6-K
Buenaventura Mining Co Inc (BVN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2020
Commission File Number 001-14370
COMPANIA DE MINAS BUENAVENTURA S.A.A.
(Exact name of registrant as specified in its charter)
BUENAVENTURA MINING COMPANY INC.
\(Translation of registrant’s name into English\)
Republic of Peru
\(Jurisdiction of incorporation or organization\)
CARLOS VILLARAN 790
SANTA CATALINA, LIMA 13, PERU
\(Address of principal executive offices\)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ____X___ Form 40-F _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101\(b\)\(7\): \[ \]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
Buenaventura Announces
First Quarter 2020 Results
Lima, Peru, May 18, 2020 – Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced results for the first quarter 2020. 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$).
First Quarter 2020 Highlights:
| ● | 1Q20 results were adversely impacted by the State of Emergency and related mandated lockdown instituted by the Peruvian Government in order to contain the spread of the Coronavirus (COVID-19) Due to the outbreak of COVID-19 in Peru<br> and the related restrictions imposed, Buenaventura was unable to produce for 17% of the first quarter 2020 (please refer to page 2 for related details). |
|---|---|
| ● | 1Q20 EBITDA from direct operations was negative US$ 6.8 million, compared to US$ 28.4 million reported in 1Q19. |
| --- | --- |
| ● | 1Q20 Adjusted EBITDA including associated companies reached US$ 30.6 million, compared to US$ 167.6 million in 1Q19. |
| --- | --- |
| ● | 1Q20 capital expenditures were US$ 10.0 million, compared to US$ 8.5 million for the same period in 2019. |
| --- | --- |
| ● | 1Q20 net loss was US$ 75.0 million, compared to a net income of US$ 27.3 million for the same period in 2019. The loss in 1Q20 considers COVID-19 related provisions of US$10.7 million. |
| --- | --- |
| ● | The Company´s De-Bottlenecking Program continued progressing during the 1Q20. During 2020, the program focus is on the Company’s Tambomayo, Uchucchacua and El Brocal mines (please refer to page 7 for related details). |
| --- | --- |
| ● | Buenaventura’s 1Q20 cash position reached US$ 222 million; a sequential increase compared to its 4Q19 cash position of US$ 210 million despite Buenaventura’s inability to produce during the last weeks of March due to the<br> government-mandated lockdown. |
| --- | --- |
| ● | On April 3, 2020, the Company announced the successful refinancing of its US$ 275 million syndicated loan facility. Maturity for the new loan facility has been set for a new five-year term loan with a 30-month grace period, with<br> semi-annual installments starting in October 2022. |
| --- | --- |
| ● | An updated guidance will be reported once we achieve full capacity of production in all of our operations. The updated guidance is expected to be reported by the end of June. |
| --- | --- |
Fniancial Highlights (in millions of US$, except EPS figures):
| 1Q20 | 1Q19 | Var | |
|---|---|---|---|
| Total Revenues | 114.5 | 186.1 | -38% |
| Operating Profit | -59.7 | -27.0 | -121% |
| EBITDA Direct Operations | -6.8 | 28.4 | N.A. |
| Adjusted EBITDA (Inc Associates) | 30.6 | 167.6 | -82% |
| Net Income | -75.0 | 27.3 | N.A. |
| EPS* | -0.30 | 0.11 | N.A. |
(*) As of March 31, 2020 Buenaventura had a weighted average number of shares outstanding of 253,986,867.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 2 of 25 |
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| COVID - 19 |
| --- |
The quarantine period in Peru was implemented starting on March 16, 2020 for an initial 15-day period, which was subsequently extended several times. As of the date of this report, Peru’s government mandated quarantine is expected to end on May 24, 2020.
During the quarantine period, production at Buenaventura’s direct operations has remained on care and maintenance, however, Buenaventura continued to process ore on leach pads at its Coimolache and La Zanja mines. All mining activities were limited to those critical activities which ensured the functionality of mine pumping systems, water treatment plants, energy supply, electric substations, health services as well as to ensure essential plant maintenance, managerial oversight, security and safety conditions, including backfill and general support, among others.
In April 2020, Buenaventura concluded the refinancing of its syndicated loan. The maturity for the new loan facility has been set for a new five-year term loan with a 30-month grace period, with semiannual installments starting in October 2022. The rate has been reduced to Libor (3m) + 190 bps from Libor (3m) + 215 bps.
The Company has a strong cash position of US$ 222 million as of March 2020 with monthly care and maintenance fixed costs between approximately US$ 12 – 14 million. Buenaventura continues monitoring its current sustaining and growth CAPEX, G&A, as well as dividend payments to shareholders with a focus on preserving liquidity.
The Peruvian Government, through a supreme decree, has authorized mining operators to gradually restart key activities, permitting mining companies in Peru to resume operations on May 11, 2020 that were scaled back sharply during the nationwide lockdown.
During this initial trial, companies are obligated to implement strict health and safety protocols approved by the Peruvian Mining Ministry to prevent the spread of infections. Health authorities will also conduct regular inspections in plants and mine sites to monitor compliance.
In order to comply with these new regulations, Buenaventura has elected to restart operations through a two-phased approach, prioritizing those mines with the most significant production. It is important to note that Buenaventura has already presented the required documentation to restart operations at all of its assets. We have already got all the permits to restart operations from the MINEM.
Buenaventura’s two-phased plan:
Phase 1 (initiated on May 16, 2020)
| • | Tambomayo |
|---|---|
| • | Uchucchacua |
| --- | --- |
| • | El Brocal (Tajo Norte and Marcapunta) |
| --- | --- |
| • | Coimolache |
| --- | --- |
Phase 2 (will begin on June 16, 2020)
| • | Orcopampa |
|---|---|
| • | Julcani |
| --- | --- |
| • | La Zanja |
| --- | --- |
Buenaventura made the decision on March 30, 2020 to suspend guidance for full year 2020. As of today, it is not possible to accurately quantify the full impact of Covid-19 on operations and future performance, making it difficult to estimate results for the full year. However, the Company continues to enhance its current mining plans in order to focus on high-grade areas while maintaining a focus on exploration and cost reduction efforts.
The Company will therefore report updated guidance once all operations have achieved full capacity and with more clarity related to full year 2020 results. As has been illustrated in the two-phased plan described above, Buenaventura expects to achieve full capacity by the end of June.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 3 of 25 |
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| Operating Revenues |
| --- |
1Q20 net sales were US$ 108.8 million, compared to US$ 180.6 million reported in 1Q19. This was primarily due to a 43% year on year decrease in volumes sold of gold, a 20% year on year decrease in volumes sold of lead and a 14% year on year decrease in volumes sold of silver.
