Buenaventura Announces Third Quarter and Nine-month 2023 Results

LIMA, Peru, October 31, 2023--(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 third quarter (3Q23) and nine-month period ended September 30, 2023 (9M23). 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$).

Third Quarter and Nine-Month 2023 Highlights:

  • 3Q23 EBITDA from direct operations was US$ 53.3 million, compared to US$ 22.2 million reported in 3Q22. 9M23 EBITDA from direct operations reached US$ 121.9 million, compared to US$ 96.3 million reported in 9M22. 2022 EBITDA does not include US$ 300 million resulting from the sale of Buenaventura's 43.65% stake in Yanacocha.

  • 3Q23 net loss from direct operations reached US$ 24.3 million, compared to a US$ 22.6 million net loss for the same period in 2022. 9M23 net income from direct operations was US$ 42.5 million, compared to US$ 67.7 million net income for the 9M22.

  • Buenaventura recorded US$ 51.3 million in Depreciation and Amortization for the 3Q23: US$ 17.6 million was due to deferred stripping related to the final open pit expansion works, which was completely mined in September 2023, when mining activities at Colquijirca’s Tajo Norte mine were suspended.

  • Buenaventura's 9M23 consolidated copper production increased 35% YoY. Zinc production decreased by 65% YoY, lead decreased by 61% YoY, silver decreased by 19% YoY, and gold decreased by 17% YoY.

  • Buenaventura's cash position reached US$ 221.8 million and net debt decreased to US$ 493.7 million with an average maturity of 2.7 years by quarter’s end, September 30, 2023.

  • 3Q23 capital expenditures were US$ 59.8 million, compared to US$ 37.2 million for the same period in 2022. 9M23 capital expenditures reached US$ 145.7 million, compared to US$ 93.2 million in 9M22, and includes US$ 46.5 million related to the San Gabriel Project and US$ 31.4 million related to the Yumpag Project.

  • The Yumpag project’s Environmental Impact Assessment (EIA) was approved on September 7, 2023. The Company promptly submitted a request to the Peruvian Ministry of Energy and Mines to obtain the necessary authorizations to initiate the deposit’s exploitation. However, 4Q23 targeted production initiation remains unchanged, as resumed activities at the Uchucchacua processing plant also enables Buenaventura to perform metallurgical tests for up to 124,600 tons of ore from the Yumpag project’s pilot stope.

  • Cerro Verde paid a total dividend of US$ 250 million on August 3, 2023. Buenaventura received US$ 49.0 million relative to its stake in Cerro Verde.

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

3Q23

3Q22

Var %

9M23

9M22

Var %

Total Revenues

211.3

195.4

8%

570.0

578.4

-1%

Operating Income

-29.5

-20.0

48%

-39.0

-52.0

-25%

EBITDA Direct Operations (1)

53.3

22.2

N.A.

121.9

96.3

27%

EBITDA Including Affiliates (1)

152.7

78.2

95%

418.5

369.8

13%

Net Income (2)

-28.0

-19.8

42%

29.6

548.5

-95%

EPS (3)

-0.11

-0.08

42%

0.12

2.16

-95%

(1)

Does not include US$ 300 million from the sale of Buenaventura’s stake in Yanacocha.

(2)

Net Income attributable to owners of the parent

(3)

As of September 30, 2023, Buenaventura had a weighted average number of shares outstanding of 253,986,867.

Operating Revenues

3Q23 net sales were US$ 211.3 million, compared to US$ 195.4 million in 3Q22; a year-on-year increase resulting from improved copper volume sold.

The Company recorded a negative US$ 15.3 million provisional price adjustment for the accumulated first nine months of 2023. This is comprised of US$ 13.7 million in fair value of accounts receivables and US$ 1.5 million in adjustments to prior period liquidations. This compares to a negative US$ 40.4 million adjustment for the accumulated first nine months of 2022.

