Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or
“the Company”) (NYSE:BVN; Lima Stock Exchange: BUE.LM), Peru’s
largest publicly-traded precious metals mining company, announced
today results for the second quarter (2Q16) and six-month (6M16)
periods ended June 30, 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$).
Second Quarter 2016 Highlights:
- In 2Q16, EBITDA from direct operations
was US$ 109.4 million, a 270% increase compared to US$ 29.6 million
reported in 2Q15. Adjusted EBITDA (including associated companies)
increased 84% (US$ 188.9 million in 2Q16 compared to the US$ 102.4
million in 2Q15).
- All In Sustaining Cost (AISC) decreased
34% in 2Q16 (US$ 610/oz in 2Q16 compared to the US$ 929/oz in
2Q15). This confirms the cost reduction trend, already shown in the
1Q16.
- Total attributable production in 2Q16
was 153k gold ounces and 6.0 million silver ounces, compared to
181k gold ounces and 4.4 million silver ounces in 2Q15.
- The Tambomayo project remains on
schedule and within budget. Total project progress is at 81%.
Production ramp up is expected by 4Q16.
- Buenaventura raised US$ 275 million in
long-term debt. The proceeds were mainly used to reprofile its
current short-term debt (US$ 245 million).
- At San Gabriel the Public Hearing was
successfully held on June 17, as an important step in the process
receiving the Environmental Impact Assessment approval by the end
of the 2016.
Financial Highlights (in millions
of US$, except EPS figures):
2Q16 2Q15
Var% 6M16
6M15 Var% Total
Revenues 285.3 243.9
17% 512.6
483.4
6% Operating
Profit 60.5 -35.5
N.A. 73.6
-39.2
N.A.
EBITDA Direct Operations
109.4 29.6
270% 170.5
74.6
129%
Adjusted EBITDA (Inc
Associates)
188.9 102.4
84% 334.8
236.2
42% Net Income
55.5 -18.7
N.A. 107.0 -1.4
N.A. EPS*
0.22 -0.07
N.A.
0.42 -0.01
N.A.
(*) as of June 30, 2016 Buenaventura had 254,186,867 outstanding
shares.
Operating Revenues
During 2Q16, net sales were US$ 279.4 million, an 18% increase
compared to the US$ 236.6 million reported in 2Q15. This was mainly
explained by an increase in gold and silver prices as well
additional volume sold of all metals.
The higher revenues from our operations partially offset a
royalty income decrease of 21%, to US$ 5.9 million in 2Q16 compared
to the US$ 7.4 reported in 2Q15. This was due to lower revenues at
Yanacocha (19% lower QoQ).
Operating
Highlights 2Q16
2Q15 Var%
6M16 6M15
Var% Net Sales
(in millions of US$)
279.4 236.6
18% 500.1
466.9
7%
Average Realized Gold Price
(US$/oz) 1 2
1,275 1,185
8% 1,242
1,203
3%
Average Realized Gold Price
(US$/oz) inc. Affiliates 3
1,268 1,187
7% 1,232
1,206
2%
Average Realized Silver Price
(US$/oz) 1 2
17.80 16.18
10% 16.14
15.76
2%
Average Realized Lead Price
(US$/MT) 1 2
1,783 1,918
-7% 1,783
1,791
0%
Average RealizedZinc Price
(US$/MT) 1 2
2,112 2,145
-2% 1,894
2,103
-10%
Average Realized Copper Price
(US$/MT) 1 2
4,754 5,150
-8% 4,587
5,124
-10%
Volume
Sold 2Q16
2Q15 Var%
6M16 6M15
Var%
Gold Oz Direct Operations
1
92,752 86,272
8% 173,741
180,109
-4%
Gold Oz inc Associated
Companies 3
174,827 187,074
-7% 346,917
400,767
-13% Silver Oz
1 5,634,615
4,723,560
19%
10,949,395 9,438,198
16% Lead MT 1 7,669
6,309
22%
14,236 15,678
-9% Zinc MT 1
15,484 13,364
16%
27,826 26,899
3% Copper MT 1
10,572 8,831
20% 21,670 12,465
74%
(1) Buenaventura’s Direct Operations includes
100% of Buenaventura’s operating units, 100% of La Zanja and 100%
of El Brocal (2) The realized price considers the adjustments of
quotational periods (3)
Considers 100% of Buenaventura’s operating
units, 100% of La Zanja, 100% of El Brocal, 40.95% of Coimolache
and 43.65% of Yanacocha
For 6M16, net sales increased 7%, from US$ 466.9 million in 6M15
to US$ 500.1 million in 6M16. Royalty income for 6M16 was US$ 12.5
million (US$ 16.5 million in 2015).
Production and Operating Costs
In 2Q16, Buenaventura’s gold equity production from direct
operations was in-line compared to the figure reported in 2Q15
(84,997 gold ounces in 2Q16 vs 86,334 gold ounces in 2Q15). Gold
production including associated companies in 2Q16 was 152,884
ounces, 15% lower than the amount reported in the same period 2015.
This is explained by a decrease in production from Yanacocha.
Silver equity production from direct operations increased 35%,
mainly due to higher production at the Uchucchacua mine and the
Mallay mine (5.7 million silver ounces in 2Q16 vs 4.2 million
silver ounces in 2Q15).
Equity Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Gold Oz Direct
Operations1
84,997 86,334
-2% 164,709
165,526
0%
Gold Oz including Associated
Companies
152,884 180,585
-15% 311,317
368,053
-15% Silver Oz
Direct Operations1 5,737,314
4,238,092
35%
11,734,124 9,649,014
22%
Silver Oz including Associated
Companies
5,976,999 4,363,845
37% 12,190,679
9,908,549
23%
Lead MT 7,065
5,652
25% 14,047
13,092
7% Zinc
MT 12,573 9,660
30% 22,644
21,005
8% Copper MT
Direct Operations1 6,911
5,263
31%
13,370 7,453
79%
Copper MT including Associated
Companies
31,609 14,450
119% 62,233
26,160
138%
Orcopampa’s (100% owned by
Buenaventura)
Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Gold Oz
47,826 51,921
-8%
91,962 101,989
-10% Silver
Oz 166,186 133,401
25% 313,600
245,611
28%
Cost Applicable to Sales
2Q16
2Q15 Var%
6M16 6M15
Var% Gold US$/Oz
704 694
1% 696 696
0%
Gold production at Orcopampa decreased 8% in 2Q16 (compared to
2Q15) mainly due to lower ore grade (Appendix 2). Cost Applicable
to Sales (CAS) in 2Q16 was US$ 704/oz of gold, in line with the
Cost Applicable to Sales (CAS) reported in 2Q15.
Gold production guidance for 2016 is 190k – 200k ounces.
1 Direct Operation production includes 100% of
Buenaventura’s operating units, 53.06% of La Zanja, 59.6% of El
Brocal (since May 2016) and 40.10% of Coimolache.
Uchucchacua (100% owned by
Buenaventura)
Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Silver Oz
3,921,199 2,497,189
57% 8,083,174
6,026,362
34% Zinc
MT 1,890
1,212
56% 3,615
2,798
29%
Lead MT
2,591 1,470
76%
5,097 3,529
44%
Cost Applicable to Sales
2Q16 2Q15
Var% 6M16
6M15 Var%
Silver US$/Oz
11.11 15.67
-29% 10.75 15.04
-29%
Silver production in 2Q16 increased 57% compared to 2Q15, due to
higher volumes of ore treated (29-day stoppage in May 2015) and
higher ore grade (Appendix 2). Cost Applicable to Sales (CAS) in
2Q16 decreased 29% compared to 2Q15, primarily due to lower labor
expenses resulting from a reduced headcount and lower reagent cost
and consumption.
Silver production guidance for 2016 is 15.5 million – 16.5
million ounces.
