Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or
“the Company”) (NYSE:BVN; Lima Stock Exchange:BUE.LM), Peru’s
largest publicly-traded precious metals mining company, announced
today results for the third quarter (3Q16) and nine-month (9M16)
periods ended September 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$).
Third Quarter 2016 Highlights:
- In 3Q16, EBITDA from direct operations
was US$83.3 million compared to US$5.6 million reported in 3Q15.
Adjusted EBITDA (including associated companies) increased 99% (US$
134.6 million in 3Q16 compared to the US$ 67.6 million in
3Q15).
- All in Sustaining Cost (AISC*)
decreased 51% in 3Q16 (US$ 570/oz) compared to 3Q15 (US$
1,171/oz).
- At El Brocal, we expect an improvement
in 4Q16 due to i) higher ore treated, ii) higher zinc grade and
better commercial terms.
- Net income in 3Q16 was negative US$
24.7 mainly due to El Brocal and Yanacocha results.
- Production from direct operations in
3Q16 was 93k gold ounces and 5.8 million silver ounces, higher
compared to 89k gold ounces and 5.6 million silver ounces in
3Q15.
- The Tambomayo project remains in-line
with schedule and budget. Total project progress is at 96%.
Production ramp up is expected to begin in December 2016.
- Buenaventura´s Net debt/EBITDA ratio
has been reduced to 2x. By the end of the year, we expect a ratio
of 1.6x-1.9x.
- Dividend payment to be resumed (US$
0.030 per share/ADS).
Financial Highlights (in millions
of US$, except EPS figures):
3Q16 3Q15
Var% 9M16 9M15
Var% Total Revenues 269.0
211.0
28% 781.7
694.4
13% Operating
Profit 34.7 -54.2
N.A. 107.4 -93.5
N.A. EBITDA Direct Operations 83.3
5.6
1391% 252.9
80.2
215% Adjusted EBITDA
(Inc Associates) 134.6 67.6
99% 468.5 303.8
54% Net Income -24.7
-23.2
6% 82.4
-24.7
N.A. EPS**
-0.10 -0.09
6%
0.32 -0.10
N.A.
(*) See Appendix 5
(**) as of September 30, 2016 Buenaventura had 253,986,867
outstanding shares.
Operating Revenues
During 3Q16, net sales were US$263.1 million, a 30% increase
compared to the US$202.3 million reported in 3Q15. This result was
mainly explained by an increase in all metal prices as well as
higher volume sales of copper, zinc and lead.
Royalty income decreased 32% from US$8.7 million in 3Q15 to
US$5.9 million in 3Q16 as a result of lower revenues at
Yanacocha.
Operating Highlights 3Q16
3Q15 Var% 9M16
6M15 Var% Net
Sales
(in millions of US$)
263.1 202.3
30%
763.2 669.2
14%
Average Realized Gold Price (US$/oz) (1) (2)
1,334 1,103
21%
1,275 1,169
9% Average
Realized Gold Price (US$/oz) inc. Affiliates (3)
1,338 1,112
20%
1,267 1,172
8% Average
Realized Silver Price (US$/oz) (1) (2)
20.83 14.50
44%
17.60 15.34
15% Average
Realized Lead Price (US$/MT) (1) (2) 1,950
1,593
22% 1,839
1,734
6% Average Realized
Zinc Price (US$/MT) (1)
(2)
2,460 1,775
39%
2,092 1,998
5%
Average Realized Copper Price (US$/MT) (1) (2)
4,820 3,723
29%
4,666 4,599
1%
Volume Sold 3Q16
3Q15 Var% 9M16
6M15 Var% Gold Oz
Direct Operations (1) 94,539
91,370
3% 268,280
271,479
-1% Gold Oz inc Associated
Companies (3) 173,291
217,320
-20% 520,267
618,138
-16% Silver Oz
(1) 4,975,143 4,801,621
4% 15,924,538 14,239,819
12% Lead MT (1)
7,138 6,409
11%
21,374 22,086
-3% Zinc MT
(1) 15,040 12,543
20% 42,866 39,442
9% Copper MT (1) 11,225
7,456
51% 32,895
19,917
65%
(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 9M16, net sales increased 14%, from US$669.2 million in 9M15
to US$763.2 million in 9M16. Royalty income for 9M16 was US$18.5
million, lower than US$25.2 million during 9M15.
Production and Operating Costs
In 3Q16, Buenaventura’s gold equity production from direct
operations was 4% higher compared to the figure reported in 3Q15
(92,571 gold ounces in 3Q16 vs 88,669 gold ounces in 3Q15). Gold
production including associated companies in 3Q16 was 156,905
ounces, 19% lower than the amount reported in the same period 2015.
This decline is explained by a decrease in production from
Yanacocha. Silver equity production from direct operations
increased 5%, mainly due to higher production at the Uchucchacua
mine and the Mallay mine.
Equity Production 3Q16
3Q15 Var% 9M16
9M15 Var% Gold Oz
Direct Operations(1) 92,571
88,669
4% 257,280
254,195
1% Gold Oz including Associated
Companies 156,905 194,500
-19% 468,222 562,553
-17% Silver Oz Direct
Operations(1) 5,840,913
5,583,565
5% 17,575,037
15,232,580
15% Silver Oz including
Associated Companies 6,099,334
5,716,336
7% 18,290,013
15,624,885
17% Lead MT
7,087 6,542
8%
21,135 19,697
7% Zinc
MT 13,175 10,047
31% 35,819 31,502
14% Copper MT Direct Operations(1)
7,608 5,187
47%
20,978 12,640
66%
Copper MT including Associated Companies
31,128 16,115
93%
93,361 42,275
121%
Consolidated Production 3Q16
3Q15 Var%
9M16 9M15 Var%
Gold Oz(2) 96,271 92,870
4% 269,563 267,080
1% Silver Oz(2)
5,980,514 5,854,489
2%
18,024,485 16,248,238
11%
Lead MT(2) 8,156 7,957
3% 24,676 25,148
-2% Zinc MT(2)
18,527 15,407
20%
51,179 48,209
6% Copper
MT(2) 12,362 9,525
30% 35,531 23,156
53%
(1) Buenaventura’s Direct Operations
includes 100% of Buenaventura’s operating units, 53.06% of La Zanja
and 61.32% of El Brocal (2) Considers 100% of Buenaventura’s
operating units, 100% of La Zanja and 100% of El Brocal
Orcopampa (100% owned by
Buenaventura)
Production
3Q16 3Q15 Var %
9M16 9M15
Var % Gold Oz
53,167 54,035
-2%
145,129 156,023
-7%
Silver Oz 179,210
146,930
22% 492,810
392,541
26%
Cost Applicable to Sales
3Q16 3Q15 Var %
9M16 9M15 Var % Gold
US$/Oz 660 636
4% 682 676
1%
Gold production at Orcopampa decreased 2% in 3Q16 (compared to
3Q15) mainly due to lower ore grade (see Appendix 2). Cost
Applicable to Sales (CAS) in 3Q16 (660 US$/Oz) increased 4%
compared to 3Q15 (636 US$/Oz), mainly due to higher exploration
expenses in order to increase resources at the Pucara and the Lucia
area.
Gold production guidance for 2016 is 190k – 200k ounces.
