Compania de Minas Buenaventura SAA (BVN) 2010 Q4 法說會逐字稿

Good morning. My name is Wes and I will be your conference operator today. At this time, I would like to welcome everyone to the Buenaventura Fourth Quarter 2010 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions). Thank you. I will now turn the conference over to Pete Majeski with i-advize Corporate Communications. Please go ahead, sir.

Thank you, Wes and good morning everyone. Welcome to Buenaventura's Fourth Quarter 2010 Conference Call. Today's call is for investors and analysts only. Questions from the media will not be taken. Joining us today from Lima are Mr. Roque Benavides, Chief Executive Officer, Mr. Carlos Galvez, Chief Financial Officer as well as other members of the Company's senior management team.

We will be discussing Buenaventura's results per the press release, distributed yesterday. If you have not received a copy, please call us in New York at 212-406-3693. Before we begin, I would like to remind you that any forward-looking statements made today by Buenaventura's management are subject to various conditions and may differ materially. These conditions are outlined in the Company's press release in the disclaimer and we ask that you refer to it for guidance. It is now my pleasure to turn the call over to Mr. Roque Benavides. Mr. Benavides, you may begin.

Thank you and good morning to all. Thank you for attending this Buenaventura conference call. Our net income during the fourth quarter was US$222 million, a 6% increase when compared to the figure reported in the fourth quarter '09, mainly due to 133% increase in operating income, which means that our own direct operations are doing much better than what they did in the previous quarter.

The EBITDA for Buenaventura's direct operations was US$246 million, 110% higher than the figure reported in the fourth quarter '09, while EBITDA, including Yanacocha and Cerro Verde increased 31% from US$359 million in the fourth quarter of '09 to US$470 million in the fourth quarter '010. These results were mainly driven by an increase in gold and copper sales from Buenaventura's direct operations as well as the higher metal prices in the market.

Essentially, Buenaventura's equity production in the fourth quarter '010 was 132,000 ounces of gold, 16% higher than the 113,000 ounces reported in the fourth quarter '09. Silver production in the fourth quarter '010 was 3.5 million ounces, a 2% decrease when compared to the figure reported in the fourth quarter '09. Our equity production in 2010, full year, was 458,000 ounces of gold and 13.5 million ounces of silver. This represented an 8% increase in gold production and 9% increase in our silver production compared to 2009.

At Orcopampa, our production from the Chipmo mine in the fourth quarter '010 was 79,000 ounces, 2% higher than the 77,000 ounces reported in the fourth quarter '09. The cash operating costs in the fourth quarter '010 was US$349 per ounce. At Poracota, our gold production in the fourth quarter '010 was 14,600 ounces, an increase of 9% when compared to fourth quarter '09, due to a 7% increase in the recovery rate. At Uchucchacua, our total silver production was, in the fourth quarter '010, was 2.4 million ounces, a decrease of 4% when compared to 2.5 million ounces in the fourth quarter '09.

Our cash operating costs in the fourth quarter '010 was US$13.69 per ounce, an 18% increase compared to US$11.6 per ounce in the first quarter '09. And this, we should explain, was due essentially to a 25% rise in contractor expenses, due to an increased drifting work and productivity bonus. To the previously mentioned, 4% increase in production and the increase in silver prices, led to higher royalty paid to the government as well as higher commercial deductions to payable silver content.

At Antapite, our total production for the fourth quarter '010 was 9.700 ounces of gold, an increase of 29% compared to the fourth quarter '010. The cash operating costs in Antapite for the first quarter -- fourth quarter '010 was US$767 per ounce. At La Zanja, our total production for the fourth quarter '010, which has been the first full quarter that we have been in operation, was 34,000 ounces of gold and of those are 18,000 ounces attributable to Buenaventura. While the cash operating costs were US$332 per ounce, and the accumulated gold production in the first year of production, in fact the first few years of production -- few months of production, in 2010 was 44,000 ounces of gold. We are very pleased with the operation at La Zanja and it is a success story for Buenaventura.

At El Brocal, where we control -- we have a 46% economic interest, during the fourth quarter '010, full capacity of the concentrator -- the concentration plant was devoted to copper ore treatment to benefit from the high copper prices. In Brocal, we have the flexibility of producing lead-zinc silver ores, or producing, in this case, copper ores, which, with the very high copper prices, we decided in the last quarter to produce copper. And this has been very beneficial for this operation. Copper production in the fourth quarter '010 was 10,000 metric tons, 421% higher than the fourth quarter '09, where we produced more lead and zinc and silver ores.

