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Buenaventura Announces First Quarter 2017 Results

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$).

First Quarter 2017 Highlights:

  • In 1Q17, EBITDA from direct operations was US$80.7 million, increased 30% compared to US$62.0 million reported in 1Q16. Adjusted EBITDA (including associated companies) increased 21% (US$ 178.1 million) in 1Q17, compared to the US$ 146.8 million in 1Q16.
  • Heavy rains due to “Coastal El Niño” did not impacted our operations facilities, however logistics processes were affected.
  • Total attributable production in 1Q17 was 135k gold ounces and 6.1 million silver ounces, compared to 158k gold ounces and 6.2 million silver ounces in 2016.
  • Tambomayo´s ramp-up has been extended due to a bottleneck detected within the tailing filtering process.
  • El Brocal reported its second consecutive quarter of positive operating performance and financial results.
  • San Gabriel´s Environmental Impact Assessment (EIA) was approved on March 31, 2017.
  • At Cerro Verde, operating and financial results were slightly affected, despite a 21 day strike and the impacts of “Coastal El Niño”.

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

               
        1Q17   1Q16  

Var %

Total Revenues       278.3   227.3   22 %
Operating Profit       23.1   13.0   77 %
EBITDA Direct Operations       80.7   62.0   30 %
Adjusted EBITDA (Inc Associates)       178.1   146.8   21 %
Net Income       70.7   51.6   37 %
EPS**       0.28   0.20   37 %
   
 
(*) See Appendix 5
(**) as of March 31, 2017 Buenaventura had a weighted average number of shares outstanding of 253,986,867.
 

Operating Revenues

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).

               
Operating Highlights       1Q17   1Q16  

Var %

Net Sales

(in millions of US$)

      272.8   220.6   24 %
Average Realized Gold Price (US$/oz) (1) (2)       1,231   1,205   2 %
Average Realized Gold Price (US$/oz) inc. Affiliates (3)       1,218   1,196   2 %
Average Realized Silver Price (US$/oz) (1) (2)       16.65   14.37   16 %
Average Realized Lead Price (US$/MT) (1) (2)       2,290   1,782   28 %
Average Realized

Zinc Price (US$/MT) (1) (2)

      2,899   1,620   79 %
Average Realized Copper Price (US$/MT) (1) (2)       5,999   4,427   36 %
   
 
         
Volume Sold       1Q17   1Q16  

Var %

Gold Oz Direct Operations (1)       78,338   80,989   -3 %
Gold Oz inc Associated Companies (3)       155,088   172,119   -10 %
Silver Oz (1)       5,999,608   5,314,779   13 %
Lead MT (1)       9,719   6,567   48 %
Zinc MT (1)       16,691   12,342   35 %
Copper MT (1)       9,829   11,098   -11 %
 
(1)   Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal.
(2) The realized price considers the adjustments of quotational periods.
(3) Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.095% of Coimolache and 43.65% of Yanacocha.
 

Production and Operating Costs

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.

               
Equity Production       1Q17   1Q16  

Var %

Gold Oz Direct Operations(1)       62,828   65,376   -4 %
Gold Oz including Associated(2) Companies       135,428   157,955   -14 %
Silver Oz Direct Operations(1)       5,370,294   5,898,982   -9 %
Silver Oz including Associated Companies       6,133,526   6,213,680   -1 %
Lead MT       7,802   6,982   12 %
Zinc MT       13,570   10,368   31 %
Copper MT Direct Operations(1)       6,338   6,459   -2 %
Copper MT including Associated Companies       29,588   30,623   -3 %
   
 
         
Consolidated Production       1Q17   1Q16  

Var %

Gold Oz(3)       80,279   84,254   -5 %
Silver Oz(3)       6,262,264   6,157,018   2 %
Lead MT(3)       10,320   8,183   26 %
Zinc MT(3)       20,959   14,405   20 %
Copper MT(3)       11,214   11,417   -2 %
 
(1)   Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 53.06% of La Zanja and 61.32% of El Brocal.
(2) Consider 100% of Buenaventura´s operating units, 53.06% of La Zanja, 61.32% of el Brocal, 40.095% of Coimolache and 43.65% of Yanacocha.
(3) Considers 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal.
 

Orcopampa (100% owned by Buenaventura)

 
Production
        1Q17   1Q16   Var %
Gold   Oz   42,332   44,135   -4 %
Silver   Oz   140,095   147,414   -5 %
       
Cost Applicable to Sales
        1Q17   1Q16   Var %
Gold   US$/Oz   777   688   13 %
 

Gold production at Orcopampa decreased 4% in 1Q17 year on year, primarily due to lower ore grades (see Appendix 2). Cost Applicable to Sales (CAS) in 1Q17 (777 US$/Oz) increased 13% compared to 1Q16 (688 US$/Oz), mainly due to higher contractor expenses (a non-recurrent closing bonus), an increase in meters drifted and lower ounces sold (4% QoQ).

Gold production guidance for 2017 is 180k – 190k ounces.

Uchucchacua (100% owned by Buenaventura)

 
Production
        1Q17   1Q16   Var %
Silver   Oz   4,021,722   4,161,975   -3 %
Zinc   MT   1,882   1,725   9 %
Lead   MT   2,794   2,506   11 %
       
Cost Applicable to Sales
        1Q17   1Q16   Var %
Silver   US$/Oz   10.92   10.35   5 %
 

Silver production in 1Q17 was in line with 1Q16. Cost Applicable to Sales (CAS) in 1Q17 (10.92 US$/Oz) increased 5% compared to 1Q16 (10.35 US$/Oz), mainly due to an increase in labor expenses and higher contractor expenses (a non-recurrent closing bonus).

Silver production guidance for 2017 is 16.0 million – 17.0 million ounces.

Mallay (100% owned by Buenaventura)

 
Production
        1Q17   1Q16   Var %
Silver   Oz   320,372   408,619   -22 %
Zinc   MT   2,174   2,764   -21 %
Lead   MT   1,322   2,069   -36 %
       
Cost Applicable to Sales
        1Q17   1Q16   Var %
Silver   US$/Oz   13.18   11.93   10 %
 

Silver production in 1Q17 decreased 22% year on year, primarily due to lower ore grades (see Appendix 2). Cost Applicable to Sales (CAS) in 1Q17 increased by 10% year on year, primarily due to a decrease in ounces sold (9% QoQ).

Silver production guidance for 2017 is 1.5 million – 1.7 million ounces.

Julcani (100% owned by Buenaventura)

 
Production
        1Q17   1Q16   Var %
Silver   Oz   666,236   853,052   -22

%

       
Cost Applicable to Sales
        1Q17   1Q16   Var %
Silver   US$/Oz   13.36   10.66   25 %
 

Silver production in 1Q17 was 22% lower compared to 1Q16; primarily due to a decrease in ore treated (15% QoQ) and lower ore grades (10% QoQ). Cost Applicable to Sales (CAS) in 1Q17 (13.36 US$/Oz) was 25% higher than 1Q16 (10.66 US$/Oz), primarily explained by lower production. Management changed the mining method at Julcani after rock fall resulted in a fatal accident in January 2017, temporarily impacting productivity. This effect has been already surpassed.

Silver production guidance for 2017 is 3.0 million – 3.4 million ounces.

La Zanja (53.06% owned by Buenaventura)

 
Production
        1Q17   1Q16   Var %
Gold   Oz   32,255   34,193   -6 %
Silver   Oz   68,931   59,236   16 %
       
Cost Applicable to Sales
        1Q17   1Q16   Var %
Gold   US$/Oz   723   538   34 %
 

Gold production in 1Q17 decreased by 6% year on year, in line with the mine production plan. Cost Applicable to Sales (CAS) in 1Q17 (723 US$/Oz) increased 34% compared to 1Q16 (538 US$/Oz), primarily due to i) increased reagent consumption (associated with an increase in acid water treated), ii) decrease in ounces sold (3% QoQ) and iii) lower ore grades.

Gold production guidance for 2017 is 115k – 125k ounces.

Tantahuatay (40.10% owned by Buenaventura)

 
Production
        1Q17   1Q16   Var %
Gold   Oz   31,245   34,562   -10 %
Silver   Oz   133,274   243,990   -45 %
       
Cost Applicable to Sales
        1Q17   1Q16   Var %
Gold   US$/Oz   508   427   19 %
 

Gold production in 1Q17 decreased 10% year on year, in line with the mine production plan. Cost Applicable to Sales (CAS) in 1Q17 (508 US$/Oz) increased 19% compared to 1Q16 (427 US$/Oz) mainly due to a decrease in ounces sold and higher exploration expenses.

