FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Report of Foreign Issuer

 

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

 

Securities Exchange Act of 1934

 

For the month of April 2016

 

BUENAVENTURA MINING COMPANY INC.

 

(Translation of Registrant's Name into English)

 

 

CARLOS VILLARAN 790

 

SANTA CATALINA, LIMA 13, PERU

 

(Address of Principal Executive Offices)

 

 

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

 

Form 20-F X Form 40-F ___

 

 

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

 

Yes ___ No X

 

 

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

 

 

 

               
 

Buenaventura Announces First Quarter 2016 Results

 

Lima, Peru, April 28, 2016 – Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, announced today results for the first quarter (“1Q16”) period ended March 31, 2016. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non GAAP basis and are stated in U.S. dollars (US$).

 

First Quarter 2016 Highlights:

 

·      In 1Q16, EBITDA from direct operations was US$60.3 million, a 34% increase compared to US$45.0 million reported in 1Q15. Adjusted EBITDA (including associated companies) increased 21% (US$ 145.1 in 1Q16 compared to the US$ 119.9 in 1Q15).

 

·      All In Sustaining Cost (AISC) decreased 35% in 1Q16 (US$ 728/oz in 1Q16 compared to the US$ 1,126/oz in 1Q15). This significant decline reaffirms the cost reduction efforts in Buenaventura’s direct operations.

 

·      Total attributable production in 1Q16 was 158k gold ounces and 6.0 million silver ounces, compared to 187k gold ounces and 5.5 million silver ounces in 1Q15.

 

·      The Tambomayo project is in-line with budget; and the detail engineering was completed. Civil works’ progress is at 52% with full completion expected for 2Q16. Exploration and development works´ is at 86%. Production ramping up is expected by 4Q16.

 

·       The Environmental Impact Assessment (EIA) of the San Gabriel project is expected to be approved in 4Q16 (the Public Hearing will be held in 2Q16).

 

·      Yanacocha distributed dividends of US$300 million in March 2016 (Buenaventura received its equity share of US$131 million).

 

·      At Cerro Verde, the Concentrator #2 achieved full capacity during 1Q16. In March, the mill rate performance was in excess of 370k tons per day.

 

·      Buenaventura is in the process of raising US$ 275 million in long-term debt, in order to reprofile its current short-term debt. The proceeds are expected to be available in 2Q16; terms and conditions of the loan will be of an investment grade company.

 

Financial Highlights (in millions of US$, except EPS figures) :

 

      1Q16 1Q15 Var%  
    Total Revenues 227.3 239.5 -5%  
    Operating Profit 13.0 -3.7 N.A.  
    EBITDA Direct Operations 60.3 45.0 34%  
    Adjusted EBITDA (Inc Associates) 145.1 119.9 21%  
    Net Income 51.6 17.3 198%  
    EPS* 0.20 0.07 198%  
 

 
(*) as of March 31, 2016 Buenaventura had 254,186,867 outstanding shares.

 

 

 

 

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 2 of 22

 

Operating Revenues  

 

During 1Q16, net sales were US$220.6 million, a 4% decrease compared to the US$230.4 million reported in 1Q15. This was mainly explained by the general decline in all metal prices (except for lead), as well as lower gold, lead and zinc volume sold. Silver volume sold increased 13% partially offsetting the decline in sales.

 

Royalty income decreased 26%, from US$9.1 million in 1Q15 to US$6.7 million reported in 1Q16. This was due to lower revenues at Yanacocha (27% lower QoQ).

 

Operating Highlights 1Q16 1Q15 Var%

Net Sales

(in millions of US$)

220.6 230.4 -4%
Average Realized Gold Price (US$/oz) 1 2 1,205 1,220 -1%
Average Realized Gold Price (US$/oz) inc. Affiliates 3 1,196 1,256 -5%
Average Realized Silver Price (US$/oz) 1 2 14.37 15.34 -6%
Average Realized Lead Price (US$/MT) 1 2 1,782 1,705 5%

Average Realized

Zinc Price (US$/MT) 1 2

1,620 2,061 -21%
Average Realized Copper Price (US$/MT) 1 2 4,427 5,059 -13%

 

 

Volume Sold 1Q16 1Q15 Var%
Gold Oz Direct Operations 1 80,989 93,838 -14%
Gold Oz inc Associated Companies 3 172,119 213,720 -19%
Silver Oz 1 5,314,779 4,714,638 13%
Lead MT 1 6,567 9,368 -30%
Zinc MT 1 12,342 13,535 -9%
Copper MT 1 11,098 3,630 206%

 

(1) Buenaventura’s Direct Operations include 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal
(2) The realized price considers the adjustments of quotational periods
(3) Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.10% of Coimolache and 43.65% of Yanacocha

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 3 of 22

 

Production and Operating Costs  

 

In 1Q16, Buenaventura’s gold equity production from direct operations remained stable, in line with the figure reported in 1Q15 (79,233 ounces in 1Q16 vs. 79,192 ounces in 1Q15). Gold production, including associated companies, in 1Q16 was 157,955 ounces, 16% lower than the figure reported for the same period of 2015 (187,468 ounces), explained by a decrease in production from Yanacocha. Silver equity production from direct operations increased 11%, mainly due to higher production at the Uchucchacua mine and the Mallay mine.

