You are on page 1of 47

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 BVNS form 20-F filed with the Securities and Exchange Commission.
2

1. COMPANY OVERVIEW

Company overview towards 60 years in mining


Strong portafolio of mining projects Strong cash position / balance sheet

At least 70% of revenues from precious metals

Experienced team

Growing gold production from direct operations

No hedges

Listed in the NYSE (BVN) and the Lima Stock Exchange (BVN.LM)

Attractive Equity Investments


- 43.65% stake in Yanacocha - 19.35% stake in Cerro Verde - 49.00% stake in Chucapaca

Focused in exploration

2. GOLD MARKET

Our positive perception of gold


Demand factors
Investment demand due to US$ weakness and inflation risk. Potential increase in Central Banks demand.

Supply factors
No major gold deposits discovered.

Increase in the industry average cash cost (> US$ 650 per Oz.) Increasing social issues and environmental restrictions.
Flat global gold production and reserves, despite the higher gold price.

ETFs as a vehicle to acquire gold.

Increase in gold holdings per capita as safe haven.

3. FINANCIAL HIGHLIGHTS

Financial Track Record

Buenaventura & Affiliates Revenues & EBITDA Breakdown

Strong Balance Sheet

Total CAPEX US$ 250 MM


10

4. OPERATIONAL HIGHLIGHTS

Main Operations
NAME Uchucchacua Orcopampa Poracota METALS Silver, Lead, Zinc Gold, Silver Gold, Silver Silver, Copper, Lead Silver, Lead, Zinc Gold, Silver Gold, Silver Zinc, Lead, Silver, Copper Gold, Silver Gold, Silver TYPE (Open Pit / Underground) Underground Underground Underground Underground Underground Underground Underground Open Pit/Underground Open Pit Open Pit

DIRECT OPERATIONS

Julcani Recuperada Antapite Cedimin El Brocal (Colquijirca/Marcapunta) La Zanja Coimolache (Tantahuatay)

AFFILIATES

Yanacocha (43.65%) Cerro Verde (19.35%)

Gold, Silver Copper, Molybdenum

Open Pit Open Pit


12

Gold, Silver, Copper and Zinc Equity Production

* Estimated
13

Reserves & Resources (NRM)

14

Cash Costs
2012 CASH COST *
US$ / Oz Au US$ / Oz Ag US$ / TM Zn US$ / Lb Cu

METAL Gold Inc Yanacocha Silver Zinc Copper


* Estimated (1) Due to silver & lead by-product contribution

2011 CASH COST 575 15.5 - 126 (1) 1.1

2011 REALIZED PRICE 1,574 35.4 2,200 3.9

580 630 14.5 15.5 900 1,000 1.0 1.2

15

5. DIRECT OPERATIONS

ORCOPAMPA
Main metals Deposit & Mine type Plant Capacity (MT per day) Cash Cost (Average 2011) Gold, Silver Underground 1,200 US$ 454 / OzAu

MAIN GROWTH PROJECTS Completion of tailing dam # 4A expansion to 4.5 years in 3Q12. Expansion of plant capacity to 2,500 tpd to treat Orcopampa & Poracota ore.

* Estimated

17

Orcopampa: Chipmo operation & exploration areas

19,232 m HDD (98% programado)

18

PORACOTA
Main metals Deposit & Mine type Plant Capacity (MT per day) Cash Cost (Average 2011) Gold, Silver Underground 650 US$1,049 / OzAu

* Estimated

MAIN GROWTH PROJECTS Ultra fine milling project for refractory Manto Aguila to increase recovery from 47% to 75% . CAPEX US$5M. Completion expected by 4Q12.

19

ANTAPITE
Main metals Deposit & Mine type Plant Capacity (MT per day) Cash Cost (Average 2011) Gold, Silver Underground 700 US$ 1,158/ OzAu

* Estimated

MAIN GROWTH PROJECTS Working on social constrains to explore new surrounding areas and increase resources. Chocllanca water dam construction under an agreement with the community.

20

UCHUCCHACUA
Main metals Deposit & Mine type Plant Capacity (MT per day) Cash Cost (Average 2011) Silver, Zinc, Lead Underground 2,722 US$ 16.27 / OzAg

MAIN GROWTH PROJECTS Working on a manganese sulphate plant to expand ore reserves with manganese content and to increase production. CAPEX US$75M.

* Estimated

21

Uchucchacua Cross Section

22

EL BROCAL
Ownership 53.8% Buenaventura

COLQUIJIRCA
Main metals Deposit & Mine type Cash Cost (Average 2011) Zinc, Silver, Lead Open Pit US$ -322 / MtZn
* Estimated

MARCAPUNTA
Main metals Deposit & Mine type Cash Cost (Average 2011) Copper Underground US$ 3,907 / MtCu
* Estimated

23

EL BROCAL
RESERVES & RESOURCES
Tajo Norte + La LLave RESERVES Marcapunta Norte Tajo Norte + La LLave Marcapunta Norte Marcapunta Oeste San Gregorio 21.4 3.0 69.3 1.9 0.1 0.1 -

Silver (M Oz)
61.0

Zinc (M ST)
1.7

Copper (M ST)
-

Gold (M Oz)
-

24.4

0.9

0.4

RESOURCES

6.0

1.0 -

1.5 -

24

LA ZANJA
Ownership Main metals Deposit & Mine type Estimated production per year Cash Cost (Average 2011) 53% BVN, 47% Newmont Gold, Silver Open Pit 100k Oz Au US$ 367 / OzAu
* Estimated

MAIN PROJECT Construction of the Pampa Verde project to expand the life of mine. To be completed in 3Q12. Aprox CAPEX US$ 23 MM.

