Presentacion Buenaventura
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Transcript of Presentacion Buenaventura
Cautionary Statement
This package of presentation materials contains
forward-looking information regarding sales and
production volumes, cash production costs, general
and administrative expenses, capital expenditures,
development projects and other matters. Important
factors that might cause future results to differfactors that might cause future results to differ
from these projections are described in BVN’S form
20-F filed with the Securities and Exchange
Commission.
2
1. COMPANY OVERVIEW1. COMPANY OVERVIEW
Company overview
towards 60 years in mining
Strong portafolio of Strong cash position / Strong portafolio of
mining projects
At least 70% of revenues
from precious metals
Growing gold production
Strong cash position /
balance sheet
Experienced team
Growing gold production
from direct operations
Listed in the NYSE (BVN)
and the Lima Stock
Exchange (BVN.LM)
No hedges
Focused in explorations- 43.65% stake in Yanacocha
- 19.26% stake in Cerro Verde
- 49.00% stake in Chucapaca
Attractive Equity Investments
4
2. GOLD MARKET2. GOLD MARKET
5
Our positive perception of gold
Demand factorsDemand factors Supply factorsSupply factorsDemand factorsDemand factors
Investment demand due to US$ weakness and inflation risk.
Potential increase in Central Banks demand.
Supply factorsSupply factors
No major gold deposits discovered.
Increase in the industry average cash cost (< US$ 600 per Oz.)demand.
ETF’s as a vehicle to acquire gold.
Increase in gold holdings per capita as safe haven.
(< US$ 600 per Oz.)
Increasing social issues and environmental restrictions.
Flat global gold production and reserves, despite the higher gold price.
6
3. FINANCIAL HIGHLIGHTS3. FINANCIAL HIGHLIGHTS
Financial Track Record
8
Buenaventura & Affiliates Revenues & EBITDA Breakdown
9
Strong Balance Sheet
Total CAPEX
US$ 200 MM
10
4. OPERATIONAL HIGHLIGHTS4. OPERATIONAL HIGHLIGHTS
Main Operations
NAME METALSTYPE
(Open Pit / Underground)
Uchucchacua Silver, Lead, Zinc Underground
Orcopampa Gold, Silver Underground
Poracota Gold, Silver Underground
Julcani Silver, Copper, Lead Underground
Recuperada Silver, Lead, Zinc Underground
Antapite Gold, Silver Underground
Cedimin Gold, Silver Underground
El Brocal
(Colquijirca/Marcapunta)Zinc, Lead, Silver, Copper Open Pit/UndergroundD
IRE
CT
OP
ER
AT
ION
S
(Colquijirca/Marcapunta)
La Zanja Gold, Silver Open Pit
Coimolache
(Tantahuatay)Gold, Silver Open Pit
Yanacocha (43.65%) Gold, Silver Open Pit
Cerro Verde (19.26%) Copper, Molybdenum Open Pit
DIR
EC
TA
FF
ILIA
TE
S
12
Gold, Silver, Copper and Zinc Equity Production
* Estimated
13
13.29
11.8711.25 11.0612
14
16
Gold R&R
Reserves & Resources
160.0180
Silver R&R
11.8711.25 11.06
7.81 8.15 8.32
10.50
0
2
4
6
8
10
12
2007 2008 2009 2010
00
0 O
z
Reserves Resources
101.6
121.9
151.4 151.5160.0
135.1
151.5 148.9
0
20
40
60
80
100
120
140
160
180
2007 2008 2009 2010
M O
z
Reserves Resources
14
Cash Costs
METAL2011 CASH
COST *
2010 CASH
COST
2010 REALIZED
PRICE
Gold Inc Yanacocha US$ / Oz Au 450 - 500 464 1,232
Silver US$ / Oz Ag 11.0 - 12.0 11.89 20.86
Zinc US$ / TM Zn 900 – 1,100 994 2,136
Copper US$ / Lb Cu 0.87 - 0.93 0.88 3.680.87 - 0.93 0.88
15
* Estimated
5. DIRECT OPERATIONS5. DIRECT OPERATIONS
ORCOPAMPA
Main metals Gold, Silver
Deposit & Mine type Underground
Plant Capacity (MT per day) 1,200
Cash Cost (Average 2010) US$ 349 / OzAu
MAIN GROWTH PROJECTS
•2nd stage old tailings retreatment to recover 1.1 M oz
of silver between year 2011 – 2013.
* Estimated
of silver between year 2011 – 2013.
