Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
By: /s/ CARLOS E. GALVEZ PINILLOS
Name: Carlos E. Galvez Pinillos
In 1Q17, Buenaventura’s gold equity production from direct operations
was 62,828; a 4% decrease as compared to 1Q16 (65,376 gold ounces). In
1Q17 Gold production including associated companies was 135,428 ounces;
a 14% decrease as compared to the same period 2015. This decline is due
to a decrease in production at Yanacocha. Zinc and Lead equity
production were higher during 1Q17 compared to 1Q16 mainly as a result
increased production at Uchucchacua and El Brocal.
Orcopampa
(100% owned by Buenaventura)
|
Production
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Gold
|
|
Oz
|
|
42,332
|
|
44,135
|
|
-4
|
%
|
Silver
|
|
Oz
|
|
140,095
|
|
147,414
|
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Gold
|
|
US$/Oz
|
|
777
|
|
688
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
Gold production at Orcopampa decreased 4% in 1Q17 year on year,
primarily due to lower ore grades (see Appendix 2). Cost Applicable to
Sales (CAS) in 1Q17 (777 US$/Oz) increased 13% compared to 1Q16 (688
US$/Oz), mainly due to higher contractor expenses (a non-recurrent
closing bonus), an increase in meters drifted and lower ounces sold (4%
QoQ).
Gold production guidance for 2017 is 180k – 190k ounces.
Uchucchacua
(100% owned by Buenaventura)
|
Production
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Silver
|
|
Oz
|
|
4,021,722
|
|
4,161,975
|
|
-3
|
%
|
Zinc
|
|
MT
|
|
1,882
|
|
1,725
|
|
9
|
%
|
Lead
|
|
MT
|
|
2,794
|
|
2,506
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Silver
|
|
US$/Oz
|
|
10.92
|
|
10.35
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
Silver production in 1Q17 was in line with 1Q16. Cost Applicable to
Sales (CAS) in 1Q17 (10.92 US$/Oz) increased 5% compared to 1Q16 (10.35
US$/Oz), mainly due to an increase in labor expenses and higher
contractor expenses (a non-recurrent closing bonus).
Silver production guidance for 2017 is 16.0 million – 17.0 million
ounces.
Mallay (100% owned by Buenaventura)
|
Production
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Silver
|
|
Oz
|
|
320,372
|
|
408,619
|
|
-22
|
%
|
Zinc
|
|
MT
|
|
2,174
|
|
2,764
|
|
-21
|
%
|
Lead
|
|
MT
|
|
1,322
|
|
2,069
|
|
-36
|
%
|
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Silver
|
|
US$/Oz
|
|
13.18
|
|
11.93
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Silver production in 1Q17 decreased 22% year on year, primarily due to
lower ore grades (see Appendix 2). Cost Applicable to Sales (CAS) in
1Q17 increased by 10% year on year, primarily due to a decrease in
ounces sold (9% QoQ).
Silver production guidance for 2017 is 1.5 million – 1.7 million ounces.
Julcani (100% owned by Buenaventura)
|
Production
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Silver
|
|
Oz
|
|
666,236
|
|
853,052
|
|
-22
|
%
|
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Silver
|
|
US$/Oz
|
|
13.36
|
|
10.66
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
Silver production in 1Q17 was 22% lower compared to 1Q16; primarily due
to a decrease in ore treated (15% QoQ) and lower ore grades (10% QoQ).
Cost Applicable to Sales (CAS) in 1Q17 (13.36 US$/Oz) was 25% higher
than 1Q16 (10.66 US$/Oz), primarily explained by lower production.
Management changed the mining method at Julcani after rock fall resulted
in a fatal accident in January 2017, temporarily impacting productivity.
This effect has been already surpassed.
Silver production guidance for 2017 is 3.0 million – 3.4 million ounces.