Mallay (100% owned by
Buenaventura)
Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Silver Oz
431,346 297,777
45% 839,964
605,031
39% Zinc
MT 2,632
2,141
23% 5,396
4,320
25%
Lead MT
1,873 1,776
5%
3,942 3,428
15%
Cost Applicable to
Sales
2Q16 2Q15
Var% 6M16
6M15 Var% Silver
US$/Oz 12.57
13.58
-7%
12.27 13.94
-12%
Silver production in 2Q16 increased 45% compared to 2Q15, due to
increased amounts of ore treated (Appendix 2). Cost Applicable to
Sales (CAS) in 2Q16 was 7% lower compared to 2Q15 due to more
volume sold, lower reagent cost and consumption.
Silver production guidance for 2016 is 1.5 million – 1.9 million
ounces.
Julcani (100% owned by
Buenaventura)
Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Silver Oz
837,937 786,628
7%
1,690,989 1,602,980
5%
Cost
Applicable to Sales
2Q16 2Q15
Var% 6M16
6M15 Var%
Silver US$/Oz
11.40 12.29
-7% 11.05 12.62
-12%
Silver production in 2Q16 increased 7% compared to 2Q15
production, mainly due to a higher ore grade (Appendix 2). Cost
Applicable to Sales (CAS) in 2Q16 was 7% lower than 2Q15, primarily
due to fewer meters drifted and lower reagents cost and
consumption, despite lower volume sold.
Silver production guidance for 2016 is 3.0 million – 3.4 million
ounces.
La Zanja (53.06% owned by
Buenaventura)
Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Gold Oz
35,384 37,254
-5%
69,577 67,709
3% Silver
Oz 49,468 67,817
-27% 108,703
163,125
-33%
Cost Applicable to Sales
2Q16
2Q15 Var%
6M16 6M15
Var% Gold US$/Oz
533 822
-35% 535 803
-33%
Gold production in 2Q16 decreased 5% compared to 2Q15. CAS in
2Q16 decreased 35% compared to 2Q15, primarily due to i) lower
headcount generated by new synergies with Tantahuatay mine, ii)
lower reagent prices and consumption, and iii) lower contractor
expenses due to better prices.
Gold production guidance for 2016 is 130k – 140k ounces.
Tantahuatay (40.10% owned by
Buenaventura)
Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Gold Oz
36,733 32,139
14%
71,295 62,346
14% Silver
Oz 180,578 178,695
1% 424,568
338,959
25%
Cost Applicable to Sales
2Q16
2Q15 Var%
6M16 6M15
Var% Gold US$/Oz
469 497
-6% 449 575
-22%
Gold production in 2Q16 increased 14% compared to the figure
reported in 2Q15. CAS in 2Q16 decreased 6% compared to 2Q15 mainly
due to lower reagent consumption and prices.
Gold production guidance for 2016 is 145k – 155k ounces.
El Brocal (59.26%* owned by
Buenaventura)
Production
2Q16 2Q15
Var% 6M16
6M15 Var%
Copper MT
11,677 9,580
22%
23,020 13,450
71% Zinc MT
13,725 11,664
18% 23,641
25,683
-8% Silver
Oz 480,818
768,385
-37%
1,007,541 1,750,639
-42%
Cost Applicable to
Sales
2Q16 2Q15
Var% 6M16
6M15 Var% Copper
US$/MT 4,815
5,297
-9%
4,808 5,366
-10% Zinc US$/MT
1,688 1,659
2% 1,610 1,578
2%
During 2Q16, Copper production increased 22% compared to 2Q15,
due to a higher ore volume treated and ore grade. Moreover, in 2Q16
zinc production increased 18% due to higher ore treated and
recovery rate.
(*) Since May 2016, the new ownership of El Brocal is
59.26%.
In 2Q16, Zinc CAS was in line with the Cost Applicable to Sales
(CAS) reported in 2Q15. Copper CAS in 2Q16 decreased 9% compared to
2Q15 mainly due lower commercial deductions per ton due the
renegotiation of the commercial contracts.
Zinc production guidance for 2016 is 60k – 70k MT, while copper
production guidance for 2016 is 35k – 45k MT.
General and Administrative Expenses
General and administrative expenses in 2Q16 were US$ 19.8
million, 8% higher compared to the US$ 18.3 million in 2Q15. For
6M16, the expense was US$ 41.2 million (US$ 39.0 million in
6M15).
Exploration in Non-Operating Areas
Exploration in non-operating areas during 2Q16 was US$ 5.0
million compared with the US$ 9.7 million in 2Q15. During the
period, Buenaventura’s main exploration efforts were focused on the
Tambomayo project (US$ 1.71 million), San Gabriel project (US$ 0.96
million) and Marcapunta (US$ 0.88 million). For 6M16, the expense
was US$ 8.5 million (US$ 20.4 million in 6M15).
Share in Associated Companies
During 2Q16, Buenaventura’s share in associated companies was
US$ 20.7 million, compared to US$ 12.0 million reported in 2Q15,
composed by:
Share in the Result of
Associates
(in millions of US$)
2Q16 2Q15
Var % 6M16
6M15 Var %
Cerro Verde 15.8 (0.2)
N.A. 34.8
7.8
347% Coimolache
6.4 3.9
64% 12.1
6.0
103% Yanacocha
(1.5) 8.3
N.A.
2.2 34.5
-94% Total 20.7
12.0 73%
49.1 48.2
2%
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), during 2Q16, gold
production was 155,524 ounces, 28% lower than 2Q15 production
(215,924 ounces). For 6M16, gold production was 335,872 ounces, 28%
lower than 463,979 ounces in 6M15.
Gold production guidance at Yanacocha for 2016 is 630k – 660k
ounces.
In 2Q16, Yanacocha reported a net loss of US$ 3.5 million
compared to a net income of US$ 18.9 million reported in 2Q15. CAS
in 2Q16 was US$ 790/oz, 22% higher than the US$ 648/oz reported in
2Q15 mainly due to: i) a higher inventory write-down (US$ 26.0
million in 2Q16 compared to US$ 17.9 million in 2Q15), and ii)
lower volume sold (154,486 gold ounces in 2Q16 vs 203,413 gold
ounces in 2Q15).
Capital expenditures at Yanacocha were US$ 22.3 million in 2Q16,
while for 6M16 was US$ 36.0 million.
Currently, Yanacocha is focusing its exploration efforts on the
Quecher Main project. An oxide deposit that could extend Yanacocha
operation mine life to 2024. This project is currently in the
feasibility stage of development and could potentially add an
average of 200,000 ounces gold per year starting in 2020.
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), during 2Q16
copper production was 126,143 MT (24,699 MT attributable to
Buenaventura), a 169% increase compared to 2Q15 (46,920 MT and
9,187 MT attributable to Buenaventura). For 6M16, copper production
was 249,557 MT (48,863 MT attributable to Buenaventura).
During 2Q16, Cerro Verde reported a net income of US$ 80.8
million compared to net loss of US$ 0.9 million in 2Q15. This was
primarily due to: i) a lower cash cost, and ii) more volume sold.
For 6M16, net income was US$ 177.7 million (compared to US$ 39.8
million in 6M15).
Capital expenditures at Cerro Verde were US$ 143.3 million in
2Q16, and US$ 306.3 million in 6M16.
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 net income in 2Q16 was US$ 6.4 million (US$ 3.9
million in 2Q15). For 6M16, the contribution was US$ 12.1 million,
compared to US$ 6.0 million reported in 6M15.
Project Development and Exploration
The Tambomayo Project (100% ownership)
- Detailed engineering currently at 100%
of development.
- Overall project progress is at 81% (As
of July 2016)
- Exploration and mine development are at
100% of progress.
- The construction of the facilities are
at 70% of progress.
- CAPEX: US$ 340 M (Total disbursement as
of 2Q16 US$ 232 M):
- Exploration and mine development US$
122 M (Disbursement as of 2Q16 US$ 122 M).
- Civil works and Equipment US$ 218 M
(Disbursement as of 2Q16 US$ 110 M).
