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 April 2022
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 2022 Results
Lima, Peru, April 28, 2022 – 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 (1Q22) ended March 31, 2022. 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$).
First Quarter Highlights:
| • | 1Q22 EBITDA from direct operations reached US$ 431.9 million, compared to US$ 39.7 million reported in 1Q22, reflecting US$ 300 million resulting from the sale of Buenaventura’s stake in Yanacocha and US$<br> 45 million from Newmont’s contribution to La Zanja’s future closure costs. |
|---|---|
| • | 1Q22 EBITDA including associated companies reached US$ 578.7 million, compared to US$ 162.8 million in 1Q21. |
| --- | --- |
| • | 1Q22 net income reached US$ 636.2 million, compared to a US$ 16.4 million for the same period in 2021. |
| --- | --- |
| • | 1Q22 exploration at operating units increased to US$ 14.0 million, from US$ 9.3 million in 1Q21, aligned with the Company’s strategy to focus primarily on exploration. |
| --- | --- |
| • | 1Q22 capital expenditures were US$ 19.9 million, compared to US$ 13.0 million for the same period in 2021. 1Q22 CAPEX includes US$ 2.8 million in CAPEX related to the San Gabriel Project and US$ 4.7 million<br> in CAPEX related to the Yumpag Project. |
| --- | --- |
| • | The Company continued its strategy of progressively reducing fixed costs at the Uchucchacua mine to improve the cost structure efficiency when the operation restarts |
| --- | --- |
| • | 1Q22 COVID related expenses were US$ 5.3 million, compared to the US$ 11.7 million reported in 1Q21. 2022 COVID related expenses estimates are between US$ 12.0 and US$ 14.0 million. |
| --- | --- |
| • | Buenaventura’s cash position reached US$ 337.4 million as of March 31, 2022. Net Debt was reduced to US$ 771 million, achieving a 1.71x Net Debt to EBITDA ratio. |
| --- | --- |
| • | Aligned with the Company’s commitment to deleveraging, on March 2, Buenaventura fully paid its syndicate loan amounting to US$ 275.0 million, and on March 18 the Company cancelled US$ 50 million of its<br> revolving facility. |
| --- | --- |
| • | On March 30, the San Gabriel Mine Project received the Government of Peru’s approval of all required permits, enabling the Company to immediately commence mining project construction, development and<br> exploitation. |
| --- | --- |
| • | 2022 Production Guidance will be updated in 2Q22 due to a new mine plan in progress for El Brocal, resulting in an expected 1.0 to 1.5 million ounce decrease in silver production for the full year 2022. |
| --- | --- |
Financial Highlights (in millions of US$, except EPS figures):
| 1Q22 | 1Q21 | Var | |
|---|---|---|---|
| Total Revenues | 232.9 | 185.9 | 25% |
| Operating Income | 77.2 | -9.5 | N.A. |
| EBITDA Direct Operations | 431.9 | 39.7 | 989% |
| EBITDA Including Affiliates | 578.7 | 162.8 | 255% |
| Net Income | 636.2 | 16.4 | 3786% |
| EPS | 2.50 | 0.06 | 3786% |
(*) As of March 31, 2022, Buenaventura had a weighted average number of shares outstanding of 253,986,867.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 2 of 22
| Operating Revenues |
|---|
1Q22 net sales were US$ 231.5 million, as compared to US$ 181.9 million reported in 1Q21; a year-on-year increase driven by higher metal prices during the quarter with an increase in gold and copper volume sold.
| Operating Highlights | 1Q22 | 1Q21 | % |
|---|---|---|---|
| Net Sales (million of US$) | 231.5 | 181.9 | 27% |
| Average Gold Price (US$/oz.) Direct Operations ^(1) (2)^ | 1,896 | 1,726 | 10% |
| Average Gold Price (US$/oz.) inc Associated ^(2) (3)^ | 1,891 | 1,773 | 7% |
| Average Silver Price (US$/oz.)^(2)^ | 24.10 | 26.98 | -11% |
| Average Lead Price (US$/MT)^(2)^ | 2,363 | 2,129 | 11% |
| Average Zinc Price (US$/MT)^(2)^ | 4,105 | 3,220 | 28% |
| Average Copper Price (US$/MT)^(2)^ | 9,950 | 8,994 | 11% |
| Volume Sold | 1Q22 | 1Q21 | % |
| --- | --- | --- | --- |
| Gold Oz Direct Operations ^(1)^ | 40,167 | 26,188 | 53% |
| Gold Oz inc Associated ^(3)^ | 48,421 | 35,802 | 35% |
| Silver Oz | 1,887,788 | 3,176,279 | -41% |
| Lead MT | 4,589 | 4,804 | -4% |
| Zinc MT | 10,179 | 10,806 | -6% |
| Copper MT | 9,734 | 7,551 | 29% |
| (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 and 40.095% of Coimolache. | ||
| --- | --- | ||
| Production and Operating Costs | |||
| --- |
Buenaventura’s 1Q22 equity gold production was 41,470 ounces, compared to 27,138 ounces produced in 1Q21. Silver production from direct operations decreased by 44% year on year, lead production decreased by 3% year on year and zinc production decreased by 4% year on year, primarily due to the suspension of Uchucchacua’s operations as was previously announced. The Company’s 1Q22 copper production increased by 28%, year on year.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 3 of 22
| Equity Production | 1Q22 | 1Q21 | % |
|---|---|---|---|
| Gold Oz Direct Operations^(1)^ | 41,470 | 27,138 | 53% |
| Gold Oz including Associated^(2)^ Companies | 49,293 | 37,616 | 31% |
| Silver Oz Direct Operations^(1)^ | 1,762,701 | 3,172,627 | -44% |
| Silver Oz including Associated Companies | 1,996,171 | 3,438,393 | -42% |
| Lead MT | 4,142 | 4,257 | -3% |
| Zinc MT | 8,932 | 9,337 | -4% |
| Copper MT Direct Operations^(1)^ | 6,241 | 4,893 | 28% |
| Copper MT including Associated Companies^(3)^ | 27,257 | 24,148 | 13% |
| Consolidated Production | 1Q22 | 1Q21 | % |
| --- | --- | --- | --- |
| Gold Oz^(4)^ | 43,148 | 28,321 | 52% |
| Silver Oz^(4)^ | 2,171,414 | 3,779,837 | -43% |
| Lead MT^(4)^ | 5,105 | 5,082 | 0% |
| Zinc MT^(4)^ | 12,316 | 13,274 | -7% |
| Copper MT^(4)^ | 10,159 | 7,965 | 28% |
| (1) | Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 100% of La Zanja and 61.43% of El Brocal. | ||
| --- | --- | ||
| (2) | Based on 100% of Buenaventura´s operating units, 100% of La Zanja, 61.43% of El Brocal and 40.095% of Coimolache. | ||
| --- | --- | ||
| (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. | ||
| --- | --- |
Tambomayo (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q22 | 1Q21 | Var % | ||
| Gold | Oz | 13,867 | 15,347 | -10% |
| Silver | Oz | 419,396 | 284,677 | 47% |
| Cost Applicable to Sales | ||||
| 1Q22 | 1Q21 | Var % | ||
| Gold | US$/Oz | 1,011 | 927 | 9% |
1Q22 gold production at Tambomayo decreased 10% year on year, primarily due to a 35% decrease in the gold grade despite increased amounts of ore treated.
