General and Administrative Expenses
General and administrative expenses in 2Q12 were US$25.0 million, 28% higher than the figure reported in 2Q11 (US$19.5 million) due to a provision for early retirement contingencies and metallurgical research studies. For the first six-month period 2012, general and administrative expenses were US$54.8 million versus US$36.5 million in 2011 (50% increase).
Exploration Costs in Non-Operational Mining Sites
Exploration costs at non-operational mining sites, which include care and maintenance in 2Q12 were US$26.4 million, a 118% increase compared to the US$12.1 million reported in 2Q11. Buenaventura’s main exploration efforts were focused at the Trapiche (US$3.9 million), Tambomayo (US$3.8 million), San Gregorio (US$3.6 million), Chancas (US$3.3 million) and Breapampa (US$2.2 million) projects.Exploration costs at non-operational mining sites in the first six-month period 2012 were US$45.8 million, 102% higher than 2011 (US$22.7 million). Operating Income Operating income in 2Q12 was US$79.4 million, a 46% decrease compared to the US$147.9 million reported in 2Q11. This decrease was mainly due to a 32% increase in operating costs, while revenues increased 2%. Accumulated in the first six-month period 2012, operating income was US$210.9 million versus US$326.3 million in 2011 (decrease of 35%). Share in Associated Companies During 2Q12, Buenaventura’s share in associated companies was US$122.0 million, in-line with the US$123.2 million figure reported in 2Q11. Yanacocha’s contribution to these results increased 33%, from US$64.9 million in 2Q11 to US$86.6 million in 2Q12, while Cerro Verde’s contribution decreased 49% from US$65.9 million in 2Q11 to US$33.9 million in 2Q12. For the first six-month period 2012, Buenaventura’s share in associated companies was US$258.0 million, 9% higher than the US$236.2 million reported in 2011. YANACOCHA At Yanacocha (43.65% owned by Buenaventura), 2Q12 gold production was 389,979 ounces of gold, 14% higher than 2Q11 production (341,665 oz). Accumulated gold production in the first six-month period 2012 was 756,407 ounces, 20% higher than in 2011 (629,880 oz).