The San Gabriel Project (100% ownership)
- The project has been rescheduled in
order to preserve cash flow.
- Environmental Impact Assessment (EIA)
of the project´s construction is expected to be approved in 4Q16
(the Public Audience was successfully held in June).
- Objective for 2S16:
- Drilling program: 7,000 meters in order
to confirm resources and certainty
- Metallurgical studies to be completed
in order to improve recovery in the first years of production
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 2015 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.
APPENDIX 1
Equity Participation in
Subsidiaries and Associates (as of June
30, 2016)
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* 59.26
Colquijirca and Marcapunta Compañía Minera
Coimolache S.A ** 40.10
Tantahuatay Minera Yanacocha S.R.L ** 43.65
Yanacocha Sociedad Minera Cerro Verde S.A.A **
19.58 Cerro Verde
Processadora Industrial Rio Seco S.A* 100.00
Rio Seco chemical plant Consorcio Energético
de Huancavelica S.A* 100.00
Energy – Huanza Hydroelectrical plant Buenaventura
Ingenieros S.A* 100.00
Engineering Consultant
(*) Consolidates
(**) Equity Accounting
APPENDIX 2
GOLD
PRODUCTION
2Q16 2Q15
% 6M16
6M15 % Mining Unit
Operating Results
Underground Orcopampa Ore Milled DMT 118,341
114,421
3%
228,930 222,836
3%
Ore Grade OZ/MT 0.42 0.47
-9% 0.43 0.47
-8% Recovery Rate % 94.9%
95.6%
-1%
95.5% 96.0%
-1%
Ounces Produced*
47,826 51,921
-8%
91,962 101,989
-10% Mining Unit
Operating Results Open Pit La
Zanja Ounces Produced
35,384 37,254 -5%
69,577 67,709
3% Tantahuatay Ounces Produced
36,733 32,139
14% 71,295 62,346
14% * Includes ounces
from retreatment of taling dams
SILVER PRODUCTION
2Q16
2Q15 %
6M16 6M15
% Mining Unit Operating
Results Underground Uchucchacua Ore
Milled DMT 304,241 209,949
45% 622,623
492,522
26% Ore Grade OZ/MT 15.37 14.16
9% 15.49 14.58
6% Recovery Rate % 83.9% 84.0%
0% 83.8% 83.9%
0% Ounces
Produced 3,921,199
2,497,189
57%
8,083,174 6,026,362
34% Julcani Ore Milled DMT 43,796 44,306
-1% 88,778
87,988
1% Ore Grade OZ/MT 19.97 18.67
7% 19.91 19.14
4% Recovery Rate % 95.8% 95.1%
1% 95.7% 95.2%
1% Ounces Produced
837,937 786,628
7% 1,690,989
1,602,980
5% Mallay Ore Milled DMT
52,413 36,615
43% 100,959 73,424
38% Ore Grade OZ/MT
8.95 8.66
3% 8.97 8.71
3% Recovery Rate % 92.0% 93.9%
-2% 92.8% 94.6%
-2%
Ounces Produced 431,346
297,777
45%
839,964 605,031
39% Mining Unit Operating
Results Open Pit Colquijirca
Ounces Produced 480,818
768,385
-37%
1,007,541 1,750,639
-42%
ZINC PRODUCTION
2Q16
2Q15 %
6M16 6M15
% Mining Unit Operating
Results Underground Uchucchacua Ore
Milled DMT 304,241 209,949
45% 622,623
492,522
26% Ore Grade % 1.17% 1.08%
8% 1.15% 1.07%
8% Recovery Rate % 52.88% 52.6%
1% 50.2% 53.1%
-5% MT
Produced 1,890 1,212
56% 3,615
2,798
29% Mallay Ore
Milled DMT 52,413 36,615
43% 100,959 73,424
38% Ore
Grade % 5.7% 6.9%
-17% 6.10% 6.63%
-8% Recovery Rate
% 88.2% 84.9%
4% 87.6% 88.8%
-1%
MT Produced 2,632
2,141
23% 5,396
4,320
25%
Mining Unit Operating Results
Open Pit Colquijirca
MT Produced 13,725
11,664
18% 23,641
25,683
-8%
APPENDIX 3: EBITDA Reconciliation (in
thousand US$)
2Q16 2Q15
6M16
6M15 Net Income
58,473 -31,490
109,721 -21,242
Add /
Substract:
50,921 61,060
60,820
95,833 Provision for income tax, net
14,197 -64
7,408 10,363
Share in associated companies by theequity
method, net
-20,675
-11,966 -49,072
-48,240 Interest income
-1,965 -970
-4,312 -1,614
Interest expense 7,694
8,269
15,674 14,144 Loss on currency exchange
difference 891
1,264 -5,488
3,581 Long Term Compensation provision
590
33 590
135 Depreciation and Amortization
45,842 61,355
92,680
109,514 Workers´ participation provision
2,418 -89
3,694 383
Impairment of long-term lived assets
0 3,803
0 3,803 Write-Down
adjustment 0
0 0
0 Loss from discontinued operations
1,929 -575
-354 3,764
EBITDA Buenaventura Direct Operations
109,394
29,570 170,541
74,591 EBITDA Yanacocha (43.65%)
20,221
48,931 45,625
112,515
EBITDA Cerro Verde (19.58%)
46,315
15,153 94,548
32,858
EBITDA Coimolache (40.10%)
12,935
8,775 24,055
16,205
EBITDA Buenaventura + All
Associates
188,865 102,430
334,770
236,169
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings
before net interest, taxes, depreciation and amortization, share in
associated companies, net, loss on currency exchange difference,
other, net, provision for workers’ profit sharing and provision for
long-term officers’ compensation.
EBITDA (including associated companies) consists of EBITDA
(Buenaventura Direct Operations), plus (1) Buenaventura’s equity
share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of
EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of
EBITDA (Coimolache). All EBITDA mentioned were similarly calculated
using financial information provided to Buenaventura by the
associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations)
and EBITDA (including affiliates) to provide further information
with respect to its operating performance and the operating
performance of its equity investees, the affiliates. EBITDA
(Buenaventura Direct Operations) and EBITDA (including affiliates)
are not a measure of financial performance under IFRS, and may not
be comparable to similarly titled measures of other companies. You
should not consider EBITDA (Buenaventura Direct Operations) and
EBITDA (including affiliates) as alternatives to operating income
or net income determined in accordance with IFRS, as an indicator
of Buenaventura’s, affiliates operating performance, or as an
alternative to cash flows from operating activities, determined in
accordance with IFRS, as an indicator of cash flows or as a measure
of liquidity.
APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION
Reconciliation of Costs Applicable to Sales and Cost
Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding
depreciation and amortization, plus selling expenses. Cost
applicable to sales per unit sold for each mine consists of cost
applicable to sales for a particular metal produced at a given mine
divided by the volume of such metal produced at such mine in the
specified period. We note that cost applicable to sales is not
directly comparable to the cash operating cost figures disclosed in
previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit
of mineral sold are not measures of financial performance under
IFRS, and may not be comparable to similarly titled measures of
other companies. We consider Cost applicable to sales and Cost
applicable to sales per unit of mineral sold to be key measures in
managing and evaluating our operating performance. These measures
are widely reported in the precious metals industry as a benchmark
for performance, but do not have standardized meanings. You should
not consider Cost applicable to sales or Cost applicable to sales
per unit of mineral sold as alternatives to cost of sales
determined in accordance with IFRS, as indicators of our operating
performance. Cost applicable to sales and Cost applicable to sales
per unit of mineral sold are calculated without adjusting for
by-product revenue amounts.
