Buenaventura Announces Fourth Quarter and Twelve Month 2016 Results

LIMA, Peru--()--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 (4Q16) and twelve-month (FY16) periods ended December 31, 2016. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non-GAAP basis and are stated in U.S. dollars (US$).

Fourth Quarter and Full Year 2016 Highlights:

  • In 4Q16, EBITDA from direct operations was US$80.4 million compared to US$19.6 million reported in 4Q15. Adjusted EBITDA (including associated companies) increased 126% (US$ 176.8 million) in 4Q16, compared to the US$ 78.4 million in 4Q15.
  • All in Sustaining Cost (AISC*) decreased 11% in 4Q16 (US$ 846/oz), compared to 4Q15 (US$ 953/oz).
  • Full year 2016 attributable production was 627k gold ounces and 24.7 million silver ounces, compared to 745k gold ounces and 22.1 million silver ounces in 2015.
  • Positive results in explorations, especially in the Orcopampa Mine (See appendix 4).
  • Net income in 4Q16 was negative US$ 405.9 million mainly due to a US$422.5 million non-cash adjustments from Yanacocha (attributable to Buenaventura).
  • Tambomayo produced its first doré bar in December 2016. Full plant capacity is expected by 2Q17.
  • Buenaventura´s Net debt/EBITDA ratio has been reduced to 1.74x, in line with guidance.
  • Important improvement at El Brocal. Good operating results.
  • In line with Buenaventura´s dividend policy, a dividend payment of US$ 0.057 per share/ADS will be declared.
 

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

                       
      4Q16     4Q15     Var%     FY16     FY15     Var%
Total Revenues     287.1     235.1     22%     1,068.8     929.5     15%
Operating Profit     24.8     -43.5     N.A.     132.2     -136.9     N.A.
EBITDA Direct Operations     80.4     19.6     309%     333.3     99.8     234%
Adjusted EBITDA (Inc Associates)     176.8     78.4     126%     645.2     371.6     74%
Net Income     -405.9     -292.6     39%     -323.5     -317.2     2%
EPS**     -1.60     -1.15     39%     -1.27     -1.25     2%
 
(*)     See Appendix 5
(**)

as of December 31, 2016 Buenaventura had a weighted average number of shares outstanding of 254,186,867.

 

Operating Revenues

During 4Q16, net sales were US$281.3 million, a 23% increase compared to the US$227.9 million reported in 4Q15. This result was mainly explained by an increase in all metal prices as well as higher volume sales of copper, zinc and lead.

Royalty income decreased 19% from US$7.2 million in 4Q15 to US$5.8 million in 4Q16 as a result of lower revenues at Yanacocha (21% QoQ).

                       
Operating Highlights     4Q16     4Q15     Var%     FY16     FY15     Var%
Net Sales

(in millions of US$)

    281.3     227.9     23%     1,044.5     897.1     16%
Average Realized Gold Price (US$/oz) (1) (2)     1,149     1,093     5%     1,244     1,150     8%
Average Realized Gold Price (US$/oz) inc. Affiliates (3)     1,179     1,096     8%     1,245     1,154     8%
Average Realized Silver Price (US$/oz) (1) (2)     17.80     14.46     23%     17.65     15.06     17%
Average Realized Lead Price (US$/MT) (1) (2)     2,335     1,665     40%     1,978     1,712     16%
Average Realized

Zinc Price (US$/MT) (1) (2)

    2,641     1,447     82%     2,267     1,839     23%
Average Realized Copper Price (US$/MT) (1) (2)     5,568     4,332     29%     4,919     4,515     9%
 
                       
Volume Sold     4Q16     4Q15     Var%     FY16     FY15     Var%
Gold Oz Direct Operations (1)     85,836     93,352     -8%     354,116     364,831     -3%
Gold Oz inc Associated Companies (3)     171,484     207,701     -17%     691,649     825,749     -16%
Silver Oz (1)     5,938,481     6,571,227     -10%     21,863,019     20,811,046     5%
Lead MT (1)     8,304     10,302     -19%     29,678     32,389     -8%
Zinc MT (1)     19,963     16,087     24%     62,829     55,529     13%
Copper MT (1)     12,779     9,176     39%     45,674     29,094     57%
 
(1)     Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal
(2) The realized price considers the adjustments of quotational periods
(3) Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.95% of Coimolache and 43.65% of Yanacocha
 

Net sales increased 16%, from US$897.1 million in FY15 to US$1,044.5 million in FY16. Royalty income for FY16 was US$24.3 million, 25% lower than US$32.4 million during FY15.

Production and Operating Costs

In 4Q16, Buenaventura’s gold equity production from direct operations was 68,268, 4% lower compared to the figure reported in 4Q15 (70,910 gold ounces). Gold production including associated companies in 4Q16 was 159,212 ounces, 13% lower than the amount reported in the same period 2015. This decline is explained by a decrease in production from Yanacocha. Zinc and Copper equity production were higher during 4Q16 compared to 4Q15 mainly as a result of higher production coming from El Brocal.

Buenaventura´s gold equity production from direct operations in FY16 was in line compared to the figure reported in FY15. Silver equity production from direct operations in FY16 was 11% higher compared to FY15, this was mainly due to higher production coming from the Uchuchacua (16% YoY) and Mallay (27% YoY) mines. Buenaventura´s Zinc equity production increased 18% in FY16 compared to FY15. This increment is explained by higher production from the Uchuchacua mine (27% YoY), Mallay mine (14% YoY) and El Brocal (8% YoY). Buenaventura´s copper production increased 65% in FY15 compared to FY15 due to higher production from El Brocal (53% YoY).

                       
Equity Production     4Q16     4Q15     Var%     FY16     FY15     Var%
Gold Oz Direct Operations(1)     68,268     70,910     -4%     281,086     286,178     -2%
Gold Oz including Associated Companies     159,212     182,247     -13%     627,434     744,800     -16%
Silver Oz Direct Operations(1)     6,109,374     6,201,646     -1%     23,448,833     21,194,300     11%
Silver Oz including Associated Companies     6,382,558     6,506,921     -2%     24,672,571     22,131,806     11%
Lead MT     7,396     8,779     -16%     28,531     28,412     0%
Zinc MT     15,646     12,642     24%     51,465     43,694     18%
Copper MT Direct Operations(1)     8,218     5,034     63%     29,195     17,674     65%
Copper MT including Associated Companies     34,222     23,757     44%     127,584     66,032     93%
 
                       
Consolidated Production     4Q16     4Q15     Var%     FY16     FY15     Var%
Gold Oz(2)     86,803     90,490     -4%     356,367     357,570     0%
Silver Oz(2)     6,624,276     6,786,872     -2%     24,648,761     23,035,110     7%
Lead MT(2)     9,174     11,924     -23%     33,850     37,135     -9%
Zinc MT(2)     23,896     19,975     20%     75,075     68,240     10%
Copper MT(2)     13,929     9,244     51%     49,460     32,400     53%
 
(1)     Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 61.32% of El Brocal
(2) Considers 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal
 

 

Orcopampa (100% owned by Buenaventura)

 
Production
            4Q16     4Q15     Var%     FY16     FY15     Var%
Gold     Oz     45,973     48,606     -5%     191,102     204,629     -7%
Silver     Oz     199,509     170,254     17%     692,318     562,795     23%
                                           
Cost Applicable to Sales
            4Q16 4Q15 Var% FY16 FY15 Var%
Gold     US$/Oz     772 682 13% 704 678 4%
       

Gold production at Orcopampa decreased 5% in 4Q16 (compared to 4Q15) mainly due to lower ore treated and lower ore grade (see Appendix 2). Cost Applicable to Sales (CAS) in 4Q16 (772 US$/Oz) increased 13% compared to 4Q15 (682 US$/Oz), mainly due to lower volume sold (12% QoQ) and higher exploration efforts from the Pucara, Pucarina and Lucia areas.

Gold production guidance for 2017 is 180k – 190k ounces.