Uchucchacua (100% owned by
Buenaventura)
Production
3Q16 3Q15 Var%
9M16 9M15
Var% Silver Oz
4,086,850 3,775,051
8%
12,170,024 9,801,413
24%
Zinc MT 1,950
1,293
51% 5,566
4,090
36% Lead
MT 2,772 2,340
18% 7,869 5,869
34%
Cost Applicable to
Sales 3Q16
3Q15 Var%
9M16 9M15 Var%
Silver US$/Oz 11.06
13.56
-18% 10.84
14.47
-25%
Silver production in 3Q16 increased 8% compared to 3Q15, due to
higher volumes of ore treated and higher ore grade (see Appendix
2). Cost Applicable to Sales (CAS) in 3Q16 decreased 18% compared
to 3Q15, an improvement primarily explained by i) Increasing
efficiencies as a result of massive mining using the bench &
fill method and ii) lower reagent prices and consumption.
Silver production guidance for 2016 is 15.5 million – 16.5
million ounces.
Mallay (100% owned by
Buenaventura)
Production
3Q16
3Q15 Var% 9M16
9M15 Var% Silver
Oz 412,526 323,095
28% 1,252,490
928,126
35% Zinc
MT 2,740 2,445
12% 8,137 6,765
20% Lead MT 1,965
1,925
2% 5,907
5,353
10% Gold
Oz 420 259
62% 1,460 396
268%
Cost Applicable to Sales
3Q16
3Q15 Var% 9M16
9M15 Var%
Silver US$/Oz 13.05
13.99
-7% 12.55
13.96
-10%
Silver production in 3Q16 increased 28% compared to 3Q15, mainly
due to increased amounts ore treated (see Appendix 2). Cost
Applicable to Sales (CAS) in 3Q16 was 7% lower compared to 3Q15
mainly due to more volume sold.
Silver production guidance for 2016 is 1.5 million – 1.9 million
ounces.
Julcani (100% owned by
Buenaventura)
Production
3Q16 3Q15 Var%
9M16 9M15
Var% Silver Oz
782,813 794,810
-2%
2,473,802 2,397,790
3%
Cost Applicable to Sales
3Q16
3Q15 Var% 9M16
9M15 Var% Silver
US$/Oz 11.86 12.94
-8% 11.32 12.70
-11%
Silver production in 3Q16 is in line with the figure reported in
3Q15. Cost Applicable to Sales (CAS) in 3Q16 was 8% lower than
3Q15, an improvement primarily mainly explained by higher volume
sold and lower commercial deductions.
Silver production guidance for 2016 is 3.0 million – 3.4 million
ounces.
La Zanja (53.06% owned by
Buenaventura)
Production
3Q16 3Q15 Var %
9M16 9M15
Var % Gold Oz
37,407 35,653
5%
106,984 103,362
4% Silver
Oz 50,309 78,844
-36% 159,012
241,969
-34%
Cost Applicable to Sales
3Q16 3Q15
Var % 9M16 9M15
Var % Gold US$/Oz
641 906
-29%
568 838
-32%
Gold production in 3Q16 increased 5% compared to 3Q15. CAS in
3Q16 decreased 29% compared to 3Q15, an improvement primarily due
to i) lower headcount generated by new synergies with Tantahuatay
mine, ii) lower reagent and explosives prices and consumption, and
iii) lower contractor expenses resulting from more favorable
prices.
Gold production guidance for 2016 is 130k – 140k ounces.
Tantahuatay (40.10% owned by
Buenaventura)
Production
3Q16 3Q15 Var %
9M16 9M15
Var % Gold Oz
39,595 34,739
14%
110,890 97,085
14% Silver
Oz 162,983 259,433
-37% 587,551
598,392
-2%
Cost Applicable to Sales
3Q16 3Q15 Var
% 9M16 9M15
Var % Gold US$/Oz
527 484
9%
476 542
-12%
Gold production in 3Q16 increased 14% compared to the figure
reported in 3Q15. CAS in 3Q16 increased 9% compared to 3Q15 mainly
due to an inventory write-down and higher exploration expenses.
Gold production guidance for 2016 is 145k – 155k ounces
El Brocal (61.32%* owned by
Buenaventura)
Production
3Q16 3Q15 Var %
9M16 9M15
Var % Copper MT
12,291 9,446
30%
35,312 22,895
54% Zinc
MT 13,836 11,670
19% 37,477 37,353
0% Silver Oz
468,806 735,760
-36% 1,476,348 2,486,399
-41%
Cost Applicable
to Sales 3Q16
3Q15 Var %
9M16 9M15 Var %
Copper US$/Lb 2.17
2.34
-7% 2.18
2.39
-9% Zinc
US$/Lb 0.92 0.83
12% 0.80 0.75
7%
During 3Q16, copper production increased 30% compared to 3Q15,
due to a higher ore volume treated and ore grade. Moreover, in 3Q16
zinc production increased 19% as a result of higher ore
treated.
(*) Since August 2016, the new ownership of El Brocal is
61.32%.
In 3Q16, zinc Cost Applicable to sales (CAS) increased 34%
compared to 3Q15 mainly due to lower ore grade and lower silver
by-product contribution. Copper CAS in 3Q16 decreased 12% compared
to 3Q15 mainly due higher ore grade and lower commercial deductions
per ton resulting from the renegotiation of commercial
contracts.
Zinc production guidance for 2016 is 55k – 65k MT, while copper
production guidance for 2016 is 40k – 50k MT.
General and Administrative Expenses
General and administrative expenses in 3Q16 were US$16.9
million, 15% lower compared to the US$19.8 million in 3Q15. For
9M16, the expense was US$58.0 million (US$58.8 million in
9M15).
Exploration in Non-Operating Areas
Exploration costs in non-operating areas during 3Q16 were US$6.4
million compared with US$5.3 million in 3Q15. During the period,
Buenaventura’s main exploration efforts were focused on the
Tambomayo project (US$1.75 million), the San Gabriel project
(US$1.21 million) and Marcapunta Norte (US$0.32 million). For 9M16,
the expense was US$14.8 million (US$25.7 million in 9M15).
Share in Associated Companies
During 3Q16, Buenaventura’s share in associated companies was
negative US$11.9 million, compared to US$13.4 million reported in
3Q15, composed by:
Share in the Result of Associates
(in millions of US$)
3Q16 3Q15
Var % 9M16 9M15
Var % Cerro Verde 9.5
1.3
621% 44.3
10.1
339% Coimolache 4.9
4.1
20% 17.0
9.1
87% Yanacocha
-26.2 8.0
N.A.
-24.1 42.4
N.A. Total
-11.9 13.4
N.A. 37.2 61.6
-40%
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), during 3Q16, gold
production was 147,386 ounces, 39% lower than 3Q15 production
(242,454 ounces). For 9M16, gold production was 483,258 ounces, 32%
lower than 706,433 ounces in 9M15.
Gold production guidance at Yanacocha for 2016 is 630k – 660k
ounces.
In 3Q16, Yanacocha reported a net loss of US$60.1 million
compared to a net income of US$18.2 million reported in 3Q15. CAS
in 3Q16 was US$1,040/oz, 65% higher than the US$630/oz reported in
3Q15 mainly due to: i) an inventory write-down of US$49.4 million
in 3Q16 (US$19.9 million in 3Q15), and ii) lower volume sold
(145,582 gold ounces in 3Q16 vs 257,606 gold ounces in 3Q15).
Advancing Yanacocha sulfides through Chaquicocha exploration
drilling.
Capital expenditures at Yanacocha were US$26.7 million in 3Q16,
while for 9M16 was US$62.7 million.