 

Equity Production 1Q16 1Q15 Var%
Gold Oz Direct Operations 1 79,233 79,192 0%
Gold Oz including Associated Companies 157,955 187,468 -16%
Silver Oz Direct Operations 1 5,996,810 5,410,922 11%
Silver Oz including Associated Companies 6,213,680 5,544,704 12%
Lead MT 6,982 7,440 -6%
Zinc MT 10,368 11,345 -9%
Copper MT Direct Operations 1 6,459 2,189 195%
Copper MT including Associated Companies 30,623 11,710 162%

 

Orcopampa’s (100% owned by Buenaventura)

 

Production
    1Q16 1Q15 Var %
Gold Oz 44,135 50,068 -12%
Silver Oz 147,414 112,210 31%
         
Cost Applicable to Sales
    1Q16 1Q15 Var %
Gold US$/Oz 688 744 -8%

 

Gold production at Orcopampa decreased 12% in 1Q16, compared to 1Q15, due to lower grade (Appendix 2).

 

Cost Applicable to Sales (CAS) in 1Q16 decreased 8%. This was mainly explained by:

1. Lower labor costs.
2. Lower contractor costs, due to better mining unit prices, as a result of contract renegotiations.
3. A decrease in reagents’ consumption and price.

 

Gold production guidance for 2016 is 200k – 210k ounces.

 

 

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 56.29% of El Brocal and 40.10% of Coimolache.

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 4 of 22

 

Uchucchacua (100% owned by Buenaventura)

 

Production
    1Q16 1Q15 Var %
Silver Oz 4,161,975 3,529,174 18%
Zinc MT 1,725 1,586 9%
Lead MT 2,506 2,059 22%
         
Cost Applicable to Sales
    1Q16 1Q15 Var %
Silver US$/Oz 10.58 15.47 -32%

 

Silver production during 1Q16 increased 18% compared to 1Q15, due to higher ore treated and higher ore grade (Appendix 2).

 

Cost Applicable to Sales (CAS) in 1Q16 decreased 32% (US$ 10.58/oz of silver in 1Q16 compared to US$ 15.47/oz in 1Q15), mainly explained by:

1. Lower labor costs.
2. A reduction in consumable costs, mainly due to efficiencies achieved in the usage of explosive materials.
3. Lower contractor costs due to better mining and hauling unit prices.

 

Silver production guidance for 2016 is 15.5 million – 16.5 million ounces.

 

Mallay (100% owned by Buenaventura)

 

Production
    1Q16 1Q15 Var %
Silver Oz 408,619 307,254 33%
Zinc MT 2,764 2,179 27%
Lead MT 2,069 1,652 25%
         
Cost Applicable to Sales
    1Q16 1Q15 Var %
Silver US$/Oz 11.93 14.39 -17%

 

Silver production in 1Q16 increased 33% compared to 1Q15, due to higher ore treated (Appendix 2).

 

Cost Applicable to Sales (CAS) in 1Q16 decreased 17% (US$ 11.93/oz of silver in 1Q16 compared to US$ 14.39/oz in 1Q15) due to lower consumable costs, mainly in explosive materials and reagents.

 

Silver production guidance for 2016 is 1.5 million – 1.9 million ounces.

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 5 of 22

 

Julcani (100% owned by Buenaventura)

 

Production
    1Q16 1Q15 Var %
Silver Oz 853,052 816,352 4%
         
Cost Applicable to Sales
    1Q16 1Q15 Var %
Silver US$/Oz 10.66 13.24 -19%

 

Silver production in 1Q16 increased 4% compared to 1Q15 production, due to higher ore treated and higher ore grade (Appendix 2).

 

Cost Applicable to Sales (CAS) in 1Q16 decreased 19% (US$ 10.66/oz of silver in 1Q16 compared to US$ 13.24/oz in 1Q15) explained by lower labor and consumable costs (explosive materials).

 

Silver production guidance for 2016 is 3.0 million – 3.4 million ounces.

 

La Zanja (53.06% owned by Buenaventura)

 

Production
    1Q16 1Q15 Var %
Gold Oz 34,193 30,455 12%
Silver Oz 59,236 95,308 -38%
         
Cost Applicable to Sales
    1Q16 1Q15 Var %
Gold US$/Oz 597 779 -23%

 

Gold production in 1Q16 increased 12% compared to 1Q15, due to higher ore leached.

 

Cost Applicable to Sales (CAS) in 1Q16 decreased 23% (US$ 597/oz of gold in 1Q16 compared to US$ 779/oz in 1Q15) explained by lower labor and reagent costs.

 

Gold production guidance for 2016 is 130k – 140k ounces.

 

Tantahuatay (40.10% owned by Buenaventura)

 

Production
    1Q16 1Q15 Var %
Gold Oz 34,562 30,207 14%
Silver Oz 243,990 160,264 52%
         
Cost Applicable to Sales
    1Q16 1Q15 Var %
Gold US$/Oz 427 650 -34%

 

Gold production in 1Q16 increased 14% compared to 1Q15, due to higher ore grade.

 

Cost Applicable to Sales (CAS) in 1Q16 decreased 34% (US$ 427/oz of gold in 1Q16 compared to US$ 650/oz in 1Q15) due to lower contractor and reagent costs.

 

Gold production guidance for 2016 is 140k – 150k ounces

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 6 of 22

 

El Brocal (56.29% owned by Buenaventura)

 

Production
    1Q16 1Q15 Var %
Copper MT 11,344 3,869 193%
Zinc MT 9,916 14,020 -29%
Silver Oz 526,724 982,254 -46%
         
Cost Applicable to Sales
    1Q16 1Q15 Var %
Copper US$/MT 4,823 5,536 -13%
Zinc US$/MT 1,474 1,506 -2%

 

During 1Q16, copper production increased 193% compared to 1Q15, mainly due to higher ore treated. Moreover, in 1Q16 zinc production decreased 29%, due to lower ore treated and a lower zinc grade.

