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 February 2015

 

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-________________.

 

 
  

 

Buenaventura Announces Fourth Quarter and
Full Year 2014 Results
 
Lima, Peru, February 26, 2015 – 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 fourth quarter (4Q14) and full year 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$).
 
Fourth Quarter 2014 Highlights:
 
 • In 4Q14, EBITDA from direct operations was US$37.5 million and adjusted EBITDA (including associated companies) was US$165.0 million.
 • Strong gold production at Yanacocha in 4Q14 (322,309k oz) permitted to achieve the high end of the annual guidance.
 • Total attributable production in 4Q14 was 245k gold ounces and 5.5 million silver ounces (compared to 184k gold ounces and 4.8 million silver ounces in 4Q13).
 • Full year 2014 attributable production was 846k gold ounces and 19.7 million silver ounces (compared to 895k gold ounces and 18.9 million silver ounces in 2013).
 • At the Tambomayo project, an Environmental Impact Assessment (EIA) was approved in January 2015. Construction is expected to begin in 2Q15.
 • Gold reserves from direct operations increased 13% due to Tambomayo project.
 • At the San Gabriel (Chucapaca) project, the critical surface property acquisition was finalized and the Company is working to obtain permits for advanced explorations with underground development.
 • Cerro Verde’s plant expansion to 360K TPD is in-line with schedules and budget. Additional production from the expanded plant is expected by early 2016.
   
  Financial Highlights (in millions of US$, except EPS figures):
   
    4Q14 4Q13 Var% FY14 FY13 Var%
  Total Revenues 265.6 294.2 -10% 1,165.2 1,259.6 -7%
  Operating Profit -18.3 33.0 NA 61.6 215.2 -71%
  EBITDA Direct Operations 37.5 84.0 -55% 274.1 366.2 -25%
  Adjusted EBITDA (Inc Associates) 165.0 180.3 -8% 627.9 885.9 -29%
  Net Income ** -161.4 -295.0 NA -76.1 -107.3 NA
  EPS* -0.63 -1.16 NA -0.30 -0.42 NA
  (*)     as of December, 2014, Buenaventura had 254,186,867 outstanding shares.
(**)  Yanacocha’s impairment loss (related to Conga) attributable to Buenaventura
         was US$236.2 million

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 2 of 23

 

Operating Revenues

 

During 4Q14, net sales were US$253.7 million, a 12% decrease compared to the US$287.0 million reported in 4Q13. This was explained by the lower gold, silver and copper prices despite higher silver, zinc and copper volume sold.

 

Royalty income increased 67%, to US$11.9 million in 4Q14 compared to the US$7.2 million reported in 4Q13. This was due to higher revenues at Yanacocha (67% higher QoQ).

 

Operating Highlights 4Q14 4Q13 Var% FY14 FY13 Var%

Net Sales

(in millions of US$)

253.7 287.0 -12% 1,128.3 1,215.4 -7%
Average Realized Gold Price (US$/oz)* 1,192 1,281 -7% 1,264 1,416 -11%
Average Realized Gold Price (US$/oz) inc. Affiliates 1,194 1,272 -6% 1,258 1,408 -11%
Average Realized Silver Price (US$/oz)* 15.76 20.82 -24% 18.65 22.35 -17%
Average Realized Lead Price (US$/MT)* 1,994 2,106 -5% 2,107 2,105 0%

Average Realized

Zinc Price (US$/MT)*

2,240 1,885 19% 2,244 1,869 20%
Average Realized Copper Price (US$/MT)* 6,591 7,158 -8% 6,738 7,179 -6%

(*) Buenaventura’s Direct Operations

 

Volume Sold 4Q14 4Q13 Var% FY14 FY13 Var%
Gold Oz Direct Operations 102,043 101,442 1% 439,092 458,499 -4%
Gold Oz inc Associated Companies 260,810 196,342 33% 917,266 962,087 -5%
Silver Oz 5,075,656 3,980,486 28% 19,088,923 16,329,314 17%
Lead MT 5,470 5,908 -7% 18,820 26,584 -29%
Zinc MT 9,961 7,866 27% 21,231 38,084 -44%
Copper MT 10,451 8,333 25% 40,263 25,406 58%

 

For the twelve-month period, net sales decreased 7%, from US$1,215.4 million in 2013 to US$1,128.3 million in 2014. Royalties decreased 17%, to US$36.9 million in FY14 vs. US$44.2 million in FY13.

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 3 of 23

 

Production and Operating Costs

 

In 4Q14, Buenaventura’s gold equity production from direct operations remained flat (104,166 oz) compared to 4Q13. Gold production including associated companies increased 33% due to higher production from Yanacocha. Silver equity production from direct operations increased 14%, mainly due to higher production in Uchucchacua and El Brocal.

 

Equity Production 4Q14 4Q13 Var% FY14 FY13 Var%
Gold Oz Direct Operations1 104,166 103,868 0% 422,135 451,311 -6%
Gold Oz including Associated Companies 244,854 184,323 33% 845,515 895,345 -6%
Silver Oz Direct Operations1 5,350,072 4,698,705 14% 19,074,255 18,379,411 4%
Silver Oz including Associated Companies 5,491,990 4,803,361 14% 19,659,822 18,905,280 4%
Lead MT 6,012 5,999 0% 20,227 25,579 -21%
Zinc MT 8,509 7,904 8% 22,038 34,980 -37%
Copper MT Direct Operations1 5,886 5,112 15% 23,678 15,157 56%
Copper MT including Associated Companies 16,851 18,685 -10% 68,106 64,647 5%

 

Orcopampa’s (100% owned by Buenaventura)

 

Production
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Gold Oz 54,878 48,117 14% 203,226 224,671 -10%
Silver Oz 143,925 88,181 63% 423,148 519,727 -19%
               
Cost Applicable to Sales
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Gold US$/Oz 681 804 -15% 768 799 -4%
                           

Gold production at Orcopampa increased 14% in 4Q14 (compared to 4Q13) due to higher ore treated (Appendix 2). Cost Applicable to Sales (CAS) in 4Q14 decreased 15% explained by lower reagent (cyanide) costs and improving efficiency due to better contractor allocation.

 

Gold production guidance for 2015 is 190k – 205k ounces.

 

Uchucchacua (100% owned by Buenaventura)

 

Production
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Silver Oz 3,395,628 2,871,959 18% 12,055,570 11,444,751 18%
Zinc MT 1,504 2,154 -30% 6,349 8,146 -30%
Lead MT 2,086 1,821 15% 7,605 8,363 15%

 

 

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10% of Coimolache (Tantahuatay).

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 4 of 23

 

Cost Applicable to Sales
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Silver US$/Oz 14.87 15.68 -5% 16.22 16.48 -2%

 

Silver production in 4Q14 increased 18% compared to 4Q13, mainly due to higher ore volume treated and recovery rate (see Appendix 2). Cost Applicable to Sales (CAS) in 4Q14 decreased 5% compared to 4Q13 mainly explained by lower reagent costs, better contractor terms and infrastructure improvements inside the mine.

 

Silver production guidance for 2015 is 14.5 million - 15.0 million ounces.

 

Mallay (100% owned by Buenaventura)

 

Production
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Silver Oz 309,213 329,727 -6% 1,216,034 1,279,972 -5%
Zinc MT 2,333 2,402 -3% 9,893 8,973 10%
Lead MT 1,876 1,848 2% 7,513 6,979 8%
               
Cost Applicable to Sales
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Silver US$/Oz 12.80 15.20 -16% 13.76 17.78 -23%
                       

Silver production in 4Q14 was 6% lower than in 4Q13 due to lower silver grade. Cost Applicable to Sales (CAS) in 4Q14 was 16% lower compared to 4Q13 due to a strong increase in zinc by-product contribution.

 

Silver production guidance for 2015 is 1.1 million – 1.25 million ounces.

 

Julcani (100% owned by Buenaventura)

 

Production
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Silver Oz 782,652 771,296 1% 3,084,347 2,711,996 14%
               
Cost Applicable to Sales
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Silver US$/Oz 14.11 10.52 34% 14.14 12.70 11%
                           

 

Silver production in 4Q14 was in-line with 4Q13 production. Cost Applicable to Sales (CAS) in 4Q14 was 34% higher than 4Q13 mainly explained by higher silver concentrate inventories (approximately 65% of the quarterly production, in transit to the smelter).

 

Silver production guidance for 2015 is 2.9 million – 3.1 million ounces.

 

La Zanja’s (53.06% owned by Buenaventura)

 

Production
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Gold Oz 34,808 33,451 4% 143,573 137,395 4%
Silver Oz 82,594 108,175 -24% 422,395 391,832 8%

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 5 of 23

 

Cost Applicable to Sales              
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Gold US$/Oz 845 668 26% 574 647 -11%

 

Gold production in 4Q14 increased 4% when compared to 4Q13. CAS in 4Q14 increased 26% due to higher stripping ratio in Pampa Verde open pit (1.06 in 4Q14 vs. 0.42 in 4Q13).

 

Gold production guidance for 2015 is 138k – 142k ounces.

 

Tantahuatay’s (40.10% owned by Buenaventura)

 

Production
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Gold Oz 38,558 33,417 15% 143,643 142,667 1%
Silver Oz 227,131 129,676 75% 754,357 684,022 10%
               
Cost Applicable to Sales              
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Gold US$/Oz 475 382 24% 455 543 -16%

 

Gold production in 4Q14 increased 15% compared to the figure reported in 4Q13. CAS in 4Q14 increased 24% due to higher consumption of reagents (lime) and blasting supplies due to a higher stripping ratio (0.042 in 4Q14 vs. 0.01 in 4Q13).

 

Gold production guidance for 2015 is 138k – 142k ounces

 

El Brocal (54.07% owned by Buenaventura)

Production
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Copper MT 10,749 9,345 15% 43,282 27,469 58%
Zinc MT 8,640 4,321 100% 10,162 24,220 -58%
Silver Oz 921,625 586,324 57% 2,501,839 1,955,485 28%
               
Cost Applicable to Sales
    4Q14 4Q13 Var % FY 2014 FY 2013 Var %
Copper US$/MT 5,449 4,820 13% 5,096 5,490 -7%
Zinc US$/MT 1,321 1,262 5% 1,369 1,415 -3%

 

During 4Q14, zinc production increased 100% compared to 4Q13, due to higher volume treated from Tajo Norte (polymetalic ore). Copper production increased 15% in 4Q14 compared to 4Q13. Silver production increased 57% compared to the figure for 4Q13. Copper CAS increased 13% compared to 4Q13, due to higher commercial deduction and zinc CAS increased 5%.

 

Zinc production guidance for 2015 is 75k – 85k MT. Copper production guidance for 2015 is 30k – 35k MT.

 

General and Administrative Expenses

 

General and administrative expenses in 4Q14 were US$24.8 million, 30% higher when compared to the 4Q13 figure (US$19.2 million). Due to a US$20.2 million credit in long-term compensation provisions in 2013, total G&A expenses in 2014 were 35% higher (US$101.1 million in 2014 vs US$75.1 million in 2013).

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 6 of 23

 

Exploration in Non-Operating Areas

 

Exploration in non-operating areas during 4Q14 was US$17.8 million compared with a US$9.4 million for 4Q13. During the period, Buenaventura’s main exploration efforts were focused on the following projects: La Zanja Underground (US$5.9 million) and Tambomayo (US$3.2 million). For the twelve-month 2014 period, the expense was US$50.0 million (US$32.8 million in 2013).

 

Share in Associated Companies

 

During 4Q14, Buenaventura’s share in associated companies was negative US$113.8 million, compared to the negative US$288.0 million reported in 4Q13, composed by:

 

Share in the Result of Associates

(in millions of US$)

4Q14 4Q13 Var% FY14 FY13 Var%
Cerro Verde 20.8 34.6 -40% 77.9 116.2 -33%

Coimolache

(Tantahuatay mine)

5.0 5.7 -11% 22.3 20.8 7%
Yanacocha -139.7 -328.3 NA -174.7 -251.1 NA
Total -113.8 -288.0 NA -74.6 -114.1 NA

 

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 4Q14, gold production was 322,309 oz of gold, 75% higher than 4Q13 production (184,318 oz). For the twelve-month 2014 period, gold production was 969,944 ounces, 5% lower than 1,017,259 ounces in 2013, but in the high end of the guidance given at the beginning of the year (895k – 985k). 2015 Gold production guidance for Yanacocha is 880k – 940k ounces.

 

Despite of the fact that Yanacocha reported US$80.6 million of net income (under US GAAP), the impact of an impairment loss (in accordance to IFRS) related to Conga resulted in a loss of US$380.3 million. In 4Q14, CAS was US$426/oz, a decrease of 50% when compared to US$849/oz in 4Q13 due to lower stripping ratio in accordance with the mining plan.

 

Capital expenditures at Yanacocha were US$31.6 million in 4Q14 and US$117.3 million in FY2014.

 

Yanacocha still has a strong pipeline of growth projects: Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha Verde (scoping) and Maqui Maqui (exploration).

 

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 4Q14 copper production was 56,001 MT (10,965 MT attributable to Buenaventura), a 19% decrease compared to 4Q13 (69,318 MT and 13,572 MT attributable to Buenaventura). For full year 2014, copper production was 226,906 MT (44,428 MT attributable to Buenaventura).

 

During 4Q14, Cerro Verde reported net income of US$55.9 million, 72% lower compared to US$196.8 million in 4Q13. This was mainly due to lower sales. For FY2014, net income was US$377,605 million (compared to US$613,262 million in FY2013).

 

Capital expenditures at Cerro Verde were US$448.6 million in 4Q14 and US$1,750 billion in 2014.

 

Cerro Verde’s plant expansion has an excess of 50% progress and completion expected by 4Q15. The total CAPEX for the project is US$4.6 billion.

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 7 of 23

 

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to the net income in 4Q14 was US$5.0 million (US$5.7 million in 4Q13). For 2014, the contribution was US$22.3 million, compared to US$20.8 million reported in 2013.

 

Project Development and Exploration

 

The Tambomayo Project (100% ownership)

The Environmental Impact Study was approved in January 2015 and the Company is in the process of acquiring construction permits. Tambomayo has 251k gold ounces in reserves and 336k gold ounces in resources. The estimated annual production is 110k-120k gold ounces and 3.0 million silver ounces.

 

The San Gabriel Project (100% ownership)

The Company is currently in the process of obtaining permits for the advanced exploration with underground development of the Canahuire ore bodies and diamond drilling of other prospects.

 

Other

 

At the Board of Directors meeting held February 26, 2015, the following resolutions were passed:

 

To call for the Annual Shareholders Meeting to be held on March 27, 2015, the following items will be proposed for approval:

 

a.Approve the Annual Report as of December, 31, 2014.
b.Approve the Financial Statements as of December, 31, 2014
c.Appoint Ernst and Young (Paredes, Zaldivar, Burga y Asociados) as External Auditors for fiscal year 2015.
d.Approve the Company’s financing operations, including but not limited to the placement and issuance of obligations and/or obtainment of loans, as well as the delegation of power to the Board for the approval of all of the agreements deemed necessary or convenient to determine or approve each and every one of the terms, characteristics and conditions of the Company’s financing activities.

 

* * *

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 8 of 23

 

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 San Gabriel 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 December 31, 2014)

  BVN Operating  
  Equity % Mines / Business  
El Molle Verde S.A.C* 100.00 Trapiche project  
Minera La Zanja S.A* 53.06 La Zanja  
Sociedad Minera El Brocal S.A.A* 54.07 Colquijirca and Marcapunta  
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.
Fourth Quarter and Full Year 2014 Results
Page 9 of 23

 

APPENDIX 2

 

  GOLD PRODUCTION
  Three Months Ended December 31 Full Year
  Orcopampa Orcopampa Old Tailings Orcopampa Orcopampa Old Tailings
  2014 2013 % 2014 2013 % 2014 2013 % 2014 2013 %
Ore Milled DMT 115,862 99,093 17% 0 48,125 - 454,694 443,537 3% 0 425,639 -
Ore Grade OZ/MT 0.48 0.48 1% 0 0.059 - 0.455 0.487 -6% 0 0.048 -
Recovery Rate % 96.9% 97.2% 0% 0% 75.7% - 97.1% 96.2% 1% 0% 76.1% -
Ounces Produced 54,878 45,981 19% 0 2,136 - 202,227 208,774 -3% 0 15,897 -
                         
Orcopampa Total Production   4Q14 54,878 4Q13 48,117 FY2014 202,227 FY2013 224,671      
                         
  La Zanja Tantahuatay
  4Q14 4Q13 % FY2014 FY2013 % 4Q14 4Q13 % FY2014 FY2013 %
Ounces Produced 34,959 33,451 5% 143,724 137,395 5% 38,558 33,417 15% 143,643 142,667 1%
                         
  Breapampa            
  4Q14 4Q13 % FY2014 FY2013 %            
Ounces Produced 13,178 21,918 -40% 74,807 81,882 -9%            
                         
  SILVER PRODUCTION
  Three Months Ended December 31 Full Year
  Uchucchacua Colquijirca Uchucchacua Colquijirca
  2014 2013 % 2014 2013 % 2014 2013 % 2014 2013 %
Ore Milled DMT 287,970 238,390 21% 416,653 198,885 109% 1,013,633 1,001,102 1% 481,589 1,268,781 -62%
Ore Grade OZ/MT 13.83 15.21 -9% 1.86 2.89 -36% 14.56 14.18 3% 1.92 1.41 36%
Recovery Rate % 85.2% 79.2% 8% 63.4% 67.0% -5% 81.7% 80.6% 1% 65.3% 66.2% -1%
Ounces Produced 3,395,628 2,871,959 18% 490,896 385,221 27% 12,055,570 11,444,751 5% 603,342 1,186,022 -49%
                         
  ZINC PRODUCTION
  Three Months Ended December 31 Full Year
  Uchucchacua Colquijirca Uchucchacua Colquijirca
  2014 2013 % 2014 2013 % 2014 2013 % 2014 2013 %
Ore Milled DMT 287,970 238,390 21% 416,653 198,885 109% 1,013,633 1,001,102 1% 481,589 1,268,781 -62%
Ore Grade % 0.90 1.32% 6719% 3.08% 0.03 -9% 1.04 1.23% 8327% 3.12% 2.97% 5%
Recovery Rate % 57.9% 68.4% -15% 66.6% 64.0% 4% 60.2% 66.0% -9% 66.06% 64.3% 3%
MT Produced 1,504 2,154 -30% 8,640 4,321 100% 6,349 8,146 -22% 10,162 24,219 -58%

 

  

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 10 of 23

 

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

 

  4Q14 4Q13 FY 2014 FY 2013
Net Income -164,441 -288,060 -61,640 -79,736
Add / Substract: 201,931 372,063 335,692 445,943
Provision for income tax, net 23,928 13,410 66,012 86,482
Share in associated companies by the equity method, net 113,842 287,985 74,600 114,145
Interest income -4,124 -4,270 -8,408 -6,621
Interest expense 4,255 665 11,318 9,896
Loss on currency exchange difference 3,378 341 8,452 7,192
Long Term Compensation provision -1,842 259 89 -20,207
Depreciation and Amortization 57,684 41,445 208,698 159,140
Workers´ participation provision -20 2,700 3,669 5,437
Adquiscion gain generated by subsidiary 0 0 -59,852 0
Loss from discontinued operations 4,830 22,934 31,114 83,885
Impairment of Long-Lived Assets 0 6,594 0 6,594
EBITDA Buenaventura Direct Operations 37,490 84,003 274,052 366,207
EBITDA Yanacocha (43.65%) 86,970 18,986 161,185 263,025
EBITDA Cerro Verde (19.58%) 28,215 64,586 143,674 206,061
EBITDA Coimolache (40%) 12,335 12,713 48,941 50,610
Adjusted EBITDA (including Associated companies) 165,010 180,287 627,852 885,902

 

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.
Fourth Quarter and Full Year 2014 Results
Page 11 of 23

 

APPENDIX 4: PROVEN AND PROBABLE RESERVES

 

GOLD

 

   % Ownership   MT (000)   Grade Oz / MT   Oz (000)   Attributable 
                     
Orcopampa   100.00    631    0.509    321    321 
Tambomayo   100.00    877    0.286    251    251 
Breapampa   100.00    520    0.014    8    8 
Breapampa (on Pads and Plant)   100.00              11    11 
Julcani   100.00    310    0.015    5    5 
Mallay   100.00    122    0.035    4    4 
El Brocal Marcapunta (Sulphides)   54.07    21,991    0.013    276    149 
La Zanja   53.06    9,917    0.023    223    119 
La Zanja (on Pads and Plant)   53.06              21    11 
Yanacocha   43.65              4,900    2,139 
Yanacocha (Conga)   43.65    536,015    0.023    12,582    5,492 
Tantahuatay   40.10    57,330    0.015    840    337 
Tantahuatay (on Pads and Plant)   40.10              10    4 
                          
Total                  19,452    8,850 

 

SILVER

 

   % Ownership   MT (000)   Grade Oz / MT   Oz (000)   Attributable 
                          
Uchucchacua (Silver - Sulphides)   100.00    3,884    15.770    61,238    61,238 
Uchucchacua (Zinc - Sulphides)   100.00    209    21.050    4,393    4,393 
Uchucchacua (Silver - Oxides)   100.00    79    7.430    584    584 
Tambomayo   100.00    877    10.720    9,403    9,403 
Julcani   100.00    310    20.300    6,295    6,295 
Mallay   100.00    122    13.477    1,642    1,642 
Orcopampa   100.00    631    1.746    1,102    1,102 
Breapampa   100.00    520    0.552    287    287 
Breapampa (on Pads and Plant)   100.00              90    90 
El Brocal (Tajo Norte - La Llave)   54.07    43,622    0.900    39,260    21,228 
El Brocal Marcapunta (Sulphides)   54.07    21,991    0.600    13,194    7,134 
La Zanja   53.06    9,917    0.137    1,357    720 
La Zanja (on Pads and Plant)   53.06              855    454 
Yanacocha   43.65              66,900    29,202 
Yanacocha (Conga)   43.65    536,015    0.070    37,784    16,493 
Tantahuatay   40.10    57,330    0.340    19,505    7,820 
Tantahuatay (on Pads and Plant)   40.10              49    20 
Cerro Verde (Sulphides)   19.58    3,953,234    0.048    187,827    36,777 
Cerro Verde (Oxides)   19.58    610,019    0.010    6,039    1,182 
                          
Total                  457,804    206,063 

 

ZINC

 

   % Ownership   MT (000)   % Zn   MT (000)   Attributable 
                          
Uchucchacua (Silver - Sulphides)   100.00    3,884    1.49    58    58 
Uchucchacua (Zinc - Sulphides)   100.00    79    6.35    5    5 
Tambomayo   100.00    877    2.46    22    22 
Mallay   100.00    122    7.68    9    9 
El Brocal (Tajo Norte - La Llave)   54.07    43,622    2.53    1,104    597 
                          
Total        48,584    2.46    1,197    690 

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 12 of 23

 

LEAD

 

   % Ownership   MT (000)   % Pb   MT (000)   Attributable 
                     
Uchucchacua (Silver - Sulphides)   100.00    3,884    1.09    42    42 
Uchucchacua (Zinc - Sulphides)   100.00    79    5.05    4    4 
Tambomayo   100.00    877    1.71    15    15 
Mallay   100.00    122    6.95    8    8 
Julcani   100.00    310    2.17    7    7 
El Brocal (Tajo Norte - La Llave)   54.07    43,622    0.86    375    203 
                          
Total        48,894    0.92    452    279 

 

COPPER

 

   % Ownership   MT (000)   % Cu   MT (000)   Attributable 
                          
Julcani   100.00    310    0.52    2    2 
El Brocal Marcapunta (Sulphides)   54.07    21,991    2.26    497    269 
Yanacocha (Conga)   43.65    536,015    0.28    1,501    655 
Cerro Verde (Sulphides)   19.58    3,953,234    0.37    14,627    2,864 
Cerro Verde (Oxides)   19.58    610,019    0.48    2,928    573 
                          
Total        5,121,569    0.38    19,555    4,363 

 

MOLYBDENUM

 

   % Ownership   MT (000)   % Mo   MT (000)   Attributable 
                     
Cerro Verde (Sulphides)   19.58    3,953,234    0.014    553    108 
Cerro Verde (Oxides)   19.58    610,019    0.003    18    4 
                          
Total        4,563,253    0.013    572    112 

 

Prices used for Reserve calculation:

Gold 1,250 US$/Oz - Silver 20 US$/Oz - Zinc 2,200 US$/MT - Lead 2,100 US$/MT - Copper 6,630 US$/MT

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 13 of 23

 

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.
Fourth Quarter and Full Year 2014 Results
Page 14 of 23

 

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 Dec 31   For the 12 months ended Dec 31 
   2014   2013   2014   2013 
       (in thousands of US$)     
                 
Consolidated Cost of sales excluding depreciation and amortization   164,177    152,511    614,539    627,285 
Add:                    
Consolidated Exploration in units in operation   21,273    20,433    97,852    101,913 
Consolidated Commercial deductions   54,862    33,732    184,483    137,811 
Consolidated Selling expenses   3,483    3,278    16,605    14,842 
Consolidated Cost applicable to sales   243,795    209,954    913,479    881,852 

 

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 Dec 31   For the 12 months ended Dec 31 
   2014   2013   2014   2013 
Cost of sales by mine and mineral      (in thousands of US$)     
Julcani, Gold   8    23    3    167 
Julcani, Silver   4,687    4,979    23,114    15,565 
Julcani, Lead   384    331    1,891    1,150 
Julcani, Copper   47    91    190    316 
Mallay, Silver   1,894    2,202    8,135    11,336 
Mallay, Lead   1,538    1,288    5,959    6,237 
Mallay, Zinc   1,988    1,307    7,497    6,468 
Breapampa, Gold   8,156    9,201    35,389    46,541 
Breapampa, Silver   734    615    2,459    2,944 
Orcopampa, Gold   25,316    26,706    105,828    121,665 
Orcopampa, Silver   691    998    3,021    4,617 
Uchucchacua, Silver   31,675    18,765    130,688    100,290 
Uchucchacua, Lead   2,115    1,174    8,028    6,805 
Uchucchacua, Zinc   1,495    1,402    5,557    5,527 
La Zanja, Gold   27,504    21,666    80,495    84,213 
La Zanja, Silver   1,132    1,107    3,460    3,927 
El Brocal, Gold   986    569    3,491    2,745 
El Brocal, Silver   3,904    4,275    12,331    13,980 
El Brocal, Lead   1,178    1,523    2,051    7,581 
El Brocal, Zinc   5,701    2,547    6,478    16,030 
El Brocal, Copper   25,539    22,267    96,934    78,503 
Non Mining Units   17,505    29,475    71,540    90,679 
Consolidated Cost of sales, excluding depreciation and amortization   164,177    152,511    614,539    627,285 

 

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 Dec 31   For the 12 months ended Dec 31 
   2014   2013   2014   2013 
       (in thousands of US$)     
Exploration expenses in units in operation by mine and mineral                    
Julcani, Gold   4    10    2    67 
Julcani, Silver   2,253    2,100    10,072    6,269 
Julcani, Lead   184    140    824    463 
Julcani, Copper   23    38    83    127 
Mallay, Silver   791    867    2,942    4,325 
Mallay, Lead   643    507    2,155    2,380 
Mallay, Zinc   831    515    2,711    2,468 
Breapampa, Gold   65    188    463    2,747 
Breapampa, Silver   6    13    32    174 
Orcopampa, Gold   9,935    10,573    50,378    54,748 
Orcopampa, Silver   271    395    1,438    2,077 
Uchucchacua, Silver   5,614    4,449    24,125    22,133 
Uchucchacua, Lead   375    278    1,482    1,502 
Uchucchacua, Zinc   265    332    1,026    1,220 
La Zanja, Gold   13    25    115    1,159 
La Zanja, Silver   1    1    5    54 
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 
Non Mining Units   0    0    0    0 
Consolidated Exploration expenses in units in operation   21,273    20,433    97,852    101,913 

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 15 of 23

 

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 Dec 31   For the 12 months ended Dec 31 
   2014   2013   2014   2013 
       (in thousands of US$)     
Commercial Deductions in units in operation by mine and mineral                    
Julcani, Gold   2    9    2    62 
Julcani, Silver   1,295    1,996    6,148    5,782 
Julcani, Lead   106    133    502    427 
Julcani, Copper   12    12    53    117 
Mallay, Silver   832    1,040    3,687    4,048 
Mallay, Lead   654    609    2,620    2,227 
Mallay, Zinc   1,295    617    5,153    2,310 
Breapampa, Gold   23    18    99    104 
Breapampa, Silver   0    0    0    0 
Orcopampa, Gold   87    80    288    325 
Orcopampa, Silver   1    0    1    0 
Uchucchacua, Silver   9,530    5,609    35,786    35,240 
Uchucchacua, Lead   632    383    2,248    2,559 
Uchucchacua, Zinc   1,012    458    3,850    2,078 
La Zanja, Gold   38    29    240    172 
La Zanja, Silver   0    0    4    0 
El Brocal, Gold   1,203    415    3,777    1,903 
El Brocal, Silver   3,587    3,118    12,345    9,689 
El Brocal, Lead   642    1,110    1,317    5,254 
El Brocal, Zinc   3,320    1,857    4,105    11,110 
El Brocal, Copper   30,590    16,239    102,258    54,406 
Non Mining Units   0    0    0    0 
Consolidated Commercial deductions in units in operation   54,862    33,732    184,483    137,811 

 

Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses:

 

