6-K 1 v326952_6k.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 October 2012

 

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-________________.

 

 
 

  

 

Buenaventura Announces Third Quarter 2012 Results

 

 

Lima, Peru, October 30, 2012 – Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest, publicly-traded precious metals mining company, announced today results for the third quarter 2012. All figures have been prepared in accordance with IFRS and are stated in U.S. dollars (US$).

 

 

Comments from the Chief Executive Officer:

 

Mr. Roque Benavides, Buenaventura’s Chief Executive Officer, stated:

 

“Net income in the third quarter was US$185.6 million, 11% lower than the figure reported in 3Q11 (US$208.7 million). EBITDA from Buenaventura’s Direct Operations was US$158.5 million, 37% lower than the figure reported in 3Q11 (US$252.3 million), while EBITDA including Affiliates decreased 14%, from US$446.5 million in 3Q11 to US$384.4 million in 3Q12.

 

These results were mainly explained by lower gold volume sold from Buenaventura’s direct operations, as well as lower silver and base metal prices. Higher costs also impacted results due to an increase in contractor expenses as well as higher supply costs.

 

 

 

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 2 of 15

 

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

 

 

  3Q12 3Q11 Var% 9M12 9M11 Var%
Total Revenues 411.9 435.3 -5% 1,139.4 1,154.3 -1%
Operating Income 120.6 214.0 -44% 331.6 540.3 -39%

EBITDA

(BVN Direct Operations)

 158.5 252.3 -37% 439.7 643.3 -32%

EBITDA

(inc. Associates)

384.4 446.5 -14% 1,137.5 1,237.8 -8%
Net Income 185.6 208.7 -11% 545.6 631.0 -14%
EPS* 0.73 0.82 -11% 2.15 2.48 -14%

 

(*) As of September 30, 2012, Buenaventura had 254,232,571 shares outstanding.

 

Within this release, Buenaventura presents financial measures in accordance with IFRS, as well as on a non-GAAP basis.

 

 

 

During 3Q12, net sales were US$394.0 million, 6% lower than the US$418.1 million reported in 3Q11. This was explained by lower metal prices and gold volume sold.

 

Royalty income increased 4% from US$17.1 million reported in 3Q11 to US$17.9 million in 3Q12 due to higher revenues at Yanacocha.

  

Operating Highlights 3Q12 3Q11 Var% 9M12 9M11 Var%

Net Sales

(in millions of US$)

 394.0 418.1 -6% 1,084.7 1,108.9 -2%
Average Realized Gold Price Gold (US$/oz)* 1,671 1,695 -1% 1,672 1,543 8%
Average Realized Gold Price (US$/oz) inc. Associates 1,656 1,677 -1% 1,653 1,542 7%
Average Realized Silver Price (US$/oz)* 29.68 38.99 -24% 29.93 37.33 -20%
Average Realized Lead Price (US$/MT)* 2,030 2,378 -15% 1,973 2,441 -19%

Average Realized

Zinc Price (US$/MT)*

 1,868 2,235 -16% 1,909 2,276 -16%
Average Realized Copper Price (US$/MT)* 7,989 9,066 -12% 8,119 9,244 -12%

 

(*) Buenaventura’s Direct Operations

 

Sales Content
  3Q12 3Q11 Var 9M12 9M11 Var
Gold (in oz)* 113,563 134,863 -16% 347,400 381,469 -9%
Gold (in oz) inc. Associates 287,284 283,091 1% 631,544 765,476 -17%
Silver (in oz)* 4,392,833 4,069,550 8% 11,882,677 10,427,079 14%
Lead (in MT)* 8,391 8,217 2% 19,996 15,511 29%
Zinc (in MT)* 15,613 12,114 29% 37,987 28,243 35%
Copper (in MT)* 3,886 4,383 -11% 10,394 15,061 -31%

 

(*) Buenaventura Direct Operations

  

Accumulated net sales in the first nine-month period 2012 were US$1,084.7 million, 2% lower than the figure reported in the same period 2011 (US$1,108.9 million), while royalty income was US$54.6 million, a 20% increase when compared to the US$45.4 million reported in 2011.