Silver production in the fourth quarter '010 was 494,000 ounces, 46% lower than in the fourth quarter '09. And the total zinc production was essentially lower than the comparable quarter in 2009, essentially because of the production of copper.

In terms of our exploration costs, in non-operational mining sites and we are here with Cesar Vidal, who is our Vice President for Exploration, that can answer any questions further on, our exploration costs at non-operational mining sites, which includes care and maintenance in the fourth quarter '010 were at US$10.2 million, a 77% increase compared to the US$5.7 million reported in the fourth quarter '09.

The main efforts were focused on Colquemayo, Mallay, Chiptaj-Chancas, Breapampa and Chaje. Exploration costs at non-operating mining sites in the full year 2010 were US$36 million, 20% increase when compared to 2009. Operating income in the fourth quarter '010 was US$218 million, a 133% increase compared to US$93 million reported in the fourth quarter '09. This result was mainly explained by higher operating margins. The accumulating -- the accumulated operating income in 2010 was US$437 million, an increase of 52% when compared to the figure reported in 2009.

During the fourth quarter '010, Buenaventura's income from non-consolidated affiliates was US$112 million, 24% lower than the US$147 million reported in the fourth quarter '09. Yanacocha's contribution to these results decreased 39% from US$99 million in the first quarter '09 to US$61 million in the fourth quarter of '010, partially offset by the 51% increase in contributions from Cerro Verde, which rose 50% from 47 -- US$48 million in the fourth quarter of '09 to US$72 million in the fourth quarter '010.

The accumulated income for non-consolidated affiliates in 2010 was 40 -- US$428 million, a decrease of 5% compared to US$451 million reported in 2009. This quarter, Buenaventura's net income was US$228 million, 6% higher compared to US$210 million as reported in the fourth quarter '09. This was mainly explained by the 133% increase in operating income despite a 39% decrease in contribution from Yanacocha. Net income for the full year 2010 was US$662 million, a 12% increase when compared to US$593 million reported in 2009.

We have continued developing projects at Orcopampa, at Uchucchacua and we have continued with the construction at Tantahuatay. Let me just summarize all the activity that we have been doing in 2010. We have continued with the expansion projects at El Brocal to reach 18,000 tons of ore processing capacity and that is going on time and a little bit higher budget, but we expect to be concluded by 2012 in the case of the expansion of El Brocal. La Zanja, as I mentioned earlier, was a success story and we've put that in production and we continue producing at a normal rate and we expect to reach in excess of 100,000 ounces per year production from La Zanja.

Tantahuatay continues the construction. We expect to be ready by June this year and have the first gold bars by July or August 2011. We are very pleased with the job that is being done in Tantahuatay. We are also working on the feasibility of Conga within the Yanacocha and that is a substantial investment and we are very pleased with what is being done in Conga.

Chucapaca has continued with the exploration at -- in the hands of Gold Fields. We are increasing the resource there and we continue heading for -- having production from Chucapaca in 2015, if not before that. Cerro Verde has reported that we are looking for a feasibility to, as Mr. Richard Adkerson mentioned, to double or triple the production at Cerro Verde and we are working in that respect.

And of course we are working in a small project for Breapampa that most of you already know. We expect to put in production next year. So the activity within Buenaventura is really impressive and we are very pleased with what we are doing with -- we are doing there. We are also building a smaller lead, zinc, silver deposit called Mallay in the surroundings of Uchucchacua. So the increment in production, the increment in exploration, the increment in talent that we are looking for, Buenaventura is in place and we have -- we are very optimistic towards the future.

Yesterday, we had our Board meeting and we passed the final resolutions to call for an annual shareholders meeting to be held on March 25th, 2011 to approve the financial statements as of December 31st, to approve the 2010 annual report, to approve our cash dividend of US$0.33 per share, or ADS, to be paid in US currency and the election of the Board of Directors for the period 2011 to '13. We have also passed an information that our Chairman, Mr. Alberto Benavides, will be stepping down from the Board. So the election of a new Chairman will also be the case after the Board meeting that should be held on February 24th.

