FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Report of Foreign Issuer

 

Pursuant to Rule 13a-16 or 15d-16 of the

 Securities Exchange Act of 1934

 

For the month of October 2015

 

BUENAVENTURA MINING COMPANY INC.

 (Translation of Registrant's Name into English)

 

CARLOS VILLARAN 790

 SANTA CATALINA, LIMA 13, PERU

(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x Form 40-F ¨

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

  

Yes ¨ No x

  

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________________.

 

 

 

 

 

Buenaventura Announces Third Quarter and

Nine-Month Period 2015 Results

   
  Lima, Peru, October 29, 2015 – Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, announced today results for the third quarter (3Q15) and nine-month (9M15) periods, ended September 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$).
   
  Third Quarter 2015 Highlights:
     
  · In 3Q15, EBITDA from direct operations was US$6.9 million and adjusted EBITDA (including associated companies) was US$73.5 million.
  · Total attributable production (including associates) in 3Q15 was 197k gold ounces and 5.8 million silver ounces (compared to 217k gold ounces and 5.2 million silver ounces in 3Q14).
  · At the Tambomayo project, 100% of mayor equipment has been purchased. Operations are expected to start in 3Q16.
  · At the San Gabriel (Chucapaca) project, the Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 1Q16.
  · During 3Q15, El Brocal average ore treated reached 15K TPD level. 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 (more than 95% complete). Full plant capacity is expected to be reached in 1Q16.
     
    Financial Highlights (in millions of US$, except EPS figures):
     
      3Q15 3Q14 Var% 9M15 9M14 Var%
    Total Revenues 208.8 316.2 -34% 717.2 899.3 -20%
    Operating Profit -54.7 31.2 N.A. -94.7 79.9 N.A.
    EBITDA Direct Operations 6.9 88.9 -92% 88.9 234.7 -62%
    Adjusted EBITDA (Inc Associates) 73.5 222.4 -67% 305.3 493.9 -38%
    Net Income -23.2 78.3 N.A. -24.7 85.3 N.A.
    EPS* -0.09 0.31 N.A. -0.10 0.34 N.A.
                 
  (*) as of September 30, 2015 Buenaventura had 254,186,867 outstanding shares.
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 
                 

 

 

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 2 of 23

 

Operating Revenues

 

During 3Q15, net sales were US$200.1 million, a 35% decrease compared to the US$306.7 million reported in 3Q14. This was mainly explained by the decrease in gold, silver and copper prices as well as lower gold and copper volume sold.

 

Royalty income decreased 9%, to US$8.7 million in 3Q15 compared to the US$9.5 reported in 3Q14. This was due to lower revenues at Yanacocha (13% lower QoQ).

 

Operating Highlights 3Q15 3Q14 Var% 9M15 9M14 Var%

Net Sales

(in millions of US$)

200.1 306.7 -35% 692.0 874.4 -21%
Average Realized Gold Price (US$/oz)1 2 1,102 1,273 -13% 1,170 1,285 -9%
Average Realized Gold Price (US$/oz) inc. Affiliates 1,111 1,274 -13% 1,173 1,284 -9%
Average Realized Silver Price (US$/oz)1 2 14.50 19.59 -26% 15.34 19.71 -22%
Average Realized Lead Price (US$/MT) 1 2 1,593 2,210 -28% 1,734 2,155 -20%

Average Realized

Zinc Price (US$/MT) 1 2

1,775 2,365 -25% 1,998 2,248 -11%
Average Realized Copper Price (US$/MT) 1 2 3,723 6,864 -46% 4,599 6,824 -33%
(1)Buenaventura’s Direct Operations
(2)The realized price considers the adjustments of quational periods

 

Volume Sold 3Q15 3Q14 Var% 9M15 9M14 Var%
Gold Oz Direct Operations 94,841 117,956 -20% 287,548 334,214 -14%
Gold Oz inc Associated Companies 212,701 231,038 -8% 611,527 629,341 -3%
Silver Oz 4,864,690 4,865,059 0% 14,448,264 13,969,353 3%
Lead MT 6,409 4,848 32% 22,086 13,129 68%
Zinc MT 12,543 5,162 143% 39,442 10,943 260%
Copper MT 7,456 10,625 -30% 19,917 29,812 -33%

 

For 9M15, net sales decreased 21%, from US$874.4 million in 9M14 to US$692.0 million in 9M15. Royalty income was US$25.2 million in 9M15 in-line with the figure reported in 9M14.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 3 of 23

 

Production and Operating Costs

 

In 3Q15, Buenaventura’s gold equity production from direct operations decreased 16%, from 108,432 ounces in 3Q14 to 91,188 ounces in 3Q15 due to the decline in production at Breapampa mine. Gold production including associated companies was 197,019 ounces, 9% lower than the reported in the same period 2014. Silver equity production from direct operations increased 11%, mainly due to higher production at Uchucchacua mine.

 

Equity Production 3Q15 3Q14 Var% 9M15 9M14 Var%
Gold Oz Direct Operations1 91,188 108,432 -16% 267,969 317,968 -16%
Gold Oz including Associated Companies 197,019 217,308 -9% 576,328 600,661 -4%
Silver Oz Direct Operations1 5,629,336 5,064,369 11% 15,425,859 13,724,183 12%
Silver Oz including Associated Companies 5,762,107 5,215,218 10% 15,818,165 14,167,832 12%
Lead MT 6,542 5,149 27% 19,697 14,215 39%
Zinc MT 10,047 5,163 95% 31,108 13,530 130%
Copper MT Direct Operations1 5,187 6,435 -19% 12,640 17,792 -29%
Copper MT including Associated Companies 16,115 16,865 -4% 42,275 51,255 -18%

 

Orcopampa’s (100% owned by Buenaventura)

 

Production
    3Q15 3Q14 Var % 9M15 9M14 Var %
Gold Oz 54,035 52,317 3% 156,023 148,348 5%
Silver Oz 146,930 120,459 22% 392,541 286,570 37%

 

Cost Applicable to Sales
    3Q15 3Q14 Var % 9M15 9M14 Var %
Gold US$/Oz 632 820 -23% 675 804 -16%

 

Gold production at Orcopampa increased 3% in 3Q15 (compared to 3Q14) due to higher ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 3Q15 decreased 23% explained by lower contractor costs (renegotiated unit prices) and lower reagent costs (price of cyanide).

 

Gold production guidance for 2015 is 190k – 205k ounces.

 

Uchucchacua (100% owned by Buenaventura)

 

Production
    3Q15 3Q14 Var % 9M15 9M14 Var %
Silver Oz 3,775,049 3,293,830 15% 9,801,411 8,659,942 13%
Zinc MT 1,293 1,800 -28% 4,090 4,845 -16%
Lead MT 2,340 2,115 11% 5,869 5,519 6%

 

 

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10% of Coimolache (Tantahuatay).

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 4 of 23

 

Cost Applicable to Sales
    3Q15 3Q14 Var % 9M15 9M14 Var %
Silver US$/Oz 13.51 17.69 -24% 14.44 16.83 -14%

 

Silver production in 3Q15 increased 15% compared to 3Q14, due to higher ore treated. Cost Applicable to Sales (CAS) in 3Q15 decreased 24% compared to 3Q14, mainly explained by lower consumable costs (reagents, ball bearings and blasting materials) and lower hauling costs (mine infrastructure improvements).

 

Silver production guidance for 2015 is 14.0 million – 14.5 million ounces.