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
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Buenaventura’s equity production1 in 3Q12 was 112,750 ounces of gold, 5% higher than the 107,157 ounces reported in 3Q11 mainly due to an increase in Orcopampa and Tantahuatay production. Silver production in 3Q12 was 4.7 million ounces, a 12% increase when compared to the figure reported in 3Q11 (4.2 million oz).

 

Equity production1 in the first nine-month period 2012 was 337,761 ounces of gold and 13.2 million ounces of silver. This represented a 2% decrease in gold production (344,751 ounces in 2011), and a 17% increase in silver production compared to 2011 (11.2 million ounces).

 

Equity Production 1
  3Q12 3Q11 Var% 9M12 9M11 Var%
Gold (oz) Direct Operations 112,750 107,157 5% 337,761 344,751 -2%
Gold (oz) inc. Yanacocha 267,144 256,887 4% 822,327 769,089 7%
Silver (oz) 4,678,811 4,189,062 12% 13,203,863 11,244,038 17%
Lead ( MT) 7,942 5,698 39% 19,450 13,819 41%
Zinc ( MT) 13,073 9,971 31% 32,328 19,474 66%
Copper (MT) inc. Cerro Verde 15,648 16,297 -4% 44,683 52,779 -15%

 

Orcopampa’s (100% owned by Buenaventura) total gold production in 3Q12 was 70,588 ounces, 17% higher than the 60,171 ounces reported in 3Q11. Production from the Chipmo mine in 3Q12 was 65,362 ounces, 25% higher compared to the 52,265 ounces reported in 3Q11 due to a 16% increase in tonnage treated and 6% higher ore grade (See Appendix 2). The old tailings treatment produced 5,226 gold ounces (compared to 7,906 ounces in 3Q11). Accumulated total gold production in the first nine-month period 2012 was 200,599 ounces, a 6% decrease when compared to 2011 (213,906 ounces).

 

Cash operating cost in 3Q12 was US$537/oz, 3% lower when compared to 3Q11 (US$554/oz). This was mainly explained by the 16% increase in gold ounces recovered due to higher tonnage treated and better ore grades.

 

At Uchucchacua (100% owned by Buenaventura), total silver production in 3Q12 was 2.79 million ounces, a 1% increase when compared to 2.75 million ounces in 3Q11 due to a 4% higher recovery rate (See Appendix). Zinc production in 3Q12 was 2,628 MT, 57% higher than the figure reported in 3Q11 (1,673 MT), while lead production increased 14% (2,259 MT in 3Q12 vs. 1,975 MT in 3Q11). In the first nine-month period 2012, silver production was 8.25 million ounces; zinc production was 6,879 MT, while lead production was 6,145 MT vs. 7.30 million ounces, 4,625 MT and 5,308 MT, respectively, in 2011.

 

Cash operating cost in 3Q12 was US$16.8/oz, in-line with the US$16.7/oz in 3Q11. It is important to note that efficiency improvements at Uchucchacua have permitted the Company to offset the increase in contractor, labor and supply costs, which have affected the entire industry.

 

At Julcani (100% owned by Buenaventura), total production in 3Q12 was 589,838 ounces of silver, 3% lower compared to 3Q11 (605,346 ounces). In the first nine-month period 2012, silver production was 1.82 million ounces, 0.5% higher than in 3Q11 (1.82 million ounces).

 

 

1 Production includes 100% of Buenaventura’s operating units, 100% of CEDIMIN, 53.06% of La Zanja, 40.04% of Tantahuatay and 53.76% of El Brocal.

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
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Silver cash operating cost in 3Q12 was US$14.6/oz, 15% higher than the 3Q11 cash cost (US$12.52/oz). This was mainly due to:

 

1.A 9% increase in labor costs
2.Contractor costs rose 25% due to higher labor costs, which impacted unit prices, as well as a 39% increase of DDHH work.

 

La Zanja (53.06% owned by Buenaventura) total production in 3Q12 was 29,702 ounces of gold, a 24% decrease when compared to 3Q11 (39,262 ounces). This was in-line with the 2012 mining plan. Accumulated gold production in the first nine-month period 2012 was 83,718 ounces, 17% lower when compared to first nine-month period 2011 (101,333 ounces). Cash operating cost in 3Q12 was US$620/oz, 72% higher than 3Q11 (US$360/oz) due to a higher stripping as well as an increase in supply costs (mainly explained by an increase of reagent consumption and prices). These costs were in-line with the 2012 budget.

