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 October 2021
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.
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: October 28, 2021
Buenaventura Announces
Third Quarter and Nine-month 2021 Results
Lima, Peru, October 28, 2021 – 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 third quarter (3Q21) and nine-month period (9M21) ended September 30, 2021. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non-GAAP basis and are stated in U.S. dollars (US$).
Third Quarter and Nine-month 2021 Highlights:
| ● | 3Q21 EBITDA from direct operations reached US$ 39.5 million, compared to US$ 68.5 million reported in 3Q20. 9M21 EBITDA from direct<br> operations reached US$ 141.6 million; an increase as compared to US$ 88.1 million for the 9M20. |
|---|---|
| ● | 3Q21 Adjusted EBITDA including associated companies reached US$ 183.7 million, compared to US$ 183.9 million in 3Q20. 9M21 Adjusted EBITDA<br> including associates reached US$ 593.3 million; a significant increase as compared to US$ 298.5 million for the 9M20. |
| ● | 3Q21 net loss reached US$ 91.9 million, compared to a US$ 14.9 million net income for the same period in 2020. 9M21 net loss was US$ 39.3<br> million, compared to a US$ 68.9 million net loss in the 9M20. It is important note that net loss for the 3Q21 and 9M21 was impacted by a US$ 66.4 million Yanacocha impairment, corresponding to BVN’s equity ownership position in this asset. |
| ● | Aligned with the Company’s strategy to focus primarily on exploration, 3Q21 exploration at operating units increased to US$ 17.1 million,<br> compared to US$ 7.6 million in 3Q20. 9M21 exploration at operating units increased to US$ 40.9 million, compared to US$ 16.1 million in 9M20. |
| ● | 3Q21 capital expenditures were US$ 24.0 million, compared to US$ 12.9 million for the same period in 2020. 9M21 capital expenditures reached<br> US$ 58.5 million, compared to US$ 35.2 million in 9M20. |
| ● | Cost Applicable to Sales (CAS) for the 9M21 reflects a US$ 43.8 million impact due to COVID-19-related expenses. |
| ● | Buenaventura’s cash position reached US$ 287.9 million as of September 30, 2021. |
| ● | Mining and ore processing activities were suspended at the Uchucchacua mine in line with Buenaventura’s strategy to reduce costs and become<br> cash neutral while enabling the Company to focus on underground exploration and optimize the current reserve exploitation sequence with a gradual operations re-start. |
Financial Highlights (in millions of US$, except EPS figures):
| 3Q21 | 3Q20 | Var | 9M21 | 9M20 | Var | |
|---|---|---|---|---|---|---|
| Total Revenues | 220.4 | 228.2 | -3% | 647.1 | 440.5 | 47% |
| Operating Income | -13.6 | 12.7 | N.A. | -19.7 | -64.8 | 70% |
| EBITDA Direct Operations | 39.5 | 68.5 | -42% | 141.6 | 88.1 | 61% |
| EBITDA Including Affiliates | 183.7 | 183.9 | 0% | 593.3 | 298.5 | 99% |
| Net Income | -91.6 | 14.9 | -714% | -39.3 | -68.9 | -43% |
| EPS | -0.36 | 0.06 | -714% | -0.15 | -0.27 | -43% |
(*) As of September 30, 2021, Buenaventura had a weighted average number of shares outstanding of 253,986,867.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 2 of 25 |
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| Operating Revenues |
| --- |
3Q21 net sales were US$ 216.9 million, as compared to US$ 223.4 million reported in 3Q20; a slight year-on-year decrease driven by lower gold and silver prices during the quarter and a decrease in gold, lead and zinc volume sold.
3Q21 royalty income decreased 28% to US$ 3.4 million, from US$ 4.8 million in 3Q20. This was due to a 26% decrease in Yanacocha revenues.
| Operating Highlights | 3Q21 | 3Q20 | % | 9M21 | 9M20 | % |
|---|---|---|---|---|---|---|
| Net Sales<br><br> <br>(in millions of US$) | 216.9 | 223.4 | -3% | 634.8 | 426.4 | 49% |
| Average Realized Gold Price (US$/oz) ^(1) (2)^ | 1,764 | 1,939 | -9% | 1,771 | 1,835 | -3% |
| Average Realized Gold Price (US$/oz) Inc. Affiliates ^(2)(3)^ | 1,770 | 1,923 | -8% | 1,783 | 1,766 | 1% |
| Average Realized Silver Price (US$/oz) ^(1) (2)^ | 23.94 | 27.19 | -12% | 25.98 | 20.92 | 24% |
| Average Realized Lead Price (US$/MT)^(1) (2)^ | 2,412 | 1,659 | 45% | 2,249 | 1,620 | 39% |
| Average Realized<br><br> <br>Zinc Price (US$/MT)^(1) (2)^ | 3,048 | 2,349 | 30% | 3,088 | 2,005 | 54% |
| Average Realized Copper Price (US$/MT)^(1) (2)^ | 9,488 | 6,448 | 47% | 9,553 | 5,875 | 63% |
| Volume Sold | 3Q21 | 3Q20 | % | 9M21 | 9M20 | % |
| --- | --- | --- | --- | --- | --- | --- |
| Consolidated Gold Oz ^(1)^ | 40,633 | 42,462 | -4% | 100,396 | 87,537 | 15% |
| Gold Oz including Associated Companies^(3)^ | 81,946 | 87,713 | -7% | 221,324 | 229,565 | -4% |
| Consolidated Silver Oz ^(1)^ | 3,426,079 | 2,794,158 | 23% | 10,107,830 | 7,264,405 | 39% |
| Consolidated Lead MT ^(1)^ | 5,918 | 9,493 | -38% | 17,435 | 20,850 | -16% |
| Consolidated Zinc MT ^(1)^ | 11,114 | 20,347 | -45% | 34,396 | 40,402 | -15% |
| Consolidated Copper MT ^(1)^ | 8,691 | 8,811 | -1% | 26,207 | 20,034 | 31% |
| (1) | Buenaventura Consolidated figure includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal. | |||||
| --- | --- | |||||
| (2) | The realized price takes into account the adjustments of quotational periods. | |||||
| --- | --- | |||||
| (3) | Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.095% of Coimolache and 43.65% of Yanacocha. | |||||
| --- | --- |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 3 of 25 |
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| Production and Operating Costs |
| --- |
Buenaventura’s 3Q21 equity gold production was 80,263 ounces, compared to 81,595 ounces produced in 3Q20. Silver equity production increased by 20% year on year. Lead equity production decreased by 23% year on year. Additionally, zinc equity production decreased by 32% year on year. The Company’s 3Q21 copper production decreased slightly year on year, by 1%.
| Equity Production | 3Q21 | 3Q20 | % | 9M21 | 9M20 | % |
|---|---|---|---|---|---|---|
| Gold Oz Direct Operations^(1)^ | 39,927 | 36,115 | 11% | 97,385 | 90,071 | 8% |
| Gold Oz including Associated^(2)^ Companies | 80,263 | 81,595 | -2% | 216,551 | 232,776 | -7% |
| Silver Oz Direct Operations^(1)^ | 3,315,672 | 2,437,019 | 36% | 9,744,092 | 7,442,716 | 31% |
| Silver Oz including Associated Companies | 3,556,937 | 2,975,584 | 20% | 10,574,783 | 8,780,896 | 20% |
| Lead MT | 5,614 | 7,331 | -23% | 16,203 | 17,617 | -8% |
| Zinc MT | 10,810 | 15,904 | -32% | 32,136 | 32,768 | -2% |
| Copper MT Direct Operations^(1)^ | 5,618 | 5,667 | -1% | 16,958 | 13,193 | 29% |
| Copper MT including Associated Companies^(3)^ | 25,665 | 24,996 | 3% | 74,581 | 66,362 | 12% |
| Consolidated Production | 3Q21 | 3Q20 | % | 9M21 | 9M20 | % |
| --- | --- | --- | --- | --- | --- | --- |
| Gold Oz^(4)^ | 44,796 | 39,797 | 13% | 109,023 | 98,690 | 10% |
| Silver Oz^(4)^ | 3,898,613 | 3,021,550 | 29% | 11,574,925 | 8,397,762 | 38% |
| Lead MT^(4)^ | 6,676 | 10,487 | -36% | 19,175 | 23,723 | -19% |
| Zinc MT^(4)^ | 14,254 | 24,497 | -42% | 42,839 | 48,859 | -12% |
| Copper MT^(4)^ | 9,146 | 9,211 | -1% | 27,606 | 21,430 | 29% |
| (1) | Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 61.43% of El Brocal. | |||||
| --- | --- | |||||
| (2) | Based on 100% of Buenaventura´s operating units, 53.06% of La Zanja, 61.43% of el Brocal, 40.095% of Coimolache and 43.65% of Yanacocha. | |||||
| --- | --- | |||||
| (3) | Based on 100% of Buenaventura´s operating units, 61.43% of el Brocal and 19.58% of Cerro Verde. | |||||
| --- | --- | |||||
| (4) | Based on 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal. | |||||
| --- | --- |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 4 of 25 |
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Tambomayo (100% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | Oz | 17,837 | 16,108 | 11% | 51,148 | 47,778 | 7% |
| Silver | Oz | 509,836 | 395,913 | 29% | 1,227,151 | 1,191,454 | 3% |
| Cost Applicable to Sales | |||||||
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | US$/Oz | 973 | 821 | 18% | 922 | 910 | 1% |
3Q21 gold production at Tambomayo increased 11% year on year, primarily due to a 36% increase in ore milled. However, gold grade decreased by 26% during the quarter due to the change in ore stope sequencing. A gradual gold grade recovery is expected during the fourth quarter of 2021.