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), during 3Q16
copper production was 120,124 MT (23,520 MT attributable to
Buenaventura), a 115% increase compared to 3Q15 (55,811 MT and
10,928 MT attributable to Buenaventura). For 9M16, copper
production was 369,681 MT (72,384 MT attributable to
Buenaventura).
During 3Q16, Cerro Verde reported a net income of US$48.3
million compared to net income of US$6.7 million in 3Q15. This
increase was primarily due to: i) a lower cash cost, and ii) higher
volumes sold. For 9M16, net income was US$226.0 million (compared
to US$46.5 million in 9M15).
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 3Q16 was US$4.9 million (US$4.1
million in 3Q15). For 9M16, the contribution was US$17.0 million,
compared to US$9.1 million reported in 9M15.
Project Development and Exploration
The Tambomayo Project (100% ownership)
- Proyect is on schedule and within
budget
- Total CAPEX: US$ 340 M
- Overall project progress is at 96% (As
of September 2016)
- Exploration and mine development are
completed (100% of progress).
- The construction progress of the
facilities is at 93%.
- The following facilities have been
completed and already commissioned:
- Tailings dam
- Water dam
- Power line and substations
- Access road
- Crusher and stockpile area
The San Gabriel Project (100% ownership)
- Environmental Impact Assessment (EIA)
of the project´s construction is expected to be approved in
December 2016.
- Objectives for 4Q16:
- Drilling program: 3,000 meters in order
to confirm resources and certainty
- Complete Metallurgical studies to be
completed in order to improve recovery
Other
During the October 27, 2016 meeting, the Board of Directors
meeting passed the following resolution:
- Declaration of cash dividend of US$
0.030 per share or ADS, payable on November 30, 2016
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 project.
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.
**Tables to follow**
APPENDIX 1
Equity Participation in
Subsidiaries and Associates (as of
September 30, 2016)
BVNEquity %
OperatingMines / 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*
61.32
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
3Q16
3Q15 % 9M16
9M15 % Mining Unit
Operating Results Underground
Orcopampa Ore Milled DMT 121,714 114,509
6% 350,643 337,344
4% Ore Grade OZ/MT 0.42 0.49
-14% 0.42 0.48
-11% Recovery Rate % 97.0% 95.2%
2% 96.0% 95.8%
0% Ounces Produced*
53,167 54,035
-2%
145,129 156,023
-7% Mining
Unit Operating Results
Open Pit La Zanja Ounces Produced 37,407 35,653 5% 106,984
103,362 4% Tantahuatay Ounces Produced
39,595 34,739 14% 110,890
97,085 14%
SILVER PRODUCTION
3Q16 3Q15
% 9M16
9M15 % Mining Unit
Operating Results Underground
Uchucchacua Ore Milled DMT 320,838 310,733
3% 943,460
803,255
17% Ore Grade OZ/MT 15.15 14.56
4% 15.37
14.57
6% Recovery Rate % 84.1% 83.5%
1% 83.9% 83.8%
0% Ounces Produced
4,086,850 3,775,051
8%
12,170,024 9,801,413
24%
Julcani Ore Milled DMT 42,647 44,937
-5% 131,425 132,924
-1% Ore Grade OZ/MT 18.96 18.51
2% 19.60 18.93
4% Recovery Rate % 96.8% 95.5%
1% 96.1% 95.3%
1% Ounces Produced
782,813 794,810
-2%
2,473,802 2,397,790
3%
Mallay Ore Milled DMT 51,463 41,888
23% 152,422 115,312
32% Ore Grade OZ/MT 8.39 8.31
1% 8.77 8.57
2%
Recovery Rate % 93.3% 92.8%
1% 93.7% 94.0%
0%
Ounces Produced 412,526
323,095
28% 1,252,490
928,126
35% Mining Unit
Operating Results Open Pit
Colquijirca Ounces Produced 277,255
517,648
-46%
937,547 1,781,192
-47%
ZINC
PRODUCTION
3Q16 3Q15 %
9M16 9M15 %
Mining Unit Operating Results
Underground Uchucchacua Ore Milled DMT 320,838
310,733
3% 943,460 803,256
17% Ore Grade % 1.16%
1.03%
13% 1.15% 1.05%
10% Recovery Rate % 52.45%
40.5%
29% 51.0% 48.2%
6% MT
Produced 1,950 1,294
51% 5,566 4,091
36% Mallay Ore Milled DMT 51,463 41,888
23% 152,422
115,312
32% Ore Grade % 5.93% 6.6%
-11% 6.05% 6.64%
-9% Recovery Rate % 88.5% 87.8%
1% 87.9% 88.5%
-1% MT Produced 2,740
2,445
12% 8,137
6,765
20% Mining Unit
Operating Results Open
Pit
Colquijirca
MT Produced 13,836 11,670
19% 37,477 37,353
0%
APPENDIX 3: EBITDA Reconciliation (in
thousand US$)
3Q16
3Q15 9M16 9M15 Net
Income -28,366 -39,006
81,355 -60,248
Add / Subtract:
111,685 44,596
171,593 140,429 Provision for
income tax, net 31,129 -14,297
37,625 -3,934 Share in associated companies by
the equity method, net 11,850 -13,381
-37,222 -61,621 Interest income
-1,749 -827 -6,061
-2,441 Interest expense 10,911 6,934
26,585 21,078 Loss on currency exchange
difference 4,233 3,936
-1,255 7,517 Long Term Compensation provision
336 -12 926 123
Depreciation and Amortization 45,361
59,564 138,041 169,078 Workers´
participation provision 2,878 246
6,572 629 Impairment of long-term lived
assets 0 0 0
3,803 Loss from discontinued operations 6,736
2,433 6,382 6,197
EBITDA Buenaventura Direct Operations
83,319 5,590
252,948 80,181 EBITDA Yanacocha
(43.65%) -2,817 40,736
42,808 153,251
EBITDA Cerro Verde
(19.58%) 41,603 11,906
136,151 44,764
EBITDA Coimolache
(40.10%) 12,515 9,402
36,567 25,605
Adjusted EBITDA (Including
Associated companies) 134,620
67,634 468,475
303,801
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 nine months ended
September 30, 2015 and 2016, 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 nine months ended September 30,
2015 and 2016 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 Sep 30 For the 9 months
ended Sep 30 2016 2015 2016
2015 (in thousands of US$) Consolidated
Cost of sales excluding depreciation and amortization 129,752
145,921 371,545 427,228
Add: Consolidated Exploration in
units in operation 24,985 20,990 66,206 66,008 Consolidated
Commercial deductions 57,590 45,094 171,306 135,147 Consolidated
Selling expenses 5,531 4,655 15,646 12,701
Consolidated Cost
applicable to sales 217,858 216,660
624,703 641,084
Set forth below is a reconciliation of
Cost of sales, excluding depreciation and amortization
