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 second quarter (2Q15) and six-month (6M15)
periods, ended June 30, 2015. 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$).
Second Quarter 2015 Highlights:
- In 2Q15, EBITDA from direct operations
was US$32.9 million and adjusted EBITDA (including associated
companies) was US$92.4 million.
- Total attributable production
(including associates) in 2Q15 was 186k gold ounces and 4.4 million
silver ounces (compared to 191k gold ounces and 4.6 million silver
ounces in 2Q14).
- At the Tambomayo project, construction
permits were granted in June 2015. Production should begin in 3Q16
at 1,500 TPD (120K-150K gold ounces and 2.5-3.0 million silver
ounces per year).
- At the San Gabriel (Chucapaca) project,
construction of the ramp started in June 2015. The Environmental
Impact Assessment (EIA) of the project´s construction is expected
to be submitted in 3Q15.
- During 2Q15, El Brocal average plant
capacity reached 14K TPD level due to technical problems with the
main mill´s engine. Full production capacity level (18K TPD) will
be reached in 4Q15.
- Cerro Verde’s plant expansion to 360K
TPD is in-line with schedule and budget (close to 90% complete).
Completion of the plant is expected by late 2015, and will become
the largest concentration facility in the world.
Financial Highlights (in millions
of US$, except EPS figures):
2Q15 2Q14 Var%
6M15 6M14
Var% Total Revenues 256.3 302.2
-15% 508.3 583.1
-13% Operating Profit -34.0
34.8
N.A. -40.0
48.8
N.A.
EBITDA DirectOperations
32.9 85.4
-62%
82.0 147.6
-44%
Adjusted EBITDA(Inc
Associates)
90.7
168.4
-45% 235.3
275.9
-15% Net Income
-18.7 23.1
N.A.
-1.4 7.0
N.A. EPS*
-0.06 0.12
N.A.
0.01 0.10
N.A.
(*) as of June 30, 2015 Buenaventura had
254,186,867 outstanding shares.
Operating Revenues
During 2Q15, net sales were US$248.9 million, a 16% decrease
compared to the US$294.8 million reported in 2Q14. This was mainly
explained by the decrease in gold, silver and copper prices as well
as lower gold and silver volume sold.
Royalty income was US$7.4 million in 2Q15 in-line with the
figure reported in 2Q14.
Operating
Highlights 2Q15 2Q14 Var%
6M15 6M14 Var%
Net Sales (in millions of
US$)
248.9 294.8
-16% 491.8 567.7
-13%
Average Realized Gold
Price(US$/oz)*
1,185 1,273
-7% 1,204 1,292
-7%
Average Realized Gold
Price(US$/oz) inc. Affiliates
1,187 1,279
-7% 1,206 1,290
-7%
Average Realized Silver
Price(US$/oz)*
16.17 19.76
-18% 15.76 19.78
-20%
Average Realized Lead
Price(US$/MT)*
1,918 2,073
-7% 1,791 2,123
-16%
Average RealizedZinc
Price(US$/MT)*
2,145 2,093
3% 2,103 2,144
-2%
Average Realized CopperPrice
(US$/MT)*
5,150 6,575
-22% 5,124 6,802
-25%
(*) Buenaventura’s Direct Operations
Volume Sold 2Q15
2Q14 Var% 6M15
6M14 Var%
Gold Oz DirectOperations
91,474 109,020
-16% 192,707
216,258
-11%
Gold Oz inc
AssociatedCompanies
192,274 205,117
-6% 413,359
414,301
0% Silver Oz 4,785,933
4,949,060
-3% 9,583,574
9,104,294
5% Lead MT 6,309 4,199
50% 15,678 8,281
89%
Zinc MT 13,364 2,947
354%
26,899 5,781
365% Copper MT
8,831 10,186
-13% 12,462 19,187
-35%
For 6M15, net sales decreased 13%, from US$567.7 million in 6M14
to US$491.8 million in 6M15. Royalties increased 7%, from US$15.4
million in 6M14 to US$16.5 million in 6M15.
Production and Operating Costs
In 2Q15, Buenaventura’s gold equity production from direct
operations decreased 15%, from 107,807 ounces in 2Q14 to 91,454
ounces in 2Q15 due to the decline in production at Breapampa mine.
Gold production including associated companies was 185,705 ounces,
3% lower than the reported in the same period 2014. Silver equity
production from direct operations decreased 7%, mainly due to lower
production at Uchucchacua mine.
Equity Production
2Q15 2Q14
Var % 6M15 6M14 Var
%
Gold Oz Direct
Operations1
91,454 107,807
-15% 176,764
207,264
-15%
Gold Oz inc
AssociatedCompanies
185,705 191,045
-3% 379,291
381,081
0%
Silver Oz Direct
Operations1
4,303,569 4,647,397
-7%
9,783,518 8,620,363
13%
Silver Oz inc
AssociatedCompanies
4,429,322 4,802,767
-8%
10,043,053 8,913,163
13% Lead TM
5,652 4,413
28% 13,092 8,881
47% Zinc TM 9,660 4,145
133% 21,005 8,065
160%
Copper MT Direct
Operations1
5,263 5,998
-12% 7,453
11,357
-34%
Copper inc
AssociatedCompanies
14,450 17,097
-15% 21,160
34,391
-38%
1 Direct Operation production includes 100% of Buenaventura’s
operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10%
of Coimolache (Tantahuatay).
Orcopampa’s (100% owned by
Buenaventura)
Production 2Q15
2Q14 Var % 6M15
6M14 Var % Gold Oz 51,921
51,102
2% 101,989 96,031
6% Silver Oz 133,401 86,328
55% 245,611 166,111
48%
Cost Applicable to
Sales
2Q15
2Q14
Var %
6M15
6M14
Var %
Gold US$/Oz
695
756
-8%
697
795
-12%
Gold production at Orcopampa increased 2% in 2Q15 (compared to
2Q14) due to higher ore grade (Appendix 2). Cost Applicable to
Sales (CAS) in 2Q15 decreased 8% explained by lower diesel costs
and improvements in energy consumption.
Gold production guidance for 2015 is 190k – 205k ounces.
Uchucchacua (100% owned by
Buenaventura)
Production 2Q15
2Q14 Var % 6M15
6M14 Var % Silver Oz
2,497,189 2,997,602
-17%
6,026,362 5,366,112
12% Zinc
MT 1,212 1,575
-23% 2,798
3,045
-8% Lead MT
1,470 1,717
-14% 3,529 3,405
4%
Cost
Applicable to Sales 2Q15
2Q14 Var % 6M15
6M14 Var % Silver US$/Oz
15.66 15.82
-1% 15.03
16.37
-8%
Silver production in 2Q15 decreased 17% compared to 2Q14, due to
the 29-day stoppage in May. Cost Applicable to Sales (CAS) in 2Q15
decreased 1% compared to 2Q14, mainly explained by a decrease in
exploration expenses, as a result of less diamond drilling.
Revised silver production guidance for 2015 is 14.0 million –
14.5 million ounces.
Mallay (100% owned by
Buenaventura)
Production
2Q15
2Q14 Var % 6M15
6M14 Var % Silver Oz
297,777 302,118
-1% 605,031
599,298
1% Zinc MT
2,141 2,570
-17% 4,320 5,020
-14% Lead MT 1,776
1,904
-7% 3,428 3,716
-8%
Cost Applicable to Sales
2Q15 2Q14
Var % 6M15 6M14
Var % Silver US$/Oz 13.63
13.31
2% 13.97 13.48
4%
Silver production in 2Q15 was in-line with the figure reported
in 2Q14. Cost Applicable to Sales (CAS) in 2Q15 was 2% higher
compared to 2Q14 due higher commercial deductions and an increase
in exploration expenses.
Silver production guidance for 2015 is 1.1 million – 1.25
million ounces.
Julcani (100% owned by
Buenaventura)
Production 2Q15
2Q14 Var % 6M15
6M14 Var % Silver Oz
786,628 763,529
3% 1,602,980
1,526,966
5%
Cost Applicable to Sales
2Q15 2Q14 Var
% 6M15 6M14 Var %
Silver US$/Oz 12.29 13.55
-9% 12.62 13.04
-3%
Silver production in 2Q15 increased 3% compared to 2Q14
production, due to higher ore treated despite the lower grade
(Appendix 2). Cost Applicable to Sales (CAS) in 2Q15 was 9% lower
than 2Q14, mainly explained by lower community relations
expenses.
