LIMA, Peru--(BUSINESS WIRE)--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 fourth 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 fourth quarter was US$139.1 million, 39% lower than the figure reported in 4Q11 (US$227.9 million). EBITDA from Buenaventura’s Direct Operations was US$130.2 million, 32% lower than the figure reported in 4Q11 (US$192.1 million), while EBITDA including Affiliates decreased 33%, from US$421.7 million in 4Q11 to US$281.5 million in 4Q12.
These results were mainly explained by lower volume of gold sold, higher operating costs, exploration efforts and decreased contributions from affiliates.
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Financial Highlights (in millions of US$, except EPS figures): |
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| 4Q12 | 4Q11 | Var | FY 2012 | FY 2011 | Var | |||||||||||||||||||
| Total Revenues | 424.2 | 402.3 | 5% | 1,563.5 | 1,556.6 | 0% | ||||||||||||||||||
| Operating Income | 86.7 | 164.0 | -47% | 418.2 | 704.4 | -41% | ||||||||||||||||||
| EBITDA Direct Operations | 130.2 | 192.1 | -32% | 569.9 | 835.4 | -32% | ||||||||||||||||||
| EBITDA Including Affiliates | 281.5 | 421.7 | -33% | 1,438.8 | 1,681.3 | -14% | ||||||||||||||||||
| Net Income | 139.1 | 227.9 | -39% | 684.7 | 858.9 | -20% | ||||||||||||||||||
| EPS | 0.55 | 0.90 | -39% | 2.69 | 3.38 | -20% | ||||||||||||||||||
(*) As of December 31, 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.
Operating Revenues
During 4Q12, net sales were US$411.6 million, a 7% increase compared to the US$385.0 million reported in 4Q11. This was explained by higher sales content of all metals, except gold.
Royalty income decreased 28% to US$12.6 million in 4Q12 from the US$17.4 million reported in 4Q11 due to lower revenues at Yanacocha.
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Operating Highlights |
4Q12 | 4Q11 | Var % | FY 2012 | FY 2011 | Var % | ||||||||||||||||||
| Net Sales (million of US$) | 411.6 | 385.0 | 7% |
1,496.3 |
1,493.9 | 0% | ||||||||||||||||||
| Average Gold Price (US$/oz.) Direct Operations | 1,713 | 1,690 | 1% | 1,679 | 1,574 | 7% | ||||||||||||||||||
| Average Gold Price (US$/oz.) inc Yanacocha & Coimolache | 1,714 | 1,684 | 2% | 1,669 | 1,577 | 6% | ||||||||||||||||||
| Average Silver Price (US$/oz.) | 32.64 | 32.40 | 1% | 31.25 | 35.40 | -12% | ||||||||||||||||||
| Average Lead Price (US$/MT) | 2,203 | 1,991 | 11% | 2,065 | 2,262 | -9% | ||||||||||||||||||
| Average Zinc Price (US$/MT) | 1,947 | 1,905 | 2% | 1,919 | 2,200 | -13% | ||||||||||||||||||
| Average Copper Price (US$/MT) | 7,899 | 7,524 | 5% | 7,937 | 8,568 | -7% | ||||||||||||||||||
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(*) Buenaventura’s Direct Operations |
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| Sales Content | ||||||||||||||||||||||||
| 4Q12 | 4Q11 | Var % | FY 2012 | FY 2011 | Var % | |||||||||||||||||||
| Gold Oz Direct Operations | 92,454 | 122,833 | -25% | 439,816 | 505,894 | -13% | ||||||||||||||||||
| Gold Oz inc Yanacocha & Tantahuatay | 212,469 | 270,728 | -22% | 1,078,826 | 1,145,603 | -6% | ||||||||||||||||||
| Silver Oz | 5,507,511 | 4,366,347 | 26% | 17,474,113 | 14,843,193 | 18% | ||||||||||||||||||
| Lead MT | 5,518 | 3,857 | 43% | 25,589 | 18,192 | 41% | ||||||||||||||||||
| Zinc MT | 5,267 | 4,041 | 30% | 43,180 | 33,307 | 30% | ||||||||||||||||||
| Copper MT | 12,028 | 7,516 | 60% | 22,373 | 23,231 | -4% | ||||||||||||||||||
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(*) Buenaventura’s Direct Operations |
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Accumulated net sales in 2012 were US$1,496.3 million, in-line with the figure reported in 2011, while royalty income was US$67.2 million, a 7% increase compared to the US$62.7 million reported in 2011.
Production and Operating Costs
Buenaventura’s equity production1 in 4Q12 was 108,489 ounces of gold, 13% lower than the 124,504 ounces reported in 4Q11 mainly due to a decrease in Orcopampa production. Silver production, including affiliates, in 4Q12 was 4.6 million ounces, a 12% increase when compared to the figure reported in 4Q11 (4.1 million oz.).
Equity production1 in 2012 was 446,443 ounces of gold and 18.3 million ounces of silver. This represented a 6% decrease in gold production (475,770 oz. in 2011), and a 12% increase in silver production compared to 2011 (16.2 million oz.).
