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, announced
today results for the third quarter (3Q14) and Nine-month (9M14)
periods ended October 30, 2014. All figures have been prepared in
accordance with IFRS (International Financial Reporting Standards)
on a non GAAP basis and are stated in U.S. dollars (US$).
Third Quarter 2014 Highlights:
- EBITDA from direct operations was
US$83.9 million in 3Q14 confirming the positive trend announced
earlier this year.
- Net Income increased 20% (US$78.3
million vs US$65.2 million) compared to 3Q13. This result included
a US$59.9 million non-cash income from the Canteras del Hallazgo
(Chucapaca project) acquisition.
- Yanacocha’s gold production began its
ramp up in 3Q14 to 250K ounces, in line with mining plan to reach
guidance of 895k - 985k ounces.
- Total attributable production was 217K
gold ounces and 5.2 million silver ounces (compared to 228K gold
ounces and 4.9K million silver ounces in 3Q13).
- At Tambomayo project, Buenaventura
expects approval of Environmental Impact Assessment (EIA) and
construction permits by the end of 2014.
- At La Zanja, drifting activities
continue to confirm approximately 350K gold ounces in Alejandra
underground deposit.
- El Brocal plant is expected to operate
at 18K TPD by December this year.
- At Chucapaca project, permits for
advanced explorations with underground development will start as
soon as the surface property acquisition is completed.
- Cerro Verde’s plant expansion to 360K
TPD is in-line with schedule and budget. Production from this
expansion is expected by 2016.
Financial Highlights (in millions
of US$, except EPS figures):
3Q14
3Q13 Var% 9M14
9M13 Var% Total Revenues
317.6 345.8
-8% 904.7 986.3
-8% Operating Income 26.2
64.6
-60% 54.2 121.5
-55%
EBITDA Direct Operations 83.9 103.5
-19% 210.6 231.4
-9%
EBITDA Including Affiliates 200.8 237.6
-15% 444.3 666.4
-33%
Net Income 78.3 65.2
20%
85.3 187.8
-55% EPS
0.31 0.26
20% 0.34 0.74
-55%
(*) as of October 30, 2014, Buenaventura had 254,186,867
outstanding shares.
Operating Revenues
During 3Q14, net sales were US$308.1 million, an 8% decrease
compared to the US$335.3 million reported in 3Q13. This was
explained by the lower provisional pricing for lead-silver and
zinc-silver concentrates.
Royalty income decreased 10%, to US$9.5 million in 3Q14 compared
to the US$10.5 million reported in 3Q13. This was due to lower
revenues at Yanacocha (10% lower QoQ).
Operating Highlights 3Q14
3Q13 Var% 9M14
9M13 Var% Net Sales
(in millions of US$)
308.1 335.3
-8% 879.8
949.3
-7% Average Realized Gold Price
(US$/oz)* 1,273 1,335
-5%
1,285 1,428
-10% Average Realized
Gold Price (US$/oz) inc. Affiliates 1,274
1,331
-4% 1,284 1,458
-12% Average Realized Silver Price (US$/oz)*
19.59 20.71
-5% 19.70
22.60
-13% Average Realized Lead Price
(US$/MT)* 2,209 2,087
6%
2,154 2,095
3% Average Realized
Zinc Price (US$/MT)*
2,369 1,868
27% 2,248
1,867
20% Average Realized Copper Price
(US$/MT)* 6,864 7,155
-4%
6,789 7,175
-5%
(*) Buenaventura’s Direct Operations
Volume Sold 3Q14 3Q13
Var% 9M14 9M13
Var% Gold Oz Direct Operations 118,822
115,824
3% 337,050 357,097
-6% Gold Oz inc Associated Companies
240,416 245,448
-2% 656,749
765,841
-14% Silver Oz
4,867,652 4,482,882
9% 14,013,267
12,387,187
13% Lead MT
4,847 6,122
-21% 13,350 20,741
-36% Zinc MT 5,157 9,438
-45% 11,271 30,281
-63%
Copper MT 10,625 7,670
39% 29,812 17,159
74%
For the nine-month period of 2014, net sales decreased 7% from
US$949.3 million in 9M13 to US$879.8 million in 9M14. Royalties
decreased 33% (US$25.0 million in 9M14 vs US$37.0 million in
9M13).
Production and Operating Costs
In 3Q14, Buenaventura’s gold equity production from direct
operations decreased 6%, mainly due to lower production in
Orcopampa. Gold production including associated companies decreased
5% due to lower production from Yanacocha. Silver equity production
from direct operations increased 31%, mainly due to higher
production in Uchucchacua and El Brocal. Silver production
including associated companies increased 6%.
Equity Production 3Q14
3Q13 Var% 9M14
9M13 Var%
Gold Oz Direct
Operations1
93,484 99,966
-6% 275,834
303,639
-9% Gold Oz inc Associated
Companies 217,308 227,589
-5% 600,661 711,022
-16%
Silver Oz Direct Operations1 4,970,262
3,795,849
31% 13,512,791
10,666,782
27% Silver Oz inc Associated
Companies 5,203,846 4,930,336
6% 14,080,684 14,101,919
0%
Lead MT 5,149 5,977
-14%
14,215 19,580
-27% Zinc MT
5,163 6,842
-25% 13,530
27,076
-50% Copper MT Direct
Operations1 6,435 4,542
42% 17,792 9,897
80% Copper
MT inc Associated Companies 16,865 17,546
-4% 51,255 45,815
12%
1 Direct Operation production includes 100% of Buenaventura’s
operating units, 53.06% of La Zanja and 54.07% of El Brocal.
Orcopampa’s (100% owned by Buenaventura) total
gold production in 3Q14 was 52,317 ounces, 11% lower than the
59,086 ounces reported in 3Q13, due to the depletion of the old
tailing gold ounces. Cost Applicable to Sales (CAS) in 3Q14 was
US$728/oz of gold, 5% lower compared to 3Q13 (US$765/oz.). The
lower cost was mainly explained by a decrease in reagent (cyanide
and peroxide) consumption and prices.
At Uchucchacua (100% owned by Buenaventura), total
silver production in 3Q14 was 3.3 million ounces, 13% higher than
the 2.9 million ounces reported in 3Q13, mainly due to higher ore
grade and recovery rate (see Appendix 2). Zinc production in 3Q14
was 1,800 MT, 12% lower than the figure reported in 3Q13 (2,055
MT), while lead production decreased 11% (2,115 MT in 3Q14 vs.
2,371 MT in 3Q13). Cost Applicable to Sales (CAS) in 3Q14 was
US$15.23/oz of silver, an increase of 3% compared to 3Q13
(US$14.82/oz.) mainly explained by higher contractor expenses due
to an increase in supporting and hauling activities.
At Mallay (100% owned by Buenaventura), total production
in 3Q14 was 307,523 ounces of silver, 12% lower than in 3Q13
(348,626 ounces) due to lower ore volume treated and silver grade.
Cost Applicable to Sales (CAS) in 3Q14 was US$14.21/oz of silver, a
decrease of 4% compared to US$14.76/oz in 3Q13 due to higher zinc
commercial deductions.
At Julcani (100% owned by Buenaventura), total production
in 3Q14 was 774,728 ounces of silver in-line with 3Q13 production
(779,776 ounces). Cost Applicable to Sales (CAS) in 3Q14 was
US$15.11/oz of silver, 3% higher than 3Q13 (US$14.69/oz), mainly
explained by higher contractor expenses due to productivity
bonus.
Breapampa’s (100% owned by Buenaventura) total production
in 3Q14 was 19,473 ounces of gold, 3% lower when compared to the
figure reported in 3Q13 (20,138 ounces). CAS in 3Q14 was US$386/oz
of gold, 19% lower than the US$476/oz in 3Q13, due to a better
stripping ratio (0.38 in 3Q14 vs 0.71 in 3Q13).
