FORM 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Report of Foreign Issuer

 

Pursuant to Rule 13a-16 or 15d-16 of the

 

Securities Exchange Act of 1934

 

For the month of October 2014

 

BUENAVENTURA MINING COMPANY INC.

 

(Translation of Registrant's Name into English)

 

 

CARLOS VILLARAN 790

 

SANTA CATALINA, LIMA 13, PERU

 

(Address of Principal Executive Offices)

 

 

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 whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨ No x

 

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________________.

  

 

 

 
 

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Compañía de Minas Buenaventura S.A.A.

  

 

/s/ CARLOS E. GALVEZ PINILLOS

 

Carlos E. Gálvez Pinillos

 

Chief Financial Officer

  

 

Date: October 31, 2014

 

 



 

Exhibit 99.1

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 1 of 20

 

Buenaventura Announces Third Quarter and

Nine-Month 2014 Results

 

Lima, Peru, October 30, 2014 – 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):

 

 

(*) as of October 30, 2014, Buenaventura had 254,186,867 outstanding shares.

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 2 of 20

 

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).

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 3 of 20

 

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%

 

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.

 

 

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 54.07% of El Brocal.

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 4 of 20

 

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.

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 5 of 20

 

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 Associates (in millions of US$) 3Q14 3Q13 Var% 9M14 9M13 Var%
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.

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 6 of 20

 

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.

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 7 of 20

 

* * *

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**

 

 
 

  

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 8 of 20

 

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

 

 
 

  

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 9 of 20

 

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%

 

 
 

  

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 10 of 20

 

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.

 

 
 

  

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 11 of 20

 

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.

Third Quarter Nine-Month Period of 2014 Results

Page 12 of 20

 

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
ended September 30,
   For the nine-month period
ended September 30,
 
   2014   2013   2014   2013 
   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.

Third Quarter Nine-Month Period of 2014 Results

Page 13 of 20

 

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
period ended September 30,
   For the nine-month period
ended September 30,
 
   2014   2013   2014   2013 
   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 

 

 
 

  

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 14 of 20

 

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.

 

 
 

  

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 15 of 20

 

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

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 16 of 20

 

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

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 17 of 20

 

   JULCANI 
   3Q 2014   3Q 2013 
   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
Add:                        
Exploration Expenses (US$000) 2 2,781 209 - 26 3,017 15 1,223 96 - 22 1,356
Commercial Deductions (US$000) 1 1,689 127 - 16 1,832 11 891 70 - 16 987
Selling Expenses (US$000) 0 275 21 - 3 299 3 219 17 - 4 243
Cost Applicable to Sales (US$000) 9 11,868 890 - 110 12,877 61 4,847 379 - 86 5,373
Divide:                        
Volume Sold 9 785,437 522 - 21 Not Applicable 64 329,854 249 - 17 Not Applicable
CAS 988 15.11 1,707 - 5,256 Not Applicable 950 14.69 1,524 - 5,056 Not Applicable

 

   MALLAY
   3Q 2014  3Q 2013
   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
Add                        
Exploration Expenses (US$000) - 824.71 589.30 932.41 - 2,346 - 898 453 495 - 1,846
Commercial Deductions (US$000) - 1,087 756 1,778 - 3,620 - 1,115 563 614 - 2,292
Selling Expenses (US$000) - 178.10 127.26 201.36 - 507 - 157 79 87 - 323
Cost Applicable to Sales (US$000) - 4,110 2,916 5,196 - 12,223 - 4,457 2,249 2,453 - 9,159
Divide:                        
Volume Sold - 289,181 1,869 2,753 - Not Applicable - 302,059 1,543 1,915 - Not Applicable
CAS - 14.21 1,560 1,887 - Not Applicable - 14.76 1,458 1,281 - Not Applicable

 

   BREAPAMPA
   3Q 2014  3Q 2013
   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
Add:                        
Exploration Expenses (US$000) 77 4 - - - 82 268 16 - - - 283
Commercial Deductions (US$000) 18 - - - - 18 21 - - - - 21
Selling Expenses (US$000) 99 6 - - - 105 - - - - - -
Cost Applicable to Sales (US$000) 8,443 482 - - - 8,924 9,636 561 - - - 10,197
Divide:                        
Volume Sold 21,877 83,179 - - - Not Applicable 20,235 77,129 - - - Not Applicable
CAS 386 5.79 - - - Not Applicable 476 7.28 - - - Not Applicable

  

   ORCOPAMPA
   3Q 2014  3Q 2013
   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
Add:                        
Exploration Expenses (US$000) 13,493 412 - - - 13,905 12,844 435 - - - 13,279
Commercial Deductions (US$000) 72 0 - - - 73 57 - - - - 57
Selling Expenses (US$000) 251 8 - - - 258 0 0 - - - 0
Cost Applicable to Sales (US$000) 40,251 1,228 - - - 41,479 43,277 1,465 - - - 44,742
Divide:                        
Volume Sold 55,279 113,405 - - - Not Applicable 56,552 125,136 - - - Not Applicable
CAS 728 10.83 - - - Not Applicable 765 11.71 - - - Not Applicable