Royalty income increased 5% in the 1Q20 to US$ 5.7 million, from US$ 5.5 million in 1Q19. This was due to a 10% increase in revenues at Yanacocha.
| Operating Highlights | 1Q20 | 1Q19 | Var % |
|---|---|---|---|
| Net Sales<br><br> <br>(in millions of US$) | 108.8 | 180.6 | -40% |
| Average Realized Gold Price<br><br> <br>(US$/oz) ^(1) (2)^ | 1,692 | 1,301 | 30% |
| Average Realized Gold Price<br><br> <br>(US$/oz) Inc. Affiliates ^(2)(3)^ | 1,613 | 1,305 | 24% |
| Average Realized Silver<br><br> <br>Price (US$/oz) ^(1) (2)^ | 17.16 | 15.45 | 11% |
| Average Realized Lead Price<br><br> <br>(US$/MT)^(1) (2)^ | 1,653 | 2,055 | -20% |
| Average Realized<br><br> <br>Zinc Price (US$/MT)^(1) (2)^ | 1,824 | 2,813 | -35% |
| Average Realized Copper<br><br> <br>Price (US$/MT)^(1) (2)^ | 5,536 | 6,122 | -10% |
| Volume Sold | 1Q20 | 1Q19 | Var % |
| --- | --- | --- | --- |
| Consolidated Gold Oz ^(1)^ | 20,236 | 35,587 | -43% |
| Gold Oz Inc. Associated Companies^(3)^ | 81,526 | 106,246 | -23% |
| Consolidated Silver Oz ^(1)^ | 3,009,626 | 3,501,679 | -14% |
| Consolidated Lead MT ^(1)^ | 7,495 | 9,378 | -20% |
| Consolidated Zinc MT ^(1)^ | 15,304 | 14,768 | 4% |
| Consolidated Copper MT ^(1^^)^ | 8,465 | 8,317 | 2% |
| (1) | Buenaventura Consolidated figure includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal. | ||
| --- | --- | ||
| (2) | The realized price takes into account the adjustments of quotational periods. | ||
| --- | --- | ||
| (3) | Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.095% of Coimolache and 43.65% of Yanacocha. | ||
| --- | --- |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 4 of 25 |
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| Production and Operating Costs |
| --- |
Buenaventura’s 1Q20 equity gold production was 89,152 ounces, compared to 112,912 reported in 1Q19, primarily due a 21% YoY decrease in production related to an anticipated 76% YoY decrease in production at La Zanja, a 39% percent decrease at Tambomayo and a 16% decrease in Yanacocha.
Silver equity production decreased by 5% year on year, primarily due to a 25% decrease in production at the Tambomayo mine. Lead equity production decreased by 15% year on year, primarily due to a 23% production decrease in Uchucchacua.
| Equity Production | 1Q20 | 1Q19 | Var % |
|---|---|---|---|
| Gold Oz Direct Operations^(1)^ | 26,967 | 39,337 | -31% |
| Gold Oz including Associated^(2)^ Companies | 89,152 | 112,912 | -21% |
| Silver Oz Direct Operations^(1)^ | 3,319,008 | 3,669,243 | -10% |
| Silver Oz including Associated<br><br> <br>Companies | 3,814,055 | 3,994,851 | -5% |
| Lead MT | 6,970 | 8,236 | -15% |
| Zinc MT | 12,877 | 12,840 | 0% |
| Copper MT Direct Operations^(1)^ | 5,645 | 5,484 | 3% |
| Copper MT including Associated Companies^(3)^ | 23,699 | 28,674 | -17% |
| Consolidated Production | 1Q20 | 1Q19 | Var % |
| --- | --- | --- | --- |
| Gold Oz^(4)^ | 30,078 | 47,046 | -36% |
| Silver Oz^(4)^ | 3,586,838 | 3,987,154 | -10% |
| Lead MT^(4)^ | 9,076 | 10,176 | -11% |
| Zinc MT^(4)^ | 18,685 | 16,877 | 11% |
| Copper MT^(4)^ | 9,163 | 8,900 | 3% |
(1) Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 61.43% of El Brocal.
(2) Based on 100% of Buenaventura´s operating units, 53.06% of La Zanja, 61.43% of el Brocal, 40.095% of Coimolache and 43.65% of Yanacocha.
(3) Based on 100% of Buenaventura´s operating units, 61.43% of el Brocal and 19.58% of Cerro Verde.
(4) Based on 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 5 of 25 |
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Tambomayo (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q20 | 1Q19 | Var % | ||
| Gold | Oz | 14,549 | 24,034 | -39% |
| Silver | Oz | 385,532 | 515,242 | -25% |
| Cost Applicable to Sales | ||||
| 1Q20 | 1Q19 | Var % | ||
| Gold | US$/Oz | 1,725 | 710 | 143% |
1Q20 year on year gold production at Tambomayo decreased 39% mainly due to a reduction in ore treated and lower ore grades. Cost Applicable to Sales (CAS) increased to 1,725 US$/Oz in 1Q20, compared to 710 US$/Oz in 1Q19, primarily due to decreased volume sold.
Tambomayo ended March 2020 with more inventory than usual (5k Au ounces of gold and 2.6k MT of Pb/Au concentrate, resulting in a total of approximately 10.0k Au ounces.
Orcopampa (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q20 | 1Q19 | Var % | ||
| Gold | Oz | 8,160 | 5,949 | 37% |
| Silver | Oz | 2,805 | 3,188 | -12% |
| Cost Applicable to Sales | ||||
| 1Q20 | 1Q19 | Var % | ||
| Gold | US$/Oz | 1,148 | 2,468 | -53% |
The increase in 1Q20 gold production at Orcopampa was mainly due to a higher ore grade. Cost Applicable to Sales (CAS) decreased to 1,148 US$/Oz in 1Q20, compared to 2,468 US$/Oz in 1Q19, primarily due to a 104% year on year increase in volume sold.
Mineral at Orcopampa is treated during the last two weeks of the month, aligned with the mine’s working protocol. Therefore, no mineral was treated during the month of March.
La Zanja (53.06% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q20 | 1Q19 | Var % | ||
| Gold | Oz | 3,297 | 13,616 | -76% |
| Silver | Oz | 13,420 | 49,182 | -73% |
| Cost Applicable to Sales | ||||
| 1Q20 | 1Q19 | Var % | ||
| Gold | US$/Oz | 2,104 | 961 | 119% |
1Q20 gold production decreased by 76% year on year, in line with the Company’s guidance released on January 23, 2020, which has since been suspended. 1Q20 Cost Applicable to Sales (CAS) was 2,104 US$/Oz; a 119% decrease compared to 961 US$/Oz in 1Q19, mainly due to lower volume sold (74%).
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 6 of 25 |
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Coimolache (40.10% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q20 | 1Q19 | Var % | ||
| Gold | Oz | 22,493 | 26,273 | -14% |
| Silver | Oz | 188,965 | 76,360 | 147% |
| Cost Applicable to Sales | ||||
| 1Q20 | 1Q19 | Var % | ||
| Gold | US$/Oz | 897 | 727 | 23% |
1Q20 gold production at Coimolache decreased by 14% year on year, primarily due lower ore grades. 1Q20 Cost Applicable to Sales (CAS) was 897 US$/Oz; a 23% increase compared to 727 US$/Oz in 1Q19, mainly due to lower volume sold.