La Zanja’s (53.06% owned by Buenaventura) total
production in 3Q14 was 36,143 ounces (19,177 ounces attributable to
Buenaventura) of gold in-line with the production in 3Q13 (35,693
oz or 18,939 ounces attributable to Buenaventura). CAS in 3Q14 was
US$549/oz of gold, 3% lower than 3Q13 (US$566/oz.), due to a
reduction in reagent consumption and price (lime and cyanide). It
is important to mention that the Company’s exploration efforts are
now focused on the Alejandra underground project.
Tantahuatay’s (40.10% owned by Buenaventura) total
production in 3Q14 was 37,281 ounces of gold (14,948 oz
attributable to Buenaventura) 6% lower than the figure reported in
3Q13 (39,561 oz, 15,864 attributable to Buenaventura). CAS in 3Q14
was US$423/oz of gold, 28% lower than in 3Q13 (US$585/oz.), due to
lower exploration expenses (land surface acquisition).
At El Brocal (54.07% owned by Buenaventura),
copper production was 11,764 MT vs. 8,244 MT reported in 3Q13 (43%
increase). Silver production was 0.6 million ounces 33% higher than
the 0.4 million ounces reported in 3Q13. Zinc production in 3Q14
was 1,522 MT, 28% lower than the 2,117 MT reported in 3Q13. Copper
CAS was US$5,025/MT in 3Q14, a decrease of 9% compared to
US$5,531/MT in 3Q13, due to the higher production. Zinc CAS was
US$1,320/MT, 9% lower than the US$1,449/MT reported in 3Q13.
General and Administrative Expenses
General and administrative expenses in 3Q14 were US$23.9
million, 24% higher when compared with the figure reported in 3Q13
(US$19.3 million) due to a US$1.9 million credit in the long term
compensation provision in 3Q13.
Exploration in Non-Operating Areas
Exploration in non-operating areas during 3Q14 was US$7.2
million compared with a US$5.7 million reported in 3Q13. During the
period, Buenaventura’s main exploration efforts were focused on the
following projects: La Zanja Underground (US$4.0 million) and
Tambomayo (US$3.5 million). For the nine-month 2014 period, the
expense was US$32.4 million (US$23.4 million in 9M14).
Delineation of the Natalia and Camila ore-shoots at the Yumpag
prospect, located 4 km northeast of the Uchucchacua mine, has shown
important results for floatable ore. As of September, we have
identified 300,000 MT indicated and inferred resources with 24 oz/t
of silver, 15 % of manganese, 1% of lead and 2% of zinc.
At La Zanja, the underground drifting of the 3400 mine level has
advanced and started to crosscut into the 400 m long and 2.0 m
average thickness Alejandra vein. Sixteen positive drilling
intercepts have enabled an indicated and inferred resource estimate
of 700,000 MT with 15.6 g/t of gold and 220 g/t of silver mostly in
oxide and transitional materials. The initial channel samples of
the Alejandra vein have shown an average thickness and grade of 2.1
m@ 29.7 g/t Au & 63.0 g/t Ag over a strike length of 15 m.
Significant additional potential remains open, not only at depth
for copper, gold and silver sulfides, but also laterally for
oxidized ore.
Share in Associated Companies
During 3Q14, Buenaventura’s share in associated companies was
US$23.6 million, 42% lower when compared to the US$40.9 million
reported in 3Q13, composed by:
Share in the Result of 3Q14 3Q13 Var%
9M14 9M13 Var% Associates (in millions of
US$)
Cerro Verde 14.9
33.6
-56% 57.1 81.6
-30% Coimolache
(Tantahuatay mine)
6.3 4.9
29% 17.2
15.1
14% Yanacocha 2.3 2.4
-2% (35.0) 77.2
-145%
Other smaller investments 10.0 0.0
NA 9.0 0.0
NA Total
23.6 40.9
-42% 39.2
173.8
-77%
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), during 3Q14, gold
production was 249,429 ounces of gold, 3% lower than 3Q13
production (256,038 oz). For the nine-month period 2014, gold
production was 647,635 ounces, 22% lower than 832,941 ounces in
2013. This production was in-line with the mining plan. As such,
guidance for 2014 remains at between 895k – 985k ounces.
Net income was a US$5.3 million compared to US$5.5 million in
3Q13, driven by a US$9.2 million write-down of leach pad inventory.
EBITDA totaled US$158.0 million in 3Q14, a 9% increase compared to
3Q13 (US$145.2 million). For 9M14, net income was a negative
US$80.3 million (compared to a positive US$176.8 million in 9M13)
and EBITDA was US$170.0 million (compared to US$584.2 million in
9M13).
Capital expenditures at Yanacocha were US$36.0 million in 3Q14
(US$85.7 million in 9M14).
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), during 3Q14
copper production was 53,268 MT (10,430 MT attributable to
Buenaventura), a 20% decrease compared to 3Q13 (66,416 MT and
13,004 MT attributable to Buenaventura). For the first nine-month
period of 2014, copper production was 170,906 MT (33,463 MT
attributable to Buenaventura).
During 3Q14, Cerro Verde reported net income of US$85.3 million,
50% lower compared to US$171.4 million in 3Q13. This was mainly due
to 27% lower sales. EBITDA totaled US$178.5 million in 3Q14, a 40%
decrease compared to 3Q13 (US$295.6 million). For 9M14, net income
was US$321.7 million (compared to US$416.5 million in 9M13) and
EBITDA was US$627.5 million (compared to US$725.8 million in
9M13).
Capital expenditures at Cerro Verde were US$463.8 million in
3Q14 and US$1,301 million in 9M14.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), attributable
contribution to the net income in 3Q14 was US$6.3 million (US$4.9
million in 3Q13). For 9M14, the contribution was US$17.2 million,
compared to US$15.1 million reported in 9M13.
Net Income
Buenaventura’s 3Q14 net income was US$78.3 million (US$0.31 per
share), a 20% higher when compared to US$65.2 million (US$0.26 per
share) reported in 3Q13. This was explained by a US$59.9 million
income related to the Canteras del Hallazgo acquisition. For 9M14,
net income was US$85.3 million (US$0.34 per share), 55% lower than
the US$187.8 million (US$0.74 per share) reported in 9M13.
Project Development and Exploration
Tambomayo Project (100% ownership)
Advanced exploration and mine development at Tambomayo has so
far required US$ 35 million for surface – right acquisition,
underground ore-shoot delineation, the ongoing Environmental Impact
Study and the permitting process for construction. Measured and
indicated resources are 1.6 million MT with 13.6 g/t of gold, 9.2
oz/t of silver, 2.1% of lead and 3.0% of zinc with 3.5 m average
vein widths.
Chucapaca Project (100% ownership)
After acquiring the 100% of Chucapaca project, Buenaventura
reached an agreement with the Santiago de Oyo Oyo community to
purchase 1,380 hectares of surface rights. The legal completion of
this agreement will be announced in due time. Permits for advanced
exploration with underground development of the Canahuire ore
bodies and diamond drilling of other prospects will start as soon
as the surface property is firmed up by the Company. We expect to
begin diamond drilling the Pachacutec oxide gold prospect in April
2015 and underground development of Canahuire in July 2015.
Other
At the Board of Directors meeting held October 30, 2014, the
following resolutions were passed:
- Declaration of a cash dividend for
US$0.023 per share / ADS, payable on November 28, 2014.
- Acceptance of the resignation of Mr.
Francois Muths, as Vice President Operations. The Company
appreciates his very important contribution after 40 years in
Buenaventura.
