BVN Compania De Minas Buenaventura SA

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