Buenaventura Announces First Quarter 2014 Results

LIMA, Peru--()--Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE:BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, announced today results for the first quarter 2014 (1Q14) period. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards), on a non GAAP basis and stated in U.S. dollars (US$).

Comments from the Chief Executive Officer:

Mr. Roque Benavides, Buenaventura’s Chief Executive Officer, stated:

“During the first quarter, Buenaventura’s operating income was US$3.5 million, 94% lower than in 1Q13. Net income was negative US$16.1 million and EBITDA from Direct Operations was US$53.3 million, 43% lower than in 1Q13.

EBITDA including Affiliates was US$104.0 million, 61% lower than the figure reported in 1Q13.

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

 
      1Q14     1Q13     Var%
Total Revenues     282.0     354.7     -20%
Operating Income     3.5     59.4     -94%
EBITDA Direct Operations     53.3     93.8     -43%
EBITDA Including Affiliates     104.0     267.9     -61%
Net Income     -16.1     102.7      
EPS     -0.06     0.40      
 

(*) as of March 31, 2014, Buenaventura had 254,186,867 shares outstanding.

Operating Revenues

During 1Q14, net sales were US$274.0 million, a 20% decrease compared to the US$340.9 million reported in 1Q13. This was explained by lower metal prices as well as a reduction in gold, lead and zinc volumes sold.

Royalty income decreased 42%, to US$8.0 million in 1Q14 compared to the US$13.8 million reported in 1Q13. This was due to lower revenues at Yanacocha (12% lower QoQ).

                 
Operating Highlights 1Q14     1Q13     Var%
Net Sales

(in millions of US$)

    274.0     340.9     -20%
Average Realized Gold Price (US$/oz)*     1,312     1,606     -18%
Average Realized Gold Price (US$/oz) inc. Affiliates     1,302     1,619     -20%
Average Realized Silver Price (US$/oz)*     20.24     29.92     -32%
Average Realized Lead Price (US$/MT)*     2,110     2,257     -7%
Average Realized

Zinc Price (US$/MT)*

    2,046     1,983     3%
Average Realized Copper Price (US$/MT)*     7,063     7,896     -11%

(*) Buenaventura’s Direct Operations

                 
Volume Sold 1Q14     1Q13     Var%
Gold Oz Direct Operations     108,083     124,626     -13%
Gold Oz inc Yanacocha & Tantahuatay     210,136     259,095     -19%
Silver Oz     4,253,317     3,240,735     31%
Lead MT     4,353     6,683     -35%
Zinc MT     3,312     10,204     -68%
Copper MT     9,271     5,108     81%
 

Production and Operating Costs

In 1Q14, Buenaventura’s equity production including associates companies, was 191,448 ounces of gold, 21% lower than the 243,811 ounces reported in 1Q13, mainly due to lower production at Orcopampa and Yanacocha. Silver equity production, including associated companies, during 1Q14 was 4.1 million ounces, 12% lower compared to the figure reported in 1Q13 (4.7 million oz.).

                 
Equity Production     1Q14     1Q13     Var%

Gold Oz Direct Operations1

    100,870     119,201     -15%
Gold Oz inc Yanacocha     191,448     243,811     -21%
Silver Oz     4,145,674     4,724,682     -12%
Lead TM     4,652     7,052     -34%
Zinc TM     4,221     9,614     -56%
Copper inc Cerro Verde     17,263     13,359     29%

Orcopampa’s (100% owned by Buenaventura) total gold production in 1Q14 was 44,929 ounces (including 999 ounces of gold from the old tailings treatment), 28% lower than the 62,480 (including 4,112 ounces of gold from the old tailings treatment) ounces reported in 1Q13. Production from the Chipmo mine during 1Q14 was 43,930 ounces, 25% lower compared to the 58,369 ounces reported in 1Q13, as a result of lower ore grade and tonnage treated (see Appendix 2). Cost Applicable to Sales (CAS) in 1Q14 was US$860/oz of gold, 19% higher compared to 1Q13 (US$725/oz.). The higher cost was mainly explained by the lower gold production.

