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Buenaventura Announces First Quarter 2012 Results

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; 19.35% 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 2010 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, 2010, through Resolution N°102-2010-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 2011.
For periods up to and including the year ended December 31, 2010, 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, 2011, 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, 2010, 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.
 
 

APPENDIX 1

 
Equity Participation in

Subsidiaries and Affiliates (as of December 31, 2011)

    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*     53.78     Colquijirca and Marcapunta
Canteras del Hallazgo S.A **     49.00     Chucapaca Project
Compañía Minera Coimolache S.A **     40.09     Tantahuatay
Minera Yanacocha S.R.L **     43.65     Yanacocha
Sociedad Minera Cerro Verde S.A.A **     19.35     Cerro Verde

 

(*)Consolidates

(**) Equity Accounting

 
 

APPENDIX 2

       
GOLD PRODUCTION
Three Months Ended March 31
Orcopampa     Orcopampa Old Tailings
2012   2011   %     2012   2011   %
Ore Milled MT 117,478   113,822   3% 126,784   82,115   54%
Ore Grade gr/MT 17.25 21.26 -19% 1.920 2.06 -7%
Recovery Rate % 95.7% 95.4% 0% 79.6% 74.9% 6%
Ounces Produced 62,358   73,570   -15%     6,907   4,954   39%
 
Three Months Ended March 31
Antapite Poracota
2012   2011   %     2012   2011   %
Ore Milled MT 34,282 32,519 5% 58,221 54,817 6%
Ore Grade gr/MT 4.25 8.23 -48% 7.51 8.23 -9%
Recovery Rate % 95.3% 95.6% 0% 79.8% 82.1% -3%
Ounces Produced 4,483   8,254   -46%     11,320   12,101   -6%
 
LA ZANJA     TANTAHUATAY
1Q12   1Q11   %     1Q12   1Q11   %
Ounces Produced 26,329   25,151   5%     27,606   0    
 
SILVER PRODUCTION
Three Months Ended March 31
Uchucchacua El Brocal
2012   2011   %     2012   2011   %
Ore Milled MT 259,341 253,085 2% 802,963 576,353 39%
Ore Grade gr/MT 450.17 432.00 4% 32.80 46.29 -29%
Recovery Rate % 72.4% 71.0% 2% 57.8% 53.0% 9%
Ounces Produced 2,744,686   2,501,813   10%     443,942   453,674   -2%
 
SILVER PRODUCTION
Three Months Ended March 31
Julcani
2012   2011   %
Ore Milled MT 32,205 31,307 3%
Ore Grade gr/MT 654.86 645.26 1%
Recovery Rate % 93.2% 93.3% 0%
Ounces Produced 631,627   606,288   4%
 
ZINC PRODUCTION
Three Months Ended March 31
Uchucchacua Colquijirca
2012   2011   %     2012   2011   %
Ore Milled MT 259,341 253,085 2% 331,337 -
Ore Grade % 1.50 1.33 13% 3.24 -
Recovery Rate % 57.1% 55.9% 2% 70.8% -
MT Produced 2,439   1,902   28%     7,607   -    
 
 

APPENDIX 3

 
EBITDA RECONCILIATION (in thousand US$)            
       
          1Q12     1Q11
Net Income         220,986     246,144
Add / Substract:         -49,856     -39,111
Provision for income tax, net         47,675     45,539
Share in associated companies by the equity method, net         -135,986     -112,919
Interest income         -2,749     -3,335
Interest expense         1,296     2,145
Loss on currency exchange difference         285     798
Depreciation and Amortization         23,404     21,503
Provision for long term officers´ compensation         7,315     0
Workers´ participation provision         8,904     7,158
EBITDA Buenaventura Direct Operations         171,130     207,033
EBITDA Yanacocha (43.65%)         158,906     84,638
EBITDA Cerro Verde (19.35%)         73,100     104,910
EBITDA Buenaventura inc Yanacocha and Cerro Verde         403,136     396,581
 

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.

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