CORRECTING and REPLACING Buenaventura Announces Fourth Quarter and Full Year 2015 Results

CORRECTION...by Compañía de Minas Buenaventura S.A.A.

LIMA, Peru--()--In the original earnings report issued on February 26, 2016, section Financial Highlights: Adjusted EBITDA (Inc Associates) - in millions of US$ appeared as: US$ 295.2 million (4Q15) and US$ 600.7 million (FY15) and the correct figure should be US$ 72.6 million (4Q15) and US$ 378.1 (FY15).

Also, APPENDIX 3: EBITDA Reconciliation (in thousands of US$), please see bolded sections below for corrections:

EBITDA YANACOCHA: appeared as: US$ 241,008 (4Q15) and US$ 386,882 (FY15), and the correct figure should be US$ 18,392 (4Q15) and US$ 164,265 (FY15).

Adjusted EBITDA (including Associated companies): appeared as: US$ 295,226 (4Q15) and US$ 600,692 (FY15), and the correct figure should be US$ 72,609 (4Q15) and US$ 378,075 (FY15).

The corrected release reads:

BUENAVENTURA ANNOUNCES FOURTH QUARTER AND FULL YEAR 2015 RESULTS

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 fourth quarter (4Q15) and twelve month (“2015”) periods ended December 31, 2015. 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$).

Fourth Quarter 2015 Highlights:

  • In 4Q15, EBITDA from direct operations was US$16.0 million and adjusted EBITDA (including associated companies) was US$295.2 million.
  • Total attributable production in 4Q15 was 182k gold ounces and 6.5 million silver ounces (compared to 245k gold ounces and 5.5 million silver ounces in 4Q14).
  • Full year 2015 attributable production was 759k gold ounces and 22.3 million silver ounces (compared to 846k gold ounces and 19.7 million silver ounces in 2014).
  • Gold production from direct operations will increase in 2017, once Tambomayo starts operating at full capacity (Tambomayo will add 150-170k gold ounces).
  • The Tambomayo project is in line with budget. Civil works are at 30% of progress, exploration and development at 80%. Production ramping up is expected by 4Q16.
  • Silver production in 2015 was in line with the guidance provided, despite one month strike at Uchucchacua mine.
  • During 4Q15, El Brocal reached full production capacity level of 18K TPD.
  • Cerro Verde’s plant expansion project (from 120k TPD to 360K TPD) was completed in 4Q15. Expected production for 2016 is 550k – 600k TM.
  • Yanacocha will distribute dividends of US$300 million in March 2016 (BVN will receive its equity share of US$130 million).

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

    4Q15   4Q14   Var%   FY15   FY14   Var%
Total Revenues   234.7   276.5   -15%   951.9   1,175.8   -19%
Operating Profit   -55.1   -18.3   201%   -149.8   61.6   N.A.
EBITDA Direct Operations   16.0   35.3   -55%   105.2   274.1   -62%
Adjusted EBITDA (Inc Associates)  

72.6

  181.5   63%  

378.1

  672.0   -11%
Net Income   -292.6*   -161.4   81%   -317.2*   -76.1   317%
EPS**   -1.15   -0.63   81%   -1.25   -0.30   317%
(*) Includes deferred income tax write-off from Yanacocha of US$-223 million.
(**) as of December 31, 2015 Buenaventura had 254,186,867 outstanding shares.
 

Operating Revenues

During 4Q15, net sales were US$227.5 million, a 14% decrease compared to the US$264.6 million reported in 4Q14. This was mainly explained by the decrease in metal prices as well as lower gold and copper volume sold.

Royalty income decreased 39%, to US$7.2 million in 4Q15 compared to the US$11.9 reported in 4Q14. This was due to lower revenues at Yanacocha (32% lower QoQ).

Operating Highlights   4Q15   4Q14   Var%   FY15   FY14   Var%
Net Sales

(in millions of US$)

  227.5   264.6   -14%   919.5   1,138.9   -19%
Average Realized Gold Price (US$/oz) 1 2   1,093   1,192   -8%   1,151   1,263   -9%
Average Realized Gold Price (US$/oz) inc. Affiliates 3   1,096   1,194   -8%   1,154   1,258   -8%
Average Realized Silver Price (US$/oz) 1 2   14.46   15.76   -8%   15.06   18.65   -19%
Average Realized Lead Price (US$/MT) 1 2   1,665   1,994   -16%   1,712   2,107   -19%
Average Realized

Zinc Price (US$/MT) 1 2

  1,447   2,240   -35%   1,839   2,244   -18%
Average Realized Copper Price (US$/MT) 1 2   4,332   6,591   -34%   4,515   6,738   -33%
           
Volume Sold   4Q15   4Q14   Var%   FY15   FY14   Var%
Gold Oz Direct Operations 1   93,352   102,043   -9%   380,899   436,257   -13%
Gold Oz inc Associated Companies 3   207,701   260,810   -20%   841,818   914,627   -8%
Silver Oz 1   6,575,608   5,075,656   30%   21,023,873   19,045,010   10%
Lead MT 1   10,302   5,470   88%   32,389   18,599   74%
Zinc MT 1   16,087   9,961   62%   55,529   20,904   166%
Copper MT 1   9,176   10,451   -12%   29,094   40,263   -28%
(1)   Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal
(2) The realized price considers the adjustments of quotational periods
(3) Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.95% of Coimolache and 43.65% of Yanacocha
 

For 2015, net sales decreased 19%, from US$1,138.9 million in 2014 to US$919.5 million in 2015. Royalty income for 2015 was US$32.4 million (US$36.9 million in 2014).

Production and Operating Costs

In 4Q15, Buenaventura’s gold equity production from direct operations decreased 14%, from 104,166 ounces in 4Q14 to 90,034 ounces in 4Q15 due to the decline in production at Breapampa mine (no production in 4Q15 vs 13,178 gold ounces in 4Q14). Gold production including associated companies in 4Q15 was 182,247 ounces, 26% lower than the reported in the same period 2014, explained by a decrease in production from Yanacocha. Silver equity production from direct operations increased 14%, mainly due to higher production at Uchucchacua mine (13.9 million silver ounces in 2015 vs 12.1 million silver ounces in 2014).

Equity Production   4Q15   4Q14   Var%   FY15   FY14   Var%

Gold Oz Direct Operations1

  90,034   104,166   -14%   358,003   422,135   -15%
Gold Oz including Associated Companies   182,247   244,854   -26%   758,575   845,515   -10%
Silver Oz Direct Operations1   6,314,489   5,350,072   18%   21,740,350   19,074,255   14%
Silver Oz including Associated Companies   6,506,921   5,491,990   18%   22,325,087   19,659,822   14%
Lead MT   8,779   6,012   46%   28,476   20,227   41%
Zinc MT   12,642   8,509   49%   43,750   22,038   99%
Copper MT Direct Operations1   5,034   5,886   -14%   17,674   23,678   -25%
Copper MT including Associated Companies   23,757   16,851   41%   66,032   68,106   -3%

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 Coimolache.

Orcopampa’s (100% owned by Buenaventura)

Production
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Gold   Oz   48,606   54,878   -11%   204,629   203,226   1%
Silver   Oz   170,254   143,925   18%   562,795   423,148   33%
             
Cost Applicable to Sales
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Gold   US$/Oz   693   697   -1%   680   777   -12%
         

Gold production at Orcopampa decreased 11% in 4Q15 (compared to 4Q14) due to lower ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 4Q15 was US$ 693/oz of gold, in line with the Cost Applicable to Sales (CAS) reported in 4Q14.

Gold production guidance for 2016 is 200k – 210k ounces.

