Buenaventura Announces First Quarter 2016 Results

April 28, 2016

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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 (“1Q16”) period ended March 31, 2016. 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 2016 Highlights:

  • In 1Q16, EBITDA from direct operations was US$60.3 million, a 34% increase compared to US$45.0 million reported in 1Q15. Adjusted EBITDA (including associated companies) increased 21% (US$ 145.1 in 1Q16 compared to the US$ 119.9 in 1Q15).
  • All In Sustaining Cost (AISC) decreased 35% in 1Q16 (US$ 728/oz in 1Q16 compared to the US$ 1,126/oz in 1Q15). This significant decline reaffirms the cost reduction efforts in Buenaventura’s direct operations.
  • Total attributable production in 1Q16 was 158k gold ounces and 6.0 million silver ounces, compared to 187k gold ounces and 5.5 million silver ounces in 1Q15.
  • The Tambomayo project is in-line with budget; and the detail engineering was completed. Civil works’ progress is at 52% with full completion expected for 2Q16. Exploration and development works´ is at 86%. Production ramping up is expected by 4Q16.
  • The Environmental Impact Assessment (EIA) of the San Gabriel project is expected to be approved in 4Q16 (the Public Hearing will be held in 2Q16).
  • Yanacocha distributed dividends of US$300 million in March 2016 (Buenaventura received its equity share of US$131 million).
  • At Cerro Verde, the Concentrator #2 achieved full capacity during 1Q16. In March, the mill rate performance was in excess of 370k tons per day.
  • Buenaventura is in the process of raising US$ 275 million in long-term debt, in order to reprofile its current short-term debt. The proceeds are expected to be available in 2Q16; terms and conditions of the loan will be of an investment grade company.

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

           
      1Q16     1Q15     Var%
Total Revenues     227.3     239.5     -5%
Operating Profit     13.0     -3.7     N.A.

EBITDA Direct
Operations

    60.3     45.0     34%

Adjusted EBITDA
(Inc Associates)

    145.1     119.9     21%
Net Income     51.6     17.3     198%
EPS*     0.20     0.07     198%
 

(*) as of March 31, 2016 Buenaventura had 254,186,867 outstanding shares.

Operating Revenues

During 1Q16, net sales were US$220.6 million, a 4% decrease compared to the US$230.4 million reported in 1Q15. This was mainly explained by the general decline in all metal prices (except for lead), as well as lower gold, lead and zinc volume sold. Silver volume sold increased 13% partially offsetting the decline in sales.

Royalty income decreased 26%, from US$9.1 million in 1Q15 to US$6.7 million reported in 1Q16. This was due to lower revenues at Yanacocha (27% lower QoQ).

           
Operating Highlights     1Q16     1Q15     Var%
Net Sales

(in millions of US$)

    220.6     230.4     -4%

Average Realized Gold Price
(US$/oz) 1 2

    1,205     1,220     -1%

Average Realized Gold Price
(US$/oz) inc. Affiliates 3

    1,196     1,256     -5%

Average Realized Silver
Price (US$/oz) 1 2

    14.37     15.34     -6%

Average Realized Lead Price
(US$/MT) 1 2

    1,782     1,705     5%
Average Realized

Zinc Price (US$/MT) 1 2

    1,620     2,061     -21%

Average Realized Copper
Price (US$/MT) 1 2

    4,427     5,059     -13%
 
           
Volume Sold     1Q16     1Q15     Var%

Gold Oz Direct
Operations 1

    80,989     93,838     -14%

Gold Oz inc Associated
Companies 3

    172,119     213,720     -19%
Silver Oz 1     5,314,779     4,714,638     13%
Lead MT 1     6,567     9,368     -30%
Zinc MT 1     12,342     13,535     -9%
Copper MT 1     11,098     3,630     206%
 
   

(1)

 

Buenaventura’s Direct Operations include 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, 40.10% of Coimolache and 43.65% of Yanacocha

 

Production and Operating Costs

In 1Q16, Buenaventura’s gold equity production from direct operations remained stable, in line with the figure reported in 1Q15 (79,233 ounces in 1Q16 vs. 79,192 ounces in 1Q15). Gold production, including associated companies, in 1Q16 was 157,955 ounces, 16% lower than the figure reported for the same period of 2015 (187,468 ounces), explained by a decrease in production from Yanacocha. Silver equity production from direct operations increased 11%, mainly due to higher production at the Uchucchacua mine and the Mallay mine.

           
Equity Production     1Q16     1Q15     Var%

Gold Oz Direct Operations1

    79,233     79,192     0%

Gold Oz including Associated
Companies

    157,955     187,468     -16%
Silver Oz Direct Operations1     5,996,810     5,410,922     11%

Silver Oz including Associated
Companies

    6,213,680     5,544,704     12%
Lead MT     6,982     7,440     -6%
Zinc MT     10,368     11,345     -9%
Copper MT Direct Operations1     6,459     2,189     195%

Copper MT including Associated
Companies

    30,623     11,710     162%
 

Orcopampa’s (100% owned by Buenaventura)

 
Production
            1Q16     1Q15     Var %
Gold     Oz     44,135     50,068     -12%
Silver     Oz     147,414     112,210     31%
               
Cost Applicable to Sales
            1Q16     1Q15     Var %
Gold     US$/Oz     688     744     -8%
 

Gold production at Orcopampa decreased 12% in 1Q16, compared to 1Q15, due to lower grade (Appendix 2).