Uchucchacua (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q20 | 1Q19 | Var % | ||
| Silver | Oz | 1,956,463 | 1,996,439 | -2% |
| Zinc | MT | 2,360 | 3,904 | -40% |
| Lead | MT | 2,273 | 2,959 | -23% |
| Cost Applicable to Sales | ||||
| 1Q20 | 1Q19 | Var % | ||
| Silver | US$/Oz | 16.79 | 11.79 | 42% |
1Q20 silver production at Uchucchacua reflected a marginal year on year decrease. Cost Applicable to Sales (CAS) in 1Q20 increased by 42% year on year, mainly due to lower by-product contribution and a 43% increase in commercial deductions.
Julcani (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q20 | 1Q19 | Var % | ||
| Silver | Oz | 550,552 | 658,715 | -16% |
| Cost Applicable to Sales | ||||
| 1Q20 | 1Q19 | Var % | ||
| Silver | US$/Oz | 15.89 | 14.05 | 13% |
1Q20 silver production decreased 16% year on year, mainly due to a reduction in ore treated and lower ore grades. 1Q20 Cost Applicable to Sales (CAS) of 15.89 US$/Oz was 13% higher than 14.05 US$/Oz in 1Q19, again mainly due to reduced volume sold.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 7 of 25 |
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El Brocal (61.43% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q20 | 1Q19 | Var % | ||
| Copper | MT | 9,122 | 8,856 | 3% |
| Zinc | MT | 15,058 | 10,467 | 44% |
| Silver | Oz | 678,067 | 764,388 | -11% |
| Cost Applicable to Sales | ||||
| 1Q20 | 1Q19 | Var % | ||
| Zinc | US$/MT | 1,838 | 2,208 | -17% |
| Copper | US$/MT | 5,193 | 5,890 | -12% |
Copper production in 1Q20 increased slightly compared with production reported in 1Q19. 1Q20 zinc production increased by 44% year on year, mainly due to higher ore grade.
As announced on the Company’s most recent operating results issued on April 28, 2020, March copper production reflected an increase as pillars with high content of copper were integrated to El Brocal´s mining plan. We expect to continue this increase once the production restart.
In 1Q20, Zinc Cost Applicable to Sales (CAS) decreased by 17% year on year, compared to 2,208 US$/MT in 1Q19, primarily due to more volume sold despite higher commercial deductions. Copper CAS in 1Q20 showed a decrease of 12% compared to 1Q19, mainly due to improved commercial terms.
| De-Bottlenecking Program – 2020 Update |
|---|
Buenaventura’s De-Bottlenecking Program showed strong progress during the quarter, generating additional EBITDA as follows:
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 8 of 25 |
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| General and Administrative Expenses |
|---|
1Q20 General and Administrative expenses were US$ 18.1 million; a 7% decrease as compared to the US$ 19.4 million in 1Q19.
| Exploration in Non-Operating Areas |
|---|
1Q20 exploration costs in Non-Operating Areas were US$ 1.8 million compared with US$ 3.4 million in 1Q19. During the period, Buenaventura primarily focused exploration efforts on Emperatriz amounting to US$ 1.1 million.
| Share in Associated Companies |
|---|
During 1Q20, Buenaventura’s share in associated companies was negative US$ 22.1 million, compared to US$ 49.5 million reported in 1Q19, comprised of:
| Share in the Result of Associates<br><br> <br>(in millions of US$) | 1Q20 | 1Q19 | Var |
|---|---|---|---|
| Cerro Verde | -11.9 | 39.2 | N.A. |
| Yanacocha | -9.5 | 9.7 | N.A. |
| Coimolache | -0.6 | 0.6 | N.A. |
| Total | -22.1 | 49.5 | N.A. |
YANACOCHA
At Yanacocha, which is 43.65% owned by Buenaventura, 1Q20 gold production was 121,802 ounces; 53,167 ounces of which were attributable to Buenaventura. This represents a 16% decrease as compared to the 144,423 ounces produced in 1Q19; 63,041 ounces of which were attributable to Buenaventura.
In 1Q20, Yanacocha reported a net loss of US$ 21.8 million, compared to a net income of US$ 22.1 million reported in 1Q19, primarily due to a reduction in ore treated and lower ore grades.
CAS in 1Q20 was 1,097 US$/Oz; a 58% increase compared to 693 US$/Oz in 1Q19.
Capital expenditures at Yanacocha were US$ 18.7 million in 1Q20.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 9 of 25 |
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The Yanacocha Sulfides project
| • | Currently in Definitive Feasibility Stage |
|---|---|
| • | Study work and engineering continues to advance remotely |
| --- | --- |
| • | Decision to proceed expected in 2021. |
| --- | --- |
| • | The Environmental Impact Assessment study was approved in March 2019. |
| --- | --- |
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 1Q20 copper production was 92,211 MT; 18,055 MT of which is attributable to Buenaventura, below the 118,435 MT produced in 1Q19; 23,190 MT of which was attributable to Buenaventura.
Cerro Verde reported a 1Q20 net loss of US$ 60.5 million compared to net income of US$ 200.2 million in 1Q19. This is primarily due to a US$ 431.4 million decrease in net sales primarily attributed to a decrease in the average realized copper price, to US$ 1.95 per pound in the first quarter of 2020 compared to US$ 3.12 per pound in the first quarter of 2019, with reduced sales volumes.
Capital expenditures at Cerro Verde were US$ 68.6 million in 1Q20.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), 1Q20 attributable contribution to net income was negative US$ 0.6 million, as compared to positive US$ 0.6 million in 1Q19.
***
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 2019 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.