- Appointment of Mr. Igor Gonzales as
Vice President of Operations, effective November, 1, 2014. Mr.
Gonzales is a Chemical Engineer from San Antonio Abad University.
He was Vice President and General Manager of Pierina Mine in Peru,
President of Barrick South America, and Chief Operating Officer of
Barrick Gold Corporation and worked for Southern Peru Copper
Corporation Peru. Mr. Gonzales will continue to be a Board
Member.
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*, Breapampa*, Mallay*, Julcani*,
Recuperada*, El Brocal, La Zanja and Coimolache and is developing
the Tambomayo and Chucapaca projects.
The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership
with Newmont Mining Corporation), an important precious metal
producer; 19.58% of Sociedad Minera Cerro Verde, an important
Peruvian copper producer.
For a printed version of the Company’s 2013 Form 20-F, please
contact the investor relations contacts on page 1 of this report,
or download the PDF format file from the Company’s web site at
www.buenaventura.com.
(*) 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.
**Tables to follow**
APPENDIX 1
Equity Participation in Subsidiaries and
Affiliates (as of September 30, 2014) BVN
Operating Equity %
Mines / Business Minera La Zanja S.A*
53.06 La Zanja Sociedad Minera El Brocal
S.A.A* 54.07 Colquijirca and Marcapunta
Canteras del Hallazgo S.A * 100.00
Chucapaca project Compañía Minera Coimolache S.A **
40.10 Tantahuatay Minera Yanacocha S.R.L **
43.65 Yanacocha Sociedad Minera Cerro Verde
S.A.A ** 19.58 Cerro Verde Processadora
Industrial Rio Seco S.A* 100.00 Rio
Seco chemical plant Consorcio Energético de Huancavelica S.A*
100.00 Energy – Huanza Hydroelectrical
plant Buenaventura Ingenieros S.A* 100.00
Engineering Consultant (*)Consolidates (**) Equity
Accounting
APPENDIX 2
GOLD PRODUCTION Three Months Ended
Sep 30 Nine Months Ended Sep 30
Orcopampa Orcopampa Old Tailings Orcopampa
Orcopampa Old Tailings 2014 2013 %
2014 2013 % 2014 2013 %
2014 2013 % Ore Milled DMT 119,748 116,724
3% 0 123,769
- 338,832 344,444
-2% 0 377,513
- Ore Grade OZ/MT 0.44 0.48
-8% 0.000 0.05
-
0.45 0.49
-9% 0.000 0.05
- Recovery Rate % 97.6%
96.7%
1% 0.0% 78.0%
- 97.1% 96.0%
1% 0.0%
76.1%
- Ounces Produced 52,317 54,228
-4% 0 4,858 - 147,349
162,793 -9% 0 13,761 -
Orcopampa Total Production 3Q14 52,317
3Q13
59,086
9M14 147,349
9M13 176,554
La Zanja Tantahuatay 3Q14 3Q13 %
9M14 9M13 % 3Q14 3Q13 %
9M14 9M13 % Ounces Produced
36,143 35,693 1% 108,765 103,944
5% 37,281 39,561 -6% 105,085
109,250 -4%
Breapampa 3Q14 3Q13 % 9M14
9M13 % Ounces Produced 19,473
20,138 -3% 61,629 59,964 3%
SILVER PRODUCTION Three Months Ended
Sep 30 Nine Months Ended Sep 30 Uchucchacua
Colquijirca Uchucchacua Colquijirca
2014 2013 % 2014 2013 %
2014 2013 % 2014 2013 %
Ore Milled DMT 267,963 266,741
0% 64,636 120,709
-46%
725,664 762,712
-5% 64,636 1,069,896
-94% Ore Grade
OZ/MT 14.68 13.65
8% 2.32 0.97
139% 14.85 13.86
7% 2.32 1.14
104% Recovery Rate % 83.7% 80.2%
4% 75.2% 64.7%
16% 80.4% 81.1%
-1% 75.2% 65.8%
14% Ounces Produced 3,293,830 2,920,872
13% 112,446 78,155 44% 8,659,942
8,572,792 1% 112,446 800,801
-86%
ZINC PRODUCTION Three Months
Ended Sep 30 Nine Months Ended Sep 30 Uchucchacua
Colquijirca Uchucchacua Colquijirca
2014 2013 % 2014 2013 %
2014 2013 % 2014 2013 %
Ore Milled DMT 267,963 266,741
0% 64,636 120,709
-46%
725,664 762,712
-5% 64,636 1,069,896
-94% Ore Grade %
1.10% 1.22%
-10% 3.38% 2.93%
15% 1.09% 1.20%
-9% 3.38% 2.89%
17% Recovery Rate % 61.2% 63.3%
-3% 69.8% 58.8%
19% 61.1% 65.2%
-6% 69.8%
64.3%
8% MT Produced 1,800 2,055
-12% 1,522 2,117 -28% 4,845
5,992 -19% 1,522 19,898 -92%
APPENDIX 3: EBITDA Reconciliation (in
thousand US$)
3Q14 3Q13
9M14 9M13 Net Income 80,599
74,649 102,801 208,324
Add / Substract:
3,297 28,892
107,813 23,082 Provision for income tax, net
24,276 30,249 42,092 73,194
Share in associated companies by the equity method, net
-23,553 -40,866 -39,242 -173,840
Interest income -60,489 -697 -64,137
-2,353 Interest expense 1,093 1,157
7,683 9,510 Loss on currency exchange difference
4,225 106 4,989 6,709 Long Term
Compensation provision 0 -1,919 1,925
-20,446 Depreciation and Amortization 55,928
38,656 151,837 122,171 Workers´ participation
provision 1,817 2,206 1,872
8,137 Impairment of long-term lived assets 0 0
794 0
EBITDA Buenaventura Direct Operations
83,896 103,541
210,614 231,406 EBITDA Yanacocha
(43.65%) 68,980 63,389 74,216
255,004
EBITDA Cerro Verde (19.58%)
34,957 57,874 122,873 142,121
EBITDA
Coimolache (40.10%) 12,961 12,761
36,610 37,902
EBITDA Buenaventura + All Associates
200,794 237,565
444,312 666,433
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings
before net interest, taxes, depreciation and amortization, share in
associated companies, net, loss on currency exchange difference,
other, net, provision for workers’ profit sharing and provision for
long-term officers’ compensation.
EBITDA (including Associated companies) consists of EBITDA
(Buenaventura Direct Operations), plus (1) Buenaventura’s equity
share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of
EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of
EBITDA (Coimolache). All EBITDA mentioned were similarly calculated
using financial information provided to Buenaventura by the
associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations)
and EBITDA (including affiliates) to provide further information
with respect to its operating performance and the operating
performance of its equity investees, the affiliates. EBITDA
(Buenaventura Direct Operations) and EBITDA (including affiliates)
are not a measure of financial performance under IFRS, and may not
be comparable to similarly titled measures of other companies. You
should not consider EBITDA (Buenaventura Direct Operations) and
EBITDA (including affiliates) as alternatives to operating income
or net income determined in accordance with IFRS, as an indicator
of Buenaventura’s, affiliates operating performance, or as an
alternative to cash flows from operating activities, determined in
accordance with IFRS, as an indicator of cash flows or as a measure
of liquidity.