(by mine and mineral) to consolidated Cost
of sales:
For the
3 months ended Sep 30 For the 9 months ended Sep
30 2016 2015 2016 2015
Cost of sales by
mine and mineral
(in thousands of US$) Julcani, Gold 9 6 15 40 Julcani,
Silver 5,460 3,709 14,545 16,398 Julcani, Lead 464 282 1,345 1,420
Julcani, Copper 9 41 57 189 Mallay, Gold 103 58 454 54 Mallay,
Silver 2,476 1,950 7,157 5,784 Mallay, Lead 1,120 1,313 3,620 3,848
Mallay, Zinc 1,883 1,588 5,289 4,933 Orcopampa, Gold 24,293 24,290
66,824 78,317 Orcopampa, Silver 1,136 813 3,173 2,636 Orcopampa,
Copper 33 0 42 0 Uchucchacua, Gold 20 16 68 18 Uchucchacua, Silver
20,552 28,758 66,971 78,965 Uchucchacua, Lead 1,185 1,748 3,855
4,653 Uchucchacua, Zinc 990 825 2,946 3,837 La Zanja, Gold 22,964
32,256 64,726 86,549 La Zanja, Silver 369 940 1,208 2,826 El
Brocal, Gold 1,600 1,370 5,370 2,542 El Brocal, Silver 2,513 3,861
7,645 14,007 El Brocal, Lead 2,299 2,566 6,718 9,693 El Brocal,
Zinc 12,747 11,403 30,718 31,404 El Brocal, Copper 24,852 17,878
70,449 46,358 Non Mining Units 2,675 10,252 8,351 32,757
Consolidated Cost of sales, excluding depreciation and
amortization 129,752 145,921 371,545
427,228
Set forth below is a reconciliation of
Exploration expenses in units in operation (by mine and mineral) to
consolidated Exploration expensesin mining units:
For the
3 months ended Sep 30 For the 9 months ended Sep
30 2016 2015 2016 2015
Exploration
expenses in units in operation by mine and mineral
(in thousands of US$) Julcani, Gold 4 4 7 22 Julcani, Silver
2,503 2,582 7,321 8,944 Julcani, Lead 213 196 677 775 Julcani,
Copper 4 29 29 103 Mallay, Gold 33 21 157 20 Mallay, Silver 800 699
2,475 2,178 Mallay, Lead 362 470 1,252 1,449 Mallay, Zinc 609 569
1,829 1,857 Orcopampa, Gold 11,680 9,364 29,259 30,664 Orcopampa,
Silver 546 313 1,389 1,032 Orcopampa, Copper 16 0 18 0 Uchucchacua,
Gold 7 3 20 4 Uchucchacua, Silver 7,336 6,177 19,671 17,087
Uchucchacua, Lead 423 375 1,132 1,007 Uchucchacua, Zinc 353 177 865
830 La Zanja, Gold 94 10 101 35 La Zanja, Silver 2 0 2 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
24,985 20,990 66,206 66,008 Set
forth below is a reconciliation of Commercial Deductions in units
in operation (by mine and mineral)to consolidated Commercial
deductions:
For the 3 months ended Sep 30 For the 9 months
ended Sep 30 2016 2015 2016 2015
Commercial Deductions in units in
operation by mine and mineral
(in thousands of US$) Julcani, Gold 2 2 3 11 Julcani, Silver
1,022 1,241 3,892 5,251 Julcani, Lead 87 95 362 447 Julcani, Copper
1 16 20 64 Mallay, Gold 42 29 166 29 Mallay, Silver 1,319 1,083
3,578 2,883 Mallay, Lead 572 732 1,803 1,920 Mallay, Zinc 1,538
1,062 4,210 3,155 Orcopampa, Gold 183 81 331 200 Orcopampa, Silver
66 0 82 0 Orcopampa, Copper 8 0 9 0 Uchucchacua, Gold 8 5 27 5
Uchucchacua, Silver 8,686 9,094 28,325 25,236 Uchucchacua, Lead 491
565 1,620 1,486 Uchucchacua, Zinc 1,458 831 4,201 3,958 La Zanja,
Gold 16 77 181 141 La Zanja, Silver 4 12 12 12 El Brocal, Gold
1,939 1,287 6,541 2,922 El Brocal, Silver 1,974 2,646 6,094 9,592
El Brocal, Lead 1,097 1,129 3,418 4,400 El Brocal, Zinc 9,794 5,631
23,747 17,719 El Brocal, Copper 27,281 19,477 82,682 55,717 Non
Mining Units 0 0 0 0
Consolidated Commercial deductions in units
in operation 57,590 45,094 171,306
135,147 Set forth below is a reconciliation of
Selling expenses (by mine and mineral) to consolidated Selling
expenses:
For the 3 months
ended Sep 30 For the 9 months ended Sep 30
2016 2015 2016 2015
Selling expenses
by mine and mineral
(in thousands of US$) Julcani, Gold 0 0 1 2 Julcani, Silver
168 197 554 781 Julcani, Lead 14 15 51 68 Julcani, Copper 0 2 2 9
Mallay, Gold 8 4 33 4 Mallay, Silver 185 147 523 418 Mallay, Lead
84 99 265 278 Mallay, Zinc 141 119 387 357 Orcopampa, Gold 249 192
569 634 Orcopampa, Silver 12 6 27 21 Orcopampa, Copper 0 0 0 0
Uchucchacua, Gold 1 0 3 0 Uchucchacua, Silver 1,014 816 3,036 2,166
Uchucchacua, Lead 58 50 175 128 Uchucchacua, Zinc 49 23 134 105 La
Zanja, Gold 294 272 780 927 La Zanja, Silver 5 8 15 30 El Brocal,
Gold 93 79 341 133 El Brocal, Silver 146 222 486 733 El Brocal,
Lead 134 147 427 507 El Brocal, Zinc 742 654 1,952 1,642 El Brocal,
Copper 1,447 1,026 4,476 2,424 Non Mining Units 686 576 1,411 1,334
Consolidated Selling expenses 5,531 4,655
15,646 12,701
JULCANI 3Q 2016 3Q 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) 9 5,460 464 - 9 5,942 6 3,709 282 - 41 4,038
Add:
Exploration Expenses (US$000) 4 2,503 213 - 4 2,724 4 2,582 196 -
29 2,811
Commercial Deductions (US$000)
2 1,022 87 - 1 1,112 2 1,241 95 - 16 1,353 Selling Expenses
(US$000) 0 168 14 - 0 183 0 197 15 - 2 215
Cost Applicable to
Sales (US$000) 16 9,153 777 -
15 9,961 12 7,729 588 -
88 8,417 Divide: Volume Sold 21
771,898 726 -
5 Not Applicable 12
597,425 405 - 19
Not Applicable
CAS 776
11.86 1,070
- 2,751 Not
Applicable 993 12.94
1,451 -
4,722 Not Applicable
JULCANI 9M 2016 9M 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)
15 14,545 1,345 - 57 15,963 40 16,398 1,420 - 189 18,047
Add: Exploration Expenses (US$000) 7 7,321 677 - 29 8,035 22
8,944 775 - 103 9,844 Commercial Deductions (US$000) 3 3,892 362 -
20 4,277 11 5,251 447 - 64 5,773 Selling Expenses (US$000) 1 554 51
- 2 608 2 781 68 - 9 860
Cost Applicable to Sales (US$000)
26 26,313 2,436 - 108
28,883 75 31,375 2,710 -
365 34,524 Divide: Volume Sold 31
2,323,633 2,092 -
37 Not Applicable 76
2,471,004 1,804 - 77
NotApplicable
CAS 828 11.32
1,165 - 2,939
Not Applicable
984 12.70
1,502 - 4,739
Not Applicable
MALLAY 3Q 2016 3Q 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) 103
2,476 1,120 1,883
- 5,582 58 1,950 1,313
1,588 - 4,908
Add:
Exploration Expenses (US$000) 33 800 362 609 - 1,804 21 699 470 569
- 1,759 Commercial Deductions (US$000) 42 1,319 572 1,538 - 3,471
29 1,083 732 1,062 - 2,906 Selling Expenses (US$000) 8 185 84 141 -
418 4 147 99 119 - 369