Uchucchacua (100% owned by Buenaventura)

Production
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Silver   Oz   4,118,509   3,395,628   21%   13,919,922   12,055,570   15%
Zinc   MT   1,602   1,504   6%   5,692   6,349   -10%
Lead   MT   2,565   2,086   23%   8,433   7,605   11%
     

 

       
Cost Applicable to Sales
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Silver   US$/Oz   12.97   14.99   -13%   13.97   16.34   -15%
 

Silver production in 4Q15 increased 21% compared to 4Q14, due to higher ore treated and higher ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 4Q15 decreased 13% compared to 4Q14, mainly explained by lower labor cost due to higher exchange rate, lower consumable costs (explosive materials), reagents costs and more silver ounces sold (4.1 million silver ounces in 4Q15 compared to 3.2 million silver ounces in 4Q14).

Silver production guidance for 2016 is 15.5 million – 16.5 million ounces.

Mallay (100% owned by Buenaventura)

Production
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Silver   Oz   357,236   309,213   16%   1,285,361   1,216,034   6%
Zinc   MT   2,407   2,333   3%   9,173   9,893   -7%
Lead   MT   1,841   1,876   -2%   7,193   7,513   -4%
             
Cost Applicable to Sales
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Silver   US$/Oz   13.77   12.80   8%   13.90   13.76   1%
   

Silver production in 4Q15 increased 16% compared to 4Q14, due to higher ore treated (Appendix 2). Cost Applicable to Sales (CAS) in 4Q15 was 8% higher compared to 4Q14 due to lower by-product contribution.

Silver production guidance for 2016 is 1.5 million – 1.9 million ounces.

Julcani (100% owned by Buenaventura)

Production
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Silver   Oz   868,662   782,652   11%   3,266,453   3,084,347   6%
             
Cost Applicable to Sales
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Silver   US$/Oz   11.32   13.97   -19%   12.30   14.14   -13%
 

Silver production in 4Q15 increased 11% compared to 4Q14 production, due to higher ore treated and higher ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 4Q15 was 19% lower than 4Q14, mainly explained by lower labor cost expenses due to higher exchange rate and lower contractors costs due to fewer meters drifted (11% lower).

Silver production guidance for 2016 is 3.0 million – 3.4 million ounces.

La Zanja (53.06% owned by Buenaventura)

Production
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Gold   Oz   37,709   34,808   8%   141,071   143,573   -2%
Silver   Oz   89,111   82,594   8%   331,080   422,395   -22%
             
Cost Applicable to Sales
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Gold   US$/Oz   832   703   18%   789   569   39%
 

Gold production in 4Q15 increased 8% compared to 4Q14. CAS in 4Q15 increased 18% compared to 4Q14, mainly explained by higher ore treated and lower ore grade (0.88 Au g/MT in 4Q14 compared to 0.63 Au g/MT in 4Q15).

Gold production guidance for 2016 is 130k – 140k ounces.

Tantahuatay (40.10% owned by Buenaventura)

Production
        4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Gold   Oz   47,697   38,558   24%   144,782   143,643   1%
Silver   Oz   281,440   227,131   24%   879,832   754,357   17%
             
Cost Applicable to Sales
        4Q15   4Q15   Var %   FY 2015   FY 2014   Var %
Gold   US$/Oz   388   475   -18%   489   455   7%
 

Gold production in 4Q15 increased 24% compared to the figure reported in 4Q14. CAS in 4Q15 decreased 18% compared to 4Q14 mainly due to higher ore grade (0.54 Au g/MT in 4Q14 compared to 0.66 Au g/MT in 4Q15) from Cienaga Norte mine.

Gold production guidance for 2016 is 140k – 150k ounces

El Brocal (54.07%* owned by Buenaventura)

Production
        4Q15   4Q15   Var %   FY 2015   FY 2014   Var %
Copper   MT   9,165   10,749   -15%   32,061   43,282   -26%
Zinc   MT   15,966   8,640   85%   53,319   10,162   425%
Silver   Oz   1,183,101   921,625   28%   3,669,500   2,501,839   47%
             
Cost Applicable to Sales
        4Q15   4Q15   Var %   FY 2015   FY 2014   Var %
Copper   US$/MT   5,456   5,499   -1%   5,322   5,096   4%
Zinc   US$/MT   1,444   1,321   9%   1,601   1,369   17%
 

During 4Q15, Copper production decreased 15% compared to 4Q14, due to a lower recovery rate. Moreover, in 4Q15 zinc production increased 85% due to higher ore treated, despite the lower grade.

(*) Since January 2016, the new ownership of El Brocal is 56.29%.

In 4Q15, Zinc CAS increased 9% compared to 4Q14 mainly due to higher selling expenses. Copper CAS in 4Q15 was in line with the CAS reported in 4Q14.

Zinc production guidance for 2016 is 60k – 70k MT, while copper production guidance for 2016 is 35k – 45k MT.

General and Administrative Expenses

General and administrative expenses in 4Q15 were US$25.8million, 9% lower compared to the US$28.4 million in 4Q14 figure. This is mainly due to lower third-party services. For 2015, the expense was US$86.5 million (US$101.1 million in 2014).

Exploration in Non-Operating Areas

Exploration in non-operating areas during 4Q15 was US$5.0 million compared with the US$17.6 million in 3Q14. During the period, Buenaventura’s main exploration efforts were focused on the Tambomayo project (US$3.5 million) and Marcapunta (US$0.6 million). For 2015, the expense was US$30.6 million (US$50.0 million in 2014).

Share in Associated Companies

During 4Q15, Buenaventura’s share in associated companies was negative US$235.0 million, compared to negative US$113.8 million reported in 4Q14, composed by:

Share in the Result of Associates

(in millions of US$)

  4Q15   4Q14   Var %   FY 2015   FY 2014   Var %
Cerro Verde   -2.6   20.8   N.A.   6.5   77.9   -92%
Coimolache   6.5   5.0   30%   16.6   22.3   -25%
Yanacocha   -238.9   -139.7   71%   -196.5   -174.7   12%
Total   -235.0   -113.8   106%   -173.4   -74.6   132%
           

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 4Q15, gold production was 211,256 ounces, 34% lower than 4Q14 production (322,309 ounces). For 2015, gold production was 917,690 ounces, 5% lower than 969,944 ounces in 2014.

Gold production guidance at Yanacocha for 2016 is 600k – 650k ounces.

In 4Q15, Yanacocha reported net loss of US$547.4 million compared to a net loss of US$380.3 million reported in 4Q14 (Includes deferred income tax of US$510 million). CAS in 4Q15 was US$747/oz, 75% higher than the US$426/oz reported in 4Q14 mainly due to: i) a higher inventory write-down (US$34.7 million in 4Q15 compared to US$11.1 million in 4Q14), and ii) lower volume sold (216,733 gold ounces in 4Q15 vs 327,278 gold ounces in 4Q14).

Capital expenditures at Yanacocha were US$37.3 million in 4Q15, while for 2015 was US$96.2 million.

Yanacocha still has a strong pipeline of growth projects: Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha Verde (scoping) and Maqui Maqui (exploration).

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 4Q15 copper production was 95,619 MT (18,722 MT attributable to Buenaventura), a 71% increase compared to 4Q14 (56,001 MT and 10,965 MT attributable to Buenaventura). For 2015, copper production was 246,973 MT (48,357 MT attributable to Buenaventura).

During 4Q15, Cerro Verde reported a net loss of US$13.2 million compared to net profit of US$55.9 million in 4Q14. This was mainly due to a higher depreciation (related to the new concentrate plant) and a higher net loss from currency exchange difference, despite of the 71% increase in volume sold. For 2015, net income was US$33.3 million (compared to US$377.6 million in 2014).

Capital expenditures at Cerro Verde were US$274.1 million in 4Q15, and US$1,595.6 million in 2015.

Cerro Verde’s plant expansion was completed, in-line with schedule and budget (US$4.6 billion). It became the largest concentration facility (360K TPD) in the world and full plant capacity is expected to be reached in 1Q16.

Copper production guidance at Cerro Verde for 2016 is 550k MT – 600k MT.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to the net income in 4Q15 was US$6.5 million (US$5.0 million in 4Q14). For 2015, the contribution was US$16.6 million, compared to US$22.3 million reported in 2015.

Project Development and Exploration

The Tambomayo Project (100% ownership)

  • Detail engineering currently at 100% of development
  • Civil works are at 30% of progress (expected to be completed in 3Q16)
  • 100% of mayor equipment has been purchased (80% arrived to site)
  • CAPEX: US$ 340 M (Total disbursement as of 4Q15 US$158.3 M)
    • Exploration and mine development US$218 M (Disbursement as of 4Q15 S$64.4 M)
    • Civil works and Equipment US$122 M (Disbursement as of 4Q15 S$93.9 M)

The San Gabriel Project (100% ownership)

  • The project has been rescheduled in order to preserve cash flow
  • Feasibility studies were completed in 4Q15
  • Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 4Q16
  • Objective for 1S16:
    • Continue the construction of a 450 meters exploration ramp
    • Drilling program: 7,000 meters in order to confirm resources and certainty

Buenaventura´s Cash and Debt Situation

  • Currently BVN is in the process of raising US$ 270 million long-term syndicate loan.

Proceeds from this new debt will be used for the following:

a. Reprofiling of BVN´s current short term debt (US$ 232 million).

b. Partially finance the construction of the Tambomayo Project.

  • Yanacocha will distribute a cash dividend of US$ 300 million

BVN received US$ 131 million on February 19, 2016.

  • Cerro Verde - loan of US$ 125 million in 4Q15

In 4Q15, Cerro Verde received a loan of US$ 600 million from its shareholder in order to comply with the covenants of its syndicate loan ($1.8 billion).

  • El Brocal - capital increase of US$ 19 million in 1Q16

This capital increase was needed in order to comply with the covenants of its loan.

Recent events

At the Board of Directors’ meeting held February 25, 2016, the following resolutions were passed:

To call for the Annual Shareholders’ Meeting to be held on March 29, 2016, the following items will be proposed for approval:

a. Approve the Annual Report as of December, 31, 2015.

b. Approve the Financial Statements as of December, 31, 2015.

c. Appoint Ernst and Young (Paredes, Zalvidar, Burga y Asociados) as External Auditors for fiscal year 2016.

* * *

Company Description

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

Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, El Brocal, La Zanja and Coimolache and is developing the Tambomayo and San Gabriel projects.

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 2014 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 Associates (as of September 30, 2015)

  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*   56.29   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
Buenaventura Ingenieros S.A*   100.00   Engineering Consultant
(*)Consolidates
(**) Equity Accounting
 

APPENDIX 2

     
GOLD PRODUCTION
        4Q15   4Q14   %   FY15   FY14   %
Mining Unit   Operating Results   Underground
Orcopampa Ore Milled DMT 120,878   115,862   4%   458,222   454,694   1%
Ore Grade OZ/MT 0.42 0.48 -13% 0.46 0.46 1%
Recovery Rate % 93.9% 96.9% -3% 95.3% 97.1% -2%
    Ounces Produced*   48,606   54,878   -11%   204,629   202,227   1%
Mining Unit   Operating Results   Open Pit                    
La Zanja Ounces Produced 37,709 34,959 8% 141,071 143,724 -2%
Tantahuatay   Ounces Produced   47,697   38,558   24%   144,782   143,643   1%
* Includes ounces from retreatment of taling dams
 
                     
SILVER PRODUCTION
        4Q15   4Q14   %   FY15   FY14   %
Mining Unit   Operating Results   Underground
Uchucchacua Ore Milled DMT 318,219 287,970 11% 1,121,474 1,013,633 11%
Ore Grade OZ/MT 15.38 13.83 11% 14.80 14.56 2%
Recovery Rate % 84.2% 85.2% -1% 83.9% 81.7% 3%
    Ounces Produced   4,118,509   3,395,628   21%   13,919,922   12,055,570   15%
Julcani Ore Milled DMT 45,024 43,292 4% 177,948 167,760 6%
Ore Grade OZ/MT 20.06 19.02 5% 19.22 19.32 -1%
Recovery Rate % 96.2% 95.0% 1% 95.5% 95.2% 0%
    Ounces Produced   868,662   782,652   11%   3,266,453   3,084,347   6%
Mallay Ore Milled DMT 42,812 38,290 12% 158,124 148,058 7%
Ore Grade OZ/MT 8.93 8.64 3% 8.66 8.77 -1%
Recovery Rate % 93.4% 93.5% 0% 93.8% 93.7% 0%
    Ounces Produced   357,236   309,213   16%   1,285,361   1,216,034   6%
Mining Unit   Operating Results   Open Pit                    
Colquijirca   Ounces Produced   1,030,199   490,896   110%   2,811,391   603,342   366%
 
                     
ZINC PRODUCTION
        4Q15   4Q14   %   FY15   FY14   %
Mining Unit   Operating Results   Underground
Uchucchacua Ore Milled DMT 318,219 287,970 11% 1,121,474 1,013,633 11%
Ore Grade % 1.04% 0.90% 16% 1.05% 1.04% 1%
Recovery Rate % 48.02% 57.9% -17% 48.2% 60.2% -20%
    MT Produced   1,602   1,504   6%   5,693   6,349   -10%
Mallay Ore Milled DMT 42,812 38,290 12% 158,124 148,058 7%
Ore Grade % 6.5% 7.1% -8% 6.60% 7.79% -15%
Recovery Rate % 86.3% 86.3% 0% 87.9% 85.8% 2%
    MT Produced   2,407   2,333   3%   9,172   9,893   -7%
Mining Unit   Operating Results   Open Pit                    
Colquijirca   MT Produced   15,966   8,640   85%   53,319   10,162   425%
 

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

    4Q15   4Q14   FY 2015   FY 2014
Net Income   -315,297   -164,441   -375,545   -61,640
Add / Substract:   331,262   199,706   480,734   335,692
Provision for income tax, net   16,544   23,928   12,613   66,012
Share in associated companies by the equity method, net   234,996   113,842   173,375   74,600
Interest income   -8,585   -4,209   -11,026   -8,408
Interest expense   6,519   4,313   27,622   11,318
Loss on currency exchange difference   6,158   3,381   13,683   8,452
Long Term Compensation provision   330   -1,842   330   89
Depreciation and Amortization   63,279   57,684   242,464   208,698
Workers´ participation provision   266   -20   895   3,669
Adquiscion gain generated by subsidiary   0   27   0   -59,852
Loss from discontinued operations   4,583   4,830   9,523   31,114
Impairment of Long-Lived Assets   7,172   -2,228   11,255   0
EBITDA Buenaventura Direct Operations   15,965   35,265   105,189   274,052
EBITDA Yanacocha (43.65%)  

18,392

  105,971  

164,265

  205,695
EBITDA Cerro Verde (19.58%)   23,497   27,931   68,261   143,299
EBITDA Coimolache (40.01%)   14,755   12,335   40,360   48,941
Adjusted EBITDA (including Associated companies)  

72,609

  181,503  

378,075

  671,987
       

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: PROVEN AND PROBABLE RESERVES

GOLD          
% Ownership   MT (000)   Grade Oz/TMS   Oz (000)   Attributable (000)
 
Orcopampa 100.00 648 0.475 308 308
Julcani 100.00 289 0.016 5 5
Mallay 100.00 86 0.016 1 1
Tambomayo 100.00 1,081 0.303 328 328
Antapite 100.00 38 0.335 13 13
Breapampa 100.00 520 0.014 8 8
La Zanja 53.06 11,905 0.020 236 125
La Zanja (on Pads and Plant) 53.06 8 4
Tantahuatay (Oxides) 40.10 66,197 0.014 920 369
Tantahuatay PAD 40.10 11 4
El Brocal Marcapunta (Sulphides) 56.29 21,750 0.013 273 154
Yanacocha 43.65 5,057 2,207
                 
Total 102,514 0.070 7,167 3,526
 
SILVER
% Ownership   MT (000)   Grade Oz/TMS   Oz (000)   Attributable (000)
 
