News Column

Buenaventura Announces Second Quarter and Six-Month 2014 Results

July 30, 2014

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 second quarter (2Q14) and 6-month (6M14) periods ended June 30, 2014. 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$).

Second Quarter 2014 Highlights:

  • EBITDA from direct operations increased 89% compared to 2Q13 and 41% compared to 1Q14.
  • Net Income increased 22% compared to 2Q13 and improved significantly compared to the US$16.1 loss in the previous quarter.
  • Stronger results were driven by higher silver and copper volume sold, from Uchucchacua and El Brocal’s production, respectively.
  • Yanacocha’s contribution to results was a loss of US$12.9 million, mainly due to a US$21.3 million leachpad write-down. Gold production is expected to ramp up in 2H14 to reach guidance of 895k - 985k ounces.
  • Equity gold production from direct operations to recover in 2H14 to achieve annual guidance (420k – 430k ounces). Accessing new areas closer to surface in Orcopampa will allow a 2014 production of 200k ounces. La Zanja and Tantahuatay are expected to produce 140k ounces each in 2014. Breapampa will produce 80k ounces of gold in 2014.
  • Uchucchacua is expected to increase ore treated volume in 3Q14 due to new permittings. Ore extraction will be focused in the Socorro mine with high silver-manganese content.
  • The Public Audience at Tambomayo project was successfully held on July 24-25. The Environmental Impact Assessment (EIA) has been filed and approval is expected by the end of 2014.
  • Huanza Hydro plant commenced full commercial operations And should generate an excess of 95 MW to supply energy to all direct operations at competitive costs.
  • El Brocal plant expansion to 18K tons per day was completed and full operations should start in September. The plant will operate in August at 14k tons per day capacity.

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

          2Q14     2Q13     Var%     6M14     6M13     Var%  
    Total Revenues     305.1     285.8     7%     587.1     640.5     -8%  
    Operating Income     24.5     -4.3     -     28.0     55.1     -49%  
    EBITDA Direct Operations     75.2     39.7     89%     128.5     133.1     -3%  
    EBITDA Including Affiliates     136.5     186.9     -27%     240.2     454.4     -47%  
    Net Income     23.1     19.0     22%     7.0     121.6     -94%  
    EPS     0.09     0.07     22%     0.03     0.48     -94%  


    (*) as of June 30, 2014, Buenaventura had 254,186,867 outstanding shares.

    Operating Revenues

    During 2Q14, net sales were US$297.7 million, a 9% increase compared to the US$273.1 million reported in 2Q13. This was explained by higher copper and silver sales.

    Royalty income decreased 42%, to US$7.4 million in 2Q14 compared to the US$12.7 million reported in 2Q13. This was due to lower revenues at Yanacocha (42% lower QoQ).

                                       
    Operating Highlights     2Q14     2Q13     Var%     6M14     6M13     Var%
    Net Sales

    (in millions of US$)

        297.7     273.1     9%     571.7     614.0     -7%

    Average Realized Gold Price

    (US$/oz)*

        1,274     1,388     -8%     1,292     1,477     -13%

    Average Realized Gold Price

    (US$/oz) inc. Affiliates

        1,279     1,399     -9%     1,291     1,497     -14%

    Average Realized Silver

    Price (US$/oz)*

        19.76     23.88     -17%     19.75     25.82     -24%

    Average Realized Lead Price

    (US$/MT)*

        2,073     2,066     0%     2,123     2,137     -1%

    Average Realized

    Zinc Price (US$/MT)*

        2,101     1,841     14%     2,148     1,897     13%

    Average Realized Copper

    Price (US$/MT)*

        6,575     7,067     -7%     6,746     7,506     -10%

    (*) Buenaventura’s Direct Operations

                                       
    Volume Sold     2Q14     2Q13     Var%     6M14     6M13     Var%
    Gold Oz Direct Operations     110,292     116,751     -6%     218,227     241,377     -10%
    Gold Oz inc Associated Companies     206,389     260,938     -21%     416,270     520,329     -20%
    Silver Oz     4,949,060     4,541,688     9%     9,145,615     7,782,423     18%
    Lead MT     4,199     7,934     -47%     8,502     14,617     -42%
    Zinc MT     2,943     10,775     -73%     6,114     20,979     -71%
    Copper MT     10,186     4,503     126%     19,187     9,611     100%
                         


