6-K 1 v154483_6k.htm
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 July 2009

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-________________.
 
 
 

 

Translation of a report and consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and subsidiaries
 
Interim unaudited consolidated financial information as of March 31, 2009 and 2008 and for the three-month periods then ended
 

 
Translation of a report and consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Report on review of interim consolidated financial statements

To the Shareholders of Compañía de Minas Buenaventura S.A.A.

We have reviewed the accompanying consolidated balance sheet of Compañía de Minas Buenaventura S.A.A. (a Peruvian company) and subsidiaries as of March 31, 2009, as well as the related consolidated statements of income, changes in shareholders’ equity and cash flows for the three-month periods ended March 31, 2009 and 2008 and explanatory notes.  Management is responsible for the preparation and presentation of these interim consolidated financial statements. Our responsibility is to express a conclusion on them based on our review.

We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. The financial statements of Minera Yanacocha S.R.L. as of March 31, 2009 and 2008 and for the three-month periods then ended have been reviewed by other auditors, whose reports on review have been furnished to us. In the consolidated financial statements of the Company, the Company’s investment in Minera Yanacocha S.R.L. amounts to US$588.7 million as of March 31, 2009 (US$528.3 million as of December 31, 2008); in addition, the share in the net income of this entity amounts to US$60.3 million for the three-month period then ended (US$81.4 million for the three-month period ended March 31, 2008). A review of interim financial information is limited primarily to make inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards. Consequently, it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
 
 
 

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Report on review of interim consolidated financial statements (continued)
 
Based on our review and on the report on limited review of Minera Yanacocha S.R.L. nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 “Interim Financial Reporting”.

Lima, Peru,
April 28, 2009

Countersigned by:

___________________________
Marco Antonio Zaldívar
C.P.C. Register No.12477
 

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Compañía de Minas Buenaventura S.A.A. and subsidiaries
 
Consolidated Balance Sheet
As of March 31, 2009 (unaudited) and December 31, 2008 (audited)

   
Note
   
2009
   
2008
 
         
US$(000)
   
US$(000)
 
                   
Assets
                 
Current assets
                 
Cash, banks and time deposits
 
4
      493,376       554,752  
                         
Trade accounts receivable, net
            73,375       65,666  
                         
Other accounts receivable, net
            22,279       23,040  
                         
Accounts receivable from associates
 
12(a)
      16,980       13,111  
                         
Inventory, net
            47,311       43,472  
                         
Current portion of prepaid taxes and expenses
            33,351       35,573  
                         
Current portion of hedge derivative financial instruments
 
13
      40,228       52,873  
                         
Embedded derivatives for concentrates sales
 
10(c)
      2,054       -  
                         
Total current assets
            728,954       788,487  
                         
Other long-term accounts receivable
            1,357       1,370  
                         
Prepaid taxes and expenses
            5,817       5,622  
                         
Derivative financial instruments
 
13
      13,570       21,464  
                         
Investment in associates
 
5
      968,531       882,947  
                         
Mining concessions and property, plant and equipment, net
            255,426       247,298  
                         
Development costs, net
            112,109       110,014  
                         
Deferred income tax and workers´profit sharing asset, net
 
9
      202,905       209,167  
                         
Other assets
            2,266       1,929  
                         
Total assets
            2,290,935       2,268,298  

   
Note
   
2009
   
2008
 
         
US$(000)
   
US$(000)
 
                   
Liabilities and shareholders’ equity, net
                 
Current liabilities
                 
Trade accounts payable
          36,327       35,944  
Income tax payable
          5,656       4,561  
Current portion of other current liabilities
          79,165       64,817  
Embedded derivatives for concentrates sales
          -       9,953  
Current portion of long-term debt
 
6
      98,190       98,190  
Total current liabilities
            219,338       213,465  
                         
Other long-term liabilities
            91,884       96,736  
Long-term debt
 
6
      204,559       229,105  
Total liabilities
            515,781       539,306  
                         
Shareholders’ equity, net
 
7
                 
Capital stock, net of treasury shares for US$62,622,000 in 2009 and 2008
            750,540       750,540  
Investment shares, net of treasury shares for US$142,000 in 2009 and 2008
            2,019       2,019  
Additional paid-in capital
            225,978       225,978  
Legal reserve
            53,007       53,007  
Other reserves
            269       269  
Retained earnings
            612,784       517,583  
Cumulative translation loss
            (34,075 )     (34,075 )
Unrealized gain on valuation of hedge derivative financial Instruments, net
            11,013       16,162  
Unrealized gain on available-for-sale financial assets
            163       118  
              1,621,698       1,531,601  
Minority interest
            153,456       197,391  
Total shareholders’ equity, net
            1,775,154       1,728,992  
                         
Total liabilities and shareholders’ equity, net
            2,290,935       2,268,298  
 
The accompanying notes are an integral part of the balance sheet.
 

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and subsidiaries
Consolidated Statement of Income (unaudited)
For the three-month periods ended March 31, 2009 and 2008
 
   
Note
   
2009
   
2008
 
         
US$(000)
   
US$(000)
 
                   
Operating income
                 
Net sales
 
10
      163,105       212,000  
Royalty income
 
12(b)
      13,866       14,258  
Total income
            176,971       226,258  
Operating costs
                       
Cost of sales, without considering depreciation and amortization
            56,940       49,109  
Exploration in units in operation
            11,964       11,315  
Depreciation and amortization
            17,947       12,678  
Total operating costs
            86,851       73,102  
Gross income
            90,120       153,156  
Operating expenses
                       
General and administrative
 
11
      16,707       27,546  
Exploration in non-operating areas
            7,243       11,401  
Royalties
            5,193       6,921  
Sales
            1,968       4,541  
Total operating expenses
            31,111       50,409  
Operating income before unusual item
            59,009       102,747  
Net loss from release of commitments in commercial contracts
 
10(b)
      -       (415,135 )
Operating income (loss) after unusual item
            59,009       (312,388 )
Other income (expenses), net
                       
Share in associates, net
 
5(b)
      79,907       145,722  
Interest income
            1,481       2,199  
Interest expense
            (4,843 )     (6,523 )
Gain (loss) on currency exchange difference
            (530 )     8,978  
Other, net
            1,651       611  
Total other income, net
            77,666       150,987  
Income (loss) before workers´ profit sharing, income tax and minority interest
            136,675       (161,401 )
                         
Provision for workers´ profit sharing
 
9(b)
      (5,076 )     25,370  
Provision for income tax
 
9(b)
      (22,062 )     100,747  
Net income (loss)
            109,537       (35,284 )
                         
Net income attributable to minority interest
            (9,247 )     (27,684 )
Net income (loss) attributable to Buenaventura
            100,290       (62,968 )
Basic and diluted earning (loss) per share attributable to Buenaventura, stated in U.S. dollars
 
8
      0.39       (0.25 )
 
The accompanying notes are an integral part of this consolidated statement.
 

