Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
Buenaventura’s 3Q20 equity gold production was 81,595 ounces, compared to 121,466 ounces produced in 3Q19. This was primarily due to a 26% percent production decrease at Tambomayo, as these operations reached full
production capacity in September, and a 44% production decrease at Yanacocha due to continued effects of COVID-19.
Silver equity production decreased by 47% year on year, primarily due to a 71% decrease in production at the Uchucchacua mine, as this mine did not achieve full capacity during the third quarter 2020. Lead equity
production decreased by 20% year on year, primarily due to an 84% decrease at the Uchucchacua mine. Zinc equity production increased by 22% year on year, primarily due to a 148% production increase at El Brocal.
3Q20 year on year gold production at Tambomayo decreased 26% mainly due to a reduction in ore treated due to COVID-19 restrictions. However, full capacity was achieved in September. Cost Applicable to Sales (CAS)
increased to 821 US$/Oz in 3Q20, compared to 695 US$/Oz in 3Q19, primarily due to at 33% decrease in volume sold.
The increase in 3Q20 gold production at Orcopampa was mainly due to higher ore grade (a 46% year on year improvement). Cost Applicable to Sales (CAS) decreased to 754 US$/Oz in 3Q20, compared to 1,699 US$/Oz in 3Q19,
primarily due to a 52% increase in volume sold.
Operating costs for those months of suspended activities without production due to COVID-19 have been recognized as “Unabsorbed costs due to production stoppage.” In the case of Orcopampa, US$ 3.2 million has been
classified as “Unabsorbed cost” for the 9M20.
La Zanja (53.06% owned by Buenaventura)
Production
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Gold
|
Oz
|
5,087
|
6,224
|
-18%
|
11,411
|
25,283
|
-55%
|
Silver
|
Oz
|
29,728
|
20,384
|
46%
|
57,558
|
80,988
|
-29%
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Gold
|
US$/Oz
|
1,689
|
1,039
|
62%
|
1,706
|
1,095
|
56%
|
3Q20 gold production decreased by 18% year on year despite an increased throughput, primarily due to a lower ore grade. 3Q20 Cost Applicable to Sales (CAS) was 1,689 US$/Oz; an 62% increase compared to 1,039 US$/Oz
in 3Q19, mainly due to a 16% decrease in volume sold.
Operating costs for those months of suspended activities without production due to COVID-19 have been recognized as “Unabsorbed cost due to production stoppage.” In the case of La Zanja, US$ 0.2 million has been
classified as “Unabsorbed cost” for the 9M20.
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 6 of 27
|
Coimolache (40.10% owned by Buenaventura)
Production
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Gold
|
Oz
|
26,473
|
49,683
|
-47%
|
62,517
|
110,722
|
-44%
|
Silver
|
Oz
|
187,379
|
239,053
|
-22%
|
454,337
|
460,980
|
-1%
|
Cost Applicable to Sales
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Gold
|
US$/Oz
|
800
|
630
|
27%
|
884
|
679
|
30%
|
3Q20 gold production at Coimolache decreased by 47% year on year, primarily due to a reduction in ore treated due to COVID-19 restrictions, full capacity was achieved in September. 3Q20 Cost Applicable to Sales (CAS)
was 800 US$/Oz; a 27% increase compared to 630 US$/Oz in 3Q19, mainly due to a 47% decrease in volume sold.
Uchucchacua (100% owned by Buenaventura)
Production
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Silver
|
Oz
|
790,313
|
2,684,854
|
-71%
|
3,725,784
|
7,764,583
|
-52%
|
Zinc
|
MT
|
928
|
5,101
|
-82%
|
3,750
|
15,099
|
-75%
|
Lead
|
MT
|
756
|
4,708
|
-84%
|
3,782
|
13,461
|
-72%
|
Cost Applicable to Sales
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Silver
|
US$/Oz
|
27.65
|
11.60
|
138%
|
19.46
|
11.10
|
75%
|
3Q20 silver production at Uchucchacua decreased by 71%, primarily due to a reduction in ore treated due to COVID-19 restrictions. Uchucchacua did not achieve full capacity during the third quarter 2020 mainly due to a
reduced workforce and shortage of workers required to successfully operate at full capacity. Cost Applicable to Sales (CAS) in 3Q20 increased by 138% year on year.
Operating costs for those months of suspended activities without production due to COVID-19 have been recognized as “Unabsorbed costs due to production stoppage”. In the case of Uchucchacua US$ 6.0 million and US$ 8.9
million have been classified as “Unabsorbed costs” during 3Q20 and 9M20, respectively.
Julcani (100% owned by Buenaventura)
Production
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Silver
|
Oz
|
323,495
|
658,883
|
-51%
|
1,010,224
|
1,959,780
|
-48%
|
Cost Applicable to Sales
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Silver
|
US$/Oz
|
11.10
|
13.26
|
-16%
|
14.65
|
13.59
|
8%
|
3Q20 silver production decreased 51% year on year due to a 62% reduction in ore treated despite a 6% increase in silver grades. Silver production for the third quarter 2020 includes 53,071 silver ounces derived from
tailings dam retreatment. 3Q20 Cost Applicable to Sales (CAS) of 11.10 US$/Oz was 16% lower than 13.26 US$/Oz in 3Q19, mainly due to the retreatment of tailings dams.
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 7 of 27
|
As a result of suspended activities during this year due to COVID-19, operating costs during those months without production have been recognized as “Unabsorbed costs due to production stoppage.” In the case of
Julcani, US$ 3.2 million and US$5.0 million have been classified as “Unabsorbed costs” for the 3Q20 and 9M20, respectively.
El Brocal (61.43% owned by Buenaventura)
Production
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Copper
|
MT
|
9,190
|
12,707
|
-28%
|
21,356
|
31,234
|
-32%
|
Zinc
|
MT
|
22,277
|
8,968
|
148%
|
41,719
|
31,911
|
31%
|
Silver
|
Oz
|
1,479,327
|
993,883
|
49%
|
2,406,087
|
3,207,550
|
-25%
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
3Q20
|
3Q19
|
Var %
|
9M20
|
9M19
|
Var %
|
Zinc
|
US$/MT
|
1,807
|
1,646
|
10%
|
1,803
|
2,007
|
-10%
|
Copper
|
US$/MT
|
4,843
|
4,987
|
-3%
|
5,022
|
5,400
|
-7%
|
3Q20 copper production for El Brocal decreased by 28% year on year due to a 32% decrease in ore treated, primarily due to a reduced workforce resulting from COVID-19 restrictions, despite higher ore grades (2%) and a
higher recovery rate (3%) during the quarter. 3Q20 zinc production increased by 148% year on year as a result of a 44% increase in ore treated and a 53% increase in grades compared to the same period in 2019.
In 3Q20, Copper Cost Applicable to Sales (CAS) was in-line with that of 3Q19. Zinc CAS increased by 10% year on year for the third quarter 2020, mainly due to increased commercial deductions resulting from less
favorable market conditions as compared to 2019.
Operating costs for those months of suspended activities without production due to COVID-19 have been recognized as “Unabsorbed costs due to production stoppage”. In the case of El Brocal, US$ 9.2 million was
classified as “Unabsorbed costs” for the 9M20.
De-Bottlenecking Program – 2020 Update
|
|
Buenaventura’s De-Bottlenecking Program progressed well during the third quarter 2020, particularly considering the current challenging circumstances, and successfully generated incremental EBITDA as is illustrated below:
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 8 of 27
|
General and Administrative Expenses
|
|
3Q20 General and Administrative expenses were US$ 16.8 million; a 4% decrease as compared to US$ 17.4 million in 3Q19. This is due to the Company´s successful cost containment and expense reduction during the quarter,
which partially offset the adverse effects of Peru’s State of Emergency.
Exploration in Non-Operating Areas
|
|
3Q20 exploration costs in Non-Operating Areas were US$ 1.8 million, compared with US$ 2.4 million in 3Q19. During the period, Buenaventura focused exploration efforts primarily on its Emperatriz project, amounting to
US$ 1.2 million in exploration costs during 3Q20.
Share in Associated Companies
|
|
During 3Q20, Buenaventura’s share in associated companies was US$ 34.2 million, compared to US$ 37.8 million reported in 3Q19, comprised of:
Share in the Result of Associates
(in millions of US$)
|
3Q20
|
3Q19
|
Var
|
9M20
|
9M19
|
Var
|
Cerro Verde
|
22.7
|
8.9
|
154%
|
24.3
|
58.6
|
-59%
|
Yanacocha
|
8.1
|
23.4
|
-65%
|
-9.0
|
44.3
|
N.A.
|
Coimolache
|
3.9
|
5.4
|
-28%
|
1.5
|
7.1
|
-80%
|
Others
|
-0.5
|
0.2
|
N.A.
|
-0.7
|
-0.3
|
127%
|
Total
|
34.2
|
37.8
|
-9%
|
16.1
|
110.0
|
-85%
|
YANACOCHA
At Yanacocha, which is 43.65% owned by Buenaventura, 3Q20 gold production was 79,874 ounces, 34,865 ounces of which were attributable to Buenaventura. This represents a 44% decrease as compared to the 142,654 ounces
produced in 3Q19; 62,268 ounces of which were attributable to Buenaventura.
