2018
ANNUAL
REPORT
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2018
ANNUAL
REPORT
TABLE OF CONTENTS
20
7
23
Letter to the
Shareholders
65 Years of
History and
Long-Term Vision
Corporate
Culture
49
Other
Businesses
55
Safety
77
Operations
Summary
57
Environmental
Management
99
Shareholding
Structure
24
Strategic
Map
61
Social
Management
105
Share and
ADS Behavior
27
Operations
41
Projects
65
Economic,
Financial, and
Corporate Matters
Report
111
Financial
Statements
69
Management's
Analysis and
Discussion
117
Members of the
Management
6
LETTER TO THE
SHAREHOLDERS
2018 Annual Report 7
Dear shareholders,
In 2018, Peru continued along the path of economic
growth despite the internal political crisis and an
international conjuncture marked by a slowdown in
the world’s largest economies.
At the international level, trade tensions between the United States and China, the
moderate drop of the prices of certain commodities, and the increase in interest rates
in the United States resulted in a weakening of global trade.
According to the World Bank, the global economy registered a modest growth of 3% in
2018. While the start of the year seemed promising thanks to the rebound in manufacturing
and international trade, the subsequent months saw a loss of investor confidence due to
the imposition of higher tariffs and protectionist discourses in the world’s most developed
economies.
In the United States, President Donald Trump maintained an economic policy that bolstered
consumption and the job market with a resulting drop in unemployment (which reached
its lowest rate in the last four decades) and higher household spending. On the other hand
were the challenges posed by US foreign policy, such as its negotiations with China, the
wave of immigration, and the renegotiation of trade agreements with its main partners.
China grew by 6.6% due to the effects of trade tensions with the United States and the
government’s implementation of measures to regulate the growth of mortgage credit and
excessive investment. The Asian giant’s growth is expected to continue to gradually slow.
In the Eurozone, the economy also slowed down, reporting a rate of about 2%, with
favorable job creation and financial conditions. There was some degree of uncertainty
among economic agents, however, due to political tensions and social problems, such as
the United Kingdom’s exit from the European Union scheduled for March 2019 and social
protests in France over hikes in fuel prices.
The Latin American economy grew by 1.2%. This result was influenced by the slowdown
of the world’s largest economies, a drop in base metal and oil prices, and a lower influx
of capital to the region.
Two of the largest economies in Latin America, Brazil and Mexico, elected new presidents
who represent a change of direction for each nation. In Brazil, Jair Bolsonaro took office
with an economy in recession, high unemployment, and rampant organized crime. In
Mexico, Manuel López Obrador took over the administration of a country with a stable
economy, but with high levels of corruption, inequality, and violence.
8
2018 Annual Report On the other hand, Chile’s economy was one of the highest-performing in the region,
mainly thanks to the recovery of copper prices and corporate and consumer confidence.
In Argentina, meanwhile, the economy shrank as a result of inflation, currency devaluation,
and the international conjuncture. Colombia benefited from its oil production, which helped
drive the recovery of its economy.
Peru regained its footing in 2018, achieving a growth of around 4%, higher than the
2.5% registered in 2017. Our country continues to be one of the most solid economies
in the region, which translates to job creation and higher salaries for Peruvians.
Nevertheless, it has the potential to grow at even higher rates, which would help fight
the poverty that is still suffered by various sectors of the population.
While the Peruvian economy has proven to be resistant to turbulence over the last few
decades, the country’s institutions were put to the test in 2018 due to a chain of political
events and corruption cases that give the population a sense of disease and distrust toward
these institutions.
In March of 2018, President Pedro Pablo Kuczynski resigned from office, due, among other
factors, to the investigations of the Odebrecht case, the polarized reaction to his pardoning
of former president Alberto Fujimori, and the conflict with the Peruvian Congress, which
was dominated by the opposition party Fuerza Popular, led by Keiko Fujimori.
In this climate of uncertainty, Martín Vizcarra was sworn in as president of Peru with
a speech that called for a halt to political confrontations. He also announced a complete
shakeup of the cabinet of ministers and named the fight against corruption as his
administration’s top priority.
9
“The portfolio of private investments in
the country is estimated at US$ 19 billion,
distributed between the mining sectors
(Quellaveco, Justa, and the Toromocho
expansion), as well as in infrastructure,
hydrocarbons, electricity and industries.”
In July, a series of audio recordings disseminated by the media revealed the existence of
a network of judges, politicians, public officials, and a group of businesspeople involved
in alleged cases of influence peddling and illegal activities. This case, known as the “Los
Cuellos Blancos del Puerto” case, focused public debate on the need for urgent reforms
to the political system and the administration of justice in the country.
In his Independence Day speech to the nation, President Martín Vizcarra called for a
referendum that would allow the people to cast their vote for or against the reform of the
justice system, the immediate reelection of Congress members, a bicameral parliament,
and regulations on political party financing. The referendum results were a clear expression
of support for the president’s approach. In the following months, investigations into
connections to the Operation "Lava Jato" case in Peru implicated the highest-ranking
political leaders and public officials from previous government administrations, some of
whom are now in prison. Also, to highlight was the nationwide election of new governors
and provincial and district mayors, who will hold office for the 2019-2022 period.
Although domestic political events and the international conjuncture gave rise to a certain
degree of uncertainty and cautiousness in the market and among many companies,
they did not stop the progress of the Peruvian economy.
The driving factors behind our economy included the recovery of mining investment,
a faster pace in the implementation of public works, and the strong growth of anchoveta
fishing. The agro-export sector and formal employment also continued to grow, as well.
The portfolio of private investments in the country is estimated at US$ 19 billion, divided
among the mining sectors (Quellaveco, Justa, and Toromocho expansion) and infrastructure,
hydrocarbons, electricity, and industry.
In the World Bank’s Doing Business ranking, which measures the level of ease each country
offers in engaging in economic activities, Peru has dropped ten positions since 2017,
currently placing it at number 68 out of 190 countries, below Mexico (54), Chile (56),
and Colombia (65).
Among other important indicators for the Peruvian economy, the exchange rate at the end
of the year was S/ 3.37 soles per US dollar.
10
2018 Annual Report As of December 2018, the stock exchange registered a negative performance, most notably
with regard to the construction sector shares, although there was a certain degree of
volatility due mainly to mineral prices. The S&P/BVL Perú Select Index fell 2.54%, while
the Peru General Index declined by 7.23%.
Commodities prices fell slightly in 2018. According to the London Bullion Market Association
(LBMA), the main reference point in the precious metals market, in December the average price
of gold was US$ 1,249.89 per ounce, while in 2017, it closed the year at US$ 1,302.80 per ounce.
The price of silver was US$ 14.69 per ounce, compared to US$ 16.94 in 2017.
For its part, the London Metal Exchange (LME) reported that copper closed out 2018 at
US$ 5,964.00 per ton, compared to US$ 7,156.00 in 2017, while zinc finished the year
at US$ 2,509.50 per ton, compared to US$ 3,308.50 the previous year. For its part, lead
closed out the year at US$ 2,008.00 per ton, versus US$ 2,494.45 in 2017, while tin was
at US$ 19,475.00 per ton, not far from the US$ 19,770.00 reported the previous year.
Buenaventura’s share price rose by 11.7% over the year, closing out 2018 at US$ 16.22.
In 2018, the company reported a net loss of US$ 11.7 million, compared to a profit of
US$ 64.4 million in fiscal year 2017, due mainly to the (non-cash) expenses registered by
Cerro Verde for US$ 406.6 million (100%) basis in relation to fines and interest imposed in
lawsuits over mining royalties with the Peruvian tax administration (SUNAT).