Silver production guidance for 2015 is 2.9 million – 3.1 million
ounces.
La Zanja’s (53.06% owned by
Buenaventura)
Production 2Q15
2Q14 Var % 6M15
6M14 Var % Gold Oz
37,254 36,685
2% 67,709 72,622
-7% Silver Oz 67,817
138,674
-51% 163,125 234,060
-30%
Cost Applicable to
Sales 2Q15
2Q14 Var % 6M15
6M14 Var % Gold US$/Oz
678 363
87% 747 423
77%
Gold production in 2Q15 increased 2% compared to 2Q14. CAS in
2Q15 increased 87% mainly due to higher ore hauling costs explained
by the longer distance between Pampa Verde pit and the leaching
pad.
Gold production guidance for 2015 is 138k – 142k ounces.
Tantahuatay’s (40.10% owned by
Buenaventura)
Production 2Q15
2Q14 Var % 6M15
6M14 Var % Gold Oz
32,139 35,171
-9% 62,346 67,804
-8% Silver Oz 178,695
170,200
5% 338,959 292,516
16%
Cost Applicable to
Sales 2Q15
2Q14 Var % 6M15
6M14 Var % Gold US$/Oz
497 476
4% 575 461
25%
Gold production in 2Q15 decreased 9% compared to the figure
reported in 2Q14. CAS in 2Q15 increased 4% due to higher blasting
supplies explained by an increase in the stripping ratio.
Gold production guidance for 2015 is 138k – 142k ounces
El Brocal (54.07% owned by
Buenaventura)
Production 2Q15
2Q14 Var % 6M15
6M14 Var % Copper MT
9,580 10,977 -13% 13,450 20,769
-35%
Zinc MT 11,664 0
N.A. 25,683 0 N.A.
Silver
Oz 768,385 498,440 54% 1,750,639
996,104 76%
Cost Applicable to Sales
2Q15 2Q14 Var %
6M15 6M14 Var % Copper
US$/MT 5,297 4,463
19%
5,366 4,803
12% Zinc
US$/MT 1,659 0
N.A. 1,578
0
N.A.
During 2Q15, El Brocal average plant capacity reached 14K TPD.
Copper production decreased 13% compared to 2Q14 and silver
production increased 54% compared to the figure reported in
2Q14.
In 2Q15, Zinc CAS was US$1,659/MT. Copper CAS increased 19%
compared to 2Q14, due to higher commercial deduction.
Zinc production guidance for 2015 is 60k – 70k MT. Copper
production guidance for 2015 is 30k – 35k MT.
General and Administrative Expenses
General and administrative expenses in 2Q15 were US$18.8
million, 15% lower compared to the 2Q14 figure (US$22.0 million)
due to lower labor expenses, explained by a decrease in worker´s
profit sharing. For the six-month period 2015, the expense was
US$40.3 million (US$49.7 million in 6M14).
Exploration in Non-Operating Areas
Exploration in non-operating areas during 2Q15 was US$9.7
million compared with the US$14.8 million in 2Q14. During the
period, Buenaventura’s main exploration efforts were focused on the
following projects: Tambomayo (US$4.2 million) and La Zanja
Underground (US$1.6 million). For the six-month period 2015, the
expense was US$20.4 million (US$25.2 million in 6M14).
Share in Associated Companies
During 2Q15, Buenaventura’s share in associated companies was
US$12.0 million, compared to US$20.2 million reported in 2Q14,
composed by:
Share in the Result of
Associates(in millions of US$)
2Q15 2Q14 Var%
6M15
6M14 Var% Cerro Verde -0.2
26.5
N.A 7.8 42.2
-82%
Coimolache(Tantahuatay mine)
3.9 6.1
-36% 6.0 10.9
-45% Yanacocha 8.3 -12.9
N.A 34.5 -37.4
N.A Other Small
Investments 0.0 0.5
NA 0.0
0.0
NA Total 12.0
20.2 -41% 48.2
15.7 207%
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), during 2Q15, gold
production was 215,924 ounces of gold, 13% higher than 2Q14
production (190,695 ounces). For the six-month 2015 period, gold
production was 463,979 ounces, 17% higher than 398,106 ounces in
6M14. Gold production guidance at Yanacocha for 2015 is 880k – 940k
ounces.
In 2Q15, Yanacocha reported net income of US$18.9 million
compared to -US$24.2 million reported in 2Q14. CAS in 2Q15 was
US$648/oz, 36% lower than the US$1,005/oz reported in 2Q14 due to
better stripping ratio (waste-ore ratio).
Capital expenditures at Yanacocha were US$18.2 million in 2Q15,
while for 6M15 was US$33.4 million.
Yanacocha still has a strong pipeline of growth projects:
Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha
Verde (scoping) and Maqui (exploration).
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), during 2Q15
copper production was 46,920 MT (9,187 MT attributable to
Buenaventura), a 17% decrease compared to 2Q14 (56,683 MT and
11,098 MT attributable to Buenaventura). For 6M15, copper
production was 95,543 MT (18,707 MT attributable to
Buenaventura).
During 2Q15, Cerro Verde reported net loss of US$0.9 million
compared to US$138.3 million in 2Q14. This was mainly due to lower
sales explained by the decline in copper price (US$2.56/lb in 2Q15
vs US$3.27/lb in 2Q14). For 6M15, net income was US$39.8 million
(compared to US$236.4 million in 6M14).
Capital expenditures at Cerro Verde were US$467.4 million in
2Q15, and US$936.3 million in 6M15.
Cerro Verde’s plant expansion was 360K TPD, in-line with
schedule and budget (close to 90% complete). As of June 30, 2015,
total CAPEX of the expansion project was US$3.9 billion (out of
US$4.6 billion budget). Completion of the plant is expected by late
2015, and will become the largest concentration facility in the
world.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), attributable
contribution to the net income in 2Q15 was US$3.9 million (US$6.1
million in 2Q14). For 6M15, the contribution was US$6.0 million,
compared to US$10.9 million reported in 2014.
Project Development and Exploration
The Tambomayo Project (100% ownership)
Construction permits to treat 1,500 TPD were granted in May,
2015.
Production should begin in 3Q16 (120K-150K gold ounces and
2.5-3.0 million silver ounces per year) with a total CAPEX of
US$250 million.
The San Gabriel Project (100% ownership)
The construction of the ramp started in June 2015. The
Environmental Impact Assessment (EIA) of the project´s construction
is expected to be submitted in 3Q15.
Recent events
At the Board of Directors meeting held July 30, 2015, the
following resolutions were passed:
1. Acceptance the resignation of Mr. Timothy
Snider as a member of the Company’s Board of Directors.
2. The nominating committee proposed and,
consequently, the Board of Directors appointed Mr. John Marsden as
a new member of the Board of Directors, effective August 1st, 2015.
Mr. Marsden is a mineral technology engineer from the Royal School
of Mines, Imperial College of London. With 33 years of broad
international experience managing major, innovative copper, gold,
silver, molybdenum & cobalt operations and projects in North
and South America and Africa. Marsden has held various operations
and technical management positions during eighteen years with
Freeport-McMoRan Copper & Gold Inc. (formerly Phelps Dodge) and
nine years with Consolidated Gold Fields plc.
Company Description
Compañía de Minas Buenaventura S.A.A. is Peru’s largest,
publicly traded, precious metals company and a major holder of
mining rights in Peru. The Company is engaged in the mining,
processing, development and exploration of gold and silver and
other metals via wholly owned mines as well as through its
participation in joint exploration projects.
Buenaventura currently operates several mines in Peru
(Orcopampa*, Uchucchacua*, Breapampa*, Mallay*, Julcani*,
Recuperada*, El Brocal, La Zanja and Coimolache and is developing
the Tambomayo and San Gabriel projects.
The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership
with Newmont Mining Corporation), an important precious metal
producer; 19.58% of Sociedad Minera Cerro Verde, an important
Peruvian copper producer.
