Company News »

Buenaventura Announces Third Quarter and Nine-Month 2014 Results

Business Wire
Share on StockTwits
Published on

Compa~nia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE:BVN; Lima Stock Exchange:BUE.LM), Peru’s largest publicly-traded precious metals mining company, announced today results for the third quarter (3Q14) and Nine-month (9M14) periods ended October 30, 2014. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non GAAP basis and are stated in U.S. dollars (US$).

Third Quarter 2014 Highlights:

  • EBITDA from direct operations was US$83.9 million in 3Q14 confirming the positive trend announced earlier this year.
  • Net Income increased 20% (US$78.3 million vs US$65.2 million) compared to 3Q13. This result included a US$59.9 million non-cash income from the Canteras del Hallazgo (Chucapaca project) acquisition.
  • Yanacocha’s gold production began its ramp up in 3Q14 to 250K ounces, in line with mining plan to reach guidance of 895k – 985k ounces.
  • Total attributable production was 217K gold ounces and 5.2 million silver ounces (compared to 228K gold ounces and 4.9K million silver ounces in 3Q13).
  • At Tambomayo project, Buenaventura expects approval of Environmental Impact Assessment (EIA) and construction permits by the end of 2014.
  • At La Zanja, drifting activities continue to confirm approximately 350K gold ounces in Alejandra underground deposit.
  • El Brocal plant is expected to operate at 18K TPD by December this year.
  • At Chucapaca project, permits for advanced explorations with underground development will start as soon as the surface property acquisition is completed.
  • Cerro Verde’s plant expansion to 360K TPD is in-line with schedule and budget. Production from this expansion is expected by 2016.

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

3Q14 3Q13 Var% 9M14 9M13 Var%
Total Revenues 317.6 345.8 -8% 904.7 986.3 -8%
Operating Income 26.2 64.6 -60% 54.2 121.5 -55%
EBITDA Direct Operations 83.9 103.5 -19% 210.6 231.4 -9%
EBITDA Including Affiliates 200.8 237.6 -15% 444.3 666.4 -33%
Net Income 78.3 65.2 20% 85.3 187.8 -55%
EPS 0.31 0.26 20% 0.34 0.74 -55%

(*) as of October 30, 2014, Buenaventura had 254,186,867 outstanding shares.

Operating Revenues

During 3Q14, net sales were US$308.1 million, an 8% decrease compared to the US$335.3 million reported in 3Q13. This was explained by the lower provisional pricing for lead-silver and zinc-silver concentrates.

Royalty income decreased 10%, to US$9.5 million in 3Q14 compared to the US$10.5 million reported in 3Q13. This was due to lower revenues at Yanacocha (10% lower QoQ).

Operating Highlights 3Q14 3Q13 Var% 9M14 9M13 Var%
Net Sales

(in millions of US$)

308.1 335.3 -8% 879.8 949.3 -7%
Average Realized Gold Price (US$/oz)* 1,273 1,335 -5% 1,285 1,428 -10%
Average Realized Gold Price (US$/oz) inc. Affiliates 1,274 1,331 -4% 1,284 1,458 -12%
Average Realized Silver Price (US$/oz)* 19.59 20.71 -5% 19.70 22.60 -13%
Average Realized Lead Price (US$/MT)* 2,209 2,087 6% 2,154 2,095 3%
Average Realized

Zinc Price (US$/MT)*

2,369 1,868 27% 2,248 1,867 20%
Average Realized Copper Price (US$/MT)* 6,864 7,155 -4% 6,789 7,175 -5%

(*) Buenaventura’s Direct Operations

Volume Sold 3Q14 3Q13 Var% 9M14 9M13 Var%
Gold Oz Direct Operations 118,822 115,824 3% 337,050 357,097 -6%
Gold Oz inc Associated Companies 240,416 245,448 -2% 656,749 765,841 -14%
Silver Oz 4,867,652 4,482,882 9% 14,013,267 12,387,187 13%
Lead MT 4,847 6,122 -21% 13,350 20,741 -36%
Zinc MT 5,157 9,438 -45% 11,271 30,281 -63%
Copper MT 10,625 7,670 39% 29,812 17,159 74%

For the nine-month period of 2014, net sales decreased 7% from US$949.3 million in 9M13 to US$879.8 million in 9M14. Royalties decreased 33% (US$25.0 million in 9M14 vs US$37.0 million in 9M13).

Production and Operating Costs

In 3Q14, Buenaventura’s gold equity production from direct operations decreased 6%, mainly due to lower production in Orcopampa. Gold production including associated companies decreased 5% due to lower production from Yanacocha. Silver equity production from direct operations increased 31%, mainly due to higher production in Uchucchacua and El Brocal. Silver production including associated companies increased 6%.

Equity Production 3Q14 3Q13 Var% 9M14 9M13 Var%

Gold Oz Direct Operations1

93,484 99,966 -6% 275,834 303,639 -9%
Gold Oz inc Associated Companies 217,308 227,589 -5% 600,661 711,022 -16%
Silver Oz Direct Operations1 4,970,262 3,795,849 31% 13,512,791 10,666,782 27%
Silver Oz inc Associated Companies 5,203,846 4,930,336 6% 14,080,684 14,101,919 0%
Lead MT 5,149 5,977 -14% 14,215 19,580 -27%
Zinc MT 5,163 6,842 -25% 13,530 27,076 -50%
Copper MT Direct Operations1 6,435 4,542 42% 17,792 9,897 80%
Copper MT inc Associated Companies 16,865 17,546 -4% 51,255 45,815 12%

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 54.07% of El Brocal.

Orcopampa’s (100% owned by Buenaventura) total gold production in 3Q14 was 52,317 ounces, 11% lower than the 59,086 ounces reported in 3Q13, due to the depletion of the old tailing gold ounces. Cost Applicable to Sales (CAS) in 3Q14 was US$728/oz of gold, 5% lower compared to 3Q13 (US$765/oz.). The lower cost was mainly explained by a decrease in reagent (cyanide and peroxide) consumption and prices.

At Uchucchacua (100% owned by Buenaventura), total silver production in 3Q14 was 3.3 million ounces, 13% higher than the 2.9 million ounces reported in 3Q13, mainly due to higher ore grade and recovery rate (see Appendix 2). Zinc production in 3Q14 was 1,800 MT, 12% lower than the figure reported in 3Q13 (2,055 MT), while lead production decreased 11% (2,115 MT in 3Q14 vs. 2,371 MT in 3Q13). Cost Applicable to Sales (CAS) in 3Q14 was US$15.23/oz of silver, an increase of 3% compared to 3Q13 (US$14.82/oz.) mainly explained by higher contractor expenses due to an increase in supporting and hauling activities.

At Mallay (100% owned by Buenaventura), total production in 3Q14 was 307,523 ounces of silver, 12% lower than in 3Q13 (348,626 ounces) due to lower ore volume treated and silver grade. Cost Applicable to Sales (CAS) in 3Q14 was US$14.21/oz of silver, a decrease of 4% compared to US$14.76/oz in 3Q13 due to higher zinc commercial deductions.

At Julcani (100% owned by Buenaventura), total production in 3Q14 was 774,728 ounces of silver in-line with 3Q13 production (779,776 ounces). Cost Applicable to Sales (CAS) in 3Q14 was US$15.11/oz of silver, 3% higher than 3Q13 (US$14.69/oz), mainly explained by higher contractor expenses due to productivity bonus.

Breapampa’s (100% owned by Buenaventura) total production in 3Q14 was 19,473 ounces of gold, 3% lower when compared to the figure reported in 3Q13 (20,138 ounces). CAS in 3Q14 was US$386/oz of gold, 19% lower than the US$476/oz in 3Q13, due to a better stripping ratio (0.38 in 3Q14 vs 0.71 in 3Q13).

La Zanja’s (53.06% owned by Buenaventura) total production in 3Q14 was 36,143 ounces (19,177 ounces attributable to Buenaventura) of gold in-line with the production in 3Q13 (35,693 oz or 18,939 ounces attributable to Buenaventura). CAS in 3Q14 was US$549/oz of gold, 3% lower than 3Q13 (US$566/oz.), due to a reduction in reagent consumption and price (lime and cyanide). It is important to mention that the Company’s exploration efforts are now focused on the Alejandra underground project.

Tantahuatay’s (40.10% owned by Buenaventura) total production in 3Q14 was 37,281 ounces of gold (14,948 oz attributable to Buenaventura) 6% lower than the figure reported in 3Q13 (39,561 oz, 15,864 attributable to Buenaventura). CAS in 3Q14 was US$423/oz of gold, 28% lower than in 3Q13 (US$585/oz.), due to lower exploration expenses (land surface acquisition).

At El Brocal (54.07% owned by Buenaventura), copper production was 11,764 MT vs. 8,244 MT reported in 3Q13 (43% increase). Silver production was 0.6 million ounces 33% higher than the 0.4 million ounces reported in 3Q13. Zinc production in 3Q14 was 1,522 MT, 28% lower than the 2,117 MT reported in 3Q13. Copper CAS was US$5,025/MT in 3Q14, a decrease of 9% compared to US$5,531/MT in 3Q13, due to the higher production. Zinc CAS was US$1,320/MT, 9% lower than the US$1,449/MT reported in 3Q13.

General and Administrative Expenses

General and administrative expenses in 3Q14 were US$23.9 million, 24% higher when compared with the figure reported in 3Q13 (US$19.3 million) due to a US$1.9 million credit in the long term compensation provision in 3Q13.

Exploration in Non-Operating Areas

Exploration in non-operating areas during 3Q14 was US$7.2 million compared with a US$5.7 million reported in 3Q13. During the period, Buenaventura’s main exploration efforts were focused on the following projects: La Zanja Underground (US$4.0 million) and Tambomayo (US$3.5 million). For the nine-month 2014 period, the expense was US$32.4 million (US$23.4 million in 9M14).

Delineation of the Natalia and Camila ore-shoots at the Yumpag prospect, located 4 km northeast of the Uchucchacua mine, has shown important results for floatable ore. As of September, we have identified 300,000 MT indicated and inferred resources with 24 oz/t of silver, 15 % of manganese, 1% of lead and 2% of zinc.

At La Zanja, the underground drifting of the 3400 mine level has advanced and started to crosscut into the 400 m long and 2.0 m average thickness Alejandra vein. Sixteen positive drilling intercepts have enabled an indicated and inferred resource estimate of 700,000 MT with 15.6 g/t of gold and 220 g/t of silver mostly in oxide and transitional materials. The initial channel samples of the Alejandra vein have shown an average thickness and grade of 2.1 m@ 29.7 g/t Au & 63.0 g/t Ag over a strike length of 15 m. Significant additional potential remains open, not only at depth for copper, gold and silver sulfides, but also laterally for oxidized ore.

Share in Associated Companies

During 3Q14, Buenaventura’s share in associated companies was US$23.6 million, 42% lower when compared to the US$40.9 million reported in 3Q13, composed by:

Share in the Result of 3Q14 3Q13 Var% 9M14 9M13 Var%
Associates (in millions of US$)
Cerro Verde 14.9 33.6 -56% 57.1 81.6 -30%
Coimolache

(Tantahuatay mine)

6.3 4.9 29% 17.2 15.1 14%
Yanacocha 2.3 2.4 -2% (35.0) 77.2 -145%
Other smaller investments 10.0 0.0 NA 9.0 0.0 NA
Total 23.6 40.9 -42% 39.2 173.8 -77%

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 3Q14, gold production was 249,429 ounces of gold, 3% lower than 3Q13 production (256,038 oz). For the nine-month period 2014, gold production was 647,635 ounces, 22% lower than 832,941 ounces in 2013. This production was in-line with the mining plan. As such, guidance for 2014 remains at between 895k – 985k ounces.

Net income was a US$5.3 million compared to US$5.5 million in 3Q13, driven by a US$9.2 million write-down of leach pad inventory. EBITDA totaled US$158.0 million in 3Q14, a 9% increase compared to 3Q13 (US$145.2 million). For 9M14, net income was a negative US$80.3 million (compared to a positive US$176.8 million in 9M13) and EBITDA was US$170.0 million (compared to US$584.2 million in 9M13).

Capital expenditures at Yanacocha were US$36.0 million in 3Q14 (US$85.7 million in 9M14).

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 3Q14 copper production was 53,268 MT (10,430 MT attributable to Buenaventura), a 20% decrease compared to 3Q13 (66,416 MT and 13,004 MT attributable to Buenaventura). For the first nine-month period of 2014, copper production was 170,906 MT (33,463 MT attributable to Buenaventura).

During 3Q14, Cerro Verde reported net income of US$85.3 million, 50% lower compared to US$171.4 million in 3Q13. This was mainly due to 27% lower sales. EBITDA totaled US$178.5 million in 3Q14, a 40% decrease compared to 3Q13 (US$295.6 million). For 9M14, net income was US$321.7 million (compared to US$416.5 million in 9M13) and EBITDA was US$627.5 million (compared to US$725.8 million in 9M13).

