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 April 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 First Quarter 2015 Results

 

Lima, Peru, April 29, 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 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.

 

  

 

Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 2 of 21

 

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%

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 3 of 21

 

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%

 

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.

 

 

 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.
First Quarter 2015 Results
Page 4 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 5 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 6 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 7 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 8 of 21

 

* * *

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

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 9 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 10 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 11 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 12 of 21

 

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 and amortization   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 mine and mineral) to consolidated Exploration expenses in mining units:

 

    For the 3 months ended Mar 31
  2015   2014
Exploration expenses in units in operation by mine and 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

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 13 of 21

 

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

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 14 of 21

 

   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

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 15 of 21

 

   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

 

 

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 16 of 21

 

   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

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 17 of 21

 

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.

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 18 of 21

 

DRAFT

 

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

 

    2,015    2,014 
   US$(000)    US$(000) 
Assets          
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.
First Quarter 2015 Results
Page 19 of 21

 

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 periods
ended March 31,
 
   2,015   2,014 
   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.
First Quarter 2015 Results
Page 20 of 21

 

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 periods
ended March 31,
 
   2,015   2,014 
   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 

 

 

 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2015 Results
Page 21 of 21

 

    For the three-month periods
ended March 31,
 
         
   2,015   2,014 
   US$(000)   US$(000) 
Reconciliation of net profit (loss) to cash and cash equivalents provided by operating 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 

 

 
 

 

 

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: April 30, 2015

  

 

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