6-K 1 v122969_6k.htm
FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of August 2008
 
BUENAVENTURA MINING COMPANY INC.

(Translation of Registrant's Name into English)
 
CARLOS VILLARAN 790

SANTA CATALINA, LIMA 13, PERU

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________________.
 

 

Translation of a report and interim unaudited consolidated financial statements
originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
 
Interim unaudited consolidated financial information as of June 30, 2008 and 2007 and for the three-month and six-month periods then ended
 

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Report of Independent Auditors
 
To the Shareholders of Compañía de Minas Buenaventura S.A.A.

1. We have reviewed the accompanying consolidated balance sheet of Compañía de Minas Buenaventura S.A.A. (a Peruvian company) and subsidiaries as of June 30, 2008, the related consolidated statements of income and cash flows for the three-month and six-month periods ended June 30, 2008 and 2007 as well as the consolidated statements of changes in shareholders’ equity for the six-month periods then ended. The preparation of these consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to issue a report on these consolidated financial statements based on our review.

2. The financial statements of Minera Yanacocha S.R.L. as of June 30, 2008 and 2007 and for the three-month and six-month periods then ended have been reviewed by other auditors, whose reports have been furnished to us. In the consolidated financial statements of the Company, the Company’s investment in Minera Yanacocha S.R.L. amounts to US$658.84 million as of June 30, 2008 (US$577.5 million as of December 31, 2007); in addition the share in the net income of this entity amounts to US$125.0 million for the six-month period then ended (US$34.4 million for the six-month period ended June 30, 2007).

3. We conducted our review in accordance with applicable auditing standards in Peru for interim reviews. Those standards require that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquire of company personnel and analytical procedures applied to consolidated financial data and thus provide less assurance than an audit. We have not performed an audit and, accordingly, we do not express such an opinion on the accompanying consolidated financial statements.

4. Based on our review and on the limited reports of the independent auditors of Minera Yanacocha S.R.L. we are not aware of any material modification that should be made to the accompanying consolidated financial statements referred above to be in conformity with generally accepted accounting principles in Peru.


 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Report of Independent Auditors (continued)
 
5. We have previously audited, in accordance with generally accepted auditing standards in Peru, the accompanying consolidated balance sheet of Compañía de Minas Buenaventura S.A.A. and subsidiaries as of December 31, 2007, and the related consolidated statements of income, changes in shareholders’ equity and cash flows for the year then ended. Our report dated February 28, 2008 expressed an unqualified opinion on those consolidated financial statements.

Lima, Perú,
July 23, 2008

Countersigned by:

 
Marco Antonio Zaldívar



Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
 
Consolidated Balance Sheets
As of June 30, 2008 (unaudited) and December 31, 2007 (audited)

   
Note
 
2008
 
2007
 
       
US$(000)
 
US$(000)
 
               
Assets
             
               
Current assets
             
               
Cash and cash equivalents
   
4
   
462,413
   
381,612
 
                     
Current portion of derivate financial instruments
   
13
   
10,062
   
2,929
 
                     
Trade accounts receivable, net
         
95,936
   
107,540
 
                     
Other accounts receivable, net
         
10,615
   
7,760
 
                     
Accounts receivable from affiliates
   
12(a
)
 
15,175
   
14,420
 
                     
Inventory, net
         
49,152
   
35,149
 
                     
Current portion of prepaid taxes and expenses
         
35,802
   
16,032
 
Total current assets
         
679,155
   
565,442
 
                     
                     
                     
Other long-term accounts receivable
         
1,464
   
1,451
 
                     
Prepaid taxes and expenses
         
5,506
   
5,338
 
                     
Derivative financial instruments
   
13
   
13,322
   
5,035
 
                     
Investment in shares
   
5
   
1,056,093
   
932,420
 
                     
Mining concessions and property, plant and equipment, net
         
249,669
   
244,992
 
                     
Development costs, net
         
89,780
   
84,187
 
                     
Deferred income tax and workers´ profit sharing asset, net
   
9
   
252,977
   
141,118
 
                     
Other assets
         
1,643
   
1,486
 
                     
Total assets
         
2,349,609
   
1,981,469
 
                     
Liabilities and shareholders’ equity, net
                   
                     
Current liabilities
                   
                     
Trade accounts payable
         
31,514
   
24,662
 
Income tax payable
         
4,741
   
15,349
 
Other current liabilities
         
83,641
   
96,823
 
Embedded derivatives for concentrates sales
   
13
   
3,259
   
5,984
 
Current portion of long-term debt
   
6
   
129,513
   
20,869
 
Total current liabilities
         
252,668
   
163,687
 
                     
Other long-term liabilities
         
67,539
   
72,308
 
Long-term debt
   
6
   
403,540
   
63,250
 
Deferred income from sale of future production
         
-
   
102,008
 
Total liabilities
         
723,747
   
401,253
 
                     
Shareholders’ equity, net
   
7
             
Capital stock, net of treasury shares of US$62,622,000 in the year 2008 and US$14,462,000 in the year 2007
         
750,540
   
173,930
 
Investment shares, net of treasury shares of US$142,000 in the year 2008 and US$37,000 in the year 2007
         
2,019
   
473
 
Additional paid-in capital
         
225,978
   
177,713
 
Legal reserve
         
37,679
   
37,679
 
Other reserves
         
269
   
269
 
Retained earnings
         
461,285
   
1,056,937
 
Cumulative translation loss
         
(34,075
)
 
(34,075
)
Cumulative unrealized gain on derivative financial instruments, net
         
4,885
   
1,518
 
Cumulative unrealized gain on investments in shares held at fair value
         
138
   
158
 
           
1,448,718
   
1,414,602
 
Minority interest
         
177,144
   
165,614
 
Total shareholders’ equity, net
         
1,625,862
   
1,580,216
 
                     
Total liabilities and shareholders’ equity, net
         
2,349,609
   
1,981,469
 

The accompanying notes are an integral part of the consolidated balance sheet.
 