 

In 1Q16, zinc Cost Applicable to Sales (CAS) remained in line with the figure reported during 1Q15. Additionally, copper Cost Applicable to Sales (CAS) in 1Q16 decreased 13% (US$ 4,823/MT of copper in 1Q16 compared to US$ 5,536/MT in 1Q15), mainly explained by lower contractor costs due to better mining unit prices.

 

Zinc production guidance for 2016 is 60k – 70k MT, while copper production guidance for 2016 is 35k – 45k MT.

 

General and Administrative Expenses  

 

General and administrative expenses in 1Q16 were US$21.4 million, an increase of 4% compared to the US$20.7 million reported in 1Q15.

 

Exploration in Non-Operating Areas  

 

Exploration in non-operating areas during 1Q16 was US$3.5 million compared with the US$10.7 million in 1Q15. During the period, Buenaventura’s main exploration efforts were focused on the Tambomayo project (US$1.8 million) and Marcapunta (US$0.3 million).

 

Share in Associated Companies  

 

During 1Q16, Buenaventura’s share in associated companies was US$28.4 million, compared to the US$36.3 million reported in 1Q15, comprised by:

 

Share in the Result of Associates

(in millions of US$)

1Q16 1Q15 Var %
Cerro Verde 19.0 8.0 138%
Coimolache 5.7 2.1 173%
Yanacocha 3.7 26.2 -86%
Total 28.4 36.3 -22%

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 7 of 22

 

YANACOCHA

 

At Yanacocha (43.65% owned by Buenaventura), during 1Q16, gold production was 180,348 ounces, 27% lower than 1Q15 production (248,055 ounces), due to a lower gold grade.

 

Gold production guidance at Yanacocha for 2016 is 630k – 660k ounces.

 

In 1Q16, Yanacocha reported net income of US$8.5 million compared to the US$37.4 million reported in 1Q15, mainly explained by lower volume sold (179k gold ounces sold in 1Q16 compared to 246k gold ounces sold in 1Q15). Cost Applicable to Sales (CAS) in 1Q16 was US$734/oz, 53% higher than the US$479/oz reported in 1Q15, mainly due to: i) a higher inventory write-down (US$28.0 million in 1Q16 compared to US$4.5 million in 1Q15), and ii) lower volume sold.

 

Capital expenditures at Yanacocha were US$13.7 million in 1Q16, while for 1Q15 it was US$15.2 million.

 

Yanacocha continues to have a strong pipeline of growth projects, this include: Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha Verde (scoping) and Maqui Maqui (exploration).

 

CERRO VERDE

 

At Cerro Verde (19.58% owned by Buenaventura), during 1Q16 copper production was 123,414 MT (24,164 MT attributable to Buenaventura), a 154% increase compared to 1Q15 (48,623 MT and 9,520 MT attributable to Buenaventura).

 

During 1Q16, Cerro Verde reported a net income of US$96.9 million compared to the US$40.7 million reported in 1Q15. This was mainly due to higher volume sold and a lower cash cost (US$ 1.2/lb of copper in 1Q16 compared to US$ 1.9/lb in 1Q15).

 

Capital expenditures at Cerro Verde were US$72.7 million in 1Q16, 84% lower compared to the US$468.9 million reported in 1Q15.

 

Cerro Verde’s plant expansion was completed in-line with schedule and budget (US$4.6 billion), becoming the largest concentration facility in the world. Full capacity operating rates were achieved during 1Q16. In March 2016, the average daily throughput was 373 TPD, higher than the nominal capacity of 360K TPD.

 

Copper production guidance at Cerro Verde for 2016 is 500k MT – 550k MT.

 

COIMOLACHE (Tantahuatay operation)

 

At Coimolache (40.10% owned by Buenaventura), attributable contribution to the net income in 1Q16 was US$ 5.7 million compared to the US$ 2.1 million reported in 1Q15.

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 8 of 22

 

Project Development and Exploration  

 

The Tambomayo Project (100% ownership)

· Production ramp-up is expected to start in 4Q16
· Civil works progress is at 52% (expected to be completed in 2Q16)
· Mechanical and structural installation works at 35% progress (expected to be completed in 3Q16)
· The mill equipment is already mounted on their bases
· CAPEX: US$ 340 M (Total disbursement as of 1Q16 US$192 M)
o Exploration and mine development US$122 M (disbursement as of 1Q16 US$102 M)
o Civil works and Equipment US$218 M (disbursement as of 1Q16 US$90 M)

 

The San Gabriel Project (100% ownership)

· The project has been rescheduled in order to preserve cash flow
· Geomechanical studies were completed in 1Q16
· Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 4Q16 (the Public Hearing will be held in 2Q16)
· Objectives for 1S16:
o Continue the construction of a 450 meters exploration ramp
o Drilling program: 7,000 meters (1,000 as of 1Q16) in order to confirm resources and certainty

 

Buenaventura’s  Cash and Debt Situation  

 

· Currently Buenaventura is in the process of raising a US$ 275 million long-term loan. The proceeds are expected to be available in 2Q16.

 

Proceeds from this new debt will be used for the following:

a. Reprofiling of BVN´s current short-term debt.
b. Partially finance the construction of the Tambomayo Project.

 

· Yanacocha distributed a cash dividend of US$ 300 million

 

BVN received US$ 131 million in March 2016.

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 9 of 22

 

* * *

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 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* 56.29 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.

