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 July 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 Second Quarter and Six Month 2020 Results
Lima, Peru, July 30, 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 second quarter (2Q20) and six-month (6M20) period ended June 30, 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$).
Second Quarter 2020 Highlights:
| ● | 2Q20 results were adversely impacted by the State of Emergency and related mandated lockdown instituted by the Peruvian Government in order to contain the spread of the Coronavirus (COVID-19). As part of the<br> Buenaventura´s two-phased plan, on May 16, 2020 Tambomayo, Uchucchacua, El Brocal and Coimolache began the process to restart operations. The second phase began on June 16, 2020. As of the date of this press release, the Company expects to reach full capacity at all operations by the end of August. |
|---|---|
| ● | 2Q20 EBITDA from direct operations was US$ 26.5 million, compared to US$ 47.1 million reported in 2Q19. |
| --- | --- |
| ● | June 2020 EBITDA from direct operations was US$33.3 million, an initial indication of post-State of Emergency restriction recovery. |
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| ● | 2Q20 Adjusted EBITDA including associated companies reached US$ 86.1 million, compared to US$ 137.3 million in 2Q19. |
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| ● | 2Q20 capital expenditures were US$ 11.6 million, compared to US$ 28.8 million for the same period in 2019. |
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| ● | 2Q20 net loss was US$ 25.1 million, compared to a net income of US$ 9.7 million for the same period in 2019. US$2.9 million of the above net loss was due to additional expenses related to the effect of COVID-19<br> on a consolidated basis. |
| --- | --- |
| ● | The Company´s De-Bottlenecking Program continued to progress during the 2Q20 at a reduced level. The program’s 2020 focus is on the Company’s Tambomayo, Uchucchacua and El Brocal mines (please refer to page 6 for related details). |
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| ● | Buenaventura’s 2Q20 cash position reached US$ 196 million. |
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| ● | Updated guidance will be provided once Buenaventura has achieved full production capacity at all operations. |
| --- | --- |
Financial Highlights (in millions of US$, except EPS figures):
| 2Q20 | 2Q19 | Var | 6M20 | 6M19 | Var | |
|---|---|---|---|---|---|---|
| Total Revenues | 97.8 | 216.1 | -55% | 212.3 | 402.2 | -47% |
| Operating Profit | -17.9 | -15.3 | 17% | -77.5 | -42.4 | 83% |
| EBITDA Direct Operations | 26.5 | 47.1 | -44% | 19.7 | 74.8 | -74% |
| Adjusted EBITDA (Inc Associates) | 86.1 | 137.3 | -37% | 116.7 | 304.3 | -62% |
| Net Income | -25.1 | 9.7 | N.A. | -100.1 | 37.0 | N.A. |
| EPS* | -0.10 | 0.04 | N.A. | -0.39 | 0.15 | N.A. |
(*) As of June 30, 2020 Buenaventura had a weighted average number of shares outstanding of 253,986,867.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 2 of 27 |
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| Operating Revenues |
| --- |
2Q20 net sales were US$ 94.2 million, compared to US$ 210.8 million reported in 2Q19. This was primarily due to a 46% year on year decrease in gold volumes sold, a 73% year on year decrease in silver volumes sold, 75% year on year decrease in lead volumes sold, a 72% year on year decrease in zinc volumes sold and a 70% year on year decrease in copper volumes sold primarily due to the impact of the State of Emergency declared by the Peruvian government.
Royalty income decreased 34% in the 2Q20 to US$ 3.6 million, from US$ 5.4 million in 2Q19. This was due to a 31% decrease in revenues at Yanacocha.
| Operating Highlights | 2Q20 | 2Q19 | % | 6M20 | 6M19 | % |
|---|---|---|---|---|---|---|
| Net Sales<br><br> <br>(in millions of US$) | 94.2 | 210.8 | -55% | 203.0 | 391.4 | -48% |
| Average Realized Gold Price (US$/oz) ^(1) (2)^ | 1,775 | 1,303 | 36% | 1,738 | 1,302 | 33% |
| Average Realized Gold Price (US$/oz) Inc. Affiliates ^(2)(3)^ | 1,744 | 1,308 | 33% | 1,669 | 1,306 | 28% |
| Average Realized Silver Price (US$/oz) ^(1) (2)^ | 16.67 | 14.91 | 12% | 17.00 | 15.12 | 12% |
| Average Realized Lead Price (US$/MT)^(1) (2)^ | 1,460 | 1,851 | -21% | 1,587 | 1,929 | -18% |
| Average Realized<br><br> <br>Zinc Price (US$/MT)^(1) (2)^ | 1,112 | 2,875 | -61% | 1,655 | 2,847 | -42% |
| Average Realized Copper Price (US$/MT)^(1) (2)^ | 5,085 | 6,077 | -16% | 5,425 | 6,098 | -11% |
| Volume Sold | 2Q20 | 2Q19 | % | 6M20 | 6M19 | % |
| --- | --- | --- | --- | --- | --- | --- |
| Consolidated Gold Oz ^(1)^ | 24,839 | 45,854 | -46% | 45,075 | 81,441 | -45% |
| Gold Oz Inc. Associated Companies^(3)^ | 60,327 | 118,715 | -49% | 141,852 | 224,962 | -37% |
| Consolidated Silver Oz ^(1)^ | 1,460,620 | 5,342,779 | -73% | 4,470,246 | 8,844,458 | -49% |
| Consolidated Lead MT ^(1)^ | 3,862 | 15,171 | -75% | 11,357 | 24,549 | -54% |
| Consolidated Zinc MT ^(1)^ | 4,751 | 17,070 | -72% | 20,055 | 31,839 | -37% |
| Consolidated Copper MT ^(1^^)^ | 2,758 | 9,189 | -70% | 11,223 | 17,507 | -36% |
| (1) | Buenaventura Consolidated figure includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal. | |||||
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| (2) | The realized price takes into account the adjustments of quotational periods. | |||||
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| (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. | |||||
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| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 3 of 27 |
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| Production and Operating Costs |
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Buenaventura’s 2Q20 equity gold production was 62,029 ounces, compared to 115,245 reported in 2Q19, primarily due to a 30% percent production decrease at Tambomayo and a 51% production decrease at Yanacocha due to the impact of the Peruvian government’s State of Emergency.
Silver equity production decreased by 64% year on year, primarily due to a 68% decrease in production at the Uchucchacua mine. Lead equity production decreased by 75% year on year, primarily due to a 74% production decrease at El Brocal and 87% decrease at the Uchucchacua mine. Zinc equity production decreased by 75% year on year, primarily due to a 65% production decrease at El Brocal and 92% decrease at the Uchucchacua mine. The above is directly related to the impact of the Peruvian government’s State of Emergency.
| Equity Production | 2Q20 | 2Q19 | % | 6M20 | 6M19 | % |
|---|---|---|---|---|---|---|
| Gold Oz Direct Operations^(1)^ | 26,989 | 40,598 | -34% | 53,956 | 79,935 | -33% |
| Gold Oz including Associated^(2)^ Companies | 62,029 | 115,245 | -46% | 151,181 | 228,157 | -34% |
| Silver Oz Direct Operations^(1)^ | 1,686,689 | 5,187,170 | -67% | 5,005,697 | 8,856,414 | -43% |
| Silver Oz including Associated Companies | 1,991,257 | 5,516,353 | -64% | 5,805,312 | 9,511,204 | -39% |
| Lead MT | 3,316 | 13,023 | -75% | 10,286 | 21,259 | -52% |
| Zinc MT | 3,986 | 16,090 | -75% | 16,863 | 28,930 | -42% |
| Copper MT Direct Operations^(1)^ | 1,881 | 5,989 | -69% | 7,526 | 11,473 | -34% |
| Copper MT including Associated Companies^(3)^ | 17,667 | 27,167 | -35% | 41,366 | 55,840 | -26% |
| Consolidated Production | 2Q20 | 2Q19 | % | 6M20 | 6M19 | % |
| --- | --- | --- | --- | --- | --- | --- |
| Gold Oz^(4)^ | 28,815 | 44,582 | -35% | 58,893 | 91,629 | -36% |
| Silver Oz^(4)^ | 1,789,375 | 5,751,519 | -69% | 5,376,212 | 9,738,672 | -45% |
| Lead MT^(4)^ | 4,160 | 16,244 | -74% | 13,236 | 26,420 | -50% |
| Zinc MT^(4)^ | 5,677 | 20,902 | -73% | 24,362 | 37,779 | -36% |
| Copper MT^(4)^ | 3,056 | 9,719 | -69% | 12,218 | 18,618 | -34% |
| (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> First Quarter 2020 Results<br><br> Page 4 of 27 |
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Tambomayo (100% owned by Buenaventura)
| Production | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Gold | Oz | 17,121 | 24,610 | -30 | % | 31,670 | 48,643 | -35 | % | ||
| Silver | Oz | 410,010 | 558,034 | -27 | % | 795,541 | 1,073,277 | -26 | % | ||
| Cost Applicable to Sales | |||||||||||
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Gold | US$/Oz | 736 | 558 | 32 | % | 984 | 617 | 59 | % |
2Q20 year on year gold production at Tambomayo decreased 30% mainly due to a reduction in ore treated due to State of Emergency restrictions as well as low gold grade inventories treated in April. Cost Applicable to Sales (CAS) increased to 736 US$/Oz in 2Q20, compared to 558 US$/Oz in 2Q19, primarily due to at 40% decrease in volume sold.