For a printed version of the Company’s 2014 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
inSubsidiaries and Associates (as of June 30, 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 Processadora Industrial Rio Seco S.A*
100.00 Rio Seco chemical plant Consorcio Energético
de Huancavelica S.A* 100.00 Energy – Huanza
Hydroelectrical plant Buenaventura Ingenieros S.A* 100.00
Engineering Consultant
(*)Consolidates(**) Equity Accounting
APPENDIX
2
GOLD PRODUCTION
2Q15 2Q14 %
6M15 6M14 % Mining Unit
Operating Results Underground Orcopampa
Ore Milled DMT 114,421 115,857
-1% 222,836 219,084
2%
Ore Grade OZ/MT 0.47 0.45
3% 0.47 0.45
4% Recovery
Rate % 95.7% 97.3%
-2% 96.1% 96.8%
-1%
Ounces Produced* 51,921 51,102
2%
101,989 96,031
6% Mining Unit
Operating Results Open Pit La Zanja
Ounces Produced 37,254 36,685 2% 67,709 72,622 -7% Tantahuatay
Ounces Produced 32,139 35,171 -9%
62,346 67,804 -8% * Includes ounces from
retreatment of taling dams
SILVER PRODUCTION
2Q15 2Q14
% 6M15 6M14 %
Mining Unit Operating Results
Underground Uchucchacua Ore Milled DMT 209,949 244,992
-14% 492,522 457,700
8% Ore Grade OZ/MT 14.16 15.28
-7% 14.58 14.94
-2% Recovery Rate % 84.0% 80.0%
5% 83.9% 78.4%
7% Ounces Produced
2,497,189 2,997,602
-17%
6,026,362 5,366,112
12% Julcani Ore Milled DMT
44,306 41,137
8% 87,988 82,754
6% Ore Grade OZ/MT
18.67 19.50
-4% 19.14 19.38
-1% Recovery Rate % 95.1%
95.2%
0% 95.2% 95.2%
0% Ounces Produced
786,628 763,529
3% 1,602,980
1,526,966
5% Mallay Ore Milled DMT 36,615
37,080
-1% 73,424 72,247
2% Ore Grade OZ/MT 8.70 8.72
0% 8.70 8.88
-2% Recovery Rate % 93.9% 93.5%
0% 94.6% 93.4%
1% Ounces Produced
297,777 302,118
-1% 605,031
599,298
1% Mining Unit
Operating Results Open Pit
Colquijirca
Ounces Produced 434,042 0
N.A.
1,263,545 0
N.A.
ZINC PRODUCTION 2Q15
2Q14 % 6M15
6M14 % Mining Unit Operating
Results Underground Uchucchacua Ore Milled DMT
209,949 244,992
-14% 492,522 457,700
8% Ore Grade %
1.08% 1.06%
2% 1.07% 1.09%
-2% Recovery Rate % 52.6%
60.5%
-13% 53.1% 61.0%
-13% MT Produced
1,212 1,575 -23%
2,798 3,045 -8% Mallay Ore
Milled DMT 36,615 37,080
-1% 73,424 72,247
2% Ore
Grade % 6.89% 8.13%
-15% 6.63% 8.13%
-18% Recovery
Rate % 84.9% 85.3%
0% 88.7% 85.5%
4% MT
Produced 2,141 2,570
-17% 4,320
5,020
-14% Mining Unit
Operating Results Open Pit
Colquijirca
MT Produced
11,664 0
N.A. 25,683 0 N.A.
APPENDIX 3: EBITDA Reconciliation (in
thousand US$)
2Q15
2Q14 6M15 6M14 Net
Income -31,490 32,574
-21,242 22,202
Add / Substract:
64,353 52,790
103,254 125,435 Provision for income
tax, net -61 10,493
10,366 17,815
Share in associated companies by theequity
method, net
-11,966 -20,169 -48,240
-15,689 Interest income -970
-1,841 -1,614 -3,647 Interest
expense 8,273 3,256
14,152 6,157 Loss on currency exchange difference
1,262 245 3,580
767 Long Term Compensation provision 0
0 0 1,925 Depreciation and
Amortization 63,189 49,691
117,808 95,089 Workers´ participation
provision -89 906 383
1,872 Impairment of long-term lived assets
3,803 0 3,803 0
Write-Down adjustment 0 0
0 0 Loss from discontinued operations
912 10,209 3,016 21,146
EBITDA Buenaventura Direct Operations
32,863 85,364
82,012 147,637 EBITDA Yanacocha
(43.65%)
42,574
24,392 112,726 21,753
EBITDA Cerro Verde (19.58%) 6,448
46,001 24,311 82,826
EBITDA
Coimolache (40.10%) 8,775 12,599
16,205 23,649
EBITDA Buenaventura +
All Associates
90,660
168,356 235,254
275,864
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings
before net interest, taxes, depreciation and amortization, share in
associated companies, net, loss on currency exchange difference,
other, net, provision for workers’ profit sharing and provision for
long-term officers’ compensation.
EBITDA (including associated companies) consists of EBITDA
(Buenaventura Direct Operations), plus (1) Buenaventura’s equity
share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of
EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of
EBITDA (Coimolache). All EBITDA mentioned were similarly calculated
using financial information provided to Buenaventura by the
associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations)
and EBITDA (including affiliates) to provide further information
with respect to its operating performance and the operating
performance of its equity investees, the affiliates. EBITDA
(Buenaventura Direct Operations) and EBITDA (including affiliates)
are not a measure of financial performance under IFRS, and may not
be comparable to similarly titled measures of other companies. You
should not consider EBITDA (Buenaventura Direct Operations) and
EBITDA (including affiliates) as alternatives to operating income
or net income determined in accordance with IFRS, as an indicator
of Buenaventura’s, affiliates operating performance, or as an
alternative to cash flows from operating activities, determined in
accordance with IFRS, as an indicator of cash flows or as a measure
of liquidity.
APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION
Reconciliation of Costs Applicable to Sales and Cost
Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding
depreciation and amortization, plus Selling expenses. Cost
applicable to sales per unit sold for each mine consists of cost
applicable to sales for a particular metal produced at a given mine
divided by the volume of such metal produced at such mine in the
specified period. We note that cost applicable to sales is not
directly comparable to the cash operating cost figures disclosed in
previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit
of mineral sold are not measures of financial performance under
IFRS, and may not be comparable to similarly titled measures of
other companies. We consider Cost applicable to sales and Cost
applicable to sales per unit of mineral sold to be key measures in
managing and evaluating our operating performance. These measures
are widely reported in the precious metals industry as a benchmark
for performance, but do not have standardized meanings. You should
not consider Cost applicable to sales or Cost applicable to sales
per unit of mineral sold as alternatives to cost of sales
determined in accordance with IFRS, as indicators of our operating
performance. Cost applicable to sales and Cost applicable to sales
per unit of mineral sold are calculated without adjusting for
by-product revenue amounts.
The tables below set forth (i) a reconciliation of consolidated
Cost of sales, excluding depreciation and amortization to
consolidated Cost applicable to sales, (ii) reconciliations of the
components of Cost applicable to sales (by mine and mineral) to the
corresponding consolidated line items set forth on our consolidated
statements of profit or loss for the three and six months ended
June 30, 2014 and 2015, 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, 2014
and 2015 by reference to the reconciliations of Cost of sales,
excluding depreciation and amortization (by mine and mineral),
Selling Expenses (by mine and metal) expenses and Exploration in
units in operations (by mine and mineral) to consolidated Cost of
sales, excluding depreciation and amortization, consolidated
Selling Expenses and consolidated Exploration in units in
operations expenses, respectively, set forth below.