• Tailings dam # 4A expansion to 4.5 years. Estimated
CAPEX US$18 M.
17
Orcopampa: Chipmo Area
NESW
TOTAL ORE RESERVES : 1.20 Mt @ 18.5 g/t Au (0.71 Moz Au)
TOTAL NMR : 1.02 Mt @ 18.1 g/t Au (0.60 Moz Au)
NESW
3,600
3,800
Nv. 3490
Nv. 3440
Nv. 3590
Nv. 3640
Nv. 3690
Hole Width (m) Au g/t
1 0.20 27.9
2 2.20 50.6
3 1.20 16.9
4 1.56 22.5
5 0.78 13.4
6 1.05 1.8
7 0.40 22.5
8 1.00 17.4
9 0.20 26.5
10 0.30 13.6
11 0.75 12.7
12 3.22 29.4
13 0.28 24.8
14 4.85 21.5
15 4.63 34.7
16 0.54 40.0
Chilcaymarca River
Height (m)NAZARENO SHAFT
PROMETIDA SHAFT
19,232 m HDD (98% programado) 18
3,200
3,000
3,400
Nv. 3290
Nv. 3390
Nv. 3340
Nv. 3230
Nv. 3170
12
3
4
5
67
8
9
10
1
1
1
2
13
14
15 16
Economic Ore > 13.17gAu/tMarginal Ore 11.01 – 13.17gAu/t
Submarginal Ore 8.95 – 11.01gAu/tLow Grade Ore 2.30 – 8.95gAu/t
0 m 100 200 m
PORACOTA
Main metals Gold, Silver
458500
R&R
Deposit & Mine type Underground
Plant Capacity (MT per day) 650
Cash Cost (Average 2010) US$ 919 / OzAu
MAIN GROWTH PROJECTS
* Estimated
195
12388
53
195 193140
458
0
100
200
300
400
500
2007 2008 2009 2010
Oz
Au
(0
00
)
Reserves Resources
• Preparing mining plan to exploit oxide ore
(100K gold oz).
19
ANTAPITE
Main metals Gold, Silver
Deposit & Mine type Underground
Plant Capacity (MT per day) 700
Cash Cost (Average 2010) US$ 761/ OzAu
MAIN GROWTH PROJECTS
* Estimated
• Exploring new surrounding areas to increase
resources.
• Working on social constrains.
20
UCHUCCHACUA
Main metals Silver, Zinc, Lead
Deposit & Mine type Underground
Plant Capacity (MT per day) 2,722
Cash Cost (Average 2010) US$ 12.35 / OzAg
MAIN GROWTH PROJECTS
• Working on a manganese sulphate plant to expand
ore reserves with manganese content and to increase
* Estimated
ore reserves with manganese content and to increase
production.
21
Uchucchacua Cross SectionTOTAL ORE RESERVES : 4.45 Mt @ 13.5 oz/t Ag, 1.6 % Pb, 2.3 % Zn
TOTAL NRM : 3.28 Mt @ 13.2 oz/t Ag, 1.9 % Pb, 2.7 % Zn
?
??
?
?
?
?
? ?
?
?
?
?
Ks-js
sm
Ks-jm
NW SE
LUCRECIA AREA
SOCORRO AREA
CARMEN AREA
HUANTAJALLA AREA
5,000
4,600
4,200
Level 4120
IRMA
VIVIANA
ROSMERY
EVA
MARIA
RITA
LUCIA
Height
(m.)
CLAUDIA
Level 4180
Level 4240
Level 4300
Level 4360
Level 4400
Level 4450
Level 4500
Level 4550
Level 4600
5,000
4,600
4,200
22
?
?
?
? ?
?
?
400 m.
