6-K 1 a51977415.htm BUENAVENTURA MINING COMPANY INC. 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2019
Commission File Number 001-14370
COMPANIA DE MINAS BUENAVENTURA S.A.A.
(Exact name of registrant as specified in its charter)
BUENAVENTURA MINING COMPANY INC.
(Translation of registrant’s name into English)
Republic of Peru
(Jurisdiction of incorporation or organization)
CARLOS VILLARAN 790
SANTA CATALINA, LIMA 13, PERU
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ____X___ Form 40-F _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.

Buenaventura Announces
First Quarter 2019 Results

Lima, Peru, April 30, 2019 – Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced results for the first quarter (1Q19) period ended March 31, 2019. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non-GAAP basis and are stated in U.S. dollars (US$).

First Quarter 2019 Highlights:

●
During 1Q19, Buenaventura generated US$ 8.0 million in additional EBITDA due to continued success of the Company’s De-Bottlenecking Program.
●
1Q19 EBITDA from direct operations was US$ 24.7 million, compared to US$ 99.1 million reported in 1Q18, primarily due to lower metal prices and a reduction in volume sold at the Company’s Orcopampa, Tambomayo and Uchucchacua mines. The decrease in 1Q 2019 EBITDA was also due to increased concentrate inventories generated at Tambomayo.
●
1Q19 Adjusted EBITDA including associated companies reached US$ 155.2 million, compared to US$ 175.2 million in 1Q18.
●
1Q19 Net Income was US$ 27.3 million, compared to a net income of US$ 28.4 for the same period in 2018.
●
1Q19 CAPEX was US$ 8.5 million, compared to US$ 21.2 for the same period in 2018.
●
Subsequent to a detailed internal analysis, Buenaventura confirms annual profitability guidance (i.e. EBITDA and FCF) per the Company’s annual production guidance press release dated April 15, 2019.
●
At Cerro Verde, a dividend of US$ 150 million (US$ 29.4 million attributable to Buenaventura) was declared on March 29, 2019 and was paid on April 30, 2019.
●
At the Yanococha Sulfides Project, the Environmental Impact Assessment study was approved in March 2019.

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

 
1Q19
1Q18
Var%
Total Revenues
186.2
316.9
-41%
Operating Profit
-29.1
41.3
N.A
EBITDA Direct Operations
24.7
99.1
-75%
Adjusted EBITDA (Inc Associates)
155.2
175.2
-11%
Net Income
27.3
28.4
-4%
EPS*
0.107
0.112
-4%

(*) as of March 31, 2019 Buenaventura had a weighted average number of shares outstanding of 253,986,190.

Operating Revenues
 
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 2 of 26


 
Operating Revenues
 

During 1Q19, net sales were US$ 180.7 million; a 42% decrease compared to the US$ 312.5 million reported in 1Q18. This result was primarily due to a decrease in all metals prices as well as lower sales volume of gold, silver, zinc and copper.

Royalty income increased 24%, from US$ 4.4 million in 1Q18 to US$ 5.5 million in 1Q19. This was due to a 24% increase of revenues at Yanacocha.


Operating Highlights
1Q19
1Q18
Var%
Net Sales
(in millions of US$)
180.7
312.5
-42%
Average Realized Gold Price (US$/oz) (1) (2)
1,301
1,344
-3%
Average Realized Gold Price (US$/oz) inc. Affiliates (3)
1,305
1,341
-3%
Average Realized Silver Price (US$/oz) (1) (2)
15.45
16.20
-5%
Average Realized Lead Price (US$/MT) (1) (2)
2,055
2,667
-23%
Average Realized
Zinc Price (US$/MT) (1) (2)
2,813
3,451
-18%
Average Realized Copper Price (US$/MT) (1) (2)
6,122
6,864
-11%



Volume Sold
1Q19
1Q18
Var%
Gold Oz Direct Operations (1)
35,587
94,120
-62%
Gold Oz inc. Associated Companies (3)
106,246
152,261
-30%
Silver Oz (1)
3,501,679
5,871,687
-40%
Lead MT (1)
9,378
7,911
19%
Zinc MT (1)
14,768
17,561
-16%
Copper MT (1)
8,317
9,883
-16%


(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, 40.095% of Coimolache and 43.65% of Yanacocha.


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 3 of 26


 
Production and Operating Costs
 

In 1Q19, Buenaventura’s gold equity production from direct operations was 39,337 ounces; a 55% decrease as compared to 87,617 gold ounces in 1Q18, primarily due an 85% YoY decrease in production at Orcopampa, a 29% YoY decrease in Tambomayo and a 23% YoY decrease at La Zanja. In 1Q19, gold production including associated companies was 112,912 ounces; a 22% decrease as compared to the same period 2018. Silver equity production decreased by 45% compared to 1Q18, primarily due to a 55% decrease in production at the Uchucchacua mine due to the 21-day strike in January 2019 and to the heavy rainfall during the rainy season.  Zinc and Copper equity production were lower during 1Q19 compared to 1Q18 primarily due to decreased production at El Brocal due to the heavy rainy season.


Equity Production
1Q19
1Q18
Var%
Gold Oz Direct Operations(1)
39,337
87,617
-55%
Gold Oz including Associated(2) Companies
112,912
145,109
-22%
Silver Oz Direct Operations(1)
3,669,243
6,666,745
-45%
Silver Oz including Associated Companies
3,994,851
7,216,248
-100%
Lead MT
8,236
8,124
1%
Zinc MT
12,840
16,565
-22%
Copper MT Direct Operations(1)
5,484
6,477
-15%
Copper MT including Associated Companies
28,674
28,114
2%


Consolidated Production
1Q19
1Q18
Var%
Gold Oz(3)
47,046
98,647
-52%
Silver Oz(3)
3,987,154
6,982,187
-43%
Lead MT(3)
10,176
9,565
6%
Zinc MT(3)
16,877
21,886
-23%
Copper MT(3)
8,900
10,520
-15%


(1)
Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 61.43% of El Brocal.
(2)
Consider 100% of Buenaventura´s operating units, 53.06% of La Zanja, 61.43% of el Brocal, 40.095% of Coimolache and 43.65% of Yanacocha.
(3)
Considers 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal.


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 4 of 26


Tambomayo (100% owned by Buenaventura)

Production
 
 
1Q19
1Q18
Var %
Gold
Oz
24,034
33,693
-29%
Silver
Oz
515,242
1,019,915
-49%
 
 
 
 
 
Cost Applicable to Sales
 
 
1Q19
1Q18
Var %
Gold
US$/Oz
710
522
36%

1Q19 year on year gold production at Tambomayo decreased 29% mainly due to lower ore grades and reduced recovery rates. Cost Applicable to Sales (CAS) in 1Q19 increased 36%, to 710 US$/Oz, compared to 522 US$/Oz in 1Q18 mainly due to a reduction in volume sold.

During the 1Q19, the plant flow sheet was modified as was previously announced related to the De-Bottlenecking Program, in order to reduce cost. Due to this change, more concentrates inventory was generated than expected at Tambomayo. This inventory will be sold in the second quarter 2019.

