Buenaventura Announces Sumitomo Purchase of Five Percent Stake in Yanacocha
June 20 2018 - 5:32PM
Business Wire
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 the purchase by Sumitomo Corporation (“Sumitomo”) of a
five percent stake in Minera Yanacocha S.R.L. (“Yanacocha”). Under
this transaction between Buenaventura, Newmont and Sumitomo,
Sumitomo takes the place of the International Finance Corporation
(“IFC”) as a five percent minority shareholder in Yanacocha in
exchange for approximately US$48 million.
“We are pleased to welcome Sumitomo as our new partner in
Yanacocha and look forward to leveraging Sumitomo’s extensive
mining expertise and commitment to high performance mining
standards as we develop Yanacocha’s upcoming projects,” said Victor
Gobitz, Chief Executive Officer of Buenaventura. He continued,
“Newmont and Sumitomo share not only our commitment to safe,
profitable and responsible production extension through the Quecher
Main and Yanacocha Sulfides project, but also the sustainable
economic development of local communities.”
As a result of this transaction, Buenaventura’s total ownership
in Yanacocha will return to 43.65% and Newmont’s ownership will
return to 51.35%, and Newmont will continue to operate Yanacocha.
The transaction is structured as a new share issuance to Sumitomo,
with the payment contributing to Yanacocha’s cash balances.
The Quecher Main project was approved in October 2017 and is
expected to extend Yanacocha’s oxide mine life to 2027. Quecher
Main will also serve as a bridge to future growth options,
including the development of Yanacocha’s extensive sulfide
deposits. If approved, the sulfides project could extend
Yanacocha’s operational mine life through 2039.
Buenaventura also partners with Sumitomo at the Cerro Verde mine
in Peru.
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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version on businesswire.com: https://www.businesswire.com/news/home/20180620006349/en/
For Compañia de Minas Buenaventura S.A.A.In Lima:Leandro Garcia,
(511) 419 2540Chief Financial OfficerorRodrigo Echecopar, (511) 419
2591Investor Relations
Coordinatorrodrigo.echecopar@buenaventura.peorIn NY:Barbara Cano,
(646) 452 2334barbara@inspirgroup.comorCompany Website:
www.buenaventura.com
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