Cost Applicable to Sales (US$000)
186 4,781 2,138 4,171 -
11,275 112 3,878 2,614 3,338
- 9,942 Divide: Volume Sold 234
366,346 1,845 2,277
- Not Applicable 105
277,157 1,737 2,024
- Not Applicable
CAS
794 13.05
1,159 1,832 -
Not Applicable 1,066.11
13.99 1,505
1,649 - Not
Applicable
MALLAY 9M 2016
9M 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) 454
7,157 3,620 5,289
- 16,520 54 5,784 3,848
4,933 - 14,619
Add: Exploration Expenses (US$000) 157 2,475 1,252 1,829 -
5,713 20 2,178 1,449 1,857 - 5,504 Commercial Deductions (US$000)
166 3,578 1,803 4,210 - 9,757 29 2,883 1,920 3,155 - 7,987 Selling
Expenses (US$000) 33 523 265 387 - 1,208 4 418 278 357 - 1,057
Cost Applicable to Sales (US$000) 810 13,734
6,940 11,715 - 33,198 108
11,262 7,494 10,302 - 29,167
Divide: Volume Sold 933
1,094,056 5,415 6,802 -
Not Applicable 105
806,831 4,847 5,501 -
Not Applicable
CAS 868
12.55 1,281
1,722 -
Not Applicable
1,029 13.96
1,546 1,873 -
Not Applicable
ORCOPAMPA 3Q 2016 3Q 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) 24,293
1,136 - - 33
25,461 24,290 813 -
- - 25,102
Add: -
Exploration Expenses (US$000) 11,680 546 - - 16 12,242 9,364 313 -
- - 9,678 Commercial Deductions (US$000) 183 66 - - 8 257 81 - - -
- 81 Selling Expenses (US$000) 249 12 - - 0 261 192 6 - - - 198
Cost Applicable to Sales (US$000) 36,405 1,759
- - 57 38,221 33,926
1,133 - - - 35,059
Divide: Volume Sold 55,191
182,484 - - 21
Not Applicable 53,376 136,573
- - - Not
Applicable
CAS 660
9.64 - -
2,693 Not Applicable
636 8.29 -
- - Not
Applicable
ORCOPAMPA 9M 2016
9M 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) 66,824
3,173 - - 42
70,039 78,317 2,636 -
- - 80,953
Add:
Exploration Expenses (US$000) 29,259 1,389 - - 18 30,666 30,664
1,032 - - - 31,696 Commercial Deductions (US$000) 331 82 - - 9 423
200 0 - - - 200 Selling Expenses (US$000) 569 27 - - 0 596 634 21 -
- - 655
Cost Applicable to Sales (US$000) 96,983
4,671 - - 70 101,724
109,815 3,689 - - -
113,504 Divide: Volume Sold 142,272
524,582 - -
24 Not Applicable 162,333
415,757 - - -
Not Applicable
CAS 682
8.90 - -
2,885
Not Applicable
676 8.87
- - -
Not Applicable
UCHUCCHACUA 3Q 2016
3Q 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
20,552 1,185 990 -
22,747 16 28,758 1,748
825 - 31,347
Add:
Exploration Expenses (US$000) 7 7,336 423 353 - 8,119 3 6,177 375
177 - 6,733 Commercial Deductions (US$000) 8 8,686 491 1,458 -
10,644 5 9,094 565 831 - 10,495 Selling Expenses (US$000) 1 1,014
58 49 - 1,122 0 816 50 23 - 889
Cost Applicable to Sales
(US$000) 36 37,588 2,157 2,850
- 42,632 25 44,845 2,738
1,856 - 49,464 Divide: Volume Sold
51 3,398,654 2,141
1,313 - Not Applicable
23 3,307,909 1,831
815 - Not Applicable
CAS
714 11.06
1,008 2,171 -
Not Applicable
1,047 13.56
1,496 2,277 -
Not Applicable
UCHUCCHACUA 9M 2016
9M 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) 68
66,971 3,855 2,946 - 73,839 18 78,965 4,653
3,837 - 87,473
Add: Exploration Expenses (US$000) 20 19,671
1,132 865 - 21,689 4 17,087 1,007 830 - 18,929 Commercial
Deductions (US$000) 27 28,325 1,620 4,201 - 34,174 5 25,236 1,486
3,958 - 30,685 Selling Expenses (US$000) 3 3,036 175 134 - 3,347 0
2,166 128 105 - 2,399
Cost Applicable to Sales (US$000)
118 118,003 6,782 8,146 -
133,049 27 123,454 7,273 8,731
- 139,486 Divide: Volume Sold
153 10,882,782 6,131
4,041 - Not Applicable 26
8,534,639 4,567 3,230
- Not Applicable
CAS
771 10.84
1,106 2,016 -
Not Applicable
1,058 14.47
1,593 2,703 -
Not Applicable
LA ZANJA 3Q 2016
3Q 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) 22,964
369 - - -
23,333 32,256 940 -
- - 33,196
Add:
Exploration Expenses (US$000) 94 2 - - - 96 10 0 - - - 10
Commercial Deductions (US$000) 16 4 - - - 21 77 12 - - - 90 Selling
Expenses (US$000) 294 5 - - - 299 272 8 - - - 280
Cost
Applicable to Sales (US$000) 23,369 380 -
- - 23,749 32,615 961 -
- - 33,576 Divide: Volume Sold
36,472 40,097 - -
- Not Applicable 35,995
79,267 - -
- Not Applicable
CAS 641
9.47 -
- - Not Applicable
906 12.12
- - -
Not Applicable LA ZANJA
9M 2016 9M 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) 64,726 1,208 - -
- 65,934 86,549 2,826
- - -
89,375
Add: Exploration Expenses (US$000) 101 2 - - - 103 35
1 - - - 36 Commercial Deductions (US$000) 181 12 - - - 193 141 12 -
- - 153 Selling Expenses (US$000) 780 15 - - - 795 927 30 - - - 957
Cost Applicable to Sales (US$000) 65,788 1,237
- - - 67,025 87,652 2,869
- - - 90,521 Divide: Volume Sold
115,760 166,485 -
- - Not Applicable
104,594 255,566 - -
- Not Applicable
CAS
568 7.43 -
- - No
Applicable 838 11.23
- -
- Not Applicable
BROCAL 3Q 2016 3Q 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) 1,600 2,513
2,299 12,747 24,852
44,012 1,370 3,861 2,566
11,403 17,878 37,077
Add:
Exploration Expenses (US$000) - - - - - - - - - - - - Commercial
Deductions (US$000) 1,939 1,974 1,097 9,794 27,281 42,085 1,287
2,646 1,129 5,631 19,477 30,169 Selling Expenses (US$000) 93 146
134 742 1,447 2,562 79 222 147 654 1,026 2,128
Cost Applicable
to Sales (US$000) 3,632 4,634 3,530
23,283 53,580 88,659 2,735 6,729
3,842 17,688 38,380 69,374
Divide: Volume Sold 2,570
215,665 2,426 11,450
11,199 Not Applicable 1,858
403,292 2,436 9,704
7,437 Not Applicable
CAS
1,413 21.49 1,455
2,033 4,785
Not Applicable 1,472
16.68 1,577 1,823
5,161 Not Applicable
BROCAL 9M 2016
9M 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) 5,370
7,645 6,718 30,718
70,449 120,899 2,542 14,007
9,693 31,404 46,358
104,004
Add: Exploration Expenses (US$000) - - - - -
- - - - - - - Commercial Deductions (US$000) 6,541 6,094 3,418
23,747 82,682 122,482 2,922 9,592 4,400 17,719 55,717 90,349
Selling Expenses (US$000) 341 486 427 1,952 4,476 7,681 133 733 507
1,642 2,424 5,439
Cost Applicable to Sales (US$000)
12,252 14,224 10,563 56,417
157,607 251,062 5,597 24,331
14,600 50,765 104,499 199,792
Divide: Volume Sold 9,131
933,000 7,736 32,023
32,834 Not Applicable 4,346