La Zanja (53.06% owned by Buenaventura)
|
Production
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Gold
|
|
Oz
|
|
32,255
|
|
34,193
|
|
-6
|
%
|
Silver
|
|
Oz
|
|
68,931
|
|
59,236
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Gold
|
|
US$/Oz
|
|
723
|
|
538
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
Gold production in 1Q17 decreased by 6% year on year, in line with the
mine production plan. Cost Applicable to Sales (CAS) in 1Q17 (723
US$/Oz) increased 34% compared to 1Q16 (538 US$/Oz), primarily due to i)
increased reagent consumption (associated with an increase in acid water
treated), ii) decrease in ounces sold (3% QoQ) and iii) lower ore grades.
Gold production guidance for 2017 is 115k – 125k ounces.
Tantahuatay (40.10% owned by Buenaventura)
|
Production
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Gold
|
|
Oz
|
|
31,245
|
|
34,562
|
|
-10
|
%
|
Silver
|
|
Oz
|
|
133,274
|
|
243,990
|
|
-45
|
%
|
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Gold
|
|
US$/Oz
|
|
508
|
|
427
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
Gold production in 1Q17 decreased 10% year on year, in line with the
mine production plan. Cost Applicable to Sales (CAS) in 1Q17 (508
US$/Oz) increased 19% compared to 1Q16 (427 US$/Oz) mainly due to a
decrease in ounces sold and higher exploration expenses.
Gold production guidance for 2017 is 145k – 155k ounces
El Brocal
(61.32% owned by Buenaventura)
|
Production
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Copper
|
|
MT
|
|
11,155
|
|
11,344
|
|
-2
|
%
|
Zinc
|
|
MT
|
|
16,903
|
|
9,916
|
|
70
|
%
|
Silver
|
|
Oz
|
|
1,044,908
|
|
526,724
|
|
98
|
%
|
|
|
|
|
|
|
|
|
|
Cost Applicable to Sales
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Copper
|
|
US$/MT
|
|
4,877
|
|
4,823
|
|
1
|
%
|
Zinc
|
|
US$/MT
|
|
1,947
|
|
1,474
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
Copper production in 1Q17 was in line with 1Q16. In 1Q17 zinc production
increased 70% compared to 1Q16 mainly due to an increase ore treated and
higher ore grades.
In 1Q17, zinc Cost Applicable to Sales (CAS) increased 32% year to year,
mainly due to higher commercial deductions triggered by higher zinc
prices (79% QoQ), which activated the treatment charges escalators.
Copper CAS in 1Q17 was in line with the figure reported in 1Q16.
Zinc production guidance for 2017 is 60k – 70k MT, while copper
production guidance for 2017 is 55k – 65k MT.
General and Administrative Expenses
1Q17 General and Administrative expenses were US$22.5 million; a 5%
increase as compared to the US$21.4 million in 1Q16 mainly due to an
increase insurance expenses (29% QoQ).
Exploration in Non-Operating Areas
1Q17 Exploration costs in Non-Operating Areas were US$2.3 million
compared with US$3.5 million in 1Q16. During the period, Buenaventura’s
primarily focused its exploration efforts on the Marcapunta Norte
(US$0.38 million) and San Gabriel projects (US$0.19 million).
Share in Associated Companies
During 1Q17, Buenaventura’s share in associated companies was US$44.9
million, compared to US$28.4 million reported in 1Q16, comprised of:
|
|
|
|
|
|
|
|
|
Share in the Result of Associates
(in millions of US$)
|
|
|
|
1Q17
|
|
1Q16
|
|
Var %
|
Cerro Verde
|
|
|
|
36.0
|
|
19.0
|
|
90
|
%
|
Coimolache
|
|
|
|
4.3
|
|
5.7
|
|
-25
|
%
|
Yanacocha
|
|
|
|
4.6
|
|
3.7
|
|
23
|
%
|
Total
|
|
|
|
44.9
|
|
28.4
|
|
58
|
%
|
|
|
|
|
|
|
|
|
|
|
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), 1Q17 gold production was
137,621 ounces (60,072 ounces attributable to Buenaventura); a 24%
decrease as compared to the 180,348 ounces (78,722 ounces attributable
to Buenaventura) produced in 1Q16.
Gold production guidance at Yanacocha for 2017 is 530k – 560k ounces.
In 1Q17, Yanacocha reported a net income of US$10.4 million, compared to
a net income of US$8.5 million reported in 1Q16.
CAS in 1Q17 was US$823/oz; a 12% increase as compared to the US$734/oz
reported in 1Q16 mainly due to lower volume sold (147,821 gold ounces in
1Q17 vs 180,348 gold ounces in 1Q16).
The Quecher Main project engineering (oxide deposit) is being developed,
a decision to progress is expected in 2H17. In the case of Yanacocha
Sulphides, technical and economic viability has been improving, with an
update expected in 2H17.
Capital expenditures at Yanacocha were US$12.6 million in 1Q17.
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 1Q17 copper production
was 118,744 MT (23,250 MT attributable to Buenaventura), a 4% decrease
compared to 1Q16 (123,414 MT and 24,164 MT attributable to Buenaventura).
During 1Q17, Cerro Verde reported a net income of US$184.0 million
compared to net income of US$96.9 million in 1Q16. This increase was
primarily due to: i) an increase in volumes sold and ii) higher realized
price (US$2.83/Lb in 1Q17 compared to US$2.23/Lb in 1Q16).
Capital expenditures at Cerro Verde were US$24.7 million in 1Q17.
Cerro Verde´s Debt:
|
|
|
1.
|
|
Syndicated Loan (US$1.8B): US$540 million of which have been prepaid.
|
|
|
2.
|
|
Shareholder´s Loan (US$0.6B): US$85 million of which have been
prepaid.
|
|
|
|
|
|
Copper production guidance at Cerro Verde for 2017 is 500k MT – 550k MT.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), 1Q17 attributable
contribution to net income was US$4.3 million (US$5.7 million in 1Q16).
Project Development and Exploration
The Tambomayo Project (100% ownership)
-
Project ramp-up has been extended due to additional adjustments that
have to be made in the tailings filtering process.
-
Full capacity expected by 3Q17.
-
Updated 2017 Production Guidance of 60k – 90k Au Oz.
The San Gabriel Project (100% ownership)
-
Environmental Impact Assessment (EIA) was approved on March 31, 2017.
-
Prefeasibility in progress to complete:
-
Mining method and rock support analysis
-
Metallurgical test to optimize the design of the processing plant
and recovery rate
***
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 project.
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 2015 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 December 31, 2016)
|
|
|
BVN
|
|
Operating
|
|
|
Equity %
|
|
Mines / Business
|
El Molle Verde S.A.C*
|
|
100.00
|
|
Trapiche Project
|
Minera La Zanja S.A*
|
|
53.06
|
|
La Zanja
|
Sociedad Minera El Brocal S.A.A*
|
|
61.32
|
|
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
|
|
|