 

Uchucchacua (100% owned by Buenaventura)

 
Production
            4Q16     4Q15     Var%     FY16     FY15     Var%
Silver     Oz     4,042,722     4,118,509     -2%     16,212,746     13,919,922     16%
Zinc     MT     1,662     1,602     4%     7,227     5,692     27%
Lead     MT     2,855     2,565     11%     10,724     8,433     27%
                                           
Cost Applicable to Sales
            4Q16     4Q15     Var%     FY16     FY15     Var%
Silver     US$/Oz     11.53     12.82     -10%     11.03     13.93     -21%
                           

Silver production in 4Q16 was in line with the figure reported in 4Q15. In FY16, silver production increased 16% compared to FY15, mainly due to more ore treated (16% YoY) (see Appendix 2).

Cost Applicable to Sales (CAS) in 4Q16 decreased 10% compared to 4Q15, an improvement primarily explained by i) increasing efficiencies as a result of massive mining using the bench & fill method and ii) lower commercial deductions.

Silver production guidance for 2017 is 16.0 million – 17.0 million ounces.

 

Mallay (100% owned by Buenaventura)

 
Production
            4Q16     4Q15     Var%     FY16     FY15     Var%
Silver     Oz     374,756     357,236     5%     1,627,246     1,285,361     27%
Zinc     MT     2,326     2,407     -3%     10,463     9,173     14%
Lead     MT     1,476     1,841     -20%     7,383     7,193     3%
                                           
Cost Applicable to Sales
            4Q16     4Q15     Var%     FY16 FY15 Var%
Silver     US$/Oz     13.48     13.77     -2%     12.78 13.90 -8%
                   

Silver production in 4Q16 increased 5% compared to 4Q15, mainly due to more ore treated). In FY16, silver production increased 16% compared to FY15, explained by more ore treated (29% YoY) (see Appendix 2).

Cost Applicable to Sales (CAS) in 4Q16 was in line with the figure reported in 4Q15.

Silver production guidance for 2017 is 1.5 million – 1.7 million ounces.

 

Julcani (100% owned by Buenaventura)

 
Production
            4Q16     4Q15     Var%     FY16     FY15     Var%
Silver     Oz     790,618     868,662     -9%     3,264,420     3,266,453     0%
                                           
Cost Applicable to Sales
            4Q16     4Q15     Var%     FY16     FY15     Var%
Silver     US$/Oz     12.50     11.32     10%     11.62     12.30     -6%
                           

Silver production in 4Q16 was 9% lower compared to 4Q15, mainly due to lower ore grades. FY16 production was 3,264,420 in line with FY15. Cost Applicable to Sales (CAS) in 4Q16 was 10% higher than 4Q15, primarily explained by lower volume sold.

Silver production guidance for 2017 is 3.0 million – 3.4 million ounces.

 

La Zanja (53.06% owned by Buenaventura)

 
Production
            4Q16     4Q15     Var %     FY16     FY15     Var %
Gold     Oz     32,739     37,709     -13%     139,724     141,071     -1%
Silver     Oz     58,279     89,111     -35%     217,292     331,080     -34%
                                           
Cost Applicable to Sales
            4Q16     4Q15     Var %     FY16     FY15     Var %
Gold     US$/Oz     730     517     41%     607     753     -19%
                           

Gold production in 4Q16 decreased 13% compared to 4Q15. CAS in 4Q16 increased 41% compared to 3Q15, primarily due to i) less volume sold ii) more hauling expenses.

Gold production guidance for 2017 is 115k – 125k ounces.

Tantahuatay (40.10% owned by Buenaventura)

 
Production
            4Q16     4Q15     Var %     FY16     FY15     Var %
Gold     Oz     39,926     47,697     -16%     150,816     144,782     4%
Silver     Oz     123,786     281,440     -56%     711,337     879,832     -19%
                                           
Cost Applicable to Sales
            4Q16     4Q15     Var %     FY16     FY15     Var %
Gold     US$/Oz     534     388     38%     492     489     1%
                           

Gold production in 4Q16 decreased 16% compared to the figure reported in 4Q15. CAS in 4Q16 increased 38% compared to 4Q15 mainly due to lower volume sold and higher exploration expenses.

Gold production guidance for 2017 is 145k – 155k ounces

 

El Brocal (61.32% owned by Buenaventura)

 
Production
            4Q16     4Q15     Var %     FY16     FY15     Var %
Copper     MT     13,858     9,165     51%     49,170     32,061     53%
Zinc     MT     19,908     15,966     25%     57,385     53,319     8%
Silver     Oz     1,158,392     1,183,101     -2%     2,634,739     3,669,500     -28%
                                           
Cost Applicable to Sales
            4Q16     4Q15     Var %     FY16     FY15     Var %
Copper     US$/Lb     1.97     2.47     -20%     2.11     2.41     -13%
Zinc     US$/Lb     0.84     0.65     28%     0.82     0.73     13%
                           

During 4Q16, copper production increased 51% compared to 4Q15 and 53% in FY16 compared to FY15 due to a higher ore volume treated and ore grade. In 4Q16 zinc production increased 25% compared to 4Q15 and 8% in FY16 compared to FY15 as a result of higher ore treated and ore grade.

In 4Q16, zinc Cost Applicable to sales (CAS) increased 28% compared to 4Q15 mainly due to lower silver by-product contribution and a higher stripping ratio (9.4 in 4Q16 compared to 4.5 in 4Q16). Copper CAS in 4Q16 decreased 20% compared to 4Q15 mainly explained by more volume sold due to better ore grades and better commercial terms.

Zinc production guidance for 2017 is 70k – 80k MT, while copper production guidance for 2017 is 55k – 65k MT.

General and Administrative Expenses

General and administrative expenses in 4Q16 were US$23.6 million, 8% lower compared to the US$25.6 million in 4Q15 mainly due to lower insurance expenses (65% QoQ). For FY16, the expense was US$81.7 million (US$84.4 million in FY15).

Exploration in Non-Operating Areas

Exploration costs in non-operating areas during 4Q16 were US$11.8 million compared with US$5.0 million in 4Q15. During the period, Buenaventura’s main exploration efforts were focused on the San Gabriel project (US$5.15 million), the Tambomayo project (US$2.30 million), and Marcapunta Norte (US$0.41 million). For FY16, the expense was US$26.6 million (US$30.6 million in FY15).

Share in Associated Companies

During 4Q16, Buenaventura’s share in associated companies was negative US$402.5 million, compared to negative US$235.0 million reported in 4Q15, composed by:

                       

Share in the Result of Associates

(in millions of US$)

    4Q16     4Q15     Var %     FY16     FY15     Var %
Cerro Verde     22.5     -3.6     N.A.     66.8     6.5     924%
Coimolache     6.5     7.5     -14%     23.5     16.6     42%
Yanacocha     -431.5     -238.9     81%     -455.6     -196.5     132%
Total     -402.5     -235.0     71%     -365.3     -173.4     111%
 

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 4Q16, gold production was 171,675 ounces, 19% lower than 4Q15 production (211,256 ounces). For FY16, gold production was 654,934 ounces, 29% lower than 917,690 ounces in FY15.

Gold production guidance at Yanacocha for 2017 is 530k – 560k ounces.

In 4Q16, Yanacocha reported a net loss of US$988.6 million, this includes a US$889.4 million non-cash impairment (US$ 388.2 million attributable to Buenaventura) and a US$ 78.5 million non-cash reclamation provision (US$ 34.3 million attributable to Buenaventura), compared to a net loss of US$547.4 million reported in 4Q15.

CAS in 4Q16 was US$829/oz, 11% higher than the US$747/oz reported in 4Q15 mainly due to lower volume sold (158,227 gold ounces in 4Q16 vs 216,733 gold ounces in 4Q15).

Quecher Main (oxide deposit) is expected to extend the life of the Yanacocha operation to 2025 with an average annual production of approximately 200,000 gold ounces per year between 2020 and 2025. The estimated CAPEX of the project is $275 and $325 million. A project decision is expected in 2H17.

Studies are in process for Yanacocha sulfides. The project added 2 million ounces to resources.

Capital expenditures at Yanacocha were US$20.4 million in 4Q16, while for FY16 total capital expenditures were US$83.1 million.

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 4Q16 copper production was 132,814 MT (26,005 MT attributable to Buenaventura), a 39% increase compared to 4Q15 (95,619 MT and 18,722 MT attributable to Buenaventura). For FY16, copper production was 502,495 MT (98,388 MT attributable to Buenaventura).

