Buenaventura Announces First Quarter 2015 Results

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 (1Q15). 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 2015 Highlights:

  • In 1Q15, EBITDA from direct operations was US$49.3 million and adjusted EBITDA (including associated companies) was US$142.9 million.
  • Total attributable production in 1Q15 was 194k gold ounces and 5.6 million silver ounces (compared to 190k gold ounces and 4.1 million silver ounces in 1Q14).
  • Yanacocha´s CAS in 1Q15 was US$479/oz, a decrease of 56% when compared to US$1,087/oz in 1Q14 due to lower ore treated, higher grade and lower stripping ratio.
  • At the Tambomayo project, construction permits are expected to be ready in 2Q15. Production should begin in 2Q16 at 1,000 TPD (110-120K gold ounces and 3.0 million silver ounces per year).
  • At the San Gabriel (Chucapaca) project, construction of the ramp is expected to start in May 2015. The Environmental Impact Assessment (EIA) of the project´s construction is expected to be submitted in 3Q15.
  • At El Brocal, testing of the plant expansion was completed and production ramp up reached 16.5k TPD level. Full production capacity level (18K TPD) will be reached in 2Q15.
  • Cerro Verde’s plant expansion to 360K TPD is in-line with schedule and budget (approx. 70% complete). Additional production from the expanded plant is scheduled for early 2016. Will become the largest concentration facility in the world.

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

1Q151Q14Var%
Total Revenues 252.0 280.9 -10%
Operating Profit -5.9 14.0 N.A.
EBITDA Direct Operations 49.3 63.1 -22%
Adjusted EBITDA (Inc Associates) 142.9 113.5 26%
Net Income 17.3 -16.1 N.A.
EPS* 0.07 -0.06 N.A.
(*) as of March 31, 2015, Buenaventura had 254,186,867 outstanding shares.

Operating Revenues

During 1Q15, net sales were US$242.9 million, a 11% decrease compared to the US$272.9 million reported in 1Q14. This was explained by the lower gold, silver and copper prices despite higher silver and zinc volume sold.

Royalty income increased 13%, to US$9.1 million in 1Q15 compared to the US$8.0 million reported in 1Q14. This was due to higher revenues at Yanacocha (15% higher QoQ).

Operating Highlights

1Q15

1Q14

Var%

Net Sales
 (in millions of US$)

242.9 272.9 -11%

Average Realized Gold
 Price (US$/oz)*

1,221 1,311 -7%

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

1,222 1,301 -6%

Average Realized Silver Price
 (US$/oz)*

15.35 19.79 -22%

Average Realized Lead Price
 (US$/MT)*

1,705 2,174 -22%

Average Realized
 Zinc Price (US$/MT)*

2,061 2,198 -6%

Average Realized Copper
 Price (US$/MT)*

5,059 7,059 -28%
(*) Buenaventura’s Direct Operations
Volume Sold

1Q15

1Q14

Var%

Gold Oz Direct Operations 101,232 107,238 -6%
Gold Oz inc Associated Companies 221,114 209,213 6%
Silver Oz 4,797,641 4,155,234 15%
Lead MT 9,368 4,081 130%
Zinc MT 13,535 2,834 378%
Copper MT 3,630 9,001 -60%

Production and Operating Costs

In 1Q15, Buenaventura’s gold equity production from direct operations decreased 14%, from 99.5k ounces in 1Q14 to 85.3k ounces in 1Q15 because Breapampa stopped mining last November 2014 according to the mining plan. Gold production including associated companies increased 2% due to higher production in Yanacocha. Silver equity production from direct operations increased 38%, mainly due to higher production in Uchucchacua and El Brocal.

Equity Production

1Q15

1Q14

Var%

Gold Oz Direct Operations1

85,310 99,457 -14%
Gold Oz including Associated Companies 193,586 190,036 2%
Silver Oz Direct Operations1 5,479,949 3,972,966 38%
Silver Oz including Associated Companies 5,613,731 4,110,396 37%
Lead MT 7,440 4,468 67%
Zinc MT 11,345 3,920 189%
Copper MT Direct Operations1 2,189 5,359 -59%
Copper MT including Associated Companies 11,710 17,294 -32%
1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10% of Coimolache (Tantahuatay).