1,756,023 10,869 30,711
19,840 Not Applicable
CAS
1,342 15.25 1,365
1,762 4,800
Not Applicable
1,288 13.86
1,343 1,653 5,267
Not Applicable NON
MINING COMPANIES 3Q 2016 3Q 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) -
- - - -
2,675 - - - -
- 10,252
Add: Selling Expenses
(US$000) - - -
- - 686 -
- - - -
576 Total (US$000) - -
- - - 3,361
- - - -
- 10,828
NON
MINING COMPANIES 9M 2016 9M 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)
- - - - -
8,351 - - - - - 32,757
Add: Selling Expenses
(US$000) - - - -
- 1,411 - -
- - - 1,334 Total
(US$000) - - - -
- 9,762 - -
- - - 34,091
BUENAVENTURA CONSOLIDATED 3Q 2016
3Q 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) 48,989
32,507 5,067 15,620
24,894 129,752 57,995
40,031 5,908 13,816 17,919 145,921
Add: Exploration Expenses
(US$000) 11,819 11,187 997 962 20 24,985 9,402 9,771 1,042 746 29
20,990 Commercial Deductions (US$000) 2,190 13,072 2,248 12,790
27,291 57,590 1,480 14,077 2,521 7,524 19,492 45,094 Selling
Expenses (US$000) 645 1,530 290 932 1,447 5,531 547 1,396 311 797
1,028 4,655
Cost Applicable to Sales (US$000) 63,644
58,295 8,603 30,304 53,651
217,858 69,424 65,274 9,782
22,883 38,468 216,660 Divide: Volume
Sold 94,539 4,975,143
7,138 15,040 11,225 Not
Applicable 91,370 4,801,621
6,409 12,543 7,456
Not Applicable
CAS 673
11.72 1,205 2,015
4,780 Not Applicable
760 13.59
1,526 1,824 5,160
Not Applicable
BUENAVENTURA CONSOLIDATED 9M 2016 9M
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) 137,456
100,699 15,538 38,953
70,548 371,545 167,522
120,615 19,613 40,174
46,546 427,228
Add: Exploration Expenses
(US$000) 29,544 30,859 3,061 2,694 47 66,206 30,745 29,243 3,230
2,688 103 66,008 Commercial Deductions (US$000) 7,249 41,985 7,203
32,158 82,711 171,306 3,307 42,973 8,253 24,832 55,782 135,147
Selling Expenses (US$000) 1,727 4,640 917 2,472 4,478 15,646 1,700
4,149 980 2,104 2,433 12,701
Cost Applicable to Sales
(US$000) 175,976 178,183 26,720
76,277 157,785 624,703 203,273
196,981 32,077 69,798 104,864
641,084 Divide: Volume Sold 268,280
15,924,538 21,374 42,866
32,895 Not Applicable
271,479 14,239,819 22,086
39,442 19,917 Not Applicable
CAS
656 11.19
1,250 1,779 4,797
Not Applicable 749
13.83 1,452
1,770 5,265 Not
Applicable
COIMOLACHE 3Q 2016 3Q
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) 16,681
1,085 - - - 17,766 13,666 1,307
- - - 14,973
Add: Exploration Expenses (US$000) 2,932 191 -
- - 3,123 2,192 210 - - - 2,402 Commercial Deductions (US$000) 114
7 - - - 122 219 18 - - - 237 Selling Expenses (US$000) 240 16 - - -
256 207 20 - - - 227
Cost Applicable to Sales (US$000)
19,967 1,299 - - - 21,267
16,285 1,554 - - - 17,839
Divide: Volume Sold 37,923
162,764 - - -
Not Applicable 33,682 247,769
- - - Not
Applicable
CAS 527
7.98 - -
- Not Applicable
484 6.27 -
- - Not
Applicable COIMOLACHE 9M 2016
9M 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) 43,048
3,192 - - -
46,240 39,023 3,212 -
- - 42,235
Add:
Exploration Expenses (US$000) 6,878 510 - - - 7,388 11,015 907 - -
- 11,922 Commercial Deductions (US$000) 434 40 - - - 474 509 40 - -
- 549 Selling Expenses (US$000) 753 56 - - - 809 647 53 - - - 700
Cost Applicable to Sales (US$000) 51,114 3,798
- - - 54,911 51,194 4,212
- - - 55,406 Divide: Volume Sold
107,327 592,768 - -
- Not Applicable 94,428
579,275 - -
- Not Applicable
CAS 476
6.41
- -
-
Not Applicable
542 7.27
- - -
Not Applicable
APPENDIX 5: ALL-IN SUSTAINING
COST
All-in Sustaining Cost for 3Q16
Buenaventura13Q16 La Zanja3Q16
Tantahuatay3Q16
Attributable
23Q16
Au Ounces Sold BVN 91,908 Au Ounces bought from La Zanja -36,412 Au
Ounces Sold Net 55,497 51,272 37,923 97,907
3Q16
3Q16
3Q16
3Q16
Income Statement & Cash Flow
US$ 000'
US$/Oz Au US$ 000'
US$/Oz Au US$ 000'
US$000'/Oz Au
US$ 000' US$/Oz Au Cost of
Sales3 67,151 1,210 23,180 452 17,766 468 86,573 884 Exploration in
Operating Units 24,889 448 875 17 3,122 82 26,605 272 Royalties
6,143 111 0 0 0 0 6,143 63
Commercial Deductions4
15,484 279 803 16 122 3 15,959 163 Selling Expenses 2,045 37 236 5
256 7 2,273 23 Administrative Expenses5 12,653 228 615 12 746 20
13,279 136 Other Expenses 0 0 2,484 48 2,702 71 2,401 25 Other
Incomes -2,993 -54 -5,589 -109 -3,072 -81 -7,190 -73 Administrative
charges 0 0 1,562 30 354 9 971 10 Sustaining Capex6 17,774 320
9,076 177 9,611 253 26,443 270 By-product Credit -115,724
-2,085 -1,015 -20 -3,373 -89 -117,615 -1,201
All-in
Sustaining Cost 27,422 494 32,227
629 28,234 745 55,842 570
*All-in Sustaining Cost does not include: Depreciation and
Amortization, Stoppage of mining units, Exploration in
non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. 6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
All-in
Sustaining Cost for 3Q15
Buenaventura13Q15 La Zanja3Q15
Tantahuatay
3Q15
Attributable Production2
3Q15
Au Ounces Sold BVN 92,866 Au Ounces bought from La Zanja -35,879 Au
Ounces Sold Net 56,987 32,990 33,682 87,996
3Q15
3Q15
3Q15
3Q15
Income Statement & Cash Flow US$ 000'
US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$
000' US$/Oz Au Cost of Sales3
76,109 1,336 29,950 908 14,973 445 98,004 1,114 Exploration in
Operating Units 20,982 368 137 4 2,402 71 22,018 250 Royalties
5,302 93 0 0 0 0 5,302 60
Commercial Deductions4
14,852 261 855 26 237 7 15,401 175 Selling Expenses 1,724 30 277 8
227 7 1,962 22 Administrative Expenses5 11,516 202 459 14 436 13
11,934 136 Other Expenses 0 0 3,525 107 2,887 86 3,028 34 Other
Incomes -965 -17 -6,704 -203 -3,422 -102 -5,894 -67 Other
administrative charges 0 0 3,031 92 233 7 1,702 19 Sustaining
Capex6 12,643 222 12,488 379 17,092 507 26,122 297
By-product Credit -74,363 -1,305 -1,333 -40 -3,590 -107 -76,510
-869
All-in Sustaining Cost 67,800
1,190 42,684 1,294 31,476 935
103,069 1,171 *All-in Sustaining Cost does not
include: Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining
concessions, development costs, property, plant and equipment.