Cost Applicable to Sales (CAS) increased to 973 US$/Oz in 3Q21, from 821 US$/Oz in 3Q20, primarily due to a year on year increase in concentrates sold with a correlating 70% increase in commercial deductions, as the Company sold more doré bars during the third quarter 2020. Third quarter 2021 CAS also increased during the third quarter 2021 due to mine development ground support which was more significant than expected. COVID-19 related expenses also increased by US$ 0.3 M, year on year.
Orcopampa (100% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | Oz | 15,547 | 15,096 | 3% | 30,663 | 30,869 | -1% |
| Silver | Oz | 4,716 | 2,774 | 70% | 7,539 | 6,655 | 13% |
| Cost Applicable to Sales | |||||||
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | US$/Oz | 1,147 | 754 | 52% | 1,476 | 820 | 80% |
Increased 3Q21 gold production at Orcopampa was primarily due to a 176% year on year increase in ore volume treated. The increase in ore treated resulted from early production from the Pucara Ramal 4, 5 and 6 vein system and low grade stockpiles near the processing plant. Cost Applicable to Sales (CAS) increased to 1,147 US$/Oz in 3Q21, compared to 754 US$/Oz in 3Q20, primarily due to a 166% increase in exploration expenses. COVID-19 related expenses also increased by US$ 0.9 M year on year.
La Zanja (53.06% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | Oz | 5,967 | 5,087 | 17% | 14,322 | 11,411 | 26% |
| Silver | Oz | 24,011 | 29,728 | -19% | 71,573 | 57,558 | 24% |
| Cost Applicable to Sales | |||||||
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | US$/Oz | 1,763 | 1,689 | 4% | 1,716 | 1,706 | 1% |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 5 of 25 |
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3Q21 gold production increased by 17% year on year due to increased volume treated with a positive gold grade reconciliation of the Pampa Verde open pit Phase 4. 3Q21 Cost Applicable to Sales (CAS) was 1,763 US$/Oz; a 4% increase compared to 1,689 US$/Oz in 3Q20 primarily due to an increase in exploration costs, to reach US$ 139k for the third quarter 2021. COVID-19 related expenses also increased by US$ 0.6 M year on year.
Coimolache (40.10% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | Oz | 29,597 | 26,473 | 12% | 86,107 | 62,517 | 38% |
| Silver | Oz | 159,072 | 187,379 | -15% | 526,393 | 454,337 | 16% |
| Cost Applicable to Sales | |||||||
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Gold | US$/Oz | 973 | 800 | 22% | 1,213 | 884 | 37% |
3Q21 gold production at Coimolache increased by 12% year on year, primarily due to a 5% increase in gold grade driven by a positive reconciliation at the Cienaga and Mirador open pits. The recovery rate also increased by 39% despite a decrease in ore treated. 3Q21 Cost Applicable to Sales (CAS) increased 16% to 973 US$/Oz; compared to 800 US$/Oz in 3Q20, mainly due to a significant US$ 1.7 M increase in exploration expenses. COVID-19 related expenses also increased by US$ 0.3 M year on year.
Uchucchacua (100% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Silver | Oz | 1,220,393 | 790,313 | 54% | 3,732,391 | 3,725,784 | 0% |
| Zinc | MT | 1,928 | 928 | 108% | 6,203 | 3,750 | 65% |
| Lead | MT | 1,830 | 756 | 142% | 4,836 | 3,782 | 28% |
| Cost Applicable to Sales | |||||||
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Silver | US$/Oz | 25.98 | 27.65 | -6% | 27.84 | 19.46 | 43% |
3Q21 silver production at Uchucchacua increased by 54%, primarily due to an increase in ore treated despite the suspension of operations subsequent to the local community strike initiated on September 13, 2021. Production was also adversely affected by a reduced workforce during 2021 due to continued COVID-19 related personnel restrictions. 3Q21 Cost Applicable to Sales (CAS) decreased by 6% year on year, mainly due to increased volume sold. COVID-19 related expenses also increased by US$ 1.2 M year on year.
Production suspension at Uchucchacua enables the Company to achieve the most significant cash preservation while de-risking future negative free cash flow generation through the following:
| ● | Workforce optimization in order to reduce fixed costs (estimated between US$ 2.0M and US$ 5.0M per year). |
|---|---|
| ● | Decreased COVID-19-related expenses (estimated between US$ 12.0M and US$ 15.0M in 2022). |
| --- | --- |
| ● | Re-evaluation of existing contracts to renegotiate, reconcile and streamline the Company’s contractor base (estimated between US$7.0M and US$9.0M per year). |
| --- | --- |
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This strategy will be implemented during the 2021-2023 period with a gradual and efficient restart of operations once related goals and objectives have been achieved; prioritizing exploration over ore extraction to increase reserves in the long term. Importantly, suspension of Uchucchacua mining and ore processing activities will not affect progress related to the high-grade Yumpag project, expected to begin production in early 2024.
Julcani (100% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Silver | Oz | 657,494 | 323,495 | 103% | 1,876,596 | 1,010,224 | 86% |
| Cost Applicable to Sales | |||||||
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Silver | US$/Oz | 16.79 | 11.10 | 51% | 16.89 | 14.65 | 15% |
3Q21 silver production increased by 103% year on year due to a 192% increase in ore treated despite lower silver grades. Third quarter 2021 silver production includes 28,945 silver ounces derived from tailings retreatment. 3Q21 Cost Applicable to Sales (CAS) was 16.79 US$/Oz; a 51% year on year increase due to a significant US$ 1.1 M increase in exploration expenses. COVID-19 related expenses also increased by US$ 0.4 M year on year.
El Brocal (61.43% owned by Buenaventura)
| Production | |||||||
|---|---|---|---|---|---|---|---|
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Copper | MT | 9,146 | 9,190 | 0% | 27,606 | 21,356 | 29% |
| Zinc | MT | 8,930 | 22,277 | -60% | 27,748 | 41,719 | -33% |
| Silver | Oz | 1,482,163 | 1,479,327 | 0% | 4,659,676 | 2,406,087 | 94% |
| Cost Applicable to Sales | |||||||
| 3Q21 | 3Q20 | Var % | 9M21 | 9M20 | Var % | ||
| Copper | US$/MT | 6,819 | 4,843 | 41% | 6,304 | 5,022 | 26% |
| Zinc | US$/MT | 1,814 | 1,807 | 0% | 1,760 | 1,803 | -2% |
El Brocal 3Q21 copper production was in line with the same period of 2020. Tajo Norte 3Q21 zinc production decreased by 60% year on year due to stripping delays with a negative reconciliation, resulting in decreased ore treated with lower ore grades and recoveries.
3Q21 Copper Cost Applicable to Sales (CAS) increased by 41% year on year, mainly due to increased exploration during the quarter to offset decreased 3Q20 exploration, with a related US$ 3.8 million increase in related expenses. 3Q21 zinc CAS was in line with 3Q20 CAS. COVID-19 related expenses also increased by US$ 2.5 M year on year.
| General and Administrative Expenses |
|---|
3Q21 General and Administrative expenses were US$ 15.6 million; a 7% decrease as compared to US$ 16.8 million in 3Q20.