Tambomayo ended June 2020 with a 9,000 ounce increase in gold inventory, which is more than usual for this time period.
Orcopampa (100% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||
| Gold | Oz | 7,612 | 10,764 | -29% | 15,773 | 16,713 | -6% |
| Silver | Oz | 1,075 | 7,312 | -85% | 3,881 | 10,499 | -63% |
| Cost Applicable to Sales | |||||||
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||
| Gold | US$/Oz | 325 | 1,563 | -79% | 909 | 1,834 | -50% |
The decrease in 2Q20 gold production at Orcopampa was mainly due to reduced amounts of ore treated despite a higher ore grade. Cost Applicable to Sales (CAS) decreased to 325 US$/Oz in 2Q20, compared to 1,563 US$/Oz in 2Q19, primarily due to a higher gold grade (74%).
As result of suspended activities during the State of Emergency, operating cost during those months without production was recognized as “other expenses”. In the case of Orcopampa, US$ 3.6 million (excluding D&A) was classified as “others”.
La Zanja (53.06% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||
| Gold | Oz | 3,028 | 5,443 | -44% | 6,325 | 19,060 | -67% |
| Silver | Oz | 14,411 | 11,422 | 26% | 27,830 | 60,604 | -54% |
| Cost Applicable to Sales | |||||||
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||
| Gold | US$/Oz | 1,053 | 1,471 | -28% | 1,656 | 1,115 | 49% |
2Q20 gold production decreased by 44%, year on year. 2Q20 Cost Applicable to Sales (CAS) was 1,053 US$/Oz; a 28% decrease compared to 1,471 US$/Oz in 2Q19. Said decrease in CAS was due to the fact that most production was derived from re-leaching the pads, therefore consuming inventories.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 5 of 27 |
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Due to suspended activities during the State of Emergency, operating cost during the months without production was recognized as “other expenses”. In the case of La Zanja, US$ 0.2 million (excluding D&A) was classified as “others”.
Coimolache (40.10% owned by Buenaventura)
| Production | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Gold | Oz | 13,551 | 34,766 | -61 | % | 36,044 | 61,039 | -41 | % | ||
| Silver | Oz | 77,992 | 145,567 | -46 | % | 266,957 | 221,927 | 20 | % | ||
| Cost Applicable to Sales | |||||||||||
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Gold | US$/Oz | 1,017 | 716 | 42 | % | 942 | 721 | 31 | % |
2Q20 gold production at Coimolache decreased by 61% year on year, primarily due to a reduction in ore treated due to the State of Emergency. 2Q20 Cost Applicable to Sales (CAS) was 1,017 US$/Oz; a 42% increase compared to 716 US$/Oz in 2Q19, mainly due to a 58% decrease in volume sold.
Uchucchacua (100% owned by Buenaventura)
| Production | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Silver | Oz | 979,008 | 3,083,290 | -68 | % | 2,935,471 | 5,079,729 | -42 | % | ||
| Zinc | MT | 462 | 6,093 | -92 | % | 2,822 | 9,998 | -72 | % | ||
| Lead | MT | 753 | 5,795 | -87 | % | 3,026 | 8,754 | -65 | % | ||
| Cost Applicable to Sales | |||||||||||
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Silver | US$/Oz | 16.24 | 10.37 | 57 | % | 16.61 | 10.82 | 54 | % |
2Q20 silver production at Uchucchacua reflected a 68% decrease, primarily due to a reduction in ore treated due to the State of Emergency. Cost Applicable to Sales (CAS) in 2Q20 increased by 57% year on year, mainly due to a 78% decrease in volume sold.
Due to suspended activities during the State of Emergency, the operating cost during those months without production was recognized as “other expenses”. In the case of Uchucchacua, US$ 3.2 million (excluding D&A) was classified as “others”.
Julcani (100% owned by Buenaventura)
| Production | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Silver | Oz | 136,177 | 642,182 | -79 | % | 686,729 | 1,300,897 | -47 | % | ||
| Cost Applicable to Sales | |||||||||||
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||||||
| Silver | US$/Oz | 17.02 | 13.47 | 26 | % | 16.10 | 13.77 | 17 | % |
2Q20 silver production decreased 79% year on year due to a reduction in ore treated resulting from Peru’s State of Emergency. 2Q20 Cost Applicable to Sales (CAS) of 17.02 US$/Oz was 26% higher than 13.47 US$/Oz in 2Q19, mainly due to an 80% decrease in volume sold.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 6 of 27 |
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Due to suspended activities during the State of Emergency, the operating cost during those months without production was recognized as “other expenses”. In the case of Julcani, US$ 2.0 million (excluding D&A) was classified as “others”.
El Brocal (61.43% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||
| Copper | MT | 3,045 | 9,671 | -69% | 12,167 | 18,527 | -34% |
| Zinc | MT | 4,385 | 12,476 | -65% | 19,442 | 22,943 | -15% |
| Silver | Oz | 248,693 | 1,449,278 | -83% | 926,761 | 2,213,667 | -58% |
| Cost Applicable to Sales | |||||||
| 2Q20 | 2Q19 | Var % | 6M20 | 6M19 | Var % | ||
| Zinc | US$/MT | 1,491 | 2,099 | -29% | 1,760 | 2,149 | -18% |
| Copper | US$/MT | 5,473 | 5,504 | -1% | 5,262 | 5,680 | -7% |
2Q20 copper production decreased by 69% as compared to production reported for 2Q19. 2Q20 zinc production decreased by 65% year on year. In both cases, this was primarily due to a reduction in ore treated due to the State of Emergency.
In 2Q20, Zinc Cost Applicable to Sales (CAS) 2Q20 decreased by 29% compared to 2Q19, mainly due to a higher zinc grade (63%). 2Q20 copper CAS decreased slightly.
Due to the suspension of activities during the State of Emergency, the operating cost during those months without production was recognized as “other expenses”. In the case of El Brocal, US$ 10.2 million (excluding D&A) was classified as “others”.
| De-Bottlenecking Program – 2020 Update |
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Buenaventura’s De-Bottlenecking Program progressed well during the quarter under the circumstances, generating additional EBITDA as illustrated below:
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 7 of 27 |
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| General and Administrative Expenses |
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2Q20 General and Administrative expenses were US$ 14.9 million; a 17% decrease as compared to US$ 18.0 million in 2Q19. This is due to the Company´s successful cost containment and expense reduction during the quarter, which partially offset the adverse effects of Peru’s State of Emergency.
| Exploration in Non-Operating Areas |
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2Q20 exploration costs in Non-Operating Areas were US$ 1.7 million, compared with US$ 3.4 million in 2Q19. During the period, Buenaventura focused exploration efforts primarily on Emperatriz, amounting to US$ 0.9 million during 2Q20.
| Share in Associated Companies |
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During 2Q20, Buenaventura’s share in associated companies was US$ 3.9 million, compared to US$ 22.7 million reported in 2Q19, comprised of:
| Share in the Result of Associates<br><br> <br>(in millions of US$) | 2Q20 | 2Q19 | Var | 6M20 | 6M19 | Var |
|---|---|---|---|---|---|---|
| Cerro Verde | 13.5 | 10.4 | 29% | 1.6 | 49.6 | -97% |
| Yanacocha | -7.6 | 11.2 | N.A. | -17.1 | 20.9 | N.A. |
| Coimolache | -1.8 | 1.1 | N.A. | -2.4 | 1.7 | N.A. |
| Others | -0.1 | 0.0 | N.A. | -0.2 | 0.0 | N.A. |
| Total | 3.9 | 22.7 | -83% | -18.1 | 72.2 | N.A. |
YANACOCHA
At Yanacocha, which is 43.65% owned by Buenaventura, 2Q20 gold production was 67,827 ounces; 29,606 ounces of which were attributable to Buenaventura. This represents a 51% decrease as compared to the 139,077 ounces produced in 2Q19; 60,707 ounces of which were attributable to Buenaventura.