   For the 3 months ended Dec 31   For the 12 months ended Dec 31 
   2014   2013   2014   2013 
       (in thousands of US$)     
Selling expenses by mine and mineral                    
Julcani, Gold   0    1    0    7 
Julcani, Silver   265    163    979    684 
Julcani, Lead   22    11    80    51 
Julcani, Copper   3    3    8    14 
Mallay, Silver   141    136    661    671 
Mallay, Lead   115    80    484    369 
Mallay, Zinc   148    81    609    383 
Breapampa, Gold   62    0    367    0 
Breapampa, Silver   6    0    26    0 
Orcopampa, Gold   223    3    929    3 
Orcopampa, Silver   6    0    27    0 
Uchucchacua, Silver   863    563    3,094    3,000 
Uchucchacua, Lead   58    35    190    204 
Uchucchacua, Zinc   41    42    132    165 
La Zanja, Gold   401    157    1,382    505 
La Zanja, Silver   17    8    59    24 
El Brocal, Gold   28    36    204    202 
El Brocal, Silver   113    274    722    1,031 
El Brocal, Lead   34    97    120    559 
El Brocal, Zinc   165    163    379    1,182 
El Brocal, Copper   737    1,425    5,677    5,789 
Non Mining Units   36    0    475    0 
Consolidated Selling expenses   3,483    3,278    16,605    14,842 

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 16 of 23

 

 

   JULCANI 
   4Q 2014   4Q 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             4,687                 384                 -                       47                      5,125                23             4,979             331                -                        91                      5,424
 Add:                         
 Exploration Expenses (US$000)                   4             2,253                 184                 -                       23                      2,463                10             2,100             140                -                        38                      2,288
 Commercial Deductions (US$000)                   2             1,295                 106                 -                       12                      1,416                  9             1,996             133                -                        12                      2,151
 Selling Expenses (US$000)                   0                 265                   22                 -                          3                         290                  1                163                11                -                          3                         178
 Cost Applicable to Sales (US$000)                 14             8,499                 696                 -                       85                      9,295                43             9,238             615                -                     145                    10,040
 Divide:                         
 Volume Sold                 15         602,165                 398                 -                       15  Not Applicable                 66        878,459             605                -                        49  Not Applicable 
 CAS              972             14.11             1,748                 -                 5,660  Not Applicable              645            10.52          1,016                -                  2,940  Not Applicable 
                         
   MALLAY 
   4Q 2014   4Q 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)                  -                1,894             1,538          1,988                      -                         5,419                 -                2,202          1,288         1,307                      -                         4,797
 Add:                         
 Exploration Expenses (US$000)                  -                    791                 643              831                      -                         2,265                 -                   867             507            515                      -                         1,889
 Commercial Deductions (US$000)                  -                    832                 654          1,295                      -                         2,781                 -                1,040             609            617                      -                         2,266
 Selling Expenses (US$000)                  -                    141                 115              148                      -                            404                 -                   136                80               81                      -                            296
 Cost Applicable to Sales (US$000)                  -                3,658             2,950          4,262                      -                      10,870                 -                4,246          2,484         2,519                      -                         9,249
 Divide:                         
 Volume Sold                  -            285,846             1,797          1,992                      -     Not Applicable                  -           279,430          1,615         1,830                      -     Not Applicable 
 CAS                  -                12.80             1,641          2,139                     -     Not Applicable                  -               15.20          1,537         1,377                      -     Not Applicable 
                         
   BREAPAMPA 
   4Q 2014   4Q 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)           8,156                 734                    -                    -                         -                         8,890          9,201                615                 -                   -                         -                         9,815
 Add:                         
 Exploration Expenses (US$000)                 65                     6                    -                    -                         -                              71             188                  13                 -                   -                         -                            201
 Commercial Deductions (US$000)                 23                    -                       -                    -                         -                              23                18                    -                    -                   -                         -                               18
 Selling Expenses (US$000)                 62                     6                    -                    -                         -                              67                 -                       -                    -                   -                         -                                -   
 Cost Applicable to Sales (US$000)           8,305                 745                    -                    -                         -                         9,051          9,408                627                 -                   -                         -                       10,035
 Divide:                         
 Volume Sold         14,456           98,441                    -                    -                         -     Not Applicable         20,526          88,561                 -                   -                         -     Not Applicable 
 CAS              574               7.57                    -                    -                        -     Not Applicable              458               7.08                 -                   -                         -     Not Applicable 
                         
   ORCOPAMPA 
   4Q 2014   4Q 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)         25,316                 691                    -                    -                         -                      26,007        26,706                998                 -                   -                         -                       27,704
 Add:                         
 Exploration Expenses (US$000)           9,935                 271                    -                    -                         -                      10,206        10,573                395                 -                   -                         -                       10,969
 Commercial Deductions (US$000)                 87                     1                    -                    -                         -                              88                80                    -                    -                   -                         -                               80
 Selling Expenses (US$000)              223                     6                    -                    -                         -                            229                  3                     0                 -                   -                         -                                 3
 Cost Applicable to Sales (US$000)         35,560                 970                    -                    -                         -                      36,530        37,362             1,394                 -                   -                         -                       38,756
 Divide:                         
 Volume Sold         52,195         108,290                    -                    -                         -     Not Applicable         46,472        112,149                 -                   -                         -     Not Applicable 
 CAS              681               8.95                    -                    -                        -     Not Applicable              804            12.43                 -                   -                         -     Not Applicable 
                         
   UCHUCCHACUA 
   4Q 2014   4Q 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)                  -              31,675             2,115          1,495                      -                      35,285                 -             18,765          1,174         1,402                      -                       21,341
 Add:                         
 Exploration Expenses (US$000)                  -                5,614                 375              265                      -                         6,254                 -                4,449             278            332                      -                         5,060
 Commercial Deductions (US$000)                  -                9,530                 632          1,012                      -                      11,174                 -                5,609             383            458                      -                         6,449
 Selling Expenses (US$000)                  -                    863                   58                41                      -                            962                 -                   563                35               42                      -                            640
 Cost Applicable to Sales (US$000)                  -              47,683             3,180          2,812                      -                      53,675                 -             29,386          1,870         2,234                      -                       33,491
 Divide:                         
 Volume Sold                  -        3,206,509             1,665          1,013                      -     Not Applicable                  -        1,874,428          1,135         1,502                      -     Not Applicable 
 CAS                  -                14.87             1,909          2,777                     -     No Applicable                  -               15.68          1,648         1,488                      -     No Applicable 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 17 of 23

   JULCANI 
   FY 2014   FY 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)                     3              23,114                1,891                -                     190                    25,199              167           15,565          1,150                -                     316                   17,198
 Add:                         
 Exploration Expenses (US$000)                     2              10,072                    824                -                        83                    10,981                67             6,269             463                -                     127                      6,927
 Commercial Deductions x(US$000)                     2                6,148                    502                -                        53                      6,706                62             5,782             427                -                     117                      6,388
 Selling Expenses (US$000)                     0                    979                      80                -                          8                      1,067                   7                684                51                -                       14                         755
 Cost Applicable to Sales (US$000)                     7              40,314                3,297                -                     335                    43,953              304           28,299          2,091                -                     575                   31,269
 Divide:                         
 Volume Sold                  12        2,851,318                2,057                -                        64  Not Applicable               378     2,227,960          1,713                -                     140  No Applicable 
 CAS                603                14.14                1,603                -                  5,195  No Applicable               804             12.70          1,220                -                 4,103  No Applicable 
                         
   MALLAY 
   FY 2014   FY 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)                    -                   8,135                5,959         7,497                      -                       21,590                  -              11,336          6,237         6,468                      -                      24,041
 Add:                         
 Exploration Expenses (US$000)                    -                   2,942                2,155         2,711                      -                         7,807                  -                4,325          2,380         2,468                      -                         9,173
 Commercial Deductions (US$000)                    -                   3,687                2,620         5,153                      -                       11,460                  -                4,048          2,227         2,310                      -                         8,584
 Selling Expenses (US$000)                    -                       661                    484            609                      -                         1,754                  -                   671             369            383                      -                         1,423
 Cost Applicable to Sales (US$000)                    -                 15,425              11,217       15,970                      -                       42,612                  -              20,380        11,213       11,628                      -                      43,221
 Divide:                         
 Volume Sold                    -           1,121,202                7,253         8,609                      -     Not Applicable                   -        1,146,442          6,570         7,614                      -     Not Applicable 
 CAS                   -                   13.76                1,547         1,855                      -     No Applicable                  -                17.78          1,707         1,527                     -     No Applicable 
                         