During 4Q16, Cerro Verde reported a net income of US$114.9 million compared to net loss of US$13.2 million in 4Q15. This increase was primarily due to: i) higher volumes sold and ii) higher realized price (US$2.72/Lb in 4Q16 compared to US$2.07/Lb). For FY16, net income was US$340.9 million (compared to US$33.8 million in FY15).

Capital expenditures at Cerro Verde were US$72.2 million in 4Q16, while for FY16 was US$421.6 million.

Syndicated Loan (US$1.8B): US$400 million have been prepaid. It is expected to be fully paid by 2018, depending on copper prices.

Copper production guidance at Cerro Verde for 2017 is 500k MT – 550k MT.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to net income in 4Q16 was US$6.5 million (US$7.5 million in 4Q15). For FY16, the contribution was US$23.5 million, compared to US$16.6 million reported in FY15.

Project Development and Exploration

The Tambomayo Project (100% ownership)

  • The first doré bar was produced in December 2016.
  • Working on Ramp-up, full capacity expected by 2Q17.
  • 2017 Production Guidance of 120 – 150 Au Oz.
  • Total CAPEX: US$ 362 million.

The San Gabriel Project (100% ownership)

  • Updating the economic model with 2016 exploration results.
  • Approval of the Environmental Impact Assessment (EIA) expected by 1H17.
  • Project decision for next stage is expected in 1H17.
  • During 2H17 basic and detailed engineering will be delivered.

Other

During the February 28, 2017 Board meeting, the Directors passed the following resolution:

  • To call for the Annual Shareholders Meeting to be held on March 28, with the following items to be proposed for approval:

a. Approval of the Annual Report as of December 31, 2016

b. Approval of the Financial Statements as of December 31, 2016

c. Appointment of Ernst and Young (Paredes, Zaldivar, Burga y Asociados) as External Auditors for fiscal year 2017.

d. Declaration of cash dividend of US$ 0.057 per share or ADS, payable on May 2, 2017.

e. Election of the new members of the board for the period 2017 – 2019.

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded, precious metals company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold and silver and other metals via wholly owned mines as well as through its participation in joint exploration projects.

Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, El Brocal, La Zanja and Coimolache and is developing the Tambomayo project.

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

For a printed version of the Company’s 2015 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*)     Operations wholly owned by Buenaventura
 

Note on Forward-Looking Statements

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

**Tables to follow**

APPENDIX 1

 
 
Equity Participation in

Subsidiaries and Associates (as of Decemberr 31, 2016)

    BVN
Equity %
    Operating
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*     61.32     Colquijirca and Marcapunta
Compañía Minera Coimolache S.A **     40.10     Tantahuatay
Minera Yanacocha S.R.L **     43.65     Yanacocha
Sociedad Minera Cerro Verde S.A.A **     19.58     Cerro Verde
Processadora Industrial Rio Seco S.A*     100.00     Rio Seco chemical plant
Consorcio Energético de Huancavelica S.A*     100.00     Energy – Huanza Hydroelectrical plant
Buenaventura Ingenieros S.A*     100.00     Engineering Consultant
 
(*)     Consolidates
(**) Equity Accounting
 

APPENDIX 2

                           
                               
GOLD PRODUCTION
            4Q16     4Q15     %     FY16     FY15     %
Mining Unit     Operating Results     Underground
Orcopampa Ore Milled DMT 113,723 120,878 -6% 464,366 458,222 1%
Ore Grade OZ/MT 0.41 0.42 -3% 0.41 0.46 -12%
Recovery Rate % 97.3% 93.9% 4% 96.3% 95.3% 1%
      Ounces Produced*     45,973     48,606     -5%     191,102     204,629     -7%
Mining Unit     Operating Results     Open Pit
La Zanja Ounces Produced 32,739 37,709 -13% 139,724 141,071 -1%
Tantahuatay     Ounces Produced     39,926     47,697     -16%     150,816     144,782     4%
 
                               
SILVER PRODUCTION
            4Q16     4Q15     %     FY16     FY15     %
Mining Unit     Operating Results     Underground
Uchucchacua Ore Milled DMT 324,291 318,219 2% 1,267,752 1,121,474 13%
Ore Grade OZ/MT 14.82 15.38 -4% 15.23 14.80 3%
Recovery Rate % 84.1% 84.2% 0% 83.9% 83.9% 0%
      Ounces Produced     4,042,722     4,118,509     -2%     16,212,746     13,919,922     16%
Julcani Ore Milled DMT 42,440 45,024 -6% 173,865 177,948 -2%
Ore Grade OZ/MT 19.23 20.06 -4% 19.51 19.22 2%
Recovery Rate % 96.9% 96.2% 1% 96.3% 95.5% 1%
      Ounces Produced     790,618     868,662     -9%     3,264,420     3,266,453     0%
Mallay Ore Milled DMT 51,613 42,812 21% 204,035 158,124 29%
Ore Grade OZ/MT 7.66 8.93 -14% 8.49 8.66 -2%
Recovery Rate % 94.7% 93.4% 1% 93.9% 93.8% 0%
      Ounces Produced     374,756     357,236     5%     1,627,246     1,285,361     27%
Mining Unit     Operating Results     Open Pit
Colquijirca     Ounces Produced     897,695     1,030,199     -13%     1,835,242     2,811,391     -35%
 
                               
ZINC PRODUCTION
            4Q16     4Q15     %     FY16     FY15     %
Mining Unit     Operating Results     Underground
Uchucchacua Ore Milled DMT 324,291 318,219 2% 1,267,752 1,121,474 13%
Ore Grade % 1.20% 1.04% 15% 1.17% 1.05% 11%
Recovery Rate % 42.4% 48.0% -12% 48.8% 48.2% 1%
      MT Produced     1,662     1,602     4%     7,227     5,693     27%
Mallay Ore Milled DMT 51,613 42,812 21% 204,035 158,123 29%
Ore Grade % 5.03% 6.51% -23% 5.79% 6.60% -12%
Recovery Rate % 89.6% 86.3% 4% 88.3% 87.9% 0%
      MT Produced     2,326     2,407     -3%     10,463     9,172     14%
Mining Unit     Operating Results     Open Pit
Colquijirca     MT Produced     19,908     15,966     25%     57,385     53,319     8%
 

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

 

                       
      4Q16     4Q15     FY 2016     FY 2015
Net Income     -409,169     -315,297     -327,814     -375,545
Add / Substract:     490,123     335,185     994,094     479,294
Provision for income tax, net     15,879     18,697     53,504     14,763
Share in associated companies by the equity method, net     402,543     234,996     365,321     173,375
Interest income     -769     -8,585     -6,830     -11,026
Interest expense     4,995     6,494     31,580     27,572
Loss on currency exchange difference     -1,383     6,176     -2,638     13,693
Long Term Compensation provision     54,606     63,505     192,647     232,583
Depreciation and Amortization     1,561     -134     8,133     495
Workers´ participation provision     0     0     0     3,803
Loss from discontinued operations     12,691     14,036     19,073     20,233
Impairment of Long-Lived Assets     0     0     333,304     3,803
EBITDA Buenaventura Direct Operations     80,954     19,888     666,280     103,749
EBITDA Yanacocha (43.65%)     0     0     0     0
EBITDA Cerro Verde (19.58%)     0     0     0     0
EBITDA Coimolache (40.01%)     0     0     0     0
Adjusted EBITDA (including Associated companies)     80,954     19,888     666,280     103,749
           

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: PRELIMINARY PROVEN AND PROBABLE RESERVES

                   
GOLD
% Ownership     MT (000)     Grade Oz/TMS     Oz (000)     Attributable (000)
 
Orcopampa 100.00 764 0.472 361 361
Julcani 100.00 295 0.009 3 3
Mallay 100.00 162 0.015 2 2
Tambomayo 100.00 2,128 0.281 597 597
La Zanja 53.06 15,116 0.017 253 134
La Zanja (on Pads and Plant) 53.06 11 6
Tantahuatay (Oxides) 40.10 81,267 0.013 1,023 410
Tantahuatay PAD 40.10 11 5
El Brocal Marcapunta (Sulphides)* 61.32 N.A. N.A. N.A. N.A.
Yanacocha 43.65 5,057 2,207
 
 
SILVER
% Ownership     MT (000)     Grade Oz/TMS     Oz (000)     Attributable (000)
 
Uchucchacua (Silver - Zinc - Lead) 100.00 4,653 14.220 66,170 66,170
Julcani 100.00 295 20.960 6,182 6,182
Mallay 100.00 162 9.200 1,492 1,492
Orcopampa 100.00 764 1.520 1,158 1,158
Tambomayo 100.00 2,128 9.650 20,539 20,539
La Zanja 53.06 15,116 0.270 4,156 2,205
La Zanja (on Pads and Plant) 53.06 162 86
Tantahuatay Oxidos 40.10 81,267 0.259 21,078 8,451
Tantahuatay PAD 40.10 50 20
El Brocal (Tajo Norte - La Llave)* 61.32 N.A. N.A. N.A. N.A.
El Brocal Marcapunta (Sulphides)* 61.32 N.A. N.A. N.A. N.A.
Yanacocha 43.65 55,333 24,153
Cerro Verde (Sulphides) 19.58 N.A. N.A. N.A. N.A.
 