Cost Applicable to Sales (CAS) in 1Q16 decreased 8%. This was mainly explained by:

   

1.

 

Lower labor costs.

2.

Lower contractor costs, due to better mining unit prices, as a result of contract renegotiations.

3.

A decrease in reagents’ consumption and price.

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

___________________________________

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 56.29% of El Brocal and 40.10% of Coimolache.

Uchucchacua (100% owned by Buenaventura)

 
Production
            1Q16     1Q15     Var %
Silver     Oz     4,161,975     3,529,174     18%
Zinc     MT     1,725     1,586     9%
Lead     MT     2,506     2,059     22%
               
Cost Applicable to Sales
            1Q16     1Q15     Var %
Silver     US$/Oz     10.58     15.47     -32%
 

Silver production during 1Q16 increased 18% compared to 1Q15, due to higher ore treated and higher ore grade (Appendix 2).

Cost Applicable to Sales (CAS) in 1Q16 decreased 32% (US$ 10.58/oz of silver in 1Q16 compared to US$ 15.47/oz in 1Q15), mainly explained by:

   

1.

 

Lower labor costs.

2.

A reduction in consumable costs, mainly due to efficiencies achieved in the usage of explosive materials.

3.

Lower contractor costs due to better mining and hauling unit prices.

 

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

Mallay (100% owned by Buenaventura)

 
Production
            1Q16     1Q15     Var %
Silver     Oz     408,619     307,254     33%
Zinc     MT     2,764     2,179     27%
Lead     MT     2,069     1,652     25%
               
Cost Applicable to Sales
            1Q16     1Q15     Var %
Silver     US$/Oz     11.93     14.39     -17%
 

Silver production in 1Q16 increased 33% compared to 1Q15, due to higher ore treated (Appendix 2).

Cost Applicable to Sales (CAS) in 1Q16 decreased 17% (US$ 11.93/oz of silver in 1Q16 compared to US$ 14.39/oz in 1Q15) due to lower consumable costs, mainly in explosive materials and reagents.

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

Julcani (100% owned by Buenaventura)

 
Production
            1Q16     1Q15     Var %
Silver     Oz     853,052     816,352     4%
               
Cost Applicable to Sales
            1Q16     1Q15     Var %
Silver     US$/Oz     10.66     13.24     -19%
 

Silver production in 1Q16 increased 4% compared to 1Q15 production, due to higher ore treated and higher ore grade (Appendix 2).

Cost Applicable to Sales (CAS) in 1Q16 decreased 19% (US$ 10.66/oz of silver in 1Q16 compared to US$ 13.24/oz in 1Q15) explained by lower labor and consumable costs (explosive materials).

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

La Zanja (53.06% owned by Buenaventura)

 
Production
            1Q16     1Q15     Var %
Gold     Oz     34,193     30,455     12%
Silver     Oz     59,236     95,308     -38%
               
Cost Applicable to Sales
            1Q16     1Q15     Var %
Gold     US$/Oz     597     779     -23%
 

Gold production in 1Q16 increased 12% compared to 1Q15, due to higher ore leached.

Cost Applicable to Sales (CAS) in 1Q16 decreased 23% (US$ 597/oz of gold in 1Q16 compared to US$ 779/oz in 1Q15) explained by lower labor and reagent costs.

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

Tantahuatay (40.10% owned by Buenaventura)

 
Production
            1Q16     1Q15     Var %
Gold     Oz     34,562     30,207     14%
Silver     Oz     243,990     160,264     52%
               
Cost Applicable to Sales
            1Q16     1Q15     Var %
Gold     US$/Oz     427     650     -34%
 

Gold production in 1Q16 increased 14% compared to 1Q15, due to higher ore grade.

Cost Applicable to Sales (CAS) in 1Q16 decreased 34% (US$ 427/oz of gold in 1Q16 compared to US$ 650/oz in 1Q15) due to lower contractor and reagent costs.

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

El Brocal (56.29% owned by Buenaventura)

 
Production
            1Q16     1Q15     Var %
Copper     MT     11,344     3,869     193%
Zinc     MT     9,916     14,020     -29%
Silver     Oz     526,724     982,254     -46%
               
Cost Applicable to Sales
            1Q16     1Q15     Var %
Copper     US$/MT     4,823     5,536     -13%
Zinc     US$/MT     1,474     1,506     -2%
 

During 1Q16, copper production increased 193% compared to 1Q15, mainly due to higher ore treated. Moreover, in 1Q16 zinc production decreased 29%, due to lower ore treated and a lower zinc grade.

In 1Q16, zinc Cost Applicable to Sales (CAS) remained in line with the figure reported during 1Q15. Additionally, copper Cost Applicable to Sales (CAS) in 1Q16 decreased 13% (US$ 4,823/MT of copper in 1Q16 compared to US$ 5,536/MT in 1Q15), mainly explained by lower contractor costs due to better mining unit prices.