All-in
Sustaining Cost for 9M16
Buenaventura19M16 La Zanja9M16
Tantahuatay
9M16
Attributable 2
9M16
Au Ounces Sold BVN 258,386 Au Ounces bought from La Zanja -114,997
Au Ounces Sold Net 143,389 107,702 107,327 243,568
9M16
9M16
9M16
9M16
Income Statement & Cash Flow US$ 000'
US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$
000' US$/Oz Au Cost of Sales3
342,087 2,386 60,004 557 46,240 431 392,465 1,611 Exploration in
Operating Units 66,103 461 2,147 20 7,388 69 70,204 288 Royalties
15,499 108 0 0 0 0 15,499 64
Commercial Deductions4
48,833 341 2,611 24 474 4 50,409 207 Selling Expenses 10,738 75 732
7 809 8 11,450 47 Administrative Expenses5 38,122 266 1,641 15
1,799 17 39,714 163 Other Expenses 0 0 6,578 61 4,840 45 5,431 22
Other Incomes -5,162 -36 -12,745 -118 -5,892 -55 -14,287 -59
Administrative charges 0 0 1,959 18 858 8 1,383 6 Sustaining Capex6
33,852 236 11,897 110 18,483 172 47,575 195 By-product
Credit -458,672 -3,199 -2,801 -26 -10,269 -96 -464,275 -1,906
All-in Sustaining Cost 91,401 637
72,022 669 64,731 603 155,569
639
*All-in Sustaining Cost does not include:
Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. 6. Sustaining Capex + Growth Capex equals
Acquisitions of mining concessions, development costs, property,
plant and equipment.
All-in
Sustaining Cost for 9M15
Buenaventura19M15 La Zanja9M15
Tantahuatay9M15
Attributable
Production29M15
Au Ounces Sold BVN 283,085 Au Ounces bought from La Zanja -104,477
Au Ounces Sold Net 178,608 100,618 94,428 269,857
9M15
9M15
9M15
9M15
Income Statement & Cash Flow US$ 000'
US$/Oz Au US$ 000' US$/Oz
Au US$ 000' US$/Oz Au US$
000' US$/Oz Au Cost of Sales3
228,941 1,282 87,133 866 42,235 447 292,108 1,082 Exploration in
Operating Units 66,056 370 8,446 84 11,922 126 75,318 279 Royalties
16,902 95 0 0 0 0 16,902 63
Commercial Deductions4
44,711 250 2,494 25 549 6 46,254 171 Selling Expenses 5,088 28 954
9 700 7 5,875 22 Administrative Expenses5 35,644 200 1,200 12 1,364
14 36,827 136 Other Expenses 0 0 10,156 101 5,635 60 7,648 28 Other
Incomes -3,983 -22 -16,039 -159 -7,022 -74 -15,308 -57 Other
administrative charges 0 0 5,472 54 126 1 2,954 11 Sustaining
Capex6 22,652 127 26,024 259 32,644 346 49,549 184
By-product Credit -226,736 -1,269 -3,969 -39 -9,122 -97 -232,500
-862
All-in Sustaining Cost 189,275
1,060 121,870 1,211 79,032 837
285,626 1,058 *All-in Sustaining Cost does not
include: Depreciation and Amortization, Stoppage of mining units,
Exploration in non-operating areas.
Notes:
1. Non-consolidated financial statements for Compañia De Minas
Buenaventura S.A.A. 2. Considers 100% from Compañia De Minas
Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from
Tantahuatay. 3. For Buenaventura does not consider purchase of
concentrate from La Zanja. 4. For all metals produced. 5. For
Buenaventura, does not consider management services charged to
subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining
concessions, development costs, property, plant and equipment.
APPENDIX 6
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Financial Position As of
September 30, 2016 and December 31, 2015 2016
2015 Assets US$(000) US$(000)
Current assets Cash and cash equivalents 117,243 78,519
Trade and other accounts receivable, net 286,035 219,862 Inventory,
net 139,127 101,473 Income tax credit 17,607 45,919 Prepaid
expenses 6,860 8,231
Total current assets 566,872
454,004 Assets classified as held for sale 4,421 15,592
571,293 469,596 Non-current assets
Trade and other accounts receivable, net 167,869 162,567 Income tax
credit 4,092 - Inventory, net 5,655 26,029 Investment in associates
1,941,603 2,043,983 Mining concessions, development costs,
property, plant and equipment, net 1,854,681 1,747,624 Investment
properties, net 10,293 10,719 Deferred income tax asset, net 30,653
41,574 Prepaid expenses 30,647 29,235 Other assets 17,814 15,854
Total non-current assets 4,063,307 4,077,585
Total assets 4,634,600 4,547,181
Liabilities and shareholders’ equity
Current liabilities Bank loans 54,547 285,302 Trade and
other accounts payable 240,000 247,114 Provisions 60,805 49,829
Income tax payable 4,516 2,444 Embedded derivatives for concentrate
sales, net 4,153 1,694 Hedge derivative financial instruments 219
10,643 Financial obligations 38,945 33,394
Total current
liabilities 403,185 630,420 Liabilities
directly associated with assets classified as held for sale 8,768
20,611
411,953 651,031 Non-current
liabilities Trade and other accounts payable 17,266 15,057
Provisions 144,752 141,885 Financial obligations 561,712 320,316
Contingent consideration liability 20,524 16,994 Deferred income
tax liability, net 10,206 12,662
Total non-current
liabilities 754,460 506,914
Total liabilities 1,166,413 1,157,945
Shareholders’ equity Capital stock 750,497 750,497
Investment shares 791 1,396 Additional paid-in capital 218,450
219,055 Legal reserve 162,744 162,714 Other reserves 269 269
Retained earnings 2,103,608 2,024,895 Other reserves of equity
(313) 2,240
Shareholders’ equity, net attributable to owners of
the parent 3,236,046 3,161,066 Non-controlling
interest 232,141 228,170
Total shareholders’ equity
3,468,187 3,389,236 Total
liabilities and shareholders’ equity 4,634,600
4,547,181 Compañía de Minas Buenaventura
S.A.A. and Subsidiaries Consolidated Statement of profit or
loss For the three-month and nine-month periods ended
September 30, 2016 and 2015
For the three-month period ended
September 30,
For the nine-month period ended
September 30,
2016 2015 2016 2015 US$(000)
US$(000) US$(000) US$(000) Continuing
operations Operating income Net sales of goods 257,484
191,869 746,310 626,503 Net sales of services 5,598 10,391 16,859
42,698 Royalty income 5,947 8,720 18,493 25,200
Total operating
income 269,029 210,980 781,662 694,401
Operating
costs Cost of sales of goods, excluding depreciation and
amortization (127,210) (130,505) (363,194) (380,910) Cost of
services, excluding depreciation and amortization (2,542) (15,416)
(8,351) (46,318) Depreciation and amortization (45,361) (59,564)
(138,041) (169,078) Exploration in operating units (24,985)
(20,990) (66,206) (66,008) Mining royalties (7,332) (6,937)
(20,375) (21,844)
Total operating costs (207,430) (233,412)
(596,167) (684,158)
Gross profit
61,599 (22,432) 185,495 10,243
Operating expenses,
net Administrative expenses (16,879) (19,838) (58,048) (58,806)
