LIMA, Peru--(BUSINESS WIRE)--Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE:BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, announced today results for the first quarter 2014 (1Q14) period. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards), on a non GAAP basis and stated in U.S. dollars (US$).
Comments from the Chief Executive Officer:
Mr. Roque Benavides, Buenaventura’s Chief Executive Officer, stated:
“During the first quarter, Buenaventura’s operating income was US$3.5 million, 94% lower than in 1Q13. Net income was negative US$16.1 million and EBITDA from Direct Operations was US$53.3 million, 43% lower than in 1Q13.
EBITDA including Affiliates was US$104.0 million, 61% lower than the figure reported in 1Q13.
Financial Highlights (in millions of US$, except EPS figures):
| 1Q14 | 1Q13 | Var% | |||||||
| Total Revenues | 282.0 | 354.7 | -20% | ||||||
| Operating Income | 3.5 | 59.4 | -94% | ||||||
| EBITDA Direct Operations | 53.3 | 93.8 | -43% | ||||||
| EBITDA Including Affiliates | 104.0 | 267.9 | -61% | ||||||
| Net Income | -16.1 | 102.7 | |||||||
| EPS | -0.06 | 0.40 | |||||||
(*) as of March 31, 2014, Buenaventura had 254,186,867 shares outstanding.
Operating Revenues
During 1Q14, net sales were US$274.0 million, a 20% decrease compared to the US$340.9 million reported in 1Q13. This was explained by lower metal prices as well as a reduction in gold, lead and zinc volumes sold.
Royalty income decreased 42%, to US$8.0 million in 1Q14 compared to the US$13.8 million reported in 1Q13. This was due to lower revenues at Yanacocha (12% lower QoQ).
| Operating Highlights | 1Q14 | 1Q13 | Var% | ||||||
|
Net Sales
(in millions of US$) |
274.0 | 340.9 | -20% | ||||||
| Average Realized Gold Price (US$/oz)* | 1,312 | 1,606 | -18% | ||||||
| Average Realized Gold Price (US$/oz) inc. Affiliates | 1,302 | 1,619 | -20% | ||||||
| Average Realized Silver Price (US$/oz)* | 20.24 | 29.92 | -32% | ||||||
| Average Realized Lead Price (US$/MT)* | 2,110 | 2,257 | -7% | ||||||
|
Average Realized
Zinc Price (US$/MT)* |
2,046 | 1,983 | 3% | ||||||
| Average Realized Copper Price (US$/MT)* | 7,063 | 7,896 | -11% | ||||||
|
(*) Buenaventura’s Direct Operations |
|||||||||
| Volume Sold | 1Q14 | 1Q13 | Var% | ||||||
| Gold Oz Direct Operations | 108,083 | 124,626 | -13% | ||||||
| Gold Oz inc Yanacocha & Tantahuatay | 210,136 | 259,095 | -19% | ||||||
| Silver Oz | 4,253,317 | 3,240,735 | 31% | ||||||
| Lead MT | 4,353 | 6,683 | -35% | ||||||
| Zinc MT | 3,312 | 10,204 | -68% | ||||||
| Copper MT | 9,271 | 5,108 | 81% | ||||||
Production and Operating Costs
In 1Q14, Buenaventura’s equity production including associates companies, was 191,448 ounces of gold, 21% lower than the 243,811 ounces reported in 1Q13, mainly due to lower production at Orcopampa and Yanacocha. Silver equity production, including associated companies, during 1Q14 was 4.1 million ounces, 12% lower compared to the figure reported in 1Q13 (4.7 million oz.).
| Equity Production | 1Q14 | 1Q13 | Var% | ||||||
|
Gold Oz Direct Operations1 |
100,870 | 119,201 | -15% | ||||||
| Gold Oz inc Yanacocha | 191,448 | 243,811 | -21% | ||||||
| Silver Oz | 4,145,674 | 4,724,682 | -12% | ||||||
| Lead TM | 4,652 | 7,052 | -34% | ||||||
| Zinc TM | 4,221 | 9,614 | -56% | ||||||
| Copper inc Cerro Verde | 17,263 | 13,359 | 29% |
Orcopampa’s (100% owned by Buenaventura) total gold production in 1Q14 was 44,929 ounces (including 999 ounces of gold from the old tailings treatment), 28% lower than the 62,480 (including 4,112 ounces of gold from the old tailings treatment) ounces reported in 1Q13. Production from the Chipmo mine during 1Q14 was 43,930 ounces, 25% lower compared to the 58,369 ounces reported in 1Q13, as a result of lower ore grade and tonnage treated (see Appendix 2). Cost Applicable to Sales (CAS) in 1Q14 was US$860/oz of gold, 19% higher compared to 1Q13 (US$725/oz.). The higher cost was mainly explained by the lower gold production.
