Buenaventura Announces Third Quarter and Nine-Month Period 2015 Results

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, announced today results for the third quarter (3Q15) and nine-month (9M15) periods, ended September 30, 2015. 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 2015 Highlights:

• In 3Q15, EBITDA from direct operations was US$6.9 million and adjusted EBITDA (including associated companies) was US$73.5 million.
• Total attributable production (including associates) in 3Q15 was 197k gold ounces and 5.8 million silver ounces (compared to 217k gold ounces and 5.2 million silver ounces in 3Q14).
• At the Tambomayo project, 100% of mayor equipment has been purchased. Operations are expected to start in 3Q16.
• At the San Gabriel (Chucapaca) project, the Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 1Q16.
• During 3Q15, El Brocal average ore treated reached 15K TPD level. Full production capacity level (18K TPD) will be reached in 4Q15.
• Cerro Verde’s plant expansion to 360K TPD is in-line with schedule and budget (more than 95% complete). Full plant capacity is expected to be reached in 1Q16.

(*) as of September 30, 2015 Buenaventura had 254,186,867 outstanding shares.

Operating Revenues

During 3Q15, net sales were US$200.1 million, a 35% decrease compared to the US$306.7 million reported in 3Q14. This was mainly explained by the decrease in gold, silver and copper prices as well as lower gold and copper volume sold.

Royalty income decreased 9%, to US$8.7 million in 3Q15 compared to the US$9.5 reported in 3Q14. This was due to lower revenues at Yanacocha (13% lower QoQ).

(1) Buenaventura’s Direct Operations

(2) The realized price considers the adjustments of quational periods

For 9M15, net sales decreased 21%, from US$874.4 million in 9M14 to US$692.0 million in 9M15. Royalty income was US$25.2 million in 9M15 in-line with the figure reported in 9M14.

Production and Operating Costs

In 3Q15, Buenaventura’s gold equity production from direct operations decreased 16%, from 108,432 ounces in 3Q14 to 91,188 ounces in 3Q15 due to the decline in production at Breapampa mine. Gold production including associated companies was 197,019 ounces, 9% lower than the reported in the same period 2014. Silver equity production from direct operations increased 11%, mainly due to higher production at Uchucchacua mine.

1 Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 54.07% of El Brocal and 40.10% of Coimolache (Tantahuatay).

Orcopampa’s (100% owned by Buenaventura)

Gold production at Orcopampa increased 3% in 3Q15 (compared to 3Q14) due to higher ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 3Q15 decreased 23% explained by lower contractor costs (renegotiated unit prices) and lower reagent costs (price of cyanide).

Gold production guidance for 2015 is 190k – 205k ounces.

Uchucchacua (100% owned by Buenaventura)

Silver production in 3Q15 increased 15% compared to 3Q14, due to higher ore treated. Cost Applicable to Sales (CAS) in 3Q15 decreased 24% compared to 3Q14, mainly explained by lower consumable costs (reagents, ball bearings and blasting materials) and lower hauling costs (mine infrastructure improvements).

Silver production guidance for 2015 is 14.0 million – 14.5 million ounces.

Mallay (100% owned by Buenaventura)

Silver production in 3Q15 increased 5% compared to 3Q14, due to higher ore treated despite the lower grade (Appendix 2). Cost Applicable to Sales (CAS) in 3Q15 was 7% lower compared to 3Q14 due to more ounces produced and lower exploration expenses.

Silver production guidance for 2015 is 1.1 million – 1.3 million ounces.

Julcani (100% owned by Buenaventura)

Silver production in 3Q15 increased 3% compared to 3Q14 production, due to higher ore treated despite the lower grade (Appendix 2). Cost Applicable to Sales (CAS) in 3Q15 was 21% lower than 3Q14, mainly due to lower exploration expenses.

Silver production guidance for 2015 is 2.9 million – 3.1 million ounces.

La Zanja’s (53.06% owned by Buenaventura)

Gold production in 3Q15 decreased 1% compared to 3Q14. CAS in 3Q15 increased 22% mainly due to higher ore hauling costs explained by the longer distance between the Pampa Verde Pit and the leaching pad compared to the San Pedro Sur Pit. In 3Q15, 95% of the production came from the Pampa Verde pit in contrast to 50% in 3Q14.

Gold production guidance for 2015 is 138k – 142k ounces.

Tantahuatay’s (40.10% owned by Buenaventura)

Gold production in 3Q15 decreased 7% compared to the figure reported in 3Q14. CAS in 3Q15 increased 14% mainly due to a higher stripping ratio and preoperational stripping in the Cienaga Norte pit.

Gold production guidance for 2015 is 138k – 142k ounces

El Brocal (54.07% owned by Buenaventura)

During 3Q15, 55% of the plant capacity was used to treat pollymetalic ore and 45% to treat copper ore (compared to 8% pollymetalic ore and 92% copper ore). As a consequence, Copper production decreased 20%, silver production increased 26% and Zinc production increased 667%.