   BREAPAMPA 
   FY 2014   FY 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)          35,389                2,459                       -                   -                         -                       37,847        46,541             2,944                 -                   -                         -                      49,485
 Add:                         
 Exploration Expenses (US$000)                463                      32                       -                   -                         -                            495           2,747                174                 -                   -                         -                         2,921
 Commercial Deductions (US$000)                  99                       -                          -                   -                         -                               99              104                    -                    -                   -                         -                            104
 Selling Expenses (US$000)                367                      26                       -                   -                         -                            393                  -                       -                    -                   -                         -                                -   
 Cost Applicable to Sales (US$000)          36,318                2,516                       -                   -                         -                       38,834        49,392             3,117                 -                   -                         -                      52,509
 Divide:                         
 Volume Sold          80,358            383,733                       -                   -                         -     Not Applicable         80,178        311,634                 -                   -                         -     Not Applicable 
 CAS                452                  6.56                       -                   -                         -     No Applicable               616             10.00                 -                   -                        -     No Applicable 
                         
   ORCOPAMPA 
   FY 2014   FY 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)        105,828                3,021                       -                   -                         -                    108,849      121,665             4,617                 -                   -                         -                    126,282
 Add:                         
 Exploration Expenses (US$000)          50,378                1,438                       -                   -                         -                       51,816        54,748             2,077                 -                   -                         -                      56,825
 Commercial Deductions (US$000)                288                        1                       -                   -                         -                            289              325                     0                 -                   -                         -                            325
 Selling Expenses (US$000)                929                      27                       -                   -                         -                            955                   3                     0                 -                   -                         -                                 3
 Cost Applicable to Sales (US$000)        157,422                4,487                       -                   -                         -                    161,909      176,741             6,694                 -                   -                         -                    183,436
 Divide:                         
 Volume Sold        204,862            401,782                       -                   -                         -     Not Applicable       221,322        516,033                 -                   -                         -     Not Applicable 
 CAS                768                11.17                       -                   -                         -     No Applicable               799             12.97                 -                   -                        -     No Applicable 
                         
   UCHUCCHACUA 
   FY 2014   FY 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)                    -               130,688                8,028         5,557                      -                    144,273                  -           100,290          6,805         5,527                      -                    112,622
 Add:                         
 Exploration Expenses (US$000)                    -                 24,125                1,482         1,026                      -                       26,633                  -              22,133          1,502         1,220                      -                      24,854
 Commercial Deductions (US$000)                    -                 35,786                2,248         3,850                      -                       41,884                  -              35,240          2,559         2,078                      -                      39,877
 Selling Expenses (US$000)                    -                   3,094                    190            132                      -                         3,416                  -                3,000             204            165                      -                         3,369
 Cost Applicable to Sales (US$000)                    -               193,694              11,947       10,565                      -                    216,207                  -           160,663        11,069         8,990                      -                    180,722
 Divide:                         
 Volume Sold                    -         11,940,167                6,530         4,288                      -     Not Applicable                   -        9,748,206          6,977         6,340                      -     Not Applicable 
 CAS                   -                   16.22                1,830         2,464                      -     No Applicable                  -                16.48          1,586         1,418                     -     No Applicable 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 18 of 23

   LA ZANJA 
   4Q 2014   4Q 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)         27,504             1,132                    -                    -                         -                      28,636        21,666             1,107                 -                   -                         -                       22,773
 Add:                         
 Exploration Expenses (US$000)                 13                     1                    -                    -                         -                              14                25                     1                 -                   -                         -                               26
 Commercial Deductions (US$000)                 38                    -0                    -                    -                         -                              38                29                    -                    -                   -                         -                               29
 Selling Expenses (US$000)              401                   17                    -                    -                         -                            418             157                     8                 -                   -                         -                            165
 Cost Applicable to Sales (US$000)         27,957             1,149                    -                    -                         -                      29,106        21,877             1,116                 -                   -                         -                       22,994
 Divide:                         
 Volume Sold         33,098         101,988                    -                    -                         -     Not Applicable         32,738        108,049                 -                   -                         -     Not Applicable 
 CAS              845             11.27                    -                    -                        -     Not Applicable              668            10.33                 -                   -                         -     Not Applicable 
                         
   BROCAL 
   4Q 2014   4Q 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)              986             3,904             1,178          5,701            25,539                   37,309             569             4,275          1,523         2,547             22,267                    31,180
 Add:                         
 Exploration Expenses (US$000)                  -                       -                       -                    -                         -                                -                    -                       -                    -                   -                         -                                -   
 Commercial Deductions (US$000)           1,203             3,587                 642          3,320            30,590                   39,343             415             3,118          1,110         1,857             16,239                    22,739
 Selling Expenses (US$000)                 28                 113                   34              165                  737                      1,077                36                274                97            163               1,425                      1,996
 Cost Applicable to Sales (US$000)           2,218             7,604             1,855          9,186            56,866                   77,729          1,020             7,667          2,730         4,567             39,931                    55,915
 Divide:                         
 Volume Sold           2,278         672,417             1,609          6,955            10,436  Not Applicable           1,202        539,230          1,932         3,620               8,284  Not Applicable 
 CAS              973             11.31             1,152          1,321              5,449  Not Applicable              849            14.22          1,413         1,262               4,820  Not Applicable 
                         
   NON MINING COMPANIES 
   4Q 2014   4Q 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)                  -                       -                       -                    -                         -                      17,505                 -                       -                    -                   -                         -                       29,475
 Add:                                        -                                          -   
 Selling Expenses (US$000)                  -                       -                       -                    -                         -                              36                 -                       -                    -                   -                         -                                 0
 Total (US$000)                  -                       -                       -                    -                         -                      17,542                 -                       -                    -                   -                         -                       29,475
                         
   BUENAVENTURA CONSOLIDATED 
   4Q 2014   4Q 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)         61,970           44,717             5,215          9,184            25,586                 164,177        58,165          32,941          4,316         5,256             22,358                 152,511
 Add:                         
 Exploration Expenses (US$000)         10,017             8,936             1,202          1,096                    23                   21,273        10,796             7,826             925            847                     38                    20,433
 Commercial Deductions (US$000)           1,353           15,245             2,035          5,627            30,602                   54,862             551          11,763          2,235         2,932             16,251                    33,732
 Selling Expenses (US$000)              714             1,411                 228              354                  740                      3,483             197             1,144             223            286               1,428                      3,278
 Cost Applicable to Sales (US$000)         74,054           70,308             8,680        16,260            56,951                 243,795        69,709          53,674          7,699         9,321             40,076                 209,954
 Divide:                         
 Volume Sold      102,043     5,075,656             5,470          9,961            10,451  Not Applicable      101,004     3,880,307          5,287         6,952               8,333  Not Applicable 
 CAS              726             13.85             1,587          1,632              5,449  Not Applicable              690            13.83          1,456         1,341               4,809  Not Applicable 
                         
   COIMOLACHE 
   4Q 2014   4Q 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)         14,903             1,167                    -                    -                         -                      16,070        11,868                746                 -                   -                         -                       12,613
 Add:                         
 Exploration Expenses (US$000)           3,510                 275                    -                    -                         -                         3,785          1,079                  68                 -                   -                         -                         1,147
 Commercial Deductions (US$000)              202                   19                    -                    -                         -                            220             205                  15                 -                   -                         -                            220
 Selling Expenses (US$000)              278                   22                    -                    -                         -                            300                58                     4                 -                   -                         -                               61
 Cost Applicable to Sales (US$000)         18,893             1,482                    -                    -                         -                      20,375        13,209                831                 -                   -                         -                       14,041
 Divide:                         
 Volume Sold         39,776         233,169                    -                    -                         -     Not Applicable         34,565        134,379                 -                   -                         -     Not Applicable 
 CAS              475               6.36                    -                    -                        -     Not Applicable              382               6.19                 -                   -                         -     Not Applicable 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 19 of 23