 

Mallay (100% owned by Buenaventura)

 

Production
    3Q15 3Q14 Var % 9M15 9M14 Var %
Silver Oz 323,095 307,523 5% 928,126 906,821 2%
Zinc MT 2,445 2,540 -4% 6,765 7,560 -11%
Lead MT 1,925 1,921 0% 5,353 5,637 -5%

 

Cost Applicable to Sales
    3Q15 3Q14 Var % 9M15 9M14 Var %
Silver US$/Oz 13.94 15.03 -7% 13.96 14.04 -1%

 

Silver production in 3Q15 increased 5% compared to 3Q14, due to higher ore treated despite the lower grade (Appendix 2). Cost Applicable to Sales (CAS) in 3Q15 was 7% lower compared to 3Q14 due to more ounces produced and lower exploration expenses.

 

Silver production guidance for 2015 is 1.1 million – 1.3 million ounces.

 

Julcani (100% owned by Buenaventura)

 

Production
    3Q15 3Q14 Var % 9M15 9M14 Var %
Silver Oz 794,810 774,728 3% 2,397,790 2,301,694 4%

 

Cost Applicable to Sales
    3Q15 3Q14 Var % 9M15 9M14 Var %
Silver US$/Oz 12.95 16.32 -21% 12.70 14.18 -10%

 

Silver production in 3Q15 increased 3% compared to 3Q14 production, due to higher ore treated despite the lower grade (Appendix 2). Cost Applicable to Sales (CAS) in 3Q15 was 21% lower than 3Q14, mainly due to lower exploration expenses.

 

Silver production guidance for 2015 is 2.9 million – 3.1 million ounces.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 5 of 23

 

 

La Zanja’s (53.06% owned by Buenaventura)

 

Production
    3Q15 3Q14 Var % 9M15 9M14 Var %
Gold Oz 35,653 36,143 -1% 103,362 108,765 -5%
Silver Oz 78,844 105,741 -25% 241,969 339,801 -29%
               
Cost Applicable to Sales
    3Q15 3Q14 Var % 9M15 9M14 Var %
Gold US$/Oz 824 677 22% 773 529 46%

 

Gold production in 3Q15 decreased 1% compared to 3Q14. CAS in 3Q15 increased 22% mainly due to higher ore hauling costs explained by the longer distance between the Pampa Verde Pit and the leaching pad compared to the San Pedro Sur Pit. In 3Q15, 95% of the production came from the Pampa Verde pit in contrast to 50% in 3Q14.

 

Gold production guidance for 2015 is 138k – 142k ounces.

 

Tantahuatay’s (40.10% owned by Buenaventura)

 

Production
    3Q15 3Q14 Var % 9M15 9M14 Var %
Gold Oz 34,739 37,281 -7% 97,085 105,085 -8%
Silver Oz 259,433 234,710 11% 598,392 527,226 13%
               
Cost Applicable to Sales
    3Q15 3Q14 Var % 9M15 9M14 Var %
Gold US$/Oz 483 423 14% 542 447 21%

 

Gold production in 3Q15 decreased 7% compared to the figure reported in 3Q14. CAS in 3Q15 increased 14% mainly due to a higher stripping ratio and preoperational stripping in the Cienaga Norte pit.

 

Gold production guidance for 2015 is 138k – 142k ounces

 

El Brocal (54.07% owned by Buenaventura)

 

Production
    3Q15 3Q14 Var % 9M15 9M14 Var %
Copper MT 9,446 11,764 -20% 22,895 32,533 -30%
Zinc MT 11,670 1,522 667% 37,353 1,522 2,354%
Silver Oz 735,760 584,116 26% 2,486,399 1,580,213 57%
               
Cost Applicable to Sales
    3Q15 3Q14 Var % 9M15 9M14 Var %
Copper US$/MT 5,161 5,272 -2% 5,267 4,971 6%
Zinc US$/MT 1,823 1,403 30% 1,653 1,732 -5%

 

During 3Q15, 55% of the plant capacity was used to treat pollymetalic ore and 45% to treat copper ore (compared to 8% pollymetalic ore and 92% copper ore). As a consequence, Copper production decreased 20%, silver production increased 26% and Zinc production increased 667%.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 6 of 23

 

In 3Q15, Zinc CAS increased 30% compared to 3Q14 mainly due to higher commercial deductions. Copper CAS decreased 2% compared to 3Q14, mainly due to a lower ore grade.

 

Zinc production guidance for 2015 is 50k – 55k MT. Copper production guidance for 2015 is 30k – 35k MT.

 

General and Administrative Expenses

 

General and administrative expenses in 3Q15 were US$20.4million, 11% lower compared to the 3Q14 figure (US$23.0 million). For the nine-month period 2015, the expense was US$60.8 million (US$72.7 million in 9M14).

 

Exploration in Non-Operating Areas

 

Exploration in non-operating areas during 3Q15 was US$5.3 million compared with the US$7.2 million in 3Q14. During the period, Buenaventura’s main exploration efforts were focused on the Tambomayo project (US$3.1 million). For the nine-month period 2015, the expense was US$25.7 million (US$32.4 million in 9M14).

 

Share in Associated Companies

 

During 3Q15, Buenaventura’s share in associated companies was US$13.4 million, compared to US$23.6 million reported in 3Q14, composed by:

 

Share in the Result of Associates

(in millions of US$)

3Q15 3Q14 Var % 9M15 9M14 Var %
Cerro Verde 1.3 14.9 -91% 9.1 57.1 -84%

Coimolache

(Tantahuatay mine)

4.1 6.3 -35% 10.1 17.2 -41%
Yanacocha 8.0 2.3 241% 42.4 (35.0) N.A.
Total 13.4 23.6 -43% 61.6 39.2 57%

 

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 3Q15, gold production was 242,454 ounces of gold, 3% lower than 3Q14 production (249,429 ounces). For the nine-month 2015 period, gold production was 706,433 ounces, 9% higher than 647,635 ounces in 9M14.

 

Gold production guidance at Yanacocha for 2015 is 880k – 920k ounces.

 

In 3Q15, Yanacocha reported net income of US$18.2 million compared to US$60.3 million reported in 3Q14. CAS in 3Q15 was US$630/oz, 20% higher than the US$526/oz reported in 3Q14 mainly due to a higher inventory write-down (US$19.9 million in 3Q15 compared to US$9.2 million in 3Q14) and higher workers participation.

 

Capital expenditures at Yanacocha were US$25.5 million in 3Q15, while for 9M15 was US$58.9 million.

 

Yanacocha still has a strong pipeline of growth projects: Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha Verde (scoping) and Maqui Maqui (exploration).

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 7 of 23

 

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 3Q15 copper production was 55,811 MT (10,928 MT attributable to Buenaventura), a 5% increase compared to 3Q14 (53,268 MT and 10,430 MT attributable to Buenaventura). For 9M15, copper production was 151,354 MT (29,635 MT attributable to Buenaventura).

 

During 3Q15, Cerro Verde reported a net profit of US$6.7 million compared to US$85.3 million in 3Q14. This was mainly due to lower sales explained by the decline in copper price (US$2.14/lb in 3Q15 vs US$2.98/lb in 3Q14), despite of the 12% increase in volume sold. For 9M15, net income was US$46.5 million (compared to US$321.7 million in 9M14).

 

Capital expenditures at Cerro Verde were US$385.1 million in 3Q15, and US$1,321.5 million in 9M15.

 

Cerro Verde’s plant expansion was 360K TPD, in-line with schedule and budget (more than 95% complete). In September 2015, one of the primary crushers and two mills started operations, resulting in the first production of copper concentrate coming from the new plant.