Uchucchacua (Silver - Sulphides) 100.00 3,947 15.000 59,208 59,208
Uchucchacua (Zinc - Sulphides) 100.00 324 5.850 1,896 1,896
Julcani 100.00 289 20.840 6,018 6,018
Breapampa 100.00 520 0.550 287 287
Mallay 100.00 86 10.970 948 948
Orcopampa 100.00 648 1.650 1,072 1,072
Tambomayo 100.00 1,081 9.260 10,007 10,007
La Zanja 53.06 11,905 0.130 1,574 835
La Zanja (on Pads and Plant) 53.06 825 438
Tantahuatay Oxidos 40.10 66,197 0.230 15,087 6,049
Tantahuatay PAD 40.10 67 27
El Brocal (Tajo Norte - La Llave) 54.07 39,698 0.880 34,934 18,889
El Brocal Marcapunta (Sulphides) 54.07 21,750 0.610 13,267 7,174
Yanacocha 43.65 60,000 26,190
 
Cerro Verde (Sulphides) 19.58 3,953,233 0.048 187,822 36,776
Cerro Verde (Oxides) 19.58 610,019 0.010 6,047 1,184
                 
Total 4,709,697 0.085 399,060 176,997
 
ZINC
% Ownership   MT (000)   % Zn   MT (000)   Attributable (000)
Uchucchacua (Plata - Sulphides) 100.00 3,947 1.43 57 57
Uchucchacua (Zinc - Sulphides) 100.00 324 6.24 20 20
Mallay 100.00 86 8.93 8 8
Tambomayo 100.00 1,081 3.01 33 33
El Brocal (Tajo Norte - La Llave) 54.07 39,698 2.52 1,000 541
                 
Total 45,136 2.48 1,117 658
 
 
LEAD
% Ownership   MT (000)   % Pb   MT (000)   Attributable (000)
 
Uchucchacua (Silver - Sulphides) 100.00 3,647 1.08 43 43
Uchucchacua (Zinc - Sulphides) 100.00 324 3.78 12 12
Julcani 100.00 289 2.52 7 7
Mallay 100.00 86 6.35 5 5
Tambomayo 100.00 1,081 2.00 22 22
El Brocal (Tajo Norte - La Llave) 54.07 39,698 0.86 341 185
                 
Total 45,125 0.95 431 274
 
 
COPPER
% Ownership   MT (000)   % Cu   MT (000)   Attributable (000)
 
Julcani 100.00 310 0.55 2 2
El Brocal Marcapunta (Sulphides) 54.07 21,750 2.25 489 265
 
Cerro Verde (Sulphides) 19.58 3,953,233 0.37 14,813 2,900
Cerro Verde (Oxides) 19.58 610,019 0.48 2,928 573
                 
Total 4,585,312 0.40 18,232 3,740
 
MOLYBDENUM
% Ownership   MT (000)   % Mo   Oz (000)   Attributable (000)
 
Cerro Verde (Sulphides) 19.58 3,953,233 0.014 553 108
Cerro Verde (Oxides) 19.58 610,019 0.003 18 4
                 
Total 4,563,252 0.013 572 112
 
Prices used for Reserves calculation:
Gold 1,250 US$/Oz - Silver 19 US$/Oz - Zinc 2,000 US$/MT - Lead 2,000 US$/MT - Copper 5,500 US$/MT
 

APPENDIX 5: COST APPLICABLE TO SALES RECONCILIATION

Reconciliation of Costs Applicable to Sales and Cost Applicable to Sales per Unit Sold

Cost applicable to sales consists of cost of sales, excluding depreciation and amortization, plus Selling expenses. Cost applicable to sales per unit sold for each mine consists of cost applicable to sales for a particular metal produced at a given mine divided by the volume of such metal produced at such mine in the specified period. We note that cost applicable to sales is not directly comparable to the cash operating cost figures disclosed in previously furnished earnings releases.

Cost applicable to sales and Cost applicable to sales per unit of mineral sold are not measures of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. We consider Cost applicable to sales and Cost applicable to sales per unit of mineral sold to be key measures in managing and evaluating our operating performance. These measures are widely reported in the precious metals industry as a benchmark for performance, but do not have standardized meanings. You should not consider Cost applicable to sales or Cost applicable to sales per unit of mineral sold as alternatives to cost of sales determined in accordance with IFRS, as indicators of our operating performance. Cost applicable to sales and Cost applicable to sales per unit of mineral sold are calculated without adjusting for by-product revenue amounts.

The tables below set forth (i) a reconciliation of consolidated Cost of sales, excluding depreciation and amortization to consolidated Cost applicable to sales, (ii) reconciliations of the components of Cost applicable to sales (by mine and mineral) to the corresponding consolidated line items set forth on our consolidated statements of profit or loss for the three and six months ended June 30, 2014 and 2015, 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 six months ended June 30, 2014 and 2015 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.

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 Dec 31 For the 12 months ended Dec 31
2015   2014 2015   2014
(in thousands of US$)
Consolidated Cost of sales excluding depreciation and amortization 156,848 166,971 590,405 614,539
Add:
Consolidated Exploration in units in operation 25,429 21,273 91,520 97,853
Consolidated Commercial deductions 60,998 54,862 196,211 184,483
Consolidated Selling expenses 6,666   3,684   19,481   16,605
Consolidated Cost applicable to sales 249,941   246,790   897,618   913,480
 
Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization (by mine and mineral) to consolidated Cost of sales:
                 
For the 3 months ended Dec 31 For the 12 months ended Dec 31
2015 2014 2015 2014

Cost of sales by mine and mineral

(in thousands of US$)
Julcani, Gold 9 8 49 3
Julcani, Silver 6,741 4,602 23,135 23,117
Julcani, Lead 485 377 1,906 1,891
Julcani, Copper 53 46 242 190
Mallay, Gold 148 0 201 0
Mallay, Silver 2,233 1,894 8,014 8,135
Mallay, Lead 1,342 1,539 5,190 5,959
Mallay, Zinc 1,316 1,988 6,256 7,497
Breapampa, Gold 4 8,158 9,780 35,389
Breapampa, Silver 48 734 1,681 2,459
Orcopampa, Gold 26,471 26,153 104,603 107,550
Orcopampa, Silver 897 714 3,525 3,070
Uchucchacua, Gold 7 0 25 0
Uchucchacua, Silver 31,879 32,068 110,724 132,110
Uchucchacua, Lead 1,745 2,141 6,377 8,115
Uchucchacua, Zinc 1,056 1,513 4,841 5,618
La Zanja, Gold 31,095 22,804 110,848 79,713
La Zanja, Silver 737 939 3,367 3,426
El Brocal, Gold 1,759 986 4,258 3,491
El Brocal, Silver 7,066 3,904 21,024 12,331
El Brocal, Lead 5,641 1,178 15,244 2,051
El Brocal, Zinc 10,475 5,701 42,157 6,478
El Brocal, Copper 22,449 25,538 68,711 96,934
Non Mining Units 3,193   23,984   38,246   69,011
Consolidated Cost of sales, excluding depreciation and amortization 156,848   166,971   590,405   614,539
 
Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units:
                 
For the 3 months ended Dec 31 For the 12 months ended Dec 31
2015 2014 2015 2014

Exploration expenses in units in operation by mine and mineral

(in thousands of US$)
Julcani, Gold 4 4 25 2
Julcani, Silver 2,641 2,253 11,598 10,072
Julcani, Lead 190 184 956 824
Julcani, Copper 21 23 121 83
Mallay, Gold 60 0 77 0
Mallay, Silver 902 791 3,073 2,942
Mallay, Lead 542 643 1,990 2,155
Mallay, Zinc 532 831 2,399 2,711
Breapampa, Gold 125 65 1,554 463
Breapampa, Silver 1,613 6 267 32
Orcopampa, Gold 9,643 9,937 40,307 50,378
Orcopampa, Silver 327 271 1,358 1,438
Uchucchacua, Gold 2 0 6 1
Uchucchacua, Silver 8,138 5,613 25,222 24,125
Uchucchacua, Lead 445 375 1,453 1,482
Uchucchacua, Zinc 270 265 1,103 1,026
La Zanja, Gold -24 13 11 115
La Zanja, Silver -1 1 0 5
El Brocal, Gold 0 0 0 0
El Brocal, Silver 0 0 0 0
El Brocal, Lead 0 0 0 0
El Brocal, Zinc 0 0 0 0
El Brocal, Copper 0 0 0 0
Non Mining Units 0   0   0   0
Consolidated Exploration expenses in units in operation 25,429   21,273   91,520   97,853
 