At Uchucchacua (100% owned by Buenaventura), total silver production in 1Q14 was 2.4 million ounces, 19% lower than the 2.9 million ounces reported in 1Q13, mainly due to the 7-day strike and community stoppage and the decrease in recovery rate, despite the higher ore grade. Zinc production in 1Q14 was 1,470 MT, 26% lower than the figure reported in 1Q13 (1,998 MT), while lead production decreased 23% (1,688 MT in 1Q14 vs. 2,205 MT in 1Q13). Cost Applicable to Sales (CAS) in 1Q14 was US$17.51/oz of silver, in-line with the figure reported in 1Q13 (US$17.46/oz.).
At Mallay (100% owned by Buenaventura), total production in 1Q14 was 297,180 ounces of silver, 4% higher than in 1Q13 (286,240 oz) due to higher ore grade and recovery rate despite the decrease in ore treated. Cost Applicable to Sales (CAS) in 1Q14 was US$14.79/oz of silver, a decrease of 34% compared to US$22.52/oz in 1Q13 due to a more focalized exploration program and the higher production.
At Julcani (100% owned by Buenaventura), total production in 1Q14 was 763,437 ounces of silver, 25% higher compared to 1Q13 (612,034 ounces), due to higher ore treated explained by the increase in plant capacity (from 400 TPD to 500 TPD). Cost Applicable to Sales (CAS) in 1Q14 was US$13.35/oz of silver, 20% lower than 1Q13 (US$16.77/oz.), mainly explained by a reduction in commercial deductions, more focalized exploration activities and higher production.
Breapampa’s (100% owned by Buenaventura) total production in 1Q14 was 20,927 ounces of gold, 2% higher when compared to the figure reported in 1Q13 (20,484 ounces). CAS in 1Q4 was US$461/oz of gold, 48% lower than the US$894/oz reported in 1Q13.
La Zanja’s (53.06% owned by Buenaventura) total production in 1Q14 was 35,937 ounces of gold, a 15% increase compared to 1Q13 (31,206 oz) and was due to an increase in ore grade (0.74 g/MT in 1Q14 vs. 0.64 g/MT in 1Q13). CAS in 1Q14 was US$535/oz of gold, 32% lower than 1Q13 (US$708/oz.), due to the higher ore grade and a reduction in exploration activities from Pampa Verde. It’s important to mention that that our exploration efforts are now focused in Alejandra underground project.
Tantahuatay’s (40.10% owned by Buenaventura) total production in 1Q14 was 32,633 ounces of gold (13,084 oz attributable to Buenaventura) 5% lower than the figure reported in 1Q13 (34,337 oz, 13,767 attributable to Buenaventura). CAS in 1Q14 was US$437/oz of gold, 14% lower than in 1Q13 (US$506/oz.) due lower supplies and contractor expenses as a result of significantly lower stripping ratio.
At El Brocal (54.07% owned by Buenaventura), copper production was 9,792 MT vs. 4,536 MT reported in 1Q13 (116% increase). Silver production, from polymetallic and copper ores, was 0.5 million ounces, in-line with the figure reported in 1Q14. There was no zinc production in 1Q14 (6,950 MT in 1Q13). Copper CAS was US$5,034/MT in 1Q14, 19% decrease when compared to US$6,212/MT in 1Q13.
General and Administrative Expenses
General and administrative expenses in 1Q14 were US$28.8 million, 80% higher than the figure reported in 1Q13 (US$16.0 million), due to a long term compensation expense credit in 1Q13.
Exploration in Non-Operating Areas
Exploration in non-operating areas during 1Q14 was US$10.4 million, a 52% decrease compared to US$21.8 million reported in 1Q13. During the period, Buenaventura’s main exploration efforts were focused on the following projects: La Zanja Underground (US$2.6 million) Tambomayo (US$1.7 million), San Gregorio (US$1.0 million) and Chanca (US$1.2 million).
Operating Income
Operating income in 1Q14 was US$3.5 million, 94% lower compared to the US$59.4 million reported in 1Q13 mainly due to lower revenues.
Share in Associated Companies
During 1Q14, Buenaventura’s share in associated companies was negative US$4.5 million (compared to the US$84.2 million reported in 1Q13) composed by:
|
Share in the Result of Associates |
||||||
| 1Q14 | 1Q13 | |||||
| Cerro Verde | 15.7 | 27.2 | ||||
| Coimolache (Tantahuatay mine) | 4.8 | 8.1 | ||||
| Yanacocha | -24.5 | 51.0 | ||||
| Canteras del Hallazgo (Chucapaca project) | -0.1 | -2.1 | ||||
| Other smaller investments | -0.4 | 0 | ||||
| Total | -4.5 | 84.2 | ||||
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), 1Q14 gold production was 207,511 ounces of gold, 27% lower than 1Q13 production (285,475 oz).
