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$).

Mr. Roque Benavides, Buenaventura’s Chief Executive Officer, stated:

"During the first quarter, Buenaventura’s 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.

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).

In 1Q14, Buenaventura’s equity production including associates companies, was 191,448 ounces of gold, 21% lower than the 243,811 ounces reported in 1Q13, mainly due to lower production at Orcopampa and Yanacocha. Silver equity production, including associated companies, during 1Q14 was 4.1 million ounces, 12% lower compared to the figure reported in 1Q13 (4.7 million oz.).

Orcopampa’s (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.

Breapampa’s (100% owned by Buenaventura) total production in 1Q14 was 20,927 ounces of gold, 2% higher when compared to the figure reported in 1Q13 (20,484 ounces). CAS in 1Q4 was US$461/oz of gold, 48% lower than the US$894/oz reported in 1Q13.

La Zanja’s (53.06% owned by Buenaventura) total production in 1Q14 was 35,937 ounces of gold, a 15% increase compared to 1Q13 (31,206 oz) and was due to an increase in ore grade (0.74 g/MT in 1Q14 vs. 0.64 g/MT in 1Q13). CAS in 1Q14 was US$535/oz of gold, 32% lower than 1Q13 (US$708/oz.), due to the higher ore grade and a reduction in exploration activities from Pampa Verde. It’s important to mention that that our exploration efforts are now focused in Alejandra underground project.

Tantahuatay’s (40.10% owned by Buenaventura) total production in 1Q14 was 32,633 ounces of gold (13,084 oz attributable to Buenaventura) 5% lower than the figure reported in 1Q13 (34,337 oz, 13,767 attributable to Buenaventura). CAS in 1Q14 was US$437/oz of gold, 14% lower than in 1Q13 (US$506/oz.) due lower supplies and contractor expenses as a result of significantly lower stripping ratio.

At El Brocal (54.07% owned by Buenaventura), copper production was 9,792 MT vs. 4,536 MT reported in 1Q13 (116% increase). Silver production, from polymetallic and copper ores, was 0.5 million ounces, in-line with the figure reported in 1Q14. There was no zinc production in 1Q14 (6,950 MT in 1Q13). Copper CAS was US$5,034/MT in 1Q14, 19% decrease when compared to US$6,212/MT in 1Q13.

General and Administrative Expenses

General and administrative expenses in 1Q14 were US$28.8 million, 80% higher than the figure reported in 1Q13 (US$16.0 million), due to a long term compensation expense credit in 1Q13.

Exploration in Non-Operating Areas

Exploration in non-operating areas during 1Q14 was US$10.4 million, a 52% decrease compared to US$21.8 million reported in 1Q13. During the period, Buenaventura’s main exploration efforts were focused on the following projects: La Zanja Underground (US$2.6 million) Tambomayo (US$1.7 million), San Gregorio (US$1.0 million) and Chanca (US$1.2 million).

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.


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).


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

Buenaventura’s 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.

Project Development and Exploration

Huanza Hydroelectric Plant (100% ownership)

Unit 2 began generating 46.3 MW, while Unit 1 will start its commissioning in 2Q14. This plant will ensure energy supply for direct operations.

El Brocal Expansion (54.07% ownership)

El Brocal expansion from 6 ktpd to 18 ktpd was completed. Production will begin, in 2Q14 to treat 11 ktpd of polymetallic ore from Colquijirca and 7 ktpd of copper ore from Marcapunta.

Tambomayo Project (100% ownership)

Mine development and engineering studies are in progress. Environmental Impact Assessment and permits were filed. Production is expected for 2016.