Capital expenditures at Cerro Verde were US$463.8 million in 3Q14 and US$1,301 million in 9M14.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to the net income in 3Q14 was US$6.3 million (US$4.9 million in 3Q13). For 9M14, the contribution was US$17.2 million, compared to US$15.1 million reported in 9M13.

Net Income

Buenaventura’s 3Q14 net income was US$78.3 million (US$0.31 per share), a 20% higher when compared to US$65.2 million (US$0.26 per share) reported in 3Q13. This was explained by a US$59.9 million income related to the Canteras del Hallazgo acquisition. For 9M14, net income was US$85.3 million (US$0.34 per share), 55% lower than the US$187.8 million (US$0.74 per share) reported in 9M13.

Project Development and Exploration

Tambomayo Project (100% ownership)

Advanced exploration and mine development at Tambomayo has so far required US$ 35 million for surface – right acquisition, underground ore-shoot delineation, the ongoing Environmental Impact Study and the permitting process for construction. Measured and indicated resources are 1.6 million MT with 13.6 g/t of gold, 9.2 oz/t of silver, 2.1% of lead and 3.0% of zinc with 3.5 m average vein widths.

Chucapaca Project (100% ownership)

After acquiring the 100% of Chucapaca project, Buenaventura reached an agreement with the Santiago de Oyo Oyo community to purchase 1,380 hectares of surface rights. The legal completion of this agreement will be announced in due time. Permits for advanced exploration with underground development of the Canahuire ore bodies and diamond drilling of other prospects will start as soon as the surface property is firmed up by the Company. We expect to begin diamond drilling the Pachacutec oxide gold prospect in April 2015 and underground development of Canahuire in July 2015.

Other

At the Board of Directors meeting held October 30, 2014, the following resolutions were passed:

  • Declaration of a cash dividend for US$0.023 per share / ADS, payable on November 28, 2014.
  • Acceptance of the resignation of Mr. Francois Muths, as Vice President Operations. The Company appreciates his very important contribution after 40 years in Buenaventura.
  • Appointment of Mr. Igor Gonzales as Vice President of Operations, effective November, 1, 2014. Mr. Gonzales is a Chemical Engineer from San Antonio Abad University. He was Vice President and General Manager of Pierina Mine in Peru, President of Barrick South America, and Chief Operating Officer of Barrick Gold Corporation and worked for Southern Peru Copper Corporation Peru. Mr. Gonzales will continue to be a Board Member.

Company Description

Compa~n’ia 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*, Breapampa*, Mallay*, Julcani*, Recuperada*, El Brocal, La Zanja and Coimolache and is developing the Tambomayo and Chucapaca projects.

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

For a printed version of the Company’s 2013 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to the Company’s, Yanacocha’s and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.

**Tables to follow**

APPENDIX 1

Equity Participation in
Subsidiaries and Affiliates (as of September 30, 2014)
BVN Operating
Equity % Mines / Business
Minera La Zanja S.A* 53.06 La Zanja
Sociedad Minera El Brocal S.A.A* 54.07 Colquijirca and Marcapunta
Canteras del Hallazgo S.A * 100.00 Chucapaca project
Compa~n’ia 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 Energ’etico de Huancavelica S.A* 100.00 Energy – Huanza Hydroelectrical plant
Buenaventura Ingenieros S.A* 100.00 Engineering Consultant
(*)Consolidates
(**) Equity Accounting

APPENDIX 2

GOLD PRODUCTION
Three Months Ended Sep 30 Nine Months Ended Sep 30
Orcopampa Orcopampa Old Tailings Orcopampa Orcopampa Old Tailings
2014 2013 % 2014 2013 % 2014 2013 % 2014 2013 %
Ore Milled DMT 119,748 116,724 3% 0 123,769 - 338,832 344,444 -2% 0 377,513 -
Ore Grade OZ/MT 0.44 0.48 -8% 0.000 0.05 - 0.45 0.49 -9% 0.000 0.05 -
Recovery Rate % 97.6% 96.7% 1% 0.0% 78.0% - 97.1% 96.0% 1% 0.0% 76.1% -
Ounces Produced 52,317 54,228 -4% 0 4,858 - 147,349 162,793 -9% 0 13,761 -
Orcopampa Total Production 3Q14 52,317 3Q13 59,086 9M14 147,349 9M13 176,554
La Zanja Tantahuatay
3Q14 3Q13 % 9M14 9M13 % 3Q14 3Q13 % 9M14 9M13 %
Ounces Produced 36,143 35,693 1% 108,765 103,944 5% 37,281 39,561 -6% 105,085 109,250 -4%
Breapampa
3Q14 3Q13 % 9M14 9M13 %
Ounces Produced 19,473 20,138 -3% 61,629 59,964 3%
SILVER PRODUCTION
Three Months Ended Sep 30 Nine Months Ended Sep 30
Uchucchacua Colquijirca Uchucchacua Colquijirca
2014 2013 % 2014 2013 % 2014 2013 % 2014 2013 %
Ore Milled DMT 267,963 266,741 0% 64,636 120,709 -46% 725,664 762,712 -5% 64,636 1,069,896 -94%
Ore Grade OZ/MT 14.68 13.65 8% 2.32 0.97 139% 14.85 13.86 7% 2.32 1.14 104%
Recovery Rate % 83.7% 80.2% 4% 75.2% 64.7% 16% 80.4% 81.1% -1% 75.2% 65.8% 14%
Ounces Produced 3,293,830 2,920,872 13% 112,446 78,155 44% 8,659,942 8,572,792 1% 112,446 800,801 -86%
ZINC PRODUCTION
Three Months Ended Sep 30 Nine Months Ended Sep 30
Uchucchacua Colquijirca Uchucchacua Colquijirca
2014 2013 % 2014 2013 % 2014 2013 % 2014 2013 %
Ore Milled DMT 267,963 266,741 0% 64,636 120,709 -46% 725,664 762,712 -5% 64,636 1,069,896 -94%
Ore Grade % 1.10% 1.22% -10% 3.38% 2.93% 15% 1.09% 1.20% -9% 3.38% 2.89% 17%
Recovery Rate % 61.2% 63.3% -3% 69.8% 58.8% 19% 61.1% 65.2% -6% 69.8% 64.3% 8%
MT Produced 1,800 2,055 -12% 1,522 2,117 -28% 4,845 5,992 -19% 1,522 19,898 -92%