The net debt to EBITDA ratio was reduced from 1.38x to 0.99x. The final cash position
rose from US$ 214.6 to US$ 369.2 million mainly due to the company’s new CAPEX control
initiatives.
For 2019, the global economy is expected to continue to weaken, while emerging economies
and commodity producing countries will be closely watching the outcome of trade
negotiations between the United States and China.
In Peru, the public and private sectors will face the challenge of forging a climate of
consensus, with a common agenda that enables them to firm up the route of development
and undertake reforms that result in more employment, infrastructure, and high-quality
basic services.
We must remember that the mining industry is a “price-taker” activity. As such, the year
reported on here is a demonstration of our hard work, which continued to focus on
reducing costs, increasing efficiency in all of our operating processes, and optimizing the
generation of cash flow, so that we can maximize value creation through natural resources.
For Buenaventura, 2018 was a good year: we celebrated 65 years since our founding
with a solid financial and production position, in the midst of a process to consolidate
a long-term business plan supported by our operations and projects portfolio.
11
12
The safety of our team members continued to be a critical factor, driving us to strengthen
our culture of safety to help improve our results and achieve our “zero accident” goal. With
this in mind, we continued to implement our “Pact for Life” campaign, aimed at reinforcing
compliance with critical matters that might otherwise cause serious injuries or death to
employees or their coworkers.
The Mining Safety Institute (ISEM) recognized our Tantahuatay Unit (Coimolache) as the
safest mining unit of 2018 in the open pit category, thanks to its strong safety performance.
This acknowledgment was due in part to the fact that the unit had zero fatal accidents
and over a million man-hours worked without accidents.
During 2018, our social management was focused on two major objectives: maintaining
cordial, trust-based relationships with communities located near our operations; and
promoting sustainable development as part of our emphasis on shared social responsibility.
In terms of our environmental management, we continued to apply best industry practices,
seeking to innovate in our water management and mine closure processes to guarantee the
sustainability of our operations.
As for labor matters, we closed the year with a total workforce of 15,678 workers, including
the contractors who render services at our operations.
2018 Annual Report 13
We have made significant progress in implementing synergies at our Tantahuatay and
La Zanja Units, an initiative that we are also promoting at Tambomayo and Orcopampa.
These processes will allow for the adequate and efficient management of our operations
with a reduction of costs and elimination of bottlenecks.
On the other hand, our board of directors received a diagnosis on the infrastructure and
habitability conditions in our units, and approved the work necessary to optimize levels
in these areas.
The Tambomayo Unit gained a degree of stability after entering into a collective bargaining
agreement with its workers for a term of three years. We also signed a two-year collective
bargaining agreement with the Colquijirca workers union at El Brocal.
Of course, our units hit their production goals and all projects continued to progress
smoothly.
During 2018, Tambomayo, located in Caylloma, Arequipa, produced 129,172 ounces of gold
and 3,929,808 ounces of silver, compared to 64,175 ounces of gold and 1,788,219 ounces of
silver the previous year.
14
The Orcopampa Unit, located in Castilla, which is also in Arequipa, produced 115,887 ounces
of gold compared to 190,976 in 2017. In the year in review, this unit suspended activities for
45 days to perform the necessary maintenance on the ventilation and support systems in
its underground works.
This temporary stoppage of operations forms part of our debottlenecking program,
optimizing employee safety and complying with our production plans for the coming years.
With this goal in mind, the decision was made to centralize the mining operation at
Orcopampa in order to increase productivity and reduce costs in those areas where we
have the best geological potential and infrastructure. As such, exploration continued to
concentrate on the Pucará, María Isabel, and Ocoruro veins above the 3,540 level. The initial
results of this campaign have been encouraging, and it is expected to conclude during 2019.
Our open pit units in Cajamarca performed according to plan. La Zanja produced
71,630 ounces of gold compared to 127,118 ounces the previous year, while. Coimolache
totaled 173,192 ounces of gold, compared to 151,454 ounces in 2017.
It should be noted that we have decided to modify the production plan for La Zanja in order
to extend its life of mine until 2021. This will help us develop the new exploration projects
Luciana (gold) and Emperatriz (copper).
Also of note is the continuation of the agreement reached with Gold Fields to process the
gold ore extracted by said company at the Coimolache processing plant. We also continue
to study the Coimolache Sulfides project, a copper deposit located beneath the current gold
oxide operating zone.
Uchucchacua, located in Oyón, in the highlands of Lima, achieved a production of
15,420,102 ounces of silver, compared to the 16,583,698 ounces produced the previous
year; along with 19,122 tons of lead and 21,840 tons of zinc, despite two shutdowns: one
for three days in August caused by the Community of Oyón, and the other for one day in
December due to the Sindicato de Empresas Especializadas union.
2018 Annual Report “Procesadora Industrial Río Seco produced
24,623 metric tons of manganese sulfate
as of the close of 2018, making it one of
the largest producers of this product in
the world.”
During 2018, Uchucchacua continue to reduce a series of bottlenecks related to ventilation,
hoisting, and drainage. Elsewhere, the results of the explorations and preparations at
Cachipampa have been encouraging. This zone features silver grades slightly lower than
those currently obtained, but with an interesting lead and zinc presence.
Mallay, located in Oyón, produced 514,081 ounces of silver compared to 1,109,382 ounces
registered in 2017. With a view to achieving greater profitability for the company, the
mine concentrated on exploiting the mechanized mining sectors, which resulted in more
available processing capacity to work partially on the ore from the Uchucchacua Unit.
This decision explains the decrease in annual production.
Julcani, our very first mine ever, located in Huancavelica, produced 2,482,907 ounces of
silver compared to 2,249,527 ounces the previous year. At this mining unit, we have decided
to reduce the processing volume so we can focus on more accessible zones with higher
grades, thus diminishing the dilution.
El Brocal (61.43% BVN), a subsidiary of Buenaventura that operates the Colquijirca Unit
in Cerro de Pasco, reported a production of 46,231 metric tons of copper compared to the
45,097 produced in 2017, and 45,593 metric tons of zinc compared to the 51,511 reported
the previous year.
Its lead production levels were 20,582 tons, in line with the 20,313 tons reported in 2017,
while silver production came to 3,901,869 ounces compared to
4,084,249 ounces the previous year.
In August of this year, we began operating a 20’x30’ primary mill at Concentration Plant
No. 2 in Huaraucaca. This allowed us to increase our processing rate from 300 to 470 DMT
per hour, obtaining a higher recovery of lead and zinc ore.
Procesadora Industrial Río Seco produced 24,623 metric tons of manganese sulfate as of
the close of 2018, positioning it among the largest producers of this product in the world.
In 2017, the plant reported a production of 21,402 metric tons of manganese sulfate.
Additionally, the Río Seco Center for Innovation and Technological Development continues
to work on the pilot plant to add value to copper processing.
15
16
At the Yumpaq project, situated in the Pasco region, five kilometers from our Uchucchacua
mine, we continued with exploration program and reached an agreement with the
community of Huachus for the purchase of 500 hectares.
The works aimed at defining the resources found at Yumpaq will continue during 2019,
with the scoping study expected to be finished sometime during the second half of the year.
This project will be integrated with our Uchucchacua Unit to support the expected plant
capacity increase.
2018 Annual Report On the other hand, the San Gabriel project in Moquegua continues to move forward with
the prefeasibility studies. At the same time, we are working to forge better relations
with the community and continue with the geomechanics studies that will help to define
the most appropriate mining method.
At Trapiche, our copper project in Apurímac, we hired the company M3 to conduct
prefeasibility studies. We also successfully ratified the agreements with the community
of Mollebamba.