 

   UCHUCCHACUA 
   3Q 2014   3Q 2013 
   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
Add:                        
Exploration Expenses (US$000)  -  5,437  347  259  -  6,044  -  5,219  402  260  -  5,881
Commercial Deductions (US$000)  -  10,305  699  1,172  -  12,176  -  10,933  888  574  -  12,395
Selling Expenses (US$000)  -  843  54  40  -  937  -  750  58  37  -  845
Cost Applicable to Sales (US$000)  -  46,440  3,006  2,895  -  52,341  -  46,010  3,590  2,320  -  51,920
Divide:                        
 Volume Sold  -  3,048,394  1,725  1,218  -  Not Applicable  -  3,105,420  2,367  1,705  -  Not Applicable
 CAS  -  15.23  1,742  2,376  -  No Applicable  -  14.82  1,517  1,360  -  No Applicable

 

   JULCANI 
   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 
Cost of Sales (without D&A) (US$000)  -4  17,979  1,471  -  140  19,587  176  10,837  846  -  227  12,085
Add:                        
Exploration Expenses (US$000)  -2  7,819  640  -  61  8,518  70  4,274  334  -  89  4,766
Commercial Deductions (US$000)  -0  4,853  395  -  41  5,289  68  4,169  325  -  87  4,649
Selling Expenses (US$000)  -0  714  58  -  6  777  8  518  40  -  11  578
Cost Applicable to Sales (US$000)  -6  31,365  2,564  -  248  34,171  322  19,797  1,545  -  414  22,078
Divide:                        
Volume Sold  -3  2,249,152  1,658  -  49  Not Applicable  345  1,356,064  1,123  -  89  No Aplicable
CAS  -  13.95  1,546  -  5,014  No Applicable  934  14.60  1,376  -  4,639  No Applicable

 

   MALLAY 
   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 
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:                        
Exploration Expenses (US$000) - 2,133 1,517 1,893 - 5,543 - 3,560 1,907 1,986 - 7,452
Commercial Deductions (US$000) - 2,855 1,966 3,858 - 8,679 - 3,324 1,781 1,854 - 6,959
Selling Expenses (US$000) - 519 369 461 - 1,350 - 538 288 300 - 1,126
Cost Applicable to Sales (US$000) - 11,649 8,221 11,663 - 31,532 - 16,707 8,950 9,320 - 34,977
Divide:                        
Volume Sold - 835,356 5,456 6,616 - Not Applicable - 866,336 4,957 5,796 - Not Applicable
CAS - 13.94 1,507 1,763 - No Applicable - 19.28 1,805 1,608 - No Applicable

  

   BREAPAMPA 
   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 
Cost of Sales (without D&A) (US$000) 27,119 1,771 - - - 28,890 37,390 2,315 - - - 39,704
Add:                        
Exploration Expenses (US$000) 399 26 - - - 425 2,612 162 - - - 2,774
Commercial Deductions (US$000) 76 - - - - 76 84 - - - - 84
Selling Expenses (US$000) 306 20 - - - 326 - - - - - -
Cost Applicable to Sales (US$000) 27,899 1,817 - - - 29,716 40,085 2,476 - - - 42,562
Divide:                        
Volume Sold 65,901 285,292 - - - Not Applicable 59,704 223,002 - - - Not Applicable
 CAS 423 6.37 - - - No Applicable 671 11.10 - - - No Applicable

  

   ORCOPAMPA 
   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 
Cost of Sales (without D&A) (US$000) 79,687 2,306 - - - 81,993 97,771 3,742 - - - 101,513
Add:                        
Exploration Expenses (US$000) 40,437 1,170 - - - 41,607 44,172 1,691 - - - 45,862
Commercial Deductions (US$000) 201 0 - - - 202 246 - - - - 246
Selling Expenses (US$000) 706 20 - - - 726 0 0 - - - 0
Cost Applicable to Sales (US$000) 121,032 3,497 - - - 124,529 142,188 5,433 - - - 147,621
Divide:                        
Volume Sold 152,667 293,493 - - - Not Applicable 174,862 403,855 - - - Not Applicable
CAS 793 11.91 - - - No Applicable 813 13.45 - - - No Applicable

 

   UCHUCCHACUA 
   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 
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:                        
Exploration Expenses (US$000) - 18,509 1,109 762 - 20,380 - 18,067 1,249 934 - 20,251
Commercial Deductions (US$000) - 26,256 1,616 2,838 - 30,710 - 32,751 2,415 1,806 - 36,972
Selling Expenses (US$000) - 2,229 134 92 - 2,454 - 2,414 167 125 - 2,706
Cost Applicable to Sales (US$000) - 144,116 8,676 7,693 - 160,486 - 136,408 9,582 7,166 - 153,157
Divide:                        
Volume Sold - 8,733,658 4,865 3,275 - Not Applicable - 7,910,875 5,849 4,856 - Not Applicable
 CAS - 16.50 1,783 2,349 - No Applicable - 17.24 1,638 1,476 - No Applicable

 

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 18 of 20

 