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| Exploration in Non-Operating Areas |
| --- |
3Q21 Non-Operating Area exploration costs were US$ 3.5 million, compared with US$ 1.8 million in 3Q20. During the third quarter 2021, Buenaventura focused exploration primarily on its Emperatriz project, resulting in US$ 1.6 million in exploration costs during 3Q21. Increased exploration during the quarter is aligned with Buenaventura’s Strategy to focus on extending LOM.
| Net gain (loss) for currency exchange difference |
|---|
3Q21 currency exchange related net loss was US$ 31.9 million, compared with a net loss of US$ 0.8 million in 3Q20. The increased FX effect is due to a year on year weakening of the PEN relative to the US dollar (3.599 PEN/USD in 2020 vs 4.136 PEN/USD). SUNAT’s claim is registered in Peruvian Soles as part of ‘accounts receivables’ therefore, a higher exchange rate decreases the total amount when converted to dollars.
| Finance Costs |
|---|
3Q21 Finance Costs were US$ 26.7 million; a 260% increase as compared to US$ 7.4 million in 3Q20. This is mainly due to increased commissions associated with the guarantee letters issued to SUNAT as well as interest associated with by the Company’s July 2021 bond issuance.
| Share in Associated Companies |
|---|
During 3Q21, Buenaventura’s share in associated companies decreased to US$ -30.9 million, compared to US$ 23.5 million reported in 3Q20, comprised of:
| Share in the Result of Associates<br><br> <br>(in millions of US$) | 3Q21 | 3Q20 | Var | 9M21 | 9M20 | Var |
|---|---|---|---|---|---|---|
| Cerro Verde | 57.4 | 22.7 | 153% | 158.6 | 24.3 | 553% |
| Yanacocha | -89.1 | -1.7 | 5074% | -84.0 | -10.1 | N.A. |
| Coimolache | 0.8 | 3.0 | -74% | 8.6 | 3.3 | 163% |
| Other minor | 0.0 | -0.3 | N.A. | -0.6 | -0.4 | 44% |
| Total | -30.9 | 23.5 | -231% | 82.4 | 16.8 | 390% |
YANACOCHA
Yanacocha, which is 43.65% owned by Buenaventura, 3Q21 gold production reached 65,220 ounces; 28,469 ounces of which were attributable to Buenaventura. This represents an 18% decrease as compared to the 79,874 ounces produced in 3Q20; 34,865 ounces of which were attributable to Buenaventura.
Yanacocha reported a US$ 201.9 million net loss for 3Q21, compared to a US$ 18.6 million net income in 3Q20. 3Q21 CAS was 1,411 US$/Oz; a 36% increase compared to 1,036 US$/Oz in 3Q20. Net loss was adversely impacted by Yanacocha’s decision to sell all equipment and machinery at its Conga asset, with a related US$ 152.2 million impairment; US$ 66.4 million of which corresponds to BVN’s equity ownership position.
Capital expenditures at Yanacocha were US$ 39.0 million in 3Q21.
The Yanacocha Sulfides project
| ● | Full funds decision postponed to 2H22. |
|---|---|
| ● | Investment of at least $500M in key activities including detailed-engineering, long-term acquisition, earth works and campsite through 2022. |
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CERRO VERDE
Cerro Verde (19.58% owned by Buenaventura) 3Q21 copper production was 102,382 MT, 20,046 MT of which is attributable to Buenaventura; an increase as compared to 98,718 MT produced in 3Q20; 19,329 MT of which was attributable to Buenaventura.
Cerro Verde reported 3Q21 net income of US$ 293.3 million, compared to net income of US$ 115.8 million in 3Q20. This is primarily due to a 56% year on year net sales increase, mainly due to a higher average realized copper price of US$ 4.07 per pound in the third quarter of 2021, compared to US$ 3.20 per pound in the third quarter of 2020. This increase was partially offset by a year on year income tax increase.
3Q21 capital expenditures at Cerro Verde were US$ 48.8 million.
COIMOLACHE (Tantahuatay operation)
Coimolache, which is 40.10% owned by Buenaventura, 3Q21 attributable contribution to net income was US$ 0.8 million, as compared to US$ 3.0 million attributable contribution to net income in 3Q20.
***
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*, El Brocal, La Zanja and Coimolache.
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 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 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 in<br> 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 its<br> 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 result<br> of a variety of factors discussed elsewhere in this Press Release. |
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| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 9 of 25 |
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**Tables to follow**
APPENDIX 1
| Equity Participation in<br><br> <br> <br>Subsidiaries and Associates (as of September 30, 2021) | ||
|---|---|---|
| BVN | Operating | |
| Equity % | Mines / Business | |
| El Molle Verde S.A.C* | 100.00 | Trapiche Project |
| Minera La Zanja S.A* | 53.06 | La Zanja |
| Sociedad Minera El Brocal S.A.A* | 61.43 | Colquijirca and Marcapunta |
| Compañía Minera Coimolache S.A. ** | 40.10 | Tantahuatay |
| Minera Yanacocha S.R.L. ** | 43.65 | Yanacocha |
| Sociedad Minera Cerro Verde S.A.A ** | 19.58 | Cerro Verde |
| Processadora Industrial Rio Seco S.A* | 100.00 | Rio Seco chemical plant |
| Consorcio Energético de Huancavelica S.A* | 100.00 | Energy – Huanza Hydroelectrical plant |
(*) Consolidated
(**) Equity Accounting
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 10 of 25 |
|---|
APPENDIX 2
| 3Q21 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Gold Production | 14 | 17 | ||||||
| Mining Unit | Operating Results | Unit | 3Q21 | 3Q20 | △% | 9M21 | 9M20 | △ % |
| Underground | ||||||||
| Tambomayo | Ore Milled | DMT | 153,248 | 112,489 | 36% | 415,997 | 359,553 | 16% |
| Ore Grade | Gr/MT | 3.86 | 5.21 | -26% | 4.42 | 5.04 | -12% | |
| Recovery Rate | % | 93.68 | 85.53 | 10% | 86.52 | 81.97 | 6% | |
| Ounces Produced | Oz | 17,837 | 16,108 | 11% | 51,148 | 47,778 | 7% | |
| Orcopampa | Ore Milled | DMT | 78,474 | 28,386 | 176% | 127,133 | 64,078 | 98% |
| Ore Grade | Gr/MT | 6.01 | 17.01 | -65% | 7.61 | 15.31 | -50% | |
| Recovery Rate | % | 102.58 | 97.24 | 5% | 98.62 | 97.37 | 1% | |
| Ounces Produced* | Oz | 15,547 | 15,096 | 3% | 30,663 | 30,869 | -1% | |
| Open Pit | ||||||||
| La Zanja | Ounces Produced | Oz | 5,967 | 5,087 | 17% | 14,322 | 11,411 | 26% |
| Coimolache | Ounces Produced | Oz | 29,597 | 26,473 | 12% | 56,510 | 62,517 | -10% |
| Silver Production | ||||||||
| Mining Unit | Operating Results | Unit | 3Q21 | 3Q20 | △% | 9M21 | 9M20 | △ % |
| Underground | ||||||||
| Tambomayo | Ore Milled | DMT | 153,248 | 112,489 | 36% | 415,997 | 359,553 | 16% |
| Ore Grade | Oz/MT | 3.80 | 4.24 | -10% | 3.39 | 4.13 | -18% | |