The plan for Trapiche in 2019 consists of continuing the fieldwork aimed at improving
certainty of the resources, and then developing the models necessary to validate the
metallurgical process and the mining plan defined during the scoping stage. Additionally,
we will establish the environmental baseline so that we can begin the process for the
Environmental Impact Assessment.
Cerro Verde (19.58% BVN), in Arequipa, reported a production of 476,013 metric tons of
copper, compared to 481,810 the previous year.
Yanacocha (43.65% BVN) produced 514,564 ounces of gold compared to 534,691 ounces
in 2017.
Nevertheless, Yanacocha is developing the Quecher Main project, which will allow for the
extraction of the remaining oxide ore, thus extending its life of mine until 2027, as well as
facilitating exploration of the sulfide deposits and determining their feasibility.
As we know, the great effort dedicated to exploration is part of Buenaventura’s culture,
given that it ensures the continuity of our operations. As such, we are always at work
continuing discovering deposits, replenishing reserves, and seeking to expand.
As part of this focus, we have carried out exploration works around our mines and in
new areas.
In our underground units Orcopampa, Uchucchacua, Tambomayo, Julcani, and El Brocal,
we achieved a total advance of 33,910 meters of exploration tunnels and 288,920 meters
of diamond drill holes. In the case of the open pits units La Zanja and Coimolache reported
an advance of 9,587 meters in diamond drill holes.
17
At the Coimolache Sulfides project, we performed 23,787 meters of diamond drilling, while
at the Emperatriz and Luciana projects, and at La Zanja, we achieved 12,984 meters and
1,232 meters of diamond drilling, respectively.
Yumpaq achieved an advance of 10,927 meters of drill holes, along with 1,256 meters of
exploration ramps.
In 2018, we also made some changes to our organizational structure. In May, Buenaventura
welcomed the engineer Juan Carlos Ortiz, who took over as Vice President of Operations
for Gonzalo Eyzaguirre, who resigned from the company for personal reasons. We are
grateful to Gonzalo for all of his contributions and his dedication to Buenaventura.
Juan Carlos Ortiz is a mining engineer graduated from the Pontificia Universidad Católica
del Perú, with a master’s degree in engineering from Pennsylvania State University in the
United States. Before taking on his new role, he was the Central Technical Manager
at Volcan Compañía Minera, and before that, he was the COO at Compañía Minera Milpo.
In August 2018, Dr. José Malca La Fuente became our new Human Resources Manager,
taking over for Miguel Ángel De la Flor. Dr. Malca is an attorney at law who studied at
Pontificia Universidad Católica del Perú and obtained his Master’s in Business Law from
the Universidad de Lima.
Dr. Malca completed the Specialization Program in Finances and Business Law for
Attorneys at ESAN and the General Management Program at the Universidad de Piura
School of Management. We were also joined by Ignacio Agramunt as Innovation Manager.
Mr. Agramunt obtained his mechanical engineering degree from Pontificia Universidad
Católica del Perú and an MBA from the University of St. Gallen in Switzerland and the
University of Toronto in Canada. He also holds a MSc in Aviation Systems from the
University of Tennessee in the United States.
We are proud to note that 2018 marked our 65th year in business, and as per our tradition,
we celebrated with our people. On this occasion, we visited our Tambomayo, Orcopampa,
Coimolache, La Zanja, Julcani, El Brocal, Uchucchacua, Río Seco, Huanza, and Lima units,
as part of our efforts to pay tribute to all of our team members, who are the ones that
make the company’s development possible.
18
2018 Annual Report This was also a grateful acknowledgment to our founders who began forging this legacy
back in 1953, with a special thanks to our directors and shareholders for making it possible
for Buenaventura to become one of the leading mining companies in Peru. Last but not
least, we acknowledge the effort put by the people from the Andes—especially those in
Huancavelica—who have received us with open arms, affection, and trust. These last 65
years would never have been possible without their valuable contributions.
On behalf of the Board of Directors of Compañía de Minas Buenaventura, we would like
to thank the management, our shareholders, our suppliers, and all of our stakeholders.
Aspecial thank you goes to the team members from all of our offices, production units, and
projects located throughout the eight different regions of our country. Without your hard
work and commitment, none of this would be possible.
Sincerely,
Roque Benavides
Chairman of the Board
19
65 YEARS OF HISTORY
AND LONG-TERM VISION
Buenaventura has over 65 years of experience in exploration, development, construction, and
mine operation activities, as well as world-class joint ventures.
COPPER
› BVN acquires 11%
of El Brocal. To
date, BVN owns
61%
›
JV1:
1979
1980
SILVER
›
Founding of
Buenaventura
› Acquisition of
Julcani mine in
Huancavelica
20
1950
1953
BVN lists on Lima
Stock Exchange
1971
1967
1970
1975
1960
GOLD
Orcopampa
(1967: 75
2017: 1.5K TPD) 20x
SILVER
Uchucchacua
(1975: 150
~4K TDP) 25x
2017:
PRESIDENTS OF PERU
ODRÍA
(1948-1956)
PRADO
UGARTECHE
(1956-1962)
BELAÚNDE
(1963-1968)
VELASCO
(1968-1975)
MORALES
BERMÚDEZ
(1975-1980)
BELAÚNDE
(1980-1985)
2018 Annual Report COPPER
› Privatization
of Cerro Verde
(together with
Cyprus)
›
JV3:
(1994: 30K 2017:
500-550K Cu MT)
18x
1994
1990
Mn
Inauguration
of Río Seco
chemical plant
GOLD
First doré bar
obtained at
Tambomayo
2013
2016
GOLD
La Zanja (nearly
1M Oz Au
produced to
date)
2010
2000
2011
2014
2020
1996
1993
GOLD
›
First doré bar
obtained at
Yanacocha
(over 36M Oz
Au produced
to date)
›
JV2:
First Latin
American company
to list on the
New York Stock
Exchange
GOLD
› Coimolache:
First doré
bar obtained
(nearly 1M Oz
Au produced
to date)
›
JV3:
Huanza: Hydroelectric
plant starts commercial
operation (100 MW)
GARCÍA
(1985-1990)
FUJIMORI
(1990-2000)
TOLEDO
(2001-2005)
GARCÍA
(2006-2011)
HUMALA
(2011-2016)
KUCZYNSKI
(2016-2018)
VIZCARRA
(2018-to date)
22
2018 Annual Report CORPORATE
CULTURE
Vision
Develop mineral resources while creating the most value
possible for society.
Mission
› Be the mining company that is most preferred and most widely
accepted among communities, authorities, and the general public.
› Make the company as highly valued as possible by all of its
23
stakeholders.
Values
SAFETY
LOYALTY
Promote respect for our team members’
lives in all of our processes, operations,
and activities.
Make a commitment to the company,
its mission, vision, and values. We are
all part of the same team.
HONESTY
Act in an honest and upright manner,
without lying, deceiving, or omitting the
truth.
INDUSTRIOUSNESS
Exhibit passion for our work, doing our
best and acting efficiently, safely, and
responsibly.
RESPECT
Be considerate and treat others with
courtesy and respect for their ideas,
culture, and rights.
TRANSPARENCY
Be truthful, clear, prompt,
and unambiguous in all of our
communications and actions.