Net income was negative US$56.1 million (compared to US$116.8 million in 1Q13) explained by a US$55.4 million write-down of leach inventory value from La Quinua, Yanacocha and Maqui Maqui pads. During 1Q14, EBITDA totaled US$5.9 million, a 98% decrease compared to 1Q13 (US$260.9 million).
Capital expenditures at Yanacocha were US$21.6 million in 1Q14 (US$97.7 million in 1Q13).
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 1Q14 copper production was 60,955 MT (11,935 MT attributable to Buenaventura), a 10% increase compared to 1Q13 (55,214 MT and 10,811 MT attributable to Buenaventura).
During 1Q14, Cerro Verde reported net income of US$98.0 million, a 29% lower compared to US$138.8 million in 1Q13. This was mainly due to 12% lower sales.
Capital expenditures at Cerro Verde in 1Q14 totaled US$439.4 million and US$170.0 million in 2013.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), attributable contribution was US$4.8 million (US$8.1 million in 1Q13).
Net Income
Buenaventura’s 1Q14 net income was a negative US$16.1 million (negative US$0.06 per share), compared to US$102.7 million (US$0.40 per share) reported in 1Q13.
Project Development and Exploration
Huanza Hydroelectric Plant (100% ownership)
Unit 2 began generating 46.3 MW, while Unit 1 will start its commissioning in 2Q14. This plant will ensure energy supply for direct operations.
El Brocal Expansion (54.07% ownership)
El Brocal expansion from 6 ktpd to 18 ktpd was completed. Production will begin, in 2Q14 to treat 11 ktpd of polymetallic ore from Colquijirca and 7 ktpd of copper ore from Marcapunta.
Tambomayo Project (100% ownership)
Mine development and engineering studies are in progress. Environmental Impact Assessment and permits were filed. Production is expected for 2016.
Board Resolutions
At the Board of Directors meeting held April 30, 2014, the following resolutions were passed:
1. Approval of new Code of Ethics
Company Description
Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded, precious metals company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold and silver and other metals via wholly owned mines as well as through its participation in joint exploration projects.
Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Breapampa*, Mallay*, Julcani*, Recuperada*, El Brocal, La Zanja and Coimolache.
The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer, and 49% of Canteras del Hallazgo S.A, owner the Chucapaca project.
For a printed version of the Company’s 2012 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.
(*) Operations wholly owned by Buenaventura
Note on Forward-Looking Statements
This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to the Company’s, Yanacocha’s and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.
**Tables to follow**
APPENDIX 1
|
Equity Participation in |
||||||
| BVN | Operating | |||||
| Equity % | Mines / Business | |||||
| Consorcio Energético de Huancavelica S.A* | 100.00 | Energy – Huanza Hydroelectrical Project | ||||
| Buenaventura Ingenieros S.A* | 100.00 | Engineering Consultant | ||||
| Processadora Industrial Rio Seco S.A* | 100.00 | Rio Seco chemical plant | ||||
| El Molle Verde S.A.C* | 100.00 | Trapiche project | ||||
| Minera La Zanja S.A* | 53.06 | La Zanja | ||||
| Sociedad Minera El Brocal S.A.A* | 54.07 | Colquijirca and Marcapunta | ||||
| Canteras del Hallazgo S.A ** | 49.00 | Chucapaca project | ||||
| Compañía Minera Coimolache S.A ** | 40.10 | Tantahuatay | ||||
| Minera Yanacocha S.R.L ** | 43.65 | Yanacocha | ||||
| Sociedad Minera Cerro Verde S.A.A ** | 19.58 | Cerro Verde | ||||
| (*)Consolidates | ||||||
| (**) Equity Accounting | ||||||
APPENDIX 2
| GOLD PRODUCTION | ||||||||||||||||||
| Three Months Ended March 31 | ||||||||||||||||||
| Orcopampa | Orcopampa Old Tailings* | |||||||||||||||||
| 2014 | 2013 | % | 2014 | 2013 | % | |||||||||||||