| Equity Production 1 | ||||||||||||||||||||||||
| 4Q12 | 4Q11 | Var% | FY 2012 | FY 2011 | Var% | |||||||||||||||||||
| Gold (oz) Direct Operations | 108,489 | 124,504 | -13% | 446,443 | 475,770 | -6% | ||||||||||||||||||
| Gold (oz) inc. Affiliates | 211,448 | 270,659 | -22% | 1,033,969 | 1,040,218 | -1% | ||||||||||||||||||
| Silver (oz) inc. Affiliates | 4,593,711 | 4,107,467 | 12% | 18,262,156 | 16,243,279 | 12% | ||||||||||||||||||
| Lead ( MT) | 5,844 | 3,475 | 68% | 25,345 | 17,444 | 45% | ||||||||||||||||||
| Zinc ( MT) | 6,787 | 3,151 | 115% | 39,139 | 22,621 | 73% | ||||||||||||||||||
| Copper (MT) inc. Affiliates | 20,670 | 16,980 | 22% | 66,221 | 69,873 | -5% | ||||||||||||||||||
Orcopampa’s (100% owned by Buenaventura) total gold production in 4Q12 was 59,779 ounces, 16% lower than the 71,296 ounces reported in 4Q11. Production from the Chipmo mine during 4Q12 was 55,652 ounces, 15% lower compared to the 65,788 ounces reported in 4Q11 due to a 9-day strike in October (See Appendix 2). The old tailings treatment produced 4,128 ounces of gold (compared to 5,508 oz. in 4Q11). Accumulated total gold production in 2012 was 260,378 ounces, a 9% decrease when compared to 2011 (285,201 oz.).
Cash operating cost in 4Q12 was US$714/oz., 51% higher when compared to 4Q11 (US$472/oz.). This was mainly explained by lower gold production and higher contractor expenses due to greater exploration efforts. Cash cost during 2012 was US$559/oz.
At Uchucchacua (100% owned by Buenaventura), total silver production in 4Q12 was 3.01 million ounces, 8% higher when compared to 2.79 million ounces in 4Q11 due to a 5% increase in the recovery rate (See Appendix 2). Zinc production in 4Q12 was 2,931 MT, 43% higher than the figure reported in 4Q11 (2,047 MT), while lead production increased 25% (2,556 MT in 4Q12 vs. 2,051 MT in 4Q11). During 2012, silver production was 11.3 million ounces; zinc production was 9,820 MT, while lead production was 8,742 MT vs. 10.1 million ounces, 6,668 MT and 7,546 MT, respectively, in 2011.
Cash operating cost in 4Q12 was US$16.57/oz., in-line with the figure reported in 4Q11 (US$16.35/oz.). Cash cost during 2012 was US$16.97/oz. (US$16.27/oz. in 2011).
At Julcani (100% owned by Buenaventura), total production in 4Q12 was 615,712 ounces of silver, 1% higher compared to 4Q11 (611,711 ounces). During 2012, silver production was 2.4 million ounces, similar to the figure reported in 2011.
Silver cash operating cost in 4Q12 was US$14.38/oz., 15% higher than 4Q11 (US$12.52/oz.), mainly due to an increase in energy supply expenses. Cash cost during 2012 was US$13.5/oz.
Breapampa (100% owned by Buenaventura) commenced operations in November. Total production in 4Q12 was 8,817 ounces of gold.
La Zanja (53.06% owned by Buenaventura) total production in 4Q12 was 28,670 ounces of gold, a 13% decrease when compared to 4Q11 (32,857 oz.). Accumulated gold production in 2012 was 112,387 ounces, 16% lower than 2011 (134,190 oz.), but in-line with La Zanja’s mining plan.
Cash operating cost in 4Q12 was US$753/oz., 63% higher than 4Q11 (US$463/oz.) due to an increase in supply costs (mainly explained by an increase of reagent consumption and prices). Cash cost during 2012 was US$622/oz.
Tantahuatay (40.04% owned by Buenaventura) total production in 4Q12 was 35,340 ounces of gold (14,150 oz. attributable to Buenaventura). During 2012, gold production was 141,268 ounces (56,564 oz. attributable to Buenaventura). Cash operating cost in 4Q12 was US$393/oz and US$402/oz for 2012.
At El Brocal (53.76% owned by Buenaventura), total plant capacity was devoted to treat copper ores during 4Q12.
Copper production was 13,166 MT, 68% higher than the 7,852 MT reported in 4Q11. For 2012, copper production increased 2% (24,218 MT in 4Q12 versus 23,796 MT in 4Q11). Copper cash cost was US$5,198/MT, 26% higher than 4Q11 (US$4,135/MT).
Silver production decreased 56% from 420,329 ounces in 4Q11 to 185,231 ounces in 4Q12.
During 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 5%, from 2.9 million ounces in 2011 to 3.1 million ounces in 2012. Lead production was 12,329 MT in 2012, 30% higher than 2011 (9,504 MT).
General and Administrative Expenses
General and administrative expenses in 4Q12 were US$21.6 million, 32% higher than the figure reported in 4Q11 (US$16.3 million). This figure included US$6.0 million in metallurgical research studies. For 2012, general and administrative expenses were US$99.3 million versus US$75.2 million in 2012 (an increase of 32%).
Operating Income
Operating income in 4Q12 was US$86.7 million, a 47% decrease compared to the US$164.0 million reported in 4Q11. This decrease was mainly due to a 53% increase in operating costs and exploration expenses, while revenues increased 5%. It is important to mention that during 4Q12, El Brocal purchased US$18.0 million in copper concentrates to blend with Marcapunta copper concentrates, which negatively impacted operational costs and margins.
For 2012, operating income was US$418.2 million versus US$704.4 million in 2012 (a decrease of 41%).
Share in Associated Companies
During 4Q12, Buenaventura’s share in associated companies was US$89.9 million, 28% lower than the US$124.5 million reported in 4Q11. Yanacocha’s contribution to these results decreased 63%, from US$86.8 million in 4Q11 to US$32.4 million in 4Q12, while Cerro Verde’s contribution decreased 28% from US$40.0 million in 4Q11 to US$28.6 million in 4Q12. Coimolache (Tantahuatay mine) results partially offset this decrease with a 44% higher contribution (US$8.8 million in 4Q12 vs. US$6.1 million in 4Q11).