(*) Operations wholly owned by Buenaventura
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 10 of 25 |
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| Note on Forward-Looking Statements<br><br> <br>This press release and related conference call contain, in addition to historical information, forward-looking statements including statements related to the Company’s ability to manage its business and<br> liquidity during and after the COVID-19 pandemic, the impact of the COVID-19 pandemic on the Company’s results of operations, including net revenues, earnings and cash flows, the Company’s ability to reduce costs and capital spending<br> in response to the COVID-19 pandemic if needed, the Company’s balance sheet, liquidity and inventory position throughout and following the COVID-19 pandemic, the Company’s prospects for financial performance, growth and achievement of<br> its long-term growth algorithm following the COVID-19 pandemic, future dividends and share repurchases.<br><br> <br><br><br> <br>This press release may also contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those<br> 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<br> 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<br> 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<br> statements as a result of a variety of factors discussed elsewhere in this Press Release. |
| --- |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 11 of 25 |
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**Tables to follow**
APPENDIX 1
| Equity Participation in<br><br> <br>Subsidiaries and Associates (as of March 31, 2020) | ||
|---|---|---|
| BVN | Operating | |
| Equity % | Mines / Business | |
| El Molle Verde S.A.C* | 100.00 | Trapiche Project |
| Minera La Zanja S.A* | 53.06 | La Zanja |
| Sociedad Minera El Brocal S.A.A* | 61.43 | Colquijirca and Marcapunta |
| Compañía Minera Coimolache S.A. ** | 40.10 | Tantahuatay |
| Minera Yanacocha S.R.L. ** | 43.65 | Yanacocha |
| Sociedad Minera Cerro Verde S.A.A ** | 19.58 | Cerro Verde |
| Processadora Industrial Rio Seco S.A* | 100.00 | Rio Seco chemical plant |
| Consorcio Energético de Huancavelica S.A* | 100.00 | Energy – Huanza Hydroelectrical plant |
(*) Consolidated
(**) Equity Accounting
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 12 of 25 |
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APPENDIX 2
| 1Q20 | |||||
|---|---|---|---|---|---|
| Gold Production | |||||
| Mining Unit | Operating Results | Unit | 1Q20 | 1Q19 | △% |
| Underground | |||||
| Tambomayo | Ore Milled | DMT | 115,781 | 145,157 | -20% |
| Ore Grade | Oz/MT | 4.69 | 6.14 | -24% | |
| Recovery Rate | % | 83.27 | 83.85 | -1% | |
| Ounces Produced* | Oz | 14,549 | 24,034 | -39% | |
| Orcopampa | Ore Milled | DMT | 20,616 | 25,086 | -18% |
| Ore Grade | Oz/MT | 12.38 | 7.66 | 62% | |
| Recovery Rate | % | 97.59 | 96.11 | 2% | |
| Ounces Produced* | Oz | 8,160 | 5,949 | 37% | |
| Open Pit | |||||
| La Zanja | Ounces Produced | Oz | 3,297 | 13,616 | -76% |
| Tantahuatay | Ounces Produced | Oz | 22,493 | 26,273 | -14% |
| (*) Includes ounces from retreatment of tailing dams | |||||
| Silver Production | |||||
| Mining Unit | Operating Results | Unit | 1Q20 | 1Q19 | △% |
| Underground | |||||
| Tambomayo | Ore Milled | DMT | 115,781 | 145,157 | -20% |
| Ore Grade | Oz/MT | 4.17 | 4.04 | 3% | |
| Recovery Rate | % | 79.78 | 87.87 | -9% | |
| Ounces Produced | Oz | 385,532 | 515,242 | -25% | |
| Uchucchacua | Ore Milled | DMT | 232,344 | 249,347 | -7% |
| Ore Grade | Oz/MT | 9.38 | 9.29 | 1% | |
| Recovery Rate | % | 89.77 | 86.01 | 4% | |
| Ounces Produced | Oz | 1,956,463 | 1,996,439 | -2% | |
| Julcani | Ore Milled | DMT | 26,731 | 29,629 | -10% |
| Ore Grade | Oz/MT | 21.29 | 22.95 | -7% | |
| Recovery Rate | % | 96.73 | 96.87 | 0% | |
| Ounces Produced | Oz | 550,552 | 658,715 | -16% | |
| Marcapunta | Ore Milled | DMT | 507,160 | 680,959 | -26% |
| Ore Grade | Oz/MT | 0.70 | 0.70 | 1% | |
| Recovery Rate | % | 66.79 | 52.80 | 26% | |
| Ounces Produced | Oz | 238,366 | 250,698 | -5% | |
| Open Pit | |||||
| Tajo Norte | Ore Milled | DMT | 850,119 | 880,757 | -3% |
| Ore Grade | Oz/MT | 0.81 | 0.91 | -11% | |
| Recovery Rate | % | 63.94 | 63.47 | 1% | |
| Ounces Produced | Oz | 439,701 | 513,690 | -14% |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 13 of 25 | |||||
|---|---|---|---|---|---|
| Zinc Production | |||||
| --- | --- | --- | --- | --- | --- |
| Mining Unit | Operating Results | Unit | 1Q20 | 1Q19 | △% |
| Underground | |||||
| Tambomayo | Ore Milled | DMT | 115,781 | 145,157 | -20% |
| Ore Grade | % | 1.58 | 2.19 | -28% | |
| Recovery Rate | % | 69.33 | 78.88 | -12% | |
| MT Produced | MT | 1,267 | 2,506 | -49% | |
| Uchucchacua | Ore Milled | DMT | 232,344 | 249,347 | -7% |
| Ore Grade | % | 1.63 | 2.48 | -34% | |
| Recovery Rate | % | 62.29 | 64.03 | -3% | |
| MT Produced | MT | 2,360 | 3,904 | -40% | |
| Open Pit | |||||
| Tajo Norte | Ore Milled | DMT | 850,119 | 880,757 | -3% |
| Ore Grade | % | 3.43 | 2.21 | 55% | |
| Recovery Rate | % | 51.69 | 53.98 | -4% | |
| MT Produced | MT | 15,058 | 10,467 | 44% | |
| Copper Production | |||||
| Mining Unit | Operating Results | Unit | 1Q20 | 1Q19 | △% |
| Underground | |||||
| Marcapunta | Ore Milled | DMT | 507,160 | 680,959 | -26% |
| Ore Grade | % | 1.93 | 1.46 | 32% | |
| Recovery Rate | % | 93.26 | 88.96 | 5% | |
| MT Produced | MT | 9,122 | 8,856 | 3% |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 14 of 25 | |
|---|---|
| APPENDIX 3: Adjusted EDITDA Reconcilliation (in thousand US) | |
| --- | --- |
| 1Q19 | |
| Net Income | 24,011 |
| Add / Substract: | 4,403 |
| Depreciation and Amortization | 49,744 |
| Share in associated companies by the equity method, net | -49,512 |
| Impairment of inventories | 930 |
| Interest expense | 11,529 |
| Provision of bonuses and compensations | 4,670 |
| Profit from discontinued operations | 2,389 |
| Loss (gain) on currency exchange difference | -22 |
| Depreciation and Amortization in administration expenses | 956 |
| Provision (reversal) for contingencies | -1,503 |
| Provision (credit) for income tax, net | -13,251 |
| Interest income | -2,111 |
| Write-off of fixed assets | 557 |
| Workers´ participation provision | 27 |
| EBITDA Buenaventura Direct Operations | 28,414 |
| EBITDA Yanacocha (43.65%) | 36,782 |
| EBITDA Cerro Verde (19.58%) * | 96,732 |
| EBITDA Coimolache (40.01%) | 5,687 |
| Adjusted EBITDA (including Associated companies) | 167,614 |
All values are in US Dollars.
*Cerro Verde’s EBITDA now considers D&A related to the capitalization of the stripping.
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.