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

3Q14 3Q13 9M14 9M13
Net Income 80,599 74,649 102,801 208,324
Add / Substract: 3,297 28,892 107,813 23,082
Provision for income tax, net 24,276 30,249 42,092 73,194
Share in associated companies by the equity method, net -23,553 -40,866 -39,242 -173,840
Interest income -60,489 -697 -64,137 -2,353
Interest expense 1,093 1,157 7,683 9,510
Loss on currency exchange difference 4,225 106 4,989 6,709
Long Term Compensation provision 0 -1,919 1,925 -20,446
Depreciation and Amortization 55,928 38,656 151,837 122,171
Workers’ participation provision 1,817 2,206 1,872 8,137
Impairment of long-term lived assets 0 0 794 0
EBITDA Buenaventura Direct Operations 83,896 103,541 210,614 231,406
EBITDA Yanacocha (43.65%) 68,980 63,389 74,216 255,004
EBITDA Cerro Verde (19.58%) 34,957 57,874 122,873 142,121
EBITDA Coimolache (40.10%) 12,961 12,761 36,610 37,902
EBITDA Buenaventura + All Associates 200,794 237,565 444,312 666,433

Note:

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

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

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

APPENDIX 4

Compa~n’ia de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Financial Position
As of September 30, 2014 and December 31, 2013
2014 2013
Assets US$(000)

US$(000)

Current assets
Cash and cash equivalents 120,027 61,898
Trade and other accounts receivable, net 280,225 252,962
Income tax credit 49,168 37,370
Prepaid expenses 13,019 14,597
Hedge derivative financial instruments 3,775
Embedded derivatives for concentrate sales, net 1,857
Inventory, net 152,160 175,719
Total current assets 618,374 544,403
Non-current assets
Trade and other accounts receivable, net 24,178 28,079
Long-term inventory 43,247 23,366
Investment in associates 2,344,401 2,358,410
Mining concessions, development costs, property, plant and equipment, net 1,726,712 1,515,460
Investment properties 11,341
Deferred income tax asset 65,912 83,525
Other assets, net 3,153 7,132
Total non-current assets 4,218,944 4,015,972
Total assets 4,837,318 4,560,375
Liabilities and shareholders’ equity
Current liabilities
Overdraft and bank loans 40,504
Trade and other accounts payable 252,472 301,811
Provisions 66,946 69,800
Income tax payable 2,849 2,140
Hedge derivative financial instruments 1,093
Embedded derivatives for concentrate sales, net 7,094
Financial obligations 56,531 11,370
Total current liabilities 426,396 386,214
Non-current liabilities
Financial liability at fair value through profit or loss 23,026
Trade and other accounts payable 15,905 12,229
Provisions 95,555 106,376
Financial obligations 324,652 223,027
Deferred income tax liability 22,363
Total non-current liabilities 481,501 341,632
Total liabilities 907,897 727,846
Shareholders’ equity
Issued capital, net of treasury shares for US$(000)62,665 750,497 750,497
Investment shares, net of treasury shares for US$(000)765 1,396 1,396
Additional paid-in capital 219,055 219,055
Legal reserve 162,688 162,663
Other reserves 269 269
Retained earnings 2,503,753 2,421,238
Other equity reserves 1,745 104
3,639,403 3,555,222
Non-controlling interest 290,018 277,307
Total shareholders’ equity 3,929,421 3,832,529
Total liabilities and shareholders’ equity 4,837,318 4,560,375

Compa~n’ia de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Income
For the three and nine-month periods ended September 30, 2014 and 2013
For the three-month period For the nine-month period
ended September 30, ended September 30,
2,014 2,013 2,014 2,013
US$(000) US$(000) US$(000) US$(000)
Operating income
Net sales 308,088 335,283 879,766 949,255
Royalty income 9,532 10,538 24,956 37,033
Total operating income 317,620 345,821 904,722 986,288
Operating costs
Cost of sales, without considering depreciation and amortization (161,255 ) (163,212 ) (453,848 ) (494,486 )
Exploration in operating units (25,744 ) (39,140 ) (79,379 ) (135,190 )
Depreciation and amortization (55,928 ) (38,656 ) (151,837 ) (122,171 )
Mining royalties (7,377 ) (7,272 ) (21,857 ) (23,867 )
Total operating costs (250,304 ) (248,280 ) (706,921 ) (775,714 )
Gross profit 67,316 97,541 197,801 210,574
Operating expenses
Administrative expenses (23,946 ) (19,316 ) (75,763 ) (56,484 )
Exploration in non-operating areas (7,180 ) (5,686 ) (32,375 ) (23,361 )
Paralyzation of mining units (4,056 ) (19,997 )
Selling expenses (4,338 ) (4,063 ) (13,122 ) (12,543 )
Contingencies 7,862 (2,083 ) (1,781 ) (4,476 )
Impairment of long-term lived assets (794 )
Other, net (9,507 ) (1,795 ) 217 7,834
Total operating expenses (41,165 ) (32,943 ) (143,615 ) (89,030 )
Operating profit 26,151 64,598 54,186 121,544
Other income, net
Share in the results of associates under equity method 23,553 40,866 39,242 173,840
Financial income 60,489 697 64,137 2,353
Financial expenses (1,093 ) (1,157 ) (7,683 ) (9,510 )
Net loss from currency exchange difference (4,225 ) (106 ) (4,989 ) (6,709 )
Total other income, net 78,724 40,300 90,707 159,974
Profit before income taxes and non-controlling interest 104,875 104,898 144,893 281,518
Income taxes (24,276 ) (30,249 ) (42,092 ) (73,194 )
Net profit 80,599 74,649 102,801 208,324
Attributable to:
Owners of the parent 78,336 65,166 85,312 187,751
Non-controlling interest 2,263 9,483 17,489 20,573
80,599 74,649 102,801 208,324
Basic and diluted earnings per share attributable
to owners of the parent, stated in U.S. dollars 0.31 0.26 0.34 0.74
Weighted average number of shares outstanding
(common and investment), in units 254,186,867 254,186,867 254,186,867 254,186,867
Compa~n’ia de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Cash Flows
For the three and nine-month periods ended September 30, 2014 and 2013
For the three-month For the nine-month period
period ended September 30, ended September 30,
2,014 2,013 2,014 2,013
US$(000) US$(000) US$(000) US$(000)
Operating activities
Proceeds from sales 322,657 291,083 856,391 1,039,480
Value Added Tax (VAT) recovered 25,399 39,685 59,106
Royalties received 6,724 13,646 22,148 39,824
Dividends received 2,484 712 6,926 7,776
Interest received 477 1,992 4,306 4,133
Payments to suppliers and third-parties (131,594 ) (176,678 ) (519,735 ) (654,597 )
Payments to employees (50,111 ) (66,545 ) (157,072 ) (170,277 )
Payment of income tax (13,449 ) (11,392 ) (31,393 ) (66,380 )
Payment of royalties (5,882 ) (10,497 ) (16,848 ) (27,991 )
Payment of interest 80 (143 ) (5,373 ) (8,558 )
Net cash and cash equivalents provided by operating activities 131,386 67,577 199,035 222,516
Investing activities
Proceeds from settlement of financial assets at fair value through profit or loss 40,000 40,000
Proceeds from collections of loans to associates 5,095 5,530 15,553 20,494
Proceeds from sales of mining concessions, property, plant and equipment 79 1,948 169 4,963
Proceeds from settlement of investment in shares
Acquisitions of mining concessions, development costs, property, plant and equipment (108,027 ) (122,818 ) (241,983 ) (356,082 )
Acquisitions of investment properties (11,705 )
Payment for purchase of investments (80,373 ) (80,373 )
Associates loans granted
Contributions and investments in associates 732 (1,654 ) (820 ) (5,339 )
Net cash and cash equivalents used in investing activities (182,494 ) (76,994 ) (319,159 ) (295,964 )
Financing activities
Increase of bank loans 38,183 21,126 40,504 21,126
Increase in financial obligations 3,119 186,558 60,000
Payment of financial obligations (6,179 ) (41 ) (39,772 ) (142 )
Dividends paid (2,797 ) (76,269 )
Dividends paid to non-controlling interest (2,040 ) (6,960 ) (6,240 ) (13,533 )
Purchase of associates’ shares (462 )
Net cash and cash equivalents provided by (used in) financing activities 33,083 14,125 178,253 (9,280 )
Net increase (decrease) in cash and cash equivalents during the period (18,025 ) 4,708 58,129 (82,728 )
Cash and cash equivalents at the beginning of the period 138,052 99,276 61,898 186,712
Cash and cash equivalents at period-end 120,027 103,984 120,027 103,984

