
2011
?
%
?
?
2012
?
2011
?
%
Ore Milled MT
259,341
253,085
2%
331,337
-
Ore Grade %
1.50
1.33
13%
3.24
-
Recovery Rate %
57.1%
55.9%
2%
70.8%
-
MT Produced 2,439
?
1,902
?
28%
?
?
7,607
?
-
?
?
?
?
?
EBITDA RECONCILIATION (in thousand US$)
?
?
?
?
?
?
?
?
?
?
?
?
?
?
?
1Q12
?
?
1Q11
Net Income
?
?
?
?
220,986
?
?
246,144
Add / Substract:
?
?
?
?
-49,856
?
?
-39,111
Provision for income tax, net
?
?
?
?
47,675
?
?
45,539
Share in associated companies by the equity method, net
?
?
?
?
-135,986
?
?
-112,919
Interest income
?
?
?
?
-2,749
?
?
-3,335
Interest expense
?
?
?
?
1,296
?
?
2,145
Loss on currency exchange difference
?
?
?
?
285
?
?
798
Depreciation and Amortization
?
?
?
?
23,404
?
?
21,503
Provision for long term officers ? compensation
?
?
?
?
7,315
?
?
0
Workers ? participation provision
?
?
?
?
8,904
?
?
7,158
EBITDA Buenaventura Direct Operations
?
?
?
?
171,130
?
?
207,033 EBITDA Yanacocha (43.65%)
?
?
?
?
158,906
?
?
84,638
EBITDA Cerro Verde (19.35%)
?
?
?
?
73,100
?
?
104,910
EBITDA Buenaventura inc Yanacocha and Cerro Verde
?
?
?
?
403,136
?
?
396,581
?
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, Yanachoca 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.
?
?
?
?
?
?
?
Compañía de Minas Buenaventura S.A.A. and subsidiaries Consolidated Balance sheet As of March, 31 2012 and December, 31 2011 2012 2011 Assets US$(000) US$(000) Current assets
Cash and cash equivalents
514,092
470,847
Financial asset at fair value through profit and loss
55,451
62,299
Trade accounts receivable, net
129,550
172,569
Other accounts receivable
46,142
48,521
Accounts receivable from related parties
35,606
47,425
Hedge derivative financial instruments
-
1,283
Embedded derivatives for concentrates sales
728
Inventory, net
165,105
149,108
Prepaid expenses
11,566
16,234
Total current assets 958,240 968,286
?
Other accounts receivable
6,839
5,570
Accounts receivable from related parties
46,807
32,262
Inventory
49,561
48,845
Prepaid expenses
88
Hedge derivative financial instruments
Investment in associates
2,071,288
1,935,004
Mining concessions, development cost and property, plant and
equipment, net
879,695
830,997
Deferred income tax asset
112,251
125,538
Other assets
6,365
7,047
Total assets 4,131,134 3,953,549
?
Liabilities and shareholders′ equity, net Current liabilities
Trade accounts payable
133,391
142,375
Income tax payable
33,720
36,423
Dividend
118,529
1,052
Other liabilities
72,080
40,098
Provisions
52,523
91,287
Accounts payable from related parties
1,102
883
Embedded derivatives for concentrates sales
7,306
Hedge derivative financial instruments
1,679
-
Financial obligations
542
1,042
Total current liabilities 413,566 320,466
?
Other long-term liabilities
84,911
86,528
Accounts payable from related parties
936
1,004
Financial obligations
115,667
105,072
Total liabilities 615,080 513,070
?
Shareholders′ equity net
?
Capital stock, net of treasury shares of US$62,622,000 in the year
2011 y 2010
750,540
750,540
Investments shares, net of treasury shares of US$142,000 in the year
2011 y 2010
2,019
2,019
Additional paid-in capital
225,978
225,978
Legal reserve
162,639
162,639
Other reserves
269
269
Retained earnings
2,140,461
2,034,768
Cumulative unrealized, loss
1,287
2,068
3,283,193
3,178,281
Minority interest
232,861
262,198
Total shareholders′ equity, net
3,516,054
3,440,479
?
?
Total liabilities and shareholders′ equity, net 4,131,134 3,953,549
?
?
?
?
Compañía de Minas Buenaventura S.A.A. and subsidiaries Consolidated Statements of income For the three month period ended March 31, 2012 and March 31, 2011
?
?
?
?
?
For the three month period ended March, 31 2012 2011 US$(000) US$(000) Operating income
Net sales
358,981
363,480
Royalty income
18,057
?
12,267
?
Total income
377,038
375,747
?