EBITDA (including associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 15 of 25 |
|---|
APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION
Reconciliation of Costs Applicable to Sales and Cost Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding depreciation and amortization, plus selling expenses. Cost applicable to sales per unit sold for each mine consists of cost applicable to sales for a particular metal produced at a given mine divided by the volume of such metal produced at such mine in the specified period. We note that cost applicable to sales is not directly comparable to the cash operating cost figures disclosed in previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit of mineral sold are not measures of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. We consider Cost applicable to sales and Cost applicable to sales per unit of mineral sold to be key measures in managing and evaluating our operating performance. These measures are widely reported in the precious metals industry as a benchmark for performance, but do not have standardized meanings. You should not consider Cost applicable to sales or Cost applicable to sales per unit of mineral sold as alternatives to cost of sales determined in accordance with IFRS, as indicators of our operating performance. Cost applicable to sales and Cost applicable to sales per unit of mineral sold are calculated without adjusting for by-product revenue amounts.
The tables below set forth (i) a reconciliation of consolidated Cost of sales, excluding depreciation and amortization to consolidated Cost applicable to sales, (ii) reconciliations of the components of Cost applicable to sales (by mine and mineral) to the corresponding consolidated line items set forth on our consolidated statements of profit or loss for the three and nine months ended September 30, 2015 and 2016, and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units. The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and nine months ended September 30, 2015 and 2016 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 16 of 25 | |||
|---|---|---|---|
| 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 March 31 | |||
| 2020 | 2019 | ||
| (in thousands of US) | |||
| Consolidated Cost of sales excluding depreciation and amortization | 114,987 | ||
| Add: | |||
| Consolidated Exploration in units in operation | 11,464 | ||
| Consolidated Commercial deductions | 45,545 | ||
| Consolidated Selling expenses | 3,953 | ||
| Consolidated Cost applicable to sales | 175,949 | ||
| Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization | |||
| (by mine and mineral) to consolidated Cost of sales: | |||
| 2019 | |||
| Cost of sales by mine and mineral | (in thousands of US) | ||
| Julcani, Gold | 0 | ||
| Julcani, Silver | 6,538 | ||
| Julcani, Lead | 282 | ||
| Julcani, Copper | 17 | ||
| Orcopampa, Gold | 8,420 | ||
| Orcopampa, Silver | 57 | ||
| Orcopampa, Copper | 0 | ||
| Uchucchacua, Gold | 0 | ||
| Uchucchacua, Silver | 14,861 | ||
| Uchucchacua, Lead | 2,573 | ||
| Uchucchacua, Zinc | 4,962 | ||
| Tambomayo, Gold | 7,922 | ||
| Tambomayo, Silver | 2,270 | ||
| Tambomayo, Zinc | 1,201 | ||
| Tambomayo, Lead | 2,248 | ||
| La Zanja, Gold | 12,033 | ||
| La Zanja, Silver | 454 | ||
| El Brocal, Gold | 1,357 | ||
| El Brocal, Silver | 4,628 | ||
| El Brocal, Lead | 5,252 | ||
| El Brocal, Zinc | 12,733 | ||
| El Brocal, Copper | 24,812 | ||
| Non Mining Units | 2,367 | ||
| Consolidated Cost of sales, excluding depreciation and amortization | 114,987 | ||
| Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units: | |||
| 2019 | |||
| Exploration expenses in units in operation by mine and mineral | (in thousands of US) | ||
| Julcani, Gold | 0 | ||
| Julcani, Silver | 1,517 | ||
| Julcani, Lead | 65 | ||
| Julcani, Copper | 4 | ||
| Orcopampa, Gold | 2,521 | ||
| Orcopampa, Silver | 17 | ||
| Orcopampa, Copper | 0 | ||
| Uchucchacua, Gold | 0 | ||
| Uchucchacua, Silver | 1,430 | ||
| Uchucchacua, Lead | 248 | ||
| Uchucchacua, Zinc | 477 | ||
| Tambomayo, Gold | 1,884 | ||
| Tambomayo, Silver | 540 | ||
| Tambomayo, Lead | 286 | ||
| Tambomayo, Zinc | 535 | ||
| La Zanja, Gold | 1 | ||
| La Zanja, Silver | 0 | ||
| El Brocal, Gold | 54 | ||
| El Brocal, Silver | 184 | ||
| El Brocal, Lead | 209 | ||
| El Brocal, Zinc | 506 | ||
| El Brocal, Copper | 987 | ||
| Non Mining Units | 0 | ||
| Consolidated Exploration expenses in units in operation | 11,464 | ||
| Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) | |||
| to consolidated Commercial deductions: |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 17 of 25 | |||
|---|---|---|---|
| For the 3 months ended March 31 | |||
| --- | --- | --- | --- |
| 2020 | 2019 | ||
| Commercial Deductions in units in operation by mine and mineral | (in thousands of US) | ||
| Julcani, Gold | 0 | ||
| Julcani, Silver | 771 | ||
| Julcani, Lead | 33 | ||
| Julcani, Copper | 3 | ||
| Orcopampa, Gold | -30 | ||
| Orcopampa, Silver | -1 | ||
| Orcopampa, Copper | 0 | ||
| Uchucchacua, Gold | -2 | ||
| Uchucchacua, Silver | 4,789 | ||
| Uchucchacua, Lead | 392 | ||
| Uchucchacua, Zinc | 1,320 | ||
| Tambomayo, Gold | 1,591 | ||
| Tambomayo, Silver | 752 | ||
| Tambomayo, Lead | 399 | ||
| Tambomayo, Zinc | 1,557 | ||
| La Zanja, Gold | 45 | ||
| La Zanja, Silver | 1 | ||
| El Brocal, Gold | 1,200 | ||
| El Brocal, Silver | 2,381 | ||
| El Brocal, Lead | 1,177 | ||
| El Brocal, Zinc | 6,985 | ||
| El Brocal, Copper | 22,184 | ||
| Non Mining Units | 0 | ||
| Consolidated Commercial deductions in units in operation | 45,545 | ||
| Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated | |||
| Selling expenses: | |||
| For the 3 months ended March 31 | |||
| 2019 | |||
| Selling expenses by mine and mineral | (in thousands of US) | ||
| Julcani, Gold | 0 | ||
| Julcani, Silver | 78 | ||
| Julcani, Lead | 3 | ||
| Julcani, Copper | 0 | ||
| Orcopampa, Gold | 14 | ||
| Orcopampa, Silver | 0 | ||
| Orcopampa, Copper | 0 | ||
| Uchucchacua, Gold | 0 | ||
| Uchucchacua, Silver | 548 | ||
