6-K 1 bvnpr230404.htm FORM 6-K

FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of March 2004

BUENAVENTURA MINING COMPANY INC.

(Translation of Registrant's Name into English)

 

CARLOS VILLARAN 790

SANTA CATALINA, LIMA 13, PERU

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F ___

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ___ No X

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________________.

 

 

This report consists of a press release issued by Compañía de Minas Buenaventura S.A.A. and subsidiaries on April 23, 2004, announcing the Company's First Quarter 2004 results.

For Immediate Release

Compañía de Minas Buenaventura Announces

First Quarter 2004 Results

 

Lima, Peru, April 23, 2004 - Compañía 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 its results for the first quarter 2004. All figures have been prepared in Peruvian GAAP and are stated in Peruvian nuevos soles (S/.) and in U.S. dollars (US$) at a rate of S/.3.461 per US$1 for the convenience of the reader.

Comments from the Chief Executive Officer:

Roque Benavides, Chief Executive Officer of Buenaventura stated: "This quarter, Buenaventura's net income was S/.173.6 million, or US$50.2 million, a decrease of 10% as compared to 1Q03 (Net income S/.193.1 million). The main difference corresponds to a credit of S/.95.0 million stated during 1Q03, related to the provision for derivative instruments, compared to a credit of S/.8.5 million in 1Q04.

The two remarkable facts this quarter are: a 43% increase in operating income (S/.78.7 million in 1Q04 versus S/.54.9 million in 1Q03) and a 149% increase in non-consolidated affiliates' results (S/.167.6 million in 1Q04, versus S/.67.3 million in 1Q03) mainly, attributed to Yanacocha.

EBITDA for 1Q04, was S/.361.0 million, or US$ 104.3 million, a 59% increase when compared to 1Q03 (S/.226.4 million).

These results were mainly attributed to our cost-cutting improvements at Orcopampa, Uchucchacua and Antapite, an increase of 67% and 64% in silver and lead sales, respectively, and to higher metal realized prices".

Financial Highlights (in millions of US$, except Income per ADR):

 

1Q04

1Q03

Var%

Operating Revenues

67.9

54.3

25%

Operating Income

22.7

15.9

43%

EBITDA

(BVN Direct Operations)

14.8(1)

19.6

-24%

EBITDA

(including Yanacocha)

104.3(1)

65.4

59%

Net Income

50.2(1)

55.8

-10%

Net Income (without mark to market effect)

43.7(1)

28.4

54%

EPS

0.39

0.44

-10%

EPS (without Mark to market effect)

0.34

0.22

54%

(1) Includes a US$10.4 million expense of buying back 120,000 oz of gold in January 2004.

Operating Highlights:

 

1Q04

1Q03

Var%

Total Sales (million of US$)

58.2

47.0

24%

Average Realized Price Gold (US$/oz.)

365.91

349.80

5%

Average Realized Price Silver (US$/oz.)

6.21

4.67

33%

Average Realized Price Lead (US$/TM.)

862.32

459.45

88%

Average Realized Price Zinc (US$/TM.)

1,048.99

785.96

33%

Operating Revenue

Operating revenue reached S/.235.1 million, or US$67.9 million, a 25% increase when compared to 1Q03 (S/.187.9 million). This was a result of a 24% increase in net sales and a 35% increase in royalties.

Net sales increased 24% during 1Q04 versus 1Q03 mainly due to a significant increase in metal realized prices of silver (33%), zinc (33%) and lead (88%); and volumes sold of silver (67%) and lead (64%).

The volume of gold sold decreased 11% due to a delay in gold delivery. However, gold production in 1Q04 was 12% higher than in 1Q03.

 

 

Sales Content

1Q04

1Q03

Var%

Gold (in oz)

68,217

76,668

-11%

Silver (in oz)

3,448,473

2,062,064

67%

Lead (in MT)

7,480

4,565

64%

Zinc (in MT)

11,834

13,603

-13%

 

 

 

 

 

 

 

 

 

Production and Operating Costs

Buenaventura's equity production in 1Q04 was 75,173 ounces of gold, 11% higher than 1Q03 (67,654 ounces) and 2,991,425 ounces of silver, an increase of 3% compared to 1Q03 (2,911,776 ounces).