Orcopampa’s (100% owned by Buenaventura)

Production

1Q15

1Q14

Var %

GoldOz 50,068 44,929 11%
SilverOz 112,210 79,783 41%

Cost Applicable to Sales

1Q15

1Q14

Var %

GoldUS$/Oz 698 832 -16%

Gold production at Orcopampa increased 11% in 1Q15 (compared to 1Q14) due to higher ore treated and grade (Appendix 2). Cost Applicable to Sales (CAS) in 1Q15 decreased 16% mainly explained by lower reagent (cyanide) costs, fuel consumption and contractors costs.

Gold production guidance for 2015 is 190k – 205k ounces.

Uchucchacua (100% owned by Buenaventura)

Production

1Q15

1Q14

Var %

SilverOz 3,529,174 2,368,509 49%
ZincMT 1,586 1,470 8%
LeadMT 2,059 1,688 22%

Cost Applicable to Sales

1Q15

1Q14

Var %

SilverUS$/Oz 14.45 17.08 -15%

Silver production in 1Q15 increased 49% compared to 1Q14, explained by higher ore volume treated and recovery rate (see Appendix 2). Cost Applicable to Sales (CAS) in 1Q15 decreased 15% compared to 1Q14 mainly explained by a reduction in list prices of our underground mining contractors and an overall reduction in hauling distances.

Silver production guidance for 2015 is 14.5 million - 15.0 million ounces.

Mallay (100% owned by Buenaventura)

Production

1Q15

1Q14

Var %

SilverOz 307,254 297,180 3%
ZincMT 2,179 2,450 -11%
LeadMT 1,652 1,812 -9%

Cost Applicable to Sales

1Q15

1Q14

Var %

SilverUS$/Oz 14.39 13.62 6%

Silver production in 1Q15 was 3% higher than in 1Q14 due to higher recovery rate. Cost Applicable to Sales (CAS) in 1Q15 was 6% higher compared to 1Q14 due to an increase in mine site exploration expenses.

Silver production guidance for 2015 is 1.1 million – 1.3 million ounces.

Julcani (100% owned by Buenaventura)

Production
1Q151Q14Var %
SilverOz 816,352 763,437 7%
Cost Applicable to Sales
1Q151Q14Var %
SilverUS$/Oz 13.24 12.54 6%

Silver production in 1Q15 was 7% higher than in 1Q14 explained by higher ore treated and recovery rate. Cost Applicable to Sales (CAS) in 1Q15 was 6% higher than 1Q14 mainly explained by an increase in contractors and supply expenses due to more drilling and drifting activities.

Silver production guidance for 2015 is 2.9 million – 3.1 million ounces.

La Zanja’s (53.06% owned by Buenaventura)

Production
1Q151Q14Var %
GoldOz 30,455 35,937 -15%
SilverOz 95,308 95,386 0%
Cost Applicable to Sales
1Q151Q14Var %
GoldUS$/Oz 823 554 49%

Gold production in 1Q15 decreased 15% when compared to 1Q14 due to a higher stripping ratio. CAS in 1Q15 increased 49% mainly explained by higher contractor expenses associated with the hauling distance from Pampa Verde, as well as additional acid water treatment costs.

Gold production guidance for 2015 is 138k – 142k ounces.

Tantahuatay’s (40.10% owned by Buenaventura)

Production
1Q151Q14Var %
GoldOz 30,207 32,633 -7%
SilverOz 160,264 122,316 31%
Cost Applicable to Sales
1Q151Q14Var %
GoldUS$/Oz 537 442 21%

Gold production in 1Q15 decreased 7% compared to the figure reported in 1Q14. CAS in 1Q15 increased 21% due to higher stripping ratio and lower ore grade in the current area of operation.

Gold production guidance for 2015 is 138k – 142k ounces

El Brocal (54.07% owned by Buenaventura)

Production
1Q151Q14Var %
CopperMT 3,869 9,792 -60%
ZincMT 14,020 0 N.A.
SilverOz 982,254 497,657 97%
Cost Applicable to Sales
1Q151Q14Var %
CopperUS$/MT 5,536 5,194 7%
ZincUS$/MT 1,506 0 N.A.

During 1Q15, El Brocal produced 3,869 MT of copper, 14,020 MT of zinc and 982,254 ounces of silver (97% increase when compared to 497,657 ounces in 1Q14). Copper CAS was 7% higher compared to 1Q14 due to an increase in commercial deductions. Zinc CAS was 1,506 US$/MT.