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

General and Administrative Expenses

General and administrative expenses in 1Q16 were US$21.4 million, an increase of 4% compared to the US$20.7 million reported in 1Q15.

Exploration in Non-Operating Areas

Exploration in non-operating areas during 1Q16 was US$3.5 million compared with the US$10.7 million in 1Q15. During the period, Buenaventura’s main exploration efforts were focused on the Tambomayo project (US$1.8 million) and Marcapunta (US$0.3 million).

Share in Associated Companies

During 1Q16, Buenaventura’s share in associated companies was US$28.4 million, compared to the US$36.3 million reported in 1Q15, comprised by:

           
Share in the Result of Associates

(in millions of US$)

    1Q16     1Q15     Var %
Cerro Verde     19.0     8.0     138%
Coimolache     5.7     2.1     173%
Yanacocha     3.7     26.2     -86%
Total     28.4     36.3     -22%
 

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 1Q16, gold production was 180,348 ounces, 27% lower than 1Q15 production (248,055 ounces), due to a lower gold grade.

Gold production guidance at Yanacocha for 2016 is 630k – 660k ounces.

In 1Q16, Yanacocha reported net income of US$8.5 million compared to the US$37.4 million reported in 1Q15, mainly explained by lower volume sold (179k gold ounces sold in 1Q16 compared to 246k gold ounces sold in 1Q15). Cost Applicable to Sales (CAS) in 1Q16 was US$734/oz, 53% higher than the US$479/oz reported in 1Q15, mainly due to: i) a higher inventory write-down (US$28.0 million in 1Q16 compared to US$4.5 million in 1Q15), and ii) lower volume sold.

Capital expenditures at Yanacocha were US$13.7 million in 1Q16, while for 1Q15 it was US$15.2 million.

Yanacocha continues to have a strong pipeline of growth projects, this include: Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha Verde (scoping) and Maqui Maqui (exploration).

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 1Q16 copper production was 123,414 MT (24,164 MT attributable to Buenaventura), a 154% increase compared to 1Q15 (48,623 MT and 9,520 MT attributable to Buenaventura).

During 1Q16, Cerro Verde reported a net income of US$96.9 million compared to the US$40.7 million reported in 1Q15. This was mainly due to higher volume sold and a lower cash cost (US$ 1.2/lb of copper in 1Q16 compared to US$ 1.9/lb in 1Q15).

Capital expenditures at Cerro Verde were US$72.7 million in 1Q16, 84% lower compared to the US$468.9 million reported in 1Q15.

Cerro Verde’s plant expansion was completed in-line with schedule and budget (US$4.6 billion), becoming the largest concentration facility in the world. Full capacity operating rates were achieved during 1Q16. In March 2016, the average daily throughput was 373 TPD, higher than the nominal capacity of 360K TPD.

Copper production guidance at Cerro Verde for 2016 is 500k MT – 550k MT.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to the net income in 1Q16 was US$ 5.7 million compared to the US$ 2.1 million reported in 1Q15.

Project Development and Exploration

The Tambomayo Project (100% ownership)

  • Production ramp-up is expected to start in 4Q16
  • Civil works progress is at 52% (expected to be completed in 2Q16)
  • Mechanical and structural installation works at 35% progress (expected to be completed in 3Q16)
  • The mill equipment is already mounted on their bases
  • CAPEX: US$ 340 M (Total disbursement as of 1Q16 US$192 M)
    • Exploration and mine development US$122 M (disbursement as of 1Q16 US$102 M)
    • Civil works and Equipment US$218 M (disbursement as of 1Q16 US$90 M)

The San Gabriel Project (100% ownership)

  • The project has been rescheduled in order to preserve cash flow
  • Geomechanical studies were completed in 1Q16
  • Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 4Q16 (the Public Hearing will be held in 2Q16)
  • Objectives for 1S16:
    • Continue the construction of a 450 meters exploration ramp
    • Drilling program: 7,000 meters (1,000 as of 1Q16) in order to confirm resources and certainty

Buenaventura’s Cash and Debt Situation

  • Currently Buenaventura is in the process of raising a US$ 275 million long-term loan. The proceeds are expected to be available in 2Q16.
       
Proceeds from this new debt will be used for the following:

a. Reprofiling of BVN´s current short-term debt.

b. Partially finance the construction of the Tambomayo Project.
 
  • Yanacocha distributed a cash dividend of US$ 300 million
       
BVN received US$ 131 million in March 2016.
 