 

Equity Production1

1Q04

1Q03

Var%

Gold (in oz)

75,173

67,654

11%

Silver (in oz)

2,991,425

2,911,776

3%

Lead (in MT)

3,851

3,438

12%

Zinc (in MT)

5,842

6.361

-8%

 

In Orcopampa (100%) total gold production increased 8% to 47,288 oz in 1Q04 from 43,622 oz in 1Q03. Cash operating cost in 1Q04 was US$145.37/oz of gold, a decrease of 9% compared to 1Q03 (US$159.29/oz of gold). As it was announced, the cyanidation plant began full operations in March permitting increasing recovery and reduction of sales expenses, deductions and penalties by producing dore instead of ore concentrates. As a matter of fact, the cash operating cost in March was US$115.61/oz, which confirms our expectations regarding the new process.

In Uchucchacua (100%), silver production was 2,347,727 oz , similar to 1Q03 production. Cash operating cost in 1Q04 was US$3.00/oz of silver, a decrease of 3% compared to 1Q03 (US$3.10/oz) explained by a higher by-products contribution such as zinc and lead, which experienced strong price increases.

In Antapite (78.04%), gold production increased 31%, from 17,973 oz in 1Q03 to 23,567 oz in 1Q04, due to the expansion of the cyanidation plant. Cash operating cost in 1Q04 was US$154.11/oz of gold, a 5% decrease as compared to 1Q03 (US$163.92/oz of gold), due to the higher gold production.

In Ishihuinca (78.04%), gold production was 5,960 oz, a 1% decrease when compared to 1Q03 (6,044 oz). Cash operating cost for the quarter was US$265.09/oz of gold, 29% higher compared with 1Q03 (US$205.98/oz) due to exploration efforts to increase gold reserves and an increase in mine preparation costs.

In Colquijirca (El Brocal) (32.78%) lead production in 1Q04 was 6,764 ST, an increase of 22% versus 1Q03 (5,528 ST). Silver production was 724,393 ounces, a 10% decrease compared with 1Q03 (808,600 oz) and zinc production was 14,619 ST, an 11% decrease compared with 1Q03 (16,397 ST). Cash operating cost for the period was US$867.28/TM of zinc, a 26% increase versus US$687.82/TM in 1Q03 explained by a decrease in zinc recovery due to higher oxide contents in ore.

 

Operating Expenses

 

  • General and administrative expenses in 1Q04 were S/.20.6 million, or US$6.0 million, a 19% increase compared to 1Q03 (S/.17.4 million) due to higher legal expenses and a provision for the Long-Term Management Compensation Program after incorporating the year 2004 program which covers until year 2013.

  • Exploration costs in non-operational mining areas in during the period increased 13% to S/.10.1 million, or US$2.9 million (S/.9.0 million in 1Q03), due to higher expenditures in the La Zanja project.

 

Operating Income

 

Operating income was S/.78.7 million, or US$ 22.7 million, a 43% increase compared to 1Q03 (S/.54.9 million). This was primarily a result of the 25% increase in operating revenues while operating costs increased only 20%.

Income from Non-Consolidated Affiliates

 

Buenaventura's income from Non-Consolidated Affiliates during 1Q04 was S/.167.6 million, or US$48.4 million, an increase of 149% compared to 1Q03 (S/.67.3 million) mainly attributed to our participation in Yanacocha.

In Yanacocha (43.65%) 1Q04 gold production increased 26% to 803,558 ounces (350,753 ounces Buenaventura's share) compared with the same period of 2003. This result was due to an increase in the gold recoveries.

Cash operating cost in Yanacocha was US$144/oz of gold, a 7% increase compared with US$134/oz in 1Q03.

Net income in 1Q04 was US$110.6 million and operating cash flow was US$193.2 million, compared to US$43.6 million and US$143.1 million, respectively, in 1Q03.