1Q22 Cost Applicable to Sales (CAS) increased to 1,011 US$/Oz, from 927 US$/Oz in 1Q21, primarily due to a 145% year on year increase in commercial deductions, as the Company sold more lead and zinc concentrates and less gold and silver during the first quarter of 2022. COVID-19 related expenses decreased by US$ 0.4 M, year on year.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 4 of 22
Orcopampa (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q22 | 1Q21 | Var % | ||
| Gold | Oz | 19,031 | 5,986 | 218% |
| Silver | Oz | 7,856 | 1,043 | 654% |
| Cost Applicable to Sales | ||||
| 1Q22 | 1Q21 | Var % | ||
| Gold | US$/Oz | 867 | 2,086 | -58% |
Increased 1Q22 gold production at Orcopampa was primarily due to a 248% year on year increase in ore volume treated due to positive reconciliation in both tonnage and grade. Cost Applicable to Sales (CAS) decreased to 867 US$/Oz in 1Q22, compared to 2,086 US$/Oz in 1Q21 due to an increase in ore treated despite a 49% increase in exploration expenses. COVID-19 related expenses also decreased by US$ 0.3 million year on year.
La Zanja (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q22 | 1Q21 | Var % | ||
| Gold | Oz | 5,900 | 3,908 | 51% |
| Silver | Oz | 23,363 | 27,042 | -14% |
| Cost Applicable to Sales | ||||
| 1Q22 | 1Q21 | Var % | ||
| Gold | US$/Oz | 2,160 | 1,602 | 35% |
1Q22 gold production increased by 51% year on year due to increased volume treated. 1Q22 Cost Applicable to Sales (CAS) was 2,160 US$/Oz; a 35% increase compared to 1,602 US$/Oz in 1Q21 due to an increase in the stripping ratio to 1.03 from 0.39; a 167% year on year increase, as well as production which was rescheduled due to intense rains in the area. COVID-19 related expenses decreased by US$ 0.2 million compared to 1Q21.
Coimolache (40.10% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q22 | 1Q21 | Var % | ||
| Gold | Oz | 19,512 | 26,133 | -25% |
| Silver | Oz | 77,195 | 200,993 | -62% |
| Cost Applicable to Sales | ||||
| 1Q22 | 1Q21 | Var % | ||
| Gold | US$/Oz | 1,276 | 816 | 56% |
1Q22 gold production at Coimolache decreased by 25% year on year, due to a 32% decrease in ore stockpiled on the leach pad. 1Q22 Cost Applicable to Sales (CAS) increased 56% to 1,276 US$/Oz, compared to 816 US$/Oz in 1Q21, mainly due to a significant increase in exploration expenses to US$ 2 million in 1Q22. COVID related expenses also decreased by US$ 0.3 million, year on year.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 5 of 22
Uchucchacua (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q22 | 1Q21 | Var % | ||
| Silver | Oz | 0 | 1,243,916 | -100% |
| Zinc | MT | 0 | 1,246 | -100% |
| Lead | MT | 0 | 1,292 | -100% |
| Cost Applicable to Sales | ||||
| 1Q22 | 1Q21 | Var % | ||
| Silver | US$/Oz | 0.00 | 29.60 | N.A. |
Exploration tunneling and diamond drilling continues according to plan with an emphasis on the Nora-Geraldine orebody. Yumpag mine development began ramp-up during 1Q22 with a new contractor, also with exploration progressing as planned for the Camila and Tomasa orebodies.
Julcani (100% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q22 | 1Q21 | Var % | ||
| Silver | Oz | 661,132 | 648,854 | 2% |
| Cost Applicable to Sales | ||||
| 1Q22 | 1Q21 | Var % | ||
| Silver | US$/Oz | 15.03 | 16.39 | -8% |
Julcani 1Q22 silver production was in line with 1Q21 production. 1Q22 Cost Applicable to Sales (CAS) was 15.03 US$/Oz; an 8% year on year decrease due to a 30% decrease in commercial deductions. COVID related expenses decreased by US$ 0.9 million year on year.
El Brocal (61.43% owned by Buenaventura)
| Production | ||||
|---|---|---|---|---|
| 1Q22 | 1Q21 | Var % | ||
| Copper | MT | 10,159 | 7,687 | 32% |
| Zinc | MT | 8,772 | 10,207 | -14% |
| Silver | Oz | 1,059,666 | 1,574,305 | -33% |
| Cost Applicable to Sales | ||||
| 1Q22 | 1Q21 | Var % | ||
| Copper | US$/MT | 6,632 | 5,603 | 18% |
| Zinc | US$/MT | 2,527 | 1,800 | 40% |
El Brocal 1Q22 copper production increased by 32%, year on year. Tajo Norte 1Q22 zinc production decreased by 14% year on year as part of the anticipated transition from polymetallic to copper ore in the open pit mining sequence.
