UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2020
Commission File Number 001-14370
COMPANIA DE MINAS BUENAVENTURA S.A.A.
(Exact name of registrant as specified in its charter)
BUENAVENTURA MINING COMPANY INC.
(Translation of registrant’s name into English)
(Translation of registrant’s name into English)
Republic of Peru
(Jurisdiction of incorporation or organization)
(Jurisdiction of incorporation or organization)
CARLOS VILLARAN 790
SANTA CATALINA, LIMA 13, PERU
(Address of principal executive offices)
SANTA CATALINA, LIMA 13, PERU
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ____X___ 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 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.
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
Buenaventura Announces Fourth Quarter
and Full Year 2019 Results
Lima, Peru, February 20, 2020 – 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, today announced results for the fourth quarter (4Q19) and twelve-month (FY19) period ended December 31, 2019. 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$).
Fourth Quarter 2019 Highlights:
● | 4Q19 EBITDA from direct operations was US$ 73.9 million, compared to US$ 68.7 million reported in 4Q18. |
● | 4Q19 Adjusted EBITDA including associated companies reached US$ 176.8 million, compared to US$ 147.4 million in 4Q18, primarily due to improved results at Cerro Verde and Coimolache. |
● | 4Q19 capital expenditures were US$ 38.4 million, compared to US$ 41.2 million for the same period in 2018. |
● | 4Q19 net loss was US$ 53.7 million, compared to a net loss of US$ 72.9 million for the same period in 2018. |
● | The Company’s portfolio of greenfield projects continued progressing well during the quarter. At Yumpaq (Ag), San Gabriel (Au) and Trapiche (Cu) we are declarinh ore reserves in 1Q20 (please see appendix 4). |
● | Buenaventura generated US$ 13.6 million in incremental EBITDA through the Company´s De-Bottlenecking Program (please see page 6 for more details). The program has enabled BVN to increase the efficiency of its Tambomayo, Uchucchacua, Orcopampa and El Brocal mines. |
● | The Yanacocha’s Quecher Main project was on budget and achieved commercial production in 4Q19. |
● | Cerro Verde’s processing plants averaged 396,800 metric tons of ore per day, approximately 10 percent above nameplate capacity. |
● | A US$ 0.027 per share/ADS dividend payment was proposed at Buenaventura’s February 20, 2020 Board Meeting. |
Financial Highlights (in millions of US$, except EPS figures):
4Q19 | 4Q18 | Var | FY19 | FY18 | Var | |
Total Revenues | 235.5 | 252.3 | -7% | 867.9 | 1,150.7 | -25% |
Operating Profit | -8.7 | 21.3 | N.A | -58.0 | 58.3 | N.A |
EBITDA Direct Operations | 73.9 | 68.7 | 8% | 202.2 | 315.4 | -36% |
Adjusted EBITDA (Inc Associates) | 176.8 | 147.4 | 20% | 620.9 | 662.9 | -6% |
Net Income | -53.7 | -72.9 | 26% | -12.2 | -13.4 | 9% |
EPS* | -0.211 | -0.287 | 26% | -0.048 | -0.053 | 9% |
(*) As of December 31, 2019 Buenaventura had a weighted average number of shares outstanding of 253,986,867.
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 2 of 27 |
Operating Revenues |
4Q19 net sales were US$ 230.6 million, compared to US$ 246.8 million reported in 4Q18. This was primarily due to a 17% YoY decrease in volumes sold of gold.
Royalty income decreased 11% in the 4Q19 to US$ 4.9 million, from US$ 5.5 million in 4Q18. This was due to a 9% decrease in revenues at Yanacocha.
Operating Highlights | 4Q19 | 4Q18 | Var% | FY19 | FY18 | Var% |
Net Sales (in millions of US$) | 230.6 | 246.8 | -7% | 846 | 1,130 | -25% |
Average Realized Gold Price (US$/oz) (1) (2) | 1,487 | 1,223 | 22% | 1,405 | 1,268 | 11% |
Average Realized Gold Price (US$/oz) Inc. Affiliates (2)(3) | 1,482 | 1,223 | 21% | 1,399 | 1,263 | 11% |
Average Realized Silver Price (US$/oz) (1) (2) | 17.38 | 13.50 | 29% | 16.36 | 15.08 | 8% |
Average Realized Lead Price (US$/MT) (1) (2) | 1,952 | 1,793 | 9% | 1,939 | 2,141 | -9% |
Average Realized Zinc Price (US$/MT) (1) (2) | 2,208 | 2,321 | -5% | 2,492 | 2,681 | -7% |
Average Realized Copper Price (US$/MT) (1) (2) | 5,602 | 5,801 | -3% | 5,808 | 6,277 | -7% |
Volume Sold | 4Q19 | 4Q18 | Var% | FY19 | FY18 | Var% |
Consolidated Gold Oz (1) | 51,432 | 61,821 | -17% | 180,876 | 324,825 | -44% |
Gold Oz Inc. Associated Companies (3) | 119,224 | 146,189 | -18% | 476,877 | 621,642 | -23% |
Consolidated Silver Oz (1) | 4,779,765 | 5,091,877 | -6% | 18,224,320 | 24,005,977 | -24% |
Consolidated Lead MT (1) | 10,858 | 10,747 | 1% | 45,995 | 39,968 | 15% |
Consolidated Zinc MT (1) | 14,702 | 14,117 | 4% | 59,953 | 61,424 | -2% |
Consolidated Copper MT (1) | 11,520 | 11,528 | 0% | 41,027 | 43,770 | -6% |
(1) | Buenaventura Consolidated figure includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal. |
(2) | The realized price takes into account the adjustments of quotational periods. |
(3) | Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.095% of Coimolache and 43.65% of Yanacocha. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 3 of 27 |
Production and Operating Costs |
Buenaventura’s 4Q19 equity gold production was 114,865 ounces, compared to 139,278 reported in 4Q18, primarily due a 60% YoY decrease in production related to an anticipated 69% YoY decrease in production at La Zanja and a 28% percent decrease at Yanacocha.
Buenaventura´s FY19 equity gold production was 464,487 ounces, compared to 590,349 reported in FY18. This was primarily due to a 64% YoY decrease in production at Orcopampa and a 56% YoY decrease in production at La Zanja. Silver equity production decreased by 24% year on year, primarily due to a 35% decrease in production at the Tambomayo mine and a 31% decrease at the Uchucchacua mine. Lead equity production increased by 10% year on year, primarily due to a 15% increase in production at the El Brocal mine.
Equity Production | 4Q19 | 4Q18 | Var% | FY19 | FY18 | Var% |
Gold Oz Direct Operations(1) | 50,060 | 57,598 | -13% | 169,273 | 296,301 | -43% |
Gold Oz including Associated(2) Companies | 114,865 | 139,278 | -18% | 464,487 | 590,349 | -21% |
Silver Oz Direct Operations(1) | 5,092,300 | 5,409,841 | -6% | 18,558,980 | 24,657,217 | -25% |
Silver Oz including Associated Companies | 5,594,969 | 5,792,822 | -3% | 20,100,565 | 26,336,236 | -24% |
Lead MT | 10,257 | 10,040 | 2% | 40,701 | 37,033 | 10% |
Zinc MT | 13,570 | 13,906 | -2% | 55,588 | 58,534 | -5% |
Copper MT Direct Operations(1) | 7,516 | 7,472 | 1% | 26,842 | 28,569 | -6% |
Copper MT including Associated Companies(3) | 31,432 | 31,389 | 0% | 115,990 | 121,772 | -5% |
Consolidated Production | 4Q19 | 4Q18 | Var% | FY19 | FY18 | Var% |
Gold Oz(4) | 55,266 | 68,620 | -19% | 191,281 | 338,189 | -43% |
Silver Oz(4) | 5,546,895 | 5,795,731 | -4% | 20,288,743 | 26,264,109 | -23% |
Lead MT(4) | 12,504 | 12,108 | 3% | 49,803 | 44,972 | 11% |
Zinc MT(4) | 18,071 | 17,648 | 2% | 72,397 | 76,119 | -5% |
Copper MT(4) | 12,206 | 12,136 | 1% | 43,578 | 46,400 | -6% |
(1) | Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 61.43% of El Brocal. |
(2) | Based on 100% of Buenaventura´s operating units, 53.06% of La Zanja, 61.43% of el Brocal, 40.095% of Coimolache and 43.65% of Yanacocha. |
(3) | Based on 100% of Buenaventura´s operating units, 61.43% of el Brocal and 19.58% of Cerro Verde. |
(4) | Based on 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 4 of 27 |
Tambomayo (100% owned by Buenaventura)
Production | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | Oz | 28,861 | 31,026 | -7 | % | 99,245 | 129,172 | -23 | % | ||||||||||||||||
Silver | Oz | 841,868 | 873,249 | -4 | % | 2,556,391 | 3,929,808 | -35 | % | ||||||||||||||||
Cost Applicable to Sales | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | US$/Oz | 766 | 850 | -10 | % | 679 | 626 | 9 | % |
4Q19 year on year gold production at Tambomayo decreased 7% mainly due to lower ore grades and reduced recovery rates. Cost Applicable to Sales (CAS) decreased to 766 US$/Oz in 4Q19, compared to 850 US$/Oz in 4Q18, primarily due to increased volume sold, lower exploration expenses and a decrease in reagent costs at the plant.
Gold production guidance for 2020 is 90k – 100k ounces and silver production guidance is 2.5M – 3.0M ounces.
Orcopampa (100% owned by Buenaventura)
Production | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | Oz | 14,226 | 13,372 | 6 | % | 41,660 | 115,887 | -64 | % | ||||||||||||||||
Silver | Oz | 4,367 | 10,602 | -59 | % | 18,791 | 312,250 | -94 | % | ||||||||||||||||
Cost Applicable to Sales | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | US$/Oz | 976 | 1,734 | -44 | % | 1,489 | 1,020 | 46 | % |
The decrease in 4Q19 gold production at Orcopampa was primarily due to prioritizing the De-Bottlenecking Program over ore extraction. Cost Applicable to Sales (CAS) decreased to 976 US$/Oz in 4Q19, compared to 1,734 US$/Oz in 4Q18, primarily due to a 9% increase in volume sold and lower exploration expenses.
Gold production guidance for 2020 is 20k – 30k ounces.
La Zanja (53.06% owned by Buenaventura)
Production | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | Oz | 6,217 | 20,101 | -69 | % | 31,500 | 71,630 | -56 | % | ||||||||||||||||
Silver | Oz | 16,216 | 54,108 | -70 | % | 97,204 | 217,174 | -55 | % | ||||||||||||||||
Cost Applicable to Sales | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | US$/Oz | 1,780 | 773 | 130 | % | 1,233 | 891 | 38 | % |
4Q19 gold production decreased by 69% year on year, in line with the Company’s guidance released at the beginning of 2019. 4Q19 Cost Applicable to Sales (CAS) was 1,780 US$/Oz; a 130% increase compared to 773 US$/Oz in 4Q18, mainly due to lower volume sold (69%).
Gold production guidance for 2020 is 20k – 30k ounces.