* * *

Company Description

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

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

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

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

(*) Operations wholly owned by Buenaventura

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

**Tables to follow**

APPENDIX 1

Equity Participation in

Subsidiaries and Associates (as of September 30, 2015)

    BVN     Operating
      Equity %     Mines / Business
El Molle Verde S.A.C*     100.00     Trapiche project
Minera La Zanja S.A*     53.06     La Zanja
Sociedad Minera El Brocal S.A.A*     56.29     Colquijirca and Marcapunta
Compañía Minera Coimolache S.A **     40.10     Tantahuatay
Minera Yanacocha S.R.L **     43.65     Yanacocha
Sociedad Minera Cerro Verde S.A.A **     19.58     Cerro Verde
Processadora Industrial Rio Seco S.A*     100.00     Rio Seco chemical plant
Consorcio Energético de Huancavelica S.A*     100.00     Energy – Huanza Hydroelectrical plant
Buenaventura Ingenieros S.A*     100.00     Engineering Consultant
    (*)Consolidates
(**) Equity Accounting
 
  APPENDIX 2
     
GOLD PRODUCTION
    1Q16 1Q15 %
Mining Unit Operating Results Underground    
Orcopampa Ore Milled DMT 110,588 108,415 2%
Ore Grade OZ/MT 0.44 0.47 -6%
Recovery Rate % 96.2% 96.5% 0%
  Ounces Produced* 44,135 50,068 -12%
Mining Unit Operating Results Open Pit    
La Zanja Ounces Produced 34,193 30,455 12%
Tantahuatay Ounces Produced 34,562 30,207 14%
* Includes ounces from retreatment of taling dams
     
SILVER PRODUCTION
    1Q16 1Q15 %
Mining Unit Operating Results Underground  
Uchucchacua Ore Milled DMT 318,381 282,573 13%
Ore Grade OZ/MT 15.61 14.89 5%
Recovery Rate % 83.8% 83.9% 0%
  Ounces Produced 4,161,975 3,529,174 18%
Julcani Ore Milled DMT 44,983 43,681 3%
Ore Grade OZ/MT 19.85 19.62 1%
Recovery Rate % 95.6% 95.3% 0%
  Ounces Produced 853,052 816,352 4%
Mallay Ore Milled DMT 48,546 36,809 32%
Ore Grade OZ/MT 8.99 8.75 3%
Recovery Rate % 93.7% 94.9% -1%
  Ounces Produced 408,619 307,254 33%
Mining Unit Operating Results Open Pit    
Colquijirca Ounces Produced 526,724 829,503 -37%
     
ZINC PRODUCTION
    1Q16 1Q15 %
Mining Unit Operating Results Underground    
Uchucchacua Ore Milled DMT 318,381 282,573 13%
Ore Grade % 1.13% 1.05% 8%
Recovery Rate % 47.72% 53.5% -11%
  MT Produced 1,725 1,586 9%
Mallay Ore Milled DMT 48,546 36,809 32%
Ore Grade % 6.5% 6.4% 3%
Recovery Rate % 87.0% 92.7% -6%
  MT Produced 2,764 2,179 27%
Mining Unit Operating Results Open Pit    
Colquijirca MT Produced 9,916 14,020 -29%
 
 

APPENDIX 3: EBITDA RECONCILIATION (in thousand US$)

           
      1Q16     1Q15
Net Income     51,248     10,248
Add / Substract:     9,081     34,773
Provision for income tax, net     -6,789     10,427

Share in associated companies by the equity
method, net

    -28,397     -36,274
Interest income     -2,347     -644
Interest expense     7,980     5,875
Loss on currency exchange difference     -6,379     2,317
Long Term Compensation provision     0     102
Depreciation and Amortization     46,838     48,159
Workers´ participation provision     458     472
Loss from discontinued operations     -2,283     4,339
EBITDA Buenaventura Direct Operations     60,329     45,021
EBITDA Yanacocha (43.65%)     25,405     49,729
EBITDA Cerro Verde (19.58%)     48,233     17,705
EBITDA Coimolache (40%)     11,104     7,418

Adjusted EBITDA (including Associated
companies)

    145,070     119,873
   

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: COST APPLICABLE TO SALES RECONCILIATION

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

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

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

The tables below set forth (i) a reconciliation of consolidated Cost of sales, excluding depreciation and amortization to consolidated Cost applicable to sales, (ii) reconciliations of the components of Cost applicable to sales (by mine and mineral) to the corresponding consolidated line items set forth on our consolidated statements of profit or loss for the three and six months ended June 30, 2014 and 2015, and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units. The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and six months ended June 30, 2014 and 2015 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.

 
Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization,
to consolidated Cost applicable to sales:  
         
For the 3 months ended Mar 31
2016 2015
(in thousands of US$)

Consolidated Cost of sales excluding depreciation and
amortization

117,467 139,693
Add:

Consolidated Exploration in units in operation

19,116 22,400
Consolidated Commercial deductions 54,341 36,485
Consolidated Selling expenses 4,773   4,153  
Consolidated Cost applicable to sales 195,697   202,731  
 
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 Mar 31
2016 2015

Cost of sales by mine and mineral

(in thousands of US$)
Julcani, Gold 0 11
Julcani, Silver 4,005 4,449
Julcani, Lead 387 467
Julcani, Copper 30 62
Mallay, Gold 117 0
Mallay, Silver 2,088 2,071
Mallay, Lead 1,301 1,166
Mallay, Zinc 1,508 1,652
Orcopampa, Gold 21,769 33,508
Orcopampa, Silver 1,083 1,037
Orcopampa, Copper 6 0
Uchucchacua, Gold 17 0
Uchucchacua, Silver 22,376 27,879
Uchucchacua, Lead 1,368 1,475
Uchucchacua, Zinc 915 902
La Zanja, Gold 19,679 24,668
La Zanja, Silver 491 1,105
El Brocal, Gold 1,978 435
El Brocal, Silver 2,725 5,946
El Brocal, Lead 2,150 4,752
El Brocal, Zinc 7,026 10,427
El Brocal, Copper 24,339 8,218
Non Mining Units 2,106   9,463  