For 6M20, gold production was 189,629; 82,773 ounces of which were attributable to Buenaventura, a 33% decrease as compared to 283,500 ounces in 6M19; 123,748 ounces of which were attributable to Buenaventura.
In 2Q20, Yanacocha reported a net loss of US$ 17.5 million, compared to a net income of US$ 25.7 million reported in 2Q19. CAS in 2Q20 was 929 US$/Oz; a 23% increase compared to 753 US$/Oz in 2Q19.
Capital expenditures at Yanacocha were US$ 19.4 million in 2Q20.
The Yanacocha Sulfides project
| ● | Currently in Definitive Feasibility Stage |
|---|---|
| ● | Study work and engineering continue to successfully progress remotely |
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| ● | Decision to proceed expected in 2021. |
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| ● | The Environmental Impact Assessment study was approved in March 2019. |
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| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 8 of 27 |
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CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 2Q20 copper production was 80,621 MT; 15,786 MT of which is attributable to Buenaventura, a decrease as compared to 108,160 MT produced in 2Q19; 21,178 MT of which was attributable to Buenaventura.
6M20 copper production was 172,832 MT; 33,840 MT of which was attributable to Buenaventura. 6M19 copper production was 226,596 MT; 44,367 MT of which was attributable to Buenaventura.
Cerro Verde reported a 2Q20 net income of US$ 68.7 million compared to net income of US$ 53.3 million in 2Q19. This is primarily due to a US$163.5 million decrease in cost of sales as a result of lower supplies, depreciation, labor and energy costs related to the State of Emergency restrictions. This was mainly offset by a US$115 million decrease in volume sold.
Capital expenditures at Cerro Verde were US$ 36.8 million in 2Q20.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), 2Q20 attributable contribution to net income was negative US$ 1.8 million, as compared to positive US$ 1.1 million in 2Q19.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 9 of 27 |
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***
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
| 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 concerning<br> 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<br> 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<br> 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<br> result of a variety of factors discussed elsewhere in this Press Release. |
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| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 10 of 27 |
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**Tables to follow**
APPENDIX 1
| Equity Participation in<br><br> <br>Subsidiaries and Associates (as of June 30, 2020) | ||
|---|---|---|
| BVN | Operating | |
| Equity % | Mines / Business | |
| El Molle Verde S.A.C* | 100.00 | Trapiche Project |
| Minera La Zanja S.A* | 53.06 | La Zanja |
| Sociedad Minera El Brocal S.A.A* | 61.43 | Colquijirca and Marcapunta |
| Compañía Minera Coimolache S.A. ** | 40.10 | Tantahuatay |
| Minera Yanacocha S.R.L. ** | 43.65 | Yanacocha |
| Sociedad Minera Cerro Verde S.A.A ** | 19.58 | Cerro Verde |
| Processadora Industrial Rio Seco S.A* | 100.00 | Rio Seco chemical plant |
| Consorcio Energético de Huancavelica S.A* | 100.00 | Energy – Huanza Hydroelectrical plant |
(*) Consolidated
(**) Equity Accounting
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 11 of 27 |
|---|
APPENDIX 2
| Gold Production | 14 | 17 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mining Unit | Operating Results | Unit | 2Q20 | 2Q19 | △% | 6M20 | 6M19 | △ % | ||||
| Underground | ||||||||||||
| Tambomayo | Ore Milled | DMT | 131,034 | 158,937 | -18 | % | 246,816 | 304,094 | -19 | % | ||
| Ore Grade | Gr/MT | 5.21 | 5.73 | -9 | % | 4.97 | 5.93 | -16 | % | |||
| Recovery Rate | % | 78.02 | 84.06 | -7 | % | 80.34 | 83.95 | -4 | % | |||
| Ounces Produced* | Oz | 17,121 | 24,610 | -30 | % | 31,670 | 48,643 | -35 | % | |||
| Orcopampa | Ore Milled | DMT | 15,076 | 37,305 | -60 | % | 35,692 | 62,392 | -43 | % | ||
| Ore Grade | Gr/MT | 16.12 | 9.25 | 74 | % | 13.96 | 8.61 | 62 | % | |||
| Recovery Rate | % | 97.41 | 96.68 | 1 | % | 97.50 | 96.52 | 1 | % | |||
| Ounces Produced* | Oz | 7,612 | 10,764 | -29 | % | 15,773 | 16,713 | -6 | % | |||
| Open Pit | ||||||||||||
| La Zanja | Ounces Produced | Oz | 3,028 | 5,443 | -44 | % | 6,325 | 19,060 | -67 | % | ||
| Tantahuatay | Ounces Produced | Oz | 13,551 | 34,766 | -61 | % | 36,044 | 61,039 | -41 | % | ||
| (*) Includes ounces from retreatment of tailing dams | ||||||||||||
| Silver Production | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mining Unit | Operating Results | Unit | 2Q20 | 2Q19 | △% | 6M20 | 6M19 | △ % | ||||
| Underground | ||||||||||||
| Tambomayo | Ore Milled | DMT | 131,034 | 158,937 | -18 | % | 246,816 | 304,094 | -19 | % | ||
| Ore Grade | Oz/MT | 3.99 | 3.93 | 2 | % | 4.08 | 3.98 | 2 | % | |||
| Recovery Rate | % | 78.39 | 89.39 | -12 | % | 79.06 | 88.69 | -11 | % | |||
| Ounces Produced | Oz | 410,010 | 558,034 | -27 | % | 795,541 | 1,073,277 | -26 | % | |||
| Uchucchacua | Ore Milled | DMT | 85,429 | 349,686 | -76 | % | 317,773 | 599,033 | -47 | % | ||
| Ore Grade | Oz/MT | 12.09 | 9.78 | 24 | % | 10.11 | 9.57 | 6 | % | |||
| Recovery Rate | % | 94.77 | 90.18 | 5 | % | 91.37 | 88.58 | 3 | % | |||
| Ounces Produced | Oz | 979,008 | 3,083,290 | -68 | % | 2,935,471 | 5,079,729 | -42 | % | |||
| Julcani | Ore Milled | DMT | 6,193 | 31,414 | -80 | % | 32,924 | 61,042 | -46 | % | ||
| Ore Grade | Oz/MT | 22.78 | 21.39 | 6 | % | 21.57 | 22.15 | -3 | % | |||
| Recovery Rate | % | 96.34 | 95.57 | 1 | % | 96.65 | 96.22 | 0 | % | |||
| Ounces Produced | Oz | 136,177 | 642,182 | -79 | % | 686,729 | 1,300,897 | -47 | % | |||
| Marcapunta | Ore Milled | DMT | 154,849 | 668,296 | -77 | % | 662,009 | 1,349,255 | -51 | % | ||
| Ore Grade | Oz/MT | 0.72 | 0.77 | -7 | % | 0.71 | 0.74 | -4 | % | |||
| Recovery Rate | % | 60.41 | 70.79 | -15 | % | 65.27 | 62.08 | 5 | % | |||