Operating Highlights

3Q23

3Q22

Var %

9M23

9M22

Var %

Net Sales (millions of US$)

211.3

195.4

8%

570.0

577.1

-1%

Average Gold Price (US$/oz.) Direct Operations (1) (2)

1,921

1,678

14%

1,927

1,794

7%

Average Gold Price (US$/oz.) incl. Associated (2) (3)

1,917

1,677

14%

1,925

1,794

7%

Average Silver Price (US$/oz.) (2)

25.67

17.33

48%

24.30

21.32

14%

Average Lead Price (US$/MT) (2)

2,225

1,713

30%

2,030

2,093

-3%

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

1,762

3,412

-48%

2,152

3,983

-46%

Average Copper Price (US$/MT) (2)

8,291

7,261

14%

8,689

8,685

0%

Volume Sold

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold Oz Direct Operations (1)

33,265

45,807

-27%

102,700

123,692

-17%

Gold Oz incl. Associated (3)

41,780

54,399

-23%

117,239

148,778

-21%

Silver Oz

1,743,629

1,954,000

-11%

4,666,199

5,655,367

-17%

Lead MT

1,269

4,129

-69%

4,799

12,530

-62%

Zinc MT

3,029

8,061

-62%

8,324

24,871

-67%

Copper MT

17,802

11,449

55%

41,940

31,512

33%

(1)

Buenaventura Consolidated figure includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal.

(2)

The realized price takes into account the adjustments of quotational periods.

(3)

Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal and 40.095% of Coimolache.

Production and Operating Costs

Buenaventura’s 3Q23 equity gold production was 43,449 ounces, compared to 55,837 ounces produced in 3Q22, primarily due to decreased production at Tambomayo and La Zanja. 3Q23 silver production decreased by 12% primarily due to Julcani and Tambomayo performance. 3Q23 lead and zinc production decreased by 66% and 62%, respectively, due to decreased production at Tambomayo and El Brocal. The Company’s 3Q23 equity copper production was 34,168 MT, compared to 28,909 MT produced in 3Q22, due to increased production at El Brocal and Cerro Verde.

Equity Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold Oz Direct Operations(1)

33,978

47,057

-28%

105,930

128,131

-17%

Gold Oz including Associated(2) Companies

43,449

55,837

-22%

121,884

152,726

-20%

Silver Oz Direct Operations(1)

1,472,907

1,664,600

-12%

3,984,040

5,034,531

-21%

Lead MT Direct Operations(1)

1,279

3,738

-66%

4,575

11,628

-61%

Zinc MT Direct Operations(1)

2,663

6,937

-62%

7,706

22,336

-66%

Copper MT Direct Operations(1)

11,565

7,438

55%

27,200

20,152

35%

Copper MT including Associated Companies(3)

34,168

28,909

18%

94,336

84,065

12%

Consolidated Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold Oz(4)

36,228

49,789

-27%

111,574

134,261

-17%

Silver Oz(4)

1,933,025

1,906,679

1%

4,857,709

5,996,245

-19%

Lead MT(4)

1,620

4,340

-63%

5,408

13,698

-61%

Zinc MT(4)

3,762

9,129

-59%

10,275

29,511

-65%

Copper MT(4)

18,826

12,108

55%

44,277

32,805

35%

(1)

Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 100% of La Zanja and 61.43% of El Brocal.

(2)

Based on 100% of Buenaventura´s operating units, 100% of La Zanja, 61.43% of El Brocal and 40.095% of Coimolache.

(3)

Based on 100% of Buenaventura´s operating units, 61.43% of El Brocal and 19.58% of Cerro Verde.

(4)

Based on 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal

Tambomayo (100% owned by Buenaventura)

Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

Oz

8,127

13,755

-41%

29,623

41,973

-29%

Silver

Oz

301,963

546,256

-45%

1,237,001

1,399,472

-12%

Cost Applicable to Sales

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

US$/Oz

1,891

982

93%

1,357

978

39%

Tambomayo 3Q23 gold production decreased 41% year on year aligned with the Company’s mine plan for this asset, while silver production decreased 45% year on year and by 12% for the first nine months of 2023 compared to the same period of 2022 due to lower than planned mining rate within the mine's upper zone, which required more extensive rehabilitation to enable access to high-grade ore. Cost Applicable to Sales (CAS) increased to 1,891 US$/Oz in 3Q23 from 982 US$/Oz in 3Q22. This increase was primarily due to decreased volume sold in 3Q23.

