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 first quarter (1Q15). 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$).
First Quarter 2015 Highlights:
- In 1Q15, EBITDA from direct operations
was US$49.3 million and adjusted EBITDA (including associated
companies) was US$142.9 million.
- Total attributable production in 1Q15
was 194k gold ounces and 5.6 million silver ounces (compared to
190k gold ounces and 4.1 million silver ounces in 1Q14).
- Yanacocha´s CAS in 1Q15 was US$479/oz,
a decrease of 56% when compared to US$1,087/oz in 1Q14 due to lower
ore treated, higher grade and lower stripping ratio.
- At the Tambomayo project, construction
permits are expected to be ready in 2Q15. Production should begin
in 2Q16 at 1,000 TPD (110-120K gold ounces and 3.0 million silver
ounces per year).
- At the San Gabriel (Chucapaca) project,
construction of the ramp is expected to start in May 2015. The
Environmental Impact Assessment (EIA) of the project´s construction
is expected to be submitted in 3Q15.
- At El Brocal, testing of the plant
expansion was completed and production ramp up reached 16.5k TPD
level. Full production capacity level (18K TPD) will be reached in
2Q15.
- Cerro Verde’s plant expansion to 360K
TPD is in-line with schedule and budget (approx. 70% complete).
Additional production from the expanded plant is scheduled for
early 2016. Will become the largest concentration facility in the
world.
Financial Highlights (in millions of US$, except EPS
figures):
1Q15
1Q14 Var% Total Revenues 252.0
280.9
-10% Operating Profit -5.9
14.0
N.A. EBITDA Direct Operations
49.3 63.1
-22% Adjusted EBITDA (Inc
Associates) 142.9 113.5
26% Net
Income 17.3 -16.1
N.A. EPS*
0.07 -0.06
N.A. (*) as of March
31, 2015, Buenaventura had 254,186,867 outstanding shares.
Operating Revenues
During 1Q15, net sales were US$242.9 million, a 11% decrease
compared to the US$272.9 million reported in 1Q14. This was
explained by the lower gold, silver and copper prices despite
higher silver and zinc volume sold.
Royalty income increased 13%, to US$9.1 million in 1Q15 compared
to the US$8.0 million reported in 1Q14. This was due to higher
revenues at Yanacocha (15% higher QoQ).
Operating Highlights
1Q15
1Q14
Var%
Net Sales (in millions of
US$)
242.9 272.9
-11%
Average Realized Gold Price
(US$/oz)*
1,221 1,311
-7%
Average Realized Gold
Price (US$/oz) inc. Affiliates
1,222 1,301
-6%
Average Realized Silver
Price (US$/oz)*
15.35 19.79
-22%
Average Realized Lead
Price (US$/MT)*
1,705 2,174
-22%
Average Realized Zinc Price
(US$/MT)*
2,061 2,198
-6%
Average Realized
Copper Price (US$/MT)*
5,059 7,059
-28% (*)
Buenaventura’s Direct Operations
Volume Sold
1Q15
1Q14
Var%
Gold Oz Direct Operations 101,232 107,238
-6% Gold Oz inc Associated Companies
221,114 209,213
6% Silver Oz
4,797,641 4,155,234
15% Lead MT
9,368 4,081
130% Zinc MT 13,535
2,834
378% Copper MT 3,630
9,001
-60%
Production and Operating Costs
In 1Q15, Buenaventura’s gold equity production from direct
operations decreased 14%, from 99.5k ounces in 1Q14 to 85.3k ounces
in 1Q15 because Breapampa stopped mining last November 2014
according to the mining plan. Gold production including associated
companies increased 2% due to higher production in Yanacocha.
Silver equity production from direct operations increased 38%,
mainly due to higher production in Uchucchacua and El Brocal.
Equity Production
1Q15
1Q14
Var%
Gold Oz Direct
Operations1
85,310 99,457
-14% Gold Oz including
Associated Companies 193,586 190,036
2% Silver Oz Direct Operations1
5,479,949 3,972,966
38% Silver Oz including
Associated Companies 5,613,731 4,110,396
37% Lead MT 7,440 4,468
67% Zinc MT 11,345 3,920
189% Copper MT Direct Operations1 2,189
5,359
-59% Copper MT including Associated
Companies 11,710 17,294
-32%
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).
Orcopampa’s (100% owned by Buenaventura)
Production
1Q15
1Q14
Var %
Gold Oz 50,068 44,929 11%
Silver Oz 112,210 79,783
41%
Cost Applicable to Sales
1Q15
1Q14
Var %
Gold US$/Oz 698 832 -16%
Gold production at Orcopampa increased 11% in 1Q15 (compared to
1Q14) due to higher ore treated and grade (Appendix 2). Cost
Applicable to Sales (CAS) in 1Q15 decreased 16% mainly explained by
lower reagent (cyanide) costs, fuel consumption and contractors
costs.
Gold production guidance for 2015 is 190k – 205k ounces.
