Compania de Minas Buenaventura Q2 Net income at US$134.4 million

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 has announced its results for the second quarter 2009. All figures have been prepared according to Peruvian GAAP and are stated in U.S. dollars (US$).

Net income in the second quarter was US$134.4 million, 10% higher than the figure reported in 2Q08, while EBITDA including Yanacocha and Cerro Verde decreased 7% from US$282.8 million in 2Q08 to US$264.1 million in 2Q09. The increase in net income is explained by the 58% increase in contributions from Yanacocha (US$68.4 million in 2Q09 vs. US$43.3 million in 2Q08), which positively offset lower results from the Company’s direct operations and the lower contribution from Cerro Verde.

During 2Q09, net sales were US$198.1 million, a 3% decrease when compared to the US$204.3 million reported in 2Q08. The higher volume sold, and higher realized price of gold were offset by the decrease in the realized prices of silver and base metals, as well as the lower volume of zinc sold.

Royalty income during 2Q09 totaled US$14.6 million, a 20% increase when compared to the US$12.1 million reported in 2Q08 due to higher sales at Yanacocha.

Due to the aforementioned lower prices of silver and base metals, net sales for the six month period 2009 were US$361.2 million, a 13% decrease compared to the same period of 2008 (US$416.3 million), while royalty income was US$28.4 million, an 8% increase when compared to the US$26.3 million reported in the comparable period of 2008.

Buenaventura’s equity production(1) during 2Q09 was 99,322 ounces of gold, 4% lower than the 103,651 ounces reported in 2Q08 due to the lower production at Orcopampa. Silver production during 2Q09 was 3,712,947 ounces, a 6% decrease when compared to the 3,937,250 ounces reported in 2Q08.

Equity production(1) for the first half 2009 was 202,170 ounces of gold and 7,702,881 ounces of silver. This represented stable gold production (202,511 ounces in 2008), and a 2% increase in silver production compared to 2008 (7,860,151 ounces).

Despite the 12-day work stoppage caused by the road blockade to access the mine in June, Orcopampa’s (100%) total gold production was 71,923 ounces, a 3% increase when compared to 2Q08 (70,019 ounces). Production from the Chipmo mine in 2Q09 was 62,398 ounces, an 11% decrease when compared to the 70,019 ounces reported in 2Q08, which was complemented by the old tailings treatment that produced 9,525 gold ounces. Accumulated total gold production for the six-month period 2009 was 144,910 ounces, a 10% increase when compared to 2008 (132,214 ounces).

The decrease in ounces due to the work stoppage led to a cash operating cost in 2Q09 of US$293/oz, 18% higher when compared to 2Q08 (US$249/oz).

At Poracota, gold production in 2Q09 was 11,579 ounces, an increase of 2% when compared to 2Q08 (11,396 ounces), while the cash operating cost increased 39% from US$543/oz in 2Q08 to US$754/oz in 2Q09 due a 27% increase in tonnage treated, and a 19% decline in ore grade. Accumulated gold production for the six-month period 2009 was 24,676 ounces, 17% higher than the figure reported in 2Q08 (21,093 ounces).

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