Escolar Documentos
Profissional Documentos
Cultura Documentos
2014 Results
Lima, Peru, April 30, 2014 Compaia de Minas Buenaventura S.A.A.
(Buenaventura or the Company) (NYSE: BVN; Lima Stock Exchange: BUE.LM),
Perus largest publicly-traded precious metals mining company, announced today
results for the first quarter 2014 (1Q14) period. 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$).
Comments from the Chief Executive Officer:
Mr. Roque Benavides, Buenaventuras Chief Executive Officer, stated:
During the first quarter, Buenaventuras operating income was US$3.5 million,
94% lower than in 1Q13. Net income was negative US$16.1 million and EBITDA
from Direct Operations was US$53.3 million, 43% lower than in 1Q13.
EBITDA including Affiliates was US$104.0 million, 61% lower than the figure
reported in 1Q13.
Financial Highlights (in millions of US$, except EPS figures):
1Q14
Var%
282.0
354.7
-20%
3.5
59.4
-94%
53.3
93.8
-43%
EBITDA Including
Affiliates
104.0
267.9
-61%
Net Income
-16.1
102.7
EPS
-0.06
0.40
Total Revenues
Operating Income
EBITDA Direct
Operations
Contacts in Lima:
Carlos Galvez, Chief Financial Officer
Tel: (511) 419-2540
1Q13
Operating Revenues
During 1Q14, net sales were US$274.0 million, a 20% decrease compared to the US$340.9 million
reported in 1Q13. This was explained by lower metal prices as well as a reduction in gold, lead and
zinc volumes sold.
Royalty income decreased 42%, to US$8.0 million in 1Q14 compared to the US$13.8 million reported
in 1Q13. This was due to lower revenues at Yanacocha (12% lower QoQ).
Operating Highlights
1Q14
1Q13
Var%
Net Sales
(in millions of US$)
274.0
340.9
-20%
1,312
1,606
-18%
1,302
1,619
-20%
20.24
29.92
-32%
2,110
2,257
-7%
Average Realized
Zinc Price (US$/MT)*
2,046
1,983
3%
7,063
7,896
-11%
1Q14
1Q13
Var%
108,083
124,626
-13%
210,136
259,095
-19%
Volume Sold
Silver Oz
4,253,317 3,240,735
31%
Lead MT
4,353
6,683
-35%
Zinc MT
3,312
10,204
-68%
Copper MT
9,271
5,108
81%
Equity Production
1Q14
1Q13
Var%
100,870
119,201
-15%
191,448
243,811
-21%
Silver Oz
4,145,674 4,724,682
-12%
Lead TM
4,652
7,052
-34%
Zinc TM
4,221
9,614
-56%
17,263
13,359
29%
Orcopampas (100% owned by Buenaventura) total gold production in 1Q14 was 44,929
ounces (including 999 ounces of gold from the old tailings treatment), 28% lower than the 62,480
(including 4,112 ounces of gold from the old tailings treatment) ounces reported in 1Q13.
Production from the Chipmo mine during 1Q14 was 43,930 ounces, 25% lower compared to the
58,369 ounces reported in 1Q13, as a result of lower ore grade and tonnage treated (see
Appendix 2). Cost Applicable to Sales (CAS) in 1Q14 was US$860/oz of gold, 19% higher
compared to 1Q13 (US$725/oz.). The higher cost was mainly explained by the lower gold
production.
At Uchucchacua (100% owned by Buenaventura), total silver production in 1Q14 was 2.4
million ounces, 19% lower than the 2.9 million ounces reported in 1Q13, mainly due to the 7-day
strike and community stoppage and the decrease in recovery rate, despite the higher ore grade.
Zinc production in 1Q14 was 1,470 MT, 26% lower than the figure reported in 1Q13 (1,998 MT),
while lead production decreased 23% (1,688 MT in 1Q14 vs. 2,205 MT in 1Q13). Cost Applicable
to Sales (CAS) in 1Q14 was US$17.51/oz of silver, in-line with the figure reported in 1Q13
(US$17.46/oz.).