Ks-ji3,800
Level 3990
Level 4120ROSMERY
MARION
NORTE
Level 4060
Level 3920
Ks-js
Ks-jm
Ks-ji
Upper Jumasha Formation
Marker bed
Middle Jumasha Formation
Lower Jumasha Formation
Intrusives
Sulfide orebody
Oxide orebody
Veins
Faults
Luz shaft
Mastershaft
Dacitic intrusive+ +
2
1
DMC252-01-2011-012
DMC252-01-2011-014
DMC252-01-2011-014
N° Width Oz Ag %Pb %Zn %Mn Height
1 13.75 29.8 1.19 1.01 23.14 3841
DMC252-01-2011-012
N° Width Oz Ag %Pb %Zn %Mn Height
2 4.92 21.4 6.46 6.72 11.03 3776
3,800
52,600 m DDH drilled in 2010
EL BROCAL
Ownership 53% Buenaventura
Main metals Zinc, Silver, Lead
Deposit & Mine type Open Pit
Cash Cost (Average 9M10) US$ 994 / MtZn
* Estimated
COLQUIJIRCA
Ownership 53% Buenaventura
23
Main metals Copper
Deposit & Mine type Underground
Cash Cost (Average 2010) US$ 3,530 / MtCu
* Estimated
MARCAPUNTA
EL BROCAL
Silver Zinc Copper Gold RESERVES & RESOURCES
Silver
(M Oz)
Zinc
(M ST)
Copper
(M ST)
Gold
(M Oz)
RESERVES
Tajo Norte +
La LLave64.2 1.7 - -
Marcapunta
Sulfides3.5 - 0.2 0.1
RESOURCES
Tajo Norte +
La LLave69.4 1.9 - -
Marcapunta
Sulfides20.2 - 1.8 1.8
Marcapunta
Oxides31.8 - - 0.7
San Gregorio 30.3 6.1 - -
24
LA ZANJA
Ownership 53% BVN, 47% NewmontOwnership 53% BVN, 47% Newmont
Main metals Gold, Silver
Deposit & Mine type Open Pit
Estimated production per year 100k Oz Au
Cash Cost (Average 2010) US$ 339 / OzAu
MAIN PROJECT
* Estimated
25
• Construction of the Pampa Verde project to expand
the life of mine. To be completed in 3Q12. Aprox
CAPEX US$ 14.5 MM.
TANTAHUATAY
Ownership 40% BVN, 44% SCCO, 16% ESPROOwnership 40% BVN, 44% SCCO, 16% ESPRO
Main metals Gold, Silver
Deposit & Mine type Open Pit
Estimated production per year 100k Oz Au
Cash Cost (Estimated) US$ 400 / OzAu
• Construction completed in July 2011.
* Estimated
26
• Construction completed in July 2011.
• Started operations in August 2011.
6. AFFILIATES6. AFFILIATES
YANACOCHA
Ownership43.65% Buenaventura, 51%
Newmont, 5% IFCNewmont, 5% IFC
Main metals Gold, Silver
Deposit & Mine type Open Pit
Cash Cost (Average 2010) US$ 448 / OzAu
CONGA PROJECT
•CAPEX:
•Reserves:• ≈ US$4.0 – US$4.2 Billion
•11.8 M oz of gold.
* Estimated
•Reserves:
• Status:
• Average Estimated Production:
• CAS:
•11.8 M oz of gold.
• 3.2 B Lb of copper.
• EIA approved.
• ≈ 650 K oz of gold per year.
• ≈ 200 M Lb (100K ST) of copper per
year.
• ≈ US$400 per oz of gold.
28
CERRO VERDE
Ownership
19.26% Buenaventura, 54%
Freeport McMoran, 21% Ownership Freeport McMoran, 21%
Sumitomo
Main metals Copper, Molybdenum
Deposit & Mine type Open Pit
Cash Cost (Average 2010) US$ 0.88 / LbCu
MAIN GROWTH PROJECTS
* Estimated
• Feasibility study for the large-scale concentrator
expansion was completed in 2Q11.
• Expansion of concentrator facilities from 120K to
360K MT per day.
• incremental annual production of aprox 600 M Lb
(300K ST) of copper beginning in 2016
• Total CAPEX: US$3.5 Billion
29
7. DEVELOPMENT PROJECTS AND 7. DEVELOPMENT PROJECTS AND
EXPLORATION PROSPECTSEXPLORATION PROSPECTS
BREAPAMPA
Ownership 100% Buenaventura
Main metals Gold, Silver
Deposit & Mine type Open Pit
Resources 12,4910 M ST @ 0.025 oz/ST Au (317k Oz Au)
Production Profile per year
(estimated)60k gold Oz per year
Status EIS approved
CAPEX US$ 48 millionCAPEX US$ 48 million
31
Start ConstructionEIS approved
20112011 20122012 20132013
Start Production
JulJan Mar Apr May Jun Aug Sep Oct Nov Dec
JulJan Feb Mar Apr May Jun Aug Sep Oct Nov Dec
Feb
EL BROCAL EXPANSION PROJECT
Ownership 53% Buenaventura
CAPEX US$ 239 million
ObjectiveTo expand plant capacity from 6K TPD to 18K TPD
and a new tailings dam construction
Status Completing expansion from 10K TPD to 18K TPD
32
HUANZA HYDROELECTRICAL PLANT
Ownership 100% BuenaventuraOwnership 100% Buenaventura
CAPEX US$ 145 million
Objective To assure energy supply for direct operations
Energy generation 90.6 Mw
Status Under construction
AprJan Feb Mar May Jun Jul Aug Sep Oct Nov Dec
JunJan Feb Mar Apr May Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
33
20102010 20112011 20122012 20132013
Jan Feb Mar May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Civil works started Construction completed
Location of Exploration Prospects
Trapiche
Chucapaca
Hualgayoc
Colquemayo
Tuyumina
Yumpag
34
Hualgayoc
El Faique
Pachuca / Real del Monte *
* 100 Km north of Mexico City, in
the state of Hidalgo.