For 2012, Buenaventura’s share in associated companies was US$464.2 million, in-line with the figure reported in 2012.
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), 4Q12 gold production was 235,875 ounces of gold, 30% lower than 4Q11 production (334,833 oz.). Accumulated gold production in 2012 was 1,345,992 ounces, 4% higher than 2012 (1,293,123 oz.).
Costs applicable to sales (CAS) at Yanacocha in 4Q12 were US$635/oz., 19% higher than the figure reported in 4Q11 (US$533/oz.) due to lower production. Net income at Yanacocha in 4Q12 was US$75.7 million, 62% lower compared to 4Q11 (US$199.2 million). Accumulated net income in 2012 was US$626.5 million, 2% lower than 2011 (US$642.4 million).
During 4Q12, EBITDA totaled US$186.0 million, a 49% decrease compared to 4Q11 (US$362.0 million). This decrease was mainly due to a 29% decrease in sales. Accumulated EBITDA in 2012 was US$1,241.8 million, 6% higher than 2012 (US$1,167.4 million).
Capital expenditures at Yanacocha were US$172.5 million in 4Q12 and US$995.0 in 2012.
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 4Q12 copper production was 68,874 MT, a 4% increase compared to 4Q11 (65,958 MT). Accumulated total copper production in 2012 was 269,649 MT, 8% lower than 293,581 MT in 2012.
During 4Q12, Cerro Verde reported net income of US$146.2 million, a 28% decrease compared to US$202.6 million in 4Q11. This was mainly due to an 11% decrease in sales revenues (US$501.0 million in 4Q12 versus US$565.0 million in 4Q11). Accumulated net income in 2012 was US$772.1 million, 28% lower than US$1,078.4 million in 2012.
Capital expenditures at Cerro Verde in 4Q12 totaled US$200.0 million and US$600.8 in 2012.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.04% owned by Buenaventura), attributable contribution was US$8.8 million (US$6.1 million in 4Q11). For 2012, attributable contribution was US$40.2 million (US$9.6 million in 2012).
CANTERAS DEL HALLAZGO (Chucapaca project)
At the Chucapaca Project (49% owned by Buenaventura), a value-engineering phase was initiated to improve the project’s economic returns of after the completion of a Feasibility Study. Additional studies will be directed towards evaluating potential options, including underground and combined open-pit and underground mining scenarios, a review of capital costs and capital efficiencies, along with re-commencement of an exploration phase at the Chucapaca Area of Interest (AOI).
In 2012, Buenaventura’s total disbursement at the Chucapaca project was US$32.4 million.
Net Income
Buenaventura’s 4Q12 net income was US$139.1 million (US$0.54 per share), a 39% decrease compared to the US$227.9 million (US$0.90 per share) reported in 4Q11. Accumulated net income in 2012 was US$684.7 million (US$2.69 per share), 20% lower compared to 2012 (US$858.9 million).
Project Development
LA ZANJA DEVELOPMENT PROGRAM
- The 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$74.2 million. Completion is expected in 3Q13.
- Engineering for slope stability was developed during 4Q12.
RIO SECO MANGANESE SULFATE PLANT
- Buenaventura continued with the construction of the manganese sulfate plant. The project’s total budget is US$ 90.0 million.
- The project includes an acid leaching facility, a sulfuric acid production plant and a manganese sulfate crystallization plant.
- The Company has started the commissioning process for the project’s main equipment.
HUANZA HYDROELECTRICAL PLANT
- Construction progress at the Huanza Project included:
| 1. | Water Conduction Tunnel: 10,074 meters of excavation is 100% complete | ||||||||
| 2. | Power plant: civil work is 100% complete | ||||||||
| 3. | Pallca Dam: 100% complete | ||||||||
| 4. | Construction of electromechanical equipment is nearly complete | ||||||||
| 5. | Commissioning of the Pallca Dam began February 26, 2013 and will continue on different sections on a progressive basis |
Other Information
At the Board of Directors meeting held February 28, 2013, the following resolutions were passed:
To call for the Annual Shareholders Meeting to be held March 26, 2013 to:
• Approve the financial statements as of December 31, 2012
• Approve the 2012 Annual Report
• Approve a cash dividend of US$0.30 per share or ADS to be paid in U.S. currency.
• Approve a simplification of corporate structure by absorbing wholly-owned subsidiaries CEDIMIN SAC and Inversiones Colquijirca S.A.
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*, Breapampa*, Mallay*, 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
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.