First Quarter 2016 Results

Page 10 of 22

 

APPENDIX 2

 

    GOLD PRODUCTION
    1Q16 1Q15 %
Mining Unit Operating Results Underground
Orcopampa Ore Milled  DMT 110,588 108,415 2%
  Ore Grade OZ/MT 0.44 0.47 -6%
  Recovery Rate % 96.2% 96.5% 0%
  Ounces Produced* 44,135 50,068 -12%
Mining Unit Operating Results Open Pit
La Zanja Ounces Produced 34,193 30,455 12%
Tantahuatay Ounces Produced 34,562 30,207 14%
* Includes ounces from retreatment of taling dams      
         
    SILVER PRODUCTION
    1Q16 1Q15 %
Mining Unit Operating Results Underground
Uchucchacua Ore Milled  DMT 318,381 282,573 13%
  Ore Grade OZ/MT 15.61 14.89 5%
  Recovery Rate % 83.8% 83.9% 0%
  Ounces Produced 4,161,975 3,529,174 18%
Julcani Ore Milled  DMT 44,983 43,681 3%
  Ore Grade OZ/MT 19.85 19.62 1%
  Recovery Rate % 95.6% 95.3% 0%
  Ounces Produced 853,052 816,352 4%
Mallay Ore Milled  DMT 48,546 36,809 32%
  Ore Grade OZ/MT 8.99 8.75 3%
  Recovery Rate % 93.7% 94.9% -1%
  Ounces Produced 408,619 307,254 33%
Mining Unit Operating Results Open Pit
Colquijirca Ounces Produced 526,724 829,503 -37%
         
    ZINC PRODUCTION
    1Q16 1Q15 %
Mining Unit Operating Results Underground
Uchucchacua Ore Milled  DMT 318,381 282,573 13%
  Ore Grade % 1.13% 1.05% 8%
  Recovery Rate % 47.72% 53.5% -11%
  MT Produced 1,725 1,586 9%
Mallay Ore Milled  DMT 48,546 36,809 32%
  Ore Grade % 6.5% 6.4% 3%
  Recovery Rate % 87.0% 92.7% -6%
  MT Produced 2,764 2,179 27%
Mining Unit Operating Results Open Pit
Colquijirca MT Produced 9,916 14,020 -29%

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 11 of 22

 

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

 

  1Q16 1Q15
Net Income 51,248 10,248
Add / Substract: 9,081 34,773
Provision for income tax, net -6,789 10,427
Share in associated companies by the equity method, net -28,397 -36,274
Interest income -2,347 -644
Interest expense 7,980 5,875
Loss on currency exchange difference -6,379 2,317
Long Term Compensation provision 0 102
Depreciation and Amortization 46,838 48,159
Workers´ participation provision 458 472
Loss from discontinued operations -2,283 4,339
EBITDA Buenaventura Direct Operations 60,329 45,021
EBITDA Yanacocha (43.65%) 25,405 49,729
EBITDA Cerro Verde (19.58%) 48,233 17,705
EBITDA Coimolache (40%) 11,104 7,418
Adjusted EBITDA (including Associated companies) 145,070 119,873

 

Note:

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

 

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

 

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

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 12 of 22

 

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.

First Quarter 2016 Results

Page 13 of 22

 

Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization, to consolidated Cost applicable to sales:

 

    For the 3 months ended Mar 31
    2016   2015
    (in thousands of US$)
Consolidated Cost of sales excluding depreciation and
amortization 		  117,467   139,693
Add:        
Consolidated Exploration in units in operation   19,116   22,400
Consolidated Commercial deductions   54,341   36,485
Consolidated Selling expenses 4,773 4,153
Consolidated Cost applicable to sales   195,697   202,731

 

Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization

(by mine and mineral) to consolidated Cost of sales:

 

    For the 3 months ended Mar 31
    2016   2015
Cost of sales by mine and mineral   (in thousands of US$)
Julcani, Gold   0   11
Julcani, Silver   4,005   4,449
Julcani, Lead   387   467
Julcani, Copper   30   62
Mallay, Gold   117   0
Mallay, Silver   2,088   2,071
Mallay, Lead   1,301   1,166
Mallay, Zinc   1,508   1,652
Orcopampa, Gold   21,769   33,508
Orcopampa, Silver   1,083   1,037
Orcopampa, Copper   6   0
Uchucchacua, Gold   17   0
Uchucchacua, Silver   22,376   27,879
Uchucchacua, Lead   1,368   1,475
Uchucchacua, Zinc   915   902
La Zanja, Gold   19,679   24,668
La Zanja, Silver   491   1,105
El Brocal, Gold   1,978   435
El Brocal, Silver   2,725   5,946
El Brocal, Lead   2,150   4,752
El Brocal, Zinc   7,026   10,427
El Brocal, Copper   24,339   8,218
Non Mining Units   2,106   9,463
Consolidated Cost of sales, excluding depreciation and amortization   117,467   139,693

  

Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units:

 

    For the 3 months ended Mar 31
    2016   2015
Exploration expenses in units in operation by mine and mineral (in thousands of US$)
Julcani, Gold   0   5
Julcani, Silver   2,211   2,175
Julcani, Lead   213   228
Julcani, Copper   16   30
Mallay, Gold   41   0
Mallay, Silver   728   676
Mallay, Lead   453   381
Mallay, Zinc   526   540
Orcopampa, Gold   8,188   11,518
Orcopampa, Silver   407   356
Orcopampa, Copper   2   0
Uchucchacua, Gold   4   0
Uchucchacua, Silver   5,735   5,968
Uchucchacua, Lead   351   316
Uchucchacua, Zinc   235   193
La Zanja, Gold   4   13
La Zanja, Silver   0   1
El Brocal, Gold   0   0
El Brocal, Silver   0   0
El Brocal, Lead   0   0
El Brocal, Zinc   0   0
El Brocal, Copper   0   0
Non Mining Units   0   0
Consolidated Exploration expenses in units in operation 19,116   22,400