1Q22 Copper Cost Applicable to Sales (CAS) increased by 18% year on year while zinc CAS increased by 40% year on year. These increases are primarily due to a 52% increase in exploration expenses and a 32% increase in commercial deductions.
A landslide within the mine’s open pit occurred on March 19, 2022, resulting in the death of three workers. The exact cause of the landslide is under further investigation.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 6 of 22
| General and Administrative Expenses |
|---|
1Q22 General and Administrative expenses were US$ 18.5 million; a 9% increase as compared to US$ 17.0 million in 1Q21.
| Exploration in Non-Operating Areas |
|---|
1Q22 Non-Operating Area exploration costs were US$ 2.0 million, compared with US$ 1.7 million in 1Q21. During the first quarter 2022, Buenaventura focused exploration primarily within its Emperatriz project (La Zanja), resulting in US$ 0.6 million in exploration costs during 1Q22. Increased exploration during the quarter is aligned with Buenaventura´s strategy to maintain a pipeline of new discoveries and projects.
| Net gain (loss) of currency exchange difference |
|---|
1Q22 currency exchange related net gain was US$ 47.8 million, compared with a net loss of US$ 1.4 million in 1Q21 due to a year on year strengthening of the PEN relative to the US dollar (3.975 PEN/USD in 2021 vs 3.695 PEN/USD in 2022). SUNAT’s claim is registered in Peruvian Soles as part of Buenaventura’s ‘accounts receivables’, therefore, a lower exchange rate increases the total amount when converted to US dollars.
| Share in Associated Companies |
|---|
During 1Q22, Buenaventura’s share in associated companies increased to US$ 75.4 million, compared to US$ 58.2 million in 1Q21, comprised of:
| Share in Associates’ Results<br><br> <br>(in millions of US$) | 1Q22 | 1Q21 | Var |
|---|---|---|---|
| Cerro Verde Contribution | 74.4 | 54.1 | 38% |
| Coimolache Contribution | 1.0 | 4.5 | -77% |
| Others Contribution | 0.0 | -0.3 | N.A. |
| Total Income from non-consolidated affiliates | 75.4 | 58.2 | 30% |
| SAN GABRIEL Project | |||
| --- |
The San Gabriel construction permit was issued on March 23, 2022. The Company has therefore begun releasing purchase and service orders for construction and early works are underway.
CAPEX for the San Gabriel Project will increase to a range between US$ 420 million – 470 million due to:
| - | Increased oil and supplies costs resulting from inflation |
|---|---|
| - | Additional lead times due to port congestion |
| --- | --- |
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 7 of 22
| CERRO VERDE (19.58% owned by Buenaventura) |
|---|
1Q22 copper production was 107,335 MT, 21,016 MT of which is attributable to Buenaventura; an increase as compared to 98,337 MT produced in 1Q21; 19,254 MT of which was attributable to Buenaventura.
Cerro Verde reported 1Q22 net income of US$ 379.8 million, compared to net income of US$ 276.2 million in 1Q21. This is primarily due to a 27% year on year net sales increase, mainly due to a higher average realized copper price of US$ 4.93 per pound in the first quarter of 2022, compared to US$ 4.35 per pound in the first quarter of 2021. This increase was partially offset by a year-on-year cost of sales increase due to increase in oil prices.
Cerro Verde 1Q22 CAPEX reached US$ 39.2 million.
| COIMOLACHE (40.10% owned by Buenaventura) |
|---|
1Q22 attributable contribution to net profit was US$ 1.0 million, as compared to US$ 4.5 million attributable contribution to net income in 1Q21.
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: Tambomayo*, Orcopampa*, Uchucchacua*, Julcani*, La Zanja*, El Brocal and Coimolache.
The Company owns 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.
For a printed version of the Company’s 2020 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<br> and 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<br> spending 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<br> achievement of 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 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 and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a<br> variety of factors discussed elsewhere in this Press Release. |
|---|
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 8 of 22
**Tables to follow**
APPENDIX 1
| Equity Participation in<br><br> <br>Subsidiaries and Associates (as of March 31, 2022) | ||
|---|---|---|
| BVN | Operating | |
| Equity % | Mines / Business | |
| El Molle Verde S.A.C.* | 100.00 | Trapiche Project |
| Minera La Zanja S.A.* | 100.00 | La Zanja |
| Sociedad Minera El Brocal S.A.A* | 61.43 | Colquijirca and Marcapunta |
| Compañía Minera Coimolache S.A. ** | 40.10 | Tantahuatay |
| 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.