For 9M20, gold production was 269,503, 117,638 ounces of which were attributable to Buenaventura; a 37% decrease as compared to 426,153 ounces in 9M19, 186,016 ounces of which were attributable to Buenaventura.
In 3Q20, Yanacocha reported a net income of US$ 18.6 million, compared to a net income of US$ 53.7 million reported in 3Q19. CAS in 3Q20 was 1,036 US$/Oz; a 40% increase compared to 741 US$/Oz in 3Q19, mainly due to a
46% decrease in volume sold.
Capital expenditures at Yanacocha were US$ 21.6 million in 3Q20.
The Yanacocha Sulfides project
•
|
Currently in the Definitive Feasibility Stage
|
•
|
Study work and engineering continue to successfully progress remotely
|
•
|
Decision to proceed expected in 2021.
|
•
|
The Environmental Impact Assessment study was approved in March 2019.
|
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 9 of 27
|
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 3Q20 copper production was 98,718 MT, 19,329 MT of which is attributable to Buenaventura; a decrease as compared to 106,567 MT produced in 3Q19, 20,866 MT of which was
attributable to Buenaventura.
9M20 copper production was 271,549 MT; 53,169 MT of which was attributable to Buenaventura. 9M19 copper production was 333,163 MT; 65,233 MT of which was attributable to Buenaventura.
Cerro Verde reported a 3Q20 net income of US$ 115.8 million compared to net income of US$ 45.5 million in 3Q19. This is primarily due to a US$ 136.1 million net sales increase primarily attributed to higher average
realized copper price (US$ 3.20 per pound in the third quarter of 2020, compared to US$2.47 per pound in the third quarter of 2019). This was partially offset by a higher income tax expense of US$66.3 million.
Capital expenditures at Cerro Verde were US$ 28.5 million in 3Q20.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), 3Q20 attributable contribution to net income was US$ 3.9 million, as compared to positive US$ 5.4 million in 3Q19.
***
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*, 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 2019 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 and related conference call contain, in addition to historical information, forward-looking statements including statements related to the Company’s ability to manage its business and
liquidity during and after the COVID-19 pandemic, the impact of the COVID-19 pandemic on the Company’s results of operations, including net revenues, earnings and cash flows, the Company’s ability to reduce costs and capital spending in
response to the COVID-19 pandemic if needed, the Company’s balance sheet, liquidity and inventory position throughout and following the COVID-19 pandemic, the Company’s prospects for financial performance, growth and achievement of its
long-term growth algorithm following the COVID-19 pandemic, future dividends and share repurchases.
This press release may also 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.
|
|
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 10 of 27
|
**Tables to follow**
APPENDIX 1
Equity Participation in
Subsidiaries and Associates (as of September 30, 2020)
|
|
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*
|
61.43
|
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
|
|
(*) Consolidated
(**) Equity Accounting