Gold production guidance for 2019 is 90k – 110k ounces and silver production guidance is 2.5M – 3.0M ounces.

Orcopampa (100% owned by Buenaventura)

Production
 
 
1Q19
1Q18
Var %
Gold
Oz
5,949
39,987
-85%
Silver
Oz
3,188
86,002
-96%
 
 
 
 
 
Cost Applicable to Sales
 
 
1Q19
1Q18
Var %
Gold
US$/Oz
2,468
864
186%

The decrease gold production at Orcopampa in 1Q19 was primarily due to the decision made by the Company’s management to cease mine production in January in order to centralize the operation; prioritizing the De-Bottlenecking Program over ore extraction. Cost Applicable to Sales (CAS) increased to 2,468 US$/Oz in 1Q19, compared to 864 US$/Oz in 1Q18, primarily due to the related decrease in volume sold.

Gold production guidance for 2019 is 75k – 90k ounces.

La Zanja (53.06% owned by Buenaventura)

Production
 
 
1Q19
1Q18
Var %
Gold
Oz
13,616
17,722
-23%
Silver
Oz
49,182
64,412
-24%
 
 
 
 
 
Cost Applicable to Sales
 
 
1Q19
1Q18
Var %
Gold
US$/Oz
961
1,016
-5%

Gold production in 1Q19 decreased by 23% year on year, in line with the mine production plan. 1Q19 Cost Applicable to Sales (CAS) was in-line with the same figure reported in 1Q18.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 5 of 26


Gold production guidance for 2019 is 25k – 35k ounces.


Coimolache (40.10% owned by Buenaventura)

Production
 
 
1Q19
1Q18
Var %
Gold
Oz
26,273
29,915
-12%
Silver
Oz
76,360
179,906
-58%
 
 
 
 
 
Cost Applicable to Sales
 
 
1Q19
1Q18
Var %
Gold
US$/Oz
727
658
10%

1Q19 gold production at Coimolache decreased by 12% year on year, in line with the mine production plan. 1Q19 Cost Applicable to Sales (CAS) increased by 10%, compared to 658 US$/Oz in 1Q18, due to an increase in hauling expenses largely associated with the purchase of ore from Goldfields.

Gold production guidance for 2019 is 150k – 170k ounces

Uchucchacua (100% owned by Buenaventura)

Production
 
 
1Q19
1Q18
Var %
Silver
Oz
1,996,439
4,413,249
-55%
Zinc
MT
3,904
4,575
-15%
Lead
MT
2,959
4,184
-29%
 
 
 
 
 
Cost Applicable to Sales
 
 
1Q19
1Q18
Var %
Silver
US$/Oz
11.79
9.77
21%

1Q19 silver production at Uchucchacua decreased primarily due to the strike that lasted 21 days in January 2019, as well as due to the impact of significant rains during the heavy rainy season during the first quarter 2019. 1Q19 Cost Applicable to Sales (CAS) of 11.79 US$/Oz was 21% higher than 9.77 US$/Oz in 1Q18, primarily due to a 52% YoY decrease in volume sold.

Due to the aforementioned issues, 2019 silver production guidance for Uchucchacua has been reduced to 13.0 million – 14.0 million ounces.

Julcani (100% owned by Buenaventura)

Production
 
 
1Q19
1Q18
Var %
Silver
Oz
658,715
504,155
31%
 
 
 
 
 
Cost Applicable to Sales
 
 
1Q19
1Q18
Var %
Silver
US$/Oz
14.05
16.69
-16%



Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 6 of 26


1Q19 silver production increased 31% YoY primarily due to a 23% YoY increase in amount of ore treated and a 7% YoY increase in ore grades. 1Q19 Cost Applicable to Sales (CAS) of 14.05 US$/Oz decreased by 16% as compared to 16.69 US$/Oz in 1Q18, mainly due to the Company’s success in centralizing the operation.

Silver production guidance for 2019 is 2.2 million – 2.5 million ounces.

El Brocal (61.43% owned by Buenaventura)

Production
 
 
1Q19
1Q18
Var %
Copper
MT
8,856
10,482
-16%
Zinc
MT
10,467
13,797
-24%
Silver
Oz
764,388
739,454
3%
 
 
 
 
 
Cost Applicable to Sales
 
 
1Q19
1Q18
Var %
Copper
US$/MT
5,890
4,989
18%
Zinc
US$/MT
2,208
1,729
28%

1Q19 copper production decreased 16% mainly due to 16% YoY decrease in ore grades. Zinc production in 1Q19 decreased 24% compared to 1Q18, mainly due to a 20% decrease in ore grades and a 9% YoY decrease in recovery rate. In both cases, the production decrease is primarily due to the heavy rainy season.

In 1Q19, zinc Cost Applicable to Sales (CAS) increased by 28% compared to 1,729 US$/MT, primarily due to a decrease in volume sold and higher commercial deductions. Copper CAS in 1Q19 increased by 18%, reaching 5,890 US$/MT, compared to 4,989 US$/MT in 1Q18, mainly due to lower volume sold.

Zinc production guidance for 2019 is 57k – 65k MT, while copper production guidance for 2019 is 47k – 52k MT.

 
General and Administrative Expenses

 

1Q19 General and Administrative expenses were US$ 19.4 million; a 22% decrease as compared to the US$ 25.0 million in 1Q18, mainly due to a decrease in compensation provisions.

 
Exploration in Non-Operating Areas
 

1Q19 Exploration costs in Non-Operating Areas were US$ 3.4 million compared with US$ 6.8 million in 1Q18. During the period, Buenaventura primarily focused its exploration efforts on the Yumpaq (US$ 1.7 million) and Emperatriz projects (US$ 0.4 million).
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 7 of 26


 
De-bottlenecking Program
 

It is important to highlight the following updates regarding the De-bottlenecking Program during 1Q19:
Tambomayo’s flow sheet has successfully been changed, with strong initial results sooner than expected, particularly related to cost reduction.

The centralization process of Tambomayo and Uchucchacua has been advancing as expected. Full potential should be achieved in the coming quarters with no problems.




Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 8 of 26


 
Share in Associated Companies
 

During 1Q19, Buenaventura’s share in associated companies was US$ 49.5 million, compared to US$ 14.8 million reported in 1Q18, comprised of:

Share in the Result of Associates
(in millions of US$)
1Q19
1Q18
Var %
Cerro Verde
39.2
27.1
45%
Yanacocha
9.7
-14.8
N.A.
Coimolache
0.6
2.6
-75%
Total
49.5
14.8
234%

YANACOCHA

At Yanacocha, which is 43.65% owned by Buenaventura, 1Q19 gold production was 144,423 ounces; 63,041 ounces of which were attributable to Buenaventura. This represents a 39% increase as compared to the 104,233 ounces produced in 1Q18; 45,498 ounces of which were attributable to Buenaventura.

Gold production guidance at Yanacocha for 2019 is 510k ounces.

In 1Q19, Yanacocha reported a net income of US$ 22.1 million, compared to a net loss of US$ 32.3 million reported in 1Q18.

