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 |
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$000) |
16,487 |
1,255 |
- |
- |
- |
17,742 |
13,366 |
849 |
- |
- |
- |
14,215 |
Divide:
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
Sold |
30,722 |
169,400 |
- |
- |
- |
Not
Applicable |
30,266 |
120,808 |
- |
- |
- |
Not
Applicable |
CAS
|
537 |
7.41 |
- |
- |
- |
Not
Applicable |
442 |
7.03 |
- |
- |
- |
Not
Applicable |
Compañía de Minas Buenaventura S.A.A. First Quarter 2015 Results Page 17 of 21 |
APPENDIX 5: ALL-IN SUSTAINING COST FOR 1Q15
| |
Buenaventura1 | | |
La Zanja | | |
Tantahuatay | | |
Attributable Production2 | |
| |
1Q15 | | |
1Q15 | | |
1Q15 | | |
1Q15 | |
Au Ounces Sold BVN | |
| 100,401 | | |
| | | |
| | | |
| | |
Au Ounces bought from La Zanja | |
| -32,081 | | |
| | | |
| | | |
| | |
Au Ounces Sold Net | |
| 68,320 | | |
| 27,977 | | |
| 30,722 | | |
| 95,482 | |
| |
| 1 | Q15 | | |
| 1 | Q15 | | |
| 1 | Q15 | | |
| 1 | Q15 | |
Income
Statement & Cash Flow | |
| US$
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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