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 11 of 27
|
APPENDIX 2
Gold Production
|
|
14
|
|
|
17
|
|
|
Mining Unit
|
Operating Results
|
Unit
|
3Q20
|
3Q19
|
△%
|
9M20
|
9M19
|
△ %
|
Underground
|
|
|
|
|
|
|
|
|
Tambomayo
|
Ore Milled
|
DMT
|
112,489
|
154,461
|
-27%
|
359,305
|
458,555
|
-22%
|
Ore Grade
|
Gr/MT
|
5.21
|
5.43
|
-4%
|
5.04
|
5.76
|
-12%
|
Recovery Rate
|
%
|
85.53
|
80.65
|
6%
|
82.02
|
82.91
|
-1%
|
Ounces Produced*
|
Oz
|
16,108
|
21,740
|
-26%
|
47,778
|
70,384
|
-32%
|
Orcopampa
|
Ore Milled
|
DMT
|
28,386
|
28,704
|
-1%
|
64,078
|
91,096
|
-30%
|
Ore Grade
|
Gr/MT
|
17.01
|
11.67
|
46%
|
15.31
|
9.58
|
60%
|
Recovery Rate
|
%
|
97.25
|
96.90
|
0%
|
97.38
|
96.66
|
1%
|
Ounces Produced*
|
Oz
|
15,096
|
10,721
|
41%
|
30,869
|
27,434
|
13%
|
Open Pit
|
|
|
|
|
|
|
|
|
La Zanja
|
Ounces Produced
|
Oz
|
5,087
|
6,224
|
-18%
|
11,411
|
25,283
|
-55%
|
Tantahuatay
|
Ounces Produced
|
Oz
|
26,473
|
49,683
|
-47%
|
62,517
|
110,722
|
-44%
|
(*) Includes ounces from retreatment of tailing dams
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver Production
|
|
|
|
|
|
|
|
Mining Unit
|
Operating Results
|
Unit
|
3Q20
|
3Q19
|
△%
|
9M20
|
9M19
|
△ %
|
Underground
|
|
|
|
|
|
|
|
|
Tambomayo
|
Ore Milled
|
DMT
|
112,489
|
154,461
|
-27%
|
359,305
|
458,555
|
-22%
|
Ore Grade
|
Oz/MT
|
4.24
|
4.82
|
-12%
|
4.13
|
4.26
|
-3%
|
Recovery Rate
|
%
|
83.07
|
86.20
|
-4%
|
80.35
|
87.74
|
-8%
|
Ounces Produced
|
Oz
|
395,913
|
641,247
|
-38%
|
1,191,454
|
1,714,523
|
-31%
|
Uchucchacua
|
Ore Milled
|
DMT
|
84,772
|
362,020
|
-77%
|
402,544
|
961,053
|
-58%
|
Ore Grade
|
Oz/MT
|
10.14
|
9.03
|
12%
|
10.12
|
9.37
|
8%
|
Recovery Rate
|
%
|
91.97
|
82.16
|
12%
|
91.50
|
86.25
|
6%
|
Ounces Produced
|
Oz
|
790,313
|
2,684,854
|
-71%
|
3,725,784
|
7,764,583
|
-52%
|
Julcani
|
Ore Milled
|
DMT
|
30,048
|
31,507
|
-5%
|
62,973
|
92,550
|
-32%
|
Ore Grade
|
Oz/MT
|
11.72
|
21.65
|
-46%
|
16.87
|
21.98
|
-23%
|
Recovery Rate
|
%
|
91.90
|
96.59
|
-5%
|
95.08
|
96.34
|
-1%
|
Ounces Produced
|
Oz
|
323,495
|
658,883
|
-51%
|
1,010,224
|
1,959,780
|
-48%
|
Marcapunta
|
Ore Milled
|
DMT
|
525,419
|
767,096
|
-32%
|
1,187,428
|
2,116,351
|
-44%
|
Ore Grade
|
Oz/MT
|
0.70
|
0.90
|
-22%
|
0.70
|
0.79
|
-11%
|
Recovery Rate
|
%
|
72.61
|
61.70
|
18%
|
68.50
|
61.93
|
11%
|
Ounces Produced
|
Oz
|
267,271
|
423,778
|
-37%
|
572,944
|
1,040,034
|
-45%
|
Open Pit
|
|
|
|
|
|
|
|
|
Tajo Norte
|
Ore Milled
|
DMT
|
919,572
|
636,418
|
44%
|
2,009,589
|
2,590,782
|
-22%
|
Ore Grade
|
Oz/MT
|
1.78
|
1.49
|
19%
|
1.27
|
1.32
|
-4%
|
Recovery Rate
|
%
|
74.17
|
60.16
|
23%
|
71.58
|
63.21
|
13%
|
Ounces Produced
|
Oz
|
1,212,056
|
570,105
|
113%
|
1,833,143
|
2,167,515
|
-15%
|
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 12 of 27
|
Zinc Production
|
|
|
|
|
|
|
|
Mining Unit
|
Operating Results
|
Unit
|
3Q20
|
3Q19
|
△%
|
9M20
|
9M19
|
△ %
|
Underground
|
|
|
|
|
|
|
|
|
Tambomayo
|
Ore Milled
|
DMT
|
112,489
|
154,461
|
-27%
|
359,305
|
458,555
|
-22%
|
Ore Grade
|
%
|
2.19
|
2.02
|
8%
|
1.81
|
2.05
|
-12%
|
Recovery Rate
|
%
|
52.51
|
79.38
|
-34%
|
52.11
|
77.86
|
-33%
|
MT Produced
|
MT
|
1,292
|
2,478
|
-48%
|
3,390
|
7,316
|
-54%
|
Uchucchacua
|
Ore Milled
|
DMT
|
84,772
|
362,020
|
-77%
|
402,544
|
961,053
|
-58%
|
Ore Grade
|
%
|
1.81
|
2.23
|
-19%
|
1.58
|
2.41