Uchucchacua (100% owned by Buenaventura)
Production
1Q15
1Q14
Var %
Silver Oz 3,529,174 2,368,509
49%
Zinc MT 1,586 1,470
8%
Lead MT 2,059 1,688
22%
Cost Applicable to Sales
1Q15
1Q14
Var %
Silver US$/Oz 14.45 17.08 -15%
Silver production in 1Q15 increased 49% compared to 1Q14,
explained by higher ore volume treated and recovery rate (see
Appendix 2). Cost Applicable to Sales (CAS) in 1Q15 decreased 15%
compared to 1Q14 mainly explained by a reduction in list prices of
our underground mining contractors and an overall reduction in
hauling distances.
Silver production guidance for 2015 is 14.5 million - 15.0
million ounces.
Mallay (100% owned by Buenaventura)
Production
1Q15
1Q14
Var %
Silver Oz 307,254 297,180
3%
Zinc MT 2,179 2,450
-11%
Lead MT 1,652 1,812
-9%
Cost Applicable to Sales
1Q15
1Q14
Var %
Silver US$/Oz 14.39 13.62
6%
Silver production in 1Q15 was 3% higher than in 1Q14 due to
higher recovery rate. Cost Applicable to Sales (CAS) in 1Q15 was 6%
higher compared to 1Q14 due to an increase in mine site exploration
expenses.
Silver production guidance for 2015 is 1.1 million – 1.3 million
ounces.
Julcani (100% owned by Buenaventura)
Production 1Q15
1Q14 Var % Silver
Oz 816,352 763,437 7%
Cost Applicable to Sales
1Q15 1Q14 Var %
Silver US$/Oz 13.24 12.54
6%
Silver production in 1Q15 was 7% higher than in 1Q14 explained
by higher ore treated and recovery rate. Cost Applicable to Sales
(CAS) in 1Q15 was 6% higher than 1Q14 mainly explained by an
increase in contractors and supply expenses due to more drilling
and drifting activities.
Silver production guidance for 2015 is 2.9 million – 3.1 million
ounces.
La Zanja’s (53.06% owned by Buenaventura)
Production 1Q15
1Q14 Var % Gold Oz 30,455
35,937 -15%
Silver Oz 95,308
95,386 0%
Cost Applicable to Sales
1Q15
1Q14 Var % Gold US$/Oz
823 554 49%
Gold production in 1Q15 decreased 15% when compared to 1Q14 due
to a higher stripping ratio. CAS in 1Q15 increased 49% mainly
explained by higher contractor expenses associated with the hauling
distance from Pampa Verde, as well as additional acid water
treatment costs.
Gold production guidance for 2015 is 138k – 142k ounces.
Tantahuatay’s (40.10% owned by Buenaventura)
Production 1Q15
1Q14 Var % Gold Oz 30,207
32,633 -7%
Silver Oz 160,264
122,316 31%
Cost Applicable to Sales
1Q15
1Q14 Var % Gold US$/Oz
537 442 21%
Gold production in 1Q15 decreased 7% compared to the figure
reported in 1Q14. CAS in 1Q15 increased 21% due to higher stripping
ratio and lower ore grade in the current area of operation.
Gold production guidance for 2015 is 138k – 142k ounces
El Brocal (54.07% owned by Buenaventura)
Production 1Q15
1Q14 Var % Copper
MT 3,869 9,792 -60%
Zinc
MT 14,020 0 N.A.
Silver
Oz 982,254 497,657 97%
Cost Applicable to Sales
1Q15 1Q14 Var %
Copper US$/MT 5,536 5,194
7%
Zinc US$/MT 1,506 0
N.A.
During 1Q15, El Brocal produced 3,869 MT of copper, 14,020 MT of
zinc and 982,254 ounces of silver (97% increase when compared to
497,657 ounces in 1Q14). Copper CAS was 7% higher compared to 1Q14
due to an increase in commercial deductions. Zinc CAS was 1,506
US$/MT.
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 1Q15 were US$21.5
million, 22% lower when compared to the 1Q14 figure (US$27.7
million) due to a lower long-term compensation provision (US$ 1.9M
in 1Q14 vs US$0.1 in 1Q15) and a 46% decrease in services provided
by third parties.
Exploration in Non-Operating Areas
Exploration in non-operating areas during 1Q15 was US$10.7
million in-line with US$10.4 million for 1Q14. During the period,
Buenaventura’s main exploration efforts were focused on the
following projects: La Zanja Underground (US$5.1 million) and
Tambomayo (US$3.4 million).
Share in Associated Companies
During 1Q15, Buenaventura’s share in associated companies was
US$36.3 million, compared to the negative US$4.5 million reported
in 1Q14, composed by:
Share in the Result of
Associates(in millions of US$)
1Q15
1Q14
Var%
Yanacocha Contribution 26.2 (24.5) N.A.
Cerro Verde Contribution 8.0 15.7 -49%
CDH Contribution 0.0 (0.1) -100%
Coimolache Contribution 2.1 4.8 -56%
Other Minor Investments 0.0 (0.4) N.A.
Total 36.3 (4.5) N.A.
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), during 1Q15, gold
production was 248,055 ounces, 20% higher than 1Q14 production
(207,511 ounces). 2015 Gold production guidance for Yanacocha is
880k – 940k ounces.
Under IFRS, Yanacocha reported US$60.1 million of net income
(US$2.5 million under US GAAP).
In 1Q15, CAS was US$479/oz, a decrease of 56% when compared to
US$1,087/oz in 1Q14 due to lower stripping ratio in accordance with
the mining plan.
Capital expenditures at Yanacocha were US$15.2 million in
1Q15.
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), during 1Q15
copper production was 48,623 MT (9,520 MT attributable to
Buenaventura), a 20% decrease compared to 1Q14 (60,955 MT and
11,935 MT attributable to Buenaventura) due to a lower ore grade
and recovery in copper concentrates.
During 1Q15, Cerro Verde reported net income of US$40.7 million,
59% lower compared to US$98.0 million in 1Q14. The decrease is
primarily as result of a decrease in net sales of US$89.7 million
which is attributable to a 10% decrease in average realized copper
price (US$ 2.49 in 1Q15 vs US$2.76 in 1Q14) and lower copper sales
volumes.
Capital expenditures at Cerro Verde were US$468.9 million in
1Q15 and US$439.4 million in 2014.
Cerro Verde’s plant expansion has an excess of 70% progress and
completion expected by 4Q15. The total CAPEX for the project is
US$4.6 billion.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), attributable
contribution to the net income in 1Q15 was US$2.1 million (US$4.8
million in 1Q14).
Project Development and Exploration
The Tambomayo Project (100% ownership)
The Tambomayo´s Environmental Impact Assessment (EIA) was
approved in January 2015. Construction permits are expected to be
ready in 2Q15 and 80% of the purchase orders have been placed.
Tambomayo has 250k gold ounces in reserves and 335k gold ounces in
resources. Additionally, Tambomayo has 9.4 million silver ounces in
reserves and 5.9 million silver ounces in resources. The estimated
annual production is 110k-120k gold ounces and 3.0 million silver
ounces.
The San Gabriel Project (100% ownership)
Diamond drilling at the Pachacutec prospect and the beginning of
construction of the San Gabriel ramp is expected to begin in May
2015. The Environmental Impact Assessment (EIA) of the project´s
construction is expected to be submitted to the authorities in
3Q15. San Gabriel has 2.5 million ounces of gold in resources. The
estimated annual production is 180k-220k gold ounces.
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*, 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 April
29th, 2015)
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 Procesadora Industrial Rio Seco S.A*
100.00 Rio Seco chemical plant Consorcio Energético
de Huancavelica S.A* 100.00 Energy – Huanza
Hydroelectrical plant Buenaventura Ingenieros S.A* 100.00
Engineering Consultant (*)Consolidates (**)
Equity Accounting
APPENDIX 2
GOLD PRODUCTION Three Months
Ended March 31 Orcopampa 2015 2014
% Ore Milled DMT 108,415 103,227
5% Ore Grade OZ/MT 0.47 0.44
6% Recovery Rate % 96.5%
96.3%
0% Ounces Produced* 50,068
44,929 11% * Includes ounces from
retreatment of tailing dams La Zanja
Tantahuatay 1Q15 1Q14 %
1Q15 1Q14 % Ounces
Produced 30,455 35,937
-15% 30,207
32,633
-7% SILVER
PRODUCTION Three Months Ended March 31
Uchucchacua Colquijirca 2015
2014 % 2015 2014
% Ore Milled DMT 282,573 212,708
33% 764,815
N.A. Ore Grade OZ/MT 14.89 14.56
2% 1.74
N.A.
Recovery Rate % 83.9% 76.5%
10% 62.5%
N.A. Ounces
Produced 3,529,624 2,368,509
49% 829,503 N.A.
ZINC PRODUCTION Three Months Ended March
31 Uchucchacua Colquijirca 2015
2014 % 2015 2014
% Ore Milled DMT 282,573 212,708
33% 764,815
N.A. Ore Grade % 1.1% 1.1%
-6% 2.96%
N.A.
Recovery Rate % 53.5% 61.5%
-13% 61.9%
N.A. MT
Produced 1,586 1,470 8%
14,020 N.A.
APPENDIX 3: EBITDA Reconciliation (in thousand US$)
1Q15
1Q14 Var Net Income 10,248
-10,372 N.A.
Add / Substract: 39,003
73,439 -47% Provision for income tax, net
10,427 7,322 42% Share in associated companies
by the equity method, net -36,274 4,480 N.A.
Interest income -644 -1,806 -64% Interest
expense 5,879 2,901 103% Loss on currency
exchange difference 2,318 522 344% Long Term
Compensation provision 102 1,925 -95%
Depreciation and Amortization 54,619 45,398
20% Impairment of Long-Lived Assets 0 794 -
Workers´ participation provision 472 966 -51%
Loss from discontinued operations 2,104 10,937
-81%
EBITDA Buenaventura Direct Operations
49,251 63,067 -22% EBITDA
Yanacocha (43.65%) 68,371 2,581 2549%
EBITDA Cerro Verde (19.58%) 17,863 36,824
-51%
EBITDA Coimolache (40%) 7,418
11,033 -33%
EBITDA Buenaventura + All Associates
142,904 113,506 26%
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings
before net interest, taxes, depreciation and amortization, share in
associated companies, net, loss on currency exchange difference,
other, net, provision for workers’ profit sharing and provision for
long-term officers’ compensation.
EBITDA (including associated companies) consists of EBITDA
(Buenaventura Direct Operations), plus (1) Buenaventura’s equity
share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of
EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of
EBITDA (Coimolache). All EBITDA mentioned were similarly calculated
using financial information provided to Buenaventura by the
associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations)
and EBITDA (including affiliates) to provide further information
with respect to its operating performance and the operating
performance of its equity investees, the affiliates. EBITDA
(Buenaventura Direct Operations) and EBITDA (including affiliates)
are not a measure of financial performance under IFRS, and may not
be comparable to similarly titled measures of other companies. You
should not consider EBITDA (Buenaventura Direct Operations) and
EBITDA (including affiliates) as alternatives to operating income
or net income determined in accordance with IFRS, as an indicator
of Buenaventura’s, affiliates operating performance, or as an
alternative to cash flows from operating activities, determined in
accordance with IFRS, as an indicator of cash flows or as a measure
of liquidity.
APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION
Reconciliation of Costs Applicable to Sales and Cost
Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding
depreciation and amortization, plus Selling expenses. Cost
applicable to sales per unit sold for each mine consists of cost
applicable to sales for a particular metal produced at a given mine
divided by the volume of such metal produced at such mine in the
specified period. We note that cost applicable to sales is not
directly comparable to the cash operating cost figures disclosed in
previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit
of mineral sold are not measures of financial performance under
IFRS, and may not be comparable to similarly titled measures of
other companies. We consider Cost applicable to sales and Cost
applicable to sales per unit of mineral sold to be key measures in
managing and evaluating our operating performance. These measures
are widely reported in the precious metals industry as a benchmark
for performance, but do not have standardized meanings. You should
not consider Cost applicable to sales or Cost applicable to sales
per unit of mineral sold as alternatives to cost of sales
determined in accordance with IFRS, as indicators of our operating
performance. Cost applicable to sales and Cost applicable to sales
per unit of mineral sold are calculated without adjusting for
by-product revenue amounts.
The tables below set forth (i) a reconciliation of consolidated
Cost of sales, excluding depreciation and amortization to
consolidated Cost applicable to sales, (ii) reconciliations of the
components of Cost applicable to sales (by mine and mineral) to the
corresponding consolidated line items set forth on our consolidated
statements of profit or loss for the three and six months ended
June 30, 2013 and 2014, and (iii) reconciliations of Cost of sales,
excluding depreciation and amortization to Cost applicable to sales
for each of our mining units. The amounts set forth in Cost
applicable to sales and Cost applicable to sales per unit sold for
each mine and mineral indicated in the tables below can be
reconciled to the amounts set forth on our consolidated statements
of profit or loss for the three and six months ended June 30, 2013
and 2014 by reference to the reconciliations of Cost of sales,
excluding depreciation and amortization (by mine and mineral),
Selling Expenses (by mine and metal) expenses and Exploration in
units in operations (by mine and mineral) to consolidated Cost of
sales, excluding depreciation and amortization, consolidated
Selling Expenses and consolidated Exploration in units in
operations expenses, respectively, set forth below.
Set forth below is a reconciliation of
consolidated Cost of sales, excluding depreciation and
amortization,to consolidated Cost applicable to sales:
For the 3 months ended Mar 31
2015
2014
(in thousands of US$)
Consolidated Cost of sales excluding
depreciation andamortization
136,477 139,438
Add: Consolidated Exploration in units in
operation 22,470 23,730 Consolidated Commercial deductions 36,527
36,663 Consolidated Selling expenses 4,190 3,992
Consolidated Cost applicable to
sales
199,664 203,823
Set forth below is a reconciliation of
Cost of sales, excluding depreciation and amortization(by mine and
mineral) to consolidated Cost of sales:
For the 3 months ended Mar 31
2015
2014
Cost of sales by mine and mineral (in
thousands of US$) Julcani, Gold 11 -7 Julcani, Silver 4,449
4,817 Julcani, Lead 467 422 Julcani, Copper 62 60 Mallay, Silver
