Compañia 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 results for the second quarter (2Q14) and 6-month (6M14) periods ended June 30, 2014. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non GAAP basis and stated in U.S. dollars (US$).
Second Quarter 2014 Highlights:
- EBITDA from direct operations increased 89% compared to 2Q13 and 41% compared to 1Q14.
- Net Income increased 22% compared to 2Q13 and improved significantly compared to the US$16.1 loss in the previous quarter.
- Stronger results were driven by higher silver and copper volume sold, from Uchucchacua and El Brocal’s production, respectively.
- Yanacocha’s contribution to results was a loss of US$12.9 million, mainly due to a US$21.3 million leachpad write-down. Gold production is expected to ramp up in 2H14 to reach guidance of 895k - 985k ounces.
- Equity gold production from direct operations to recover in 2H14 to achieve annual guidance (420k – 430k ounces). Accessing new areas closer to surface in Orcopampa will allow a 2014 production of 200k ounces. La Zanja and Tantahuatay are expected to produce 140k ounces each in 2014. Breapampa will produce 80k ounces of gold in 2014.
- Uchucchacua is expected to increase ore treated volume in 3Q14 due to new permittings. Ore extraction will be focused in the Socorro mine with high silver-manganese content.
- The Public Audience at Tambomayo project was successfully held on July 24-25. The Environmental Impact Assessment (EIA) has been filed and approval is expected by the end of 2014.
- Huanza Hydro plant commenced full commercial operations And should generate an excess of 95 MW to supply energy to all direct operations at competitive costs.
- El Brocal plant expansion to 18K tons per day was completed and full operations should start in September. The plant will operate in August at 14k tons per day capacity.
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||||||||
| Consolidated Income Statement | ||||||||||||||
| For the six-month periods ended June 30, 2014 and 2013 | ||||||||||||||
For the three-month period
ended June 30,
|
For the six-month period
ended June 30,
| |||||||||||||
| 2,014 | 2,013 | 2,014 | 2,013 | |||||||||||
| US$(000) | US$(000) | US$(000) | US$(000) | |||||||||||
| Operating income | ||||||||||||||
| Net sales | 297,710 | 273,099 | 571,678 | 613,972 | ||||||||||
| Royalty income | 7,399 | 12,693 | 15,424 | 26,495 | ||||||||||
| Total operating income | 305,109 | 285,792 | 587,102 | 640,467 | ||||||||||
| Operating costs | ||||||||||||||
| Cost of sales, without considering depreciation and amortization | (149,634 | ) | (172,869 | ) | (292,593 | ) | (331,004 | ) | ||||||
| Exploration in operating units | (21,907 | ) | (49,681 | ) | (53,635 | ) | (96,050 | ) | ||||||
| Depreciation and amortization | (49,771 | ) | (46,494 | ) | (95,909 | ) | (85,670 | ) | ||||||
| Royalties | (7,102 | ) | (6,929 | ) | (14,480 | ) | (16,595 | ) | ||||||
| Total operating costs | (228,414 | ) | (275,973 | ) | (456,617 | ) | (529,319 | ) | ||||||
| Gross profit | 76,695 | 9,819 | 130,485 | 111,148 | ||||||||||
| Operating expenses | ||||||||||||||
| Administrative expenses | (23,061 | ) | (22,262 | ) | (51,817 | ) | (37,168 | ) | ||||||
| Exploration in non-operating areas | (14,821 | ) | 4,085 | (25,195 | ) | (17,675 | ) | |||||||
| Stoppage of mining units | (15,941 | ) | - | (15,941 | ) | - | ||||||||
| Selling expenses | (4,614 | ) | (3,970 | ) | (8,784 | ) | (8,480 | ) | ||||||
| Contingencies | (2,002 | ) | (1,340 | ) | (9,643 | ) | (2,393 | ) | ||||||
| Impairment of long-term lived assets | - | - | (794 | ) | - | |||||||||
| Other, net | 8,268 | 9,320 | 9,724 | 9,631 | ||||||||||
| Total operating expenses | (52,171 | ) | (14,167 | ) | (102,450 | ) | (56,085 | ) | ||||||
| Operating profit (loss) | 24,524 | (4,348 | ) | 28,035 | 55,063 | |||||||||
| Other income, net | ||||||||||||||
| Share in the results of associates under equity method | 20,169 | 48,806 | 15,689 | 132,974 | ||||||||||
| Financial income | 1,842 | 2,228 | 3,648 | 3,184 | ||||||||||
| Financial expenses | (3,199 | ) | (8,678 | ) | (6,590 | ) | (9,881 | ) | ||||||
| Net loss from currency exchange difference | (268 | ) | (6,715 | ) | (764 | ) | (6,603 | ) | ||||||
| Total other income, net | 18,544 | 35,641 | 11,983 | 119,674 | ||||||||||
| Profit before income taxes and non-controlling interest | 43,068 | 31,293 | 40,018 | 174,737 | ||||||||||
| Income taxes | (10,494 | ) | (10,434 | ) | (17,816 | ) | (42,945 | ) | ||||||
| Net profit | 32,574 | 20,859 | 22,202 | 131,792 | ||||||||||
| Attributable to: | ||||||||||||||
| Owners of the parent | 23,088 | 18,953 | 6,976 | 121,630 | ||||||||||
| Non-controlling interest | 9,486 | 1,906 | 15,226 | 10,162 | ||||||||||
| 32,574 | 20,859 | 22,202 | 131,792 | |||||||||||
| Basic and diluted earnings per share attributable | ||||||||||||||
| to owners of the parent, stated in U.S. dollars | 0.09 | 0.07 | 0.03 | 0.48 | ||||||||||
| Weighted average number of shares outstanding | ||||||||||||||
| (common and investment), in units | 254,186,867 | 254,186,867 | 254,186,867 | 254,186,867 | ||||||||||