|
|
|
1Q17
|
|
1Q16
|
|
%
|
|
Mining Unit
|
|
Operating Results
|
|
Underground
|
|
|
|
Orcopampa
|
|
Ore Milled DMT
|
|
114,485
|
|
|
110,588
|
|
|
4
|
%
|
|
|
|
Ore Grade OZ/MT
|
|
0.38
|
|
|
0.40
|
|
|
-7
|
%
|
|
|
|
Recovery Rate %
|
|
96.8
|
%
|
|
96.2
|
%
|
|
1
|
%
|
|
|
|
Ounces Produced*
|
|
42,332
|
|
|
44,135
|
|
|
-4
|
%
|
|
Mining Unit
|
|
Operating Results
|
|
Open Pit
|
|
|
|
La Zanja
|
|
Ounces Produced
|
|
32,255
|
|
|
34,193
|
|
|
-6
|
%
|
|
Tantahuatay
|
|
Ounces Produced
|
|
31,245
|
|
|
34,562
|
|
|
-10
|
%
|
|
* Includes ounces from retreatment of taling dams
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER PRODUCTION
|
|
|
|
|
|
1Q17
|
|
1Q16
|
|
%
|
|
Mining Unit
|
|
Operating Results
|
|
Underground
|
|
|
|
Uchucchacua
|
|
Ore Milled DMT
|
|
332,876
|
|
|
318,381
|
|
|
5
|
%
|
|
|
|
Ore Grade OZ/MT
|
|
14.38
|
|
|
15.61
|
|
|
-8
|
%
|
|
|
|
Recovery Rate %
|
|
84.0
|
%
|
|
83.8
|
%
|
|
0
|
%
|
|
|
|
Ounces Produced
|
|
4,021,722
|
|
|
4,161,975
|
|
|
-3
|
%
|
|
Julcani
|
|
Ore Milled DMT
|
|
38,341
|
|
|
44,983
|
|
|
-15
|
%
|
|
|
|
Ore Grade OZ/MT
|
|
17.92
|
|
|
19.85
|
|
|
-10
|
%
|
|
|
|
Recovery Rate %
|
|
96.99
|
%
|
|
95.57
|
%
|
|
1
|
%
|
|
|
|
Ounces Produced
|
|
666,236
|
|
|
853,052
|
|
|
-22
|
%
|
|
Mallay
|
|
Ore Milled DMT
|
|
49,382
|
|
|
48,546
|
|
|
2
|
%
|
|
|
|
Ore Grade OZ/MT
|
|
7.05
|
|
|
8.99
|
|
|
-22
|
%
|
|
|
|
Recovery Rate %
|
|
92.1
|
%
|
|
93.7
|
%
|
|
-2
|
%
|
|
|
|
Ounces Produced
|
|
320,372
|
|
|
408,619
|
|
|
-22
|
%
|
|
Mining Unit
|
|
Operating Results
|
|
Open Pit
|
|
|
|
Colquijirca
|
|
Ounces Produced
|
|
812,998
|
|
|
357,699
|
|
|
127
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC PRODUCTION
|
|
|
|
|
|
1Q17
|
|
1Q16
|
|
%
|
|
|
Mining Unit
|
|
Operating Results
|
|
Underground
|
|
|
|
Uchucchacua
|
|
Ore Milled DMT
|
|
332,876
|
|
|
318,381
|
|
|
5
|
%
|
|
|
|
Ore Grade %
|
|
1.23
|
%
|
|
1.13
|
%
|
|
9
|
%
|
|
|
|
Recovery Rate %
|
|
45.90
|
%
|
|
47.7
|
%
|
|
-4
|
%
|
|
|
|
MT Produced
|
|
1,882
|
|
|
1,725
|
|
|
9
|
%
|
|
Mallay
|
|
Ore Milled DMT
|
|
49,382
|
|
|
48,546
|
|
|
2
|
%
|
|
|
|
Ore Grade %
|
|
4.98
|
%
|
|
6.54
|
%
|
|
-24
|
%
|
|
|
|
Recovery Rate %
|
|
88.30
|
%
|
|
87.0
|
%
|
|
1
|
%
|
|
|
|
MT Produced
|
|
2,174
|
|
|
2,764
|
|
|
-21
|
%
|
|
Mining Unit
|
|
Operating Results
|
|
Open Pit
|
|
|
|
Colquijirca
|
|
MT Produced
|
|
16,903
|
|
|
9,916
|
|
|
70
|
%
|
|
|
|
|
|
|
|
|
|
|
APPENDIX 3: EBITDA Reconciliation (in thousand US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q17
|
|
1Q16
|
|
Var
|
Net Income
|
|
|
|
76,250
|
|
51,248
|
|
49
|
%
|
Add / Subtract:
|
|
|
|
4,495
|
|
10,784
|
|
N.A
|
Provision for income tax, net
|
|
|
|