25

TANTAHUATAY
Ownership Main metals Deposit & Mine type Estimated production per year Cash Cost (Average 2011) 40% BVN, 44% SCCO, 16% ESPRO Gold, Silver Open Pit 100k Oz Au US$ 465 / OzAu
* Estimated

MAIN GROWTH PROJECTS Cienaga Norte project to expand the life of mine. Working on the EIS. Aprox CAPEX US$35 MM.

26

6. AFFILIATES

YANACOCHA
Ownership Main metals Deposit & Mine type CAS (Average 2011) 43.65% Buenaventura, 51% Newmont, 5% IFC Gold, Silver Open Pit US$ 581 / OzAu
* Estimated

CONGA PROJECT CAPEX: US$4.0 US$4.2 Billion Reserves: 11.8 M oz of gold. 3.2 B Lb of copper. Status: EIA approved. Average Estimated Production: 650 K oz of gold per year. 200 M Lb (100K ST) of copper per year. CAS: US$400 per oz of gold.

28

CERRO VERDE
Ownership Main metals Deposit & Mine type Cash Cost (Average 2011) 19.35% Buenaventura, 54% Freeport McMoran, 21% Sumitomo Copper, Molybdenum Open Pit US$ 1.11 / LbCu
* Estimated

MAIN GROWTH PROJECTS 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$3.8 Billion

29

7. DEVELOPMENT PROJECTS AND EXPLORATION PROSPECTS

BREAPAMPA
Ownership Main metals Deposit & Mine type Reserves Resources Production Profile per year (estimated) Status CAPEX
Jan

100% Buenaventura Gold, Silver Open Pit 5.65 M ST @ 0.035 oz/ST Au (201k Oz Au) 7.11 M ST @ 0.016 oz/ST Au (118k Oz Au) 60k gold Oz per year Under construction US$ 48 million

FebMar

Apr May Jun

Jul

Aug Sep Oct Nov Dec

Jan Feb Mar Apr May Jun

Jul Aug

Sep Oct Nov Dec

2011 EIA approved Start Construction

2012 Start Production

2013

31

EL BROCAL EXPANSION PROJECT


Ownership CAPEX Objective Status
53.8% Buenaventura US$ 313 million To expand plant capacity from 6K TPD to 18K TPD and a new tailing dam construction Completing expansion from 10K TPD to 18K TPD

32

HUANZA HYDROELECTRICAL PLANT


Ownership CAPEX Objective Energy generation Status
100% Buenaventura US$ 150 160 million To assure energy supply for direct operations 90.6 Mw Under construction

Jan Feb Mar

Apr

May Jun Jul Aug Sep Oct Nov Dec

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Dec

2010
Civil works started

2011

2012

2013
Construction completed

33

Location of Exploration Prospects

Chucapaca Trapiche Tambomayo Hualgayoc Vacas Heladas * Pucay Colquemayo P. Antapite Yumpag Ccaccapaqui El Faique

* Exploration located in Northern Chile.


34

CHUCAPACA
(Operated by CANTERAS DEL HALLAZGO)

Ownership Main metals Deposit & Mine Type Status Mineral Resources (NRM)

49% Buenaventura / 51% Gold Fields Gold (copper & silver) Open pit / Flotation + CIL Working on feasibility study to be delivered on Q2 2012 132.7 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 model and cone for Canahuire

(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)

36

TRAPICHE

Ownership Main metals Deposit & Mine type Status

100% Buenaventura Copper, Molybdenum Open pit / Heap leach / SXEW Advanced exploration and feasibility In June 2011: 30 years agreement signed with the Mollebamba community 499 Mt @ 0.48% Cu (2.2 M MT) Cut off: 0.2% Cu Includes 193 M Mt @ 0.56% Cu leachable material

Mineral Resources (NRM)

37

Trapiche: Mo anomaly and chalcocite blanket

TAMBOMAYO

Ownership Main metals Deposit & Mine Type Status Mineral Resources (NRM)

100% Buenaventura Gold and silver High grade, underground with conventional metallurgy Advanced exploration & mine development 0.84 Mt @ 9.88 oz/t Ag & 0.308 oz/t Au

39

Tambomayo: Longitudinal section Mirtha vein

Indicated and inferred resources (NRM) 0.84 Mt @ 9.88 oz/t Ag & 0.308 oz/t Au

8. STRATEGY

41

Creating Value Through


EXPLORATIONS
Focused on precious metals Solid exploration portfolio Exploring inside Peru & Latinamerica Share risk through joint venture

OPERATIONS
Improving mining operations Improving metallurgical process Incorporating chemical process Assuring power supply

M&A
Mainly gold and precious metals Junior companies Located in Peru & Latinamerica Controlling interests

SUSTAINABILITY

Taking care of environmental issues

Improving community relations

Good corporate governance

SAFETY IN EVERYTHING WE DO
42

Shareholders Strategy
BVN has not issued new equity for 16 years. Dividend policy: dividends will not be less than 20% of net profits.

43

www.buenaventura.com Investor Relations : Daniel Domnguez Telephone: (511) 419-2536 E-mail: ddominguez@buenaventura.com.pe

APPENDIX

45

Major mining properties & projects in Cajamarca

46

Shareholders Structure
NAME Institutional Investors Benavides Family Peruvian Pension Funds (AFPs) Others INTEREST 44% 28% 15% 14 %

OUTSTANDING SHARES 254,442,328


47