Orcopampa (100% owned by Buenaventura)

Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

Oz

20,576

20,164

2%

60,547

56,944

6%

Silver

Oz

7,168

8,247

-13%

22,028

23,437

-6%

Cost Applicable to Sales

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

US$/Oz

970

803

21%

973

911

7%

3Q23 gold production was in line with 3Q22 and with the planned mining sequence. Cost Applicable to Sales (CAS) increased to 970 US$/Oz in 3Q23, compared to 803 US$/Oz in 3Q22, primarily due to lower gold grades in 2023 compared to 2022.

La Zanja (100% owned by Buenaventura)

Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

Oz

1,692

8,786

-81%

6,772

19,452

-65%

Silver

Oz

3,681

31,665

-88%

15,633

85,347

-82%

Cost Applicable to Sales

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

US$/Oz

1,140

1,892

-40%

1,679

1,914

-12%

3Q23 gold production decreased by 81% year on year, in line with 2023 estimates, as mining and ore stockpiling was suspended in 4Q22. 3Q23 Cost Applicable to Sales (CAS) was 1,140 US$/Oz, a decrease from 1,892 US$/Oz gold production in 3Q22 as only pad leaching and water treatment are being performed at the property, as well as exploration.

Coimolache (40.10% owned by Buenaventura)

Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

Oz

23,621

21,899

8%

39,789

61,341

-35%

Silver

Oz

87,185

76,133

15%

176,755

228,832

-23%

Cost Applicable to Sales

3Q23

3Q22

Var %

9M23

9M22

Var %

Gold

US$/Oz

1,083

1,710

-37%

1,711

1,288

33%

Coimolache 3Q23 gold production increased by 8% year-over-year, due to increased treated ore, higher gold grades and accelerated gold extraction from the leach pad. Cost Applicable to Sales (CAS) therefore decreased to 1,083 US$/Oz in 3Q23, from 1,710 US$/Oz in 3Q22.

Uchucchacua (100% owned by Buenaventura)

Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Silver

Oz

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Zinc

MT

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Lead

MT

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Cost Applicable to Sales

3Q23

3Q22

Var %

9M23

9M22

Var %

Silver

US$/Oz

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Buenaventura submitted Uchucchacua’s updated mine plan to the Peruvian Ministry of Energy and Mines on August 28, 2023. Buenaventura initiated a short ore processing campaign at the processing plant, ensuring plant operational readiness to process ore from Uchucchacua and Yumpag during the 4Q23. Exploration and mine development progressed as scheduled during 3Q23.

The Yumpag project’s Environmental Impact Assessment (EIA) was approved on September 7, 2023. The Company promptly submitted a request to the Peruvian Ministry of Energy and Mines to obtain the necessary authorizations to initiate the deposit’s exploitation. 4Q23 targeted production initiation remains unchanged, as resumed activities at the Uchucchacua processing plant also enables Buenaventura to perform metallurgical tests for up to 124,600 tons of ore from the Yumpag project’s pilot stope.

Yumpag’s ore concentrates will be processed at the Rio Seco plant to reduce manganese content. The Rio Seco plant is scheduled to resume operations in November 2023.

Julcani (100% owned by Buenaventura)

Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Silver

Oz

427,269

692,876

-38%

1,317,895

1,994,565

-34%

Cost Applicable to Sales

3Q23

3Q22

Var %

9M23

9M22

Var %

Silver

US$/Oz

26.09

13.80

89%

22.40

14.55

54%

3Q23 silver production decreased 38% year on year primarily due to a negative geology reconciliation with decreased treated ore. 3Q23 Cost Applicable to Sales (CAS) was 26.09 US$/Oz, compared to 13.80 US$/Oz in 2Q22; an 89% year on year increase due to decreased volume sold.

Exploration and development of Julcani’s Rosario sector at 610 level began during 3Q23. This new zone includes gold and copper which Buenaventura will begin processing during the fourth quarter 2023. The Company will also submit a related reserves and resources analysis by year end 2023.