    For the six-month period of 2014, net sales decreased 7% from US$614.0 million in 2Q13 to US$571.7 million in 2Q14. Royalties decreased 42% (US$15.4 million in 6M14 vs US$26.5 million in 6M13).

    Production and Operating Costs

    In 2Q14, Buenaventura’s gold equity production from direct operations decreased 4%, mainly due to lower production in Orcopampa, but was positively offset by higher production from Breapampa. Gold including associated companies, decreased 20% due to lower production in Yanacocha.

                             
    Equity Production     2Q14   2Q13   Var%   6M14   6M13   Var%

    Gold Oz Direct Operations1

        94,557   98,210   -4%   182,350   203,673   -10%
    Gold Oz inc Associated Companies     191,897   239,604   -20%   383,353   483,433   -21%
    Silver Oz Direct Operations1     4,581,786   4,216,449   9%   8,542,534   8,751,751   -2%
    Silver Oz inc Associated Companies     4,805,398   4,420,340   9%   8,952,618   9,171,583   -2%
    Lead MT     4,413   6,552   -33%   9,066   13,603   -33%
    Zinc MT     4,333   10,620   -59%   8,842   20,234   -56%
    Copper MT Direct Operations1     6,190   2,808   120%   11,769   5,427   117%
    Copper MT inc Associated Companies     17,289   14,911   16%   34,803   28,341   23%
    1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 54.07% of El Brocal.
     


    Orcopampa’s(100% owned by Buenaventura) total gold production in 2Q14 was 51,102 ounces, 2% higher than the 50,196 ounces reported in 2Q13. The higher tonnage treated positively offset the lower ore grade (see Appendix 2). Cost Applicable to Sales (CAS) in 2Q14 was US$851/oz of gold, 3% lower compared to 2Q13 (US$881/oz.). The lower cost was mainly explained by lower reagent (cyanide and peroxide) consumption and price.

    At Uchucchacua(100% owned by Buenaventura), total silver production in 2Q14 was 3.0 million ounces, 10% higher than the 2.7 million ounces reported in 2Q13, mainly due to higher tonnage and ore grade despite the lower grade. Zinc production in 2Q14 was 1,575 MT, 19% lower than the figure reported in 2Q13 (1,938 MT), while lead production decreased 13% (1,717 MT in 2Q14 vs. 1,966 MT in 2Q13). Cost Applicable to Sales (CAS) in 2Q14 was US$17.86/oz of silver, a decrease of 4% compared to 2Q13 (US$18.63/oz.) due to the higher production, and was partially offset by an increase in preparation labors focused in the Socorro area with high silver content.

    At Mallay (100% owned by Buenaventura), total production in 2Q14 was 302,118 ounces of silver, 4% lower than in 2Q13 (315,379 oz) due to lower ore treated. Cost Applicable to Sales (CAS) in 2Q14 was US$14.34/oz of silver, a decrease of 34% compared to US$21.74/oz in 2Q13 due to a more focalized exploration program.

    At Julcani (100% owned by Buenaventura), total production in 2Q14 was 763,529 ounces of silver, 39% higher compared to 2Q13 (548,890 ounces), due to higher ore treated (20-day strike in 2Q13) and higher silver grade. Cost Applicable to Sales (CAS) in 2Q14 was US$14.29/oz of silver, 17% lower than 2Q13 (US$17.16/oz.), mainly explained by a reduction in commercial deductions and higher production.

    Breapampa’s (100% owned by Buenaventura) total production in 2Q14 was 21,228 ounces of gold, 10% higher when compared to the figure reported in 2Q13 (19,342 ounces). CAS in 1Q4 was US$427/oz of gold, 29% lower than the US$604/oz reported in 2Q13.

    La Zanja’s (53.06% owned by Buenaventura) total production in 2Q14 was 36,685 ounces of gold, a 1% decrease compared to 2Q13 (37,045 oz). CAS in 2Q14 was US$518/oz of gold, 20% lower than 2Q13 (US$646/oz.), due to a reduction in exploration activities from Pampa Verde. It is important to mention that our exploration efforts are now focused on the Alejandra underground project.

    Tantahuatay’s (40.10% owned by Buenaventura) total production in 2Q14 was 35,171 ounces of gold (14,102 oz attributable to Buenaventura) 1% lower than the figure reported in 2Q13 (35,382 oz, 14,188 attributable to Buenaventura). CAS in 2Q14 was US$475/oz of gold, 31% lower than in 2Q13 (US$685/oz.) due to lower supplies and contractor expenses as a result of significantly lower stripping ratio.

    At El Brocal(54.07% owned by Buenaventura), copper production was 11,332 MT vs. 5,050 MT reported in 2Q13 (124% increase). Silver production was 0.5 million ounces 26% higher than the 0.4 million ounces reported in 2Q14. There was no zinc production in 2Q14. Copper CAS was US$4,781/MT in 2Q14, a decrease of 31% when compared to US$6,931/MT in 2Q13.

    General and Administrative Expenses

    General and administrative expenses in 2Q14 were US$23.1 million, 4% higher when compared with the figure reported in 2Q13 (US$22.3 million) due to a credit in the long compensation provision in 2Q13.

    Exploration in Non-Operating Areas

    Exploration in non-operating areas during 2Q14 was US$14.8 million compared with a US$4.1 million credit reported in 2Q13. During the period, Buenaventura’s main exploration efforts were focused on the following projects: La Zanja Underground (US$3.5 million) Tambomayo (US$3.1 million) and San Gregorio (US$2.0 million).

    Share in Associated Companies

    During 2Q14, Buenaventura’s share in associated companies was US$20.2 million, 59% lower when compared to the US$48.8 million reported in 2Q13, composed by:

                             
    Share in the Result of Associates (in millions of US$)     2Q14   2Q13   Var%   6M14   6M13   Var%
    Cerro Verde     26.5   20.8   27%   42.2   48.0   -12%
    Coimolache

    (Tantahuatay mine)

        6.1   2.1   194%   10.9   10.2   7%
    Yanacocha     (12.9)   23.8   -154%   (37.4)   74.8   -150%
    Canteras del Hallazgo (Chucapaca project)     0.1   2.1   -96%   0.0   0.0   -
    Other smaller investments     0.4   0.0   -   0.0   0.0   -
    Total     20.2   48.8   -59%   15.7   133.0   -88%
             


    YANACOCHA

    At Yanacocha (43.65% owned by Buenaventura), during 2Q14 gold production was 190,695 ounces of gold, 35% lower than 2Q13 production (291,428 oz). For the six-month period 2014, gold production was 398,206 ounces, 31% lower than 576,903 ounces in 2013. This production was in-line with the mining plan and guidance for 2014 remains between 895k – 985k ounces.

    Net income was a negative US$46.5 million compared to US$54.5 million in 2Q13, driven by a US$21.3 million write-down of leach inventory value from the La Quinua pad. EBITDA totaled US$6.1 million in 2Q14, a 97% decrease compared to 2Q13 (US$225.7 million). For 6M14, net income was negative US$100.0 million (compared to a positive US$171.3 million in 2Q13) and EBITDA was US$12.0 million (compared to US$486.6 million in 2Q13).

    Capital expenditures at Yanacocha were US$28.1 million in 2Q14 (US$119.6 million in 2Q13).