Zinc production guidance for 2015 is 75k – 85k MT. Copper production guidance for 2015 is 30k – 35k MT.

General and Administrative Expenses

General and administrative expenses in 1Q15 were US$21.5 million, 22% lower when compared to the 1Q14 figure (US$27.7 million) due to a lower long-term compensation provision (US$ 1.9M in 1Q14 vs US$0.1 in 1Q15) and a 46% decrease in services provided by third parties.

Exploration in Non-Operating Areas

Exploration in non-operating areas during 1Q15 was US$10.7 million in-line with US$10.4 million for 1Q14. During the period, Buenaventura’s main exploration efforts were focused on the following projects: La Zanja Underground (US$5.1 million) and Tambomayo (US$3.4 million).

Share in Associated Companies

During 1Q15, Buenaventura’s share in associated companies was US$36.3 million, compared to the negative US$4.5 million reported in 1Q14, composed by:

Share in the Result of Associates
(in millions of US$)

1Q15

1Q14

Var%

Yanacocha Contribution 26.2 (24.5) N.A.
Cerro Verde Contribution 8.0 15.7 -49%
CDH Contribution 0.0 (0.1) -100%
Coimolache Contribution 2.1 4.8 -56%
Other Minor Investments 0.0 (0.4) N.A.
Total 36.3 (4.5) N.A.

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 1Q15, gold production was 248,055 ounces, 20% higher than 1Q14 production (207,511 ounces). 2015 Gold production guidance for Yanacocha is 880k – 940k ounces.

Under IFRS, Yanacocha reported US$60.1 million of net income (US$2.5 million under US GAAP).

In 1Q15, CAS was US$479/oz, a decrease of 56% when compared to US$1,087/oz in 1Q14 due to lower stripping ratio in accordance with the mining plan.

Capital expenditures at Yanacocha were US$15.2 million in 1Q15.

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 1Q15 copper production was 48,623 MT (9,520 MT attributable to Buenaventura), a 20% decrease compared to 1Q14 (60,955 MT and 11,935 MT attributable to Buenaventura) due to a lower ore grade and recovery in copper concentrates.

During 1Q15, Cerro Verde reported net income of US$40.7 million, 59% lower compared to US$98.0 million in 1Q14. The decrease is primarily as result of a decrease in net sales of US$89.7 million which is attributable to a 10% decrease in average realized copper price (US$ 2.49 in 1Q15 vs US$2.76 in 1Q14) and lower copper sales volumes.

Capital expenditures at Cerro Verde were US$468.9 million in 1Q15 and US$439.4 million in 2014.

Cerro Verde’s plant expansion has an excess of 70% progress and completion expected by 4Q15. The total CAPEX for the project is US$4.6 billion.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to the net income in 1Q15 was US$2.1 million (US$4.8 million in 1Q14).

Project Development and Exploration

The Tambomayo Project (100% ownership)

The Tambomayo´s Environmental Impact Assessment (EIA) was approved in January 2015. Construction permits are expected to be ready in 2Q15 and 80% of the purchase orders have been placed. Tambomayo has 250k gold ounces in reserves and 335k gold ounces in resources. Additionally, Tambomayo has 9.4 million silver ounces in reserves and 5.9 million silver ounces in resources. The estimated annual production is 110k-120k gold ounces and 3.0 million silver ounces.

The San Gabriel Project (100% ownership)

Diamond drilling at the Pachacutec prospect and the beginning of construction of the San Gabriel ramp is expected to begin in May 2015. The Environmental Impact Assessment (EIA) of the project´s construction is expected to be submitted to the authorities in 3Q15. San Gabriel has 2.5 million ounces of gold in resources. The estimated annual production is 180k-220k gold ounces.