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 5 of 27 |
Coimolache (40.10% owned by Buenaventura)
Production | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | Oz | 51,474 | 49,708 | 4 | % | 162,196 | 173,192 | -6 | % | ||||||||||||||||
Silver | Oz | 293,326 | 192,678 | 52 | % | 754,306 | 791,181 | -5 | % | ||||||||||||||||
Cost Applicable to Sales | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Gold | US$/Oz | 694 | 742 | -6 | % | 684 | 675 | 1 | % |
4Q19 gold production at Coimolache increased by 4% year on year, in line with the mine production plan. 4Q19 Cost Applicable to Sales (CAS) was 694 US$/Oz; a 6% decrease compared to 742 US$/Oz in 4Q18, mainly due to increased volume sold and lower exploration expenses.
Gold production guidance for 2020 is 135k – 145k ounces.
Uchucchacua (100% owned by Buenaventura)
Production | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Silver | Oz | 2,876,329 | 3,256,870 | -12 | % | 10,640,913 | 15,420,102 | -31 | % | ||||||||||||||||
Zinc | MT | 4,046 | 5,867 | -31 | % | 19,144 | 21,840 | -12 | % | ||||||||||||||||
Lead | MT | 4,174 | 4,961 | -16 | % | 17,635 | 19,122 | -8 | % | ||||||||||||||||
Cost Applicable to Sales | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Silver | US$/Oz | 14.90 | 11.91 | 25 | % | 12.15 | 10.37 | 17 | % |
4Q19 silver production at Uchucchacua decreased 12% year on year, primarily due to reduced ore grades. Cost Applicable to Sales (CAS) in 4Q19 increased in 25% year on year, mainly due to an 11% decrease in volume sold and a 62% increase in commercial deductions.
Silver production guidance for 2020 is 11.0 million – 12.5 million ounces.
Julcani (100% owned by Buenaventura)
Production | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Silver | Oz | 649,226 | 666,259 | -3 | % | 2,609,006 | 2,482,907 | 5 | % | ||||||||||||||||
Cost Applicable to Sales | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Silver | US$/Oz | 13.20 | 14.04 | -6 | % | 13.49 | 14.98 | -10 | % |
4Q19 silver production was in-line with that which was reported in 4Q18. 4Q19 Cost Applicable to Sales (CAS) of 13.20 US$/Oz was 6% lower than 14.04 US$/Oz in 4Q18, mainly due to the Company’s success in centralizing the operation.
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 6 of 27 |
Silver production guidance for 2020 is 2.4 million – 3.0 million ounces.
El Brocal (61.43% owned by Buenaventura)
Production | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Copper | Oz | 12,159 | 12,093 | 1 | % | 43,394 | 46,231 | -6 | % | ||||||||||||||||
Zinc | MT | 11,670 | 9,702 | 20 | % | 43,580 | 45,593 | -4 | % | ||||||||||||||||
Silver | MT | 1,158,888 | 934,642 | 24 | % | 4,366,438 | 3,901,868 | 12 | % | ||||||||||||||||
Cost Applicable to Sales | |||||||||||||||||||||||||
4Q19 | 4Q18 | Var % | FY19 | FY18 | Var % | ||||||||||||||||||||
Copper | US$/Oz | 5,352 | 5,844 | -8 | % | 5,385 | 5,488 | -2 | % | ||||||||||||||||
Zinc | US$/Oz | 1,989 | 1,696 | 17 | % | 2,007 | 1,569 | 28 | % |
Copper production in 4Q19 was in line with the production reported in 4Q18. 4Q19 zinc production increased by 20% year on year, mainly due to higher ore grade.
In 4Q19, Zinc Cost Applicable to Sales (CAS) increased by 17% year on year, compared to 1,696 US$/MT in 4Q18, primarily due to an increase in commercial deductions. Copper CAS in 4Q19 showed a decrease of 8% compared to 4Q18, mainly due to higher volume sold (21%) and improved commercial terms.
Zinc production guidance for 2020 is 47k – 55k MT, while copper production guidance for 2020 is 48k – 57k MT.
De-Bottlenecking Program – 2019 Update |
Buenaventura’s De-Bottlenecking Program continues to progress well, generating additional EBITDA as follows:
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 7 of 27 |
General and Administrative Expenses |
4Q19 General and Administrative expenses were US$ 21.4 million; a 28% increase as compared to the US$ 16.8 million in 4Q18.
Exploration in Non-Operating Areas |
4Q19 exploration costs in Non-Operating Areas were US$ 2.7 million compared with US$ 11.5 million in 4Q18. During the period, Buenaventura primarily focused its exploration efforts on Emperatriz (US$ 0.9 million) and Marcapunta Norte (US$ 0.3 million).
Share in Associated Companies |
During 4Q19, Buenaventura’s share in associated companies was negative US$ 62.3 million, compared to negative US$ 72.3 million reported in 4Q18, comprised of:
Share in the Result of Associates (in millions of US$) | 4Q19 | 4Q18 | Var | FY19 | FY18 | Var |
Cerro Verde | 17.9 | -59.0 | N.A. | 76.5 | 23.4 | 226% |
Coimolache | 5.8 | 2.0 | 188% | 12.9 | 11.0 | 17% |
Yanacocha | -85.9 | -15.3 | 460% | -41.6 | -35.6 | 17% |
Total | -62.3 | -72.3 | -14% | 47.7 | -1.1 | N.A. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 8 of 27 |
YANACOCHA
At Yanacocha, which is 43.65% owned by Buenaventura, 4Q19 gold production was 101,183 ounces; 44,166 ounces of which were attributable to Buenaventura. This represents a 28% decrease as compared to the 141,465 ounces produced in 4Q18; 61,749 ounces of which were attributable to Buenaventura. For FY19, gold production was 527,336; 230,182 ounces of which were attributable to Buenaventura, a 2% increase as compared to 514,564 ounces in FY18; 224,607 ounces of which were attributable to Buenaventura.
Gold production guidance at Yanacocha for 2020 is 415k ounces.
In 4Q19, Yanacocha reported a net loss of US$ 196.8 million, compared to a net loss of US$ 35.2 million reported in 4Q18; mainly due to a $142 million reclamation expense (non-cash) related to the update of the mine closure plan as well as to a $26 million adjustment related to the write-off of a leach pad.
CAS in 4Q19 was 958 US$/Oz; a 33% increase compared to 722 US$/Oz in 4Q18, mainly due to a 27% decrease in volume sold.
Capital expenditures at Yanacocha were US$ 49.0 million in 4Q19.
The Quecher Main project, an oxide deposit, reached commercial production in the fourth quarter of 2019. The Quecher Main project extends the life of the Yanacocha operation until 2027, with average annual gold production of 200,000 ounces per year expected between 2020 and 2025. Cost applicable to sales (CAS) is expected to be between US$ 750 and US$ 850 per ounce and AISC between US$ 900 and US$ 1,000. The project IRR is expected to be greater than 10 percent.
The Yanacocha Sulfides project is currently in its Definitive Feasibility Stage. The Environmental Impact Assessment study was approved in March 2019.
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 4Q19 copper production was 122,142 MT; 23,915 MT of which is attributable to Buenaventura, in line with 122,148 MT produced in 4Q18; 23,917 MT of which was attributable to Buenaventura.
FY19 copper production was 455,305 MT; 89,149 MT of which was attributable to Buenaventura. FY18 copper production was 476,013 MT; 93,203 MT of which was attributable to Buenaventura.
Cerro Verde reported a 4Q19 net income of US$ 131.6 million compared to net loss of US$ 301.1 million in 4Q18. This increase is primarily due to (i) a US$345.7 million decrease in financial expenses primarily the result of the recognition of interest related to disputed mining royalties for the years 2009 through 2013, income tax for the years 2006 through 2011, special mining tax (SMT) for the years 2011 through 2013 and net assets tax (ITAN) for the years 2010, 2011 and 2013 all of which were recognized in the fourth quarter of 2018; (ii) a US$95.6 million increase in net sales primarily attributed to higher sales volumes; and (iii) an increase in the average realized copper price: US$2.84 per pound in the fourth quarter of 2019 compared to US$2.67 per pound in the fourth quarter of 2018.
Capital expenditures at Cerro Verde were US$ 83.7 million in 4Q19.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), 4Q19 attributable contribution to net income was US$ 5.8 million, as compared to US$ 2.0 million in 4Q18.
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 9 of 27 |
Others |
The following resolution was passed at the Company’s February 20, 2020 Board of Directors Meeting:
• Call for the Annual Shareholders Meeting to be held on March 31, 2020 with the following items proposed for approval:
a) Approval of the Annual Report as of December 31, 2019.
b) Approval of the Financial Statements as of December 31, 2019.
c) Declaration of a cash dividend in the amount of US$ 0.027 per share or ADS.
d) Approval of the Annual Retribution for each the Board Member.
e) Approval of the modification of Retribution Policy of the Board Members.
f) Appointment of Ernst and Young as External Auditors for fiscal year 2020.
g) Election of the Board for the period 2020-2022.