At Mallay (100% owned by Buenaventura), total production in 1Q14 was 297,180 ounces of
silver, 4% higher than in 1Q13 (286,240 oz) due to higher ore grade and recovery rate despite
the decrease in ore treated. Cost Applicable to Sales (CAS) in 1Q14 was US$14.79/oz of silver, a
decrease of 34% compared to US$22.52/oz in 1Q13 due to a more focalized exploration program
and the higher production.
At Julcani (100% owned by Buenaventura), total production in 1Q14 was 763,437 ounces of
silver, 25% higher compared to 1Q13 (612,034 ounces), due to higher ore treated explained by
the increase in plant capacity (from 400 TPD to 500 TPD). Cost Applicable to Sales (CAS) in 1Q14
was US$13.35/oz of silver, 20% lower than 1Q13 (US$16.77/oz.), mainly explained by a reduction
in commercial deductions, more focalized exploration activities and higher production.
Direct Operation production includes 100% of Buenaventuras operating units, 53.06% of La Zanja, 54.07% of El Brocal
and 40.10% of Tantahuatay
Operating Income
Operating income in 1Q14 was US$3.5 million, 94% lower compared to the US$59.4 million
reported in 1Q13 mainly due to lower revenues.
1Q13
Cerro Verde
15.7
27.2
4.8
8.1
Yanacocha
-24.5
51.0
-0.1
-2.1
-0.4
Total
-4.5
84.2
YANACOCHA
At Yanacocha (43.65% owned by Buenaventura), 1Q14 gold production was 207,511 ounces of
gold, 27% lower than 1Q13 production (285,475 oz).
Net income was negative US$56.1 million (compared to US$116.8 million in 1Q13) explained by a
US$55.4 million write-down of leach inventory value from La Quinua, Yanacocha and Maqui Maqui
pads. During 1Q14, EBITDA totaled US$5.9 million, a 98% decrease compared to 1Q13
(US$260.9 million).
Capital expenditures at Yanacocha were US$21.6 million in 1Q14 (US$97.7 million in 1Q13).
CERRO VERDE
At Cerro Verde (19.58% owned by Buenaventura), 1Q14 copper production was 60,955 MT
(11,935 MT attributable to Buenaventura), a 10% increase compared to 1Q13 (55,214 MT and
10,811 MT attributable to Buenaventura).
During 1Q14, Cerro Verde reported net income of US$98.0 million, a 29% lower compared to
US$138.8 million in 1Q13. This was mainly due to 12% lower sales.
Capital expenditures at Cerro Verde in 1Q14 totaled US$439.4 million and US$170.0 million in
2013.
COIMOLACHE (Tantahuatay operation)
At Coimolache (40.10% owned by Buenaventura), attributable contribution was US$4.8 million
(US$8.1 million in 1Q13).
Net Income
Buenaventuras 1Q14 net income was a negative US$16.1 million (negative US$0.06 per share),
compared to US$102.7 million (US$0.40 per share) reported in 1Q13.
Board Resolutions
At the Board of Directors meeting held April 30, 2014, the following resolutions were passed:
1. ApprovalofnewCodeofEthics
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
Companys, Yanacochas and Cerro Verdes 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 Companys view with respect to the Companys,
Yanacochas and Cerro Verdes 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 March 31, 2014)
BVN
Equity %
Operating
Mines / Business
100.00
100.00
Engineering Consultant
100.00
100.00
Trapiche project
53.06
La Zanja
54.07
49.00
Chucapaca project
40.10
Tantahuatay
43.65
Yanacocha
19.58
Cerro Verde
(*)Consolidates
(**) Equity Accounting
APPENDIX 2
GOLD PRODUCTION
1Q14
44,930
1Q13
62,480
La Zanja
1Q13
31,206
Ounces Produced
1Q14
35,937
Ounces Produced
Breapampa
1Q14
1Q13
20,927
20,484
%
15%
1Q14
32,633
Tantahuatay
1Q13
%
34,307
-5%
%
2%
SILVER PRODUCTION
80.6%
-5%
-19%
70.8%
405,193
%
N.A.