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statements of Income (unaudited)
For the three and six-month periods ended June 30, 2008 and 2007

   
 
Note
 
For the three-month
periods ended June 30
 
For the six-month
periods ended June 30
 
       
2008
 
2007
 
2008
 
2007
 
       
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
Operating income
                     
Net sales
   
10
   
204,271
   
181,441
   
416,271
   
332,259
 
Royalty income
   
12(b)
 
 
12,084
   
6,346
   
26,342
   
14,727
 
Realization of deferred income from sale of future production
         
-
   
-
   
-
   
5,393
 
Total income
         
216,355
   
187,787
   
442,613
   
352,379
 
Operating costs
                               
Cost of sales, excluding depreciation and amortization
         
58,445
   
39,347
   
107,554
   
82,056
 
Exploration in units in operation
         
12,705
   
8,336
   
23,783
   
16,745
 
Depreciation and amortization
         
13,291
   
11,936
   
26,206
   
23,102
 
Total operating costs
         
84,441
   
59,619
   
157,543
   
121,903
 
Gross income
         
131,914
   
128,168
   
285,070
   
230,476
 
Operating expenses
                               
Administrative
   
11
   
9,695
   
13,342
   
37,241
   
21,555
 
Exploration in non-operating areas
         
15,749
   
11,424
   
27,150
   
20,382
 
Royalties
         
9,195
   
7,579
   
16,116
   
13,169
 
Sales
         
4,603
   
1,867
   
9,144
   
3,264
 
Total operating expenses
         
39,242
   
34,212
   
89,651
   
58,370
 
Operating income before unusual item
         
92,672
   
93,956
   
195,419
   
172,106
 
Net loss on release of fixed-price component in sales contracts
   
10
   
-
   
(100,467
)
 
(415,135
)
 
(185,922
)
Operating income (loss) after unusual item
         
92,672
   
(6,511
)
 
(219,716
)
 
(13,816
)
Other income (expenses), net
                               
Share in affiliated companies, net
   
5(b)
 
 
98,562
   
52,438
   
244,284
   
107,482
 
Interest income
         
6,165
   
2,449
   
8,364
   
5,139
 
Gain on change in the fair value of gold certificates
         
-
   
-
   
-
   
5,126
 
Interest expense
         
(9,697
)
 
(2,246
)
 
(16,220
)
 
(3,795
)
Gain (loss) on currency exchange difference
         
(11,886
)
 
230
   
(2,908
)
 
(57
)
Other, net
         
(135
)
 
(2,561
)
 
476
   
(3,464
)
Total other income (loss), net
         
83,009
   
50,310
   
233,996
   
110,431
 
Income before workers´ profit sharing, income tax and minority interest
         
175,681
   
43,799
   
14,280
   
96,615
 
Provision for workers´ profit sharing, net
   
9
 
 
(7,322
)
 
1,436
   
18,048
   
2,010
 
Provision for income tax, net
   
9
   
(37,086
)
 
2,892
   
63,661
   
2,337
 
           
131,273
   
48,127
   
95,989
   
100,962
 
Net income attributable to minority interest
         
9,547
   
29,977
   
37,231
   
46,150
 
Net income attributable to Buenaventura
         
121,726
   
18,150
   
58,758
   
54,812
 
Net income per basic and diluted share, stated in U.S. dollars
   
8
   
0.48
   
0.07
   
0.23
   
0.22
 
Weighted average number of shares outstanding, after stock split effect (in units)
   
8
   
254,442,328
   
254,442,328
   
254,442,328
   
254,442,328
 

The accompanying notes are an integral part of the consolidated balance sheet.

Las notas adjuntas son parte integrante de este estado.
 


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
 
Consolidated Statements of Changes in Shareholders’ Equity (unaudited)
For the six-month period ended June 30, 2008 and 2007
 
   
Capital stock, net of treasury shares
                                             
   
Number of
shares
outstanding
 
Common
shares
 
Investment
shares
 
Additional
paid-in
capital
 
Legal
reserve
 
Other
reserves
 
Retained
earnings
 
Cumulative
translation
loss
 
Cumulative
unrealized
gain on
derivative
financial
instruments,
net
 
Cumulative
unrealized
gain on
investments
in shares held
at fair value
 
Total
 
Minority
interest
 
Total
shareholders’ equity
 
       
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
                                                       
Balance as of January 1, 2007
   
126,879,832
   
173,930
   
473
   
177,713
   
37,679
   
269
   
852,148
   
(34,075
)
 
-
   
932
   
1,209,069
   
91,437
   
1,300,506
 
Dividends declared and paid, notes 7(a) and 7(b)
   
-
   
-
   
-
   
-
   
-
   
-
   
(47,071
)
 
-
   
-
   
-
   
(47,071
)
 
(15,157
)
 
(62,228
)
Unrealized gain on available-for-sale financial assets
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
798
   
798
   
-
   
798
 
Realization of accumulated gain on financial instruments available for sale
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
(1,633
)
 
(1,633
)
 
-
   
(1,633
)
Unrealized gain on investment shares held at fair value
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
10
   
10
   
-
   
10
 
Net income
   
-
   
-
   
-
   
-
   
-
   
-
   
54,812
   
-
   
-
   
-
   
54,812
   
46,150
   
100,962
 
Balance as of June 30, 2007
   
126,879,832
   
173,930
   
473
   
177,713
   
37,679
   
269
   
859,889
   
(34,075
)
 
-
   
107
   
1,215,985
   
122,430
   
1,338,415
 
                                                                                 
Balance as of January 1, 2008
   
126,879,832
   
173,930
   
473
   
177,713
   
37,679
   
269
   
1,056,937
   
(34,075
)
 
1,518
   
158
   
1,414,602
   
165,614
   
1,580,216
 
Dividends declared and paid, notes 7(a) and 7(b)
   
-
   
-
   
-
   
-
   
-
   
-
   
(27,989
)
 
-
   
-
   
-
   
(27,989
)
 
(26,377
)
 
(54,366
)
Capitalization of retained earnings, note 7(c)
   
-
   
576,610
   
1,546
   
48,265
   
-
   
-
   
(626,421
)
 
-
   
-
   
-
   
-
   
-
   
-
 
Unrealized loss on derivate financial instruments held by El Brocal
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
3,367
   
-
   
3,367
   
6,563
   
9,930
 
Unrealized loss on investment shares held at fair value
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
(20
)
 
(20
)
 
-
   
(20
)
Decrease of minority interest in El Brocal
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
(5,887
)
 
(5,887
)
Net income
   
-
   
-
   
-
   
-
   
-
   
-
   
58,758
   
-
   
-
   
-
   
58,758
   
37,231
   
95,989
 
Balance as of June 30, 2008
   
126,879,832
   
750,540
   
2,019
   
225,978
   
37,679
   
269
   
461,285
   
(34,075
)
 
4,885
   
138
   
1,448,718
   
177,144
   
1,625,862
 
 
The accompanying notes are an integral part of the consolidated balance sheet.