| Recovery Rate | % | 87.48 | 83.07 | 5% | 87.09 | 80.31 | 8% | |
| Ounces Produced | Oz | 509,836 | 395,913 | 29% | 1,227,151 | 1,191,454 | 3% | |
| Uchucchacua | Ore Milled | DMT | 274,547 | 84,772 | 224% | 757,945 | 402,544 | 88% |
| Ore Grade | Oz/MT | 6.08 | 10.14 | -40% | 6.45 | 10.12 | -36% | |
| Recovery Rate | % | 74.18 | 91.97 | -19% | 76.35 | 91.50 | -17% | |
| Ounces Produced | Oz | 1,220,393 | 790,313 | 54% | 3,732,391 | 3,725,784 | 0% | |
| Julcani | Ore Milled | DMT | 35,400 | 12,114 | 192% | 97,563 | 45,039 | 117% |
| Ore Grade | Oz/MT | 18.52 | 22.95 | -19% | 19.31 | 21.94 | -12% | |
| Recovery Rate | % | 95.88 | 97.28 | -1% | 96.52 | 96.83 | 0% | |
| Ounces Produced* | Oz | 657,494 | 323,495 | 103% | 1,876,596 | 1,010,224 | 86% | |
| Marcapunta | Ore Milled | DMT | 630,907 | 525,419 | 20% | 1,787,377 | 1,187,428 | 51% |
| Ore Grade | Oz/MT | 1.15 | 0.70 | 64% | 0.99 | 0.70 | 40% | |
| Recovery Rate | % | 56.66 | 72.61 | -22% | 53.41 | 68.50 | -22% | |
| Ounces Produced | Oz | 411,542 | 267,271 | 54% | 941,667 | 572,945 | 64% | |
| Open Pit | ||||||||
| Tajo Norte<br><br> Cu - Ag | Ore Milled | DMT | 70,604 | - | - | 293,752 | - | - |
| Ore Grade | Oz/MT | 4.07 | - | - | 4.64 | - | - | |
| Recovery Rate | % | 61.96 | - | - | 56.17 | - | - | |
| Ounces Produced | Oz | 178,261 | - | - | 765,016 | - | - | |
| Tajo Norte<br><br> Pb - Zn | Ore Milled | DMT | 623,106 | 919,572 | -32% | 1,782,831 | 2,009,589 | -11% |
| Ore Grade | Oz/MT | 2.17 | 1.78 | 22% | 2.50 | 1.27 | 96% | |
| Recovery Rate | % | 66.00 | 74.17 | -11% | 68.60 | 71.58 | -4% | |
| Ounces Produced | Oz | 892,360 | 1,212,056 | -26% | 2,952,992 | 1,833,143 | 61% |
(*) Includes 28,945 ounces from retreatment of tailings.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 11 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Zinc Production | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Mining Unit | Operating Results | Unit | 3Q21 | 3Q20 | △% | 9M21 | 9M20 | △ % |
| Underground | ||||||||
| Tambomayo | Ore Milled | DMT | 153,248 | 112,489 | 36% | 415,997 | 359,553 | 16% |
| Ore Grade | % | 2.29 | 2.19 | 5% | 2.58 | 1.81 | 42% | |
| Recovery Rate | % | 96.76 | 52.51 | 84% | 82.96 | 52.07 | 59% | |
| MT Produced | MT | 3,397 | 1,292 | 163% | 8,888 | 3,390 | 162% | |
| Uchucchacua | Ore Milled | DMT | 274,547 | 84,772 | 224% | 757,945 | 402,544 | 88% |
| Ore Grade | % | 1.69 | 1.81 | -7% | 1.61 | 1.58 | 2% | |
| Recovery Rate | % | 45.80 | 60.37 | -24% | 50.75 | 58.95 | -14% | |
| MT Produced | MT | 1,928 | 928 | 108% | 6,203 | 3,750 | 65% | |
| Open Pit | ||||||||
| Tajo Norte<br><br> Pb - Zn | Ore Milled | DMT | 623,106 | 919,572 | -32% | 1,782,831 | 2,009,589 | -11% |
| Ore Grade | % | 2.51 | 4.09 | -38% | 2.47 | 3.72 | -34% | |
| Recovery Rate | % | 57.01 | 59.28 | -4% | 60.85 | 55.82 | 9% | |
| MT Produced | MT | 8,930 | 22,277 | -60% | 27,748 | 41,719 | -33% | |
| Copper Production | ||||||||
| Mining Unit | Operating Results | Unit | 3Q21 | 3Q20 | △% | 9M21 | 9M20 | △ % |
| Underground | ||||||||
| Marcapunta | Ore Milled | DMT | 630,907 | 525,419 | 20% | 1,787,377 | 1,187,428 | 51% |
| Ore Grade | % | 1.71 | 1.90 | -10% | 1.69 | 1.94 | -13% | |
| Recovery Rate | % | 80.94 | 91.86 | -12% | 84.27 | 92.63 | -9% | |
| MT Produced | MT | 8,711 | 9,190 | -5% | 25,495 | 21,356 | 19% | |
| Tajo Norte<br><br> Cu - Ag | Ore Milled | DMT | 70,604 | - | - | 293,752 | - | - |
| Ore Grade | % | 0.94 | - | - | 0.99 | - | - | |
| Recovery Rate | % | 65.78 | - | - | 62.95 | - | - | |
| MT Produced | MT | 435 | - | - | 2,111 | - | - |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 12 of 25 |
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APPENDIX 3: Adjusted EBITDA Reconciliation (in thousand US$)
| EBITDA RECONCILIATION<br> (in thousand US) | |||
|---|---|---|---|
| 3Q20 | 9M21 | 9M20 | |
| Net Income | 19,450 | -40,544 | -80,031 |
| Add / Substract: | 49,007 | 182,133 | 168,152 |
| Depreciation and Amortization in cost of sales | 56,857 | 140,110 | 130,495 |
| Provision (credit) for income tax, net | -23,488 | -82,441 | -16,836 |
| Interest expense | 7,410 | 48,560 | 23,130 |
| Loss (gain) on currency exchange difference | -5,787 | 1,093 | 8,670 |
| Provision of bonuses and compensations | 2,541 | 8,756 | 10,569 |
| Loss from discontinued operations | 874 | 2,715 | 2,749 |
| Workers' participation provision | 776 | 40,861 | 3,891 |
| Depreciation and amortization in administration expenses | 1,468 | 2,384 | 4,280 |
| Depreciation and Amortization in other, net | 8,021 | 15,744 | 2,980 |
| Provision (reversal) for contingencies | 26 | 80 | 77 |
| Share in associated companies by the equity method, net | -928 | -4,243 | -2,240 |
| Write-off of fixed assets | 1,237 | -284 | 387 |
| Impairment (reversal) of inventories | - | 2,035 | - |
| Interest income | - | 6,763 | - |
| EBITDA Buenaventura Direct Operations | 68,457 | 141,589 | 88,121 |
| EBITDA Yanacocha (43.65%) | 29,800 | 84,485 | 67,373 |
| EBITDA Cerro Verde (19.58%) | 73,356 | 331,501 | 118,889 |
| EBITDA Coimolache (40.095%) | 12,245 | 35,733 | 24,083 |
| EBITDA Buenaventura + All Associates | 183,858 | 593,309 | 298,466 |
All values are in US Dollars.
*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 (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
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 13 of 25 |
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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 nine months ended September 30, 2015 and 2016, and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units. The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and nine months ended September 30, 2015 and 2016 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 14 of 25 | |||||||
|---|---|---|---|---|---|---|---|
| Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| to consolidated Cost applicable to sales: | |||||||
| For the 3 months ended September 30 | For the 9 months ended September 30 | ||||||
| 2021 | 2020 | 2021 | 2020 | ||||
| (in thousands of US) | |||||||
| Consolidated Cost of sales excluding depreciation and amortization | 112,052 | 392,990 | 259,032 | ||||
| Add: | |||||||
| Consolidated Exploration in units in operation | 7,598 | 40,901 | 16,063 | ||||
| Consolidated Commercial deductions | 56,429 | 146,626 | 126,430 | ||||
| Consolidated Selling expenses | 5,289 | 14,690 | 12,067 | ||||
| Consolidated Cost applicable to sales | 181,369 | 595,208 | 413,592 | ||||
| Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization | |||||||
| (by mine and mineral) to consolidated Cost of sales: |
All values are in US Dollars.