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 14 of 22

 

Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) to consolidated Commercial deductions:

 

    For the 3 months ended Mar 31
    2016   2015
Commercial Deductions in units in operation by mine and mineral   (in thousands of US$)
Julcani, Gold   0   2
Julcani, Silver   1,435   1,328
Julcani, Lead   135   127
Julcani, Copper   12   18
Mallay, Gold   44   0
Mallay, Silver   1,110   880
Mallay, Lead   681   506
Mallay, Zinc   1,369   858
Orcopampa, Gold   101   56
Orcopampa, Silver   16   0
Orcopampa, Copper   1   0
Uchucchacua, Gold   6   0
Uchucchacua, Silver   9,256   7,963
Uchucchacua, Lead   568   426
Uchucchacua, Zinc   1,312   890
La Zanja, Gold   58   24
La Zanja, Silver   1   0
El Brocal, Gold   2,194   537
El Brocal, Silver   2,027   3,585
El Brocal, Lead   1,055   2,193
El Brocal, Zinc   5,355   5,805
El Brocal, Copper   27,605   11,287
Non Mining Units   0   0
Consolidated Commercial deductions in units in operation   54,341   36,485

 

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

Selling expenses:

 

    For the 3 months ended Mar 31
    2016   2015
Selling expenses by mine and mineral   (in thousands of US$)
Julcani, Gold   0   1
Julcani, Silver   178   239
Julcani, Lead   17   25
Julcani, Copper   1   3
Mallay, Gold   9   0
Mallay, Silver   161   139
Mallay, Lead   100   78
Mallay, Zinc   116   111
Orcopampa, Gold   159   250
Orcopampa, Silver   8   8
Orcopampa, Copper   0   0
Uchucchacua, Gold   1   0
Uchucchacua, Silver   809   814
Uchucchacua, Lead   49   43
Uchucchacua, Zinc   33   26
La Zanja, Gold   217   302
La Zanja, Silver   5   14
El Brocal, Gold   120   26
El Brocal, Silver   165   351
El Brocal, Lead   130   280
El Brocal, Zinc   425   615
El Brocal, Copper   1,472   485
Non Mining Units   598   345
Consolidated Selling expenses   4,773   4,153

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 15 of 22

 

  JULCANI
  1Q 2016 1Q 2015
  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) -0 4,005 387 - 30 4,421 11 4,449 467 - 62 4,989
Add:                        
Exploration Expenses (US$000) -0 2,211 213 - 16 2,440 5 2,175 228 - 30 2,439
Commercial Deductions (US$000) -0 1,435 135 - 12 1,581 2 1,328 127 - 18 1,475
Selling Expenses (US$000) -0 178 17 - 1 197 1 239 25 - 3 268
Cost Applicable to Sales (US$000) -1 7,829 753 - 59 8,640 19 8,191 847 - 114 9,171
Divide:                        
Volume Sold -1 734,224 578 - 19 Not Applicable 15 618,774 473 - 19 Not Applicable
CAS - 10.66 1,301 - 3,154 Not Applicable 1,256 13.24 1,791 - 6,011 Not Applicable

 

  MALLAY
  1Q 2016 1Q 2015
  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) 117 2,088 1,301 1,508 - 5,015 - 2,071 1,166 1,652 - 4,889
Add:                        
Exploration Expenses (US$000) 41 728 453 526 - 1,748 - 676 381 540 - 1,597
Commercial Deductions (US$000) 44 1,110 681 1,369 - 3,205 - 880 506 858 - 2,244
Selling Expenses (US$000) 9 161 100 116 - 386 - 139 78 111 - 328
Cost Applicable to Sales (US$000) 212 4,087 2,536 3,520 - 10,354 - 3,766 2,131 3,161 - 9,058
Divide:                        
Volume Sold 240 342,590 1,799 2,295 - Not Applicable - 261,818 1,457 1,636 - Not Applicable
CAS 883 11.93 1,409 1,534 - Not Applicable - 14.39 1,463 1,932 - Not Applicable

 

  ORCOPAMPA
  1Q 2016 1Q 2015
  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) 21,769 1,083 - - 6 22,858 33,508 1,037 - - - 34,545
Add:         -              
Exploration Expenses (US$000) 8,188 407 - - 2 8,598 11,518 356 - - - 11,874
Commercial Deductions (US$000) 101 16 - - 1 118 56 0 - - - 56
Selling Expenses (US$000) 159 8 - - 0 167 250 8 - - - 258
Cost Applicable to Sales (US$000) 30,217 1,515 - - 10 31,742 45,332 1,401 - - - 46,733
Divide:                        
Volume Sold 43,951 186,208 - - 3 Not Applicable 60,910 145,389 - - - Not Applicable
CAS 688 8.13 - - 3,102 Not Applicable 744 9.64 - - - Not Applicable

 