2,071 2,105 Mallay, Lead 1,166 1,477 Mallay, Zinc 1,652 1,421
Breapampa, Gold 4,244 9,321 Breapampa, Silver 616 719 Orcopampa,
Gold 30,696 28,679 Orcopampa, Silver 950 775 Uchucchacua, Silver
25,074 28,552 Uchucchacua, Lead 1,326 1,866 Uchucchacua, Zinc 812
1,342 La Zanja, Gold 26,075 18,133 La Zanja, Silver 1,168 882 El
Brocal, Gold 435 539 El Brocal, Silver 5,946 2,814 El Brocal, Lead
4,752 178 El Brocal, Zinc 10,427 16 El Brocal, Copper 8,218 24,598
Non Mining Units 5,859 10,731
Consolidated Cost of sales,
excluding depreciation and amortization 136,477
139,438
Set forth below is a reconciliation of
Exploration expenses in units in operation (by mineand mineral) to
consolidated Exploration expenses in mining units:
For the 3 months ended Mar 31
2015
2014
Exploration expenses in units in
operation by mineand mineral
(in thousands of US$) Julcani, Gold 5 -4 Julcani, Silver
2,175 2,484 Julcani, Lead 228 218 Julcani, Copper 30 31 Mallay,
Silver 676 623 Mallay, Lead 381 437 Mallay, Zinc 540 420 Breapampa,
Gold 61 121 Breapampa, Silver 9 9 Orcopampa, Gold 11,518 12,799
Orcopampa, Silver 356 346 Uchucchacua, Silver 5,968 5,598
Uchucchacua, Lead 316 366 Uchucchacua, Zinc 193 263 La Zanja, Gold
13 19 La Zanja, Silver 1 1 El Brocal, Gold 0 0 El Brocal, Silver 0
0 El Brocal, Lead 0 0 El Brocal, Zinc 0 0 El Brocal, Copper 0 0 Non
Mining Units 0 0
Consolidated Exploration expenses in units in
operation 22,470 23,730
Set forth below is a reconciliation of
Commercial Deductions in units in operation (by mine and
mineral)
to consolidated Commercial deductions:
For the 3 months ended Mar 31
2015
2014
Commercial Deductions in units in operation by mine and
mineral (in thousands of US$) Julcani, Gold 2 -2
Julcani, Silver 1,328 1,616 Julcani, Lead 127 139 Julcani, Copper
18 23 Mallay, Silver 880 971 Mallay, Lead 506 662 Mallay, Zinc 858
924 Breapampa, Gold 39 25 Breapampa, Silver 2 0 Orcopampa, Gold 56
57 Orcopampa, Silver 0 0 Uchucchacua, Silver 7,963 7,083
Uchucchacua, Lead 426 477 Uchucchacua, Zinc 890 877 La Zanja, Gold
24 43 La Zanja, Silver 0 0 El Brocal, Gold 537 445 El Brocal,
Silver 3,585 2,668 El Brocal, Lead 2,193 153 El Brocal, Zinc 5,805
94 El Brocal, Copper 11,287 20,407 Non Mining Units 0 0
Consolidated Commercial deductions in units in operation
36,527 36,663 Set forth below is a
reconciliation of Selling expenses (by mine and mineral) to
consolidated Selling expenses:
For the 3 months ended Mar 31
2015
2014
Selling expenses by mine and mineral (in
thousands of US$) Julcani, Gold 1 0 Julcani, Silver 239 221
Julcani, Lead 25 19 Julcani, Copper 3 3 Mallay, Silver 139 174
Mallay, Lead 78 122 Mallay, Zinc 111 117 Breapampa, Gold 33 108
Breapampa, Silver 5 8 Orcopampa, Gold 250 242 Orcopampa, Silver 8 7
Uchucchacua, Silver 812 670 Uchucchacua, Lead 43 44 Uchucchacua,
Zinc 26 31 La Zanja, Gold 302 335 La Zanja, Silver 14 16 El Brocal,
Gold 26 36 El Brocal, Silver 351 187 El Brocal, Lead 280 12 El
Brocal, Zinc 615 1 El Brocal, Copper 485 1,632 Non Mining Units 347
9
Consolidated Selling expenses 4,190 3,992
JULCANI 1Q 2015 1Q 2014
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) 11 4,449 467
- 62 4,989 -7 4,817 422 - 60 5,291
Add: Exploration Expenses
(US$000) 5 2,175 228 - 30 2,439 -4 2,484 218 - 31 2,728 Commercial
Deductions (US$000) 2 1,328 127 - 18 1,475 -2 1,616 139 - 23 1,776
Selling Expenses (US$000) 1 239 25 - 3 268 -0 221 19 - 3 242
Cost Applicable to Sales (US$000) 19 8,191
847 - 114 9,171 -13 9,137
797 - 116 10,037 Divide: Volume
Sold 15 618,774 473 - 19 Not Applicable -11 728,753 545 - 23
Not Applicable
CAS 1,256 13.24
1,791 - 6,011 Not Applicable
- 12.54 1,463 - 5,127
Not Applicable MALLAY 1Q 2015
1Q 2014 GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL Cost of Sales (without D&A)
(US$000) - 2,071 1,166 1,652 - 4,889 - 2,105 1,477 1,421 - 5,003
Add: Exploration Expenses (US$000) - 676 381 540 - 1,597 -
623 437 420 - 1,481 Commercial Deductions (US$000) - 880 506 858 -
2,244 - 971 662 924 - 2,557 Selling Expenses (US$000) - 139 78 111
- 328 - 174 122 117 - 412
Cost Applicable to Sales (US$000)
- 3,766 2,131 3,161 -
9,058 - 3,873 2,698 2,882
- 9,453 Divide: Volume Sold - 261,818 1,457
1,636 - Not Applicable - 284,457 1,855 1,814 - Not
Applicable
CAS - 14.39 1,463
1,932 - Not Applicable -
13.62 1,455 1,589 - Not
Applicable BREAPAMPA 1Q 2015 1Q
2014 GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL Cost of Sales (without D&A)
(US$000) 4,244 616 - - - 4,860 9,321 719 - - - 10,040
Add:
Exploration Expenses (US$000) 61 9 - - - 70 121 9 - - - 130
Commercial Deductions (US$000) 39 2 - - - 42 25 - - - - 25 Selling
Expenses (US$000) 33 5 - - - 37 108 8 - - - 116
Cost Applicable
to Sales (US$000) 4,377 632 - -
- 5,010 9,575 736 - -