-3,459
|
|
-6,789
|
|
-49
|
%
|
Share in associated companies by the equity method, net
|
|
|
|
-44,864
|
|
-28,397
|
|
58
|
%
|
Provision for contingencies
|
|
|
|
12,482
|
|
885
|
|
1310
|
%
|
Interest income
|
|
|
|
-1,291
|
|
-2,347
|
|
-45
|
%
|
Interest expense
|
|
|
|
7,212
|
|
7,980
|
|
-10
|
%
|
Loss on currency exchange difference
|
|
|
|
-3,003
|
|
-6,379
|
|
-53
|
%
|
Long Term Compensation provision
|
|
|
|
-4
|
|
0
|
|
N.A
|
Depreciation and Amortization
|
|
|
|
44,309
|
|
46,838
|
|
-5
|
%
|
Workers´ participation provision
|
|
|
|
836
|
|
1,276
|
|
-34
|
%
|
Profit from discontinued operations
|
|
|
|
-7,723
|
|
-2,283
|
|
238
|
%
|
EBITDA Buenaventura Direct Operations
|
|
|
|
80,745
|
|
62,032
|
|
30
|
%
|
EBITDA Yanacocha (43.65%)
|
|
|
|
12,956
|
|
25,405
|
|
-49
|
%
|
EBITDA Cerro Verde (19.58%)
|
|
|
|
75,764
|
|
48,233
|
|
57
|
%
|
EBITDA Coimolache (40%)
|
|
|
|
8,671
|
|
11,119
|
|
-22
|
%
|
Adjusted EBITDA (including Associated companies)
|
|
|
|
178,136
|
|
146,788
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
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 nine months ended September 30, 2015
and 2016, and (iii) reconciliations of Cost of sales, excluding
depreciation and amortization to Cost applicable to sales for each of
our mining units. The amounts set forth in Cost applicable to sales and
Cost applicable to sales per unit sold for each mine and mineral
indicated in the tables below can be reconciled to the amounts set forth
on our consolidated statements of profit or loss for the three and nine
months ended September 30, 2015 and 2016 by reference to the
reconciliations of Cost of sales, excluding depreciation and
amortization (by mine and mineral), Selling Expenses (by mine and metal)
expenses and Exploration in units in operations (by mine and mineral) to
consolidated Cost of sales, excluding depreciation and amortization,
consolidated Selling Expenses and consolidated Exploration in units in
operations expenses, respectively, set forth below.
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
(in thousands of US$)
|
|
Consolidated Cost of sales excluding depreciation and amortization
|
|
|
|
141,320
|
|
|
115,411
|
|
Add:
|
|
|
|
|
|
|
|
|
Consolidated Exploration in units in operation
|
|
|
|
19,661
|
|
|
19,116
|
|
Consolidated Commercial deductions
|
|
|
|
66,155
|
|
|
54,341
|
|
Consolidated Selling expenses
|
|
|
|
4,313
|
|
|
4,773
|
|
Consolidated Cost applicable to sales
|
|
|
|
231,449
|
|
|
193,641
|
|
|
|
|
|
|
|
|
|
|
Set forth below is a reconciliation of Cost of sales, excluding
depreciation and amortization (by mine and mineral) to
consolidated Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 3 months ended Mar 31