  UCHUCCHACUA
  1Q 2016 1Q 2015
  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) 17 22,376 1,368 915 - 24,676 - 27,879 1,475 902 - 30,256
Add:                        
Exploration Expenses (US$000) 4 5,735 351 235 - 6,325 - 5,968 316 193 - 6,476
Commercial Deductions (US$000) 6 9,256 568 1,312 - 11,142 - 7,963 426 890 - 9,279
Selling Expenses (US$000) 1 809 49 33 - 892 - 814 43 26 - 883
Cost Applicable to Sales (US$000) 28 38,176 2,336 2,495 - 43,035 - 42,623 2,259 2,012 - 46,895
Divide:                        
Volume Sold 34 3,608,021 1,791 1,361 - Not Applicable - 2,754,699 1,463 714 - Not Applicable
CAS 826 10.58 1,304 1,834 - No Applicable - 15.47 1,544 2,819 - No Applicable

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 16 of 22

 

  LA ZANJA
  1Q 2016 1Q 2015
  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) 19,679 491 - - - 20,171 24,668 1,105 - - - 25,773
Add:                        
Exploration Expenses (US$000) 4 0 - - - 4 13 1 - - - 13
Commercial Deductions (US$000) 58 1 - - - 58 24 - - - - 24
Selling Expenses (US$000) 217 5 - - - 222 302 14 - - - 315
Cost Applicable to Sales (US$000) 19,958 498 - - - 20,456 25,006 1,119 - - - 26,126
Divide:                        
Volume Sold 33,432 68,787 - - - Not Applicable 32,081 107,924 - - - Not Applicable
CAS 597 7.23 - - - Not Applicable 779 10.37 - - - Not Applicable

 

  BROCAL
  1Q 2016 1Q 2015
  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) 1,978 2,725 2,150 7,026 24,339 38,219 435 5,946 4,752 10,427 8,218 29,778
Add:                        
Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 2,194 2,027 1,055 5,355 27,605 38,237 537 3,585 2,193 5,805 11,287 23,408
Selling Expenses (US$000) 120 165 130 425 1,472 2,311 26 351 280 615 485 1,756
Cost Applicable to Sales (US$000) 4,292 4,918 3,335 12,806 53,416 78,767 998 9,882 7,225 16,847 19,990 54,942
Divide:                        
Volume Sold 3,333 374,950 2,398 8,687 11,076 Not Applicable 832 826,034 5,976 11,185 3,611 Not Applicable
CAS 1,288 13.12 1,391 1,474 4,823 Not Applicable 1,200 11.96 1,209 1,506 5,536 Not Applicable

 

  NON MINING COMPANIES
  1Q 2016 1Q 2015
  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) - - - - - 2,106 - - - - - 9,463
Add:           -           -
Selling Expenses (US$000) - - - - - 598 - - - - - 345
Total (US$000) - - - - - 2,704 - - - - - 9,808

 

  BUENAVENTURA CONSOLIDATED
  1Q 2016 1Q 2015
  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) 43,560 32,769 5,206 9,450 24,375 117,467 58,622 42,488 7,859 12,981 8,280 139,693
Add:                        
Exploration Expenses (US$000) 8,238 9,081 1,018 760 19 19,116 11,536 9,176 925 733 30 22,400
Commercial Deductions (US$000) 2,403 13,845 2,439 8,035 27,618 54,341 619 13,756 3,252 7,553 11,306 36,485
Selling Expenses (US$000) 505 1,326 297 574 1,473 4,773 578 1,563 427 752 488 4,153
Cost Applicable to Sales (US$000) 54,707 57,022 8,960 18,820 53,485 195,697 71,355 66,983 12,462 22,019 20,104 202,731
Divide:                        
Volume Sold 80,989 5,314,779 6,567 12,342 11,098 Not Applicable 93,838 4,714,638 9,368 13,535 3,630 Not Applicable
CAS 675 10.73 1,364 1,525 4,819 Not Applicable 760 14.21 1,330 1,627 5,538 Not Applicable

 

  COIMOLACHE
  1Q 2016 1Q 2015
  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) 12,418 1,112 - - - 13,529 12,477 949 - - - 13,426
Add:                        
Exploration Expenses (US$000) 1,205 108 - - - 1,313 7,098 540 - - - 7,637
Commercial Deductions (US$000) 130 16 - - - 146 161 13 - - - 173
Selling Expenses (US$000) 242 22 - - - 264 226 17 - - - 243
Cost Applicable to Sales (US$000) 13,995 1,257 - - - 15,252 19,961 1,519 - - - 21,479
Divide:                        
Volume Sold 32,808 238,191 - - - Not Applicable 30,722 169,400 - - - Not Applicable
CAS 427 5.28 - - - Not Applicable 650 8.97 - - - Not Applicable

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 17 of 22

 

APPENDIX 5: ALL-IN SUSTAINING COST

 

    Buenaventura 1     La Zanja     Tantahuatay     Attributable Production 2  
    1Q16     1Q16     1Q16     1Q16  
Au Ounces Sold BVN     77,548                          
Au Ounces bought from La Zanja     -33,324                          
Au Ounces Sold Net     44,224       34,728       32,808       75,805  

 

    1Q16     1Q16     1Q16     1Q16  
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 Sales 3     58,411       1,321       17,006       490       13,529       412       72,859       961  
Exploration in Operating Units     19,112       432       594       17       1,313       40       19,954       263  
Royalties     4,674       106       0       0       0       0       4,674       62  
Comercial Deductions 4     16,046       363       860       25       146       4       16,561       218  
Selling Expenses     1,641       37       222       6       264       8       1,865       25  
Administrative Expenses 5     12,738       288       492       14       555       17       13,222       174  
Other Expenses     0       0       1,890       54       806       25       1,326       17  
Other Incomes     -761       -17       -3,803       -109       -1,111       -34       -3,224       -43  
Administrative charges     0       0       584       17       321       10       438       6  
Sustaining Capex 6     10,941       247       271       8       3,806       116       12,611       166  
                                                                 