| Ore Milled DMT | 103,227 | 119,930 | -14% | 123,853 | N.A. | |||||||||||||
| Ore Grade OZ/MT | 0.44 | 0.51 | -13% | 0.05 | N.A. | |||||||||||||
| Recovery Rate % | 96.3% | 95.8% | 1% | 72.6% | N.A. | |||||||||||||
| Ounces Produced | 43,930 | 58,369 | -25% | 1,000 | 4,112 | -76% | ||||||||||||
| Orcopampa Total Production | 1Q14 | 44,930 | 1Q13 | 62,480 |
| * Process cleaning accounts for tailings production. |
| La Zanja | Tantahuatay | |||||||||||||||||
| 1Q14 | 1Q13 | % | 1Q14 | 1Q13 | % | |||||||||||||
| Ounces Produced | 35,937 | 31,206 | 15% | 32,633 | 34,307 | -5% | ||||||||||||
| Breapampa | ||||||||||||||||||
| 1Q14 | 1Q13 | % | ||||||||||||||||
| Ounces Produced | 20,927 | 20,484 | 2% | |||||||||||||||
| SILVER PRODUCTION | ||||||||||||||||||
| Three Months Ended March 31 | ||||||||||||||||||
| Uchucchacua | Colquijirca | |||||||||||||||||
| 2014 | 2013 | % | 2014 | 2013 | % | |||||||||||||
| Ore Milled DMT | 212,708 | 261,972 | -19% | 370,400 | N.A. | |||||||||||||
| Ore Grade OZ/MT | 14.56 | 13.89 | 5% | 1.54 | N.A. | |||||||||||||
| Recovery Rate % | 76.5% | 80.6% | -5% | 70.8% | N.A. | |||||||||||||
| Ounces Produced | 2,368,509 | 2,928,556 | -19% | 405,193 | N.A. | |||||||||||||
| ZINC PRODUCTION | ||||||||||||||||||
| Three Months Ended March 31 | ||||||||||||||||||
| Uchucchacua | Colquijirca | |||||||||||||||||
| 2014 | 2013 | % | 2014 | 2013 | % | |||||||||||||
| Ore Milled DMT | 212,708 | 261,972 | -19% | 370,400 | N.A. | |||||||||||||
| Ore Grade % | 1.1% | 1.2% | -3% | 2.91% | N.A. | |||||||||||||
| Recovery Rate % | 61.5% | 66.3% | -7% | 64.5% | N.A. | |||||||||||||
| MT Produced | 1,470 | 1,998 | -26% | 6,950 | N.A. | |||||||||||||
APPENDIX 3
| EBITDA RECONCILIATION (in thousand US$) | |||||||||
| 1Q14 | 1Q13 | Var | |||||||
| Net Income | -10,372 | 110,933 | -109% | ||||||
| Add / Substract: | 63,706 | -17,149 | -471% | ||||||
| Provision for income tax, net | 7,322 | 32,511 | -77% | ||||||
| Share in associated companies by the equity method, net | 4,480 | -84,168 | -105% | ||||||
| Interest income | -1,806 | -956 | 89% | ||||||
| Interest expense | 3,391 | 1,203 | 182% | ||||||
| Loss on currency exchange difference | 496 | -112 | -543% | ||||||
| Long Term Compensation provision | 1,925 | -8,866 | -122% | ||||||
| Depreciation and Amortization | 46,138 | 39,176 | 18% | ||||||
| Impairment of Long-Lived Assets | 794 | - | - | ||||||
| Workers´ participation provision | 966 | 4,063 | -76% | ||||||
| EBITDA Buenaventura Direct Operations | 53,334 | 93,784 | -43% | ||||||
| EBITDA Yanacocha (43.65%) | 2,581 | 113,892 | -98% | ||||||
| EBITDA Cerro Verde (19.58%) | 37,009 | 44,629 | -17% | ||||||
| EBITDA Coimolache (40%) | 11,033 | 15,554 | -29% | ||||||
| EBITDA Buenaventura + All Associates | 103,958 | 267,860 | -61% | ||||||
Note:
EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.
EBITDA (including Associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.
Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.
APPENDIX 4
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||
| Consolidated Statement of Financial Position | ||||||
| As of March, 31 2014 and December, 31 2013 | ||||||
| 2014 | 2013 | |||||
| Assets | US$(000) | US$(000) | ||||
| Current assets | ||||||
| Cash and cash equivalents | 78,720 | 61,898 | ||||
| Financial assets at fair value through profit or loss | - | - | ||||
| Trade and other accounts receivable, net | 251,457 | 260,434 | ||||
| Income tax credit | 58,327 | 37,370 | ||||
| Prepaid expenses | 13,764 | 14,597 | ||||
| Hedge derivative financial instruments | 3,731 | |||||
| Embedded derivatives for concentrate sales, net | - | 1,857 | ||||
| Inventory, net | 149,424 | 175,719 | ||||
| Total current assets | 555,423 | 551,875 | ||||
| Non-current assets | ||||||
| Trade and other accounts receivable, net | 23,807 | 20,607 | ||||