 


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
 
Consolidated Statements of Cash Flows (unaudited)
For the three and six-month periods ended June 30, 2008 and 2007
 
   
For the three-month
periods ended June 30
 
For the six-month
periods ended June 30
 
   
2008
 
2007
 
2008
 
2007
 
   
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
Operating activities
                 
Proceeds from sales
   
241,716
   
168,212
   
419,778
   
346,240
 
Dividends received
   
113,945
   
21,825
   
113,945
   
21,825
 
Royalties received
   
14,019
   
8,813
   
25,617
   
17,849
 
Interest received
   
5,141
   
2,799
   
8,455
   
5,669
 
Settlement of gold certificates
   
-
   
-
   
-
   
135,189
 
Value Added Tax recovered
   
-
   
4,277
   
-
   
6,945
 
Acquisition of gold certificates
   
-
   
-
   
-
   
(66,853
)
Release of fixed-price component in sales contracts
   
-
   
(170,739
)
 
(517,143
)
 
(315,726
)
Payments to suppliers and third parties
   
(92,989
)
 
(49,776
)
 
(150,767
)
 
(99,712
)
Payments to employees
   
(24,045
)
 
(17,849
)
 
(66,319
)
 
(43,574
)
Income tax paid
   
(6,971
)
 
(17,206
)
 
(30,804
)
 
(55,633
)
Payments for exploration activities
   
(25,522
)
 
(21,587
)
 
(44,375
)
 
(36,714
)
Payments of royalties
   
(9,488
)
 
(8,581
)
 
(19,717
)
 
(15,791
)
Payments of interest
   
(8,772
)
 
(1,263
)
 
(11,988
)
 
(1,864
)
Net cash and cash equivalents provided by (used in) operating activities
   
207,034
   
(81,075
)
 
(273,318
)
 
(102,150
)
Investment activities
                         
Increase (decrease) in time deposits
   
73,104
   
(40,743
)
 
26,764
   
(45,632
)
Settlement of available-for-sale financial assets
   
-
   
55,714
   
-
   
55,714
 
Additions to mining concessions, property, plant and equipment
   
(15,984
)
 
(30,417
)
 
(25,833
)
 
(40,096
)
Disbursements for development activities
   
(7,710
)
 
(8,231
)
 
(12,850
)
 
(16,066
)
Other investment activities
   
917
   
184
   
565
   
511
 
Net cash and cash equivalents provided by (used in) investment activities
   
50,327
   
(23,493
)
 
(11,354
)
 
(45,569
)
Financing activities
                         
Proceeds from long-term debt
   
450,000
   
75,000
   
450,000
   
75,000
 
Proceeds from bank loans
   
-
   
45,000
   
510,000
   
45,000
 
Payments of bank loans
   
(450,000
)
 
-
   
(510,000
)
 
-
 
Dividends paid
   
(30,320
)
 
(47,071
)
 
(30,320
)
 
(47,071
)
Dividends paid to minority shareholders of subsidiary
   
(26,377
)
 
(12,557
)
 
(26,377
)
 
(15,157
)
Payments of long-term debt
   
(534
)
 
(161
)
 
(1,066
)
 
(316
)
Net cash and cash equivalents provided by (used in) financing activities
   
(57,231
)
 
60,211
   
392,237
   
57,456
 
Increase (decrease) in cash and cash equivalents during the period, net
   
200,130
   
(44,357
)
 
107,565
   
(90,263
)
Cash and cash equivalents at beginning of period
   
210,299
   
130,694
   
302,864
   
176,600
 
Cash and cash equivalents at period-end
   
410,429
   
86,337
   
410,429
   
86,337
 



Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

   
For the three-month
periods ended June 30
 
For the six-month
periods ended June 30
 
   
2008
 
2007
 
2008
 
2007
 
   
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
                   
Reconciliation of net income to cash and cash equivalents provided by (used in) operating activities
                 
Net income
   
121,726
   
18,150
   
58,758
   
54,812
 
Add (less)
                         
Minority interest
   
9,547
   
29,977
   
37,231
   
46,150
 
Depreciation and amortization
   
9,618
   
8,841
   
20,043
   
17,167
 
Long-term officers’ compensation
   
436
   
4,569
   
14,044
   
6,092
 
Amortization of development costs
   
3,530
   
3,558
   
7,257
   
6,801
 
Allowance for doubtful trade accounts receivable
   
-
   
-
   
5,372
   
-
 
Loss (gain) on currency exchange difference
   
11,886
   
(230
)
 
2,908
   
57
 
Accretion expense of the provision for closure of mining units
   
1,082
   
983
   
2,038
   
1,931
 
Realization of deferred income from sale of future production
   
-
   
-
   
-
   
(5,393
)
Share in affiliated companies, net of dividends received in cash
   
15,383
   
(30,613
)
 
(130,339
)
 
(85,657
)
Deferred income tax and workers´ profit sharing benefit
   
30,555
   
(33,663
)
 
(116,835
)
 
(62,584
)
Income from release of fixed price component in sales contracts
   
-
   
(70,272
)
 
(102,008
)
 
(129,804
)
Other
   
826
   
(331
)
 
(217
)
 
94
 
                           
Net changes in operating assets and liabilities accounts
                         
Decrease (increase) in operating assets -
                         
Trade accounts receivable
   
33,493
   
(13,229
)
 
11,604
   
13,981
 
Financial assets at fair value through profit or loss (Gold Certificates)
   
-
   
-
   
-
   
63,210
 
Prepaid taxes and expenses
   
(11,984
)
 
(1,609
)
 
(19,937
)
 
971
 
Inventory
   
(7,456
)
 
(3,176
)
 
(14,003
)
 
(101
)
Other accounts receivable
   
(4,149
)
 
(1,439
)
 
(3,025
)
 
(2,655
)
Accounts receivable from affiliates
   
2,382
   
2,438
   
(725
)
 
3,377
 
Increase (decrease) in operating liabilities -
                         
Trade accounts payable
   
3,286
   
503
   
6,852
   
(4,913
)
Income tax payable
   
(1,673
)
 
3,985
   
(10,608
)
 
(12,827
)
Other liabilities
   
(11,454
)
 
483
   
(41,728
)
 
(12,859
)
Net cash and cash equivalents provided by (used in) operating activities
   
207,034
   
(81,075
)
 
(273,318
)
 
(102,150
)

The accompanying notes are an integral parts of this consolidated statement.



Compañía de Minas Buenaventura S.A.A. and Subsidiaries
 
Notes to the interim consolidated financial statements (unaudited)
As of June 30, 2008 and 2007
 
1.
Business activity
 
Compañía de Minas Buenaventura S.A.A. (hereafter “Buenaventura”) is a publicly traded corporation incorporated in 1953. It is engaged in the exploration (individually and in association with third parties), extraction, concentration, smelting and sales of polymetallic ores and metals. The business activities of its subsidiaries are presented in the consolidated financial statements as of December 31, 2007; there have been no changes in such activities during the first semester in 2008. 

The consolidated financial statements include the financial statements of the below listed subsidiaries, whose interest participation were rounded to cents is shown below:

   
Ownership percentages as of
 
   
June 30, 2008
 
December 31, 2007
 
   
Direct
 
Indirect
 
Direct
 
Indirect
 
 
%
 
%
 
%
 
%
 
Mining concessions, held exploration and exploitation of minerals
                 
Compañía de Exploraciones, Desarrollo e Inversiones Mineras S.A.C. - CEDIMIN
   
44.83
   
55.17
   
44.83
   
55.17
 
Compañía Minera Condesa S.A.
   