STRATEGIC MAP
24
T
R
O
P
P
U
S
SAFETY
PERSONNEL
MANAGEMENT
SOCIAL
MANAGEMENT
ENVIRONMENTAL
MANAGEMENT
TECHNOLOGY AND
INNOVATION
ENERGY
COMMUNICATIONS
MAIN
OFFICE
OPERATIONS
PROJECTS
2018 Annual Report VALUE
GOLD
SILVER
BASE
METALS
› La Zanja
› Yanacocha
› Tambomayo
› Orcopampa
› Coimolache
› Uchucchacua
› Mallay
›
Julcani
› Cerro Verde
› El Brocal (Marca Punta & Tajo Norte)
25
GOLD
› Quecher Main
› San Gabriel
SILVER
› Yumpaq
BASE
METALS
› Marcapunta Norte - Sur
› Yanacocha Sulfides
› Coimolache Sulfides
› Trapiche - El Faique
› San Gregorio
› Río Seco (Cu-As)
26
2018 Annual Report OPERATIONS
During 2018, Compañía de Minas Buenaventura S.A.A.
operated nine mining units, of which six are underground
(Orcopampa, Uchucchacua, Julcani, Tambomayo, Mallay,
and Marcapunta) and three are open pit (La Zanja,
Coimolache, and Tajo Norte).
27
Tambomayo
(100% BVN)
Tambomayo is an epithermal deposit with
quartz veins and mineralization, mainly
gold-silver, with significant lead and zinc
content. The mining unit is located in the
province of Caylloma, in the Arequipa
region.
The main structure is the Mirtha vein,
which runs NW-SE. At its SE end are the
Paola and Paola Norte veins. These three
veins account for 85% of the total mineral
resources of this deposit.
The explorations performed to date show
evidence of economic mineralization up
to 4,300 meters above sea level (masl),
which means 650 vertical meters and 1,200
horizontal meters, thus representing a great
deal of geological potential to be explored
in the structures associated with this
primary system.
In 2018, this operation processed 557,364
DMT with 7.75 g/t Au, 8.11 oz/t Ag, 1.49% Pb,
and 2.16% Zn, recovering 129,172 ounces of
gold, 3,929,808 ounces of silver, 4,220 FMT
of lead, and 8,685 FMT of zinc. The cost
applied to annual average sales was
US$ 626/oz of gold.
28
INFO
At Tambomayo,
557,364
DMT
of ore was processed last year
The mineral reserves calculated as of
December 31, 2018, total 3,391,051 DMT,
with 0.120 oz/t of gold (3.74 g/t),
4.17 oz/t of silver, 0.73% lead and 1.06%
zinc, which represent 408,236 ounces of
gold, 14,132,877 ounces of silver, 24,755 MT
of lead, and 35,945 MT of zinc (see Table 2).
The measured and indicated resources total
674,761 DMT, with 0.143 oz/t of gold
(4.46 g/t), 6.20 oz/t of silver, 0.65% lead,
and 1.01% zinc, which represent 96,703
ounces of gold, 4,183,518 ounces of silver,
4,386 MT of lead, and 6,815 MT of zinc.
During 2018, a total of 5,631 meters of
mining work and 52,012 meters of diamond
drilling were performed. This program
was focused on finding the exploration of
known structures within the operation and
recategorizing and extending the resources
(infill drilling). Explorations were primarily
performed on two fronts: Gisela–Catalina
and Fátima–Los Diques, in which work is
being done on intersections with the goal
of starting new exploration fronts around
the current operating zone, between levels
4540 and 3430. In 2019, we will continue to
explore these new areas.
In the processing plant, starting on
November 26, 2018, we began changing
over the leaching plus flotation process to
a flotation plus concentrate cyanidation
process (the start of concentrate
cyanidation will be in February 2019),
which will allow us to reduce cyanide
consumption.
2018 Annual Report INFO
Orcopampa has
922,300
DMT
of mineral reserves as of
December 2018
29
Exploration activities were focused on
the area between the Nazareno Vein and
the Pucará Vein system, via mining works
and diamond drilling between levels 3690
and 3340.
In 2018, we managed to recover 6,153.88
oz Au and 72,910.79 oz Ag via flotation.
The concentrate obtained came to 3.78 oz
of Au/t, 44.74 oz of Ag/t, and an RC of 217.
These results exceeded expectations for the
year, increasing Au recovery via flotation by
1.7% and maintaining the general recovery
rate, closing out the year with 97.1% for Au
and 83.48% for Ag.
Orcopampa
(100% BVN)
During 2018, the Orcopampa Unit, located in
the province of Castilla, Arequipa, processed
353,891 DMT of ore with a grade of 0.32
oz/t of gold (9.98 g/t) and 1.03 oz/t of silver,
recovering 115,887 ounces of gold and
312,250 ounces of silver in doré bars. The
cash cost was US$ 1,020.00/oz Au.
The mineral reserves of the Orcopampa
Unit, as of December 31, 2018, totaled
922,300 DMT with 0.33 oz/t of gold
(10.30 g/t Au) and 1.01 oz/t of silver, which
represent contents of 305,512 ounces of
gold and 931,523 ounces of silver.
The indicated mineral resources of the Unit
as of the close of the year total 326,988
DMT with 0.571 oz/t of gold (17.77 g/t) and
0.72 oz/t of silver, which represent 186,785
ounces of gold and 235,439 ounces of silver.
Over the course of this year, 9,983.73
meters of mining exploration works
were performed, and 86,415.20 meters
of diamond drilling were implemented,
focused mainly on exploration and
infill drilling towards the Pucará Sur,
Pucarina, María Isabel, Nazareno,
Ariana, Alondra, Melina, Prometida R1,
and Prometida R2 Veins.
Compañía Minera
Coimolache S.A.
(40.095% BVN)
Tantahuatay
Buenaventura is in charge of operating
Compañía Minera Coimolache S.A. (40%
BVN, 44% SPCC, and 16% ESPRO), which
operates the Tantahuatay Mine, located in
the district of Hualgayoc, in the province of
the same name, 50 kilometers north of the
city of Cajamarca.
During 2018, mining was carried out in
the Tantahuatay 2 and Ciénaga Norte pits,
from levels 3868 to 3988 and 3916 to 3988,
respectively.
A total of 13,384,291 DMT of oxide ore was
sent to the leach pad with grades of
0.019 oz/t of gold (0.578 g/t) and
0.243 oz/t of silver (7.550 g/t), of which
2,092,555 DMT of oxides were hauled from
Goldfields. The production of fine metals
totaled 173,192 ounces of gold and
791,181 ounces of silver. The average annual
cash cost was US$ 675.00/oz of gold.
Drilling in oxides came to 9,712 meters of
diamond drill holes, which were focused on
the operating areas of Tantahuatay 2, Ciénaga
30
INFO
The measured and indicated
oxide ore resources total
16,741,505
DMT
Norte, and the Tantahuatay 5, Tantahuatay 3,
and Azufre projects.
Another part of the diamond drilling was
focused on explorations for primary and
secondary sulfides, for a total of 23,787
meters. These were implemented in the
areas of Tantahuatay 2, 3, 4, and 5, Mirador
Sur, and Ciénaga Norte.
As of December 31, 2018, the proven and
probable oxide ore reserves at Tantahuatay
total 57,715,191 DMT with grades of
0.012 oz/t of gold (0.359 g/t) and 0.310 oz/t
of silver (9.652 g/t), which represent
665,824 ounces of gold and
17,910,013 ounces of silver.
This result includes six mineral deposits,
two of which contributed to production
(Tantahuatay 2 and Ciénaga Norte), and the
Mirador Norte, Mirador Sur, Tantahuatay 2
(Northwest Extension), and Tantahuatay 5
projects. This last project is a new one, placed
in reserve at the Unit in 2018. The calculation
of reserves in the deposits was performed
for an economic pit of US$ 1,300/oz Au. As of
the close of 2018, there is still ore in the pad,
counted as Inventory in Pad with a total
of 3,911 ounces of gold and 56,591 ounces
of silver.