    CERRO VERDE

    At Cerro Verde (19.58% owned by Buenaventura), during 2Q14 copper production was 56,683 MT (11,098 MT attributable to Buenaventura), an 8% decrease compared to 2Q13 (61,813 MT and 12,103 MT attributable to Buenaventura). For the first six-month period of 2014, copper production was 117,638 MT (23,034 MT attributable to Buenaventura), in-line with the figure reported in 2Q13.

    During 2Q14, Cerro Verde reported net income of US$138.3 million, 30% higher compared to US$106.3 million in 2Q13. This was mainly due to 13% higher sales. EBITDA totaled US$234.9 million in 2Q14, a 18% increase compared to 2Q13 (US$200.0 million). For the 6M14, net income was US$236.4 million (compared to US$245.1 million in 2Q13) and EBITDA was US$423.0 million (compared to US$427.7 million in 2Q13).

    Capital expenditures at Cerro Verde in 2Q14 totaled US$397.6 million and US$240.3 million in 2Q13.

    COIMOLACHE (Tantahuatay operation)

    At Coimolache (40.10% owned by Buenaventura), attributable contribution in 2Q14 was US$6.1 million (US$2.1 million in 2Q13). For 6M14, the contribution was US$10.9 million, compared to US$10.2 million reported in 6M13.

    Net Income

    Buenaventura’s 2Q14 net income was US$23.1 million (US$0.09 per share) 22% higher when compared to US$19.0 million (US$0.07 per share) reported in 2Q13. For 6M14, net income was US$7.0 million, 94% lower than 121.6 million reported in 6M13.

    Project Development and Exploration

    Huanza Hydroelectric Plant (100% ownership)

    Huanza Hydro plant commenced full commercial operations. The plant will generate an excess of 95 MW to supply energy to all direct operations at competitive costs.

    El Brocal Expansion (54.07% ownership)

    Full operations are expected to start in September to treat 11k tpd of polymetallic ore from Colquijirca and 7k tpd of copper ore from Marcapunta.

    Tambomayo Project (100% ownership)

    Two Public Audiences at Tambomayo project were successfully held on July 24-25. The Environmental Impact Assessment (EIA) has been filed and we expect to receive the approval by the end of 2014. Mine development and engineering studies are in progress.

    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 2013 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.

    (*) Operations wholly owned by Buenaventura

    Note on Forward-Looking Statements

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

    **Tables to follow**

    APPENDIX 1

     
    Equity Participation in

    Subsidiaries and Affiliates (as of June 30, 2014)

        BVN     Operating
          Equity %     Mines / Business
    Consorcio EnergÉtico de Huancavelica S.A*     100.00     Energy – Huanza Hydroelectrical plant
    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 June 30   Six Months Ended June 30
    Orcopampa   Orcopampa Old Tailings   Orcopampa   Orcopampa Old Tailings
    2014   2013   %   2014   2013   %   2014   2013   %   2014   2013   %
    Ore Milled DMT 115,857   107,790   7%   0   129,891   -   219,084   227,720   -4%   0   253,744   -
    Ore Grade OZ/MT 0.45   0.48   -5%   0.000   0.05   -   0.448   0.49   -9%   0.000   0.05   -
    Recovery Rate % 97.3%   97.3%   0%   0.0%   77.6%   -   96.8%   96.6%   0%   0.0%   75.1%   -
    Ounces Produced51,102   50,196   2%   0   4,791   -   95,032   108,565   -12%   999   8,903   -
                         
    Orcopampa Total Production2Q14 51,102 2Q13 54,987 6M14 96,031 6M13 117,468
     
    La Zanja   Tantahuatay
    2Q14   2Q13   %   6M14   6M13   %   2Q14   2Q13   %   6M14   6M13   %
    Ounces Produced36,685   37,045   -1%   72,622   68,251   6%   35,171   35,382   -1%   67,804   69,689   -3%
                             