The tables below set forth (i) a reconciliation of consolidated
Cost of sales, excluding depreciation and amortization to
consolidated Cost applicable to sales, (ii) reconciliations of the
components of Cost applicable to sales (by mine and mineral) to the
corresponding consolidated line items set forth on our consolidated
statements of profit or loss for the three and six months ended
June 30, 2014 and 2015, and (iii) reconciliations of Cost of sales,
excluding depreciation and amortization to Cost applicable to sales
for each of our mining units. The amounts set forth in Cost
applicable to sales and Cost applicable to sales per unit sold for
each mine and mineral indicated in the tables below can be
reconciled to the amounts set forth on our consolidated statements
of profit or loss for the three and six months ended June 30, 2014
and 2015 by reference to the reconciliations of Cost of sales,
excluding depreciation and amortization (by mine and mineral),
Selling Expenses (by mine and metal) expenses and Exploration in
units in operations (by mine and mineral) to consolidated Cost of
sales, excluding depreciation and amortization, consolidated
Selling Expenses and consolidated Exploration in units in
operations expenses, respectively, set forth below.
Set forth below is a reconciliation of
consolidated Cost of sales, excluding depreciation and
amortization, to consolidated Cost applicable to sales:
For the 3 months ended June 30
For the 6 months ended June 30
2016 2015 2016 2015
(in thousands of US$) Consolidated Cost of sales excluding
depreciation and amortization 126,383 147,515 241,793 281,307
Add: Consolidated Exploration in units in operation 22,105
22,618 41,221 45,018 Consolidated Commercial deductions 59,375
53,568 113,717 90,054 Consolidated Selling expenses 5,342 3,893
10,115 8,046
Consolidated Cost applicable to sales
213,205 227,594 406,846 424,425
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
For the 6 months ended June 30
2016 2015 2016 2015
Cost of sales by
mine and mineral
(in thousands of US$) Julcani, Gold 5 23 5 34 Julcani,
Silver 5,077 8,214 9,082 12,688 Julcani, Lead 498 693 885 1,139
Julcani, Copper 21 88 49 147 Mallay, Gold 245 0 364 0 Mallay,
Silver 2,577 1,788 4,668 3,834 Mallay, Lead 1,230 1,351 2,525 2,537
Mallay, Zinc 1,872 1,683 3,381 3,340 Orcopampa, Gold 20,761 23,330
42,532 54,022 Orcopampa, Silver 959 872 2,040 1,822 Orcopampa,
Copper 0 0 6 6 Uchucchacua, Gold 31 2 48 2 Uchucchacua, Silver
24,885 25,055 46,443 50,203 Uchucchacua, Lead 1,363 1,584 2,670
2,903 Uchucchacua, Zinc 1,047 2,269 1,931 3,018 La Zanja, Gold
24,049 29,630 41,767 54,315 La Zanja, Silver 398 740 834 1,864 El
Brocal, Gold 1,805 877 3,769 1,310 El Brocal, Silver 2,429 3,834
5,131 9,810 El Brocal, Lead 2,262 2,080 4,419 6,863 El Brocal, Zinc
10,684 9,608 17,974 20,063 El Brocal, Copper 21,485 20,750 45,595
28,881 Non Mining Units 2,702 13,043 5,676 22,504
Consolidated Cost of sales, excluding
depreciation and amortization
126,383 147,515 241,793 281,307
Set forth below is a reconciliation of
Exploration expenses in units in operation (by mine and mineral) to
consolidated Exploration expenses in mining units:
For the 3 months ended Mar 31
For the 6 months ended June 30
2016 2015 2016 2015
Exploration
expenses in units in operation by mine and mineral
(in thousands of US$) Julcani, Gold 3 12 3 17 Julcani,
Silver 2,602 4,184 4,813 6,370 Julcani, Lead 255 353 469 572
Julcani, Copper 11 45 26 74 Mallay, Gold 89 0 130 0 Mallay, Silver
940 797 1,668 1,479 Mallay, Lead 449 602 902 978 Mallay, Zinc 683
750 1,208 1,288 Orcopampa, Gold 9,392 9,778 17,579 21,297
Orcopampa, Silver 434 366 843 718 Orcopampa, Copper 0 0 2 2
Uchucchacua, Gold 8 0 13 0 Uchucchacua, Silver 6,598 4,957 12,335
10,909 Uchucchacua, Lead 361 313 709 631 Uchucchacua, Zinc 277 449
513 656 La Zanja, Gold 3 12 7 25 La Zanja, Silver 0 0 0 1 El
Brocal, Gold 0 0 0 0 El Brocal, Silver 0 0 0 0 El Brocal, Lead 0 0
0 0 El Brocal, Zinc 0 0 0 0 El Brocal, Copper 0 0 0 0 Non Mining
Units 0 0 0 0
Consolidated Exploration expenses in units in
operation 22,105 22,618 41,221
45,018
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
For the 6 months ended June 30
2016 2015 2016 2015
Commercial
Deductions in units in operation by mine and
mineral
(in thousands of US$) Julcani, Gold 1 7 1 9 Julcani, Silver
1,435 2,682 2,870 4,010 Julcani, Lead 140 225 275 352 Julcani,
Copper 7 30 18 49 Mallay, Gold 80 0 124 0 Mallay, Silver 1,149 920
2,259 1,799 Mallay, Lead 550 682 1,231 1,188 Mallay, Zinc 1,302
1,235 2,672 2,093 Orcopampa, Gold 48 64 150 120 Orcopampa, Silver 0
0 16 0 Orcopampa, Copper 0 0 1 1 Uchucchacua, Gold 12 1 18 1
Uchucchacua, Silver 10,384 8,179 19,640 16,142 Uchucchacua, Lead
561 495 1,129 921 Uchucchacua, Zinc 1,431 2,237 2,743 3,127 La
Zanja, Gold 107 39 165 63 La Zanja, Silver 7 0 8 0 El Brocal, Gold
2,408 1,098 4,602 1,635 El Brocal, Silver 2,092 3,361 4,120 6,946
El Brocal, Lead 1,266 1,078 2,321 3,271 El Brocal, Zinc 8,599 6,282
13,954 12,088 El Brocal, Copper 27,796 24,953 55,401 36,241 Non
Mining Units 0 0 0 0
Consolidated Commercial deductions in
units in operation
59,375 53,568 113,717 90,054
Set forth below is a reconciliation of
Selling expenses (by mine and mineral) to consolidated Selling
expenses:
For the 3
months ended Mar 31
For the 6 months ended June 30
2016 2015 2016 2015
Selling expenses
by mine and mineral
(in thousands of US$) Julcani, Gold 0 1 0 2 Julcani, Silver
207 344 385 584 Julcani, Lead 20 29 38 52 Julcani, Copper 1 4 2 7
Mallay, Gold 17 0 26 0 Mallay, Silver 176 133 337 272 Mallay, Lead
84 101 182 180 Mallay, Zinc 128 126 244 237 Orcopampa, Gold 161 192
320 442 Orcopampa, Silver 7 7 15 15 Orcopampa, Copper 0 0 0 0
Uchucchacua, Gold 2 0 2 0 Uchucchacua, Silver 1,214 543 2,023 1,351
Uchucchacua, Lead 67 34 116 78 Uchucchacua, Zinc 51 49 84 81 La
Zanja, Gold 269 353 486 655 La Zanja, Silver 4 9 10 22 El Brocal,
Gold 131 37 251 65 El Brocal, Silver 176 160 342 485 El Brocal,
Lead 164 87 294 340 El Brocal, Zinc 776 402 1,197 993 El Brocal,
Copper 1,560 869 3,036 1,429 Non Mining Units 127 413 725 758
Consolidated Selling expenses 5,342 3,893
10,115 8,046
JULCANI 2Q 2016 2Q 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) 5 5,077 498
- 21 5,600 23
8,214 693 - 88
9,019
Add: Exploration Expenses (US$000) 3
2,602 255 - 11 2,871 12 4,184 353 - 45 4,594 Commercial Deductions
(US$000) 1 1,435 140 - 7 1,583 7 2,682 225 - 30 2,944 Selling