***
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 2018 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. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 10 of 27 |
**Tables to follow**
APPENDIX 1
Equity Participation in Subsidiaries and Associates (as of December 31, 2019) | |||
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. Fourth Quarter 2019 Results Page 11 of 27 |
APPENDIX 2
4Q19 | ||||||||
Gold Production | 15 | 18 | ||||||
Mining Unit | Operating Results | Unit | 4Q19 | 4Q18 | △% | FY19 | FY18 | △ % |
Underground | ||||||||
Tambomayo | Ore Milled | DMT | 182,359 | 141,584 | 29% | 640,914 | 557,364 | 15% |
Ore Grade | Oz/MT | 0.19 | 0.24 | -20% | 0.19 | 0.25 | -25% | |
Recovery Rate | % | 83.60 | 88.44 | -5% | 83.11 | 91.15 | -9% | |
Ounces Produced* | Oz | 28,861 | 31,026 | -7% | 99,245 | 129,172 | -23% | |
Orcopampa | Ore Milled | DMT | 35,983 | 43,846 | -18% | 127,079 | 353,891 | -64% |
Ore Grade | Oz/MT | 0.39 | 0.26 | 49% | 0.33 | 0.32 | 3% | |
Recovery Rate | % | 96.92 | 95.30 | 2% | 96.75 | 97.10 | 0% | |
Ounces Produced* | Oz | 14,226 | 13,372 | 6% | 41,660 | 115,887 | -64% | |
Open Pit | ||||||||
La Zanja | Ounces Produced | Oz | 6,217 | 20,101 | -69% | 31,500 | 71,630 | -56% |
Tantahuatay | Ounces Produced | Oz | 51,474 | 49,708 | 4% | 162,196 | 173,192 | -6% |
Silver Production | ||||||||
Mining Unit | Operating Results | Unit | 4Q19 | 4Q18 | △% | FY19 | FY18 | △ % |
Underground | ||||||||
Tambomayo | Ore Milled | DMT | 182,359 | 141,584 | 29% | 640,914 | 557,364 | 15% |
Ore Grade | Oz/MT | 5.26 | 6.78 | -22% | 4.54 | 8.11 | -44% | |
Recovery Rate | % | 87.81 | 85.34 | 3% | 87.76 | 85.11 | 3% | |
Ounces Produced | Oz | 841,868 | 873,249 | -4% | 2,556,391 | 3,929,808 | -35% | |
Uchucchacua | Ore Milled | DMT | 373,965 | 355,348 | 5% | 1,335,018 | 1,387,775 | -4% |
Ore Grade | Oz/MT | 8.28 | 10.13 | -18% | 9.06 | 12.48 | -27% | |
Recovery Rate | % | 92.93 | 90.44 | 3% | 87.96 | 87.43 | 1% | |
Ounces Produced | Oz | 2,876,329 | 3,256,870 | -12% | 10,640,913 | 15,420,102 | -31% | |
Julcani | Ore Milled | DMT | 31,268 | 28,886 | 8% | 123,818 | 109,025 | 14% |
Ore Grade | Oz/MT | 21.67 | 23.62 | -8% | 21.90 | 23.35 | -6% | |
Recovery Rate | % | 95.83 | 97.65 | -2% | 96.22 | 97.41 | -1% | |
Ounces Produced | Oz | 649,226 | 666,259 | -3% | 2,609,006 | 2,482,907 | 5% | |
Marcapunta | Ore Milled | DMT | 809,772 | 907,596 | -11% | 2,926,124 | 3,204,261 | -9% |
Ore Grade | Oz/MT | 0.70 | 0.65 | 6% | 0.77 | 0.71 | 8% | |
Recovery Rate | % | 62.48 | 59.68 | 5% | 62.07 | 60.95 | 2% | |
Ounces Produced | Oz | 352,328 | 354,669 | -1% | 1,392,363 | 1,383,536 | 1% | |
Open Pit | ||||||||
Tajo Norte | Ore Milled | DMT | 817,132 | 824,071 | -1% | 3,407,914 | 3,429,618 | -1% |
Ore Grade | Oz/MT | 1.55 | 1.09 | 42% | 1.38 | 1.13 | 22% | |
Recovery Rate | % | 63.61 | 64.28 | -1% | 63.32 | 65.25 | -3% | |
Ounces Produced | Oz | 806,560 | 579,974 | 39% | 2,974,075 | 2,518,332 | 18% | |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 12 of 27 |
Zinc Production | ||||||||
Mining Unit | Operating Results | Unit | 4Q19 | 4Q18 | △% | FY19 | FY18 | △ % |
Underground | ||||||||
Tambomayo | Ore Milled | DMT | 182,359 | 141,584 | 29% | 640,914 | 557,364 | 15% |
Ore Grade | % | 1.85 | 2.06 | -10% | 1.99 | 2.16 | -8% | |
Recovery Rate | % | 69.93 | 71.31 | -2% | 75.77 | 71.36 | 6% | |
MT Produced | MT | 2,356 | 2,080 | 13% | 9,672 | 8,685 | 11% | |
Uchucchacua | Ore Milled | DMT | 373,965 | 355,348 | 5% | 1,335,018 | 1,387,775 | -4% |
Ore Grade | % | 1.67 | 2.23 | -25% | 2.20 | 2.23 | -1% | |
Recovery Rate | % | 64.79 | 73.99 | -12% | 65.08 | 70.34 | -7% | |
MT Produced | MT | 4,046 | 5,867 | -31% | 19,144 | 21,840 | -12% | |
Open Pit | ||||||||
Tajo Norte | Ore Milled | DMT | 817,132 | 824,071 | -1% | 3,407,914 | 3,429,618 | -1% |
Ore Grade | % | 2.92 | 2.14 | 36% | 2.42 | 2.30 | 5% | |
Recovery Rate | % | 48.95 | 55.01 | -11% | 52.86 | 57.78 | -9% | |
MT Produced | MT | 11,670 | 9,702 | 20% | 43,580 | 45,593 | -4% | |
Copper Production | ||||||||
Mining Unit | Operating Results | Unit | 4Q19 | 4Q18 | △% | FY19 | FY18 | △ % |
Underground | ||||||||
Marcapunta | Ore Milled | DMT | 809,772 | 907,596 | -11% | 2,926,124 | 3,204,261 | -9% |
Ore Grade | % | 1.66 | 1.49 | 11% | 1.67 | 1.59 | 5% | |
Recovery Rate | % | 90.45 | 89.48 | 1% | 88.68 | 90.63 | -2% | |
MT Produced | MT | 12,159 | 12,093 | 1% | 43,394 | 46,231 | -6% |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 13 of 27 |
APPENDIX 3: Adjusted EBITDA Reconciliation (in thousand US$)
4Q19 | 4Q18 | FY 2019 | FY 2018 | |
Net Income | -58,874 | -67,332 | -28,459 | -11,654 |
Add / Substract: | 132,744 | 136,012 | 230,680 | 327,069 |
Depreciation and Amortization in cost of sales | 57,606 | 62,149 | 226,335 | 238,879 |
Interest expense | 8,494 | 10,139 | 42,173 | 38,422 |
Provision for income tax, net | -19,477 | 3,513 | -25,590 | 26,879 |
Reversal for contingencies and others | -879 | -22,455 | -2,968 | -11,248 |
Impairment of Inventories | 3,256 | 4,576 | 2,239 | 11,559 |
Profit from discontinued operations | 3,871 | 7,235 | 10,514 | 11,808 |
Write-off of fixed assets | 2,926 | 2,826 | 2,926 | 3,960 |
Provision of bonuses and compensations | 3,797 | 4,906 | 15,855 | 17,757 |
Workers´ participation provision | -25 | 1,059 | -7 | 1,903 |
Loss on currency exchange difference | -938 | 1,344 | 734 | 1,384 |
Changes in provision of exploration activities | 4,965 | -1,807 | 4,965 | -1,807 |
Share in associated companies by the equity method, net | 62,278 | 72,317 | -47,710 | 1,144 |
Contractor claims provisions | 4,401 | 0 | 4,401 | 0 |
Interest income | -4,019 | -5,904 | -9,675 | -9,685 |
Impairment of Long-Lived Assets | 2,083 | -5,693 | 2,083 | -5,693 |
Depreciation and Amortization in administration expenses | 3,825 | 1,295 | 3,825 | 1,295 |
Other non-cash provisions | 580 | 512 | 580 | 512 |
EBITDA Buenaventura Direct Operations | 73,870 | 68,680 | 202,221 | 315,415 |
EBITDA Yanacocha (43.65%) | 20,531 | 23,000 | 139,694 | 65,880 |
EBITDA Cerro Verde (19.58%) | 64,366 | 45,166 | 228,669 | 240,609 |
EBITDA Coimolache (40.01%) | 17,987 | 10,540 | 50,332 | 41,011 |
Adjusted EBITDA (including Associated companies) | 176,754 | 147,386 | 620,915 | 662,915 |
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. Fourth Quarter 2019 Results Page 14 of 27 |
APPENDIX 4:
RESERVES AS OF DECEMBER 31st 2019 | ||||||||||||||||||||
PRELIMINARY PROVEN AND PROBABLE RESERVES | ||||||||||||||||||||
GOLD | ||||||||||||||||||||
% Ownership | MT (000) | Grade Oz/TMS | Oz (000) | Attributable (000) | ||||||||||||||||
Orcopampa | 100.00 | 626 | 0.321 | 201 | 201 | |||||||||||||||
Julcani | 100.00 | 255 | 0.006 | 1 | 1 | |||||||||||||||
Tambomayo | 100.00 | 2,446 | 0.120 | 295 | 295 | |||||||||||||||
La Zanja | 53.06 | 560 | 0.013 | 7 | 4 | |||||||||||||||
La Zanja (on Pads and Plant) | 53.06 | 5 | 2 | |||||||||||||||||
Tantahuatay (Oxides) | 40.10 | 66,859 | 0.011 | 737 | 296 | |||||||||||||||
Tantahuatay PAD | 40.10 | 5 | 2 | |||||||||||||||||
El Brocal Marcapunta (Sulphides) | 61.43 | 34,503 | 0.023 | 805 | 495 | |||||||||||||||
San Gabriel | 100.00 | 11,810 | 0.142 | 1,675 | 1,675 | |||||||||||||||
Total | 3,732 | 2,971 | ||||||||||||||||||
SILVER | ||||||||||||||||||||
% Ownership | MT (000) | Grade Oz/TMS | Oz (000) | Attributable (000) | ||||||||||||||||
Uchucchacua (Silver - Zinc - Lead) | 100.00 | 10,426 | 9.46 | 98,598 | 98,598 | |||||||||||||||
Julcani | 100.00 | 255 | 21.02 | 5,361 | 5,361 | |||||||||||||||
Orcopampa | 100.00 | 626 | 0.49 | 305 | 305 | |||||||||||||||
Tambomayo | 100.00 | 2,446 | 4.46 | 10,898 | 10,898 | |||||||||||||||
La Zanja | 53.06 | 560 | 0.27 | 152 | 80 | |||||||||||||||
La Zanja (on Pads and Plant) | 53.06 | 109 | 58 | |||||||||||||||||
Tantahuatay Oxides | 40.10 | 66,859 | 0.26 | 17,145 | 6,874 | |||||||||||||||
Tantahuatay PAD | 40.10 | 314 | 126 | |||||||||||||||||
El Brocal (Tajo Norte - Smelter) | 61.43 | 42,216 | 1.08 | 45,581 | 28,000 | |||||||||||||||
El Brocal Marcapunta (Sulphides) | 61.43 | 34,503 | 1.15 | 39,799 | 24,448 | |||||||||||||||
Total | 218,261 | 174,749 | ||||||||||||||||||
ZINC | ||||||||||||||||||||
% Ownership | MT (000) | % Zn | MT (000) | Attributable (000) | ||||||||||||||||
Uchucchacua (Silver - Zinc - Lead) | 100.00 | 10,426 | 2.03 | 212 | 212 | |||||||||||||||
Tambomayo | 100.00 | 2,446 | 1.66 | 41 | 41 | |||||||||||||||
El Brocal (Tajo Norte - Smelter Zn - Pb - Ag ) | 61.43 | 14,756 | 2.52 | 371 | 228 | |||||||||||||||
Total | 624 | 481 | ||||||||||||||||||
LEAD | ||||||||||||||||||||
% Ownership | MT (000) | % Pb | MT (000) | Attributable (000) | ||||||||||||||||
Uchucchacua (Silver - Zinc - Lead) | 100.00 | 10,426 | 1.19 | 124 | 124 | |||||||||||||||
Julcani | 100.00 | 255 | 2.00 | 5 | 5 | |||||||||||||||
Tambomayo | 100.00 | 2,446 | 1.27 | 31 | 31 | |||||||||||||||
El Brocal (Tajo Norte - Smelter Zn - Pb - Ag ) | 61.43 | 14,756 | 1.17 | 173 | 106 | |||||||||||||||
Total | 334 | 267 | ||||||||||||||||||
COPPER | ||||||||||||||||||||
% Ownership | MT (000) | % Cu | MT (000) | Attributable (000) | ||||||||||||||||
Julcani | 100.00 | 255 | 0.43 | 1 | 1 | |||||||||||||||
El Brocal Marcapunta Norte | 61.43 | 34,503 | 1.30 | 450 | 277 | |||||||||||||||
El Brocal (Tajo Norte - Smelter Cu - Ag) | 61.43 | 27,460 | 1.71 | 470 | 289 | |||||||||||||||
Trapiche | 100.00 | 283,200 | 0.51 | 1,444 | 1,444 | |||||||||||||||
Total | 2,366 | 2,010 | ||||||||||||||||||
Prices used for Buenaventura´s Reserves calculation: | ||||||||||||||||||||
Gold 1,300 US$/Oz - Silver 16.3 US$/Oz - Zinc 2,800 US$/MT - Lead 2,200US$/MT - Copper 6,200 US$/MT |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 15 of 27 |
APPENDIX 5: 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.
