This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buenaventura Announces First Quarter 2012 Results

Share in Associated Companies

During 1Q12, Buenaventura’s share in associated companies was US$136.0 million, 20% higher than the US$112.9 million reported in 1Q11. Yanacocha’s contribution to these results increased 83%, from US$48.2 million in 1Q11 to US$88.2 million in 1Q12, while Cerro Verde’s contribution decreased 37% from US$71.0 million in 1Q11 to US$44.9 million in 1Q12.


At Yanacocha (43.65% owned by Buenaventura), 1Q12 gold production was 366,428 ounces of gold, 27% higher than the figure reported in 1Q11 (288,214 ounces).

Costs applicable to sales (CAS) at Yanacocha in 1Q12 were US$481/oz, 20% lower than the figure reported in 1Q11 (US$603/oz) due to lower operating costs, partially offset by higher worker´s participation.

Net income at Yanacocha in 1Q12 was US$202.0 million, a 82% increase compared to the 1Q11 figure (US$110.7 million).

Capital expenditures at Yanacocha were US$227.4 million in 1Q12.


At Cerro Verde (19.35% owned by Buenaventura), 1Q12 copper production was 63,295 MT, a 20% decrease when compared to 1Q11 (79,463 MT).

During 1Q12, Cerro Verde reported net income of US$232.3 million, a 37% decrease when compared to US$367.7 million in 1Q11. This was mainly due to a 23% decrease in sales revenues (US$568.8 million in 1Q12 versus US$740.9 million in 1Q11).

Capital expenditures at Cerro Verde in 1Q12 totaled US$82.2 million.

CANTERAS DEL HALLAZGO (Chucapaca project)

At Canteras del Hallazgo (49% owned by Buenaventura), there was a net loss reported in 1Q12 totaling US$5.4 million due to the execution of the project’s exploration program.

Net Income

Buenaventura’s 1Q12 net income was US$207.5 million (US$0.82 per share), an 8% decrease compared to the US$224.8 million (US$0.88 per share) reported in 1Q11. This was mainly due to a 26% decline in operating income.

Project Development



Pampa Verde Project will allow the development of a new open pit, an expansion of the current leach pad and improvements in the operation’s road access. Construction began in 2Q11. As of March 31, 2012, total project expenditures were US$25.5 million (total investment is US$32.5 million). Completion is expected in 3Q12.
  Progress as of March 31, 2012
San Pedro Sur Leach Pad Stage II 51.88%
San Pedro Sur Waste Rock Deposit 100%
Pampa Verde Pit 0%
Pampa Verde Top Soil Deposit 0%
Pampa Verde Waste Soil Deposit 45%
Pampa Verde Acid Water Plant 8.40%
Pampa Verde Auxiliary Access 40%
Pampa Verde Waste Rock Deposit 12%
Pampa Verde Haul Road to SPS 14%

  • Cienaga Norte project includes the Leach Pad’s Stage II (additional 10.5 Ha), development of the Cienaga Norte Pit and an access road between the leach pad and the open pit. Total CAPEX totals US$30 million. Project construction will begin in 3Q12, after the approval of the environmental impact assessment.

  • Mallay mine construction was completed in 1Q12. The project has already received the mine operating license, which allows the mine to begin production. Total CAPEX was US$60 million.
  • During the first year of operation, silver production from Mallay is expected to be approximately 900k oz of silver.
  • Currently, Mallay holds Brownfield exploration investments in the Chancas–Chiptaj area.

  • Buenaventura continued with the construction of the manganese sulfate plant with a total budget of US$76.0 million. As of March 31, 2012, total expenditures were US$44.5 million. The project includes an acid leaching facility, a sulfuric acid production plant and a manganese sulfate crystallization plant.
  • The leaching processing facilities are expected to be completed at the end of 2Q12. The construction of the Sulfuric Acid and the Manganese Sulfate Plant is expected to be ready in 2Q12. Construction and start-up tests at both plants are scheduled at the end of 2012.

  • As of March 31, 2012, Buenaventura’s total investment at the Breapampa Project was US$30.1 million, representing 62% of the entire budget (US$48.0 million).
  • Construction progress includes:
        Progress as of March 31, 2012
Leach Pad Stage I       98%
Process Plant       97%
Dam Facilities       97%
Internal Electric System       96%
Waste Soil Deposit       71%
Top Soil Deposit       90%
  • This project should be completed by the end of 2Q12. Production will begin at the beginning of 3Q12.
  • Expected gold production in 2012 is approximately 22,000 ounces.

  • As of March, 2012, Buenaventura’s total disbursement at the Huanza Project was US$146.4 million (which included US$14.5 million in advanced payments), representing 92% of the entire budget. US$116 million of the total amount invested was financed via a leasing agreement totaling US$119.0 million.
  • Construction progress at the Huanza Project included:
                  1.   Water Conduction Tunnel: 9,760 meters of excavation was 97% completed.
2. Powerplant: civil work was 75% completed.
3. Pallca Dam: 30.1% was completed.
4. Electromechanical equipment is nearly complete, and will be delivered on schedule. Equipment assembly is 7% complete.

* * *

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.

5 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs