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
Produced 51,102 50,196 2%
0 4,791 -
95,032 108,565 -12%
999 8,903 -
Orcopampa Total Production 2Q14 51,102
2Q13
54,987
6M14 96,031
6M13 117,468
La
Zanja Tantahuatay 2Q14 2Q13
% 6M14 6M13
% 2Q14 2Q13 %
6M14 6M13 % Ounces
Produced 36,685 37,045 -1%
72,622 68,251 6%
35,171
35,382 -1%
67,804
69,689 -3%
Breapampa
2Q14 2Q13 %
6M14 6M13 %
Ounces Produced 21,228 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 Produced 2,997,602
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 Produced 1,575
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
2,014 2,013 Assets US$(000)
US$(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 assets 639,898
551,875 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 assets 4,042,674
4,008,500 Total assets
4,682,572 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 liabilities
377,269 386,214 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
liabilities 456,915 341,632
Total liabilities 834,184
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
3,559,729 3,555,222 Non-controlling interest 288,659
277,307
Total shareholders’ equity
3,848,388 3,832,529
Total liabilities and shareholders’ equity
4,682,572 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,
2,014 2,013 2,014 2,013 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,
2,014 2,013 2,014 2,013 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,
511-419-2540Chief Financial OfficerorDaniel Dominguez,
511-419-2591Director of Treasury and Investor
Relationsdaniel.dominguez@buenaventura.peorNew York:i-advize
Corporate CommunicationsMaria Barona / Rafael Borja212-406-3691 /
3693buenaventura@i-advize.com
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