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 16 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 December 31 | For the 12 months ended December 21 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in thousands of US$) | ||||||||||||||||
Consolidated Cost of sales excluding depreciation and amortization | 143,190 | 157,960 | 516,252 | 617,699 | ||||||||||||
Add: | ||||||||||||||||
Consolidated Exploration in units in operation | 9,334 | 20,660 | 44,163 | 89,730 | ||||||||||||
Consolidated Commercial deductions | 66,265 | 49,565 | 220,306 | 192,683 | ||||||||||||
Consolidated Selling expenses | 7,827 | 7,013 | 24,313 | 26,948 | ||||||||||||
Consolidated Cost applicable to sales | 226,616 | 235,198 | 805,034 | 927,060 |
Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization | ||||||||||||||||
(by mine and mineral) to consolidated Cost of sales: | ||||||||||||||||
For the 3 months ended December 31 | For the 12 months ended December 21 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cost of sales by mine and mineral | (in thousands of US$) | |||||||||||||||
Julcani, Gold | 136 | 0 | 166 | 19 | ||||||||||||
Julcani, Silver | 5,977 | 6,218 | 24,405 | 23,608 | ||||||||||||
Julcani, Lead | 204 | 298 | 971 | 1,335 | ||||||||||||
Julcani, Copper | 0 | 18 | 47 | 86 | ||||||||||||
Orcopampa, Gold | 12,736 | 18,635 | 51,154 | 88,942 | ||||||||||||
Orcopampa, Silver | 42 | 153 | 228 | 3,127 | ||||||||||||
Orcopampa, Copper | 0 | 0 | 0 | 0 | ||||||||||||
Uchucchacua, Gold | 0 | 0 | 0 | 5 | ||||||||||||
Uchucchacua, Silver | 24,307 | 24,053 | 79,562 | 98,991 | ||||||||||||
Uchucchacua, Lead | 3,650 | 4,859 | 14,815 | 16,470 | ||||||||||||
Uchucchacua, Zinc | 4,071 | 6,290 | 19,004 | 20,540 | ||||||||||||
Tambomayo, Gold | 13,574 | 15,944 | 47,741 | 58,475 | ||||||||||||
Tambomayo, Silver | 3,679 | 4,644 | 13,540 | 20,969 | ||||||||||||
Tambomayo, Zinc | 1,181 | 583 | 4,979 | 2,597 | ||||||||||||
Tambomayo, Lead | 1,293 | 1,987 | 7,058 | 7,050 | ||||||||||||
La Zanja, Gold | 11,028 | 15,410 | 37,445 | 65,128 | ||||||||||||
La Zanja, Silver | 200 | 518 | 1,140 | 2,499 | ||||||||||||
El Brocal, Gold | 3,108 | 1,574 | 8,429 | 7,771 | ||||||||||||
El Brocal, Silver | 8,061 | 5,672 | 26,966 | 19,391 | ||||||||||||
El Brocal, Lead | 5,304 | 5,064 | 20,388 | 17,108 | ||||||||||||
El Brocal, Zinc | 10,557 | 9,623 | 42,537 | 42,658 | ||||||||||||
El Brocal, Copper | 32,217 | 34,509 | 110,979 | 115,771 | ||||||||||||
Non Mining Units | 1,864 | 1,907 | 4,697 | 5,160 | ||||||||||||
Consolidated Cost of sales, excluding depreciation and amortization | 143,190 | 157,960 | 516,252 | 617,699 | ||||||||||||
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 December 31 | For the 12 months ended December 21 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Exploration expenses in units in operation by mine and mineral | (in thousands of US$) | |||||||||||||||
Julcani, Gold | 29 | 0 | 38 | 6 | ||||||||||||
Julcani, Silver | 1,290 | 1,785 | 5,593 | 8,149 | ||||||||||||
Julcani, Lead | 44 | 86 | 223 | 461 | ||||||||||||
Julcani, Copper | 0 | 5 | 11 | 30 | ||||||||||||
Orcopampa, Gold | 1,327 | 4,409 | 9,000 | 28,558 | ||||||||||||
Orcopampa, Silver | 4 | 36 | 40 | 1,004 | ||||||||||||
Orcopampa, Copper | 0 | 0 | 0 | 0 | ||||||||||||
Uchucchacua, Gold | 0 | 0 | 0 | 1 | ||||||||||||
Uchucchacua, Silver | 1,541 | 3,533 | 6,257 | 15,210 | ||||||||||||
Uchucchacua, Lead | 231 | 714 | 1,165 | 2,531 | ||||||||||||
Uchucchacua, Zinc | 258 | 924 | 1,495 | 3,156 | ||||||||||||
Tambomayo, Gold | 1,576 | 4,792 | 7,562 | 13,490 | ||||||||||||
Tambomayo, Silver | 427 | 1,396 | 2,145 | 4,838 | ||||||||||||
Tambomayo, Lead | 137 | 175 | 789 | 599 | ||||||||||||
Tambomayo, Zinc | 150 | 597 | 1,118 | 1,626 | ||||||||||||
La Zanja, Gold | 1 | 2 | 2 | 71 | ||||||||||||
La Zanja, Silver | 0 | 0 | 0 | 3 | ||||||||||||
El Brocal, Gold | 122 | 62 | 351 | 383 | ||||||||||||
El Brocal, Silver | 315 | 222 | 1,124 | 956 | ||||||||||||
El Brocal, Lead | 208 | 198 | 850 | 844 | ||||||||||||
El Brocal, Zinc | 413 | 376 | 1,774 | 2,104 | ||||||||||||
El Brocal, Copper | 1,260 | 1,349 | 4,627 | 5,710 | ||||||||||||
Non Mining Units | 0 | 0 | 0 | 0 | ||||||||||||
Consolidated Exploration expenses in units in operation | 9,334 | 20,660 | 44,163 | 89,730 |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 17 of 27 |
Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) | ||||||||||||||||
to consolidated Commercial deductions: | ||||||||||||||||
For the 3 months ended December 31 | For the 12 months ended December 21 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Commercial Deductions in units in operation by mine and mineral | (in thousands of US$) | |||||||||||||||
Julcani, Gold | 16 | 0 | 19 | 3 | ||||||||||||
Julcani, Silver | 683 | 806 | 3,084 | 3,390 | ||||||||||||
Julcani, Lead | 23 | 38 | 122 | 191 | ||||||||||||
Julcani, Copper | 0 | 3 | 8 | 12 | ||||||||||||
Orcopampa, Gold | 98 | 69 | 201 | 778 | ||||||||||||
Orcopampa, Silver | 0 | -3 | 1 | 107 | ||||||||||||
Orcopampa, Copper | 0 | -8 | 0 | -11 | ||||||||||||
Uchucchacua, Gold | 0 | -7 | -1 | 0 | ||||||||||||
Uchucchacua, Silver | 11,739 | 6,318 | 29,088 | 29,986 | ||||||||||||
Uchucchacua, Lead | 1,341 | 598 | 3,324 | 3,092 | ||||||||||||
Uchucchacua, Zinc | 2,406 | 2,626 | 10,197 | 8,367 | ||||||||||||
Tambomayo, Gold | 3,912 | 316 | 7,786 | 644 | ||||||||||||
Tambomayo, Silver | 1,544 | 362 | 4,265 | 1,211 | ||||||||||||
Tambomayo, Lead | 447 | 41 | 1,497 | 590 | ||||||||||||
Tambomayo, Zinc | 1,324 | 865 | 6,170 | 2,164 | ||||||||||||
La Zanja, Gold | 17 | 52 | 102 | 319 | ||||||||||||
La Zanja, Silver | 0 | 2 | 2 | 21 | ||||||||||||
El Brocal, Gold | 2,519 | 1,400 | 7,438 | 7,369 | ||||||||||||
El Brocal, Silver | 4,458 | 2,540 | 14,730 | 9,125 | ||||||||||||
El Brocal, Lead | 1,653 | 744 | 5,495 | 2,446 | ||||||||||||
El Brocal, Zinc | 7,710 | 3,107 | 27,302 | 11,459 | ||||||||||||
El Brocal, Copper | 26,373 | 29,697 | 99,477 | 111,419 | ||||||||||||
Non Mining Units | 0 | 0 | 0 | 0 | ||||||||||||
Consolidated Commercial deductions in units in operation | 66,265 | 49,565 | 220,306 | 192,683 | ||||||||||||
Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated | ||||||||||||||||
Selling expenses: | ||||||||||||||||
For the 3 months ended December 31 | For the 12 months ended December 21 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Selling expenses by mine and mineral | (in thousands of US$) | |||||||||||||||
Julcani, Gold | 3 | 0 | 3 | 0 | ||||||||||||
Julcani, Silver | 119 | 114 | 384 | 336 | ||||||||||||
Julcani, Lead | 4 | 5 | 15 | 19 | ||||||||||||
Julcani, Copper | 0 | 0 | 1 | 1 | ||||||||||||
Orcopampa, Gold | 92 | 138 | 257 | 749 | ||||||||||||
Orcopampa, Silver | 0 | 1 | 1 | 26 | ||||||||||||
Orcopampa, Copper | 0 | 0 | 0 | 0 | ||||||||||||
Uchucchacua, Gold | 0 | 0 | 0 | 0 | ||||||||||||
Uchucchacua, Silver | 1,671 | 1,234 | 4,278 | 5,596 | ||||||||||||
Uchucchacua, Lead | 251 | 249 | 797 | 931 | ||||||||||||
Uchucchacua, Zinc | 280 | 323 | 1,022 | 1,161 | ||||||||||||
Tambomayo, Gold | 1,031 | 784 | 2,566 | 1,999 | ||||||||||||
Tambomayo, Silver | 280 | 228 | 728 | 717 | ||||||||||||
Tambomayo, Lead | 90 | 29 | 268 | 89 | ||||||||||||
Tambomayo, Zinc | 98 | 98 | 379 | 241 | ||||||||||||
La Zanja, Gold | 50 | 181 | 312 | 755 | ||||||||||||
La Zanja, Silver | 1 | 6 | 9 | 29 | ||||||||||||
El Brocal, Gold | 174 | 81 | 437 | 468 | ||||||||||||
El Brocal, Silver | 452 | 293 | 1,399 | 1,167 | ||||||||||||
El Brocal, Lead | 297 | 262 | 1,057 | 1,030 | ||||||||||||
El Brocal, Zinc | 591 | 498 | 2,206 | 2,568 | ||||||||||||
El Brocal, Copper | 1,805 | 1,785 | 5,756 | 6,969 | ||||||||||||
Non Mining Units | 538 | 702 | 2,439 | 2,097 | ||||||||||||
Consolidated Selling expenses | 7,827 | 7,013 | 24,313 | 26,948 |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 18 of 27 |
JULCANI | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
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) | 136 | 5,977 | 204 | - | - | 6,317 | - | 6,218 | 298 | - | 18 | 6,533 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 29 | 1,290 | 44 | - | - | 1,363 | - | 1,785 | 86 | - | 5 | 1,876 |
Commercial Deductions (US$000) | 16 | 683 | 23 | - | - | 722 | -0 | 806 | 38 | - | 3 | 846 |
Selling Expenses (US$000) | 3 | 119 | 4 | - | - | 126 | - | 114.20 | 5.47 | - | 0.32 | 120 |
Cost Applicable to Sales (US$000) | 184 | 8,069 | 276 | - | - | 8,528 | -0 | 8,923 | 427 | - | 26 | 9,375 |
Divide: | ||||||||||||
Volume Sold | 162 | 611,490 | 194 | - | - | Not Applicable | - | 635,338 | 237 | - | 4 | Not Applicable |
CAS | 1,138 | 13.20 | 1,422 | - | - | Not Applicable | - | 14.04 | 1,803 | - | 6,047 | Not Applicable |