First Quarter 2022 Results
Page 9 of 22
APPENDIX 2
| Gold Production | |||||
|---|---|---|---|---|---|
| Mining Unit | Operating Results | Unit | 1Q22 | 1Q21 | △% |
| Underground | |||||
| Tambomayo | Ore Milled | DMT | 142,293 | 112,273 | 27% |
| Ore Grade | Gr/MT | 3.48 | 5.38 | -35% | |
| Recovery Rate | % | 87.13 | 79.03 | 10% | |
| Ounces Produced* | Oz | 13,867 | 15,347 | -10% | |
| Orcopampa | Ore Milled | DMT | 59,297 | 17,052 | 248% |
| Ore Grade | Gr/MT | 10.02 | 10.70 | -6% | |
| Recovery Rate | % | 99.61 | 102.09 | -2% | |
| Ounces Produced* | Oz | 19,031 | 5,986 | 218% | |
| Open Pit | |||||
| La Zanja | Ounces Produced | Oz | 5,900 | 3,908 | 51% |
| Coimolache | Ounces Produced | Oz | 19,512 | 26,133 | -25% |
| (*) Includes ounces from tailings dam retreatment | |||||
| Silver Production | |||||
| Mining Unit | Operating Results | Unit | 1Q22 | 1Q21 | △% |
| Underground | |||||
| Tambomayo | Ore Milled | DMT | 142,293 | 112,273 | 27% |
| Ore Grade | Oz/MT | 3.18 | 3.17 | 1% | |
| Recovery Rate | % | 92.54 | 80.01 | 16% | |
| Ounces Produced | Oz | 419,396 | 284,677 | 47% | |
| Uchucchacua | Ore Milled | DMT | 0 | 191,220 | -100% |
| Ore Grade | Oz/MT | - | 7.77 | - | |
| Recovery Rate | % | - | 83.67 | - | |
| Ounces Produced | Oz | 0 | 1,243,916 | -100% | |
| Julcani | Ore Milled | DMT | 31,491 | 32,139 | -2% |
| Ore Grade | Oz/MT | 21.32 | 20.69 | 3% | |
| Recovery Rate | % | 98.46 | 96.85 | 2% | |
| Ounces Produced | Oz | 661,132 | 648,854 | 2% | |
| Marcapunta | Ore Milled | DMT | 637,980 | 497,768 | 28% |
| Ore Grade | Oz/MT | 0.92 | 0.76 | 21% | |
| Recovery Rate | % | 54.43 | 54.45 | 0% | |
| Ounces Produced | Oz | 302,408 | 205,556 | 47% | |
| Open Pit | |||||
| Tajo Norte<br><br> Cu - Ag | Ore Milled | DMT | 98,937 | 51,842 | - |
| Ore Grade | Oz/MT | 2.31 | 4.16 | - | |
| Recovery Rate | % | 52.38 | 45.52 | - | |
| Ounces Produced | Oz | 119,639 | 102,388 | - | |
| Tajo Norte<br><br> Pb - Zn | Ore Milled | DMT | 592,112 | 574,748 | 3% |
| Ore Grade | Oz/MT | 1.89 | 3.04 | -38% | |
| Recovery Rate | % | 57.09 | 72.37 | -21% | |
| Ounces Produced | Oz | 637,619 | 1,266,360 | -50% |
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 10 of 22
| Zinc Production | |||||
|---|---|---|---|---|---|
| Mining Unit | Operating Results | Unit | 1Q22 | 1Q21 | △% |
| Underground | |||||
| Tambomayo | Ore Milled | DMT | 142,293 | 112,273 | 27% |
| Ore Grade | % | 3.03 | 2.30 | 31% | |
| Recovery Rate | % | 82.28 | 70.43 | 17% | |
| MT Produced | MT | 3,543 | 1,821 | 95% | |
| Uchucchacua | Ore Milled | DMT | 0 | 191,220 | -100% |
| Ore Grade | % | - | 1.27 | - | |
| Recovery Rate | % | - | 51.21 | - | |
| MT Produced | MT | 0 | 1,246 | -100% | |
| Open Pit | |||||
| Tajo Norte<br><br> Pb - Zn | Ore Milled | DMT | 592,112 | 574,748 | 3% |
| Ore Grade | % | 2.51 | 2.81 | -11% | |
| Recovery Rate | % | 58.97 | 63.11 | -7% | |
| MT Produced | MT | 8,772 | 10,207 | -14% | |
| Copper Production | |||||
| Mining Unit | Operating Results | Unit | 1Q22 | 1Q21 | △% |
| Underground | |||||
| Marcapunta | Ore Milled | DMT | 637,980 | 497,768 | 28% |
| Ore Grade | % | 1.75 | 1.71 | 2% | |
| Recovery Rate | % | 83.36 | 87.51 | -5% | |
| MT Produced | MT | 9,408 | 7,447 | 26% | |
| Tajo Norte<br><br> Cu - Ag | Ore Milled | DMT | 98,937 | 51,842 | - |
| Ore Grade | % | 1.24 | 0.80 | - | |
| Recovery Rate | % | 60.98 | 57.94 | - | |
| MT Produced | MT | 751 | 240 | - |
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 11 of 22
APPENDIX 3: Adjusted EBITDA Reconciliation (in thousand US$)
| 1Q22 | 1Q21 | |
|---|---|---|
| Net Income | 646,295 | 18,117 |
| Add / Subtract: | -214,363 | 21,552 |
| Depreciation and Amortization in cost of sales | 45,721 | 46,488 |
| Provision (credit) for income tax, net | 27,166 | 16,073 |
| Interest expense | 16,571 | 10,909 |
| Provision of bonuses and compensations | 3,938 | 3,747 |
| Loss (gain) on currency exchange difference | -47,810 | 1,441 |
| Profit from discontinued operations | -479,997 | 2,337 |
| Depreciation and amortization in administration expenses | 918 | 909 |
| Provision (reversal) for contingencies | -746 | 306 |
| Depreciation and amortization in other, net | 25 | 26 |
| Share in associated companies by the equity method, net | -75,420 | -58,224 |
| Impairment (reversal) of inventories | -347 | -2,312 |
| Interest income | -9,573 | -148 |
| Cash from sale of investment in Yanacocha | 300,000 | 0 |
| Workers´ participation provision | 5,191 | 0 |
| EBITDA Buenaventura Direct Operations | 431,932 | 39,669 |
| EBITDA Cerro Verde (19.58%) | 141,974 | 111,165 |
| EBITDA Coimolache (40.095%) | 4,817 | 11,985 |
| EBITDA Buenaventura + All Associates | 578,723 | 162,819 |
*Cerro Verde’s EBITDA accounts for 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 (Cerro Verde), plus (2) 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
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 12 of 22
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.
Operations’ Cost applicable to sales does not include operating cost for those months during which Buenaventura’s operations were suspended due to COVID-19, as these have been classified as “Unabsorbed costs due to production stoppage” within the financial statements.
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 twelve months ended December 31, 2020 and 2021 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 twelve months ended December 31, 2020 and 2021 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.
First Quarter 2022 Results
Page 13 of 22
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 | |
|---|---|
| 2021 | |
| (in thousands of US) | |
| Consolidated Cost of sales excluding depreciation and amortization | 107,968 |
| Add: | |
| Consolidated Exploration in units in operation | 14,017 |
| Consolidated Commercial deductions | 50,885 |
| Consolidated Selling expenses | 4,592 |
| Consolidated Cost applicable to sales | 177,462 |
All values are in US Dollars.
Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization (by mine and mineral) to consolidated Cost of sales:
| For the 3 months ended March 31 | |
|---|---|
| 2021 | |
| Cost of sales by mine and mineral | (in thousands of US) |
| Julcani, Gold | 0 |
| Julcani, Silver | 7,266 |
| Julcani, Lead | 82 |
| Julcani, Copper | 54 |
| Orcopampa, Gold | 13,828 |
| Orcopampa, Silver | 62 |
| Orcopampa, Copper | 0 |
| Tambomayo, Gold | 8,528 |
| Tambomayo, Silver | 3,072 |
| Tambomayo, Zinc | 2,042 |
| Tambomayo, Lead | 4,559 |
| La Zanja, Gold | 11,709 |
| La Zanja, Silver | 558 |
| El Brocal, Gold | 1,951 |
| El Brocal, Silver | 7,546 |
| El Brocal, Lead | 1,907 |
| El Brocal, Zinc | 10,344 |
| El Brocal, Copper | 33,877 |
| Uchucchacua | 0 |
| Non Mining Units | 584 |
| Consolidated Cost of sales, excluding depreciation and amortization | 107,968 |
All values are in US Dollars.
Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units:
| For the 3 months ended March 31 | |
|---|---|
| 2021 | |
| Exploration expenses in units in operation by mine and mineral | (in thousands of US) |
| Julcani, Gold | 0 |
| Julcani, Silver | 1,442 |
| Julcani, Lead | 16 |
| Julcani, Copper | 11 |
| Orcopampa, Gold | 2,674 |
| Orcopampa, Silver | 12 |
| Orcopampa, Copper | 0 |
| Tambomayo, Gold | 1,090 |
| Tambomayo, Silver | 393 |
| Tambomayo, Lead | 261 |
| Tambomayo, Zinc | 583 |
| La Zanja, Gold | 686 |
| La Zanja, Silver | 33 |
| El Brocal, Gold | 139 |
| El Brocal, Silver | 538 |
| El Brocal, Lead | 136 |
| El Brocal, Zinc | 737 |
| El Brocal, Copper | 2,415 |
| Uchucchacua | 2,852 |
| Non Mining Units | 0 |
| Consolidated Exploration expenses in units in operation | 14,017 |
All values are in US Dollars.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 14 of 22
Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) to consolidated Commercial deductions:
| For the 3 months ended March 31 | |
|---|---|
| 2021 | |
| Commercial Deductions in units in operation by mine and mineral | (in thousands of US) |
| Julcani, Gold | -10 |
| Julcani, Silver | 704 |
| Julcani, Lead | 8 |
| Julcani, Copper | 4 |
| Orcopampa, Gold | 81 |
| Orcopampa, Silver | 1 |
| Orcopampa, Copper | 0 |
| Tambomayo, Gold | 2,045 |
| Tambomayo, Silver | 999 |
| Tambomayo, Lead | 443 |
| Tambomayo, Zinc | 5,059 |
| La Zanja, Gold | 43 |
| La Zanja, Silver | 3 |
| El Brocal, Gold | 1,545 |
| El Brocal, Silver | 5,106 |
| El Brocal, Lead | 1,179 |
| El Brocal, Zinc | 6,827 |
| El Brocal, Copper | 26,620 |
| Uchucchacua | 229 |
| Non Mining Units | 0 |
| Consolidated Commercial deductions in units in operation | 50,885 |
All values are in US Dollars.
Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses:
| For the 3 months ended March 31 | |
|---|---|
| 2021 | |
| Selling expenses by mine and mineral | (in thousands of US) |
| Julcani, Gold | 0 |
| Julcani, Silver | 154 |
| Julcani, Lead | 2 |
| Julcani, Copper | 1 |
| Orcopampa, Gold | 153 |
| Orcopampa, Silver | 1 |
| Orcopampa, Copper | 0 |
| Tambomayo, Gold | 656 |
| Tambomayo, Silver | 236 |
| Tambomayo, Lead | 157 |
| Tambomayo, Zinc | 351 |
| La Zanja, Gold | 32 |
| La Zanja, Silver | 2 |
| El Brocal, Gold | 81 |
| El Brocal, Silver | 311 |
| El Brocal, Lead | 79 |
| El Brocal, Zinc | 427 |
| El Brocal, Copper | 1,398 |
| Uchucchacua | 312 |
| Non Mining Units | 238 |
| Consolidated Selling expenses | 4,592 |
All values are in US Dollars.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 15 of 22
| JULCANI | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q 2022 | 1Q 2021 | |||||||||||
| 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) | - | 7,266 | 82 | - | 54 | 7,402 | 6 | 7,516 | 108 | - | 14 | 7,644 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 1,442 | 16 | - | 11 | 1,469 | 1 | 1,451 | 21 | - | 3 | 1,476 |
| Commercial Deductions (US$000) | -10 | 704 | 8 | - | 4 | 706 | 1 | 987 | 14 | - | 2 | 1,003 |
| Selling Expenses (US$000) | - | 154.11 | 1.75 | - | 1 | 157 | 0.09 | 111.12 | 1.59 | - | 0.20 | 113 |
| Cost Applicable to Sales (US$000) | -10 | 9,566 | 109 | - | 70 | 9,734 | 8 | 10,066 | 144 | - | 18 | 10,236 |
| Divide: | ||||||||||||
| Volume Sold | 0 | 636,311 | 76 | - | 11 | Not Applicable | 10 | 614,164 | 113 | - | 14 | Not Applicable |
| CAS | - | 15.03 | 1,436 | - | 6,152 | Not Applicable | 793 | 16.39 | 1,278 | - | 1,271 | Not Applicable |
| ORCOPAMPA | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2022 | 1Q 2021 | |||||||||||
| GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | |
| Cost of Sales (without D&A) (US$000) | 13,828 | 62 | - | - | - | 13,890 | 10,036 | 60 | - | - | - | 10,097 |
| Add: | - | |||||||||||
| Exploration Expenses (US$000) | 2,674 | 12 | - | - | - | 2,686 | 1,789 | 11 | - | - | - | 1,800 |
| Commercial Deductions (US$000) | 81 | 1 | - | - | - | 81 | 18 | 3 | - | - | - | 21 |
| Selling Expenses (US$000) | 153 | 1 | - | - | - | 154 | 44 | 0 | - | - | - | 44 |
| Cost Applicable to Sales (US$000) | 16,736 | 76 | - | - | - | 16,811 | 11,888 | 74 | - | - | - | 11,962 |
| Divide: | ||||||||||||
| Volume Sold | 19,307 | 6,928 | - | - | - | Not Applicable | 5,698 | 1,878 | - | - | - | Not Applicable |
| CAS | 867 | 10.93 | - | - | - | Not Applicable | 2,086 | 39.48 | - | - | - | Not Applicable |
| TAMBOMAYO | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2022 | 1Q 2021 | |||||||||||
| 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) | 8,528 | 3,072 | 2,042 | 4,559 | - | 18,200 | 10,564 | 2,943 | 1,255 | 1,717.52 | - | 16,479 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1,090 | 393 | 261 | 583 | - | 2,326 | 798 | 222 | 95 | 130 | - | 1,245 |
| Commercial Deductions (US$000) | 2,045 | 999 | 443 | 5,059 | - | 8,546 | 1,584 | 543 | 215 | 1,139 | - | 3,481 |
| Selling Expenses (US$000) | 656 | 236 | 157 | 351 | - | 1,401 | 619 | 173 | 74 | 101 | - | 966 |
| Cost Applicable to Sales (US$000) | 12,319 | 4,700 | 2,902 | 10,551 | - | 30,473 | 13,565 | 3,882 | 1,638 | 3,087 | - | 22,171 |
| Divide: | ||||||||||||
| Volume Sold | 12,181 | 351,077 | 2,275 | 2,922 | - | Not Applicable | 14,631 | 257,290 | 1,440 | 1,401 | - | Not Applicable |
| CAS | 1,011 | 13.39 | 1,276 | 3,610 | - | No Applicable | 927 | 15.09 | 1,138 | 2,203 | - | No Applicable |
| LA ZANJA | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2022 | 1Q 2021 | |||||||||||
| 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) | 11,709 | 558 | - | - | - | 12,267 | 6,196 | 710 | - | - | - | 6,906 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 686 | 33 | - | - | - | 719 | - | - | - | - | - | - |
| Commercial Deductions (US$000) | 43 | 3 | - | - | - | 46 | 27 | 3 | - | - | - | 29 |
| Selling Expenses (US$000) | 32 | 2 | - | - | - | 34 | 20 | 2 | - | - | - | 22 |
| Cost Applicable to Sales (US$000) | 12,471 | 595 | - | - | - | 13,066 | 6,242 | 715 | - | - | - | 6,957 |
| Divide: | ||||||||||||
| Volume Sold | 5,773 | 21,818 | - | - | - | Not Applicable | 3,897 | 28,964 | - | - | - | Not Applicable |
| CAS | 2,160 | 27.25 | - | - | - | Not Applicable | 1,602 | 24.67 | - | - | - | Not Applicable |
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 16 of 22
| BROCAL | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q 2022 | 1Q 2021 | |||||||||||
| 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) | 1,951 | 7,546 | 1,907 | 10,344 | 33,877 | 55,625 | 1,093 | 10,176 | 1,576 | 8,755 | 21,117 | 42,716 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 139 | 538 | 136 | 737 | 2,415 | 3,965 | 67 | 621 | 96 | 534 | 1,288 | 2,605 |
| Commercial Deductions (US$000) | 1,545 | 5,106 | 1,179 | 6,827 | 26,620 | 41,277 | 1,005 | 5,081 | 751 | 5,582 | 18,825 | 31,244 |
| Selling Expenses (US$000) | 81 | 311 | 79 | 427 | 1,398 | 2,296 | 51 | 479 | 74 | 412 | 993 | 2,009 |
| Cost Applicable to Sales (US$000) | 3,715 | 13,501 | 3,301 | 18,336 | 64,310 | 103,163 | 2,216 | 16,356 | 2,496 | 15,283 | 42,223 | 78,574 |
| Divide: | ||||||||||||
| Volume Sold | 2,907 | 852,933 | 2,239 | 7,256 | 9,697 | Not Applicable | 1,951 | 1,244,168 | 2,239 | 8,491 | 7,536 | Not Applicable |
| CAS | 1,278 | 15.83 | 1,475 | 2,527 | 6,632 | Not Applicable | 1,136 | 13.15 | 1,115 | 1,800 | 5,603 | Not Applicable |
| NON MINING COMPANIES | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2022 | 1Q 2021 | |||||||||||
| 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) | - | - | - | - | - | 584 | - | - | - | - | - | 4,097 |
| Add: | - | - | ||||||||||
| Selling Expenses (US$000) | - | - | - | - | - | 238 | - | - | - | - | - | 244 |
| Total (US$000) | - | - | - | - | - | 822 | - | - | - | - | - | 4,341 |
| BUENAVENTURA CONSOLIDATED | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2022 | 1Q 2021 | |||||||||||
| 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) | 36015.29207 | 18,504 | 4,031 | 14,903 | 33,931 | 107,968 | 27,895 | 44,033 | 4,527 | 12,588 | 21,130 | 114,271 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 4,589 | 2,417 | 413 | 1,320 | 2,425 | 14,017 | 2,655 | 4,197 | 345 | 841 | 1,290 | 9,328 |