 

As of September 30, 2015, accumulated CAPEX of the expansion project was US$4.2 billion (out of US$4.6 billion budget). Full plant capacity is expected to be reached in 1Q16 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 3Q15 was US$4.1 million (US$6.3 million in 3Q14). For 9M15, the contribution was US$10.1 million, compared to US$17.2 million reported in 2014.

 

Project Development and Exploration

 

The Tambomayo Project (100% ownership)

·Detail engineering currently at 95% of development
·Civil works are expected to be completed in 3Q16
·100% of mayor equipment has been purchased
·CAPEX: US$ 290 – 340 million (includes 100% of mine development and a plant of 1,500 TPD)

 

The San Gabriel Project (100% ownership)

·Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 1Q16
·Feasibility studies completed in 3Q16
·Estimated CAPEX: US$ 400 – 500 million (this includes US$81million paid to Gold Fields in 2014)
·Basic engineering of the project is expected to be ready in 1Q16
·Construction of the exploration ramp: 280 meters drifted (objective for 2015: 520 meters)

 

Recent events

 

The Company’s Board of Directors approved Buenaventura´s participation in the following El Brocal financing transactions:

·Capital increase of up to US$70 million in two trenches of US$35 million each (1st trench is mandatory and the 2nd trench is subject to El Brocal´s board of directors approval)
·Private bond issuance of US$35 million

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 8 of 23

 

* * *

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*, Mallay*, Julcani*, El Brocal, La Zanja and Coimolache and is developing the Tambomayo and San Gabriel projects.

 

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

 

For a printed version of the Company’s 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 in

Subsidiaries and Associates (as of September 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

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 9 of 23

 

 

 

APPENDIX 2

 

    GOLD PRODUCTION
    3Q15 3Q14 % 9M15 9M14 %
Mining Unit Operating Results Underground
Orcopampa Ore Milled DMT 114,509 119,748 -4% 337,344 338,832 0%
  Ore Grade OZ/MT 0.49 0.44 10% 0.48 0.45 6%
  Recovery Rate % 95.2% 97.6% -2% 95.8% 97.1% -1%
  Ounces Produced* 54,035 52,317 3% 156,023 147,349 6%
Mining Unit Operating Results Open Pit
La Zanja Ounces Produced 35,653 36,143 -1% 103,362 108,765 -5%
Tantahuatay Ounces Produced 34,739 37,281 -7% 97,085 105,085 -8%
* Includes ounces from retreatment of taling dams
               
    SILVER PRODUCTION
    3Q15 3Q14 % 9M15 9M14 %
Mining Unit Operating Results Underground
Uchucchacua Ore Milled DMT 310,733 267,963 16% 803,255 725,664 11%
  Ore Grade OZ/MT 14.56 14.68 -1% 14.57 14.85 -2%
  Recovery Rate % 83.5% 83.7% 0% 83.8% 80.4% 4%
  Ounces Produced 3,775,050 3,293,830 15% 9,801,412 8,659,942 13%
Julcani Ore Milled DMT 44,937 41,714 8% 132,242 132,924 -1%
  Ore Grade OZ/MT 18.51 19.51 -5% 18.93 19.42 -3%
  Recovery Rate % 95.5% 95.2% 0% 95.3% 95.2% 0%
  Ounces Produced 794,810 774,728 3% 2,397,790 2,301,694 4%
Mallay Ore Milled DMT 41,888 37,521 12% 115,312 109,768 5%
  Ore Grade OZ/MT 8.31 8.67 -4% 8.57 8.81 -3%
  Recovery Rate % 92.8% 94.5% -2% 94.0% 93.8% 0%
  Ounces Produced 323,095 307,523 5% 928,126 906,821 2%
Mining Unit Operating Results Open Pit
Colquijirca Ounces Produced 517,648 112,446 360% 1,781,192 112,446 1484%
               
    ZINC PRODUCTION
    3Q15 3Q14 % 9M15 9M14 %
Mining Unit Operating Results Underground
Uchucchacua Ore Milled DMT 310,733 267,963 16% 803,256 725,664 11%
  Ore Grade % 1.03% 1.10% -6% 1.05% 1.09% -4%
  Recovery Rate % 40.5% 61.2% -34% 48.2% 61.1% -21%
  MT Produced 1,294 1,800 -28% 4,091 4,845 -16%
Mallay Ore Milled DMT 41,888 37,522 12% 115,312 109,770 5%
  Ore Grade % 6.65% 7.90% -16% 6.64% 8.05% -18%
  Recovery Rate % 87.8% 85.7% 3% 88.5% 85.6% 3%
  MT Produced 2,445 2,540 -4% 6,765 7,560 -11%
Mining Unit Operating Results Open Pit
Colquijirca MT Produced 11,670 1,522 667% 37,353 1,522 2354%

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 10 of 23

 

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

 

  3Q15 3Q14 9M15 9M14
Net Income -39,006 80,599 -60,248 102,801
Add / Substract: 45,938 8,317 149,192 131,935
Provision for income tax, net -14,297 24,269 -3,931 42,084
Share in associated companies by the equity method, net -13,381 -23,553 -61,621 -39,242
Gain on business combination 0 -59,879 0 -59,879
Interest income -827 -552 -2,441 -4,199
Interest expense 6,951 848 21,103 7,005
Loss on currency exchange difference 3,945 4,304 7,525 5,071
Long Term Compensation provision 0 0 0 1,925
Depreciation and Amortization 61,377 55,925 179,185 151,014
Workers´ participation provision 246 1,817 629 1,872
Impairment of long-term lived assets 0 0 3,803 0
Write-Down adjustment 0 0 0 0
Loss from discontinued operations 1,924 5,138 4,940 26,284
EBITDA Buenaventura Direct Operations 6,932 88,916 88,944 234,736
EBITDA Yanacocha (43.65%) 38,496 85,545 146,005 99,725
EBITDA Cerro Verde (19.58%) 18,707 34,957 44,764 122,873
EBITDA Coimolache (40.10%) 9,402 12,959 25,605 36,605
Adjusted EBITDA (Including Associated companies) 73,537 222,377 305,318 493,938

  

Note:

EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.

 

EBITDA (including associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.

 

Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 11 of 23

 

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.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 12 of 23

 

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 Sep 30   For the 9 months ended Sep 30
  2015   2014   2015   2014
  (in thousands of US$)
Consolidated Cost of sales excluding depreciation and amortization 136,185   160,298   433,557   447,568
Add:              
Consolidated Exploration in units in operation 20,991   25,424   66,091   76,579
Consolidated Commercial deductions 45,111   51,266   135,213   129,621
Consolidated Selling expenses 4,707   4,332   12,815   12,921
Consolidated Cost applicable to sales 206,994   241,319   647,677   666,689

 

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 Sep 30   For the 9 months ended Sep 30
    2015   2014   2015   2014
Cost of sales by mine and mineral   (in thousands of US$)
Julcani, Gold   6   6   40   -4
Julcani, Silver   3,715   8,070   16,396   18,514
Julcani, Lead   282   605   1,420   1,515
Julcani, Copper   41   75   189   144
Mallay, Gold   57   0   54   0
Mallay, Silver   1,936   2,258   5,785   6,222
Mallay, Lead   1,304   1,613   3,848   4,426
Mallay, Zinc   1,577   2,552   4,934   5,522
Breapampa, Gold   2,532   9,008   9,763   27,181
Breapampa, Silver   607   515   1,647   1,775
Orcopampa, Gold   24,097   31,520   78,131   81,397
Orcopampa, Silver   806   963   2,629   2,355
Uchucchacua, Gold   16   0   18   0
Uchucchacua, Silver   28,612   37,345   78,791   100,009
Uchucchacua, Lead   1,739   2,384   4,642   5,991
Uchucchacua, Zinc   821   1,781   3,829   4,120
La Zanja, Gold   29,306   25,244   79,778   56,921
La Zanja, Silver   854   991   2,604   2,475
El Brocal, Gold   1,370   1,354   2,542   2,500
El Brocal, Silver   3,861   3,035   14,007   8,433
El Brocal, Lead   2,566   564   9,693   901
El Brocal, Zinc   11,403   1,000   31,404   967
El Brocal, Copper   17,878   26,345   46,358   71,177
Non Mining Units   796   3,069   35,053   45,026
Consolidated Cost of sales, excluding depreciation and amortization   136,185   160,298   433,557   447,568

  

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 Sep 30   For the 9 months ended Sep 30
    2015   2014   2015   2014
Exploration expenses in units in operation by mine and mineral (in thousands of US$)
Julcani, Gold   4   2   22   -2
Julcani, Silver   2,582   2,781   8,945   7,819
Julcani, Lead   196   209   775   640
Julcani, Copper   29   26   103   61
Mallay, Gold   21   0   20   0
Mallay, Silver   699   825   2,178   2,133
Mallay, Lead   470   589   1,449   1,517
Mallay, Zinc   569   932   1,857   1,893
Breapampa, Gold   1   77   71   399
Breapampa, Silver   0   4   12   26
Orcopampa, Gold   9,365   13,493   30,664   40,437
Orcopampa, Silver   313   412   1,032   1,170
Uchucchacua, Gold   3   0   4   0
Uchucchacua, Silver   6,176   5,437   17,087   18,509
Uchucchacua, Lead   375   347   1,007   1,109
Uchucchacua, Zinc   177   259   830   762
La Zanja, Gold   9   29   35   101
La Zanja, Silver   0   1   1   4
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 20,991   25,424   66,091   76,579

 

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 13 of 23

 

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 Sep 30   For the 9 months ended Sep 30
  2015   2014   2015   2014
Commercial Deductions in units in operation by mine and mineral (in thousands of US$)
Julcani, Gold 2   1   11   0
Julcani, Silver 1,241   1,689   5,251   4,853
Julcani, Lead 95   127   447   395
Julcani, Copper 16   16   64   41
Mallay, Silver 29   0   29   0
Mallay, Silver 1,083   1,087   2,883   2,855
Mallay, Lead 732   756   1,920   1,966
Mallay, Zinc 1,062   1,778   3,155   3,858
Breapampa, Gold 15   18   62   76
Breapampa, Silver 2   0   5   0
Orcopampa, Gold 81   72   200   201
Orcopampa, Silver 0   0   0   0
Uchucchacua, Gold 5   0   5   0
Uchucchacua, Silver 9,094   10,305   25,236   26,256
Uchucchacua, Lead 565   699   1,486   1,616
Uchucchacua, Zinc 831   1,172   3,958   2,838
La Zanja, Gold 77   45   141   201
La Zanja, Silver 12   0   12   5
El Brocal, Gold 1,287   1,419   2,922   2,574
El Brocal, Silver 2,646   3,011   9,592   8,758
El Brocal, Lead 1,129   306   4,400   675
El Brocal, Zinc 5,631   617   17,719   785
El Brocal, Copper 19,477   28,148   55,717   71,668
Non Mining Units 0   0   0   0
Consolidated Commercial deductions in units in operation 45,111   51,266   135,213   129,621

  

Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses:

 

    For the 3 months ended Sep 30   For the 9 months ended Sep 30
    2015   2014   2015   2014
Selling expenses by mine and mineral   (in thousands of US$)
Julcani, Gold   0   0   2   0
Julcani, Silver   197   275   781   714
Julcani, Lead   15   21   68   58
Julcani, Copper   2   3   9   6
Mallay, Gold   4   0   4   0
Mallay, Silver   147   178   418   519
Mallay, Lead   99   127   278   369
Mallay, Zinc   119   201   357   461
Breapampa, Gold   43   99   98   306
Breapampa, Silver   10   6   17   20
Orcopampa, Gold   192   251   634   706
Orcopampa, Silver   6   8   21   20
Uchucchacua, Gold   0   0   0   0
Uchucchacua, Silver   816   843   2,166   2,229
Uchucchacua, Lead   50   54   128   134
Uchucchacua, Zinc   23   40   105   92
La Zanja, Gold   269   326   923   981
La Zanja, Silver   8   13   30   43
El Brocal, Gold   79   72   133   179
El Brocal, Silver   222   162   733   605
El Brocal, Lead   147   30   507   65
El Brocal, Zinc   654   53   1,642   69
El Brocal, Copper   1,026   1,409   2,424   5,107
Non Mining Units   579   160   1,337   238
Consolidated Selling expenses   4,707   4,332   12,815   12,921

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 14 of 23

 

  JULCANI
  3Q 2015 3Q 2014
  GOLD 
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 6 3,715 282 - 41 4,044 6 8,070 605 - 75 8,756
Add:                        
Exploration Expenses (US$000) 4 2,582 196 - 29 2,811 2 2,781 209 - 26 3,017
Commercial Deductions (US$000) 2 1,241 95 - 16 1,353 1 1,689 127 - 16 1,832
Selling Expenses (US$000) 0 197 15 - 2 214 0 275 21 - 3 299
Cost Applicable to Sales (US$000) 12 7,734 588 - 88 8,423 10 12,815 961 - 119 13,905
Divide:                        
Volume Sold 12 597,425 405 - 19 Not Applicable 9 785,437 522 - 21 Not Applicable
CAS 994 12.95 1,452 - 4,725 Not Applicable 1,067 16.32 1,843 - 5,676 Not Applicable
                         
  MALLAY
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 57 1,936 1,304 1,577 - 4,875 - 2,258 1,613 2,552 - 6,423
Add:                        
Exploration Expenses (US$000) 21 699 470 569 - 1,759 - 825 589 932 - 2,346
Commercial Deductions (US$000) 29 1,083 732 1,062 - 2,906 - 1,087 756 1,778 - 3,620
Selling Expenses (US$000) 4 147 99 119 - 369 - 178 127 201 - 507
Cost Applicable to Sales (US$000) 111 3,865 2,605 3,328 - 9,909 - 4,347 3,085 5,464 - 12,896
Divide:                        
Volume Sold 105 277,157 1,737 2,024 - Not Applicable - 289,181 1,869 2,753 - Not Applicable
CAS 1,062 13.94 1,500 1,644 - Not Applicable - 15.03 1,650 1,984 - Not Applicable
                         
  BREAPAMPA
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 2,532 607 - - - 3,139 9,008 515 - - - 9,523
Add:                        
Exploration Expenses (US$000) 1 0 - - - 1 77 4 - - - 82
Commercial Deductions (US$000) 15 2 - - - 17 18 - - - - 18
Selling Expenses (US$000) 43 10 - - - 53 99 6 - - - 105
Cost Applicable to Sales (US$000) 2,590 620 - - - 3,210 9,202 525 - - - 9,727
Divide:                        
Volume Sold 3,471 63,069 - - - Not Applicable 21,877 83,179 - - - Not Applicable
CAS 746 9.83 - - - Not Applicable 421 6.32 - - - Not Applicable
                         