Expenses (US$000) 0 207 20 - 1 228 1 344 29 - 4 377
Cost
Applicable to Sales (US$000) 9 9,321 913
- 39 10,282 43 15,425
1,300 - 168 16,935 Divide:
Volume Sold 11 817,511
787 - 13 Not Applicable
49 1,254,805 926
- 39 Not Applicable
CAS
812 11.40
1,160 - 3,015
Not Applicable 872
12.29 1,404
- 4,258 Not
Applicable JULCANI
6M 2016 6M 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) 5 9,082 885
- 49 10,021 34
12,688 1,139 - 147
14,009
Add: Exploration Expenses (US$000) 3
4,813 469 - 26 5,311 17 6,370 572 - 74 7,033 Commercial Deductions
(US$000) 1 2,870 275 - 18 3,165 9 4,010 352 - 49 4,420 Selling
Expenses (US$000) 0 385 38 - 2 425 2 584 52 - 7 645
Cost
Applicable to Sales (US$000) 9 17,151
1,666 - 96 18,922 62
23,653 2,115 - 277 26,107
Divide: Volume Sold 11
1,551,735 1,365 - 31
Not Applicable 64
1,873,579 1,399 - 58
Not Applicable
CAS 847
11.05 1,220 -
3,057
Not Applicable
974 12.62
1,512 - 4,741
Not Applicable
MALLAY 2Q 2016
2Q 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) 245
2,577 1,230 1,872
- 5,923 - 1,788 1,351
1,683 - 4,822
Add:
Exploration Expenses (US$000) 89 940 449 683 - 2,161 - 797 602 750
- 2,148 Commercial Deductions (US$000) 80 1,149 550 1,302 - 3,081 -
920 682 1,235 - 2,837 Selling Expenses (US$000) 17 176 84 128 - 404
- 133 101 126 - 360
Cost Applicable to Sales (US$000)
430 4,842 2,312 3,985 -
11,569 - 3,638 2,736 3,793
- 10,167 Divide: Volume Sold 459
385,120 1,771 2,231
- Not Applicable -
267,856 1,654 1,841
- Not Applicable
CAS
937 12.57 1,305
1,786 -
Not Applicable -
13.58 1,654 2,060
- Not Applicable
MALLAY 6M 2016
6M 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) 364
4,668 2,525 3,381
-
10,938 - 3,834 2,537
3,340 - 9,711
Add:
Exploration Expenses (US$000) 130 1,668 902 1,208 - 3,909 - 1,479
978 1,288 - 3,745 Commercial Deductions (US$000) 124 2,259 1,231
2,672 - 6,285 - 1,799 1,188 2,093 - 5,080 Selling Expenses (US$000)
26 337 182 244 - 790 - 272 180 237 - 688
Cost Applicable to
Sales (US$000) 644 8,932 4,841
7,506 - 21,922 - 7,384
4,883 6,958 - 19,224 Divide:
Volume Sold 699 727,710
3,570 4,526 - Not
Applicable - 529,674
3,110 3,477 - Not
Applicable
CAS 921
12.27 1,356 1,658
-
Not Applicable
- 13.94
1,570 2,001 -
Not Applicable
ORCOPAMPA 2Q 2016 2Q 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) 20,761
959 - - -
21,720 23,330 872 -
- - 24,202
Add: -
Exploration Expenses (US$000) 9,392 434 - - - 9,826 9,778 366 - - -
10,144 Commercial Deductions (US$000) 48 - - - - 48 64 - - - - 64
Selling Expenses (US$000) 161 7 - - - 168 192 7 - - - 199
Cost
Applicable to Sales (US$000) 30,362 1,400
- - - 31,762 33,364 1,245
- - - 34,609 Divide: Volume Sold
43,130 155,889 - -
- Not Applicable 48,047
133,795 - - -
Not Applicable
CAS 704
8.98 - -
- Not Applicable
694 9.31 -
- - Not
Applicable ORCOPAMPA 6M
2016 6M 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)
42,532 2,040 - -
6 44,578 54,022 1,822
- - 6 55,851
Add: Exploration Expenses (US$000) 17,579 843 - - 2 18,424
21,297 718 - - 2 22,018 Commercial Deductions (US$000) 150 16 - - 1
167 120 0 - - 1 121 Selling Expenses (US$000) 320 15 - - 0 335 442
15 - - 0 457
Cost Applicable to Sales (US$000) 60,580
2,914 - - 9 63,504 75,881
2,556 - - 10 78,447
Divide: Volume Sold 87,081
342,097 - - 3
Not Applicable 108,957 279,184
- - 3 Not
Applicable
CAS 696
8.52 - -
3,073
Not Applicable
696 9.15
- - 3,171
Not Applicable
UCHUCCHACUA 2Q 2016
2Q 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) 31
24,885 1,363 1,047
- 27,326 2 25,055
1,584 2,269 - 28,910
Add: Exploration Expenses (US$000) 8 6,598 361 277 - 7,245 0
4,957 313 449 - 5,720 Commercial Deductions (US$000) 12 10,384 561
1,431 - 12,388 1 8,179 495 2,237 - 10,911 Selling Expenses (US$000)
2 1,214 67 51 - 1,333 0 543 34 49 - 627
Cost Applicable to Sales
(US$000) 53 43,080 2,353 2,806
- 48,292 3 38,734 2,427
5,004 - 46,167 Divide: Volume Sold
68 3,876,108 2,199
1,367 - Not Applicable
3 2,472,030 1,273
1,701 - Not Applicable
CAS
782 11.11
1,070 2,052 -
Not Applicable
1,124 15.67
1,907 2,942 -
Not Applicable
UCHUCCHACUA 6M 2016
6M 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) 48
46,443 2,670 1,931
- 51,092 2 50,203
2,903 3,018 - 56,126
Add: Exploration Expenses (US$000) 13 12,335 709 513 -
13,570 0 10,909 631 656 - 12,196 Commercial Deductions (US$000) 18
19,640 1,129 2,743 - 23,530 1 16,142 921 3,127 - 20,190 Selling
Expenses (US$000) 2 2,023 116 84 - 2,225 0 1,351 78 81 - 1,510
Cost Applicable to Sales (US$000) 81 80,440
4,625 5,271 - 90,417 3
78,604 4,532 6,883 - 90,022
Divide: Volume Sold 101
7,484,129 3,990 2,728 -
Not Applicable 3
5,226,729 2,736 2,415 -
Not Applicable
CAS 802
10.75 1,159
1,932 -
Not Applicable
1,101 15.04
1,657 2,850 -
Not Applicable
LA ZANJA 2Q 2016
2Q 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) 24,049
398 - - -
24,447 29,630 740 -
- - 30,370
Add:
Exploration Expenses (US$000) 3 0 - - - 3 12 0 - - - 13 Commercial
Deductions (US$000) 107 7 - - - 114 39 - - - - 39 Selling Expenses
(US$000) 269 4 - - - 274 353 9 - - - 362
Cost Applicable to
Sales (US$000) 24,428 410 - -
- 24,838 30,035 749 - -
- 30,784 Divide: Volume Sold
45,856 57,602 - -
- Not Applicable 36,518
68,376 - - -
Not Applicable
CAS 533
7.11 -
- - Not Applicable
822 10.96
- - -
Not Applicable LA
ZANJA 6M 2016 6M 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) 41,767 834 -
- - 42,601 54,315
1,864 - - -
56,179
Add: Exploration Expenses (US$000) 7 0 - - - 7
25 1 - - - 26 Commercial Deductions (US$000) 165 8 - - - 173 63 - -
- - 63 Selling Expenses (US$000) 486 10 - - - 496 655 22 - - - 677
Cost Applicable to Sales (US$000) 42,425 851
- - - 43,277 55,058 1,888
- - - 56,945 Divide: Volume Sold
79,288 126,389 -
- - Not Applicable
68,598 176,299 - -
- Not Applicable
CAS
535 6.74 -
- -
Not Applicable
803 10.71
- - -
Not Applicable
BROCAL 2Q 2016 2Q 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) 1,805 2,429
2,262 10,684 21,485
38,665 877 3,834 2,080
9,608 20,750 37,149
Add:
Exploration Expenses (US$000) - - - - - - - - - - - - Commercial
Deductions (US$000) 2,408 2,092 1,266 8,599 27,796 42,160 1,098
3,361 1,078 6,282 24,953 36,773 Selling Expenses (US$000) 131 176
164 776 1,560 2,808 37 160 87 402 869 1,555
Cost Applicable to
Sales (US$000) 4,344 4,698 3,692
20,059 50,841 83,633 2,012 7,356
3,245 16,292 46,572 75,477
Divide: Volume Sold 3,228
342,385 2,912 11,886
10,560 Not Applicable 1,656
526,698 2,456 9,822
8,792 Not Applicable
CAS
1,346 13.72 1,268
1,688 4,815