| For the 3 months ended September 30 | For the 9 months ended September 30 | ||||||
|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||||
| Cost of sales by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 72 | 107 | -52 | ||||
| Julcani, Silver | 7,398 | 21,847 | 9,951 | ||||
| Julcani, Lead | 115 | 320 | 144 | ||||
| Julcani, Copper | 19 | 50 | 26 | ||||
| Orcopampa, Gold | 14,137 | 37,452 | 21,104 | ||||
| Orcopampa, Silver | 57 | 143 | 54 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 18 | 0 | ||||
| Uchucchacua, Silver | 19,547 | 64,218 | 47,276 | ||||
| Uchucchacua, Lead | 3,003 | 6,689 | 3,231 | ||||
| Uchucchacua, Zinc | 3,426 | 10,324 | 3,631 | ||||
| Tambomayo, Gold | 11,137 | 32,192 | 28,098 | ||||
| Tambomayo, Silver | 4,234 | 10,756 | 8,172 | ||||
| Tambomayo, Zinc | 1,687 | 7,830 | 1,925 | ||||
| Tambomayo, Lead | 2,788 | 4,851 | 2,227 | ||||
| La Zanja, Gold | 8,916 | 22,788 | 21,193 | ||||
| La Zanja, Silver | 601 | 1,985 | 1,811 | ||||
| El Brocal, Gold | 2,700 | 5,444 | 4,050 | ||||
| El Brocal, Silver | 12,320 | 35,392 | 16,713 | ||||
| El Brocal, Lead | 2,345 | 6,021 | 9,491 | ||||
| El Brocal, Zinc | 8,977 | 25,544 | 29,112 | ||||
| El Brocal, Copper | 33,164 | 88,679 | 48,400 | ||||
| Other Small Units, Gold | |||||||
| Other Small Units, Silver | |||||||
| Other Small Units, Lead | |||||||
| Other Small Units, Zinc | |||||||
| Non Mining Units | 2,043 | 10,338 | 2,475 | ||||
| Consolidated Cost of sales, excluding depreciation and amortization | 138,687 | 392,990 | 259,032 |
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<br> mining units: | |||||||
|---|---|---|---|---|---|---|---|
| For the 3 months ended September 30 | For the 9 months ended September 30 | ||||||
| 2021 | 2020 | 2021 | 2020 | ||||
| Exploration expenses in units in operation by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 14 | 21 | -9 | ||||
| Julcani, Silver | 1,466 | 4,325 | 1,774 | ||||
| Julcani, Lead | 23 | 63 | 26 | ||||
| Julcani, Copper | 4 | 10 | 5 | ||||
| Orcopampa, Gold | 3,574 | 7,817 | 2,855 | ||||
| Orcopampa, Silver | 14 | 30 | 7 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 2 | 0 | ||||
| Uchucchacua, Silver | 2,598 | 7,543 | 3,287 | ||||
| Uchucchacua, Lead | 399 | 786 | 225 | ||||
| Uchucchacua, Zinc | 455 | 1,213 | 252 | ||||
| Tambomayo, Gold | 1,655 | 4,080 | 3,123 | ||||
| Tambomayo, Silver | 629 | 1,363 | 908 | ||||
| Tambomayo, Lead | 251 | 615 | 248 | ||||
| Tambomayo, Zinc | 414 | 992 | 214 | ||||
| La Zanja, Gold | 130 | 253 | 1 | ||||
| La Zanja, Silver | 9 | 22 | 0 | ||||
| El Brocal, Gold | 246 | 398 | 118 | ||||
| El Brocal, Silver | 1,122 | 2,585 | 488 | ||||
| El Brocal, Lead | 214 | 440 | 277 | ||||
| El Brocal, Zinc | 817 | 1,866 | 850 | ||||
| El Brocal, Copper | 3,020 | 6,477 | 1,414 | ||||
| Non Mining Units | 0 | 0 | 0 | ||||
| Consolidated Exploration expenses in units in operation | 17,056 | 40,901 | 16,063 |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 15 of 25 | |||||||
|---|---|---|---|---|---|---|---|
| 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 September 30 | For the 9 months ended September 30 | ||||||
| 2021 | 2020 | 2021 | 2020 | ||||
| Commercial Deductions in units in operation by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 18 | 25 | -3 | ||||
| Julcani, Silver | 1,190 | 3,342 | 1,565 | ||||
| Julcani, Lead | 18 | 49 | 22 | ||||
| Julcani, Copper | 2 | 7 | 5 | ||||
| Mallay, Gold | 0 | 0 | 0 | ||||
| Mallay, Silver | 0 | 0 | 0 | ||||
| Mallay, Lead | 0 | 0 | 0 | ||||
| Mallay, Zinc | 0 | 0 | 0 | ||||
| Orcopampa, Gold | 127 | 211 | 192 | ||||
| Orcopampa, Silver | 1 | 4 | 9 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 2 | 1 | ||||
| Uchucchacua, Silver | 5,954 | 19,733 | 13,759 | ||||
| Uchucchacua, Lead | 750 | 1,616 | 816 | ||||
| Uchucchacua, Zinc | 1,889 | 7,862 | 1,560 | ||||
| Tambomayo, Gold | 1,920 | 5,155 | 3,122 | ||||
| Tambomayo, Silver | 848 | 2,094 | 2,361 | ||||
| Tambomayo, Lead | 280 | 817 | 671 | ||||
| Tambomayo, Zinc | 1,260 | 3,658 | 2,049 | ||||
| La Zanja, Gold | 39 | 96 | 347 | ||||
| La Zanja, Silver | 3 | 14 | 18 | ||||
| El Brocal, Gold | 1,815 | 4,150 | 4,114 | ||||
| El Brocal, Silver | 5,756 | 17,383 | 11,580 | ||||
| El Brocal, Lead | 883 | 2,446 | 5,367 | ||||
| El Brocal, Zinc | 3,262 | 11,952 | 30,831 | ||||
| El Brocal, Copper | 21,848 | 66,012 | 48,044 | ||||
| Non Mining Units | 0 | 0 | 0 | ||||
| Consolidated Commercial deductions in units in operation | 47,864 | 146,626 | 126,430 |
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 September 30 | For the 9 months ended September 30 | ||||||
| 2021 | 2020 | 2021 | 2020 | ||||
| Selling expenses by mine and mineral | (in thousands of US) | ||||||
| Julcani, Gold | 1 | 2 | -1 | ||||
| Julcani, Silver | 130 | 364 | 234 | ||||
| Julcani, Lead | 2 | 5 | 3 | ||||
| Julcani, Copper | 0 | 1 | 1 | ||||
| Orcopampa, Gold | 112 | 233 | 324 | ||||
| Orcopampa, Silver | 0 | 1 | 1 | ||||
| Orcopampa, Copper | 0 | 0 | 0 | ||||
| Uchucchacua, Gold | 0 | 1 | 0 | ||||
| Uchucchacua, Silver | 663 | 2,132 | 1,845 | ||||
| Uchucchacua, Lead | 102 | 222 | 126 | ||||
| Uchucchacua, Zinc | 116 | 343 | 142 | ||||
| Tambomayo, Gold | 795 | 2,109 | 1,704 | ||||
| Tambomayo, Silver | 302 | 705 | 496 | ||||
| Tambomayo, Lead | 120 | 318 | 135 | ||||
| Tambomayo, Zinc | 199 | 513 | 117 | ||||
| La Zanja, Gold | 30 | 71 | 74 | ||||
| La Zanja, Silver | 2 | 6 | 6 | ||||
| El Brocal, Gold | 92 | 230 | 222 | ||||
| El Brocal, Silver | 421 | 1,493 | 915 | ||||
| El Brocal, Lead | 80 | 254 | 519 | ||||
| El Brocal, Zinc | 307 | 1,078 | 1,593 | ||||
| El Brocal, Copper | 1,134 | 3,741 | 2,649 | ||||
| Non Mining Units | 325 | 869 | 962 | ||||
| Consolidated Selling expenses | 4,934 | 14,690 | 12,067 |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 16 of 25 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| JULCANI | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3Q<br> 2021 | 3Q 2020 | |||||||||||
| 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) | 72 | 7,398 | 115 | - | 19 | 7,605 | 33 | 2,213 | 26 | - | 6 | 2,278 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 14 | 1,466 | 23 | - | 4 | 1,507 | 6 | 391 | 5 | - | 1 | 402 |
| Commercial Deductions (US$000) | 18 | 1,190 | 18 | - | 2 | 1,229 | 13 | 522 | 5 | - | 2 | 542 |
| Selling Expenses (US$000) | 1 | 130.36 | 2.03 | - | 0 | 134 | 1 | 85 | 1 | - | 0 | 87 |
| Cost Applicable to Sales (US$000) | 106 | 10,185 | 158 | - | 26 | 10,475 | 53 | 3,210 | 37 | - | 9 | 3,309 |
| Divide: | ||||||||||||
| Volume Sold | 64 | 606,737 | 83 | - | 14 | Not Applicable | 70 | 289,258 | 58 | - | 13 | Not Applicable |
| CAS | 1,665 | 16.79 | 1,914 | - | 1,841 | Not Applicable | 756 | 11.10 | 632 | - | 743 | Not Applicable |
| ORCOPAMPA | ||||||||||||
| 3Q<br> 2021 | 3Q 2020 | |||||||||||
| 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) | 14,137 | 57 | - | - | - | 14,194 | 11,284 | 32 | - | - | - | 11,316 |
| Add: | - | |||||||||||
| Exploration Expenses (US$000) | 3,574 | 14 | - | - | - | 3,588 | 1,345 | 4 | - | - | - | 1,349 |
| Commercial Deductions (US$000) | 127 | 1 | - | - | - | 128 | 104 | 8 | - | - | - | 113 |
| Selling Expenses (US$000) | 112 | 0 | - | - | - | 112 | 202 | 1 | - | - | - | 203 |
| Cost Applicable to Sales (US$000) | 17,950 | 72 | - | - | - | 18,022 | 12,936 | 45 | - | - | - | 12,981 |
| Divide: | ||||||||||||
| Volume Sold | 15,646 | 4,709 | - | - | - | Not Applicable | 17,159 | 3,913 | - | - | - | Not Applicable |