At Uchucchacua (100% owned by Buenaventura), total silver production in 1Q14 was 2.4 million ounces, 19% lower than the 2.9 million ounces reported in 1Q13, mainly due to the 7-day strike and community stoppage and the decrease in recovery rate, despite the higher ore grade. Zinc production in 1Q14 was 1,470 MT, 26% lower than the figure reported in 1Q13 (1,998 MT), while lead production decreased 23% (1,688 MT in 1Q14 vs. 2,205 MT in 1Q13). Cost Applicable to Sales (CAS) in 1Q14 was US$17.51/oz of silver, in-line with the figure reported in 1Q13 (US$17.46/oz.).

At Mallay (100% owned by Buenaventura), total production in 1Q14 was 297,180 ounces of silver, 4% higher than in 1Q13 (286,240 oz) due to higher ore grade and recovery rate despite the decrease in ore treated. Cost Applicable to Sales (CAS) in 1Q14 was US$14.79/oz of silver, a decrease of 34% compared to US$22.52/oz in 1Q13 due to a more focalized exploration program and the higher production.

At Julcani (100% owned by Buenaventura), total production in 1Q14 was 763,437 ounces of silver, 25% higher compared to 1Q13 (612,034 ounces), due to higher ore treated explained by the increase in plant capacity (from 400 TPD to 500 TPD). Cost Applicable to Sales (CAS) in 1Q14 was US$13.35/oz of silver, 20% lower than 1Q13 (US$16.77/oz.), mainly explained by a reduction in commercial deductions, more focalized exploration activities and higher production.

Breapampa’s (100% owned by Buenaventura) total production in 1Q14 was 20,927 ounces of gold, 2% higher when compared to the figure reported in 1Q13 (20,484 ounces). CAS in 1Q4 was US$461/oz of gold, 48% lower than the US$894/oz reported in 1Q13.

La Zanja’s (53.06% owned by Buenaventura) total production in 1Q14 was 35,937 ounces of gold, a 15% increase compared to 1Q13 (31,206 oz) and was due to an increase in ore grade (0.74 g/MT in 1Q14 vs. 0.64 g/MT in 1Q13). CAS in 1Q14 was US$535/oz of gold, 32% lower than 1Q13 (US$708/oz.), due to the higher ore grade and a reduction in exploration activities from Pampa Verde. It’s important to mention that that our exploration efforts are now focused in Alejandra underground project.

Tantahuatay’s (40.10% owned by Buenaventura) total production in 1Q14 was 32,633 ounces of gold (13,084 oz attributable to Buenaventura) 5% lower than the figure reported in 1Q13 (34,337 oz, 13,767 attributable to Buenaventura). CAS in 1Q14 was US$437/oz of gold, 14% lower than in 1Q13 (US$506/oz.) due lower supplies and contractor expenses as a result of significantly lower stripping ratio.

At El Brocal (54.07% owned by Buenaventura), copper production was 9,792 MT vs. 4,536 MT reported in 1Q13 (116% increase). Silver production, from polymetallic and copper ores, was 0.5 million ounces, in-line with the figure reported in 1Q14. There was no zinc production in 1Q14 (6,950 MT in 1Q13). Copper CAS was US$5,034/MT in 1Q14, 19% decrease when compared to US$6,212/MT in 1Q13.

General and Administrative Expenses

General and administrative expenses in 1Q14 were US$28.8 million, 80% higher than the figure reported in 1Q13 (US$16.0 million), due to a long term compensation expense credit in 1Q13.

Exploration in Non-Operating Areas

Exploration in non-operating areas during 1Q14 was US$10.4 million, a 52% decrease compared to US$21.8 million reported in 1Q13. During the period, Buenaventura’s main exploration efforts were focused on the following projects: La Zanja Underground (US$2.6 million) Tambomayo (US$1.7 million), San Gregorio (US$1.0 million) and Chanca (US$1.2 million).

Operating Income

Operating income in 1Q14 was US$3.5 million, 94% lower compared to the US$59.4 million reported in 1Q13 mainly due to lower revenues.