Consolidated Cost of sales, excluding depreciation
and amortization

117,467   139,693  
 

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 Mar 31
2016   2015  

Exploration expenses in units in operation by mine and
mineral

(in thousands of US$)
Julcani, Gold 0 5
Julcani, Silver 2,211 2,175
Julcani, Lead 213 228
Julcani, Copper 16 30
Mallay, Gold 41 0
Mallay, Silver 728 676
Mallay, Lead 453 381
Mallay, Zinc 526 540
Orcopampa, Gold 8,188 11,518
Orcopampa, Silver 407 356
Orcopampa, Copper 2 0
Uchucchacua, Gold 4 0
Uchucchacua, Silver 5,735 5,968
Uchucchacua, Lead 351 316
Uchucchacua, Zinc 235 193
La Zanja, Gold 4 13
La Zanja, Silver 0 1
El Brocal, Gold 0 0
El Brocal, Silver 0 0
El Brocal, Lead 0 0
El Brocal, Zinc 0 0
El Brocal, Copper 0 0
Non Mining Units 0   0  
Consolidated Exploration expenses in units in operation 19,116   22,400  
 
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 Mar 31
2016 2015

Commercial Deductions in units in operation by mine and
mineral

(in thousands of US$)
Julcani, Gold 0 2
Julcani, Silver 1,435 1,328
Julcani, Lead 135 127
Julcani, Copper 12 18
Mallay, Gold 44

0

 

Mallay, Silver 1,110 880
Mallay, Lead 681 506
Mallay, Zinc 1,369 858
Orcopampa, Gold 101 56
Orcopampa, Silver 16 0
Orcopampa, Copper 1 0
Uchucchacua, Gold 6 0
Uchucchacua, Silver 9,256 7,963
Uchucchacua, Lead 568 426
Uchucchacua, Zinc 1,312 890
La Zanja, Gold 58 24
La Zanja, Silver 1 0
El Brocal, Gold 2,194 537
El Brocal, Silver 2,027 3,585
El Brocal, Lead 1,055 2,193
El Brocal, Zinc 5,355 5,805
El Brocal, Copper 27,605 11,287
Non Mining Units 0   0  
Consolidated Commercial deductions in units in operation 54,341   36,485  
 
Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated
Selling expenses:
         
For the 3 months ended Mar 31
2016 2015

Selling expenses by mine and mineral

(in thousands of US$)
Julcani, Gold 0 1
Julcani, Silver 178 239
Julcani, Lead 17 25
Julcani, Copper 1 3
Mallay, Gold 9 0
Mallay, Silver 161 139
Mallay, Lead 100 78
Mallay, Zinc 116 111
Orcopampa, Gold 159 250
Orcopampa, Silver 8 8
Orcopampa, Copper 0 0
Uchucchacua, Gold 1 0
Uchucchacua, Silver 809 814
Uchucchacua, Lead 49 43
Uchucchacua, Zinc 33 26
La Zanja, Gold 217 302
La Zanja, Silver 5 14
El Brocal, Gold 120 26
El Brocal, Silver 165 351
El Brocal, Lead 130 280
El Brocal, Zinc 425 615
El Brocal, Copper 1,472 485
Non Mining Units 598   345  
Consolidated Selling expenses 4,773   4,153  
 
                                                                       
JULCANI
1Q 2016     1Q 2015
     

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)

-0     4,005     387         30     4,421 11     4,449     467         62     4,989
Add:
Exploration Expenses (US$000) -0 2,211 213 16 2,440 5 2,175 228 30 2,439
Commercial Deductions (US$000) -0 1,435 135 12 1,581 2 1,328 127 18 1,475
Selling Expenses (US$000) -0 178 17 1 197 1 239 25 3 268
Cost Applicable to Sales (US$000) -1 7,829 753 59 8,640 19 8,191 847 114 9,171
Divide:
Volume Sold     -1     734,224     578         19     Not Applicable     15     618,774     473         19     Not Applicable
CAS         10.66     1,301         3,154     Not Applicable     1,256     13.24     1,791         6,011     Not Applicable
                                                                   
MALLAY
1Q 2016 1Q 2015
      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) 117 2,088 1,301 1,508 5,015 2,071 1,166 1,652 4,889
Add:
Exploration Expenses (US$000) 41 728 453 526 1,748 676 381 540 1,597
Commercial Deductions (US$000) 44 1,110 681 1,369 3,205 880 506 858 2,244
Selling Expenses (US$000) 9 161 100 116 386 139 78 111 328
Cost Applicable to Sales (US$000) 212 4,087 2,536 3,520 10,354 3,766 2,131 3,161 9,058
Divide:
Volume Sold     240     342,590     1,799     2,295         Not Applicable         261,818     1,457     1,636         Not Applicable
CAS     883     11.93     1,409     1,534         Not Applicable         14.39     1,463     1,932         Not Applicable
 