The measured and indicated oxide ore
resources as of December 31, 2018 total
16,741,505 DMT with 0.009 oz/t of gold
(0.294 g/t) and 0.215 oz/t of silver (6.714 g/t),
which represent 158,199 ounces of gold and
3,613,956 ounces of silver. Extractions in the
leach pad for 2018 were as follows: gold 70%
and silver 25%. Cumulative extractions in
the leach pad from the start of operations
through December 31, 2018, are as follows:
gold 77.60% and silver 18.13%. Construction
was completed on the Ciénaga Norte plant,
which consists of a leach pad, pregnant
solution ponds, and ten activated carbon
columns to process the ore from the
Ciénaga pit.
2018 Annual Report Minera
La Zanja S.R.L.
(53.06% BVN)
Minera La Zanja S.R.L., a subsidiary of
Buenaventura, is located in the district
of Pulán, province of Santa Cruz, 107 km
northwest of the city of Cajamarca.
In 2018, operations were focused on the
San Pedro Sur pit, working between levels
3522 and 3414 in the Cecilia-Turmalina zone
and the north sector of the pit (Mariela)
between levels 3306 and 3260. In the
Pampa Verde pit, a lower tonnage of
Stage III was mined between levels 3402
and 3270.
A total of 5,702,881 DMT of ore from the
Pampa Verde and San Pedro Sur pits was
sent to the leach pad with 0.015 oz/t of gold
(0.461 g/t) and 0.235 oz/t of silver (7.309
g/t), recovering 71,630 ounces of gold and
217,174 ounces of silver.
Since operations began at La Zanja in 2010,
1,050,816 ounces of gold and 2,650,639
ounces of silver have been produced.
The mineral reserves of the open pits total
3,119,845 DMT, with 0.012 oz/t (0.364 g/t)
of gold and 0.227 oz/t (7.065 g/t) of silver,
representing 36,554 ounces of gold and
708,676 ounces of silver. Additionally, in
pads and plant, there is an inventory of
10,984 recoverable ounces of gold and
INFO
At La Zanja,
5,702,881
DMT
of ore were sent to the
leach pad
209,744 ounces of silver, bringing the total
reserves to 918,420 ounces of silver and
47,538 ounces of gold.
The measured and indicated remaining
oxides resources total 28,154,969 DMT,
with 0.012 oz/t of gold (0.371 g/t)
and 0.21 oz/t of silver (6.407 g/t),
representing 336,005 ounces of gold
and 5,787,879 ounces of silver.
In 2018, Mine Geology drilled 1,430.80
meters of diamond drill holes at Pampa
Verde and San Pedro Sur. The Explorations
area also drilled a total of 12,984.20 meters
of diamond drill holes at the Corredor
Emperatriz project, of which 10,828.90
meters were performed in the Emperatriz
Central sector.
31
32
Minera
Yanacocha S.R.L.
(43.65% BVN)
Gold production during 2018 totaled
515,000 ounces vs. 535,000 ounces
produced in 2017. Silver production came to
1.076 million ounces vs. 1.039 million ounces
in 2017. Over the course of this year, the
gold mill processed 5.5 million dry metric
tons of ore, with an average grade of 2.01
grams per ton and a gold recovery of 75.4%,
obtaining a gold production of 268,000
ounces, compared to 239,000 ounces in
2017. The higher production was due to the
higher tonnage processed, with 5.5 million
vs. 5.1 million in 2017, lower soluble copper
content, and higher recovery compared to
2017. The ore discharged in the leach pads
in 2018 totaled 23.0 million dry metric tons,
higher than the 21.8 million tons deposited
in 2017, due to the higher ore extraction
from Tapado Oeste Layback and Quecher
Main, with a gold production of 247,000
ounces, lower than the 296,000 ounces
produced in 2017.
The proven and probable reserves of
Minera Yanacocha as of December 31, 2018,
total 7.4 million ounces of gold, 104.6 million
ounces of silver, and 0.66 million MT of
copper.
As of December 31, 2018, resources totaled
7.5 million ounces of gold, 27.9 million
ounces of silver, and 0.03 million MT
of copper.
Yanacocha’s CAPEX in 2018 totaled
US$ 119 million, with the major capital
expenditures including the Quecher Main
project, the Chaquicocha Underground
exploration tunnel, the capitalizable
components for the bigger fleet, and the
project engineering for the EWTP LQ
Upgrade.
With a concurrent mine closure expense of
US$ 20.6 million, Quecher Main is the bridge
to ensure the continuity of operations at
Yanacocha, contributing 1.3 million ounces
of gold. It consists of two leach pads,
Carachugo 11, with an area of 5 ha,
and Carachugo 14, with an area of 57 ha;
a pumping station, an operating pond and
a storm events pond; a pit; and the related
mine development works. It will be in the
process of implementation for six years, and
is expected to continue operating until 2027.
Work in 2018 started with the foundations
of the Carachugo 14 leach pad, and ended
with the construction of Carachugo 11. For
2019, the approved capitalizable cost is
US$ 128 million, which mainly includes
INFO
Yanacocha's CAPEX in 2018
totaled
US$ 119
million
2018 Annual Report local job opportunities at the Quecher Main
project and expanding the availability of
water resources in both rural and urban
areas of Cajamarca.
Finally, in 2018, Minera Yanacocha continued
to maintain and improve its Environmental
Management System, certified under
the ISO 14001:2015 standard; its quality
control and environmental assurance
laboratory management, accredited under
the ISO 17025:2017 standard; and its
processing activity controls, certified under
the International Cyanide Management
Code. These improvements were focused
on adequately managing water use in its
operations, optimizing water discharge
in line with its focus on basins and social
needs, and optimizing waste management
and operational improvements in its
processes.
33
20 ha of the Carachugo 14 leach pad for
the Quecher Main project; the construction
of the EWTP Plant upgrade; and minor
modifications to the processing plants. The
construction of the EWTP LQ Plant upgrade
includes the installation of new equipment
to achieve the required design flow volume.
The Yanacocha Sulfides project is located in
the current operating zone, and involves the
processing of sulfide ore for the production
of copper and gold, which will substantially
extend the mine’s life.
In 2018, the north tunnel of Chaquicocha
was completed, with a length of 930
meters, to explore this zone. Work was
finished according to schedule and without
accidents. Work was also begun on the
Central exploration tunnel, with a length
of 620 meters, of which 233 meters were
implemented. This tunnel is scheduled
for completion in the second quarter of
2019. Diamond drilling was also carried
out in Chaquicocha Underground, where
18,400 meters were drilled in the south
exploration tunnel, 6,100 meters in the
north exploration tunnel, and 1,900 meters
in Chaquicocha Main. Additionally, the
prefeasibility studies were finished for
the Yanacocha Sulfides project, and the
feasibility stage is scheduled for completion
in the first quarter of 2019, before
continuing with the final study stage.
Yanacocha continued working with local
communities in the area of influence of
the Yanacocha Sulfides project, creating
Thus, a total of 15,420,102 ounces of silver,
19,122 FMT of lead, and 21,840 FMT of zinc
were obtained. The average annual cash
cost for 2018 was US$ 10.41/oz Ag
(see Table 1).
The mineral reserves of Uchucchacua, as of
December 31, 2018, total 11,940,975 DMT
with 7.69 oz/t of silver, 1.12% lead, 1.79%
zinc, and 5.01% manganese, which represent
contents of 91,843,785 ounces of silver,
133,739 MT of lead, and 213,743 MT of zinc
(see Table 2).
The measured and indicated resources
total 2,617,160 DMT, with 10.84 oz/t of
silver, 1.27% lead, 2.15% zinc, and 7.44%
manganese, which makes for 28,366,686 oz
of silver, 33,238 MT of lead, and 56,269 MT
of zinc (see Table 3).