El Brocal (61.43% owned by Buenaventura)

Production

3Q23

3Q22

Var %

9M23

9M22

Var %

Copper

MT

18,826

12,108

55%

44,277

32,805

35%

Zinc

MT

2,849

5,683

-50%

6,661

18,601

-64%

Silver

Oz

1,192,944

627,635

90%

2,265,152

2,493,424

-9%

Cost Applicable to Sales

3Q23

3Q22

Var %

9M23

9M22

Var %

Copper

US$/MT

6,029

6,690

-10%

6,290

6,676

-6%

Zinc

US$/MT

1,924

2,698

-29%

1,859

2,931

-37%

El Brocal 3Q23 copper production increased by 55% year on year as underground mine production ramp-up continued ahead of expectations during the quarter. Transitional ore from the open pit also had a higher than estimated copper content with improved metallurgical recovery. Buenaventura maintains its targeted underground mine 10,000 tpd exploitation rate for 4Q23.

3Q23 silver production increased by 90% year on year in line with the 2023 planned mining sequence.

3Q23 zinc production decreased by 50% year on year as part as the planned transition to copper from polymetallic ore. On October 3, 2023, Buenaventura submitted a notice to the Peruvian Ministry of Energy and Mines (MINEM) for the temporary suspension of mining activities at Colquijirca’s Tajo Norte mine for up to three years due to approval delay of Colquijirca’s Modification of Environmental Impact Assessment. Buenaventura expects to now process 100% of the El Brocal lead and zinc inventories by year end 2023 with the remaining open pit copper inventories expected in 1Q24. In the 4Q23, the company will recognize the deferred stripping costs associated with lead and zinc inventories, which are expected to be in line with the amortization reported in the 3Q23.

2Q23 Copper Cost Applicable to Sales (CAS) decreased by 10% year on year due to increased volume sold.

Share in Associated Companies

Buenaventura’s share in associated companies was US$ 46.4 million in 3Q23, compared with US$ 20.4 million in 3Q22, comprised of:

Share in Associates’ Results (in US$ millions)

3Q23

3Q22

Var %

9M23

9M22

Var %

Cerro Verde

44.4

20.7

N.A.

122.3

120.1

2%

Coimolache

2.5

-0.2

N.A.

-7.7

0.3

N.A.

Other minor

-0.5

0.0

N.A.

-1.2

-2.2

-45%

Total

46.4

20.4

N.A.

113.4

118.1

-4%

CERRO VERDE (19.58% owned by Buenaventura)

3Q23 copper production was 115,441 MT, 22,603 MT of which is attributable to Buenaventura; a 5% increase as compared to 109,655 MT produced in 3Q22, 21,471 MT of which was attributable to Buenaventura.

Cerro Verde reported US$ 225.5 million net income in 3Q23, compared to US$ 105.5 million net income in 3Q22. This is primarily due to a 40% year on year net sales increase, primarily due to a higher average realized copper price of US$ 3.77 per pound in the third quarter of 2023, compared to US$ 3.14 per pound in the third quarter of 2022, as well as an 11% increase in volume of copper sold. This increase was partially offset by a year-on-year cost of sales increase due to an inventory variation, and higher tax paid during the quarter.

3Q23 Cerro Verde capital expenditures were US$ 70.8 million.

COIMOLACHE (40.10% owned by Buenaventura)

Coimolache reported US$ 6.6 million in 3Q23 net income, compared to US$ 1.0 million net loss in 3Q22.

SAN GABRIEL Project

3Q23 and 9M23 capital expenditures was US$ 22.4 million and US$ 46.5 million, respectively, primarily related to earthworks and construction-related water dam excavation. The Company has also invested an additional US$ 40.0 million in the project as advance payment for equipment manufacturing, primarily related to the processing plant. This amount is reported within Buenaventura’s financial statements as accounts receivable and will be reclassified as CAPEX once the equipment arrives at the project.

The underground mining tender process was completed during 3Q23. Personnel hiring and mobilization is in progress, and contractors will begin field works during 4Q23.