By-product Credit     -83,195       -1,881       -898       -26       -3,564       -109       -85,100       -1,123  
                                                                 
All-in Sustaining Cost     39,607       896       17,218       496       16,067       490       55,185       728  

 

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

 

Notes:

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

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

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

4. For all metals produced.

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

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

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 18 of 22

 

    Buenaventura 1     La Zanja     Tantahuatay     Attributable Production 2  
    1Q15     1Q15     1Q15     1Q15  
Au Ounces Sold BVN     100,401                          
Au Ounces bought from La Zanja     -32,081                          
Au Ounces Sold Net     68,320       27,977       30,722       95,482  

 

    1Q15     1Q15     1Q15     1Q15  
Income Statement & Cash Flow   US$ 000'     US$/Oz Au     US$ 000'     US$/Oz Au     US$ 000'     US$/Oz Au     US$ 000'     US$/Oz Au  
                                                 
Cost of Sales 3     84,353       1,235       23,390       836       13,426       437       102,147       1,070  
Exploration in Operating Units     22,457       329       5,710       204       3,900       127       27,050       283  
Royalties     8,176       120       0       0       0       0       8,176       86  
Comercial Deductions 4     13,095       192       694       25       173       6       13,533       142  
Selling Expenses     1,744       26       315       11       243       8       2,009       21  
Administrative Expenses 5     13,429       197       375       13       533       17       13,842       145  
Other Expenses     0       0       2,112       75       4,624       151       2,975       31  
Other Incomes     0       0       -3,786       -135       -1,444       -47       -2,588       -27  
Administrative charges     0       0       1,584       57       445       15       1,019       11  
Sustaining Capex 6     5,411       79       4,130       148       6,373       207       10,157       106  
                                                                 
By-product Credit     -68,922       -1,009       -1,387       -50       -2,889       -94       -70,816       -742  
                                                                 
All-in Sustaining Cost     79,743       1,167       33,137       1,184       25,385       826       107,503       1,126  

 

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

 

Notes:

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

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

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

4. For all metals produced.

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

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

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 19 of 22

 

APPENDIX 6

 

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

Consolidated Statement of Financial Position

As of March 31, 2016 and December 31, 2015

 

    2016     2015  
    US$(000)     US$(000)  
Assets                
Current assets                
Cash and cash equivalents     180,868       78,519  
Trade and other accounts receivable, net     220,709       219,862  
Inventory, net     103,492       101,473  
Income tax credit     37,975       45,919  
Prepaid expenses     12,742       8,231  
Embedded derivatives for concentrate sales, net     1,757       -  
Hedge derivative financial instruments     71       -  
Total current assets     557,614       454,004  
Assets classified as held for sale     12,611       15,592  
      570,225       469,596  
                 
Non-current assets                
Trade and other accounts receivable, net     171,095       162,567  
Inventory, net     25,096       26,029  
Investment in associates     1,938,341       2,043,983  
Mining concessions, development costs, property, plant and equipment, net     1,752,816       1,747,624  
Investment properties, net     10,462       10,719  
Deferred income tax asset, net     49,591       41,574  
Prepaid expenses     31,090       29,235  
Other assets, net     13,843       15,854  
Total non-current assets     3,992,334       4,077,585  
                 
Total assets     4,562,559       4,547,181  
                 
Liabilities and shareholders’ equity                
Current liabilities                
Bank loans     296,975       285,302  
Trade and other accounts payable     220,946       247,114  
Provisions     61,010       49,829  
Income tax payable     1,887       2,444  
Embedded derivatives for concentrate sales, net     -       1,694  
Hedge derivative financial instruments     -       10,643  
Financial obligations     28,753       33,394  
Total current liabilities     609,571       630,420  
                 
Liabilities directly associated with assets classified as held for sale     15,582       20,611  
      625,153       651,031  
                 
Non-current liabilities                
Trade and other accounts payable     16,691       15,057  
Provisions     144,279       141,885  
Financial obligations     317,558       320,316  
Contingent consideration liability     16,994       16,994  
Deferred income tax liability, net     9,572       12,662  
Total non-current liabilities     505,094       506,914  
                 
Total liabilities     1,130,247       1,157,945  
                 
Shareholders’ equity                
Capital stock     750,497       750,497  
Investment shares     1,396       1,396  
Additional paid-in capital     219,055       219,055  
Legal reserve     162,714       162,714  
Other reserves     269       269  
Retained earnings     2,076,457       2,024,895  
Other reserves of equity     (3,657 )     2,240  
Shareholders’ equity, net attributable to owners of the parent     3,206,731       3,161,066  
Non-controlling interest     225,581       228,170  
Total shareholders’ equity     3,432,312       3,389,236  
                 
Total liabilities and shareholders’ equity     4,562,559       4,547,181  

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 20 of 22

 

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

Consolidated Statement of profit or loss

For the three-month periods ended March 31, 2016 and 2015

 

    2016     2015  
    US$(000)     US$(000)  
Continuing operations                
Operating income                
Net sales of goods     215,080       220,600  
Net sales of services     5,568       9,791  
Royalty income     6,685       9,090  
Total operating income     227,333       239,481  
                 