Explorations were performed with the
advance of 8,523 meters of mining work and
95,476 meters of diamond drilling, focused
mainly on the sectors of Cachipampa and
Socorro. The Uchucchacua processing plant
maintained a tonnage of 4,000 DMT/D
(2,800 DMT/D in Circuit I and 1,200 DMT/D
in Circuit II).
The cyanidation plant stopped halted
operations on March 9, due to the direct
sale of pyrite concentrates to Chinese
refineries.
INFO
As of December 31, mineral
reserves totaled
11,940,975
DMT
34
Uchucchacua
(100% BVN)
The Uchucchacua Unit is located in the
district of Oyón, province of Oyón, Lima
region. It is an underground mining
operation that produces silver, lead,
and zinc.
In 2018, a total of 1,387,775 DMT was
treated, with 12.48 oz/t of silver, 1.60% lead,
and 2.23% zinc from ore from the Socorro,
Carmen, Casualidad, and Huantajalla Mines.
2018 Annual Report Mallay
(100% BVN)
The Mallay Mine, located in the Province
of Oyón, in the highlands north of Lima,
treated a total of 92,450 DMT in its
processing plant, with 6.33 oz/t of silver,
2.28% lead, and 5.30% zinc, recovering
514,081 ounces of silver, 1,768 FMT of lead,
and 4,151 FMT of zinc. The average annual
cash cost was US$ 11.50/oz of silver
(see Table 1).
Mineral reserves as of December 31, 2018,
totaled 133,889 DMT, with 6.56 oz/t of
silver, 3.67% lead, and 6.74% zinc, which
represent 878,341 ounces of silver, 4,910
MT of lead, and 9,029 MT of zinc (see
Table 2) contained in the Isguiz Body, the
María, Dana, and Denisse Systems, and the
Maricruz Vein.
The measured and indicated mineral
reserves totaled 6,762 DMT, with 7.37
oz/t of silver, 2.23% lead, and 3.42% zinc,
containing 49,860 ounces of silver, 151 MT
of lead, and 231 MT of zinc (see Table 3).
35
INFO
The average annual cash cost
was
US$ 11.50/
oz of silver
Julcani
(100% BVN)
The Julcani Unit is located in the province of
Angaraes, department of Huancavelica. This
underground operation essentially produces
silver, with lead and gold content.
In 2018, 109,025 DMT of ore was processed
from the Acchilla Mine, with a head grade
of 23.35 oz/t of silver, 0.040 g/t of gold,
1.01% lead, and 0.16% of copper, recovering
2,482,907 ounces of silver, 1,048 FMT of
lead, and 169 FMT of copper. The average
annual cash cost was US$ 14.98/oz Ag.
Mineral reserves as of December 31, 2018,
between the Acchilla and Estela Mines,
total 251,187 DMT, with 21.37 oz/t of silver,
0.006 oz/t of gold, 2.04% lead, and 0.47%
of copper. This represents 5,367,587 oz of
silver, 1,394 oz of gold, 5,127 MT of lead,
and 1,183 MT of copper. Of the total
reserves, 77% correspond to the Acchilla
Mine and the remaining 23% correspond to
the Estela Mine.
The indicated mineral resources total
154,876 DMT, with 22.04 oz/t of silver, 1.18%
lead, and 0.35% of copper, with contents of
3,414,006 ounces of silver, 1,828 MT of lead,
and 535 MT of copper.
The new mineral found this year totaled
87,883 DMT, with 22.67 oz/t of silver, 1.42%
lead, and 0.30% of copper.
In 2018, a total of 8,361 meters of
explorations were implemented with mining
work, and 25,172 meters with diamond
drilling, focused mainly in the Acchilla Mine
(Santa Fe, Tilsa 3, Jesús, Yamila, Sandra,
and Tina Veins) and on the exploration
of the Taype Galindo zone (Lucrecia and
Elena areas), where there is a definitive
explorations program for 2019.
The processing plant achieved a recovery
of 97.4% for silver and 93.6% for lead, with
grades of 761.0 oz/t Ag and 31.8% Pb in the
concentrate.
36
INFO
The new mineral discovered
this year totaled
87,883
DMT
2018 Annual Report Sociedad Minera
Cerro Verde S.A.A.
(19.58% BVN)
The Cerro Verde production unit is operated
by Freeport–McMoRan, and is located
30 km southwest of the city of Arequipa,
in the districts of Uchumayo and
Yarabamba.
In 2018, it processed 141.5 million DMT via
flotation, which compares favorably to the
131.4 million DMT produced in 2017, with
a head grade of 0.383% copper, producing
2.001 million DMT of copper concentrate
with an average grade of 22.80% copper
and a recovery of 84.3%. Of this recovery,
production totaled of 961,846,000
pounds of copper, 27,521,000 pounds of
molybdenum, and 4.55 million ounces
of silver contained in the concentrates.
Additionally, a total of 87.58 million pounds
of copper was produced in the form of
cathodes. The cash cost was US$ 1.551 per
pound of copper and the total cost was
US$ 1.860 per pound of copper produced.
In 2018, sales totaled US$ 3.054 billion, with
a net profit of US$ 119.7 million. The long
-term debt was reduced from
US$ 1.268 billion to US$ 1.023 billion.
Investments totaled US$ 280.2 million in
capital projects, compared to US$ 171.6
million invested in 2017.
INFO
Sales in 2018 achieved
a net profit of
US$ 119.7
million
Since 2009, Cerro Verde has been involved
in a dispute with the tax authority over the
collection of royalties for December 2006
and subsequent periods through December
31, 2013. Fiscal years 2012 and 2013 are
currently being audited. For December
2006, 2007, and 2008, Cerro Verde is
currently paying the royalties determined
by SUNAT in installments.
This year, Cerro Verde availed itself of two
installment payment programs for the
royalties for the period between January
2009 and September 2011, which it will
begin paying in the second quarter of
2019. As for the royalties from the period
between October 2011 and December 2013,
these are still being disputed with the tax
authority. Cerro Verde does not believe it
was obligated to make these payments
according to the stability agreement it
entered into with the Peruvian government
in 1998. Nevertheless, Cerro Verde has acted
in good faith at all times, and continues
to evaluate options for the defense of its
rights.
37
INFO
Net sales grew by
3% compared
to 2017
38
Sociedad Minera
El Brocal S.A.A.
(61.43% BVN)
Sociedad Minera El Brocal S.A.A. operates
the Colquijirca Mine in the Province and
Region of Cerro de Pasco, 15 km south of the
city of the same name.
It currently exploits zinc, lead, and silver ore
in the Tajo Norte open pit, and copper ore in
the Marcapunta Norte underground mine.
The minerals from both zones are treated in
Concentrating Plants 1 and 2 at Huaraucaca.
During 2018, a total of 3,429,618 DMT of
lead and zinc was treated (Tajo Norte),
recovering 2,518,333 ounces of silver,
20,582 MT of lead, and 45,593 MT of zinc.
Additionally, 3,204,262 DMT of copper was
treated (Marcapunta Norte), recovering
1,383,536 ounces of silver, 21,429 ounces
of gold, and 46,231 MT of copper.
The operation achieved a total treatment
volume of 6,633,879 DMT, a 17% increase
over 2017, for an average daily treatment
of 18,175 DMT. The cumulative fine
production this year totaled 3,901,869
ounces of silver, 21,429 ounces of gold,
20,582 MT of lead, 45,593 MT of zinc, and
46,231 MT of copper contained in the three
concentrates produced.