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*, 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 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 April 29th, 2015)

BVNOperating
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* 54.07 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
Procesadora 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
Three Months Ended March 31
Orcopampa
20152014%
Ore Milled DMT 108,415 103,227 5%
Ore Grade OZ/MT 0.47 0.44 6%
Recovery Rate % 96.5% 96.3% 0%
Ounces Produced*50,06844,92911%
* Includes ounces from retreatment of tailing dams
La ZanjaTantahuatay
1Q151Q14%1Q151Q14%
Ounces Produced 30,455 35,937 -15% 30,207 32,633 -7%
SILVER PRODUCTION
Three Months Ended March 31
UchucchacuaColquijirca
20152014%20152014%
Ore Milled DMT 282,573 212,708 33% 764,815 N.A.
Ore Grade OZ/MT 14.89 14.56 2% 1.74 N.A.
Recovery Rate % 83.9% 76.5% 10% 62.5% N.A.
Ounces Produced3,529,6242,368,50949%829,503N.A.
ZINC PRODUCTION
Three Months Ended March 31
UchucchacuaColquijirca
20152014%20152014%
Ore Milled DMT 282,573 212,708 33% 764,815 N.A.
Ore Grade % 1.1% 1.1% -6% 2.96% N.A.
Recovery Rate % 53.5% 61.5% -13% 61.9% N.A.
MT Produced1,5861,4708%14,020N.A.

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

1Q151Q14Var
Net Income 10,248 -10,372 N.A.
Add / Substract:39,00373,439 -47%
Provision for income tax, net 10,427 7,322 42%
Share in associated companies by the equity method, net -36,274 4,480 N.A.
Interest income -644 -1,806 -64%
Interest expense 5,879 2,901 103%
Loss on currency exchange difference 2,318 522 344%
Long Term Compensation provision 102 1,925 -95%
Depreciation and Amortization 54,619 45,398 20%
Impairment of Long-Lived Assets 0 794 -
Workers´ participation provision 472 966 -51%
Loss from discontinued operations 2,104 10,937 -81%
EBITDA Buenaventura Direct Operations49,25163,067-22%
EBITDA Yanacocha (43.65%) 68,371 2,581 2549%
EBITDA Cerro Verde (19.58%) 17,863 36,824 -51%
EBITDA Coimolache (40%) 7,418 11,033 -33%
EBITDA Buenaventura + All Associates142,904113,50626%

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, 2013 and 2014, 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, 2013 and 2014 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

2015

2014

(in thousands of US$)

Consolidated Cost of sales excluding depreciation and
amortization

136,477 139,438
Add:
Consolidated Exploration in units in operation 22,470 23,730
Consolidated Commercial deductions 36,527 36,663
Consolidated Selling expenses 4,190 3,992

Consolidated Cost applicable to sales

199,664203,823

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

2015

2014

Cost of sales by mine and mineral(in thousands of US$)
Julcani, Gold 11 -7
Julcani, Silver 4,449 4,817
Julcani, Lead 467 422
Julcani, Copper 62 60
Mallay, Silver 2,071 2,105
Mallay, Lead 1,166 1,477
Mallay, Zinc 1,652 1,421
Breapampa, Gold 4,244 9,321
Breapampa, Silver 616 719
Orcopampa, Gold 30,696 28,679
Orcopampa, Silver 950 775
Uchucchacua, Silver 25,074 28,552
Uchucchacua, Lead 1,326 1,866
Uchucchacua, Zinc 812 1,342
La Zanja, Gold 26,075 18,133
La Zanja, Silver 1,168 882
El Brocal, Gold 435 539
El Brocal, Silver 5,946 2,814
El Brocal, Lead 4,752 178
El Brocal, Zinc 10,427 16
El Brocal, Copper 8,218 24,598
Non Mining Units 5,859 10,731
Consolidated Cost of sales, excluding depreciation and amortization136,477139,438

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

2015

2014

Exploration expenses in units in operation by mine
and mineral

(in thousands of US$)
Julcani, Gold 5 -4
Julcani, Silver 2,175 2,484
Julcani, Lead 228 218
Julcani, Copper 30 31
Mallay, Silver 676 623
Mallay, Lead 381 437
Mallay, Zinc 540 420
Breapampa, Gold 61 121
Breapampa, Silver 9 9
Orcopampa, Gold 11,518 12,799
Orcopampa, Silver 356 346
Uchucchacua, Silver 5,968 5,598
Uchucchacua, Lead 316 366
Uchucchacua, Zinc 193 263
La Zanja, Gold 13 19
La Zanja, Silver 1 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 operation22,47023,730

