Buenaventura Announces Second Quarter 2012 Results

Accumulated net sales in the first six-month period 2012 were US$690.7 million, in-line with the figure reported in the same period in 2011 (US$690.8 million), while royalty income was US$36.8 million, a 30% increase when compared to the US$28.2 million reported in 2011.

Production and Operating Costs

Buenaventura’s equity production ¹ in 2Q12 was 107,168 ounces of gold, 11% lower than the 120,641 ounces reported in 2Q11 mainly due to a decrease in Orcopampa and Poracota production. Silver production in 2Q12 was 4.5 million ounces, a 32% increase when compared to the figure reported in 2Q11 (3.4 million oz).

Equity production ¹ in the first six-month period 2012 was 225,022 ounces of gold and 8.5 million ounces of silver. This represented a 5% decrease in gold production (237,259 ounces in 2011), and 13% higher silver production compared to 2011 (7.5 million ounces).

Equity Production 1
			2Q12			2Q11			Var%			6M12			6M11			Var%
Gold (oz)			107,168			120,641			-11%			225,022			237,259			-5%
Gold (oz) inc. Yanacocha			277,394			269,778			3%			555,191			512,202			8%
Silver (oz)			4,509,259			3,404,689			32%			8,523,034			7,549,314			13%
Lead ( MT)			6,910			4,617			50%			11,625			7,757			50%
Zinc ( MT)			11,842			6,164			92%			19,245			8,772			119%
Copper (MT) inc. Cerro Verde			13,629			17,134			-20%			29,044			35,985			-19%

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

Orcopampa’s (100% owned by Buenaventura) production from the Chipmo mine in 2Q12 was 56,762 ounces, 18% lower than the 69,335 ounces reported in 2Q11 due to a 15-day strike and 15% lower ore grade (See Appendix 2). The old tailings treatment produced 3,984 gold ounces (compared to 5,876 ounces in 2Q11). As a consequence, total gold production in 2Q12 was 60,745 ounces, 19% lower than the 75,211 ounces reported in 2Q11. Accumulated total gold production in the first six-month period 2012 was 130,010 ounces, a 15% decrease when compared to 2011 (153,736 ounces).

Cash operating cost in 2Q12 was US$541.6/oz, 23% higher when compared to 2Q11 (US$441/oz). This was mainly explained by:

			1.		A 18% decrease in gold ounces produced
			2.		A 12% increase in reagents, basically explained by an increase in cyanide and sulfuric acid prices
			3.		Contractor costs increased 32% due to an increase in waste moved from areas with narrow veins

At Poracota, gold production in 2Q12 was 6,231 ounces, a 54% decrease when compared to 2Q11 (13,427 ounces) due to the aforementioned 15-day strike, lower ore grade and a decrease in the recovery rate (See Appendix 2). Accumulated gold production in the first six-month period 2012 was 17,551 ounces, 31% lower than the figure reported in 2011 (25,528 ounces). Cash operating cost was US$1,851/oz, 98% higher than the figure reported in 2Q11 (US$936/oz), mainly explained by the 54% decrease in gold ounces produced.

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