 

Tantahuatay (40.04% owned by Buenaventura) total production in 3Q12 was 39,194 ounces of gold (15,678 ounces attributable to Buenaventura). In the first nine-month period 2012, gold production was 105,929 ounces (42,372 attributable to Buenaventura). Cash operating cost in 3Q12 was US$326/oz.

 

At El Brocal (53.76% owned by Buenaventura), Zinc production in 3Q12 was 13,298 MT, a 5% decrease when compared to 3Q11 (14,025 MT). Silver production increased 22% from 1.0 million ounces in 3Q11 to 1.2 million ounces in 3Q12. Lead production was 4,816 MT, 3% higher than 4,693 MT reported in 2011. During the first nine-month period 2012, total zinc production was 34,949 MT, a 48% increase when compared to the 23,675 MT reported in 2011. In the case of silver, total production increased 16%, from 2.5 million ounces in 2011 to 2.9 million ounces in the first nine-month period 2012. Lead production in the first nine-month period 2012 was 12,329 MT, 30% higher than 2011 (9,504 MT).

 

Zinc cash costs was US$975/MT in 3Q11 compared to a negative US$458/MT in 3Q12. This was explained by a decrease in silver by-product contribution due to lower prices.

 

At Marcapunta, copper production was 3,754 MT, 17% lower than the 4,549 MT reported in 3Q11. For the first nine-month period 2012, copper production decreased 41% (15,944 MT in 3Q11 versus 9,438 MT in 3Q12). Cash cost at Marcapunta was US$6,754/MT in 3Q12 (vs. US$3,922/MT in 3Q11).

 

 

General and administrative expenses in 3Q12 were US$22.9 million, 2% higher than the figure reported in 3Q11 (US$22.3 million). This figure included US$4.0 million in metallurgical research studies. For the first nine-month period 2012, general and administrative expenses were US$77.7 million versus US$58.8 million in 2011 (a 32% increase).

 

 

Exploration costs at non-operational mining sites, which include care and maintenance, in 3Q12 were US$27.4 million, a 114% increase compared to the US$12.8 million reported in 3Q11. Buenaventura’s main exploration efforts were focused at the Trapiche (US$5.1 million), Tambomayo (US$4.4 million), San Gregorio (US$4.0 million), Chancas/Focus (US$2.8 million) and Breapampa (US$2.1 million) projects.

 

Exploration costs at non-operational mining sites in the first nine-month period 2012 reached US$73.2 million, 106% higher than 2011 (US$35.5 million).

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 5 of 15

 

 

Operating income in 3Q12 was US$120.6 million, a 44% decrease compared to the US$214.0 million reported in 3Q11. This decrease was mainly due to a 27% increase in operating costs, while revenues decreased 5%.

 

For the accumulated first nine-month period 2012, operating income was US$331.6 million versus US$540.3 million in 2011 (a decrease of 39%).

 

 

During 3Q12, Buenaventura’s share in associated companies was US$116.3 million, 8% higher than the US$107.7 million figure reported in 3Q11. Yanacocha’s contribution to these results decreased 18%, from US$79.8 million in 3Q11 to US$65.1 million in 3Q12, while Cerro Verde’s contribution increased 38% from US$31.8 million in 3Q11 to US$43.7 million in 3Q12.

 

For the first nine-month period 2012, Buenaventura’s share in associated companies was US$374.3 million, 9% higher than the US$343.9 million reported in 2011.

 

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), 3Q12 gold production was 353,710 ounces of gold, 8% higher than 3Q11 production (328,411 oz). Accumulated gold production in the first nine-month period 2012 was 1,110,117 ounces, 16% higher than in 2011 (958,290 oz).

 

Costs applicable to sales (CAS) at Yanacocha in 3Q12 were US$539/oz, 15% lower than the figure reported in 3Q11 (US$633/oz) due to higher production and lower mining costs. Net income at Yanacocha in 3Q12 was US$150.5 million, 18% lower compared to the 3Q11 figure (US$183.3 million). Accumulated net income in the first nine-month period 2012 was US$550.8 million, 24% higher than in 2011 (US$443.1 million).