| Long-term inventory | 39,553 | 23,366 | ||||
| Investment in associates | 2,344,449 | 2,350,303 | ||||
| Mining concessions, development costs and property, plant and equipment, net | 1,546,315 | 1,515,460 | ||||
| Deferred income tax asset, net | 72,758 | 83,525 | ||||
| Other assets | 3,310 | 7,132 | ||||
| Total non-current assets | 4,030,192 | 4,000,393 | ||||
| Total assets | 4,585,615 | 4,552,268 | ||||
| Liabilities and shareholders’ equity | ||||||
| Current liabilities | ||||||
| Bank loans | - | - | ||||
| Trade and other accounts payable | 251,937 | 301,811 | ||||
| Provisions | 78,282 | 69,800 | ||||
| Income tax payable | 2,394 | 2,140 | ||||
| Hedge derivatives financial instruments | - | 1,093 | ||||
| Embedded derivatives for concentrate sales, net | 7,592 | - | ||||
| Financial obligations | 23,549 | 11,370 | ||||
| Total current liabilities | 363,754 | 386,214 | ||||
| Non-current liabilities | ||||||
| Trade and other accounts payable | 15,035 | 12,229 | ||||
| Provisions | 109,272 | 106,376 | ||||
| Financial obligations | 280,967 | 223,027 | ||||
| Deferred income tax liability, net | 4,113 | |||||
| Total non-current liabilities | 409,387 | 341,632 | ||||
| Total liabilities | 773,141 | 727,846 | ||||
| Shareholders’ equity | ||||||
| Issued capital, net of treasury shares for US$(000)62,665 | 750,497 | 750,497 | ||||
| Investment shares, net of treasury shares for US$(000)765 | 1,396 | 1,396 | ||||
| Additional paid-in capital | 219,055 | 219,055 | ||||
| Legal reserve | 162,688 | 162,663 | ||||
| Other reserves | 269 | 269 | ||||
| Retained earnings | 2,395,929 | 2,413,131 | ||||
| Other equity reserves | 104 | 104 | ||||
| 3,529,938 | 3,547,115 | |||||
| Non-controlling interest | 282,536 | 277,307 | ||||
| Total shareholders’ equity | 3,812,474 | 3,824,422 | ||||
| Total liabilities and shareholders’ equity | 4,585,615 | 4,552,268 | ||||
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||
| Consolidated Income Statement | ||||||
| For the three month period ended March 31, 2014 and March 31, 2013 | ||||||
|
For the twelve month period |
||||||
| 2,014 | 2,013 | |||||
| US$(000) | US$(000) | |||||
| Operating income | ||||||
| Net sales | 273,968 | 340,873 | ||||
| Royalty income | 8,025 | 13,802 | ||||
| Total operating income | 281,993 | 354,675 | ||||
| Operating costs | ||||||
| Cost of sales, without considering depreciation and amortization | (142,959) | (158,135) | ||||
| Exploration in operating units | (31,728) | (46,369) | ||||
| Depreciation and amortization | (46,138) | (39,176) | ||||
| Royalties | (7,378) | (9,666) | ||||
| Total operating costs | (228,203) | (253,346) | ||||
| Gross profit | 53,790 | 101,329 | ||||
| Operating expenses | ||||||
| Administrative expenses | (28,756) | (15,959) | ||||
| Exploration in non-operating areas | (10,374) | (21,760) | ||||
| Selling expenses | (4,170) | (4,510) | ||||
| Contingencies | (7,641) | (1,053) | ||||
| Impairment of long-term lived assets | (794) | - | ||||
| Other, net | 1,456 | 1,364 | ||||
| Total operating expenses | (50,279) | (41,918) | ||||
| Operating profit (loss) | 3,511 | 59,411 | ||||
| Other income, net | ||||||
| Share in the results of associates under equity method | (4,480) | 84,168 | ||||
| Financial income | 1,806 | 956 | ||||
| Financial expenses | (3,391) | (1,203) | ||||
| Net loss from currency exchange difference | (496) | 112 | ||||
| Total other income, net | (6,561) | 84,033 | ||||
| Profit before income taxes and non-controlling interest | (3,050) | 143,444 | ||||
| Income taxes | (7,322) | (32,511) | ||||
| Net profit | (10,372) | 110,933 | ||||
| Attributable to: | ||||||
| Owners of the parent | (16,112) | 102,677 | ||||
| Non-controlling interest | 5,740 | 8,256 | ||||
| (10,372) | 110,933 | |||||
| Basic and diluted earnings per share attributable | ||||||