| Ounces Produced | Oz | 67,307 | 365,559 | -82 | % | 305,673 | 616,257 | -50 | % | |||
| Open Pit | ||||||||||||
| Tajo Norte | Ore Milled | DMT | 239,898 | 1,073,607 | -78 | % | 1,090,017 | 1,954,364 | -44 | % | ||
| Ore Grade | Oz/MT | 1.00 | 1.56 | -36 | % | 0.85 | 1.27 | -33 | % | |||
| Recovery Rate | % | 75.88 | 64.59 | 17 | % | 67.02 | 64.37 | 4 | % | |||
| Ounces Produced | Oz | 181,386 | 1,083,720 | -83 | % | 621,087 | 1,597,410 | -61 | % |
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 12 of 27 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Zinc Production | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mining Unit | Operating Results | Unit | 2Q20 | 2Q19 | △% | 6M20 | 6M19 | △ % | ||||
| Underground | ||||||||||||
| Tambomayo | Ore Milled | DMT | 131,034 | 158,937 | -18 | % | 246,816 | 304,094 | -19 | % | ||
| Ore Grade | % | 1.69 | 1.95 | -13 | % | 1.64 | 2.06 | -21 | % | |||
| Recovery Rate | % | 37.47 | 75.29 | -50 | % | 51.87 | 77.11 | -33 | % | |||
| MT Produced | MT | 831 | 2,333 | -64 | % | 2,098 | 4,838 | -57 | % | |||
| Uchucchacua | Ore Milled | DMT | 85,429 | 349,686 | -76 | % | 317,773 | 599,033 | -47 | % | ||
| Ore Grade | % | 1.21 | 2.55 | -52 | % | 1.52 | 2.52 | -40 | % | |||
| Recovery Rate | % | 44.60 | 68.27 | -35 | % | 58.49 | 66.17 | -12 | % | |||
| MT Produced | MT | 462 | 6,093 | -92 | % | 2,822 | 9,998 | -72 | % | |||
| Open Pit | ||||||||||||
| Tajo Norte | Ore Milled | DMT | 239,898 | 1,073,607 | -78 | % | 1,090,017 | 1,954,364 | -44 | % | ||
| Ore Grade | % | 3.35 | 2.06 | 63 | % | 3.41 | 2.13 | 60 | % | |||
| Recovery Rate | % | 54.63 | 56.44 | -3 | % | 52.32 | 55.21 | -5 | % | |||
| MT Produced | MT | 4,385 | 12,476 | -65 | % | 19,442 | 22,943 | -15 | % | |||
| Copper Production | ||||||||||||
| Mining Unit | Operating Results | Unit | 2Q20 | 2Q19 | △% | 6M20 | 6M19 | △ % | ||||
| Underground | ||||||||||||
| Marcapunta | Ore Milled | DMT | 154,849 | 668,296 | -77 | % | 662,009 | 1,349,255 | -51 | % | ||
| Ore Grade | % | 2.11 | 1.68 | 26 | % | 1.97 | 1.57 | 26 | % | |||
| Recovery Rate | % | 93.09 | 86.26 | 8 | % | 93.22 | 87.51 | 7 | % | |||
| MT Produced | MT | 3,045 | 9,671 | -69 | % | 12,167 | 18,527 | -34 | % |
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 13 of 27 |
|---|
APPENDIX 3: Adjusted EBITDA Reconciliation \(in thousand US$\)
| 2Q20 | 2Q19 | 6M20 | 6M19 | |
|---|---|---|---|---|
| Net Income | -30,752 | 5,667 | -117,851 | 29,678 |
| Add / Substract: | 57,248 | 41,404 | 137,515 | 45,142 |
| Depreciation and Amortization in cost of sales | 28,537 | 58,774 | 65,178 | 108,518 |
| Share in associated companies by the equity method, net | -3,904 | -22,705 | 18,146 | -72,217 |
| Interest expense | 7,346 | 10,156 | 15,720 | 21,685 |
| Impairment of inventories | 3,771 | -3,052 | 14,457 | -2,123 |
| Provision of bonuses and compensations | 3,686 | 5,112 | 8,028 | 9,782 |
| Depreciation and Amortization in other, net | 8,511 | 528 | 8,511 | 528 |
| Loss (gain) on currency exchange difference | 2,019 | 238 | 3,115 | 217 |
| Profit from discontinued operations | 1,335 | 2,124 | 2,812 | 4,514 |
| Provision (credit) for income tax, net | 6,624 | -9,001 | 1,835 | -22,252 |
| Depreciation and amortization in administration expenses | 958 | 823 | 1,875 | 1,779 |
| Workers' participation provision | -9 | - | 18 | |
| Interest income | -548 | -1,825 | -1,312 | -4,045 |
| Provision (reversal) for contingencies | -1,087 | 241 | -850 | -1,262 |
| EBITDA Buenaventura Direct Operations | 26,496 | 47,071 | 19,664 | 74,820 |
| EBITDA Yanacocha (43.65%) | 13,753 | 32,948 | 39,653 | 69,730 |
| EBITDA Cerro Verde (19.58%) | 41,493 | 48,497 | 45,533 | 145,230 |
| EBITDA Coimolache (40.095%) | 4,357 | 8,789 | 11,838 | 14,475 |
| EBITDA Buenaventura + All Associates | 86,099 | 137,305 | 116,688 | 304,255 |
*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> First Quarter 2020 Results<br><br> Page 14 of 27 |
|---|
APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION
Reconciliation of Costs Applicable to Sales and Cost Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding depreciation and amortization, plus selling expenses. Cost applicable to sales per unit sold for each mine consists of cost applicable to sales for a particular metal produced at a given mine divided by the volume of such metal produced at such mine in the specified period. We note that cost applicable to sales is not directly comparable to the cash operating cost figures disclosed in previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit of mineral sold are not measures of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. We consider Cost applicable to sales and Cost applicable to sales per unit of mineral sold to be key measures in managing and evaluating our operating performance. These measures are widely reported in the precious metals industry as a benchmark for performance, but do not have standardized meanings. You should not consider Cost applicable to sales or Cost applicable to sales per unit of mineral sold as alternatives to cost of sales determined in accordance with IFRS, as indicators of our operating performance. Cost applicable to sales and Cost applicable to sales per unit of mineral sold are calculated without adjusting for by-product revenue amounts.
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> First Quarter 2020 Results<br><br> Page 15 of 27 |
|---|
Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization, to consolidated Cost applicable to sales:
| For the 3 months ended June 30 | For the 6 months ended June 30 | |||||
|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2919 | |||
| (in thousands of US) | ||||||
| Consolidated Cost of sales excluding depreciation and amortization | 129,528 | 146,980 | 243,824 | |||
| Add:<br><br> <br>Consolidated Exploration in units in operation | 13,246 | 8,465 | 24,710 | |||
| Consolidated Commercial deductions | 55,984 | 70,001 | 101,531 | |||
| Consolidated Selling expenses | 6,373 | 6,778 | 10,291 | |||
| Consolidated Cost applicable to sales | 205,131 | 232,224 | 380,355 |
All values are in US Dollars.