Yanacocha's capital expenditures for 1Q04 were US$44.6 million.

 

 

Net Income

 

This quarter Buenaventura's net income was S/.173.6 million, or US$50.2 million, representing a decrease of 10% compared to 1Q03 (S/.193.1 million). In 1Q03 a credit of S/.95.0 million, or US$27.4 million due to a provision for mark-to-market value variation was considered. On the other hand, during 1Q04, the corresponding credit was only of S/.8.5 million plus a realized deferred income of S/.13.9 million, or US$4.0 million.

Earnings per share (EPS) for 1Q04 were S/.1.36, or US$0.39, a decrease of 10% compared with 1Q03 (S/.1.52 or US$0.44).

Eliminating mark to market effect, net income in 1Q04 was US$43.7, an increase of 54% when compared with 1Q03 (US$28.4 million). Likewise, EPS increased 54% from US$0.22 in 1Q03 to US$0.34 in 1Q04.

 

Hedging Operations

During the quarter the Company reported a net loss of S/.45.7 million, or US$13.2 million in derivative instruments, as a result of the execution of 41,000 ounces of gold and 515,823 ounces of silver.

 

 

Project Development

UCHUCCHACUA

During 1Q04, the Company started the engineering studies for the construction of the flotation-cyanidation plant for treating tails.

CONSORCIO ENERGETICO DE HUANCAVELICA

During 1Q04, the Company began construction of a 104km transmission line running between the districts of Callalli and Ares at 138kv to improve the energy supply for Orcopampa, Shila and Paula as well as Poracota. Total investment has been estimated at US$7 million.

LA ZANJA

This project is progressing in terms of permitting and development.

* * *

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 three mines in Peru and also has controlling interests in four mining companies as well as a minority interest in several other mining companies in Peru. The Company owns 43.65% in Minera Yanacocha S.R.L. (a partnership with Newmont Mining Corporation) and is one of the main precious metal producers in the world.

 

 

 

 

 

 

 

 

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 and Yanacocha's costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver 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 and legal developments. These forward-looking statements reflect the Company's view with respect to the Company and Yanacocha'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

Affiliates and Subsidiaries

BVN

Operating

Equity %

Mines

Minera Yanacocha

43.65

Yanacocha

Sociedad Minera El Brocal*

32.78

Colquijirca

Inversiones Mineras Del Sur*

78.04

Antapite / Ishihuinca

Cedimin*

100.00

Shila / Paula

Buenaventura Ingenieros*

100.00

-

Consorcio Energetico de Huancavelica*

100.00

-

*Consolidates

Appendix 2.

 

 BVN PRODUCTION SUMMARY

GOLD PRODUCTION

Three Months Ended March 31st

Orcopampa

Antapite

2004

2003

%

2004

2003

%

Ore Milled DST

102,760

91,408

12.42%

44,875

30,387

47.68%

AVG Ore Grade OZ/ST

0.49

0.56

-11.75%

0.56

0.65

-12.93%

AVG Recovery Rate %

93.48%

85.55%

7.93%

93.39%

91.57%

1.82%

Ounces Produced

47,288

43,622

8.41%

23,567

17,973

31.13%

SILVER PRODUCTION

Three Months Ended March 31st

Uchucchacua

Colquijira

2004

2003

%

2004

2003

%

Ore Milled DST

188,898

182,288

3.63%

370,153

338,027

9.50%

AVG Ore Grade OZ/ST

16.93

17.59

-3.76%

2.87

3.25

-11.59%

AVG Recovery Rate %

73.40%

73.83%

-0.44%

68.15%

73.64%

-5.49%

Ounces Produced

2,347,727

2,368,140

-0.86%

724,393

808,600

-10.41%

ZINC PRODUCTION

Three Months Ended March 31st

Uchucchacua

Colquijira

2004

2003

%

2004

2003

%

Ore Milled DST

188,898

182,288

3.63%

370,153

338,027

9.50%

AVG Ore Grade %

1.38%

1.55%

-11.20%

5.53%

6.14%

-9.94%

AVG Recovery Rate %

63.21%

59.85%

3.35%

71.43%

79.01%

-7.58%

ST Produced

1,648

1,696

-2.83%

14,619

16,397

-10.84%

 

Appendix 3.

