6-K 1 v336731_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 February 2013

 

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-________________.

  

 
 

 

Description: T:\v336731\image_004.jpg  

Buenaventura Announces Fourth Quarter and Full Year 2012 Results

 

 

Lima, Peru, February 28, 2013 – 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.

 

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

 

 
        4 Q12     4 Q11     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 *       0.54       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.

 

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 1 of 16
 

 

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.

 

Operating Highlights     4Q12       4Q11       Var%       FY 2012       FY 2011       Var%  
Net Sales
(in millions of US$)
    411.6       385.0       7 %     1,496.3       1,493.9       0 %
Average Realized Gold Price Gold (US$/oz)*     1,713       1,690       1 %     1,679       1,574       7 %
Average Realized Gold Price (US$/oz) inc. Associates     1,714       1,684       2 %     1,669       1,577       6 %
Average Realized Silver Price (US$/oz)*     32.64       32.40       1 %     31.25       35.40       -12 %
Average Realized Lead Price (US$/MT)*     2,203       1,991       11 %     2,065       2,262       -9 %
Average Realized
Zinc Price (US$/MT)*
    1,947       1,905       2 %     1,919       2,200       -13 %
Average Realized Copper Price (US$/MT)*     7,899       7,524       5 %     7,937       8,568       -7 %

 

(*) Buenaventura’s Direct Operations

 

   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 Affiliates   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%
                               

(*) Buenaventura’s Direct Operations

 

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.

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 2 of 16
 

 

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.

 

 

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.

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 3 of 16
 

 

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%).

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 4 of 16
 

 

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.

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 5 of 16
 

 

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.

  

* * *

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 6 of 16
 

 

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.

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 7 of 16
 

 

 

**Tables to follow**

 

 

APPENDIX 1

 

   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

 

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 8 of 16
 

 

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 %

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 9 of 16
 

 

APPENDIX 3: EBITDA RECONCILIATION (in thousand US$)

 

      4Q12       4Q11       FY 2012       FY 2011  
Net Income     148,451       251,591       742,790       960,478  
Add / Substract:     -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.

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 10 of 16
 

 

APPENDIX 4: PROVEN AND PROBABLE RESOURCES

 

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 

 

Prices used for Reserve calculation: Gold US$1,400 /Oz - Silver US$30 /Oz

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 11 of 16
 

 

CONTINUE APPENDIX 4: PROVEN AND PROBABLE RESERVES

 

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 Reserve calculation: Zinc US$2,028 /MT- Lead US$2,000 /MT Copper - US$6,600 /MT

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 12 of 16
 

 

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 

 

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 13 of 16
 

 

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
ended December, 31
   For the twelve month 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 
                     
Weigthed average number of shares outstanding
(common and investment), in units
  254,232,571   254,442,328   254,232,571   254,442,328 

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 14 of 16
 

 

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
ended December, 31
   For the twelve month period
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 contibution to associates   (4,449)   204,943    (58,594)   (52,182)
                     
Net cash and cash equivalents provided by (used in) invesment activities   (134,123)   57,043    (487,487)   (354,293)
                     
Financing activities                    
Increase in financial obligations   19,945    16,525    74,258    50,962 
Dividen paid   (50,887)   (58,521)   (152,666)   (142,488)
Dividen 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 

     

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 15 of 16
 

 

   For the three month period ended December, 31   For the twelve month period 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 

 

Buenaventura
Fourth Quarter and Full Year-2012 Results
Page 16 of 16
 

 

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: February 28, 2013