   LA ZANJA 
   FY 2014   FY 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)          80,495                3,460                       -                   -                         -                       83,955        84,213             3,927                 -                   -                         -                      88,140
 Add:                         
 Exploration Expenses (US$000)                115                        5                       -                   -                         -                            120           1,159                   54                 -                   -                         -                         1,213
 Commercial Deductions (US$000)                240                        4                       -                   -                         -                            244              172                    -                    -                   -                         -                            172
 Selling Expenses (US$000)             1,382                      59                       -                   -                         -                         1,441              505                   24                 -                   -                         -                            528
 Cost Applicable to Sales (US$000)          82,231                3,528                       -                   -                         -                       85,760        86,049             4,004                 -                   -                         -                      90,054
 Divide:                         
 Volume Sold        143,151            418,565                       -                   -                         -     Not Applicable       132,992        381,091                 -                   -                         -     Not Applicable 
 CAS                574                  8.43                       -                   -                         -     No Applicable               647             10.51                 -                   -                        -     Not Applicable 
                         
   BROCAL 
   FY 2014   FY 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)             3,491              12,331                2,051         6,478             96,934                 121,285           2,745           13,980          7,581       16,030            78,503                 118,838
 Add:                         
 Exploration Expenses (US$000)                    -                          -                          -                   -                         -                                -                     -                       -                    -                   -                         -                                -   
 Commercial Deductions (US$000)             3,777              12,345                1,317         4,105          102,258                 123,801           1,903             9,689          5,254       11,110            54,406                   82,361
 Selling Expenses (US$000)                204                    722                    120            379               5,677                      7,103              202             1,031             559         1,182               5,789                      8,763
 Cost Applicable to Sales (US$000)             7,472              25,398                3,488       10,962          204,869                 252,189           4,850           24,699        13,393       28,322          138,698                 209,962
 Divide:                         
 Volume Sold             7,874        1,928,243                2,759         8,007             40,198  Not Applicable            4,619     1,460,681          8,392       20,011            25,266  Not Applicable 
 CAS                949                13.17                1,264         1,369               5,096  No Applicable           1,050             16.91          1,596         1,415              5,490  Not Applicable 
                         
   NON MINING COMPANIES 
   FY 2014   FY 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)                    -                          -                          -                   -                         -                       71,540                  -                       -                    -                   -                         -                      90,679
 Add:                                        -                                          -   
 Selling Expenses (US$000)                    -                          -                          -                   -                         -                            475                  -                       -                    -                   -                         -                                -   
 Total (US$000)                    -                          -                          -                   -                         -                       72,015                  -                       -                    -                   -                         -                      90,679
                         
   BUENAVENTURA CONSOLIDATED 
   FY 2014   FY 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)        225,206            183,208              17,929       19,532             97,124                 614,539      255,332        152,658        21,773       28,025            78,819                 627,285
 Add:                         
 Exploration Expenses (US$000)          50,957              38,614                4,461         3,737                     83                    97,852        58,721           35,032          4,345         3,688                  127                 101,913
 Commercial Deductions (US$000)             4,405              57,972                6,686       13,109          102,312                 184,483           2,566           54,757        10,467       15,497            54,524                 137,811
 Selling Expenses (US$000)             2,883                5,568                    874         1,120               5,685                    16,605              718             5,409          1,182         1,730               5,803                   14,842
 Cost Applicable to Sales (US$000)        283,450            285,362              29,950       37,498          205,203                 913,479      317,337        247,857        37,767       48,940          139,272                 881,852
 Divide:                         
 Volume Sold        436,257      19,045,010              18,599       20,904             40,263  Not Applicable       439,489   15,792,046        23,652       33,965            25,406  Not Applicable 
 CAS                650                14.98                1,610         1,794               5,097  Not Applicable               722             15.70          1,597         1,441              5,482  Not Applicable 
                         
   COIMOLACHE 
   FY 2014   FY 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)          55,041                4,237                       -                   -                         -                       59,278        60,112             4,953                 -                   -                         -                      65,064
 Add:                         
 Exploration Expenses (US$000)             8,178                    629                       -                   -                         -                         8,808        15,485             1,276                 -                   -                         -                      16,760
 Commercial Deductions (US$000)                453                      34                       -                   -                         -                            487              873                   87                 -                   -                         -                            960
 Selling Expenses (US$000)             1,001                      77                       -                   -                         -                         1,078              482                   40                 -                   -                         -                            522
 Cost Applicable to Sales (US$000)          64,673                4,977                       -                   -                         -                       69,650        76,951             6,355                 -                   -                         -                      83,306
 Divide:                         
 Volume Sold        142,084            741,525                       -                   -                         -     Not Applicable       141,633        691,887                 -                   -                         -     Not Applicable 
 CAS                455                  6.71                       -                   -                         -     No Applicable               543               9.18                 -                   -                        -     Not Applicable 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 20 of 23

APPENDIX 6: ALL-IN SUSTAINING COST FOR FY14

 

   Buenaventura1   La Zanja   Tantahuatay   Attributable Production2 
   FY14   FY14   FY14   FY14 
Au Ounces Sold BVN        426,919                               
Au Ounces bought from La Zanja        -141,688                               
Au Ounces Sold Net        285,231         142,827         142,084         417,984 

 

   FY14   FY14   FY14   FY14 
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   352,892    1,237    84,381    591    59,228    417    421,412    1,008 
Exploration in Operating Units   97,732    343    19,809    139    8,808    62    111,774    267 
Royalties   27,885    98    555    4    0    0    28,180    67 
Comercial Deductions4   60,607    212    3,468    24    487    3    62,643    150 
Selling Expenses   7,591    27    1,441    10    1,078    8    8,788    21 
Administrative Expenses5   49,740    174    5,920    41    2,073    15    53,712    129 
Other Expenses   0    0    11,874    83    6,497    46    8,905    21 
Other Incomes   0    0    -13,317    -93    -9,016    -63    -10,681    -26 
Administrative charges   0    0    4,277    30    583    4    2,503    6 
Sustaining Capex6   25,448    89    20,452    143    35,360    249    50,478    121 
                                         
By-product Credit   -375,654    -1,317    -7,881    -55    -13,765    -97    -385,354    -922 
                                         
All-in Sustaining Cost   246,242    863    130,979    917    91,333    643    352,360    843 

 

*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.
Fourth Quarter and Full Year 2014 Results
Page 21 of 23

 

APPENDIX 7:

 

Compañía de Minas Buenaventura S.A.A. and Subsidiaries

Consolidated Statement of Financial Position

As of December 31, 2014 and December 31, 2013

 

    2,014    2,013 
    US$(000)    US$(000) 
Assets          
Current assets          
Cash and cash equivalents   78,512    51,276 
Trade and other accounts receivable, net   281,604    261,003 
Income tax credit   53,746    37,370 
Prepaid expenses   16,954    14,597 
Hedge derivative financial instruments   3,688    - 
Embedded derivatives for concentrate sales, net   -    1,857 
Inventory, net   150,284    175,719 
Total current assets   584,788    541,822 
Assets classified as held for sale   18,683    - 
    603,471    541,822 
           