100.00
   
-
   
100.00
   
-
 
Compañía Minera Colquirrumi S.A.
   
90.00
   
-
   
90.00
   
-
 
Sociedad Minera El Brocal S.A.A.
   
2.85
   
29.59
   
2.76
   
29.59
 
Inversiones Colquijirca S.A.
   
61.42
   
-
   
61.42
   
-
 
Minas Conga S.R.L.
   
-
   
60.00
   
-
   
60.00
 
S.M.R.L. Chaupiloma Dos de Cajamarca
   
20.00
   
40.00
   
20.00
   
40.00
 
Minera La Zanja S.R.L.
   
53.06
   
-
   
53.06
   
-
 
Minera Minasnioc S.A.C.
   
60.00
   
-
   
60.00
   
-
 
Electric power activity
                         
Consorcio Energético de Huancavelica S.A.
   
100.00
   
-
   
100.00
   
-
 
Services rendered
                         
Buenaventura Ingenieros S.A.
   
100.00
   
-
   
100.00
   
-
 
Contacto Corredores de Seguros S.A.
   
-
   
100.00
   
-
   
100.00
 


 
 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

2.
Interim unaudited consolidated financial statements
 
Basis of presentation -
 
The interim unaudited consolidated financial statements for the three and six-month periods ended June 30, 2008 had been prepared in conformity with IAS 34 “Interim Financial Reporting”.

The interim consolidated financial statements do not include all the information and disclosures required in the Company’s annual consolidated financial statements and should be read together with the consolidated financial statements as of December 31, 2007.

Significant accounting principles and practices -
 
(a)
The criteria and accounting basis used by the Company in preparing the accompanying interim consolidated financial statements are consistent to those used in the preparation of the Company’s annual consolidated financial statements.

(b)
Net income per basic and diluted shares is calculated on the basis of the weighted average number of the common and investment shares outstanding as of the date of the consolidated balance sheets, without considering treasury stock. When the number of shares is modified as a result of capitalization of retained earnings, share splits or share grouping, the net income per basic and diluted shares is adjusted retroactively for all of the periods reported. If the change occurs after the date of the consolidated financial statements, but before the financial statement are authorized to issue, the calculation of net income per basic and diluted shares for all of the reported periods must be based on the new number of shares.

Reclassifications -
 
The Company did not make significant reclassifications to its interim consolidated financial statements for the three and six-month periods ended June 30, 2008 and 2007.

3.
Seasonality of operations
 
The Company and its subsidiaries operate continuously without fluctuations due to seasonality.

2

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)
 
4.
Cash and cash equivalents
(a)
This item is made up as follows:

   
As of
June 30, 2008
 
As of
December 31, 2007
 
   
US$(000)
 
US$(000)
 
           
Cash
   
895
   
460
 
Bank accounts
   
82,974
   
27,700
 
Time deposits (b)
   
326,560
   
274,704
 
               
Cash balances included in the consolidated statements of cash flows
   
410,429
   
302,864
 
Time deposits with original maturity greater than 90 days (c)
   
51,984
   
78,748
 
               
     
462,413
   
381,612
 
 
(b)
The time deposits as of June 30, 2008, made up as follow:

Currency
 
Original
maturities
 
Annual interest rate
     
       
%
 
US$(000)
 
               
U.S. Dólares
   
From 24 to 62 days
   
From 3.75 to 7.35
   
259,000
 
Nuevos Soles
   
From 30 to 90 days
   
From 5.00 to 5.50
   
67,560
 
                 
326,560
 

The time deposits as of December 31, 2007, made up as follow:

Currency
 
Original
maturities
 
 
Annual interest rate
     
     
%
 
US$(000)
 
               
U.S. Dólares
   
From 2 to 90 days
   
From 4.57 to 5.61
   
237,500
 
Nuevos Soles
   
From 62 to 90 days
   
From 5.20 to 5.40
   
37,204
 
                 
274,704
 
 
3

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)
 
(c)
As of June 30, 2008, it corresponds to time deposits maintained by El Brocal:

Currency
 
Original
maturities
 
 
Annual interest rate
     
         
US$(000)
 
               
Nuevos Soles
   
From 120 to 190 days
   
From 5.00 to 5.70
   
37,984
 
U.S. Dólares
   
120 days
   
7.10
   
14,000
 
                 
51,984
 

As of December 31, 2007, it mainly corresponds to time deposits maintained by El Brocal:

Currency
 
Original
maturities
 
 
Annual interest rate
     
    %      
US$(000)
 
               
Nuevos Soles
   
From 91 to 228 days
   
From 5.00 to 5.50
   
48,048
 
U.S. Dólares
   
From 91 to 271 days
   
From 5.05 to 5.30
   
30,700
 
                 
78,748
 
 
4

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)
 
5.
Investments in shares
(a)
This item is made up as follows:

   
Equity ownership
 
Amount 
 
   
As of
June 30, 2008
 
As of
December 31, 2007
 
As of
June 30, 2008
 
As of
December 31, 2007
 
  %   %   
US$(000)
 
US$(000)
 
                   
Investments held under the equity method
                 
Minera Yanacocha S.R.L. (c)
                 
Equity share
   
43.65
   
43.65
   
658,837
   
577,537
 
Payment in excess of the share in fair value of assets and liabilities, net
               
19,044
   
19,599
 
                 
677,881
   
597,136
 
Sociedad Minera Cerro Verde S.A.A. (c)
                         
Equity share
   
18.50
   
18.50
   
318,024
   
267,448
 
Payment in excess of the share in fair value of assets and liabilities, net
               
56,976
   
57,960
 
                 
375,000
   
325,408
 
                           
Investments held at fair value
                         
Other
               
3,212
   
9,876
 
                 
1,056,093
   
932,420
 
 
5

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)
 
(b)
The table below presents the net share in affiliated companies:

   
For the three-month periods
ended June 30,
 
For the six-month periods
ended June 30,
 
                   
   
2008
 
2007
 
2008
 
2007
 
   
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
                   
Minera Yanacocha S.R.L.
   
43,312
   
9,548
   
124,397
   
36,781
 
Sociedad Minera Cerro Verde S.A.A.
   
55,250
   
41,697
   
119,887
   
68,920
 
Other
   
-
   
1,193
   
-
   
1,781
 
                           
     
98,562
   
52,438
   
244,284
   
107,482
 

(c)
The investments held in Yanacocha (a gold mine located in Cajamarca, Peru) and Cerro Verde (a copper mine located in Arequipa, Peru), represent the Company’s most significant investments. The share in their results has been significant in relation to the Company’s net earnings as of June 30, 2008 and 2007.