Set forth below is a
reconciliation of consolidated Cost of sales, excluding
depreciation and amortization, to consolidated Cost applicable to
sales:
For the 3 months ended Jun 30 For the 6
months ended Jun 30 2015 2014
2015 2014 (in thousands of US$)
Consolidated Cost of sales excluding
depreciation andamortization
160,893 147,832 297,372 287,270
Add: Consolidated
Exploration in units in operation 22,630 27,425 45,100 51,155
Consolidated Commercial deductions 53,575 41,693 90,102 78,357
Consolidated Selling expenses 3,918 4,597 8,108
8,589
Consolidated Cost applicable to sales
241,016 221,547 440,682
425,371 Set forth below is a reconciliation of Cost
of sales, excluding depreciation and amortization (by mine and
mineral) to consolidated Cost of sales:
For the 3 months ended
Jun 30 For the 6 months ended Jun 30 2015
2014 2015 2014 Cost of
sales by mine and mineral (in thousands of US$)
Julcani, Gold 23 0 34 -8 Julcani, Silver 8,208 5,639 12,681 10,453
Julcani, Lead 693 473 1,138 895 Julcani, Copper 88 11 147 73
Mallay, Silver 1,801 1,849 3,849 3,955 Mallay, Lead 1,361 1,329
2,546 2,806 Mallay, Zinc 1,695 1,566 3,352 2,987 Breapampa, Gold
2,940 8,854 7,185 18,174 Breapampa, Silver 470 539 1,086 1,259
Orcopampa, Gold 23,338 21,198 54,034 49,872 Orcopampa, Silver 873
618 1,823 1,398 Uchucchacua, Silver 25,029 34,038 50,174 62,624
Uchucchacua, Lead 1,583 1,770 2,901 3,621 Uchucchacua, Zinc 2,266
1,043 3,017 2,365 La Zanja, Gold 24,371 13,562 50,490 29,612 La
Zanja, Silver 609 583 1,733 1,352 El Brocal, Gold 877 606 1,310
1,166 El Brocal, Silver 3,834 2,546 9,810 5,387 El Brocal, Lead
2,079 167 6,863 348 El Brocal, Zinc 9,607 -14 20,062 -1 El Brocal,
Copper 20,750 20,228 28,880 44,780 Non Mining Units 28,398
31,227 34,257 44,154
Consolidated Cost of sales, excluding
depreciationand amortization
160,893 147,832 297,372
287,270 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 Jun 30 For the 6 months ended Jun 30
2015 2014 2015
2014
Exploration expenses in units in
operation by mine and mineral
(in thousands of US$) Julcani, Gold 12 0 17 -4 Julcani,
Silver 4,184 2,553 6,370 5,038 Julcani, Lead 353 214 572 431
Julcani, Copper 45 5 74 35 Mallay, Silver 797 669 1,479 1,297
Mallay, Lead 602 481 978 920 Mallay, Zinc 750 566 1,288 979
Breapampa, Gold 10 201 71 321 Breapampa, Silver 2 12 11 22
Orcopampa, Gold 9,778 14,145 21,300 26,947 Orcopampa, Silver 366
412 718 755 Uchucchacua, Silver 4,957 7,491 10,909 13,086
Uchucchacua, Lead 313.4 390 631 757 Uchucchacua, Zinc 448.8 229 656
494 La Zanja, Gold 13 54 25 73 La Zanja, Silver 0 2 1 3 El Brocal,
Gold 0 0 0 0 El Brocal, Silver 0 0 0 0 El Brocal, Lead 0 0 0 0 El
Brocal, Zinc 0 0 0 0 El Brocal, Copper 0 0 0 0 Non Mining Units 0
0 0 0
Consolidated Exploration expenses in
units in operation 22,630 27,425
45,100 51,155 Set forth below is a
reconciliation of Commercial Deductions in units in operation (by
mine and mineral) to consolidated Commercial deductions:
For the 3 months ended Jun 30 For the 6 months ended Jun
30 2015 2014 2015
2014
Commercial Deductions in units in
operation by mine and mineral
(in thousands of US$) Julcani, Gold 7 0 9 -2 Julcani, Silver
2,682 1,549 4,010 3,165 Julcani, Lead 225 130 352 268 Julcani,
Copper 30 3 49 25 Mallay, Silver 920 797 1,799 1,768 Mallay, Lead
682 548 1,188 1,210 Mallay, Zinc 1,235 1,157 2,093 2,080 Breapampa,
Gold 8 33 47 58 Breapampa, Silver 0 0 2 0 Orcopampa, Gold 64 72 120
129 Orcopampa, Silver 0 0 0 0 Uchucchacua, Silver 8,179 8,867
16,142 15,951 Uchucchacua, Lead 495 440 921 917 Uchucchacua, Zinc
2,237 790 3,127 1,667 La Zanja, Gold 39 113 63 156 La Zanja, Silver
0 5 0 5 El Brocal, Gold 1,098 709 1,635 1,156 El Brocal, Silver
3,361 3,078 6,946 5,746 El Brocal, Lead 1,078 216 3,271 369 El
Brocal, Zinc 6,282 73 12,088 168 El Brocal, Copper 24,953 23,113
36,241 43,520 Non Mining Units 0 0 0 0
Consolidated Commercial deductions in units in operation
53,575 41,693 90,102
78,357 Set forth below is a reconciliation of Selling
expenses (by mine and mineral) to consolidated Selling expenses:
For the 3 months ended Jun 30 For the 6 months
ended Jun 30 2015 2014 2015
2014 Selling expenses by mine and
mineral (in thousands of US$) Julcani, Gold 1 0 2
0 Julcani, Silver 344 218 585 439 Julcani, Lead 29 18 52 38
Julcani, Copper 4 0 7 3 Mallay, Silver 133 168 272 342 Mallay, Lead
101 121 180 243 Mallay, Zinc 126 142 237 258 Breapampa, Gold 21 99
54 207 Breapampa, Silver 3 6 8 14 Orcopampa, Gold 192 214 442 455
Orcopampa, Silver 7 6 15 13 Uchucchacua, Silver 545 713 1,351 1,385
Uchucchacua, Lead 34 37 78 80 Uchucchacua, Zinc 49 22 81 52 La
Zanja, Gold 353 320 654 655 La Zanja, Silver 9 14 22 30 El Brocal,
Gold 37 63 65 97 El Brocal, Silver 160 263 485 448 El Brocal, Lead
87 17 340 29 El Brocal, Zinc 402 -1 993 0 El Brocal, Copper 869
2,090 1,429 3,724 Non Mining Units 411 69 758
78
Consolidated Selling expenses 3,918
4,597 8,108 8,589
JULCANI
JULCANI 2Q 2015 2Q 2014 6M 2015 6M
2014 GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL 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) 23 8,208 693 - 88 9,012 -0 5,639 473 -
11 6,122 Cost of Sales (without D&A) (US$000) 34 12,681 1,138 -
147 14,001 -8 10,453 895 - 73 11,413
Add: Add:
Exploration Expenses (US$000) 12 4,184 353 - 45 4,594 -0 2,553 214
- 5 2,772 Exploration Expenses (US$000) 17 6,370 572 - 74 7,033 -4
5,038 431 - 35 5,500 Commercial Deductions (US$000) 7 2,682 225 -
30 2,944 -0 1,549 130 - 3 1,681 Commercial Deductions (US$000) 9
4,010 352 - 49 4,420 -2 3,165 268 - 25 3,457 Selling Expenses
(US$000) 1 344 29 - 4 378 -0 218 18 - 0 237 Selling Expenses
(US$000) 2 585 52 - 7 645 -0 439 38 - 3 479
Cost Applicable to
Sales (US$000) 42 15,418 1,300 -
168 16,928 -0 9,959 835 -
20 10,812 Cost Applicable to Sales (US$000)
62 23,645 2,114 - 277
26,098 -14 19,094 1,632 -
137 20,849 Divide: Divide: Volume Sold
49 1,254,805 926 - 39 Not Applicable -1 734,963 592 - 6 Not
Applicable
Volume Sold
64 1,873,579 1,399 - 58 Not Applicable -12 1,463,716 1,137 - 29 No
Aplicable
CAS 872 12.29 1,403 -
4,256 Not Applicable - 13.55
1,411 - 3,313 Not Applicable CAS
973 12.62 1,511 - 4,739 No
Applicable - 13.04 1,436 -
4,789 No Applicable
MALLAY MALLAY 2Q 2015 2Q