- 10,311 Divide: Volume Sold 7,395 83,003 - -
- Not Applicable 22,413 114,816 - - - Not Applicable
CAS 592 7.62 - - -
Not Applicable 427 6.41 - -
- Not Applicable
ORCOPAMPA 1Q 2015 1Q 2014 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) 30,696 950 - - - 31,646
28,679 775 - - - 29,453
Add: Exploration Expenses (US$000)
11,518 356 - - - 11,874 12,799 346 - - - 13,144 Commercial
Deductions (US$000) 56 0 - - - 56 57 -0 - - - 57 Selling Expenses
(US$000) 250 8 - - - 258 242 7 - - - 248
Cost Applicable to
Sales (US$000) 42,520 1,314 - -
- 43,834 41,776 1,127 - -
- 42,903 Divide: Volume Sold 60,910 145,389 -
- - Not Applicable 50,232 90,175 - - - Not Applicable
CAS 698 9.04 - - -
Not Applicable 832 12.49 - -
- Not Applicable
UCHUCCHACUA 1Q 2015 1Q 2014 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) - 25,074 1,326 812 -
27,212 - 28,552 1,866 1,342 - 31,759
Add: Exploration
Expenses (US$000) - 5,968 316 193 - 6,476 - 5,598 366 263 - 6,227
Commercial Deductions (US$000) - 7,963 426 890 - 9,279 - 7,083 477
877 - 8,437 Selling Expenses (US$000) - 812 43 26 - 881 - 670 44 31
- 745
Cost Applicable to Sales (US$000) -
39,817 2,111 1,921 - 43,849
- 41,903 2,752 2,513 -
47,168 Divide: Volume Sold - 2,754,699 1,463 714 -
Not Applicable - 2,453,939 1,528 1,138 - Not
Applicable
CAS - 14.45 1,442
2,692 - No Applicable -
17.08 1,802 2,208 - No
Applicable LA ZANJA 1Q 2015 1Q
2014 GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL Cost of Sales (without D&A)
(US$000) 26,075 1,168 - - - 27,243 18,133 882 - - - 19,015
Add: Exploration Expenses (US$000) 13 1 - - - 13 19 1 - - -
20 Commercial Deductions (US$000) 24 - - - - 24 43 - - - - 43
Selling Expenses (US$000) 302 14 - - - 315 335 16 - - - 351
Cost
Applicable to Sales (US$000) 26,413 1,182
- - - 27,596 18,530 899
- - - 19,429 Divide: Volume Sold
32,081 107,924 - - - Not Applicable 33,470 104,873 - - -
Not Applicable
CAS 823 10.96 -
- - Not Applicable 554
8.58 - - - Not Applicable
BROCAL 1Q 2015 1Q 2014
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) 435 5,946 4,752 10,427 8,218 29,778 539 2,814 178 16
24,598 28,146
Add: Exploration Expenses (US$000) - - - - - -
- - - - - - Commercial Deductions (US$000) 537 3,585 2,193 5,805
11,287 23,408 445 2,668 153 94 20,407 23,769 Selling Expenses
(US$000) 26 351 280 615 485 1,756 36 187 12 1 1,632 1,867
Cost
Applicable to Sales (US$000) 998 9,882
7,225 16,847 19,990 54,942 1,020
5,668 343 112 46,638 53,782
Divide: Volume Sold 832 826,034 5,976 11,185 3,611
Not Applicable 1,135 378,221 154 -118 8,979 Not Applicable
CAS 1,200 11.96 1,209 1,506
5,536 Not Applicable 899 14.99
2,230 - 5,194 Not Applicable
NON MINING COMPANIES 1Q 2015 1Q
2014 GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL Cost of Sales (without
D&A) (US$000) - - - - - 5,859 - - - - - 10,731
Add: - -
Selling Expenses (US$000) - - - - - 347 - - - - - 9 Total (US$000)
- - - - - 6,206 - - - - - 10,740
BUENAVENTURA
CONSOLIDATED 1Q 2015 1Q 2014 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) 61,461 40,276 7,711 12,890
8,280 136,477 56,665 40,662 3,943 2,779 24,658 139,438
Add:
Exploration Expenses (US$000) 11,597 9,185 925 733 30 22,470 12,935
9,061 1,020 684 31 23,730 Commercial Deductions (US$000) 658 13,758
3,252 7,553 11,306 36,527 569 12,339 1,430 1,895 20,430 36,663
Selling Expenses (US$000) 611 1,566 426 752 488 4,190 720 1,282 197
150 1,634 3,992
Cost Applicable to Sales (US$000)
74,327 64,784 12,313 21,928
20,104 199,664 70,889 63,344
6,591 5,507 46,754 203,823
Divide: Volume Sold 101,232 4,797,641 9,368 13,535 3,630
Not Applicable 107,238 4,155,234 4,081 2,834 9,001
Not Applicable
CAS 734 13.50 1,314
1,620 5,538 Not Applicable 661
15.24 1,615 1,943 5,194 Not
Applicable COIMOLACHE 1Q 2015 1Q
2014 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) 12,477 949 - - - 13,426 11,962 760 - - - 12,722
Add: Exploration Expenses (US$000) 3,624 276 - - - 3,900
1,117 71 - - - 1,188 Commercial Deductions (US$000) 161 13 - - -
173 87 6 - - - 93 Selling Expenses (US$000) 226 17 - - - 243 200 13
- - - 213
Cost Applicable to Sales (US$000) 16,487
1,255 - - - 17,742 13,366
849 - - - 14,215 Divide:
Volume Sold 30,722 169,400 - - - Not Applicable 30,266
120,808 - - - Not Applicable
CAS 537
7.41 - - - Not Applicable
442 7.03 - - - Not
Applicable
APPENDIX 5: ALL-IN SUSTAINING COST FOR 1Q15
Buenaventura1 La
Zanja Tantahuatay Attributable Production2
1Q15
1Q15
1Q15
1Q15
Au Ounces Sold BVN 100,401 Au Ounces bought from La Zanja -32,081
Au Ounces Sold Net 68,320 27,977 30,722 95,482
1Q15
1Q15
1Q15
1Q15
Income Statement & Cash Flow US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au Cost of Sales3
84,353 1,235 23,390 836 13,426 437 102,147 1,070 Exploration in
Operating Units 22,457 329 5,710 204 3,900 127 27,050 283 Royalties