| to owners of the parent, stated in U.S. dollars | (0.06) | 0.40 | ||||
| Weighted average number of shares outstanding | ||||||
| (common and investment), in units | 254,186,867 | 254,202,571 | ||||
| Compañía de Minas Buenaventura S.A.A. and Subsidiaries | ||||||
| Consolidated Statement of Cash Flows | ||||||
| For the three month period ended March 31, 2014 and March 31, 2013 | ||||||
|
For the twelve month period |
||||||
| 2,014 | 2,013 | |||||
| US$(000) | US$(000) | |||||
| Operating activities | ||||||
| Proceeds from sales | 266,854 | 404,462 | ||||
| Value Added Tax (VAT) recovered | 17,704 | 13,800 | ||||
| Royalties received | 6,995 | 12,202 | ||||
| Dividends received | 2,377 | - | ||||
| Interest received | 2,125 | 976 | ||||
| Payments to suppliers and third-parties | (199,734) | (258,128) | ||||
| Payments to employees | (55,620) | (70,083) | ||||
| Payment of income tax | (5,411) | (24,078) | ||||
| Payment of royalties | (7,453) | (8,786) | ||||
| Payment of interest | (1,948) | (222) | ||||
| Net cash and cash equivalents provided by operating activities | 25,889 | 70,143 | ||||
| Investing activities | ||||||
| Settlement of financial assets at fair value through profit or loss | - | - | ||||
| Proceeds for collections of loans to associates | 9,032 | - | ||||
| Proceeds from sales of mining concessions, property, plant and equipment | 23 | - | ||||
| Acquisitions of mining concessions, development costs, property, plant and equipment | (85,278) | (86,041) | ||||
| Payment for purchase of investments | - | |||||
| Proceeds from sales of investments shares | - | |||||
| Increase in time-deposits | - | (772) | ||||
| Contributions and investments in associates | (1,003) | (3,685) | ||||
| Net cash and cash equivalents used in investing activities | (77,226) | (90,498) | ||||
| Financing activities | ||||||
| Increase in financial obligations | 74,659 | |||||
| Bank loans received | - | |||||
| Payment of financial obligations | (4,540) | (56) | ||||
| Dividends paid | ||||||
| Dividends paid to non-controlling interest | (1,960) | (3,440) | ||||
| Purchase of treasury shares | - | - | ||||
| Purchase of associates' shares | - | - | ||||
| Net cash and cash equivalents provided by (used in) financing activities | 68,159 | (3,496) | ||||
| Net increase (decrease) in cash and cash equivalents during the period | 16,822 | (23,851) | ||||
| Cash and cash equivalents at the beginning of the period | 61,898 | 186,712 | ||||
| Cash and cash equivalents at period-end | 78,720 | 162,861 | ||||
APPENDIX 5
| CAS 1Q14 VS 1Q13 | ||||||||||||||||||||||||
| JULCANI | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 1 | 5,577 | 432 | - | 57 | 6,068 | 65 | 3,436 | 223 | - | 26 | 3,750 | ||||||||||||
| Exploration Expenses (US$000) | 1 | 2,505 | 194 | - | 26 | 2,725 | 23 | 1,217 | 79 | - | 9 | 1,329 | ||||||||||||
| Commercial Deductions (US$000) | 0 | 1,647 | 130 | - | 18 | 1,795 | 24 | 1,168 | 76 | - | 7 | 1,275 | ||||||||||||
| Selling Expenses (US$000) | 0 | 223 | 17 | - | 2 | 242 | 2 | 127 | 8 | - | 1 | 139 | ||||||||||||
| Total (US$000) | 3 | 9,952 | 773 | - | 102 | 10,830 | 114 | 5,948 | 387 | - | 44 | 6,493 | ||||||||||||
| Volume Sold | 3 | 745,300 | 556 | - | 22 | Not Applicable | 126 | 354,675 | 293 | - | 11 | No Aplicable | ||||||||||||
| CAS | 844 | 13.35 | 1,391 | - | 4,664 | No Applicable | 911 | 16.77 | 1,323 | - | 3,887 | No Aplicable | ||||||||||||
| MALLAY | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | - | 2,461 | 1,659 | 1,569 | - | 5,689 | - | 3,130 | 1,694 | 1,869 | - | 6,694 | ||||||||||||
| Exploration Expenses (US$000) | - | 640 | 431 | 408 | - | 1,479 | - | 1,072 | 580 | 640 | - | 2,292 | ||||||||||||
| Commercial Deductions (US$000) | - | 996 | 654 | 928 | - | 2,577 | - | 860 | 442 | 726 | - | 2,028 | ||||||||||||