N.A.
N.A.
N.A.
ZINC PRODUCTION
%
N.A.
N.A.
N.A.
N.A.
APPENDIX 3
1Q13
Var
Net Income
-10,372
110,933
-109%
Add / Substract:
63,706
-17,149
-471%
7,322
32,511
-77%
4,480
-84,168
-105%
Interest income
-1,806
-956
89%
Interest expense
3,391
1,203
182%
496
-112
-543%
1,925
-8,866
-122%
46,138
39,176
18%
794
966
4,063
-76%
53,334
93,784
-43%
2,581
113,892
-98%
37,009
44,629
-17%
11,033
15,554
-29%
103,958
267,860
-61%
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)
Buenaventuras equity share of EBITDA (Yanacocha) (2) Buenaventuras equity share of EBITDA (Cerro
Verde), plus (3) Buenaventuras 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 Buenaventuras, 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
2014
US$(000)
2013
US$(000)
78,720
251,457
58,327
13,764
3,731
149,424
555,423
61,898
260,434
37,370
14,597
Non-current assets
Trade and other accounts receivable, net
Long-term inventory
Investment in associates
Mining concessions, development costs and property, plant and equipment, net
Deferred income tax asset, net
Other assets
Total non-current assets
23,807
39,553
2,344,449
1,546,315
72,758
3,310
4,030,192
20,607
23,366
2,350,303
1,515,460
83,525
7,132
4,000,393
Total assets
4,585,615
4,552,268
251,937
78,282
2,394
7,592
23,549
363,754
301,811
69,800
2,140
1,093
11,370
386,214
Non-current liabilities
Trade and other accounts payable
Provisions
Financial obligations
Deferred income tax liability, net
Total non-current liabilities
15,035
109,272
280,967
4,113
409,387
12,229
106,376
223,027
341,632
Total liabilities
773,141
727,846
Non-controlling interest
Total shareholders equity
750,497
1,396
219,055
162,688
269
2,395,929
104
3,529,938
282,536
3,812,474
750,497
1,396
219,055
162,663
269
2,413,131
104
3,547,115
277,307
3,824,422
4,585,615
4,552,268
Shareholders equity
Issued capital, net of treasury shares for US$(000)62,665
Investment shares, net of treasury shares for US$(000)765
Additional paid-in capital
Legal reserve
Other reserves
Retained earnings
Other equity reserves
1,857
175,719
551,875
273,968
8,025
281,993
340,873
13,802
354,675
(142,959)
(31,728)
(46,138)
(7,378)
(228,203)
(158,135)
(46,369)
(39,176)
(9,666)
(253,346)
53,790
101,329
(28,756)
(10,374)
(4,170)
(7,641)
(794)
1,456
(50,279)
(15,959)
(21,760)
(4,510)
(1,053)
1,364
(41,918)
3,511
59,411
(4,480)
1,806
(3,391)
(496)
(6,561)
84,168
956
(1,203)
112
84,033
(3,050)
143,444
Income taxes
(7,322)
(32,511)
(10,372)
110,933
(16,112)
5,740
(10,372)
102,677
8,256
110,933
(0.06)
0.40
Net profit
Attributable to:
Owners of the parent
Non-controlling interest
254,186,867
254,202,571
266,854
17,704
6,995
2,377
2,125
(199,734)
(55,620)
(5,411)
(7,453)
(1,948)
404,462
13,800
12,202
976
(258,128)