Proven and probable mineral reserves as of
December 31, 2018 for Tajo Norte - Smelter
total 58,982,000 DMT, with 1.13 oz/t of
silver and 1.66% of copper, which makes
66,396,498 oz of silver and 630,290 MT
of copper.
Proven and probable mineral reserves as
of December 31, 2018 for Tajo Norte total
21,038,000 DMT, with 2.38% zinc and
1.09% lead, which makes 501,779 MT of zinc
and 229,807 MT of lead.
2018 Annual Report the optimization of productivity and
production costs, and accelerating the
conversation of resources to reserves,
applying a strict cost reduction and control
program.
The achievement of our goals and
objectives is subject to strict compliance
with our commitment to safety, caring
for the environment, and guaranteeing
peaceful relationships with nearby
communities through social investment
programs aimed at improving their quality
of life, caring for local job creation, and
promoting sustainable economic growth
to the benefit of the entire community.
39
Resources excluding measured and
indicated for Tajo Norte Smelter total
18,554,000 DMT, with 0.83 oz/t of silver,
0.78% lead, 2.87% zinc, and 1.09% copper.
Proven and probable mineral reserves as of
December 31, 2018 for Marcapunta Norte
total 19,804,000 DMT, with 0.013 oz/t of
gold, 1.35% of copper, and 0.70 oz/t of silver,
which makes 248,568 oz of gold, 266,446 MT
of copper, and 13,955,787 ounces of silver.
Resources excluding measured and
indicated for Marcapunta Norte total
45,717,000 DMT, with 0.014 oz/t of gold,
1.22% of copper, and 0.59 oz/t of silver.
The financial results show a positive change
in the main performance indicators. Net
sales totaled US$ 332.3 million, a growth of
3% over 2017, as a result of higher average
prices for copper, gold, and zinc, despite a
drop in fines produced and sold compared
to the previous year.
Production costs, before depreciation or
amortization, rose by 15%, mainly due
to the 17% increase in plant treatment.
With both sales and costs results, the
EBITDA margin was 11% higher than that
reported in 2017. After depreciation and
amortization, as well as financial expenses,
the results showed an annual net profit of
US$ 6.3 million, representing a decrease
of US$ 5.4 million compared to 2017
(US$ 11.7 million).
In 2018, the synergy project between
El Brocal and Buenaventura was
implemented, consolidating the integration
process as part of the corporate strategy
to create greater joint value through
collaboration among the different business
units.
The challenges for 2019 will be focused
on optimizing the mining method in
the underground mine, achieving
40
2018 Annual Report PROJECTS
In 2018, we began implementing the action plans defined
to close existing gaps between our projects and the
methodology described in Project Management for
Mining: Handbook for Delivering Project Success (2015)
by Terry L. Owen and Robin J. Hickson. As a result, we
achieved the following.
41
I. Projects in
Prefeasibility Phase
1
SAN GABRIEL PROJECT
(100% BVN)
The San Gabriel project is an intermediate
sulfidation epithermal deposit with gold,
copper, and silver metal contents, located
in the Province of General Sánchez Cerro,
in the Moquegua Region.
The total mineral resources (measured,
indicated, and inferred resources) measured
as of the end of 2017 total 13,007,709
DMT, with 0.17 oz/t of Au, 0.23 oz/t of Ag,
and 0.06% Cu, which represent 2,202,322
ounces of Au, 2,963,365 ounces of silver,
and 7,509 FMT of copper (60% measured
and indicated and 40% inferred).
The project’s social situation is favorable,
as demonstrated by the approval of the
detailed EIA on March 31, 2017, as well as
access to all the land necessary to carry out
the project.
Conceptually, the project involves an
underground mine and modular gravimetry-
CIL-ADR processing plant with a processing
capacity of 3,000 TPD, expandable to
6,000 TPD.
In 2018, in situ stress measurements
were taken using acoustic emission and
the proposed geomechanics model and
mining method were validated. Additional
metallurgical tests were also conducted that
concluded in the elimination of the flotation
process in this stage. After making these
changes, the scoping stage was concluded.
For 2019, the necessary fieldwork will
be recommenced in order to continue
increasing certainty with regard to
resources and the metallurgical models
defined during the scoping stage, with
a view to concluding the prefeasibility study
in the second half of the year.
42
2018 Annual Report “Conceptually, the Trapiche project involves
an initial copper leaching operation, working
at a pace of 45,000 tons per day.”
2
TRAPICHE PROJECT -
EL MOLLE VERDE S.A.C.
(100% BVN)
The Trapiche project is a copper-
molybdenum porphyry deposit from the
Oligocene located on the southwest edge
of the Andahuaylas-Yauri belt, in the
province of Antabamba, Apurímac region.
The measured and indicated resources
determined as of 2017 total 868,300,000
DMT, with a grade of 0.37% copper, making
for 3,247,458 MT of copper. Inferred mineral
resources total 44,400,000 DMT, with
0.30% copper, making for 132,753 MT
of copper.
Conceptually, the Trapiche Project involves
an initial copper leaching operation, working
at a pace of 45,000 tons per day.
For this leaching scenario, the minable
resources have been estimated at
290,416,144 DMT, with a grade of 0.51%
copper, representing 1,469,014 MT of
contents and 1,057,690 FMT of copper with
an average metallurgical recovery of 72%.
Acid consumption is approximately 7.5 kg/t,
and the irrigation cycle is 200 days.
In 2018, the company M3 was hired to
conduct prefeasibility studies, which are
scheduled for completion during the second
quarter of 2019.
We also ratified agreements with the
community of Mollebamba. As such, the
plan for 2019 will focus on continuing
fieldwork to improve the certainty of
resources and the models necessary to
validate the metallurgical process and
the mining plan defined during the
scoping stage.
Simultaneously, we will be carrying out
activities to define the environmental
baseline with a view to beginning the EIA
process toward the end of 2019.
43
II. Projects in the
Scoping Phase
1
COIMOLACHE SULFIDES
PROJECT (COMPAÑÍA
MINERA COIMOLACHE S.A.
- 40.095% BVN)
The Coimolache Sulfides Project consists
of an epithermal arsenical copper
mineralization covering an area of 2.0
by 2.0 km, and enriched copper located
beneath the oxidized area of the
current mine.
In mid-2018, the company M3 was hired
to perform the scoping study. The plan for
2019 consists of completing the scoping
study toward the end of the first quarter
of the year and then evaluating the need to
continue with the pre feasibility process.
44
“In mid-2018, the company M3 was hired
to perform the scoping study.”
2018 Annual Report 45
III. Projects in
Pre-Scoping Phase
1
2
YUMPAQ PROJECT
(100% BVN)
EL FAIQUE PROJECT
(100% BVN)
The Yumpaq Project is located 5 kilometers
from our Uchucchacua Mine, and consists of
a system of intermediate sulfidation veins
running primarily northeast, in tension with
the Cachipampa Fault, which controls the
mineralization at Uchucchacua.
During 2018, we continued with exploration
works and reached an agreement with the
community of Huachus for the purchase of
500 ha of land.
The El Faique Project is a volcanogenic
massive sulfide (VMS) ore deposit hosted
in the Mesozoic basin of Lacones, located
in the province of Tambogrande, in the
Piura region.
Efforts in 2018 continued to focus on the
community relations area, with a view
to restarting communication with the
community of Locuto. These efforts will
continue during 2019.
The works for the definition of resources
will continue in 2019, and are scheduled to
be concluded during the second half of the
year. This project will be integrated with our
Uchucchacua mining unit in order to support
the planned capacity increase.
46
2018 Annual Report 3
1
4
SAN GREGORIO PROJECT
(SOCIEDAD MINERA
EL BROCAL S.A.A.