8,176 120 0 0 0 0 8,176 86 Comercial Deductions4 13,095 192 694 25
173 6 13,533 142 Selling Expenses 1,744 26 315 11 243 8 2,009 21
Administrative Expenses5 13,429 197 375 13 533 17 13,842 145 Other
Expenses 0 0 2,112 75 4,624 151 2,975 31 Other Incomes 0 0 -3,786
-135 -1,444 -47 -2,588 -27 Administrative charges 0 0 1,584 57 445
15 1,019 11 Sustaining Capex6 5,411 79 4,130 148 6,373 207 10,157
106 By-product Credit -68,922 -1,009 -1,387 -50 -2,889 -94
-70,816 -742
All-in Sustaining Cost 79,743
1,167 33,137 1,184 25,385 826
107,503 1,126 *All-in Sustaining Cost does not
include: Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes: 1.
Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. 6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
APPENDIX 6:
Compañía de Minas Buenaventura S.A.A. and
Subsidiaries Consolidated Statement of Financial
Position As of March 31, 2015 and December 31, 2014
2015
2014
Assets US$(000) US$(000) Current assets
Cash and cash equivalents 134,940 78,512 Trade and other accounts
receivable, net 262,703 281,604 Income tax credit 51,941 53,746
Prepaid expenses 15,801 16,954 Hedge derivative financial
instruments 3,218 3,688 Embedded derivatives for concentrate sales,
net - - Inventory, net 145,579 150,284
Total current assets
614,182 584,788 Assets classified as held for sale
17,443 18,683
631,625 603,471 Non-current
assets Trade and other accounts receivable, net 27,786 26,651
Long-term inventory 30,100 34,088 Investment in associates
2,258,603 2,224,381 Mining concessions, development costs,
property, plant and equipment, net 1,729,685 1,715,452 Investment
properties, net 11,065 11,200 Deferred income tax asset 42,079
47,675 Intangible assets, net 4,538 4,592 Other assets, net 4,764
4,764
Total non-current assets 4,108,620
4,068,803 Total assets 4,740,245
4,672,274 Liabilities and shareholders’
equity Current liabilities Overdrafts and bank loans
88,081 40,000 Trade and other accounts payable 225,204 254,000
Provisions 66,485 67,895 Current income tax payable 5,917 3,556
Hedge derivative financial instruments - - Embedded derivatives for
concentrate sales, net 2,416 9,072 Financial obligations 77,300
69,950
Total current liabilities 465,403
444,473 Liabilities directly associated with assets
classified as held for sale 27,229 28,890
492,632
473,363 Non-current liabilities Financial
liability at fair value through profit or loss 23,026 23,026 Trade
and other accounts payable 15,289 15,240 Provisions 108,574 63,571
Financial obligations 310,987 313,355 Deferred income tax liability
20,942 21,594
Total non-current liabilities 478,818
436,786 Total liabilities
971,450 910,149 Shareholders’ equity
Issued capital 750,497 750,497 Investment shares 1,396 1,396
Additional paid-in capital 219,055 219,055 Legal reserve 162,710
162,710 Other reserves 269 269 Retained earnings 2,345,742
2,328,423 Other equity reserves 1,590 1,755
3,481,259
3,464,105 Non-controlling interest 287,536 298,020
Total
shareholders’ equity 3,768,795 3,762,125
Total liabilities and shareholders’ equity
4,740,245 4,672,274
Compañía de Minas Buenaventura S.A.A. and
Subsidiaries Consolidated Statement of Income For the
three-month periods ended March 31, 2015 and 2014
For the three-month periodsended
March 31,
2015
2014
US$(000) US$(000) Continued operations
Operating income Net sales 242,932 272,877 Royalty income
9,090 8,025
Total operating income 252,022 280,902
Operating costs Cost of sales, without considering
depreciation and amortization (136,477) (139,438) Exploration in
operating units (22,470) (23,730) Depreciation and amortization
(54,619) (45,398) Mining royalties (8,525) (7,353)
Total
operating costs (222,091) (215,919)
Gross
profit 29,931 64,983
Operating expenses, net
Administrative expenses (21,516) (27,651) Exploration in
non-operating areas (10,697) (10,374) Selling expenses (4,190)
(3,992) Other, net 530 (8,982)
Total operating expenses, net
(35,873) (50,999)
Operating profit (loss) (5,942)
13,984
Other income (expenses), net Net share in the
results of associates under equity method 36,274 (4,480) Financial
income 644 1,806 Financial expenses (5,879) (2,901) Net loss from
currency exchange difference (2,318) (522)
Total other income
(expenses), net 28,721 (6,097)
Profit before income
taxes and non-controlling interest 22,779 7,887 Current
income tax expense (5,377) (7,805) Deferred income tax income
(expense) (5,050) 483
Profit from continued
operations 12,352 565
Discontinued operations
Loss from discontinued operations (2,104) (10,937)
Net
profit 10,248 (10,372) Attributable to: Owners of the
parent 17,319 (16,112) Non-controlling interest (7,071) 5,740
10,248 (10,372)
Basic and diluted earnings per share
attributable to the owners of the parent, stated in U.S.