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and subsidiaries
 
Consolidated Statements of Changes in Shareholders’ Equity (unaudited)
For the three-month periods ended March 31, 2009 and 2008
 
   
Capital stock,
 net of treasury shares
                                                                   
   
Number of
shares
outstanding
   
Common
shares
   
Investment
shares
   
Additional
paid-in capital
   
Legal reserve
   
Other reserves
   
Retained
earnings
   
Cumulative
translation loss
   
Unrealized
gain on
valuation of
hedge
derivative
financial
instruments,
net
   
Unrealized
gain on
available-for-
sale financial
assets
   
Total
   
Minority
interest
   
Total Equity
 
         
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
 
Balance as of January 1, 2008
    126,879,832       173,930       473       177,713       37,679       269       1,056,937       (34,075 )     1,518       158       1,414,602       165,614       1,580,216  
Dividends declared and paid, notes 7(a) and 7(b)
    -       -       -       -       -       -       (27,989 )     -       -       -       (27,989 )     (22,457 )     (50,446 )
Capitalization of retained earnings, note 7(c)
    -       576,610       1,546       48,265       -       -       (626,421 )     -       -       -       -       -       -  
Unrealized loss on valuation of hedge derivative financial instruments held by El Brocal, note 13
    -       -       -       -       -       -       -       -       (614 )     -       (614 )     (1,735 )     (2,349 )
Unrealized loss on available-for-sale financial assets
    -       -       -       -       -       -       -       -       -       (18 )     (18 )     -       (18 )
Decrease of minority interest in El Brocal
    -       -       -       -       -       -       -       -       -       -       -       (6,400 )     (6,400 )
Net loss
    -       -       -       -       -       -       (62,968 )     -       -       -       (62,968 )     27,684       (35,284 )
                                                                                                         
Balance as of March 31, 2008
    126,879,832       750,540       2,019       225,978       37,679       269       339,559       (34,075 )     904       140       1,323,013       162,706       1,485,719  
                                                                                                         
Balance as of January 1, 2009
    253,759,664       750,540       2,019       225,978       53,007       269       517,583       (34,075 )     16,162       118       1,531,601       197,391       1,728,992  
Dividends declared and paid, notes 7(a) and 7(b)
    -       -       -       -       -       -       (5,089 )     -       -       -       (5,089 )     (16,539 )     (21,628 )
Unrealized loss on valuation of hedge derivative financial instruments held by El Brocal, note 13
    -       -       -       -       -       -       -       -       (5,149 )     -       (5,149 )     (8,078 )     (13,227 )
Unrealized gain from available-for-sale financial assets
    -       -       -       -       -       -       -       -       -       45       45       -       45  
Decrease of minority interest in El Brocal, note 1(e)
    -       -       -       -       -       -       -       -       -       -       -       (28,565 )     (28,565 )
Net income
    -       -       -       -       -       -       100,290       -       -       -       100,290       9,247       109,537  
                                                                                                         
Balance as of March 31, 2009
    253,759,664       750,540       2,019       225,978       53,007       269       612,784       (34,075 )     11,013       163       1,621,698       153,456       1,775,154  
 
The accompanying notes are an integral part of this consolidated statement.
 

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and subsidiaries
 
Consolidated Statement of Cash Flows (unaudited)
For the three-month periods ended March 31, 2009 and 2008
 
   
2009
   
2008
 
   
US$(000)
   
US$(000)
 
             
Operating activities
           
Proceeds from sales
    144,530       178,062  
Royalties received
    9,082       11,598  
Value Added Tax recovered
    6,467       -  
Interest received
    1,987       3,314  
Payments to suppliers and third parties
    (61,106 )     (57,778 )
Payments to employees
    (34,095 )     (42,274 )
Payments for exploration activities
    (17,719 )     (18,853 )
Payments of royalties
    (8,035 )     (10,229 )
Income tax paid
    (7,206 )     (23,833 )
Payments of interest
    (3,966 )     (3,216 )
Release of commitments in commercial contracts
    -       (517,143 )
Net cash and cash equivalents provided by (used in)operating activities
    29,939       (480,352 )
Investment activities
               
Change in accounts receivable from associates
    (2,661 )     (447 )
Proceeds from sale of plant and equipment
    180       95  
Payments for purchase of investment shares in associates
    (34,914 )     -  
Additions to mining concessions and property, plant and equipment
    (18,223 )     (9,849 )
Disbursements for development activities
    (11,152 )     (5,140 )
Increase in time deposits
    (3,527 )     (46,340 )
Net cash and cash equivalents used in investment activities
    (70,297 )     (61,681 )
Financing activities
               
Proceeds from long-term debt
    (24,545 )     (532 )
Payments of bank loans
    -       (60,000 )
Proceeds from bank loans
    -       510,000  
Net cash and cash equivalents provided by (used in) financing activities
    (24,545 )     449,468  
Decrease in cash and cash equivalents for the year, net
    (64,903 )     (92,565 )
Cash and cash equivalents at beginning of year, note 4
    532,027       302,864  
Cash and cash equivalents at the year-end, note 4
    467,124       210,299  
 
 
 

 
 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Consolidated Statement of Cash Flows (unaudited) (continued)