 

During 3Q12, EBITDA totaled US$316.1 million, a 3% decrease compared to 3Q11 (US$327.2 million). This decrease was mainly due to an increase in other expenses related to unexpected employee terminations. Accumulated EBITDA in the first nine-month period 2012 was US$1,055.9 million, 31% higher than 2011 (US$805.3 million).

 

Capital expenditures at Yanacocha were US$262.6 million in 3Q12 and US$822.9 for the first nine-month period 2012.

 

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), 3Q12 copper production was 69,150 MT, a 3% decrease compared to the figure reported in 3Q11 (71,255 MT). Accumulated total copper production in the first nine-month period 2012 was 200,775 MT, 12% lower than 227,622 MT in 2011.

 

During 3Q12, Cerro Verde reported net income of US$219.7 million, a 33% increase when compared to US$164.9 million in 3Q11. This was mainly due to a 22% decrease in sales revenues (US$575.0 million in 3Q12 versus US$470.1 million in 3Q11). Accumulated net income in the first nine-month period 2012 was US$625.9 million, 29% lower than US$875.8 million in 2011.

 

Capital expenditures at Cerro Verde in 3Q12 totaled US$148.8 million and US$400.8 in the first nine-month 2012 period.

 

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
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CANTERAS DEL HALLAZGO (Chucapaca project)

At Canteras del Hallazgo (49% owned by Buenaventura), expenses attributable to Buenaventura totaled US$6.7 million, mainly due to social expenses (US$8.2 million in 3Q11). For the first nine-month period 2012, attributable expenses were US$20.1 million (US$21.3 million in 2011).

 

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.04% owned by Buenaventura), attributable contribution was US$13.5 million (US$4.4 million in 3Q11). For the first nine-month period 2012, attributable contribution was US$31.4 million (US$3.5 million in 2011)

 

 

Buenaventura’s 3Q12 net income was US$185.6 million (US$0.73 per share), an 11% decrease compared to the US$208.7 million (US$0.82 per share) reported in 3Q11. Accumulated net income in the first nine-month period 2012 was US$545.6 million, 14% lower when compared to 2011 (US$631.0 million).

 

 

LA ZANJA DEVELOPMENT PROGRAM

 

·Pampa Verde Project will allow the development of a new open pit, an expansion of the current leach pad and improvements to the operation’s road access. Construction began in 2Q11. The project’s total investment is US$70.4 million. Completion is expected in 1Q13.

 

  Progress as of September 30, 2012
San Pedro Sur Leach Pad Stage II 100%
San Pedro Sur Leach Pad Stage III 22.34%
San Pedro Sur Waste Rock Deposit 100%
Pampa Verde Pit 60.00%
Pampa Verde Top Soil Deposit 30.00%
Pampa Verde Waste Soil Deposit 60.00%
Pampa Verde Acid Water Plant 75.00%
Pampa Verde Auxiliary Access 87.00%
Pampa Verde Waste Rock Deposit 70.00%
Pampa Verde Haul Road to SPS 70.00%

  

TANTAHUATAY DEVELOPEMENT PROGRAM

 

·The acid water dam was completed
·Cienaga Norte project: The Environmental Impact Assessment approval is expected by the end of 4Q12.

 

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
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PORACOTA – ULTRAFINE MILLING

 

·The Poracota Ultrafine Milling project began in 1Q12. The project’s total investment is US$4.5 million.
·The objective of this project is to process material from Manto Aguila. Project completion is expected by the end of 1Q13.

 

  Progress as of September 30, 2012
Civil Work 58%
Structure Fabrication 100%
Plant Construction 0%

 

RIO SECO MANGANESE SULFATE PLANT

 

·Buenaventura continued with the construction of the manganese sulfate plant. The project’s total budget is US$ 90.0 million.
·The project includes an acid leaching facility, a sulfuric acid production plant and a manganese sulfate crystallization plant.
·Pilot tests for the leaching processing facilities are expected in 4Q12. The operation of the sulfuric acid and the manganese sulfate plant is expected in 1Q13.