**Tables to follow**
APPENDIX 1
| Equity Participation in | ||||||||
| Subsidiaries and Affiliates (as of December 31, 2012) | ||||||||
| BVN | Operating | |||||||
| Equity % | Mines / Business | |||||||
| Cedimin S.A.C* | 100.00 | Shila / Paula | ||||||
| Consorcio Energetico de Huancavelica S.A* | 100.00 | Energy – Huanza Hydroelectrical Project | ||||||
| Buenaventura Ingenieros S.A* | 100.00 | Engineering Consultant | ||||||
| Minera La Zanja S.A* | 53.06 | La Zanja | ||||||
| Sociedad Minera El Brocal S.A.A* | 53.76 | 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
APPENDIX 2
| GOLD PRODUCTION | ||||||||||||||||||||||||||||||||||||
| Three Months Ended December 31 | Full Year | |||||||||||||||||||||||||||||||||||
| Orcopampa | Orcopampa Old Tailings | Orcopampa | Orcopampa Old Tailings | |||||||||||||||||||||||||||||||||
| 2012 | 2011 | % | 2012 | 2011 | % | 2012 | 2011 | % | 2012 | 2011 | % | |||||||||||||||||||||||||
| Ore Milled DST | 122,177 | 130,685 | -7% | 508,646 | 499,728 | 2% | ||||||||||||||||||||||||||||||
| Ore Grade OZ/ST | 0.48 | 0.53 | -11% | 0.49 | 0.55 | -11% | ||||||||||||||||||||||||||||||
| Recovery Rate % | 95.6% | 94.3% | 1% | 95.9% | 94.7% | 1% | ||||||||||||||||||||||||||||||
| Ounces Produced | 55,652 | 65,788 | -15% | 4,128 | 5,508 | -25% | 240,134 | 260,958 | -8% | 20,245 | 24,243 | -16% | ||||||||||||||||||||||||
| Orcopampa Total Production |
4Q12 |
59,780 | 4Q11 | 71,296 | FY2012 | 260,379 | FY2011 | 285,201 | ||||||||||||||||||||||||||||
| LA ZANJA | Tantahuatay | |||||||||||||||||||||||||||||||||||
| 4Q12 | 4Q11 | % | FY2012 | FY2011 | % | 4Q12 | 4Q11 | % | FY2012 | FY2011 | % | |||||||||||||||||||||||||
| Ounces Produced | 28,670 | 32,857 | -13% | 112,387 | 134,190 | -16% | 35,340 | 29,895 | 18% | 141,268 | 46,164 | 206% | ||||||||||||||||||||||||
| SILVER PRODUCTION | ||||||||||||||||||||||||||||||||||||
| Three Months Ended December 31 | Full Year | |||||||||||||||||||||||||||||||||||
| Uchucchacua | Colquijirca | Uchucchacua | Colquijirca | |||||||||||||||||||||||||||||||||
| 2012 | 2011 | % | 2012 | 2011 | % | 2012 | 2011 | % | 2012 | 2011 | % | |||||||||||||||||||||||||
| Ore Milled DST | 292,481 | 294,754 | -1% | 1,156,655 | 1,086,123 | 6% | 2,177,003 | 929,032 | 134% | |||||||||||||||||||||||||||
| Ore Grade OZ/ST | 12.70 | 13.07 | -3% | 13.00 | 13.00 | 0% | 2.16 | 2.67 | -19% | |||||||||||||||||||||||||||
| Recovery Rate % | 81.1% | 71.6% | 13% | 74.9% | 71.2% | 5% | 56.5% | 76.1% | -26% | |||||||||||||||||||||||||||
| Ounces Produced | 3,012,187 | 2,788,798 | 8% | 11,263,322 | 10,090,936 | 12% | 2,655,961 | 1,876,503 | 42% | |||||||||||||||||||||||||||
| ZINC PRODUCTION | ||||||||||||||||||||||||||||||||||||
| Three Months Ended December 31 | Full Year | |||||||||||||||||||||||||||||||||||
| Uchucchacua | Colquijirca | Uchucchacua | Colquijirca | |||||||||||||||||||||||||||||||||
| 2012 | 2011 | % | 2012 | 2011 | % | 2012 | 2011 | % | 2012 | 2011 | % | |||||||||||||||||||||||||
| Ore Milled DST | 292,481 | 294,754 | -1% | 1,156,655 | 1,086,123 | 6% | 2,177,003 | 929,032 | 134% | |||||||||||||||||||||||||||
| Ore Grade % | 1.63 | 1.46 | 12% | 1.51 | 1.31 | 15% | 2.73 | 3.89 | -30% | |||||||||||||||||||||||||||
| Recovery Rate % | 67.8% | 52.3% | 30% | 62.0% | 51.7% | 20% | 64.8% | 71.9% | -10% | |||||||||||||||||||||||||||
| ST Produced | 3,231 | 2,257 | 43% | 10,825 | 7,350 | 47% | 38,525 | 25,968 | 48% | |||||||||||||||||||||||||||
APPENDIX 3: EBITDA RECONCILIATION (in thousand US$)
| 4Q12 | 4Q11 | FY 2012 | FY 2011 | |||||||||||||
| Net Income | 148,451 | 251,591 | 742,790 | 960,478 | ||||||||||||
|
Add / Subtract: |
-18,262 | -59,502 | -172,892 | -125,113 | ||||||||||||
| Provision for income tax, net | 28,252 | 35,467 | 142,594 | 211,589 | ||||||||||||
| Share in associated companies by the equity method, net | -89,935 | -124,510 | -464,239 | -468,363 | ||||||||||||
| Interest income | -1,725 | -4,575 | -9,486 | -11,827 | ||||||||||||
| Interest expense | 3,608 | 6,740 | 8,290 | 11,823 | ||||||||||||
| Loss on currency exchange difference | -1,969 | -677 | -1,715 | 675 | ||||||||||||
| Long Term Compensation provision | -5,592 | -5,982 | 1,720 | -5,982 | ||||||||||||
| Depreciation and Amortization | 38,803 | 27,206 | 123,043 | 96,381 | ||||||||||||
| Workers´ participation provision | 6,679 | 6,829 | 23,284 | 40,591 | ||||||||||||
| Impairment of Long-Lived Assets | 3,617 | 0 | 3,617 | 0 | ||||||||||||
| EBITDA Buenaventura Direct Operations | 130,189 | 192,089 | 569,898 | 835,365 | ||||||||||||
| EBITDA Yanacocha (43.65%) | 81,185 | 158,028 | 542,067 | 509,554 | ||||||||||||
| EBITDA Cerro Verde (19.58%) | 53,276 | 59,018 | 256,050 | 316,756 | ||||||||||||
| EBITDA Coimolache (40%) | 16,836 | 12,606 | 70,793 | 19,618 | ||||||||||||
| EBITDA Buenaventura + All Associates | 281,486 | 421,741 | 1,438,808 | 1,681,293 | ||||||||||||
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). 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.