(70,083)
(24,078)
(8,786)
(222)
25,889
70,143
9,032
23
(85,278)
-
(86,041)
(1,003)
(772)
(3,685)
(77,226)
(90,498)
Financing activities
Increase in financial obligations
Bank loans received
Payment of financial obligations
Dividends paid
Dividends paid to non-controlling interest
Purchase of treasury shares
Purchase of associates' shares
(4,540)
(56)
(1,960)
-
(3,440)
Net cash and cash equivalents provided by (used in) financing activities
68,159
Net increase (decrease) in cash and cash equivalents during the period
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at period-end
74,659
-
16,822
61,898
78,720
(3,496)
(23,851)
186,712
162,861
APPENDIX 5
CAS1Q14VS1Q13
JULCANI
1Q2014
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
1
1
0
0
3
3
PLATA(OZ)
5,577
2,505
1,647
223
9,952
745,300
PLOMO(TM)
432
194
130
17
773
556
ZINC(TM)
1Q2013
COBRE(TM)
57
26
18
2
102
22
TOTAL
ORO(OZ)
6,068 65
2,725 23
1,795 24
242 2
10,830 114
NotApplicable
126
NoApplicable
COBRE(TM)
26
9
7
1
44
11
TOTAL
3,750
1,329
1,275
139
6,493
NoAplicable
NoAplicable
MALLAY
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
PLATA(OZ)
2,461
640
996
178
4,275
289,037
1Q2014
PLOMO(TM) ZINC(TM)
1,659 1,569
431 408
654 928
120 114
2,864 3,019
1,875 1,825
COBRE(TM)
TOTAL
5,689
1,479
2,577
412
10,158
NotApplicable
ORO(OZ)
PLATA(OZ)
3,130
1,072
860
184
5,247
232,943
1Q2013
PLOMO(TM) ZINC(TM)
1,694 1,869
580 640
442 726
100 110
2,817 3,344
1,600 1,991
COBRE(TM)
TOTAL
6,694
2,292
2,028
393
11,408
NotApplicable
BREAPAMPA
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
PLATA(OZ)
10,078 805
121 10
17
108 9
10,323 824
22,412 114,816
1Q2014
PLOMO(TM) ZINC(TM)
COBRE(TM)
1Q2013
TOTAL
ORO(OZ)
PLATA(OZ) PLOMO(TM) ZINC(TM)
10,883 17,850 876
130 1,859 91
17 15
116
NotApplicable
22,057 57,777
COBRE(TM)
TOTAL
18,727
1,950
15
20,691
NotApplicable
ORCOPAMPA
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
PLATA(OZ)
30,296 848
12,772 357
38
241 7
43,346 1,212
50,386 90,375
1Q2014
PLOMO(TM) ZINC(TM)
COBRE(TM)
TOTAL
31,143
13,129
38
248
44,558
NotApplicable
ORO(OZ)
32,707
13,866
42
46,615
64,258
1Q2013
PLATA(OZ) PLOMO(TM) ZINC(TM)
1,245
528
1,773
130,556
COBRE(TM)
TOTAL
33,953
14,394
42
48,388
NotApplicable
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
PLATA(OZ)
29,837
5,598
7,093
671
43,199
2,467,052
1Q2014
PLOMO(TM) ZINC(TM)
1,911 1,403
358 263
466 875
43 32
2,778 2,573
1,520 1,148
COBRE(TM)
TOTAL
33,150
6,220
8,434
745
48,550
NotApplicable
ORO(OZ)
PLATA(OZ)
20,791
4,023
7,588
821
33,223
1,903,220
1Q2013
PLOMO(TM) ZINC(TM)
1,144 1,304
221 252
387 1,686
45 51
1,797 3,293
1,329 1,708
COBRE(TM)
TOTAL
23,238
4,497
9,661
917
38,314
NotApplicable
OTHERSMALLUNITS
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