Not Applicable 1,215
13.97 1,321 1,659
5,297 Not Applicable
BROCAL 6M 2016
6M 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) 3,769
5,131 4,419 17,974
45,595 76,887 1,310 9,810
6,863 20,063 28,881
66,927
Add: Exploration Expenses (US$000) - - - - - - - - -
- - - Commercial Deductions (US$000) 4,602 4,120 2,321 13,954
55,401 80,397 1,635 6,946 3,271 12,088 36,241 60,180 Selling
Expenses (US$000) 251 342 294 1,197 3,036 5,119 65 485 340 993
1,429 3,311
Cost Applicable to Sales (US$000) 8,622
9,592 7,033 33,124 104,032
162,403 3,010 17,241 10,474
33,143 66,550 130,418 Divide: Volume
Sold 6,561 717,335 5,310
20,573 21,636 Not
Applicable 2,488 1,352,732
8,432 21,007 12,403
Not Applicable
CAS 1,314
13.37 1,324
1,610 4,808
Not Applicable
1,210 12.75
1,242 1,578 5,366
Not Applicable
NON MINING COMPANIES 2Q 2016 2Q
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) -
- - - -
2,702 - - - -
- 13,043
Add: Selling Expenses
(US$000) - - -
- - 127 -
- - - -
413 Total (US$000) - -
- - - 2,829
- - - -
- 13,456
NON
MINING COMPANIES 6M 2016 6M 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) -
- - - -
5,676 - - - -
- 22,504
Add: Selling Expenses
(US$000) - - -
- - 725 -
- - - -
758 Total (US$000) - -
- - - 6,401
- - - -
- 23,262
BUENAVENTURA CONSOLIDATED 2Q 2016 2Q
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) 46,896 36,325
5,353 13,602 21,506
126,383 53,862 40,504 5,708
13,559 20,839 147,515
Add: Exploration Expenses (US$000) 9,495 10,574 1,065 960 11
22,105 9,802 10,304 1,268 1,198 45 22,618 Commercial Deductions
(US$000) 2,657 15,067 2,516 11,333 27,802 59,375 1,208 15,141 2,480
9,755 24,984 53,568 Selling Expenses (US$000) 579 1,785 335 955
1,561 5,342 583 1,197 251 577 872 3,893
Cost Applicable to Sales
(US$000) 59,627 63,751 9,269 26,850
50,880 213,205 65,455 67,146
9,708 25,089 46,740 227,594
Divide: Volume Sold 92,752
5,634,615 7,669 15,484
10,572 Not Applicable 86,272
4,723,560 6,309 13,364
8,831 Not Applicable
CAS
643 11.31 1,209
1,734 4,812
Not Applicable 759
14.22 1,539 1,877
5,292 Not Applicable
BUENAVENTURA CONSOLIDATED 6M
2016 6M 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)
88,485 68,196 10,499
23,286 45,651 241,793 109,683
80,223 13,442 26,421
29,034 281,307
Add: Exploration
Expenses (US$000) 17,731 19,660 2,081 1,721 29 41,221 21,340 19,477
2,181 1,944 76 45,018 Commercial Deductions (US$000) 5,060 28,913
4,955 19,368 55,420 113,717 1,827 28,897 5,732 17,308 36,290 90,054
Selling Expenses (US$000) 1,085 3,111 630 1,525 3,038 10,115 1,163
2,729 650 1,310 1,436 8,046
Cost Applicable to Sales
(US$000) 112,362 119,880 18,165
45,900 104,137 406,846 134,013
131,326 22,004 46,983 66,837
424,425 Divide: Volume Sold 173,741
10,949,395 14,236 27,826
21,670 Not Applicable
180,109 9,438,198 15,678
26,899 12,465 Not Applicable
CAS
647 10.95
1,276 1,650 4,806
Not Applicable 744
13.91 1,404
1,747 5,362 Not
Applicable COIMOLACHE 2Q
2016 2Q 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)
13,952 993 - -
- 14,945 12,873 963
- - - 13,836
Add: Exploration Expenses (US$000) 2,756 196 - - - 2,952
1,752 131 - - - 1,883 Commercial Deductions (US$000) 190 17 - - -
207 89 7 - - - 95 Selling Expenses (US$000) 270 19 - - - 289 214 16
- - - 230
Cost Applicable to Sales (US$000) 17,167
1,225 - - - 18,392 14,927
1,117 - - - 16,044
Divide: Volume Sold 36,596
191,812 - - -
Not Applicable 30,024 162,106
- - - Not
Applicable
CAS 469
6.39 - -
- Not Applicable
497 6.89 -
- - Not
Applicable COIMOLACHE 6M
2016 6M 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)
26,374 2,100 - -
- 28,474 25,349 1,913
- - - 27,262
Add: Exploration Expenses (US$000) 3,950 315 - - - 4,265
8,852 668 - - - 9,520 Commercial Deductions (US$000) 320 33 - - -
353 289 23 - - - 312 Selling Expenses (US$000) 512 41 - - - 553 440
33 - - - 473
Cost Applicable to Sales (US$000) 31,157
2,488 - - - 33,645 34,930
2,637 - - - 37,567
Divide: Volume Sold 69,404
430,003 - - -
Not Applicable 60,746 331,507
- - - Not
Applicable
CAS 449
5.79 - -
-
Not Applicable
575 7.95
- - -
Not Applicable
APPENDIX 5: ALL-IN SUSTAINING COST
All-in
Sustaining Cost for 2Q16 Buenaventura1
La Zanja
Tantahuatay
Attributable 2
2Q16
2Q16
2Q16
2Q16
Au Ounces Sold BVN 88,930 Au Ounces bought from La Zanja -45,262 Au
Ounces Sold Net 43,669 45,566 36,596 82,519
2Q16
2Q16
2Q16
2Q16
Income Statement & Cash Flow US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au Cost of Sales3
78,168 1,790 19,818 435 14,945 408 94,676 1,147 Exploration in
Operating Units 22,102 506 678 15 2,952.23 81 23,645 287 Royalties
4,682 107 0 0 0 0 4,682 57
Commercial Deductions4
17,101 392 1,188 26 207 6 17,814 216 Selling Expenses 2,136 49
273.75 6 289 8 2,397 29 Administrative Expenses5 11,680 267 534 12
498 14 12,163 147 Other Expenses 0 0 2,204 48 1,332 36 1,704 21
Other Incomes -1,408 -32 -3,353 -74 -1,709 -47 -3,872 -47
Administrative charges 0 0 615.74 14 182 5 400 5 Sustaining Capex6
5,098 117 2,550 56 5,065 138 8,482 103 By-product Credit
-109,859 -2,516 -1,071 -24 -3,332 -91 -111,763 -1,354
All-in Sustaining Cost 29,700 680
23,436 514 20,430 558 50,326
610 *All-in Sustaining Cost does not include:
Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. 6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
All-in Sustaining Cost for 2Q15
Buenaventura1 La Zanja Tantahuatay
Attributable Production2
2Q15
2Q15
2Q15
2Q15
Au Ounces Sold BVN 84,616 Au Ounces bought from La Zanja -36,518 Au
Ounces Sold Net 48,098 39,651 30,024 81,175
2Q15
2Q15
2Q15
2Q15
Income Statement & Cash Flow US$ 000'
US$/Oz Au US$ 000' US$/Oz Au US$
000' US$/Oz Au US$ 000' US$/Oz
Au Cost of Sales3 65,094 1,353 33,793 852 13,836 461
88,572 1,091 Exploration in Operating Units 22,605 470 2,600 66
1,883 63 24,739 305 Royalties 4,801 100 0 0 0 0 4,801 59
Commercial Deductions4
16,756 348 945 24 95 3 17,296 213 Selling Expenses 1,565 33 362 9
231 8 1,849 23 Administrative Expenses5 10,167 211 366 9 394 13
10,519 130 Other Expenses 0 0 4,518 114 1,862 62 3,144 39 Other
Incomes -1,266 -26 -5,549 -140 -2,155 -72 -5,074 -63 Other
administrative charges 0 0 858 22 126 4 506 6 Sustaining Capex6
4,599 96 9,406 237 9,178 306 13,270 163 By-product Credit
-82,469 -1,715 -1,249 -32 -2,643 -88 -84,192 -1,037
All-in Sustaining Cost 41,852 870
46,048 1,161 22,808 760 75,430
929 *All-in Sustaining Cost does not include:
Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining
concessions, development costs, property, plant and equipment.