 

BREAPAMPA

 

·As of September 30, 2012, construction at the Breapampa Project was completed for a total budget of US$48.0 million.
·Currently, the Company is waiting for water and operating permits.

 

HUANZA HYDROELECTRICAL PLANT

 

·Construction progress at the Huanza Project included:

 

1.Water Conduction Tunnel: 10,074 meters of excavation was completed, representing 100%.
2.Powerplant: civil work was 90% complete.
3.Pallca Dam: 97% was complete (48,500m3 of concrete).
4.The construction of electromechanical equipment is nearly complete, and will be delivered on schedule. Equipment construction is 20% complete.

 

 

 

At the Board of Directors meeting held October 30, 2012, the following resolutions were passed:

 

Declaration of a cash dividend of US$0.20 per share, or ADS, to be paid in U.S. dollars on November 30, 2012 to shareholders of record as of November 16, 2012.

 

* * *

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
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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 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; 19.58% 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 2011 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

  

(1) First time adoption of International Financial Reporting Standards (“IFRS”)

As part of the first adoption of the International Financial Reporting Standards (IFRS) in Peru, as of October 14, 2011, through Resolution N°102-2011-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 The nine-month period 2012.

 

For periods up to and including the year ended December 31, 2011, 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, The nine-monthperiod 2012, 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, 2011, 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.

 

 

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economical, social and legal developments. These forward-looking statements reflect the Company’s view with respect to the Company’s, Yanacocha’s and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.

 

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 9 of 15

 

**Tables to follow**

 

 

APPENDIX 1

  

Equity Participation in Subsidiaries and Affiliates (as of December 31, The nine-month period 2012)
  BVN
Equity %		 Operating
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* 53.76 Colquijirca and Marcapunta
Canteras del Hallazgo S.A ** 49.00 Chucapaca Project
Compañía Minera Coimolache S.A ** 40.04 Tantahuatay
Minera Yanacocha S.R.L ** 43.65 Yanacocha
Sociedad Minera Cerro Verde S.A.A ** 19.58 Cerro Verde

 

(*)Consolidates

(**) Equity Accounting

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
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APPENDIX 2

 

  GOLD PRODUCTION
  Three Months Ended September 30 Nine Months Ended September 30
  Orcopampa Orcopampa Old Tailings Orcopampa Orcopampa Old Tailings
  2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 %
Ore Milled  MT 125,551 108,689 16%       350,563 334,790 5%      
Ore Grade gr/MT 16.87 15.87 6%       17.04 19.10 -11%      
Recovery Rate % 95.9% 94.1% 2%       96.0% 94.9% 1%      
Ounces Produced 65,362 52,265 25% 5,226 7,906 -34% 184,482 195,170 -5% 16,117 18,736 -14%
                         
Orcopampa Total Production    3Q12 70,588 3Q11 60,171 9M12% 200,599 9M11 213,906      
                         
  Three Months Ended September 30 Nine Months Ended September 30
  Antapite Poracota Antapite Poracota
  2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 %
Ore Milled  MT 10,112 36,200 -72% 18,114 59,774 -70% 72,530 105,631 -31% 122,366 170,452 -28%
Ore Grade gr/MT 6.72 5.66 19% 4.22 8.13 -48% 4.63 6.86 -33% 6.27 8.40 -25%
Recovery Rate % 95.7% 96.9% -1% 68.5% 80.5% -15% 95.3% 96.5% -1% 75.6% 82.8% -9%
Ounces Produced 2,093 6,392 -67% 1,687 12,584 -87% 10,315 22,470 -54% 19,238 38,111 -50%
                         
  LA ZANJA TANTAHUATAY
  3Q12 3Q11 % 9M12 9M11 % 3Q12 3Q11 % 9M12 9M11 %
Ounces Produced 29,702 39,262 -24% 83,718 101,333 -17% 39,194 16,269 141% 105,929 16,269 551%
                         