 

Total Gold Commitmets

As of 04/01/04

2004

2005

2006

2007

2008

2009

2010

2011

Total

285

Ounces

246,000

208,000

338,000

350,500

428,000

452,000

60,000

60,000

2,142,500

US$/oz

307.23

313.65

314.91

313.90

297.83

294.03

285.00

285.00

304.25

290

Ounces

246,000

208,000

338,000

350,500

428,000

452,000

60,000

60,000

2,142,500

US$/oz

322.99

332.64

327.34

326.03

309.74

305.91

347.50

347.50

320.23

300

Ounces

216,000

288,000

418,000

430,500

508,000

492,000

60,000

60,000

2,472,500

US$/oz

339.17

336.91

332.49

331.50

320.30

315.51

347.50

347.50

328.26

340

Ounces

216,000

288,000

418,000

438,000

538,000

522,000

90,000

82,500

2,592,500

US$/oz

342.50

341.35

339.38

339.04

341.30

342.03

346.67

346.82

341.22

345

Ounces

216,000

288,000

418,000

438,000

538,000

522,000

90,000

82,500

2,592,500

US$/oz

342.50

341.35

339.38

339.04

343.53

345.13

346.67

346.82

342.31

350

Ounces

234,000

312,000

448,000

468,000

568,000

552,000

120,000

105,000

2,807,000

US$/oz

343.08

342.02

340.42

339.90

345.72

348.06

346.25

346.43

343.78

385

Ounces

279,000

372,000

448,000

468,000

568,000

552,000

120,000

105,000

2,912,000

US$/oz

349.84

348.95

340.42

339.90

360.51

368.61

346.25

346.43

352.05

400

Ounces

279,000

372,000

448,000

468,000

568,000

552,000

120,000

105,000

2,912,000

US$/oz

349.84

348.95

340.42

339.90

366.85

377.41

346.25

346.43

354.95

420

Ounces

279,000

372,000

448,000

468,000

628,000

552,000

120,000

105,000

2,972,000

US$/oz

349.84

348.95

340.42

339.90

371.93

386.21

346.25

346.43

357.90

 

Phsysical Gold Delivery

As of 04/01/04

2004

2005

2006

2007

2008

2009

2010

2011

Total

285

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

311.39

313.65

311.98

311.77

297.83

294.03

285.00

285.00

303.37

290

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

336.26

332.64

325.62

324.73

309.74

305.91

347.50

347.50

320.49

300

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

337.70

334.57

328.54

327.77

316.05

313.08

347.50

347.50

324.73

340

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

342.31

340.72

337.89

337.53

340.72

341.75

347.50

347.50

340.52

345

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

342.31

340.72

337.89

337.53

343.53

345.33

347.50

347.50

341.94

350

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

342.31

340.72

337.89

337.53

346.33

348.92

347.50

347.50

343.35

385

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

342.31

340.72

337.89

337.53

365.96

374.00

347.50

347.50

353.21

400

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

342.31

340.72

337.89

337.53

374.37

384.76

347.50

347.50

357.45

420

Ounces

156,000

208,000

308,000

328,000

428,000

452,000

60,000

60,000

2,000,000

US$/oz

342.31

340.72

337.89

337.53

374.37

395.51

347.50

347.50

359.88

 

Gold Derivatives

As of 04/01/04

 

 