APPENDIX 4
Compañía de Minas Buenaventura S.A.A. and
Subsidiaries Consolidated Statement of Financial
Position As of September 30, 2014 and December 31, 2013
2014 2013 Assets US$(000)
US$(000)
Current assets Cash and cash equivalents 120,027 61,898
Trade and other accounts receivable, net 280,225 252,962 Income tax
credit 49,168 37,370 Prepaid expenses 13,019 14,597 Hedge
derivative financial instruments 3,775 - Embedded derivatives for
concentrate sales, net - 1,857 Inventory, net 152,160
175,719
Total current assets 618,374 544,403
Non-current assets Trade and other accounts
receivable, net 24,178 28,079 Long-term inventory 43,247 23,366
Investment in associates 2,344,401 2,358,410 Mining concessions,
development costs, property, plant and equipment, net 1,726,712
1,515,460 Investment properties 11,341 - Deferred income tax asset
65,912 83,525 Other assets, net 3,153 7,132
Total
non-current assets 4,218,944 4,015,972
Total assets 4,837,318
4,560,375 Liabilities and shareholders’ equity
Current liabilities Overdraft and bank loans 40,504 - Trade
and other accounts payable 252,472 301,811 Provisions 66,946 69,800
Income tax payable 2,849 2,140 Hedge derivative financial
instruments - 1,093 Embedded derivatives for concentrate sales, net
7,094 - Financial obligations 56,531 11,370
Total current
liabilities 426,396 386,214 Non-current
liabilities Financial liability at fair value through profit or
loss 23,026 Trade and other accounts payable 15,905 12,229
Provisions 95,555 106,376 Financial obligations 324,652 223,027
Deferred income tax liability 22,363 -
Total non-current
liabilities 481,501 341,632
Total liabilities 907,897 727,846
Shareholders’ equity Issued capital, net of treasury
shares for US$(000)62,665 750,497 750,497 Investment shares, net of
treasury shares for US$(000)765 1,396 1,396 Additional paid-in
capital 219,055 219,055 Legal reserve 162,688 162,663 Other
reserves 269 269 Retained earnings 2,503,753 2,421,238 Other equity
reserves 1,745 104
3,639,403 3,555,222
Non-controlling interest 290,018 277,307
Total
shareholders’ equity 3,929,421 3,832,529
Total liabilities and shareholders’
equity 4,837,318 4,560,375
Compañía de Minas Buenaventura S.A.A. and
Subsidiaries Consolidated Statement of Income For the
three and nine-month periods ended September 30, 2014 and 2013
For the three-month period For the
nine-month period ended September 30, ended September
30, 2,014 2,013 2,014
2,013 US$(000) US$(000) US$(000)
US$(000) Operating income Net sales 308,088 335,283
879,766 949,255 Royalty income 9,532 10,538
24,956 37,033
Total operating
income 317,620 345,821 904,722 986,288
Operating
costs Cost of sales, without considering depreciation and
amortization (161,255 ) (163,212 ) (453,848 ) (494,486 )
Exploration in operating units (25,744 ) (39,140 ) (79,379 )
(135,190 ) Depreciation and amortization (55,928 ) (38,656 )
(151,837 ) (122,171 ) Mining royalties (7,377 ) (7,272 )
(21,857 ) (23,867 )
Total operating costs
(250,304 ) (248,280 ) (706,921 ) (775,714 )
Gross
profit 67,316 97,541 197,801
210,574
Operating expenses
Administrative expenses (23,946 ) (19,316 ) (75,763 ) (56,484 )
Exploration in non-operating areas (7,180 ) (5,686 ) (32,375 )
(23,361 ) Paralyzation of mining units (4,056 ) - (19,997 ) -
Selling expenses (4,338 ) (4,063 ) (13,122 ) (12,543 )
Contingencies 7,862 (2,083 ) (1,781 ) (4,476 ) Impairment of
long-term lived assets - - (794 ) - Other, net (9,507 )
(1,795 ) 217 7,834
Total operating
expenses (41,165 ) (32,943 ) (143,615 )
(89,030 )
Operating profit 26,151
64,598 54,186 121,544
Other income, net Share in the results of associates under
equity method 23,553 40,866 39,242 173,840 Financial income 60,489
697 64,137 2,353 Financial expenses (1,093 ) (1,157 ) (7,683 )
(9,510 ) Net loss from currency exchange difference (4,225 )
(106 ) (4,989 ) (6,709 )
Total other income,
net 78,724 40,300 90,707 159,974
Profit before income
taxes and non-controlling interest 104,875 104,898 144,893
281,518 Income taxes (24,276 ) (30,249 ) (42,092 ) (73,194 )
Net profit
80,599 74,649 102,801
208,324 Attributable to: Owners of the parent 78,336
65,166 85,312 187,751 Non-controlling interest 2,263
9,483 17,489 20,573 80,599
74,649 102,801 208,324
Basic and diluted earnings per share
attributable to owners of the parent, stated in U.S.
dollars 0.31 0.26 0.34
0.74
Weighted average number of shares
outstanding (common and investment), in units
254,186,867 254,186,867 254,186,867
254,186,867
Compañía de Minas
Buenaventura S.A.A. and Subsidiaries Consolidated Statement
of Cash Flows For the three and nine-month periods ended
September 30, 2014 and 2013 For the three-month
For the nine-month period period ended September
30, ended September 30, 2,014 2,013
2,014 2,013 US$(000) US$(000)
US$(000) US$(000) Operating activities
Proceeds from sales 322,657 291,083 856,391 1,039,480 Value Added
Tax (VAT) recovered - 25,399 39,685 59,106 Royalties received 6,724
13,646 22,148 39,824 Dividends received 2,484 712 6,926 7,776
Interest received 477 1,992 4,306 4,133 Payments to suppliers and
third-parties (131,594 ) (176,678 ) (519,735 ) (654,597 ) Payments
to employees (50,111 ) (66,545 ) (157,072 ) (170,277 ) Payment of
income tax (13,449 ) (11,392 ) (31,393 ) (66,380 ) Payment of
royalties (5,882 ) (10,497 ) (16,848 ) (27,991 ) Payment of
interest 80 (143 ) (5,373 ) (8,558 )
Net cash and cash equivalents provided by operating
activities 131,386 67,577 199,035
222,516
Investing activities
Proceeds from settlement of financial assets at fair value through
profit or loss - 40,000 - 40,000 Proceeds from collections of loans
to associates 5,095 5,530 15,553 20,494 Proceeds from sales of
mining concessions, property, plant and equipment 79 1,948 169
4,963 Proceeds from settlement of investment in shares - - - -
Acquisitions of mining concessions, development costs, property,
plant and equipment (108,027 ) (122,818 ) (241,983 ) (356,082 )
Acquisitions of investment properties - - (11,705 ) - Payment for
purchase of investments (80,373 ) - (80,373 ) - Associates loans
granted - - - - Contributions and investments in associates 732
(1,654 ) (820 ) (5,339 ) -
Net cash
and cash equivalents used in investing activities (182,494 )
(76,994 ) (319,159 ) (295,964 )
Financing activities Increase of bank loans 38,183 21,126
40,504 21,126 Increase in financial obligations 3,119 - 186,558
60,000 Payment of financial obligations (6,179 ) (41 ) (39,772 )
(142 ) Dividends paid - - (2,797 ) (76,269 ) Dividends paid to
non-controlling interest (2,040 ) (6,960 ) (6,240 ) (13,533 )
Purchase of associates' shares - - -
(462 )
Net cash and cash equivalents
provided by (used in) financing activities 33,083
14,125 178,253 (9,280 ) Net
increase (decrease) in cash and cash equivalents during the period
(18,025 ) 4,708 58,129 (82,728 ) Cash and cash equivalents at the
beginning of the period 138,052 99,276 61,898 186,712
Cash and cash equivalents at
period-end 120,027 103,984 120,027
103,984
APPENDIX 5: COST APPLICABLE TO SALES RECONCILIATION
Reconciliation of Costs Applicable to Sales and Cost
Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding
depreciation and amortization, plus Selling expenses. Cost
applicable to sales per unit sold for each mine consists of cost
applicable to sales for a particular metal produced at a given mine
divided by the volume of such metal produced at such mine in the
specified period. We note that cost applicable to sales is not
directly comparable to the cash operating cost figures disclosed in
previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit
of mineral sold are not measures of financial performance under
IFRS, and may not be comparable to similarly titled measures of
other companies. We consider Cost applicable to sales and Cost
applicable to sales per unit of mineral sold to be key measures in
managing and evaluating our operating performance. These measures
are widely reported in the precious metals industry as a benchmark
for performance, but do not have standardized meanings. You should
not consider Cost applicable to sales or Cost applicable to sales
per unit of mineral sold as alternatives to cost of sales
determined in accordance with IFRS, as indicators of our operating
performance. Cost applicable to sales and Cost applicable to sales
per unit of mineral sold are calculated without adjusting for
by-product revenue amounts.
