LIMA, Peru, Oct. 29, 2009 (PRNewswire-FirstCall) -- Compania de Minas Buenaventura S.A.A. ("Buenaventura" or "the Company") (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru's largest, publicly-traded precious metals mining company, announced today its results for the third quarter 2009. All figures have been prepared according to Peruvian GAAP and are stated in U.S. dollars (US$).
Comments from the Chief Executive Officer:
Mr. Roque Benavides, Buenaventura's Chief Executive Officer stated:
"This quarter net income was US$148.5 million, 48% higher than the figure reported in 3Q08.
"EBITDA from Buenaventura's Direct Operations was US$101.9 million, an increase of 12% when compared to the figure reported in 3Q08 (US$91.3 million), while EBITDA including Yanacocha and Cerro Verde increased 37%, from US$229.3 million in 3Q08 to US$313.5 million in 3Q09.
"Higher gold sales revenues, in addition to the 67% increase in contributions from Yanacocha and Cerro Verde, positively impacted Buenaventura's results."
During 3Q09, net sales were US$214.6 million, a 10% increase when compared to the US$195.3 million reported in 3Q08. This was explained by the higher realized price of gold despite a decrease in the volume of lead, silver and zinc sold.
Royalty income during 3Q09 totaled US$16.2 million, a 33% increase when compared to the US$12.2 million reported in 3Q08 due to higher sales at Yanacocha.
Net sales for the nine month period 2009 were US$575.9 million, a 6% decrease compared to the same period of 2008 (US$611.6 million), while royalty income was US$44.6 million, a 16% increase when compared to the US$38.6 million reported in the comparable period of 2008.
Buenaventura's equity production(1) during 3Q09 was 108,736 ounces of gold, 2% higher than the 106,161 ounces reported in 3Q08. Silver production during 3Q09 was 3,518,740 ounces, a 4% decrease when compared to the 3,682,022 ounces reported in 3Q08.
Equity production(1) for the nine month period 2009 was 310,905 ounces of gold and 11,221,621 ounces of silver. This represented stable gold production (308,683 ounces in 2008), and a 3% decrease in silver production compared to 2008 (11,557,431 ounces).
Orcopampa's (100%) total gold production was 82,569 ounces, 13% higher than 3Q08 production (73,342 ounces). Production from the Chipmo mine in 3Q09 was 73,849 ounces, 5% higher than the 70,197 ounces reported in 3Q08, which was complemented by the old tailings treatment that produced 8,720 gold ounces. Accumulated total gold production for the nine-month period 2009 was 227,479 ounces, an 11% increase when compared to 2008 (205,557 ounces).
Cash operating cost in 3Q09 was US$299/oz, 18% higher when compared to 3Q08 (US$254/oz). This was explained by:
1. A 30% increase in contractor costs due to a 51% increase in diamond drilling, and an 8% rise in tonnage exploited.
2. An increase in labor costs due to the salary adjustments negotiated with unions in July, 2009.
At Poracota, gold production in 3Q09 was 13,366 ounces, an increase of 18% when compared to 3Q08 (11,297 ounces), while the cash operating cost increased 49%, from US$621/oz in 3Q08 to US$928/oz in 3Q09 due a 46% increase in tonnage treated, which offset a 16% decline in ore grade. Accumulated gold production for the nine-month period 2009 was 38,043 ounces, 17% higher than the figure reported in 3Q08 (32,389 ounces).
Total royalties paid to the government at both Orcopampa and Poracota in 3Q09 was US$3.0 million.
At Uchucchacua (100%), total silver production during 3Q09 was 5% lower than 3Q08 (2,457,477 ounces and 2,583,873 ounces, respectively) due to a 19% decline in ore treated and 12% lower silver grade. Zinc production decreased 40% (from 1,947 MT in 3Q08 to 3,236 MT in 3Q09), while lead production decreased 39% (1,921 MT in 3Q09 vs. 3,144 MT in 3Q08). Accumulated production for the nine-month period 2009 was 8,058,432 ounces of silver, 4% lower than in 2008 (8,382,673 ounces); 6,658 MT of zinc, a decrease of 21% when compared to 2008 (8,439 MT) and 7,104 MT of lead, 15% lower than the figure reported in 2008 (8,327 MT).
Cash operating cost in 3Q09 was US$10.62/oz, a 32% increase compared to the $8.06/oz in 3Q08. This was best explained by:
1. The lower by-product contribution due to a decrease in zinc and lead production.
2. A 36% rise in contractor expenses explained by a 9% increase in tonnage exploited and a 23% increase in diamond drilling.
3. The aforementioned factors were partially offset by a 20% decrease in supply costs due to a reduction in reagent consumption for the cyanidation plant.
Total royalties paid to the government at Uchucchacua in 3Q09 was US$1.0 million.
At Antapite (100%), total production in 3Q09 was 8,297 ounces of gold, a decrease of 11% compared to 3Q08 (9,351 ounces), mainly due to a 34% decrease in ore milled despite a 32% increase in grade. Accumulated gold production was 23,430 ounces, a 31% decrease when compared to 2008 (33,759 oz).
Gold cash operating cost in 3Q09 was US$766/oz, in-line with the figure reported in 3Q08 (US$755/oz).
Total royalties paid to the government at Antapite in 3Q09 US$0.1 million.
At Colquijirca (El Brocal 45.97%), total zinc production was 16,795 MT in 3Q09, an 8% decrease when compared to the 18,169 MT reported in 3Q08 due to an 8% decrease in ore grade.