salesSet 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 June 30 | For the 6 months ended June 30 | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||||
| Cost of sales by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 18 | 0 | 18 | ||||
| Julcani, Silver | 5,746 | 7,644 | 12,284 | ||||
| Julcani, Lead | 211 | 129 | 492 | ||||
| Julcani, Copper | 15 | 19 | 32 | ||||
| Orcopampa, Gold | 12,538 | 9,821 | 20,963 | ||||
| Orcopampa, Silver | 57 | 21 | 109 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 0 | -12 | ||||
| Uchucchacua, Silver | 20,793 | 29,658 | 35,187 | ||||
| Uchucchacua, Lead | 4,831 | 2,551 | 7,351 | ||||
| Uchucchacua, Zinc | 6,789 | 2,510 | 11,594 | ||||
| Tambomayo, Gold | 11,544 | 17,234 | 19,556 | ||||
| Tambomayo, Silver | 2,952 | 4,532 | 5,225 | ||||
| Tambomayo, Zinc | 1,022 | 1,429 | 4,097 | ||||
| Tambomayo, Lead | 1,910 | 1,329 | 2,190 | ||||
| La Zanja, Gold | 7,974 | 11,781 | 19,979 | ||||
| La Zanja, Silver | 188 | 0 | 670 | ||||
| El Brocal, Gold | 1,411 | 2,757 | 2,766 | ||||
| El Brocal, Silver | 8,052 | 5,524 | 12,844 | ||||
| El Brocal, Lead | 6,362 | 5,369 | 11,653 | ||||
| El Brocal, Zinc | 12,690 | 12,628 | 25,364 | ||||
| El Brocal, Copper | 24,252 | 29,104 | 48,924 | ||||
| Other Small Units, Gold | |||||||
| Other Small Units, Silver | |||||||
| Other Small Units, Lead | |||||||
| Other Small Units, Zinc | |||||||
| Non Mining Units | 171 | 2,940 | 2,538 | ||||
| Consolidated Cost of sales, excluding depreciation and amortization | 129,528 | 146,980 | 243,824 | ||||
| Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units: |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 16 of 27 | |||||||
|---|---|---|---|---|---|---|---|
| For the 3 months ended June 30 | For the 6 months ended June 30 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | ||||
| Exploration expenses in units in operation by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 4 | 0 | 4 | ||||
| Julcani, Silver | 1,332 | 1,367 | 2,849 | ||||
| Julcani, Lead | 49 | 23 | 114 | ||||
| Julcani, Copper | 4 | 3 | 7 | ||||
| Orcopampa, Gold | 3,575 | 1,510 | 6,097 | ||||
| Orcopampa, Silver | 16 | 3 | 32 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 0 | -1 | ||||
| Uchucchacua, Silver | 1,968 | 2,266 | 3,395 | ||||
| Uchucchacua, Lead | 457 | 195 | 709 | ||||
| Uchucchacua, Zinc | 642 | 192 | 1,119 | ||||
| Tambomayo, Gold | 2,139 | 933 | 4,075 | ||||
| Tambomayo, Silver | 547 | 245 | 1,089 | ||||
| Tambomayo, Lead | 189 | 72 | 456 | ||||
| Tambomayo, Zinc | 354 | 77 | 854 | ||||
| La Zanja, Gold | 0 | 1 | 1 | ||||
| La Zanja, Silver | 0 | 0 | 0 | ||||
| El Brocal, Gold | 53 | 79 | 106 | ||||
| El Brocal, Silver | 300 | 157 | 494 | ||||
| El Brocal, Lead | 237 | 153 | 449 | ||||
| El Brocal, Zinc | 474 | 360 | 976 | ||||
| El Brocal, Copper | 905 | 829 | 1,883 | ||||
| Non Mining Units | 0 | 0 | 0 | ||||
| Consolidated Exploration expenses in units in operation | 13,246 | 8,465 | 24,710 | ||||
| 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.
| For the 3 months ended June 30 | For the 6 months ended June 30 | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | ||||
| Commercial Deductions in units in operation by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 2 | -16 | 2 | ||||
| Julcani, Silver | 724 | 1,043 | 1,495 | ||||
| Julcani, Lead | 26 | 17 | 60 | ||||
| Julcani, Copper | 2 | 3 | 5 | ||||
| Mallay, Gold | 0 | 0 | 0 | ||||
| Mallay, Silver | 0 | 0 | 0 | ||||
| Mallay, Lead | 0 | 0 | 0 | ||||
| Mallay, Zinc | 0 | 0 | 0 | ||||
| Orcopampa, Gold | 59 | 88 | 30 | ||||
| Orcopampa, Silver | 1 | 0 | -1 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 1 | -3 | ||||
| Uchucchacua, Silver | 6,657 | 8,753 | 11,446 | ||||
| Uchucchacua, Lead | 843 | 712 | 1,234 | ||||
| Uchucchacua, Zinc | 4,921 | 1,363 | 6,241 | ||||
| Tambomayo, Gold | 919 | 2,234 | 2,510 | ||||
| Tambomayo, Silver | 863 | 1,496 | 1,615 | ||||
| Tambomayo, Lead | 327 | 498 | 726 | ||||
| Tambomayo, Zinc | 1,719 | 1,439 | 3,277 | ||||
| La Zanja, Gold | 21 | 300 | 67 | ||||
| La Zanja, Silver | 1 | 15 | 2 | ||||
| El Brocal, Gold | 1,386 | 2,595 | 2,585 | ||||
| El Brocal, Silver | 4,106 | 4,263 | 6,486 | ||||
| El Brocal, Lead | 1,791 | 3,116 | 2,968 | ||||
| El Brocal, Zinc | 7,565 | 14,526 | 14,550 | ||||
| El Brocal, Copper | 24,050 | 27,555 | 46,234 | ||||
| Non Mining Units | 0 | 0 | 0 | ||||
| Consolidated Commercial deductions in units in operation | 55,984 | 70,001 | 101,531 | ||||
| Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated | |||||||
| Selling expenses: |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 17 of 27 | |||||||
|---|---|---|---|---|---|---|---|
| For the 3 months ended June 30 | For the 6 months ended June 30 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | ||||
| Selling expenses by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 0 | 0 | 0 | ||||
| Julcani, Silver | 90 | 147 | 169 | ||||
| Julcani, Lead | 3 | 2 | 7 | ||||
| Julcani, Copper | 0 | 0 | 0 | ||||
| Orcopampa, Gold | 72 | 122 | 87 | ||||
| Orcopampa, Silver | 0 | 0 | 0 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 0 | -1 | ||||
| Uchucchacua, Silver | 905 | 1,259 | 1,430 | ||||
| Uchucchacua, Lead | 210 | 108 | 299 | ||||
| Uchucchacua, Zinc | 295 | 107 | 471 | ||||
| Tambomayo, Gold | 714 | 1,026 | 908 | ||||
| Tambomayo, Silver | 183 | 270 | 243 | ||||
| Tambomayo, Lead | 63 | 79 | 102 | ||||
| Tambomayo, Zinc | 118 | 85 | 190 | ||||
| La Zanja, Gold | 124 | 50 | 178 | ||||
| La Zanja, Silver | 3 | 0 | 6 | ||||
| El Brocal, Gold | 79 | 145 | 133 | ||||
| El Brocal, Silver | 450 | 291 | 616 | ||||
| El Brocal, Lead | 355 | 283 | 558 | ||||
| El Brocal, Zinc | 709 | 666 | 1,216 | ||||
| El Brocal, Copper | 1,355 | 1,536 | 2,345 | ||||
| Non Mining Units | 644 | 600 | 1,334 | ||||
| Consolidated Selling expenses | 6,373 | 6,778 | 10,291 |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 18 of 27 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| JULCANI | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2Q 2020 | 2Q 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) | - | 1,454 | -0 | - | - | 1,454 | 18 | 5,746 | 211 | - | 15 | 5,990 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 324 | -0 | - | - | 324 | 4 | 1,332 | 49 | - | 4 | 1,389 |
| Commercial Deductions (US$000) | 0 | 202 | 2 | - | -1 | 204 | 2 | 724 | 26 | - | 2 | 755 |
| Selling Expenses (US$000) | - | 54.01 | -0.01 | - | - | 54 | 0 | 90 | 3 | - | 0 | 94 |
| Cost Applicable to Sales (US$000) | 0 | 2,035 | 2 | - | -1 | 2,036 | 24 | 7,893 | 290 | - | 21 | 8,228 |
| Divide: | ||||||||||||
| Volume Sold | - | 119,531 | 25 | - | - | Not Applicable | 17 | 585,840 | 178 | - | 4 | Not Applicable |
| CAS | - | 17.02 | 73 | - | - | Not Applicable | 1,435 | 13.47 | 1,626 | - | 5,932 | Not Applicable |
| ORCOPAMPA | ||||||||||||
| 2Q 2020 | 2Q 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) | 618 | 2 | - | - | - | 620 | 12,538 | 57 | - | - | - | 12,595 |
| Add: | - | |||||||||||
| Exploration Expenses (US$000) | 480 | 1 | - | - | - | 481 | 3,575 | 16 | - | - | - | 3,591 |