                                                                   
ORCOPAMPA
1Q 2016 1Q 2015
      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) 21,769 1,083 6 22,858 33,508 1,037 34,545
Add:
Exploration Expenses (US$000) 8,188 407 2 8,598 11,518 356 11,874
Commercial Deductions (US$000) 101 16 1 118 56 0 56
Selling Expenses (US$000) 159 8 0 167 250 8 258
Cost Applicable to Sales (US$000) 30,217 1,515 10 31,742 45,332 1,401 46,733
Divide:
Volume Sold     43,951     186,208             3     Not Applicable     60,910     145,389                 Not Applicable
CAS     688     8.13             3,102     Not Applicable     744     9.64                 Not Applicable
                                                                   
UCHUCCHACUA
1Q 2016 1Q 2015
      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 22,376 1,368 915 24,676 27,879 1,475 902 30,256
Add:
Exploration Expenses (US$000) 4 5,735 351 235 6,325 5,968 316 193 6,476
Commercial Deductions (US$000) 6 9,256 568 1,312 11,142 7,963 426 890 9,279
Selling Expenses (US$000) 1 809 49 33 892 814 43 26 883
Cost Applicable to Sales (US$000) 28 38,176 2,336 2,495 43,035 42,623 2,259 2,012 46,895
Divide:
Volume Sold     34     3,608,021     1,791     1,361         Not Applicable         2,754,699     1,463     714         Not Applicable
CAS     826     10.58     1,304     1,834         No Applicable         15.47     1,544     2,819         No Applicable
                                                                   
LA ZANJA
1Q 2016 1Q 2015
      GOLD (OZ)     SILVER (OZ)     LEAD (MT)     ZINC (MT)     COPPER (MT)     TOTAL     GOLD (OZ)     SILVER (OZ)     LEAD (MT)     ZINC (MT)     COPPER (MT)     TOTAL
Cost of Sales (without D&A) (US$000) 19,679 491 20,171 24,668 1,105 25,773

Add:

Exploration Expenses (US$000) 4 0 4 13 1 13
Commercial Deductions (US$000) 58 1 58 24 24
Selling Expenses (US$000) 217 5 222 302 14 315
Cost Applicable to Sales (US$000) 19,958 498 20,456 25,006 1,119 26,126
Divide:
Volume Sold     33,432     68,787                 Not Applicable     32,081     107,924                 Not Applicable
CAS     597     7.23                 Not Applicable     779     10.37                 Not Applicable
                                                                   
BROCAL
1Q 2016 1Q 2015
      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) 1,978 2,725 2,150 7,026 24,339 38,219 435 5,946 4,752 10,427 8,218 29,778
Add:
Exploration Expenses (US$000)
Commercial Deductions (US$000) 2,194 2,027 1,055 5,355 27,605 38,237 537 3,585 2,193 5,805 11,287 23,408
Selling Expenses (US$000) 120 165 130 425 1,472 2,311 26 351 280 615 485 1,756
Cost Applicable to Sales (US$000) 4,292 4,918 3,335 12,806 53,416 78,767 998 9,882 7,225 16,847 19,990 54,942
Divide:
Volume Sold     3,333     374,950     2,398     8,687     11,076     Not Applicable     832     826,034     5,976     11,185     3,611     Not Applicable
CAS     1,288     13.12     1,391     1,474     4,823     Not Applicable     1,200     11.96     1,209     1,506     5,536     Not Applicable
                                                                   
NON MINING COMPANIES
1Q 2016 1Q 2015
      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) 2,106 9,463
Add:
Selling Expenses (US$000)                         598                         345
Total (US$000)                         2,704                         9,808
                                                                   
BUENAVENTURA CONSOLIDATED
1Q 2016 1Q 2015
      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) 43,560 32,769 5,206 9,450 24,375 117,467 58,622 42,488 7,859 12,981 8,280 139,693
Add:
Exploration Expenses (US$000) 8,238 9,081 1,018 760 19 19,116 11,536 9,176 925 733 30 22,400
Commercial Deductions (US$000) 2,403 13,845 2,439 8,035 27,618 54,341 619 13,756 3,252 7,553 11,306 36,485
Selling Expenses (US$000) 505 1,326 297 574 1,473 4,773 578 1,563 427 752 488 4,153
Cost Applicable to Sales (US$000) 54,707 57,022 8,960 18,820 53,485 195,697 71,355 66,983 12,462 22,019 20,104 202,731
Divide:
Volume Sold     80,989     5,314,779     6,567     12,342     11,098     Not Applicable     93,838     4,714,638     9,368     13,535     3,630     Not Applicable
CAS     675     10.73     1,364     1,525     4,819     Not Applicable     760     14.21     1,330     1,627     5,538     Not Applicable
                                                                   
COIMOLACHE
1Q 2016 1Q 2015
      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) 12,418 1,112 13,529 12,477 949 13,426
Add:
Exploration Expenses (US$000) 1,205 108 1,313 7,098 540 7,637
Commercial Deductions (US$000) 130 16 146 161 13 173
Selling Expenses (US$000) 242 22 264 226 17 243
Cost Applicable to Sales (US$000) 13,995 1,257 15,252 19,961 1,519 21,479
Divide:
Volume Sold     32,808     238,191                 Not Applicable     30,722     169,400                 Not Applicable
CAS     427     5.28                 Not Applicable     650     8.97                 Not Applicable
 