Item

Description

Progress as of:

1Q23

2Q23

3Q23

1

Engineering

66%

81%

90%

2

Procurement

85%

85%

89%

3

Construction

3%

7%

14%

4

Commissioning

0%

0%

0%

Total

15%

23%

28%

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Julcani*, Tambomayo*, La Zanja*, El Brocal and Coimolache).

The Company owns 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc. and Sumitomo Corporation).

For a printed version of the Company’s 2022 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 and related conference call contain, in addition to historical information, forward-looking statements including statements related to the Company’s ability to manage its business and liquidity during and after the COVID-19 pandemic, the impact of the COVID-19 pandemic on the Company’s results of operations, including net revenues, earnings and cash flows, the Company’s ability to reduce costs and capital spending in response to the COVID-19 pandemic if needed, the Company’s balance sheet, liquidity and inventory position throughout and following the COVID-19 pandemic, the Company’s prospects for financial performance, growth and achievement of its long-term growth algorithm following the COVID-19 pandemic, future dividends and share repurchases.

This press release may also 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, 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, 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 September 30, 2023)

BVN

Operating

Equity %

Mines / Business

El Molle Verde S.A.C*

100.00

Trapiche Project

Minera La Zanja S.A*

100.00

La Zanja

Sociedad Minera El Brocal S.A.A*

61.43

Colquijirca and Marcapunta

Compañía Minera Coimolache S.A**

40.10

Tantahuatay

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

(*) Consolidated
(**) Equity Accounting

APPENDIX 2

Gold Production

Mining Unit

Operating Results

Unit

3Q23

3Q22

%

9M23

9M22

△ %

Underground

Tambomayo

Ore Milled

DMT

143,469

161,764

-11%

435,103

468,323

-7%

Ore Grade

Gr/MT

2.22

3.00

-26%

2.57

3.17

-19%

Recovery Rate

%

79.35

88.26

-10%

82.08

87.97

-7%

Ounces Produced

Oz

8,127

13,755

-41%

29,623

41,973

-29%

Orcopampa

Ore Milled

DMT

74,026

63,736

16%

213,474

180,342

18%

Ore Grade

Gr/MT

8.96

10.16

-12%

9.19

10.00

-8%

Recovery Rate

%

96.48

96.90

0%

96.01

98.17

-2%

Ounces Produced*

Oz

20,576

20,164

2%

60,547

56,944

6%

Marcapunta

Ore Milled

DMT

776,985

794,447

-2%

2,465,994

2,174,456

13%

Ore Grade

Gr/MT

0.88

0.70

25%

0.64

0.65

-2%

Recovery Rate

%

24.86

38.72

-36%

28.09

34.02

-17%

Ounces Produced*

Oz

5,431

7,085

-23%

13,970

15,711

-11%

Open Pit

La Zanja

Ounces Produced

Oz

1,692

8,786

-81%

6,772

19,452

-65%

Tajo Norte
Cu - Ag

Ounces Produced

Oz

402

-

N.A.

661

181

N.A.

Coimolache

Ounces Produced

Oz

23,621

21,899

8%

39,789

61,341

-35%

Silver Production

Mining Unit

Operating Results

Unit

3Q23

3Q22

%

9M23

9M22

△ %

Underground

Tambomayo

Ore Milled

DMT

143,469

161,764

-11%

435,103

468,323

-7%

Ore Grade

Oz/MT

2.55

3.54

-28%

3.29

3.13

5%

Recovery Rate

%

82.04

96.43

-15%

85.84

95.54

-10%

Ounces Produced

Oz

301,963

546,256

-45%

1,237,001

1,399,472

-12%

Orcopampa

Ore Milled

DMT

74,026

63,736

16%

213,474

180,342

18%

Ore Grade

Oz/MT

0.13

0.17

-27%

0.14

0.18

-23%

Recovery Rate

%

75.79

73.54

3%

74.27

72.54

2%

Ounces Produced

Oz

7,168

8,247

-13%

22,028

23,437

-6%

Uchucchacua

Ore Milled

DMT

-

-

N.A.

-

-

N.A.

Ore Grade

Oz/MT

-

-

N.A.

-

-

N.A.

Recovery Rate

%

-

-

N.A.

-

-

N.A.

Ounces Produced

Oz

-

-

N.A.