CAS in 1Q19 was US$ 693/oz; a 36% decrease as compared to the US$ 1,083/oz reported in 1Q18 mainly due to a 28% YoY increase in volume sold.

Capital expenditures at Yanacocha were US$ 43.6 million in 1Q19.

The Quecher Main project, an oxide deposit, is currently in its Execution Phase. Commercial production is expected to be reached in the fourth quarter of 2019. The Quecher Main project extends the life of the Yanacocha operation until 2027, with average annual gold production of 200,000 ounces per year expected between 2020 and 2025. Cost applicable to sales (CAS) is expected to be between US$ 750 and US$ 850 per ounce and AISC between US$ 900 and US$ 1,000. Total CAPEX for the project is expected to be between US$ 250 and US$ 300 million with US$ 95 to US$ 105 million allocated in 2019. The project IRR is expected to be greater than 10 percent.

The Yanacocha Sulfides project, a sulfide deposit, is currently in its Definitive Feasibility Stage. In March of 2019, the Environmental Impact Assessment study was approved.

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), 1Q19 copper production was 118,435 MT; 23,190 MT of which is attributable to Buenaventura, a 7% increase from 110,506 MT produced in 1Q18; 21,637 MT of which was attributable to Buenaventura.

Cerro Verde reported in 1Q19 a net income of US$ 200.2 million compared to net loss of US$ 138.3 million in 1Q18. This increase was primarily due to an increase in the average realized prices (US$ 3.12 per pound in 1Q19 vs US$ 2.90 per pound in 1Q18) and increased volume sold.

Capital expenditures at Cerro Verde were US$ 65.6 million in 1Q19.

Copper production guidance at Cerro Verde for 2019 is 460k MT – 500k MT.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 9 of 26

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), 1Q19 attributable contribution to net income was US$ 0.6 million (US$ 2.6 million in 1Q18).
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 10 of 26


Company Description
Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, Tambomayo*, El Brocal, La Zanja and Coimolache).

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation & Sumitomo Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc., Sumitomo Corporation & Sumitomo Metals).

For a printed version of the Company’s 2017 Form 20-F, please contact the Company’s IR team, or download a PDF format file from the Company’s web site.

(*) 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 March 31st, 2019)
 
BVN
Operating
  
 
Equity %
Mines / Business
  
El Molle Verde S.A.C*
100.00
Trapiche Project
  
Minera La Zanja S.A*
53.06
La Zanja
  
Sociedad Minera El Brocal S.A.A*
61.43
Tajo Norte 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
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 11 of 26

APPENDIX 2

Gold Production
  
13
    
Mining Unit
Operating Results
Unit
1Q19
1Q18
△%
Underground
          
Tambomayo
Ore Milled
DMT
145,157
135,662
7%
 
Ore Grade
Oz/MT
0.20
0.26
-25%
 
Recovery Rate
%
83.85
91.99
-9%
 
Ounces Produced*
Oz
24,034
33,693
-29%
Orcopampa
Ore Milled
DMT
25,086
122,313
-79%
 
Ore Grade
Oz/MT
0.25
0.33
-24%
 
Recovery Rate
%
96.24
97.36
-1%
 
Ounces Produced*
Oz
5,949
39,987
-85%
Open Pit
          
La Zanja
Ounces Produced
Oz
13,616
17,722
-23%
Tantahuatay
Ounces Produced
Oz
26,273
29,915
-12%
(*) Includes ounces from retreatment of tailing dams
    
           
Silver Production
          
Mining Unit
Operating Results
Unit
1Q19
1Q18
△%
Underground
          
Tambomayo
Ore Milled
DMT
145,157
135,662
7%
 
Ore Grade
Oz/MT
4.04
8.85
-54%
 
Recovery Rate
%
87.95
83.36
6%
 
Ounces Produced
Oz
515,242
1,019,915
-49%
Uchucchacua
Ore Milled
DMT
249,347
332,816
-25%
 
Ore Grade
Oz/MT
9.29
15.13
-39%
 
Recovery Rate
%
86.21
82.97
4%
 
Ounces Produced
Oz
1,996,439
4,413,249
-55%
Julcani
Ore Milled
DMT
29,629
24,087
23%
 
Ore Grade
Oz/MT
22.95
21.49
7%
 
Recovery Rate
%
96.86
96.85
0%
 
Ounces Produced
Oz
658,715
504,155
31%
Marcapunta
Ore Milled
DMT
680,959
648,618
5%
 
Ore Grade
Oz/MT
0.70
0.59
18%
 
Recovery Rate
%
52.64
60.21
-13%
 
Ounces Produced
Oz
250,698
230,924
9%
Open Pit
          
Tajo Norte
Ore Milled
DMT
880,757
837,623
5%
 
Ore Grade
Oz/MT
0.91
1.01
-9%
 
Recovery Rate
%
63.93
60.27
6%
 
Ounces Produced
Oz
513,690
508,529
1%
           
           
Zinc Production
          
Mining Unit
Operating Results
Unit
1Q19
1Q18
△%
Underground
          
Tambomayo
Ore Milled
DMT
145,157
135,662
7%
 
Ore Grade
%
2.19
2.37
-8%
 
Recovery Rate
%
78.89
76.71
3%
 
MT Produced
MT
2,506
2,562
-2%
Uchucchacua
Ore Milled
DMT
249,347
332,816
-25%
 
Ore Grade
%
2.48
2.17
14%
 
Recovery Rate
%
63.13
63.46
-1%
 
MT Produced
MT
3,904
4,575
-15%
Open Pit
          
Tajo Norte
Ore Milled
DMT
880,757
837,623
5%
 
Ore Grade
%
2.21
2.77
-20%
 
Recovery Rate
%
53.82
59.46
-9%
 
MT Produced
MT
10,467
13,797
-24%
           
           
Copper Production
        
Mining Unit
Operating Results
Unit
1Q19
1Q18
△%
Underground
          
Marcapunta
Ore Milled
DMT
680,959
648,618
5%
 
Ore Grade
%
1.46
1.75
-16%
 
Recovery Rate
%
88.92
92.47
-4%
 
MT Produced
MT
8,856
10,482
-16%


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 12 of 26

APPENDIX 3: EBITDA Reconciliation (in thousand US$)


     
 
1Q19
1Q18
Net Income
24,011
30,826
Add / Substract:
674
68,235
Provision for income tax, net
-13,251
17,451
Share in associated companies by the equity method, net
-49,512
-14,803
Interest income
-2,111
-1,130
Provision for contingencies
-1,611
-1,475
Loss on currency exchange difference
-20
-665
Depreciation and Amortization
49,744
53,809
Interest expense
11,578
8,684
Provision of bonuses and compensations
4,670
3,639
Impairment of inventories
930
-160
Workers´ participation provision
27
1,954
Loss from discontinued operations
230
931
Impairment of Long-Lived Assets
  