| CAS | 1,147 | 15.27 | - | - | - | Not Applicable | 754 | 11.43 | - | - | - | Not Applicable |
| UCHUCCHACUA | ||||||||||||
| 3Q 2021 | 3Q 2020 | |||||||||||
| 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) | - | 19,547 | 3,003 | 3,426 | - | 25,991 | - | 17,614 | 683 | 1,122 | - | 19,419 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | - | 2,598 | 399 | 455 | - | 3,455 | - | 1,008 | 39 | 64 | - | 1,111 |
| Commercial Deductions (US$000) | - | 5,954 | 750 | 1,889 | - | 8,593 | - | 5,006 | 104 | 197 | - | 5,307 |
| Selling Expenses (US$000) | - | 663 | 102 | 116 | - | 881 | - | 580 | 22 | 37 | - | 639 |
| Cost Applicable to Sales (US$000) | - | 28,763 | 4,254 | 5,886 | - | 38,920 | - | 24,208 | 848 | 1,420 | - | 26,476 |
| Divide: | - | |||||||||||
| Volume Sold | 1,107,282 | 1,562 | 1,444 | - | Not Applicable | - | 875,489 | 738 | 699 | - | Not Applicable | |
| CAS | - | 25.98 | 2,723 | 4,077 | - | No Applicable | - | 27.65 | 1,149 | 2,032 | - | No Applicable |
| TAMBOMAYO | ||||||||||||
| 3Q<br> 2021 | 3Q 2020 | |||||||||||
| 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) | 11,137 | 4,234 | 1,687 | 2,788 | - | 19,847 | 10,919 | 3,512 | 891 | 575 | - | 15,897 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1,655 | 629 | 251 | 414 | - | 2,950 | 2,175 | 699 | 177 | 114 | - | 3,166 |
| Commercial Deductions (US$000) | 1,920 | 848 | 280 | 1,260 | - | 4,308 | 887 | 864 | 173 | 610 | - | 2,534 |
| Selling Expenses (US$000) | 795 | 302 | 120 | 199 | - | 1,417 | 681 | 219 | 56 | 36 | - | 992 |
| Cost Applicable to Sales (US$000) | 15,507 | 6,013 | 2,339 | 4,662 | - | 28,521 | 14,662 | 5,295 | 1,297 | 1,335 | - | 22,589 |
| Divide: | ||||||||||||
| Volume Sold | 15,943 | 445,525 | 1,813 | 2,304 | - | Not Applicable | 17,849 | 406,946 | 1,680 | 1,058 | - | Not Applicable |
| CAS | 973 | 13.50 | 1,291 | 2,024 | - | No Applicable | 821 | 13.01 | 772 | 1,261 | - | No Applicable |
| JULCANI | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 9M 2021 | 9M 2020 | |||||||||||
| 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) | 107 | 21,847 | 320 | - | 50 | 22,324 | -52 | 9,951 | 144 | - | 26 | 10,069 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 21 | 4,325 | 63 | - | 10 | 4,419 | -9 | 1,774 | 26 | - | 5 | 1,795 |
| Commercial Deductions (US$000) | 25 | 3,342 | 49 | - | 7 | 3,422 | -3 | 1,565 | 22 | - | 5 | 1,590 |
| Selling Expenses (US$000) | 2 | 364 | 5 | - | 1 | 372 | -1 | 234 | 3 | - | 1 | 237 |
| Cost Applicable to Sales (US$000) | 155 | 29,877 | 437 | - | 68 | 30,536 | -66 | 13,525 | 195 | - | 37 | 13,691 |
| Divide: | ||||||||||||
| Volume Sold | 119 | 1,768,507 | 286 | - | 46 | Not Applicable | 70 | 922,903 | 179 | - | 19 | No Aplicable |
| CAS | 1,301 | 16.89 | 1,524 | - | 1,461 | No Applicable | - | 14.65 | 1,093 | - | 1,939 | No Applicable |
| ORCOPAMPA | ||||||||||||
| 9M<br> 2021 | 9M 2020 | |||||||||||
| 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) | 37,452 | 143 | - | - | - | 37,596 | 21,104 | 54 | - | - | - | 21,158 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 7,817 | 30 | - | - | - | 7,847 | 2,855 | 7 | - | - | - | 2,862 |
| Commercial Deductions (US$000) | 211 | 4 | - | - | - | 215 | 192 | 9 | - | - | - | 201 |
| Selling Expenses (US$000) | 233 | 1 | - | - | - | 234 | 324 | 1 | - | - | - | 325 |
| Cost Applicable to Sales (US$000) | 45,714 | 178 | - | - | - | 45,892 | 24,475 | 71 | - | - | - | 24,546 |
| Divide: | ||||||||||||
| Volume Sold | 30,962 | 8,105 | - | - | - | Not Applicable | 29,849 | 6,497 | - | - | - | Not Applicable |
| CAS | 1,476 | 21.93 | - | - | - | No Applicable | 820 | 10.92 | - | - | - | No Applicable |
| UCHUCCHACUA | ||||||||||||
| 9M 2021 | 9M 2020 | |||||||||||
| 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) | 18 | 64,218 | 6,689 | 10,324 | - | 81,249 | - | 47,276 | 3,231 | 3,631 | - | 54,138 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 2 | 7,543 | 786 | 1,213 | - | 9,544 | - | 3,287 | 225 | 252 | - | 3,764 |
| Commercial Deductions (US$000) | 2 | 19,733 | 1,616 | 7,862 | - | 29,213 | 1 | 13,759 | 816 | 1,560 | - | 16,136 |
| Selling Expenses (US$000) | 1 | 2,132 | 222 | 343 | - | 2,698 | - | 1,845 | 126 | 142 | - | 2,113 |
| Cost Applicable to Sales (US$000) | 23 | 93,627 | 9,314 | 19,741 | - | 122,704 | 1 | 66,167 | 4,398 | 5,585 | - | 76,151 |
| Divide: | ||||||||||||
| Volume Sold | 5 | 3,363,154 | 4,025 | 4,667 | - | Not Applicable | - | 3,399,834 | 3,113 | 2,939 | - | Not Applicable |
| CAS | 4,156 | 27.84 | 2,314 | 4,230 | - | No Applicable | - | 19.46 | 1,413 | 1,900 | - | No Applicable |
| TAMBOMAYO | ||||||||||||
| 9M<br> 2021 | 9M 2020 | |||||||||||
| 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) | 32,192 | 10,756 | 4,851 | 7,830 | - | 55,630 | 28,098 | 8,172 | 2,227 | 1,925 | - | 40,422 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 4,080 | 1,363 | 615 | 992 | - | 7,050 | 3,123 | 908 | 248 | 214 | - | 4,493 |
| Commercial Deductions (US$000) | 5,155 | 2,094 | 817 | 3,658 | - | 11,724 | 3,122 | 2,361 | 671 | 2,049 | - | 8,202 |
| Selling Expenses (US$000) | 2,109 | 705 | 318 | 513 | - | 3,645 | 1,704 | 496 | 135 | 117 | - | 2,452 |
| Cost Applicable to Sales (US$000) | 43,537 | 14,918 | 6,601 | 12,994 | - | 78,049 | 36,047 | 11,936 | 3,281 | 4,305 | - | 55,569 |
| Divide: | ||||||||||||
| Volume Sold | 47,225 | 1,082,844 | 5,827 | 6,754 | - | Not Applicable | 39,634 | 1,004,636 | 3,508 | 2,860 | - | Not Applicable |
| CAS | 922 | 13.78 | 1,133 | 1,924 | - | No Applicable | 910 | 11.88 | 935 | 1,505 | - | Not Applicable |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 17 of 25 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LA ZANJA | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3Q 2021 | 3Q 2020 | |||||||||||
| 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) | 8,916 | 601 | - | - | - | 9,517 | 8,954 | 820 | - | - | - | 9,774 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 130 | 9 | - | - | - | 139 | - | - | - | - | - | - |
| Commercial Deductions (US$000) | 39 | 3 | - | - | - | 42 | 47 | 4 | - | - | - | 50 |
| Selling Expenses (US$000) | 30 | 2 | - | - | - | 32 | 27 | 3 | - | - | - | 30 |
| Cost Applicable to Sales (US$000) | 9,115 | 615 | - | - | - | 9,730 | 9,028 | 826 | - | - | - | 9,854 |
| Divide: | ||||||||||||
| Volume Sold | 5,169 | 26,683 | - | - | - | Not Applicable | 5,346 | 36,425 | - | - | - | Not Applicable |
| CAS | 1,763 | 23.04 | - | - | - | Not Applicable | 1,689 | 22.68 | - | - | - | Not Applicable |
| BROCAL | ||||||||||||
| 3Q<br> 2021 | 3Q 2020 | |||||||||||
| 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) | 2,700 | 12,320 | 2,345 | 8,977 | 33,164 | 59,506 | 1,462 | 10,423 | 4,245 | 15,899 | 20,355 | 52,384 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 246 | 1,122 | 214 | 817 | 3,020 | 5,419 | 44 | 312 | 127 | 477 | 610 | 1,570 |
| Commercial Deductions (US$000) | 1,815 | 5,756 | 883 | 3,262 | 21,848 | 33,564 | 1,520 | 7,317 | 2,251 | 16,306 | 20,489 | 47,882 |
| Selling Expenses (US$000) | 92 | 421 | 80 | 307 | 1,134 | 2,034 | 83 | 592 | 241 | 903 | 1,156 | 2,976 |
| Cost Applicable to Sales (US$000) | 4,853 | 19,619 | 3,522 | 13,363 | 59,166 | 100,523 | 3,109 | 18,644 | 6,865 | 33,585 | 42,610 | 104,813 |
| Divide: | ||||||||||||
| Volume Sold | 3,806 | 1,235,143 | 2,461 | 7,367 | 8,677 | Not Applicable | 2,038 | 1,182,127 | 7,017 | 18,589 | 8,799 | Not Applicable |
| CAS | 1,275 | 15.88 | 1,431 | 1,814 | 6,819 | Not Applicable | 1,525 | 15.77 | 978 | 1,807 | 4,843 | Not Applicable |
| NON MINING COMPANIES | ||||||||||||
| 3Q<br> 2021 | 3Q 2020 | |||||||||||