| Commercial Deductions (US$000) | 36 | 0 | - | - | - | 36 | 59 | 1 | - | - | - | 60 |
| Selling Expenses (US$000) | 62 | 0 | - | - | - | 62 | 72 | 0 | - | - | - | 72 |
| Cost Applicable to Sales (US$000) | 1,196 | 4 | - | - | - | 1,199 | 16,244 | 74 | - | - | - | 16,318 |
| Divide: | ||||||||||||
| Volume Sold | 3,675 | 851 | - | - | - | Not Applicable | 10,391 | 4,289 | - | - | - | Not Applicable |
| CAS | 325 | 4.51 | - | - | - | Not Applicable | 1,563 | 17.33 | - | - | - | Not Applicable |
| UCHUCCHACUA | ||||||||||||
| 2Q 2020 | 2Q 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) | - | 8,050 | 305 | 199 | - | 8,554 | - | 20,793 | 4,831 | 6,789 | - | 32,413 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 517 | 20 | 13 | - | 549 | - | 1,968 | 457 | 642 | - | 3,067 |
| Commercial Deductions (US$000) | - | 1,411 | 66 | 52 | - | 1,529 | -0 | 6,657 | 843 | 4,921 | - | 12,420 |
| Selling Expenses (US$000) | - | 483 | 18 | 12 | - | 513 | - | 905 | 210 | 295 | - | 1,410 |
| Cost Applicable to Sales (US$000) | - | 10,460 | 409 | 275 | - | 11,145 | -0 | 30,322 | 6,341 | 12,648 | - | 49,310 |
| Divide: | ||||||||||||
| Volume Sold | - | 644,014 | 403 | 366 | - | Not Applicable | - | 2,923,280 | 5,349 | 4,860 | - | Not Applicable |
| CAS | - | 16.24 | 1,016 | 753 | - | No Applicable | - | 10.37 | 1,185 | 2,603 | - | No Applicable |
| TAMBOMAYO | ||||||||||||
| 2Q 2020 | 2Q 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 | 2,561 | 820 | 373 | - | 12,960 | 11,544 | 2,952 | 1,022 | 1,910 | - | 17,428 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 595 | 165 | 53 | 24 | - | 837 | 2,139 | 547 | 189 | 354 | - | 3,230 |
| Commercial Deductions (US$000) | 1,667 | 1,037 | 324 | 672 | - | 3,701 | 919 | 863 | 327 | 1,719 | - | 3,829 |
| Selling Expenses (US$000) | 672 | 187 | 60 | 27 | - | 946 | 714 | 183 | 63 | 118 | - | 1,078 |
| Cost Applicable to Sales (US$000) | 12,140 | 3,950 | 1,257 | 1,097 | - | 18,444 | 15,316 | 4,546 | 1,602 | 4,102 | - | 25,565 |
| Divide: | ||||||||||||
| Volume Sold | 16,499 | 487,028 | 1,547 | 810 | - | Not Applicable | 27,468 | 589,667 | 1,794 | 2,000 | - | Not Applicable |
| CAS | 736 | 8.11 | 813 | 1,354 | - | No Applicable | 558 | 7.71 | 893 | 2,051 | - | No Applicable |
| JULCANI | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 6M 2020 | 6M 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) | - | 7,644 | 129 | - | 19 | 7,791 | 18 | 12,284 | 492 | - | 32 | 12,827 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 1,367 | 23 | - | 3 | 1,393 | 4 | 2,849 | 114 | - | 7 | 2,975 |
| Commercial Deductions (US$000) | -16 | 1,043 | 17 | - | 3 | 1,048 | 2 | 1,495 | 60 | - | 5 | 1,562 |
| Selling Expenses (US$000) | - | 147 | 2 | - | 0 | 150 | 0 | 169 | 7 | - | 0 | 176 |
| Cost Applicable to Sales (US$000) | -16 | 10,200 | 171 | - | 26 | 10,382 | 25 | 16,797 | 673 | - | 45 | 17,540 |
| Divide: | ||||||||||||
| Volume Sold | - | 633,645 | 121 | - | 6 | Not Applicable | 17 | 1,219,407 | 389 | - | 8 | No Aplicable |
| CAS | - | 16.10 | 1,421 | - | 4,113 | No Applicable | 1,466 | 13.77 | 1,727 | - | 5,569 | No Applicable |
| ORCOPAMPA | ||||||||||||
| 6M 2020 | 6M 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) | 9,821 | 21 | - | - | - | 9,842 | 20,963 | 109 | - | - | - | 21,072 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1,510 | 3 | - | - | - | 1,513 | 6,097 | 32 | - | - | - | 6,129 |
| Commercial Deductions (US$000) | 88 | 0 | - | - | - | 88 | 30 | -1 | - | - | - | 29 |
| Selling Expenses (US$000) | 122 | 0 | - | - | - | 122 | 87 | 0 | - | - | - | 87 |
| Cost Applicable to Sales (US$000) | 11,540 | 25 | - | - | - | 11,565 | 27,177 | 141 | - | - | - | 27,317 |
| Divide: | ||||||||||||
| Volume Sold | 12,690 | 2,584 | - | - | - | Not Applicable | 14,818 | 6,656 | - | - | - | Not Applicable |
| CAS | 909 | 9.70 | - | - | - | No Applicable | 1,834 | 21.13 | - | - | - | No Applicable |
| UCHUCCHACUA | ||||||||||||
| 6M 2020 | 6M 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) | - | 29,658 | 2,551 | 2,510 | - | 34,719 | -12 | 35,187 | 7,351 | 11,594 | - | 54,119 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 2,266 | 195 | 192 | - | 2,653 | -1 | 3,395 | 709 | 1,119 | - | 5,222 |
| Commercial Deductions (US$000) | 1 | 8,753 | 712 | 1,363 | - | 10,829 | -3 | 11,446 | 1,234 | 6,241 | - | 18,919 |
| Selling Expenses (US$000) | - | 1,259 | 108 | 107 | - | 1,474 | -1 | 1,430 | 299 | 471 | - | 2,200 |
| Cost Applicable to Sales (US$000) | 1 | 41,936 | 3,566 | 4,172 | - | 49,675 | -17 | 51,458 | 9,593 | 19,425 | - | 80,460 |
| Divide: | ||||||||||||
| Volume Sold | - | 2,524,344 | 2,375 | 2,240 | - | Not Applicable | 0 | 4,757,949 | 7,805 | 8,261 | - | Not Applicable |
| CAS | - | 16.61 | 1,501 | 1,862 | - | No Applicable | - | 10.82 | 1,229 | 2,351 | - | No Applicable |
| TAMBOMAYO | ||||||||||||
| 6M 2020 | 6M 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) | 17,234 | 4,532 | 1,329 | 1,429 | - | 24,525 | 19,556 | 5,225 | 2,190 | 4,097 | - | 31,069 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 933 | 245 | 72 | 77 | - | 1,327 | 4,075 | 1,089 | 456 | 854 | - | 6,474 |
| Commercial Deductions (US$000) | 2,234 | 1,496 | 498 | 1,439 | - | 5,668 | 2,510 | 1,615 | 726 | 3,277 | - | 8,128 |
| Selling Expenses (US$000) | 1,026 | 270 | 79 | 85 | - | 1,460 | 908 | 243 | 102 | 190 | - | 1,443 |
| Cost Applicable to Sales (US$000) | 21,427 | 6,544 | 1,978 | 3,031 | - | 32,980 | 27,050 | 8,172 | 3,475 | 8,418 | - | 47,114 |
| Divide: | ||||||||||||
| Volume Sold | 21,785 | 597,690 | 1,828 | 1,802 | - | Not Applicable | 43,828 | 988,919 | 3,345 | 3,979 | - | Not Applicable |
| CAS | 984 | 10.95 | 1,082 | 1,682 | - | No Applicable | 617 | 8.26 | 1,039 | 2,115 | - | Not Applicable |
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 19 of 27 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LA ZANJA | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2Q 2020 | 2Q 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) | 3,924 | 252 | - | - | - | 4,176 | 7,974 | 188 | - | - | - | 8,162 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | - | - | - | - | - | - | - | - | - | - | - |
| Commercial Deductions (US$000) | 292 | 14 | - | - | - | 306 | 21 | 1 | - | - | - | 22 |
| Selling Expenses (US$000) | 30 | 2 | - | - | - | 32 | 124 | 3 | - | - | - | 127 |
| Cost Applicable to Sales (US$000) | 4,246 | 268 | - | - | - | 4,514 | 8,120 | 191 | - | - | - | 8,311 |
| Divide: | ||||||||||||
| Volume Sold | 4,032 | 21,857 | - | - | - | Not Applicable | 5,521 | 11,548 | - | - | - | Not Applicable |
| CAS | 1,053 | 12.26 | - | - | - | Not Applicable | 1,471 | 16.58 | - | - | - | Not Applicable |
| BROCAL | ||||||||||||
| 2Q 2020 | 2Q 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) | 635 | 1,620 | 1,301 | 1,870 | 6,797 | 12,223 | 1,411 | 8,052 | 6,362 | 12,690 | 24,252 | 52,768 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 14 | 35 | 28 | 41 | 147 | 265 | 53 | 300 | 237 | 474 | 905 | 1,969 |
| Commercial Deductions (US$000) | 733 | 1,436 | 765 | 3,349 | 7,900 | 14,182 | 1,386 | 4,106 | 1,791 | 7,565 | 24,050 | 38,898 |