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 Dec 31 For the 12 months ended Dec 31
2015 2014 2015 2014

Commercial Deductions in units in operation by mine and mineral

(in thousands of US$)
Julcani, Gold 3 2 14 2
Julcani, Silver 2,007 1,295 7,258 6,148
Julcani, Lead 144 106 591 502
Julcani, Copper 17 12 81 53
Mallay, Silver 60 0 89 0
Mallay, Silver 1,216 832 4,098 3,687
Mallay, Lead 735 654 2,655 2,620
Mallay, Zinc 1,158 1,295 4,313 5,153
Breapampa, Gold 0 23 62 99
Breapampa, Silver 0 0 5 0
Orcopampa, Gold 55 87 255 288
Orcopampa, Silver 0 1 0 1
Uchucchacua, Gold 2 0 7 0
Uchucchacua, Silver 12,517 9,530 37,753 35,786
Uchucchacua, Lead 675 632 2,161 2,248
Uchucchacua, Zinc 1,499 1,012 5,457 3,850
La Zanja, Gold 53 38 194 240
La Zanja, Silver 6 0 18 4
El Brocal, Gold 1,925 1,203 4,847 3,777
El Brocal, Silver 3,992 3,587 13,583 12,345
El Brocal, Lead 2,269 642 6,669 1,317
El Brocal, Zinc 6,903 3,320 24,622 4,105
El Brocal, Copper 25,762 30,590 81,479 102,258
Non Mining Units 0   0   0   0
Consolidated Commercial deductions in units in operation 60,998   54,862   196,211   184,483
 
Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses:
                 
For the 3 months ended Dec 31 For the 12 months ended Dec 31
2015 2014 2015 2014

Selling expenses by mine and mineral

(in thousands of US$)
Julcani, Gold 0 0 2 0
Julcani, Silver 181 265 963 979
Julcani, Lead 13 22 79 80
Julcani, Copper 1 3 10 8
Mallay, Gold 11 0 15 0
Mallay, Silver 162 141 580 661
Mallay, Lead 98 115 376 484
Mallay, Zinc 96 148 453 609
Breapampa, Gold 0 62 99 367
Breapampa, Silver 2 6 17 26
Orcopampa, Gold 190 223 823 929
Orcopampa, Silver 6 6 28 27
Uchucchacua, Gold 0 0 1 0
Uchucchacua, Silver 1,063 868 3,228 3,099
Uchucchacua, Lead 58 58 186 190
Uchucchacua, Zinc 35 41 141 132
La Zanja, Gold 248 401 1,172 1,382
La Zanja, Silver 6 17 36 59
El Brocal, Gold 134 28 255 204
El Brocal, Silver 539 113 1,258 722
El Brocal, Lead 431 34 912 120
El Brocal, Zinc 799 165 2,522 379
El Brocal, Copper 1,713 737 4,110 5,677
Non Mining Units 879   232   2,217   470
Consolidated Selling expenses 6,666   3,684   19,481   16,605
 
                                         
JULCANI JULCANI
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 9   6,741   485 - 53 7,288 8 4,602 377 - 46 5,032 Cost of Sales (without D&A) (US$000) 49   23,135   1,906 - 242 25,333 3 23,117 1,891 - 190 25,202
Add: Add:
Exploration Expenses (US$000) 4 2,641 190 - 21 2,855 4 2,253 184 - 23 2,463 Exploration Expenses (US$000) 25 11,598 956 - 121 12,699 2 10,072 824 - 83 10,981
Commercial Deductions (US$000) 3 2,007 144 - 17 2,171 2 1,295 106 - 12 1,416 Commercial Deductions (US$000) 14 7,258 591 - 81 7,944 2 6,148 502 - 53 6,706
Selling Expenses (US$000) 0 181 13 - 1 195 0 265 22 - 3 290 Selling Expenses (US$000) 2 963 79 - 10 1,055 0 979 80 - 8 1,067
Cost Applicable to Sales (US$000) 16 11,570 832 - 92 12,510 14 8,414 689 - 84 9,202 Cost Applicable to Sales (US$000) 90 42,954 3,533 - 454 47,031 7 40,316 3,297 - 335 43,956
Divide: Divide:
Volume Sold   18   1,022,162   674   -   26   Not Applicable   15   602,165   398   -   15   Not Applicable Volume Sold   94   3,493,166   2,478   -   103   Not Applicable   12   2,851,318   2,057   -   64   No Aplicable
CAS   870   11.32   1,233   -   3,544   Not Applicable   962   13.97   1,731   -   5,603   Not Applicable CAS   955   12.30   1,425   -   4,416   No Applicable   603   14.14   1,603   -   5,195   No Applicable
 
MALLAY MALLAY
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     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) 148 2,233 1,342 1,316 - 5,039 - 1,894 1,539 1,988 - 5,421 Cost of Sales (without D&A) (US$000) 201 8,014 5,190 6,256 - 19,661 - 8,135 5,959 7,497 - 21,591
Add: Add:
Exploration Expenses (US$000) 60 902 542 532 - 2,035 - 791 643 831 - 2,265 Exploration Expenses (US$000) 77 3,073 1,990 2,399 - 7,539 - 2,942 2,155 2,711 - 7,807
Commercial Deductions (US$000) 60 1,216 735 1,158 - 3,168 - 832 654 1,295 - 2,781 Commercial Deductions (US$000) 89 4,098 2,655 4,313 - 11,155 - 3,687 2,620 5,153 - 11,460
Selling Expenses (US$000) 11 162 98 96 - 367 - 141 115 148 - 404 Selling Expenses (US$000) 15 580 376 453 - 1,424 - 661 484 609 - 1,754
Cost Applicable to Sales (US$000) 278 4,512 2,716 3,101 - 10,608 - 3,659 2,950 4,263 - 10,872 Cost Applicable to Sales (US$000) 381 15,766 10,211 13,421 - 39,778 - 15,425 11,217 15,970 - 42,613
Divide: Divide:
Volume Sold   292   327,697   1,765   1,981   -   Not Applicable   -   285,846   1,797   1,992   -   Not Applicable Volume Sold   396   1,134,528   6,612   7,482   -   Not Applicable   -   1,121,202   7,253   8,609   -   Not Applicable
CAS   954   13.77   1,539   1,566   -   Not Applicable   -   12.80   1,642   2,139   -   Not Applicable CAS   960   13.90   1,544   1,794   -   No Applicable   -   13.76   1,547   1,855   -   No Applicable
 
BREAPAMPA BREAPAMPA
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     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) 4 48 - - - 52 8,158 734 - - - 8,892 Cost of Sales (without D&A) (US$000) 9,780 1,681 - - - 11,462 35,389 2,459 - - - 37,848
Add: Add:
Exploration Expenses (US$000) 125 1,613 - - - 1,738 65 6 - - - 71 Exploration Expenses (US$000) 1,554 267 - - - 1,821 463 32 - - - 495
Commercial Deductions (US$000) 0 - - - - 0 23 - - - - 23 Commercial Deductions (US$000) 62 5 - - - 66 99 - - - - 99
Selling Expenses (US$000) 0 2 - - - 2 62 6 - - - 67 Selling Expenses (US$000) 99 17 - - - 116 367 26 - - - 393
Cost Applicable to Sales (US$000) 129 1,663 - - - 1,792 8,307 746 - - - 9,052 Cost Applicable to Sales (US$000) 11,495 1,970 - - - 13,466 36,318 2,517 - - - 38,835
Divide: Divide:
Volume Sold   -0   4,381   -   -   -   Not Applicable   14,456   98,441   -   -   -   Not Applicable Volume Sold   16,069   212,826   -   -   -   Not Applicable   80,358   383,733   -   -   -   Not Applicable
CAS   -   379.64   -   -   -   Not Applicable   575   7.57   -   -   -   Not Applicable CAS   715   9.26   -   -   -   No Applicable   452   6.56   -   -   -   No Applicable
 