| Commercial Deductions (US$000) | 3,704 | 6,812 | 1,630 | 11,886 | 26,623 | 50,885 | 2,635 | 12,016 | 1,324 | 8,256 | 18,827 | 43,058 |
| Selling Expenses (US$000) | 923 | 704 | 238 | 778 | 1,399 | 4,592 | 734 | 1,332 | 189 | 565 | 993 | 4,058 |
| Cost Applicable to Sales (US$000) | 45,231 | 28,437 | 6,312 | 28,887 | 64,379 | 177,462 | 33,919 | 61,579 | 6,385 | 22,250 | 42,241 | 170,715 |
| Divide: | ||||||||||||
| Volume Sold | 40,167 | 1,869,066 | 4,589 | 10,179 | 9,709 | Not Applicable | 26,188 | 3,176,279 | 4,804 | 10,806 | 7,551 | Not Applicable |
| CAS | 1,126 | 15.21 | 1,375 | 2,838 | 6,631 | Not Applicable | 1,295 | 19.39 | 1,329 | 2,059 | 5,594 | Not Applicable |
| COIMOLACHE | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1Q 2022 | 1Q 2021 | |||||||||||
| 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) | 23,760 | 1,283 | - | - | - | 25,043 | 22,158 | 2,601 | - | - | - | 24,759 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 2,015 | 109 | - | - | - | 2,124 | 320 | 37 | - | - | - | 357 |
| Commercial Deductions (US$000) | 254 | 30 | - | - | - | 284 | 220 | 26 | - | - | - | 246 |
| Selling Expenses (US$000) | 243 | 13 | - | - | - | 256 | 231 | 27 | - | - | - | 258 |
| Cost Applicable to Sales (US$000) | 26,272 | 1,435 | - | - | - | 27,707 | 22,929 | 2,691 | - | - | - | 25,620 |
| Divide: | ||||||||||||
| Volume Sold | 20,586 | 96,634 | - | - | - | Not Applicable | 28,094 | 215,648 | - | - | - | Not Applicable |
| CAS | 1,276 | 14.85 | - | - | - | Not Applicable | 816 | 12.48 | - | - | - | Not Applicable |
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 17 of 22
APPENDIX 5: All-in Sustaining Cost
All-in Sustaining Cost for 1Q22
| Buenaventura^1^ | La Zanja | Tantahuatay | Attributable ^2^ | |||||
|---|---|---|---|---|---|---|---|---|
| 1Q22 | 1Q22 | 1Q22 | 1Q22 | |||||
| Au Ounces Sold Net | 40,167 | 5,773 | 20,586 | 54,194 | ||||
| 1Q22 | 1Q22 | 1Q22 | 1Q22 | |||||
| Income Statement & Cash Flow | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au |
| Cost of Sales | 41,361 | 1,030 | 11,482 | 1,989 | 25,043 | 1,217 | 57,494 | 1,061 |
| Exploration in Operating Units | 9,333 | 232 | 719 | 125 | 2,124 | 103 | 10,566 | 195 |
| Royalties | 2,934 | 73 | 0 | 0 | 0 | 0 | 2,934 | 54 |
| Comercial Deductions^3^ | 9,562 | 238 | 46 | 8 | 284 | 14 | 9,700 | 179 |
| Selling Expenses | 2,157 | 54 | 34 | 6 | 256 | 12 | 2,278 | 42 |
| Administrative Expenses | 12,075 | 301 | 684 | 118 | 905 | 44 | 12,801 | 236 |
| Other, net | -831 | -21 | -108 | -19 | -372 | -18 | -1,037 | -19 |
| Sustaining Capex^4^ | 1,460 | 36 | 34 | 6 | 4,403 | 214 | 3,243 | 60 |
| By-product Credit | -41,359 | -1,030 | -519 | -90 | -2,077 | -101 | -42,467 | -784 |
| All-in Sustaining Cost | 36,692 | 913 | 12,372 | 2,143 | 30,566 | 1,485 | 61,319 | 1,131 |
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.
| Notes: |
|---|
| 1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A. |
| 2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 100% from La Zanja and 40.095% from Tantahuatay. |
| 3. For all metals produced. |
| 4. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 18 of 22
All-in Sustaining Cost for 1Q21
| Buenaventura^1^ | La Zanja | Tantahuatay | Attributable ^2^ | |||||
|---|---|---|---|---|---|---|---|---|
| 1Q21 | 1Q21 | 1Q21 | 1Q21 | |||||
| Au Ounces Sold Net | 20,339 | 3,897 | 28,094 | 33,671 | ||||
| 1Q21 | 1Q21 | 1Q21 | 1Q21 | |||||
| Income Statement & Cash Flow | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au | US$ 000' | US$/Oz Au |
| Cost of Sales | 67,170 | 3,303 | 9,588 | 2,460 | 24,759 | 881 | 82,185 | 2,441 |
| Exploration in Operating Units | 6,723 | 331 | 1 | 0 | 357 | 13 | 6,867 | 204 |
| Royalties | 776 | 38 | 0 | 0 | 0 | 0 | 776 | 23 |
| Comercial Deductions^3^ | 11,786 | 579 | 29 | 7 | 246 | 9 | 11,900 | 353 |
| Selling Expenses | 1,930 | 95 | 22 | 6 | 258 | 9 | 2,045 | 61 |
| Administrative Expenses | 10,441 | 513 | 755 | 194 | 1,005 | 36 | 11,245 | 334 |
| Other, net | 177 | 9 | 31 | 8 | 240 | 9 | 290 | 9 |
| Sustaining Capex^4^ | 2,476 | 122 | 39 | 10 | 6,264 | 223 | 5,008 | 149 |
| By-product Credit | -64,040 | -3,149 | -788 | -202 | -5,821 | -207 | -66,792 | -1,984 |
| All-in Sustaining Cost | 37,439 | 1,841 | 9,677 | 2,483 | 27,308 | 972 | 58,064 | 1,724 |
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.