The tables below set forth (i) a reconciliation of consolidated
Cost of sales, excluding depreciation and amortization to
consolidated Cost applicable to sales, (ii) reconciliations of the
components of Cost applicable to sales (by mine and mineral) to the
corresponding consolidated line items set forth on our consolidated
statements of profit or loss for the three and six months ended
June 30, 2013 and 2014, and (iii) reconciliations of Cost of sales,
excluding depreciation and amortization to Cost applicable to sales
for each of our mining units. The amounts set forth in Cost
applicable to sales and Cost applicable to sales per unit sold for
each mine and mineral indicated in the tables below can be
reconciled to the amounts set forth on our consolidated statements
of profit or loss for the three and six months ended June 30, 2013
and 2014 by reference to the reconciliations of Cost of sales,
excluding depreciation and amortization (by mine and mineral),
Selling Expenses (by mine and metal) expenses and Exploration in
units in operations (by mine and mineral) to consolidated Cost of
sales, excluding depreciation and amortization, consolidated
Selling Expenses and consolidated Exploration in units in
operations expenses, respectively, set forth below.
Set forth below is a reconciliation of consolidated Cost of
sales, excluding depreciation and amortization, to consolidated
Cost applicable to sales:
For the 3 months ended
Sep 30 For the 9 months ended Sep 30 2014
2013 2014 2013 (in thousands
of US$) Consolidated Cost of sales excluding depreciation and
amortization 161,255 163,212 453,848 494,486
Add:
Consolidated Exploration in units in operation 25,744 39,140 79,379
135,190 Consolidated Commercial deductions 51,285 41,020 130,199
118,548 Consolidated Selling expenses 4,338 4,063 13,122 12,543
Consolidated Cost applicable to sales 242,622
247,435 676,547 760,766 Set forth below
is a reconciliation of Cost of sales, excluding depreciation and
amortization (by mine and mineral) to consolidated Cost of sales:
For the 3 months ended Sep 30 For the 9 months
ended Sep 30 2014 2013 2014 2013
Cost of sales by
mine and mineral
(in thousands of US$) Julcani, Gold 5 32 -4 176 Julcani,
Silver 7,123 2,514 17,979 10,837 Julcani, Lead 534 196 1,471 846
Julcani, Copper 66 45 140 227 Mallay, Silver 2,021 2,286 6,142
9,285 Mallay, Lead 1,444 1,153 4,368 4,974 Mallay, Zinc 2,285 1,258
5,451 5,180 Breapampa, Gold 8,248 9,347 27,119 37,390 Breapampa,
Silver 472 546 1,771 2,315 Orcopampa, Gold 26,435 30,376 79,687
97,771 Orcopampa, Silver 808 1,030 2,306 3,742 Uchucchacua, Silver
29,854 29,108 97,122 83,176 Uchucchacua, Lead 1,906 2,243 5,818
5,751 Uchucchacua, Zinc 1,424 1,449 4,001 4,301 La Zanja, Gold
20,417 20,787 58,632 62,899 La Zanja, Silver 802 885 2,549 2,840 El
Brocal, Gold 1,220 786 2,508 2,262 El Brocal, Silver 2,733 2,921
8,459 9,685 El Brocal, Lead 508 975 904 6,275 El Brocal, Zinc 901
3,630 970 14,183 El Brocal, Copper 23,726 22,892 71,394 57,115
Other Small Units, Gold 60 401 2,656 11,967 Other Small Units,
Silver 2 1,618 565 4,463 Other Small Units, Lead 0 1,089 342 2,102
Other Small Units, Zinc 1 1,380 542 2,584 Non Mining Units 28,260
24,265 50,957 52,142
Consolidated Cost of sales, excluding
depreciation and amortization 161,255 163,212
453,848 494,486 Set forth below is a
reconciliation of Exploration expenses in units in operation (by
mine and mineral) to consolidated Exploration expenses in mining
units:
For the 3 months ended Sep 30 For the 9
months ended Sep 30 2014 2013 2014
2013
Exploration
expenses in units in operation by mine and mineral
(in thousands of US$) Julcani, Gold 2 15 -2 70 Julcani,
Silver 2,781 1,223 7,819 4,274 Julcani, Lead 209 96 640 334
Julcani, Copper 26 22 61 89 Mallay, Silver 825 898 2,133 3,560
Mallay, Lead 589 453 1,517 1,907 Mallay, Zinc 932 495 1,893 1,986
Breapampa, Gold 77 268 399 2,612 Breapampa, Silver 4 16 26 162
Orcopampa, Gold 13,493 12,844 40,437 44,172 Orcopampa, Silver 412
435 1,170 1,691 Uchucchacua, Silver 5,437 5,219 18,509 18,067
Uchucchacua, Lead 347 402 1,109 1,249 Uchucchacua, Zinc 259 260 762
934 La Zanja, Gold 29 60 101 1,157 La Zanja, Silver 1 3 4 52 El
Brocal, Gold 0 0 0 0 El Brocal, Silver 0 0 0 0 El Brocal, Lead 0 0
0 0 El Brocal, Zinc 0 0 0 0 El Brocal, Copper 0 0 0 0 Other Small
Units, Gold 309 1,469 1,812 29,966 Other Small Units, Silver 11
5,924 385 11,177 Other Small Units, Lead -2 3,988 233 5,263 Other
Small Units, Zinc 3 5,052 370 6,470 Non Mining Units 0 0 0 0
Consolidated Exploration expenses in units in operation
25,744 39,140 79,379 135,190 Set
forth below is a reconciliation of Commercial Deductions in units
in operation (by mine and mineral) to consolidated Commercial
deductions:
For
the 3 months ended Sep 30 For the 9 months ended Sep 30
2014 2013 2014 2013
Commercial
Deductions in units in operation by mine and mineral
(in thousands of US$)
Julcani, Gold 1 11 0 68 Julcani, Silver 1,689 891 4,853 4,169
Julcani, Lead 127 70 395 325 Julcani, Copper 16 16 41 87 Mallay,
Silver 1,087 1,115 2,855 3,324 Mallay, Lead 756 563 1,966 1,781
Mallay, Zinc 1,778 614 3,858 1,854 Breapampa, Gold 18 21 76 84
Breapampa, Silver 0 0 0 0 Orcopampa, Gold 72 57 201 246 Orcopampa,
Silver 0 0 0 0 Uchucchacua, Silver 10,305 10,933 26,256 32,751
Uchucchacua, Lead 699 888 1,616 2,415 Uchucchacua, Zinc 1,172 574
2,838 1,806 La Zanja, Gold 45 38 201 141 La Zanja, Silver 0 0 5 0
El Brocal, Gold 1,419 612 2,574 1,660 El Brocal, Silver 3,011 2,275
8,758 7,106 El Brocal, Lead 306 759 675 4,604 El Brocal, Zinc 617
2,827 785 10,405 El Brocal, Copper 28,148 17,828 71,668 41,902