-

-

N.A.

Julcani

Ore Milled

DMT

31,268

34,691

-10%

87,663

98,294

-11%

Ore Grade

Oz/MT

14.25

20.36

-30%

15.63

20.66

-24%

Recovery Rate

%

95.81

98.10

-2%

96.04

98.22

-2%

Ounces Produced*

Oz

427,269

692,876

-38%

1,317,895

1,994,565

-34%

Marcapunta

Ore Milled

DMT

776,985

794,447

-2%

2,465,994

2,174,456

13%

Ore Grade

Oz/MT

0.94

0.98

-4%

0.91

0.88

3%

Recovery Rate

%

58.70

55.65

5%

56.15

53.28

5%

Ounces Produced

Oz

428,293

442,811

-3%

1,259,899

1,036,547

22%

Open Pit

Tajo Norte
Cu - Ag

Ore Milled

DMT

354,994

-

N.A.

478,455

156,342

N.A.

Ore Grade

Oz/MT

2.58

-

N.A.

2.24

2.15

4%

Recovery Rate

%

56.71

-

N.A.

55.51

53.45

4%

Ounces Produced

Oz

601,473

-

N.A.

682,291

178,769

N.A.

Tajo Norte
Pb - Zn

Ore Milled

DMT

162,367

425,835

-62%

366,699

1,486,286

-75%

Ore Grade

Oz/MT

1.97

0.84

N.A.

1.56

1.61

-3%

Recovery Rate

%

51.94

69.56

-25%

58.92

58.29

1%

Ounces Produced

Oz

163,178

370,460

-56%

322,962

1,463,744

-78%

La Zanja

Ounces Produced

Oz

3,681

31,665

-88%

15,633

85,347

-82%

Coimolache

Ounces Produced

Oz

87,185

76,133

15%

176,755

228,832

-23%

Lead Production

Mining Unit

Operating Results

Unit

3Q23

3Q22

%

9M23

9M22

△ %

Underground

Tambomayo

Ore Milled

DMT

143,469

161,764

-11%

435,103

468,323

-7%

Ore Grade

%

0.57

1.81

-69%

0.77

1.87

-59%

Recovery Rate

%

75.05

90.25

-17%

83.41

90.82

-8%

MT Produced

MT

603

2,639

-77%

2,851

7,970

-64%

Uchucchacua

Ore Milled

DMT

-

-

N.A.

-

-

N.A.

Ore Grade

%

-

-

N.A.

-

-

N.A.

Recovery Rate

%

-

-

N.A.

-

-

N.A.

MT Produced

MT

-

-

N.A.

-

-

N.A.

Julcani

Ore Milled

DMT

31,268

34,691

-10%

87,663

98,294

-11%

Ore Grade

%

0.48

0.44

8%

0.51

0.40

26%

Recovery Rate

%

88.79

91.04

-2%

88.95

91.46

-3%

Ounces Produced*

MT

132

140

-5%

398

363

9%

Open Pit

Tajo Norte
Pb - Zn

Ore Milled

DMT

162,367

425,835

-62%

366,699

1,486,286

-75%

Ore Grade

%

1.63

1.04

57%

1.49

0.96

55%

Recovery Rate

%

34.08

41.61

-18%

40.22

39.51

2%

MT Produced

MT

885

1,781

-50%

2,160

5,584

-61%

Zinc Production

Mining Unit

Operating Results

Unit

3Q23

3Q22

%

9M23

9M22

△ %

Underground

Tambomayo

Ore Milled

DMT

143,469

161,764

-11%

435,103

468,323

-7%

Ore Grade

%

0.87

2.44

-64%

1.06

2.61

-59%

Recovery Rate

%

71.98

87.43

-18%

77.50

89.41

-13%

MT Produced

MT

913

3,446

-74%

3,614

10,910

-67%

Uchucchacua

Ore Milled

DMT

-

-

N.A.

-

-

N.A.

Ore Grade

%

-

-

N.A.

-

-

N.A.

Recovery Rate

%

-

-

N.A.

-

-

N.A.

MT Produced

MT

-

-

N.A.

-

-

N.A.