2014 6M 2015 6M 2014 GOLD (OZ)
SILVER (OZ) LEAD (MT) ZINC (MT) COPPER
(MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT) COPPER (MT)
TOTAL Cost of Sales (without D&A) (US$000) - 1,801 1,361
1,695 - 4,858 - 1,849 1,329 1,566 - 4,744 Cost of Sales (without
D&A) (US$000) - 3,849 2,546 3,352 - 9,747 - 3,955 2,806 2,987 -
9,747
Add: Add: Exploration Expenses (US$000) - 797
602 750 - 2,148 - 669 481 566 - 1,716 Exploration Expenses (US$000)
- 1,479 978 1,288 - 3,745 - 1,297 920 979 - 3,196 Commercial
Deductions (US$000) - 920 682 1,235 - 2,837 - 797 548 1,157 - 2,502
Commercial Deductions (US$000) - 1,799 1,188 2,093 - 5,080 - 1,768
1,210 2,080 - 5,059 Selling Expenses (US$000) - 133 101 126 - 360 -
168 121 142 - 431 Selling Expenses (US$000) - 272 180 237 - 688 -
342 243 258 - 843
Cost Applicable to Sales (US$000) -
3,651 2,746 3,806 - 10,203
- 3,483 2,478 3,431 -
9,392 Cost Applicable to Sales (US$000) -
7,398 4,892 6,970 - 19,261
- 7,362 5,179 6,305 -
18,845 Divide: Divide:
Volume Sold
- 267,856 1,654 1,841 - Not Applicable - 261,718 1,731 2,049 - Not
Applicable Volume Sold - 529,674 3,110 3,477 - Not Applicable -
546,175 3,586 3,863 - Not Applicable
CAS -
13.63 1,660 2,067 - Not
Applicable - 13.31 1,431 1,675
- Not Applicable CAS - 13.97
1,573 2,005 - No Applicable -
13.48 1,444 1,632 - No
Applicable
BREAPAMPA BREAPAMPA 2Q 2015 2Q 2014
6M 2015 6M 2014 GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL 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) 2,940 470 - - - 3,410
8,854 539 - - - 9,393 Cost of Sales (without D&A) (US$000)
7,185 1,086 - - - 8,270 18,174 1,259 - - - 19,433
Add:
Add: Exploration Expenses (US$000) 10 2 - - - 12 201 12 - -
- 213 Exploration Expenses (US$000) 71 11 - - - 82 321 22 - - - 343
Commercial Deductions (US$000) 8 - - - - 8 33 - - - - 33 Commercial
Deductions (US$000) 47 2 - - - 49 58 - - - - 58 Selling Expenses
(US$000) 21 3 - - - 24 99 6 - - - 105 Selling Expenses (US$000) 54
8 - - - 62 207 14 - - - 221
Cost Applicable to Sales
(US$000) 2,979 475 - - -
3,453 9,186 557 - - -
9,744 Cost Applicable to Sales (US$000) 7,356
1,107 - - - 8,463 18,760
1,295 - - - 20,055
Divide: Divide: Volume Sold 5,203 62,374 - - - Not
Applicable 21,611 87,297 - - - Not Applicable Volume Sold 12,598
145,376 - - - Not Applicable 44,024 202,113 - - - Not Applicable
CAS 573 7.61 - - - Not
Applicable 425 6.38 - - -
Not Applicable CAS 584 7.61 -
- - No Applicable 426 6.41
- - - No Applicable
ORCOPAMPA ORCOPAMPA 2Q
2015 2Q 2014 6M 2015 6M 2014
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT) COPPER (MT)
TOTAL 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) 23,338 873 - - - 24,210 21,198 618 - - - 21,816 Cost of
Sales (without D&A) (US$000) 54,034 1,823 - - - 55,856 49,872
1,398 - - - 51,269
Add: Add: Exploration Expenses
(US$000) 9,778 366 - - - 10,144 14,145 412 - - - 14,558 Exploration
Expenses (US$000) 21,300 718 - - - 22,018 26,947 755 - - - 27,702
Commercial Deductions (US$000) 64 - - - - 64 72 - - - - 72
Commercial Deductions (US$000) 120 0 - - - 120 129 -0 - - - 129
Selling Expenses (US$000) 192 7 - - - 199 214 6 - - - 220 Selling
Expenses (US$000) 442 15 - - - 457 455 13 - - - 468
Cost
Applicable to Sales (US$000) 33,371 1,246
- - - 34,617 35,629 1,036
- - - 36,665 Cost Applicable to
Sales (US$000) 75,895 2,556 - -
- 78,451 77,403 2,165 - -
- 79,568 Divide: Divide:
Volume Sold
48,047 133,795 - - - Not Applicable 47,156 89,913 - - - Not
Applicable
Volume Sold
108,957 279,184 - - - Not Applicable 97,388 180,087 - - - Not
Applicable
CAS 695 9.31 - -
- Not Applicable 756 11.53 -
- - Not Applicable CAS 697
9.16 - - - No Applicable
795 12.02 - - - No
Applicable
UCHUCCHACUA UCHUCCHACUA 2Q 2015 2Q 2014
6M 2015 6M 2014 GOLD (OZ) SILVER
(OZ) LEAD (MT) ZINC (MT) COPPER (MT)
TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT)
ZINC (MT) COPPER (MT) TOTAL 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 25,029 1,583 2,266 -
28,880 - 34,038 1,770 1,043 - 36,851 Cost of Sales (without
D&A) (US$000) 2 50,174 2,901 3,017 - 56,092 - 62,624 3,621
2,365 - 68,610
Add: Add: Exploration Expenses
(US$000) 0.38 4,956.88 313.42 448.83 - 5,719.5 - 7,491 390 229 -
8,110 Exploration Expenses (US$000) 0 10,909 631 656 - 12,196 -
13,086 757 494 - 14,337 Commercial Deductions (US$000) 1 8,179 495
2,237 - 10,911 - 8,867 440 790 - 10,097 Commercial Deductions
(US$000) 1 16,142 921 3,127 - 20,190 - 15,951 917 1,667 - 18,534
Selling Expenses (US$000) 0 545 34 49 - 629 - 713 37 22 - 772
Selling Expenses (US$000) 0 1,351 78 81 - 1,510 - 1,385 80 52 -
1,517
Cost Applicable to Sales (US$000) 3
38,710 2,425 5,002 - 46,139
- 51,110 2,637 2,084 -
55,831 Cost Applicable to Sales (US$000) 3
78,576 4,531 6,881 - 89,988
- 93,046 5,375 4,579 -
102,999 Divide: Divide:
Volume Sold
3 2,472,030 1,273 1,701 - Not Applicable - 3,231,325 1,612 919 -
Not Applicable Volume Sold 3 5,226,729 2,736 2,415 - Not Applicable
- 5,685,264 3,140 2,057 - Not Applicable
CAS 1,123
15.66 1,906 2,940 - No
Applicable - 15.82 1,636 2,267
- No Applicable CAS 1,101 15.03
1,656 2,850 - No Applicable -
16.37 1,712 2,226 - No
Applicable
LA
ZANJA LA ZANJA 2Q 2015 2Q 2014 6M
2015 6M 2014 GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC
(MT) COPPER (MT) TOTAL 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) 24,371 609 - - - 24,979 13,562 583
- - - 14,146 Cost of Sales (without D&A) (US$000) 50,490 1,733
- - - 52,222 29,612 1,352 - - - 30,964
Add: Add:
Exploration Expenses (US$000) 13 0 - - - 13 54 2 - - - 56
Exploration Expenses (US$000) 25 1 - - - 26 73 3 - - - 76
Commercial Deductions (US$000) 39 - - - - 39 113 5 - - - 118
Commercial Deductions (US$000) 63 - - - - 63 156 5 - - - 161
Selling Expenses (US$000) 353 9 - - - 362 320 14 - - - 333 Selling
Expenses (US$000) 654 22 - - - 677 655 30 - - - 685
Cost
Applicable to Sales (US$000) 24,776 618 -
- - 25,393 14,049 604 -
- - 14,653 Cost Applicable to Sales
(US$000) 51,233 1,756 - - -
52,989 30,496 1,390 - - -
31,886 Divide: Divide: Volume Sold 36,518
68,376 - - - Not Applicable 38,694 112,355 - - - Not Applicable
Volume Sold 68,598 176,299 - - - Not Applicable 72,164 217,228 - -
- Not Applicable
CAS 678 9.03 -
- - Not Applicable 363 5.38
- - - Not Applicable CAS
