Buenaventura Spikes Thanks to Increased Gold Price

The Peruvian miner Buenaventura (Compania De Minas Buenaventura S.A.A.) (NYSE:BVN) reported a net income for the last quarter equaling US$0.40 per share. Buenaventura, with a market cap of US$3.96 billion, is Peru's largest publicly traded precious metals company.

Net sales for the quarter reached US$195.3 million, which is a 4% increase from 3Q '07. This was due to a 26% increase in the realized gold price, as well as a 17% increase in gold volumes sold. On the other hand, zinc and silver volumes decreased by (-6%) and (-11%) respectively. While the price of zinc was down (-45%) compared to 3Q '07, the price of silver was up (+17%).

Gold production for 3Q '08 reached 106.161 ounces of gold, up 3% from 3Q '07. Silver production reached 3.682.022 ounces, and zinc 10.410 MT.

At the company's Orcopampa project (100%), total gold production was 73.342 ounces, at a cash operating cost of US$248/oz. At Paracota, total gold production was 11.297 ounces, at a cash operating cost of US$621/oz.

At Uchucchacua (100%) total silver production reached 2.583.873 ounces for the quarter, at a cash operating cost of 8.06/oz.

Total gold production at Antapite (100%) was 9.351 ounces, down 43% from 3Q '07, due to a decrease in gold grade from 0.38 Oz/ST to 0.20 Oz/ST. Cash operating cost at the project was US$755/oz due to lower grades and increased diamond drilling.

Buenaventura's balance sheed as of September 30, 2008, shows US$242 million of current, and US$386 million of long-term liabilities, and US$1.746 million shareholders' equity.

A negative US$(-17,8 million) change in cash flow left a cash balance of US$393 million at the end of the period.

The Board of Directors, on October 30, declared a cash dividend of US$0.09 per share to be paid on November 26, 2008.

Buenaventura's ADRs, at the current price of US$15.51 have a YTD positive performance of (+1,9%). The ADR-ratio is 1:1.

Buenaventura's latest interim statement can be found in our download section.