 
ZINC
% Ownership     MT (000)     % Zn     MT (000)     Attributable (000)
Uchucchacua (Silver - Zinc - Lead) 100.00 4,653 1.87 87 87
Mallay 100.00 162 7.69 12 12
Tambomayo 100.00 2,128 2.41 51 51
El Brocal (Tajo Norte - La Llave)* 61.32 N.A. N.A. N.A. N.A.
 
 
LEAD
% Ownership     MT (000)     % Pb     MT (000)     Attributable (000)
Uchucchacua (Silver - Sulphides) 100.00 4,653 1.42 66 66
Julcani 100.00 295 2.30 7 7
Mallay 100.00 162 4.65 8 8
Tambomayo 100.00 2,128 1.20 26 26
El Brocal (Tajo Norte - La Llave)* 61.32 N.A. N.A. N.A. N.A.
 
* To be included in the annual report.
 
COPPER
% Ownership     MT (000)     % Cu     MT (000)     Attributable (000)
Julcani 100.00 295 0.49 1 1
El Brocal Marcapunta (Sulphides)* 61.32 N.A. N.A. N.A. N.A.
Cerro Verde (Sulphides)* 19.58 N.A. N.A. N.A. N.A.
Cerro Verde (Oxides)* 19.58 N.A. N.A. N.A. N.A.
 
 
MOLYBDENUM
% Ownership     MT (000)     % Mo     Oz (000)     Attributable (000)
 
Cerro Verde (Sulphides)* 19.58 N.A. N.A. N.A. N.A.
 

Prices used for Reserves calculation:

Gold 1,250 US$/Oz - Silver 19 US$/Oz - Zinc 2,100 US$/MT - Lead 1,800 US$/MT - Copper 5,000 US$/MT

 

* To be included in the annual report.

 

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.

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 31
2016     2015 2016     2015
(in thousands of US$)
Consolidated Cost of sales excluding depreciation and amortization 137,021 145,874 508,566 573,102
Add:
Consolidated Exploration in units in operation 29,943 23,691 96,149 89,699
Consolidated Commercial deductions 73,107 60,998 244,413 196,145
Consolidated Selling expenses 6,087 6,664 21,733 19,365
Consolidated Cost applicable to sales 246,158 237,227 870,861 878,311
 
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 31
2016 2015 2016 2015

Cost of sales by mine and mineral

(in thousands of US$)
Julcani, Gold 0 9 15 49
Julcani, Silver 5,485 6,739 20,032 23,134
Julcani, Lead 510 484 1,855 1,906
Julcani, Copper 26 53 83 242
Mallay, Gold 53 148 512 201
Mallay, Silver 2,292 2,234 9,461 8,014
Mallay, Lead 1,327 1,343 4,943 5,190
Mallay, Zinc 2,095 1,317 7,371 6,256
Orcopampa, Gold 21,376 25,886 88,213 104,204
Orcopampa, Silver 1,108 877 4,271 3,512
Orcopampa, Copper 54 0 92 0
Uchucchacua, Gold 56 7 123 25
Uchucchacua, Silver 25,190 31,325 92,188 110,351
Uchucchacua, Lead 1,927 1,714 5,763 6,356
Uchucchacua, Zinc 1,324 1,038 4,262 4,825
La Zanja, Gold 25,017 19,179 89,816 105,795
La Zanja, Silver 652 454 1,787 3,213
El Brocal, Gold 1,539 1,759 6,773 4,258
El Brocal, Silver 4,161 7,066 12,161 21,024
El Brocal, Lead 3,024 5,641 9,878 15,244
El Brocal, Zinc 14,093 10,475 45,506 42,157
El Brocal, Copper 22,826 22,449 92,224 68,711
Non Mining Units 2,886 5,678 11,237 38,435
Consolidated Cost of sales, excluding depreciation and amortization 137,021 145,874 508,566 573,102
 
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 31
2016 2015 2016 2015
Exploration expenses in units in operation by mine and mineral

(in thousands of US$)

Julcani, Gold 0 4 8 25
Julcani, Silver 2,764 2,641 10,086 11,597
Julcani, Lead 257 190 934 956
Julcani, Copper 13 21 42 121
Mallay, Gold 21 60 183 77
Mallay, Silver 893 902 3,379 3,073
Mallay, Lead 517 542 1,765 1,990
Mallay, Zinc 816 532 2,633 2,399
Orcopampa, Gold 13,701 9,680 42,985 40,344
Orcopampa, Silver 710 328 2,081 1,360
Orcopampa, Copper 34 0 45 0
Uchucchacua, Gold 19 2 38 6
Uchucchacua, Silver 8,589 8,075 28,292 25,160
Uchucchacua, Lead 657 442 1,769 1,449
Uchucchacua, Zinc 452 267 1,308 1,100
La Zanja, Gold 487 6 591 41
La Zanja, Silver 13 0 12 1
El Brocal, Gold 0 0 0 0
El Brocal, Silver 0 0 0 0
El Brocal, Lead 0 0 0 0
El Brocal, Zinc 0 0 0 0
El Brocal, Copper 0 0 0 0
Non Mining Units 0 0 0 0
Consolidated Exploration expenses in units in operation 29,943 23,691 96,149 89,699
 
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 31
2016 2015 2016 2015

Commercial Deductions in units in operation by mine and mineral

(in thousands of US$)
Julcani, Gold 0 3 3 14
Julcani, Silver 1,129 2,007 5,021 7,258
Julcani, Lead 104 144 465 591
Julcani, Copper 5 17 25 81
Mallay, Gold 26 60 192 89
Mallay, Silver 1,167 1,216 4,745 4,098
Mallay, Lead 668 735 2,471 2,655
Mallay, Zinc 1,587 1,158 5,796 4,313
Orcopampa, Gold 164 55 496 255
Orcopampa, Silver 67 0 149 0
Orcopampa, Copper 12 0 21 0
Uchucchacua, Gold 19 2 46 7
Uchucchacua, Silver 9,552 12,517 37,877 37,753
Uchucchacua, Lead 727 675 2,348 2,161
Uchucchacua, Zinc 1,805 1,499 6,006 5,457
La Zanja, Gold 112 53 293 194
La Zanja, Silver 2 6 15 18
El Brocal, Gold 2,487 1,925 9,028 4,847
El Brocal, Silver 3,876 3,992 9,971 13,583
El Brocal, Lead 2,072 2,269 5,490 6,669
El Brocal, Zinc 16,196 6,903 39,944 24,622
El Brocal, Copper 31,330 25,762 114,012 81,479
Non Mining Units 0 0 0 0
Consolidated Commercial deductions in units in operation 73,107 60,998 244,413 196,145
 