Share in Associated Companies

During 1Q14, Buenaventura’s share in associated companies was negative US$4.5 million (compared to the US$84.2 million reported in 1Q13) composed by:

 

Share in the Result of Associates
(in million US$)

      1Q14     1Q13
Cerro Verde     15.7     27.2
Coimolache (Tantahuatay mine)     4.8     8.1
Yanacocha     -24.5     51.0
Canteras del Hallazgo (Chucapaca project)     -0.1     -2.1
Other smaller investments     -0.4     0
Total     -4.5     84.2
       

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), 1Q14 gold production was 207,511 ounces of gold, 27% lower than 1Q13 production (285,475 oz).

Net income was negative US$56.1 million (compared to US$116.8 million in 1Q13) explained by a US$55.4 million write-down of leach inventory value from La Quinua, Yanacocha and Maqui Maqui pads. During 1Q14, EBITDA totaled US$5.9 million, a 98% decrease compared to 1Q13 (US$260.9 million).

Capital expenditures at Yanacocha were US$21.6 million in 1Q14 (US$97.7 million in 1Q13).

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), 1Q14 copper production was 60,955 MT (11,935 MT attributable to Buenaventura), a 10% increase compared to 1Q13 (55,214 MT and 10,811 MT attributable to Buenaventura).

During 1Q14, Cerro Verde reported net income of US$98.0 million, a 29% lower compared to US$138.8 million in 1Q13. This was mainly due to 12% lower sales.

Capital expenditures at Cerro Verde in 1Q14 totaled US$439.4 million and US$170.0 million in 2013.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution was US$4.8 million (US$8.1 million in 1Q13).

Net Income

Buenaventura’s 1Q14 net income was a negative US$16.1 million (negative US$0.06 per share), compared to US$102.7 million (US$0.40 per share) reported in 1Q13.

Project Development and Exploration

Huanza Hydroelectric Plant (100% ownership)

Unit 2 began generating 46.3 MW, while Unit 1 will start its commissioning in 2Q14. This plant will ensure energy supply for direct operations.

El Brocal Expansion (54.07% ownership)

El Brocal expansion from 6 ktpd to 18 ktpd was completed. Production will begin, in 2Q14 to treat 11 ktpd of polymetallic ore from Colquijirca and 7 ktpd of copper ore from Marcapunta.

Tambomayo Project (100% ownership)

Mine development and engineering studies are in progress. Environmental Impact Assessment and permits were filed. Production is expected for 2016.

Board Resolutions

At the Board of Directors meeting held April 30, 2014, the following resolutions were passed:

1. Approval of new Code of Ethics

Company Description

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

Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Breapampa*, Mallay*, Julcani*, Recuperada*, 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, and 49% of Canteras del Hallazgo S.A, owner the Chucapaca project.

For a printed version of the Company’s 2012 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

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

**Tables to follow**

APPENDIX 1

 

Equity Participation in
Subsidiaries and Affiliates (as of March 31, 2014)

    BVN     Operating
      Equity %     Mines / Business
Consorcio Energético de Huancavelica S.A*     100.00     Energy – Huanza Hydroelectrical Project
Buenaventura Ingenieros S.A*     100.00     Engineering Consultant
Processadora Industrial Rio Seco S.A*     100.00     Rio Seco chemical plant
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*     54.07     Colquijirca and Marcapunta
Canteras del Hallazgo S.A **     49.00     Chucapaca project
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
(*)Consolidates
(**) Equity Accounting
 

APPENDIX 2

     
GOLD PRODUCTION
Three Months Ended March 31
Orcopampa     Orcopampa Old Tailings*
2014     2013     %     2014     2013     %
Ore Milled DMT 103,227     119,930     -14%     123,853     N.A.
Ore Grade OZ/MT 0.44 0.51 -13% 0.05 N.A.
Recovery Rate % 96.3% 95.8% 1% 72.6% N.A.
Ounces Produced 43,930     58,369     -25%     1,000     4,112     -76%
 
Orcopampa Total Production     1Q14     44,930       1Q13     62,480
* Process cleaning accounts for tailings production.
           
La Zanja     Tantahuatay
1Q14     1Q13     %     1Q14     1Q13     %
Ounces Produced 35,937     31,206     15%     32,633     34,307     -5%
                         
Breapampa
1Q14     1Q13     %
Ounces Produced 20,927     20,484     2%
       
     
SILVER PRODUCTION
Three Months Ended March 31
Uchucchacua     Colquijirca
2014     2013     %     2014     2013     %
Ore Milled DMT 212,708     261,972     -19%     370,400     N.A.
Ore Grade OZ/MT 14.56 13.89 5% 1.54 N.A.
Recovery Rate % 76.5% 80.6% -5% 70.8% N.A.
Ounces Produced 2,368,509     2,928,556     -19%           405,193     N.A.
 