Exploration in non-operating areas (6,355) (5,259) (14,824)
(25,660) Selling expenses (5,531) (4,655) (15,646) (12,701)
Reversal (expense) for provision for contingencies (331) 201 (129)
(280) Provision for impairment of long–lived assets - - - (3,803)
Other, net 2,241 (2,225) 10,561 (2,445)
Total operating
expenses, net (26,855) (31,776) (78,086) (103,695)
Operating profit (loss) 34,744 (54,208) 107,409 (93,452)
Other income (expense), net Share in results of
associates under equity method (11,850) 13,381 37,222 61,621
Financial income 1,749 827 6,061 2,441 Net gain (loss) from
currency exchange difference (4,233) (3,936) 1,255 (7,517)
Financial costs (10,911) (6,934) (26,585) (21,078)
Total other
income (expense), net (25,245) 3,338 17,953 35,467
Profit (loss) before income tax 9,499 (50,870) 125,362
(57,985) Current income tax (14,054) (3,176) (32,359) (10,556)
Deferred income tax (17,075) 17,473 (5,266) 14,490
Profit (loss) from continuing operations
(21,630) (36,573) 87,737 (54,051)
Discontinued
operations Profit (loss) from discontinued operations (6,736)
(2,433) (6,382) (6,197)
Net profit (28,366) (39,006) 81,355
(60,248)
Attributable to: Owners of the parent
(24,651) (23,229) 82,372 (24,656) Non-controlling interest (3,715)
(15,777) (1,017) (35,592) (28,366) (39,006) 81,355 (60,248)
Basic and diluted profit (loss) per share attributable to equity
holders of the parent, stated in U.S. dollars (0.10)
(0.09) 0.32 (0.10)
Profit (loss) for continuing
operations, basic and diluted per share attributable to
equity holders of the parent, expressed in U.S. dollars (0.07)
(0.08) 0.35 (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
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statements of cash Flows For the three-month
and nine-month periods ended September 30, 2016 and 2015
For the three-month period ended
September 30,
For the nine-month period ended
September 30,
2016 2015 2016 2015 US$(000)
US$(000) US$(000) US$(000) Operating
activities Proceeds from sales 262,108 239,513 677,953 721,967
Proceeds from dividends 3,142 1,816 139,926 4,775 Value Added Tax
recovered 34,850 21,911 105,722 74,784 Royalty received 5,947 7,151
27,005 28,966 Interest received 52 700 1,766 2,497 Payments to
suppliers and third-parties (190,615) (192,714) (523,634) (553,471)
Payments to employees (36,065) (40,892) (105,219) (127,920)
Payments of interest (1,068) (7,684) (18,941) (17,283) Payment of
income taxes (2,705) (6,125) (14,166) (17,387) Payments of mining
royalties (6,053) (5,525) (15,409) (17,407)
Net cash and
cash equivalents provided by operating activities 69,593 18,151
275,003 99,521
Investing activities Proceeds from
sales of mining concessions, property, plant and equipment 3,352
569 5,651 2,589 Proceeds from loan to third parties - 141 - 141
Acquisitions of mining concessions, development costs, property,
plant and equipment (118,296) (84,895) (239,664) (166,527) Loans
granted to associates - (20,800) - (20,800) Opening of time
deposits - (7,350) - (7,350)
Net cash and cash
equivalents used in investing activities (114,944) (112,335)
(234,013) (191,947)
Financing activities Proceeds
from bank loans - 150,000 175,851 240,000 Payments of bank loans
(3,760) (50,000) (415,760) (90,000) Proceeds from financial
obligations 210 - 275,210 10,000 Payments of financial obligations
(8,297) (20,784) (25,180) (29,870) Dividends paid to
non-controlling interest (1,649) (2,140) (5,709) (8,048)
Acquisition of non-controlling interest (4,152) - (5,459) -
Increase of restricted bank accounts (2,023) - (4,011) - Repurchase
of treasury shares (1,210) - (1,210) - Payments of dividends - (70)
(9) (70)
Net cash and cash equivalents provided by (used
in) financing activities (20,881) 77,006 (6,277) 122,012
Net increase (decrease) in cash and cash equivalents during the
period (66,232) (17,178) 34,713 29,586 Cash and cash equivalents at
the beginning of the period 179,464 125,276 78,519 78,512
Cash and cash equivalents at period-end
113,232 108,098 113,232 108,098 Unrealized gain
(loss) for changes in the fair value of hedge financial instruments
827 (154) (2,911) (2,495) Changes in the asset for closure of
mining units - 12,272 8,433 53,988
For the three-month period ended
September 30,
For the nine-month period ended
September 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 (24,651) (23,229)
82,372 (24,656)
Plus (less): Depreciation and
amortization 45,361 61,377 138,041 179,185 Net loss (gain) on sales
of mining concessions, property, plant and equipment - 10,667 2,072
13,620 Accretion expense of provision for closure of mining units
and exploration projects 1,112 96 2,810 2,931 Loss (income)
attributable to non-controlling interest (3,715) (15,777) (1,017)
(35,592) Net share in results of associates 11,850 (13,381)
(37,222) (61,621) Provision for estimated fair value of embedded
derivatives related to concentrate 20,651 (5,752) (9,298) (6,347)
sales and adjustments on open liquidations Deferred income tax
expense (income) 17,075 (17,473) 5,266 (14,490) Reversal
(provision) for impairment loss of inventories (291) 8,928 (9,145)
13,710 Net loss (gain) from currency exchange difference 4,233
3,945 (1,255) 7,525 Provision for impairment of long–lived assets -
- - 3,803 Other net (765) (513) (1,352) 3,326
Net changes
in operating assets and liabilities: Decrease (increase) in
operating assets - Trade and other accounts receivable (32,057)
22,496 (68,235) 51,970 Inventories (8,598) (12,810) (6,777) 11,656
Income tax credit 6,219 5,570 24,220 5,390 Prepaid expenses 3,809
4,543 (3,115) 7,242 Increase (decrease) in operating liabilities -
Trade and other accounts payable 38,245 (17,892) 21,908 (35,210)
Provisions (12,621) 5,845 (4,196) (26,749) Income tax payable 594
(305) - (947) Proceeds from dividends 3,142 1,816 139,926 4,775
Net cash and cash equivalents
provided by operating activities 69,593 18,151 275,003 99,521
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161028005339/en/
Compañia de Minas Buenaventura S.A.A.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
Borja212-406-3691/3693buenaventura@i-advize.comorVisit our
website:www.buenaventura.com/ir
Compania De Minas Buenav... (NYSE:BVN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Compania De Minas Buenav... (NYSE:BVN)
Historical Stock Chart
From Apr 2023 to Apr 2024