747 9.96 - - - No
Applicable 423 6.40 - - -
Not Applicable
BROCAL
BROCAL 2Q 2015 2Q 2014 6M 2015 6M
2014 GOLD (OZ) SILVER (OZ) LEAD
(MT) ZINC (MT) COPPER (MT) TOTAL GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL 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) 877 3,834 2,079 9,607 20,750 37,148 606
2,546 167 -14 20,228 23,533 Cost of Sales (without D&A)
(US$000) 1,310 9,810 6,863 20,062 28,880 66,926 1,166 5,387 348 -1
44,780 51,679
Add: Add: Exploration Expenses (US$000)
- - - - - - - - - - - - Exploration Expenses (US$000) - - - - - - -
- - - - - Commercial Deductions (US$000) 1,098 3,361 1,078 6,282
24,953 36,773 709 3,078 216 73 23,113 27,189 Commercial Deductions
(US$000) 1,635 6,946 3,271 12,088 36,241 60,180 1,156 5,746 369 168
43,520 50,959 Selling Expenses (US$000) 37 160 87 402 869 1,555 63
263 17 -1 2,090 2,431 Selling Expenses (US$000) 65 485 340 993
1,429 3,311 97 448 29 -0 3,724 4,298
Cost Applicable to Sales
(US$000) 2,012 7,356 3,245 16,292
46,571 75,476 1,377 5,888 400
58 45,431 53,154 Cost Applicable to Sales
(US$000) 3,010 17,241 10,474 33,142
66,550 130,417 2,419 11,581 746
167 92,024 106,936 Divide:
Divide: Volume Sold 1,656 526,698 2,456 9,822 8,792 Not
Applicable 1,560 431,490 264 -21 10,180 Not Applicable Volume Sold
2,488 1,352,732 8,432 21,007 12,403 Not Applicable 2,694 809,711
418 -139 19,159 Not Applicable
CAS 1,215 13.97
1,321 1,659 5,297 Not Applicable
883 13.64 1,513 - 4,463 Not
Applicable CAS 1,210 12.75 1,242
1,578 5,366 No Applicable 898
14.30 1,782 - 4,803 Not
Applicable
NON
MINING COMPANIES NON MINING COMPANIES 2Q 2015
2Q 2014 6M 2015 6M 2014 GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
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) - - - - -
28,398 - - - - - 31,227 Cost of Sales (without D&A) (US$000) -
- - - - 34,257 - - - - - 44,154
Add: Add: Selling
Expenses (US$000) - - - - - 411 - - - - - 69 Selling Expenses
(US$000) - - - - - 758 - - - - - 78 Total (US$000) - - - - - 28,809
- - - - - 31,296 Total (US$000) - - - - - 35,015 - - - - - 44,232
BUENAVENTURA
CONSOLIDATED BUENAVENTURA CONSOLIDATED 2Q 2015
2Q 2014 6M 2015 6M 2014 GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
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) 51,551 40,824
5,716 13,569 20,838 160,895 44,219 45,813 3,739 2,595 20,239
147,832 Cost of Sales (without D&A) (US$000) 113,054 81,156
13,449 26,431 29,028 297,372 98,816 86,426 7,670 5,351 44,853
287,270
Add: Add: Exploration Expenses (US$000) 9,813
10,306 1,268 1,199 45 22,630 14,400 11,140 1,084 796 5 27,425
Exploration Expenses (US$000) 21,414 19,488 2,181 1,944 74 45,100
27,337 20,201 2,108 1,474 35 51,155 Commercial Deductions (US$000)
1,216 15,141 2,480 9,755 24,984 53,575 927 14,296 1,334 2,019
23,116 41,693 Commercial Deductions (US$000) 1,874 28,899 5,732
17,308 36,289 90,102 1,498 26,635 2,764 3,915 43,545 78,357 Selling
Expenses (US$000) 604 1,202 251 577 872 3,918 695 1,388 193 163
2,090 4,597 Selling Expenses (US$000) 1,216 2,738 650 1,310 1,436
8,108 1,414 2,670 389 311 3,727 8,589
Cost Applicable to Sales
(US$000) 63,183 67,473 9,716 25,099
46,739 241,018 60,241 72,637
6,350 5,573 45,451 221,547 Cost
Applicable to Sales (US$000) 137,559 132,280
22,011 46,993 66,827 440,683
129,064 135,933 12,931 11,050
92,161 425,371 Divide: Divide: Volume
Sold 91,474 4,785,933 6,309 13,364 8,831 Not Applicable 109,020
4,949,060 4,199 2,947 10,186 Not Applicable Volume Sold 192,707
9,583,574 15,678 26,899 12,462 Not Applicable 216,258 9,104,294
8,281 5,781 19,187 Not Applicable
CAS 691
14.10 1,540 1,878 5,292 Not
Applicable 553 14.68 1,512 1,891
4,462 Not Applicable CAS 714
13.80 1,404 1,747 5,363 Not
Applicable 597 14.93 1,562 1,911
4,803 Not Applicable
COIMOLACHE COIMOLACHE 2Q 2015
2Q 2014 6M 2015 6M 2014 GOLD
(OZ) SILVER (OZ) LEAD (MT) ZINC (MT)
COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ)
LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
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) 12,873 963 -
- - 13,836 14,684 1,010 - - - 15,694 Cost of Sales (without
D&A) (US$000) 25,349 1,913 - - - 27,262 26,646 1,769 - - -
28,415
Add: Add: Exploration Expenses (US$000) 1,752
131 - - - 1,883 2,374 163 - - - 2,537 Exploration Expenses (US$000)
8,853 668 - - - 9,521 3,493 232 - - - 3,725 Commercial Deductions
(US$000) 89 7 - - - 95 127 7 - - - 134 Commercial Deductions
(US$000) 289 23 - - - 312 214 13 - - - 227 Selling Expenses
(US$000) 215 16 - - - 231 256 18 - - - 274 Selling Expenses
(US$000) 440 33 - - - 474 456 30 - - - 486
Cost Applicable to
Sales (US$000) 14,928 1,117 - -
- 16,045 17,440 1,198 - -
- 18,639 Cost Applicable to Sales (US$000)
34,931 2,637 - - - 37,568
30,809 2,045 - - - 32,854
Divide: Divide: Volume Sold 30,024 162,106 - - - Not
Applicable 36,607 167,321 - - - Not Applicable Volume Sold 60,746
331,507 - - - Not Applicable 66,873 288,129 - - - Not Applicable
CAS 497 6.89 - - - Not
Applicable 476 7.16 - - -
Not Applicable CAS 575 7.95 -
- - No Applicable 461 7.10
- - - Not Applicable
APPENDIX 5: ALL-IN SUSTAINING
COST
All-in Sustaining Cost for 2Q14
Buenaventura1 La Zanja Tantahuatay
Attributable Production2 2Q14 2Q14
2Q14
2Q14
Au Ounces Sold BVN 105,910 Au Ounces bought from La Zanja -37,145
Au Ounces Sold Net 68,766 37,592 36,607 103,390
2Q14
2Q14
2Q14
2Q14
Income Statement & Cash Flow US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au Cost of Sales3
92,837 1,350 20,457 544 15,694 429 109,984 1,064 Exploration in
Operating Units 27,369 398 5,678 151 2,537 69 31,399 304 Royalties
5,214 76 0 0 0 0 5,214 50 Comercial Deductions4 14,386 209 921 25
134 4 14,928 144 Selling Expenses 1,780 26 333 9 274 7 2,067 20
Administrative Expenses5 13,506 196 2,717 72 494 13 15,146 146
Other Expenses 0 0 2,670 71 1,110 30 1,862 18 Other Incomes -4,872
-71 -2,683 -71 -1,374 -38 -6,847 -66 Other administrative charges 0
0 399 11 148 4 271 3 Sustaining Capex6 8,403 122 4,482 119 3,618 99
12,231 118 By-product Credit -101,617 -1,478 -2,532 -67
3,251 89 -101,657 -983
All-in Sustaining Cost
57,005 829 32,441 863 25,885
707 84,597 818 *All-in Sustaining Cost
does not include: Depreciation and Amortization, Stoppage of mining
units, Exploration in non-operating areas.