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 six months ended June 30, 2013 and 2014, and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units. The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and six months ended June 30, 2013 and 2014 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.

Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization, to consolidated Cost applicable to sales:
For the 3 months ended Sep 30 For the 9 months ended Sep 30
2014 2013 2014 2013
(in thousands of US$)
Consolidated Cost of sales excluding depreciation and amortization 161,255 163,212 453,848 494,486
Add:
Consolidated Exploration in units in operation 25,744 39,140 79,379 135,190
Consolidated Commercial deductions 51,285 41,020 130,199 118,548
Consolidated Selling expenses 4,338 4,063 13,122 12,543
Consolidated Cost applicable to sales 242,622 247,435 676,547 760,766
Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization (by mine and mineral) to consolidated Cost of sales:
For the 3 months ended Sep 30 For the 9 months ended Sep 30
2014 2013 2014 2013

Cost of sales by mine and mineral

(in thousands of US$)
Julcani, Gold 5 32 -4 176
Julcani, Silver 7,123 2,514 17,979 10,837
Julcani, Lead 534 196 1,471 846
Julcani, Copper 66 45 140 227
Mallay, Silver 2,021 2,286 6,142 9,285
Mallay, Lead 1,444 1,153 4,368 4,974
Mallay, Zinc 2,285 1,258 5,451 5,180
Breapampa, Gold 8,248 9,347 27,119 37,390
Breapampa, Silver 472 546 1,771 2,315
Orcopampa, Gold 26,435 30,376 79,687 97,771
Orcopampa, Silver 808 1,030 2,306 3,742
Uchucchacua, Silver 29,854 29,108 97,122 83,176
Uchucchacua, Lead 1,906 2,243 5,818 5,751
Uchucchacua, Zinc 1,424 1,449 4,001 4,301
La Zanja, Gold 20,417 20,787 58,632 62,899
La Zanja, Silver 802 885 2,549 2,840
El Brocal, Gold 1,220 786 2,508 2,262
El Brocal, Silver 2,733 2,921 8,459 9,685
El Brocal, Lead 508 975 904 6,275
El Brocal, Zinc 901 3,630 970 14,183
El Brocal, Copper 23,726 22,892 71,394 57,115
Other Small Units, Gold 60 401 2,656 11,967
Other Small Units, Silver 2 1,618 565 4,463
Other Small Units, Lead 0 1,089 342 2,102
Other Small Units, Zinc 1 1,380 542 2,584
Non Mining Units 28,260 24,265 50,957 52,142
Consolidated Cost of sales, excluding depreciation and amortization 161,255 163,212 453,848 494,486
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 Sep 30 For the 9 months ended Sep 30
2014 2013 2014 2013

Exploration expenses in units in operation by mine and mineral

(in thousands of US$)
Julcani, Gold 2 15 -2 70
Julcani, Silver 2,781 1,223 7,819 4,274
Julcani, Lead 209 96 640 334
Julcani, Copper 26 22 61 89
Mallay, Silver 825 898 2,133 3,560
Mallay, Lead 589 453 1,517 1,907
Mallay, Zinc 932 495 1,893 1,986
Breapampa, Gold 77 268 399 2,612
Breapampa, Silver 4 16 26 162
Orcopampa, Gold 13,493 12,844 40,437 44,172
Orcopampa, Silver 412 435 1,170 1,691
Uchucchacua, Silver 5,437 5,219 18,509 18,067
Uchucchacua, Lead 347 402 1,109 1,249
Uchucchacua, Zinc 259 260 762 934
La Zanja, Gold 29 60 101 1,157
La Zanja, Silver 1 3 4 52
El Brocal, Gold 0 0 0 0
El Brocal, Silver 0 0 0 0
El Brocal, Lead 0 0 0 0
El Brocal, Zinc 0 0 0 0
El Brocal, Copper 0 0 0 0
Other Small Units, Gold 309 1,469 1,812 29,966
Other Small Units, Silver 11 5,924 385 11,177
Other Small Units, Lead -2 3,988 233 5,263
Other Small Units, Zinc 3 5,052 370 6,470
Non Mining Units 0 0 0 0
Consolidated Exploration expenses in units in operation 25,744 39,140 79,379 135,190
Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) to consolidated Commercial deductions:
For the 3 months ended Sep 30 For the 9 months ended Sep 30
2014 2013 2014 2013

Commercial Deductions in units in operation by mine and mineral

(in thousands of US$)