Increase in investments in shares balance -
Investment in shares´ balance increased by US$123,673,000 compared to the balance as of December 31, 2007, which was originated by the share in Yanacocha and Cerro Verde for US$244,284,000, net of the dividends received by these companies for US$127,199,000.

Increase in share in affiliated companies -
The share in affiliated companies increased by US$136,802,000 compared to same semester of 2007, mainly due to the net effect of:

-
An increase of US$87,616,000 in the share in Yanacocha’s net income. During the first semester of 2008, Yanacocha obtained a net income of US$285,798,000 (US$84,040,000 during the first semester of 2007). The higher income of Yanacocha is explained by the higher volume of gold sold during the semester (971,687 gold ounces during the first semester of 2008 compared to 766,793 gold ounces in the same period of 2007) and the increase of the gold price average (US$913.00 per ounce of gold in the first semester of 2008 compared with US$658.00 in the same period of 2007,
 
-
An increase of US$50,967,000 in the share in Cerro Verde’s net income. This company obtained a net income of US$653,392,000 during the first quarter of 2008 (US$376,035,000 during the first semester of 2007) explained by the full operations of primary sulfide plant, which started its operation in February 2007 and allowed to increase the volume of copper sold of 113,560 metric tonnes during the first semester in 2007 to 160,521 metric tonnes during the first semester in 2008 and the increase of copper price average from US$7,475.89 per metric tonnes in the first semester in 2007 to US$8,260.60 per metric ton in the first semester in 2008.
 
6

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Notes to the interim consolidated financial statements (unaudited) (continue)

Summary of financial information based on the financial statements of Yanacocha and
Cerro Verde -
The table below presents the principal amounts in the financial statements of Yanacocha and Cerro Verde, adjusted to conform to Buenaventura’s accounting practices:

   
Yanacocha
 
Cerro Verde
 
   
As of June 30
 
As of December 31
 
As of June 30
 
As of December 31
 
   
2008
 
2007
 
2008
 
2007
 
   
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
                   
Balance Sheet
                         
Total assets
   
2,118,453
   
1,895,884
   
2,303,553
   
2,010,776
 
Total liabilities
   
606,330
   
569,559
   
584,418
   
565,034
 
Shareholders’ equity
   
1,512,123
   
1,326,325
   
1,719,135
   
1,445,742
 

   
Yanacocha
 
Cerro Verde
 
   
For the six-month periods
ended June 30,
 
For the six-month periods
ended June 30,
 
   
2008
 
2007
 
2008
 
2007
 
   
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
                   
Results
                         
Total income
   
886,982
   
504,914
   
1,398,492
   
770,772
 
Operating income
   
402,598
   
127,678
   
1,024,282
   
585,697
 
Net income
   
285,798
   
84,040
   
653,392
   
376,035
 
 
7


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Notes to the interim consolidated financial statements (unaudited) (continue)
 
6.        Long-term debt
(a)
On February 20, 2008, Buenaventura signed a Syndicate Bridge Loan Agreement for the amount of US$450,000,000 with a syndicate of banks led by Banco de Crédito del Perú (the agent bank) with an interest rate of 90 day Libor plus 2.25% nominal annual. The loan received was used to pay clients to release the fixed - price component in sales contracts that Buenaventura held as of such date (see note 10) and to pay its financial obligations assumed during 2008, prior to obtain the syndicate bridge loan, which was paid in may of 2008 with founds provided by a new loan. See paragraph(b).

(b)
On May 21, 2008 Buenaventura signed a Syndicate Loan Agreement for US$450,000,000. The Banco de Crédito del Perú (BCP) was designated as Administrative Agent on behalf of the bank syndicate. The main clauses provided in the Syndicate Contract include the following:

 
(i)
The loan is structured according to the source of funding as follows:

   
US$(000)
 
%
 
           
Local banks
   
200,000
   
44.45
 
Foreign banks
   
250,000
   
55.55
 
     
450,000
   
100.00
 

 
(ii)
The loan accrues a 90 day Libor plus 2.25% nominal. The principal amount may only be prepaid on each of the programmed quarterly maturity dates.

 
(iii)
The loan has been granted for a five-year period. The amortization of the principal amount shall be made in 20 quarterly payments of US$22,500,000 starting August 27, 2008 and ending May 27, 2013.

(iv)
Compañía Minera Condesa S.A. (hereafter “Condesa”) signed the Syndicate Loan Agreement as guarantor for Buenaventura. For such effect, Condesa granted the Agent bank a pledge over the ADS (Pledged Securities) which were holded in the Bank of New York. The pledge affects 21,130,260 ADS of Buenaventura, which should have a market value of at least 1.25 times the remaining balance of the principal of the loan. If the market value of the pledge falls to levels below 1.25 times the remaining balance of the principal, the Company commits to grant additional pledges up to the value of at least 1.50 times the remaining balance of the principal.
 
8

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Notes to the interim consolidated financial statements (unaudited) (continue)
 
 
(v)
Buenaventura agrees to not entering into derivative contracts with speculation purposes as defined in the International Financial Reporting Standards.

(vi)
Buenaventura agrees to maintain a Debt Ratio financial index greater than 3.5 as of the end of each quarter. This ratio is determined by dividing Buenaventura’s consolidated financial debt by the sum of the consolidated EBITDA and the collection of dividends for the twelve-month period following the calculation date.

In the opinion of Buenaventura’s Management, as of the date of submitting the financial statements, it has duly complied with all of the obligations assumed under the Syndicate Loan Agreement.

(c)
In June 2007, Buenaventura obtained a loan from Banco de Crédito del Perú for the amount of US$75,000,000 in order to partially finance the payments in connection with the release of the fixed price component in the trade contracts entered into in 2007, as explained in note 10. This loan generates a three month Libor interest rate plus 0.85% and has not required any sort of guarantee.

(d)
The long-term debt held by Buenaventura and its subsidiaries matures as follows:

Period
 
US$(000)
 
       
2008
   
64,750
 
2009
   
129,553
 
2010
   
110,750
 
2011
   
92,000
 
2012
   
91,000
 
2013
   
45,000
 
     
533,053
 
         
Current portion
   
(129,513
)
 
       
Non current portion
   
403,540
 

7.
Shareholders’ equity, net
(a)
Dividends declared and paid
The information about declared dividends for the six-month periods ended June 30, 2008 and 2007 is as follows:
 
9

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Notes to the interim consolidated financial statements (unaudited) (continue)
 
Meeting
 
Date
 
Dividends
declared and paid
 
Dividends
per share
 
       
US$
 
US$
 
               
Dividends 2008
             
Mandatory annual shareholders meeting
   
March 27, 2008
   
30,320,000
   
0.22
 
Less - Declared dividends to Condesa
         
(2,331,000
)
     
           
27,989,000
       
                     
Dividends 2007
                   
Mandatory annual shareholders meeting
   
March 28, 2007
   
50,992,000
   
0.37
 
Less - Declared dividends to Condesa
         
(3,921,000
)
     
           
47,071,000
       

(b)
As of June 30, 2008, the effect of declared dividends by two subsidiaries to minority shareholders, is made up as follows:

   
2008
 
2007
 
   
US$(000)
 
US$(000)
 
           
Sociedad Minera El Brocal S.A.A.
   