    Breapampa                        
    2Q14   2Q13   %   6M14   6M13   %                        
    Ounces Produced21,228   19,342   10%   42,156   39,826   6%                        
     
    SILVER PRODUCTION
    Three Months Ended June 30   Six Months Ended June 30
    Uchucchacua   Colquijirca   Uchucchacua   Colquijirca
    2014   2013   %   2014   2013   %   2014   2013   %   2014   2013   %
    Ore Milled DMT 244,992   233,999   5%   0   578,787   -   457,700   495,971   -8%   0   949,187   -
    Ore Grade OZ/MT 15.28   14.09   8%   0.00   0.91   -   14.94   13.98   7%   0.00   1.16   -
    Recovery Rate % 80.0%   82.6%   -3%   0.0%   60.1%   -   78.4%   81.6%   -4%   0.0%   65.7%   -
    Ounces Produced2,997,602   2,723,364   10%   0   317,455   -   5,366,112   5,651,920   -5%   0   722,648   -
     
    ZINC PRODUCTION
    Three Months Ended June 30   Six Months Ended June 30
    Uchucchacua   Colquijirca   Uchucchacua   Colquijirca
    2014   2013   %   2014   2013   %   2014   2013   %   2014   2013   %
    Ore Milled DMT 244,992   233,999   5%   0   578,787   -   457,700   495,971   -8%   0   949,187   -
    Ore Grade % 1.06%   1.25%   -15%   0.00%   2.87%   -   1.09%   1.20%   -9%   0.00%   2.89%   -
    Recovery Rate % 60.5%   66.3%   -9%   0.0%   65.2%   -   61.0%   66.3%   -8%   0.0%   64.9%   -
    MT Produced1,575   1,938   -19%   0   10,832   -   3,045   3,936   -23%   0   17,782   -
     
     


    APPENDIX 3: EBITDA Reconciliation (in thousand US$)

                     
          2Q14   2Q13   6M14   6M13
    Net Income     32,574   20,859   22,202   131,792
    Add / Substract:     42,627   18,835   106,333   1,347
    Provision for income tax, net     10,494   10,434   17,816   42,945
    Share in associated companies by the equity method, net     -20,169   -48,806   -15,689   -132,974
    Interest income     -1,842   -2,228   -3,648   -3,184
    Interest expense     3,199   8,678   6,590   9,881
    Loss on currency exchange difference     268   6,715   764   6,603
    Long Term Compensation provision     0   -9,322   1,925   -18,527
    Depreciation and Amortization     49,771   46,494   95,909   85,670
    Workers´ participation provision     906   1,178   1,872   5,241
    Impairment of long-term lived assets     0   0   794   0
    Write-Down Adjustment     0   5,692   0   5,692
    EBITDA Buenaventura Direct Operations     75,201   39,694   128,535   133,139
    EBITDA Yanacocha (43.65%)     2,653   98,502   5,236   212,394
    EBITDA Cerro Verde (19.58%)     46,001   39,079   82,826   83,735
    EBITDA Coimolache (40.10%)     12,599   9,636   23,649   25,141
    EBITDA Buenaventura + All Associates     136,455   186,910   240,245   454,408
       

    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 June 30, 2014 and December 31, 2013
    2,0142,013
    AssetsUS$(000)US$(000)
    Current assets
    Cash and cash equivalents 138,052 61,898
    Financial assets at fair value through profit or loss - -
    Trade and other accounts receivable, net 272,746 260,434
    Income tax credit 55,658 37,370
    Prepaid expenses 15,652 14,597
    Hedge derivative financial instruments - -
    Embedded derivatives for concentrate sales, net 5,957 1,857
    Inventory, net 151,833     175,719
    Total current assets639,898551,875
     
    Non-current assets
    Trade and other accounts receivable, net 18,156 20,607
    Long-term inventory 39,124 23,366
    Investment in associates 2,363,055 2,358,410
    Mining concessions, development costs and property, plant and equipment, net 1,535,626 1,515,460
    Investment Properties 11,160 -
    Deferred income tax asset, net 72,322 83,525
    Other assets 3,231     7,132
    Total non-current assets4,042,6744,008,500
           