   
2009
   
2008
 
   
US$(000)
   
US$(000)
 
             
Reconciliation of net income to cash and cash equivalents provided by (used in) operating activities
           
Net income (loss) attributable to Buenaventura
    100,290       (62,968 )
Add (less)
               
Depreciation and amortization
    17,947       12,678  
Deferred income tax and employee profit sharing benefit
    13,576       (147,390 )
Net income attributable to minority interest
    9,247       27,684  
Provision for long-term officers´ compensation
    6,423       13,608  
Loss (gain) on currency exchange difference
    530       (8,978 )
Gain on sale of property, plant and equipment
    (180 )     (95 )
Net cost of plant and equipment retired and sold
    128       56  
Income from release of commitments in commercial contracts
    -       (102,008 )
Allowance for doubtful trade accounts receivable
    -       5,372  
Accretion expense of the provision for closure of mining units
    1,313       956  
Share in associates, net of dividends received in cash
    (79,907 )     (145,722 )
Provision for estimated fair value of embedded derivatives
    (3,002 )     (2,262 )
Reversal for slow moving and obsolescence supplies
    (320 )     (16 )
Net changes in operating assets and liabilities accounts
               
Decrease (increase) in operating assets -
               
Trade accounts receivable
    (7,709 )     (21,889 )
Other accounts receivable
    (967 )     1,124  
Accounts receivable from associate
    (4,784 )     (3,107 )
Inventory
    (3,839 )     (6,547 )
Prepaid taxes and expenses
    2,027       (7,953 )
Increase (decrease) in operating liabilities -
               
Trade accounts payable
    333       3,566  
Income tax payable
    1,095       (8,935 )
Other liabilities
    (22,262 )     (27,526 )
Net cash and cash equivalents provided by (used in) operating activities
    29,939       (480,352 )
Transactions that did not affect cash flows:
               
Dividends declared and not paid
    16,018       39,630  
 
The accompanying notes are an integral parts of this consolidated statement.
 

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and subsidiaries
 
Notes to the interim consolidated financial statements (unaudited)
As of March 31, 2009 and 2008
 
1.
Identification and Business Activity
 
(a)
Identification -
Compañía de Minas Buenaventura S.A.A. (hereafter “Buenaventura” or “the Company”) is a publicly traded corporation incorporated in 1953. Buenaventura’s stock is traded on the Lima and New York Stock Exchanges through American Depositary Receipts (ADRs), which represent Company shares deposited in the Bank of New York. Buenaventura’s legal domicile is at Av. Carlos Villaran 790, Santa Catalina, Lima, Peru.

 
(b)
Business Activity -
Buenaventura (individually and in association with third parties) is engaged in the exploration, extraction, concentration, smelting and commercialization of polymetallic ores and metals.

Buenaventura directly operates seven mining units located in Peru: Uchucchacua, Orcopampa, Poracota, Julcani, Recuperada, Antapite and Ishihuinca. In addition, the Company has a controlling interest in Sociedad Minera El Brocal S.A.A. (hereinafter “El Brocal”), which operates the Colquijirca mining unit, and in Compañía de Exploraciones, Desarrollo e Inversiones Mineras S.A.C. (hereinafter “Cedimin”), which operates the Shila and Paula mining units. Also, the Company holds interests in a number of other mining companies including Minera Yanacocha S.R.L. (hereinafter “Yanacocha”) and Sociedad Minera Cerro Verde S.A.A. (hereinafter “Cerro Verde”). The Company also owns an electric power distribution company and a mining engineering services company. See note 1(d).

 
(c)
Approval of consolidated financial statements –
The consolidated financial statements as of March 31, 2009 have been approved by Management and will be presented for the approval of the Board of Directors and the Shareholders within the terms established by law. In Management’s opinion, the accompanying consolidated financial statements will be approved without changes by the Board of Directors and Shareholders’ Meetings that will be held in April, 2009. The consolidated financial statements as of December 31, 2008 were approved by the Shareholders’ Meeting held on March 27, 2009.

 
 

 
 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Notes to the interim consolidated financial statements (unaudited) (continued)
 
(d)
The consolidated financial statements include the financial statements of the following subsidiaries:

   
Ownership Percentage as of
 
   
March 31, 2009
   
December 31, 2008
 
   
Direct
   
Indirect
   
Direct
   
Indirect
 
   
%
   
%
   
%
   
%
 
                         
Investment and mining concessions held, exploration and exploitation of minerals
                       
                         
Compañía de Exploraciones, Desarrollo e Inversiones Mineras S.A.C. - CEDIMIN
    44.83       55.17       44.83       55.17  
Compañía Minera Condesa S.A.
    100.00       -       100.00       -  
Compañía Minera Colquirrumi S.A.
    90.00       -       90.00       -  
Sociedad Minera El Brocal S.A.A. (*) (f)
    4.24       39.14       4.17       29.59  
Inversiones Colquijirca S.A. (**) (e)
    81.22       -       61.42       -  
S.M.R.L. Chaupiloma Dos de Cajamarca
    20.00       40.00       20.00       40.00  
Minera La Zanja S.R.L.
    53.06       -       53.06       -  
                                 
Electric power activity
                               
Consorcio Energético de Huancavelica S.A.
    100.00       -       100.00       -  
                                 
Services
                               
Buenaventura Ingenieros S.A.
    100.00       -       100.00       -  
Contacto Corredores de Seguros S.A.
    -       100.00       -       100.00  

(*)
As of March 31, 2009 and December 31, 2008, the equity share in capital stock (common shares with voting Rights) in El Brocal was 45.97 and 35.77 per cent, respectively.

(**)
Inversiones Colquijirca S.A. has a 51.06 percent interest in Sociedad Minera El Brocal S.A.A.

(e)
Purchase of capital stock shares in Inversiones Colquijirca S.A. -
On February 19, 2009, the Company agreed with Teck Cominco Metals Ltd. the purchase of 19.80 per cent of the representative capital stock shares of Inversiones Colquijirca S.A. (hereafter “Colquijirca”). The purchase price of the shares was US$35,000,000, which had been completely paid as of the date of the consolidated balance sheet.