| Uchucchacua, Lead | 95 | ||
| Uchucchacua, Zinc | 183 | ||
| Tambomayo, Gold | 212 | ||
| Tambomayo, Silver | 61 | ||
| Tambomayo, Lead | 32 | ||
| Tambomayo, Zinc | 60 | ||
| La Zanja, Gold | 55 | ||
| La Zanja, Silver | 2 | ||
| El Brocal, Gold | 53 | ||
| El Brocal, Silver | 182 | ||
| El Brocal, Lead | 207 | ||
| El Brocal, Zinc | 501 | ||
| El Brocal, Copper | 976 | ||
| Non Mining Units | 690 | ||
| Consolidated Selling expenses | 3,953 |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 18 of 25 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| JULCANI | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | - | 6,188 | 127 | - | 22 | 6,337 | - | 6,538 | 282 | - | 17 | 6,837 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 1,044 | 21 | - | 4 | 1,069 | - | 1,517 | 65 | - | 4 | 1,586 |
| Commercial Deductions (US$000) | -16 | 841 | 15 | - | 4 | 844 | - | 771 | 33 | - | 3 | 807 |
| Selling Expenses (US$000) | - | 93.75 | 1.92 | - | 0 | 96 | - | 77.94 | 3.36 | - | 0.20 | 82 |
| Cost Applicable to Sales (US$000) | -16 | 8,167 | 165 | - | 30 | 8,346 | - | 8,904 | 384 | - | 24 | 9,311 |
| Divide: | ||||||||||||
| Volume Sold | - | 514,114 | 95 | - | 6 | Not Applicable | - | 633,567 | 211 | - | 5 | Not Applicable |
| CAS | - | 15.89 | 1,734 | - | 4,693 | Not Applicable | - | 14.05 | 1,817 | - | 5,273 | Not Applicable |
| ORCOPAMPA | ||||||||||||
| 1Q 2020 | 1Q 2019 | |||||||||||
| GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | |
| Cost of Sales (without D&A) (US$000) | 9,206 | 16 | - | - | - | 9,222 | 8,420 | 57 | - | - | - | 8,477 |
| Add: | - | |||||||||||
| Exploration Expenses (US$000) | 1,030 | 2 | - | - | - | 1,032 | 2,521 | 17 | - | - | - | 2,538 |
| Commercial Deductions (US$000) | 52 | 0 | - | - | - | 52 | -30 | -1 | - | - | - | -31 |
| Selling Expenses (US$000) | 60 | 0 | - | - | - | 60 | 14 | 0 | - | - | - | 15 |
| Cost Applicable to Sales (US$000) | 10,348 | 18 | - | - | - | 10,366 | 10,926 | 73 | - | - | - | 10,999 |
| Divide: | ||||||||||||
| Volume Sold | 9,016 | 1,733 | - | - | - | Not Applicable | 4,427 | 2,367 | - | - | - | Not Applicable |
| CAS | 1,148 | 10.41 | - | - | - | Not Applicable | 2,468 | 30.68 | - | - | - | Not Applicable |
| UCHUCCHACUA | ||||||||||||
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | - | 21,687 | 2,211 | 2,267 | - | 26,165 | - | 14,861 | 2,573 | 4,962 | - | 22,396 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 1,744 | 178 | 182 | - | 2,104 | - | 1,430 | 248 | 477 | - | 2,155 |
| Commercial Deductions (US$000) | 1 | 7,342 | 646 | 1,311 | - | 9,300 | -2 | 4,789 | 392 | 1,320 | - | 6,499 |
| Selling Expenses (US$000) | - | 797 | 81 | 83 | - | 961 | - | 548 | 95 | 183 | - | 826 |
| Cost Applicable to Sales (US$000) | 1 | 31,570 | 3,116 | 3,843 | - | 38,530 | -2 | 21,629 | 3,307 | 6,942 | - | 31,876 |
| Divide: | ||||||||||||
| Volume Sold | - | 1,880,330 | 1,972 | 1,874 | - | Not Applicable | 0 | 1,834,669 | 2,456 | 3,402 | - | Not Applicable |
| CAS | - | 16.79 | 1,580 | 2,051 | - | No Applicable | - | 11.79 | 1,347 | 2,041 | - | No Applicable |
| TAMBOMAYO | ||||||||||||
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | 7,866 | 1,700 | 317 | 1,682 | - | 11,565 | 7,922 | 2,270 | 1,201 | 2,247.90 | - | 13,641 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 333 | 72 | 13 | 71 | - | 490 | 1,884 | 540 | 286 | 535 | - | 3,244 |
| Commercial Deductions (US$000) | 567 | 460 | 174 | 766 | - | 1,968 | 1,591 | 752 | 399 | 1,557 | - | 4,298 |
| Selling Expenses (US$000) | 350 | 76 | 14 | 75 | - | 514 | 212 | 61 | 32 | 60 | - | 365 |
| Cost Applicable to Sales (US$000) | 9,116 | 2,308 | 518 | 2,594 | - | 14,537 | 11,608 | 3,623 | 1,917 | 4,400 | - | 21,548 |
| Divide: | ||||||||||||
| Volume Sold | 5,286 | 110,661 | 282 | 992 | - | Not Applicable | 16,360 | 399,251 | 1,551 | 1,979 | - | Not Applicable |
| CAS | 1,725 | 20.85 | 1,840 | 2,615 | - | No Applicable | 710 | 9.07 | 1,236 | 2,223 | - | No Applicable |
| LA ZANJA | ||||||||||||
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | 6,906 | 699 | - | - | - | 7,605 | 12,033 | 454 | - | - | - | 12,487 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1 | 0 | - | - | - | 1 | 1 | 0 | - | - | - | 1 |
| Commercial Deductions (US$000) | 8 | 0 | - | - | - | 8 | 45 | 1 | - | - | - | 46 |
| Selling Expenses (US$000) | 16 | 2 | - | - | - | 18 | 55 | 2 | - | - | - | 57 |
| Cost Applicable to Sales (US$000) | 6,932 | 700 | - | - | - | 7,632 | 12,133 | 458 | - | - | - | 12,591 |
| Divide: | ||||||||||||
| Volume Sold | 3,295 | 36,422 | - | - | - | Not Applicable | 12,621 | 39,686 | - | - | - | Not Applicable |
| CAS | 2,104 | 19.23 | - | - | - | Not Applicable | 961 | 11.54 | - | - | - | Not Applicable |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 19 of 25 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BROCAL | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | 2,123 | 3,909 | 4,070 | 10,744 | 22,315 | 43,160 | 1,357 | 4,628 | 5,252 | 12,733 | 24,812 | 48,782 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 65 | 119 | 124 | 327 | 678 | 1,312 | 54 | 184 | 209 | 506 | 987 | 1,940 |
| Commercial Deductions (US$000) | 1,862 | 2,827 | 2,351 | 11,177 | 19,655 | 37,871 | 1,200 | 2,381 | 1,177 | 6,985 | 22,184 | 33,927 |
| Selling Expenses (US$000) | 121 | 224 | 233 | 615 | 1,277 | 2,469 | 53 | 182 | 207 | 501 | 976 | 1,919 |
| Cost Applicable to Sales (US$000) | 4,171 | 7,078 | 6,777 | 22,861 | 43,925 | 84,812 | 2,665 | 7,374 | 6,845 | 20,726 | 48,959 | 86,568 |
| Divide: | ||||||||||||
| Volume Sold | 2,639 | 466,365 | 5,145 | 12,438 | 8,458 | Not Applicable | 2,178 | 592,139 | 5,159 | 9,387 | 8,313 | Not Applicable |
| CAS | 1,580 | 15.18 | 1,317 | 1,838 | 5,193 | Not Applicable | 1,223 | 12.45 | 1,327 | 2,208 | 5,890 | Not Applicable |
| NON<br><br> MINING COMPANIES | ||||||||||||
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | - | - | - | - | - | 1,755 | - | - | - | - | - | 2,367 |
| Add: | - | - | ||||||||||
| Selling Expenses (US$000) | - | - | - | - | - | 430 | - | - | - | - | - | 690 |