     
ZINC PRODUCTION
Three Months Ended March 31
Uchucchacua     Colquijirca
2014     2013     %     2014     2013     %
Ore Milled DMT 212,708     261,972     -19%     370,400     N.A.
Ore Grade % 1.1% 1.2% -3% 2.91% N.A.
Recovery Rate % 61.5% 66.3% -7% 64.5% N.A.
MT Produced 1,470     1,998     -26%           6,950     N.A.
 

APPENDIX 3

 
EBITDA RECONCILIATION (in thousand US$)
                 
      1Q14     1Q13     Var
Net Income     -10,372     110,933     -109%
Add / Substract:     63,706     -17,149     -471%
Provision for income tax, net     7,322     32,511     -77%
Share in associated companies by the equity method, net     4,480     -84,168     -105%
Interest income     -1,806     -956     89%
Interest expense     3,391     1,203     182%
Loss on currency exchange difference     496     -112     -543%
Long Term Compensation provision     1,925     -8,866     -122%
Depreciation and Amortization     46,138     39,176     18%
Impairment of Long-Lived Assets     794     -     -
Workers´ participation provision     966     4,063     -76%
EBITDA Buenaventura Direct Operations     53,334     93,784     -43%
EBITDA Yanacocha (43.65%)     2,581     113,892     -98%
EBITDA Cerro Verde (19.58%)     37,009     44,629     -17%
EBITDA Coimolache (40%)     11,033     15,554     -29%
EBITDA Buenaventura + All Associates     103,958     267,860     -61%
 

Note:

EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.

EBITDA (including Associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.

Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.

APPENDIX 4

       
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Financial Position
As of March, 31 2014 and December, 31 2013
2014 2013
Assets US$(000) US$(000)
Current assets
Cash and cash equivalents 78,720 61,898
Financial assets at fair value through profit or loss - -
Trade and other accounts receivable, net 251,457 260,434
Income tax credit 58,327 37,370
Prepaid expenses 13,764 14,597
Hedge derivative financial instruments 3,731
Embedded derivatives for concentrate sales, net - 1,857
Inventory, net 149,424 175,719
Total current assets 555,423 551,875
 
Non-current assets
Trade and other accounts receivable, net 23,807 20,607
Long-term inventory 39,553 23,366
Investment in associates 2,344,449 2,350,303
Mining concessions, development costs and property, plant and equipment, net 1,546,315 1,515,460
Deferred income tax asset, net 72,758 83,525
Other assets 3,310 7,132
Total non-current assets 4,030,192 4,000,393
   
Total assets 4,585,615 4,552,268
 
 
Liabilities and shareholders’ equity
Current liabilities
Bank loans - -
Trade and other accounts payable 251,937 301,811
Provisions 78,282 69,800
Income tax payable 2,394 2,140
Hedge derivatives financial instruments - 1,093
Embedded derivatives for concentrate sales, net 7,592 -
Financial obligations 23,549 11,370
Total current liabilities 363,754 386,214
 
Non-current liabilities
Trade and other accounts payable 15,035 12,229
Provisions 109,272 106,376
Financial obligations 280,967 223,027
Deferred income tax liability, net 4,113  
Total non-current liabilities 409,387 341,632
   
Total liabilities 773,141 727,846
 
Shareholders’ equity
Issued capital, net of treasury shares for US$(000)62,665 750,497 750,497
Investment shares, net of treasury shares for US$(000)765 1,396 1,396
Additional paid-in capital 219,055 219,055
Legal reserve 162,688 162,663
Other reserves 269 269
Retained earnings 2,395,929 2,413,131
Other equity reserves 104 104
3,529,938 3,547,115
Non-controlling interest 282,536 277,307
Total shareholders’ equity 3,812,474 3,824,422
   