Operating costs                
Cost of sales of goods, excluding depreciation and amortization     (109,214 )     (126,083 )
Cost of services, excluding depreciation and amortization     (8,253 )     (13,610 )
Depreciation and amortization     (46,838 )     (48,159 )
Exploration in operating units     (19,116 )     (22,400 )
Mining royalties     (6,168 )     (8,425 )
Total operating costs     (189,589 )     (218,677 )
                 
Gross profit     37,744       20,804  
                 
Operating expenses, net                
Administrative expenses     (21,411 )     (20,669 )
Exploration in non-operating areas     (3,514 )     (10,697 )
Provision for contingencies     (885 )     250  
Selling expenses     (4,773 )     (4,153 )
Other, net     5,872       10,753  
Total operating expenses, net     (24,711 )     (24,516 )
                 
Operating profit (loss)     13,033       (3,712 )
                 
Other income (expense), net                
Share in results of associates under equity method     28,397       36,274  
Financial costs     (7,980 )     (5,875 )
Net gain (loss) from currency exchange difference     6,379       (2,317 )
Financial income     2,347       644  
Total other income, net     29,143       28,726  
                 
Profit before income tax     42,176       25,014  
Current income tax     (7,003 )     (5,377 )
Deferred income tax     13,792       (5,050 )
                 
Profit from continuing operations     48,965       14,587  
                 
Discontinued operations                
Profit (loss) from discontinued operations     2,283       (4,339 )
Net profit     51,248       10,248  
                 
Attributable to:                
Owners of the parent     51,562       17,319  
Non-controlling interest     (314 )     (7,071 )
      51,248       10,248  
                 
Basic and diluted profit per share attributable to equity holders                
 of the parent, stated in U.S. dollars     0.20       0.07  
                 
Weighted average number of shares outstanding
(common and investment), in units 		    254,186,867       254,186,867  

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 21 of 22

 

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

Consolidated Statements of cash Flows

For the three-month periods ended March 31, 2016 and 2015

 

    2016     2015  
    US$(000)     US$(000)  
Operating activities                
Proceeds from sales     181,821       231,779  
Dividends received     134,015       2,057  
Value Added Tax recovered     53,093       33,367  
Royalties received     7,557       13,444  
Interest received     1,654       942  
Payments to suppliers and third-parties     (168,056 )     (176,835 )
Payments to employees     (35,765 )     (45,328 )
Payments of mining royalties     (4,469 )     (6,198 )
Payments of interest     (3,790 )     (5,470 )
Payment of income taxes     (2,157 )     (4,141 )
                 
Net cash and cash equivalents provided by operating activities     163,903       43,617  
                 
Investing activities                
Proceeds from sales of mining concessions, property, plant and equipment     110       134  
Acquisitions of mining concessions, development costs, property, plant and equipment     (52,028 )     (37,118 )
                 
Net cash and cash equivalents used in investing activities     (51,918 )     (36,984 )
                 
Financing activities                
Increase of bank loans     160,000       88,081  
Payment of bank loans     (160,000 )     (40,000 )
Increase of financial obligations     1,186       10,000  
Payment of financial obligations     (8,584 )     (5,018 )
Acquisition of non-controlling interest     (158 )     -  
Dividends paid to non-controlling interest     (2,080 )     (3,268 )
Increase of restricted current accounts     (4,452 )     (2,953 )
                 
Net cash and cash equivalents provided by (used in) financing activities     (14,088 )     46,842  
                 
Net increase in cash and cash equivalents during the period     97,897       53,475  
Cash and cash equivalents at the beginning of the period     76,588       76,581  
                 
Cash and cash equivalents at period-end     174,485       130,056  

 

 

Compañía de Minas Buenaventura S.A.A.

First Quarter 2016 Results

Page 22 of 22

 

    2016     2015  
    US$(000)     US$(000)  
Reconciliation of net profit to cash and cash equivalents provided  by operating activities                
                 
Net profit attributable to owners of the parent     51,562       17,319  
                 
Plus (less):                
Depreciation and amortization     50,899       54,619  
Provision for employee bonus     5,658       8,175  
Accretion expense of provision for closure of mining units and exploration projects     738       275  
Net share in results of associates under equity method     (28,397 )     (36,274 )
Provision for estimated fair value of embedded derivatives related to concentrate sales and adjustments on open liquidations     (13,021 )     (6,656 )
Deferred income tax expense (income)     (13,792 )     5,050  
Net loss (gain) from currency exchange difference     (6,379 )     2,317  
Provision return for impairment of inventories     (1,782 )     (1,252 )
Net loss attributable to non-controlling interest     (314 )     (7,071 )
Net loss (gain) on sales of mining concessions, property, plant and equipment     (110 )     1,314  
Other net     88       (4,616 )
                 
Net changes in operating assets and liabilities:                
Decrease (increase) in operating assets -                
Trade and other accounts receivable     1,537       18,637  
Inventories     9,799       27,801  
Income tax credit     7,944       1,699  
Prepaid expenses     (6,366 )     1,160  
                 
Increase (decrease) in operating liabilities -                
Trade and other accounts payable     (30,658 )     (34,645 )
Provisions     3,039       (8,653 )
Income tax payable     (557 )     2,361  
                 
Proceeds from dividends     134,015       2,057  
                 
Net cash and cash equivalents provided by operating activities     163,903       43,617  

 

 

 

 

Signature

 

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

 

Compañía de Minas Buenaventura S.A.A.

 

 

/s/ CARLOS E. GALVEZ PINILLOS

 

Carlos E. Gálvez Pinillos

 

Chief Financial Officer

 

 

 

Date: April 29, 2016

 

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