According to Buenaventura’s accounting policies, based on “Parent entity extension” method, The Management calculated the difference between the cost of acquisition of the additional share in Colquijirca amounting to US$35,000,000 and the book value of the minority interest acquired amounting to US$28,565,000. The difference by US$6,435,000 has been recorded as Mining Rights in the “Mining concessions and property, plant and equipment, net” caption in the consolidated balance sheet.
 
2


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 
(f) 
Project for the expansion of El Brocal operations –
On August 15, 2008, the Board of Directors of El Brocal approved a project to expand its operations in order to reach a treatment level of 18,000 MT per day of ore from its Tajo Norte and Marcapunta mines.  The project involves setting up the open pit, expanding the level of operations, modernizing the Huaraucaca concentrator plant and adapting those services required to support the new production capacity.

As of March 31, 2009 and December 31, 2008, El Brocal had executed the following works related to the project to expand operations:

   
2009
   
2008
 
   
US$(000)
   
US$(000)
 
             
             
Mine development
    14,988       14,988  
Concentrator plant
    9,732       4,395  
Feasibility study
    1,321       1,321  
Environmental impact study
    828       -  
Construction of Huachuacaja tailings area
    748       635  
Other minor activities
    805       272  
                 
      28,422       21,611  

2.
Interim unaudited consolidated financial statements
Basis of presentation -
The interim unaudited consolidated financial statements for the three-month periods ended
March 31, 2009 and 2008 had been prepared in conformity with IAS 34 “Interim Financial Reporting”.

The interim consolidated financial statements do not include all the information and disclosures required in the Company’s annual consolidated financial statements and should be read together with the consolidated financial statements as of December 31, 2008.

 
3

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

Significant accounting principles and practices -
The criteria and accounting basis used by the Company in preparing the accompanying interim consolidated financial statements are consistent to those used in the preparation of the Company’s annual consolidated financial statements.

Reclassifications -
For improving the presentation of consolidated financial statement, the Company has made the following reclassification for the three-month period ended March 31, 2008 to make it comparable with the same period in 2009:

 
-
The amortization of development costs amounting to US$3,490,000 has been reclassified from the  “Exploration in units in operation” caption to the “Depreciation and amortization” caption of the consolidated statement of income.

3.
Seasonality of operations
The Company and its subsidiaries operate continuously without important fluctuations due to seasonality.

4.
Cash, banks and time deposits
 
(a)
The table below presents the components of this caption:

   
As of
March 31,
 2009
   
As of
December 31, 2008
 
   
US$(000)
   
US$(000)
 
             
Cash
    626       468  
Bank accounts
    172,063       45,888  
Time deposits (b)
    294,435       307,860  
Escrow account (c)
    -       177,811  
Cash balances included in the consolidated statement of cash flows
    467,124       532,027  
Time deposits with original maturity greater than 90 days (d)
    26,252       22,725  
                 
      493,376       554,752  

 
4

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 
(b)
The table below presents the components of time deposits as of March 31, 2009:

Currency
Original
maturities
Annual interest rate
     
   
%
 
US$(000)
 
           
U.S. Dollars
From 21 to 90 days
From 0.30 to 2.65
    279,250  
Nuevos Soles
From 18 to 66 days
From 5.90 to 6.50
    15,185  
          294,435  

The table below presents the components of time deposits as of December 31, 2008:

Currency
Original
maturities
Annual interest rate
     
   
%
 
US$(000)
 
           
U.S. Dollars
From 8 to 77 days
From 0.15 to 4.5
    275,400  
Nuevos Soles
From 30 to 90 days
From 6.75 to 7.20
    32,460  
          307,860  

 
(c)
During the year 2008, in compliance with the Syndicated Loan Agreement (see note 6), the Company established an escrow account in a local bank for US$177,811,000.  In accordance with the amendments made to the Syndicated Loan Agreement, as of December 31, 2008 it was no longer necessary to maintain this additional guarantee. This deposit no longer secures the long-term debt, but remains restricted until the pledged assets are registered.  On February 2, 2009, the funds held in the escrow account were transferred to unrestricted Buenaventura bank accounts.

 
(d)
As of March 31, 2009, corresponds to the following time deposits:

Currency
Original
maturities
Annual interest rate
     
   
%
 
US$(000)
 
           
U.S. Dollars
From 91 to 296 days
From 0.40 to 2.75
    19,340  
Nuevos Soles
From 291 to 296 days
From 6.25 to 6.60
    6,912  
          26,252  

 
5

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

As of December 31, 2008, corresponds to the following time deposits:

Currency
Original
maturities
 
Annual interest rate
       
     
%
   
US$(000)
 
               
U.S. Dollars
91 days
   
6.10
      16,000  
Nuevos Soles
From 96 to 182 days
 
From 5.90 to 6.70
      6,725  
                22,725  

5.
Investments in associates
 
(a)
The table below presents the components of this caption:

   
Share in shareholders’ equity
   
Amount
 
   
As of
March 31, 2009
   
As of
December 31,
2008
   
As of
March 31, 2009
   
As of
December 31,
2008
 
   
%
   
%
   
US$(000)
   
US$(000)
 
                         
Investments in associates -
                       
Minera Yanacocha S.R.L. (c)
                       
Equity share
    43.65       43.65       588,700       528,330  
Payment in excess of the share in fair value of assets and liabilities, net
                    17,285       17,748  
                      605,985       546,078  
Sociedad Minera Cerro Verde S.A.A. (c)
                               
Equity share
    19.21       19.05       275,261       252,242  
Payment in excess of the share in fair value of assets and liabilities, net
                    83,671       81,089  
                      358,932       333,331  
                                 
Available-for-sale investments -
                               
Other
                    3,614       3,538  
                      968,531       882,947  

 
6

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 
(b)
The table below presents the net share in associates:

   
For the three-month periods
ended March 31,
 
   
2009
   
2008
 
   
US$(000)
   
US$(000)
 
             
Minera Yanacocha S.R.L.
    59,849       81,083  
Sociedad Minera Cerro Verde S.A.A.
    20,058       64,637  
Other
    -       2  
      79,907       145,722  

 
(c)
The investments held in Yanacocha (a gold mine located in Cajamarca, Peru) and Cerro Verde (a copper mine located in Arequipa, Peru), represent the Company’s most significant investments. The share in their results has been significant in relation to the Company’s net earnings in the three-month periods ended March 31, 2009 and 2008.