Gold production guidance for 2017 is 145k – 155k ounces

El Brocal (61.32% owned by Buenaventura)

 
Production
        1Q17   1Q16   Var %
Copper   MT   11,155   11,344   -2 %
Zinc   MT   16,903   9,916   70 %
Silver   Oz   1,044,908   526,724   98 %
       
Cost Applicable to Sales
        1Q17   1Q16   Var %
Copper   US$/MT   4,877   4,823   1 %
Zinc   US$/MT   1,947   1,474   32 %
 

Copper production in 1Q17 was in line with 1Q16. In 1Q17 zinc production increased 70% compared to 1Q16 mainly due to an increase ore treated and higher ore grades.

In 1Q17, zinc Cost Applicable to Sales (CAS) increased 32% year to year, mainly due to higher commercial deductions triggered by higher zinc prices (79% QoQ), which activated the treatment charges escalators. Copper CAS in 1Q17 was in line with the figure reported in 1Q16.

Zinc production guidance for 2017 is 60k – 70k MT, while copper production guidance for 2017 is 55k – 65k MT.

General and Administrative Expenses

1Q17 General and Administrative expenses were US$22.5 million; a 5% increase as compared to the US$21.4 million in 1Q16 mainly due to an increase insurance expenses (29% QoQ).

Exploration in Non-Operating Areas

1Q17 Exploration costs in Non-Operating Areas were US$2.3 million compared with US$3.5 million in 1Q16. During the period, Buenaventura’s primarily focused its exploration efforts on the Marcapunta Norte (US$0.38 million) and San Gabriel projects (US$0.19 million).

Share in Associated Companies

During 1Q17, Buenaventura’s share in associated companies was US$44.9 million, compared to US$28.4 million reported in 1Q16, comprised of:

               
Share in the Result of Associates

(in millions of US$)

      1Q17   1Q16   Var %
Cerro Verde       36.0   19.0   90 %
Coimolache       4.3   5.7   -25 %
Yanacocha       4.6   3.7   23 %
Total       44.9   28.4   58 %
   

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), 1Q17 gold production was 137,621 ounces (60,072 ounces attributable to Buenaventura); a 24% decrease as compared to the 180,348 ounces (78,722 ounces attributable to Buenaventura) produced in 1Q16.

Gold production guidance at Yanacocha for 2017 is 530k – 560k ounces.

In 1Q17, Yanacocha reported a net income of US$10.4 million, compared to a net income of US$8.5 million reported in 1Q16.

CAS in 1Q17 was US$823/oz; a 12% increase as compared to the US$734/oz reported in 1Q16 mainly due to lower volume sold (147,821 gold ounces in 1Q17 vs 180,348 gold ounces in 1Q16).

The Quecher Main project engineering (oxide deposit) is being developed, a decision to progress is expected in 2H17. In the case of Yanacocha Sulphides, technical and economic viability has been improving, with an update expected in 2H17.

Capital expenditures at Yanacocha were US$12.6 million in 1Q17.

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), 1Q17 copper production was 118,744 MT (23,250 MT attributable to Buenaventura), a 4% decrease compared to 1Q16 (123,414 MT and 24,164 MT attributable to Buenaventura).

During 1Q17, Cerro Verde reported a net income of US$184.0 million compared to net income of US$96.9 million in 1Q16. This increase was primarily due to: i) an increase in volumes sold and ii) higher realized price (US$2.83/Lb in 1Q17 compared to US$2.23/Lb in 1Q16).

Capital expenditures at Cerro Verde were US$24.7 million in 1Q17.

Cerro Verde´s Debt:

    1.   Syndicated Loan (US$1.8B): US$540 million of which have been prepaid.
2. Shareholder´s Loan (US$0.6B): US$85 million of which have been prepaid.
 

Copper production guidance at Cerro Verde for 2017 is 500k MT – 550k MT.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), 1Q17 attributable contribution to net income was US$4.3 million (US$5.7 million in 1Q16).

Project Development and Exploration


The Tambomayo Project (100% ownership)

  • Project ramp-up has been extended due to additional adjustments that have to be made in the tailings filtering process.
  • Full capacity expected by 3Q17.
  • Updated 2017 Production Guidance of 60k – 90k Au Oz.

The San Gabriel Project (100% ownership)

  • Environmental Impact Assessment (EIA) was approved on March 31, 2017.
  • Prefeasibility in progress to complete:
    • Mining method and rock support analysis
    • Metallurgical test to optimize the design of the processing plant and recovery rate

***

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded, precious metals company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold and silver and other metals via wholly owned mines as well as through its participation in joint exploration projects.

Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, El Brocal, La Zanja and Coimolache and is developing the Tambomayo project.

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

For a printed version of the Company’s 2015 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*) Operations wholly owned by Buenaventura

 

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to the Company’s, Yanacocha’s and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.
 

**Tables to follow**

APPENDIX 1

 

Equity Participation in

Subsidiaries and Associates (as of December 31, 2016)

  BVN   Operating
    Equity %   Mines / Business
El Molle Verde S.A.C*   100.00   Trapiche Project
Minera La Zanja S.A*   53.06   La Zanja
Sociedad Minera El Brocal S.A.A*   61.32   Colquijirca and Marcapunta
Compañía Minera Coimolache S.A **   40.10   Tantahuatay
Minera Yanacocha S.R.L **   43.65   Yanacocha
Sociedad Minera Cerro Verde S.A.A **   19.58   Cerro Verde
Processadora Industrial Rio Seco S.A*   100.00   Rio Seco chemical plant
Consorcio Energético de Huancavelica S.A*   100.00   Energy – Huanza Hydroelectrical plant
Buenaventura Ingenieros S.A*   100.00   Engineering Consultant
 

(*)Consolidates
(**) Equity Accounting


APPENDIX 2

         
         
GOLD PRODUCTION
        1Q17   1Q16   %
Mining Unit   Operating Results   Underground    
Orcopampa Ore Milled DMT 114,485 110,588 4 %
Ore Grade OZ/MT 0.38 0.40 -7 %
Recovery Rate % 96.8 % 96.2 % 1 %
    Ounces Produced*   42,332     44,135     -4 %
Mining Unit   Operating Results   Open Pit    
La Zanja Ounces Produced 32,255 34,193 -6 %
Tantahuatay   Ounces Produced   31,245     34,562     -10 %
* Includes ounces from retreatment of taling dams
 
         
SILVER PRODUCTION
        1Q17   1Q16   %
Mining Unit   Operating Results   Underground    
Uchucchacua Ore Milled DMT 332,876 318,381 5 %
Ore Grade OZ/MT 14.38 15.61 -8 %
Recovery Rate % 84.0 % 83.8 % 0 %
    Ounces Produced   4,021,722     4,161,975     -3 %
Julcani Ore Milled DMT 38,341 44,983 -15 %
Ore Grade OZ/MT 17.92 19.85 -10 %
Recovery Rate % 96.99 % 95.57 % 1 %
    Ounces Produced   666,236     853,052     -22 %
Mallay Ore Milled DMT 49,382 48,546 2 %
Ore Grade OZ/MT 7.05 8.99 -22 %
Recovery Rate % 92.1 % 93.7 % -2 %
    Ounces Produced   320,372     408,619     -22 %
Mining Unit   Operating Results   Open Pit    
Colquijirca   Ounces Produced   812,998     357,699     127 %
 
         
ZINC PRODUCTION
        1Q17   1Q16   %  
Mining Unit   Operating Results   Underground    
Uchucchacua Ore Milled DMT 332,876 318,381 5 %
Ore Grade % 1.23 % 1.13 % 9 %
Recovery Rate % 45.90 % 47.7 % -4 %
    MT Produced   1,882     1,725     9 %
Mallay Ore Milled DMT 49,382 48,546 2 %
Ore Grade % 4.98 % 6.54 % -24 %
Recovery Rate % 88.30 % 87.0 % 1 %
    MT Produced   2,174     2,764     -21 %
Mining Unit   Operating Results   Open Pit    
Colquijirca   MT Produced   16,903     9,916     70 %
 

APPENDIX 3: EBITDA Reconciliation (in thousand US$)

 

   
               
        1Q17   1Q16   Var
Net Income       76,250   51,248   49 %
Add / Subtract:       4,495   10,784   N.A
Provision for income tax, net       -3,459   -6,789   -49 %
Share in associated companies by the equity method, net       -44,864   -28,397   58 %
Provision for contingencies       12,482   885   1310 %
Interest income       -1,291   -2,347   -45 %
Interest expense       7,212   7,980   -10 %
Loss on currency exchange difference       -3,003   -6,379   -53 %
Long Term Compensation provision       -4   0   N.A
Depreciation and Amortization       44,309   46,838   -5 %
Workers´ participation provision       836   1,276   -34 %
Profit from discontinued operations       -7,723   -2,283   238 %
EBITDA Buenaventura Direct Operations       80,745   62,032   30 %
EBITDA Yanacocha (43.65%)       12,956   25,405   -49 %
EBITDA Cerro Verde (19.58%)       75,764   48,233   57 %
EBITDA Coimolache (40%)       8,671   11,119   -22 %
Adjusted EBITDA (including Associated companies)       178,136   146,788   21 %
 

Note:

EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.