  SILVER PRODUCTION
  Three Months Ended September 30 Nine Months Ended September 30
  Uchucchacua Colquijirca Uchucchacua Colquijirca
  2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 %
Ore Milled  MT 263,454 268,377 -2% 695,800 416,986 67% 783,967 717,919 9% 1,689,846 842,805 101%
Ore Grade gr/MT 445.71 447.77 0% 36.70 81.49 -55% 449.14 446.83 1% 41.06 74.65 -45%
Recovery Rate % 73.8% 71.2% 4% 66.0% 74.1% -11% 72.8% 70.8% 3% 63.2% 76.1% -17%
Ounces Produced 2,785,910 2,751,532 1% 536,167 891,672 -40% 8,247,266 7,302,138 13% 1,410,027 1,882,307 -25%
                         
  ZINC PRODUCTION
  Three Months Ended September 30 Nine Months Ended September 30
  Uchucchacua Colquijirca Uchucchacua Colquijirca
  2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 %
Ore Milled  MT 263,454 268,377 -2% 695,800 416,986 67% 783,967 717,919 9% 1,689,846 842,805 101%
Ore Grade % 1.57% 1.23% 28% 2.69% 4.06% -34% 1.47% 1.25% 18% 2.93% 3.90% -25%
Recovery Rate % 63.6% 50.8% 25% 65.4% 74.8% -13% 59.6% 50.8% 17% 67.1% 72.0% -7%
MT Produced 2,628 1,673 57% 12,332 14,025 -12% 6,879 4,625 49% 33,268 23,674 41%

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 11 of 15

 

APPENDIX 3

 

EBITDA RECONCILIATION (in thousand US$)      

          

  3Q12 3Q11 9M12 9M11
Net Income 203,358 239,535 594,339 708,887
Add / Substract: -44,826 12,799 -154,630 -65,611
Provision for income tax, net 35,069 81,893 114,342 176,122
Share in associated companies by the equity method, net -116,298 -107,696 -374,304 -343,853
Interest income -2,470 -1,875 -7,761 -7,252
Interest expense 1,502 1,656 4,682 5,083
Loss on currency exchange difference -527 529 254 1,352
Depreciation and Amortization 32,445 23,241 84,240 69,175
Workers´ participation provision 5,453 15,051 16,605 33,762
Long Term Compensation provision 0 0 7,312 0
EBITDA Buenaventura Direct Operations 158,532 252,334 439,709 643,276
EBITDA Yanacocha (43.65%) 137,997 142,840 460,891 351,526
EBITDA Cerro Verde (19.58%) 71,823 52,946 202,775 257,738
EBITDA Coimolache (40%) 22,721 6,635 54,270 6,635
EBITDA Canteras del Hallazgo (49%) -6,669 -8,249 -20,110 -21,333
EBITDA Buenaventura + All Associates 384,404 446,505 1,137,534 1,237,842

  

Note:

 

EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.

 

EBITDA (including Affiliates) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of EBITDA (Coimolache) plus (4) Buenaventura’s equity share of EBITDA (Canteras del Hallazgo). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the affiliated companies.

 

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

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 12 of 15

  

APPENDIX 4

 

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

Consolidated Balance sheet    

As of September, 30 2012  and  December, 31 2011    

 

   2012   2011 
Assets  US$(000)   US$(000) 
Current assets          
Cash and cash equivalents   280,702    470,847 
Financial asset at fair value through profit and loss   55,029    62,299 
Trade accounts receivable, net   187,129    172,569 
Other accounts receivable   82,523    48,521 
Accounts receivable from associates   29,916    47,425 
Derivative financial instruments   -    1,283 
Embedded derivatives for concentrates sales   5,774    - 
Inventory, net   171,951    149,108 
Prepaid  expenses   11,694    16,234 
Total current assets   824,718    968,286 
           
Other accounts receivable   14,664    5,570 
Accounts receivable from associates   37,852    32,262 
Long-term Inventory   42,939    48,845 
Prepaid expenses   253      
Investment in associates   2,350,797    1,935,004 
Mining concessions, development cost and   1,058,390    830,997 
property, plant and equipment, net          
Deferred income tax  asset   107,927    125,538 
Other assets   5,209    7,047 
Total assets   4,442,749    3,953,549 
           