Other Small Units, Gold 2 0 271 661 Other Small Units, Silver -1
365 71 1,361 Other Small Units, Lead -1 249 50 802 Other Small
Units, Zinc 19 315 186 998 Non Mining Units 0 0 0 0
Consolidated
Commercial deductions in units in operation 51,285
41,020 130,199 118,548 Set forth below
is a reconciliation of Selling expenses (by mine and mineral) to
consolidated Selling expenses:
For the 3 months ended Sep
30 For the 9 months ended Sep 30 2014 2013
2014 2013
Selling expenses
by mine and mineral
(in thousands of US$) Julcani, Gold 0 3 0 8 Julcani, Silver
275 219 714 518 Julcani, Lead 21 17 58 40 Julcani, Copper 3 4 6 11
Mallay, Silver 178 157 519 538 Mallay, Lead 127 79 369 288 Mallay,
Zinc 201 87 461 300 Breapampa, Gold 99 0 306 0 Breapampa, Silver 6
0 20 0 Orcopampa, Gold 251 0 706 0 Orcopampa, Silver 8 0 20 0
Uchucchacua, Silver 843 750 2,229 2,414 Uchucchacua, Lead 54 58 134
167 Uchucchacua, Zinc 40 37 92 125 La Zanja, Gold 326 133 981 348
La Zanja, Silver 13 6 43 16 El Brocal, Gold 72 55 179 171 El
Brocal, Silver 162 206 605 732 El Brocal, Lead 30 69 65 474 El
Brocal, Zinc 53 256 69 1,072 El Brocal, Copper 1,409 1,614 5,107
4,317 Other Small Units, Gold 5 28 130 560 Other Small Units,
Silver 0 113 28 209 Other Small Units, Lead 0 76 17 98 Other Small
Units, Zinc 0 96 27 121 Non Mining Units 160 0 237 13
Consolidated Selling expenses 4,338 4,063
13,122 12,543
JULCANI JULCANI 3Q 2014 3Q 2013
9M 2014 9M 2013 GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL Cost of
Sales (without D&A) (US$000) 5 7,123 534 -
66 7,729 32 2,514 196 -
45 2,787 Cost of Sales (without D&A) (US$000) -4
17,979 1,471 - 140 19,587 176
10,837 846 - 227 12,085
Add:
Add: Exploration Expenses (US$000) 2 2,781 209 - 26 3,017 15
1,223 96 - 22 1,356 Exploration Expenses (US$000) -2 7,819 640 - 61
8,518 70 4,274 334 - 89 4,766 Commercial Deductions (US$000) 1
1,689 127 - 16 1,832 11 891 70 - 16 987 Commercial Deductions
(US$000) -0 4,853 395 - 41 5,289 68 4,169 325 - 87 4,649 Selling
Expenses (US$000) 0 275 21 - 3 299 3 219 17 - 4 243 Selling
Expenses (US$000) -0 714 58 - 6 777 8 518 40 - 11 578
Cost
Applicable to Sales (US$000) 9 11,868 890
- 110 12,877 61 4,847 379
- 86 5,373 Cost Applicable to Sales
(US$000) -6 31,365 2,564 -
248 34,171 322 19,797 1,545
- 414 22,078 Divide: Divide:
Volume Sold 9 785,437 522 - 21
Not Applicable
64 329,854 249 - 17 Not
Applicable Volume Sold -3 2,249,152 1,658
- 49 Not Applicable 345
1,356,064 1,123 - 89
Not Applicable
CAS 988 15.11
1,707 - 5,256 Not
Applicable 950 14.69
1,524 - 5,056 Not
Applicable CAS - 13.95
1,546 - 5,014
Not Applicable
934 14.60 1,376
- 4,639
Not Applicable
MALLAY
MALLAY 3Q 2014 3Q 2013 9M 2014 9M
2013 GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL Cost of Sales (without D&A) (US$000) - 2,021.03
1,444.14 2,284.96 - 5,750 - 2,286 1,153 1,258 - 4,698 Cost of Sales
(without D&A) (US$000) - 6,142 4,368 5,451 - 15,961 - 9,285
4,974 5,180 - 19,439
Add: Add: Exploration Expenses
(US$000) - 824.71 589.30 932.41 - 2,346 - 898 453 495 - 1,846
Exploration Expenses (US$000) - 2,133 1,517 1,893 - 5,543 - 3,560
1,907 1,986 - 7,452 Commercial Deductions (US$000) - 1,087 756
1,778 - 3,620 - 1,115 563 614 - 2,292 Commercial Deductions
(US$000) - 2,855 1,966 3,858 - 8,679 - 3,324 1,781 1,854 - 6,959
Selling Expenses (US$000) - 178.10 127.26 201.36 - 507 - 157 79 87
- 323 Selling Expenses (US$000) - 519 369 461 - 1,350 - 538 288 300
- 1,126
Cost Applicable to Sales (US$000) -
4,110 2,916 5,196 - 12,223
- 4,457 2,249 2,453 -
9,159 Cost Applicable to Sales (US$000) -
11,649 8,221 11,663 - 31,532
- 16,707 8,950 9,320 -
34,977 Divide: Divide: Volume Sold -
289,181 1,869 2,753 - Not
Applicable - 302,059 1,543 1,915
- Not Applicable Volume Sold - 835,356
5,456 6,616 - Not Applicable -
866,336 4,957 5,796 - Not Applicable
CAS - 14.21 1,560
1,887 - Not Applicable
- 14.76 1,458
1,281 - Not Applicable
CAS - 13.94 1,507
1,763 -
Not Applicable
- 19.28 1,805
1,608 -
Not Applicable
BREAPAMPA BREAPAMPA 3Q 2014
3Q 2013 9M 2014 9M 2013 GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL Cost of
Sales (without D&A) (US$000) 8,248 472 - - - 8,720 9,347 546 -
- - 9,893 Cost of Sales (without D&A) (US$000) 27,119 1,771 - -
- 28,890 37,390 2,315 - - - 39,704
Add: Add:
Exploration Expenses (US$000) 77 4 - - - 82 268 16 - - - 283
Exploration Expenses (US$000) 399 26 - - - 425 2,612 162 - - -
2,774 Commercial Deductions (US$000) 18 - - - - 18 21 - - - - 21
Commercial Deductions (US$000) 76 - - - - 76 84 - - - - 84 Selling
Expenses (US$000) 99 6 - - - 105 - - - - - - Selling Expenses
(US$000) 306 20 - - - 326 - - - - - -
Cost Applicable to Sales
(US$000) 8,443 482 - - -
8,924 9,636 561 - - -
10,197 Cost Applicable to Sales (US$000)
27,899 1,817 - - - 29,716
40,085 2,476 - - - 42,562
Divide: Divide: Volume Sold 21,877
83,179 - - - Not Applicable
20,235 77,129 - - - Not
Applicable Volume Sold 65,901 285,292 -
- - Not Applicable 59,704 223,002
- - - Not Applicable
CAS
386 5.79 - -
- Not Applicable 476
7.28 - - -
Not Applicable CAS 423
6.37 - - -
Not Applicable
671 11.10 -
- -
Not Applicable
ORCOPAMPA ORCOPAMPA 3Q 2014
3Q 2013 9M 2014 9M 2013 GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL Cost of
Sales (without D&A) (US$000) 26,435 808 - - - 27,243 30,376
1,030 - - - 31,405 Cost of Sales (without D&A) (US$000) 79,687
2,306 - - - 81,993 97,771 3,742 - - - 101,513
Add:
Add: Exploration Expenses (US$000) 13,493 412 - - - 13,905
12,844 435 - - - 13,279 Exploration Expenses (US$000) 40,437 1,170
- - - 41,607 44,172 1,691 - - - 45,862 Commercial Deductions
(US$000) 72 0 - - - 73 57 - - - - 57 Commercial Deductions (US$000)
201 0 - - - 202 246 - - - - 246 Selling Expenses (US$000) 251 8 - -