  ORCOPAMPA
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 24,097 806 - - - 24,904 31,520 963 - - - 32,483
Add:                        
Exploration Expenses (US$000) 9,365 313 - - - 9,678 13,493 412 - - - 13,905
Commercial Deductions (US$000) 81 - - - - 81 72 0 - - - 73
Selling Expenses (US$000) 192 6 - - - 198 251 8 - - - 258
Cost Applicable to Sales (US$000) 33,734 1,126 - - - 34,861 45,336 1,384 - - - 46,719
Divide:                        
Volume Sold 53,376 136,573 - - - Not Applicable 55,279 113,405 - - - Not Applicable
CAS 632 8.25 - - - Not Applicable 820 12.20 - - - Not Applicable
                         
  UCHUCCHACUA
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 16 28,612 1,739 821 - 31,188 - 37,345 2,384 1,781 - 41,510
Add:                        
Exploration Expenses (US$000) 3 6,176.21 375.43 177.20 - 6,732.3 - 5,437 347 259 - 6,043
Commercial Deductions (US$000) 5 9,094 565 831 - 10,495 - 10,305 699 1,172 - 12,176
Selling Expenses (US$000) 0 816 50 23 - 889 - 843 54 40 - 937
Cost Applicable to Sales (US$000) 24 44,698 2,729 1,852 - 49,305 - 53,930 3,484 3,252 - 60,666
Divide:                        
Volume Sold 23 3,307,909 1,831 815 - Not Applicable - 3,048,394 1,725 1,218 - Not Applicable
CAS 1,043 13.51 1,491 2,272 - No Applicable - 17.69 2,019 2,670 - No Applicable
                         
  JULCANI
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 40 16,396 1,420 - 189 18,045 -4 18,514 1,515 - 144 20,170
Add:                        
Exploration Expenses (US$000) 22 8,945 775 - 103 9,844 -2 7,819 640 - 61 8,518
Commercial Deductions (US$000) 11 5,251 447 - 64 5,773 -0 4,853 395 - 41 5,289
Selling Expenses (US$000) 2 781 68 - 9 860 -0 714 58 - 6 777
Cost Applicable to Sales (US$000) 75 31,373 2,709 - 365 34,521 -6 31,900 2,608 - 252 34,754
Divide:                        
Volume Sold 76 2,471,004 1,804 - 77 Not Applicable -3 2,249,152 1,658 - 49 No Aplicable
CAS 984 12.70 1,502 - 4,738 No Applicable - 14.18 1,573 - 5,099 No Applicable
                         
  MALLAY
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 54 5,785 3,848 4,934 - 14,622 - 6,222 4,426 5,522 - 16,170
Add:                        
Exploration Expenses (US$000) 20 2,178 1,449 1,857 - 5,504 - 2,133 1,517 1,893 - 5,543
Commercial Deductions (US$000) 29 2,883 1,920 3,155 - 7,987 - 2,855 1,966 3,858 - 8,679
Selling Expenses (US$000) 4 418 278 357 - 1,057 - 519 369 461 - 1,350
Cost Applicable to Sales (US$000) 108 11,264 7,495 10,303 - 29,170 - 11,729 8,278 11,734 - 31,741
Divide:                        
Volume Sold 105 806,831 4,847 5,501 - Not Applicable - 835,356 5,456 6,616 - Not Applicable
CAS 1,029 13.96 1,546 1,873 - No Applicable - 14.04 1,517 1,774 - No Applicable
                         
  BREAPAMPA
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 9,763 1,647 - - - 11,410 27,181 1,775 - - - 28,956
Add:                        
Exploration Expenses (US$000) 71 12 - - - 83 399 26 - - - 425
Commercial Deductions (US$000) 62 5 - - - 66 76 - - - - 76
Selling Expenses (US$000) 98 17 - - - 114 306 20 - - - 326
Cost Applicable to Sales (US$000) 9,993 1,680 - - - 11,673 27,961 1,821 - - - 29,782
Divide:                        
Volume Sold 16,069 208,445 - - - Not Applicable 65,901 285,292 - - - Not Applicable
CAS 622 8.06 - - - No Applicable 424 6.38 - - - No Applicable
                         
  ORCOPAMPA
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 78,131 2,629 - - - 80,760 81,397 2,355 - - - 83,752
Add:                        
Exploration Expenses (US$000) 30,664 1,032 - - - 31,696 40,437 1,170 - - - 41,607
Commercial Deductions (US$000) 200 0 - - - 200 201 0 - - - 202
Selling Expenses (US$000) 634 21 - - - 655 706 20 - - - 726
Cost Applicable to Sales (US$000) 109,629 3,683 - - - 113,312 122,742 3,546 - - - 126,288
Divide:                        
Volume Sold 162,333 415,757 - - - Not Applicable 152,667 293,493 - - - Not Applicable
CAS 675 8.86 - - - No Applicable 804 12.08 - - - No Applicable
                         
  UCHUCCHACUA
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER 
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER 
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 18 78,791 4,642 3,829 - 87,280 - 100,009 5,991 4,120 - 110,120
Add:                        
Exploration Expenses (US$000) 4 17,087 1,007 830 - 18,928 - 18,509 1,109 762 - 20,380
Commercial Deductions (US$000) 5 25,236 1,486 3,958 - 30,685 - 26,256 1,616 2,838 - 30,710
Selling Expenses (US$000) 0 2,166 128 105 - 2,399 - 2,229 134 92 - 2,454
Cost Applicable to Sales (US$000) 27 123,280 7,263 8,723 - 139,293 - 147,003 8,849 7,812 - 163,665
Divide:                        
Volume Sold 26 8,534,639 4,567 3,230 - Not Applicable - 8,733,658 4,865 3,275 - Not Applicable
CAS 1,056 14.44 1,590 2,701 - No Applicable - 16.83 1,819 2,385 - No Applicable

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 15 of 23

  

  LA ZANJA
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 29,306 854 - - - 30,160 25,244 991 - - - 26,235
Add:                        
Exploration Expenses (US$000) 9 0 - - - 9 29 1 - - - 30
Commercial Deductions (US$000) 77 12 - - - 90 45 - - - - 45
Selling Expenses (US$000) 269 8 - - - 277 326 13 - - - 339
Cost Applicable to Sales (US$000) 29,661 875 - - - 30,536 25,644 1,005 - - - 26,649
Divide:                        
Volume Sold 35,995 79,267 - - - Not Applicable 37,889 99,349 - - - Not Applicable
CAS 824 11.03 - - - Not Applicable 677 10.12 - - - Not Applicable
                         
  BROCAL
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 1,370 3,861 2,566 11,403 17,878 37,078 1,354 3,035 564 1,000 26,345 32,299
Add:                        
Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 1,287 2,646 1,129 5,631 19,477 30,169 1,419 3,011 306 617 28,148 33,502
Selling Expenses (US$000) 79 222 147 654 1,026 2,128 72 162 30 53 1,409 1,728
Cost Applicable to Sales (US$000) 2,735 6,729 3,842 17,688 38,381 69,375 2,846 6,209 900 1,671 55,903 67,529
Divide:                        
Volume Sold 1,858 403,292 2,436 9,704 7,437 Not Applicable 2,902 446,115 731 1,191 10,604 Not Applicable
CAS 1,472 16.68 1,577 1,823 5,161 Not Applicable 981 13.92 1,231 1,403 5,272 Not Applicable
                         
  NON MINING COMPANIES
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) - - - - - 796 - - - - - 3,069
Add:                        
Selling Expenses (US$000) - - - - - 579 - - - - - 160
Total (US$000) - - - - - 1,376 - - - - - 3,229
                         