Adjustment of component of stripping cost
  
EBITDA Buenaventura Direct Operations
24,685
99,061
EBITDA Yanacocha (43.65%)
36,782
3,367
EBITDA Cerro Verde (19.58%)
87,940
64,388
EBITDA Coimolache (40.01%)
5,767
8,351
Adjusted EBITDA (including Associated companies)
155,173
175,167

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

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

Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 13 of 26


APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION

Reconciliation of Costs Applicable to Sales and Cost Applicable to Sales per Unit Sold
Cost applicable to sales consists of cost of sales, excluding depreciation and amortization, plus selling expenses. Cost applicable to sales per unit sold for each mine consists of cost applicable to sales for a particular metal produced at a given mine divided by the volume of such metal produced at such mine in the specified period. We note that cost applicable to sales is not directly comparable to the cash operating cost figures disclosed in previously furnished earnings releases.
Cost applicable to sales and Cost applicable to sales per unit of mineral sold are not measures of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. We consider Cost applicable to sales and Cost applicable to sales per unit of mineral sold to be key measures in managing and evaluating our operating performance. These measures are widely reported in the precious metals industry as a benchmark for performance, but do not have standardized meanings. You should not consider Cost applicable to sales or Cost applicable to sales per unit of mineral sold as alternatives to cost of sales determined in accordance with IFRS, as indicators of our operating performance.  Cost applicable to sales and Cost applicable to sales per unit of mineral sold are calculated without adjusting for by-product revenue amounts.
The tables below set forth (i) a reconciliation of consolidated Cost of sales, excluding depreciation and amortization to consolidated Cost applicable to sales, (ii) reconciliations of the components of Cost applicable to sales (by mine and mineral) to the corresponding consolidated line items set forth on our consolidated statements of profit or loss for the three and nine months ended September 30, 2015 and 2016, and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units.  The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and nine months ended September 30, 2015 and 2016 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.
Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 14 of 26



       
Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization,
      
to consolidated Cost applicable to sales:
      
       
 
For the 3 months ended March 31
 
2019
  
2018
 
(in thousands of US$)
Consolidated Cost of sales excluding depreciation and amortization
114,297
  
150,595
Add:
      
 Consolidated Exploration in units in operation
11,464
  
22,769
Consolidated Commercial deductions
45,600
  
49,894
Consolidated Selling expenses
3,955
  
5,997
Consolidated Cost applicable to sales
175,316
  
229,255
       
Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization
      
(by mine and mineral) to consolidated Cost of sales:
      
       
 
For the 3 months ended March 31
 
2019
  
2018
Cost of sales by mine and mineral
(in thousands of US$)
Julcani, Gold
0
  
16
Julcani, Silver
6,538
  
3,830
Julcani, Lead
282
  
349
Julcani, Copper
17
  
10
Mallay, Gold
0
  
2
Mallay, Silver
0
  
1,201
Mallay, Lead
0
  
574
Mallay, Zinc
0
  
1,383
Orcopampa, Gold
8,420
  
25,224
Orcopampa, Silver
57
  
768
Orcopampa, Copper
0
  
87
Uchucchacua, Gold
0
  
27
Uchucchacua, Silver
14,861
  
24,130
Uchucchacua, Lead
2,573
  
3,451
Uchucchacua, Zinc
4,962
  
5,168
Tambomayo, Gold
7,922
  
12,848
Tambomayo, Silver
2,270
  
4,341
Tambomayo, Zinc
1,201
  
415
Tambomayo, Lead
2,248
  
1,772
La Zanja, Gold
12,033
  
18,275
La Zanja, Silver
454
  
695
El Brocal, Gold
1,357
  
2,287
El Brocal, Silver
4,628
  
2,765
El Brocal, Lead
5,252
  
3,096
El Brocal, Zinc
12,733
  
13,044
El Brocal, Copper
24,812
  
22,688
Non Mining Units
1,677
  
2,147
Consolidated Cost of sales, excluding depreciation and amortization
114,297
  
150,595


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 15 of 26



Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units:
       
 
For the 3 months ended March 31
 
2019
  
2018
Exploration expenses in units in operation by mine and mineral
(in thousands of US$)
Julcani, Gold
0
  
6
Julcani, Silver
1,517
  
1,425
Julcani, Lead
65
  
130
Julcani, Copper
4
  
4
Mallay, Gold
0
  
0
Mallay, Silver
0
  
104
Mallay, Lead
0
  
50
Mallay, Zinc
0
  
119
Orcopampa, Gold
2,521
  
8,813
Orcopampa, Silver
17
  
268
Orcopampa, Copper
0
  
31
Uchucchacua, Gold
0
  
5
Uchucchacua, Silver
1,430
  
4,327
Uchucchacua, Lead
248
  
619
Uchucchacua, Zinc
477
  
927
Tambomayo, Gold
1,884
  
2,612
Tambomayo, Silver
540
  
883
Tambomayo, Lead
286
  
84
Tambomayo, Zinc
535
  
360
La Zanja, Gold
1
  
6
La Zanja, Silver
0
  
0
El Brocal, Gold
54
  
104
El Brocal, Silver
184
  
126
El Brocal, Lead
209
  
141
El Brocal, Zinc
506
  
593
El Brocal, Copper
987
  
1,032
Non Mining Units
0
  
0
Consolidated Exploration expenses in units in operation
11,464
  
22,769
       
Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral)
      
to consolidated Commercial deductions:
      
       
 
For the 3 months ended March 31
 
2019
  
2018
Commercial Deductions in units in operation by mine and mineral
(in thousands of US$)
Julcani, Gold
0
  
2
Julcani, Silver
771
  
569
Julcani, Lead
33
  
49
Julcani, Copper
3
  
1
Mallay, Gold
   1
Mallay, Silver
 
344
Mallay, Lead
 
166
Mallay, Zinc
 
417
Orcopampa, Gold
-30
  
305
Orcopampa, Silver
-1
  
34
Orcopampa, Copper
0
  
16
Uchucchacua, Gold
-2
  
7
Uchucchacua, Silver
4,789
  
7,995
Uchucchacua, Lead
392
  
1,032
Uchucchacua, Zinc
1,320
  
3,461
Tambomayo, Gold
1,591
  
98
Tambomayo, Silver
752
  
148
Tambomayo, Lead
399
  
52
Tambomayo, Zinc
1,557
   449
La Zanja, Gold
45
  
94
La Zanja, Silver
1
  
3
El Brocal, Gold
1,200
  
2,428
El Brocal, Silver
2,381
  
1,743
El Brocal, Lead
1,177
  
1,292
El Brocal, Zinc
6,985
  
5,174
El Brocal, Copper
22,184
  
24,015
Non Mining Units
0
  
0
Consolidated Commercial deductions in units in operation
45,600
  
49,894



Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 16 of 26



Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated
      
Selling expenses:
      
       
 