ORCOPAMPA | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | |
Cost of Sales (without D&A) (US$000) | 12,736 | 42 | - | - | - | 12,778 | 18,635 | 153 | - | - | - | 18,788 |
Add: | - | |||||||||||
Exploration Expenses (US$000) | 1,327 | 4 | - | - | - | 1,331 | 4,409 | 36 | - | - | - | 4,445 |
Commercial Deductions (US$000) | 98 | 0 | - | - | - | 99 | 69 | -3 | - | - | -8 | 58 |
Selling Expenses (US$000) | 92 | 0 | - | - | - | 92 | 138 | 1 | - | - | - | 139 |
Cost Applicable to Sales (US$000) | 14,253 | 47 | - | - | - | 14,300 | 23,250 | 188 | - | - | -8 | 23,430 |
Divide: | ||||||||||||
Volume Sold | 14,601 | 3,849 | - | - | - | Not Applicable | 13,405 | 12,129 | - | - | - | Not Applicable |
CAS | 976 | 12.23 | - | - | - | Not Applicable | 1,734 | 15.52 | - | - | - | Not Applicable |
Prorrateo | 100% | 0% | 0% | 99% | 1% | - | ||||||
UCHUCCHACUA | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
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) | - | 24,307 | 3,650 | 4,071 | - | 32,029 | - | 24,053 | 4,859 | 6,290 | - | 35,202 |
Add: | ||||||||||||
Exploration Expenses (US$000) | - | 1,541 | 231 | 258 | - | 2,031 | - | 3,533 | 714 | 924 | - | 5,171 |
Commercial Deductions (US$000) | 0 | 11,739 | 1,341 | 2,406 | - | 15,487 | -7 | 6,318 | 598 | 2,626 | - | 9,535 |
Selling Expenses (US$000) | - | 1,671 | 251 | 280 | - | 2,202 | - | 1,234 | 249 | 323 | - | 1,806 |
Cost Applicable to Sales (US$000) | 0 | 39,259 | 5,474 | 7,015 | - | 51,749 | -7 | 35,138 | 6,420 | 10,163 | - | 51,714 |
Divide: | ||||||||||||
Volume Sold | - | 2,634,857 | 3,471 | 3,211 | - | Not Applicable | 9 | 2,949,234 | 4,553 | 4,328 | - | Not Applicable |
CAS | - | 14.90 | 1,577 | 2,185 | - | No Applicable | - | 11.91 | 1,410 | 2,348 | - | No Applicable |
TAMBOMAYO | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
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) | 13,574 | 3,679 | 1,181 | 1,293 | - | 19,727 | 15,944 | 4,644 | 583 | 1,987.49 | - | 23,159 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 1,576 | 427 | 137 | 150 | - | 2,290 | 4,792 | 1,396 | 175 | 597 | - | 6,960 |
Commercial Deductions (US$000) | 3,912 | 1,544 | 447 | 1,324 | - | 7,227 | 316 | 362 | 41 | 865 | - | 1,584 |
Selling Expenses (US$000) | 1,031 | 280 | 90 | 98 | - | 1,499 | 784 | 228 | 29 | 98 | - | 1,139 |
Cost Applicable to Sales (US$000) | 20,093 | 5,929 | 1,855 | 2,866 | - | 30,743 | 21,836 | 6,630 | 828 | 3,548 | - | 32,842 |
Divide: | ||||||||||||
Volume Sold | 26,240 | 623,846 | 1,782 | 1,800 | - | Not Applicable | 25,691 | 662,978 | 709 | 1,769 | - | Not Applicable |
CAS | 766 | 9.50 | 1,041 | 1,592 | - | No Applicable | 850 | 10.00 | 1,168 | 2,005 | - | No Applicable |
LA ZANJA | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
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) | 11,028 | 200 | - | - | - | 11,228 | 15,410 | 518 | - | - | - | 15,928 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 1 | 0 | - | - | - | 1 | 2 | 0 | - | - | - | 2 |
Commercial Deductions (US$000) | 17 | 0 | - | - | - | 17 | 52 | 2 | - | - | - | 54 |
Selling Expenses (US$000) | 50 | 1 | - | - | - | 51 | 181 | 6 | - | - | - | 187 |
Cost Applicable to Sales (US$000) | 11,097 | 201 | - | - | - | 11,297 | 15,646 | 525 | - | - | - | 16,171 |
Divide: | ||||||||||||
Volume Sold | 6,233 | 9,722 | - | - | - | Not Applicable | 20,234 | 59,146 | - | - | - | Not Applicable |
CAS | 1,780 | 20.64 | - | - | - | Not Applicable | 773 | 8.88 | - | - | - | Not Applicable |
JULCANI | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | 166 | 24,405 | 971 | - | 47 | 25,589 | 19 | 23,608 | 1,335 | - | 86 | 25,047 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 38 | 5,593 | 223 | - | 11 | 5,864 | 6 | 8,149 | 461 | - | 30 | 8,646 |
Commercial Deductions (US$000) | 19 | 3,084 | 122 | - | 8 | 3,233 | 3 | 3,390 | 191 | - | 12 | 3,596 |
Selling Expenses (US$000) | 3 | 384 | 15 | - | 1 | 403 | 0 | 336 | 19 | - | 1 | 356 |
Cost Applicable to Sales (US$000) | 225 | 33,467 | 1,331 | - | 66 | 35,089 | 28 | 35,483 | 2,006 | - | 128 | 37,645 |
Divide: | ||||||||||||
Volume Sold | 179 | 2,480,173 | 839 | - | 14 | Not Applicable | 11 | 2,368,497 | 915 | - | 17 | No Aplicable |
CAS | 1,259 | 13.49 | 1,585 | - | 4,788 | No Applicable | 2,507 | 14.98 | 2,191 | - | 7,392 | No Applicable |
ORCOPAMPA | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | 51,154 | 228 | - | - | - | 51,382 | 88,942 | 3,127 | - | - | - | 92,069 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 9,000 | 40 | - | - | - | 9,040 | 28,558 | 1,004 | - | - | - | 29,562 |
Commercial Deductions (US$000) | 201 | 1 | - | - | - | 202 | 778 | 107 | - | - | -11 | 874 |
Selling Expenses (US$000) | 257 | 1 | - | - | - | 258 | 749 | 26 | - | - | - | 775 |
Cost Applicable to Sales (US$000) | 60,612 | 271 | - | - | - | 60,882 | 119,027 | 4,264 | - | - | -11 | 123,280 |
Divide: | ||||||||||||
Volume Sold | 40,702 | 15,049 | - | - | - | Not Applicable | 116,719 | 335,761 | - | - | 42 | Not Applicable |
CAS | 1,489 | 17.98 | - | - | - | No Applicable | 1,020 | 12.70 | - | - | - | No Applicable |
Prorrateo | 100% | 0% | 0% | 97% | 3% | 0% | ||||||
UCHUCCHACUA | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | |
Cost of Sales (without D&A) (US$000) | - | 79,562 | 14,815 | 19,004 | - | 113,381 | 5 | 98,991 | 16,470 | 20,540 | - | 136,006 |
Add: | ||||||||||||
Exploration Expenses (US$000) | - | 6,257 | 1,165 | 1,495 | - | 8,917 | 1 | 15,210 | 2,531 | 3,156 | - | 20,898 |
Commercial Deductions (US$000) | -1 | 29,088 | 3,324 | 10,197 | - | 42,608 | 0 | 29,986 | 3,092 | 8,367 | - | 41,446 |
Selling Expenses (US$000) | - | 4,278 | 797 | 1,022 | - | 6,096 | 0 | 5,596 | 931 | 1,161 | - | 7,689 |
Cost Applicable to Sales (US$000) | -1 | 119,184 | 20,101 | 31,718 | - | 171,002 | 6 | 149,784 | 23,024 | 33,225 | - | 206,039 |
Divide: | ||||||||||||
Volume Sold | 0 | 9,808,791 | 15,347 | 15,315 | - | Not Applicable | 216 | 14,443,456 | 17,071 | 16,811 | - | Not Applicable |
CAS | - | 12.15 | 1,310 | 2,071 | - | No Applicable | 27 | 10.37 | 1,349 | 1,976 | - | No Applicable |
0.17 | ||||||||||||
TAMBOMAYO | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | 47,741 | 13,540 | 4,979 | 7,058 | - | 73,319 | 58,475 | 20,969 | 2,597 | 7,050 | - | 89,090 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 7,562 | 2,145 | 789 | 1,118 | - | 11,613 | 13,490 | 4,838 | 599 | 1,626 | - | 20,553 |
Commercial Deductions (US$000) | 7,786 | 4,265 | 1,497 | 6,170 | - | 19,718 | 644 | 1,211 | 590 | 2,164 | - | 4,609 |
Selling Expenses (US$000) | 2,566 | 728 | 268 | 379 | - | 3,940 | 1,999 | 717 | 89 | 241 | - | 3,046 |
Cost Applicable to Sales (US$000) | 65,655 | 20,677 | 7,532 | 14,725 | - | 108,590 | 74,608 | 27,734 | 3,875 | 11,080 | - | 117,298 |
Divide: | ||||||||||||
Volume Sold | 96,636 | 2,318,434 | 7,211 | 7,850 | - | Not Applicable | 119,211 | 3,570,382 | 3,268 | 7,143 | - | Not Applicable |
CAS | 679 | 8.92 | 1,045 | 1,876 | - | No Applicable | 626 | 7.77 | 1,186 | 1,551 | - | Not Applicable |
LA ZANJA | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | 37,445 | 1,140 | - | - | - | 38,585 | 65,128 | 2,499 | - | - | - | 67,627 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 2 | 0 | - | - | - | 2 | 71 | 3 | - | - | - | 74 |
Commercial Deductions (US$000) | 102 | 2 | - | - | - | 104 | 319 | 21 | - | - | - | 340 |
Selling Expenses (US$000) | 312 | 9 | - | - | - | 321 | 755 | 29 | - | - | - | 784 |
Cost Applicable to Sales (US$000) | 37,861 | 1,151 | - | - | - | 39,012 | 66,274 | 2,552 | - | - | - | 68,825 |
Divide: | ||||||||||||
Volume Sold | 30,710 | 80,880 | - | - | - | Not Applicable | 74,370 | 228,894 | - | - | - | Not Applicable |
CAS | 1,233 | 14.24 | - | - | - | No Applicable | 891 | 11.15 | - | - | - | Not Applicable |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 19 of 27 |
BROCAL | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
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) | 3,108 | 8,061 | 5,304 | 10,557 | 32,217 | 59,247 | 1,574 | 5,672 | 5,064 | 9,623 | 34,509 | 56,443 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 122 | 315 | 208 | 413 | 1,260 | 2,318 | 62 | 222 | 198 | 376 | 1,349 | 2,206 |
Commercial Deductions (US$000) | 2,519 | 4,458 | 1,653 | 7,710 | 26,373 | 42,713 | 1,400 | 2,540 | 744 | 3,107 | 29,697 | 37,487 |
Selling Expenses (US$000) | 174 | 452 | 297 | 591 | 1,805 | 3,319 | 81 | 293 | 262 | 498 | 1,785 | 2,920 |
Cost Applicable to Sales (US$000) | 5,923 | 13,286 | 7,462 | 19,271 | 61,655 | 107,597 | 3,117 | 8,727 | 6,268 | 13,605 | 67,340 | 99,056 |
Divide: | ||||||||||||
