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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Buenaventura Announces Second Quarter 2012 Results

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.04% owned by Buenaventura), attributable contribution was US$9.6 million (negative US$0.5 million in 2Q11). For the six-month period 2012, attributable contribution was US$17.9 million (negative US$0.8 million in 2011)

Net Income

Buenaventura’s 2Q12 net income was US$152.6 million (US$0.60 per share), a 23% decrease compared to the US$197.6 million (US$0.90 per share) reported in 2Q11. Accumulated net income in the first six-month period 2012 was US$360.0 million, 15% lower when compared to 2011 (US$422.3 million).

Project Development

LA ZANJA DEVELOPMENT PROGRAM

  • The Pampa Verde Project will include the development of a new open pit, expansion of the current leach pad and improvements to the operation’s road access. Construction began in 2Q11. As of June 30, 2012, total project expenditures were US$39.02 million (total investment is US$70.4 million). Completion is expected in 1Q13.
       
      Progress as of June 30, 2012
San Pedro Sur Leach Pad Stage II     85.34%
San Pedro Sur Leach Pad Stage III     15.64%
San Pedro Sur Waste Rock Deposit     100%
Pampa Verde Pit     8.50%
Pampa Verde Top Soil Deposit     0%
Pampa Verde Waste Soil Deposit     45%
Pampa Verde Acid Water Plant     8.40%
Pampa Verde Auxiliary Access     80%
Pampa Verde Waste Rock Deposit     14%
Pampa Verde Haul Road to SPS     20%

TANTAHUATAY DEVELOPMENT PROGRAM

  • The 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 totaled US$20 million. Project construction will begin as soon as the environmental impact assessment is approved.

MALLAY

  • Mallay mine construction was completed in March 2012. The project has already received the mine operating license. Production began April 2012.
  • During 2Q12, Mallay production included 138,000 Ag Oz, 800MT Pb and 1050MT Zn.
  • Currently, Mallay holds Brownfield exploration investments in the Chancas–Chiptaj area.

RIO SECO MANGANESE SULFATE PLANT

  • Buenaventura continued with the construction of the manganese sulfate plant with a total budget of US$76.0 million. As of June 30, 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 by the end of 4Q12. The construction of the Sulfuric Acid and the Manganese Sulfate Plant is expected to be ready 4Q12. Construction and start-up tests at both plants are scheduled at the end of 2012.

BREAPAMPA

  • As of June 30, 2012, Buenaventura’s total investment at the Breapampa Project was US$40.3 million, representing 84% of the entire budget (US$48.0 million).
  • Construction progress includes:
       
      Progress as of June 30, 2012
Leach Pad Stage I     99.2%
Process Plant     100%
Dam Facilities     98.5%
Internal Electric System     99%
Waste Soil Deposit     87.2%
Top Soil Deposit     100%
  • This project should be completed by the end of 3Q12. Production will also begin at end of 3Q12
  • Expected gold production in 2012 is approximately 22,000 ounces

HUANZA HYDROELECTRICAL PLANT

  • As of June 30, 2012, construction progress at the Huanza Project included:
      1.   Water Conduction Tunnel: 10,074 meters of excavation was 100% completed
2. Powerplant: Civil works was 85% completed
3. Pallca Dam: 78.2 % (39,907 m3 concrete) of work was completed
4. Electromechanical equipment is nearly complete, and will be delivered on schedule. Equipment assembly is 13% complete

Other Information

At the Board of Directors meeting held July, 31, 2012, the following resolutions were passed:

      1.   Acceptance of Mr. Luis Coleridge’s resignation as a member of the Company’s Board of Directors who retired at the age of 75 after 12 years on the Board and President of the Audit Committee, in accordance with Buenaventura’s policy,
2. Appointment of Mr. Jose Miguel Morales as a new member of the Board of Directors
3. Appointment of Mr. German Suarez as President of the Audit Committee
4. Appointment of Mr. Carlos del Solar as member of the Audit Committee
5. Appointment of Ms. Gulnara la Rosa as General Council

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.

Stock quotes in this article: BVN 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs