Presentacion PPT(Ingles 4Q)

Presentation 2014

Cautionary Statement

This package of presentation materials contains

forward-looking information regarding sales and

production volumes, cost applicable to sales,

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.

2

1. COMPANY OVERVIEW

3

Investment Thesis

4

Gold and

Silver growing

production

9 operating

mines

(5 underground

and 4 open pit)

Profitable

equity

investments:

Yanacocha &

Cerro Verde

Best

Corporate

Governance

Practices

A unique mining culture which provides

an essential competitive advantage

Strong balance sheet with low leverage and no hedge in precious metals

More than 60 years of successful

history

Explorations

devoted

7 projects

delivered in

the last 4

years

Investment Thesis

5

Tambomayo

La Zanja

underground

deposit

(Alejandra)

Chucapaca

underground

Yanacocha

(Chaquicocha,

Colorado, Conga,

Yanacocha

Sulphides)

Maximizing Cash Flows

CAPEX

spending

discipline

2014 vs 2013

Prudent

M&A

strategy

Cerro Verde

expansion

Deep pipeline of growth opportunities

Cost

reduction

achieved in

2H13

Small assets

divestiture

2. GOLD MARKET

6

Long term gold drivers

Demand drivers

Inflation risk in the mid term.

Central Banks are still net buyers. Massive physical buying in Asia.

ETF’s as a vehicle to acquire gold.

Increase in gold holdings per capitaas safe haven.

Supply factors

No major gold deposits discovered.

Increase in the industry average cash cost (> US$ 650 per Oz) and all-in

cost (> US$1,200 per Oz).

Increasing social issues and environmental restrictions.

Flat global gold production and reserves. Reserves replenishment

constraints.

7

Increasing gold demand in SGE

Gold demand seen on the Shanghai Gold Exchange this year (SGE).

Source: Mitsui Global Precious Metals

8

3. FINANCIAL HIGHLIGHTS

9

Financial Track Record

10

STRATEGIC PLAN 2014

11

POTENTIAL ANNUAL SAVINGS

� Stopping production in 4 non-profitable operations (Shila-Paula,Poracota, Recuperada and Antapite).

� Focusing mine exploration activities on high grade and accesibletargets.

� Selling small assets with reduced contibution to revenues andreserves.

� Focusing on profitable operations.

� Increasing mining operation efficiency in Orcopampa andUchucchacua.

� Adding contributions from Rio Seco Industrial Plant and HuanzaHydro Plant.

≈ USD 80 – 100 MILLION

Buenaventura & AffiliatesRevenues & EBITDA Breakdown

12

Cash Position & Debt

13

CAPEX 2014

14

4. OPERATIONAL HIGHLIGHTS

15

Main Operations

NAME SINCE METALS TYPE

Uchucchacua 1975 Silver, Lead, Zinc Ug

Orcopampa 1967 Gold, Silver Ug

Julcani 1953 Silver, Copper, Lead Ug

Mallay 2012 Silver, Lead, Zinc Ug

Breapampa 2012 Gold, Silver Op

El Brocal (54.07%)

(Colquijirca/Marcapunta) 1956

Zinc, Lead, Silver,

CopperOp/Ug

La Zanja (53.06%) 2010 Gold, Silver Op

Coimolache (40.10%)

(Tantahuatay)*2011 Gold, Silver Op

Yanacocha (43.65%) 1993 Gold, Silver Op

Cerro Verde (19.58%) 1993Copper,

MolybdenumOp

DIR

EC

TO

PE

RA

TIO

NS

AFF

ILIA

TE

S

16

Antapite 2001 Gold, Silver Op

Poracota 2006 Gold, Silver Op

Shila-Paula 1989 Gold, Silver Op

Recuperada 1956 Silver, Lead, Zinc UgSM

ALL

AS

SE

TS

UN

DE

R

EV

ALU

AT

ION

* Operated by Buenaventura.

Gold, Silver, Copper and Zinc Equity Production

(*) Estimated

17

Reserves & Resources (NRM)

18

2012: 1,400 US$ / Oz Au

2013: 1,200 US$ / Oz Au

2012: 30 US$ / Oz Au

2013: 20 US$ / Oz Au

Cost Applicable to Sales

METAL CAS 4Q13 CAS 2014e*4Q13 REALIZED

PRICE

Gold US$ / Oz Au 776 650 - 680 1,271

Silver US$ / Oz Ag 11.28 12.00 – 12.50 20.62

Zinc US$ / TM Zn 1,088 900 – 1,000 1,885

Copper** US$ / Lb Cu 1.10 1.25 – 1.35 3.25

19

• Estimated

** Cash cost provided by Cerro Verde

5. DIRECT OPERATIONS

20

ORCOPAMPA

MAIN PROJECTS

• Exploring new areas in Orcopampa District:

encouraging results in Parihuanas & Pucay.

* Estimated

21

Main metals Gold, Silver

Deposit & Mine type Underground

Plant Capacity (MT per day) 1,540

CAS (4Q13) US$830/OzAu

22

Orcopampa: Chipmo operation

& Brownfields exploration areas

volcand

fmur

Tm

fmhu

volcand

Volcanicos andagua

volcandvolcand

volcand

Vsr

Vsr

Vsr

Vsr

Vsr

fmhu

fmhu

fmhu

Tm

Tm

Tm

Tm

Tm

Tch

Vand

Vdac

Tpi

Tpi

Tpi

Tpi

Vand

Vand

Vand

Vand

Vand

Vand

Vand

Vand

Vdac

Vdac

��

TINTAYMARCA

MISAHUANCA

ALLHUIRE

CHAPACOCO

V. Santiago E

70

°

80

°

65

°

75

°

81

°

80

°

77

°

85

°

80

°

48

°

77

°

66

°

65

°85

°

65

°

82

°

45

°

Tpi

E 775000 E 780000 E 785000 E 790000 E 795000

N 8

30

50

00

N 8

31

00

00

N 8

31

50

00

0

meters

2500

APACHETA

HUISCATORI

Aseruta4

MINE AREA

EXPLORATION AREAS

Mauras

ANQUICHA

Tm

70

°

ORCOPAMPA

5

2

3

Vsr

Vcol

Quaternary

Volcanicsvolcand

tchi

Dm-And

Dm-Dac

Tm

Tp

Rdac

fmar

fmur

fmhu

csar

LITHOLOGY

Vsr

Tertiary

Volcanics

Jurassic

Sedimentary

Formations

PAYCHILOMA

67

Mulañán

1

9

8

N°°°° PROSPECTWIDTH

m

Au

g/t

Ag

oz/t

Pucay (Melissa) 29.65 1.98 2.9

Includes 1.00 0.21 44.9

Includes 1.95 5.90 6.2

Includes 0.50 10.43 1.3

Includes 2.00 3.55 10.7

2 Aseruta 10.75 0.63 13.9

3 Aseruta 7.65 0.17 14.4

4 Aseruta 2.25 0.41 15.4

5 Aseruta 2.90 0.24 10.8

6 Mulañán 1.65 0.05 9.6

7 Mulañán 0.45 0.08 4.3

8 Pucay 0.91 10.09 1.8

9 Pucay 0.60 10.64 0.0

DIAMOND DRILLING INTERCEPTS

1

SURFACE SAMPLING

CHILCAYMARCA

Pucay

Chipmo

Melissa

Longitudinal section of

Nazareno vein

23

HoleWidth

(m)Au g/t Ag oz/t

1 0.16 27.70 -

2 0.50 30.74 -

3 0.75 54.86 -

4 0.75 174.45 0.14

5 0.14 15.47 -

6 0.20 26.50 -

7 0.75 26.64 0.71

8 0.30 13.61 -

9 0.75 12.69 -

10 0.28 24.89 -

11 0.75 16.39 7.24

12 1.55 20.00 10.75

13 9.75 0.60 0.92

Economic Ore > 12.92 g/t AuMarginal Ore 10.69 – 12.92 g/t Au

Submarginal Ore 9.48 – 10.69 g/t AuLow Grade Ore 1.51 – 9.48 g/t Au

NEChilcaymarca River

3,800

3,700

3,600

3,500

3,400

3,300

3,200

3,100

3,000

3,800

3,700

3,600

3,500

3,400

3,300

3,200

3,100

3,000

Nv. 3640

Nv. 3110

Nv. 3170

Nv. 3230

Nv. 3290

Nv. 3340

Nv. 3390

Nv. 3490

Nv. 3540

Nv. 3590

Nv. 3340

Nazare

no

sh

aft

9

10

2

1

7

8

3

6

5

11

4

TOTAL ORE RESERVES : 0.63 Mt @ 16.39 g/t Au (0.33 Moz Au), 43.20 g/t Ag (0.88 Moz Ag) TOTAL NRM : 0.23 Mt @ 15.98 g/t Au (0.12 Moz Au),96.34 g/t Ag (0.72 Moz Ag)

Pro

meti

da s

haft

12

Cut offs: 500 m

SW

UCHUCCHACUA

Main metals Silver, Zinc, Lead


Plant Capacity (MT per day) 2,900

CAS (4Q13) US$12.86/OzAg

MAIN GROWTH PROJECTS

•Exploring & Developing Brownfield areas:

Yumpag.

• Production capacity increase to 3,500 MT

per day.

* Estimated

24

Uchucchacua Mining District

geological cross section

25

NW SE

5,000

4,000

Height

(m.)

Lu

z s

haft

Ks-js

sm

Ks-jm

Ks-ji

Level 3990

Level 4120

IRMA

VIVIANA

ROSMERY

LUCIA

MARION

NORTE

RO

SA

2

CA

CH

IPA

MP

A SO

NIA

CLAUDIA

699Level 4060

Level 4180

Level 4240

Level 4300

Level 4360

Level 4400

Level 4450

Level 4500

Level 4550

Level 3920

Level 3850

Level 3780

SISTEMA

MARIANA

ROSALINDA

4,500

3,500

Maste

r sh

aft

Rp. 626

Rp. 760

Ks-js

Ks-jm

Ks-ji

Upper Jumasha FormationMarker bedMiddle Jumasha FormationLower Jumasha FormationIntrusives+ +

s-m

Ks-js

Ks-js Casapalca FormationCelendin Formation

Sulfide orebody

Oxide orebodyVeinsFaults

RUBI

EVA

MARIA

RITA

LUCRECIA AREA

SOCORRO AREA

CARMEN AREA

HUANTAJALLA AREA

TOTAL ORE RESERVES : 3.84 Mt @ 16.91 oz/t Ag, 1.04 % Pb, 1.40 % Zn, 9.49 % Mn

TOTAL NRM : 2.80 Mt @ 16.60 oz/t Ag, 1.45 % Pb, 1.79 % Zn, 9.50 % Mn NWNW SE

+++

+

++

+ +

+

1 Km

++

++

+

Uchucchacua Mining District

longitudinal section

26

Nv. 3920

5000

4200

3400

Pro

j. R

.C-1

Q. Carama

Yumpag Area

Ks-js

Ks-jm

Ks-jiKi-pKi-ch

Nv. 3920

SW NE

Ks-c

sm

Ki-ph

Exploration decline

Pu

nto

de

In

fle

xió

n

0.42-43.0-2.03-2.25-10.03

Socorro Area

2.60-28.1-0.80-0.79-33.051.02-22.8-1.69-2.85-2.83

3.04-16.2-2.00-1.50-8.052.31-21.9-0.37-0.42-13.18

SOCORRO DST Width Oz Ag %Pb %Zn %Mn

RESERVES 1´626,290 4.56 17.0 1.03 1.32 11.51

RESOURCES 697,265 2.53 19.1 1.15 1.42 10.85

KT-c

T-Va

T-di

Q-c

T-di

SOCORRO

Ancho Oz.Ag %Pb %Zn %Mn

Q-c

TOMASA DST Width Oz Ag %Pb %Zn %Mn

RESOURCES 228,588 6.71 10.2 0.11 0.31 33.78

POTENTIAL 75,255 7.38 14.7 0.03 0.21 39.48

TOMASA

Rp. Nv. 4490

Nv. 3710

Nv. 4450

LUZ

Pu

nto

de

In

fle

xió

n

Marker

Ks-js

Qc Cuaternario coluvial

Ks-c Fm. Celendin

Jumasha Superior

KT-c Fm. Casapalca

sm

Jumasha MedioKs-jm

Jumasha InferiorKs-ji

T-va Volcanicos

T-di Diorita (Roca Intrusiva)

Fm. PariatamboKi-p

Fm. ChulecKi-ch

Fm. PariahuancaKi-ph

Fm

. Jum

asha

++

++

++ +

++

+

++

++

++

+

++

++

+

?

??

?

+ +

+ +

+

++

++

+

+

+

+

+

+

??

1 Km

+ + Intrusivos

(4490)

EL BROCAL

* Estimated

27

COLQUIJIRCA

MARCAPUNTA

Ownership 54.07%

Main metals Copper


CAS (4Q13) US$ 2,842/MtCu

Main metals Zinc, Silver, Lead

Deposit & Mine type Open Pit

CAS (4Q13) US$ 757/MtZn

* Estimated

EL BROCAL

28


•El Brocal expansion from 6 ktpd to 18 ktpd has been completed and production will start in March.

•Total investment during 2013 was US$ 432 MM (US$ 180 MM debt, US$ 70 capital increase and US$ 182

internal cash generation).

•San Gregorio Project – Mineral Resources: 79.9 Mt @ 0.38 oz/TM, 1.5% Pb, 5.2% Zn

LA ZANJA

29


• Starting production from Pampa Verde pit

on 2Q14.

• Exploring higher grade underground areas

in Alejandra project for resource oxide (first

years) and sulphide ores.

Ownership53% BVN, 47%

Newmont




* Estimated

TANTAHUATAY

30


• Cienaga Norte & Tantahuatay II projects to

expand the life of mine.

Ownership40% BVN, 44%

SCCO, 16% ESPRO




* Estimated

BREAPAMPA

31


• Expand resources in Pucagallo & Senccata

areas.

* Estimated

Ownership 100% BVN




6. AFFILIATES

32

YANACOCHA

CONGA PROJECT

• Reserves: 12.6M Oz Au

• Water first: to start construction of El Perol

reservoir by the end of 2014

• CAPEX: USD 5.0 Billion

• Reviewing development cost reduction

oportunities for Conga.

33

Ownership43.65% BVN, 51%

Newmont, 5% IFC

Main metals Golden, Silver



* Estimated

CERRO VERDE


• Expansion of concentrator facilities from

120K to 360K MT per day.

• Expected copper annual production

after expansion: 600K MT (beginning in

2016).

• Total CAPEX: US$4.6 Billion.

•Construction started 2013.

• Will raise US$1.8 B Debt

34

Ownership19.58% BVN, 54% Freeport

McMoran, 21% Sumitomo

Main metals Copper, Molybdenum


7. COMPLETED PROJECTS

35

RIO SECO PROCESSING PLANT

Ownership 100% Buenaventura

CAPEX US$ 110 million

Objective

To allow mining from accessible areas

with high Ag and Mn grade.

To improve the quality of lead-silver

concentrates from Uchucchacua mine

by reducing manganese content.

Resultant manganese sulfate

concentrate with commercial value.

Status The plant is in ramp up stage.

36

HUANZA HYDROELECTRICAL PLANT


CAPEX US$ 225 million

ObjectiveTo assure energy supply for direct

operations.

Energy generation 90.6 MW

Status

Unit 2 started producing 46.3 MW.

Unit 1 will start comissioning in

March.

37

38

8. EXPLORATION PROSPECTS

39

Trapiche

ChucapacaColquemayo

Paco Paco

Greenfields

Brownfields

Advanced

La Zanja

Mallay

Uchucchacua

Orcopampa

Tambomayo

Colquijirca

Tantahuatay

Julcani

Exploration projects & prospects

Pro

sp

ec

tsP

roje

cts

Trapiche

Tambomayo

Chucapaca

Aseruta

Pucay

Parihuanas

Colquemayo

ChancasYumpag

Paco Paco

Mulañán

El Faique

El FaiqueOperations

Tambomayo Project

40

Ownership 100% Buenaventura.

Main metals Gold and silver.

Deposit & Mine TypeHigh grade veins for underground mining with

conventional metallurgy.

Status

Advanced exploration , mine development &

engineering studies.

Drilling of new structures / Environmental impact

study & construction / processing permits.

Mineral Resources

(NRM)

December 31st, 2013

1.59 Mt @ 13.6 g/t Au, 9.2 oz/t Ag, 2.1 % Pb and

3.0 % Zn (Average Width: 3.5 m).

RESOURCES Tonnes Width (m) g/t Au oz/t Ag % Pb % Zn

Measured + indicated 600,936 3.21 9.87 15.60 2.05 2.70

Inferred 987,907 3.62 15.83 5.26 2.16 3.19

Total Resources 1’588,843 3.46 13.59 9.17 2.12 3.00

POTENTIAL 892,442 2.85

DDH program 2014: 15,000 m

Exploration and development program 2014: 12,000 m

Projects

Shaft

Ore pass

Waste pass

Raise climber

Decline

62

54

525047

44

33

55

38

3224

26

36

132

40

63

28

15

21

35

Tambomayo project:longitudinal section of Mirtha vein system

Range of values (Ag equiv.)

3.06 - 16.82 oz/t

16.82 - 17.27 oz/t

17.27 - 19.80 oz/t

19.80 - 30.00 oz/t

> 30.00 oz/t

41

• DDH 2013: 19,390 m (59), accumulated total 48,034 m (174).

• Exploration and development 2013: 11,673 accumulated total 21,020 m.

Level 4890 (1,093m)Level 4890 (1,093m)

29

57

68

159

Level 4940

(253m)

Level 4940

(253m)

Level 4840

(1,228m)

Level 4840

(1,228m)Level 4790

(1,346m)

Level 4790

(1,346m) Level 4740

(769m)

Level 4740

(769m)

Level 4690 (88m)Level 4690 (88m)

Level 4640Level 4640



Graphic scaleGraphic scale

DDHWidth

(m)

Au

g/t

Ag

oz/t

DDH-15 4.66 2.37 10.83

DDH-21 1.71 3.43 7.69

DDH-24 0.99 0.29 10.64

DDH-26 3.62 4.11 6.80

DDH-28 1.60 14.99 5.57

DDH-32 3.88 31.13 9.49

DDH-33 2.76 9.15 9.10

DDH-35 1.90 0.60 29.58

DDH-36 0.75 0.09 13.71

DDH-38 1.12 8.61 9.97

DDH-40 2.00 2.24 12.94

DDH-44 4.15 11.76 3.36

DDH-47 3.23 14.00 14.34

DDH-50 1.19 29.63 4.40

DDH-52 7.04 28.98 3.36

DDH-54 9.52 20.29 2.10

DDH-55 1.12 11.65 36.75

DDH-57 3.99 26.10 8.36

DDH-62 4.30 14.75 5.06

DDH-63 2.80 1.10 10.90

DDH-111-II 5.17 28.37 0.32

DDH-111-III 2.72 69.12 0.56

DDH-132 0.65 6.37 0.08

DDH-159-I 3.00 11.54 0.51

111

with similar

grades…

Mine

development

Tambomayo Project:

4690 Mine Level

42

Sedimentation

ponds

Paola vein

Length 98.00m

Width 1.84 m

12.62 g/t Au

11.01 oz/t Ag

1.71 % Pb

3.51 % Zn

Paola Norte vein

Length 78.00m

Width 1.85 m

20.03 g/t Au

6.13 oz/t Ag

6.09 % Pb

5.31 % ZnPaola vein

Length 65.00m

Width 9.95 m

21.99 g/t Au

6.27 oz/t Ag

2.69 % Pb

4.27 % Zn

100

m Mirtha vein

Length 68.00m

Width 2.40 m

12.64 g/t Au

11.89 oz/t Ag

1.70 % Pb

2.30 % ZnQuartz

vein

Tambomayo Project

Mirtha cross section & Paola veins system

Drill intercepts

DDH-111DDH-47

4800 m

4600 m

4400 m

QcolMirtha vein

628.4 m

I

II

I

II

III

I

II

III

Height

4890 Mine level

4840 Mine level

4790 Mine level

4740 Mine level

4690 Mine level

DDH-132

596.5 m

DDH-62

NE SW

DDHs

True

width Au Ag Height

(m) (g/t) (oz/t) (m)