Julcani, Gold 1 11 0 68
Julcani, Silver 1,689 891 4,853 4,169
Julcani, Lead 127 70 395 325
Julcani, Copper 16 16 41 87
Mallay, Silver 1,087 1,115 2,855 3,324
Mallay, Lead 756 563 1,966 1,781
Mallay, Zinc 1,778 614 3,858 1,854
Breapampa, Gold 18 21 76 84
Breapampa, Silver 0 0 0 0
Orcopampa, Gold 72 57 201 246
Orcopampa, Silver 0 0 0 0
Uchucchacua, Silver 10,305 10,933 26,256 32,751
Uchucchacua, Lead 699 888 1,616 2,415
Uchucchacua, Zinc 1,172 574 2,838 1,806
La Zanja, Gold 45 38 201 141
La Zanja, Silver 0 0 5 0
El Brocal, Gold 1,419 612 2,574 1,660
El Brocal, Silver 3,011 2,275 8,758 7,106
El Brocal, Lead 306 759 675 4,604
El Brocal, Zinc 617 2,827 785 10,405
El Brocal, Copper 28,148 17,828 71,668 41,902
Other Small Units, Gold 2 0 271 661
Other Small Units, Silver -1 365 71 1,361
Other Small Units, Lead -1 249 50 802
Other Small Units, Zinc 19 315 186 998
Non Mining Units 0 0 0 0
Consolidated Commercial deductions in units in operation 51,285 41,020 130,199 118,548
Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses:
For the 3 months ended Sep 30 For the 9 months ended Sep 30
2014 2013 2014 2013

Selling expenses by mine and mineral

(in thousands of US$)
Julcani, Gold 0 3 0 8
Julcani, Silver 275 219 714 518
Julcani, Lead 21 17 58 40
Julcani, Copper 3 4 6 11
Mallay, Silver 178 157 519 538
Mallay, Lead 127 79 369 288
Mallay, Zinc 201 87 461 300
Breapampa, Gold 99 0 306 0
Breapampa, Silver 6 0 20 0
Orcopampa, Gold 251 0 706 0
Orcopampa, Silver 8 0 20 0
Uchucchacua, Silver 843 750 2,229 2,414
Uchucchacua, Lead 54 58 134 167
Uchucchacua, Zinc 40 37 92 125
La Zanja, Gold 326 133 981 348
La Zanja, Silver 13 6 43 16
El Brocal, Gold 72 55 179 171
El Brocal, Silver 162 206 605 732
El Brocal, Lead 30 69 65 474
El Brocal, Zinc 53 256 69 1,072
El Brocal, Copper 1,409 1,614 5,107 4,317
Other Small Units, Gold 5 28 130 560
Other Small Units, Silver 0 113 28 209
Other Small Units, Lead 0 76 17 98
Other Small Units, Zinc 0 96 27 121
Non Mining Units 160 0 237 13
Consolidated Selling expenses 4,338 4,063 13,122 12,543
JULCANI JULCANI
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
Cost of Sales (without D&A) (US$000) 5 7,123 534 66 7,729 32 2,514 196 45 2,787 Cost of Sales (without D&A) (US$000) -4 17,979 1,471 140 19,587 176 10,837 846 227 12,085
Add: Add:
Exploration Expenses (US$000) 2 2,781 209 26 3,017 15 1,223 96 22 1,356 Exploration Expenses (US$000) -2 7,819 640 61 8,518 70 4,274 334 89 4,766
Commercial Deductions (US$000) 1 1,689 127 16 1,832 11 891 70 16 987 Commercial Deductions (US$000) -0 4,853 395 41 5,289 68 4,169 325 87 4,649
Selling Expenses (US$000) 0 275 21 3 299 3 219 17 4 243 Selling Expenses (US$000) -0 714 58 6 777 8 518 40 11 578
Cost Applicable to Sales (US$000) 9 11,868 890 - 110 12,877 61 4,847 379 - 86 5,373 Cost Applicable to Sales (US$000) -6 31,365 2,564 - 248 34,171 322 19,797 1,545 - 414 22,078
Divide: Divide:
Volume Sold 9 785,437 522 21

Not Applicable

64 329,854 249 17 Not Applicable Volume Sold -3 2,249,152 1,658 49 Not Applicable 345 1,356,064 1,123 89

Not Applicable

CAS 988 15.11 1,707 - 5,256 Not Applicable 950 14.69 1,524 - 5,056 Not Applicable CAS - 13.95 1,546 - 5,014

Not Applicable

934 14.60 1,376 - 4,639

Not Applicable

MALLAY

MALLAY
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
Cost of Sales (without D&A) (US$000) 2,021.03 1,444.14 2,284.96 5,750 2,286 1,153 1,258 4,698 Cost of Sales (without D&A) (US$000) 6,142 4,368 5,451 15,961 9,285 4,974 5,180 19,439
Add: Add:
Exploration Expenses (US$000) 824.71 589.30 932.41 2,346 898 453 495 1,846 Exploration Expenses (US$000) 2,133 1,517 1,893 5,543 3,560 1,907 1,986 7,452
Commercial Deductions (US$000) 1,087 756 1,778 3,620 1,115 563 614 2,292 Commercial Deductions (US$000) 2,855 1,966 3,858 8,679 3,324 1,781 1,854 6,959
Selling Expenses (US$000) 178.10 127.26 201.36 507 157 79 87 323 Selling Expenses (US$000) 519 369 461 1,350 538 288 300 1,126
Cost Applicable to Sales (US$000) - 4,110 2,916 5,196 - 12,223 - 4,457 2,249 2,453 - 9,159 Cost Applicable to Sales (US$000) - 11,649 8,221 11,663 - 31,532 - 16,707 8,950 9,320 - 34,977
Divide: Divide:
Volume Sold 289,181 1,869 2,753 Not Applicable 302,059 1,543 1,915 Not Applicable Volume Sold 835,356 5,456 6,616 Not Applicable 866,336 4,957 5,796 Not Applicable
CAS - 14.21 1,560 1,887 - Not Applicable - 14.76 1,458 1,281 - Not Applicable CAS - 13.94 1,507 1,763 -

Not Applicable

- 19.28 1,805 1,608 -

Not Applicable

BREAPAMPA BREAPAMPA
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL 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) 8,248 472 8,720 9,347 546 9,893 Cost of Sales (without D&A) (US$000) 27,119 1,771 28,890 37,390 2,315 39,704
Add: Add:
Exploration Expenses (US$000) 77 4 82 268 16 283 Exploration Expenses (US$000) 399 26 425 2,612 162 2,774
Commercial Deductions (US$000) 18 18 21 21 Commercial Deductions (US$000) 76 76 84 84
Selling Expenses (US$000) 99 6 105 Selling Expenses (US$000) 306 20 326
Cost Applicable to Sales (US$000) 8,443 482 - - - 8,924 9,636 561 - - - 10,197 Cost Applicable to Sales (US$000) 27,899 1,817 - - - 29,716 40,085 2,476 - - - 42,562
Divide: Divide:
Volume Sold 21,877 83,179 Not Applicable 20,235 77,129 Not Applicable Volume Sold 65,901 285,292 Not Applicable 59,704 223,002 Not Applicable
CAS 386 5.79 - - - Not Applicable 476 7.28 - - - Not Applicable CAS 423 6.37 - - -

