Buenaventura Announces Fourth Quarter and Full Year 2017 Results
Compañia 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 results for the fourth quarter (4Q17) and full year (FY17) period ended December 31, 2017. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non-GAAP basis and are stated in U.S. dollars (US$).
Fourth Quarter and Full Year 2017 Highlights:
- 4Q17 EBITDA from direct operations was US$ 116.6 million; a 44% increase compared to US$ 80.8 million reported in 4Q16. 4Q17 Adjusted EBITDA (including associated companies) reached US$ 245.4 million; a 38% increase compared to US$ 177.2 million in 4Q16.
- FY2017 Net Income was US$ 60.8 million, compared to negative US$ 323.5 in 2016.
- Buenaventura´s Net debt/EBITDA ratio was reduced to 1.4x.
- The Company’s de-bottlenecking program is in progress, with results expected to be gradually reflected from 2018 – 2020.
- Yanacocha purchased the International Finance Corporation´s five percent equity stake in Yanacocha for $48 million in December 2017. In 2018, Yanacocha agreed to make a capital reduction, Buenaventura´s stake in Yanacocha therefore increased to 45.95%, from 43.65%.
- In June 2017, Cerro Verde extended the maturity of its Syndicated Loan to 2022 and in December 2017, Cerro Verde repaid US$ 220 million. The outstanding balance is therefore US $1.3 billion as of December 31, 2017.
- In line with Buenaventura´s dividend policy, a dividend payment of US$0.03 per share/ADS will be declared.
| Financial Highlights (in millions of US$, except EPS figures): | ||||||||||||||||||
| 4Q17 | 4Q16 | Var% | FY17 | FY16 | Var% | |||||||||||||
| Total Revenues | 370.6 | 287.1 | 29% | 1,274.4 | 1,068.8 | 19% | ||||||||||||
| Operating Profit* | 5.3 | 24.8 | -79% | 105.5 | 132.2 | -20% | ||||||||||||
| EBITDA Direct Operations | 116.6 | 80.8 | 44% | 372.2 | 333.9 | 11% | ||||||||||||
| Adjusted EBITDA (Inc Associates) | 245.4 | 177.2 | 38% | 714.4 | 645.8 | 11% | ||||||||||||
| Net Income | 8.3 | -405.9 | N.A. | 60.8 | -323.5 | N.A. | ||||||||||||
| EPS** | 0.03 | -1.60 | N.A. | 0.24 | -1.27 | N.A. | ||||||||||||
| (*) Considers an impairment of Long-Lived Assets of US$21.6 million (La Zanja) and adjustment of component of stripping cost of 13.6 million (EL Brocal). |
| (**) as of December 31, 2017 Buenaventura had a weighted average number of shares outstanding of 253,715,190. |
For a full version of Compañía de Minas Buenaventura Fourth Quarter and Full Year 2017 Earnings Release, please visit: http://www.buenaventura.com/en/inversionistas
CONFERENCE CALL INFORMATION:
Compañia de Minas Buenaventura will host a conference call on Wednesday, February 28, 2018, to discuss these results at 11:00 a.m. Eastern Time / Lima Time.
To access the call, please dial:
+1 (877) 407-8033 (From within the U.S.)
+1 (201) 689-8033 (From outside the U.S.)
There will also be a live Audio Webcast of the event at:
http://www.investorcalendar.com/event/24617
About Compañía de Minas Buenaventura S.A.A.
Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded, precious metals company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold and silver and other metals via wholly owned mines as well as through its participation in joint exploration projects.
Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, El Brocal, La Zanja and Coimolache and is developing the Tambomayo project.
The Company owns 45.95% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corp.), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.
For a printed version of the Company’s 2016 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.
(*) 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. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180227006800/en/
Contact
In Lima:
Leandro Garcia, (511) 419 2540
Chief Financial Officer
or
Rodrigo Echecopar, (511) 419 2591
Investor Relations Coordinator
rodrigo.echecopar@buenaventura.pe
or
In NY:
Barbara Cano, (646) 452 2334
barbara@inspirgroup.com
or
Company Website: www.buenaventura.com/en/inversionistas
