The first bullet point in the Second Quarter 2015 Highlights should read: In 2Q15, EBITDA from direct operations was US$32.9 million and adjusted EBITDA (including associated companies) was US$90.7 million. (instead of ...adjusted EBITDA (including associated companies) was US$92.4 million.)

The corrected release reads:

BUENAVENTURA ANNOUNCES SECOND QUARTER AND SIX-MONTH PERIOD 2015 RESULTS

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$90.7 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  

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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