Not Applicable

671 11.10 - - -

Not Applicable

ORCOPAMPA ORCOPAMPA
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
Cost of Sales (without D&A) (US$000) 26,435 808 27,243 30,376 1,030 31,405 Cost of Sales (without D&A) (US$000) 79,687 2,306 81,993 97,771 3,742 101,513
Add: Add:
Exploration Expenses (US$000) 13,493 412 13,905 12,844 435 13,279 Exploration Expenses (US$000) 40,437 1,170 41,607 44,172 1,691 45,862
Commercial Deductions (US$000) 72 0 73 57 57 Commercial Deductions (US$000) 201 0 202 246 246
Selling Expenses (US$000) 251 8 258 0 0 0 Selling Expenses (US$000) 706 20 726 0 0 0
Cost Applicable to Sales (US$000) 40,251 1,228 - - - 41,479 43,277 1,465 - - - 44,742 Cost Applicable to Sales (US$000) 121,032 3,497 - - - 124,529 142,188 5,433 - - - 147,621
Divide: Divide:
Volume Sold 55,279 113,405 Not Applicable 56,552 125,136 Not Applicable Volume Sold 152,667 293,493 Not Applicable 174,862 403,855 Not Applicable
CAS 728 10.83 - - - Not Applicable 765 11.71 - - - Not Applicable CAS 793 11.91 - - -

Not Applicable

813 13.45 - - -

Not Applicable

UCHUCCHACUA UCHUCCHACUA
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL 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) 29,854 1,906 1,424 33,184 29,108 2,243 1,449 32,800 Cost of Sales (without D&A) (US$000) 97,122 5,818 4,001 106,941 83,176 5,751 4,301 93,228
Add: Add:
Exploration Expenses (US$000) 5,437 347 259 6,044 5,219 402 260 5,881 Exploration Expenses (US$000) 18,509 1,109 762 20,380 18,067 1,249 934 20,251
Commercial Deductions (US$000) 10,305 699 1,172 12,176 10,933 888 574 12,395 Commercial Deductions (US$000) 26,256 1,616 2,838 30,710 32,751 2,415 1,806 36,972
Selling Expenses (US$000) 843 54 40 937 750 58 37 845 Selling Expenses (US$000) 2,229 134 92 2,454 2,414 167 125 2,706
Cost Applicable to Sales (US$000) - 46,440 3,006 2,895 - 52,341 - 46,010 3,590 2,320 - 51,920 Cost Applicable to Sales (US$000) - 144,116 8,676 7,693 - 160,486 - 136,408 9,582 7,166 - 153,157
Divide: Divide:
Volume Sold 3,048,394 1,725 1,218 Not Applicable 3,105,420 2,367 1,705 Not Applicable Volume Sold 8,733,658 4,865 3,275 Not Applicable 7,910,875 5,849 4,856 Not Applicable
CAS - 15.23 1,742 2,376 -

Not Applicable

- 14.82 1,517 1,360 -

Not Applicable

CAS - 16.50 1,783 2,349 -

Not Applicable

- 17.24 1,638 1,476 -

Not Applicable

LA ZANJA LA ZANJA
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL
Cost of Sales (without D&A) (US$000) 20,417 802 21,219 20,787 885 21,672 Cost of Sales (without D&A) (US$000) 58,632 2,549 61,181 62,899 2,840 65,738
Add: Add:
Exploration Expenses (US$000) 29 1 30 60 3 62 Exploration Expenses (US$000) 101 4 106 1,157 52 1,210
Commercial Deductions (US$000) 45 45 38 38 Commercial Deductions (US$000) 201 5 206 141 141
Selling Expenses (US$000) 326 13 339 133 6 139 Selling Expenses (US$000) 981 43 1,024 348 16 364
Cost Applicable to Sales (US$000) 20,817 816 - - - 21,633 21,018 893 - - - 21,911 Cost Applicable to Sales (US$000) 59,915 2,601 - - - 62,516 64,545 2,908 - - - 67,453
Divide: Divide:
Volume Sold 37,889 99,349 Not Applicable 37,118 103,166 Not Applicable Volume Sold 110,053 316,577 Not Applicable 100,267 273,139 Not Applicable
CAS 549 8.21 - - - Not Applicable 566 8.66 - - - Not Applicable CAS 544 8.22 - - -

Not Applicable

644 10.65 - - - Not Applicable

BROCAL BROCAL
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL 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) 1,220 2,733.49 508.30 900.58 23,726 29,088 786 2,921 975 3,630 22,892 31,204 Cost of Sales (without D&A) (US$000) 2,508 8,459 904 970 71,394 84,234 2,262 9,685 6,275 14,183 57,115 89,520
Add: Add:
Exploration Expenses (US$000) Exploration Expenses (US$000)
Commercial Deductions (US$000) 1,419 3,011 306 617 28,148 33,502 612 2,275 759 2,827 17,828 24,301 Commercial Deductions (US$000) 2,574 8,758 675 785 71,668 84,459 1,660 7,106 4,604 10,405 41,902 65,676
Selling Expenses (US$000) 72 162.39 30.20 53.50 1,409 1,728 55 206 69 256 1,614 2,200 Selling Expenses (US$000) 179 605 65 69 5,107 6,026 171 732 474 1,072 4,317 6,767
Cost Applicable to Sales (US$000) 2,711 5,907 844 1,571 53,284 64,318 1,453 5,402 1,803 6,713 42,334 57,705 Cost Applicable to Sales (US$000) 5,261 17,821 1,643 1,824 148,170 174,719 4,093 17,523 11,353

25,660

103,335 161,963
Divide: Divide:
Volume Sold 2,902 446,115 731 1,191 10,604 Not Applicable 1,374 318,443 1,137 4,632 7,653 Not Applicable Volume Sold 5,596 1,255,826 1,150 1,052 29,762 Not Applicable 3,416 916,026 6,485 16,419 17,069 Not Applicable
CAS 934 13.24 1,154 1,320 5,025 Not Applicable 1,057 16.96 1,585 1,449 5,531 Not Applicable CAS 940 14.19 1,429 1,735 4,978