Volume Sold | 4,197 | 896,000 | 5,412 | 9,691 | 11,520 | Not Applicable | 2,482 | 773,051 | 5,248 | 8,020 | 11,523 | Not Applicable |
CAS | 1,411 | 14.83 | 1,379 | 1,989 | 5,352 | Not Applicable | 1,256 | 11.29 | 1,194 | 1,696 | 5,844 | Not Applicable |
NON MINING COMPANIES | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
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) | - | - | - | - | - | 1,864 | - | - | - | - | - | 1,907 |
Add: | - | - | ||||||||||
Selling Expenses (US$000) | - | - | - | - | - | 538 | - | - | - | - | - | 702 |
Total (US$000) | - | - | - | - | - | 2,402 | - | - | - | - | - | 2,609 |
BUENAVENTURA CONSOLIDATED | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | |
Cost of Sales (without D&A) (US$000) | 40,582 | 42,266 | 10,340 | 15,922 | 32,217 | 143,190 | 51,563 | 41,258 | 10,804 | 17,901 | 34,527 | 157,960 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 3,054 | 3,578 | 620 | 821 | 1,260 | 9,334 | 9,264 | 6,973 | 1,172 | 1,897 | 1,354 | 20,660 |
Commercial Deductions (US$000) | 6,563 | 18,425 | 3,464 | 11,440 | 26,373 | 66,265 | 1,831 | 10,023 | 1,421 | 6,599 | 29,691 | 49,565 |
Selling Expenses (US$000) | 1,350 | 2,523 | 642 | 970 | 1,805 | 7,827 | 1,184 | 1,877 | 545 | 918 | 1,786 | 7,013 |
Cost Applicable to Sales (US$000) | 51,549 | 66,791 | 15,066 | 29,153 | 61,655 | 226,616 | 63,843 | 60,132 | 13,942 | 27,315 | 67,357 | 235,198 |
Divide: | ||||||||||||
Volume Sold | 51,432 | 4,779,765 | 10,858 | 14,702 | 11,520 | Not Applicable | 61,821 | 5,091,877 | 10,747 | 14,117 | 11,528 | Not Applicable |
CAS | 1,002 | 13.97 | 1,388 | 1,983 | 5,352 | Not Applicable | 1,033 | 11.81 | 1,297 | 1,935 | 5,843 | Not Applicable |
COIMOLACHE | ||||||||||||
4Q 2019 | 4Q 2018 | |||||||||||
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) | 33,557 | 2,174 | - | - | - | 35,731 | 30,137 | 1,401 | - | - | - | 31,538 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 2,222 | 144 | - | - | - | 2,366 | 7,493 | 348 | - | - | - | 7,841 |
Commercial Deductions (US$000) | 141 | 9 | - | - | - | 150 | 172 | 9 | - | - | - | 181 |
Selling Expenses (US$000) | 357 | 23 | - | - | - | 380 | 322 | 15 | - | - | - | 337 |
Cost Applicable to Sales (US$000) | 36,278 | 2,349 | - | - | - | 38,627 | 38,124 | 1,773 | - | - | - | 39,897 |
Divide: | ||||||||||||
Volume Sold | 52,272 | 287,716 | - | - | - | Not Applicable | 51,355 | 202,333 | - | - | - | Not Applicable |
CAS | 694 | 8.17 | - | - | - | Not Applicable | 742 | 8.76 | - | - | - | Not Applicable |
BROCAL | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | 8,429 | 26,966 | 20,388 | 42,537 | 110,979 | 209,299 | 7,771 | 19,391 | 17,108 | 42,658 | 115,771 | 202,700 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 351 | 1,124 | 850 | 1,774 | 4,627 | 8,727 | 383 | 956 | 844 | 2,104 | 5,710 | 9,997 |
Commercial Deductions (US$000) | 7,438 | 14,730 | 5,495 | 27,302 | 99,477 | 154,441 | 7,369 | 9,125 | 2,446 | 11,459 | 111,419 | 141,818 |
Selling Expenses (US$000) | 437 | 1,399 | 1,057 | 2,206 | 5,756 | 10,856 | 468 | 1,167 | 1,030 | 2,568 | 6,969 | 12,201 |
Cost Applicable to Sales (US$000) | 16,656 | 44,219 | 27,790 | 73,818 | 220,840 | 383,323 | 15,991 | 30,640 | 21,428 | 58,789 | 239,869 | 366,716 |
Divide: | ||||||||||||
Volume Sold | 12,648 | 3,520,992 | 22,598 | 36,788 | 41,013 | Not Applicable | 14,297 | 3,058,987 | 18,713 | 37,470 | 43,710 | Not Applicable |
CAS | 1,317 | 12.56 | 1,230 | 2,007 | 5,385 | No Applicable | 1,118 | 10.02 | 1,145 | 1,569 | 5,488 | Not Applicable |
NON MINING COMPANIES | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | - | - | - | - | - | 4,697 | - | - | - | - | - | 5,160 |
Add: | - | - | ||||||||||
Selling Expenses (US$000) | - | - | - | - | - | 2,439 | - | - | - | - | - | 2,097 |
Total (US$000) | - | - | - | - | - | 7,136 | - | - | - | - | - | 7,257 |
BUENAVENTURA CONSOLIDATED | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | 144,936 | 145,842 | 41,153 | 68,599 | 111,026 | 516,252 | 220,339 | 168,586 | 37,510 | 70,248 | 115,857 | 617,699 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 16,953 | 15,159 | 3,026 | 4,386 | 4,638 | 44,163 | 42,510 | 30,160 | 4,434 | 6,886 | 5,739 | 89,730 |
Commercial Deductions (US$000) | 15,545 | 51,170 | 10,437 | 43,669 | 99,485 | 220,306 | 9,113 | 43,841 | 6,319 | 21,990 | 111,420 | 192,683 |
Selling Expenses (US$000) | 3,574 | 6,799 | 2,137 | 3,607 | 5,757 | 24,313 | 3,971 | 7,871 | 2,069 | 3,970 | 6,970 | 26,948 |
Cost Applicable to Sales (US$000) | 181,008 | 218,970 | 56,754 | 120,261 | 220,906 | 805,034 | 275,933 | 250,458 | 50,332 | 103,094 | 239,986 | 927,060 |
Divide: | ||||||||||||
Volume Sold | 180,876 | 18,224,320 | 45,995 | 59,953 | 41,027 | Not Applicable | 324,825 | 24,005,977 | 39,968 | 61,424 | 43,770 | Not Applicable |
CAS | 1,001 | 12.02 | 1,234 | 2,006 | 5,384 | Not Applicable | 849 | 10.43 | 1,259 | 1,678 | 5,483 | Not Applicable |
COIMOLACHE | ||||||||||||
FY 2019 | FY 2018 | |||||||||||
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) | 103,136 | 5,588 | - | - | - | 108,724 | 95,581 | 5,468 | �� - | - | - | 101,049 |
Add: | ||||||||||||
Exploration Expenses (US$000) | 6,154 | 333 | - | - | - | 6,487 | 18,759 | 1,073 | - | - | - | 19,832 |
Commercial Deductions (US$000) | 436 | 23 | - | - | - | 459 | 579 | 36 | - | - | - | 615 |
Selling Expenses (US$000) | 1,103 | 60 | - | - | - | 1,163 | 1,074 | 61 | - | - | - | 1,135 |
Cost Applicable to Sales (US$000) | 110,830 | 6,003 | - | - | - | 116,833 | 115,993 | 6,639 | - | - | - | 122,631 |
Divide: | ||||||||||||
Volume Sold | 162,013 | 737,689 | - | - | - | Not Applicable | 171,770 | 791,404 | - | - | - | Not Applicable |
CAS | 684 | 8.14 | - | - | - | No Applicable | 675 | 8.39 | - | - | - | Not Applicable |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 20 of 27 |
APPENDIX 6: ALL-IN SUSTAINING COST
Buenaventura | ||||||||||||||||||||||||||||||||
All-in Sustaining Cost for 4Q19 | ||||||||||||||||||||||||||||||||
Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||||||||||||||||||||||||||
4Q19 | 4Q19 | 4Q19 | 4Q19 | |||||||||||||||||||||||||||||
Au Ounces Sold BVN | 41,002 | |||||||||||||||||||||||||||||||
Au Ounces bought from La Zanja | ||||||||||||||||||||||||||||||||
Au Ounces Sold Net | 41,002 | 6,233 | 52,272 | 65,268 | ||||||||||||||||||||||||||||
4Q19 | 4Q19 | 4Q19 | 4Q19 | |||||||||||||||||||||||||||||
Income Statement & Cash Flow | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | ||||||||||||||||||||||||
Cost of Sales | 76,585 | 1,868 | 11,482 | 1,842 | 35,734 | 684 | 97,005 | 1,486 | ||||||||||||||||||||||||
Exploration in Operating Units | 7,015 | 171 | 0 | 0 | 2,366 | 45 | 7,964 | 122 | ||||||||||||||||||||||||
Royalties | 1,595 | 39 | 0 | 0 | 0 | 0 | 1,595 | 24 | ||||||||||||||||||||||||
Comercial Deductions3 | 23,535 | 574 | 17 | 3 | 150 | 3 | 23,605 | 362 | ||||||||||||||||||||||||
Selling Expenses | 4,168 | 102 | 51 | 8 | 380 | 7 | 4,347 | 67 | ||||||||||||||||||||||||
Administrative Expenses | 11,850 | 289 | 61 | 10 | 1,246 | 24 | 12,382 | 190 | ||||||||||||||||||||||||
Other, net | 8,883 | 217 | -17 | -3 | 5,289 | 101 | 10,995 | 168 | ||||||||||||||||||||||||
Sustaining Capex4 | 15,087 | 368 | 540 | 87 | 15,110 | 289 | 21,432 | 328 | ||||||||||||||||||||||||
By-product Credit | -88,645 | -2,162 | -167 | -27 | -12,460 | -238 | -5,084 | -78 | ||||||||||||||||||||||||
All-in Sustaining Cost | 60,074 | 1,465 | 11,967 | 1,920 | 47,815 | 915 | 85,595 | 1,311 | ||||||||||||||||||||||||
*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 all metals produced. | ||||||||||||||||||||||||||||||||
4. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 21 of 27 |
Buenaventura | ||||||||||||||||||||||||||||||||
All-in Sustaining Cost for 4Q18 | ||||||||||||||||||||||||||||||||
Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||||||||||||||||||||||||||
4Q18 | 4Q18 | 4Q18 | 4Q18 | |||||||||||||||||||||||||||||
Au Ounces Sold BVN | 39,114 | |||||||||||||||||||||||||||||||
Au Ounces bought from La Zanja | ||||||||||||||||||||||||||||||||
Au Ounces Sold Net | 39,114 | 20,234 | 51,355 | 70,441 | ||||||||||||||||||||||||||||
4Q18 | 4Q18 | 4Q18 | 4Q18 | |||||||||||||||||||||||||||||
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 | 93,295 | 2,385 | 16,323 | 807 | 31,537 | 614 | 114,601 | 1,627 | ||||||||||||||||||||||||
Exploration in Operating Units | 18,502 | 473 | 2 | 0 | 7,841 | 153 | 21,647 | 307 | ||||||||||||||||||||||||
Royalties | 1,179 | 30 | 0 | 0 | 1,179 | 17 | ||||||||||||||||||||||||||
Comercial Deductions4 | 12,774 | 327 | 54 | 3 | 181 | 4 | 12,875 | 183 | ||||||||||||||||||||||||
Selling Expenses | 3,478 | 89 | 187 | 9 | 337 | 7 | 3,712 | 53 | ||||||||||||||||||||||||