dollars 0.07 (0.06)
Weighted average number of shares
outstanding (common and investment), in units
254,186,867 254,186,867
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Cash Flows For the three-month
periods ended March 31, 2015 and 2014
For the three-month periodsended
March 31,
2015
2014
US$(000) US$(000) Operating activities
Proceeds from sales 231,779 266,854 Value Added Tax (VAT) recovered
33,367 17,704 Royalties received 13,444 6,995 Dividends received
2,057 2,377 Interest received 942 2,125 Payments to suppliers and
third-parties (176,835) (199,734) Payments to employees (45,328)
(55,620) Payment of income tax (4,141) (5,411) Payment of royalties
(6,198) (7,453) Payment of interest (5,470) (1,948)
Net
cash and cash equivalents provided by operating activities
43,617 25,889
Investing activities Proceeds from
settlement of financial assets at fair value through profit or loss
- - Proceeds from collections of loans to associates - 9,032
Proceeds from sales of mining concessions, property, plant and
equipment 134 23 Proceeds from settlement of investment in shares -
- Acquisitions of mining concessions, development costs, property,
plant and equipment (37,118) (85,278) Acquisitions of investment
properties - - Payment for purchase of investments - - Associates
loans granted - - Contributions and investments in associates -
(1,003)
Net cash and cash equivalents used in investing
activities (36,984) (77,226)
Financing activities
Increase of bank loans 88,081 - Repayment of bank loans (40,000) -
Increase of financial obligations 10,000 74,659 Payment of
financial obligations (5,018) (4,540) Dividends paid - - Dividends
paid to non-controlling interest (3,268) (1,960) Purchase of
associates' shares - -
Net cash and cash equivalents
provided by (used in) financing activities 49,795 68,159
Net increase (decrease) in cash and cash equivalents during the
period 56,428 16,822 Cash and cash equivalents at the beginning of
the period 78,512 61,898
Cash and cash equivalents
at period-end 134,940 78,720
For the three-month periodsended
March 31,
2015
2014
US$(000) US$(000)
Reconciliation of net profit (loss) to
cash and cash equivalents provided byoperating
activities
Net profit (loss) attributable to owners of the parent
17,319 (16,112)
Plus (less): Depreciation and
amortization 54,619 45,398 Net profit (loss) attributable to
non-controlling interest (7,071) 5,740 Provision for employee bonus
8,175 11,897 Deferred income tax expense (income) 5,050 (483)
Provision for estimated fair value of embedded derivatives related
to concentrate sales and adjustments on open liquidations (6,656)
9,449 Reversal of provision for impairment of inventories (1,252)
(3,042) Accretion expense of provision for closure of mining units
and exploration projects 275 1,443 Provision for stock appreciation
rights 115 1,931 Provision for impairment of long-lived assets -
794 Net loss from currency exchange difference 2,318 522 Net share
in the results of associates under equity method (36,274) 4,480
Loss (gain) on sales of mining concessions, property, plant and
equipment 1,314 (23) Others provisions (4,732) 3,081
Net
changes in operating assets and liabilities Decrease
(increase) in operating assets Trade and other accounts receivable,
net 20,694 1,464 Income tax credit 1,699 (5,594) Inventory, net
27,801 20,189 Prepaid expenses 1,160 833 Increase (decrease)
in operating liabilities Trade and other accounts payable (34,645)
(42,740) Provisions (8,653) (13,592) Income tax payable 2,361 254
Net cash and cash equivalents provided by
operating activities 43,617 25,889
Contacts in Lima:Carlos Galvez, Chief Financial
OfficerTel: (511) 419-2540orDaniel Dominguez, Director of Treasury
and Investor RelationsTel: (511) 419-2591Email:
daniel.dominguez@buenaventura.peorContacts in New York:Maria
Barona / Rafael Borjai-advize Corporate
Communications212-406-3691/3693buenaventura@i-advize.com
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