| 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) | - | - | - | - | - | 2,043 | - | - | - | - | - | 984 |
| Add: | ||||||||||||
| Selling Expenses (US$000) | - | - | - | - | - | 325 | - | - | - | - | - | 362 |
| Total (US$000) | - | - | - | - | - | 2,368 | - | - | - | - | - | 1,346 |
| BUENAVENTURA CONSOLIDATED | ||||||||||||
| 3Q<br> 2021 | 3Q 2020 | |||||||||||
| 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) | 36,963 | 44,157 | 7,150 | 15,191 | 33,184 | 138,702 | 32,652 | 34,614 | 5,845 | 17,596 | 20,361 | 112,052 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 5,620 | 5,839 | 886 | 1,687 | 3,024 | 17,058 | 3,569 | 2,414 | 348 | 655 | 611 | 7,598 |
| Commercial Deductions (US$000) | 3,919 | 13,752 | 1,932 | 6,410 | 21,851 | 47,864 | 2,571 | 13,722 | 2,533 | 17,113 | 20,491 | 56,429 |
| Selling Expenses (US$000) | 1,030 | 1,519 | 304 | 622 | 1,134 | 4,935 | 996 | 1,479 | 320 | 976 | 1,157 | 5,289 |
| Cost Applicable to Sales (US$000) | 47,532 | 65,267 | 10,273 | 23,910 | 59,192 | 208,559 | 39,789 | 52,228 | 9,047 | 36,340 | 42,620 | 181,369 |
| Divide: | ||||||||||||
| Volume Sold | 40,628 | 3,426,079 | 5,918 | 11,114 | 8,691 | Not Applicable | 42,462 | 2,794,158 | 9,493 | 20,347 | 8,811 | Not Applicable |
| CAS | 1,170 | 19.05 | 1,736 | 2,151 | 6,811 | Not Applicable | 937 | 18.69 | 953 | 1,786 | 4,837 | Not Applicable |
| COIMOLACHE | ||||||||||||
| 3Q<br> 2021 | 3Q 2020 | |||||||||||
| 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) | 27,828 | 2,079 | - | - | - | 29,907 | 20,215.58 | 1,942 | - | - | - | 22,158 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 1,777 | 133 | - | - | - | 1,910 | 153.27 | 15 | - | - | - | 168 |
| Commercial Deductions (US$000) | 168 | 13 | - | - | - | 181 | 121 | 9 | - | - | - | 130 |
| Selling Expenses (US$000) | 300 | 22 | - | - | - | 322 | 239 | 23 | - | - | - | 262 |
| Cost Applicable to Sales (US$000) | 30,073 | 2,247 | - | - | - | 32,320 | 20,729 | 1,989 | - | - | - | 22,718 |
| Divide: | ||||||||||||
| Volume Sold | 30,893 | 169,499 | - | - | - | Not Applicable | 25,901 | 183,213 | - | - | - | Not Applicable |
| CAS | 973 | 13.26 | - | - | - | Not Applicable | 800 | 10.86 | - | - | - | Not Applicable |
| LA<br> ZANJA | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 9M<br> 2021 | 9M 2020 | |||||||||||
| 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) | 22,788 | 1,985 | - | - | - | 24,774 | 21,193 | 1,811 | - | - | - | 23,004 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 253 | 22 | - | - | - | 275 | 1 | 0 | - | - | - | 1 |
| Commercial Deductions (US$000) | 96 | 14 | - | - | - | 110 | 347 | 18 | - | - | - | 365 |
| Selling Expenses (US$000) | 71 | 6 | - | - | - | 77 | 74 | 6 | - | - | - | 80 |
| Cost Applicable to Sales (US$000) | 23,208 | 2,027 | - | - | - | 25,236 | 21,615 | 1,835 | - | - | - | 23,450 |
| Divide: | ||||||||||||
| Volume Sold | 13,521 | 80,356 | - | - | - | Not Applicable | 12,673 | 94,704 | - | - | - | Not Applicable |
| CAS | 1,716 | 25.23 | - | - | - | No Applicable | 1,706 | 19.38 | - | - | - | Not Applicable |
| BROCAL | ||||||||||||
| 9M 2021 | 9M 2020 | |||||||||||
| GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | |
| Cost of Sales (without D&A) (US$000) | 5,444 | 35,392 | 6,021 | 25,544 | 88,679 | 161,080 | 4,050 | 16,713 | 9,491 | 29,112 | 48,400 | 107,766 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 398 | 2,585 | 440 | 1,866 | 6,477 | 11,766 | 118 | 488 | 277 | 850 | 1,413.83 | 3,148 |
| Commercial Deductions (US$000) | 4,150 | 17,383 | 2,446 | 11,952 | 66,012 | 101,943 | 4,114 | 11,580 | 5,367 | 30,831 | 48,044 | 99,936 |
| Selling Expenses (US$000) | 230 | 1,493 | 254 | 1,078 | 3,741 | 6,795 | 222 | 915 | 519 | 1,593 | 2,649 | 5,898 |
| Cost Applicable to Sales (US$000) | 10,221 | 56,853 | 9,161 | 40,439 | 164,909 | 281,584 | 8,504 | 29,695 | 15,654 | 62,388 | 100,507 | 216,748 |
| Divide: | ||||||||||||
| Volume Sold | 8,562 | 3,804,864 | 7,297 | 22,975 | 26,161 | Not Applicable | 5,310 | 1,835,831 | 14,050 | 34,603 | 20,015 | Not Applicable |
| CAS | 1,194 | 14.94 | 1,255 | 1,760 | 6,304 | No Applicable | 1,602 | 16.18 | 1,114 | 1,803 | 5,022 | Not Applicable |
| NON MINING COMPANIES | ||||||||||||
| 9M<br> 2021 | 9M 2020 | |||||||||||
| 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) | - | - | - | - | - | 10,338 | - | - | - | - | - | 2,475 |
| Add: | - | - | ||||||||||
| Selling Expenses (US$000) | - | - | - | - | - | 869 | - | - | - | - | - | 962 |
| Total (US$000) | - | - | - | - | - | 11,207 | - | - | - | - | - | 3,437 |
| BUENAVENTURA<br> CONSOLIDATED | ||||||||||||
| 9M 2021 | 9M 2020 | |||||||||||
| 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) | 98,003 | 134,342 | 17,881 | 43,698 | 88,729 | 392,990 | 74,393 | 83,976 | 15,093 | 34,669 | 48,426 | 259,032 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 12,571 | 15,868 | 1,904 | 4,071 | 6,487 | 40,901 | 6,088 | 6,465 | 775 | 1,317 | 1,419 | 16,063 |
| Commercial Deductions (US$000) | 9,639 | 42,569 | 4,928 | 23,472 | 66,019 | 146,626 | 7,773 | 29,292 | 6,876 | 34,440 | 48,049 | 126,430 |
| Selling Expenses (US$000) | 2,645 | 4,701 | 799 | 1,933 | 3,742 | 14,690 | 2,323 | 3,497 | 784 | 1,852 | 2,650 | 12,067 |
| Cost Applicable to Sales (US$000) | 122,858 | 197,480 | 25,512 | 73,174 | 164,977 | 595,208 | 90,576 | 123,230 | 23,528 | 72,278 | 100,543 | 413,592 |
| Divide: | ||||||||||||
| Volume Sold | 100,396 | 10,107,830 | 17,435 | 34,396 | 26,207 | Not Applicable | 87,537 | 7,264,405 | 20,850 | 40,402 | 20,034 | Not Applicable |
| CAS | 1,224 | 19.54 | 1,463 | 2,127 | 6,295 | Not Applicable | 1,035 | 16.96 | 1,128 | 1,789 | 5,019 | Not Applicable |
| COIMOLACHE | ||||||||||||
| 9M 2021 | 9M 2020 | |||||||||||
| 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) | 100,966 | 9,370 | - | - | - | 110,336 | 54,782 | 4,589 | - | - | - | 59,371 |
| Add: | ||||||||||||
| Exploration Expenses (US$000) | 4,978 | 462 | - | - | - | 5,440 | 961 | 81 | - | - | - | 1,042 |
| Commercial Deductions (US$000) | 675 | 112 | - | - | - | 787 | 460 | 46 | - | - | - | 506 |
| Selling Expenses (US$000) | 1,087 | 101 | - | - | - | 1,188 | 735 | 62 | - | - | - | 797 |
| Cost Applicable to Sales (US$000) | 107,705 | 10,045 | - | - | - | 117,751 | 56,939 | 4,778 | - | - | - | 61,716 |
| Divide: | ||||||||||||
| Volume Sold | 88,802 | 563,876 | - | - | - | Not Applicable | 64,428 | 474,143 | - | - | - | Not Applicable |
| CAS | 1,213 | 17.81 | - | - | - | No Applicable | 884 | 10.08 | - | - | - | Not Applicable |
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 18 of 25 |
|---|
APPENDIX 5: All-in Sustaining Cost
| Buenaventura | ||||||||
|---|---|---|---|---|---|---|---|---|
| All-in Sustaining Cost for 3Q21 | ||||||||
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| Au Ounces Sold BVN | ||||||||
| Au Ounces Sold Net | ||||||||
| US 000' | US 000' | US 000' | ||||||
| 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> <br>Third Quarter 2021 Results<br><br> <br>Page 19 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Buenaventura | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| All-in Sustaining Cost for 3Q20 | ||||||||
| Buenaventura1 | La Zanja | Tantahuatay | Attributable 2 | |||||
| Au Ounces Sold BVN | ||||||||
| Au Ounces bought from La Zanja | ||||||||
| Au Ounces Sold Net | ||||||||
| US 000' | US 000' | US 000' | ||||||