APPENDIX 5: ALL-IN SUSTAINING COST

         
Buenaventura1 La Zanja Tantahuatay Attributable Production2

1Q16

1Q16

1Q16

1Q16

Au Ounces Sold BVN   77,548    
Au Ounces bought from La Zanja -33,324
Au Ounces Sold Net 44,224 34,728 32,808 75,805
 

1Q16

1Q16

1Q16

1Q16

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 58,411 1,321 17,006 490 13,529 412 72,859 961
Exploration in Operating Units 19,112 432 594 17 1,313 40 19,954 263
Royalties 4,674 106 0 0 0 0 4,674 62
Comercial Deductions4 16,046 363 860 25 146 4 16,561 218
Selling Expenses 1,641 37 222 6 264 8 1,865 25
Administrative Expenses5 12,738 288 492 14 555 17 13,222 174
Other Expenses 0 0 1,890 54 806 25 1,326 17
Other Incomes -761 -17 -3,803 -109 -1,111 -34 -3,224 -43
Administrative charges 0 0 584 17 321 10 438 6
Sustaining Capex6 10,941 247 271 8 3,806 116 12,611 166
 
By-product Credit -83,195 -1,881 -898 -26 -3,564 -109 -85,100 -1,123
 
All-in Sustaining Cost 39,607 896 17,218 496 16,067 490 55,185 728
 
*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 Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.
 
               
Buenaventura1 La Zanja Tantahuatay Attributable Production2

1Q15

1Q15

1Q15

1Q15

Au Ounces Sold BVN   100,401    
Au Ounces bought from La Zanja -32,081
Au Ounces Sold Net 68,320 27,977 30,722 95,482
 

1Q15

1Q15

1Q15

1Q15

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 84,353 1,235 23,390 836 13,426 437 102,147 1,070
Exploration in Operating Units 22,457 329 5,710 204 3,900 127 27,050 283
Royalties 8,176 120 0 0 0 0 8,176 86
Comercial Deductions4 13,095 192 694 25 173 6 13,533 142
Selling Expenses 1,744 26 315 11 243 8 2,009 21
Administrative Expenses5 13,429 197 375 13 533 17 13,842 145
Other Expenses 0 0 2,112 75 4,624 151 2,975 31
Other Incomes 0 0 -3,786 -135 -1,444 -47 -2,588 -27
Administrative charges 0 0 1,584 57 445 15 1,019 11
Sustaining Capex6 5,411 79 4,130 148 6,373 207 10,157 106
 
By-product Credit -68,922 -1,009 -1,387 -50 -2,889 -94 -70,816 -742
 
All-in Sustaining Cost 79,743 1,167 33,137 1,184 25,385 826 107,503 1,126
 
*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 Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.
 

APPENDIX 6

Compañía de Minas Buenaventura S.A.A. and Subsidiaries          
Consolidated Statement of Financial Position
As of March 31, 2016 and December 31, 2015
2016 2015
Assets US$(000) US$(000)
Current assets
Cash and cash equivalents 180,868 78,519
Trade and other accounts receivable, net 220,709 219,862
Inventory, net 103,492 101,473
Income tax credit 37,975 45,919
Prepaid expenses 12,742 8,231
Embedded derivatives for concentrate sales, net 1,757
Hedge derivative financial instruments 71
Total current assets 557,614 454,004
Assets classified as held for sale 12,611 15,592
570,225 469,596
 
Non-current assets
Trade and other accounts receivable, net 171,095 162,567
Inventory, net 25,096 26,029
Investment in associates 1,938,341 2,043,983
Mining concessions, development costs, property, plant and equipment, net 1,752,816 1,747,624
Investment properties, net 10,462 10,719
Deferred income tax asset, net 49,591 41,574
Prepaid expenses 31,090 29,235
Other assets, net 13,843 15,854
Total non-current assets 3,992,334 4,077,585
   
Total assets 4,562,559 4,547,181
 
 
Liabilities and shareholders’ equity
Current liabilities
Bank loans 296,975 285,302
Trade and other accounts payable 220,946 247,114
Provisions 61,010 49,829
Income tax payable 1,887 2,444
Embedded derivatives for concentrate sales, net 1,694
Hedge derivative financial instruments 10,643
Financial obligations 28,753 33,394
Total current liabilities 609,571 630,420
 
Liabilities directly associated with assets classified as held for sale 15,582 20,611
625,153 651,031
 
Non-current liabilities
Trade and other accounts payable 16,691 15,057
Provisions 144,279 141,885
Financial obligations 317,558 320,316
Contingent consideration liability 16,994 16,994
Deferred income tax liability, net 9,572 12,662
Total non-current liabilities 505,094 506,914
   
Total liabilities 1,130,247 1,157,945
 
Shareholders’ equity
Capital stock 750,497 750,497
Investment shares 1,396 1,396
Additional paid-in capital 219,055 219,055
Legal reserve 162,714 162,714
Other reserves 269 269
Retained earnings 2,076,457 2,024,895
Other reserves of equity (3,657) 2,240
Shareholders’ equity, net attributable to owners of the parent 3,206,731 3,161,066
Non-controlling interest 225,581 228,170
Total shareholders’ equity 3,432,312 3,389,236
   