Notes: 1. Non-consolidated financial statements for
Compañia De Minas Buenaventura S.A.A. 2. Considers 100% from
Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and
40.095% from Tantahuatay. 3. For Buenaventura does not consider
purchase of concentrate from La Zanja. 4. For all metals produced.
5. For Buenaventura, does not consider management services charged
to subsidiaries. 6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
All-in Sustaining Cost for 1H14
Buenaventura1 La Zanja
Tantahuatay Attributable Production2
1H14 1H14
1H14
1H14
Au Ounces Sold BVN 212,014 Au Ounces bought from La Zanja -70,614
Au Ounces Sold Net 141,399 69,589 66,873 205,136
1H14
1H14
1H14
1H14
Income Statement & Cash Flow US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au Cost of Sales3
181,429 1,283 38,849 558 28,415 425 213,435 1,040 Exploration in
Operating Units 51,079 361 8,693 125 3,725 56 57,185 279 Royalties
10,812 76 0 0 0 0 10,812 53 Comercial Deductions4 27,237 193 1,880
27 227 3 28,325 138 Selling Expenses 3,554 25 685 10 486 7 4,112 20
Administrative Expenses5 29,983 212 3,085 44 1,183 18 32,094 156
Other Expenses 0 0 4,934 71 1,973 29 3,409 17 Other Incomes 7,161
51 -4,849 -70 -2,619 -39 3,538 17 Other administrative charges 0 0
878 13 218 3 553 3 Sustaining Capex6 19,740 140 6,713 96 5,811 87
25,632 125 By-product Credit -189,242 -1,338 -4,605 -66
5,751 86 -189,380 -923
All-in Sustaining Cost
141,754 1,003 56,263 809 45,169
675 189,717 925 *All-in Sustaining Cost
does not include: Depreciation and Amortization, Stoppage of mining
units, Exploration in non-operating areas.
Notes: 1. Non-consolidated financial statements for
Compañia De Minas Buenaventura S.A.A. 2. Considers 100% from
Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and
40.095% from Tantahuatay. 3. For Buenaventura does not consider
purchase of concentrate from La Zanja. 4. For all metals produced.
5. For Buenaventura, does not consider management services charged
to subsidiaries. For La Zanja does not consider US$ 3.8 MM
Impairment. 6. Sustaining Capex + Growth Capex equals Acquisitions
of mining concessions, development costs, property, plant and
equipment.
All-in Sustaining Cost for 2Q15
Buenaventura1 La Zanja
Tantahuatay Attributable Production2
2Q15 2Q15 2Q15
2Q15
Au Ounces Sold BVN 89,819 Au Ounces bought from La Zanja -36,518 Au
Ounces Sold Net 53,301 39,651 30,024 86,378
2Q15
2Q15
2Q15
2Q15
Income Statement & Cash Flow US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au Cost of Sales3
68,479 1,285 33,793 852 13,836 461 91,957 1,065 Exploration in
Operating Units 22,617 424 2,600 66 1,883 63 24,751 287 Royalties
4,801 90 0 0 0 0 4,801 56 Comercial Deductions4 16,764 315 945 24
95 3 17,303 200 Selling Expenses 1,590 30 362 9 231 8 1,874 22
Administrative Expenses5 10,699 201 366 9 394 13 11,051 128 Other
Expenses 0 0 4,518 114 1,862 62 3,144 36 Other Incomes -1,602 -30
-5,549 -140 -2,155 -72 -5,410 -63 Other administrative charges 0 0
858 22 126 4 506 6 Sustaining Capex6 4,599 86 9,406 237 9,178 306
13,270 154 By-product Credit -83,451 -1,566 -1,249 -32
-2,643 -88 -85,174 -986
All-in Sustaining Cost
44,495 835 46,048 1,161 22,808
760 78,073 904 *All-in Sustaining Cost
does not include: Depreciation and Amortization, Stoppage of mining
units, Exploration in non-operating areas.
Notes: 1. Non-consolidated financial statements for
Compañia De Minas Buenaventura S.A.A. 2. Considers 100% from
Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and
40.095% from Tantahuatay. 3. For Buenaventura does not consider
purchase of concentrate from La Zanja. 4. For all metals produced.
5. For Buenaventura, does not consider management services charged
to subsidiaries. For La Zanja does not consider US$ 3.8 MM
Impairment. 6. Sustaining Capex + Growth Capex equals Acquisitions
of mining concessions, development costs, property, plant and
equipment.
All-in Sustaining Cost for 1H15
Buenaventura1 La Zanja
Tantahuatay Attributable Production2
1H15 1H15 1H15
1H15
Au Ounces Sold BVN 190,219 Au Ounces bought from La Zanja -68,598
Au Ounces Sold Net 121,621 67,628 60,746 181,860
1H15
1H15
1H15
1H15
Income Statement & Cash Flow US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au Cost of Sales3
152,832 1,257 57,182 846 27,262 449 194,104 1,067 Exploration in
Operating Units 45,074 371 8,310 123 9,521 157 53,300 293 Royalties
11,600 95 0 0 0 0 11,600 64 Comercial Deductions4 29,859 246 1,639
24 312 5 30,853 170 Selling Expenses 3,364 28 677 10 474 8 3,913 22
Administrative Expenses5 24,128 198 740 11 928 15 24,893 137 Other
Expenses 0 0 6,630 98 2,748 45 4,620 25 Other Incomes -3,018 -25
-9,335 -138 -3,599 -59 -9,414 -52 Other administrative charges 0 0
2,442 36 571 9 1,525 8 Sustaining Capex6 10,009 82 13,536 200
15,552 256 23,427 129 By-product Credit -152,373 -1,253
-2,636 -39 -5,532 -91 -155,990 -858
All-in Sustaining
Cost 121,474 999 79,185 1,171
48,236 794 182,830 1,005 *All-in
Sustaining Cost does not include: Depreciation and Amortization,
Stoppage of mining units, Exploration in non-operating areas.
Notes: 1. Non-consolidated financial statements
for Compañia De Minas Buenaventura S.A.A. 2. Considers 100% from
Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and
40.095% from Tantahuatay. 3. For Buenaventura does not consider
purchase of concentrate from La Zanja. 4. For all metals produced.
5. For Buenaventura, does not consider management services charged
to subsidiaries. For La Zanja does not consider US$ 3.8 MM
Impairment. 6. Sustaining Capex + Growth Capex equals Acquisitions
of mining concessions, development costs, property, plant and
equipment.