For the 3 months ended March 31
 
2019
  
2018
Selling expenses by mine and mineral
(in thousands of US$)
Julcani, Gold
0
  
0
Julcani, Silver
78
  
56
Julcani, Lead
3
  
5
Julcani, Copper
0
  
0
Mallay, Gold
0
  
0
Mallay, Silver
0
  
51
Mallay, Lead
0
  
25
Mallay, Zinc
0
  
59
Orcopampa, Gold
15
  
243
Orcopampa, Silver
0
  
7
Orcopampa, Copper
0
  
1
Uchucchacua, Gold
0
  
1
Uchucchacua, Silver
547
  
1,183
Uchucchacua, Lead
95
  
169
Uchucchacua, Zinc
183
  
253
Tambomayo, Gold
212
  
466
Tambomayo, Silver
61
  
158
Tambomayo, Lead
32
  
15
Tambomayo, Zinc
60
  
64
La Zanja, Gold
55
  
140
La Zanja, Silver
2
  
5
El Brocal, Gold
53
  
143
El Brocal, Silver
182
  
173
El Brocal, Lead
207
  
194
El Brocal, Zinc
501
  
818
El Brocal, Copper
976
  
1,422
Non Mining Units
690
  
344
Consolidated Selling expenses
3,955
  
5,997




Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 17 of 26


 
 JULCANI
 
 
    1Q 2019     
 
    1Q 2018     
 
 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)
                    -
             6,538
                 282
                    -
                   17
             6,837
                   16
             3,830
                 349
                    -
                   10
             4,205
 Add:
                        
 Exploration Expenses (US$000)
                    -
             1,517
                   65
                    -
                     4
             1,586
                     6
             1,425
                 130
                    -
                     4
             1,565
 Commercial Deductions (US$000)
                    -
                 771
                   33
                    -
                     3
                 807
                     2
                 569
                   49
                    -
                     1
                 621
 Selling Expenses (US$000)
                    -
             78.42
                3.38
                    -
                     0
                   82
                0.24
             56.46
                5.15
                    -
                0.15
                   62
 Cost Applicable to Sales (US$000)
                    -
             8,904
                 384
                    -
                   24
             9,312
                   25
             5,880
                 534
                    -
                   15
             6,453
 Divide:
                        
 Volume Sold
                    -
         633,567
                 211
                    -
                     5
 Not Applicable
                   10
         352,236
                 169
                    -
                     2
 Not Applicable
 CAS
                    -
             14.05
             1,817
                    -
             5,273
 Not Applicable
             2,470
             16.69
             3,161
                    -
             7,391
 Not Applicable
                         
 Prorrateo
0%
96%
4%
0%
0%
  
0%
91%
8%
                    -
0%
  
                         
 
 
          MALLAY           
 
 
    1Q 2019     
 
    1Q 2018     
 
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 Cost of Sales (without D&A) (US$000)
          
                    -
                     2
             1,201
                 574
             1,383
                    -
             3,161
 Add:
                        
 Exploration Expenses (US$000)
          
                    -
                     0
                 104
                   50
                 119
                    -
                 273
 Commercial Deductions (US$000)
                     0
                   10
                     4
                   40
                    -
                   53
                     1
                 344
                 166
                 417
                    -
                 928
 Selling Expenses (US$000)
          
                     2
                     0
                   51
                   25
                   59
                    -
                 135
 Cost Applicable to Sales (US$000)
          
                   55
                     3
             1,701
                 814
             1,979
                    -
             4,497
 Divide:
                        
 Volume Sold
                    -
                    -
                    -
                    -
                    -
 Not Applicable
                     3
         136,838
                 440
                 733
                    -
 Not Applicable
 CAS
                    -
                    -
                    -
                    -
                    -
 Not Applicable
           971.28
             12.43
             1,848
             2,701
                    -
 Not Applicable
                         
 
 
        ORCOPAMPA           
 
 
    1Q 2019     
 
    1Q 2018     
 
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 Cost of Sales (without D&A) (US$000)
             8,420
                   57
                    -
                    -
                    -
             8,477
           25,224
                 768
                    -
                    -
                   87
           26,079
 Add:
        
                    -
              
 Exploration Expenses (US$000)
             2,521
                   17
                    -
                    -
                    -
             2,538
             8,813
                 268
                    -
                    -
                   31
             9,112
 Commercial Deductions (US$000)
                  -30
                    -1
                    -
                    -
                    -
                  -31
                 305
                   34
                    -
                    -
                   16
                 355
 Selling Expenses (US$000)
                   15
                     0
                    -
                    -
                    -
                   15
                 243
                     7
                    -
                    -
                     1
                 251
 Cost Applicable to Sales (US$000)
           10,927
                   73
                    -
                    -
                    -
           10,999
           34,585
             1,077
                    -
                    -
                 135
           35,797
 Divide:
                        
 Volume Sold
             4,427
             2,367
                    -
                    -
                    -
 Not Applicable
           40,015
           99,573
                    -
                    -
                   27
 Not Applicable
 CAS
             2,468
             30.68
                    -
                    -
                    -
 Not Applicable
                 864
             10.82
                    -
                    -
                    -
 Not Applicable




Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 18 of 26



 
 
        UCHUCCHACUA           
 
 
  
1Q 2019
    
 
 1Q 2018    
 
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 Cost of Sales (without D&A) (US$000)
                    -
           14,861
             2,573
             4,962
                    -
           22,396
                   27
           24,130
             3,451
             5,168
                    -
           32,777
 Add:
                        
 Exploration Expenses (US$000)
                    -
             1,430
                 248
                 477
                    -
             2,155
                     5
             4,327
                 619
                 927
                    -
             5,878
 Commercial Deductions (US$000)
                    -2
             4,789
                 392
             1,320
                    -
             6,499
                     7
             7,995
             1,032
             3,461
                    -
           12,495
 Selling Expenses (US$000)
                    -
                 547
                   95
                 183
                    -
                 825
                     1
             1,183
                 169
                 253
                    -
             1,607
 Cost Applicable to Sales (US$000)
                    -2
           21,628
             3,307
             6,942
                    -
           31,875
                   40
           37,635
             5,272
             9,809
                    -
           52,757
 Divide:
                        
 Volume Sold
                     0
     1,834,669
             2,456
             3,402
                    -
 Not Applicable
                   70
     3,853,518
             3,434
             3,802
                    -
 Not Applicable
 CAS
                    -
             11.79
             1,347
             2,041
                    -
 No Applicable
                 575
               9.77
             1,535
             2,580
                    -
 No Applicable
                         
 Prorrateo
0.00%
66.36%
11.49%
22.16%
    
0%
74%
11%
16%
                    -
  
                         
 
 
        TAMBOMAYO           
 
 
      1Q 2019    
 
      1Q 2018    
 
 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)
             7,922
             2,270
             1,201
             2,248
                    -
           13,641
           12,848
             4,341
                 415
        1,772.08
                    -
           19,376
 Add:
                        
 Exploration Expenses (US$000)
             1,884
                 540
                 286
                 535
                    -
             3,244
             2,612
                 883
                   84
                 360
                    -
             3,939
 Commercial Deductions (US$000)
             1,591
                 752
                 399
             1,557
                    -
             4,299
                   98
                 148
                   52
                 449
                    -
                 747
 Selling Expenses (US$000)
                 212
                   61
                   32
                   60
                    -
                 365
                 466
                 158
                   15
                   64
                    -
                 703
 Cost Applicable to Sales (US$000)
           11,609
             3,623
             1,918
             4,400
                    -
           21,549
           16,024
             5,529
                 567
             2,645
                    -
           24,765
 Divide:
                        