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 31
2016 2015 2016 2015

Selling expenses by mine and mineral

(in thousands of US$)
Julcani, Gold 0 0 1 2
Julcani, Silver 216 180 770 963
Julcani, Lead 20 13 71 79
Julcani, Copper 1 1 3 10
Mallay, Gold 3 11 36 15
Mallay, Silver 136 163 658 580
Mallay, Lead 78 98 344 376
Mallay, Zinc 124 96 512 453
Orcopampa, Gold 454 190 1,024 823
Orcopampa, Silver 24 6 50 28
Orcopampa, Copper 1 0 1 0
Uchucchacua, Gold 3 0 6 1
Uchucchacua, Silver 1,136 1,060 4,173 3,225
Uchucchacua, Lead 87 58 261 186
Uchucchacua, Zinc 60 35 193 141
La Zanja, Gold 251 244 1,032 1,171
La Zanja, Silver 7 6 21 36
El Brocal, Gold 88 134 419 255
El Brocal, Silver 239 539 752 1,258
El Brocal, Lead 174 431 611 912
El Brocal, Zinc 809 799 2,815 2,522
El Brocal, Copper 1,310 1,713 5,704 4,110
Non Mining Units 867 886 2,278 2,220
Consolidated Selling expenses 6,087 6,664 21,733 19,365
 

                       
                                             
JULCANI
4Q 2016   4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 0 5,485 510 - 26 6,022 9 6,739 484 - 53 7,285
Add:
Exploration Expenses (US$000) 0 2,764 257 - 13 3,034 4 2,641 190 - 21 2,855
Commercial Deductions (US$000) -0 1,129 104 - 5 1,237 3 2,007 144 - 17 2,171
Selling Expenses (US$000) 0 216 20 - 1 237 0 180 13 - 1 195
Cost Applicable to Sales (US$000) 0 9,594 891 - 45 10,530 16 11,567 832 - 92 12,506
Divide:
Volume Sold   1   767,334   587   -   17   Not Applicable   18   1,022,162   674   -   26   Not Applicable
CAS   515   12.50   1,517   -   2,630   Not Applicable   870   11.32   1,233   -   3,543   Not Applicable
 
                                               
JULCANI
FY 2016   FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 15   20,032   1,855   -   83   21,985   49   23,134   1,906   -   242   25,332
Add:
Exploration Expenses (US$000) 8 10,086 934 - 42 11,069 25 11,597 956 - 121 12,699
Commercial Deductions (US$000) 3 5,021 465 - 25 5,514 14 7,258 591 - 81 7,944
Selling Expenses (US$000) 1 770 71 - 3 845 2 963 79 - 10 1,055
Cost Applicable to Sales (US$000) 27 35,908 3,325 - 153 39,413 90 42,953 3,533 - 454 47,030
Divide:
Volume Sold   32   3,090,967   2,679   -   54   Not Applicable   94   3,493,166   2,478   -   103   No Aplicable
CAS   825   11.62   1,241   -   2,837   No Applicable   955   12.30   1,425   -   4,416   No Applicable
 
                                             
MALLAY
4Q 2016   4Q 2015
  GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 53   2,292   1,327   2,095   -   5,767 148   2,234   1,343   1,317   -   5,041
Add:
Exploration Expenses (US$000) 21 893 517 816 - 2,247 60 902 542 532 - 2,035
Commercial Deductions (US$000) 26 1,167 668 1,587 - 3,447 60 1,216 735 1,158 - 3,168
Selling Expenses (US$000) 3 136 78 124 - 341 11 163 98 96 - 367
Cost Applicable to Sales (US$000) 103 4,487 2,590 4,622 - 11,802 278 4,514 2,717 3,102 - 10,611
Divide:
Volume Sold 109   332,930   1,360   1,925   -   Not Applicable   292   327,697   1,765   1,981   -   Not Applicable
CAS 950   13.48   1,905   2,400   -   Not Applicable   954   13.77   1,540   1,566   -   Not Applicable
 
                     
                                         
MALLAY
FY 2016 FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 512   9,461 4,943 7,371 - 22,287 201 8,014 5,190 6,256 - 19,660
Add:
Exploration Expenses (US$000) 183 3,379 1,765 2,633 - 7,960 77 3,073 1,990 2,399 - 7,539
Commercial Deductions (US$000) 192 4,745 2,471 5,796 - 13,204 89 4,098 2,655 4,313 - 11,155
Selling Expenses (US$000) 36 658 344 512 - 1,549 15 580 376 453 - 1,424
Cost Applicable to Sales (US$000) 923 18,242 9,523 16,312 - 45,000 381 15,765 10,211 13,421 - 39,778
Divide:
Volume Sold   1,041   1,426,986   6,775   8,728   -   Not Applicable   396   1,134,528   6,612   7,482   -   Not Applicable
CAS   886   12.78   1,406   1,869   -   No Applicable   960   13.90   1,544   1,794   -   No Applicable
 

                 
                                 
ORCOPAMPA
4Q 2016 4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 21,376   1,108   -   - 54 22,537 25,886 877 - - - 26,763
Add: -
Exploration Expenses (US$000) 13,701 710 - - 34 14,445 9,680 328 - - - 10,008
Commercial Deductions (US$000) 164 67 - - 12 243 55 - - - - 55
Selling Expenses (US$000) 454 24 - - 1 479 190 6 - - - 196
Cost Applicable to Sales (US$000) 35,694 1,908 - - 102 37,704 35,810 1,212 - - - 37,022
Divide:
Volume Sold   46,239   156,126   -   -   24   Not Applicable   52,488   139,557   -   -   -   Not Applicable

CAS

  772   12.22   -   -   4,244   Not Applicable   682   8.68   -   -   -   Not Applicable
 
                   
                                     
ORCOPAMPA
FY 2016   FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 88,213   4,271   - - 92 92,576 104,204 3,512 - - - 107,716
Add:
Exploration Expenses (US$000) 42,985 2,081 - - 45 45,111 40,344 1,360 - - - 41,704
Commercial Deductions (US$000) 496 149 - - 21 667 255 0 - - - 255
Selling Expenses (US$000) 1,024 50 - - 1 1,075 823 28 - - - 851
Cost Applicable to Sales (US$000) 132,718 6,552 - - 159 139,429 145,626 4,900 - - - 150,526
Divide:
Volume Sold   188,511   680,708   -   -   48   Not Applicable   214,821   555,314   -   -   -   Not Applicable
CAS   704   9.62   -   -   3,305   No Applicable   678   8.82   -   -   -   No Applicable
 
                 
                                 
UCHUCCHACUA
4Q 2016   4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 56   25,190   1,927   1,324 - 28,497 7 31,325 1,714 1,038 - 34,084
Add:
Exploration Expenses (US$000) 19 8,589 657 452 - 9,717 2 8,075 442 267 - 8,786
Commercial Deductions (US$000) 19 9,552 727 1,805 - 12,103 2 12,517 675 1,499 - 14,694
Selling Expenses (US$000) 3 1,136 87 60 - 1,285 0 1,060 58 35 - 1,153
Cost Applicable to Sales (US$000) 97 44,467 3,398 3,641 - 51,602 11 52,977 2,890 2,839 - 58,718
Divide:
Volume Sold   127   3,856,346   2,218   1,254   -   Not Applicable   12   4,132,034   1,993   1,520   -   Not Applicable
CAS   763   11.53   1,532   2,903   -   No Applicable   920   12.82   1,450   1,868   -   No Applicable
 
                 
                                 
UCHUCCHACUA
FY 2016   FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 123   92,188   5,763   4,262 - 102,336 25

110,351

6,356 4,825 - 121,557
Add:
Exploration Expenses (US$000) 38 28,292 1,769 1,308 - 31,406 6 25,160 1,449 1,100 - 27,715
Commercial Deductions (US$000) 46 37,877 2,348 6,006 - 46,277 7 37,753 2,161 5,457 - 45,379
Selling Expenses (US$000) 6 4,173 261 193 - 4,632 1 3,225 186 141 - 3,552
Cost Applicable to Sales (US$000) 212 162,529 10,140 11,770 - 184,651 39 176,490 10,152 11,523 - 198,203
Divide:
Volume Sold   279   14,739,128   8,350   5,295   -   Not Applicable   38   12,666,673   6,560   4,750   -   Not Applicable
CAS   758   11.03   1,214   2,223   -   No Applicable   1,014   13.93   1,548   2,426   -   No Applicable
 

                   
                                     