  BUENAVENTURA CONSOLIDATED
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 57,385 40,392 5,891 13,801 17,920 136,185 67,132 53,177 5,167 5,334 26,420 160,298
Add:                        
Exploration Expenses (US$000) 9,403 9,771 1,042 746 29 20,991 13,601 9,460 1,145 1,192 26 25,424
Commercial Deductions (US$000) 1,495 14,079 2,521 7,524 19,492 45,111 1,556 16,092 1,887 3,567 28,164 51,266
Selling Expenses (US$000) 587 1,405 310 797 1,028 4,707 748 1,485 232 295 1,412 4,332
Cost Applicable to Sales (US$000) 68,869 65,647 9,765 22,868 38,469 206,994 83,037 80,215 8,431 10,387 56,021 241,319
Divide:                        
Volume Sold 94,841 4,864,690 6,409 12,543 7,456 Not Applicable 117,956 4,865,059 4,848 5,162 10,625 Not Applicable
CAS 726 13.49 1,524 1,823 5,160 Not Applicable 704 16.49 1,739 2,012 5,273 Not Applicable
                         
  COIMOLACHE
  3Q 2015 3Q 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 13,667 1,307 - - - 14,973 13,497 1,295 - - - 14,793
Add:                        
Exploration Expenses (US$000) 2,192 210 - - - 2,402 1,184 114 - - - 1,298
Commercial Deductions (US$000) 219 18 - - - 237 37 3 - - - 40
Selling Expenses (US$000) 207 20 - - - 227 266 25 - - - 291
Cost Applicable to Sales (US$000) 16,285 1,554 - - - 17,839 14,984 1,437 - - - 16,421
Divide:                        
Volume Sold 33,682 247,769 - - - Not Applicable 35,434 220,227 - - - Not Applicable
CAS 483 6.27 - - - Not Applicable 423 6.52 - - - Not Applicable

 

  LA ZANJA
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 79,778 2,604 - - - 82,383 56,921 2,475 - - - 59,396
Add:                        
Exploration Expenses (US$000) 35 1 - - - 36 101 4 - - - 106
Commercial Deductions (US$000) 141 12 - - - 153 201 5 - - - 206
Selling Expenses (US$000) 923 30 - - - 954 981 43 - - - 1,024
Cost Applicable to Sales (US$000) 80,877 2,648 - - - 83,525 58,205 2,527 - - - 60,732
Divide:                        
Volume Sold 104,594 255,566 - - - Not Applicable 110,053 316,577 - - - Not Applicable
CAS 773 10.36 - - - No Applicable 529 7.98 - - - Not Applicable
                         
  BROCAL
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 2,542 14,007 9,693 31,404 46,358 104,004 2,500 8,433 901 967 71,177 83,978
Add:                        
Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 2,922 9,592 4,400 17,719 55,717 90,349 2,574 8,758 675 785 71,668 84,459
Selling Expenses (US$000) 133 733 507 1,642 2,424 5,439 179 605 65 69 5,107 6,026
Cost Applicable to Sales (US$000) 5,597 24,331 14,600 50,765 104,499 199,792 5,253 17,795 1,640 1,821 147,953 174,463
Divide:                        
Volume Sold 4,346 1,756,023 10,869 30,711 19,840 Not Applicable 5,596 1,255,826 1,150 1,052 29,762 Not Applicable
CAS 1,288 13.86 1,343 1,653 5,267 No Applicable 939 14.17 1,427 1,732 4,971 Not Applicable
                         
  NON MINING COMPANIES
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) - - - - - 35,053 - - - - - 45,026
Add:                        
Selling Expenses (US$000) - - - - - 1,337 - - - - - 238
Total (US$000) - - - - - 36,390 - - - - - 45,264
                         
  BUENAVENTURA CONSOLIDATED
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 170,326 121,861 19,604 40,167 46,546 433,557 167,995 139,784 12,832 10,609 71,321 447,568
Add:                        
Exploration Expenses (US$000) 30,816 29,255 3,230 2,688 103 66,091 40,936 29,661 3,265 2,655 61 76,579
Commercial Deductions (US$000) 3,369 42,978 8,253 24,832 55,782 135,213 3,052 42,727 4,652 7,481 71,709 129,621
Selling Expenses (US$000) 1,794 4,166 980 2,104 2,433 12,815 2,172 4,150 626 622 5,113 12,921
Cost Applicable to Sales (US$000) 206,306 198,259 32,067 69,791 104,864 647,677 214,155 216,322 21,375 21,368 148,204 666,688
Divide:                        
Volume Sold 287,548 14,448,264 22,086 39,442 19,917 Not Applicable 334,214 13,969,353 13,129 10,943 29,812 Not Applicable
CAS 717 13.72 1,452 1,769 5,265 Not Applicable 641 15.49 1,628 1,953 4,971 Not Applicable
                         
  COIMOLACHE
  9M 2015 9M 2014
  GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL GOLD
(OZ)
SILVER
(OZ)
LEAD
(MT)
ZINC
(MT)
COPPER
(MT)
TOTAL
Cost of Sales (without D&A) (US$000) 39,023 3,212 - - - 42,235 40,137 3,071 - - - 43,208
Add:                        
Exploration Expenses (US$000) 11,016 907 - - - 11,922 4,666 357 - - - 5,023
Commercial Deductions (US$000) 509 40 - - - 549 251 15 - - - 267
Selling Expenses (US$000) 647 53 - - - 700 722 55 - - - 778
Cost Applicable to Sales (US$000) 51,195 4,212 - - - 55,407 45,776 3,498 - - - 49,275
Divide:                        
Volume Sold 94,428 579,275 - - - Not Applicable 102,308 508,356 - - - Not Applicable
CAS 542 7.27 - - - No Applicable 447 6.88 - - - Not Applicable

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 16 of 23

 

APPENDIX 5: ALL-IN SUSTAINING COST

 

All-in Sustaining Cost for 3Q15

  

   Buenaventura1   La Zanja   Tantahuatay   Attributable Production2 
   3Q15   3Q15   3Q15   3Q15 
Au Ounces Sold BVN   92,866                
Au Ounces bought from La Zanja   -35,879                
Au Ounces Sold Net   56,987    32,990    33,682    87,996 

 

   3Q15   3Q15   3Q15   3Q15 
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   76,109    1,336    29,950    908    14,973    445    98,004    1,114 
Exploration in Operating Units   20,982    368    137    4    2,402    71    22,018    250 
Royalties   5,302    93    0    0    0    0    5,302    60 
Comercial Deductions4   14,852    261    855    26    237    7    15,401    175 
Selling Expenses   1,724    30    277    8    227    7    1,962    22 
Administrative Expenses5   11,516    202    459    14    436    13    11,934    136 
Other Expenses   0    0    3,525    107    2,887    86    3,028    34 
Other Incomes   -965    -17    -6,704    -203    -3,422    -102    -5,894    -67 
Other administrative charges   0    0    3,031    92    233    7    1,702    19 
Sustaining Capex6   12,643    222    12,488    379    17,092    507    26,122    297 
                                         
By-product Credit   -74,363    -1,305    -1,333    -40    -3,590    -107    -76,510    -869 
                                         
All-in Sustaining Cost   67,800    1,190    42,684    1,294    31,476    935    103,069    1,171 

 

*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.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 17 of 23

  

All-in Sustaining Cost for 3Q14

 

   Buenaventura1   La Zanja   Tantahuatay   Attributable Production2 
   3Q14   3Q14   3Q14   3Q14 
Au Ounces Sold BVN   115,054                
Au Ounces bought from La Zanja   -37,889                
Au Ounces Sold Net   77,166    38,271    35,434    111,680 

 

   3Q14   3Q14   3Q14   3Q14 
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   85,977    1,114    21,951    574    14,793    417    103,555    927 
Exploration in Operating Units   25,395    329    4,509    118    1,298    37    28,308    253 
Royalties   5,702    74    0    0    0    0    5,702    51 
Comercial Deductions4   17,719    230    818    21    40    1    18,169    163 
Selling Expenses   2,081    27    339    9    291    8    2,378    21 
Administrative Expenses5   12,280    159    238    6    418    12    12,574    113 
Other Expenses   0    0    3,082    81    1,888    53    2,392    21 
Other Incomes   -8,080    -105    -3,599    -94    -2,146    -61    -10,850    -97 
Other administrative charges   0    0    1,237    32    32    1    669    6 
Sustaining Capex6   2,315    30    5,819    152    9,459    267    9,195    82 
                                         
By-product Credit   -103,778    -1,345    -1,618    -42    -4,321    -122    -106,370    -952 
                                         
All-in Sustaining Cost   39,611    513    32,776    856    21,751    614    65,723    588 

 

*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.