- 258 0 0 - - - 0 Selling Expenses (US$000) 706 20 - - - 726 0 0 -
- - 0
Cost Applicable to Sales (US$000) 40,251
1,228 - - - 41,479 43,277
1,465 - - - 44,742 Cost
Applicable to Sales (US$000) 121,032 3,497
- - - 124,529 142,188
5,433 - - - 147,621
Divide: Divide: Volume Sold 55,279
113,405 - - - Not Applicable
56,552 125,136 - - - Not
Applicable Volume Sold 152,667 293,493 -
- - Not Applicable 174,862
403,855 - - - Not Applicable
CAS
728 10.83 -
- - Not Applicable
765 11.71 - -
- Not Applicable CAS
793 11.91 - -
-
Not Applicable
813 13.45 -
- -
Not Applicable
UCHUCCHACUA UCHUCCHACUA 3Q 2014
3Q 2013 9M 2014 9M 2013 GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL Cost of
Sales (without D&A) (US$000) - 29,854 1,906 1,424 - 33,184 -
29,108 2,243 1,449 - 32,800 Cost of Sales (without D&A)
(US$000) - 97,122 5,818 4,001 - 106,941 - 83,176 5,751 4,301 -
93,228
Add: Add: Exploration Expenses (US$000) -
5,437 347 259 - 6,044 - 5,219 402 260 - 5,881 Exploration Expenses
(US$000) - 18,509 1,109 762 - 20,380 - 18,067 1,249 934 - 20,251
Commercial Deductions (US$000) - 10,305 699 1,172 - 12,176 - 10,933
888 574 - 12,395 Commercial Deductions (US$000) - 26,256 1,616
2,838 - 30,710 - 32,751 2,415 1,806 - 36,972 Selling Expenses
(US$000) - 843 54 40 - 937 - 750 58 37 - 845 Selling Expenses
(US$000) - 2,229 134 92 - 2,454 - 2,414 167 125 - 2,706
Cost
Applicable to Sales (US$000) - 46,440
3,006 2,895 - 52,341 -
46,010 3,590 2,320 - 51,920
Cost Applicable to Sales (US$000) - 144,116
8,676 7,693 - 160,486 -
136,408 9,582 7,166 - 153,157
Divide: Divide: Volume Sold - 3,048,394
1,725 1,218 - Not Applicable -
3,105,420 2,367 1,705 - Not
Applicable Volume Sold - 8,733,658 4,865
3,275 - Not Applicable -
7,910,875 5,849 4,856 - Not Applicable
CAS - 15.23 1,742
2,376 -
Not Applicable
- 14.82 1,517
1,360 -
Not Applicable
CAS - 16.50 1,783
2,349 -
Not Applicable
- 17.24 1,638
1,476 -
Not Applicable
LA ZANJA LA
ZANJA 3Q 2014 3Q 2013 9M 2014
9M 2013 GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL Cost of Sales (without
D&A) (US$000) 20,417 802 - - -
21,219 20,787 885 - - -
21,672 Cost of Sales (without D&A) (US$000) 58,632 2,549
- - - 61,181 62,899 2,840
- - - 65,738
Add: Add:
Exploration Expenses (US$000) 29 1 - - - 30 60 3 - - - 62
Exploration Expenses (US$000) 101 4 - - - 106 1,157 52 - - - 1,210
Commercial Deductions (US$000) 45 - - - - 45 38 - - - - 38
Commercial Deductions (US$000) 201 5 - - - 206 141 - - - - 141
Selling Expenses (US$000) 326 13 - - - 339 133 6 - - - 139 Selling
Expenses (US$000) 981 43 - - - 1,024 348 16 - - - 364
Cost
Applicable to Sales (US$000) 20,817 816 -
- - 21,633 21,018 893 -
- - 21,911 Cost Applicable to Sales
(US$000) 59,915 2,601 - - -
62,516 64,545 2,908 - - -
67,453 Divide: Divide: Volume Sold
37,889 99,349 - - - Not
Applicable 37,118 103,166 - - -
Not Applicable Volume Sold 110,053 316,577
- - - Not Applicable 100,267
273,139 - - - Not Applicable
CAS 549 8.21 -
- - Not Applicable
566 8.66 - -
- Not Applicable CAS
544 8.22 - -
-
Not Applicable
644 10.65 -
- - Not Applicable
BROCAL
BROCAL 3Q 2014 3Q 2013 9M 2014 9M
2013 GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL Cost of Sales (without D&A) (US$000) 1,220
2,733.49 508.30 900.58 23,726 29,088 786 2,921 975 3,630 22,892
31,204 Cost of Sales (without D&A) (US$000) 2,508 8,459 904 970
71,394 84,234 2,262 9,685 6,275 14,183 57,115 89,520
Add:
Add: Exploration Expenses (US$000) - - - - - - - - - - - -
Exploration Expenses (US$000) - - - - - - - - - - - - Commercial
Deductions (US$000) 1,419 3,011 306 617 28,148 33,502 612 2,275 759
2,827 17,828 24,301 Commercial Deductions (US$000) 2,574 8,758 675
785 71,668 84,459 1,660 7,106 4,604 10,405 41,902 65,676 Selling
Expenses (US$000) 72 162.39 30.20 53.50 1,409 1,728 55 206 69 256
1,614 2,200 Selling Expenses (US$000) 179 605 65 69 5,107 6,026 171
732 474 1,072 4,317 6,767
Cost Applicable to Sales (US$000)
2,711 5,907 844 1,571 53,284
64,318 1,453 5,402 1,803 6,713
42,334 57,705 Cost Applicable to Sales
(US$000) 5,261 17,821 1,643 1,824
148,170 174,719 4,093 17,523
11,353
25,660
103,335 161,963 Divide: Divide: Volume
Sold 2,902 446,115 731 1,191
10,604 Not Applicable 1,374 318,443
1,137 4,632 7,653 Not Applicable Volume Sold
5,596 1,255,826 1,150 1,052
29,762 Not Applicable 3,416 916,026
6,485 16,419 17,069 Not Applicable
CAS
934 13.24 1,154
1,320 5,025 Not Applicable
1,057 16.96 1,585
1,449 5,531 Not Applicable
CAS 940 14.19
1,429 1,735 4,978
Not Applicable
1,198 19.13 1,751
1,563 6,054 Not Applicable
NON MINING
COMPANIES NON MINING COMPANIES 3Q 2014 3Q
2013 9M 2014 9M 2013 GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL Cost of
Sales (without D&A) (US$000) - - - - - 28,260 - - - - - 24,265
Cost of Sales (without D&A) (US$000) - - - - - 50,957 - - - - -
52,142
Add: - -
Add: - Selling Expenses (US$000)
- - - - - 160 -
- - - - 0 Selling Expenses
(US$000) - - - - - 237
- - - - - 13 Total
(US$000) - - - - - 28,420
- - - - - 24,265 Total
(US$000) - - - - - 51,194
- - - - - 52,156
BUENAVENTURA CONSOLIDATED
BUENAVENTURA CONSOLIDATED 3Q 2014 3Q 2013
9M 2014 9M 2013 GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL Cost of Sales (without
D&A) (US$000) 56,385 43,816 4,392 4,610 23,792 161,255 61,729
40,908 5,657 7,717 22,937 163,212 Cost of Sales (without D&A)
(US$000) 170,598 136,892 12,903 10,963 71,534 453,848 212,464
126,343 19,948 26,247 57,342 494,486
Add: Add:
Exploration Expenses (US$000) 13,910 9,471 1,143 1,194 26 25,744
14,656 13,717 4,939 5,806 22 39,140 Exploration Expenses (US$000)
42,748 30,046 3,499 3,025 61 79,379 77,976 38,982 8,753 9,390 89