 Volume Sold
           16,360
         399,251
             1,551
             1,979
                    -
 Not Applicable
           30,698
         837,123
                 528
             1,672
                    -
 Not Applicable
 CAS
                 710
               9.07
             1,236
             2,223
                    -
 No Applicable
                 522
               6.60
             1,073
             1,582
                    -
 No Applicable
                         
 Prorrateo
58.07%
16.64%
8.80%
16.48%
0.00%
  
66%
22%
2%
9%
0%
  
                         
 
 
          LA ZANJA           
 
 
      1Q 2019    
 
      1Q 2018    
 
 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)
           12,033
                 454
                    -
                    -
                    -
           12,487
           18,275
                 695
                    -
                    -
                    -
           18,970
 Add:
                        
 Exploration Expenses (US$000)
                     1
                     0
                    -
                    -
                    -
                     1
                     6
                     0
                    -
                    -
                    -
                     6
 Commercial Deductions (US$000)
                   45
                     1
                    -
                    -
                    -
                   47
                   94
                     3
                    -
                    -
                    -
                   96
 Selling Expenses (US$000)
                   55
                     2
                    -
                    -
                    -
                   57
                 140
                     5
                    -
                    -
                    -
                 145
 Cost Applicable to Sales (US$000)
           12,134
                 458
                    -
                    -
                    -
           12,592
           18,514
                 704
                    -
                    -
                    -
           19,217
 Divide:
                        
 Volume Sold
           12,621
           39,686
                    -
                    -
                    -
 Not Applicable
           18,222
           55,814
                    -
                    -
                    -
 Not Applicable
 CAS
                 961
             11.54
                    -
                    -
                    -
 Not Applicable
             1,016
             12.61
                    -
                    -
                    -
 Not Applicable



Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 19 of 26



 
 
          BROCAL           
 
 
    1Q 2019     
 
    1Q 2018     
 
 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)
             1,357
             4,628
             5,252
           12,733
           24,812
           48,782
             2,287
             2,765
             3,096
           13,044
           22,688
           43,880
 Add:
                        
 Exploration Expenses (US$000)
                   54
                 184
                 209
                 506
                 987
             1,940
                 104
                 126
                 141
                 593
             1,032
             1,996
 Commercial Deductions (US$000)
             1,200
             2,381
             1,177
             6,985
           22,184
           33,927
             2,428
             1,743
             1,292
             5,174
           24,015
           34,652
 Selling Expenses (US$000)
                   53
                 182
                 207
                 501
                 976
             1,919
                 143
                 173
                 194
                 818
             1,422
             2,750
 Cost Applicable to Sales (US$000)
             2,665
             7,374
             6,845
           20,726
           48,959
           86,568
             4,962
             4,807
             4,723
           19,629
           49,157
           83,278
 Divide:
                        
 Volume Sold
             2,178
         592,139
             5,159
             9,387
             8,313
 Not Applicable
             5,102
         536,585
             3,339
           11,354
             9,854
 Not Applicable
 CAS
             1,223
             12.45
             1,327
             2,208
             5,890
 Not Applicable
                 973
               8.96
             1,414
             1,729
             4,989
 Not Applicable
                         
                         
 
 
      NON MINING COMPANIES           
 
 
    1Q 2019     
    1Q 2018     
 
 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)
                    -
                    -
                    -
                    -
                    -
             1,677
                    -
                    -
                    -
                    -
                    -
             2,147
 Add:
          
                    -
          
                    -
 Selling Expenses (US$000)
                    -
                    -
                    -
                    -
                    -
                 690
                    -
                    -
                    -
                    -
                    -
                 344
 Total (US$000)
                    -
                    -
                    -
                    -
                    -
             2,367
                    -
                    -
                    -
                    -
                    -
             2,829
                         
 
 
      BUENAVENTURA CONSOLIDATED          
 
 
    1Q 2019     
 
    1Q 2018     
 
 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)
29732.0151
           28,809
             9,308
           19,943
           24,829
         114,297
           58,679
           37,730
             7,886
           21,368
           22,786
         150,595
 Add:
                        
 Exploration Expenses (US$000)
             4,460
             3,688
                 807
             1,518
                 991
           11,464
           11,546
             7,133
             1,024
             2,000
             1,066
           22,769
 Commercial Deductions (US$000)
             2,804
             8,702
             2,005
             9,903
           22,186
           45,600
             2,935
           10,835
             2,591
             9,501
           24,032
           49,894
 Selling Expenses (US$000)
                 335
                 871
                 337
                 744
                 976
             3,955
                 994
             1,634
                 408
             1,194
             1,423
             5,997
 Cost Applicable to Sales (US$000)
           37,331
           42,060
           12,453
           32,067
           48,982
         175,316
           74,153
           57,333
           11,909
           34,063
           49,307
         229,255
 Divide:
                        
 Volume Sold
           35,587
     3,501,679
             9,378
           14,768
             8,317
 Not Applicable
           94,120
     5,871,687
             7,911
           17,561
             9,883
 Not Applicable
 CAS
             1,049
             12.01
             1,328
             2,171
             5,889
 Not Applicable
                 788
               9.76
             1,505
             1,940
             4,989
 Not Applicable
                         


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 20 of 26


                         
 
 
          COIMOLACHE           
 
 
    1Q 2019     
 
    1Q 2018     
 
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 GOLD (OZ)
  SILVER (OZ)
 LEAD (MT)
 ZINC (MT)
 COPPER (MT)
 TOTAL
 Cost of Sales (without D&A) (US$000)
           17,573
                 627
                    -
                    -
                    -
           18,200
           16,342
             1,186
                    -
                    -
                    -
           17,528
 Add:
                        
 Exploration Expenses (US$000)
             1,264
                   45
                    -
                    -
                    -
             1,309
             1,798
                 130
                    -
                    -
                    -
             1,928
 Commercial Deductions (US$000)
                   83
                     3
                    -
                    -
                    -
                   86
                 155
                   12
                    -
                    -
                    -
                 166
 Selling Expenses (US$000)
                 114
                     4
                    -
                    -
                    -
                 118
                 112
                     8
                    -
                    -
                    -
                 120
 Cost Applicable to Sales (US$000)
           19,034
                 679
                    -
                    -
                    -
           19,713
           18,406
             1,336
                    -
                    -
                    -
           19,742
 Divide:
                        
 Volume Sold
           26,191
           75,770
                    -
                    -
                    -
 Not Applicable
           27,957
         164,097
                    -
                    -
                    -
 Not Applicable
 CAS
                 727
               8.97
                    -
                    -
                    -
 Not Applicable
                 658
               8.14
                    -
                    -
                    -
 Not Applicable




Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 21 of 26



Buenaventura
                                                
All-in Sustaining Cost for 1Q19
                                                
                                                 
    Buenaventura1     La Zanja        Tantahuatay        Attributable 2  

    1Q19          1Q19          1Q19 
      1Q19 
  
Au Ounces Sold BVN
            
20,788
                                                
Au Ounces bought from La Zanja
                                                              
Au Ounces Sold Net
            
20,788
              
12,621
              
26,191
              
37,986
  
                                                                 
      1Q19           1Q19           1Q19           1Q19      
Income Statement & Cash Flow
  
US$ 000'
    
US$/Oz Au
    
US$ 000'
    
US$/Oz Au
    
US$ 000'
    
US$/Oz Au
    
US$ 000'
    
US$/Oz Au
  
                                                                 
Cost of Sales
    
57,454
      
2,764
      
12,932
      
1,025
      
18,200
      
695
      
71,613
      
1,885
  
Exploration in Operating Units
    
9,523
      
458
      
1
      
0
      
1,309
      
50
      
10,048
      
265
  
Royalties
    
440
      
21
              
0
              
0
      
440
      
12
  
Comercial Deductions3
    
11,627
      
559
      
47
      
4
      
86
      
3
      
11,686
      
308
  
Selling Expenses
    
1,419
      
68
      
57
      
5
      
118
      
5
      
1,497
      
39
  
Administrative Expenses
    
11,999
      
577
      
809
      
64
      
1,204
      
46
      
12,911
      
340
  
Other, net
    
8,386
      
403
      
648
      
51
      
218
      
8
      
8,817
      
232
  
Sustaining Capex4
    
2,580
      
124
      
66
      
5
      
4,011
      
153
      
4,223
      
111
  
                                                                 
By-product Credit
    
-67,915
      
-3,267
      
-630
      
-50
      
-1,225
      
-47
      
-826
      
-22
  
                                                                 
All-in Sustaining Cost
    
35,512
      
1,708
      
13,929
      
1,104
      
23,921
      
913
      
52,495
      
1,382
  
                                                                 
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.
  

Notes:
1.
Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.
2.
Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3.
For all metals produced.
4.
Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 22 of 26



Buenaventura
                                                
All-in Sustaining Cost for 1Q18
                                                
                                                 
    Buenaventura1     La Zanja        Tantahuatay        Attributable 2  
      1Q18          1Q18          1Q18   
       1Q18   
  
Au Ounces Sold BVN
            
70,796
                                                
Au Ounces bought from La Zanja
            
0
                                                
Au Ounces Sold Net
            
70,796
              
18,222
              
27,957
              
91,674
  
                                                                 
      1Q18           1Q18           1Q18           1Q18      
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
    
91,830
      
1,297
      
19,283
      
1,058
      
17,528
      
627
      
109,089
      
1,,190
  
Exploration in Operating Units
    
20,767
      
293
      
5
      
0
      
1,928
      
69
      
21,543
      
235
  
Royalties
    
4,343
      
61
      
0
      
0
      
0
      
0
      
4,343
      
47
  
Comercial Deductions4
    
15,146
      
214
      
96
      
5
      
166
      
6
      
15,264
      
167
  
Selling Expenses
    
2,889
      
41
      
145
      
8
      
120
      
4
      
3,014
      
33
  
Administrative Expenses
    
19,626
      
277
      
630
      
35
      
1,243
      
44
      
20,459
      
223
  
Other, net
    
3,460
      
49
      
173
      
9
      
253
      
9
      
3,653
      
40
  
Sustaining Capex5
    
10,631
      
150
      
2,764
      
152
      
3,526
      
126
      
13,512
      
147
  
                                                                 
By-product Credit
    
-119,744
      
-1,691
      
-932
      
-51
      
-2,769
      
-99
      
-1,605
      
-18
  
                                                                 
All-in Sustaining Cost
    
48,948
      
691
      
22,164
      
1,216
      
21,996
      
787
      
69,527
      
758
  
                                                                 
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.
  

Notes:
1.
Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.
2.
Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3.
For all metals produced.
4.
Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 23 of 26

APPENDIX 6


Compañía de Minas Buenaventura S.A.A. and Subsidiaries
  
Consolidated Statement of Financial Position
        
As of March 31, 2019 and December 31, 2018
        
   
2019
    
2018
  
Assets
  
US$(000)
    
US$(000)
  
Current assets
            
Cash and cash equivalents
    
279,394
      
369,200
  
Trade and other accounts receivable, net
    
231,543
      
211,715
  
Inventory, net
    
137,641
      
135,919
  
Income tax credit
    
20,868
      
24,396
  
Prepaid expenses
    
18,020
      
17,145
  
Hedge derivative financial instruments
    
-
      
2,759
  
     
687,466
      
761,134
  
                 
Non-current assets
                
Trade and other receivables, net
    
38,339
      
40,593
  
Long-term inventory
    
3,895
      
3,812
  
Long-term income tax credit
    
63
      
319
  
Investment in associates
    
1,492,816
      
1,473,382
  
Mining concessions, development costs, property, plant and equipment, net
    
1,818,558
      
1,847,615
  
Investment properties, net
    
218
      
222
  
Deferred income tax asset, net
    
49,235
      
38,305
  
Prepaid expenses
    
26,356
      
26,578
  
Other assets
    
28,227
      
25,261
  
     
3,457,707
      
3,456,087
  
                 
Total assets
    
4,145,173
      
4,217,221
  
                 
                 
Liabilities and shareholders’ equity, net
          
Current liabilities
                
Bank loans
    
55,000
      
95,000
  
Trade and other payables
    
155,598
      
188,084
  
Provisions and contingent liabilities
    
55,822
      
68,172
  
Income tax payable
    
1,683
      
1,760
  
Financial obligations
    
53,422
      
46,166
  
Hedge derivative financial instruments
    
172
      
-
  
     
321,697
      
399,182
  
                 
                 
Non-current liabilities
                
Trade and other payables
    
679
      
639
  
Provisions and contingent liabilities
    
207,862
      
199,762
  
Financial obligations
    
541,214
      
540,896
  
Contingent consideration liability
    
15,755
      
15,755
  
Deferred income tax liability, net
    
25,867
      
31,422
  
     
791,377
      
788,474
  
                 
Total liabilities
    
1,113,074
      
1,187,656
  
                 
Shareholders’ equity, net
                
Capital stock
    
750,497
      
750,497
  
Investment shares
    
791
      
791
  
Additional paid-in capital
    
218,450
      
218,450
  
Legal reserve
    
163,115
      
163,115
  
Other reserves
    
269
      
269
  
Retained earnings
    
1,685,805
      
1,675,909
  
Other reserves of equity
    
(1,571
)
    
(703
)
Shareholders’ equity, net attributable to owners of the parent
    
2,817,356
      
2,808,328
  
Non-controlling interest
    
214,743
      
221,237
  
Total shareholders’ equity, net
    
3,032,099
      
3,029,565
  
                 
Total liabilities and shareholders’ equity, net
    
4,145,173
      
4,217,221
  


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 24 of 26




Compañía de Minas Buenaventura S.A.A. and Subsidiaries
        
Consolidated Statement of Income
            
For the three month periods ended March 31, 2019 and 2018
        
             
             