47-I 1.84 17.81 8.75 4,710

47-II 3.23 14.00 14.34 4,700

62-I 3.20 14.75 6.06 4,600

62-II 4.30 6.49 8.48 4,580

62-III 0.86 5.75 1.30 4,560

111-I 8.18 6.69 4.53 4.490

111-II 5.17 28.37 0.39 4,480

111-III 2.72 69.12 0.56 4,460

132-I 0.65 6.37 0.08 4,310

I

43

44

Trapiche Project(El Molle Verde S.A.C.)


Main metals Copper, molybdenum

Deposit & Mine Type Open pit, copper and moly sulfide flotation mill.

StatusAdvanced explorations: - Drilling of new targets.

- Scoping study completed.

Mineral Resources (NRM)

December 31st , 2013

726 Mt @ 0.40% Cu, 0.01% Mo & 3.2 g/t Ag

(Cut off: 0.15% Cu).

45

NRM : 726 Mt @ 0.40% Cu, 0.01% Mo

(Cut off: 0.15% Cu)

Diamond Drilling> 100 g/t Mo

Mining concession

Trapiche porphyry

Trapiche porphyry

Millocucho skarnsS

eguiñ

a

Millocucho skarns

Trapiche Project(El Molle Verde S.A.C.)

5 Km

Mollebamba community

Chucapaca Project(Canteras del Hallazgo S.A.)

46

Ownership 49% Buenaventura & 51% Gold Fields

Main metals Gold

Deposit & Mine Type Underground. Gravity, Flotation and CIL

StatusImproved business case on scoping study

level for underground mining @ 3,000 tpd

Mineral Resources (NRM)9.1 Mt @ 5.6 g/t Au = 1.5 million Au ounces

(as of February 2014)*

* @ US $1,300 per oz Au

Longitudinal section, block model and resource cone for Canahuire ore body

47NRM : 9.1 Mt @ 5.6 g/t Au (1.5 M ounces gold) Underground project

9. STRATEGY

48

Creating Value Through…

49

EXPLORATIONS

Focused on precious metals

Solid exploration portfolio

Exploring inside Peru & LatinAmerica

Share risk through jointventure

OPERATIONS

Improving mining operations

Improving metallurgical process

Incorporating chemicalprocess

Assuring power supply

M & A

Mainly gold and precious metals

Junior companies

Located in Peru & LatinAmerica

Controlling interests

SAFETY IN EVERYTHING WE DO

Taking care of

environmental

issues

Improving

community

relations

Good corporate

governanceSUSTAINABILITY

50

Shareholders Strategy

• BVN has not issued new equity for 18 years.

Dividend policy:

Buenaventura will distribute an annual cash

dividend of at least 20% of net income

generated by majority-owned operations and

subsidiaries. In the case of Buenaventura’s

Associates (Coimolache, Cerro Verde and

Yanacocha), 20% of attributable to

Buenaventura’s net income will be included if

they distribute cash dividends to

Buenaventura.

APPENDIX

51

Major mining properties

& projects in Cajamarca

52

Shareholders Structure

NAME INTEREST

Institutional Investors & Index Funds 56%

Benavides Family 27%

Peruvian Pension Funds (AFP’s) 8%

Others 9%

OUTSTANDING

SHARES

254,186,867

53

www.buenaventura.com

Investor Relations : Daniel Domínguez

Telephone: (511) 419-2536

E-mail: [email protected]

54

Presentacion PPT(Ingles 4Q)

Documents

Transcript of Presentacion PPT(Ingles 4Q)