Results & Outlook BVN LISTED NYSE Compañía de Minas Buenaventura S.A.A. September, 2004.
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Results & Outlook BVN LISTED NYSE Compañía de Minas Buenaventura S.A.A. September, 2004
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Transcript of Results & Outlook BVN LISTED NYSE Compañía de Minas Buenaventura S.A.A. September, 2004.
Results & OutlookResults & Outlook
BVNLISTED
NYSE
Compañía de MinasCompañía de MinasBuenaventura S.A.A.Buenaventura S.A.A.
September, 2004September, 2004
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 differ from these projections are described in BVN’S form 20-F filed with the Securities and Exchange Commission.
Buenaventura
• In precious metals mining in Peru since 1953, having produced 280.8 Million ounces of silver and 8.2 Million ounces of gold.
• Among the main gold and silver producers in the world
Two growing underground gold mines and the 4th largest silver mine.
Aggressive and proven exploration program.
43.65% stake in Yanacocha, Latin America’s largest gold mine and the most profitable in the world.
• Best geological information in Perú.
• Joint ventures with Newmont, Peñoles, Gold Fields, SPCC, BHP Billiton, Barrick & Meridian Gold.
• Growing reserves, production, and earnings.
• Quoted on the Lima Stock Exchange (BUE.LM) since 1971 and NYSE: BVN since 1996.
Buenaventura
Our Achievements
Increased our Gold & Silver Production
Gold (Thousand troy ounces) (1) (2) Silver (Million troy ounces) (1)
(1) Equity share of production(2) 43.65% of Yanacocha’s production since 1996
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1998 1999 2000 2001 2002 2003 2004e0
2
4
6
8
10
12
14
1998 1999 2000 2001 2002 2003 2004e
619775
9141040
1253
1535
1650
11.0 11.6 11.6
12.912.5
13.1 13.6
Solid Reserve Base
0
2
4
6
8
10
12
14
16
18
1997 1998 1999 2000 2001 2002 20030
10
20
30
40
50
60
70
80
1997 1998 1999 2000 2001 2002 2003
Gold (Million troy ounces) (1) (2) Silver (Million troy ounces) (1) (3)
(1) Equity share of reserves(2) 43.65% of Yanacocha’s reserves since 1996(3) Does not include silver from Yanacocha with a recovery between 10% - 30%
9.1
14.516.3 15.3 15.0 14.9
6.1
49.554.7 56.7
60.859.9
60.874.9
124.4149.4 143.1
227.2
333.0
0
40
80120
160
200240
280
320
360
EBITDA including Yanacocha
US
$ m
illio
n
1999 2000 2001 2002 2003
46.9
71.161.8
110.5
48.2
156.9
0
20
40
60
80
100
120
140
160
Improved our Economic Results
8.5
19.3
31.2
59.3
75.5
0
10
20
30
40
50
60
70
80
EBITDA BVN´s operations
US
$ m
illio
n
1999 2000 2001 2002 2003
Net Income
US
$ m
illio
n
1999 2000 2001 2002 2003
117.0136.9
161.9181.3
234.5
0
50
100
150
200
250
US
$ m
illio
n
Sales Revenue
1999 2000 2001 2002 2003
Including Mark to Market variation (FAS 133)Without effect of Mark to Market Value variation
Improved Quartely Economic Results2Q02 / 2Q03 / 2Q04
13.8
19.1
29.3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2Q02 2Q03 2Q04
EBITDA BVN´s operations
US
$ m
illio
n
15.2
27.436.9
66.1
32.7
0
20
40
60
80
2Q02 2Q03 2Q04
Net Income
US
$ m
illio
n
42.9
60.5
74.2
0
10
20
30
40
50
60
70
80
2Q02 2Q03 2Q04
US
$ m
illio
n
Sales Revenue
45.8
79.888.1
0.0
20.0
40.0
60.0
80.0
100.0
2Q02 2Q03 2Q04
EBITDA including Yanacocha
US
$ m
illio
n
Including Mark to Market variation (FAS 133)
Without effect of Mark to Market Value variation
600800
1,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,0003,2003,4003,6003,800
Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04150
200
250
300
350
400
450
Market Cap. Gold Price
Improving Shareholders’ ValueUS$/oz
US
$ m
illio
n
To achieve this, it was required:
To maintain Uchucchacua’s production
at low cash operating cost
012345
6789
10
1999 2000 2001 2002 2003 2004e
Sil
ver
(Mil
lio
n t
roy
ou
nce
s)
US$/oz Ag
4.5
3.5
2.5
5
4
3
2
0
20
40
60
80
100
120
140
160
180
200
1999 2000 2001 2002 2003 2004e
Th
ou
san
d o
f O
z g
old
To continue Increasing Orcopampa’s Gold production
at low cash operating cost
US$/oz Au
200
180
160
140
120
100
Continue Increasing Yanacocha’s Production
at low cash operating cost
1.7 1.8 1.9
2.3
2.83.0
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
1999 2000 2001 2002 2003 2004e
Go
ld M
illi
on
ou
nce
s
U.S.$/oz
120
90
60
30
0
150
0
10
20
30
40
50
60
70
80
90
100
2001 2002 2003 2004e
170
166
162
158
154
150
146
142
138
134
130
U.S.$/oz Au
Continue Improving Antapite’s Operation
at low cash operating costT
ho
usa
nd
oz
of
Go
ld
Solid Yanacocha Reserves
0
5
10
15
20
25
30
35
40
1998 1999 2000 2001 2002 2003
Million oz of Gold
(1)
(1) Minas Conga infill drilling feasibility
– Orcopampa : 5.0 years L.O.M.
– Antapite : 4.5 years L.O.M.
– Uchucchacua : 6.0 years L.O.M.
Expanding mineral resources in our controlling operations
... and we are working on:
• Improving Metallurgical processing in Uchucchacua to:
– Produce in excess of 10.0 million oz Ag per year, and continue cutting cash operating costs lower than $ 3.00 /oz.
• Controlling Orcopampa´s metallurgy to:
– Produce 200,000 oz Au per year, controlling cash operating cost at $130/oz. with the new cyanidation plant.
Strategy
• Focus on precious metals mining in Perú.
• Remain strong operating company.
• Upgrade operations and high standards of safety, environment protection & social responsibility.
• Generate reserves through effective exploration.
• Pursue acquisitions preferably in South America.
• Share risks through joint ventures.
• Long-term hedging policies.
• Permanent contact with our investors.
• Commitment to good practices of corporate governance.
Vision
• To grow shareholder value and contribute to the economic development of Peru by :
1. Responsible and efficient operation of precious metal mines in Latin America; taking into consideration the interests of all stakeholders including local communities.
2. Carefully targeted and well designed exploration and development programs
3. Continued commitment to low cost production and maintenance of position as a main world precious metal producer.
www.buenaventura.com
Contact Person : Daniel DomínguezTelephone: (511) 419-2536 e-mail : [email protected]
BVNLISTED
NYSE
Continuous Growth and Constant Improvement