2004

2005

2006

2007

2008

2009

2010

2011

Total

285

Ounces

90,000

30,000

22,500

142,500

US$/oz

300.00

345.00

345.00

316.58

290

Ounces

90,000

30,000

22,500

142,500

US$/oz

300.00

345.00

345.00

316.58

300

Ounces

60,000

80,000

110,000

102,500

80,000

40,000

472,500

US$/oz

343.00

343.00

343.55

343.44

343.00

343.00

343.22

340

Ounces

60,000

80,000

110,000

110,000

110,000

70,000

30,000

22,500

592,500

US$/oz

343.00

343.00

343.55

343.55

343.55

343.86

345.00

345.00

343.59

345

Ounces

60,000

80,000

110,000

110,000

110,000

70,000

30,000

22,500

592,500

US$/oz

343.00

343.00

343.55

343.55

343.55

343.86

345.00

345.00

343.59

350

Ounces

78,000

104,000

140,000

140,000

140,000

100,000

60,000

45,000

807,000

US$/oz

344.62

344.62

346.00

345.46

343.86

344.20

345.00

345.00

344.87

385

Ounces

123,000

164,000

140,000

140,000

140,000

100,000

60,000

45,000

912,000

US$/oz

359.39

359.39

346.00

345.46

343.86

344.20

345.00

345.00

349.49

400

Ounces

123,000

164,000

140,000

140,000

140,000

100,000

60,000

45,000

912,000

US$/oz

359.39

359.39

346.00

345.46

343.86

344.20

345.00

345.00

349.49

420

Ounces

123,000

164,000

140,000

140,000

200,000

100,000

60,000

45,000

972,000

US$/oz

359.39

359.39

346.00

345.46

366.70

344.20

345.00

345.00

353.84

 

 

 

Appendix 4.

Silver Derivatives

As of 04/01/04

  

At US $ 4.00

At US $ 4.15

At US $ 6.20

At US $ 6.33

At US $ 6.50

At US $ 7.00

Year

Ounces

$ / oz

Ounces

$ / oz

Ounces

$ / oz

Ounces

$ / oz

Ounces

$ / oz

Ounces

$ / oz

2004

225,000

6.00

1,125,000

5.84

1,170,000

6.15

1,345,500

6.16

1,575,000

6.16

2,250,000

6.16

2005

300,000

6.00

1,400,000

5.84

1,460,000

6.15

1,677,750

6.15

1,962,500

6.15

2,800,000

6.16

2006

200,000

6.00

200,000

6.00

240,000

6.00

266,000

6.00

300,000

6.00

400,000

6.00

725,000

6.00

2,725,000

5.85

2,870,000

6.14

3,289,250

6.14

3,837,500

6.14

5,450,000

6.15

 

 

 Appendix 5.

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

Consolidated Balance Sheets

As of December 31, 2003 (audited) and March 31, 2004 (unaudited)
   

2003

2004

2004
   

S/(000)

S/(000)

US$(000)
         

Assets

        

Current assets

        
         

Cash and cash equivalents

  

390,572

472,998

136,665
         

Investment funds

  

53,782

53,485

15,454
         

Trade accounts receivable

  

72,779

57,951

16,744
         

Other accounts receivable

  

25,777

20,386

5,890
         

Accounts receivable from affiliates

  

36,943

45,229

13,068
         

Inventories, net

  

75,685

81,090

23,430
         

Income tax credit

  

28,408

26,790

7,741
         

Current portion of prepaid value added tax and expenses

  

17,958

29,959

8,656
   

__________

__________

__________

Total current assets

  

701,904

787,888

227,648
         

Long - term accounts receivable

  

941

844

244
         

Prepaid value added tax and expenses

  

5,668

3,938

1,138
         

Investments in shares

  

1,414,727

1,531,604

442,532
         

Property, plant and equipment, net

  

387,071

391,633

113,156
         

Development costs and mineral lands, net

  

135,028

139,855

40,409
         

Deferred stripping costs

  

54,933

54,933

15,872
         

Mining concessions and goodwill, net

  

164,820

161,838

46,760
         

Deferred income tax and workers' profit sharing, net

  

291,486

273,335

78,975
   

__________

__________

__________

Total assets

  

3,156,578

3,345,868

966,734
   

___________

___________

___________

 

Consolidated Balance Sheets (Continued)

   

2003

2004

2004
   

S/(000)

S/(000)

US$(000)
         