Mr. Alberto Benavides has been Chairman of the Company for -- since 1980 and been a Board of -- a Board member for all the history of Buenaventura. He is the founding President and we -- he has -- he is 90 years old and he has decided to step down. And, of course, we regret that that is the case, but we should elect a new Board of Directors and a new Chairman. With that, we are very open -- we are open to any questions that you may have.

(Operator Instructions). Our first question comes from Victoria Santaella of Santander.

Hi. Good morning. Congratulations on the very good results. I had a couple of questions. The first one is if you can give us some guidance in terms of the time line for Cerro Verde expansion and how much is the initial invested -- investment going to be representing? The second one is we saw some guidance on production from Yanacocha and the potential of a further erosion in production for 2011. Can you give us an idea of after 2011, is there any guidance? And last, but not least, your comments regarding the risk of higher royalties in Peru.

The time line for the Cerro Verde copper mine should be decided in the next couple of weeks. Our feasibility should be ready by then. We only can say that the discussion is whether to double or triple the production at Cerro Verde. And that will depend on a number of factors, from the financial to the water and the tailing dam resource that we can have.

The amount to be invested also depends on whether it will double or triple the sulfide treatment capacity at Cerro Verde and as has been stated, it can go from US$2 billion to US$3.5 billion. So it is early days to say. The fact of the matter is that Cerro Verde has a huge resource that can be developed and will be developed, taking into consideration these limitations of --technical limitations and maybe the infrastructure limitations, no?

In the case of Yanacocha, the guidance is 1.3 to 1.4 million ounces of production for 2011. That -- but we will continue developing some areas of the mines. We are looking at opportunities to explore underground, to develop some of the sulfides and still Yanacocha is a world-class deposit and with the production at Conga, we will have many years to go.

In terms of the royalties increase, well, Peru is in elections period and there is a lot of talk on this aspect. But it will depend also on the comparison that will be done with other mining countries in the world. We think that royalties in Peru, that go up to 3%, are already important and all depends on the prices of metals. We really have no idea what is going to happen in those terms, but I think Peru has to be very much aware of the competitiveness to attract additional investments. Peru is blessed with the natural resources, but we need to be attractive as an investment place for mining companies.

Thank you very much, Roque.

Your next question comes from John Bridges of JPMorgan.

Good morning everybody. First, I'd just like to congratulate your father on his achievements and hope he can enjoy his retirement, finally.

He's listening -- John, he's listening to you. So he can thank you for that.

Thank you, John.

Congratulations.

Thank you as well.

I saw you -- sorry.

Yes?

I saw you've improved the recoveries at Poracota and made this adjustment to the carrying value. What do you see as the outlook for that mine?

Well, Poracota is -- first of all, we are learning that what we thought were refractory ores are not all that refractory. I was talking to our advisor, Mr. Plenge, the other night, and there are very important results on the treatment of those refractory ores. And we are brownfield exploring in the surroundings of Poracota. It is a hot spot behind, if I may say, it's not a huge mine, but we are improving in the operations and that, of course, contributes to the overall production at the Orcopampa mill.

So we are quite excited about Poracota. That's the way it works. We started operations. We have been able to expand the resource. We have been able to produce close to 50,000 ounces from Poracota and we are very pleased with that.

Okay. Excellent. Could you give us some guidance as to the total production, gold, silver, and maybe even the base metals, for 2011 and even further out, so that we can fine-tune our models a little bit?

Well, John, it's Carlos. Well, our guidance is very let's just keep on the same level of production of gold attributable to Buenaventura, which is close to 1.1 million ounces of gold, while compensating the drop in -- the reduction of Yanacocha's production with our new contribution of La Zanja and Tantahuatay.

We expect to add some, next year, with full-year production of Tantahuatay and the new production of Breapampa, 100% attributable to Buenaventura. And we will continue progressing with our Poracota and we expect to expand some the possibility to produce additional ores from Antapite, due to the fact that we expect to turn around the social issues we have and we are progressing pretty well.

Thus giving time, in order to get in a year 2014, as Roque mentioned, possibility to develop Chucapaca. So actually we expect to expand this level of production from 1.1 to the level of 1.4 million ounces towards the year -- through 2014, attributable to Buenaventura. We expect that the problems that Yanacocha has faced during the year 2010 and is facing right now regarding the difficulties in the area of La Quinua will turn around. So we could get back to our initial guidance in the area of Yanacocha, as the total production closer to 1.5 million ounces.