135,190 Commercial Deductions (US$000) 1,557 16,091 1,886 3,586
28,164 51,285 739 15,579 2,528 4,329 17,844 41,020 Commercial
Deductions (US$000) 3,322 42,798 4,702 7,667 71,709 130,199 2,859
48,710 9,926 15,063 41,990 118,548 Selling Expenses (US$000) 753
1,485 232 295 1,412 4,338 219 1,451 299 476 1,618 4,063 Selling
Expenses (US$000) 2,302 4,178 643 649 5,113 13,122 1,088 4,427
1,068 1,618 4,328 12,543
Cost Applicable to Sales (US$000)
72,606 70,863 7,653 9,685 53,394
242,622 77,343 71,655 13,422
18,328 42,420 247,435 Cost Applicable to
Sales (US$000)
218,970
213,915 21,746
22,304
148,417
676,547
294,387
218,462
39,695 52,318 103,749 760,766
Divide: Divide: Volume Sold 118,822
4,867,652 4,847 5,157 10,625 Not
Applicable 115,824 4,482,882 6,122
9,438 7,670 Not Applicable Volume Sold 337,050
14,013,267 13,350 11,271 29,812 Not
Applicable 357,097 12,387,186 20,741
30,281 17,159 Not Applicable
CAS
- - - -
- Not Applicable
Not Applicable CAS
- - - -
- Not Applicable
Not
Applicable COIMOLACHE
COIMOLACHE 3Q 2014 3Q 2013 9M 2014
9M 2013 GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL Cost of Sales (without D&A)
(US$000) 13,497 1,295 - - - 14,793 15,595 1,102 - - - 16,698 Cost
of Sales (without D&A) (US$000) 40,137 3,071 - - - 43,208
48,208 4,243 - - - 52,451
Add: Add: Exploration
Expenses (US$000) 1,184 114 - - - 1,298 6,376 451 - - - 6,827
Exploration Expenses (US$000) 4,666 357 - - - 5,023 14,351 1,263 -
- - 15,614 Commercial Deductions (US$000) 37 3 - - - 40 255 22 - -
- 276 Commercial Deductions (US$000) 251 15 - - - 267 668 72 - - -
740 Selling Expenses (US$000) 266 25 - - - 291 120 9 - - - 129
Selling Expenses (US$000) 722 55 - - - 778 423 37 - - - 461
Cost
Applicable to Sales (US$000) 14,984 1,437
- - - 16,421 22,346 1,583
- - - 23,929 Cost Applicable to
Sales (US$000) 45,776 3,498 - -
- 49,275 63,650 5,615 - -
- 69,265 Divide: Divide: Volume Sold
35,434 220,227 - - - Not
Applicable 38,212 166,821 - - -
Not Applicable Volume Sold 102,308 508,356
- - - Not Applicable 107,069
557,509 - - - Not Applicable
CAS 423 6.52 -
- - Not Applicable
585 9.49 - -
- Not Applicable CAS
447 6.88 - -
-
Not Applicable
594 10.07 -
- - Not Applicable
APPENDIX 6: ALL-IN SUSTAINING COST FOR
3Q14 and 9M14
Buenaventura1
La Zanja
Tantahuatay
Attributable Production2
3Q14 3Q14 3Q14 3Q14 Au Ounces Sold BVN
115,921 Au Ounces bought from La Zanja -37,889 Au Ounces Sold Net
78,032 38,271 35,434 112,546
3Q14 3Q14
3Q14 3Q14 Income Statement & Cash Flow
US$ 000' US$/Oz Au US$ 000'
US$/Oz Au
US$ 000'
US$/Oz Au
US$ 000' US$/Oz Au Cost of Sales3 84,881
1,088 21,951 574
14,793
417
102,459 910 Exploration in Operating Units 25,714 330 4,509
118
1,298
37
28,627 254 Royalties 7,065 91 312 8 0 0 7,231 64 Comercial
Deductions4 17,783 228 818 21 40 1 18,233 162 Selling Expenses
2,087 27 339 9 291 8 2,384 21 Administrative Expenses5 11,997 154
238 6
418
12
12,291 109 Other Expenses 0 0 3,082 81
1,888
53
2,392 21 Other Incomes 0 0 -3,599 -94
-2,146
-61
-2,770 -25 Administrative charges 0 0 1,237 32 32 1 669 6
Sustaining Capex6 2,315 30 5,819 152
9,459
267
9,195 82 By-product Credit -103,820 -1,330 -1,618 -42
-4,321
-122
-106,412 -945
All-in Sustaining Cost 48,022
615 33,088 865
21,751
614
74,299 660
*All-in Sustaining Cost does not include:
Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:1. Non-consolidated financial
statements for Compañia De Minas Buenaventura S.A.A.2. Considers
100% from Compañia De Minas Buenaventura S.A.A., 53.06%
from La Zanja and 40. 095% from Tantahuatay.3. For
Buenaventura does not consider purchase of concentrate from La
Zanja.4. For all metals produced.5. For Buenaventura, does not
consider management services charged to
subsidiaries.6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
Buenaventura1
La Zanja
Tantahuatay
Attributable Production2
9M14 9M14 9M14 9M14 Au Ounces Sold BVN
329,904 Au Ounces bought from La Zanja -108,503 Au Ounces
Sold Net 221,401 107,860
102,308
319,652
9M14 9M14 9M14 9M14
Income Statement & Cash Flow
US$ 000' US$/Oz Au US$ 000'
US$/Oz Au
US$ 000'
US$/Oz Au
US$ 000' US$/Oz Au Cost of Sales3 271,633
1,227 60,800 564
43,208
422
321,218 1,005 Exploration in Operating Units 79,273 358
13,202 122
5,023
49
88,292 276 Royalties 21,302 96 555 5 0 0 21,597 68 Comercial
Deductions4 45,661 206 2,698 25 267 3 47,199 148 Selling Expenses
5,836 26 1,024 9 778 8 6,691 21 Administrative Expenses5 44,113 199
3,323 31
1,600
16
46,518 146 Other Expenses 0 0 8,017 74
3,861
38
5,802 18 Other Incomes 0 0 -8,448 -78
-4,765
-47
-6,393 -20 Administrative charges 0 0 2,115 20
249
2 1,222 4 Sustaining Capex6 16,138 73 12,532 116
15,270
149
28,910 90 By-product Credit -301,081 -1,360 -6,224 -58
-10,072
-98
-308,421 -965
All-in Sustaining Cost 182,875
826 89,594 831
55,418
542
252,634 790
*All-in Sustaining Cost does not include:
Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:1. Non-consolidated financial
statements for Compañia De Minas Buenaventura S.A.A.2. Considers
100% from Compañia De Minas Buenaventura S.A.A., 53.06%
from La Zanja and 40. 095% from Tantahuatay.3. For
Buenaventura does not consider purchase of concentrate from La
Zanja.4. For all metals produced.5. For Buenaventura, does not
consider management services charged to
subsidiaries.6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
Contacts in Lima:Carlos Galvez, 511-419-2540Chief
Financial OfficerorDaniel Dominguez, 511-419-2591Director of
Treasury and Investor
Relationsdaniel.dominguez@buenaventura.peorContacts in New
York:Maria Barona / Rafael Borjai-advize Corporate
Communications,Tel: (212)
406-3691/3693buenaventura@i-advize.com
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