Operating costs
Cost of sales, excluding depreciation and amortization
(133,341
)
(111,508
)
Exploration in units in operation
(28,669
)
(22,259
)
Depreciation and amortization
(23,404
)
(21,503
)
Royalties
(9,878
)
(14,323
)
Total operating costs
(195,292
)
(169,593
)
Gross income
181,746
?
206,154
?
?
Operating expenses
Administrative expenses
(29,818
)
(16,982
)
Exploration in non-operating areas
(19,427
)
(10,604
)
Sales expenses
(2,773
)
(2,205
)
Other, net
1,779
?
2,009
?
Total operating expenses
(50,239
)
(27,782
)
?
Operating income
131,507
?
178,372
?
?
Other income (expenses), net
Share in associates companies by the equity method, net
135,986
112,919
Interest incomes
2,749
3,335
Interest expenses
(1,296
)
(2,145
)
Loss (income) from currency exchange difference, net
(285
)
(798
)
Total other income, net
137,154
113,311
?
?
Income before income tax and minority interest
268,661
291,683
?
Provision for income tax
(47,675
)
(45,539
)
?
?
Net income
220,986
?
246,144
?
?
Net income attributable to minority interest
(13,514
)
(21,374
)
?
?
Net income attributable to Buenaventura
207,472
?
224,770
?
?
Basic and diluted earnings per share attributable to Buenaventura, stated in U.S. dollars
0.82
?
0.88
?
?
?
Compañía de Minas Buenaventura S.A.A. and subsidiaries Consolidated Statements of cash flows For the three month period ended March 31, 2012 and March 31, 2011
?
?
?
?
?
For the three month period ended March, 31 2012 2011 US$(000) US$(000) Operating activities
Proceeds from sales
393,773
396,795
Dividends received
2,406
-
Royalties received
14,408
14,150
Value Added Tax recovered
8,772
4,035
Interest received
2,045
2,480
Payments to suppliers and third parties
(155,218)
(186,257)
Payments to employees
(98,796)
(58,454)
Income tax paid
(21,476)
(30,232)
Payment of royalties
(9,683)
(15,573)
Payments of interest
(242)
(576)
?
Net cash and cash equivalents provided by operating activities
135,989
126,368
?
Investment activities
Additions to mining concessions, development activities, property,
plant and equipment
(76,471)
(43,134)
Payments for purchase of investments shares
(4,742)
(9,079)
Decrease in time deposits
7,596
14,833
?
(73,617)
(37,380)
?
Financing activities
Increase in financial obligations
10,095
11,387
Dividends paid to minority shareholders of subsidiary
(29,222)
(23,118)
?
(19,127)
(11,731)
?
(Decrease) increase in cash and cash equivalents during the period,
net
43,245
77,257
Cash and cash equivalents at beginning of period
470,847
582,861
?
?
Cash and cash equivalents at period-end
514,092
660,118
?
?
For the three month period ended March, 31 2012 2011 US$(000) US$(000)
?
Reconciliation of net income to cash and cash equivalents
provided by operating activities
?
Net income attributable to Buenaventura
207,472
224,770
Add (less)
Depreciation and amortization
23,404
21,503
Deferred income tax
14,313
17,531
Net income attributable to minority interest
13,514
21,374
Adjustment to present value of mining-units closure provision
1,054
1,568
Increase (decrease) of allowance for impairment of inventories
902
(1,783)
Loss (gain) on currency exchange differences
285
798
Share in associates companies by the equity method, net of dividends
received in cash
(133,580)
(112,919)
Provisions
(40,381)
(55,932)
Provision for estimated fair value of embedded derivatives related
of concentrates sales and adjustments on open liquidations
(19,349)
(6,957)
?
Net changes in operating assets and liabilities accounts
?
Decrease (increase) of operating assets
Trade accounts receivable
43,019
39,995
Other accounts receivable
(16,985)
(21,774)
Accounts receivable from related parties
(2,726)
8,156
Inventory
(16,713)
(26,828)
Prepaid expenses
15,323
(875)
?
Increase (decrease) of operating liabilities
Trade accounts payable
(8,984)
(17,090)
Income tax payable
(2,703)
(1,227)
Other liabilities
58,124
36,058
?
?
?
Net cash and cash equivalents provided by operating activities
135,989
126,368
?
Roque Benavides / Carlos Galvez
Compañia
de Minas Buenaventura S.A.A.
Tel: (511) 419-2538 / 419-2540
Investor
Relations: Daniel Dominguez
Tel: (511) 419-2536
Email: ddominguez@buenaventura.com.pe
or
Contacts
in New York:
Peter Majeski
i-advize Corporate
Communications, Inc.
Tel: (212) 406-3694
Email: buenaventura@i-advize.com
or
Visit
our website:
http://www.buenaventura.com