BVN Compania De Minas Buenaventura SA

Julcani (100% owned by Buenaventura)

Julcani 1Q22 silver production was in line with 1Q21 production. 1Q22 Cost Applicable to Sales (CAS) was 15.03 US$/Oz; an 8% year on year decrease due to a 30% decrease in commercial deductions. COVID related expenses decreased by US$ 0.9 million year on year.

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Compañía de Minas Buenaventura S.A.A.

First Quarter 2022 Results

Page 6 of 22

1Q22 General and Administrative expenses were US$ 18.5 million; a 9% increase as compared to US$ 17.0 million in 1Q21.

1Q22 Non-Operating Area exploration costs were US$ 2.0 million, compared with US$ 1.7 million in 1Q21. During the first quarter 2022, Buenaventura focused exploration primarily within its Emperatriz project (La Zanja), resulting in US$ 0.6 million in exploration costs during 1Q22. Increased exploration during the quarter is aligned with Buenaventura´s strategy to maintain a pipeline of new discoveries and projects.

1Q22 currency exchange related net gain was US$ 47.8 million, compared with a net loss of US$ 1.4 million in 1Q21 due to a year on year strengthening of the PEN relative to the US dollar (3.975 PEN/USD in 2021 vs 3.695 PEN/USD in 2022). SUNAT’s claim is registered in Peruvian Soles as part of Buenaventura’s ‘accounts receivables’, therefore, a lower exchange rate increases the total amount when converted to US dollars.

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APPENDIX 1

Equity Participation in Subsidiaries and Associates (as of March 31, 2022)
	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

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

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Compañía de Minas Buenaventura S.A.A.

First Quarter 2022 Results

Page 12 of 22

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, 2020 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, 2020 and 2021 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.

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

*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.

Notes:

1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.

2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 100% from La Zanja and 40.095% from Tantahuatay.

3. For all metals produced.

4. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.