Buenaventura Sells Royalty for $210M

TL;DR

Buenaventura just sold its Chaupiloma Royalty to Franco-Nevada for $210M to boost its balance sheet.

AI Summary

Compañía de Minas Buenaventura S.A.A. announced on August 13, 2024, the closing of its transaction to divest its Chaupiloma Royalty Company to Franco-Nevada Corporation for $210 million. The proceeds from this sale are intended to strengthen Buenaventura's balance sheet and enhance shareholder returns.

Why It Matters

This $210 million divestiture provides Buenaventura with significant capital, which can be used to improve its financial standing and potentially increase value for its shareholders.

Risk Assessment

Risk Level: low — The filing is a straightforward announcement of a completed transaction with a known counterparty and a clear financial outcome.

Key Numbers

• $210 million — Divestiture Proceeds (Amount received by Buenaventura from selling Chaupiloma Royalty Company to Franco-Nevada.)

Key Players & Entities

• Compañía de Minas Buenaventura S.A.A. (company) — Seller
• Buenaventura Mining Company Inc. (company) — English translation of seller
• Chaupiloma Royalty Company (company) — Asset being divested
• Franco-Nevada Corporation (company) — Buyer
• $210 million (dollar_amount) — Sale price
• August 13, 2024 (date) — Transaction closing date

FAQ

Key Financial Figures

• $210 Million — ma Royalty Company to Franco-Nevada for $210 Million Proceeds will strengthen balance shee
• $210 million — nsideration for the Royalty consists of $210 million paid to Buenaventura in cash upon closi
• $15 million — ing, as well as a contingent payment of $15 million in Franco-Nevada common shares, payable

Filing Documents

• tm2421588d1_6k.htm (6-K) — 20KB
• image_001.jpg (GRAPHIC) — 7KB
• image_002.jpg (GRAPHIC) — 41KB
• 0001104659-24-089045.txt ( ) — 87KB

From the Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of August 2024 Commission File Number: 001-14370 COMPANIA DE MINAS BUENAVENTURA S.A.A. (Exact name of registrant as specified in its charter) BUENAVENTURA MINING COMPANY INC. (Translation of registrant’s name into English) CARLOS VILLARAN 790 SANTA CATALINA, LIMA 13, PERU (Address of principal executive office) 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 ¨ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes ¨ No x Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ¨ No x Buenaventura Announces Closing of Transaction to Divest Its Chaupiloma Royalty Company to Franco-Nevada for $210 Million Proceeds will strengthen balance sheet, enhancing shareholder returns Lima, Peru, August 13, 2024 – 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 that it has closed a transaction to sell to a subsidiary of Franco-Nevada Corporation 100% of Chaupiloma Dos de Cajamarca (“Chaupiloma”), Buenaventura’s subsidiary that owns 1.8% net smelter return royalty on all minerals (the “Royalty”) covering Newmont Corporation’s Yanacocha mine and adjacent mineral properties located in Peru. Under the terms of the definitive agreement, consideration for the Royalty consists of $210 million paid to Buenaventura in cash upon closing, as well as a contingent payment of $15 million in Franco-Nevada common shares, payable upon achievement of certain conditions as described below. "Today's announcement represents another critical step forward, aligned with our strategic objective of reinforcing Buenaventura’s financial strength to return to leverage levels reflecting our Company’s true operational performance, aligned with our commitment to our shareholders and bond holders,” said Leandro Garcia, CEO of Buenaventura. “This transaction enables Buenaventura to strengthen its financial position, with sale proceeds also directed towards driving further growth, led by progress on our San Gabriel project. Buenaventura’s San Gabriel project achieved 57% overall progress towards completion by second quarter’s end, meeting our planned targets. We remain on track to reach our goal of producing our first gold bar by the second half of 2025.” Transaction Overview: • $210 million in cash paid to Buenaventura and its affiliate on closing, whereby a wholly-owned subsidiary of Franco-Nevada acquired their Peruvian subsidiary Chaupiloma Dos De Cajamarca, which holds the Royalty. • A contingent payment of 118,534 common shares of Franco-Nevada, representing $15 million as at signing, will be payable to Buenaventura and its affiliate upon the Conga project, a project of Minera Yanacocha which is primarily owned by Newmont Mining Corporation, achieving commercial production for a full year prior to the twentieth anniversary of closing. • Buenaventura and its affiliate are entitled to receive a variable price equivalent to payments received by Chaupiloma for the Conga Royalty and two additional royalties. Compañía de Minas Buenaventura S.A.A. Page 2 of 2 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*, Julcani*, Tambomayo*, La Zanja*, El Brocal and Coimolache. The Company owns 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc. and Sumitomo Corporation). For a printed version of the Company’s 2023 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 Cerro Verde’s costs and expenses, results of exploration, the continued impr

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