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

2015

2014

Commercial Deductions in units in operation by mine and mineral(in thousands of US$)
Julcani, Gold 2 -2
Julcani, Silver 1,328 1,616
Julcani, Lead 127 139
Julcani, Copper 18 23
Mallay, Silver 880 971
Mallay, Lead 506 662
Mallay, Zinc 858 924
Breapampa, Gold 39 25
Breapampa, Silver 2 0
Orcopampa, Gold 56 57
Orcopampa, Silver 0 0
Uchucchacua, Silver 7,963 7,083
Uchucchacua, Lead 426 477
Uchucchacua, Zinc 890 877
La Zanja, Gold 24 43
La Zanja, Silver 0 0
El Brocal, Gold 537 445
El Brocal, Silver 3,585 2,668
El Brocal, Lead 2,193 153
El Brocal, Zinc 5,805 94
El Brocal, Copper 11,287 20,407
Non Mining Units 0 0
Consolidated Commercial deductions in units in operation36,52736,663
Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated
Selling expenses:

For the 3 months ended Mar 31

2015

2014

Selling expenses by mine and mineral(in thousands of US$)
Julcani, Gold 1 0
Julcani, Silver 239 221
Julcani, Lead 25 19
Julcani, Copper 3 3
Mallay, Silver 139 174
Mallay, Lead 78 122
Mallay, Zinc 111 117
Breapampa, Gold 33 108
Breapampa, Silver 5 8
Orcopampa, Gold 250 242
Orcopampa, Silver 8 7
Uchucchacua, Silver 812 670
Uchucchacua, Lead 43 44
Uchucchacua, Zinc 26 31
La Zanja, Gold 302 335
La Zanja, Silver 14 16
El Brocal, Gold 26 36
El Brocal, Silver 351 187
El Brocal, Lead 280 12
El Brocal, Zinc 615 1
El Brocal, Copper 485 1,632
Non Mining Units 347 9
Consolidated Selling expenses4,1903,992