Liabilities and shareholders' equity, net

        

Current liabilities

        

Bank loans

  

22,991

24,798

7,165

Trade accounts payable

  

51,644

54,380

15,712

Other current liabilities

  

84,267

184,785

53,391

Fair value of derivative instruments

  

97,893

92,680

26,778

Current portion of long-term debt

  

69,043

62,140

17,954

Deferred revenue from future sale

  

67,463

67,463

19,492
   

__________

__________

__________

Total current liabilities

  

393,301

486,246

140,492
   

__________

__________

__________

Other long-term liabilities

 

75,314

58,384

16,869

Fair value of derivative instruments

  

301,664

286,111

82,667

Long-term debt

  

44,558

35,786

10,340

Deferred revenue from future sale

  

628,287

614,367

177,512
   

__________

__________

__________

Total liabilities

  

1,443,124

1,480,894

427,880
   

__________

__________

__________

Minority interest

  

47,459

56,568

16,344
   

__________

__________

__________

Shareholders' equity, net

        

Capital stock, net of treasury shares by S/48,881,000 in 2003 and 2004

  

584,809

584,809

168,971

Investment shares, net of treasury shares by 65,000 in 2003 and 2004

  

1,649

1,649

476

Additional paid-in capital

  

598,434

598,434

172,908

Legal reserve

  

97,383

114,522

33,089

Retained earnings

  

213,804

299,807

86,625

Cumulative translation adjustment

  

(28,818)

(63,602)

(18,377)

Unrealized gain of investments in shares carried at fair value

  

204,955

278,550

80,483

Unrealized loss from derivative instruments

  

(6,221)

(5,763)

(1,665)
   

__________

__________

__________
         

Total shareholders' equity

  

1,665,995

1,808,406

522,510
   

__________

__________

__________

Total liabilities and shareholders' equity, net

  

3,156,578

3,345,868

966,734
   

__________

__________

__________

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

Consolidated Statements of Income (unaudited)

For the three-month periods ended March 31, 2003 and 2004

2003

2004

2004

S/(000)

S/(000)

US$(000)

Operating revenues

Net sales

162,780

201,298

58,162

Royalty income

25,091

33,753

9,752

__________

__________

__________

Total revenues

187,871

235,051

67,914

__________

__________

__________

Costs of operation

Operating costs

72,827

81,214

23,465

Depreciation

8,615

11,480

3,317

Exploration and development costs in operational mining sites

15,369

23,464

6,779

__________

__________

__________

Total costs of operation

96,811

116,158

33,561

__________

__________

__________

Gross margin

91,060

118,893

34,353

__________

__________

__________

Operating expenses

General and administrative

17,377

20,609

5,955

Exploration costs in non-operational mining areas

8,988

10,117

2,923

Selling

5,088

5,020

1,450

Royalties

4,744

4,447

1,285

__________

__________

__________

Total operating expenses

36,197

40,193

11,613

__________

__________

__________

Operating income

54,863

78,700

22,740

__________

__________

__________

Other income (expenses)

Share in affiliated companies, net

67,309

167,557

48,413

Realized deferred revenue from future sale

-

13,920

4,022

Gain from change in the fair value of derivative instruments

95,010

8,556

2,472

Realized loss in derivative instruments

(1,336)

(45,721)

(13,210)

Interest income

1,230

2,849

823

Gain (loss) from exposure to inflation

888

(4,821)

(1,393)

Interest expense

(2,395)

(1,814)

(524)

Amortization of mining concessions and goodwill

(4,122)

(2,982)

(862)

Other, net

2,201

(1,083)

(312)

__________

__________

__________

Total other income (expenses), net

158,785

136,461

39,429

__________

__________

__________

Income before worker's profit sharing, income tax and
minority interest

213,648

215,161

62,169

Workers' profit sharing

(39)

(3,804)

(1,099)

Income tax

(6,640)

(22,212)

(6,418)

__________

__________

__________

Income before minority interest

206,969

189,145

54,652

Minority interest

(13,823)

(15,572)

(4,499)