    Total assets4,682,572     4,560,375
     
     
    Liabilities and shareholders’ equity
    Current liabilities
    Bank loans 2,321 -
    Trade and other accounts payable 253,285 301,811
    Provisions 71,826 69,800
    Income tax payable 2,186 2,140
    Hedge derivatives financial instruments 10 1,093
    Embedded derivatives for concentrate sales, net - -
    Financial obligations 47,641     11,370
    Total current liabilities377,269386,214
     
    Non-current liabilities
    Trade and other accounts payable 15,057 12,229
    Provisions 100,651 106,376
    Financial obligations 336,602 223,027
    Deferred income tax liability, net 4,605     -
    Total non-current liabilities456,915341,632
           
    Total liabilities834,184     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 2,425,720 2,421,238
    Other equity reserves 104     104
    3,559,7293,555,222
    Non-controlling interest 288,659     277,307
    Total shareholders’ equity3,848,388     3,832,529
           
    Total liabilities and shareholders’ equity4,682,572     4,560,375
             
     
    CompaÑÍa de Minas Buenaventura S.A.A. and Subsidiaries
    Consolidated Income Statement
    For the six-month periods ended June 30, 2014 and 2013

    For the three-month period

    ended June 30,

    For the six-month period

    ended June 30,

    2,0142,0132,0142,013
    US$(000)US$(000)US$(000)US$(000)
    Operating income
    Net sales 297,710 273,099 571,678 613,972
    Royalty income 7,399   12,693   15,424   26,495  
    Total operating income 305,109 285,792 587,102 640,467
     
    Operating costs
    Cost of sales, without considering depreciation and amortization (149,634 ) (172,869 ) (292,593 ) (331,004 )
    Exploration in operating units (21,907 ) (49,681 ) (53,635 ) (96,050 )
    Depreciation and amortization (49,771 ) (46,494 ) (95,909 ) (85,670 )
    Royalties (7,102 ) (6,929 ) (14,480 ) (16,595 )
    Total operating costs (228,414 ) (275,973 ) (456,617 ) (529,319 )
           
    Gross profit 76,695   9,819   130,485   111,148  
     
    Operating expenses
    Administrative expenses (23,061 ) (22,262 ) (51,817 ) (37,168 )
    Exploration in non-operating areas (14,821 ) 4,085 (25,195 ) (17,675 )
    Stoppage of mining units (15,941 ) - (15,941 ) -
    Selling expenses (4,614 ) (3,970 ) (8,784 ) (8,480 )
    Contingencies (2,002 ) (1,340 ) (9,643 ) (2,393 )
    Impairment of long-term lived assets - - (794 ) -
    Other, net 8,268   9,320   9,724   9,631  
    Total operating expenses (52,171 ) (14,167 ) (102,450 ) (56,085 )
     
    Operating profit (loss) 24,524   (4,348 ) 28,035   55,063  
     
    Other income, net
    Share in the results of associates under equity method 20,169 48,806 15,689 132,974
    Financial income 1,842 2,228 3,648 3,184
    Financial expenses (3,199 ) (8,678 ) (6,590 ) (9,881 )
    Net loss from currency exchange difference (268 ) (6,715 ) (764 ) (6,603 )
    Total other income, net 18,544 35,641 11,983 119,674
     
    Profit before income taxes and non-controlling interest 43,068 31,293 40,018 174,737
     
    Income taxes (10,494 ) (10,434 ) (17,816 ) (42,945 )
           
    Net profit 32,574   20,859   22,202   131,792  
     
    Attributable to:
    Owners of the parent 23,088 18,953 6,976 121,630
    Non-controlling interest 9,486   1,906   15,226   10,162  
    32,574   20,859   22,202   131,792  
     
