Cia. de Minas Buenaventura
• Since 1953 in mining.
• Mining of gold and silver in Peru.
- Six majority-owned operating mines.
- Aggressive and proven exploration program.
- 43,6% stake in Yanacocha, Latin America’s largest gold
mine.
• Best geological information in Peru.
• Joint ventures with Newmont, Teck-Cominco, SPCC, BHP
Billiton & Meridian Gold.
• Growing reserves, production and earnings.
• Quoted on the Lima Stock Exchange (BUE.LM) since 1971
and NYSE: BVN since 1996.
Strategy
• Focus on precious metals mining in Peru.
• Remain strong operating company.
• Upgrade operations.
• Generate reserves throug effective exploration.
• Pursue acquisitions preferably in Southamerica.
• Share risks through joint ventures.
• Long-term hedging policies.
• Permanent contact with our investors.
Cost / Benefit of Allocation
(US$ millions)
BEFORE OFFERING MAY 1996:
Capital
Investment shares
Additional capital
Total Equity
AFTER OFFERING MAY 1996:
Capital
Investment shares
Additional Capital
Total Equity
42.8
6.9
5.0
54.7
50.7
7.9
163.6
222.2
BENEFIT (OFFERING 1996):
US$ 167.5
TOTAL NET EQUITY (09/30/02):
US$ 518.5
Ownership structure
Treasury Stock,
7.7%
International
Institutional
Investors, 47.1%
Private Investors,
34.0%
Peruvian AFPs,
10.8%
Outcomes
• Enhanced shareholder value.
• Increased our gold & silver production. Solid reserve base.
• Increased benefits for stakeholders.
• Improved our economic results. Raised the
competitiveness and performance of the company.
• Improved and strengthened image and corporate reputation
and good practices of corporate governance..
Improving Shareholders’ Value
US$/oz
350
2.000
330
1.800
310
1.600
290
1.400
270
250
1.200
230
1.000
210
800
190
600
400
Aug-98
170
Feb-99
Aug-99
Feb-00
Aug-00
Market Cap.
Feb-01
Aug-01
Gold Price
Feb-02
150
Aug-02
Corporate governance in
Latin America - 2001
Rank
1
2
3
4
5
6
7
8
9
10
Company
Aracruz
Itaú
Ultrapar
CVRD
Embraer
Bancomer
Unibanco
Antofagasta
Grupo Pao de Acucar
Buenaventura
Source: CLSA, 2002
Country Wtd CG
Brasil
89,3
Brasil
84,1
Brasil
82,8
Brasil
77,7
Brasil
75,3
Mexico
74,2
Brasil
73,4
Chile
72,2
Brasil
71,7
Peru
71,5
Following principles of
corporate governance
1. Rights of shareholders of Buenaventura.
• Rights of shareholders are sufficiently defined and
protected.
• Including the right of shareholders to participate in, and to
be sufficiently informed on, decisions concerning
fundamental corporate changes.
• Shareholders participate and vote in Annual and
Extraordinary General Meetings.
Following principles of
corporate governance
2. Equitable treatment of shareholders of Buenaventura.
• There is a equitable treatment of shareholders, including
minority and foreign shareholders.
• Members of the board and managers can be required to
disclosure any manterial interests.
• Change capital structure: one type of share.
Following principles of
corporate governance
3. Role of stakeholders
• Recognise the rights of stakeholders as established by
law.
• Implementing mechanisms to increase stakeholder
participation.
Following principles of
corporate governance
4. Disclosure and transparency
• In order to ensure that timely and accurate disclosure is
made on all material matters regarding the corporation.
• Disclosure include material information on financial and
operating results, company objectives, etc.
• Information is prepared, audited and disclosed in
accordance with high quality standards of accounting.
• Annual audit is performed by an independent auditor.
• Channels for disseminating information are provide for
fair and cost-efficient access to information by users.
Following principles of
corporate governance
5. Responsibilities of the board
• They act on a fully informed basis and in the best interest
for the company and the shareholders.
• The board is able to exercise objective judgement on
corporate affairs. There is not conflict of interest.
• Board members have access to accurate, relevant and
timely information.
• Functions: reviewing guiding corporate strategy, major
plans of action; propose and appoint directors, etc.
• Ensuring the integrity of the company’s accounting and
financial reporting systems.
Our principles
• Be careful with the environment.
• Respect to communities.
• Apply sound corporate governance.
50 years in mining
Compañía de Minas
BVN
LISTED
NYSE
www.buenaventura.com
Contact Person: Denise Garrido
Telephone: (511) 419-2538
e-mail: dhuguet@buenaventura.com.pe