All-in Sustaining Cost for 6M16
Buenaventura1 La Zanja Tantahuatay
Attributable 2
6M16
6M16
6M16
6M16
Au Ounces Sold BVN 166,478 Au Ounces bought from La Zanja -78,586
Au Ounces Sold Net 87,892 71,996 69,404 153,921
6M16
6M16
6M16
6M16
Income Statement & Cash Flow US$ 000'
US$/Oz Au US$ 000' US$/Oz Au US$
000' US$/Oz Au US$ 000' US$/Oz
Au Cost of Sales3 136,579 1,554 36,824 511 28,474 410
167,535 1,088 Exploration in Operating Units 41,214 469 1,272 18
4,265.25 61 43,599 283 Royalties 9,356 106 0 0 0 0 9,356 61
Commercial Deductions4
33,147 377 -1,808 -25 353 5 32,329 210 Selling Expenses 3,777 43
496 7 553 8 4,262 28 Administrative Expenses5 24,418 278 1,026 14
1,053 15 25,384 165 Other Expenses 0 0 4,094 57 2,139 31 3,030 20
Other Incomes -2,169 -25 -7,156 -99 -2,820 -41 -7,097 -46
Administrative charges 0 0 1,199 17 504 7 838 5 Sustaining Capex6
16,078 183 2,821 39 8,872 128 21,132 137 By-product Credit
-193,054 -2,196 -1,786 -25 -6,896 -99 -196,766 -1,278
All-in Sustaining Cost 69,346 789
36,982 514 36,496 526 103,602
673 *All-in Sustaining Cost does not include:
Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. 6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
All-in Sustaining Cost for 6M15
Buenaventura1 La Zanja Tantahuatay
Attributable Production2 6M15
6M15
6M15
6M15
Au Ounces Sold BVN 177,622 Au Ounces bought from La Zanja -68,598
Au Ounces Sold Net 109,023 67,628 60,746 169,263
6M15
6M15
6M15
6M15
Income Statement & Cash Flow US$ 000'
US$/Oz Au US$ 000' US$/Oz Au US$
000' US$/Oz Au US$ 000' US$/Oz
Au Cost of Sales3 144,524 1,326 57,182 846 27,262 449
185,796 1,098 Exploration in Operating Units 44,992 413 8,310 123
9,521 157 53,218 314 Royalties 11,600 106 0 0 0 0 11,600 69
Commercial Deductions4
29,810 273 1,639 24 312 5 30,804 182 Selling Expenses 3,302 30 677
10 474 8 3,851 23 Administrative Expenses5 22,749 209 740 11 928 15
23,514 139 Other Expenses 0 0 6,630 98 2,748 45 4,620 27 Other
Incomes -2,471 -23 -9,335 -138 -3,599 -59 -8,867 -52 Other
administrative charges 0 0 2,442 36 571 9 1,525 9 Sustaining Capex6
10,009 92 13,536 200 15,552 256 23,427 138 By-product Credit
-150,069 -1,376 -2,636 -39 -5,532 -91 -153,685 -908
All-in Sustaining Cost 114,446 1,050
79,185 1,171 48,236 794 175,802
1,039 *All-in Sustaining Cost does not include:
Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining
concessions, development costs, property, plant and equipment.
APPENDIX 6
Compañía de
Minas Buenaventura S.A.A. and Subsidiaries Consolidated
Statement of Financial Position As of June 30, 2016 and
December 31, 2015 2016 2015 Assets
US$(000) US$(000) Current assets Cash and cash
equivalents 181,452 78,519 Trade and other accounts receivable, net
262,162 219,862 Inventory, net 120,119 101,473 Income tax credit
23,741 45,919 Prepaid expenses 10,366 8,231 Embedded derivatives
for concentrate sales, net 17,292 -
Total current assets
615,132 454,004 Assets classified as held for sale
4,905 15,592
620,037 469,596 Non-current
assets Trade and other accounts receivable, net 177,259 162,567
Inventory, net 14,381 26,029 Investment in associates 1,956,380
2,043,983 Mining concessions, development costs, property, plant
and equipment, net 1,782,188 1,747,624 Investment properties, net
10,307 10,719 Deferred income tax asset, net 46,038 41,574 Prepaid
expenses 30,868 29,235 Other assets 17,925 15,854
Total
non-current assets 4,035,346 4,077,585
Total assets 4,655,383 4,547,181
Liabilities and shareholders’ equity Current
liabilities Bank loans 54,368 285,302 Trade and other accounts
payable 234,385 247,114 Provisions 64,122 49,829 Income tax payable
1,850 2,444 Embedded derivatives for concentrate sales, net - 1,694
Hedge derivative financial instruments 90 10,643 Financial
obligations 36,510 33,394
Total current liabilities
391,325 630,420 Liabilities directly
associated with assets classified as held for sale 6,396 20,611
397,721 651,031 Non-current liabilities
Trade and other accounts payable 18,538 15,057 Provisions 147,664
141,885 Financial obligations 572,393 320,316 Contingent
consideration liability 16,994 16,994 Deferred income tax
liability, net 7,911 12,662
Total non-current liabilities
763,500 506,914 Total
liabilities 1,161,221 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 162,744 162,714 Other reserves 269 269
Retained earnings 2,136,198 2,024,895 Other reserves of equity
(1,454) 2,240
Shareholders’ equity, net attributable to owners
of the parent 3,268,705 3,161,066 Non-controlling
interest 225,457 228,170
Total shareholders’ equity
3,494,162 3,389,236 Total
liabilities and shareholders’ equity 4,655,383
4,547,181
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of profit or loss For the three
and six-month periods ended June 30, 2016 and 2015
For the three-month period ended
June 30,
For the six-month period ended
June 30,
2016 2015 2016 2015 US$(000)
US$(000) US$(000) US$(000) Continuing
operations Operating income Net sales of goods 273,746
214,034 488,826 434,634 Net sales of services 5,693 22,516 11,261
32,307 Royalty income 5,861 7,390 12,546
16,480
Total operating income 285,300 243,940 512,633
483,421
Operating costs Cost of sales of goods,
excluding depreciation and amortization (115,963 ) (130,223 )
(223,120 ) (250,405 ) Cost of services, excluding depreciation and
amortization (10,420 ) (17,292 ) (18,673 ) (30,902 ) Depreciation
and amortization (45,842 ) (61,355 ) (92,680 ) (109,514 )
Exploration in operating units (22,105 ) (22,618 ) (41,221 )
(45,018 ) Mining royalties (5,963 ) (6,482 ) (12,131 ) (14,907 )
Total operating costs (200,293 ) (237,970 ) (387,825 )
(450,746 )
Gross profit 85,007
5,970 124,808 32,675
Operating expenses, net Administrative expenses (19,758 )
(18,299 ) (41,169 ) (38,968 ) Selling expenses (5,342 ) (3,893 )
(10,115 ) (8,046 ) Exploration in non-operating areas (4,955 )
(9,704 ) (8,469 ) (20,401 ) Reversal (expense) for provision for
contingencies 1,087 (731 ) 202 (481 ) Impairment of long-lived
assets - (3,803 ) - (3,803 ) Other, net 4,505 (5,072 ) 8,320
(220 )
Total operating expenses, net (24,463 )
(41,502 ) (51,231 ) (71,919 )
Operating profit (loss)
60,544 (35,532 ) 73,577 (39,244 )
Other
income (expense), net Share in results of associates under
equity method 20,675 11,966 49,072 48,240 Financial income 1,965
970 4,312 1,614 Net gain (loss) from currency exchange difference
(891 ) (1,264 ) 5,488 (3,581 ) Financial costs (7,694 ) (8,269 )
(15,674 ) (14,144 )
Total other income (expense), net 14,055
3,403 43,198 32,129
Profit (loss) before income tax
74,599 (32,129 ) 116,775 (7,115 ) Current income tax (12,214 )
(2,003 ) (19,217 ) (7,380 ) Deferred income tax (1,983 ) 2,067
11,809 (2,983 )
Profit (loss) from
continuing operations 60,402 (32,065 ) 109,367
(17,478 )
Discontinued operations Profit (loss) from
discontinued operations (1,929 ) 575 354 (3,764 )
Net profit 58,473 (31,490 ) 109,721 (21,242 )
Attributable to: Owners of the parent 55,461 (18,746
) 107,023 (1,427 ) Non-controlling interest 3,012 (12,744 )
2,698 (19,815 ) 58,473 (31,490 ) 109,721
(21,242 )
Basic and diluted profit (loss) per share
attributable to equity holders of the parent, stated in U.S.