JULCANI
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) 11 4,449 467 - 62 4,989 -7 4,817 422 - 60 5,291
Add:
Exploration Expenses (US$000) 5 2,175 228 - 30 2,439 -4 2,484 218 - 31 2,728
Commercial Deductions (US$000) 2 1,328 127 - 18 1,475 -2 1,616 139 - 23 1,776
Selling Expenses (US$000) 1 239 25 - 3 268 -0 221 19 - 3 242
Cost Applicable to Sales (US$000)198,191847-1149,171-139,137797-11610,037
Divide:
Volume Sold 15 618,774 473 - 19 Not Applicable -11 728,753 545 - 23 Not Applicable
CAS1,25613.241,791-6,011Not Applicable-12.541,463-5,127Not Applicable
MALLAY
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) - 2,071 1,166 1,652 - 4,889 - 2,105 1,477 1,421 - 5,003
Add:
Exploration Expenses (US$000) - 676 381 540 - 1,597 - 623 437 420 - 1,481
Commercial Deductions (US$000) - 880 506 858 - 2,244 - 971 662 924 - 2,557
Selling Expenses (US$000) - 139 78 111 - 328 - 174 122 117 - 412
Cost Applicable to Sales (US$000)-3,7662,1313,161-9,058-3,8732,6982,882-9,453
Divide:
Volume Sold - 261,818 1,457 1,636 - Not Applicable - 284,457 1,855 1,814 - Not Applicable
CAS-14.391,4631,932-Not Applicable-13.621,4551,589-Not Applicable
BREAPAMPA
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) 4,244 616 - - - 4,860 9,321 719 - - - 10,040
Add:
Exploration Expenses (US$000) 61 9 - - - 70 121 9 - - - 130
Commercial Deductions (US$000) 39 2 - - - 42 25 - - - - 25
Selling Expenses (US$000) 33 5 - - - 37 108 8 - - - 116
Cost Applicable to Sales (US$000)4,377632---5,0109,575736---10,311
Divide:
Volume Sold 7,395 83,003 - - - Not Applicable 22,413 114,816 - - - Not Applicable
CAS5927.62---Not Applicable4276.41---Not Applicable
ORCOPAMPA
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) 30,696 950 - - - 31,646 28,679 775 - - - 29,453
Add:
Exploration Expenses (US$000) 11,518 356 - - - 11,874 12,799 346 - - - 13,144
Commercial Deductions (US$000) 56 0 - - - 56 57 -0 - - - 57
Selling Expenses (US$000) 250 8 - - - 258 242 7 - - - 248
Cost Applicable to Sales (US$000)42,5201,314---43,83441,7761,127---42,903
Divide:
Volume Sold 60,910 145,389 - - - Not Applicable 50,232 90,175 - - - Not Applicable
CAS6989.04---Not Applicable83212.49---Not Applicable
UCHUCCHACUA
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) - 25,074 1,326 812 - 27,212 - 28,552 1,866 1,342 - 31,759
Add:
Exploration Expenses (US$000) - 5,968 316 193 - 6,476 - 5,598 366 263 - 6,227
Commercial Deductions (US$000) - 7,963 426 890 - 9,279 - 7,083 477 877 - 8,437
Selling Expenses (US$000) - 812 43 26 - 881 - 670 44 31 - 745
Cost Applicable to Sales (US$000)-39,8172,1111,921-43,849-41,9032,7522,513-47,168
Divide:
Volume Sold - 2,754,699 1,463 714 - Not Applicable - 2,453,939 1,528 1,138 - Not Applicable
CAS-14.451,4422,692-No Applicable-17.081,8022,208-No Applicable
LA ZANJA
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) 26,075 1,168 - - - 27,243 18,133 882 - - - 19,015
Add:
Exploration Expenses (US$000) 13 1 - - - 13 19 1 - - - 20
Commercial Deductions (US$000) 24 - - - - 24 43 - - - - 43
Selling Expenses (US$000) 302 14 - - - 315 335 16 - - - 351
Cost Applicable to Sales (US$000)26,4131,182---27,59618,530899---19,429
Divide:
Volume Sold 32,081 107,924 - - - Not Applicable 33,470 104,873 - - - Not Applicable
CAS82310.96---Not Applicable5548.58---Not Applicable
BROCAL
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) 435 5,946 4,752 10,427 8,218 29,778 539 2,814 178 16 24,598 28,146
Add:
Exploration Expenses (US$000) - - - - - - - - - - - -
Commercial Deductions (US$000) 537 3,585 2,193 5,805 11,287 23,408 445 2,668 153 94 20,407 23,769
Selling Expenses (US$000) 26 351 280 615 485 1,756 36 187 12 1 1,632 1,867
Cost Applicable to Sales (US$000)9989,8827,22516,84719,99054,9421,0205,66834311246,63853,782
Divide:
Volume Sold 832 826,034 5,976 11,185 3,611 Not Applicable 1,135 378,221 154 -118 8,979 Not Applicable
CAS1,20011.961,2091,5065,536Not Applicable89914.992,230-5,194Not Applicable
NON MINING COMPANIES
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) - - - - - 5,859 - - - - - 10,731
Add: - -
Selling Expenses (US$000) - - - - - 347 - - - - - 9
Total (US$000) - - - - - 6,206 - - - - - 10,740
BUENAVENTURA CONSOLIDATED
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) 61,461 40,276 7,711 12,890 8,280 136,477 56,665 40,662 3,943 2,779 24,658 139,438
Add:
Exploration Expenses (US$000) 11,597 9,185 925 733 30 22,470 12,935 9,061 1,020 684 31 23,730
Commercial Deductions (US$000) 658 13,758 3,252 7,553 11,306 36,527 569 12,339 1,430 1,895 20,430 36,663
Selling Expenses (US$000) 611 1,566 426 752 488 4,190 720 1,282 197 150 1,634 3,992
Cost Applicable to Sales (US$000)74,32764,78412,31321,92820,104199,66470,88963,3446,5915,50746,754203,823
Divide:
Volume Sold 101,232 4,797,641 9,368 13,535 3,630 Not Applicable 107,238 4,155,234 4,081 2,834 9,001 Not Applicable
CAS73413.501,3141,6205,538Not Applicable66115.241,6151,9435,194Not Applicable
COIMOLACHE
1Q 20151Q 2014
GOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTALGOLD (OZ)SILVER (OZ)LEAD (MT)ZINC (MT)COPPER (MT)TOTAL
Cost of Sales (without D&A) (US$000) 12,477 949 - - - 13,426 11,962 760 - - - 12,722
Add:
Exploration Expenses (US$000) 3,624 276 - - - 3,900 1,117 71 - - - 1,188
Commercial Deductions (US$000) 161 13 - - - 173 87 6 - - - 93
Selling Expenses (US$000) 226 17 - - - 243 200 13 - - - 213
Cost Applicable to Sales (US$000)16,4871,255---17,74213,366849---14,215
Divide:
Volume Sold 30,722 169,400 - - - Not Applicable 30,266 120,808 - - - Not Applicable
CAS5377.41---Not Applicable4427.03---Not Applicable