| Total (US$000) | - | - | - | - | - | 2,185 | - | - | - | - | - | 3,057 |
| BUENAVENTURA<br><br> CONSOLIDATED | ||||||||||||
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | 26101.58967 | 34,199 | 6,725 | 14,692 | 22,337 | 105,808 | 29,732 | 28,809 | 9,308 | 19,943 | 24,829 | 114,987 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1,429 | 2,981 | 336 | 580 | 682 | 6,009 | 4,460 | 3,688 | 807 | 1,518 | 991 | 11,464 |
| Commercial Deductions (US$000) | 2,473 | 11,470 | 3,186 | 13,254 | 19,659 | 50,043 | 2,803 | 8,692 | 2,001 | 9,863 | 22,186 | 45,545 |
| Selling Expenses (US$000) | 547 | 1,191 | 330 | 773 | 1,277 | 4,548 | 335 | 871 | 337 | 744 | 976 | 3,954 |
| Cost Applicable to Sales (US$000) | 30,551 | 49,841 | 10,577 | 29,299 | 43,955 | 166,407 | 37,330 | 42,060 | 12,453 | 32,068 | 48,982 | 175,950 |
| Divide: | ||||||||||||
| Volume Sold | 20,236 | 3,009,626 | 7,495 | 15,304 | 8,465 | Not Applicable | 35,587 | 3,501,679 | 9,378 | 14,768 | 8,317 | Not Applicable |
| CAS | 1,510 | 16.56 | 1,411 | 1,914 | 5,193 | Not Applicable | 1,049 | 12.01 | 1,328 | 2,171 | 5,889 | Not Applicable |
| COIMOLACHE | ||||||||||||
| 1Q 2020 | 1Q 2019 | |||||||||||
| 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) | 20,642 | 1,799 | - | - | - | 22,441 | 17,573 | 627 | - | - | - | 18,200 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 587 | 51 | - | - | - | 638 | 1,264 | 45 | - | - | - | 1,309 |
| Commercial Deductions (US$000) | 179 | 13 | - | - | - | 192 | 83 | 3 | - | - | - | 86 |
| Selling Expenses (US$000) | 110 | 10 | - | - | - | 120 | 114 | 4 | - | - | - | 118 |
| Cost Applicable to Sales (US$000) | 21,517 | 1,873 | - | - | - | 23,391 | 19,034 | 679 | - | - | - | 19,713 |
| Divide: | ||||||||||||
| Volume Sold | 23,978 | 198,070 | - | - | - | Not Applicable | 26,191 | 75,770 | - | - | - | Not Applicable |
| CAS | 897 | 9.46 | - | - | - | Not Applicable | 727 | 8.97 | - | - | - | Not Applicable |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 20 of 25 |
|---|
APPENDIX 5: ALL-IN SUSTAINING COST
Buenaventura
| All-in Sustaining Cost for 1Q20 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| Au Ounces Sold BVN | ||||||||
| Au Ounces bought from La Zanja | ||||||||
| Au Ounces Sold Net | ||||||||
| Income Statement & Cash Flow | US 000' | US/Oz Au | US 000' | US/Oz Au | US 000' | US/Oz Au | US 000' | US/Oz Au |
| Cost of Sales | ||||||||
| Exploration in Operating Units | ||||||||
| Royalties | ||||||||
| Comercial Deductions3 | ||||||||
| Selling Expenses | ||||||||
| Administrative Expenses | ||||||||
| Other, net | ||||||||
| Sustaining Capex4 | ||||||||
| By-product Credit | ||||||||
| All-in Sustaining Cost | ||||||||
| *All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas. | ||||||||
| Notes: | ||||||||
| 1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A. | ||||||||
| 2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay. | ||||||||
| 3. For all metals produced. | ||||||||
| 4. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 21 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Buenaventura | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| All-in Sustaining Cost for 1Q19 | ||||||||
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| Au Ounces Sold BVN | ||||||||
| Au Ounces bought from La Zanja | ||||||||
| Au Ounces Sold Net | ||||||||
| Income Statement & Cash Flow | US 000' | US/Oz Au | US 000' | US/Oz Au | US 000' | US/Oz Au | US 000' | US/Oz Au |
| Cost of Sales | ||||||||
| Exploration in Operating Units | ||||||||
| Royalties | ||||||||
| Comercial Deductions3 | ||||||||
| Selling Expenses | ||||||||
| Administrative Expenses | ||||||||
| Other, net | ||||||||
| Sustaining Capex4 | ||||||||
| By-product Credit | ||||||||
| All-in Sustaining Cost | ||||||||
| *All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas. | ||||||||
| Notes: | ||||||||
| 1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A. | ||||||||
| 2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay. | ||||||||
| 3. For all metals produced. | ||||||||
| 4. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 22 of 25 |
|---|
APPENDIX 6
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
|---|---|---|---|---|
| Consolidated Statement of Financial Position | ||||
| As of March 31, 2020 and December 31, 2019 | ||||
| 2020 | 2019 | |||
| Assets | US(000) | US(000) | ||
| Current assets | ||||
| Cash and cash equivalents | ||||
| Trade and other accounts receivable, net | ||||
| Inventory, net | ||||
| Income tax credit | ||||
| Prepaid expenses | ||||
| Hedge derivative financial instruments | ||||
| Non-current assets | ||||
| Trade and other receivables, net | ||||
| Inventories, net | ||||
| Income tax credit | ||||
| Investments in associates and joint venture | ||||
| Mining concessions, development costs, right-of-use, property, plant and equipment, net | ||||
| Investment properties, net | ||||
| Deferred income tax asset, net | ||||
| Prepaid expenses | ||||
| Other assets, net | ||||
| Total assets | ||||
| Liabilities and shareholders’ equity, net | ||||
| Current liabilities | ||||
| Bank loans | ||||
| Trade and other payables | ||||
| Provisions, contingent liabilities and other liabilities | ||||
| Income tax payable | ||||
| Financial obligations | ||||
| Non-current liabilities | ||||
| Trade and other payables | ||||
| Provisions, contingent liabilities and other liabilities | ||||
| Financial obligations | ||||
| Contingent consideration liability | ||||
| Deferred income tax liabilities, net | ||||
| Total liabilities | ||||
| Shareholders’ equity, net | ||||
| Capital stock | ||||
| Investment shares | ||||
| Additional paid-in capital | ||||
| Legal reserve | ||||
| Other reserves | ||||
| Retained earnings | ||||
| Other reserves of equity | ) | ) | ||
| Shareholders’ equity, net attributable to owners of the parent | ||||
| Non-controlling interest | ||||
| Total shareholders’ equity, net | ||||
| Total liabilities and shareholders’ equity, net |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 23 of 25 | ||||
|---|---|---|---|---|