| Selling Expenses (US$000) | 24 | 60 | 48 | 69 | 252 | 453 | 79 | 450 | 355 | 709 | 1,355 | 2,948 |
| Cost Applicable to Sales (US$000) | 1,405 | 3,151 | 2,142 | 5,329 | 15,096 | 27,123 | 2,928 | 12,909 | 8,747 | 21,437 | 50,562 | 96,583 |
| Divide: | ||||||||||||
| Volume Sold | 633 | 187,339 | 1,888 | 3,575 | 2,758 | Not Applicable | 2,457 | 1,228,153 | 7,850 | 10,211 | 9,186 | Not Applicable |
| CAS | 2,220 | 16.82 | 1,135 | 1,491 | 5,473 | Not Applicable | 1,192 | 10.51 | 1,114 | 2,099 | 5,504 | Not Applicable |
| Prorrateo | 5% | 13% | 11% | 15% | 56% | 3% | 15% | 12% | 24% | 46% | ||
| NON MINING COMPANIES | ||||||||||||
| 2Q 2020 | 2Q 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) | - | - | - | - | - | 1,185 | - | - | - | - | - | 171 |
| Add: | ||||||||||||
| Selling Expenses (US$000) | - | - | - | - | - | 170 | - | - | - | - | - | 644 |
| Total (US$000) | - | - | - | - | - | 1,355 | - | - | - | - | - | 815 |
| BUENAVENTURA CONSOLIDATED | ||||||||||||
| 2Q 2020 | 2Q 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) | 14,383 | 13,939 | 2,426 | 2,442 | 6,797 | 41,172 | 33,485 | 37,789 | 12,426 | 21,389 | 24,267 | 129,528 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1,088 | 1,043 | 101 | 77 | 147 | 2,456 | 5,771 | 4,164 | 933 | 1,470 | 908 | 13,246 |
| Commercial Deductions (US$000) | 2,729 | 4,100 | 1,157 | 4,073 | 7,899 | 19,958 | 2,387 | 12,352 | 2,987 | 14,205 | 24,053 | 55,984 |
| Selling Expenses (US$000) | 787 | 786 | 126 | 108 | 252 | 2,230 | 989 | 1,630 | 632 | 1,122 | 1,355 | 6,373 |
| Cost Applicable to Sales (US$000) | 18,987 | 19,868 | 3,810 | 6,701 | 15,095 | 65,816 | 42,632 | 55,935 | 16,979 | 38,186 | 50,584 | 205,131 |
| Divide: | ||||||||||||
| Volume Sold | 24,839 | 1,460,620 | 3,862 | 4,751 | 2,758 | Not Applicable | 45,854 | 5,342,779 | 15,171 | 17,070 | 9,189 | Not Applicable |
| CAS | 764 | 13.60 | 987 | 1,411 | 5,473 | Not Applicable | 930 | 10.47 | 1,119 | 2,237 | 5,505 | Not Applicable |
| COIMOLACHE | ||||||||||||
| 2Q 2020 | 2Q 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) | 14,016 | 756 | - | - | - | 14,772 | 23,135 | 1,020 | - | - | - | 24,155 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 224 | 12 | - | - | - | 236 | 1,251 | 55 | - | - | - | 1,306 |
| Commercial Deductions (US$000) | 161 | 24 | - | - | - | 185 | 89 | 3 | - | - | - | 92 |
| Selling Expenses (US$000) | 394 | 21 | - | - | - | 415 | 195 | 9 | - | - | - | 204 |
| Cost Applicable to Sales (US$000) | 14,794 | 813 | - | - | - | 15,608 | 24,670 | 1,087 | - | - | - | 25,757 |
| Divide: | ||||||||||||
| Volume Sold | 14,549 | 92,860 | - | - | - | Not Applicable | 34,455 | 134,856 | - | - | - | Not Applicable |
| CAS | 1,017 | 8.76 | - | - | - | Not Applicable | 716 | 8.06 | - | - | - | Not Applicable |
| LA ZANJA | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 6M 2020 | 6M 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) | 11,781 | 0 | - | - | - | 11,781 | 19,979 | 670 | - | - | - | 20,649 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1 | 0 | - | - | - | 1 | 1 | 0 | - | - | - | 1 |
| Commercial Deductions (US$000) | 300 | 15 | - | - | - | 315 | 67 | 2 | - | - | - | 69 |
| Selling Expenses (US$000) | 50 | 0 | - | - | - | 50 | 178 | 6 | - | - | - | 184 |
| Cost Applicable to Sales (US$000) | 12,132 | 15 | - | - | - | 12,147 | 20,225 | 677 | - | - | - | 20,903 |
| Divide: | ||||||||||||
| Volume Sold | 7,327 | 58,280 | - | - | - | Not Applicable | 18,142 | 51,234 | - | - | - | Not Applicable |
| CAS | 1,656 | 0.25 | - | - | - | No Applicable | 1,115 | 13.22 | - | - | - | Not Applicable |
| BROCAL | ||||||||||||
| 6M 2020 | 6M 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) | 2,757 | 5,524 | 5,369 | 12,628 | 29,104 | 55,382 | 2,766 | 12,844 | 11,653 | 25,364 | 48,924 | 101,550 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 79 | 157 | 153 | 360 | 829 | 1,578 | 106 | 494 | 449 | 976 | 1,883.25 | 3,909 |
| Commercial Deductions (US$000) | 2,595 | 4,263 | 3,116 | 14,526 | 27,555 | 52,054 | 2,585 | 6,486 | 2,968 | 14,550 | 46,234 | 72,824 |
| Selling Expenses (US$000) | 145 | 291 | 283 | 666 | 1,536 | 2,922 | 133 | 616 | 558 | 1,216 | 2,345 | 4,867 |
| Cost Applicable to Sales (US$000) | 5,576 | 10,235 | 8,920 | 28,180 | 59,024 | 111,936 | 5,590 | 20,440 | 15,628 | 42,106 | 99,386 | 183,150 |
| Divide: | ||||||||||||
| Volume Sold | 3,272 | 653,704 | 7,033 | 16,013 | 11,217 | Not Applicable | 4,635 | 1,820,292 | 13,009 | 19,598 | 17,498 | Not Applicable |
| CAS | 1,704 | 15.66 | 1,268 | 1,760 | 5,262 | No Applicable | 1,206 | 11.23 | 1,201 | 2,149 | 5,680 | Not Applicable |
| Prorrateo | 5% | 10% | 10% | 23% | 53% | 3% | 13% | 11% | 25% | 48% | ||
| NON MINING COMPANIES | ||||||||||||
| 6M 2020 | 6M 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) | - | - | - | - | - | 2,940 | - | - | - | - | - | 2,538 |
| Add: | ||||||||||||
| Selling Expenses (US$000) | - | - | - | - | - | 600 | - | - | - | - | - | 1,334 |
| Total (US$000) | - | - | - | - | - | 3,540 | - | - | - | - | - | 3,872 |
| BUENAVENTURA CONSOLIDATED | ||||||||||||
| 6M 2020 | 6M 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) | 41,593 | 47,378 | 9,377 | 16,568 | 29,123 | 146,980 | 63,270 | 66,319 | 21,686 | 41,054 | 48,956 | 243,824 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 2,522 | 4,039 | 443 | 629 | 833 | 8,465 | 10,283 | 7,859 | 1,728 | 2,949 | 1,891 | 24,710 |
| Commercial Deductions (US$000) | 5,202 | 15,570 | 4,343 | 17,328 | 27,558 | 70,001 | 5,191 | 21,044 | 4,988 | 24,068 | 46,239 | 101,531 |
| Selling Expenses (US$000) | 1,343 | 1,968 | 473 | 858 | 1,536 | 6,778 | 1,305 | 2,464 | 966 | 1,877 | 2,345 | 10,291 |
| Cost Applicable to Sales (US$000) | 50,660 | 68,955 | 14,636 | 35,383 | 59,050 | 232,224 | 80,049 | 97,686 | 29,369 | 69,948 | 99,431 | 380,355 |
| Divide: | ||||||||||||
| Volume Sold | 45,075 | 4,470,246 | 11,357 | 20,055 | 11,223 | Not Applicable | 81,441 | 8,844,458 | 24,549 | 31,839 | 17,507 | Not Applicable |
| CAS | 1,124 | 15.43 | 1,289 | 1,764 | 5,262 | Not Applicable | 983 | 11.04 | 1,196 | 2,197 | 5,680 | Not Applicable |
| 14% | 40% | 8% | -20% | -7% | ||||||||
| COIMOLACHE | ||||||||||||
| 6M 2020 | 6M 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) | 34,645 | 2,568 | - | - | - | 37,213 | 40,708 | 1,647 | - | - | - | 42,355 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 814 | 60 | - | - | - | 874 | 2,513 | 102 | - | - | - | 2,615 |
| Commercial Deductions (US$000) | 339 | 37 | - | - | - | 376 | 172 | 7 | - | - | - | 178 |
| Selling Expenses (US$000) | 498 | 37 | - | - | - | 535 | 309 | 13 | - | - | - | 322 |
| Cost Applicable to Sales (US$000) | 36,297 | 2,702 | - | - | - | 38,998 | 43,702 | 1,769 | - | - | - | 45,470 |
| Divide: | ||||||||||||
| Volume Sold | 38,528 | 290,930 | - | - | - | Not Applicable | 60,646 | 210,626 | - | - | - | Not Applicable |
| CAS | 942 | 9.29 | - | - | - | No Applicable | 721 | 8.40 | - | - | - | Not Applicable |
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 20 of 27 |
|---|