Yumpag
Pisqahuanca
CHUCAPACA(Operated by CANTERAS DEL HALLAZGO)
Ownership 49% Buenaventura / 51% Gold Fields
Main metals Gold (copper & silver)
Deposit & Mine Type Open pit / Flotation + CIL
Status Working on feasibility study to be delivered on Q2 2012Status Working on feasibility study to be delivered on Q2 2012
Inferred Mineral Resources for Canahuire132.7 M Mt @ 1.4 g/t Au, 0.09% Cu and 10.8 g/t Ag
= 7.6 million Au equivalent ounces (As of September 2011)
35
Longitudinal section, block modeland cone for Canahuire
36(As of September 2011) NRM : 132.7 Mt @ 1.4 g/t Au, 0.09 % Cu, 10.8 g/t Ag (7.6 M ounces of equivalent gold)
TRAPICHE
Ownership 100% Buenaventura
Main metals Copper, Molybdenum
Deposit & Mine type Open pit / Heap leach / SXEW
StatusAdvanced exploration and feasibility
In June 2011: 30 year agreement signed with the Mollebamba community
449 Mt @ 0.48% Cu (2.2 M MT)
Inferred Resources
449 Mt @ 0.48% Cu (2.2 M MT)
Cut off: 0.2% Cu
Includes 120 M Mt @ 0.7% Cu leachable material
37
Trapiche: Mo anomaly and
chalcocite blanket
Mollebamba
* NRM : 499.5Mt @ 0.48% Cu, 0.01% Mo
(Cut off: 0.2% Cu)
TR-59
Mollebamba
TR-59TR-17
Trapiche porphyry
Millocucho skarn
Chalcocite blanket
500 m
5 Km
4800
> 100 g/t MoDiamond drill holes
Mining properties
Corihuaraca hill
* Includes 120Mt @ 0.70% Cu of leachable material
Chalcocite blanket
120 Mt @ 0.70% Cu
TUYUMINA
Ownership 100% Buenaventura
Main metals Gold and silver
Deposit & Mine Type High grade, underground with conventional metallurgy
Status Advanced exploration & mine development
39
Inferred Mineral Resources
for Tuyumina0.64 Mt @ 10.4 oz/t Ag & 8.2 g/t Au
Tuyumina: Longitudinal section
Mirtha vein (Au eq grade x thickness)
8. STRATEGY8. STRATEGY
41
EXPLORATIONSEXPLORATIONS OPERATIONSOPERATIONS M & AM & A
Creating Value Through…
EXPLORATIONSEXPLORATIONS
Focused on precious metals
Solid exploration portfolio
Exploring inside Peru & Latinamerica
Share risk through jointventure
OPERATIONSOPERATIONS
Improving mining operations
Improving metallurgical process
Incorporating chemical process
Assuring power supply
M & AM & A
Mainly gold and preciousmetals
Junior companies
Located in Peru & Latinamerica
Controlling interestsventure
Assuring power supply Controlling interests
SUSTAINABILITYSUSTAINABILITYTaking care of
environmental
issues
Improving
community
relations
Good corporate
governance
42
SAFETY IN EVERYTHING WE DOSAFETY IN EVERYTHING WE DO
Shareholders Strategy
BVN has not issued new BVN has not issued new
equity for 15 yearsequity for 15 years
43
equity for 15 yearsequity for 15 years
www.buenaventura.com
Investor Relations : Daniel Domínguez
Telephone: (511) 419-2536
E-mail: [email protected]
APPENDIXAPPENDIX
45
Major mining properties & projects
in Cajamarca
46
Shareholders Structure
NAME INTEREST
Institutional Investors 55 %
Benavides Family 27 %
Peruvian Pension Funds (AFP’s) 12 %
Others 6 %
OUTSTANDING
SHARES
254,442,328
47