Total liabilities and shareholders’ equity 4,585,615 4,552,268
 
 
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Income Statement
For the three month period ended March 31, 2014 and March 31, 2013
   

For the twelve month period
ended March, 31

2,014     2,013
US$(000) US$(000)
Operating income
Net sales 273,968 340,873
Royalty income 8,025 13,802
Total operating income 281,993 354,675
 
Operating costs
Cost of sales, without considering depreciation and amortization (142,959) (158,135)
Exploration in operating units (31,728) (46,369)
Depreciation and amortization (46,138) (39,176)
Royalties (7,378) (9,666)
Total operating costs (228,203) (253,346)
   
Gross profit 53,790 101,329
 
Operating expenses
Administrative expenses (28,756) (15,959)
Exploration in non-operating areas (10,374) (21,760)
Selling expenses (4,170) (4,510)
Contingencies (7,641) (1,053)
Impairment of long-term lived assets (794) -
Other, net 1,456 1,364
Total operating expenses (50,279) (41,918)
 
Operating profit (loss) 3,511 59,411
 
Other income, net
Share in the results of associates under equity method (4,480) 84,168
Financial income 1,806 956
Financial expenses (3,391) (1,203)
Net loss from currency exchange difference (496) 112
Total other income, net (6,561) 84,033
 
Profit before income taxes and non-controlling interest (3,050) 143,444
 
Income taxes (7,322) (32,511)
   
Net profit (10,372) 110,933
 
Attributable to:
Owners of the parent (16,112) 102,677
Non-controlling interest 5,740 8,256
(10,372) 110,933
 
Basic and diluted earnings per share attributable
to owners of the parent, stated in U.S. dollars (0.06) 0.40
 
Weighted average number of shares outstanding
(common and investment), in units 254,186,867 254,202,571
 
 
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Cash Flows
For the three month period ended March 31, 2014 and March 31, 2013
   

For the twelve month period
ended March, 31

2,014     2,013
US$(000) US$(000)
Operating activities
Proceeds from sales 266,854 404,462
Value Added Tax (VAT) recovered 17,704 13,800
Royalties received 6,995 12,202
Dividends received 2,377 -
Interest received 2,125 976
Payments to suppliers and third-parties (199,734) (258,128)
Payments to employees (55,620) (70,083)
Payment of income tax (5,411) (24,078)
Payment of royalties (7,453) (8,786)
Payment of interest (1,948) (222)
 
Net cash and cash equivalents provided by operating activities 25,889 70,143
 
Investing activities
Settlement of financial assets at fair value through profit or loss - -
Proceeds for collections of loans to associates 9,032 -
Proceeds from sales of mining concessions, property, plant and equipment 23 -
Acquisitions of mining concessions, development costs, property, plant and equipment (85,278) (86,041)
Payment for purchase of investments -
Proceeds from sales of investments shares -
Increase in time-deposits - (772)
Contributions and investments in associates (1,003) (3,685)
 
Net cash and cash equivalents used in investing activities (77,226) (90,498)
 
Financing activities
Increase in financial obligations 74,659
Bank loans received -
Payment of financial obligations (4,540) (56)
Dividends paid
Dividends paid to non-controlling interest (1,960) (3,440)
Purchase of treasury shares - -
Purchase of associates' shares - -
 
Net cash and cash equivalents provided by (used in) financing activities 68,159 (3,496)
 
Net increase (decrease) in cash and cash equivalents during the period 16,822 (23,851)
Cash and cash equivalents at the beginning of the period 61,898 186,712
   
Cash and cash equivalents at period-end 78,720 162,861
 

APPENDIX 5

CAS 1Q14 VS 1Q13
   
JULCANI
1Q 2014   1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 1   5,577   432   -   57   6,068 65   3,436   223   -   26   3,750
Exploration Expenses (US$000) 1 2,505 194 - 26 2,725 23 1,217 79 - 9 1,329
Commercial Deductions (US$000) 0 1,647 130 - 18 1,795 24 1,168 76 - 7 1,275
Selling Expenses (US$000) 0 223 17 - 2 242 2 127 8 - 1 139
Total (US$000)   3   9,952   773   -   102   10,830   114   5,948   387   -   44   6,493
Volume Sold   3   745,300   556   -   22   Not Applicable   126   354,675   293   -   11   No Aplicable
CAS   844   13.35   1,391   -   4,664   No Applicable   911   16.77   1,323   -   3,887   No Aplicable
                                             