In terms of silver, this year, we produced about 15 million ounces in total attributable Buenaventura. We expect to complete the manganese sulphate plant to begin production of the higher manganese content ores in Uchucchacua due to the fact that we will clean it up with this treatment. And while we turn around this manganese problem, we should get back to the 16, 16.5 million ounces of silver.

In terms of the base metals, well, it all depends on the copper production coming from Cerro Verde. But in the short term, we expect that our copper production attributable to Buenaventura should be in the order of 77,000 tons of copper and barely 46, 47,000 tons of zinc. So mainly this is our guidance.

Excellent. That's great color. And perhaps finally, you're talking about Mallay. When is that going to come on? Is that going to have an impact on these base metals or is it simply going to be replacement?

It is a smaller mine, initially at least. We are planning on having a floatation plant that will be 500 to 1,000 tons per day. It will not have a substantial impact, but it's a step in a different area, closer to Uchucchacua that will permit us to explore further and to expand our reserve base in base metals and in silver. Because we have an option to acquire some concessions from a company called Focus that is not far away from where we are going to start production and that will permit us to produce additional ounces of silver.

Okay, brilliant. Many, many thanks. I'll get out of the way now. Congratulations.

Thank you.

Your next question comes from Felipe Hirai with Bank of America/Merrill Lynch.

Hi, good morning everyone. Congratulations on the results. So, Carlos, if you could just repeat what was the expected copper production for the year or if you could just explain to us a little bit more on what happened in the fourth quarter that your copper production was much higher? If this was just a one-off or what should we expect for 2011? And my second question would be on your reserves numbers, which is could you give us the gold price that you used to calculate the reserves? And if you could give us any idea of your resources [azimuth] as well? Thank you.

Well, Felipe, regarding our copper production attributable to Buenaventura, I mentioned 77,000 tons. This is mainly -- well our equity share of Cerro Verde's production, plus El Brocal production. Our 46% economic interest in El Brocal. As you know, and we reported, El Brocal produced during the fourth quarter, 100% of our copper ores and will continue producing copper ores 100% capacity during the first quarter and eventually up to April. We'll continue [treating] in the order of 4,000 tons per day throughput of copper ores until the year-end, while today is close to 8,000 tons per day. So this is mainly the source of this.

In terms of our reserves, it is important to point out, for those that review carefully the [exhibit] of our reserves, that there is [a] slow reduction in our silver level of reserves. It is important to mention that we do not count on the final reserves information of Cerro Verde, which includes an important amount of silver. So this is why somebody could find that there was [a] reduction in silver reserves report, but we don't count on an official figure. Regarding the calculation of reserves, I will prefer to pass to Cesar, so eventually we can explain the way to calculate and the prices used for the calculation of reserves in Yanacocha in gold and so on.

Yes. Well, in terms of silver, in addition to the Buenaventura operations, we have the -- an important contribution from Yanacocha. There's a one-to-one relationship in production. Historically there's been 30 million ounces of gold produced and 30 million ounces of silver. So I suppose, I guess, the estimate is that another 1.5 million ounces of silver were produced from Yanacocha this year. In February, in Cerro Verde, sorry, Carlos, I'm not conversant with silver in Cerro Verde, how much of that is recovered. I need to look it up.

No problem. Maybe it's important, the contribution of Cerro Verde. Yes. And the fact is that we did not include this amount that this is [quite] (multiple speakers) we have reduced. But it's something that we have to ask. And we do not -- did not report any information of Cerro Verde. And this is why, you can appreciate that, a reduction of silver reserves in total. Regarding gold?

Regarding gold, we are using US$1,050 per ounce, for calculating reserves and important -- the most significant figure, I think, in our annual report is that we have increased the NRMs. NRMs, for the first time, shows 2.5 million ounces from Chucapaca. This is a significant addition. And in the next few years, we should add that to reserves. That's the main comment.

The thing is, the prices that we use for reserves are given by the regulations of the Securities and Exchange Commission and it's the average price for the last three years. So it is not a question that we decide which price we use, but we use the average price for the last three years.

Okay. That's great. And just to confirm, the 2.5 million ounces of NRM for Chucapaca would be your equity stake in Chucapaca, right? 100% owned?