ORCOPAMPA ORCOPAMPA
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     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) 26,471 897 - - - 27,368 26,153 714 - - - 26,868 Cost of Sales (without D&A) (US$000) 104,603 3,525 - - - 108,128 107,550 3,070 - - - 110,620
Add: Add:
Exploration Expenses (US$000) 9,643 327 - - - 9,970 9,937 271 - - - 10,208 Exploration Expenses (US$000) 40,307 1,358 - - - 41,666 50,378 1,438 - - - 51,816
Commercial Deductions (US$000) 55 - - - - 55 87 1 - - - 88 Commercial Deductions (US$000) 255 0 - - - 255 288 1 - - - 289
Selling Expenses (US$000) 190 6 - - - 196 223 6 - - - 229 Selling Expenses (US$000) 823 28 - - - 851 929 27 - - - 955
Cost Applicable to Sales (US$000) 36,358 1,230 - - - 37,588 36,400 993 - - - 37,392 Cost Applicable to Sales (US$000) 145,988 4,912 - - - 150,900 159,144 4,536 - - - 163,680
Divide: Divide:
Volume Sold   52,488   139,557   -   -   -   Not Applicable   52,195   108,290   -   -   -   Not Applicable Volume Sold   214,821   555,314   -   -   -   Not Applicable   204,862   401,782   -   -   -   Not Applicable
CAS   693   8.82   -   -   -   Not Applicable   697   9.17   -   -   -   Not Applicable CAS   680   8.85   -   -   -   No Applicable   777   11.29   -   -   -   No Applicable
 
UCHUCCHACUA UCHUCCHACUA
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 7 31,879 1,745 1,056 - 34,687 - 32,068 2,141 1,513 - 35,723 Cost of Sales (without D&A) (US$000) 25 110,724 6,377 4,841 - 121,967 - 132,110 8,115 5,618 - 145,843
Add: Add:
Exploration Expenses (US$000) 2 8,138.49 445.38 269.57 - 8,855.2 - 5,613 375 265 - 6,253 Exploration Expenses (US$000) 6 25,222 1,453 1,103 - 27,784 - 24,125 1,482 1,026 - 26,633
Commercial Deductions (US$000) 2 12,517 675 1,499 - 14,694 - 9,530 632 1,012 - 11,174 Commercial Deductions (US$000) 7 37,753 2,161 5,457 - 45,379 - 35,786 2,248 3,850 - 41,884
Selling Expenses (US$000) 0 1,063 58 35 - 1,156 - 868 58 41 - 967 Selling Expenses (US$000) 1 3,228 186 141 - 3,555 - 3,099 190 132 - 3,421
Cost Applicable to Sales (US$000) 11 53,597 2,924 2,860 - 59,392 - 48,079 3,206 2,831 - 54,117 Cost Applicable to Sales (US$000) 39 176,927 10,177 11,543 - 198,685 - 195,120 12,035 10,626 - 217,781
Divide: Divide:
Volume Sold   12   4,132,034   1,993   1,520   -   Not Applicable   -   3,206,509   1,665   1,013   -   Not Applicable Volume Sold   38   12,666,673   6,560   4,750   -   Not Applicable   -   11,940,167   6,530   4,288   -   Not Applicable
CAS   931   12.97   1,467   1,882   -   No Applicable   -   14.99   1,925   2,795   -   No Applicable CAS   1,016   13.97   1,551   2,430   -   No Applicable   -   16.34   1,843   2,478   -   No Applicable
 
LA ZANJA LA ZANJA
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     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) 31,095 737 - - - 31,832 22,804 939 - - - 23,743 Cost of Sales (without D&A) (US$000) 110,848 3,367 - - - 114,214 79,713 3,426 - - - 83,139
Add: Add:
Exploration Expenses (US$000) -24 -1 - - - -24 13 1 - - - 14 Exploration Expenses (US$000) 11 0 - - - 11 115 5 - - - 120
Commercial Deductions (US$000) 53 6 - - - 59 38 -0 - - - 38 Commercial Deductions (US$000) 194 18 - - - 212 240 4 - - - 244
Selling Expenses (US$000) 248 6 - - - 254 401 17 - - - 418 Selling Expenses (US$000) 1,172 36 - - - 1,207 1,382 59 - - - 1,441
Cost Applicable to Sales (US$000) 31,372 748 - - - 32,120 23,257 956 - - - 24,213 Cost Applicable to Sales (US$000) 112,224 3,421 - - - 115,645 81,450 3,495 - - - 84,944
Divide: Divide:
Volume Sold   37,706   68,585   -   -   -   Not Applicable   33,098   101,988   -   -   -   Not Applicable Volume Sold   142,299   324,151   -   -   -   Not Applicable   143,151   418,565   -   -   -   Not Applicable
CAS   832   10.90   -   -   -   Not Applicable   703   9.37   -   -   -   Not Applicable CAS   789   10.55   -   -   -   No Applicable   569   8.35   -   -   -   Not Applicable
 
BROCAL BROCAL
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 1,759 7,066 5,641 10,475 22,449 47,390 986 3,904 1,178 5,701 25,538 37,307 Cost of Sales (without D&A) (US$000) 4,258 21,024 15,244 42,157 68,711 151,394 3,491 12,331 2,051 6,478 96,934 121,285
Add: Add:
Exploration Expenses (US$000) - - - - - - - - - - - - Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 1,925 3,992 2,269 6,903 25,762 40,851 1,203 3,587 642 3,320 30,590 39,343 Commercial Deductions (US$000) 4,847 13,583 6,669 24,622 81,479 131,200 3,777 12,345 1,317 4,105 102,258 123,801
Selling Expenses (US$000) 134 539 431 799 1,713 3,617 28 113 34 165 737 1,077 Selling Expenses (US$000) 255 1,258 912 2,522 4,110 9,056 204 722 120 379 5,677 7,103
Cost Applicable to Sales (US$000) 3,818 11,597 8,340 18,177 49,924 91,858 2,218 7,604 1,855 9,185 56,865 77,727 Cost Applicable to Sales (US$000) 9,359 35,865 22,826 69,301 154,300 291,650 7,472 25,398 3,488 10,962 204,869 252,189
Divide: Divide:
Volume Sold   2,835   881,192   5,870   12,586   9,150   Not Applicable   2,278   672,417   1,609   6,955   10,436   Not Applicable Volume Sold   7,181   2,637,215   16,739   43,297   28,991   Not Applicable   7,874   1,928,243   2,759   8,007   40,198   Not Applicable
CAS   1,347   13.16   1,421   1,444   5,456   Not Applicable   973   11.31   1,152   1,321   5,449   Not Applicable CAS   1,303   13.60   1,364   1,601   5,322   No Applicable   949   13.17   1,264   1,369   5,096   Not Applicable
 
NON MINING COMPANIES NON MINING COMPANIES
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) - - - - - 3,193 - - - - - 23,984 Cost of Sales (without D&A) (US$000) - - - - - 38,246 - - - - - 69,011
Add: Add: - -
Selling Expenses (US$000)   -   -   -   -   -   879   -   -   -   -   -   232 Selling Expenses (US$000)   -   -   -   -   -   2,217   -   -   -   -   -   470
Total (US$000)   -   -   -   -   -   4,073   -   -   -   -   -   24,216 Total (US$000)   -   -   -   -   -   40,463   -   -   -   -   -   69,481
 
