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BUENAVENTURA ANNOUNCES THE COMPLETION
OF ITS DEBT REPROFILING
Lima, Peru, June 30, 2016 -
Compañía
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 a US$ 275 million syndicate loan agreement
with 7 banks, in line with its cash preservation strategy.
At the beginning of 2016, Buenaventura
announced its updated financial strategy aimed at cash preservation. The main objectives include:
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A cost reduction plan
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CAPEX discipline
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A dividend from Yanacocha (US$131 million)
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Debt Reprofiling
The proceeds of the
loan will be allocated towards:
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Prepayment of US$245 million short-term debt
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General corporate purposes
Details of the Syndicate loan are:
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Type: Senior Unsecured Syndicated Term Loan Facility
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Interest Rate: Libor (3-months) + 3.0%
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Maturity: 5 years (including 2
-year grace period)
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Principal Amortization: Semi-annual installments, beginning in 2018
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Company
Description
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 and San Gabriel Projects.
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.
(*) 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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