    Basic and diluted earnings per share attributable
    to owners of the parent, stated in U.S. dollars 0.09   0.07   0.03   0.48  
     
    Weighted average number of shares outstanding
    (common and investment), in units 254,186,867   254,186,867   254,186,867   254,186,867  
           
     
    CompaÑÍa de Minas Buenaventura S.A.A. and Subsidiaries
    Consolidated Statement of Cash Flows
    For the six-month periods ended June 30, 2014 and 2013

    For the three-month period

    ended June 30,

    For the six-month

    period ended June 30,

    2,0142,0132,0142,013
    US$(000)US$(000)US$(000)US$(000)
    Operating activities
    Proceeds from sales 266,880 343,935 533,734 748,397
    Value Added Tax (VAT) recovered 21,981 19,907 39,685 33,707
    Royalties received 8,429 13,976 15,424 26,178
    Dividends received 2,065 7,064 4,442 7,064
    Interest received 1,704 1,165 3,829 2,141
    Payments to suppliers and third-parties (188,407 ) (219,791 ) (388,141 ) (477,919 )
    Payments to employees (51,341 ) (33,649 ) (106,961 ) (103,732 )
    Payment of income tax (12,533 ) (30,910 ) (17,944 ) (54,988 )
    Payment of royalties (3,513 ) (8,708 ) (10,966 ) (17,494 )
    Payment of interest (3,505 ) (8,193 ) (5,453 ) (8,415 )
     
    Net cash and cash equivalents provided by operating activities 41,760   84,796   67,649   154,939  
     
    Investing activities
    Settlement of financial assets at fair value through profit or loss - - - -
    Proceeds for collections of loans to associates 1,426 14,964 10,458 14,964
    Proceeds from sales of mining concessions, property, plant and equipment 67 3,015 90 3,015
    Proceeds from investments settlement 80 - 80 -
    Acquisitions of mining concessions, development costs, property, plant and equipment (60,383 ) (147,223 ) (133,956 ) (233,264 )
    Acquisitions of investment properties - - (11,705 ) -
    Payment for purchase of investments - - - -
    Proceeds from sales of investments shares - - -
    Associates loans granted (157 ) - (157 ) -
    Decrease of time deposits - 772 - -
    Contributions and investments in associates (472 )   (1,475 ) (3,685 )
    -
    Net cash and cash equivalents used in investing activities (59,439 ) (128,472 ) (136,665 ) (218,970 )
     
    Financing activities
    Increase of bank loans 2,321 - 2,321 -
    Increase in financial obligations 108,780 60,000 183,439 60,000
    Bank loans received - - -
    Payment of financial obligations (29,053 ) (45 ) (33,593 ) (101 )
    Dividends paid (2,797 ) (76,269 ) (2,797 ) (76,269 )
    Dividends paid to non-controlling interest (2,240 ) (3,133 ) (4,200 ) (6,573 )
    Purchase of treasury shares - - - -
    Purchase of associates' shares -   (462 ) -   (462 )
     
    Net cash and cash equivalents provided by (used in) financing activities 77,011   (19,909 ) 145,170   (23,405 )
     
    Net increase (decrease) in cash and cash equivalents during the period 59,332 (63,585 ) 76,154 (87,436 )
    Cash and cash equivalents at the beginning of the period 78,720 162,861 61,898 186,712
           
    Cash and cash equivalents at period-end 138,052   99,276   138,052   99,276  





    Lima:

    CompaÑÍa de Minas Buenaventura S.A.A.

    Carlos Galvez, 511-419-2540

    Chief Financial Officer

    or

    Daniel Dominguez, 511-419-2591

    Director of Treasury and Investor Relations

    daniel.dominguez@buenaventura.pe

    or

    New York:

    i-advize Corporate Communications

    Maria Barona / Rafael Borja

    212-406-3691 / 3693

    buenaventura@i-advize.com

    Source: CompaÑia de Minas Buenaventura S.A.A.


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