Open Pit

Tajo Norte
Pb - Zn

Ore Milled

DMT

162,367

425,835

-62%

366,699

1,486,286

-75%

Ore Grade

%

4.09

2.66

54%

3.61

2.44

48%

Recovery Rate

%

42.97

59.70

-28%

51.87

53.20

-2%

MT Produced

MT

2,849

6,403

-56%

6,661

19,321

-66%

Copper Production

Mining Unit

Operating Results

Unit

3Q23

3Q22

%

9M23

9M22

△ %

Underground

Marcapunta

Ore Milled

DMT

776,985

794,447

-2%

2,465,994

2,174,456

13%

Ore Grade

%

1.75

1.78

-2%

1.70

1.72

-1%

Recovery Rate

%

84.71

85.60

-1%

85.57

84.99

1%

MT Produced

MT

11,501

12,108

-5%

35,891

31,709

13%

Tajo Norte
Cu - Ag

Ore Milled

DMT

354,994

-

N.A.

478,455

156,342

N.A.

Ore Grade

%

2.86

-

N.A.

2.49

1.13

N.A.

Recovery Rate

%

59.71

-

N.A.

59.89

61.97

-3%

MT Produced

MT

7,325

-

N.A.

8,387

1,096

N.A.

APPENDIX 3: Adjusted EBITDA Reconciliation (in thousand US$)

3Q23

3Q22

9M23

9M22

Net Income

-24,498

-22,487

42,953

547,593

Add / Subtract:

77,758

44,733

78,961

-151,322

Income from sale of investment in Yanacocha

0

0

-

300,000

Depreciation and Amortization in cost of sales

51,264

41,477

121,816

131,531

Provision (credit) for income tax, net

-1,264

-16,296

-2,070

-35,198

Interest expense

13,381

12,641

43,455

42,092

Loss (gain) on currency exchange difference

31,176

27,961

-3,450

3,086

Provision of bonuses and compensations

4,447

7,260

10,391

11,964

Loss (gain) from discontinued operations

167

-62

-439

-479,869

Workers' participation provision

2,899

-2,666

4,691

271

Depreciation and amortization in administration expenses

651

600

1,943

1,816

Depreciation and Amortization in other, net

30

25

79

76

Provision (reversal) for contingencies

-240

1,960

-5,534

3,805

Share in associated companies by the equity method, net

-46,375

-20,442

-113,368

-118,149

Write-off of fixed assets

632

4

870

322

Impairment (reversal) of inventories

23,112

-6,392

26,650

-1,508

Interest income

-2,122

-1,337

-6,073

-11,561

EBITDA Buenaventura Direct Operations

53,260

22,246

121,914

396,271

EBITDA Cerro Verde (19.58%)

95,953

52,321

296,566

261,100

EBITDA Coimolache (40.095%)

3,528

3,667

-3

12,392

EBITDA Buenaventura + All Associates

152,741

78,235

418,477

669,763

*Cerro Verde’s EBITDA accounts for D&A related to the capitalization of the stripping.

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 (Cerro Verde), plus (2) 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.

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.

Operations’ Cost applicable to sales does not include operating cost for those months during which Buenaventura’s operations were suspended due to COVID-19, as these have been classified as "Unabsorbed costs due to production stoppage" within the financial statements.

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 twelve months ended December 31, 2022 and 2021 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 twelve months ended December 31, 2021 and 2022 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 September 30

For the 9 months ended September 30

2023

2022

2023

2022

(in thousands of US$)

Consolidated Cost of sales excluding depreciation and amortization

136,195

118,419

342,171

337,503

Add:

Consolidated Exploration in units in operation

12,418

20,708

39,051

53,629

Consolidated Commercial deductions

51,260

42,039

134,651

137,887

Consolidated Selling expenses

4,277

5,854

12,745

15,490

Consolidated Cost applicable to sales

204,150

187,020

528,618

544,509

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 September 30

For the 9 months ended September 30

2023

2022

2023

2022

Cost of sales by mine and mineral

(in thousands of US$)