Increase in investments in associates balance -
Investment in associates´ balance increased by US$85,584,000 compared to the balance as of December 31, 2008; which was originated by the share in Yanacocha and Cerro Verde, shown in (b).

Decreased in share in associates -
The share in associates during the three-month period ended March 31, 2009 shows a decreased of US$65,815,000 compared to same period of 2008, mainly due to the net effect of:

 
-
A decreased of US$21,234,000 in the share in Yanacocha, as a consequence of the decreased in the net income reported in the first quarter in 2009 compared with the first quarter in 2008 of US$48,289,000.  The lower income of Yanacocha is explained by the decreased of the gold price average (US$908.00 per ounce of gold during the three-month period ended in March 31, 2009 compared with US$926.00 in the same period of 2008) and the lower volume of gold sold during the three-month period ended March 31, 2009 compared to same period of 2008 (469,953 gold ounces during the first quarter of 2009 compared to 539,074 gold ounces during the first quarter of 2008).

 
7

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 
-
A decreased of US$44,579,000 in the share in Cerro Verde as a consequence of the decreased of US$245,872,000 in the net income reported in the first quarter in 2009 compared with the first quarter in 2008.  The lower income of Cerro Verde is explained by the decreased of the copper price average (price average of US$1.56 during the three-month period ended in March 31, 2009 compared with a price average of US$3.54 in same period of 2008)and the lower volume of copper sold (115,038 copper pounds in the first quarter in 2009 compared to 125,307 copper pounds in the first quarter in 2008, due to the lower average of head grade and recoverability factor of the ore mineral treated).

Summary of financial information based on the financial statements of Yanacocha and
Cerro Verde -
The table below presents the principal amounts in the financial statements of Yanacocha and Cerro Verde, adjusted to conform to Buenaventura’s accounting practices:

   
Yanacocha
   
Cerro Verde
 
   
As of 
March 31,
   
As of December
31,
   
As of 
March 31,
   
As of December
31,
 
   
2009
   
2008
   
2009
   
2008
 
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
 
                         
Balance Sheet
                       
Total assets
    2,013,188       1,895,681       1,925,334       1,983,572  
Total liabilities
    662,395       682,893       416,575       659,397  
Shareholders’ equity
    1,350,793       1,212,788       1,508,759       1,324,175  

   
Yanacocha
   
Cerro Verde
 
   
For the three-month periods
ended March 31,
   
For the three-month periods
ended March 31,
 
   
2009
   
2008
   
2009
   
2008
 
   
US$(000)
   
US$(000)
   
US$(000)
   
US$(000)
 
                         
Results
                       
Total income
    426,734       499,205       320,085       711,352  
Operating income
    198,698       251,660       175,235       565,334  
Net income
    137,872       186,161       106,194       352,066  


 
8

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

6.
Long-term debt
 
(a)
The table below presents the detail of long-term debt as of March 31, 2009 and December 31, 2008:
 
   
Original amount
 
Period
 
Guarantee
 
Annual interest rate
 
Maturities
 
2009
 
2008
 
   
US$ (000)
                 
US$(000)
 
US$(000)
 
Compañía de Minas Buenaventura S.A.A.
                             
Syndicated Loan Agreement (b)
 
450,000
 
5 years
 
None
 
Three-month LIBOR plus  2.25%  (4.43% as of March 31, 2009)
 
Quarterly maturities of US$14,667,000 from August 2008 to May 2013.  Prepaids can be made in each quarterly maturity
 
249,334
 
264,000
 
Banco de Crédito del Perú
 
75,000
 
4 years
 
Secured interest of US$13,748,000 on machinery and equipment
 
Three-month LIBOR plus 0.85% (3.03% as of March 31, 2009)
 
Quarterly maturities of US$9,375,000 from September 2008 to June 2010
 
46,875
 
56,250
 
                               
Consorcio Energético de Huancavelica S.A.
                             
BBVA Banco Continental
 
9,000
 
4 years
 
None
 
Three-month LIBOR plus 1.25% (3.43% as of March 31,  2009)
 
Quarterly maturities of US$500,000 from March 2009 to June 2012
 
6,500
 
7,000
 
                               
Other subsidiaries
 
-
 
-
 
-
 
-
 
-
 
40
 
45
 
                               
                       
302,749
 
327,295
 
Non-current portion
                     
(204,559)
 
(229,105)
 
                               
Current portion
                     
98,190
 
98,190
 
 
 
(b)
As part of the Syndicated Loan Agreement, Buenaventura agrees to:
 
(i)
Not entering into derivative contracts with speculation purposes as defined in the International Financial Reporting Standards.

 
(ii)
Maintain a Debt Ratio financial index less than 3.5 as of the end of each quarter.  This ratio is determined by dividing Buenaventura’s consolidated financial debt by the sum of the consolidated EBITDA and the collection of dividends for the twelve-month period following the calculation date.  As of March 31, 2009 the Debt Ratio was 0.41.

In the opinion of Buenaventura’s Management, as of the date of submitting the financial statements, the Company has duly complied with all of the obligations assumed under the Syndicated Loan Agreement.

 
9

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

  7.
Shareholders’ equity, net
 
(a)
Dividends declared -
The information about declared dividends for the three-month periods ended March 31, 2009 and 2008 is as follows:

Meeting 
Date
 
Dividends
declared
   
Dividends
per share
 
     
US$
   
US$
 
               
Dividends 2009
             
Mandatory annual  shareholders meeting
March 27, 2009
    5,513,000       0.02  
Less – Dividends granted to subsidiary
      (424,000 )        
        5,089,000          
                   
Dividends 2008
                 
Mandatory annual  shareholders meeting
March 27, 2008
    30,320,000       0.11  
Less – Dividends granted to subsidiary
      (2,331,000 )        
        27,989,000          

As of March 31, 2009, the declared dividends of first quarter of 2009, agreed in the shareholders’ meeting held on March 27, 2009 had not been paid yet to the shareholders; They are presented in the caption “Current portion of other current liabilities” in the consolidated balance sheet.