19,340
   
8,120
 
S.M.R.L. Chaupiloma Dos de Cajamarca
   
7,037
   
7,037
 
     
26,377
   
15,157
 

10

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Notes to the interim consolidated financial statements (unaudited) (continue)
 
(c)
Capitalization of retained earnings -
The Mandatory annual Shareholders’ Meeting held March 27, 2008, agreed to increase the nominal value of the common and investment shares from S/4.00 to S/20.00 each. For this, the Meeting approved the following capitalizations:

(i)
Capitalization of results from exposure to inflation accumulated of capital stock and investment shares, as of December 31, 2004 amounting to S/96,858,000 (US$28,230,000). As of capitalization date, results from exposure to inflation was included as part of capital stock. As a consequence, no additional movement was required in the consolidated statement of changes in shareholders’ equity.

(ii)
Capitalization of retained earnings amounting to S/2,108,219,000 (US$626,421,000) increased the capital stock and investment shares accounts by US$576,610,000 (net of treasury stock for US$48,160,000) and US$1,546,000 (net of treasury stock for US$105,000), respectively.

As a result of the capitalizations, the nominal value of treasury shares (common and investment) increased from US$14,499,000 to US$62,764,000 (an increase of US$48,265,000). In compliance with accounting standards, the Company shows the nominal value of treasury shares net of the capital stock, as a consequence the increase in the nominal value of the treasury shares was net off in the same value of capital stock increasing the additional capital account of consolidated statement of changes in shareholders’ equity.

(d)
Stock Split-
 
In the General Shareholders Meeting held March 27, 2008, shareholders agreed that once the capitalization of retained earnings had been formalized and registered in Peru’s public registries, described in paragraph (c), these would be split by changing the nominal value of common and investment shares from S/20.00 to S/10.00.

The Board of Directors in its session of July 1, 2008 agreed on the schedule to carry out this splitting of Company shares. According to this schedule, the date of registration of the operation was July 18, 2008. As from July 21, 2008 the Lima Stock Exchange traded the new number of shares effective as of such date (254,442,328) and as from July 23, 2008 the New York Stock Exchange did the same.
 
11

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements
 
Notes to the interim consolidated financial statements (unaudited) (continue)
 
8.
Basic and diluted earnings per share
The composition of shares effective as of June 30, 2008 and 2007, as well as the number of shares considered in the calculation of net income per basic and diluted share, are described in detail below:
 

           
 
 
 
Outstanding shares as of June 30, 2008 and 2007
 
Number of shares
(denominator in calculation of net income per basic
and diluted share after stock split effect)
 
   
Common shares
 
Investment shares
 
Treasury
shares
 
Total
shares
 
Common
shares
 
Investment
shares
 
Total
shares
 
           
Common
 
Investment
                 
Balance as of January 1, 2008 and 2007
   
137,444,962
   
372,320
   
(10,565,130
)
 
(30,988
)
 
127,221,164
   
126,879,832
   
341,332
   
127,221,164
 
                                                   
Shares issued as a result of stock split (note 7(d))
   
-
   
-
   
-
   
-
   
-
   
126,879,832
   
341,332
   
127,221,164
 
Balance as of June 30, 2008 and for 2007
   
137,444,962
   
372,320
   
(10,565,130
)
 
(30,988
)
 
127,221,164
   
253,759,664
   
682,664
   
254,442,328
 

The table below presents the computation of basic and diluted earnings per share as of June 30, 2008 and 2007, adjusting retroactively the number of shares resulting from stock split effective as from July 23, 2008:
 
   
For the three-month period
ended June 30,
 
For the six-month period
ended June 30,
 
   
2008
 
2007
 
2008
 
2007
 
                   
Net income (numerator) - US$
   
121,726,000
   
18,150,000
   
58,758,000
   
54,812,000
 
Shares (denominator)
   
254,442,328
   
254,442,328
   
254,442,328
   
254,442,328
 
Basic and diluted earnings per share- US$
   
0.48
   
0.07
   
0.23
   
0.22
 

The table below presents the computation of basic and diluted earnings per share as of June 30, 2008 and 2007, carried out with the shares outstanding at such dates is as follows:
 
   
For the three-month period
ended June 30,
 
For the six-month period
ended June 30,
 
   
2008
 
2007
 
2008
 
2007
 
                   
Net income (numerator) - US$
   
121,726,000
   
18,150,000
   
58,758,000
   
54,812,000
 
Shares (denominator)
   
127,221,164
   
127,221,164
   
127,221,164
   
127,221,164
 
Basic and diluted earnings per share- US$
   
0.96
   
0.14
   
0.46
   
0.43
 

12

 
Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

9.
Deferred income tax and workers´ profit sharing asset, net
(a)
The company and its subsidiaries recognize the effects of timing differences between the accounting basis and the tax basis. The table below presents the components of this caption, according to the items that give rise to them:

   
As of June 30,
2008
 
As of December 31, 
2007
 
   
US$(000)
 
US$(000)
 
           
Tax - loss carryforward
   
211,298
   
58,116
 
Stock appreciation rights accrual
   
12,726
   
13,458
 
Provision for closure of mining units
   
10,157
   
13,094
 
Loss on translation into U.S. dollars
   
6,370
   
8,923
 
Deferred income from sale of future production
   
-
   
33,192
 
Other
   
12,426
   
14,335
 
               
     
252,977
   
141,118
 

(b)
The current and deferred portions of the income (expense) tax and workers’ sharing benefit included in the consolidated statements of income for the three and six-month periods ended June, 30, 2008 and 2007 are made up as follows:

   
For the three-month periods
ended June 30,
 
For the six-month periods
ended June 30,
 
   
2008
 
2007
 
2008
 
2007
 
   
US$(000)
 
US$(000)
 
US$(000)
 
US$(000)
 
                   
Workers’ profit sharing
                         
Current - legal
   
(2,765
)
 
(1,465
)
 
(5,499
)
 
(9,027
)
Current - without effect of unusual item
   
2,309
   
(5,547
)
 
(2,708
)
 
(3,840
)
Deferred
   
(6,866
)
 
8,448
   
26,255
   
14,877
 
     
(7,322
)
 
1,436
   
18,048
   
2,010
 
Income tax
                         
Current
   
(13,397
)
 
(22,323
)
 
(26,919
)
 
(45,370
)
Deferred
   
(23,689
)
 
25,215
   
90,580
   
47,707
 
     
(37,086
)
 
2,892
   
63,661
   
2,337
 

13


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

10.
Net sales
The sales in the first semester of 2008 (US$416,271,000) increased by 26 percent compared to the first semester of 2007 (US$332,259,000). During the first semester of 2008, the Company sold 172,936 gold ounces at an average market quotation of US$909.94, compared with 40,000 gold ounces at an average fixed price of US$340.00 and 159,906 gold ounces at an average market quotation of US$653.01 in the same period of 2007. The higher sales prices obtained during the first semester of 2008, results from the modification of schedule of commitments of gold ounces and for the release of fixed-price component in sales contracts which were made in January 2007 and in the months of January and February of 2008, respectively.