EBITDA (including associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.

Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.

APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION

Reconciliation of Costs Applicable to Sales and Cost Applicable to Sales per Unit Sold

Cost applicable to sales consists of cost of sales, excluding depreciation and amortization, plus selling expenses. Cost applicable to sales per unit sold for each mine consists of cost applicable to sales for a particular metal produced at a given mine divided by the volume of such metal produced at such mine in the specified period. We note that cost applicable to sales is not directly comparable to the cash operating cost figures disclosed in previously furnished earnings releases.

Cost applicable to sales and Cost applicable to sales per unit of mineral sold are not measures of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. We consider Cost applicable to sales and Cost applicable to sales per unit of mineral sold to be key measures in managing and evaluating our operating performance. These measures are widely reported in the precious metals industry as a benchmark for performance, but do not have standardized meanings. You should not consider Cost applicable to sales or Cost applicable to sales per unit of mineral sold as alternatives to cost of sales determined in accordance with IFRS, as indicators of our operating performance. Cost applicable to sales and Cost applicable to sales per unit of mineral sold are calculated without adjusting for by-product revenue amounts.

The tables below set forth (i) a reconciliation of consolidated Cost of sales, excluding depreciation and amortization to consolidated Cost applicable to sales, (ii) reconciliations of the components of Cost applicable to sales (by mine and mineral) to the corresponding consolidated line items set forth on our consolidated statements of profit or loss for the three and nine months ended September 30, 2015 and 2016, and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units. The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and nine months ended September 30, 2015 and 2016 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.

           

Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization, to consolidated Cost applicable to sales:

 

       
For the 3 months ended Mar 31
2017 2016
(in thousands of US$)
Consolidated Cost of sales excluding depreciation and amortization 141,320 115,411
Add:
Consolidated Exploration in units in operation 19,661 19,116
Consolidated Commercial deductions 66,155 54,341
Consolidated Selling expenses 4,313 4,773
Consolidated Cost applicable to sales 231,449 193,641
 

Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization (by mine and mineral) to consolidated Cost of sales:

 

       
For the 3 months ended Mar 31
2017 2016

Cost of sales by mine and mineral

(in thousands of US$)
Julcani, Gold 2 0
Julcani, Silver 7,720 4,005
Julcani, Lead 650 387
Julcani, Copper 45 30
Mallay, Gold 100 117
Mallay, Silver 2,370 2,088
Mallay, Lead 1,465 1,301
Mallay, Zinc 2,090 1,508
Orcopampa, Gold 23,866 21,769
Orcopampa, Silver 1,147 1,083
Orcopampa, Copper 18 6
Uchucchacua, Gold 20 16
Uchucchacua, Silver 25,998 21,550
Uchucchacua, Lead 2,469 1,318
Uchucchacua, Zinc 1,518 882
La Zanja, Gold 22,932 17,712
La Zanja, Silver 684 442
El Brocal, Gold 1,411 1,978
El Brocal, Silver 4,883 2,726
El Brocal, Lead 3,983 2,150
El Brocal, Zinc 13,363 7,027
El Brocal, Copper 19,481 24,341
Non Mining Units 5,104 2,975
 
Consolidated Cost of sales, excluding depreciation and amortization 141,320 115,411
 
Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units:
       
For the 3 months ended Mar 31
2017 2016

Exploration expenses in units in operation by mine and mineral

(in thousands of US$)
Julcani, Gold 1 0
Julcani, Silver 3,033 2,211
Julcani, Lead 255 213
Julcani, Copper 18 16
Mallay, Gold 30 41
Mallay, Silver 719 728
Mallay, Lead 444 453
Mallay, Zinc 634 526
Orcopampa, Gold 8,574 8,188
Orcopampa, Silver 412 407
Orcopampa, Copper 7 2
Uchucchacua, Gold 3 4
Uchucchacua, Silver 4,448 5,735
Uchucchacua, Lead 423 351
Uchucchacua, Zinc 260 235
La Zanja, Gold 388 4
La Zanja, Silver 12 0
El Brocal, Gold 0 0
El Brocal, Silver 0 0
El Brocal, Lead 0 0
El Brocal, Zinc 0 0
El Brocal, Copper 0 0
Non Mining Units 0 0
 