BUENAVENTURA CONSOLIDATED BUENAVENTURA CONSOLIDATED
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     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) 59,493 49,601 9,212 12,847 22,502 156,848 58,109 44,856 5,235 9,203 25,584 166,971 Cost of Sales (without D&A) (US$000) 229,763 171,470 28,718 53,254 68,953 590,405 226,146 184,648 18,016 19,593 97,124 614,539
Add: Add:
Exploration Expenses (US$000) 9,809 13,621 1,177 801 21 25,429 10,019 8,935 1,202 1,096 23 21,273 Exploration Expenses (US$000) 41,980 41,519 4,399 3,502 121 91,520 50,957 38,614 4,461 3,737 83 97,852
Commercial Deductions (US$000) 2,098 19,738 3,824 9,560 25,778 60,998 1,353 15,245 2,035 5,627 30,602 54,862 Commercial Deductions (US$000) 5,467 62,716 12,077 34,392 81,560 196,211 4,405 57,972 6,686 13,109 102,312 184,483
Selling Expenses (US$000) 583 1,959 599 930 1,715 6,666 714 1,415 228 354 740 3,684 Selling Expenses (US$000) 2,366 6,109 1,553 3,116 4,120 19,481 2,883 5,573 875 1,120 5,685 16,605
Cost Applicable to Sales (US$000) 71,983 84,919 14,812 24,139 50,016 249,941 70,196 70,450 8,700 16,279 56,949 246,790 Cost Applicable to Sales (US$000) 279,576 281,814 46,747 94,264 154,754 897,618 284,391 286,807 30,038 37,559 205,203 913,479
Divide: Divide:
Volume Sold   93,352   6,575,608   10,302   16,087   9,176   Not Applicable   102,043   5,075,656   5,470   9,961   10,451   Not Applicable Volume Sold   380,899   21,023,873   32,389   55,529   29,094   Not Applicable   436,257   19,045,010   18,599   20,904   40,263   Not Applicable
CAS   771   12.91   1,438   1,501   5,451   Not Applicable   688   13.88   1,591   1,634   5,449   Not Applicable CAS   734   13.40   1,443   1,698   5,319   Not Applicable   652   15.06   1,615   1,797   5,097   Not Applicable
 
COIMOLACHE COIMOLACHE
4Q 2015 4Q 2014 FY 2015 FY 2014
    GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL     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) 16,925 1,368 - - - 18,292 14,903 1,167 - - - 16,070 Cost of Sales (without D&A) (US$000) 55,952 4,576 - - - 60,527 55,041 4,237 - - - 59,278
Add: Add:
Exploration Expenses (US$000) 1,578 128 - - - 1,706 3,510 275 - - - 3,785 Exploration Expenses (US$000) 12,598 1,030 - - - 13,628 8,178 629 - - - 8,808
Commercial Deductions (US$000) 267 30 - - - 298 202 19 - - - 220 Commercial Deductions (US$000) 776 71 - - - 847 453 34 - - - 487
Selling Expenses (US$000) 380 31 - - - 411 278 22 - - - 300 Selling Expenses (US$000) 1,028 84 - - - 1,112 1,001 77 - - - 1,078
Cost Applicable to Sales (US$000) 19,151 1,556 - - - 20,707 18,893 1,482 - - - 20,375 Cost Applicable to Sales (US$000) 70,353 5,761 - - - 76,114 64,673 4,977 - - - 69,650
Divide: Divide:
Volume Sold   49,363   294,995   -   -   -   Not Applicable   39,776   233,169   -   -   -   Not Applicable Volume Sold   143,791   874,271   -   -   -   Not Applicable   142,084   741,525   -   -   -   Not Applicable
CAS   388   5.28   -   -   -   Not Applicable   475   6.36   -   -   -   Not Applicable CAS   489   6.59   -   -   -   No Applicable   455   6.71   -   -   -   Not Applicable
 

APPENDIX 6: ALL-IN SUSTAINING COST

All-in Sustaining Cost for 4Q15                
 
Buenaventura1 La Zanja Tantahuatay Attributable Production2

4Q15

4Q15

4Q15

4Q15

Au Ounces Sold BVN 90,462
Au Ounces bought from La Zanja -37,652
Au Ounces Sold Net 52,810 37,847 49,363 92,684
 

4Q15

4Q15

4Q15

4Q15

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 Sales3 78,768 1,492 19,617 518 18,292 371 96,511 1,041
Exploration in Operating Units 25,492 483 549 15 1,706 35 26,467 286
Royalties 5,041 95 0 0 0 0 5,041 54
Comercial Deductions4 20,088 380 873 23 298 6 20,671 223
Selling Expenses 1,913 36 254 7 411 8 2,212 24
Administrative Expenses5 11,481 217 1,051 28 821 17 12,368 133
Other Expenses 0 0 4,018 106 1,502 30 2,734 30
Other Incomes -2,898 -55 -5,638 -149 -2,249 -46 -6,791 -73
Other administrative charges 0 0 2,718 72 564 11 1,668 18
Sustaining Capex6 16,209 307 1,592 42 15,865 321 23,414 253
 
By-product Credit -93,749 -1,775 -977 -26 -4,346 -88 -96,010 -1,036
 
All-in Sustaining Cost 62,345 1,181 24,057 636 32,864 666 88,286 953

*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. (Does not consider El Brocal)
2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.
 
               
All-in Sustaining Cost for FY15
 
Buenaventura1 La Zanja Coimolache Attributable Production2

FY15

FY15

FY15

FY15

Au Ounces Sold BVN 373,548
Au Ounces bought from La Zanja -142,129
Au Ounces Sold Net 231,419 138,465 143,791 362,541
 

FY15

FY15

FY15

FY15

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 Sales3 307,709 1,330 106,749 771 60,527 421 388,619 1,072
Exploration in Operating Units 91,548 396 8,995 65 13,628 95 101,785 281
Royalties 21,942 95 0 0 0 0 21,942 61
Comercial Deductions4 64,799 280 3,367 24 847 6 66,925 185
Selling Expenses 7,001 30 1,207 9 1,112 8 8,087 22
Administrative Expenses5 47,125 204 2,251 16 2,185 15 49,195 136
Other Expenses 0 0 14,174 102 7,136 50 10,382 29
Other Incomes -6,881 -30 -21,676 -157 -9,270 -64 -22,099 -61
Other administrative charges 0 0 8,190 59 1,369 10 4,894 14
Sustaining Capex6 38,861 168 27,615 199 48,509 337 72,964 201
 
By-product Credit -320,485 -1,385 -4,947 -36 -13,468 -94 -328,510 -906
 
All-in Sustaining Cost 251,619 1,087 145,926 1,054 112,575 783 374,184 1,032

*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. (Does not consider El Brocal)
2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.
 

APPENDIX 7 (See following pages)

Compañía de Minas Buenaventura S.A.A. and Subsidiaries    
Consolidated Statement of Financial Position
As of December 31, 2015 and December 31, 2014

2015

2014

Assets US$(000) US$(000)
Current assets
Cash and cash equivalents 78,519 78,512
Trade and other accounts receivable, net 219,862 281,604
Income tax credit 45,919 53,746
Prepaid expenses 8,231 16,954
Hedge derivative financial instruments - 3,688
Embedded derivatives for concentrate sales, net - -
Inventory, net 101,473 150,284
Total current assets 454,004 584,788
Assets classified as held for sale 15,592 18,683
469,596 603,471
 
Non-current assets
Trade and other accounts receivable, net 162,567 26,651
Long-term inventory 26,029 34,088
Investment in associates 2,043,983 2,224,381
Mining concessions, development costs, property, plant and equipment, net 1,747,624 1,715,452
Investment properties 10,719 11,200
Deferred income tax asset 41,575 47,675
Prepaid expenses 29,235 -
Other assets, net 15,853 9,356
Total non-current assets 4,077,585 4,068,803
   
Total assets 4,547,181 4,672,274
 
 
Liabilities and shareholders’ equity
Current liabilities
Overdraft and bank loans 285,302 40,000
Trade and other accounts payable 247,114 254,000
Provisions 49,829 67,895
Income tax payable 2,444 3,556
Hedge derivative financial instruments 10,643 -
Embedded derivatives for concentrate sales, net 1,694 9,072
Financial obligations 33,394 69,950
Total current liabilities 630,420 444,473
 