Yes. Yes. Yes. Yes. That's it.

Okay.

It's 5.67 million resource as of the end of the year, but increasing. And we should come out with a resource figure later on.

Okay. That's great. Thank you.

Your next question comes from Carlos de Alba of Morgan Stanley.

Thank you very much. I just have a question on the cost performance of Yanacocha. I know that some rain affected the operations in the fourth quarter. But can you talk a little bit about what the expectations are for 2011? And also if you can give us some more details on Conga? If Conga were to [expand]? And to what extent that can increase the production of Yanacocha, you're closer to 1.5 or above 1.5 million ounces per year?

Here is Carlos. Well, regarding the cash costs applicable to sales, as we call in Yanacocha's reports, was basically related to the weather conditions. You know there was a very heavy rainy season during the last quarter, especially in December, that affected not only the stability of La Quinua wall, which is the technical issue.

Secondly, the roads were very wet, so we had to reduce the speed to move the -- our [products] and of course that affected the line -- so the whole state of the operation. So we reduced the volumes moved due to this. Of course, we have an important fixed cost in terms of this equipment moving and operating and consuming fuel oil and the labor costs as well. So this affected, dramatically, our cash costs.

We expect, as Newmont has reported, that the cash cost guidance for Yanacocha should be closer to US$500 per ounce during the year 2011. And we expect to turn around completely this issue of La Quinua. If we turn around this problem, we should be closer to 1.4 to 1.5 million ounces in the future. Otherwise, well the conservative figure given by Newmont is what is going to happen.

Regarding Conga, we continue working on the feasibility study. We expect, there has been offered, to counter the full -- the feasibility study, by -- in July in order to make a final and official decision while we believe that the no return point has been already surpassed. But officially we have to work on this matter from June or July onwards. With this, of course, we expect to get back to the levels of 1.5 million ounces as a normal, flat production.

And, Carlos, sorry, when -- so the feasibility study should be done by June, July and then when is the earliest that you can start producing there?

We will start producing by 2014. That is the proposed date.

Thank you. Thank you, Roque. And just final question, any updates on Quillish? Is that -- if and when that operation is back into your reserves, it will have a significant impact?

We are -- we don't have any date or any idea in this respect. We continue working on the social front, but there is nothing to report at this point in time.

Alright. Thank you very much.

(Operator Instructions). And your next question comes from Alex Hacking of Citigroup.

Thanks. Good morning. Thanks for taking my questions. Just coming back, quickly, to Chucapaca, you mentioned targeting production possibly by 2015. Do you have a sense yet for the size of initial production? Are you still considering to start with something smaller and then working to expand it over time? Or is there a possibility to start with a more substantial mine?

And then just quickly, a second question, regarding copper production at El Brocal. I think it was around 10,000 tons in the quarter. I know you discussed this earlier, but I guess I missed it. How sustainable is that kind of run rate? Or was it only really achievable, considering using stockpiles of ore? Thanks.

Well [is just] regard on Chucapaca the scoping study carried out so far, it cares for a 40,000 ton per day operation, open pit, 3.5 stripping ratio and close to two grams per ton in sulfides, which will produce in the order of 500,000 ounces a year.

However, we are working on a feasibility study, which should be ready by the end of this year, you will get the final figures then. Because drilling at the moment is very intensive, 12 rigs at one site and drilling 10,000 meters a month. And the figures we have all seen and I'm quoting are from May last year. So there is going to be a resource growth, significant growth in resource, and that growth really claim for a new scale -- maybe a new scale of production. So official figures are the ones I mentioned, but the resource is growing and we need to complete the drilling to bring this to reserves and get you with a full-fledged feasibility by the end of the year or early next year.

Regarding the copper production in El Brocal, what was mentioned is that we should repeat the level of production of copper during the first quarter of this year at the level of 10,000 tons of copper, like it was in the last quarter of year 2010. From -- and you have to bear in mind that these productions come from part of Marcapunta Norte production, part from Tajo Norte's operation, the area with higher grades of copper, plus an old stockpile of copper that was exploited during the year 2008 and 2009. Sorry, 2009 and 2010.

But while we complete this campaign in the end of March or April, we should get back to the level of 4,000 tons per day throughput of copper already from Marcapunta that will permit to produce in the order of 4 -- 5,000 tons of copper quarterly.