APPENDIX 4: PROVEN AND PROBABLE RESERVES
| GOLD | ||||||||||||||||||||
| % Ownership | DST (000) | Grade (Oz/TCS) | Oz (000) | Attributable | ||||||||||||||||
| Orcopampa | 100.00 | 1,091 | 0.421 | 459 | 459 | |||||||||||||||
| Julcani | 100.00 | 425 | 0.017 | 7 | 7 | |||||||||||||||
| Shila - Paula | 100.00 | 8 | 0.397 | 3 | 3 | |||||||||||||||
| Antapite | 100.00 | 48 | 0.300 | 14 | 14 | |||||||||||||||
| Ishihuinca | 100.00 | 13 | 0.334 | 4 | 4 | |||||||||||||||
| Poracota | 100.00 | 36 | 0.332 | 12 | 12 | |||||||||||||||
| Yanacocha | 43.65 | 220,778 | 0.027 | 5,907 | 2,578 | |||||||||||||||
| Yanacocha (Conga) | 43.65 | 590,855 | 0.021 | 12,582 | 5,492 | |||||||||||||||
| El Brocal Marcapunta (Sulphides) | 53.76 | 20,016 | 0.010 | 204 | 110 | |||||||||||||||
| La Zanja | 53.06 | 24,795 | 0.018 | 437 | 232 | |||||||||||||||
| La Zanja (on Pads) | 53.06 | 40 | 21 | |||||||||||||||||
| Tantahuatay (Oxides) | 40.00 | 24,428 | 0.019 | 464 | 185 | |||||||||||||||
| Tantahuatay (Oxides on Leach Pad) | 40.00 | 14,845 | 0.004 | 64 | 26 | |||||||||||||||
| Breapampa | 100.00 | 5,133 | 0.038 | 197 | 197 | |||||||||||||||
| Mallay | 100.00 | 288 | 0.026 | 8 | 8 | |||||||||||||||
| Total | 902,759 | 0.023 | 20,402 | 9,348 | ||||||||||||||||
| SILVER | ||||||||||||||||||||
| % Ownership | DST (000) | Grade (Oz/TCS) | Oz (000) | Attributable | ||||||||||||||||
| Orcopampa | 100.00 | 1,091 | 0.54 | 589 | 589 | |||||||||||||||
| Poracota | 100.00 | 36 | 0.08 | 3 | 3 | |||||||||||||||
| Uchucchacua (Silver - Sulphides) | 100.00 | 4,661 | 13.45 | 62,682 | 62,682 | |||||||||||||||
| Uchucchacua (Zinc -Sulphides) | 100.00 | 670 | 5.09 | 3,409 | 3,409 | |||||||||||||||
| Uchucchacua (Silver - Oxides) | 100.00 | 355 | 16.93 | 6,008 | 6,008 | |||||||||||||||
| Julcani | 100.00 | 425 | 18.56 | 7,879 | 7,879 | |||||||||||||||
| Recuperada | 100.00 | 114 | 8.80 | 1,007 | 1,007 | |||||||||||||||
| Antapite | 100.00 | 48 | 0.22 | 11 | 11 | |||||||||||||||
| Shila - Paula | 100.00 | 8 | 0.92 | 8 | 8 | |||||||||||||||
| El Brocal (Tajo Norte - La Llave) | 53.76 | 63,333 | 0.76 | 48,262 | 25,946 | |||||||||||||||
| El Brocal Marcapunta (Sulphides) | 53.76 | 20,016 | 0.47 | 9,442 | 5,076 | |||||||||||||||
| Breapampa | 100.00 | 5,133 | 0.73 | 3,750 | 3,750 | |||||||||||||||
| La Zanja | 53.06 | 24,795 | 0.21 | 5,156 | 2,736 | |||||||||||||||
| La Zanja (on Pads) | 53.06 | 3,267 | 1,734 | |||||||||||||||||
| Tantahuatay (Oxides) | 40.00 | 24,428 | 0.24 | 5,762 | 2,305 | |||||||||||||||
| Tantahuatay (Oxides on Leach Pad) | 40.00 | 14,845 | 0.44 | 6,517 | 2,607 | |||||||||||||||
| Yanacocha (Conga) | 43.65 | 590,855 | 0.06 | 37,784 | 16,493 | |||||||||||||||
| Mallay | 100.00 | 288 | 10.87 | 3,133 | 3,133 | |||||||||||||||
| Total | 751,101 | 0.27 | 204,669 | 145,376 | ||||||||||||||||
| ZINC | ||||||||||||||||||||
| % Ownership | DST (000) | Grade % | ST (000) | Attributable | ||||||||||||||||
| Mallay | 100.00 | 288 | 7.09 | 20 | 20 | |||||||||||||||
| Uchucchacua (Silver - Sulphides) | 100.00 | 4,661 | 1.35 | 63 | 63 | |||||||||||||||
| Uchucchacua (Zinc - Sulphides) | 100.00 | 670 | 5.57 | 37 | 37 | |||||||||||||||
| Recuperada | 100.00 | 114 | 7.05 | 8 | 8 | |||||||||||||||
| El Brocal (Tajo Norte - La Llave) | 53.76 | 63,333 | 2.40 | 1,520 | 817 | |||||||||||||||
| Total | 69,066 | 2.39 | 1,648 | 945 | ||||||||||||||||
| LEAD | ||||||||||||||||||||
| % Ownership | DST (000) | Grade % | ST (000) | Attributable | ||||||||||||||||
| Julcani | 100.00 | 425 | 1.88 | 8 | 8 | |||||||||||||||
| Uchucchacua (Silver - Sulphides) | 100.00 | 4,661 | 0.97 | 45 | 45 | |||||||||||||||
| Uchucchacua (Zinc -Sulphides) | 100.00 | 670 | 3.87 | 26 | 26 | |||||||||||||||
| Mallay | 100.00 | 288 | 6.24 | 18 | 18 | |||||||||||||||
| Recuperada | 100.00 | 114 | 4.04 | 5 | 5 | |||||||||||||||
| El Brocal (Tajo Norte - La Llave) | 53.76 | 63,333 | 0.80 | 507 | 272 | |||||||||||||||
| Total | 69,491 | 0.88 | 609 | 374 | ||||||||||||||||
| COPPER | ||||||||||||||||||||
| % Ownership | DST (000) | Grade % | ST (000) | Attributable | ||||||||||||||||
| Julcani | 100.00 | 425 | 0.50 | 2 | 2 | |||||||||||||||
| Cerro Verde (Sulphides) | 19.58 | 4,194,537 | 0.37 | 15,520 | 3,039 | |||||||||||||||
| Cerro Verde (Oxides) | 19.58 | 530,850 | 0.50 | 2,654 | 520 | |||||||||||||||
| Yanacocha (Conga) | 43.65 | 590,855 | 0.28 | 1,648 | 719 | |||||||||||||||