| Notes: |
|---|
| 1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A. |
| 2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay. |
| 3. For all metals produced. |
| 4. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment. |
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 19 of 22
APPENDIX 7
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
|---|---|---|---|---|
| Interim condensed consolidated statements of financial position | ||||
| As of March 31, 2022 (unaudited) and December 31, 2021 (audited) | ||||
| 2022 | 2021 | |||
| Assets | US(000) | US(000) | ||
| Current assets | ||||
| Cash and cash equivalents | ||||
| Trade and other receivables | ||||
| Inventories | ||||
| Current income tax asset | ||||
| Prepaid expenses | ||||
| Non-current assets | ||||
| Trade and other receivables | ||||
| Inventories | ||||
| Investments in associates and joint venture | ||||
| Property, plant, equipment, development costs, net | ||||
| Deferred income tax asset | ||||
| Prepaid expenses | ||||
| Other assets | ||||
| Total assets | ||||
| Liabilities and equity | ||||
| Current liabilities | ||||
| Bank loans | ||||
| Trade and other payables | ||||
| Provisions | ||||
| Current income tax payable | ||||
| Financial obligations | ||||
| Hedge derivative financial instruments | ||||
| Liabilities directly associated with assets classified as held for sale | ||||
| Non-current liabilities | ||||
| Trade and other payables | ||||
| Provisions | ||||
| Financial obligations | ||||
| Contingent consideration liability | ||||
| Deferred income tax liabilities | ||||
| Total liabilities | ||||
| Equity | ||||
| Capital stock | ||||
| Investment shares | ||||
| Additional paid-in capital | ||||
| Legal reserve | ||||
| Other reserves | ||||
| Other reserves of equity | ) | ) | ||
| Retained earnings | ||||
| Shareholders’ equity, net attributable to owners of the parent | ||||
| Non-controlling interest | ||||
| Total equity | ||||
| Total liabilities and equity |
All values are in US Dollars.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 20 of 22
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
|---|---|---|---|---|
| Interim consolidated statements of profit or loss (unaudited) | ||||
| For the three-month period ended March 31, 2022 and 2021 | ||||
| For the three-month period<br> ended March 31, | ||||
| 2022 | 2021 | |||
| Continuing operations | US(000) | US(000) | ||
| Operating income | ||||
| Sales of goods | ||||
| Sales of services | ||||
| Royalty income | ||||
| Total operating income | ||||
| Cost of sales | ||||
| Cost of sales of goods, excluding depreciation and amortization | ) | ) | ||
| Unabsorbed cost due to production stoppage | ) | |||
| Cost of sales of services, excluding depreciation and amortization | ) | ) | ||
| Depreciation and amortization | ) | ) | ||
| Exploration in operating units | ) | ) | ||
| Mining royalties | ) | ) | ||
| Total costs of sales | ) | ) | ||
| Gross profit | ||||
| Operating income (expenses) | ||||
| Administrative expenses | ) | ) | ||
| Selling expenses | ) | ) | ||
| Exploration in non-operating areas | ) | ) | ||
| Reversal (provision) of contingents | ) | |||
| Other, net | ) | |||
| Total operating income (expenses) | ) | |||
| Operating profit (loss) | ) | |||
| Share in the results of associates and joint venture | ||||
| Exchange difference | ) | |||
| Financial income | ||||
| Financial costs | ) | ) | ||
| Profit before income tax | ||||
| Current income tax | ) | ) | ||
| Deferred income tax | ) | ) | ||
| ) | ) | |||
| Profit from continuing operations | ||||
| Loss from discontinued operations, net of taxes | ) | |||
| Net profit | ||||
| Attributable to: | ||||
| Owners of the parent | ||||
| Non-controlling interest | ||||
| Basic and diluted profit (loss) per share stated in U.S. dollars | ||||
| Weighted average number of shares outstanding | ||||
| (common and investment), in units |
All values are in US Dollars.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 21 of 22
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
|---|---|---|---|---|
| Interim condensed consolidated statements of cash flows (unaudited) | ||||
| For the three-month periods ended March 31, 2022 and 2021 | ||||
| For the three-month period<br> ended March 31, | ||||
| 2022 | 2021 | |||
| US(000) | US(000) | |||
| Cash flows from (used in) operating activities | ||||
| Proceeds from sales of goods and services | ||||
| Recovery from value added tax | ||||
| Royalty received | ||||
| Interest received | ||||
| Dividends received from associates | ||||
| Dividends received from investments | ||||
| Payments to suppliers and third-parties, and others net | ) | ) | ||
| Payments to employees | ) | ) | ||
| Interest paid | ) | ) | ||
| Income tax and royalties paid to the Peruvian State | ) | ) | ||
| Payment of royalties | ) | ) | ||
| Payments for tax litigation | ) | |||
| Net cash and cash equivalents provided by (used in) operating activities | ) | |||
| Cash flows from (used in) investing activities | ||||
| Gain from sale of investments | ||||
| Income from purchase of shares in La Zanja | ||||
| Proceeds from sales of property, plant and equipment | ||||
| Acquisitions of property, plant and equipment | ) | ) | ||
| Payments for acquisitions of other assets | ) | ) | ||
| Net cash flows from (used in) investing activities | ) | |||
| Cash flows from (used in) financing activities | ||||
| Increase of restricted time deposits | ||||
| Payments of financial obligations | ) | ) | ||
| Payments of bank loans | ) | ) | ||
| Short-term and low value lease payments | ) | ) | ||
| Dividends paid to non-controlling interest | ) | ) | ||
| Payments of obligations for leases | ) | ) | ||
| Increase (decrease) of restricted bank accounts | ) | |||
| Net cash and cash equivalents provided by (used in) in financing activities | ) | ) | ||
| Decrease in cash and cash equivalents during the period, net | ) | ) | ||
| Cash and cash equivalents at beginning of period | ||||
| Cash and cash equivalents at period-end |
All values are in US Dollars.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2022 Results
Page 22 of 22
| For the three-month period<br> ended March 31, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| US(000) | US(000) | |||
| Reconciliation of net profit to cash and cash equivalents provided | ||||
| by operating activities | ||||
| Net profit | ||||
| Plus (less): | ||||
| Share in the results of associates and joint venture | ) | ) | ||
| Deferred income tax in Continued operations | ||||
| Exchange difference | ) | |||
| Fair value of provision for contingences liabilities | ||||
| Accretion expense of provision for closure of mining units and exploration projects | ||||
| Recovery (expense) for provision for contingencies | ) | |||
| Income from purchase of shares in La Zanja | ) | |||
| Depreciation and amortization in Cost of sales | ||||
| Depreciation and amortization in Administration expenses | ||||
| Depreciation and amortization in Other, net | ||||
| Provision for estimated fair value of sales | ||||
| Workers´ participation provision | ||||
| Bonus provision - executives & employes | ||||
| Reduction of debt restructuring costs by prepayment | ) | |||
| Deferred income tax expense (income) in Discontinued operations | ||||
| Income from discontinued operation of Yanacocha in Discontinued operations | ) | |||
| Gain from sale of investments in Discontinued operations | ) | ) | ||
| Other minor | ) | |||
| 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 | ) | ) | ||
| Income tax payable | ) | |||
| Payments for tax litigation | ) | |||
| 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/ DANIEL DOMINGUEZ
Name: Daniel Dominguez
Title: Chief Financial Officer
Date: April 28, 2022