APPENDIX 6
Compañía de Minas Buenaventura S.A.A. and
Subsidiaries Consolidated Statement of Financial
Position As of June 30, 2015 and December 31, 2014
2,015 2,014 Assets US$(000)
US$(000) Current assets Cash and cash equivalents
125,276 78,512 Trade and other accounts receivable, net 245,530
281,604 Income tax credit 53,926 53,746 Prepaid expenses 13,755
16,954 Hedge derivative financial instruments 3,623 3,688
Inventory, net 146,621 150,284
Total current assets
588,731 584,788 Assets classified as held for sale
16,789 18,683
605,520 603,471 Non-current
assets Trade and other accounts receivable, net 31,423 26,651
Long-term inventory 9,883 34,088 Investment in associates 2,269,603
2,224,381 Mining concessions, development costs, property, plant
and equipment, net 1,713,497 1,715,452 Investment properties, net
10,934 11,200 Deferred income tax asset 40,465 47,675 Intangible
assets, net 4,253 4,592 Other assets, net 4,732 4,764
Total
non-current assets 4,084,790 4,068,803
Total assets 4,690,310 4,672,274
Liabilities and shareholders’ equity Current
liabilities Overdrafts and bank loans 85,807 40,000 Trade and
other accounts payable 231,003 254,000 Provisions 70,450 67,895
Current income tax payable 2,914 3,556 Hedge derivative financial
instruments 3,017 - Embedded derivatives for concentrate sales, net
8,477 9,072 Financial obligations 46,142 69,950
Total current
liabilities 447,810 444,473 Liabilities
directly associated with assets classified as held for sale 22,850
28,890
470,660 473,363 Non-current
liabilities Financial liability at fair value through profit or
loss 23,026 23,026 Trade and other accounts payable 15,103 15,240
Provisions 94,240 63,571 Financial obligations 338,077 313,355
Deferred income tax liability 16,570 21,594
Total non-current
liabilities 487,016 436,786
Total liabilities 957,676 910,149
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 2,326,996 2,328,423 Other equity reserves (567)
1,755
3,460,356 3,464,105 Non-controlling interest
272,278 298,020
Total shareholders’ equity 3,732,634
3,762,125 Total liabilities and
shareholders’ equity 4,690,310 4,672,274
Compañía de Minas Buenaventura S.A.A. and
Subsidiaries Consolidated Statement of Income
For the three-month periodended
June 30,
For the six-month periodended
June 30,
2,015 2,014 2,015 2,014 US$(000)
US$(000) US$(000) US$(000) Continued
operations Operating income Net sales 248,908 294,813
491,840 567,690 Royalty income 7,390 7,399 16,480 15,424
Total
operating income 256,298 302,212 508,320 583,114
Operating costs Cost of sales, without considering
depreciation and amortization (160,895) (147,832) (297,372)
(287,270) Exploration in operating units (22,630) (27,425) (45,100)
(51,155) Depreciation and amortization (63,189) (49,691) (117,808)
(95,089) Mining royalties (6,552) (7,088) (15,077) (14,441)
Total operating costs (253,266) (232,036) (475,357)
(447,955)
Gross profit 3,032
70,176 32,963 135,159
Operating expenses, net
Administrative expenses (18,831) (22,033) (40,347) (49,684)
Exploration in non-operating areas (9,704) (14,821) (20,401)
(25,195) Selling expenses (3,918) (4,597) (8,108) (8,589)
Impairment of long-lived assets (3,803) - (3,803) - Provision for
contingencies (58) (3,381) 192 (10,888) Other, net (758) 9,423
(478) 7,948
Total operating expenses, net (37,072) (35,409)
(72,945) (86,408)
Operating profit (loss) (34,040)
34,767 (39,982) 48,751
Other income, net Net share in
the results of associates under equity method 11,966 20,169 48,240
15,689 Financial income 970 1,841 1,614 3,647 Financial expenses
(8,273) (3,256) (14,152) (6,157) Net loss from currency exchange
difference (1,262) (245) (3,580) (767)
Total other income,
net 3,401 18,509 32,122 12,412
Profit (loss) before
income taxes and non-controlling interest (30,639) 53,276
(7,860) 61,163 Current income tax expense (2,006) (6,939)
(7,383) (14,744) Deferred income tax income (expense) 2,067 (3,554)
(2,983) (3,071)
Profit (loss) from
continued operations (30,578) 42,783 (18,226) 43,348
Discontinued operations Loss from discontinued operations
(912) (10,209) (3,016) (21,146)
Net profit (loss) (31,490)
32,574 (21,242) 22,202 Attributable to: Owners of the parent
(18,746) 23,088 (1,427) 6,976 Non-controlling interest (12,744)
9,486 (19,815) 15,226 (31,490) 32,574 (21,242) 22,202
Basic and diluted earnings per share attributable to the
owners of the parent, stated in U.S. dollars (0.07) 0.09 (0.01)
0.03
Weighted average number of shares outstanding
(common and investment), in units 254,186,867 254,186,867
254,186,867 254,186,867
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Cash Flows
For the three-month periodended
June 30,
For the six-month period
endedJune 30,
2,015 2,014 2,015 2,014 US$(000)
US$(000) US$(000) US$(000) Operating
activities Proceeds from sales 250,675 266,880 482,454 533,734
Value Added Tax (VAT) recovered 19,506 21,981 52,873 39,685
Royalties received 9,397 8,429 22,841 15,424 Dividends received 902
2,065 2,959 4,442 Interest received 855 1,704 1,797 3,829 Payments
to suppliers and third-parties (183,029) (188,407) (361,783)
(388,141) Payments to employees (41,700) (51,341) (87,028)
(106,961) Payment of income tax (7,121) (12,533) (11,262) (17,944)
Payment of royalties (5,684) (3,513) (11,882) (10,966) Payment of
interest (4,129) (3,505) (9,599) (5,453)
Net cash and
cash equivalents provided by operating activities 39,672 41,760
81,370 67,649
Investing activities Proceeds from
collections of loans - 1,426 - 10,458 Proceeds from sales of mining
concessions, property, plant and equipment 1,886 67 2,020 90
Proceeds from settlement of investment in shares - 80 - 80
Acquisitions of mining concessions, development costs, property,
plant and equipment (44,514) (60,383) (81,632) (133,956)
Acquisitions of investment properties - - - (11,705) Loans granted
- (157) - (157) Contributions and investments in associates - (472)
- (1,475)
Net cash and cash equivalents used in investing
activities (42,628) (59,439) (79,612) (136,665)
Financing activities Increase of bank loans - 2,321 90,000
2,321 Increase of financial obligations - 108,780 10,000 183,439
Repayment of bank loans - - (40,000) - Payment of financial
obligations (4,068) (29,053) (9,086) (33,593) Dividends paid -
(2,797) - (2,797) Dividends paid to non-controlling interest
(2,640) (2,240) (5,908) (4,200)
Net cash and cash
equivalents provided by (used in) financing activities (6,708)
77,011 45,006 145,170 Net increase (decrease) in cash and
cash equivalents during the period (9,664) 59,332 46,764 76,154
Cash and cash equivalents at the beginning of the period 134,940
78,720 78,512 61,898
Cash and cash
equivalents at period-end 125,276 138,052 125,276 138,052
For the three-month periodended
June 30,
For the six-month period
endedJune 30,
2,015 2,014 2,015 2,014
US$(000) US$(000) 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
(18,746) 23,088 (1,427) 6,976
Plus (less):
Depreciation and amortization 63,189 50,669 117,808 96,067 Net
profit (loss) attributable to non-controlling interest (12,744)
9,486 (19,815) 15,226 Provision for employee bonus (8,175) (11,897)
- - Deferred income tax expense (income) (2,067) 3,554 2,983 3,071
Provision for estimated fair value of embedded derivatives related
to concentrate sales and adjustments on open liquidations 6,061
(13,549) (595) (4,100) Provision for impairment of inventories
6,034 2,207 4,782 (835) Accretion expense of provision for closure
of mining units and exploration projects 2,560 (221) 2,835 1,222
Provision for stock appreciation rights 20 - 135 1,931 Provision
for impairment of long-lived assets 3,803 - 3,803 794 Net loss from
currency exchange difference 1,186 242 3,504 764 Net share in the
results of associates under equity method (11,966) (20,169)
(48,240) (15,689) Loss (gain) on sales of mining concessions,
property, plant and equipment 1,639 (41) 2,953 (64) Provision for
interest payable 2,227 - 2,742 - Allowance for doubtful accounts
846 (204) 847 19 Others provisions 7,358 19,435 191 22,293
Net changes in operating assets and liabilities
Decrease (increase) in operating assets Trade and other accounts
receivable, net 8,780 (18,366) 29,474 (16,902) Income tax credit
(1,879) 43 (180) (5,551) Inventory, net (3,335) 7,248 24,466 27,437
Prepaid expenses 1,539 (1,888) 2,699 (1,055) Increase
(decrease) in operating liabilities Trade and other accounts
payable 20,286 (3,665) (14,359) (46,405) Provisions (23,941)
(4,004) (32,594) (17,596) Income tax payable (3,003) (208) (642) 46
Net cash and cash equivalents
provided by operating activities 39,672 41,760 81,370 67,649
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150731005554/en/
Contacts in Lima:Compañía de Minas Buenaventura S.A.A.Carlos
Galvez, Chief Financial OfficerTel (511) 419 2540orDaniel
Dominguez, Director of Treasury and Investor RelationsTel (511) 419
2591daniel.dominguez@buenaventura.peorContacts in New York:i-advize
Corporate CommunicationsMaria Barona - Rafael
Borjabuenaventura@i-advize.comTel (212) 406 3691 - 3693
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