 
(b)
As of March 31, 2009 and 2008, the effect of declared dividends by subsidiaries that will be delivered to minority shareholders, is made up as follows:

   
2009
   
2008
 
   
US$(000)
   
US$(000)
 
             
Sociedad Minera El Brocal S.A.A.
    11,524       19,317  
S.M.R.L. Chaupiloma Dos de Cajamarca
    2,800       3,140  
Inversiones Colquijirca S.A.
    2,215       -  
      16,539       22,457  

 
10

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 
(c)
Capitalization of retained earnings -
The Mandatory annual Shareholders’ Meeting held March 27, 2008, agreed to increase the nominal value of the common and investment shares from S/4.00 to S/20.00 each.  For this, the Meeting approved the following capitalizations:

 
(i)
Capitalization of results from exposure to inflation as of December 31, 2004 accumulated of capital stock and investment shares amounting to S/96,858,000 (US$28,230,000).  As of March 31, 2009, results from exposure to inflation was included as part of capital stock.  As a consequence, no additional movement was required in the consolidated statement of changes in shareholders’ equity.

 
(ii)
Capitalization of retained earnings amounting to S/2,108,219,000 (US$626,421,000) increased the capital stock and investment shares accounts by US$576,610,000 (net of treasury stock for US$48,160,000) and US$1,546,000 (net of treasury stock for US$105,000), respectively.

As a result of the capitalizations, the nominal value of treasury shares (common and investment) increased from US$14,499,000 to US$62,764,000 (an increase of US$48,265,000).  In compliance with accounting standards, the Company shows the nominal value of treasury shares net of the capital stock, as a consequence the increase in the nominal value of the treasury shares was net off in the same value of capital stock increasing the additional capital account of consolidated statement of changes in shareholders’ equity.

 
(d)
Stock Split -
In the General Shareholders Meeting held March 27, 2008, shareholders agreed that once the capitalization of retained earnings described in paragraph (c) and registered in Peru’s public registries, these would be split by changing the nominal value of common and investment shares from S/20.00 to S/10.00.

The Board of Directors in its session of July 1, 2008 agreed on the schedule to carry out this splitting of Company shares.  According to this schedule, the date of registration of the operation was July 18, 2008.  As from July 21, 2008 the Lima Stock Exchange traded the new number of shares effective as of such date (254,442,328 shares made up by 253,759,664 common shares and 682,664 investment shares) and as from July 23, 2008 the New York Stock Exchange did the same.

 
11

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 8.
Basic and diluted earning per share
The composition of shares effective as of March 31, 2009 and 2008, as well as the number of shares considered in the calculation of net income per basic and diluted share, are described in detail below:

   
Shares Outstanding
   
Number of shares 
(denominator in calculation of net income per basic and
diluted share after stock split effect)
 
   
Common
   
Investment
   
Treasury shares
   
Total
   
Common
   
Investment
   
Total
 
               
Common
   
Investment
                         
                                                 
Balance as of January 1, 2008
    137,444,962       372,320       (10,565,130 )     (30,988 )     127,221,164       126,879,832       341,332       127,221,164  
                                                                 
Shares issued as a result of stock split (note 7(d))
    -       -       -       -       -       126,879,832       341,332       127,221,164  
Balance as of March 31, 2008
    137,444,962       372,320       (10,565,130 )     (30,988 )     127,221,164       253,759,664       682,664       254,442,328  
                                                                 
                                                                 
Balance as of January 1, 2009 and
March 31, 2009
    274,889,924       744,640       (21,130,260 )     (61,976 )     254,442,328       253,759,664       682,664       254,442,328  

The table below presents the computation of basic and diluted earnings (losses) per share as of March 31, 2009 and 2008:

   
For the three-month periods 
ended March 31,
 
   
2009
   
2008
 
             
Net income (loss) attributable to Buenaventura (numerator) – US$
    100,290,000       (62,968,000 )
Shares (denominator)
    254,442,328       254,442,328  
Basic and diluted earning (loss) per share – US$
    0.39       (0.25 )

 
12

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

  9.
Deferred income tax and workers´ profit sharing asset, net
 
(a)
The table below presents the components of this caption, according to the items that give rise to them:

   
As of March
31, 2009
   
As of December 31,
2008
 
   
US$(000)
   
US$(000)
 
             
Deferred asset
           
Tax – loss carry forward
    186,935       194,958  
Provision for closure of mining units, net
    12,511       14,818  
Stock appreciation rights provision
    6,584       4,993  
Difference in depreciation and amortization rates
    10,769       10,946  
Effect on translation into U.S. dollars
    770       1,119  
Embedded derivative from sale of concentrates
    (730 )     2,955  
Impairment of mining concessions and property, plant and equipment and development costs
    5,785       4,513  
Environmental liability for Santa Barbara mining unit
    1,773       1,773  
Other
    8,691       5,792  
      233,088       241,867  
Deferred liability
               
Difference in amortization rates
    (9,885 )     (5,878 )
Other
    (1,146 )     (358 )
      (11,031 )     (6,236 )
                 
Deferred liability affecting shareholders’ equity
               
Derivative financial instruments
    (19,152 )     (26,464 )
                 
Deferred asset, net
    202,905       209,167  

 
13

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 
 (b)
The current and deferred portions of the income (expense) tax and workers’ sharing benefit included in the consolidated statements of income for the three-month periods ended March 31, 2009 and 2008 are made up as follows:

   
2009
   
2008
 
   
US$(000)
   
US$(000)
 
             
Workers’ profit sharing
           
Current - legal
    (2,024 )     (2,734 )
Current - without effect of unusual item
    -       (5,017 )
Deferred
    (3,052 )     33,121  
      (5,076 )     25,370  
Income tax
               