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
| --- | --- | --- | --- | --- |
| Consolidated Statement of Income | ||||
| For the three month periods ended March 31, 2020 and 2019 | ||||
| For the three month period ended March, 31 | ||||
| 2020 | 2019 | |||
| Continuing operations | US(000) | US(000) | ||
| Operating income | ||||
| Net sales of goods | ||||
| Net sales of services | ||||
| Royalty income | ||||
| Total operating income | ||||
| Operating costs | ||||
| Cost of sales of goods, without considering depreciation and amortization | ) | ) | ||
| Cost of sales of services, without considering depreciation and amortization | ) | ) | ||
| Depreciation and amortization | ) | ) | ||
| Exploration in operating units | ) | ) | ||
| Mining royalties | ) | ) | ||
| Total operating costs | ) | ) | ||
| Gross profit (loss) | ) | |||
| Operating expenses, net | ||||
| Administrative expenses | ) | ) | ||
| Selling expenses | ) | ) | ||
| Exploration in non-operating areas | ) | ) | ||
| Impairment recovery (loss) of long-lived assets | ||||
| Reversal (provision) for contingencies and others | ) | |||
| Other, net | ) | |||
| Adjustment of component of stripping cost | ||||
| Total operating expenses, net | ) | ) | ||
| Operating loss | ) | ) | ||
| Other income (expense), net | ||||
| Share in the results of associates and joint venture | ) | |||
| Financial costs | ) | ) | ||
| Net gain (loss) from currency exchange difference | ) | |||
| Financial income | ||||
| Total other income (expense), net | ) | |||
| Profit (loss) before income tax | ) | |||
| Current income tax | ) | ) | ||
| Deferred income tax | ||||
| Profit (loss) from continuing operations | ) | |||
| Discontinued operations | ||||
| Net loss from discontinued operations attributable to equity holders of the parent | ) | ) | ||
| Net profit (loss) | ) | |||
| Attributable to: | ||||
| Equity holders of the parent | ) | |||
| Non-controlling interest | ) | ) | ||
| ) | ||||
| Basic and diluted profit (loss) per share attributable to | ||||
| equity holders of the parent, stated in U.S. dollars | ) |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 24 of 25 | ||||
|---|---|---|---|---|
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
| --- | --- | --- | --- | --- |
| Consolidated Statement of Cash Flows | ||||
| For the three month periods ended March 31, 2020 and 2019 | ||||
| For the three month period ended June, 30 | ||||
| 2020 | 2019 | |||
| US(000) | US(000) | |||
| Operating activities | ||||
| Proceeds from sales | ||||
| Royalty received | ||||
| Value Added Tax recovered | ||||
| Proceeds from dividends | ||||
| Interest received | ||||
| Proceeds from insurance claim | ||||
| Payments to suppliers and third-parties | ) | ) | ||
| Payments to employees | ) | ) | ||
| Payments for tax litigation | ||||
| Payments of interest | ) | ) | ||
| Payment of income taxes | ) | ) | ||
| Payments of mining royalties | ) | ) | ||
| Net cash and cash equivalents provided by (used in) operating activities | ) | |||
| Investing activities | ||||
| Proceeds from sales of mining concessions, property, plant and equipment | ||||
| Purchase of shares | ) | |||
| Acquisitions of mining concessions, development costs, property, plant and equipment | ) | ) | ||
| Payments to other assets | ) | ) | ||
| Net cash and cash equivalents used in investing activities | ) | ) | ||
| Financing activities | ||||
| Proceeds of bank loans | ||||
| Payments of bank loans | ) | ) | ||
| Proceeds from financial obligations | ||||
| Payments of financial obligations | ) | ) | ||
| Short-term lease payments | ||||
| Dividends paid to controlling interest | ||||
| Dividends paid to non-controlling interest | ) | ) | ||
| Decrease of restricted bank accounts | ||||
| Net cash and cash equivalents used in financing activities | ) | ) | ||
| Net increase (decrease) in cash and cash equivalents during the period | ) | |||
| Cash and cash equivalents at the beginning of the period | ||||
| Cash and cash equivalents at period-end |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>First Quarter 2020 Results<br><br> <br>Page 25 of 25 | ||||
|---|---|---|---|---|
| For the three month period ended June, 30 | ||||
| --- | --- | --- | --- | --- |
| 2020 | 2019 | |||
| US(000) | US(000) | |||
| Reconciliation of net profit to cash and cash equivalents provided | ||||
| by operating activities | ||||
| Net profit (loss) | ) | |||
| Plus (less): | ||||
| Depreciation and amortization | ||||
| Net share in results of associates | ) | |||
| Reversal for impairment loss of inventories | ||||
| Bonus provision - executives & employes | ||||
| Net loss (gain) from currency exchange difference | ) | |||
| Deferred income tax expense (income) | ) | ) | ||
| Provision for estimated fair value of sales | ) | |||
| Income attributable to non-controlling interest | ||||
| Accretion expense of provision for closure of mining units and exploration projects | ||||
| Recovery (expense) for provision for contingencies | ) | |||
| Fair Value of accounts receivable - no fixed prices | ) | |||
| Fair Value of accounts receivable - fixed prices | ||||
| Hedge derivative instruments | ) | |||
| Provision for impairment of long-lived assets | ||||
| Write-off of fixed assets | ||||
| Other net | ) | |||
| Net changes in operating assets and liabilities: | ||||
| Decrease (increase) in operating assets - | ||||
| Trade and other accounts receivable | ) | |||
| Inventories | ) | ) | ||
| Income tax credit | ||||
| Prepaid expenses | ) | |||
| Increase (decrease) in operating liabilities - | ||||
| Trade and other accounts payable | ) | ) | ||
| Provisions, contingent liabilities and other liabilities | ) | ) | ||
| Income tax payable | ) | ) | ||
| Proceeds from dividends | ||||
| Net cash and cash equivalents provided by operating activities | ) |
All values are in US Dollars.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COMPAÑÍA DE MINAS BUENAVENTURA S.A.A.
By: /s/ LEANDRO GARCÍA RAGGIO
Name: Leandro García Raggio
Title: Chief Financial Officer
Date: May 18, 2020