  LA ZANJA
  4Q 2016   4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 25,017   652   - - - 25,669 19,179 454 - - - 19,633
Add:
Exploration Expenses (US$000) 487 13 - - - 500 6 0 - - - 6
Commercial Deductions (US$000) 112 2 - - - 114 53 6 - - - 59
Selling Expenses (US$000) 251 7 - - - 258 244 6 - - - 250
Cost Applicable to Sales (US$000) 25,868 673 - - - 26,541 19,482 466 - - - 19,948
Divide:
Volume Sold   35,430   62,569   -   -   -   Not Applicable   37,706   68,585   -   -   -   Not Applicable
CAS   730   10.76   -   -   -   Not Applicable   517   6.79   -   -   -   Not Applicable
 
                   
                                     
LA ZANJA
FY 2016   FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 89,816   1,787   - - - 91,603 105,795 3,213 - - - 109,008
Add:
Exploration Expenses (US$000) 591 12 - - - 603 41 1 - - - 42
Commercial Deductions (US$000) 293 15 - - - 307 194 18 - - - 212
Selling Expenses (US$000) 1,032 21 - - - 1,053 1,171 36 - - - 1,207
Cost Applicable to Sales (US$000) 91,732 1,835 - - - 93,566 107,201 3,268 - - - 110,469
Divide:
Volume Sold   151,189   229,055   -   -   -   Not Applicable   142,299   324,151   -   -   -   Not Applicable
CAS   607   8.01   -   -   -   No Applicable   753   10.08   -   -   -   Not Applicable
 
                   
                                     
BROCAL
4Q 2016   4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 1,539  

4,161

  3,024 14,093 22,826 45,643 1,759 7,066 5,641 10,475 22,449 47,390
Add:
Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 2,487 3,876 2,072 16,196 31,330 55,962 1,925 3,992 2,269 6,903 25,762 40,851
Selling Expenses (US$000) 88 239 174 809 1,310 2,620 134 539 431 799 1,713 3,617
Cost Applicable to Sales (US$000) 4,115 8,276 5,270 31,098 55,466 104,225 3,818 11,597 8,340 18,177 49,924 91,858
Divide:
Volume Sold   3,931   763,176   4,138   16,784   12,738   Not Applicable   2,835   881,192   5,870   12,586   9,150   Not Applicable
CAS   1,047   10.84   1,273   1,853   4,354   Not Applicable   1,347   13.16   1,421   1,444   5,456   Not Applicable
 
                     
                                         
BROCAL
FY 2016   FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 6,773   12,161 9,878 45,506 92,224 166,542 4,258 21,024 15,244 42,157 68,711 151,394
Add:
Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 9,028 9,971 5,490 39,944 114,012 178,444 4,847 13,583 6,669 24,622 81,479 131,200
Selling Expenses (US$000) 419 752 611 2,815 5,704 10,301 255 1,258 912 2,522 4,110 9,056
Cost Applicable to Sales (US$000) 16,220 22,884 15,979 88,265 211,940 355,287 9,359 35,865 22,826 69,301 154,300 291,650
Divide:
Volume Sold   13,062   1,696,176   11,874   48,806   45,572   Not Applicable   7,181   2,637,215   16,739   43,297   28,991   Not Applicable
CAS   1,242   13.49   1,346   1,808   4,651   No Applicable   1,303   13.60   1,364   1,601   5,322   Not Applicable
 

             
                         
NON MINING COMPANIES
4Q 2016   4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) -   -   -   -   -   2,886 - - - - - 5,678
Add:
Selling Expenses (US$000)   -   -   -   -   -   867   -   -   -   -   -   886
Total (US$000)   -   -   -   -   -   3,753   -   -   -   -   -   6,564
 
 
             
                         
NON MINING COMPANIES
FY 2016 FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) -   -   -   -   -   11,237 - - - - - 38,435
Add:
Selling Expenses (US$000)   -   -   -   -   -   2,278   -   -   -   -   -   2,220
Total (US$000)   -   -   -   -   -   13,515   -   -   -   -   -   40,655
 
                                               
BUENAVENTURA CONSOLIDATED
4Q 2016   4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 48,042   38,887   6,788   17,512   22,906   137,021   46,987   48,695   9,182   12,829   22,502   145,874
Add:
Exploration Expenses (US$000) 14,228 12,969 1,431 1,268 48 29,943 9,751 11,946 1,174 799 21 23,691
Commercial Deductions (US$000) 2,808 15,793 3,571 19,588 31,347 73,107 2,098 19,738 3,824 9,560 25,778 60,998
Selling Expenses (US$000) 800 1,756 359 993 1,312 6,087 579 1,954 599 930 1,715 6,664
Cost Applicable to Sales (US$000) 65,877 69,406 12,149 39,361 55,613 246,158 59,416 82,333 14,779 24,119 50,016 237,227
Divide:
Volume Sold   85,836   5,938,481   8,304   19,963   12,779   Not Applicable   93,352   6,571,227   10,302   16,087   9,176   Not Applicable
CAS   767   11.69   1,463   1,972   4,352   Not Applicable   636   12.53   1,434   1,499   5,451   Not Applicable
 
           
                     
BUENAVENTURA CONSOLIDATED
FY 2016   FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 185,451   139,900   22,439   57,140   92,399   508,566   214,531 169,249 28,697 53,238 68,953 573,102
Add:
Exploration Expenses (US$000) 43,804 43,849 4,468 3,941 87 96,149 40,493 41,191 4,395 3,499 121 89,699
Commercial Deductions (US$000) 10,058 57,778 10,774 51,746 114,058 244,413 5,405 62,711 12,077 34,392 81,560 196,145
Selling Expenses (US$000) 2,517 6,422 1,287 3,520 5,709 21,733 2,267 6,089 1,553 3,116 4,120 19,365
Cost Applicable to Sales (US$000) 241,831 247,949 38,968 116,346 212,252 870,861 262,696 279,240 46,721 94,245 154,754 878,311
Divide:
Volume Sold   354,116   21,863,019   29,678   62,829   45,674   Not Applicable   364,831   20,811,046   32,389   55,529   29,094   Not Applicable

CAS

  683   11.34   1,313   1,852   4,647   Not Applicable   720   13.42   1,443   1,697   5,319   Not Applicable
 

                 
                                 
COIMOLACHE
4Q 2016   4Q 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 15,769   686   -   - - 16,455 16,925 1,368 - - - 18,292
Add:
Exploration Expenses (US$000) 6,001 261 - - - 6,262 1,578 128 - - - 1,706
Commercial Deductions (US$000) 40 2 - - - 41 267 30 - - - 298
Selling Expenses (US$000) 306 13 - - - 319 381 31 - - - 412
Cost Applicable to Sales (US$000) 22,116 962 - - - 23,077 19,151 1,556 - - - 20,708
Divide:
Volume Sold   41,454   129,123   -   -   -   Not Applicable   49,363   294,995   -   -   -   Not Applicable
CAS   534   7.45   -   -   -   Not Applicable   388   5.28   -   -   -   Not Applicable
 
                   
                                     
COIMOLACHE
FY 2016   FY 2015
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 58,809   3,886   - - - 62,695 55,952 4,576 - - - 60,527
Add:
Exploration Expenses (US$000) 12,804 846 - - - 13,650 12,598 1,030 - - - 13,628
Commercial Deductions (US$000) 474 42 - - - 516 776 71 - - - 847
Selling Expenses (US$000) 1,058 70 - - - 1,128 1,028 84 - - - 1,112
Cost Applicable to Sales (US$000) 73,145 4,844 - - - 77,989 70,353 5,761 - - - 76,114
Divide:
Volume Sold   148,781   721,891   -   -   -   Not Applicable   143,791   874,271   -   -   -   Not Applicable
CAS   492   6.71   -   -   -   No Applicable   489   6.59   -   -   -   Not Applicable
 

APPENDIX 6: ALL-IN SUSTAINING COST

                       
All-in Sustaining Cost for 4Q16
 
Buenaventura1 La Zanja Tantahuatay Attributable 2
4Q16 4Q16

4Q16

4Q16

Au Ounces Sold BVN 81,622
Au Ounces bought from La Zanja -35,147
Au Ounces Sold Net 46,475 34,505 41,454 81,405
 
4Q16

4Q16

4Q16

4Q16

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 68,722 1,479 26,510 768 16,455 397 89,386 1,098
Exploration in Operating Units 29,443 634 3,076 89 6,262 151 33,586 413
Royalties 4,325 93 0 0 0 0 4,325 53
Comercial Deductions4 17,032 366 551 16 41 1 17,341 213
Selling Expenses 2,394 52 205 6 319 8 2,631 32
Administrative Expenses5 12,215 263 338 10 2,345 57 13,335 164
Other Expenses 0 0 2,143 62 1,742 42 1,836 23
Other Incomes -5,093 -110 -4,513 -131 -2,818 -68 -8,618 -106
Administrative charges 0 0 1,539 45 514 12 1,023 13
Sustaining Capex6 21,117 454 3,098 90 8,581 207 26,201 322
 
By-product Credit -110,761 -2,383 -1,063 -31 -2,149 -52 -112,187 -1,378
 
All-in Sustaining Cost 39,394 848 31,883 924 31,293 755 68,858 846
 
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.
 