Current
    (11,538 )     (13,522 )
Deferred
    (10,524 )     114,269  
      (22,062 )     100,747  

10.
Net sales
 
(a)
The table below presents the net sales as of March 31, 2009 and 2008:

   
As of March 31, 2009
   
As of March 31, 2008
   
Variation
 
   
US$(000)
   
US$(000)
   
US$(000)
 
                   
Net sales by product
                 
Gold
    83,537       77,855       5,682  
Silver
    48,443       75,457       (27,014 )
Lead
    8,834       23,303       (14,469 )
Zinc
    17,165       46,163       (28,998 )
Copper
    5,743       12,521       (6,778 )
 
    163,722       235,299       (71,577 )
                         
Penalties
    (19,548 )     (30,777 )     11,229  
      144,174       204,522       (60,348 )
Embedded derivative from sale of concentrates
    3,002       6,059       (3,057 )
Hedging operations, note 13
    9,937       (47 )     9,984  
      157,113       210,534       (53,421 )
Net sales by services, electric power and other
    5,992       1,466       4,526  
                         
      163,105       212,000       (48,895 )
 
During the three-month period ended March 31, 2009, the net sales of the Company decreased approximately 23 per cent during the same period of 2008, explained by the net effect of:

 
14

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 
(i)
Decreased in zinc sales for US$28,998,000 explained by the decreased in the international quotation of zinc and the lower volume sold.  See note 14.

 
(ii)
Decreased in silver sales for US$27,014,000 as a consequence of minor silver quotation and the lower volume sold.  See note 14.

 
(iii)
Decreased in lead sales for US$14,469,000 explained by the decreased of the lead price average and the lower volume sold.

 
(iv)
Increased in gold sales for US$5,682,000 due to net effect of the higher gold ounces sales, partially offset by the lower gold quotation.  See note 14.

 
(iv)
Increase of income related to metal-price hedging transactions amounting to US$9,984,000, as a result of the increase of volume of transaction settled by El Brocal during the three-month period ended as of March 31, 2009 (4,950 MT during the first quarter of 2009 compared with 250 MT during the first quarter of 2008).

(b)
Release of commitments in commercial contracts outstanding as of December 31, 2007 -
 
In January and February of 2008, Buenaventura revised the sales contracts with its customers, to release the commitments related to quantity, date and quotation on sales contracts to sell the committed gold ounces at market prices in force between the years 2010 – 2012 in accordance with Buenaventura’s gold availability.

As consequence of the aforementioned, Buenaventura was released from the obligation to sell 922,000 ounces of gold at fixed prices, varying between US$345 and US$451 per ounces of gold; thus, they will be sold at the market price in force on the date of the physical delivery of the gold committed.

For these transactions, Buenaventura has made a payment of US$517,143,000 (US$82,592,000 in January 2008 and US$434,551,000 in February 2008, respectively) and recorded a decrease in the liability corresponding to the executory gold delivery contracts liability amounting to US$102,008,000 with credit to income of the period.  The resulting net loss of US$415,135,000 is presented in the “Net loss from release of commitments in sales contracts” caption in the consolidated statements of income for the period ended March 31, 2008.

 
15

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

 (c)
Embedded derivative from changes of the quotes in provisional commercial settlement -
 
As of March 31, 2009, the provisional commercial settlement (zinc, lead and copper metric tons) held as of this date, quotation period of final liquidations and fair value of embedded derivatives for the concentrate sales are the following:

Embedded derivative for concentrate sales held by Buenaventura:

           
Quotations
       
Metal
 
Volume
 
Expiry
 
Provisional
   
Future
   
Fair
value
 
           
US$
   
US$
   
US$(000)
 
                           
Silver
 
13,734 OZ
 
April 09 – August 09
    11.04 - 13.43       12.15 - 13.12       (1,179 )
Gold
 
2,350 OZ
 
April 09 – May 09
    842.23 - 924.62       881.40 - 924.27       (82 )
Copper
 
21 MT
 
April 09
    166.59       170.09       570  
Lead
 
9,587 MT
 
April 09 – June 09
    1,082.63 - 1,238.91       1,238.91 - 1,328.00       278  
Zinc
 
2,730 MT
 
April 09 – August 09
    1,112.08 - 1,199.75       1,216.75 - 1,332.00       130  
                              (283 )

Embedded derivative for concentrate sales held by El Brocal:

           
Quotations
       
Metal
 
Volume
 
Expiry
 
Provisional
   
Future
   
Fair
value
 
           
US$
   
US$
   
US$(000)
 
Zinc
 
41,436 MT
 
April 09 – May 09
    1,105.00 - 1,226.00       1,296.00 - 1,309.00       455  
Lead
 
13,451 MT
 
April 09
    963.00 - 1,239.00       1,262.00       1,299  
Copper
 
20,084 MT
 
April 09
    2,917.00 - 6,957.00       4,011.00       583  
                                 2,337  
                                 
Total
                            2,054  

The futures quotes for the dates on which it is expected to settle the open positions as of March 31, 2009 are taken from publications of the London Metals Exchange.

 
16

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

11.
General and administrative expenses
This caption General and administrative expenses shows a reduction of 39 per cent, from an expense of US$27,546,000 during the three-month period ended March 31, 2008 to an expense of  US$16,707,000 in the same period in 2009.  This is due mainly to the decrease in the provision for long term compensation to officers for the amount of US$13,608,000 during the three-month period ended March 31, 2008 compared with US$6,423,000 in the same period in 2009, and for the record, in the first quarter in 2008 of a US$5,372,000 provision for allowance for doubtful account.