MALLAY
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) - 2,461 1,659 1,569 - 5,689 - 3,130 1,694 1,869 - 6,694
Exploration Expenses (US$000) - 640 431 408 - 1,479 - 1,072 580 640 - 2,292
Commercial Deductions (US$000) - 996 654 928 - 2,577 - 860 442 726 - 2,028
Selling Expenses (US$000) - 178 120 114 - 412 - 184 100 110 - 393
Total (US$000)   -   4,275   2,864   3,019   -   10,158   -   5,247   2,817   3,344   -   11,408
Volume Sold   -   289,037   1,875   1,825   -   Not Applicable   -   232,943   1,600   1,991   -   Not Applicable
CAS   -   14.79   1,528   1,654   -   No Applicable   -   22.52   1,761   1,680   -   No Applicable
                                             
BREAPAMPA
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 10,078 805 - - - 10,883 17,850 876 - - - 18,727
Exploration Expenses (US$000) 121 10 - - - 130 1,859 91 - - - 1,950
Commercial Deductions (US$000) 17 - - - - 17 15 - - - - 15
Selling Expenses (US$000) 108 9 - - - 116 - - - - - -
Total (US$000)   10,323   824   -   -   -   11,147   19,724   967   -   -   -   20,691
Volume Sold   22,412   114,816   -   -   -   Not Applicable   22,057   57,777   -   -   -   Not Applicable
CAS   461   7.17   -   -   -   No Applicable   894   16.74   -   -   -   No Applicable
                                             
ORCOPAMPA
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 30,296 848 - - - 31,143 32,707 1,245 - - - 33,953
Exploration Expenses (US$000) 12,772 357 - - - 13,129 13,866 528 - - - 14,394
Commercial Deductions (US$000) 38 - - - - 38 42 - - - - 42
Selling Expenses (US$000) 241 7 - - - 248 - - - - - -
Total (US$000)   43,346   1,212   -   -   -   44,558   46,615   1,773   -   -   -   48,388
Volume Sold   50,386   90,375   -   -   -   Not Applicable   64,258   130,556   -   -   -   Not Applicable
CAS   860   13.41   -   -   -   No Applicable   725   13.58   -   -   -   No Applicable
                                             
UCHUCCHACUA
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) - 29,837 1,911 1,403 - 33,150 - 20,791 1,144 1,304 - 23,238
Exploration Expenses (US$000) - 5,598 358 263 - 6,220 - 4,023 221 252 - 4,497
Commercial Deductions (US$000) - 7,093 466 875 - 8,434 - 7,588 387 1,686 - 9,661
Selling Expenses (US$000) - 671 43 32 - 745 - 821 45 51 - 917
Total (US$000)   -   43,199   2,778   2,573   -   48,550   -   33,223   1,797   3,293   -   38,314
Volume Sold   -   2,467,052   1,520   1,148   -   Not Applicable   -   1,903,220   1,329   1,708   -   Not Applicable
CAS   -   17.51   1,827   2,240   -   No Applicable   -   17.46   1,353   1,928   -   No Applicable
                                             
OTHER SMALL UNITS
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 384 947 525 944 - 2,799 2,086 2,036 1,161 1,522 - 6,806
Exploration Expenses (US$000) 5,424 2,006 234 362 - 8,026 14,648 2,685 553 724 - 18,031
Commercial Deductions (US$000) 76 87 53 167 - 384 37 487 260 382 - 1,168
Selling Expenses (US$000) 90 44 21 31 - 187 25 150 83 108 - 383
Total (US$000)   5,974   3,084   833   1,504   -   11,395   16,796   5,358   2,058   2,735   -   26,948
Volume Sold   702   41,783   220   338   -   Not Applicable   6,691   118,259   769   1,128   -   Not Applicable
CAS   -   -   -   -   -   No Applicable   -   -   -   -   -   No Applicable
                                             