APPENDIX 5: ALL-IN SUSTAINING COST
| All-in Sustaining Cost for 2Q20 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| 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 Deductions^3^ | ||||||||
| Selling Expenses | ||||||||
| Administrative Expenses | ||||||||
| Other, net | ||||||||
| Sustaining Capex^4^ | ||||||||
| 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> First Quarter 2020 Results<br><br> Page 21 of 27 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Buenaventura | ||||||||
| --- | ||||||||
| All-in Sustaining Cost for 2Q19 | ||||||||
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2Q19 | 2Q19 | 2Q19 | 2Q19 | |||||
| 37,876 | 5,521 | 34,455 | 54,620 | |||||
| 2Q19 | 2Q19 | 2Q19 | 2Q19 | |||||
| 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^3^ | ||||||||
| Exploration in Operating Units | ||||||||
| Royalties | ||||||||
| Comercial Deductions^4^ | ||||||||
| Selling Expenses | ||||||||
| Administrative Expenses | ||||||||
| Other, net | ||||||||
| Sustaining Capex^5^ | ||||||||
| By-product Credit | ||||||||
| All-in Sustaining Cost | ||||||||
| Notes: | ||||||||
| 1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A. | ||||||||
| 2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay. | ||||||||
| 3. For Buenaventura does not consider purchase of concentrate from La Zanja. | ||||||||
| 4. For all metals produced. | ||||||||
| 5. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 22 of 27 | ||||||||
|---|---|---|---|---|---|---|---|---|
| All-in Sustaining Cost for 1S20 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| 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 Deductions^3^ | ||||||||
| Selling Expenses | ||||||||
| Administrative Expenses | ||||||||
| Other, net | ||||||||
| Sustaining Capex^4^ | ||||||||
| 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> First Quarter 2020 Results<br><br> Page 23 of 27 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Buenaventura | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| All-in Sustaining Cost for 1S19 | ||||||||
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| 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^3^ | ||||||||
| Exploration in Operating Units | ||||||||
| Royalties | ||||||||
| Comercial Deductions^4^ | ||||||||
| Selling Expenses | ||||||||
| Administrative Expenses | ||||||||
| Other, net | ||||||||
| Sustaining Capex^5^ | ||||||||
| 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 Buenaventura does not consider purchase of concentrate from La Zanja. | ||||||||
| 4. For all metals produced. | ||||||||
| 5. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> First Quarter 2020 Results<br><br> Page 24 of 27 |
|---|
APPENDIX 6
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
|---|---|---|---|---|
| Consolidated Statement of Financial Position | ||||
| As of June 30, 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 | ||||
| Investment 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 | ||||
| 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> First Quarter 2020 Results<br><br> Page 25 of 27 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated Statement of Income | ||||||||
| For the three-month and six-month periods ended June 30, 2020 and 2019 | ||||||||
| For the three-month period <br> ended June 30, | For the six-month period ended <br> June 30, | |||||||
| 2020 | 2019 | 2020 | 2019 | |||||
| Continuing operations | US(000) | US(000) | 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 | ) | |||||||
| Operating expenses, net | ||||||||
| Administrative expenses | ) | ) | ) | ) | ||||
| Selling expenses | ) | ) | ) | ) | ||||
| Exploration in non-operating areas | ) | ) | ) | ) | ||||
| Reversal (provision) for contingencies and others | ) | |||||||
| Other, net | ) | ) | ) | |||||
| Total operating expenses, net | ) | ) | ) | ) | ||||
| Operating profit (loss) | ) | ) | ) | ) | ||||
| Other income (expense), net | ||||||||
| Share in the results of associates and joint ventures | ) | |||||||
| 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 | ||||||||
| Loss from discontinued operations attributable to equity holders of the parent | ) | ) | ) | ) | ||||
| Net profit (loss) | ) | ) | ||||||
| Attributable to: | ||||||||
| Owners 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> First Quarter 2020 Results<br><br> Page 26 of 27 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated Statement of Cash Flows | ||||||||
| For the three and six-month periods ended June 30, 2020 and 2019 | ||||||||
| For the three-month period ended June 30, | For the six-month period ended June 30, | |||||||
| 2020 | 2019 | 2020 | 2019 | |||||
| US(000) | US(000) | US(000) | US(000) | |||||
| Operating activities | ||||||||
| Proceeds from sales | ||||||||
| Value Added Tax recovered | ||||||||
| Royalty received | ||||||||
| Proceeds from dividends | ||||||||
| Interest received | ||||||||
| Payments to suppliers and third-parties, and other net | ) | ) | ) | ) | ||||
| Payments to employees | ) | ) | ) | ) | ||||
| Payments of income taxes and royalties paid to State | ) | ) | ) | ) | ||||
| Payments of interest | ) | ) | ) | ) | ||||
| 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 | ||||||||
| Acquisitions of mining concessions, development costs, property, plant and equipment | ) | ) | ) | ) | ||||
| Purchase of shares | ) | |||||||
| Payments to other assets | ) | ) | ) | ) | ||||
| Net cash and cash equivalents used in investing activities | ) | ) | ) | ) | ||||
| Financing activities | ||||||||
| Proceeds of bank loans | ||||||||
| Payments of bank loans | ) | ) | ||||||
| Payments of financial obligations | ) | ) | ) | ) | ||||
| Dividends paid to controlling shareholders | ) | ) | ||||||
| Dividends paid to non-controlling interest | ) | ) | ) | |||||
| Decrease (increase) 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> First Quarter 2020 Results<br><br> Page 27 of 27 | ||||||||
|---|---|---|---|---|---|---|---|---|
| For the three-month period ended June 30, | For the six-month period ended June 30, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 | 2019 | 2020 | 2019 | |||||
| US(000) | US(000) | 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 in cost of sales | ||||||||
| Depreciation and amortization in other, net | ||||||||
| Depreciation and amortization in administration expenses | ||||||||
| Net share in results of associates and joint venture | ) | ) | ) | |||||
| Reversal (provision) for impairment loss of inventories | ) | ) | ||||||
| Bonus provision - executives & employes | ||||||||
| Accretion expense of provision for closure of mining units and exploration projects | ||||||||
| Net loss (gain) from currency exchange difference | ||||||||
| Provision for estimated fair value of sales | ) | |||||||
| Deferred income tax expense (income) | ) | ) | ) | |||||
| Recovery (expense) for provision for contingencies | ) | ) | ) | |||||
| Hedge derivative instruments | ) | ) | ||||||
| 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: July 30, 2020