Total liabilities and shareholders’ equity 4,562,559 4,547,181
 
         
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of profit or loss
For the three-month periods ended March 31, 2016 and 2015
 
2016 2015
US$(000) US$(000)
Continuing operations
Operating income
Net sales of goods 215,080 220,600
Net sales of services 5,568 9,791
Royalty income 6,685 9,090
Total operating income 227,333 239,481
 
Operating costs
Cost of sales of goods, excluding depreciation and amortization (109,214) (126,083)
Cost of services, excluding depreciation and amortization (8,253) (13,610)
Depreciation and amortization (46,838) (48,159)
Exploration in operating units (19,116) (22,400)
Mining royalties (6,168) (8,425)
Total operating costs (189,589) (218,677)
   
Gross profit 37,744 20,804
 
Operating expenses, net
Administrative expenses (21,411) (20,669)
Exploration in non-operating areas (3,514) (10,697)
Provision for contingencies (885) 250
Selling expenses (4,773) (4,153)
Other, net 5,872 10,753
Total operating expenses, net (24,711) (24,516)
 
Operating profit (loss) 13,033 (3,712)
 
Other income (expense), net
Share in results of associates under equity method 28,397 36,274
Financial costs (7,980) (5,875)
Net gain (loss) from currency exchange difference 6,379 (2,317)
Financial income 2,347 644
Total other income, net 29,143 28,726
 
Profit before income tax 42,176 25,014
Current income tax (7,003) (5,377)
Deferred income tax 13,792 (5,050)
   
Profit from continuing operations 48,965 14,587
 
Discontinued operations
Profit (loss) from discontinued operations 2,283 (4,339)
Net profit 51,248 10,248
 
Attributable to:
Owners of the parent 51,562 17,319
Non-controlling interest (314) (7,071)
51,248 10,248
 
Basic and diluted profit per share attributable to equity holders
of the parent, stated in U.S. dollars 0.20 0.07
 
 
Weighted average number of shares outstanding
(common and investment), in units 254,186,867 254,186,867
 
         
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statements of cash Flows
For the three-month periods ended March 31, 2016 and 2015
 
2016 2015
US$(000) US$(000)
Operating activities
Proceeds from sales 181,821 231,779
Dividends received 134,015 2,057
Value Added Tax recovered 53,093 33,367
Royalties received 7,557 13,444
Interest received 1,654 942
Payments to suppliers and third-parties (168,056) (176,835)
Payments to employees (35,765) (45,328)
Payments of mining royalties (4,469) (6,198)
Payments of interest (3,790) (5,470)
Payment of income taxes (2,157) (4,141)
 
Net cash and cash equivalents provided by operating activities 163,903 43,617
 
Investing activities
Proceeds from sales of mining concessions, property, plant and equipment 110 134
Acquisitions of mining concessions, development costs, property, plant and equipment (52,028) (37,118)
 
Net cash and cash equivalents used in investing activities (51,918) (36,984)
 
Financing activities
Increase of bank loans 160,000 88,081
Payment of bank loans (160,000) (40,000)
Increase of financial obligations 1,186 10,000
Payment of financial obligations (8,584) (5,018)
Acquisition of non-controlling interest (158)
Dividends paid to non-controlling interest (2,080) (3,268)
Increase of restricted current accounts (4,452) (2,953)
 
Net cash and cash equivalents provided by (used in) financing activities (14,088) 46,842
 
Net increase in cash and cash equivalents during the period 97,897 53,475
Cash and cash equivalents at the beginning of the period 76,588 76,581
   
Cash and cash equivalents at period-end 174,485 130,056
 
         
2016 2015
US$(000) US$(000)
Reconciliation of net profit to cash and cash equivalents provided
by operating activities
 
Net profit attributable to owners of the parent 51,562 17,319
 
Plus (less):
Depreciation and amortization 50,899 54,619
Provision for employee bonus 5,658 8,175
Accretion expense of provision for closure of mining units and exploration projects 738 275
Net share in results of associates under equity method (28,397) (36,274)
Provision for estimated fair value of embedded derivatives related to concentrate (13,021) (6,656)
sales and adjustments on open liquidations
Deferred income tax expense (income) (13,792) 5,050
Net loss (gain) from currency exchange difference (6,379) 2,317
Provision return for impairment of inventories (1,782) (1,252)
Net loss attributable to non-controlling interest (314) (7,071)
Net loss (gain) on sales of mining concessions, property, plant and equipment (110) 1,314
Other net 88 (4,616)
 
Net changes in operating assets and liabilities:
Decrease (increase) in operating assets –
Trade and other accounts receivable 1,537 18,637
Inventories 9,799 27,801
Income tax credit 7,944 1,699
Prepaid expenses (6,366) 1,160
 
Increase (decrease) in operating liabilities –
Trade and other accounts payable (30,658) (34,645)
Provisions 3,039 (8,653)
Income tax payable (557) 2,361
 
Proceeds from dividends 134,015 2,057
   
Net cash and cash equivalents provided by operating activities 163,903 43,617
 
Category: General