dollars 0.22 (0.07 ) 0.42 (0.01 )
Profit (loss) for continuing operations, basic and diluted per
share attributable to equity holders of the parent,
expressed in U.S. dollars 0.24 (0.13 ) 0.43 (0.07
)
Weighted average number of shares outstanding
(common and investment), in units 253,715,190
253,715,190 253,715,190 253,715,190
Consolidated
Statements of cash Flows For the three and six-month periods
ended June 30, 2016 and 2015
For the three-month period ended
June 30,
For the six-month period ended
June 30,
2016 2015 2016 2015 US$(000)
US$(000) US$(000) US$(000) Operating
activities Proceeds from sales 234,024 250,675 415,845 482,454
Dividends received 2,769 902 136,784 2,959 Value Added Tax
recovered 17,779 19,506 70,872 52,873 Royalties received 13,501
9,397 21,058 22,841 Interest received 60 855 1,714 1,797 Payments
to suppliers and third-parties (164,963 ) (183,029 ) (333,019 )
(361,783 ) Payments to employees (33,389 ) (41,700 ) (69,154 )
(87,028 ) Payments of interest (14,083 ) (4,129 ) (17,873 ) (9,599
) Payment of income taxes (9,304 ) (7,121 ) (11,461 ) (11,262 )
Payments of mining royalties (4,887 ) (5,684 ) (9,356 ) (11,882 )
Net cash and cash equivalents provided by operating
activities 41,507 39,672 205,410 81,370
Investing activities Proceeds from sales of
mining concessions, property, plant and equipment 1,962 1,886 2,072
2,020 Proceeds from sales of intangibles 227 - 227 - Payments of
mining concessions, development costs, property, plant and
equipment (69,340 ) (44,514 ) (121,368 ) (81,632 )
Net
cash and cash equivalents used in investing activities (67,151
) (42,628 ) (119,069 ) (79,612 )
Financing activities
Increase of bank loans 15,851 - 175,851 90,000 Payment of bank
loans (252,000 ) - (412,000 ) (40,000 ) Increase of financial
obligations 273,814 - 275,000 10,000 Payment of financial
obligations (8,299 ) (4,068 ) (16,883 ) (9,086 ) Dividends paid to
non-controlling interest (1,980 ) (2,640 ) (4,060 ) (5,908 )
Acquisition of non-controlling interest (1,149 ) - (1,307 ) -
Increase of restricted current accounts 4,395 (1,988 ) - Payments
of dividends (9 ) - (9 ) -
Net cash and
cash equivalents provided by (used in) financing activities
30,623 (6,708 ) 14,604 45,006 Net
increase (decrease) in cash and cash equivalents during the period
4,979 (9,664 ) 100,945 46,764 Cash and cash equivalents at the
beginning of the period 174,485 134,940 78,519 78,512
Cash and cash equivalents at period-end
179,464 125,276 179,464 125,276
Net change in unrealized gain (loss) on hedge derivates -
(2,131 ) - (2,296 )
For the three-month period ended
June 30,
For the six-month period ended
June 30,
2016 2015 2016 2015
US$(000) US$(000) US$(000) US$(000)
Reconciliation of net profit to cash and cash equivalents
provided by operating activities Net profit
(loss) attributable to owners of the parent 55,461 (18,746 )
107,023 (1,427 )
Plus (less): Depreciation and
amortization 41,781 61,355 92,680 117,808 Net loss (gain) on sales
of mining concessions, property, plant and equipment 2,182 1,639
2,072 2,953 Accretion expense of provision for closure of mining
units and exploration projects 960 2,560 1,698 2,835 Net loss
attributable to non-controlling interest 3,012 (12,744 ) 2,698
(19,815 ) Net share in results of associates under equity method
(20,675 ) (11,966 ) (49,072 ) (48,240 ) Provision for estimated
fair value of embedded derivatives related to concentrate (16,928 )
6,061 (29,949 ) (595 ) sales and adjustments on open liquidations
Deferred income tax expense (income) 1,983 (2,067 ) (11,809 ) 2,983
Provision return for impairment of inventories (7,072 ) 6,034
(8,854 ) 4,782 Net loss (gain) from currency exchange difference
891 1,187 (5,488 ) 3,504 Impairment of long-lived assets - 3,803 -
3,803 Provision for employee bonus (5,658 ) (8,175 ) - - Other net
(675 ) 8,379 (587 ) 956
Net changes in operating assets
and liabilities: Decrease (increase) in operating assets -
Trade and other accounts receivable (37,715 ) 8,780 (36,178 )
29,474 Inventories (7,978 ) (3,335 ) 1,821 24,466 Income tax credit
10,057 (1,879 ) 18,001 (180 ) Prepaid expenses (558 ) 1,539 (6,924
) 2,699 Increase (decrease) in operating liabilities - Trade
and other accounts payable 14,321 20,286 (16,337 ) (14,359 )
Provisions 5,386 (23,941 ) 8,425 (32,594 ) Income tax payable (37 )
- (594 ) (642 ) Proceeds from dividends 2,769 902 136,784
2,959
Net cash and cash equivalents
provided by operating activities 41,507 39,672
205,410 81,370
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160726006662/en/
In Lima:Carlos Galvez, 511-419-2540VP & Chief
Financial OfficerorDaniel Dominguez, 511-419-2591Manager of
Financial Planning and Investor
Relationsdaniel.dominguez@buenaventura.peorRodrigo Echecopar,
511-419-2609Investor Relations
Coordinatorrodrigo.echecopar@buenaventura.peorIn New
York:i-advize Corporate CommunicationsMaria Barona / Rafael
Borja212-406-3691/3693
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