APPENDIX 5: ALL-IN SUSTAINING COST FOR 1Q15

Buenaventura1La ZanjaTantahuatayAttributable 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
1Q151Q15

1Q15

1Q15

Income Statement & Cash FlowUS$ 000'US$/Oz AuUS$ 000'US$/Oz AuUS$ 000'US$/Oz AuUS$ 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 Cost79,7431,16733,1371,18425,385826107,5031,126
*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, 2015 and December 31, 2014

2015

2014

AssetsUS$(000)US$(000)
Current assets
Cash and cash equivalents 134,940 78,512
Trade and other accounts receivable, net 262,703 281,604
Income tax credit 51,941 53,746
Prepaid expenses 15,801 16,954
Hedge derivative financial instruments 3,218 3,688
Embedded derivatives for concentrate sales, net - -
Inventory, net 145,579 150,284
Total current assets614,182584,788
Assets classified as held for sale 17,443 18,683
631,625603,471
Non-current assets
Trade and other accounts receivable, net 27,786 26,651
Long-term inventory 30,100 34,088
Investment in associates 2,258,603 2,224,381
Mining concessions, development costs, property, plant and equipment, net 1,729,685 1,715,452
Investment properties, net 11,065 11,200
Deferred income tax asset 42,079 47,675
Intangible assets, net 4,538 4,592
Other assets, net 4,764 4,764
Total non-current assets4,108,6204,068,803
Total assets4,740,2454,672,274
Liabilities and shareholders’ equity
Current liabilities
Overdrafts and bank loans 88,081 40,000
Trade and other accounts payable 225,204 254,000
Provisions 66,485 67,895
Current income tax payable 5,917 3,556
Hedge derivative financial instruments - -
Embedded derivatives for concentrate sales, net 2,416 9,072
Financial obligations 77,300 69,950
Total current liabilities465,403444,473
Liabilities directly associated with assets classified as held for sale 27,229 28,890
492,632473,363
Non-current liabilities
Financial liability at fair value through profit or loss 23,026 23,026
Trade and other accounts payable 15,289 15,240
Provisions 108,574 63,571
Financial obligations 310,987 313,355
Deferred income tax liability 20,942 21,594
Total non-current liabilities478,818436,786
Total liabilities971,450910,149
Shareholders’ equity
Issued capital 750,497 750,497
Investment shares 1,396 1,396
Additional paid-in capital 219,055 219,055
Legal reserve 162,710 162,710
Other reserves 269 269
Retained earnings 2,345,742 2,328,423
Other equity reserves 1,590 1,755
3,481,2593,464,105
Non-controlling interest 287,536 298,020
Total shareholders’ equity3,768,7953,762,125
Total liabilities and shareholders’ equity4,740,2454,672,274
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Income
For the three-month periods ended March 31, 2015 and 2014

For the three-month periods
ended March 31,

2015

2014

US$(000)US$(000)
Continued operations
Operating income
Net sales 242,932 272,877
Royalty income 9,090 8,025
Total operating income 252,022 280,902
Operating costs
Cost of sales, without considering depreciation and amortization (136,477) (139,438)
Exploration in operating units (22,470) (23,730)
Depreciation and amortization (54,619) (45,398)
Mining royalties (8,525) (7,353)
Total operating costs (222,091) (215,919)
Gross profit 29,931 64,983
Operating expenses, net
Administrative expenses (21,516) (27,651)
Exploration in non-operating areas (10,697) (10,374)
Selling expenses (4,190) (3,992)
Other, net 530 (8,982)
Total operating expenses, net (35,873) (50,999)
Operating profit (loss) (5,942) 13,984
Other income (expenses), net
Net share in the results of associates under equity method 36,274 (4,480)
Financial income 644 1,806
Financial expenses (5,879) (2,901)
Net loss from currency exchange difference (2,318) (522)
Total other income (expenses), net 28,721 (6,097)
Profit before income taxes and non-controlling interest 22,779 7,887
Current income tax expense (5,377) (7,805)
Deferred income tax income (expense) (5,050) 483
Profit from continued operations 12,352 565
Discontinued operations
Loss from discontinued operations (2,104) (10,937)
Net profit 10,248 (10,372)
Attributable to:
Owners of the parent 17,319 (16,112)
Non-controlling interest (7,071) 5,740
10,248 (10,372)
Basic and diluted earnings per share attributable
to the owners of the parent, stated in U.S. dollars 0.07 (0.06)
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 Statement of Cash Flows
For the three-month periods ended March 31, 2015 and 2014