| Selling Expenses (US$000) | - | 178 | 120 | 114 | - | 412 | - | 184 | 100 | 110 | - | 393 | ||||||||||||
| Total (US$000) | - | 4,275 | 2,864 | 3,019 | - | 10,158 | - | 5,247 | 2,817 | 3,344 | - | 11,408 | ||||||||||||
| Volume Sold | - | 289,037 | 1,875 | 1,825 | - | Not Applicable | - | 232,943 | 1,600 | 1,991 | - | Not Applicable | ||||||||||||
| CAS | - | 14.79 | 1,528 | 1,654 | - | No Applicable | - | 22.52 | 1,761 | 1,680 | - | No Applicable | ||||||||||||
| BREAPAMPA | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 10,078 | 805 | - | - | - | 10,883 | 17,850 | 876 | - | - | - | 18,727 | ||||||||||||
| Exploration Expenses (US$000) | 121 | 10 | - | - | - | 130 | 1,859 | 91 | - | - | - | 1,950 | ||||||||||||
| Commercial Deductions (US$000) | 17 | - | - | - | - | 17 | 15 | - | - | - | - | 15 | ||||||||||||
| Selling Expenses (US$000) | 108 | 9 | - | - | - | 116 | - | - | - | - | - | - | ||||||||||||
| Total (US$000) | 10,323 | 824 | - | - | - | 11,147 | 19,724 | 967 | - | - | - | 20,691 | ||||||||||||
| Volume Sold | 22,412 | 114,816 | - | - | - | Not Applicable | 22,057 | 57,777 | - | - | - | Not Applicable | ||||||||||||
| CAS | 461 | 7.17 | - | - | - | No Applicable | 894 | 16.74 | - | - | - | No Applicable | ||||||||||||
| ORCOPAMPA | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 30,296 | 848 | - | - | - | 31,143 | 32,707 | 1,245 | - | - | - | 33,953 | ||||||||||||
| Exploration Expenses (US$000) | 12,772 | 357 | - | - | - | 13,129 | 13,866 | 528 | - | - | - | 14,394 | ||||||||||||
| Commercial Deductions (US$000) | 38 | - | - | - | - | 38 | 42 | - | - | - | - | 42 | ||||||||||||
| Selling Expenses (US$000) | 241 | 7 | - | - | - | 248 | - | - | - | - | - | - | ||||||||||||
| Total (US$000) | 43,346 | 1,212 | - | - | - | 44,558 | 46,615 | 1,773 | - | - | - | 48,388 | ||||||||||||
| Volume Sold | 50,386 | 90,375 | - | - | - | Not Applicable | 64,258 | 130,556 | - | - | - | Not Applicable | ||||||||||||
| CAS | 860 | 13.41 | - | - | - | No Applicable | 725 | 13.58 | - | - | - | No Applicable | ||||||||||||
| UCHUCCHACUA | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | - | 29,837 | 1,911 | 1,403 | - | 33,150 | - | 20,791 | 1,144 | 1,304 | - | 23,238 | ||||||||||||
| Exploration Expenses (US$000) | - | 5,598 | 358 | 263 | - | 6,220 | - | 4,023 | 221 | 252 | - | 4,497 | ||||||||||||
| Commercial Deductions (US$000) | - | 7,093 | 466 | 875 | - | 8,434 | - | 7,588 | 387 | 1,686 | - | 9,661 | ||||||||||||
| Selling Expenses (US$000) | - | 671 | 43 | 32 | - | 745 | - | 821 | 45 | 51 | - | 917 | ||||||||||||
| Total (US$000) | - | 43,199 | 2,778 | 2,573 | - | 48,550 | - | 33,223 | 1,797 | 3,293 | - | 38,314 | ||||||||||||
| Volume Sold | - | 2,467,052 | 1,520 | 1,148 | - | Not Applicable | - | 1,903,220 | 1,329 | 1,708 | - | Not Applicable | ||||||||||||
| CAS | - | 17.51 | 1,827 | 2,240 | - | No Applicable | - | 17.46 | 1,353 | 1,928 | - | No Applicable | ||||||||||||
| OTHER SMALL UNITS | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 384 | 947 | 525 | 944 | - | 2,799 | 2,086 | 2,036 | 1,161 | 1,522 | - | 6,806 | ||||||||||||
| Exploration Expenses (US$000) | 5,424 | 2,006 | 234 | 362 | - | 8,026 | 14,648 | 2,685 | 553 | 724 | - | 18,031 | ||||||||||||
| Commercial Deductions (US$000) | 76 | 87 | 53 | 167 | - | 384 | 37 | 487 | 260 | 382 | - | 1,168 | ||||||||||||
| Selling Expenses (US$000) | 90 | 44 | 21 | 31 | - | 187 | 25 | 150 | 83 | 108 | - | 383 | ||||||||||||
| Total (US$000) | 5,974 | 3,084 | 833 | 1,504 | - | 11,395 | 16,796 | 5,358 | 2,058 | 2,735 | - | 26,948 | ||||||||||||
| Volume Sold | 702 | 41,783 | 220 | 338 | - | Not Applicable | 6,691 | 118,259 | 769 | 1,128 | - | Not Applicable | ||||||||||||
| CAS | - | - | - | - | - | No Applicable | - | - | - | - | - | No Applicable | ||||||||||||
| LA ZANJA | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 17,535 | 857 | - | - | - | 18,392 | 20,467 | 953 | - | - | - | 21,419 | ||||||||||||
