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News Article | May 23, 2017
Site: www.businesswire.com

LIMA, Peru--(BUSINESS WIRE)--Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE:BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced the its Annual Report on Form 20-F for the fiscal year ended December 31, 2016 was filed with the U.S. Securities and Exchange Commission (“the SEC”) on April 28, 2017 and is available on Buenaventura’s web site: www.buenaventura.pe/ir or at http://www.sec.gov . Investors can receive a printed copy of this report, including the Company's complete audited financial statements, free of charge upon request by contacting Rodrigo Echecopar at rodrigo.echecopar@buenaventura.pe or by calling The Bank of New York Mellon at 1-212-815-2838. 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*, Tambomayo*, El Brocal, La Zanja and Coimolache) and is developing the San Gabriel Project. The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer. For a printed version of the Company’s 2016 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company’s web site.


News Article | April 27, 2017
Site: www.businesswire.com

LIMA, Peru--(BUSINESS WIRE)--Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced results for the first quarter (1Q17) period ended March 31, 2017. 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$). Financial Highlights (in millions of US$, except EPS figures): During 1Q17, net sales were US$272.8 million, a 24% increase compared to the US$220.6 million reported in 1Q16. This result was primarily due to an increase in all metal prices as well as higher volume sales of silver, zinc and lead. Royalty income decreased 18% from US$6.7 million in 1Q16 to US$5.5 million in 1Q17 due to lower revenues at Yanacocha (17% QoQ). In 1Q17, Buenaventura’s gold equity production from direct operations was 62,828; a 4% decrease as compared to 1Q16 (65,376 gold ounces). In 1Q17 Gold production including associated companies was 135,428 ounces; a 14% decrease as compared to the same period 2015. This decline is due to a decrease in production at Yanacocha. Zinc and Lead equity production were higher during 1Q17 compared to 1Q16 mainly as a result increased production at Uchucchacua and El Brocal. Gold production at Orcopampa decreased 4% in 1Q17 year on year, primarily due to lower ore grades (see Appendix 2). Cost Applicable to Sales (CAS) in 1Q17 (777 US$/Oz) increased 13% compared to 1Q16 (688 US$/Oz), mainly due to higher contractor expenses (a non-recurrent closing bonus), an increase in meters drifted and lower ounces sold (4% QoQ). Silver production in 1Q17 was in line with 1Q16. Cost Applicable to Sales (CAS) in 1Q17 (10.92 US$/Oz) increased 5% compared to 1Q16 (10.35 US$/Oz), mainly due to an increase in labor expenses and higher contractor expenses (a non-recurrent closing bonus). Silver production in 1Q17 decreased 22% year on year, primarily due to lower ore grades (see Appendix 2). Cost Applicable to Sales (CAS) in 1Q17 increased by 10% year on year, primarily due to a decrease in ounces sold (9% QoQ). Silver production in 1Q17 was 22% lower compared to 1Q16; primarily due to a decrease in ore treated (15% QoQ) and lower ore grades (10% QoQ). Cost Applicable to Sales (CAS) in 1Q17 (13.36 US$/Oz) was 25% higher than 1Q16 (10.66 US$/Oz), primarily explained by lower production. Management changed the mining method at Julcani after rock fall resulted in a fatal accident in January 2017, temporarily impacting productivity. This effect has been already surpassed. Gold production in 1Q17 decreased by 6% year on year, in line with the mine production plan. Cost Applicable to Sales (CAS) in 1Q17 (723 US$/Oz) increased 34% compared to 1Q16 (538 US$/Oz), primarily due to i) increased reagent consumption (associated with an increase in acid water treated), ii) decrease in ounces sold (3% QoQ) and iii) lower ore grades. Gold production in 1Q17 decreased 10% year on year, in line with the mine production plan. Cost Applicable to Sales (CAS) in 1Q17 (508 US$/Oz) increased 19% compared to 1Q16 (427 US$/Oz) mainly due to a decrease in ounces sold and higher exploration expenses. 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. 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). 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). During 1Q17, Buenaventura’s share in associated companies was US$44.9 million, compared to US$28.4 million reported in 1Q16, comprised of: 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. 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. Copper production guidance at Cerro Verde for 2017 is 500k MT – 550k MT. At Coimolache (40.10% owned by Buenaventura), 1Q17 attributable contribution to net income was US$4.3 million (US$5.7 million in 1Q16). 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. 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. 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.