Notes:

1.

   

Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.

2.

Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.

3.

For Buenaventura does not consider purchase of concentrate from La Zanja.

4.

For all metals produced.

5.

For Buenaventura, does not consider management services charged to subsidiaries.

6.

Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

 

                       
All-in Sustaining Cost for 4Q15
 
Buenaventura1 La Zanja Tantahuatay Attributable Production2

4Q15

4Q15

4Q15

4Q15

Au Ounces Sold BVN 90,462
Au Ounces bought from La Zanja -37,652
Au Ounces Sold Net 52,810 37,847 49,363 92,684
 
4Q15 4Q15

 

4Q15

 

4Q15

 

Income Statement & Cash Flow US$ 000'   US$/Oz Au US$ 000'   US$/Oz Au US$ 000'   US$/Oz Au US$ 000'   US$/Oz Au
 
Cost of Sales3 78,768 1,492 19,617 518 18,292 371 96,511 1,041
Exploration in Operating Units 25,492 483 549 15 1,706 35 26,467 286
Royalties 5,041 95 0 0 0 0 5,041 54
Comercial Deductions4 20,088 380 873 23 298 6 20,671 223
Selling Expenses 1,913 36 254 7 411 8 2,212 24
Administrative Expenses5 11,481 217 1,051 28 821 17 12,368 133
Other Expenses 0 0 4,018 106 1,502 30 2,734 30
Other Incomes -2,898 -55 -5,638 -149 -2,249 -46 -6,791 -73
Other administrative charges 0 0 2,718 72 564 11 1,668 18
Sustaining Capex6 16,209 307 1,592 42 15,865 321 23,414 253
 
By-product Credit -93,749 -1,775 -977 -26 -4,346 -88 -96,010 -1,036
 
All-in Sustaining Cost 62,345 1,181 24,057 636 32,864 666 88,286 953
 
*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. (Does not consider El Brocal)

2.

Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.

3.

For Buenaventura does not consider purchase of concentrate from La Zanja.

4.

For all metals produced.

5.

For Buenaventura, does not consider management services charged to subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.

6.

Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

 

           
All-in Sustaining Cost for FY16
           
Buenaventura1 La Zanja Tantahuatay Attributable 2

FY16

FY16

FY16

FY16

Au Ounces Sold BVN 340,879
Au Ounces bought from La Zanja -150,145
Au Ounces Sold Net 190,735 142,207 148,781 325,844
 
 

FY16

FY16

FY16

FY16

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 272,452 1,428 86,514 608 62,695 421 343,494 1,054
Exploration in Operating Units 95,546 501 5,222 37 13,650 92 103,790 319
Royalties 19,824 104 0 0 0 0 19,824 61
Comercial Deductions4 65,663 344 3,163 22 516 3 67,548 207
Selling Expenses 8,216 43 937 7 1,128 8 9,165 28
Administrative Expenses5 49,286 258 1,979 14 4,144 28 51,998 160
Other Expenses 0 0 8,721 61 6,583 44 7,267 22
Other Incomes -10,255 -54 -17,258 -121 -8,710 -59 -22,904 -70
Administrative charges 0 0 4,301 30 1,372 9 2,832 9
Sustaining Capex6 54,930 288 14,995 105 27,064 182 73,738 226
 
By-product Credit -419,793 -2,201 -3,864 -27 -12,418 -83 -426,822 -1,310
 
All-in Sustaining Cost 135,870 712 104,709 736 96,023 645 229,929 706
 
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.
 

Notes:

1.

   

Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.

2.

Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.

3.

For Buenaventura does not consider purchase of concentrate from La Zanja.

4.

For all metals produced.

5.

For Buenaventura, does not consider management services charged to subsidiaries.

6.

Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

 

                       
All-in Sustaining Cost for FY15
 
Buenaventura1

La Zanja

Coimolache

Attributable Production2

FY15

FY15

FY15

FY15

Au Ounces Sold BVN 373,548
Au Ounces bought from La Zanja -142,129
Au Ounces Sold Net 231,419 138,465 143,791 362,541
 

FY15

FY15

FY15

FY15

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 307,709 1,330 106,749 771 60,527 421 388,619 1,072
Exploration in Operating Units 91,548 396 8,995 65 13,628 95 101,785 281
Royalties 21,942 95 0 0 0 0 21,942 61
Comercial Deductions4 64,799 280 3,367 24 847 6 66,925 185
Selling Expenses 7,001 30 1,207 9 1,112 8 8,087 22
Administrative Expenses5 47,125 204 2,251 16 2,185 15 49,195 136
Other Expenses 0 0 14,174 102 7,136 50 10,382 29
Other Incomes -6,881 -30 -21,676 -157 -9,270 -64 -22,099 -61
Other administrative charges 0 0 8,190 59 1,369 10 4,894 14
Sustaining Capex6 38,861 168 27,615 199 48,509 337 72,964 201
 
By-product Credit -320,485 -1,385 -4,947 -36 -13,468 -94 -328,510 -906
 
All-in Sustaining Cost 251,619 1,087 145,926 1,054 112,575 783 374,184 1,032
 
*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. (Does not consider El Brocal)

2.

Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.

3.

For Buenaventura does not consider purchase of concentrate from La Zanja.

4.

For all metals produced.

5.

For Buenaventura, does not consider management services charged to subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.

6.

Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

 

APPENDIX 7

       
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Financial Position
As of December 31, 2016 and December 31, 2015
2,016 2,015
Assets US$(000) US$(000)
Current assets
Cash and cash equivalents 80,544 78,519
Trade and other accounts receivable, net 269,089 219,862
Income tax credit 19,956 45,919
Prepaid expenses 11,392 8,231
Inventory, net 120,947 101,473
501,928 454,004
Assets classified as held for sale - 15,592
501,928 469,596
 
Non-current assets
Trade and other receivables, net 166,048 162,567
Long-term inventory 14,027 26,029
Long-term income tax credit 3,660 -
Investment in associates 1,536,607 2,043,983
Mining concessions, development costs, property, plant and equipment, net 1,960,025 1,747,624
Investment properties, net 10,089 10,719
Deferred income tax asset, net 25,881 41,574
Prepaid expenses 30,431 29,235
Other assets 17,719 15,854
3,764,487 4,077,585
   
Total assets 4,266,415 4,547,181
 
 
Liabilities and shareholders’ equity, net
Current liabilities
Bank loans 55,000 285,302
Trade and other payables 273,440 247,114
Provisions 62,502 49,829
Income tax payable 8,686 2,444
Embedded derivatives for sale of concentrate, net 1,524 1,694
Financial obligations 40,110 33,394
Hedge derivative financial instruments 3,863 10,643
445,125 630,420
 
Liabilities directly associated with assets classified as held for sale - 20,611
445,125 651,031
 
 
Non-current liabilities
Trade and other payables 15,982 15,057
Provisions 174,190 141,885
Financial obligations 552,232 320,316
Contingent consideration liability 19,343 16,994
Deferred income tax liability, net 12,330 12,662
774,077 506,914
   
Total liabilities 1,219,202 1,157,945
 
Shareholders’ equity, net
Capital stock 750,497 750,497
Investment shares 791 1,396
Additional paid-in capital 218,450 219,055
Legal reserve 162,744 162,714
Other reserves 269 269
Retained earnings 1,690,123 2,024,895
Other reserves of equity (1,783) 2,240
Shareholders’ equity, net attributable to owners of the parent 2,821,091 3,161,066
Non-controlling interest 226,122 228,170
Total shareholders’ equity, net 3,047,213 3,389,236
   