 

Notes:

1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.

2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.

3. For Buenaventura does not consider purchase of concentrate from La Zanja.

4. For all metals produced.

5. For Buenaventura, does not consider management services charged to subsidiaries.

6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 18 of 23

  

All-in Sustaining Cost for 9M15

 

   Buenaventura1   La Zanja   Tantahuatay   Attributable Production2 
   9M15   9M15   9M15   9M15 
Au Ounces Sold BVN   283,085                
Au Ounces bought from La Zanja   -104,477                
Au Ounces Sold Net   178,608    100,618    94,428    269,857 

 

   9M15   9M15   9M15   9M15 
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   228,941    1,282    87,133    866    42,235    447    292,108    1,082 
Exploration in Operating Units   66,056    370    8,446    84    11,922    126    75,318    279 
Royalties   16,902    95    0    0    0    0    16,902    63 
Comercial Deductions4   44,711    250    2,494    25    549    6    46,254    171 
Selling Expenses   5,088    28    954    9    700    7    5,875    22 
Administrative Expenses5   35,644    200    1,200    12    1,364    14    36,827    136 
Other Expenses   0    0    10,156    101    5,635    60    7,648    28 
Other Incomes   -3,983    -22    -16,039    -159    -7,022    -74    -15,308    -57 
Other administrative charges   0    0    5,472    54    126    1    2,954    11 
Sustaining Capex6   22,652    127    26,024    259    32,644    346    49,549    184 
                                         
By-product Credit   -226,736    -1,269    -3,969    -39    -9,122    -97    -232,500    -862 
                                         
All-in Sustaining Cost   189,275    1,060    121,870    1,211    79,032    837    285,626    1,058 

 

*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.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 19 of 23

  

All-in Sustaining Cost for 9M14

 

   Buenaventura1   La Zanja   Tantahuatay   Attributable Production2 
   9M14   9M14   9M14   9M14 
Au Ounces Sold BVN   327,068                
Au Ounces bought from La Zanja   -108,503                
Au Ounces Sold Net   218,565    107,860    102,308    316,816 

 

   9M14   9M14   9M14   9M14 
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   267,406    1,223    60,800    564    43,208    422    316,991    1,001 
Exploration in Operating Units   76,474    350    13,202    122    5,023    49    85,493    270 
Royalties   16,515    76    0    0    0    0    16,515    52 
Comercial Deductions4   44,956    206    2,698    25    267    3    46,494    147 
Selling Expenses   5,635    26    1,024    9    778    8    6,490    20 
Administrative Expenses5   40,994    188    3,323    31    1,600    16    43,399    137 
Other Expenses   350    2    8,017    74    3,861    38    6,152    19 
Other Incomes   0    0    -8,448    -78    -4,765    -47    -6,393    -20 
Other administrative charges   0    0    2,115    20    249    2    1,222    4 
Sustaining Capex6   16,138    74    12,532    116    15,270    149    28,910    91 
                                         
By-product Credit   -293,020    -1,341    -6,224    -58    -10,072    -98    -300,361    -948 
                                         
All-in Sustaining Cost   175,448    803    89,039    826    55,418    542    244,912    773 

 

*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.

 

Notes:

1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.

2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.

3. For Buenaventura does not consider purchase of concentrate from La Zanja.

4. For all metals produced.

5. For Buenaventura, does not consider management services charged to subsidiaries.

6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 20 of 23

 

APPENDIX 6

 

Compañía de Minas Buenaventura S.A.A. and Subsidiaries

Consolidated Statement of Financial Position

As of September 30, 2015 and December 31, 2014

 

   2,015   2,014 
   US$(000)   US$(000) 
Assets          
Current assets          
Cash and cash equivalents   115,448    78,512 
Trade and other accounts receivable, net   218,921    281,604 
Income tax credit   48,356    53,746 
Prepaid expenses   9,419    16,954 
Hedge derivative financial instruments   1,579    3,688 
Inventory, net   123,004    150,284 
    516,727    584,788 
Assets classified as held for sale   16,270    18,683 
Total current assets   532,997    603,471 
           
Non-current assets          
Trade and other accounts receivable, net   57,601    26,651 
Long-term inventory   30,133    34,088 
Investment in associates   2,280,926    2,224,381 
Mining concessions, development costs, property, plant and equipment, net   1,712,626    1,715,452 
Investment properties, net   10,809    11,200 
Deferred income tax asset   50,441    47,675 
Intangible assets, net   36,767    4,592 
Other assets, net   4,700    4,764 
Total non-current assets   4,184,003    4,068,803 
           
Total assets   4,717,000    4,672,274 
           
Liabilities and shareholders’ equity          
Current liabilities          
Overdrafts and bank loans   187,178    40,000 
Trade and other accounts payable   224,198    254,000 
Provisions   52,828    67,895 
Current income tax payable   2,609    3,556 
Hedge derivative financial instruments   1,298    - 
Embedded derivatives for concentrate sales, net   2,725    9,072 
Financial obligations   33,227    69,950 
Total current liabilities   504,063    444,473 
           
Liabilities directly associated with assets classified as held for sale   20,760    28,890 
    524,823    473,363 
           
Non-current liabilities          
Financial liability at fair value through profit or loss   23,026    23,026 
Trade and other accounts payable   15,057    15,240 
Provisions   121,289    63,571 
Financial obligations   330,208    313,355 
Deferred income tax liability   11,260    21,594 
Total non-current liabilities   500,840    436,786 
           
Total liabilities   1,025,663    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   162,713    162,710 
Other reserves   269    269 
Retained earnings   2,303,767    2,328,423 
Other equity reserves   61    1,755 
    3,437,758    3,464,105 
Non-controlling interest   253,579    298,020 
Total shareholders’ equity   3,691,337    3,762,125 
           
Total liabilities and shareholders’ equity   4,717,000    4,672,274 

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 21 of 23

  

Compañía de Minas Buenaventura S.A.A. and Subsidiaries

Consolidated Statement of Income

 

   For the three-month period
ended September 30,
   For the nine-month period
ended September 30,
 
   2,015   2,014   2,015   2,014 
   US$(000)   US$(000)   US$(000)   US$(000) 
Continued operations                    
Operating income                    
Net sales   200,116    306,673    691,956    874,363 
Royalty income   8,720    9,532    25,200    24,956 
Total operating income   208,836    316,205    717,156    899,319 
                     
Operating costs                    
Cost of sales, without considering depreciation and amortization   (136,185)   (160,298)   (433,557)   (447,568)
Exploration in operating units   (20,991)   (25,424)   (66,091)   (76,579)
Depreciation and amortization   (61,377)   (55,925)   (179,185)   (151,014)
Mining royalties   (6,886)   (7,369)   (21,963)   (21,810)
Total operating costs   (225,439)   (249,016)   (700,796)   (696,971)
                     
