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Buenaventura Announces Third Quarter 2018 Production and Volume Sold per Metal Results

LIMA, Peru--(BUSINESS WIRE)--

Compañía 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, today announced preliminary 3Q18 production and volume sold results as well as full year 2018 operating guidance (100% basis).

3Q18 Production per Metal and 2018 Operating Guidance (100% basis)
                               

1Q18
(Actual)

   

2Q18
(Actual)

   

3Q18
(Actual)

   

9M18
(Actual)

   

2018
(Estimated)

               
Gold (Oz.)                                
Orcopampa 39,987 35,694 26,835 102,516 120k - 140k
Tambomayo 33,693 31,173 33,279 98,145 125k - 135k
La Zanja 17,722 15,660 18,147 51,529 70k - 80k
Tantahuatay 29,915 39,557 54,011 123,484 160k - 180k
Yanacocha 104,233 115,342 153,523 373,098 470k - 545k
El Brocal       7,029     5,924     4,364     17,317     20k - 25k
 
Silver (Oz.)                                
Uchucchacua 4,413,249 4,005,948 3,744,036 12,163,232 15.0M - 17.0M
Julcani 504,155 620,276 692,728 1,817,159 2.3M - 2.5M
Mallay 155,000 134,936 126,476 416,411 0.4M - 0.5M
Tambomayo 1,019,915 1,106,694 929,949 3,056,558 3.5M - 4.5M
El Brocal       739,454     967,763     1,260,010     2,967,226     4.6M - 5.0M
 
Lead (MT)                                
Julcani 283 231 270 784 1.0k - 2.0k
Uchucchacua 4,184 4,762 5,214 14,161 18.0k - 20.0k
Mallay 504 447 416 1,367 0.5k - 2.5k
Tambomayo 856 814 1,027 2,697 3.0k - 4.5k
El Brocal       3,737     4,700     6,784     15,222     20.0k - 30.0k
 
Zinc (MT)                                
El Brocal 13,797 12,353 9,741 35,892 45k - 55k
Uchucchacua 4,575 4,842 6,556 15,974 20.0k - 22.0k
Mallay 952 1,187 905 3,044 3.0k - 3.6k
Tambomayo       2,562     1,998     2,046     6,606     7.5k - 8.5k
 
Copper (MT)                                
El Brocal       10,482     11,173     12,483     34,139     45K - 55K
 

Production Comments

Gold Operations

  • Orcopampa:

    Production is in line with guidance released in 2Q18. The plan is based on the Company’s strategy to prioritize its De-bottlenecking Program over ore mineral extraction, in order to centralize the underground operation.
  • Tambomayo:

    2018 gold, silver and zinc production guidance has been increased due to the fact that Tambomayo is now operating at full capacity and it is processing more ore at a level that is exceeding initial estimates.
  • La Zanja:

    2018 guidance remains unchanged despite a change in mining contractor during 2Q18.
  • Tantahuatay:

    2018 guidance remains unchanged.

Silver Operations

  • Uchucchacua:

    Guidance for silver production has been reduced while zinc production guidance has been increased. The plan is to extract more mineral from the Cachipampa area which has higher zinc and lower silver grades than the rest of the mine but is lower cost due to its proximity to underground facilities.
  • Julcani:

    2018 guidance has been increased. The Company’s strategy to centralize this operation is achieving results that are exceeding initial estimates.
  • Mallay:

    2018 guidance has been maintained. Centralizing and halting the deepening of the mine has achieved positive results.

Base Metals Operations

  • El Brocal:

    Copper guidance has been maintained for the underground mine.

    Lead guidance has been reduced due to the mining sequence in the open pit. Lead grades are expected to increase in 1Q19.

Volume Sold

3Q18 Volume sold per Metal (100% basis)
                         

1Q18
(Actual)

   

2Q18
(Actual)

   

3Q18
(Actual)

   

9M18
(Actual)

           
Gold (Oz.)                          
Orcopampa 40,015 35,155 28,144 103,314
Tambomayo 30,698 30,721 32,101 93,520
La Zanja 18,222 17,495 18,419 54,136
Tantahuatay 27,957 38,599 53,859 120,415
El Brocal       5,102     4,029     2,685     11,815
 
Silver (Oz.)                          
Uchucchacua 3,853,518 4,125,034 3,515,670 11,494,222
Julcani 352,236 741,469 639,454 1,733,159
Mallay 136,838 123,609 101,118 361,565
Tambomayo 837,123 1,143,540 926,741 2,907,404
El Brocal       536,585     774,576     974,775     2,285,936
 
Lead (MT)                          
Julcani 169 275 235 678
Uchucchacua 3,434 4,387 4,697 12,518
Mallay 440 434 371 1,245
Tambomayo 528 1,025 1,006 2,560
El Brocal       3,339     4,490     5,636     13,465
 
Zinc (MT)                          
El Brocal 11,354 10,383 7,712 29,450
Uchucchacua 3,802 3,783 4,898 12,483
Mallay 733 986 720 2,438
Tambomayo       1,672     1,871     1,830     5,374
 
Copper (MT)                          
El Brocal       9,854     10,517     11,816     32,187
 

Company Description
Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, Tambomayo*, El Brocal, La Zanja and Coimolache).

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

For a printed version of the Company’s 2017 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company’s web site.

(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements
This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to the Company’s, Yanacocha’s and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.

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