Liabilities directly associated with assets classified as held for sale 20,611 28,890
651,031 473,363
 
 
Non-current liabilities
Financial liability at fair value through profit or loss 16,994 23,026
Trade and other accounts payable 15,057 15,240
Provisions 141,885 63,571
Financial obligations 320,316 313,355
Deferred income tax liability 12,662 21,594
Total non-current liabilities 506,914 436,786
   
Total liabilities 1,157,945 910,149
 
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 162,714 162,710
Other reserves 269 269
Retained earnings 2,024,895 2,328,423
Other equity reserves 2,240 1,755
3,161,066 3,464,105
Non-controlling interest 228,170 298,020
Total shareholders’ equity 3,389,236 3,762,125
   
Total liabilities and shareholders’ equity 4,547,181 4,672,274

 

 

   
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Income
For the three and twelve month periods ended December 31, 2015 and 2014

For the three month period
ended December, 31

For the twelve month period
ended December, 31

2015

2014

2015

2014

US$(000) US$(000) US$(000) US$(000)
Operating income
Net sales 227,494 264,550 919,450 1,138,913
Royalty income 7,214 11,911 32,414 36,867
Total operating income 234,708 276,461 951,864 1,175,780
 
Operating costs
Cost of sales, without considering depreciation and amortization (156,848) (166,971) (590,405) (614,539)
Exploration in operating units (25,429) (21,273) (91,520) (97,852)
Depreciation and amortization (63,280) (57,684) (242,465) (208,698)
Mining royalties (5,444) (6,630) (27,407) (28,440)
Total operating costs (251,001) (252,558) (951,797) (949,529)
       
Gross profit (16,293) 23,903 67 226,251
 
Operating expenses
Administrative expenses (25,753) (28,443) (86,532) (101,102)
Exploration in non-operating areas (4,950) (17,632) (30,610) (50,007)
Selling expenses (6,666) (3,684) (19,481) (16,605)
Impairment of long-lived assets (7,172) 2,228 (11,255) -
Other, net 7,905 5,299 209 3,059
Total operating expenses (36,636) (42,232) (147,669) (164,655)
 
Operating profit (52,929) (18,329) (147,602) 61,596
 
Other income, net
Share in the results of associates under equity method (234,996) (113,842) (173,375) (74,600)
Financial income 8,585 4,209 11,026 8,408
Financial expenses (6,519) (4,313) (27,622) (11,318)
Net loss from currency exchange difference (6,158) (3,381) (13,683) (8,452)
Adquiscion gain generated by subsidiary - (27) - 59,852
Total other income, net (239,088) (117,354) (203,654) (26,110)
 
Profit before income taxes and non-controlling interest (292,017) (135,683) (351,256) 35,486
 
Income taxes (18,697) (23,928) (14,766) (66,012)
       
Net profit (310,714) (159,611) (366,022) (30,526)
 
Discontinued operations
Loss from discontinued operations (4,583) (4,830) (9,523) (31,114)
Net Income (315,297) (164,441) (375,545) (61,640)
 
Attributable to:
Owners of the parent (292,554) (161,377) (317,210) (76,065)
Non-controlling interest (22,743) (3,064) (58,335) 14,425
(315,297) (164,441) (375,545) (61,640)
 
Basic and diluted earnings per share attributable
to owners of the parent, stated in U.S. dollars (1.15) (0.63) (1.25) (0.30)
 
Weighted average number of shares outstanding
(common and investment), in units 254,186,867 254,186,867 254,186,867 254,186,867
 
   
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Cash Flows
For the three and twelve month periods ended December 31, 2015 and 2014

For the three month period
ended December, 31

For the twelve month period
ended December, 31

2015

2014

2015

2014

US$(000) US$(000) US$(000) US$(000)
Operating activities
Proceeds from sales (243,306) (288,003) 965,273 1,144,394
Value Added Tax (VAT) recovered (6,908) - 81,692 39,685
Royalties received (10,017) (9,104) 38,983 31,252
Dividends received (1,916) (6,012) 6,691 12,938
Interest received (1,153) (4,027) 3,650 8,333
Payments to suppliers and third-parties 173,546 285,678 (727,017) (805,413)
Payments to employees 47,409 46,424 (175,329) (203,496)
Payment of income tax 4,943 1,768 (22,330) (33,161)
Payment of royalties 5,429 5,783 (22,836) (22,631)
Payment of interest 4,235 4,032 (21,518) (9,405)
 
Net cash and cash equivalents provided by operating activities (27,738) 36,539 127,259 162,496
 
Investing activities
Proceeds from settlement of financial assets at fair value through profit or loss - 80 - -
Proceeds from collections of loans to associates 141 - - 15,553
Proceeds from sales of mining concessions, property, plant and equipment (2,892) (1,512) 5,481 1,681
Proceeds from settlement of investment in shares - - - -
Acquisitions of mining concessions, development costs, property, plant and equipment 44,759 (14,419) (211,286) (227,564)
Acquisitions of investment properties - (11,705) - -
Loans 104,829 - (125,629) -
Payments for acquisitions of other assets 10,238 - (10,238) -
Payment for purchase of investments - (57) - (80,316)
Opening of term deposits (7,350) - - -
Contributions and investments in associates   1,112 - (2,012)
 
Net cash and cash equivalents used in investing activities 149,725 (26,501) (341,672) (292,658)
 
Financing activities
Increase of bank loans (104,503) 504 344,503 40,000
Payment of bank loans (90,000) -
Increase in financial obligations 9,704 9,433 296 177,125
Payment of financial obligations 21 2,433 (29,891) (42,205)
Dividends paid (70) 5,845 - (8,642)
Dividends paid to non-controlling interest 2,440 2,640 (10,488) (8,880)
Purchase of associates' shares     - -
 
Net cash and cash equivalents provided by (used in) financing activities (92,408) 20,855 214,420 157,398
 
Net increase (decrease) in cash and cash equivalents during the period 29,579 30,893 7 27,236
Cash and cash equivalents at the beginning of the period 48,940 47,619 78,512 51,276
       
Cash and cash equivalents at period-end 78,519 78,512 78,519 78,512
 

APPENDIX 8

 

For the three month period
ended December, 31

 

For the twelve month period
ended December, 31

2015

2015

US$(000) US$(000)

Reconciliation of net profit (loss) to cash and cash equivalents provided by
operating activities

 
Net profit (loss) attributable to owners of the parent 292,554 (317,210)
-
Plus (less): -
Depreciation and amortization (63,280) 242,465
Provision for impairment of inventories 973 12,737
Net loss (gain) on sales of mining concessions, property, plant and equipment 14,060 (440)
Net loss from currency exchange difference (6,039) 13,564
Provision for impairment of long-lived assets (7,452) 11,255
Accretion expense of provision for closure of mining units and exploration projects (412) 3,343
Provision for interest payable 1,659
Allowance for doubtful accounts 1,101
Provision for employee bonus 254 (119)
Net share in the results of associates under equity method (234,996) 173,375
Net profit (loss) attributable to non-controlling interest 22,743 (58,335)
Deferred income tax expense (income) (15,031) 541
Provision for estimated fair value of embedded derivatives related to concentrate 812 (7,159)
sales and adjustments on open liquidations 0
Other provisions (18,239) 18,670
-
Net changes in operating assets and liabilities -
-
Decrease (increase) in operating assets -
Trade and other accounts receivable, net 125,467 (73,497)
Inventory, net (58,592) 70,248
Income tax credit (2,437) 7,827
Prepaid expenses 27,727 (20,485)
-
Increase (decrease) in operating liabilities -
Trade and other accounts payable (25,779) (9,431)
Income tax payable (55,278) 54,331
Provisions (25,637) (1,112)
0
Dividends received (1,916) 6,691
   
Net cash and cash equivalents provided by operating activities (27,738) 127,259

Contacts

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

Contacts

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