Total liabilities and shareholders’ equity, net 4,266,415 4,547,181
- -
 

             
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Income
For the three and twelve month periods ended December 31, 2016 and 2015

For the three month period
ended December, 31

For the twelve month period
ended December, 31

2,016 2,015 2,016 2,015
US$(000) US$(000) US$(000) US$(000)
Continuing operations
Operating income
Net sales of goods 269,360 219,766 1,015,670 846,269
Net sales of services 11,923 8,141 28,782 50,839
Royalty income 5,846 7,214 24,339 32,414
Total operating income 287,129 235,121 1,068,791 929,522
 
Operating costs
Cost of sales, without considering depreciation and amortization (134,618) (132,580) (497,812) (513,490)
Cost of services, without considering depreciation and amortization (2,403) (13,294) (10,754) (59,612)
Exploration in operating units (29,943) (23,691) (96,149) (89,699)
Depreciation and amortization (54,606) (63,505) (192,647) (232,583)
Mining royalties (7,236) (5,344) (27,611) (27,188)
Total operating costs (228,806) (238,414) (824,973) (922,572)
       
Gross profit (loss) 58,323 (3,293) 243,818 6,950
 
Operating expenses, net
Administrative expenses (23,644) (25,566) (81,692) (84,372)
Exploration in non-operating areas (11,765) (4,950) (26,589) (30,610)
Selling expenses (6,087) (6,664) (21,733) (19,365)
Provision for impairment of long-lived assets - - - (3,803)
Other, net 7,960 (3,010) 18,392 (5,735)
Total operating expenses, net (33,536) (40,190) (111,622) (143,885)
 
Operating profit (loss) 24,787 (43,483) 132,196 (136,935)
 
Other income (expense), net
Share in the results of associates under equity method (402,543) (234,996) (365,321) (173,375)
Financial costs (4,995) (6,494) (31,580) (27,572)
Net gain (loss) from currency exchange difference 1,383 (6,176) 2,638 (13,693)
Financial income 769 8,585 6,830 11,026
Total other income, net (405,386) (239,081) (387,433) (203,614)
 
Profit (loss) before income tax (380,599) (282,564) (255,237) (340,549)
 
Current income tax (7,085) (3,666) (39,444) (14,222)
Deferred income tax (8,794) (15,031) (14,060) (541)
       
Profit (loss) from continuing operations (396,478) (301,261) (308,741) (355,312)
 
Discontinued operations
Loss from discontinued operations (12,691) (14,036) (19,073) (20,233)
Net loss (409,169) (315,297) (327,814) (375,545)
 
Attributable to:
Owners of the parent (405,864) (292,554) (323,492) (317,210)
Non-controlling interest (3,305) (22,743) (4,322) (58,335)
(409,169) (315,297) (327,814) (375,545)
 
Basic and diluted loss per share attributable to
equity holders of the parent, stated in U.S. dollars (1.60) (1.15) (1.27) (1.25)
 
Weighted average number of shares outstanding
(common and investment), in units 254,186,867 254,186,867 254,186,867 254,186,867
 

             
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Cash Flows
For the three and twelve month periods ended December 31, 2016 and 2015

For the three month period
ended December, 31

   

For the twelve month period
ended December, 31

2016 2015 2016 2015
US$(000) US$(000) US$(000) US$(000)
Operating activities
Proceeds from sales 325,469 243,306 1,003,422 965,273
Proceeds from dividends 2,414 1,916 142,340 6,691
Value Added Tax recovered 11,939 6,908 117,661 81,692
Royalty received 5,974 10,017 25,961 38,983
Interest received 374 1,153 2,140 3,650
Payments to suppliers and third-parties (155,803) (173,546) (672,419) (727,017)
Payments to employees (32,894) (47,409) (138,113) (175,329)
Payments of interest (15,197) (4,235) (34,138) (21,518)
Payments of mining royalties (4,643) (5,429) (20,052) (22,836)
Payment of income taxes (21,235) (4,943) (35,401) (22,330)
 
Net cash and cash equivalents provided by operating activities 116,398 27,738 391,401 127,259
 
Investing activities
Proceeds from sales of mining concessions, property, plant and equipment 1,529 2,892 7,180 5,481
Acquisitions of mining concessions, development costs, property, plant and equipment (127,170) (44,759) (366,834) (211,286)
Loans granted to associates - (104,000) - (124,800)
Loans granted to third parties - (829) - (829)
Payments for acquisitions of other assets (5,222) (10,238) (5,222) (10,238)
Proceeds from loan to third parties - (141) - -
Opening of time deposits - 7,350 - -
 
Net cash and cash equivalents used in investing activities (130,863) (149,725) (364,876) (341,672)
 
Financing activities
Proceeds from financial obligations - (9,704) 275,210 296
Proceeds from bank loans 24,649 104,503 200,500 344,503
Payments of bank loans (27,197) - (442,957) (90,000)
Payments of financial obligations (8,296) (21) (33,476) (29,891)
Dividends paid to controlling interest (7,612) 70 (7,621) -
Dividends paid to non-controlling interest (1,691) (2,440) (7,400) (10,488)
Acquisition of non-controlling interest - - (5,459) -
Increase of restricted bank accounts 1,924 - (2,087) -
Repurchase of treasury shares - - (1,210) -
 
Net cash and cash equivalents provided by (used in) financing activities (18,223) 92,408 (24,500) 214,420
 
Net increase (decrease) in cash and cash equivalents during the period (32,688) (29,579) 2,025 7
Cash and cash equivalents at the beginning of the period 113,232 108,098 78,519 78,512
       
Cash and cash equivalents at period-end 80,544 78,519 80,544 78,519
 

     

For the three month period
ended December, 31

   

For the twelve month period
ended December, 31

2016   2015 2016     2015
US$(000) US$(000) US$(000) US$(000)
Reconciliation of net profit to cash and cash equivalents provided
by operating activities
 
Net loss (409,169) (315,297) (327,814) (375,545)
 
Plus (less):
Depreciation and amortization 54,606 63,505 192,647 232,583
Reversal (provision) for impairment loss of inventories (2,941) (973) (12,086) 12,737
Net loss (gain) on sales of mining concessions, property, plant and equipment (9,252) (14,060) (7,180) (440)
Net loss (gain) from currency exchange difference (1,383) 6,176 (2,638) 13,693
Provision for impairment of long–lived assets - - 2,043 11,255
Accretion expense of provision for closure of mining units and exploration projects 2,258 412 5,068 3,343
Net share in results of associates 402,543 234,996 365,321 173,375
Loss attributable to non-controlling interest 3,305 22,743 4,322 58,335
Deferred income tax expense (income) 8,794 15,031 14,060 541
Provision for estimated fair value of embedded derivatives related to concentrate 3,807 (732) (5,491) (7,079)
sales and adjustments on open liquidations
Hedge derivative instruments 3,745 - 3,745 -
Other net 3,816 (508) (596) (30,111)
 
Net changes in operating assets and liabilities:
Decrease (increase) in operating assets -
Trade and other accounts receivable 31,225 (125,467) (37,010) (73,497)
Inventories 13,214 58,592 6,437 70,248
Income tax credit (1,917) 2,437 22,303 7,827
Prepaid expenses (4,361) (27,727) (7,476) (20,485)
Increase (decrease) in operating liabilities -
Trade and other accounts payable 19,324 25,779 41,232 (9,431)
Income tax payable 6,242 (165) 6,242 (1,112)
Provisions (9,872) 81,080 (14,068) 54,331
Proceeds from dividends 2,414 1,916 142,340 6,691
       
Net cash and cash equivalents provided by operating activities 116,398 27,738 391,401 127,259
 

Contacts

Contacts in Lima:
Carlos Galvez, (511) 419 2540
Chief Financial Officer
or
Daniel Dominguez, (511) 419 2591
Manager of Financial Planning and Investor Relations
daniel.dominguez@buenaventura.pe
or
Rodrigo Echecopar, (511) 419 2609
Investor Relations Coordinator
rodrigo.echecopar@buenaventura.pe
or
Contacts in NY:
Barbara Cano, 646-452-2334
barbara.cano@mbsvalue.com
or
Company Website: www.buenaventura.pe/ir

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