The increase in the sales for the higher prices of gold was partially off set by the decrease of the gold ounces sold. See note 14(a).

During the six month period ended June 30, 2008 El Brocal’s sales decreased approximately in US$7,849,000 in respect the same period of 2007 which is mainly explained by the net effect between increase in the sales for US$22,318,000 as a result of to start up phase of copper concentrate plant at the end of the year 2007, which allow to sale 19,466 MT of copper concentrate, the decrease of the zinc sales by US$19,741,000 as a consequence of the minor zinc quotation which was compensated with higher volumen sold of zinc and the decrease of lead sales.

Normal sales contracts -
In March and May of 2007, Buenaventura reviewed the sales contracts with six of its customers, to release the fixed-price or higher price to sell certain number of committed ounces and to sell those gold ounces between the years 2008 - 2012 at market prices.

As a consequence, Buenaventura was released from the obligation to sell 971,000 ounces of gold at fixed prices; consequently, they will be sold according at the market price prevailing at the date of the physical delivery of the gold committed.

For these transactions, Buenaventura made a payment of US$315,726,000 (US$144,987,000 in March, 2007 and US$170,739,000 in May, 2007, respectively) with charge to expense and recorded a decrease in the liability corresponding to the deferred income from sale of future production of US$129,804,000 with a credit to income of the period. The net loss resulting of US$185,922,000 is presented in the caption Net loss on release of fixed-price component in sales contracts, in the consolidated statements of income for the six-months period ended June 30, 2007.

14


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

In January and February of 2008, Buenaventura reviewed the sales contracts with others customer, to release the fixed-price component or higher price on to sell those committed gold ounces between the years 2010 - 2012 to the market prices, in a similar way of the agreement fixed in 2007.

As a consequence, Buenaventura was released from the obligation to sell 922,000 ounces of gold at fixed prices, varying between US$345 and US$451 per ounces of gold; consequently, they will be sold according at the market price, prevailing at the date of the physical delivery of the gold committed.

For these transactions, Buenaventura made a payment of US$517,143,000 (US$82,592,000 in January 2008 and US$434,551,000 in February 2008, respectively) and recorded a decrease in the liability corresponding to the deferred income from sale of future production of US$102,008,000 witha credit to income of the period. The net loss resulting of US$415,135,000 is presented in the caption Net loss on release of fixed-price component in sales contracts in the consolidated statements of income for the six-month period ended June 30, 2008.

As of June 30, 2008, Buenaventura has been released of fixed-price component of all sales contracts which have a maximum maturity until the year 2012.

Embedded derivative due to changes of the prices in sales contracts -
The Company’s concentrate sales include embedded derivatives that for accounting purposes must be separated from the sales contracts. They are recognized as assets and liabilities at fair value.

11.
Administrative
The administrative expenses in the first semester of 2008 (US$37,241,000) increased by 73 percent compared with the first semester of 2007(US$21,555,000) mainly explained by the increase of US$7,952,000 of the provision for long - term officers compensation and for the record in 2008 of a provision for allowance for doubtful account by US$5,372,000. The provision was for accounts receivable that Management has deemed to be uncollectible as of the date of the consolidated balance sheet.

15


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

12.
Transactions with affiliated companies
(a)
As a result of the transactions presented in the following paragraph, the Company has the following accounts receivable from affiliated companies:

   
As of
June 30,
2008
 
As of
December 31,
2007
 
   
US$(000)
 
US$(000)
 
           
Minera Yanacocha S.R.L.
   
15,032
   
14,307
 
Other
   
143
   
113
 
     
15,175
   
14,420
 

(b)
The Company (through its subsidiaries) had the following transactions with Minera Yanacocha S.R.L.:

S.M.R.L. Chaupiloma Dos de Cajamarca (“Chaupiloma”) -
Chaupiloma is the legal owner of the mineral rights on the mining concessions exploited by Yanacocha, and receives a 3 percent royalty on the net sales of Yanacocha. During the three and six-month periods ended June 30, 2008, royalties earned amounted to US$12,084,000 and US$26,342,000, respectively (US$6,346,000 and 14,727,000 for the three and six-month periods ended June 30, 2007, respectively) and are presented as royalties income in the consolidated statements of income.

Compañía Minera Condesa S.A. (“Condesa”) -
During the six-month period ended June 30, 2008, Yanacocha paid cash dividends to Condesa of US$43,650,000 for the six-month period then ended (US$21,825,000 for the six-month period ended June 30, 2007).

Buenaventura Ingenieros S.A. (“Bisa”) -
As of December 31, 2006, Bisa participated in a framework contract with Minera Yanacocha S.R.L. Starting from July 2007, it participates in the bidding for the execution of specific work orders.

16


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

The revenues related to these services contracts during the three and six-month periods ended June 30, 2008 amounted to approximately US$638,000 and US$767,000, respectively (US$1,303,000 and US$3,108,000 for the three and six-month periods ended June 30, 2007, respectively). These figures are presented in the caption net sales of the consolidated statements of income.

Consorcio Energético de Huancavelica S.A. (“Conenhua”) -
In November 2001, Conenhua signed a 10-year agreement with Yanacocha for the electric energy transmission and infrastructure operation, Yanacocha will pay an annual fee of US$3,700,000. For the three and six-month periods ended June 30, 2008, the revenues for these services amounted to US$1,197,000 and US$2,394,000, respectively (US$969,000 and US$1,937,000 for the three and six-month periods ended June 30, 2007, respectively) and are presented in the caption net sales of the consolidated statements of income.

Terms and Transaction with related parties
Transactions with related parties are made at normal market prices. Outstanding balances at year-end are unsecured interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables. As of June, 30, 2008, the Company has not recorded any impairment of receivables relating to amounts owed by related parties, according to the assessment undertook by management each financial reporting through examining the financial position of the related party and the market in which the related party operates.