   LA ZANJA 
   3Q 2014   3Q 2013 
  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
Add:                        
Exploration Expenses (US$000)  29  1  -  -  -  30  60  3  -  -  -  62
Commercial Deductions (US$000)  45  -  -  -  -  45  38  -  -  -  -  38
Selling Expenses (US$000)  326  13  -  -  -  339  133  6  -  -  -  139
Cost Applicable to Sales (US$000)  20,817  816  -  -  -  21,633  21,018  893  -  -  -  21,911
Divide:                        
Volume Sold  37,889  99,349  -  -  -  Not Applicable  37,118  103,166  -  -  -  Not Applicable
CAS  549  8.21  -  -  -  Not Applicable  566  8.66  -  -  -  Not Applicable

 

   BROCAL 
   3Q 2014   3Q 2013 
  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
Add:                        
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
Selling Expenses (US$000) 72 162.39 30.20 53.50 1,409 1,728 55 206 69 256 1,614 2,200
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
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
CAS 934 13.24 1,154 1,320 5,025 Not Applicable 1,057 16.96 1,585 1,449 5,531 Not Applicable

 

   NON MINING COMPANIES 
   3Q 2014   3Q 2013 
  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
Add:           -           -
Selling Expenses (US$000) - - - - - 160 - - - - - 0
Total (US$000) - - - - - 28,420 - - - - - 24,265

 

   BUENAVENTURA CONSOLIDATED
   3Q 2014  3Q 2013
   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
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
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
Selling Expenses (US$000) 753 1,485 232 295 1,412 4,338 219 1,451 299 476 1,618 4,063
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
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
 CAS - - - - - Not Applicable           Not Applicable

 

   COIMOLACHE 
   3Q 2014   3Q 2013 
  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
Add:                        
Exploration Expenses (US$000) 1,184 114 - - - 1,298 6,376 451 - - - 6,827
Commercial Deductions (US$000) 37 3 - - - 40 255 22 - - - 276
Selling Expenses (US$000) 266 25 - - - 291 120 9 - - - 129
Cost Applicable to Sales (US$000) 14,984 1,437 - - - 16,421 22,346 1,583 - - - 23,929
Divide:                        
Volume Sold 35,434 220,227 - - - Not Applicable 38,212 166,821 - - - Not Applicable
CAS 423 6.52 - - - Not Applicable 585 9.49 - - - Not Applicable

 

   LA ZANJA 
   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
 Cost of Sales (without D&A) (US$000) 58,632 2,549 - - - 61,181 62,899 2,840 - - - 65,738
Add:                        
Exploration Expenses (US$000) 101 4 - - - 106 1,157 52 - - - 1,210
Commercial Deductions (US$000) 201 5 - - - 206 141 - - - - 141
Selling Expenses (US$000) 981 43 - - - 1,024 348 16 - - - 364
Cost Applicable to Sales (US$000) 59,915 2,601 - - - 62,516 64,545 2,908 - - - 67,453
Divide:                        
Volume Sold 110,053 316,577 - - - Not Applicable 100,267 273,139 - - - Not Applicable
 CAS 544 8.22 - - - No Applicable 644 10.65 - - - Not Applicable

 

   BROCAL 
   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 
 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:                        
Exploration Expenses (US$000) - - - - - - - - - - - -
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) 179 605 65 69 5,107 6,026 171 732 474 1,072 4,317 6,767
 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:                        
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 940 14.19 1,429 1,735 4,978 No Applicable 1,198 19.13 1,751 1,563 6,054 Not Applicable

 

   NON MINING COMPANIES 
   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 
 Cost of Sales (without D&A) (US$000) - - - - - 50,957 - - - - - 52,142
 Add:                       -
Selling Expenses (US$000) - - - - - 237 - - - - - 13
Total (US$000) - - - - - 51,194 - - - - - 52,156

 

   BUENAVENTURA CONSOLIDATED 
   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 
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:                        
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) 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) 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) 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:                        
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

 

   COIMOLACHE 
   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 
 Cost of Sales (without D&A) (US$000) 40,137 3,071 - - - 43,208 48,208 4,243 - - - 52,451
 Add:                        
 Exploration Expenses (US$000) 4,666 357 - - - 5,023 14,351 1,263 - - - 15,614
 Commercial Deductions (US$000) 251 15 - - - 267 668 72 - - - 740
 Selling Expenses (US$000) 722 55 - - - 778 423 37 - - - 461
 Cost Applicable to Sales (US$000) 45,776 3,498 - - - 49,275 63,650 5,615 - - - 69,265
 Divide:                        
 Volume Sold 102,308 508,356 - - - Not Applicable 107,069 557,509 - - - Not Applicable
 CAS 447 6.88 - - - No Applicable 594 10.07 - - - Not Applicable

 

 
 

  

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 19 of 20

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 Adquisitions of mining concessions, development costs, property, plant and equipment.

 

 
 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter Nine-Month Period of 2014 Results

Page 20 of 20

 

   Buenaventura1
9M14
   La Zanja
9M14
   Tantahuatay
9M14
   Attributable Production2
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 Adquisitions of mining concessions, development costs, property, plant and equipment.

 

 

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