LA ZANJA
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 17,535 857 - - - 18,392 20,467 953 - - - 21,419
Exploration Expenses (US$000) 19 1 - - - 20 837 39 - - - 876
Commercial Deductions (US$000) 25 - - - - 25 20 - - - - 20
Selling Expenses (US$000) 335 16 - - - 351 93 4 - - - 97
Total (US$000)   17,914   874   -   -   -   18,788   21,416   996   -   -   -   22,412
Volume Sold   33,479   104,873   -   -   -   Not Applicable   30,253   75,159   -   -   -   Not Applicable
CAS   535   8.33   -   -   -   No Applicable   708   13.25   -   -   -   No Applicable
                                             
BROCAL
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 537 3,046 144 - 24,419 28,146 941 5,232 3,017 5,338 17,374 31,903
Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 438 2,871 - - 20,526 23,834 637 2,208 869 1,969 12,885 18,568
Selling Expenses (US$000) 36 202 10 - 1,620 1,867 76 423 244 432 1,405 2,580
Total (US$000)   1,011   6,118   154   -   46,564   53,847   1,655   7,864   4,130   7,739   31,664   53,051
Volume Sold   1,101   400,081   182   -   9,249   Not Applicable   1,241   368,146   2,693   5,377   5,097   Not Applicable
CAS   918   15.29   844   -   5,034   No Applicable   1,334   21.36   1,534   1,439   6,212   No Applicable
                                             
NON MINING COMPANIES
1Q 2014 1Q 2013
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000)           6,688                       11,645
                                             
BUENAVENTURA CONSOLIDATED
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 58,832 44,378 4,671 3,916 24,476 142,959 74,117 37,700 7,240 10,033 17,400 158,135
Exploration Expenses (US$000) 18,335 11,116 1,218 1,033 26 31,728 31,232 9,656 1,434 1,616 9 43,369
Commercial Deductions (US$000) 593 12,694 1,303 1,970 20,543 37,103 776 12,311 2,035 4,762 12,892 32,776
Selling Expenses (US$000) 810 1,350 211 176 1,622 4,170 196 1,710 480 701 1,406 4,510
Total (US$000)   78,570   69,538   7,402   7,095   46,667   215,960   106,321   61,377   11,189   17,111   31,708   227,706
Volume Sold   108,083   4,253,317   4,353   3,312   9,271   Not Applicable   124,626   3,240,735   6,683   10,204   5,108   Not Applicable
CAS   -   -   -   -   -   No Applicable   -   -   -   -   -   No Applicable
                                             
COIMOLACHE
1Q 2014 1Q 2013
    ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL   ORO (OZ)   PLATA (OZ)   PLOMO (TM)   ZINC (TM)   COBRE (TM)   TOTAL
Cost of Sales (without D&A) (US$000) 11,981 741 - - - 12,722 14,950 1,634 - - - 16,584
Exploration Expenses (US$000) 1,119 69 - - - 1,188 1,562 171 - - - 1,733
Commercial Deductions (US$000) - - - - - - - - - - - -
Selling Expenses (US$000) 200 12 - - - 213 165 18 - - - 183
Total (US$000)   13,300   823   -   -   -   14,123   16,677   1,823   -   -   -   18,500
Volume Sold   30,460   120,800   -   -   -   Not Applicable   32,950   192,235   -   -   -   Not Applicable
CAS   437   6.81   -   -   -   No Applicable   506   9.48   -   -   -   No Applicable
 

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10% of Tantahuatay

Contacts

Contacts in Lima:
Compañia de Minas Buenaventura S.A.A.
Carlos Galvez, Chief Financial Officer
511-419-2540
or
Daniel Dominguez, Director of Treasury and Investor Relations
511-419-2591
daniel.dominguez@buenaventura.pe
or
Contacts in New York:
i-advize Corporate Communications
Maria Barona / Rafael Borja
212-406-3691/3693
buenaventura@i-advize.com

Sharing

Contacts

Contacts in Lima:
Compañia de Minas Buenaventura S.A.A.
Carlos Galvez, Chief Financial Officer
511-419-2540
or
Daniel Dominguez, Director of Treasury and Investor Relations
511-419-2591
daniel.dominguez@buenaventura.pe
or
Contacts in New York:
i-advize Corporate Communications
Maria Barona / Rafael Borja
212-406-3691/3693
buenaventura@i-advize.com