Not Applicable

1,198 19.13 1,751 1,563 6,054 Not Applicable

NON MINING COMPANIES NON MINING COMPANIES
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL 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) 28,260 24,265 Cost of Sales (without D&A) (US$000) 50,957 52,142
Add: Add:
Selling Expenses (US$000) 160 0 Selling Expenses (US$000) 237 13
Total (US$000) 28,420 24,265 Total (US$000) 51,194 52,156
BUENAVENTURA CONSOLIDATED BUENAVENTURA CONSOLIDATED
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL 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) 56,385 43,816 4,392 4,610 23,792 161,255 61,729 40,908 5,657 7,717 22,937 163,212 Cost of Sales (without D&A) (US$000) 170,598 136,892 12,903 10,963 71,534 453,848 212,464 126,343 19,948 26,247 57,342 494,486
Add: Add:
Exploration Expenses (US$000) 13,910 9,471 1,143 1,194 26 25,744 14,656 13,717 4,939 5,806 22 39,140 Exploration Expenses (US$000) 42,748 30,046 3,499 3,025 61 79,379 77,976 38,982 8,753 9,390 89 135,190
Commercial Deductions (US$000) 1,557 16,091 1,886 3,586 28,164 51,285 739 15,579 2,528 4,329 17,844 41,020 Commercial Deductions (US$000) 3,322 42,798 4,702 7,667 71,709 130,199 2,859 48,710 9,926 15,063 41,990 118,548
Selling Expenses (US$000) 753 1,485 232 295 1,412 4,338 219 1,451 299 476 1,618 4,063 Selling Expenses (US$000) 2,302 4,178 643 649 5,113 13,122 1,088 4,427 1,068 1,618 4,328 12,543
Cost Applicable to Sales (US$000) 72,606 70,863 7,653 9,685 53,394 242,622 77,343 71,655 13,422 18,328 42,420 247,435 Cost Applicable to Sales (US$000)

218,970

213,915 21,746

22,304

148,417

676,547

294,387

218,462

39,695 52,318 103,749 760,766
Divide: Divide:
Volume Sold 118,822 4,867,652 4,847 5,157 10,625 Not Applicable 115,824 4,482,882 6,122 9,438 7,670 Not Applicable Volume Sold 337,050 14,013,267 13,350 11,271 29,812 Not Applicable 357,097 12,387,186 20,741 30,281 17,159 Not Applicable
CAS - - - - - Not Applicable Not Applicable CAS - - - - - Not Applicable Not Applicable
COIMOLACHE COIMOLACHE
3Q 2014 3Q 2013 9M 2014 9M 2013
GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL GOLD (OZ) SILVER (OZ) LEAD (MT) ZINC (MT) COPPER (MT) TOTAL 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) 13,497 1,295 14,793 15,595 1,102 16,698 Cost of Sales (without D&A) (US$000) 40,137 3,071 43,208 48,208 4,243 52,451
Add: Add:
Exploration Expenses (US$000) 1,184 114 1,298 6,376 451 6,827 Exploration Expenses (US$000) 4,666 357 5,023 14,351 1,263 15,614
Commercial Deductions (US$000) 37 3 40 255 22 276 Commercial Deductions (US$000) 251 15 267 668 72 740
Selling Expenses (US$000) 266 25 291 120 9 129 Selling Expenses (US$000) 722 55 778 423 37 461
Cost Applicable to Sales (US$000) 14,984 1,437 - - - 16,421 22,346 1,583 - - - 23,929 Cost Applicable to Sales (US$000) 45,776 3,498 - - - 49,275 63,650 5,615 - - - 69,265
Divide: Divide:
Volume Sold 35,434 220,227 Not Applicable 38,212 166,821 Not Applicable Volume Sold 102,308 508,356 Not Applicable 107,069 557,509 Not Applicable
CAS 423 6.52 - - - Not Applicable 585 9.49 - - - Not Applicable CAS 447 6.88 - - -

Not Applicable

594 10.07 - - - Not Applicable

APPENDIX 6: ALL-IN SUSTAINING COST FOR 3Q14 and 9M14

Buenaventura1

La Zanja

Tantahuatay

Attributable Production2

3Q14 3Q14 3Q14 3Q14
Au Ounces Sold BVN 115,921
Au Ounces bought from La Zanja -37,889
Au Ounces Sold Net 78,032 38,271 35,434 112,546
3Q14 3Q14 3Q14 3Q14
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 84,881 1,088 21,951 574

14,793

417

102,459 910
Exploration in Operating Units 25,714 330 4,509 118

1,298

37

28,627 254
Royalties 7,065 91 312 8 0 0 7,231 64
Comercial Deductions4 17,783 228 818 21 40 1 18,233 162
Selling Expenses 2,087 27 339 9 291 8 2,384 21
Administrative Expenses5 11,997 154 238 6

418

12

12,291 109
Other Expenses 0 0 3,082 81

1,888

53

2,392 21
Other Incomes 0 0 -3,599 -94

-2,146

-61

-2,770 -25
Administrative charges 0 0 1,237 32 32 1 669 6
Sustaining Capex6 2,315 30 5,819 152

9,459

267

9,195 82
By-product Credit -103,820 -1,330 -1,618 -42

-4,321

-122

-106,412 -945
All-in Sustaining Cost 48,022 615 33,088 865

21,751

614

74,299 660

*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 Compa~nia De Minas Buenaventura S.A.A.
2. Considers 100% from Compa~nia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40. 095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

Buenaventura1

La Zanja

Tantahuatay

Attributable Production2

9M14 9M14 9M14 9M14
Au Ounces Sold BVN 329,904
Au Ounces bought from La Zanja -108,503
Au Ounces Sold Net 221,401 107,860

102,308

319,652
9M14 9M14 9M14 9M14
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 271,633 1,227 60,800 564

43,208

422

321,218 1,005
Exploration in Operating Units 79,273 358 13,202 122

5,023

49

88,292 276
Royalties 21,302 96 555 5 0 0 21,597 68
Comercial Deductions4 45,661 206 2,698 25 267 3 47,199 148
Selling Expenses 5,836 26 1,024 9 778 8 6,691 21
Administrative Expenses5 44,113 199 3,323 31

1,600

16

46,518 146
Other Expenses 0 0 8,017 74

3,861

38

5,802 18
Other Incomes 0 0 -8,448 -78

-4,765

-47

-6,393 -20
Administrative charges 0 0 2,115 20

249

2 1,222 4
Sustaining Capex6 16,138 73 12,532 116

15,270

149

28,910 90
By-product Credit -301,081 -1,360 -6,224 -58

-10,072

-98

-308,421 -965
All-in Sustaining Cost 182,875 826 89,594 831

55,418

542

252,634 790

*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 Compa~nia De Minas Buenaventura S.A.A.
2. Considers 100% from Compa~nia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40. 095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

Share on StockTwits


Iron FX 1.11156/1.11128 2.8
XM Markets 1.09948/1.09928 2
FxPro 1.10184/1.10171 1.3
FXCM 1.13943/1.13912 3.1