12.
Related party transactions
 
(a)
As a result of the transactions indicated in the paragraph (b), the Company has the following accounts receivable from associates:

   
As of
March 31,
2009
   
As of
December 31,
 2008
 
   
US$(000)
   
US$(000)
 
             
Minera Yanacocha S.R.L.
    16,902       12,118  
Other
    78       993  
                 
      16,980       13,111  

 
(b)
The Company (through its subsidiaries) had the following transactions with Minera Yanacocha S.R.L.:

 
S.M.R.L. Chaupiloma Dos de Cajamarca (“Chaupiloma”) -
 
This company is the owner of the mining claims operated by Yanacocha, in consideration for which it receives royalties of three percent of the sales made by Yanacocha.  During the three-month period ended March 31, 2009, these royalties amounted to US$13,866,000 (US$14,258,000 during the three-month period ended March 31, 2008) and is presented in the Royalty income caption in the consolidated statement of income.

 Buenaventura Ingenieros S.A. (“Bisa”) -
 
Starting from July 2007, Bisa participates in the bidding for the execution of specific work orders for Minera Yanacocha S.R.L.

The income related to these services during the three-month period ended March 31, 2009 amounted to US$6,500 (US$617,000 during the three-month period ended March 31, 2008).  These amounts are presented in the Net sales caption in the consolidated statement of income.

 
17

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

Consorcio Energético de Huancavelica S.A. (“Conenhua”) -
In November 2001, Conenhua entered into a contract with Yanacocha for providing electrical energy transmission and works operation services for a term of ten years, for which an annual compensation of US$3.7 million was set.  The income related to this service during the three-month period ended March 31, 2009 amounted to US$1,197,000 (US$1,970,000 during the three-month period ended March 31, 2008) and is presented in the Net sales caption in the consolidated statement of income.

Terms and Transaction with related parties
Transactions with related parties are made at normal market prices. Outstanding balances at year-end are unsecured interest free and settlement occurs in cash.  There have been no guarantees provided or received for any related party receivables.  As of March 31, 2009, the Company has not recorded any impairment of receivables relating to amounts owed by related parties, according to the assessment undertook by Management of the financial position of the related party and the market in which the related party operates.

13.
Derivative financial instruments
Derivative contracts -
 
   Metals-price hedging transactions held by El Brocal -
During 2008, El Brocal subscribed price-hedging transaction contracts to cover the future flows derived from its sales. The critical terms of the hedging transactions has been negotiated with brokers so as to agree with the terms negotiated in the commercial contracts to which they are related.  The hedging of the cash flow from sales to be made until June, 2011 has been assessed by El Brocal Management as highly effective.  The effectiveness of hedging transactions has been measured by means of the cumulative flow change offset method, since El Brocal Management believes that this method best reflects the risk management objective with regard to hedging.

During the three-month period ended March 31, 2009 and 2008, El Brocal recorded a credit net of the deferred income tax and workers’ profit sharing posted to the “Unrealized gain on valuation of hedge derivative financial instruments, net” shareholders’ equity account for changes in fair value that took place in those years, of which Buenaventura had equity of US$5,149,000 and US$614,000, respectively.  As of March 31, 2009 and 2008 El Brocal’s equity account shareholders’ equity amount US$34,646,000 and US$2,780,000, respectively.

 
18

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

As of March 31, 2009 and 2008, El Brocal recognized gains of US$9,937,000 and losses of US$47,000, respectively with regard to hedging transactions settled in those years.

Hedging operations current in El Brocal as at March 31, 2009 are:

Metal
 
Monthly average
volume
 
Total volume
 
Average fixed
price
 
Periods
 
Fair value (*)
 
           
US$
     
US$(000)
 
                       
Zinc
 
675 MT
 
1,350 MT
    2,853   
May 2009 – June 2009
    2,198  
Zinc
 
675 MT
 
4,050 MT
    2,679  
July 2009 – December 2009
    5,377  
Zinc
 
675 MT
 
4,050 MT
    2,621  
January 2010 – June 2010
    4,948  
Zinc
 
425 MT
 
2,550 MT
    2,481  
July 2010 – December 2010
    2,627  
Lead
 
625 MT
 
1,250 MT
    2,653  
May 2009 – June 2009
    1,823  
Lead
 
625 MT
 
3,750 MT
    2,618  
July 2009 – December 2009
    5,121  
Lead
 
625 MT
 
3,750 MT
    2,562  
January 2010 – June 2010
    4,833  
Lead
 
625 MT
 
3,750 MT
    2,568  
July 2010 – December 2010
    4,602  
Lead
 
300 MT
 
1,800 MT
    2,145  
January 2011 – June 2011
    1,477  
Copper
 
350 MT
 
700 MT
    7,514  
May 2009 – June 2009
    2,207  
Copper
 
875 MT
 
4,500 MT
    8,245  
July 2009 – December 2009
    18,585  
Total
      
31,500 MT
               53,798  
                    
Less - current portion
    40,228  
                         13,570  

 
(*)
Mark to market

 
19

 

Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continued)

14.
Statistical data
Statistical data of the Company related to the volume of inventories sold and average sale prices by product for the three-month periods ended March 31, 2009 and 2008 are as follows.

 
(a)
Volumes sold (metallic content):

   
For the three-month periods
ended March 31,
   
2009
 
2008
         
Gold
 
91,146 OZ
 
83,978 OZ
Silver
 
3,831,620 OZ
 
4,325,739 OZ
Lead
 
7,348 MT
 
8,082 MT
Zinc
 
14,680 MT
 
19,362 MT
Copper
  
1,620 MT
  
1,592 MT

 
(b)
Average sale prices:

   
For the three-month periods
 ended March 31,
 
   
2009
   
2008
 
             
Gold
  $ 916.52 US/OZ     $ 927.09 US/OZ  
Silver
  $ 12.64 US/OZ     $ 17.44 US/OZ  
Lead
  $ 1,202.17 US/MT     $ 2,883.17 US/MT  
Zinc
  $ 1,169.35 US/MT     $ 2,384.13 US/MT  
Copper
  $ 3,544.60 US/MT     $ 7,865.22 US/MT  

15.
Explanation added for English language translation
The accompanying consolidated financial statements are presented based on accounting basis generally accepted in Peru.  Certain accounting practices applied by the Company that conform with generally accepted accounting principles in Peru may differ in certain respects to generally accepted accounting principles in other countries.

 
20

 

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: July 9, 2009