| El Brocal Marcapunta (Sulphides) | 53.76 | 20,016 | 1.99 | 398 | 214 | |||||||||||||||
| Total | 5,336,683 | 0.38 | 20,222 | 4,493 | ||||||||||||||||
| MOLYBDENUM | ||||||||||||||||||||
| % Ownership | DST (000) | Grade % | ST (000) | Attributable | ||||||||||||||||
| Cerro Verde (Sulphides) | 19.58 | 4,194,537 | 0.01 | 587 | 115 | |||||||||||||||
| Total | 4,194,537 | 0.01 | 587 | 115 | ||||||||||||||||
| Prices used for Reserves Calculation: | ||||||||||||||||||||
| Gold US$1,400 /Oz - Silver US$30 /Oz - Zinc US$2,028 /MT - Lead US$2,000 /MT Copper - US$6,600 /MT | ||||||||||||||||||||
APPENDIX 5
| Compañía de Minas Buenaventura S.A.A. and subsidiaries | ||||||||
| Consolidated Statement of Financial Position | ||||||||
| As of December 31, 2012 and 2011 | ||||||||
| 2012 | 2011 | |||||||
| Assets | US$(000) | US$(000) | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | 186,712 | 480,968 | ||||||
| Financial assets at fair value through profit or loss | 54,509 | 52,178 | ||||||
| Trade accounts receivable, net | 256,431 | 172,569 | ||||||
| Other accounts receivable | 108,568 | 48,521 | ||||||
| Accounts receivable from associates | 22,534 | 47,425 | ||||||
| Derivative financial instruments | - | 1,283 | ||||||
| Inventory, net | 163,067 | 149,108 | ||||||
| Prepaid expenses | 11,837 | 16,234 | ||||||
| Total current assets | 803,658 | 968,286 | ||||||
| Other accounts receivable | 6,702 | 5,570 | ||||||
| Other accounts receivable from associates | 33,377 | 32,262 | ||||||
| Long-term inventory | 55,937 | 48,845 | ||||||
| Investment in associates | 2,436,237 | 1,935,004 | ||||||
| Mining concessions, development cost and property, plant and equipment, net | 1,134,276 | 830,997 | ||||||
| Deferred income tax asset, net | 113,343 | 125,538 | ||||||
| Other assets | 5,123 | 7,047 | ||||||
| Total assets | 4,588,653 | 3,953,549 | ||||||
| Liabilities and shareholders’ equity, net | ||||||||
| Current liabilities | ||||||||
| Trade accounts payable | 199,551 | 142,375 | ||||||
| Income tax payable | 7,935 | 36,423 | ||||||
| Other accounts payable | 59,096 | 41,150 | ||||||
| Provisions | 71,780 | 91,287 | ||||||
| Other accounts payable to associates | 890 | 883 | ||||||
| Embedded derivatives for concentrates sales, net | 4,939 | 7,306 | ||||||
| Financial obligations | 5,815 | 1,042 | ||||||
| Total current liabilities | 350,006 | 320,466 | ||||||
| Other non-current provisions | 100,041 | 86,528 | ||||||
| Other accounts payable to associates | 731 | 1,004 | ||||||
| Financial obligations | 173,489 | 105,072 | ||||||
| Total liabilities | 624,267 | 513,070 | ||||||
| Shareholders’ equity net | ||||||||
| Capital stock, net of treasury shares of US$(000) 62,622 | 750,540 | 750,540 | ||||||
| Investments shares, net of treasury shares of (000) US$762 | 1,399 | 2,019 | ||||||
| Additional paid-in capital | 219,471 | 225,978 | ||||||
| Legal reserve | 162,663 | 162,639 | ||||||
| Other reserves | 269 | 269 | ||||||
| Retained earnings | 2,566,787 | 2,034,768 | ||||||
| Cumulative unrealized, gain (loss) | 925 | 2,068 | ||||||
| 3,702,054 | 3,178,281 | |||||||
| Non-controlling interest | 262,332 | 262,198 | ||||||
| Total shareholders’ equity, net | 3,964,386 | 3,440,479 | ||||||
| Total liabilities and shareholders’ equity, net | 4,588,653 | 3,953,549 | ||||||
| Compañía de Minas Buenaventura S.A.A. and subsidiaries | ||||||||||||||||||||
| Consolidated Income Statements | ||||||||||||||||||||
| For the three and twelve month periods ended December 31, 2012 and 2011 | ||||||||||||||||||||
| For the three month period | For the twelve month | |||||||||||||||||||
| ended December, 31 | period ended December,31 | |||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| US$(000) | US$(000) | US$(000) | US$(000) | |||||||||||||||||
| Operating income | ||||||||||||||||||||
| Net sales | 411,613 | 384,970 | 1,496,349 | 1,493,882 | ||||||||||||||||
| Royalty income | 12,557 | 17,367 | 67,178 | 62,742 | ||||||||||||||||
| Total income | 424,170 | 402,337 | 1,563,527 | 1,556,624 | ||||||||||||||||
| Operating costs | ||||||||||||||||||||
| Cost of sales, without considering depreciation and amortization | (194,531 | ) | (123,944 | ) | (629,492 | ) | (446,163 | ) | ||||||||||||
| Exploration in units in operation | (55,865 | ) | (33,984 | ) | (153,018 | ) | (109,355 | ) | ||||||||||||