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Cost of sales by mine and mineral
|
|
|
|
(in thousands of US$)
|
|
Julcani, Gold
|
|
|
|
2
|
|
|
0
|
|
Julcani, Silver
|
|
|
|
7,720
|
|
|
4,005
|
|
Julcani, Lead
|
|
|
|
650
|
|
|
387
|
|
Julcani, Copper
|
|
|
|
45
|
|
|
30
|
|
Mallay, Gold
|
|
|
|
100
|
|
|
117
|
|
Mallay, Silver
|
|
|
|
2,370
|
|
|
2,088
|
|
Mallay, Lead
|
|
|
|
1,465
|
|
|
1,301
|
|
Mallay, Zinc
|
|
|
|
2,090
|
|
|
1,508
|
|
Orcopampa, Gold
|
|
|
|
23,866
|
|
|
21,769
|
|
Orcopampa, Silver
|
|
|
|
1,147
|
|
|
1,083
|
|
Orcopampa, Copper
|
|
|
|
18
|
|
|
6
|
|
Uchucchacua, Gold
|
|
|
|
20
|
|
|
16
|
|
Uchucchacua, Silver
|
|
|
|
25,998
|
|
|
21,550
|
|
Uchucchacua, Lead
|
|
|
|
2,469
|
|
|
1,318
|
|
Uchucchacua, Zinc
|
|
|
|
1,518
|
|
|
882
|
|
La Zanja, Gold
|
|
|
|
22,932
|
|
|
17,712
|
|
La Zanja, Silver
|
|
|
|
684
|
|
|
442
|
|
El Brocal, Gold
|
|
|
|
1,411
|
|
|
1,978
|
|
El Brocal, Silver
|
|
|
|
4,883
|
|
|
2,726
|
|
El Brocal, Lead
|
|
|
|
3,983
|
|
|
2,150
|
|
El Brocal, Zinc
|
|
|
|
13,363
|
|
|
7,027
|
|
El Brocal, Copper
|
|
|
|
19,481
|
|
|
24,341
|
|
Non Mining Units
|
|
|
|
5,104
|
|
|
2,975
|
|
|
|
|
|
|
|
|
|
|
Consolidated Cost of sales, excluding depreciation and
amortization
|
|
|
|
141,320
|
|
|
115,411
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Exploration expenses in units in operation by mine and
mineral
|
|
|
|
(in thousands of US$)
|
|
Julcani, Gold
|
|
|
|
1
|
|
|
0
|
|
Julcani, Silver
|
|
|
|
3,033
|
|
|
2,211
|
|
Julcani, Lead
|
|
|
|
255
|
|
|
213
|
|
Julcani, Copper
|
|
|
|
18
|
|
|
16
|
|
Mallay, Gold
|
|
|
|
30
|
|
|
41
|
|
Mallay, Silver
|
|
|
|
719
|
|
|
728
|
|
Mallay, Lead
|
|
|
|
444
|
|
|
453
|
|
Mallay, Zinc
|
|
|
|
634
|
|
|
526
|
|
Orcopampa, Gold
|
|
|
|
8,574
|
|
|
8,188
|
|
Orcopampa, Silver
|
|
|
|
412
|
|
|
407
|
|
Orcopampa, Copper
|
|
|
|
7
|
|
|
2
|
|
Uchucchacua, Gold
|
|
|
|
3
|
|
|
4
|
|
Uchucchacua, Silver
|
|
|
|
4,448
|
|
|
5,735
|
|
Uchucchacua, Lead
|
|
|
|
423
|
|
|
351
|
|
Uchucchacua, Zinc
|
|
|
|
260
|
|
|
235
|
|
La Zanja, Gold
|
|
|
|
388
|
|
|
4
|
|
La Zanja, Silver
|
|
|
|
12
|
|
|
0
|
|
El Brocal, Gold
|
|
|
|
0
|
|
|
0
|
|
El Brocal, Silver
|
|
|
|
0
|
|
|
0
|
|
El Brocal, Lead
|
|
|
|
0
|
|
|
0
|
|
El Brocal, Zinc
|
|
|
|
0
|
|
|
0
|
|
El Brocal, Copper
|
|
|
|
0
|
|
|
0
|
|
Non Mining Units
|
|
|
|
0
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
Consolidated Exploration expenses in units in operation
|
|
|
|
19,661
|
|
|
19,116
|
|
|
|
|
|
|
|
|
|
|
Set forth below is a reconciliation of Commercial Deductions in
units in operation (by mine and mineral) to consolidated