Cooper D.J.,Colorado State University | Wolf E.C.,Colorado State University | Wolf E.C.,University of California at Davis | Colson C.,Tetra Tech Inc. | And 3 more authors.
Arctic, Antarctic, and Alpine Research | Year: 2010

An ecological analysis of wetlands in the high mountain jalca above 3700 m elevation in the Andes near Cajamarca, Peru, indicated that most wetlands are groundwater-supported peat-accumulating fens. The floristic composition of fen communities was controlled largely by groundwater chemistry, which was highly variable and influenced by watershed bedrock composition. Watersheds with highly mineralized rock discharged water as acidic as pH 3.7, which was high in CaSO4, while watersheds with limestone, marble, and skarn produced groundwater as basic as pH 8.2 and high in CaHCO3. Of the 125 plots sampled in 36 wetland complexes, >50 of plots had at least 3 m of peat, and 21 plots had peat thicker than 7 m. Most soil horizons analyzed had 18 to 35 organic carbon, indicating high C storage. A total of 102 vascular plants, 69 bryophytes, and 10 lichens were identified. Study plots were classified using TWINSPAN into 20 plant communities, which were grouped into four broad categories by dominant life form: (1) cushion plant communities, (2) sedge- and rush-dominated communities, (3) bryophyte and lichen communities, and (4) tussock grass communities. Direct gradient analysis using canonical correspondence analysis indicated that Axis 1 was largely a water chemistry gradient, while Axis 2 was a complex hydrology and peat thickness gradient. Bryophytes and lichens were more strongly separated in the ordination space than vascular plants and were better indicators of specific environmental characteristics. © 2010 Regents of the University of Colorado.


Garcia S.,Minera Yanacocha SRL | Ramon C.,Minera Yanacocha SRL | Esplin A.,Minera Yanacocha SRL | Gebhardt J.E.,SALt Inc | And 3 more authors.
Minerals and Metallurgical Processing | Year: 2010

The Minera Yanacocha operation presents various operating challenges, due to the complex structure of several heaps interconnected with ponds and gold recovery plants. A comprehensive process model has been developed in order to better understand the effects of certain operating parameters on issues such as water usage and inventory. An integral component of the water/mass balance of the process is a model of each heap that describes the flow and chemical behavior based on the individual characteristics of the heap. A computational fluid dynamic (CFD) software framework is used to model the individual heaps. The structure, calibration and validation of the model are described. Several examples demonstrating application of the process heap model are presented for the La Quinua heap. The effects of loss of solution flow to the heap (i.e., pump failure), increased cyanide levels in applied solutions and higher copper head grades on the process operation and balance are investigated with model simulations and compared to the baseline operating conditions. An example of estimating gold production and inventory based on projected heap loading plans is provided. Copyright 2010, Society for Mining, Metallurgy, and Exploration, Inc.


News Article | March 1, 2017
Site: www.businesswire.com

LIMA, Peru--(BUSINESS WIRE)--Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced results for the fourth quarter (4Q16) and twelve-month (FY16) periods ended December 31, 2016. 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$). During 4Q16, net sales were US$281.3 million, a 23% increase compared to the US$227.9 million reported in 4Q15. This result was mainly explained by an increase in all metal prices as well as higher volume sales of copper, zinc and lead. Royalty income decreased 19% from US$7.2 million in 4Q15 to US$5.8 million in 4Q16 as a result of lower revenues at Yanacocha (21% QoQ). Net sales increased 16%, from US$897.1 million in FY15 to US$1,044.5 million in FY16. Royalty income for FY16 was US$24.3 million, 25% lower than US$32.4 million during FY15. In 4Q16, Buenaventura’s gold equity production from direct operations was 68,268, 4% lower compared to the figure reported in 4Q15 (70,910 gold ounces). Gold production including associated companies in 4Q16 was 159,212 ounces, 13% lower than the amount reported in the same period 2015. This decline is explained by a decrease in production from Yanacocha. Zinc and Copper equity production were higher during 4Q16 compared to 4Q15 mainly as a result of higher production coming from El Brocal. Buenaventura´s gold equity production from direct operations in FY16 was in line compared to the figure reported in FY15. Silver equity production from direct operations in FY16 was 11% higher compared to FY15, this was mainly due to higher production coming from the Uchuchacua (16% YoY) and Mallay (27% YoY) mines. Buenaventura´s Zinc equity production increased 18% in FY16 compared to FY15. This increment is explained by higher production from the Uchuchacua mine (27% YoY), Mallay mine (14% YoY) and El Brocal (8% YoY). Buenaventura´s copper production increased 65% in FY15 compared to FY15 due to higher production from El Brocal (53% YoY). Gold production at Orcopampa decreased 5% in 4Q16 (compared to 4Q15) mainly due to lower ore treated and lower ore grade (see Appendix 2). Cost Applicable to Sales (CAS) in 4Q16 (772 US$/Oz) increased 13% compared to 4Q15 (682 US$/Oz), mainly due to lower volume sold (12% QoQ) and higher exploration efforts from the Pucara, Pucarina and Lucia areas. Silver production in 4Q16 was in line with the figure reported in 4Q15. In FY16, silver production increased 16% compared to FY15, mainly due to more ore treated (16% YoY) (see Appendix 2). Cost Applicable to Sales (CAS) in 4Q16 decreased 10% compared to 4Q15, an improvement primarily explained by i) increasing efficiencies as a result of massive mining using the bench & fill method and ii) lower commercial deductions. Silver production in 4Q16 increased 5% compared to 4Q15, mainly due to more ore treated). In FY16, silver production increased 16% compared to FY15, explained by more ore treated (29% YoY) (see Appendix 2). Cost Applicable to Sales (CAS) in 4Q16 was in line with the figure reported in 4Q15. Silver production in 4Q16 was 9% lower compared to 4Q15, mainly due to lower ore grades. FY16 production was 3,264,420 in line with FY15. Cost Applicable to Sales (CAS) in 4Q16 was 10% higher than 4Q15, primarily explained by lower volume sold. Gold production in 4Q16 decreased 13% compared to 4Q15. CAS in 4Q16 increased 41% compared to 3Q15, primarily due to i) less volume sold ii) more hauling expenses. Gold production in 4Q16 decreased 16% compared to the figure reported in 4Q15. CAS in 4Q16 increased 38% compared to 4Q15 mainly due to lower volume sold and higher exploration expenses. During 4Q16, copper production increased 51% compared to 4Q15 and 53% in FY16 compared to FY15 due to a higher ore volume treated and ore grade. In 4Q16 zinc production increased 25% compared to 4Q15 and 8% in FY16 compared to FY15 as a result of higher ore treated and ore grade. In 4Q16, zinc Cost Applicable to sales (CAS) increased 28% compared to 4Q15 mainly due to lower silver by-product contribution and a higher stripping ratio (9.4 in 4Q16 compared to 4.5 in 4Q16). Copper CAS in 4Q16 decreased 20% compared to 4Q15 mainly explained by more volume sold due to better ore grades and better commercial terms. Zinc production guidance for 2017 is 70k – 80k MT, while copper production guidance for 2017 is 55k – 65k MT. General and administrative expenses in 4Q16 were US$23.6 million, 8% lower compared to the US$25.6 million in 4Q15 mainly due to lower insurance expenses (65% QoQ). For FY16, the expense was US$81.7 million (US$84.4 million in FY15). Exploration costs in non-operating areas during 4Q16 were US$11.8 million compared with US$5.0 million in 4Q15. During the period, Buenaventura’s main exploration efforts were focused on the San Gabriel project (US$5.15 million), the Tambomayo project (US$2.30 million), and Marcapunta Norte (US$0.41 million). For FY16, the expense was US$26.6 million (US$30.6 million in FY15). During 4Q16, Buenaventura’s share in associated companies was negative US$402.5 million, compared to negative US$235.0 million reported in 4Q15, composed by: At Yanacocha (43.65% owned by Buenaventura), during 4Q16, gold production was 171,675 ounces, 19% lower than 4Q15 production (211,256 ounces). For FY16, gold production was 654,934 ounces, 29% lower than 917,690 ounces in FY15. Gold production guidance at Yanacocha for 2017 is 530k – 560k ounces. In 4Q16, Yanacocha reported a net loss of US$988.6 million, this includes a US$889.4 million non-cash impairment (US$ 388.2 million attributable to Buenaventura) and a US$ 78.5 million non-cash reclamation provision (US$ 34.3 million attributable to Buenaventura), compared to a net loss of US$547.4 million reported in 4Q15. CAS in 4Q16 was US$829/oz, 11% higher than the US$747/oz reported in 4Q15 mainly due to lower volume sold (158,227 gold ounces in 4Q16 vs 216,733 gold ounces in 4Q15). Quecher Main (oxide deposit) is expected to extend the life of the Yanacocha operation to 2025 with an average annual production of approximately 200,000 gold ounces per year between 2020 and 2025. The estimated CAPEX of the project is $275 and $325 million. A project decision is expected in 2H17. Studies are in process for Yanacocha sulfides. The project added 2 million ounces to resources. Capital expenditures at Yanacocha were US$20.4 million in 4Q16, while for FY16 total capital expenditures were US$83.1 million. At Cerro Verde (19.58% owned by Buenaventura), during 4Q16 copper production was 132,814 MT (26,005 MT attributable to Buenaventura), a 39% increase compared to 4Q15 (95,619 MT and 18,722 MT attributable to Buenaventura). For FY16, copper production was 502,495 MT (98,388 MT attributable to Buenaventura). During 4Q16, Cerro Verde reported a net income of US$114.9 million compared to net loss of US$13.2 million in 4Q15. This increase was primarily due to: i) higher volumes sold and ii) higher realized price (US$2.72/Lb in 4Q16 compared to US$2.07/Lb). For FY16, net income was US$340.9 million (compared to US$33.8 million in FY15). Capital expenditures at Cerro Verde were US$72.2 million in 4Q16, while for FY16 was US$421.6 million. Syndicated Loan (US$1.8B): US$400 million have been prepaid. It is expected to be fully paid by 2018, depending on copper prices. Copper production guidance at Cerro Verde for 2017 is 500k MT – 550k MT. At Coimolache (40.10% owned by Buenaventura), attributable contribution to net income in 4Q16 was US$6.5 million (US$7.5 million in 4Q15). For FY16, the contribution was US$23.5 million, compared to US$16.6 million reported in FY15. During the February 28, 2017 Board meeting, the Directors passed the following resolution: a. Approval of the Annual Report as of December 31, 2016 b. Approval of the Financial Statements as of December 31, 2016 c. Appointment of Ernst and Young (Paredes, Zaldivar, Burga y Asociados) as External Auditors for fiscal year 2017. d. Declaration of cash dividend of US$ 0.057 per share or ADS, payable on May 2, 2017. e. Election of the new members of the board for the period 2017 – 2019. 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. 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. 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. 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:


News Article | December 5, 2016
Site: www.businesswire.com

LIMA, Peru--(BUSINESS WIRE)--Compañía de Minas Buenaventura S.A.A. (“Buenaventura”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly traded precious metals mining company, today announced that in the interest of the Company’s best practices of corporate governance, its Board of Directors has decided to separate the Chairman and CEO roles, as it was mentioned during the last conference call (October 27, 2016). Thereby, the Board has accepted the resignation of Mr. Roque Benavides (62) as the Company's Chief Executive Officer, effective January 2, 2017. Mr. Benavides will remain as Chairman of the Board of Buenaventura and continue collaborating with the company. The Board of Directors appointed Mr Victor Gobitz (52) as the new Chief Executive Officer of Buenaventura, effective January 02, 2017. During his twenty five-year career in the mining industry, Mr. Víctor Gobitz has held senior leadership positions with industry-leading mining companies in Peru, Chile, Brazil and Canada. He was COO of Sociedad Minera El Brocal and is well known in our organization. He has served as CEO of Compañia Minera Milpo and other mining companies. Mr. Gobitz has a degree in Mining Engineering by the Pontificia Universidad Catolica del Peru, received an MBA from the Escuela de Administracion de Negocios (Universidad ESAN) and he has executive education from Wharton and Kellogg business schools. "Separating again the role of Chairman of the Board and Chief Executive Officer for Buenaventura is consistent with our Company’s efforts to ensure we maintain the best practices of corporate governance throughout our organization. I have thoroughly enjoyed my years as executive of Buenaventura and appreciate the support from our Board, shareholders, employees and business partners. I have tremendous respect for Víctor; under his leadership we will continue working towards excellence with considerable mining industry experience. I am confident that our management team is highly motivated to build upon our success in the years ahead. I will continue as Chairman of the Board supporting the new CEO and the generational transition that this appointment represents." said Mr. Benavides. 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 (61.29%), La Zanja (53.06%) and Coimolache (40.10%) and is developing the wholly owned Tambomayo Project. The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer and 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 persons indicated above, or download a PDF format file from the Company’s web site. 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.

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