384
5,424
76
90
5,974
702
PLATA(OZ)
947
2,006
87
44
3,084
41,783
1Q2014
PLOMO(TM) ZINC(TM)
525 944
234 362
53 167
21 31
833 1,504
220 338
COBRE(TM)
TOTAL
2,799
8,026
384
187
11,395
NotApplicable
NoApplicable
ORO(OZ)
2,086
14,648
37
25
16,796
6,691
PLATA(OZ)
2,036
2,685
487
150
5,358
118,259
1Q2013
PLOMO(TM) ZINC(TM)
1,161 1,522
553 724
260 382
83 108
2,058 2,735
769 1,128
COBRE(TM)
TOTAL
6,806
18,031
1,168
383
26,948
NotApplicable
NoApplicable
LAZANJA
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
17,535
19
25
335
17,914
33,479
PLATA(OZ)
857
1
16
874
104,873
1Q2014
PLOMO(TM) ZINC(TM)
COBRE(TM)
TOTAL
18,392
20
25
351
18,788
NotApplicable
ORO(OZ)
20,467
837
20
93
21,416
30,253
PLATA(OZ)
953
39
4
996
75,159
1Q2013
PLOMO(TM) ZINC(TM)
COBRE(TM)
TOTAL
21,419
876
20
97
22,412
NotApplicable
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
537
438
36
1,011
1,101
PLATA(OZ)
3,046
2,871
202
6,118
400,081
1Q2014
PLOMO(TM) ZINC(TM)
144
10
154
182
COBRE(TM)
24,419
20,526
1,620
46,564
9,249
TOTAL
28,146
23,834
1,867
53,847
NotApplicable
ORO(OZ)
941
637
76
1,655
1,241
PLATA(OZ)
5,232
2,208
423
7,864
368,146
1Q2013
PLOMO(TM) ZINC(TM)
3,017 5,338
869 1,969
244 432
4,130 7,739
2,693 5,377
COBRE(TM)
17,374
12,885
1,405
31,664
5,097
TOTAL
31,903
18,568
2,580
53,051
NotApplicable
918 15.29 844 5,034 NoApplicable 1,334 21.36 1,534 1,439 6,212 NoApplicable
NONMININGCOMPANIES
GOLD(OZ)
SILVER(OZ)
1Q2014
LEAD(MT) ZINC(MT) COPPER(MT)
CostofSales(withoutD&A)(US$000)
TOTAL
6,688
GOLD(OZ)
SILVER(OZ)
1Q2013
LEAD(MT)
ZINC(MT)
COPPER(MT)
TOTAL
11,645
1Q2013
PLOMO(TM) ZINC(TM)
7,240 10,033
1,434 1,616
2,035 4,762
480 701
11,189 17,111
6,683 10,204
COBRE(TM)
17,400
9
12,892
1,406
31,708
5,108
TOTAL
158,135
43,369
32,776
4,510
227,706
NotApplicable
BUENAVENTURACONSOLIDATED
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
58,832
18,335
593
810
78,570
108,083
PLATA(OZ)
44,378
11,116
12,694
1,350
69,538
4,253,317
1Q2014
PLOMO(TM) ZINC(TM)
4,671 3,916
1,218 1,033
1,303 1,970
211 176
7,402 7,095
4,353 3,312
COBRE(TM)
24,476
26
20,543
1,622
46,667
9,271
TOTAL
142,959
31,728
37,103
4,170
215,960
NotApplicable
ORO(OZ)
74,117
31,232
776
196
106,321
124,626
PLATA(OZ)
37,700
9,656
12,311
1,710
61,377
3,240,735
NoApplicable NoApplicable
COIMOLACHE
CostofSales(withoutD&A)(US$000)
ExplorationExpenses(US$000)
CommercialDeductions(US$000)
SellingExpenses(US$000)
Total(US$000)
VolumeSold
CAS
ORO(OZ)
11,981
1,119
200
13,300
30,460
PLATA(OZ)
741
69
12
823
120,800
1Q2014
PLOMO(TM) ZINC(TM)
COBRE(TM)
TOTAL
12,722
1,188
213
14,123
NotApplicable
ORO(OZ)
14,950
1,562
165
16,677
32,950
PLATA(OZ)
1,634
171
18
1,823
192,235
1Q2013
PLOMO(TM) ZINC(TM)
COBRE(TM)
TOTAL
16,584
1,733
183
18,500
NotApplicable