Yanacocha boosts earnings

In 1999, Compania de Minas Buenaventura (BVN-N) earned US$45 million (or 72 per American Depository Receipt), compared with US$30 million (48 per ADR) in the previous year.

The profit was largely a reflection of the company’s non-consolidated affiliate assets, consisting primarily of a 43.65% interest in the Yanacocha gold mine, in Peru, operated by Newmont Mining (NEM-N).

Buenaventura’s income for its non-consolidated affiliates was US$60.6 million in 1999, up from US$50.7 million in 1998.

Yanacocha’s production grew 43% in 1999, to 529,768 oz. by the end of the fourth quarter. Of this, Buenaventura’s share was 231,244 oz. Total cash production costs rose slightly during the year, to US$105 per oz.

From its wholly owned operations, Buenaventura produced 11.4 million oz. silver, a slight increase over the previous year. Gold production climbed 40% to 54,550 oz.; zinc production reached 37,158 tonnes; and lead production was 16,493 tonnes (largely from the Colquijirca mine, south of Cerro de Pasco).

The higher silver production was the result of higher throughput at the Uchucchacua mine in central Peru.

Meanwhile, at the 70%-held Antapite gold project, southeast of Lima, the company has outlined high-grade mineralization in several oreshoots. Values exceed 120 oz. gold per tonne, though minable reserves stand at 113,680 oz. within 166,000 tonnes averaging 21.3 grams per tonne.

Buenaventura plans to carry out 5,000 metres of underground drilling and 6,000 metres of surface drilling at Antapite in 2000. The company will also seek permits for the projected 300-tonne-per-day operation. Startup is envisioned for the first quarter of 2001, and capital costs are pegged at US$16 million.