| Depreciation and amortization | (38,803 | ) | (27,206 | ) | (123,043 | ) | (96,381 | ) | ||||||||||||
| Royalties | (7,547 | ) | (8,323 | ) | (37,667 | ) | (60,262 | ) | ||||||||||||
| Total operating costs | (296,746 | ) | (193,457 | ) | (943,220 | ) | (712,161 | ) | ||||||||||||
| Gross income | 127,424 | 208,880 | 620,307 | 844,463 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Administrative | (21,643 | ) | (16,345 | ) | (99,295 | ) | (75,170 | ) | ||||||||||||
| Exploring in non-operating areas | (22,262 | ) | (14,066 | ) | (95,491 | ) | (49,593 | ) | ||||||||||||
| Selling | (5,809 | ) | (3,479 | ) | (18,090 | ) | (11,617 | ) | ||||||||||||
| Impairment of long-lived assets | (3,617 | ) | - | (3,617 | ) | - | ||||||||||||||
| Excess of workers’ profit sharing | (2,164 | ) | (6,221 | ) | (2,164 | ) | (6,221 | ) | ||||||||||||
| Other operating income (expense), net | 14,753 | (4,733 | ) | 16,584 | 2,513 | |||||||||||||||
| Total operating expenses | (40,742 | ) | (44,844 | ) | (202,073 | ) | (140,088 | ) | ||||||||||||
| Operating income | 86,682 | 164,036 | 418,234 | 704,375 | ||||||||||||||||
| Other income (expenses), net | ||||||||||||||||||||
| Share in the results of associates | 89,935 | 124,510 | 464,239 | 468,363 | ||||||||||||||||
| Interest income | 1,725 | 4,575 | 9,486 | 11,827 | ||||||||||||||||
| Interest expense | (3,608 | ) | (6,740 | ) | (8,290 | ) | (11,823 | ) | ||||||||||||
| Gain (loss) from currency exchange difference, net | 1,969 | 677 | 1,715 | (675 | ) | |||||||||||||||
| Total other income, net | 90,021 | 123,022 | 467,150 | 467,692 | ||||||||||||||||
| Income before income tax and non-controlling interest | 176,703 | 287,058 | 885,384 | 1,172,067 | ||||||||||||||||
| Income tax | (28,252 | ) | (35,467 | ) | (142,594 | ) | (211,589 | ) | ||||||||||||
| Net income | 148,451 | 251,591 | 742,790 | 960,478 | ||||||||||||||||
| Attributable to: | ||||||||||||||||||||
| Non-controlling interest | 9,384 | 23,661 | 58,105 | 101,551 | ||||||||||||||||
| Owners of the parent | 139,067 | 227,930 | 684,685 | 858,927 | ||||||||||||||||
| 148,451 | 251,591 | 742,790 | 960,478 | |||||||||||||||||
| Basic and diluted earnings per share attributable to | ||||||||||||||||||||
| Buenaventura, stated in U.S. dollars | 0.54 | 0.90 | 2.69 | 3.38 | ||||||||||||||||
|
Weighted average number of shares outstanding |
||||||||||||||||||||
| (common and investment), in units | 254,232,571 | 254,442,328 | 254,232,571 | 254,442,328 | ||||||||||||||||
| Compañía de Minas Buenaventura S.A.A. and subsidiaries | ||||||||||||||||||||
| Consolidated Statements of cash flows | ||||||||||||||||||||
| For the three and twelve month periods ended December 31, 2012 and 2011 | ||||||||||||||||||||
|
For the three month period |
For the twelve month period |
|||||||||||||||||||
|
ended December, 31 |
ended December, 31 |
|||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| US$(000) | US$(000) | US$(000) | US$(000) | |||||||||||||||||
| Operating activities | ||||||||||||||||||||
| Proceeds from sales | 352,963 | 417,535 | 1,410,120 | 1,505,476 | ||||||||||||||||
| Royalties received | 21,035 | 18,671 | 76,106 | 56,153 | ||||||||||||||||
| Value Added Tax (VAT) recovered | 10,779 | 3,225 | 40,940 | 22,585 | ||||||||||||||||
| Dividends received | 5,613 | - | 16,467 | - | ||||||||||||||||
| Interest received | 1,700 | 2,525 | 8,606 | 8,528 | ||||||||||||||||
| Payments to suppliers and third parties | (230,558 | ) | (139,264 | ) | (838,250 | ) | (672,479 | ) | ||||||||||||
| Payments to employees | (45,973 | ) | (58,381 | ) | (201,494 | ) | (164,677 | ) | ||||||||||||
| Income tax paid | (29,279 | ) | (25,371 | ) | (136,336 | ) | (111,802 | ) | ||||||||||||
| Payment of royalties | (9,187 | ) | (18,138 | ) | (38,985 | ) | (73,776 | ) | ||||||||||||
| Payments of interest | (206 | ) | (1,632 | ) | (1,485 | ) | (2,543 | ) | ||||||||||||
| Net cash and cash equivalents provided by operating activities | 76,887 | 199,170 | 335,689 | 567,465 | ||||||||||||||||
| Investment activities | ||||||||||||||||||||
| Decrease (increase) in time deposits | 539 | (8,679 | ) | 10,121 | 7,814 | |||||||||||||||
| Proceeds from sale of mining concessions, development cost, property, plant and equipment | 136 | 99 | 255 | 7,891 | ||||||||||||||||