For the three-month periods
ended March 31,

2015

2014

US$(000)US$(000)
Operating activities
Proceeds from sales 231,779 266,854
Value Added Tax (VAT) recovered 33,367 17,704
Royalties received 13,444 6,995
Dividends received 2,057 2,377
Interest received 942 2,125
Payments to suppliers and third-parties (176,835) (199,734)
Payments to employees (45,328) (55,620)
Payment of income tax (4,141) (5,411)
Payment of royalties (6,198) (7,453)
Payment of interest (5,470) (1,948)
Net cash and cash equivalents provided by operating activities 43,617 25,889
Investing activities
Proceeds from settlement of financial assets at fair value through profit or loss - -
Proceeds from collections of loans to associates - 9,032
Proceeds from sales of mining concessions, property, plant and equipment 134 23
Proceeds from settlement of investment in shares - -
Acquisitions of mining concessions, development costs, property, plant and equipment (37,118) (85,278)
Acquisitions of investment properties - -
Payment for purchase of investments - -
Associates loans granted - -
Contributions and investments in associates - (1,003)
Net cash and cash equivalents used in investing activities (36,984) (77,226)
Financing activities
Increase of bank loans 88,081 -
Repayment of bank loans (40,000) -
Increase of financial obligations 10,000 74,659
Payment of financial obligations (5,018) (4,540)
Dividends paid - -
Dividends paid to non-controlling interest (3,268) (1,960)
Purchase of associates' shares - -
Net cash and cash equivalents provided by (used in) financing activities 49,795 68,159
Net increase (decrease) in cash and cash equivalents during the period 56,428 16,822
Cash and cash equivalents at the beginning of the period 78,512 61,898
Cash and cash equivalents at period-end 134,940 78,720

For the three-month periods
ended March 31,

2015

2014

US$(000)US$(000)

Reconciliation of net profit (loss) to cash and cash equivalents provided by
operating activities

Net profit (loss) attributable to owners of the parent 17,319 (16,112)
Plus (less):
Depreciation and amortization 54,619 45,398
Net profit (loss) attributable to non-controlling interest (7,071) 5,740
Provision for employee bonus 8,175 11,897
Deferred income tax expense (income) 5,050 (483)
Provision for estimated fair value of embedded derivatives related to concentrate
sales and adjustments on open liquidations (6,656) 9,449
Reversal of provision for impairment of inventories (1,252) (3,042)
Accretion expense of provision for closure of mining units and exploration projects 275 1,443
Provision for stock appreciation rights 115 1,931
Provision for impairment of long-lived assets - 794
Net loss from currency exchange difference 2,318 522
Net share in the results of associates under equity method (36,274) 4,480
Loss (gain) on sales of mining concessions, property, plant and equipment 1,314 (23)
Others provisions (4,732) 3,081
Net changes in operating assets and liabilities
Decrease (increase) in operating assets
Trade and other accounts receivable, net 20,694 1,464
Income tax credit 1,699 (5,594)
Inventory, net 27,801 20,189
Prepaid expenses 1,160 833
Increase (decrease) in operating liabilities
Trade and other accounts payable (34,645) (42,740)
Provisions (8,653) (13,592)
Income tax payable 2,361 254
Net cash and cash equivalents provided by operating activities 43,617 25,889

Contacts:

Contacts in Lima:
Carlos Galvez, Chief Financial Officer
Tel: (511) 419-2540
or
Daniel Dominguez, Director of Treasury and Investor Relations
Tel: (511) 419-2591
Email: daniel.dominguez@buenaventura.pe
or
Contacts in New York:
Maria Barona / Rafael Borja
i-advize Corporate Communications
212-406-3691/3693
buenaventura@i-advize.com

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