__________

__________

__________

Net income

193,146

173,573

50,153

___________

___________

___________

Basic and diluted earnings per share, stated in Peruvian Nuevos Soles and U.S. dollars

1.52

1.36

0.39

___________

___________

___________

Weighted average number of shares outstanding

127,236,219

127,236,219

127,236,219

____________

____________

___________

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

Consolidated Statements of Cash Flows (unaudited)

For the three-month periods ended March 31, 2003 and 2004

2003

2004

2004

S/(000)

S/(000)

US$(000)

Operating activities

Collection from customers

182,941

216,126

62,446

Collection of dividends

-

95,366

27,554

Collection of royalties

24,974

28,119

8,124

Collection of interest

2,530

2,849

823

Payments to suppliers and third parties

(80,307)

(89,240)

(25,784)

Payments to employees

(33,281)

(32,758)

(9,465)

Payments of exploration expenditures

(19,843)

(29,171)

(8,428)

Payments of income tax

(11,236)

(14,498)

(4,189)

Payments of royalties

(6,602)

(5,708)

(1,649)

Payments of interest

(3,965)

(1,517)

(438)

________

________

________

Net cash provided by operating activities

55,211

169,568

48,994

________

________

________

Investing activities

Payments by derivative instruments settled, net

(1,336)

(45,721)

(13,210)

Purchase of plant and equipment

(11,216)

(14,825)

(4,283)

Development expenditures

(6,256)

(9,735)

(2,813)

Increase of accounts receivable from affiliate

-

(2,652)

(766)

Payments by investments in shares

(1,556)

(1,244)

(359)

Proceeds from sale of plant and equipment

407

903

261

________

________

________

Net cash used in investing activities

(19,957)

(73,274)

(21,170)

________

________

________

Net cash used in financing activities

(15,843)

(13,868)

(4,007)

________

________

________

Net increase in cash during the period

19,411

82,426

23,817

Cash at beginning of period

93,996

390,572

112,848

________

________

________

Cash at period-end

113,407

472,998

136,665

________

________

________

 

 
 

2003

2004

2004
 

S/(000)

S/(000)

US$(000)
       

Reconciliation of net income to net cash provided by operating activities

Net income

193,146

173,573

50,153

Add (deduct)

      

Gain from change in the fair value of derivative instruments

(95,010)

(8,556)

(2,472)

Share in affiliated companies, net of dividends received

(67,309)

(76,966)

(22,238)

Minority interest

13,823

15,572

4,499

Depreciation

9,116

11,908

3,441

Expense from deferred income tax and workers' profit sharing

161

9,922

2,867

Loss (gain) from exposure to inflation

(888)

4,821

1,393

Amortization of development costs in operative mining sites

4,013

4,202

1,214

Amortization of mining concessions and goodwill

4,122

2,982

862

Long-term officers' compensation (*)

1,204

2,054

593

Accretion expense

-

986

284

Loss (gain) on sale of plant and equipment

38

(624)

(180)

Unrealized loss in investment fund costs

-

297

86

Net cost of retired plant and equipment

1,407

-

-

Net changes in assets and liabilities accounts

      

Decrease (increase) of operating assets -

      

Trade and other accounts receivable

8,543

20,219

5,842

Inventories

(3,727)

(3,598)

(1,039)

Income tax credit and value added tax and expenses

(1,778)

(8,653)

(2,500)

Deferred stripping costs

(1,441)

-

-

Increase (decrease) of operating liabilities -

      

Accounts payable

(10,209)

21,429

6,189
 

________

________

________
       

Net cash provided by operating activities

55,211

169,568

48,994
 

________

________

________

(*) This provision, which covers until the year 2013, corresponds to a long-term compensation program granted by the Company to certain officers, as further explained in Note 17 to the 2003 consolidated financial statements.

 

 

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Compañía de Minas Buenaventura S.A.A.

 

/s/ CARLOS E. GALVEZ PINILLOS

Carlos E. Gálvez Pinillos

Chief Financial Officer

 

Date: April 23, 2004