   
For the three month period ended March, 31
  
   
2019
    
2018
  
Continuing operations
  
US$(000)
    
US$(000)
  
Operating income
            
Net sales of goods
    
177,228
      
306,756
  
Net sales of services
    
3,471
      
5,763
  
Royalty income
    
5,460
      
4,419
  
Total operating income
    
186,159
      
316,938
  
                 
Operating costs
                
Cost of sales, without considering depreciation and amortization
    
(112,952
)
    
(148,585
)
Cost of services, without considering depreciation and amortization
    
(1,345
)
    
(2,010
)
Exploration in operating units
    
(11,464
)
    
(22,769
)
Depreciation and amortization
    
(49,744
)
    
(53,809
)
Mining royalties
    
(2,094
)
    
(6,395
)
Total operating costs
    
(177,599
)
    
(233,568
)
                 
Gross profit
    
8,560
      
83,370
  
                 
Operating expenses, net
                
Administrative expenses
    
(19,417
)
    
(25,045
)
                 
Selling expenses
    
(3,955
)
    
(5,997
)
Exploration in non-operating areas
    
(3,410
)
    
(6,767
)
Provision for contingencies and others
    
1,611
      
1,475
  
Other, net
    
(12,464
)
    
(5,742
)
Total operating expenses, net
    
(37,635
)
    
(42,076
)
                 
Operating profit (loss)
    
(29,075
)
    
41,294
  
                 
Other income (expense), net
                
Share in the results of associates
    
49,512
      
14,803
  
Financial income
    
2,111
      
1,130
  
Net gain from currency exchange difference
    
20
      
665
  
Financial costs
    
(11,578
)
    
(8,684
)
Total other income, net
    
40,065
      
7,914
  
                 
Profit before income tax
    
10,990
      
49,208
  
                 
Current income tax
    
(1,996
)
    
(10,217
)
Deferred income tax
    
15,247
      
(7,234
)
                 
Loss from continuing operations
    
24,241
      
31,757
  
                 
Discontinued operations
                
Profit (loss) from discontinued operations
    
(230
)
    
(931
)
Net profit
    
24,011
      
30,826
  
                 
Attributable to:
                
Owners of the parent
    
27,265
      
28,418
  
Non-controlling interest
    
(3,254
)
    
2,408
  
     
24,011
      
30,826
  
                 
Basic and diluted profit (loss) per share attributable to
                
equity holders of the parent, stated in U.S. dollars
    
0.11
      
0.11
  



Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 25 of 26



Compañía de Minas Buenaventura S.A.A. and Subsidiaries
            
Consolidated Statement of Cash Flows
            
For the three month periods ended March 31, 2019 and 2018
            
             
   
For the three month period ended March, 31
  
   
2019
    
2018
  
   
US$(000)
    
US$(000)
  
             
Operating activities
            
Proceeds from sales
    
182,772
      
329,843
  
Value Added Tax recovered
    
9,382
      
37,670
  
Royalty received
    
5,460
      
5,276
  
Proceeds from dividends
    
937
      
3,431
  
Interest received
    
523
      
131
  
Payments to suppliers and third-parties
    
(174,125
)
    
(230,788
)
Payments to employees
    
(41,610
)
    
(50,007
)
Payments of interest
    
(6,525
)
    
(5,999
)
Payment of income taxes
    
(5,725
)
    
(7,331
)
Payments of mining royalties
    
(441
)
    
(4,343
)
                 
Net cash and cash equivalents provided by operating activities
    
(29,352
)
    
77,883
  
                 
Investing activities
                
Proceeds from sales of mining concessions, property, plant and equipment
    
147
      
46
  
Acquisitions of mining concessions, development costs, property, plant and equipment
    
(8,516
)
    
(21,188
)
Payments to other assets
    
(442
)
    
(662
)
                 
Net cash and cash equivalents used in investing activities
    
(8,811
)
    
(21,804
)
                 
Financing activities
                
Proceeds of financial obligations
                
Proceeds of bank loans
    
5,000
      
80,000
  
Payments of bank loans
    
-45,000
      
(81,215
)
Payments of financial obligations
    
-10,347
      
(9,996
)
Increase of restricted bank accounts
    
304
      
248
  
Dividends paid to non-controlling interest
    
-1,600
      
(1,440
)
Acquisition of non-controlling interest
                
Dividends paid to controlling interest
                
Repurchase of treasury shares
                
                 
Net cash and cash equivalents provided by (used in) financing activities
    
(51,643
)
    
(12,403
)
                 
Net increase in cash and cash equivalents during the period
    
(89,806
)
    
43,676
  
Cash and cash equivalents at the beginning of the period
    
369,200
      
214,551
  
                 
Cash and cash equivalents at period-end
    
279,394
      
258,227
  


Compañía de Minas Buenaventura S.A.A.
First Quarter 2019 Results
Page 26 of 26


 
  
For the three month period ended March, 31
  
 
  
2019
    
2018
  
 
  
US$(000)
    
US$(000)
  
 
            
Reconciliation of net profit to cash and cash equivalents provided
            
by operating activities
            
 
            
Net loss
    
24,011
      
30,826
  
 
                
Plus (less):
                
Depreciation and amortization
     49,744
      
53,809
  
Hedge derivative instruments
    
(2,487
)
    
8,535
  
Deferred income tax expense (income)
    
(15,247
)
    
(7,234
)
Provision for estimated fair value of embedded derivatives related to concentrate
                
sales and adjustments on open liquidations
    
(6,031
)
    
7,143
  
Income attributable to non-controlling interest
    
3,254
       (2,408
 )
Accretion expense of provision for closure of mining units and exploration projects
    
3,664
       1,033
  
Net share in results of associates
    
(49,512
)
    
(14,803
)
Recovery (expense) for provision for contingencies
    
3,955
    (1,475
 )
Net loss (gain) from currency exchange difference
    
(20
)
    
(665
)
Reversal (provision) for impairment loss of inventories
    
929
      
(158
)
Bonus provision - executives & employes
    
4,670
      
3,639
  
Other net
    
1,847
      
(12,216
)
 
                
Net changes in operating assets and liabilities:
                
Decrease (increase) in operating assets -
                
Trade and other accounts receivable
    
(13,641
 )
   
19,843
  
Inventories
    
(1,805
 )
   
(15,929
)
Income tax credit
    
3,528
      
10,184
  
Prepaid expenses
    
(653
 )
   
3,488
  
Increase (decrease) in operating liabilities -
                
Trade and other accounts payable
    
(24,386
 )
    
(29,557
)
Provisions
    
(12,032
 )
   
6,271
  
Income tax payable
    
(77
 )
   
(342
)
 
                
Proceeds from dividends
    
937
      
3,431
  
 
                
Net cash and cash equivalents provided by operating activities
    
(29,352
)
    
77,883



Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


COMPAÑÍA DE MINAS BUENAVENTURA S.A.A.

 
 

By: /s/ LEANDRO GARCÍA RAGGIO

Name: Leandro García Raggio

Title: Chief Financial Officer

 
 

Date: May 1, 2019