Julcani, Gold

71

43

123

12

Julcani, Silver

7,761

6,843

21,670

20,965

Julcani, Lead

181

130

513

302

Julcani, Copper

99

68

296

211

Orcopampa, Gold

17,987

12,207

52,819

41,227

Orcopampa, Silver

69

51

195

233

Orcopampa, Copper

0

0

0

0

Uchucchacua, Gold

0

0

0

0

Uchucchacua, Silver

0

0

0

0

Uchucchacua, Lead

0

0

0

0

Uchucchacua, Zinc

0

0

0

0

Tambomayo, Gold

11,899

8,430

29,626

25,782

Tambomayo, Silver

5,758

3,434

15,406

9,584

Tambomayo, Zinc

1,020

1,757

2,982

14,353

Tambomayo, Lead

0

4,578

2,979

6,034

La Zanja, Gold

1,909

14,961

11,009

33,201

La Zanja, Silver

112

647

597

1,771

El Brocal, Gold

3,367

5,089

7,489

8,531

El Brocal, Silver

10,936

6,818

19,045

21,345

El Brocal, Lead

610

1,523

1,654

4,541

El Brocal, Zinc

2,485

9,404

5,428

27,179

El Brocal, Copper

66,626

47,037

153,802

119,290

Non Mining Units

5,305

-4,601

16,538

2,942

Consolidated Cost of sales, excluding depreciation and amortization

136,195

118,419

342,171

337,503

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 September 30

For the 9 months ended September 30

2023

2022

2023

2022

Exploration expenses in units in operation by mine and mineral

(in thousands of US$)

Julcani, Gold

16

11

28

3

Julcani, Silver

1,793

1,716

4,937

4,781

Julcani, Lead

42

33

117

69

Julcani, Copper

23

17

67

48

Orcopampa, Gold

1,434

3,328

4,697

9,499

Orcopampa, Silver

6

14

17

54

Orcopampa, Copper

0

0

0

0

Uchucchacua, Gold

0

0

0

0

Uchucchacua, Silver

6,661

6,536

20,592

15,531

Uchucchacua, Lead

0

0

0

-182

Uchucchacua, Zinc

0

0

0

0

Tambomayo, Gold

459

1,424

1,304

3,694

Tambomayo, Silver

222

580

678

1,373

Tambomayo, Lead

39

297

131

865

Tambomayo, Zinc

0

774

131

2,057

La Zanja, Gold

103

1,056

415

2,454

La Zanja, Silver

6

46

23

131

El Brocal, Gold

65

355

236

625

El Brocal, Silver

210

476

601

1,564

El Brocal, Lead

12

106

52

333

El Brocal, Zinc

48

656

171

1,991

El Brocal, Copper

1,280

3,282

4,853

8,739

Non Mining Units

0

0

0

0

Consolidated Exploration expenses in units in operation

12,418

20,708

39,051

53,629

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 September 30

For the 9 months ended September 30

2023

2022

2023

2022

Commercial Deductions in units in operation by mine and mineral

(in thousands of US$)

Julcani, Gold

4

2

7

-6

Julcani, Silver

549

352

1,273

1,496

Julcani, Lead

12

6

29

22

Julcani, Copper

6

4

16

13

Orcopampa, Gold

215

217

826

608

Orcopampa, Silver

1

0

0

13

Orcopampa, Copper

0

0

0

0

Uchucchacua, Gold

0

0

0

0

Uchucchacua, Silver

753

1,340

3,299

1,837

Uchucchacua, Lead

0

12

0

7

Uchucchacua, Zinc

0

0

0

272

Tambomayo, Gold

1,274

1,414

4,071

4,998

Tambomayo, Silver

685

738

2,355

2,439

Tambomayo, Lead

70

285

351

1,128

Tambomayo, Zinc

301

3,027

1,756

11,282

La Zanja, Gold

6

131

86

211

La Zanja, Silver

3

23

9

28

El Brocal, Gold

2,114

2,607

5,025

5,561

El Brocal, Silver

5,888

3,229

11,634

12,325

El Brocal, Lead

193

719

608

2,328

El Brocal, Zinc

1,906

3,672

4,379

16,214

El Brocal, Copper

37,280

24,260

98,928

77,110

Non Mining Units