Administrative Expenses | 11,528 | 295 | 847 | 42 | 1,588 | 31 | 12,614 | 179 | ||||||||||||||||||||||||
Other, net | 3,599 | 92 | 645 | 32 | 614 | 12 | 4,187 | 59 | ||||||||||||||||||||||||
Sustaining Capex5 | 11,934 | 305 | 792 | 39 | 19,659 | 383 | 20,237 | 287 | ||||||||||||||||||||||||
By-product Credit | -84,837 | -2,169 | -844 | -42 | -2,871 | -56 | -1,599 | -23 | ||||||||||||||||||||||||
All-in Sustaining Cost | 71,452 | 1,827 | 18,006 | 890 | 58,886 | 1,147 | 104,616 | 1,485 | ||||||||||||||||||||||||
*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. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 22 of 27 |
Buenaventura | ||||||||||||||||||||||||||||||||
All-in Sustaining Cost for FY19 | ||||||||||||||||||||||||||||||||
Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||||||||||||||||||||||||||
FY19 | FY19 | FY19 | FY19 | |||||||||||||||||||||||||||||
Au Ounces Sold BVN | 137,517 | |||||||||||||||||||||||||||||||
Au Ounces bought from La Zanja | ||||||||||||||||||||||||||||||||
Au Ounces Sold Net | 137,517 | 30,710 | 162,013 | 218,771 | ||||||||||||||||||||||||||||
FY19 | FY19 | FY19 | FY19 | |||||||||||||||||||||||||||||
Income Statement & Cash Flow | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | ||||||||||||||||||||||||
Cost of Sales | 286,675 | 2,085 | 39,693 | 1,292 | 108,727 | 671 | 351,330 | 1,606 | ||||||||||||||||||||||||
Exploration in Operating Units | 35,434 | 258 | 2 | 0 | 6,487 | 40 | 38,036 | 174 | ||||||||||||||||||||||||
Royalties | 4,741 | 34 | 0 | 0 | 0 | 0 | 4,741 | 22 | ||||||||||||||||||||||||
Comercial Deductions3 | 65,814 | 479 | 104 | 3 | 459 | 3 | 66,053 | 302 | ||||||||||||||||||||||||
Selling Expenses | 11,477 | 83 | 321 | 10 | 1,163 | 7 | 12,114 | 55 | ||||||||||||||||||||||||
Administrative Expenses | 47,131 | 343 | 2,223 | 72 | 4,709 | 29 | 50,199 | 229 | ||||||||||||||||||||||||
Other, net | 9,972 | 73 | 1,119 | 36 | 5,705 | 35 | 12,853 | 59 | ||||||||||||||||||||||||
Other Incomes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Sustaining Capex4 | 29,940 | 218 | 2,023 | 66 | 31,078 | 192 | 43,474 | 199 | ||||||||||||||||||||||||
By-product Credit | -342,596 | -2,491 | -1,300 | -42 | -12,460 | -77 | -5,685 | -26 | ||||||||||||||||||||||||
All-in Sustaining Cost | 167,443 | 1,218 | 44,185 | 1,439 | 145,868 | 900 | 249,373 | 1,140 | ||||||||||||||||||||||||
*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 all metals produced. | ||||||||||||||||||||||||||||||||
4. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 23 of 27 |
Buenaventura | ||||||||||||||||||||||||||||||||
All-in Sustaining Cost for FY18 | ||||||||||||||||||||||||||||||||
Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||||||||||||||||||||||||||
FY18 | FY18 | FY18 | FY18 | |||||||||||||||||||||||||||||
Au Ounces Sold BVN | 236,197 | |||||||||||||||||||||||||||||||
Au Ounces bought from La Zanja | ||||||||||||||||||||||||||||||||
Au Ounces Sold Net | 236,197 | 74,370 | 171,770 | 344,529 | ||||||||||||||||||||||||||||
FY18 | FY18 | FY18 | FY18 | |||||||||||||||||||||||||||||
Income Statement & Cash Flow | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | ||||||||||||||||||||||||
Cost of Sales | 380,313 | 1,610 | 68,993 | 928 | 101,049 | 588 | 457,436 | 1,328 | ||||||||||||||||||||||||
Exploration in Operating Units | 80,273 | 340 | 74 | 1 | 19,831 | 115 | 88,264 | 256 | ||||||||||||||||||||||||
Royalties | 12,123 | 51 | 0 | 0 | 12,123 | 35 | ||||||||||||||||||||||||||
Comercial Deductions4 | 53,706 | 227 | 340 | 5 | 615 | 4 | 54,133 | 157 | ||||||||||||||||||||||||
Selling Expenses | 12,964 | 55 | 784 | 11 | 1,135 | 7 | 13,835 | 40 | ||||||||||||||||||||||||
Administrative Expenses | 60,081 | 254 | 3,435 | 46 | 5,644 | 33 | 64,167 | 186 | ||||||||||||||||||||||||
Sustaining Capex5 | 41,705 | 177 | 8,073 | 109 | 44,848 | 261 | 63,970 | 186 | ||||||||||||||||||||||||
By-product Credit | -440,668 | -1,866 | -3,582 | -48 | -12,217 | -71 | -6,799 | -20 | ||||||||||||||||||||||||
All-in Sustaining Cost | 222,552 | 942 | 78,786 | 1,059 | 161,248 | 939 | 329,008 | 955 | ||||||||||||||||||||||||
*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. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 24 of 27 |
APPENDIX 7
Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||
Consolidated Statement of Financial Position | ||||||||
As of December 31, 2019 and 2018 | ||||||||
2019 | 2018 | |||||||
Assets | US$(000) | US$(000) | ||||||
Current assets | ||||||||
Cash and cash equivalents | 210,046 | 369,200 | ||||||
Trade and other accounts receivable, net | 287,712 | 211,715 | ||||||
Inventory, net | 97,973 | 135,919 | ||||||
Income tax credit | 31,919 | 24,396 | ||||||
Prepaid expenses | 20,969 | 17,145 | ||||||
Hedge derivative financial instruments | - | 2,759 | ||||||
648,619 | 761,134 | |||||||
Non-current assets | ||||||||
Trade and other receivables, net | 88,515 | 40,593 | ||||||
Inventories, net | 394 | 3,812 | ||||||
Income tax credit | - | 319 | ||||||
Investments in associates and joint ventures | 1,488,247 | 1,473,382 | ||||||
Mining concessions, development costs, right-of-use, property, plant and equipment, net | 1,754,372 | 1,847,615 | ||||||
Investment properties, net | 204 | 222 | ||||||
Deferred income tax asset, net | 74,556 | 38,305 | ||||||
Prepaid expenses | 25,692 | 26,578 | ||||||
Other assets, net | 26,675 | 25,261 | ||||||
3,458,655 | 3,456,087 | |||||||
Total assets | 4,107,274 | 4,217,221 | ||||||
Liabilities and shareholders’ equity, net | ||||||||
Current liabilities | ||||||||
Bank loans | 55,000 | 95,000 | ||||||
Trade and other payables | 166,244 | 188,084 | ||||||
Provisions, contingent liabilities and other liabilities | 72,771 | 68,172 | ||||||
Income tax payable | 5,650 | 1,760 | ||||||
Financial obligations | 265,692 | 46,166 | ||||||
565,357 | 399,182 | |||||||
Non-current liabilities | ||||||||
Trade and other payables | 616 | 639 | ||||||
Provisions, contingent liabilities and other liabilities | 221,736 | 199,762 | ||||||
Financial obligations | 305,996 | 540,896 | ||||||
Contingent consideration liability | 16,410 | 15,755 | ||||||
Deferred income tax liabilities, net | 28,959 | 31,422 | ||||||
573,717 | 788,474 | |||||||
Total liabilities | 1,139,074 | 1,187,656 | ||||||
Shareholders’ equity, net | ||||||||
Capital stock | 750,497 | 750,497 | ||||||
Investment shares | 791 | 791 | ||||||
Additional paid-in capital | 218,450 | 218,450 | ||||||
Legal reserve | 163,168 | 163,115 | ||||||
Other reserves | 269 | 269 | ||||||
Retained earnings | 1,639,658 | 1,675,909 | ||||||
Other reserves of equity | (1,311 | ) | (703 | ) | ||||
Shareholders’ equity, net attributable to owners of the parent | 2,771,522 | 2,808,328 | ||||||
Non-controlling interest | 196,678 | 221,237 | ||||||
Total shareholders’ equity, net | 2,968,200 | 3,029,565 | ||||||
Total liabilities and shareholders’ equity, net | 4,107,274 | 4,217,221 |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 25 of 27 |
Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||||||||||
Consolidated Statement of Income | ||||||||||||||||
For the three and twelve month periods ended December 31, 2019 and 2018 | ||||||||||||||||
For the three-month period ended September 30, | For the twelve month period ended December, 31 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Continuing operations | US$(000) | US$(000) | US$(000) | US$(000) | ||||||||||||
Operating income | ||||||||||||||||
Net sales of goods | 219,306 | 236,080 | 821,930 | 1,106,329 | ||||||||||||
Net sales of services | 11,321 | 10,718 | 23,661 | 24,001 | ||||||||||||
Royalty income | 4,863 | 5,460 | 22,297 | 20,385 | ||||||||||||
Total operating income | 235,490 | 252,258 | 867,888 | 1,150,715 | ||||||||||||
Operating costs | ||||||||||||||||
Cost of sales of goods, without considering depreciation and amortization | (141,945 | ) | (156,863 | ) | (512,874 | ) | (613,381 | ) | ||||||||
Cost of sales of services, without considering depreciation and amortization | (1,245 | ) | (1,097 | ) | (3,378 | ) | (4,318 | ) | ||||||||
Depreciation and amortization | (57,606 | ) | (62,149 | ) | (226,335 | ) | (238,879 | ) | ||||||||
Exploration in operating units | (9,334 | ) | (20,660 | ) | (44,163 | ) | (89,730 | ) | ||||||||
Mining royalties | (3,727 | ) | (3,323 | ) | (12,832 | ) | (21,388 | ) | ||||||||
Total operating costs | (213,857 | ) | (244,092 | ) | (799,582 | ) | (967,696 | ) | ||||||||
Gross profit | 21,633 | 8,166 | 68,306 | 183,019 | ||||||||||||
Operating expenses, net | ||||||||||||||||
Administrative expenses | (21,448 | ) | (16,762 | ) | (76,297 | ) | (77,099 | ) | ||||||||
Selling expenses | (7,827 | ) | (7,013 | ) | (24,313 | ) | (26,948 | ) | ||||||||