|
-34%
|
Recovery Rate
|
%
|
60.37
|
63.25
|
-5%
|
58.95
|
65.15
|
-10%
|
MT Produced
|
MT
|
928
|
5,101
|
-82%
|
3,750
|
15,099
|
-75%
|
Open Pit
|
|
|
|
|
|
|
|
|
Tajo Norte
|
Ore Milled
|
DMT
|
919,572
|
636,418
|
44%
|
2,009,589
|
2,590,782
|
-22%
|
Ore Grade
|
%
|
4.09
|
2.68
|
53%
|
3.72
|
2.26
|
64%
|
Recovery Rate
|
%
|
59.28
|
52.60
|
13%
|
55.82
|
54.45
|
3%
|
MT Produced
|
MT
|
22,277
|
8,968
|
148%
|
41,719
|
31,911
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper Production
|
|
|
|
|
|
|
|
Mining Unit
|
Operating Results
|
Unit
|
3Q20
|
3Q19
|
△%
|
9M20
|
9M19
|
△ %
|
Underground
|
|
|
|
|
|
|
|
|
Marcapunta
|
Ore Milled
|
DMT
|
525,419
|
767,096
|
-32%
|
1,187,428
|
2,116,351
|
-44%
|
Ore Grade
|
%
|
1.90
|
1.87
|
2%
|
1.94
|
1.68
|
16%
|
Recovery Rate
|
%
|
91.86
|
88.76
|
3%
|
92.63
|
88.01
|
5%
|
MT Produced
|
MT
|
9,190
|
12,707
|
-28%
|
21,356
|
31,234
|
-32%
|
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 13 of 27
|
APPENDIX 3: Adjusted EBITDA Reconciliation (in thousand US$)
|
3Q20
|
3Q19
|
9M20
|
9M19
|
Net Income
|
27,371
|
737
|
-90,480
|
30,415
|
Add / Subtract:
|
41,085
|
57,618
|
178,601
|
102,760
|
Depreciation and Amortization in cost of sales
|
56,856
|
60,211
|
130,495
|
168,729
|
Share in associated companies by the equity method, net
|
-34,212
|
-37,771
|
-16,066
|
-109,988
|
Interest expense
|
7,410
|
11,994
|
23,130
|
33,679
|
Impairment of inventories
|
-5,787
|
1,106
|
8,670
|
-1,017
|
Provision of bonuses and compensations
|
2,541
|
2,276
|
10,569
|
12,058
|
Depreciation and Amortization in other, net
|
874
|
2,507
|
2,749
|
4,286
|
Loss (gain) on currency exchange difference
|
776
|
1,455
|
3,891
|
1,672
|
Profit from discontinued operations
|
1,468
|
2,129
|
4,280
|
6,643
|
Provision (credit) for income tax, net
|
10,824
|
16,139
|
12,659
|
-6,113
|
Depreciation and amortization in administration expenses
|
26
|
28
|
77
|
556
|
Workers' participation provision
|
-928
|
-1,611
|
-2,240
|
-5,656
|
Interest income
|
1,237
|
-827
|
387
|
-2,089
|
Provision (reversal) for contingencies
|
-
|
-18
|
-
|
-
|
EBITDA Buenaventura Direct Operations
|
68,456
|
58,355
|
88,121
|
133,175
|
EBITDA Yanacocha (43.65%)
|
29,800
|
49,434
|
67,373
|
119,163
|
EBITDA Cerro Verde (19.58%)
|
73,356
|
42,553
|
118,889
|
187,783
|
EBITDA Coimolache (40.095%)
|
12,284
|
17,870
|
24,122
|
32,345
|
EBITDA Buenaventura + All Associates
|
183,896
|
168,212
|
298,505
|
472,466
|
*Cerro Verde’s EBITDA now considers D&A related to the capitalization of the stripping.
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision
for workers’ profit sharing and provision for long-term officers’ compensation.
EBITDA (including associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3)
Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity
investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not
consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an
alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 14 of 27
|
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.
Operations’ Cost applicable to sales does not include operating cost for those months during which Buenaventura’s operations were suspended due to COVID-19, as these have been classified as “Unabsorbed costs due to
production stoppage” within the financial statements.