13.
Derivative financial instruments
Derivative contracts -
Buenaventura
On April 17, 2008, Buenaventura settled its put option contracts (gold convertible put option contracts) for which disbursed an amount of US$500, which granted it the right to sell 52,500 ounces of gold at an average price of US$345 per ounce, depending on certain market conditions. As of June 30, 2008, Buenaventura had no gold convertible put option contracts.

17


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

El Brocal
During the year 2007 and the first quarter of 2008, El Brocal entered into metal price hedging contracts to cover future cash flows from its sales, which qualify to hedge accounting of future cash flow and are recognized as assets and liabilities at fair value in the consolidated balance sheet. Changes in the fair value are deferred in an equity account to the extent that the hedge operations are effective. The deferred amounts are reclassified to sales caption when the related production is sold.

The critical terms of these hedge operations have been negotiated with brokers so that they coincide with the negotiated terms of the sales contracts to which they are related. Price hedge operations for cash flow from the next few years’ sales have been evaluated by the Management and found to be 100% effective. The effectiveness of hedging operations was measure using the dollar-offset method, a method that the Company’s management considers best reflects the risk management aim relating to the hedging operations.

As of June 30, 2008, El Brocal recognized gain of US$349,000 relating to hedging operations liquidated in the period. These values are included in the caption net sales in the consolidated statement of income. 

18


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

Hedging operations current in El Brocal as at June 30, 2008 are:

Metal
 
Monthly
average
amount
 
Total Amount
 
Fixed
Price
 
Period
 
Fair value (*)
 
   
MT
 
MT
 
US$
     
US$(000
 
                       
Zinc
   
675 MT
   
4,050
   
2,866
   
July 2008 - December 2008
   
4,053
 
Zinc
   
675 MT
   
4,050
   
2,853
   
January 2009 - June 2009
   
3,853
 
Zinc
   
675 MT
   
4,050
   
2,679
   
July 2009 - December 2009
   
2,646
 
Zinc
   
675 MT
   
4,050
   
2,621
   
January 2010 - June 2010
   
2,274
 
Zinc
   
425 MT
   
2,550
   
2,481
   
July 2010 - December 2010
   
985
 
Lead
   
525 MT
   
3,150
   
2,930
   
July 2008 - December 2008
   
3,545
 
Lead
   
525 MT
   
3,150
   
2,908
   
January 2009 - June 2009
   
3,155
 
Lead
   
525 MT
   
3,150
   
2,775
   
July 2009 - December 2009
   
2,801
 
Lead
   
525 MT
   
3,150
   
2,770
   
January 2010 - June 2010
   
2,513
 
Lead
   
425 MT
   
2,550
   
2,780
   
July 2010 - December 2010
   
2,103
 
Copper
   
350 MT
   
2,100
   
7,694
   
July 2008 - December 2008
   
(2,286
)
Copper
   
350 MT
   
2,100
   
7,514
   
January 2009 - June 2009
   
(2,258
)
Total
         
38,100
               
23,384
 
 
                     
Less - current portion 
   
(10,062
)
 
                     
Non current portion 
   
13,322
 
(*) Mark to market

During the first semester of 2008, El Brocal recorded a credit of US$9,930,000, in the equity caption Unrealized loss on derivative financial instruments, resulting from changes in fair value of the derivative contracts occurring during that period. This amount, net of the deferred income tax and workers’ profit sharing amounting to US$5,490,000 to these date, the fair value of derivative financial instruments, net of the deferred income tax and deferred workers’ profit sharing, amounts to US$15,059,000 and is presented in the caption Cumulative unrealized gain on derivative financial instruments, net in El Brocal’s statements of changes in shareholders’ equity.

19


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

Embedded derivative due to changes of the prices in sales contracts -
As of June 30, 2008 and December 31, 2007, the fair value of the embedded derivate is a loss of US$3,259,000 (loss of US$2,992,000 maintained by El Brocal and a loss of US$267,000 maintained by Buenaventura) and US$5,984,000 (loss of US$5,760,000 maintained by El Brocal and a loss of US$224,000 maintained by Buenaventura), respectively; and is shown in the caption Embedded derivative for concentrate sales on the consolidated balance sheet.

14.
Statistical data
Statistical data of the Company related to the volume of inventories sold and average sale prices by product for the three-month periods ended June 30, 2008 and 2007 are as follows:

 
(a)
Volumes sold:

   
For the three-month periods
ended June 30,
 
For the six-month periods
ended June 30,
 
   
2008
 
2007
 
2008
 
2007
 
                   
Gold
   
88,806 OZ
   
90,897 OZ
   
172,936 OZ
   
199,906 OZ
 
Silver
   
4,073,056 OZ
   
3,880,039 OZ
   
8,476,053 OZ
   
7,826,953 OZ
 
Lead
   
8,063 MT
   
11,193 MT
   
16,210 MT
   
20,107 MT
 
Zinc
   
23,751 MT
   
19,750 MT
   
43,199 MT
   
35,435 MT
 
Copper
   
1,844 MT
   
38 MT
   
3,430 MT
   
65 MT
 

(b)
Average sale prices:

   
For the three-month periods
ended June 30,
 
For the six-month periods
ended June 30,
 
   
2008
 
2007
 
2008
 
2007
 
                   
Gold
   
894.77 US$/OZ
   
653.96 US$/OZ
   
909.94 US$/OZ
   
590.38 US$/OZ
 
Silver
   
17.05 US$/OZ
   
13.39 US$/OZ
   
17.40 US$/OZ
   
13.37 US$/OZ
 
Lead
   
2,317.09 US$/MT
   
2,155.01 US$/MT
   
2,616.16 US$/MT
   
2,060.89 US$/MT
 
Zinc
   
2,129.65 US$/MT
   
3,721.64 US$/MT
   
2,240.94 US$/MT
   
3,559.38 US$/MT
 
Copper
   
8,335.29 US$/MT
   
7,630.91 US$/MT
   
8,207.93 US$/MT
   
6,936.28 US$/MT
 

20


Translation of a report and interim unaudited consolidated financial statements originally issued in Spanish - see Note 15 to the consolidated financial statements

Notes to the interim consolidated financial statements (unaudited) (continue)

15.
Explanation added for English language translation
The accompanying consolidated financial statements are presented based on accounting basis generally accepted in Peru. Certain accounting practices applied by the Company that conform with generally accepted accounting principles in Peru may differ in certain respects to generally accepted accounting principles in other countries.

21

 
Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Compañía de Minas Buenaventura S.A.A.

Compañía de Minas Buenaventura S.A.A.
 
/s/ CARLOS E. GALVEZ PINILLOS
 
Carlos E. Gálvez Pinillos
 
Chief Financial Officer
 
Date: August 12, 2008
 
22