Liabilities and shareholders’ equity, net          
Current liabilities          
Trade accounts payable   173,799    142,375 
Income tax payable   8,393    36,423 
Dividends payable   865    1,052 
Other accounts payable   61,757    40,098 
Provisions   52,791    91,287 
Accounts payable from associates   870    883 
Embedded derivatives for concentrates sales, net   -    7,306 
Hedge derivative financial instruments   177    - 
Financial obligations   40,227    1,042 
Total current liabilities   338,879    320,466 
           
Other non-current provisions   106,850    86,528 
Other accounts payable to associates   799    1,004 
Financial obligations   119,181    105,072 
Other accounts payable   4,694    - 
Total liabilities   570,403    513,070 
           
Shareholders’ equity net          
           
Capital stock, net of treasury shares of US$62,622,000   750,540    750,540 
Investments shares, net of treasury shares of US$762,000   1,399    2,019 
Additional  paid-in capital   219,471    225,978 
Legal reserve   162,649    162,639 
Other reserves   269    269 
Retained earnings   2,478,607    2,034,768 
Cumulative unrealized, gain (loss)   753    2,068 
    3,613,688    3,178,281 
Non-controlling interest   258,658    262,198 
Total shareholders’ equity, net   3,872,346    3,440,479 
           
Total liabilities and shareholders’ equity, net   4,442,749    3,953,549 
    -    - 

  

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 13 of 15

 

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

Consolidated Statements of income         

For the nine  month period ended September 30, 2012 and September 30, 2011    

          

   For the three month period ended September, 30   For the nine month period ended September, 30 
   2012   2011   2012   2011 
   US$(000)   US$(000)   US$(000)   US$(000) 
Operating income                    
Net sales   393,987    418,130    1,084,736    1,108,912 
Royalty income   17,868    17,126    54,621    45,375 
Total income   411,855    435,256    1,139,357    1,154,287 
                     
Operating costs                    
Cost of sales, without considering  depreciation and amortization   (164,106)   (114,165)   (434,961)   (322,219)
Exploration in units in operation   (30,341)   (29,047)   (97,153)   (75,371)
Depreciation and amortization   (32,445)   (23,241)   (84,240)   (69,175)
Royalties   (10,963)   (20,629)   (30,120)   (51,939)
Total operating costs   (237,855)   (187,082)   (646,474)   (518,704)
Gross income   174,000    248,174    492,883    635,583 
                     
Operating expenses                    
Administrative   (22,856)   (22,343)   (77,652)   (58,825)
Exploring in non-operating areas   (27,400)   (12,827)   (73,229)   (35,527)
Selling   (5,204)   (3,285)   (12,281)   (8,138)
Other operating income, net   2,094    4,323    1,831    7,246 
Total operating expenses   (53,366)   (34,132)   (161,331)   (95,244)
Operating income   120,634    214,042    331,552    540,339 
                     
Other income (expenses), net                    
Share in the results of associates   116,298    107,696    374,304    343,853 
Interest income   2,470    1,875    7,761    7,252 
Interest expense   (1,502)   (1,656)   (4,682)   (5,083)
Loss from currency exchange difference, net   527    (529)   (254)   (1,352)
Total other income, net   117,793    107,386    377,129    344,670 
                     
Income before income tax and non-controlling  interest   238,427    321,428    708,681    885,009 
Income tax   (35,069)   (81,893)   (114,342)   (176,122)
Net income   203,358    239,535    594,339    708,887 
Net income attributable to non-controlling interest   (17,773)   (30,862)   (48,721)   (77,890)
Net income  attributable to Owners of the parent   185,585    208,673    545,618    630,997 
                     
Basic and diluted earnings per share attributable to                    
Buenaventura, stated in U.S. dollars   0.73    0.82    2.15    2.48 

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 14 of 15

 

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

Consolidated Statements of cash flows         

For the nine  month period ended September 30, 2012 and September 30, 2011      

               