Thank you. Very helpful. And congratulations, again, on the good results. And congratulations to Mr. Benavides Senior on his retirement. Thanks.

(Operator Instructions). And our next question comes from Imaru Casanova of MLV.

Hi. Actually, all my questions have been answered at this stage. Thank you.

Our next question comes from Carlos de Alba of Morgan Stanley.

Yes. Thank you. Just if you can give us, please, an update on your CapEx plans for this year and perhaps next year? And also, some guidance in terms of your cash costs or cost of sales for silver and gold in 2011? Thank you.

Yes. Carlos, our CapEx for year 2011 is of US$200 million, which includes basically the completion of Tantahuatay projects, the investments in Breapampa, Mallay, the manganese sulphate plant, the hydro-electrical plant and -- well and the expenses that basically the replacement equipment and enhancing certain operations in Buenaventura.

We expect to repeat this level of CapEx in year 2012, when we should complete, mainly the hydro-electrical plant, which is the largest part -- I'm sorry, I was missing the information of our equity share of the CapEx in El Brocal, which is part of this US$200 million CapEx. But mainly the same components will be part of the CapEx in year 2012. That was your question. There was a second one?

Yes, cost guidance for your direct operations, gold and silver, Carlos, if you may?

Yes. So in our direct operations, the guidance, in average, will be on the order of US$450 per ounce. This is our cash operating costs, no? Mainly led by Orcopampa's production -- cash operating costs that compensates certain other operations. You can see that in the case of Poracota, for instance, we'll report a cash operating cost of US$900 to US$1,000 per ounce. This is true. But you have to bear in mind that Poracota had no important CapEx due to uses, the metallurgical facilities of Orcopampa. So we have to compensate this with the transportation costs. In terms of cash operating costs for silver, we expect to reduce some our cash costs to the level of -- to -- well something between [10 to 12] that should improve once we complete our manganese sulfate plant.

And when do you expect the completion of the manganese plant?

This will be ready beginning year 2012.

Alright. Thank you, Carlos.

(Operator Instructions). And at this time, I'm showing no further questions. I'll turn the conference back over to Roque Benavides for any remarks.

May I just ask Mr. Alberto Benavides to take the word and give you a message?

Well, thank you very much to all of you for attending this conference and have followed Buenaventura with interest during these last few years. And we're now 50 years in the New York Stock Exchange and even more in the Lima Stock Exchange. So we're very happy to be in that position and we thank you for your collaboration on all this.

Well, it was 57 years ago, in 1953 when we founded Buenaventura with a capital of US$200,000 and a loan from the Cerro de Pasco Corporation on advance of minerals. What is more impressive, probably, is that we started with this little mine in Julcani producing 100 tons a day of minerals, of ore, 100 tons. And we have managed this through the reinvesting our profits. It has been one of the sacred things in Buenaventura. We have been reinvesting about 80% or even more of our profits and this is the way we have grown. And I am confident that the management will continue with this policy.

We are strictly in the mining industry and we want to remain so. We are going to be in the mining end and develop as much as we can here in Peru and also in terms of other Latin American countries, where we can take not only our capital that we can put out, but also our know-how, our experience of this will be there in years. I think that we have experience in both now.

The underground mines, the small mines, and we also have experience in the bigger ones. Because we have not been so dumb not to learn from the big ones, like Yanacocha and Cerro Verde. So we're now prepared to attack both ends, the underground and the open pit larger mines. So I'm sure that the management of Buenaventura will continue to do so and I am going to be around here. I don't know how long, but I'm now 90 years old and I thought that I should really step down and let other people worry about Board meetings and shareholder meetings and whatnot.

But you can be sure that I am going to keep a very close eye on the mining industry in general and in particularly on the developments of Buenaventura. So in saying these words, I want to thank you again for all -- for your interest and I'm sure that we'll run into each other again in the near future. Thank you.

Thank you very much for attending this conference and you have been privileged to listen to Mr. Alberto Benavides himself. So thank you and we will be attending the Bank of Montreal conference and we will have a luncheon at the New York Stock Exchange next Friday and hope to see you all there. Thank you for attending this conference.

And, ladies and gentlemen, that concludes the Buenaventura Fourth Quarter 2010 Earnings Conference Call. We appreciate your time. You may now disconnect.