Gross profit (loss)   (16,603)   67,189    16,360    202,348 
                     
Operating expenses, net                    
Administrative expenses   (20,432)   (22,975)   (60,779)   (72,659)
Exploration in non-operating areas   (5,259)   (7,180)   (25,660)   (32,375)
Selling expenses   (4,707)   (4,332)   (12,815)   (12,921)
Provision for impairment of long-lived assets   -    -    (3,803)   - 
Provision for contingencies   (472)   8,660    (280)   (2,228)
Other, net   (7,218)   (10,188)   (7,696)   (2,240)
Total operating expenses, net   (38,088)   (36,015)   (111,033)   (122,423)
                     
Operating profit (loss)   (54,691)   31,174    (94,673)   79,925 
                     
Other income, net                    
Net share in the results of associates under equity method   13,381    23,553    61,621    39,242 
Financial income   827    552    2,441    4,199 
Financial expenses   (6,951)   (848)   (21,103)   (7,005)
Net loss from currency exchange difference   (3,945)   (4,304)   (7,525)   (5,071)
Income on business combination   -    59,879    -    59,879 
Total other income, net   3,312    78,832    35,434    91,244 
                     
Profit (loss) before income taxes   (51,379)   110,006    (59,239)   171,169 
                     
Current income tax expense   (3,176)   (10,290)   (10,559)   (25,034)
Deferred income tax income (expense)   17,473    (13,979)   14,490    (17,050)
                     
Profit (loss) from continued operations   (37,082)   85,737    (55,308)   129,085 
                     
Discontinued operations                    
Loss from discontinued operations   (1,924)   (5,138)   (4,940)   (26,284)
Net profit (loss)   (39,006)   80,599    (60,248)   102,801 
                     
Attributable to:                    
Owners of the parent   (23,229)   78,336    (24,656)   85,312 
Non-controlling interest   (15,777)   2,263    (35,592)   17,489 
    (39,006)   80,599    (60,248)   102,801 
                     
Basic and diluted earnings per share attributable to the owners of the parent, stated in U.S. dollars   (0.09)   0.31    (0.10)   0.34 
                     
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.

Third Quarter and Nine-Month 2015 Results

Page 22 of 23

  

Compañía de Minas Buenaventura S.A.A. and Subsidiaries

Consolidated Statement of Cash Flows

 

  

For the three-month period

ended September 30,

  

For the nine-month period

ended September 30,

 
   2,015   2,014   2,015   2,014 
   US$(000)   US$(000)   US$(000)   US$(000) 
Operating activities                    
Proceeds from sales   239,513    322,657    721,967    856,391 
Value Added Tax (VAT) recovered   21,911    -    74,784    39,685 
Royalties received   7,151    6,125    28,966    22,148 
Dividends received   1,816    2,484    4,775    6,926 
Interest received   700    477    2,497    4,306 
Payments to suppliers and third-parties   (192,714)   (130,995)   (553,471)   (519,735)
Payments to employees   (40,892)   (50,111)   (127,920)   (157,072)
Payment of income tax   (6,125)   (13,449)   (17,387)   (31,393)
Payment of royalties   (5,525)   (5,882)   (17,407)   (16,848)
Payment of interest   (7,684)   80    (17,283)   (5,373)
                     
Net cash and cash equivalents provided by operating activities   18,151    131,386    99,521    199,035 
                     
Investing activities                    
Proceeds from sales of mining concessions, property, plant and equipment   569    79    2,589    169 
Proceeds from collections of loans   141    5,095    141    15,553 
Acquisitions of mining concessions, development costs, property, plant and equipment   (84,895)   (108,027)   (166,527)   (241,983)
Loans granted   (20,800)   -    (20,800)   - 
Proceeds from settlement of investment in shares   -    -    -    80 
Payments for acquisition of shares in subsidiaries, net of acquired cash   -    (80,373)   -    (80,373)
Opening of term deposits   (7,350)   -    (7,350)   - 
Acquisitions of investment properties   -    -    -    (11,705)
Contributions and investments in associates   -    732    -    (900)
                     
Net cash and cash equivalents used in investing activities   (112,335)   (182,494)   (191,947)   (319,159)
                     
Financing activities                    
Increase of bank loans   150,000    38,183    240,000    40,504 
Increase of financial obligations   -    3,119    10,000    186,558 
Repayment of bank loans   (50,000)   -    (90,000)   - 
Payment of financial obligations   (20,784)   (6,179)   (29,870)   (39,772)
Dividends paid   (70)   -    (70)   (2,797)
Dividends paid to non-controlling interest   (2,140)   (2,040)   (8,048)   (6,240)
                     
Net cash and cash equivalents provided by financing activities   77,006    33,083    122,012    178,253 
                     
Net increase (decrease) in cash and cash equivalents during the period   (17,178)   (18,025)   29,586    58,129 
Cash and cash equivalents at the beginning of the period   125,276    138,052    78,512    61,898 
                     
Cash and cash equivalents at the end of the period   108,098    120,027    108,098    120,027 

 

 

Compañía de Minas Buenaventura S.A.A.

Third Quarter and Nine-Month 2015 Results

Page 23 of 23

  

   For the three-month period
ended September 30,
   For the nine-month period
ended September 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   (23,229)   78,336    (24,656)   85,312 
                     
Plus (less):                    
Depreciation and amortization   61,377    55,925    179,185    151,014 
Provision for impairment of inventories   8,928    2,069    13,710    1,234 
Net loss (gain) on sales of mining concessions, property, plant and equipment   10,667    (105)   13,620    (169)
Net loss from currency exchange difference   3,945    4,304    7,525    5,071 
Provision for impairment of long-lived assets   -    -    3,803    - 
Accretion expense of provision for closure of mining units and exploration projects   96    1,088    2,931    2,310 
Provision for interest payable   (1,083)   -    1,659    - 
Allowance for doubtful accounts   254    -    1,101    19 
Provision for employee bonus   -    -    135    1,931 
Net share in the results of associates under equity method   (13,381)   (23,553)   (61,621)   (39,242)
Net profit (loss) attributable to non-controlling interest   (15,777)   2,263    (35,592)   17,489 
Deferred income tax expense (income)   (17,473)   13,979    (14,490)   17,050 
Provision for estimated fair value of embedded derivatives related to concentrate sales and adjustments on open liquidations   (5,752)   13,051    (6,347)   8,951 
Other provisions   316    (518)   431    627 
                     
Net changes in operating assets and liabilities                    
                     
Decrease (increase) in operating assets                    
Trade and other accounts receivable, net   22,496    (9,678)   51,970    (26,580)
Inventory, net   (12,810)   (47)   11,656    27,390 
Income tax credit   5,570    15,300    5,390    9,749 
Prepaid expenses   4,543    2,633    7,242    1,578 
                     
Increase (decrease) in operating liabilities                    
Trade and other accounts payable   (17,892)   (19,312)   (35,210)   (47,242)
Income tax payable   (305)   (2,186)   (947)   (2,140)
Provisions   5,845    (4,647)   (26,749)   (22,243)
                     
Dividends received   1,816    2,484    4,775    6,926 
                     
Net cash and cash equivalents provided by operating activities   18,151    131,386    99,521    199,035 

 

 

 

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Compañía de Minas Buenaventura S.A.A.

 

/s/ CARLOS E. GALVEZ PINILLOS

 

Carlos E. Gálvez Pinillos

 

Chief Financial Officer

  

Date: October 30, 2015

 

 

 

 

 

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