   For the three month period ended September, 30   For the nine month period ended September, 30 
   2012   2011   2012   2011 
   US$(000)   US$(000)   US$(000)   US$(000) 
Operating activities                    
Proceeds from sales   363,513    368,652    1,057,157    1,087,941 
Royalties received   19,818    13,837    55,071    37,482 
Value Added Tax  recovered   16,884    6,920    30,161    19,360 
Dividends received   3,846    -    10,854    - 
Interest received   1,528    1,802    6,906    6,003 
Payments to suppliers and third parties   (212,513)   (182,485)   (607,692)   (533,215)
Payments to employees   (33,694)   (20,153)   (155,521)   (106,296)
Income tax paid   (31,238)   (24,914)   (107,057)   (86,431)
Payment of royalties   (9,738)   (20,829)   (29,798)   (55,638)
Payments of interest   (514)   (235)   (1,279)   (911)
                     
Net cash and cash equivalents provided by  operating activities   117,892    142,595    258,802    368,295 
                     
Investment activities                    
Decrease (increase) in time deposits   2,736    (1,442)   9,582    16,493 
Proceeds from sales of mining concessions, property, plant and equipment   98    7,792    119    7,792 
Proceeds from sales of investments shares   -    60,379    -    60,379 
Adquisitions of mining concessions, develpment activities,   (140,213)   (69,330)   (308,920)   (178,496)
property, plant and equipment                    
Payments for purchase of investments shares   (23,273)   (1,930)   (32,184)   (1,930)
Contributions to associates   (13,083)   (238,176)   (21,961)   (255,195)
Net cash and cash equivalents used in invesment activities   (173,735)   (242,707)   (353,364)   (350,957)
                     
Financing activities                    
Increase in financial obligations   40,026    8,922    54,313    34,437 
Dividens paid   -    -    (101,779)   (83,967)
Dividens paid to non-controlling interest   (4,942)   (22,867)   (39,117)   (48,418)
Payments for capital stock reduction to non-controlling interest   (7,980)   -    (7,980)   - 
Payments of financial obligation   -    (493)   (1,020)   (1,500)
Net cash and cash equivalents provided by (used in)  financing activities   27,104    (14,438)   (95,583)   (99,448)
                     
Decrease  in cash and cash equivalents during the period, net   (28,739)   (114,550)   (190,145)   (82,110)
Cash and cash equivalents at beginning of period   309,441    615,301    470,847    582,861 
Cash and cash equivalents at period-end   280,702    500,751    280,702    500,751 

 

 
Buenaventura
Third Quarter and Nine Month Period 2012 Results
Page 15 of 15

 

 

   For the three month period ended September, 30   For the nine month period ended September, 30 
   2012   2011   2012   2011 
   US$(000)   US$(000)   US$(000)   US$(000) 
                 
Reconciliation of net income to cash and cash equivalents provided by  operating activities                    
                     
Net income  attributable to  owners of the parent   185,585    208,673    545,618    630,997 
Add (less)                    
Depreciation and amortization   32,445    23,241    84,240    69,175 
Net income attributable to non-controlling interest   17,773    30,862    48,721    77,890 
Deferred income tax   4,396    23,269    17,175    48,065 
Accretion expense of the provision for closure of mining units   988    1,417    3,405    4,169 
Loss from currency exchange differences   (527)   529    254    1,352 
Share in the results of associates, net of dividends received in cash   (112,452)   (107,696)   (363,450)   (343,853)
Provisions   (17,846)   16,811    (137,589)   (21,473)
Provision for estimated fair value of embedded derivatives related of concentrates                    
sales and adjustments on open liquidations   (21,983)   35,099    (32,076)   44,610 
                     
Net changes in operating assets and liabilities accounts                    
                     
Decrease (increase) in operating assets                    
Trade accounts receivable   (17,806)   (75,278)   (14,560)   (55,912)
Other accounts receivable   (9,298)   26,536    (23,304)   31,842 
Other accounts receivable from associates   14,205    (20,727)   7,225    (33,277)
Inventory   (3,723)   (20,165)   (16,937)   (79,643)
Prepaid  expenses   (21,512)   11,704    (26,747)   14,120 
                     
Increase  (decrease) of operating liabilities                    
Trade accounts payable   23,621    15,703    31,424    10,274 
Other accounts payable   44,218    (46,357)   163,433    (47,761)
Income tax payable   (192)   18,974    (28,030)   17,720 
                     
                     
Net cash and cash equivalents provided by operating activities   117,892    142,595    258,802    368,295 

  

 
 

 

 

 

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: October 30, 2012