| Proceeds from sales of investments shares | 3,658 | - | 3,658 | - | ||||||||||||||||
| Additions of mining concessions, development cost, property, plant and equipment | (134,007 | ) | (139,320 | ) | (442,927 | ) | (317,816 | ) | ||||||||||||
|
Payments for purchase of investments shares and contribution to associates |
(4,449 | ) | 204,943 | (58,594 | ) | (52,182 | ) | |||||||||||||
|
Net cash and cash equivalents provided by (used in) investment activities |
(134,123 | ) | 57,043 | (487,487 | ) | (354,293 | ) | |||||||||||||
| Financing activities | ||||||||||||||||||||
| Increase in financial obligations | 19,945 | 16,525 | 74,258 | 50,962 | ||||||||||||||||
|
Dividend paid |
(50,887 | ) | (58,521 | ) | (152,666 | ) | (142,488 | ) | ||||||||||||
|
Dividend paid to non-controlling interest |
(5,764 | ) | (18,318 | ) | (44,881 | ) | (66,736 | ) | ||||||||||||
| Capital stock reduction paid to non-controlling interest | - | - | (7,980 | ) | - | |||||||||||||||
| Proceeds from sales of investments shares | - | - | - | 60,379 | ||||||||||||||||
| Payments for purchase of investments shares to non-controlling interest | - | (225,303 | ) | - | (225,303 | ) | ||||||||||||||
| Payments of financial obligation | (48 | ) | (500 | ) | (1,068 | ) | (2,000 | ) | ||||||||||||
| Net cash and cash equivalents used in financing activities | (36,754 | ) | (286,117 | ) | (132,337 | ) | (325,186 | ) | ||||||||||||
| Decrease in cash and cash equivalents for the period, net | (93,990 | ) | (29,904 | ) | (284,135 | ) | (112,014 | ) | ||||||||||||
| Cash and cash equivalents at beginning of period | 280,702 | 500,751 | 470,847 | 582,861 | ||||||||||||||||
| Cash and cash equivalents at period-end | 186,712 | 470,847 | 186,712 | 470,847 | ||||||||||||||||
|
For the three month period |
For the twelve month period |
|||||||||||||||||||
|
ended December, 31 |
ended December, 31 |
|||||||||||||||||||
| 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 | 139,067 | 227,930 | 684,685 | 858,927 | ||||||||||||||||
| Add (less) | ||||||||||||||||||||
| Depreciation and amortization | 63,209 | 49,147 | 147,449 | 118,322 | ||||||||||||||||
| Net income attributable to non-controlling interest | 9,384 | 23,661 | 58,105 | 101,551 | ||||||||||||||||
| Deferred income tax | (6,366 | ) | (5,696 | ) | 10,809 | 42,369 | ||||||||||||||
| Accretion expense of the provision for closure of mining units and units in exploration | 3,407 | 4,931 | 6,812 | 9,100 | ||||||||||||||||
| Net cost of plant and equipment retired and sold | 4,120 | 1,858 | 4,120 | 1,858 | ||||||||||||||||
| Impairment of long-lived assets | 3,617 | - | 3,617 | - | ||||||||||||||||
| Loss (gain) from currency exchange differences | (1,969 | ) | (677 | ) | (1,715 | ) | 675 | |||||||||||||
| Share in the results of associates, net of dividends received in cash | (84,322 | ) | (124,510 | ) | (447,772 | ) | (468,363 | ) | ||||||||||||
| Provisions | 131,389 | 9,199 | (6,200 | ) | (12,274 | ) | ||||||||||||||
| Provision for estimated fair value of embedded derivatives related of concentrates | ||||||||||||||||||||
| sales and adjustments on open liquidations | 15,484 | (10,721 | ) | (16,592 | ) | 33,889 | ||||||||||||||
| Net changes in operating assets and liabilities accounts | ||||||||||||||||||||
| Decrease (increase) in operating assets | ||||||||||||||||||||
| Trade accounts receivable, net | (69,302 | ) | 44,271 | (83,862 | ) | (11,641 | ) | |||||||||||||
| Other accounts receivable | (36,743 | ) | (29,290 | ) | (60,047 | ) | 2,552 | |||||||||||||
| Other accounts receivable from associates | 16,551 | (6,771 | ) | 23,776 | (40,048 | ) | ||||||||||||||
| Inventory, net | (4,114 | ) | (8,818 | ) | (21,051 | ) | (88,461 | ) | ||||||||||||
| Prepaid expenses | 22,350 | (27,364 | ) | (4,397 | ) | (13,244 | ) | |||||||||||||
| Increase (decrease) of operating liabilities | ||||||||||||||||||||
| Trade accounts payable | 25,752 | 40,727 | 57,176 | 51,001 | ||||||||||||||||
| Other accounts payable | (154,169 | ) | 19,715 | 9,264 | (28,046 | ) | ||||||||||||||
| Income tax payable | (458 | ) | (8,422 | ) | (28,488 | ) | 9,298 | |||||||||||||
| Net cash and cash equivalents provided by operating activities | 76,887 | 199,170 | 335,689 | 567,465 | ||||||||||||||||
1 Production from Direct Operations 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.