Exploration in non-operating areas | (2,740 | ) | (11,461 | ) | (11,879 | ) | (36,307 | ) | ||||||||
Impairment recovery (loss) of long-lived assets | (2,083 | ) | 5,693 | (2,083 | ) | 5,693 | ||||||||||
Reversal (provision) for contingencies and others | 879 | 22,455 | 2,968 | 11,248 | ||||||||||||
Other, net | 2,921 | 20,234 | (14,715 | ) | (1,308 | ) | ||||||||||
Adjustment of component of stripping cost | ||||||||||||||||
Total operating expenses, net | (30,298 | ) | 13,146 | (126,319 | ) | (124,721 | ) | |||||||||
Operating profit (loss) | (8,665 | ) | 21,312 | (58,013 | ) | 58,298 | ||||||||||
Other income (expense), net | ||||||||||||||||
Share in the results of associates and joint ventures | (62,278 | ) | (72,317 | ) | 47,710 | (1,144 | ) | |||||||||
Financial income | 4,019 | 5,904 | 9,675 | 9,685 | ||||||||||||
Financial costs | (8,494 | ) | (10,139 | ) | (42,173 | ) | (38,422 | ) | ||||||||
Net gain (loss) from currency exchange difference | 938 | (1,344 | ) | (734 | ) | (1,384 | ) | |||||||||
Total other income (expense), net | (65,815 | ) | (77,896 | ) | 14,478 | (31,265 | ) | |||||||||
Profit (loss) before income tax | (74,480 | ) | (56,584 | ) | (43,535 | ) | 27,033 | |||||||||
Current income tax | (6,585 | ) | (5,552 | ) | (11,911 | ) | (16,882 | ) | ||||||||
Deferred income tax | 26,062 | 2,039 | 37,501 | (9,997 | ) | |||||||||||
Profit (loss) from continuing operations | (55,003 | ) | (60,097 | ) | (17,945 | ) | 154 | |||||||||
Discontinued operations | ||||||||||||||||
Net loss from discontinued operations attributable to equity holders of the parent | (3,871 | ) | (7,235 | ) | (10,514 | ) | (11,808 | ) | ||||||||
Net profit (loss) | (58,874 | ) | (67,332 | ) | (28,459 | ) | (11,654 | ) | ||||||||
Attributable to: | ||||||||||||||||
Equity holders of the parent | (53,672 | ) | (72,854 | ) | (12,208 | ) | (13,445 | ) | ||||||||
Non-controlling interest | (5,202 | ) | 5,522 | (16,251 | ) | 1,791 | ||||||||||
(58,874 | ) | (67,332 | ) | (28,459 | ) | (11,654 | ) | |||||||||
Basic and diluted profit (loss) per share attributable to | ||||||||||||||||
equity holders of the parent, stated in U.S. dollars | (0.21 | ) | (0.29 | ) | (0.05 | ) | (0.05 | ) |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 26 of 27 |
Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||||||
For the three and twelve month periods ended December 31, 2019 and 2018 | ||||||||||||||||
For the three-month period ended December, 31 | For the twelve month period ended December, 31 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
US$(000) | US$(000) | US$(000) | US$(000) | |||||||||||||
Operating activities | ||||||||||||||||
Proceeds from sales | 174,800 | 264,364 | 783,000 | 1,216,294 | ||||||||||||
Proceeds from dividends | 2,467 | 2,229 | 33,388 | 46,792 | ||||||||||||
Value Added Tax recovered | 16,166 | 35,346 | 45,712 | 106,656 | ||||||||||||
Royalty received | 6,914 | 5,833 | 23,001 | 20,013 | ||||||||||||
Interest received | 529 | 1,481 | 4,265 | 2,383 | ||||||||||||
Proceeds from insurance claim | - | 38,793 | - | 38,793 | ||||||||||||
Payments to suppliers and third-parties | (142,468 | ) | (224,214 | ) | (610,737 | ) | (861,282 | ) | ||||||||
Payments to employees | (30,472 | ) | (25,036 | ) | (137,300 | ) | (151,602 | ) | ||||||||
Payments for tax litigation | (36,322 | ) | - | (36,322 | ) | - | ||||||||||
Payments of interest | (7,455 | ) | (5,042 | ) | (28,266 | ) | (27,699 | ) | ||||||||
Payment of income taxes | (8,855 | ) | (2,553 | ) | (24,935 | ) | (30,898 | ) | ||||||||
Payments of mining royalties | (1,595 | ) | (2,246 | ) | (4,741 | ) | (13,190 | ) | ||||||||
Net cash and cash equivalents provided by operating activities | (26,291 | ) | 88,955 | 47,065 | 346,260 | |||||||||||
Investing activities | ||||||||||||||||
Proceeds from sales of mining concessions, property, plant and equipment | 24 | 1,866 | 726 | 2,240 | ||||||||||||
Acquisitions of mining concessions, development costs, property, plant and equipment | (38,372 | ) | (41,173 | ) | (102,627 | ) | (111,270 | ) | ||||||||
Payments to other assets | (1,232 | ) | (5,537 | ) | (3,700 | ) | (8,529 | ) | ||||||||
Net cash and cash equivalents used in investing activities | (39,580 | ) | (44,844 | ) | (105,601 | ) | (117,559 | ) | ||||||||
Financing activities | ||||||||||||||||
Proceeds of bank loans | - | 15,000 | 55,000 | 95,000 | ||||||||||||
Payments of bank loans | - | (15,000 | ) | (95,000 | ) | (95,000 | ) | |||||||||
Proceeds from financial obligations | 161,894 | - | 161,894 | - | ||||||||||||
Payments of financial obligations | (152,495 | ) | (12,619 | ) | (186,152 | ) | (45,222 | ) | ||||||||
Short-term lease payments | (7,596 | ) | - | (7,596 | ) | - | ||||||||||
Dividends paid to controlling interest | (6,858 | ) | (15,306 | ) | (22,098 | ) | (22,860 | ) | ||||||||
Dividends paid to non-controlling interest | (1,081 | ) | (1,600 | ) | (6,500 | ) | (5,560 | ) | ||||||||
Decrease (increase) of restricted bank accounts | 2,345 | (331 | ) | (166 | ) | (410 | ) | |||||||||
Net cash and cash equivalents used in financing activities | (3,791 | ) | (29,856 | ) | (100,618 | ) | (74,052 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents during the period | (69,662 | ) | 14,255 | (159,154 | ) | 154,649 | ||||||||||
Cash and cash equivalents at the beginning of the period | 279,708 | 354,945 | 369,200 | 214,551 | ||||||||||||
Cash and cash equivalents at period-end | 210,046 | 369,200 | 210,046 | 369,200 |
Compañía de Minas Buenaventura S.A.A. Fourth Quarter 2019 Results Page 27 of 27 |
For the three-month period ended December, 31 | For the twelve month period ended December, 31 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
US$(000) | US$(000) | US$(000) | US$(000) | |||||||||||||
Reconciliation of net profit to cash and cash equivalents provided | ||||||||||||||||
by operating activities | ||||||||||||||||
Net profit (loss) | (58,874 | ) | (67,332 | ) | (28,459 | ) | (11,654 | ) | ||||||||
Plus (less): | ||||||||||||||||
Depreciation and amortization | 57,606 | 62,149 | 226,335 | 238,879 | ||||||||||||
Hedge derivative instruments | - | (9,919 | ) | (4,322 | ) | 1,398 | ||||||||||
Deferred income tax expense (income) | (26,062 | ) | (2,039 | ) | (37,501 | ) | 9,997 | |||||||||
Provision for estimated fair value of sales | (5,922 | ) | (10,434 | ) | (2,741 | ) | 5,225 | |||||||||
Income attributable to non-controlling interest | 5,202 | (5,522 | ) | 16,251 | (1,791 | ) | ||||||||||
Accretion expense of provision for closure of mining units and exploration projects | 2,238 | 5,744 | 10,390 | 4,982 | ||||||||||||
Net share in results of associates | 62,278 | 72,317 | (47,710 | ) | 1,144 | |||||||||||
Recovery (expense) for provision for contingencies | (879 | ) | (22,455 | ) | (2,968 | ) | (11,248 | ) | ||||||||
Provision for impairment of long-lived assets | 2,083 | (5,693 | ) | 2,083 | (5,693 | ) | ||||||||||
Net loss (gain) from currency exchange difference | (938 | ) | 1,344 | 734 | 1,384 | |||||||||||
Reversal (provision) for impairment loss of inventories | 2,940 | 4,294 | 2,239 | 11,559 | ||||||||||||
Bonus provision - executives & employes | 3,797 | 4,906 | 15,855 | 17,757 | ||||||||||||
Write-off of fixed assets | 2,926 | 2,826 | 2,926 | 3,960 | ||||||||||||
Fair Value of provision for contingences liabilities | (807 | ) | (1,815 | ) | 655 | (1,815 | ) | |||||||||
Other net | 11,987 | 1,422 | (3,861 | ) | 5,015 | |||||||||||
Net changes in operating assets and liabilities: | ||||||||||||||||
Decrease (increase) in operating assets - | ||||||||||||||||
Trade and other accounts receivable | (122,853 | ) | 31,433 | (121,936 | ) | 98,185 | ||||||||||
Inventories | 12,742 | (5,955 | ) | 39,125 | (4,206 | ) | ||||||||||
Income tax credit | (3,204 | ) | (8 | ) | (7,204 | ) | 1,863 | |||||||||
Prepaid expenses | (6,678 | ) | (7,018 | ) | (2,938 | ) | 1,383 | |||||||||
Increase (decrease) in operating liabilities - | ||||||||||||||||
Trade and other accounts payable | 33,898 | 23,494 | (21,863 | ) | (45,295 | ) | ||||||||||
Provisions, contingent liabilities and other liabilities | (3,937 | ) | 14,931 | (25,303 | ) | (21,240 | ) | |||||||||
Income tax payable | 3,699 | 56 | 3,890 | (321 | ) | |||||||||||
Proceeds from dividends | 2,467 | 2,229 | 33,388 | 46,792 | ||||||||||||
Net cash and cash equivalents provided by operating activities | (26,291 | ) | 88,955 | 47,065 | 346,260 |
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COMPAÑÍA DE MINAS BUENAVENTURA S.A.A.
By: /s/ LEANDRO GARCÍA RAGGIO
Name: Leandro García Raggio
Title: Chief Financial Officer
Date: February 20, 2020