Commercial deductions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 3 months ended Mar 31
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Commercial Deductions in units in operation by mine and
mineral
|
|
|
|
(in thousands of US$)
|
|
Julcani, Gold
|
|
|
|
0
|
|
|
0
|
|
Julcani, Silver
|
|
|
|
1,341
|
|
|
1,435
|
|
Julcani, Lead
|
|
|
|
113
|
|
|
135
|
|
Julcani, Copper
|
|
|
|
8
|
|
|
12
|
|
Mallay, Gold
|
|
|
|
39
|
|
|
44
|
|
Mallay, Silver
|
|
|
|
909
|
|
|
1,110
|
|
Mallay, Lead
|
|
|
|
552
|
|
|
681
|
|
Mallay, Zinc
|
|
|
|
1,181
|
|
|
1,369
|
|
Orcopampa, Gold
|
|
|
|
99
|
|
|
101
|
|
Orcopampa, Silver
|
|
|
|
32
|
|
|
16
|
|
Orcopampa, Copper
|
|
|
|
4
|
|
|
1
|
|
Uchucchacua, Gold
|
|
|
|
7
|
|
|
6
|
|
Uchucchacua, Silver
|
|
|
|
9,626
|
|
|
9,256
|
|
Uchucchacua, Lead
|
|
|
|
910
|
|
|
568
|
|
Uchucchacua, Zinc
|
|
|
|
1,544
|
|
|
1,312
|
|
La Zanja, Gold
|
|
|
|
62
|
|
|
58
|
|
La Zanja, Silver
|
|
|
|
1
|
|
|
1
|
|
El Brocal, Gold
|
|
|
|
2,039
|
|
|
2,194
|
|
El Brocal, Silver
|
|
|
|
4,178
|
|
|
2,027
|
|
El Brocal, Lead
|
|
|
|
2,792
|
|
|
1,055
|
|
El Brocal, Zinc
|
|
|
|
13,393
|
|
|
5,355
|
|
El Brocal, Copper
|
|
|
|
27,323
|
|
|
27,605
|
|
Non Mining Units
|
|
|
|
0
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
Consolidated Commercial deductions in units in operation
|
|
|
|
66,155
|
|
|
54,341
|
|
|
|
|
|
|
|
|
|
|
Set forth below is a reconciliation of Selling expenses (by mine
and mineral) to consolidated Selling expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 3 months ended Mar 31
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Selling expenses by mine and mineral
|
|
|
|
(in thousands of US$)
|
|
Julcani, Gold
|
|
|
|
0
|
|
|
0
|
|
Julcani, Silver
|
|
|
|
102
|
|
|
178
|
|
Julcani, Lead
|
|
|
|
9
|
|
|
17
|
|
Julcani, Copper
|
|
|
|
1
|
|
|
1
|
|
Mallay, Gold
|
|
|
|
4
|
|
|
9
|
|
Mallay, Silver
|
|
|
|
102
|
|
|
161
|
|
Mallay, Lead
|
|
|
|
63
|
|
|
100
|
|
Mallay, Zinc
|
|
|
|
90
|
|
|
116
|
|
Orcopampa, Gold
|
|
|
|
154
|
|
|
159
|
|
Orcopampa, Silver
|
|
|
|
7
|
|
|
8
|
|
Orcopampa, Copper
|
|
|
|
0
|
|
|
0
|
|
Uchucchacua, Gold
|
|
|
|
1
|
|
|
1
|
|
Uchucchacua, Silver
|
|
|
|
673
|
|
|
809
|
|
Uchucchacua, Lead
|
|
|
|
64
|
|
|
49
|
|
Uchucchacua, Zinc
|
|
|
|
39
|
|
|
33
|
|
La Zanja, Gold
|
|
|
|
174
|
|
|
217
|
|
La Zanja, Silver
|
|
|
|
5
|
|
|
5
|
|
El Brocal, Gold
|
|
|
|
73
|
|
|
120
|
|
El Brocal, Silver
|
|
|
|
254
|
|
|
165
|
|
El Brocal, Lead
|
|
|
|
207
|
|
|
130
|
|
El Brocal, Zinc
|
|
|
|
696
|
|
|
425
|
|
El Brocal, Copper
|
|
|
|
1,014
|
|
|
1,472
|
|
Non Mining Units
|
|
|
|
580
|
|
|
598
|
|
|
|
|
|
|
|
|
|
|
Consolidated Selling expenses
|
|
|
|
4,313
|
|
|
4,773
|
|
|
|
|
|
|
|
|
|