Consolidated Exploration expenses in units in operation 19,661 19,116
 

Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) to consolidated Commercial deductions:

 

       
For the 3 months ended Mar 31
2017 2016

Commercial Deductions in units in operation by mine and mineral

(in thousands of US$)
Julcani, Gold 0 0
Julcani, Silver 1,341 1,435
Julcani, Lead 113 135
Julcani, Copper 8 12
Mallay, Gold 39

44

Mallay, Silver 909 1,110
Mallay, Lead 552 681
Mallay, Zinc 1,181 1,369
Orcopampa, Gold 99 101
Orcopampa, Silver 32 16
Orcopampa, Copper 4 1
Uchucchacua, Gold 7 6
Uchucchacua, Silver 9,626 9,256
Uchucchacua, Lead 910 568
Uchucchacua, Zinc 1,544 1,312
La Zanja, Gold 62 58
La Zanja, Silver 1 1
El Brocal, Gold 2,039 2,194
El Brocal, Silver 4,178 2,027
El Brocal, Lead 2,792 1,055
El Brocal, Zinc 13,393 5,355
El Brocal, Copper 27,323 27,605
Non Mining Units 0 0
 
Consolidated Commercial deductions in units in operation 66,155 54,341
 

Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses:

 

       
For the 3 months ended Mar 31
2017 2016

Selling expenses by mine and mineral

(in thousands of US$)
Julcani, Gold 0 0
Julcani, Silver 102 178
Julcani, Lead 9 17
Julcani, Copper 1 1
Mallay, Gold 4 9
Mallay, Silver 102 161
Mallay, Lead 63 100
Mallay, Zinc 90 116
Orcopampa, Gold 154 159
Orcopampa, Silver 7 8
Orcopampa, Copper 0 0
Uchucchacua, Gold 1 1
Uchucchacua, Silver 673 809
Uchucchacua, Lead 64 49
Uchucchacua, Zinc 39 33
La Zanja, Gold 174 217
La Zanja, Silver 5 5
El Brocal, Gold 73 120
El Brocal, Silver 254 165
El Brocal, Lead 207 130
El Brocal, Zinc 696 425
El Brocal, Copper 1,014 1,472
Non Mining Units 580 598
 
Consolidated Selling expenses 4,313 4,773
 
                                                   
JULCANI
1Q 2017   1Q 2016
        GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 2   7,720   650   -   45   8,418 -0   4,005   387   -   30   4,421
Add:
Exploration Expenses (US$000) 1 3,033 255 - 18 3,307 -0 2,211 213 - 16 2,440
Commercial Deductions (US$000) 0 1,341 113 - 8 1,463 -0 1,435 135 - 12 1,581
Selling Expenses (US$000) 0 102 9 - 1 111 -0 178 17 - 1 197
Cost Applicable to Sales (US$000) 3 12,196 1,028 - 71 13,299 -1 7,829 753 - 59 8,640
Divide:
Volume Sold       4   912,656   591   -   16   Not Applicable   -1   734,224   578   -   19   Not Applicable
CAS       924   13.36   1,738   -   4,511   Not Applicable   -   10.66   1,301   -   3,154   Not Applicable
                                             
MALLAY
1Q 2017 1Q 2016
        GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL   GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   COPPER (MT)   TOTAL
Cost of Sales (without D&A) (US$000) 100 2,370 1,465 2,090 - 6,025 117 2,088 1,301 1,508 - 5,015
Add:
Exploration Expenses (US$000) 30 719 444 634 - 1,827 41 728 453 526 - 1,748
Commercial Deductions (US$000) 39 909 552 1,181 - 2,680 44 1,110 681 1,369 - 3,205
Selling Expenses (US$000) 4 102 63 90 - 260 9 161 100 116 - 386
Cost Applicable to Sales (US$000) 173 4,100 2,524 3,996 - 10,792 212 4,087 2,536 3,520 - 10,354
Divide:
Volume Sold       193   311,157   1,276   1,472   -   Not Applicable   240   342,590   1,799   2,295   -   Not Applicable
CAS       897   13.18   1,979   2,715   -   Not Applicable   883   11.93   1,409   1,534   -   Not Applicable
 
                                             
ORCOPAMPA
1Q 2017 1Q 2016
        GOLD (OZ)   SILVER (OZ)   LEAD (MT)   ZINC (MT)   ...