| 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> <br>Third Quarter 2021 Results<br><br> <br>Page 20 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| All-in Sustaining Cost for 9M21 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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> <br>Third Quarter 2021 Results<br><br> <br>Page 21 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| All-in Sustaining Cost for 9M20 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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> <br>Third Quarter 2021 Results<br><br> <br>Page 22 of 25 |
|---|
APPENDIX 6
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||
|---|---|---|---|---|
| Interim condensed consolidated statements of financial position | ||||
| As of September 30, 2021 and December 31, 2020 | ||||
| 2021 | 2020 | |||
| Assets | US(000) | US(000) | ||
| Current assets | ||||
| Cash and cash equivalents | ||||
| Trade and other receivables, 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, net | ||||
| Total assets | ||||
| Liabilities and shareholders’ equity, net | ||||
| Current liabilities | ||||
| Bank loans | ||||
| Trade and other payables | ||||
| Provisions and contingent liabilities | ||||
| Income tax payable | ||||
| Financial obligations | ||||
| Hedge derivative financial instruments | ||||
| Non-current liabilities | ||||
| Trade and other payables | ||||
| Provisions and contingent liabilities | ||||
| Financial obligations | ||||
| Contingent consideration liability | ||||
| Deferred income tax liabilities, net | ||||
| Total liabilities | ||||
| Shareholders’ equity, net | ||||
| Capital stock | ||||
| Investment shares | ||||
| Additional paid-in capital | ||||
| Legal reserve | ||||
| Other reserves | ||||
| Retained earnings | ||||
| Other reserves of equity | ) | ) | ||
| Shareholders’ equity, net attributable to owners of the parent | ||||
| Non-controlling interest | ||||
| Total shareholders’ equity, net | ||||
| Total liabilities and shareholders’ equity, net |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 23 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Interim consolidated statements of profit or loss (unaudited) | ||||||||
| As of September 30, 2021 and 2020 | ||||||||
| For the three-month period <br> ended September 30, | For the nine-month period <br> ended September 30, | |||||||
| 2021 | 2020 | 2021 | 2020 | |||||
| Continuing operations | US(000) | US(000) | US(000) | US(000) | ||||
| Sales revenue | ||||||||
| Sales of goods | ||||||||
| Royalty income | ||||||||
| Sales of services | ||||||||
| Total sales revenue | ||||||||
| Operating costs | ||||||||
| 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 operating costs | ) | ) | ) | ) | ||||
| Gross profit (loss) | ) | |||||||
| Operating expenses, net | ||||||||
| Administrative expenses | ) | ) | ) | ) | ||||
| Selling expenses | ) | ) | ) | ) | ||||
| Exploration in non-operating areas | ) | ) | ) | ) | ||||
| Write –off of stripping activity asset | ) | |||||||
| Reversal for contingencies and others | ) | ) | ) | |||||
| Other, net | ) | ) | ) | |||||
| Total operating expenses, net | ) | ) | ) | ) | ||||
| Operating profit (loss) | ) | ) | ) | |||||
| Share in the results of associates and joint venture | ) | |||||||
| Financial income | ||||||||
| Financial costs | ) | ) | ) | ) | ||||
| Net loss from currency exchange difference | ) | ) | ) | ) | ||||
| 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: | ||||||||
| Equity holders of the parent | ) | ) | ) | |||||
| Non-controlling interest | ) | ) | ) | |||||
| ) | ) | ) | ||||||
| Basic and diluted profit (loss) per share attributable | ||||||||
| to equity holders of the parent, stated in U.S. dollars | ) | ) | ) |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 24 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Interim condensed consolidated statements of cash flows (unaudited) | ||||||||
| As of September 30, 2021 and December 31, 2020 | ||||||||
| For the three-month period <br> ended September 30, 2021 | For the nine-month period <br> ended September 30, 2021 | |||||||
| 2021 | 2020 | 2021 | 2020 | |||||
| US(000) | US(000) | US(000) | US(000) | |||||
| Operating activities | ||||||||
| Proceeds from sales | ||||||||
| Recovery from value added tax and other taxes | ||||||||
| Royalty received | ||||||||
| Proceeds from dividends from related parties | ||||||||
| Proceeds from dividends of financial investments | ||||||||
| Insurance collection | ||||||||
| Interest received | ||||||||
| Payments for tax litigation | ) | ) | ||||||
| Payments to suppliers and third-parties, and other net | ) | ) | ) | ) | ||||
| Payments to employees | ) | ) | ) | ) | ||||
| Payments of income taxes and royalties paid to Peruvian State | ) | ) | ) | ) | ||||
| Payments of interest | ) | ) | ) | ) | ||||
| Payment of mining royalties | ) | ) | ) | ) | ||||
| Net cash and cash equivalents provided by (used in) operating activities | ) | ) | ||||||
| Investing activities | ||||||||
| Proceeds from sale of property, plant and equipment | ||||||||
| Proceeds from sale of investments | ||||||||
| Acquisitions of development costs, property, plant and equipment | ) | ) | ) | ) | ||||
| Payments for acquisitions of other assets | ) | ) | ) | ) | ||||
| Acquisition of investment in associate | ) | |||||||
| Net cash and cash equivalents used in investing activities | ) | ) | ) | ) | ||||
| Financing activities | ||||||||
| Senior Notes bonds issue | ||||||||
| Proceeds of bank loans | ||||||||
| Payments of bank loans | ) | ) | ) | |||||
| Payments of financial obligations | ) | ) | ) | ) | ||||
| Dividends paid to non-controlling interest | ) | ) | ) | ) | ||||
| Increase of restricted time deposits | ) | |||||||
| Short-term and low value lease payments | ) | ) | ) | ) | ||||
| Payments of obligations for leases | ) | ) | ) | ) | ||||
| Decrease of restricted bank accounts | ) | |||||||
| Net cash and cash equivalents provided by (used in) in financing activities | ) | ) | ||||||
| Increase (decrease) in cash and cash equivalents during the period, net | ||||||||
| Cash and cash equivalents at the beginning of the period | ||||||||
| Cash and cash equivalents at period-end |
All values are in US Dollars.
| Compañía de Minas Buenaventura S.A.A.<br><br> <br>Third Quarter 2021 Results<br><br> <br>Page 25 of 25 | ||||||||
|---|---|---|---|---|---|---|---|---|
| For the three-month period <br> ended September 30, 2021 | For the nine-month period <br> ended September 30, 2021 | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | 2020 | 2021 | 2020 | |||||
| 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 | ||||||||
| Net loss (gain) from currency exchange difference | ||||||||
| Accretion expense of provision for closure of mining units and exploration projects | ||||||||
| Provision for estimated fair value of sales | ||||||||
| Fair value of provision for contingences liabilities | ||||||||
| Depreciation and amortization in other, net | ||||||||
| Bonus provision - executives & employes | ||||||||
| Write –off of stripping activity asset | ||||||||
| Depreciation and amortization in administration expenses | ||||||||
| Workers´ participation provision | ||||||||
| Net share in results of associates and joint venture | ) | ) | ) | |||||
| Reversal (provision) for impairment loss of inventories | ) | |||||||
| Deferred income tax expense (income) | ) | ) | ) | |||||
| Recovery (expense) for provision for contingencies | ) | |||||||
| 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 and contingent liabilities | ) | ) | ) | ) | ||||
| 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.