In 3Q15, Zinc CAS increased 30% compared to 3Q14 mainly due to higher commercial deductions. Copper CAS decreased 2% compared to 3Q14, mainly due to a lower ore grade.

Zinc production guidance for 2015 is 50k – 55k MT. Copper production guidance for 2015 is 30k – 35k MT.

General and Administrative Expenses

General and administrative expenses in 3Q15 were US$20.4million, 11% lower compared to the 3Q14 figure (US$23.0 million). For the nine-month period 2015, the expense was US$60.8 million (US$72.7 million in 9M14).

Exploration in Non-Operating Areas

Exploration in non-operating areas during 3Q15 was US$5.3 million compared with the US$7.2 million in 3Q14. During the period, Buenaventura’s main exploration efforts were focused on the Tambomayo project (US$3.1 million). For the nine-month period 2015, the expense was US$25.7 million (US$32.4 million in 9M14).

Share in Associated Companies

During 3Q15, Buenaventura’s share in associated companies was US$13.4 million, compared to US$23.6 million reported in 3Q14, composed by:

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 3Q15, gold production w as 242,454 ounces of gold, 3% lower than 3Q14 production (249,429 ounces). For the nine-month 2015 period, gold production was 706,433 ounces, 9% higher than 647,635 ounces in 9M14.

Gold production guidance at Yanacocha for 2015 is 880k – 920k ounces.

In 3Q15, Yanacocha reported net income of US$18.2 million compared to US$60.3 million reported in 3Q14. CAS in 3Q15 was US$630/oz, 20% higher than the US$526/oz reported in 3Q14 mainly due to a higher inventory write-down (US$19.9 million in 3Q15 compared to US$9.2 million in 3Q14) and higher workers participation.

Capital expenditures at Yanacocha were US$25.5 million in 3Q15, while for 9M15 was US$58.9 million.

Yanacocha still has a strong pipeline of growth projects: Quecher Main (prefeasibility), Chaquicocha Sulphides and Yanacocha Verde (scoping) and Maqui Maqui (exploration).

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 3Q15 copper production was 55,811 MT (10,928 MT attributable to Buenaventura), a 5% increase compared to 3Q14 (53,268 MT and 10,430 MT attributable to Buenaventura). For 9M15, copper production was 151,354 MT (29,635 MT attributable to Buenaventura).

During 3Q15, Cerro Verde reported a net profit of US$6.7 million compared to US$85.3 million in 3Q14. This was mainly due to lower sales explained by the decline in copper price (US$2.14/lb in 3Q15 vs US$2.98/lb in 3Q14), despite of the 12% increase in volume sold. For 9M15, net income was US$46.5 million (compared to US$321.7 million in 9M14).

Capital expenditures at Cerro Verde were US$385.1 million in 3Q15, and US$1,321.5 million in 9M15.

Cerro Verde’s plant expansion was 360K TPD, in-line with schedule and budget (more than 95% complete). In September 2015, one of the primary crushers and two mills started operations, resulting in the first production of copper concentrate coming from the new plant.

As of September 30, 2015, accumulated CAPEX of the expansion project was US$4.2 billion (out of US$4.6 billion budget). Full plant capacity is expected to be reached in 1Q16 and will become the largest concentration facility in the world.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to the net income in 3Q15 was US$4.1 million (US$6.3 million in 3Q14). For 9M15, the contribution was US$10.1 million, compared to US$17.2 million reported in 2014.

Project Development and Exploration

The Tambomayo Project (100% ownership)

• Detail engineering currently at 95% of development
• Civil works are expected to be completed in 3Q16
• 100% of mayor equipment has been purchased
• CAPEX: US$ 290 – 340 million (includes 100% of mine development and a plant of 1,500 TPD)

The San Gabriel Project (100% ownership)

• Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 1Q16
• Feasibility studies completed in 3Q16
• Estimated CAPEX: US$ 400 – 500 million (this includes US$81million paid to Gold Fields in 2014)
• Basic engineering of the project is expected to be ready in 1Q16
• Construction of the exploration ramp: 280 meters drifted (objective for 2015: 520 meters)

Recent events

The Company’s Board of Directors approved Buenaventura´s participation in the following El Brocal financing transactions:

• Capital increase of up to US$70 million in two trenches of US$35 million each (1st trench is mandatory and the 2nd trench is subject to El Brocal´s board of directors approval)
• Private bond issuance of US$35 million

* * *

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 and San Gabriel projects.

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 2014 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

(*)Consolidates
(**) Equity Accounting

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 six months ended June 30, 2014 and 2015, 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 six months ended June 30, 2014 and 2015 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.