Net profit down at Buenaventura

Lima-based precious metals miner Minera Buenaventura (NYSE: BVN) reported a net profit of US$48.2mn in 2003, 56.3% less than the US$110.5mn obtained in 2002, the company said. But, if it were not for the effect of "derivatives," net profit would have reached US$156.9mn, 41.9% more than in 2002.The company used financial instruments like derivatives to reduce certain risks to which it was exposed and the value of the instruments reflects variations in precious metals prices. Buenaventura's 2003 sales revenues came to US$234.5mn, an increase of 29.3% on the US$181.3mn obtained in 2002, the company said the improvement is based on an increase in product prices, especially for gold and silver. Buenaventura owns the Orcopampa and Antapite gold mines in the departments of Arequipa and Huancavelica, respectively and the Uchucchacua silver mine in Lima department. It also has a 43.65% share in the 2.8Moz/y Yanacocha gold mine in Peru, the biggest in the region.