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.
|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2020 Results
Page 15 of 27
|
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 September 30
|
|
|
For the 9 months ended September 30
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
(in thousands of US$)
|
|
Consolidated Cost of sales excluding depreciation and amortization
|
|
|
112,052
|
|
|
|
129,238
|
|
|
|
259,032
|
|
|
|
373,062
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Exploration in units in operation
|
|
|
7,598
|
|
|
|
10,119
|
|
|
|
16,063
|
|
|
|
34,829
|
|
Consolidated Commercial deductions
|
|
|
56,429
|
|
|
|
52,510
|
|
|
|
126,430
|
|
|
|
154,041
|
|
Consolidated Selling expenses
|
|
|
5,289
|
|
|
|
6,195
|
|
|
|
12,067
|
|
|
|
16,486
|
|
Consolidated Cost applicable to sales
|
|
|
181,369
|
|
|
|
198,062
|
|
|
|
413,592
|
|
|
|
578,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30
|
|
|
For the 9 months ended September 30
|
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
2020
|
|
|
|
2019
|
|
Cost of sales by mine and mineral
|
|
(in thousands of US$)
|
|
Julcani, Gold
|
|
|
33
|
|
|
|
3
|
|
|
|
-52
|
|
|
|
20
|
|
Julcani, Silver
|
|
|
2,213
|
|
|
|
6,152
|
|
|
|
9,951
|
|
|
|
18,433
|
|
Julcani, Lead
|
|
|
26
|
|
|
|
274
|
|
|
|
144
|
|
|
|
770
|
|
Julcani, Copper
|
|
|
6
|
|
|
|
16
|
|
|
|
26
|
|
|
|
48
|
|
Orcopampa, Gold
|
|
|
11,284
|
|
|
|
17,444
|
|
|
|
21,104
|
|
|
|
38,407
|
|
Orcopampa, Silver
|
|
|
32
|
|
|
|
88
|
|
|
|
54
|
|
|
|
197
|
|
Orcopampa, Copper
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Uchucchacua, Gold
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Uchucchacua, Silver
|
|
|
17,614
|
|
|
|
19,642
|
|
|
|
47,276
|
|
|
|
54,960
|
|
Uchucchacua, Lead
|
|
|
683
|
|
|
|
3,665
|
|
|
|
3,231
|
|
|
|
11,018
|
|
Uchucchacua, Zinc
|
|
|
1,122
|
|
|
|
3,235
|
|
|
|
3,631
|
|
|
|
14,682
|
|
Tambomayo, Gold
|
|
|
10,919
|
|
|
|
14,610
|
|
|
|
28,098
|
|
|
|
34,148
|
|
Tambomayo, Silver
|
|
|
3,512
|
|
|
|
4,675
|
|
|
|
8,172
|
|
|
|
9,860
|
|
Tambomayo, Zinc
|
|
|
891
|
|
|
|
1,614
|
|
|
|
1,925
|
|
|
|
5,782
|
|
Tambomayo, Lead
|
|
|
575
|
|
|
|
1,625
|
|
|
|
2,227
|
|
|
|
3,803
|
|
La Zanja, Gold
|
|
|
8,954
|
|
|
|
6,483
|
|
|
|
21,193
|
|
|
|
26,461
|
|
La Zanja, Silver
|
|
|
820
|
|
|
|
225
|
|
|
|
1,811
|
|
|
|
896
|
|
El Brocal, Gold
|
|
|
1,462
|
|
|
|
2,594
|
|
|
|
4,050
|
|
|
|
5,387
|
|
El Brocal, Silver
|
|
|
10,423
|
|
|
|
6,103
|
|
|
|
16,713
|
|
|
|
18,944
|
|
El Brocal, Lead
|
|
|
4,245
|
|
|
|
3,433
|
|
|
|
9,491
|
|
|
|
15,041
|
|
El Brocal, Zinc
|
|
|
15,899
|
|
|
|
6,596
|
|
|
|
29,112
|
|
|
|
31,845
|
|
El Brocal, Copper
|
|
|
20,355
|
|
|
|
29,776
|
|
|
|
48,400
|
|
|
|
78,836
|
|
Other Small Units, Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Small Units, Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Small Units, Lead
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Small Units, Zinc
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non Mining Units
|
|
|
984
|
|
|
|
985
|
|
|
|
2,475
|
|
|
|
3,523
|
|
Consolidated Cost of sales, excluding depreciation and amortization
|
|
|
112,052
|
|
|
|
129,238
|
|
|
|
259,032
|
|
|
|
373,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|