Non-current assets          
Trade and other accounts receivable, net   26,651    28,079 
Long-term inventory   34,088    23,366 
Investment in associates   2,224,381    2,350,302 
Mining concessions, development costs, property, plant and equipment, net   1,715,452    1,515,460 
Investment properties   11,200    - 
Deferred income tax asset   47,675    83,525 
Other assets, net   9,356    7,133 
Total non-current assets   4,068,803    4,007,865.00 
           
Total assets   4,672,274    4,549,687.00 
           
Liabilities and shareholders’ equity          
Current liabilities          
Overdraft and bank loans   40,000    - 
Trade and other accounts payable   254,000    285,532 
Provisions   67,895    69,800 
Income tax payable   3,556    2,140 
Hedge derivative financial instruments   -    1,093 
Embedded derivatives for concentrate sales, net   9,072    - 
Financial obligations   69,950    11,370 
Total current liabilities   444,473    369,935 
           
Liabilities directly associated with assets classified as held for sale   28,890    - 
    473,363    369,935 
           
Non-current liabilities          
Financial liability at fair value through profit or loss   23,026    - 
Trade and other accounts payable   15,240    12,229 
Provisions   63,571    106,376 
Financial obligations   313,355    223,027 
Deferred income tax liability   21,594    - 
Total non-current liabilities   436,786    341,632 
           
Total liabilities   910,149    711,567 
           
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   162,710    162,663 
Other reserves   269    269 
Retained earnings   2,328,423    2,413,130 
Other equity reserves   1,755    104 
    3,464,105    3,547,114 
Non-controlling interest   298,020    291,006 
Total shareholders’ equity   3,762,125    3,838,120 
           
Total liabilities and shareholders’ equity   4,672,274    4,549,687 

 

  
 Compañía de Minas Buenaventura S.A.A.
Fourth Quarter and Full Year 2014 Results
Page 22 of 23

  

Compañía de Minas Buenaventura S.A.A. and Subsidiaries

Consolidated Statement of Income

For the three and twelve month periods ended December 31, 2014 and 2013

 

   For the three month period
ended December, 31
   For the twelve month period
ended December, 31
 
   2,014   2,013   2,014   2,013 
   US$(000)   US$(000)   US$(000)   US$(000) 
Operating income                    
Net sales   253,669    287,039    1,128,305    1,215,421 
Royalty income   11,911    7,152    36,867    44,185 
Total operating income   265,580    294,191    1,165,172    1,259,606 
                     
Operating costs                    
Cost of sales, without considering depreciation and amortization   (164,177)   (152,511)   (614,539)   (627,285)
Exploration in operating units   (21,273)   (20,433)   (97,852)   (101,913)
Depreciation and amortization   (57,684)   (41,445)   (208,698)   (159,140)
Mining royalties   (6,630)   (6,704)   (28,440)   (30,402)
Total operating costs   (249,764)   (221,093)   (949,529)   (918,740)
                     
Gross profit   15,816    73,098    215,643    340,866 
                     
Operating expenses                    
Administrative expenses   (24,833)   (19,154)   (101,102)   (75,118)
Exploration in non-operating areas   (17,833)   (9,444)   (50,007)   (32,805)
Selling expenses   (3,483)   (3,278)   (16,605)   (14,842)
Excess workers' participation        (704)        (704)
Other, net   12,001    (7,513)   13,667    (2,154)
Total operating expenses   (34,148)   (40,093)   (154,047)   (125,623)
                     
Operating profit   (18,332)   33,005    61,596    215,243 
                     
Other income, net                    
Share in the results of associates under equity method   (113,842)   (287,985)   (74,600)   (114,145)
Financial income   4,124    4,270    8,408    6,621 
Financial expenses   (4,255)   (665)   (11,318)   (9,896)
Net loss from currency exchange difference   (3,378)   (341)   (8,452)   (7,192)
Adquiscion gain generated by subsidiary   -    -    59,852    - 
Total other income, net   (117,351)   (284,721)   (26,110)   (124,612)
                     
Profit before income taxes and non-controlling interest   (135,683)   (251,716)   35,486    90,631 
                     
Income taxes   (23,928)   (13,410)   (66,012)   (86,482)
                     
Net profit   (159,611)   (265,126)   (30,526)   4,149 
                     
Discontinued operations                    
Loss from discontinued operations   (4,830)   (22,934)   (31,114)   (83,885)
Net Income   (164,441)   (288,060)   (61,640)   (79,736)
                     
Attributable to:                    
Owners of the parent   (161,377)   (295,008)   (76,065)   (107,257)
Non-controlling interest   (3,064)   6,948    14,425    27,521 
    (164,441)   (288,060)   (61,640)   (79,736)
                     
Basic and diluted earnings per share attributable to owners of the parent, stated in U.S. dollars   (0.63)   (1.16)   (0.30)   (0.42)
                     
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.
Fourth Quarter and Full Year 2014 Results
Page 23 of 23

 

Compañía de Minas Buenaventura S.A.A. and Subsidiaries

Consolidated Statement of Cash Flows

For the three and twelve month periods ended December 31, 2014 and 2013

 

   For the three month period
ended December, 31
   For the twelve month period
ended December, 31
 
   2,014   2,013   2,014   2,013 
   US$(000)   US$(000)   US$(000)   US$(000) 
Operating activities                
Proceeds from sales   277,368    311,879    1,133,759    1,351,359 
Value Added Tax (VAT) recovered   -    7,815    39,685    66,921 
Royalties received   14,719    10,738    36,867    50,562 
Dividends received   6,015    2,027    12,941    9,803 
Interest received   4,027    4,102    8,333    8,235 
Payments to suppliers and third-parties   (113,411)   (98,216)   (633,146)   (752,813)
Payments to employees   (46,490)   (46,522)   (203,562)   (216,799)
Payment of income tax   (1,768)   (47)   (33,161)   (66,427)
Payment of royalties   (5,783)   (2,632)   (22,631)   (30,623)
Payment of interest   (4,032)   (2,936)   (9,405)   (11,494)
                     
Net cash and cash equivalents provided by operating activities   130,645    186,208    329,680    408,724 
                     
Investing activities                    
Proceeds from settlement of financial assets at fair value through profit or loss   -    12,944    -    52,944 
Proceeds from collections of loans to associates   -    4,043    15,553    24,537 
Proceeds from sales of mining concessions, property, plant and equipment   13,217    47    1,681    5,010 
Proceeds from settlement of investment in shares   -    -    -    - 
Acquisitions of mining concessions, development costs, property, plant and equipment   (42,920)   (147,494)   (284,903)   (503,576)
Acquisitions of investment properties   -    -    -    - 
Payment for purchase of investments   -    -    (80,373)   - 
Associates loans granted   -    -    -    - 
Contributions and investments in associates   (2,092)   (1,649)   (2,912)   (6,988)
         -           
Net cash and cash equivalents used in investing activities   (31,795)   (132,109)   (350,954)   (428,073)
                     
Financing activities                    
Increase of bank loans   (504)   (21,126)   40,000    - 
Increase in financial obligations   (118,321)   176,975    68,237    236,975 
Payment of financial obligations   (2,433)   (260,089)   (42,205)   (260,231)
Dividends paid   (5,845)   (2,567)   (8,642)   (78,836)
Dividends paid to non-controlling interest   (2,640)   -    (8,880)   (13,533)
Purchase of associates' shares   -    -    -    (462)
                     
Net cash and cash equivalents provided by (used in) financing activities   (129,743)   (106,807)   48,510    (116,087)
                     
Net increase (decrease) in cash and cash equivalents during the period   (30,893)   (52,708)   27,236    (135,436)
Cash and cash equivalents at the beginning of the period   109,405    103,984    51,276    186,712 
                     
Cash and cash equivalents at period-end   78,512    51,276    78,512    51,276 

 

  
  

 

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: February 27, 2015

 

 
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