| Exploration Expenses (US$000) | 19 | 1 | - | - | - | 20 | 837 | 39 | - | - | - | 876 | ||||||||||||
| Commercial Deductions (US$000) | 25 | - | - | - | - | 25 | 20 | - | - | - | - | 20 | ||||||||||||
| Selling Expenses (US$000) | 335 | 16 | - | - | - | 351 | 93 | 4 | - | - | - | 97 | ||||||||||||
| Total (US$000) | 17,914 | 874 | - | - | - | 18,788 | 21,416 | 996 | - | - | - | 22,412 | ||||||||||||
| Volume Sold | 33,479 | 104,873 | - | - | - | Not Applicable | 30,253 | 75,159 | - | - | - | Not Applicable | ||||||||||||
| CAS | 535 | 8.33 | - | - | - | No Applicable | 708 | 13.25 | - | - | - | No Applicable | ||||||||||||
| BROCAL | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 537 | 3,046 | 144 | - | 24,419 | 28,146 | 941 | 5,232 | 3,017 | 5,338 | 17,374 | 31,903 | ||||||||||||
| Exploration Expenses (US$000) | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||
| Commercial Deductions (US$000) | 438 | 2,871 | - | - | 20,526 | 23,834 | 637 | 2,208 | 869 | 1,969 | 12,885 | 18,568 | ||||||||||||
| Selling Expenses (US$000) | 36 | 202 | 10 | - | 1,620 | 1,867 | 76 | 423 | 244 | 432 | 1,405 | 2,580 | ||||||||||||
| Total (US$000) | 1,011 | 6,118 | 154 | - | 46,564 | 53,847 | 1,655 | 7,864 | 4,130 | 7,739 | 31,664 | 53,051 | ||||||||||||
| Volume Sold | 1,101 | 400,081 | 182 | - | 9,249 | Not Applicable | 1,241 | 368,146 | 2,693 | 5,377 | 5,097 | Not Applicable | ||||||||||||
| CAS | 918 | 15.29 | 844 | - | 5,034 | No Applicable | 1,334 | 21.36 | 1,534 | 1,439 | 6,212 | No Applicable | ||||||||||||
| NON MINING COMPANIES | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | GOLD (OZ) | SILVER (OZ) | LEAD (MT) | ZINC (MT) | COPPER (MT) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 6,688 | 11,645 | ||||||||||||||||||||||
| BUENAVENTURA CONSOLIDATED | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 58,832 | 44,378 | 4,671 | 3,916 | 24,476 | 142,959 | 74,117 | 37,700 | 7,240 | 10,033 | 17,400 | 158,135 | ||||||||||||
| Exploration Expenses (US$000) | 18,335 | 11,116 | 1,218 | 1,033 | 26 | 31,728 | 31,232 | 9,656 | 1,434 | 1,616 | 9 | 43,369 | ||||||||||||
| Commercial Deductions (US$000) | 593 | 12,694 | 1,303 | 1,970 | 20,543 | 37,103 | 776 | 12,311 | 2,035 | 4,762 | 12,892 | 32,776 | ||||||||||||
| Selling Expenses (US$000) | 810 | 1,350 | 211 | 176 | 1,622 | 4,170 | 196 | 1,710 | 480 | 701 | 1,406 | 4,510 | ||||||||||||
| Total (US$000) | 78,570 | 69,538 | 7,402 | 7,095 | 46,667 | 215,960 | 106,321 | 61,377 | 11,189 | 17,111 | 31,708 | 227,706 | ||||||||||||
| Volume Sold | 108,083 | 4,253,317 | 4,353 | 3,312 | 9,271 | Not Applicable | 124,626 | 3,240,735 | 6,683 | 10,204 | 5,108 | Not Applicable | ||||||||||||
| CAS | - | - | - | - | - | No Applicable | - | - | - | - | - | No Applicable | ||||||||||||
| COIMOLACHE | ||||||||||||||||||||||||
| 1Q 2014 | 1Q 2013 | |||||||||||||||||||||||
| ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | ORO (OZ) | PLATA (OZ) | PLOMO (TM) | ZINC (TM) | COBRE (TM) | TOTAL | |||||||||||||
| Cost of Sales (without D&A) (US$000) | 11,981 | 741 | - | - | - | 12,722 | 14,950 | 1,634 | - | - | - | 16,584 | ||||||||||||
| Exploration Expenses (US$000) | 1,119 | 69 | - | - | - | 1,188 | 1,562 | 171 | - | - | - | 1,733 | ||||||||||||
| Commercial Deductions (US$000) | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||
| Selling Expenses (US$000) | 200 | 12 | - | - | - | 213 | 165 | 18 | - | - | - | 183 | ||||||||||||
| Total (US$000) | 13,300 | 823 | - | - | - | 14,123 | 16,677 | 1,823 | - | - | - | 18,500 | ||||||||||||
| Volume Sold | 30,460 | 120,800 | - | - | - | Not Applicable | 32,950 | 192,235 | - | - | - | Not Applicable | ||||||||||||
| CAS | 437 | 6.81 | - | - | - | No Applicable | 506 | 9.48 | - | - | - | No Applicable | ||||||||||||
1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10% of Tantahuatay