- 61.43% BVN)
The San Gregorio Project is a massive
zinc deposit, and a continuation of the
mineralization in our operations at
El Brocal, located in the district of
Colquijirca, in the Pasco region.
Efforts in 2018 remained focused on the
community relations area, with a view
to restarting communication with the
community of Vicco. Work will continue in
2019, but will concentrate on opening a new
exploration front in the area of Marcapunta.
EMPERATRIZ PROJECT
(MINERA LA ZANJA S.R.L.
- 53.06% BVN)
The Emperatriz Project is breccia pipe
mineralization with clean copper located
in the district of Pulan, province of Santa
Cruz, Cajamarca region, within the mining
concessions of our La Zanja Unit.
In 2018, exploratory drilling was completed
in the central body, reporting inferred
resources of 25 M DMT with a grade of
0.83% copper and 0.5 g/t of gold, which will
be audited by a third party in the second
quarter of 2019.
47
“Emperatriz Project: In 2018, exploratory
drilling was completed in the central body,
reporting inferred resources of 25 M DMT.”
48
2018 Annual Report OTHER
BUSINESSES
Procesadora Industrial Río Seco S.A.
(100% BVN)
49
Is located in the Province of Huaral, Department of
Lima, at a distance of 102 kilometers north of the city of
Lima. This chemical industrial plant started operations
in January 2014 for the production of manganese
sulfate monohydrate from the lead-silver-manganese
concentrates from the Uchucchacua Mine.
During 2018, the acid wash plant treated
34,840.7 DMT of concentrate from
Uchucchacua, with grades of 101.8 oz/t of
silver, 13.6% lead, and 26.7% manganese.
Acid washing produces a concentrate
with a higher grade of silver and lower
concentration of manganese. The following
table shows the before and after for
concentrate treatment at Río Seco:
DMT
34,840.7
21,739.5
Ag
Oz / DMT
101.8
163.7
Pb
%
13.6
21.6
Mn
%
26.7
4.4
Concentrate from
Uchucchacua
Concentrate from
Río Seco
The sulfuric acid plant produced 17,931.1 MT
of sulfuric acid with a purity of 98%.
This plant uses wet sulfuric acid
(WSA) technology, which is clean and
environmentally friendly. Of the total
sulfuric acid, 52.5% was produced through
elemental sulfur smelting and 47.5% was
from the acid gas (H2S and CO2) produced
in the acid wash plant.
The crystallization plant produced 24,623
DMT of manganese sulfate monohydrate
with two dryers. The distribution of the
manganese sulfate production is shown
in the following table:
DRYER
Spin Flash Dryer
Spray Dryer
Total
DMT
16,732.4
7,891.0
24,623.4
Buenaventura’s Research and Technological
Innovation Center is located on the same
premises as the facilities of Río Seco.
The Center includes a pilot plant used to
perform research into the development of
an industrial process for the production of
cathodic copper using copper concentrates
with enargite from El Brocal.
The first stage in this development
consisted of a batch operation of the
process, where the laboratory results were
verified. The operating variables were then
fine-tuned until ensuring the replicability
of the process and establishing optimal
conditions.
The second stage consisted of a continuous
operating circuit until finally obtaining a
product and handling the solutions.
50
2018 Annual Report This pilot plant integrates the BVN Process
with hydrometallurgical operations,
such as extraction using solvents and
electrowinning, where copper cathodes
were obtained with a 99.999% purity.
Based on the results of these pilot tests,
the first battery of leaching tests has been
performed at a semi-industrial scale.
Río Seco works based on the highest
environmental safety standards, in constant
coordination with the communities of
Huaral and Sayán, the Lachay National
Reserve, the Municipality of Huaral, and
the Municipality of Chancay, with which it
carries out a participative environmental
monitoring program in the area.
Consorcio
Energético de
Huancavelica S.A.
- CONENHUA
(100% BVN)
Consorcio Energético de Huancavelica S.A.
has now been in business for 33 years. In
2018, it operated 479.45 km of transmission
lines: 59.9 km at 22.9 kV; 14.8 km at
33 kV; 104.32 km at 60 kV; 152.46 km at
138 kV; and 147.97 km at 220 kV, covering
operations in Cajamarca, Huancavelica,
Arequipa, Cerro de Pasco, and Lima.
Voltage Level
External
Failure (Hours)
Internal Failure
(Hours)
Maintenance
(Hours)
Total
(Hours)
51
33 kV
60 kV
138 kV
220 kV
Total
1.49
---
2.94
---
1.96
---
2.14
2.31
1.34
3.48
9.38
10.35
29.95
97.04
123.96
10.87
12.49
8.06
98.38
129.8
52
It is also in charge of operating eight VHV/
HV substations: two 220 kV substations,
three 138 kV substations, and three 60 kV
substations.
During 2018, there were a total of 193.31
hours of interruptions, as follows:
During the first half of the year, at the
request of Compañía Minera Coimolache
S.A. (CMC), the company performed the
detailed engineering for the “Expansion
of Substations, Medium- and Low-Voltage
Lines at Tantahuatay and Ciénaga Norte”
project. This project will supply electrical
energy to the new plants and future
facilities that will increase the mining unit’s
level of operations.
Additionally, at the request of El Molle Verde
S.A. (EMV), it conducted the prefeasibility
study (evaluation of alternatives) for the
supply of electrical energy to the Trapiche
Project, which determined that the Cotaruse
Substation will be used as the connection
point to the SEIN via a 220 kV transmission
line to the future Trapiche 220/22.9 kV
Substation.
2018 Annual Report 53
The small hydroelectric power plants Huapa
and Ingenio generated a total of 12.98 GWh
during the year.
The consolidated economic results of the
Consorcio Energético de Huancavelica
reported total operating revenues of
US$ 60.5 million, an operating profit of
US$ 22 million, and net profit after
income tax of US$ 8.6 million.
In December, Compañía de Minas
Buenaventura S.A.A. (BVN) entrusted
the company with the start of the definitive
studies for the “Chilota Substation - San
Gabriel Substation 220 kV Transmission
Line” project. This project will safely
and reliably supply sufficient electrical
energy for the future operation of the
San Gabriel Project.
In terms of hydroelectric power plants,
Empresa de Generación Huanza
continued to improve its facilities and
electromechanical equipment, achieving a
generator availability in excess of 95% and
generating 392.63 GWh.
54
2018 Annual Report SAFETY
55
For Buenaventura, safety is a fundamental, cross-
cutting aspect of all of our operating and administrative
processes.
More than a set of safety standards or procedures, safety is one of our core values.
During 2018, approximately 40 million man-hours were worked, 10% fewer than in 2017.
Unfortunately, three fatal accidents were reported at the Orcopampa, Mallay, and El Brocal
mining units, compared to five such accidents in 2017. These results compel us to continue
making more effort and allocating more resources to achieve our goal of zero fatal
accidents.
Our main safety activities were as follows:
› Closer relations with our 21 unions through awareness raising meetings called “Toward
a Safe and Responsible Mining”.
› Strengthening of BNV’s team members and contractors through the activities of the
“A Pact for Life” program in relation to their personal commitment.
› Structuring of the “Critical Risk Management” initiative, focused on the prevention of
fatal accidents.
› Solidification of the importance of safety thanks to its inclusion as one of our “values”
and updating of Buenaventura Integrated Policy.
› Evaluation of the Culture of Safety Perception level in all of our mining units, along with
the definition of action plans.
We continued to work hard to achieve a “Culture of Safety” that involves all members of the
Buenaventura family.
56
2018 Annual Report ENVIRONMENTAL
MANAGEMENT
57
Our environmental management continued to apply best
industry practices, with a view to innovating with regard
to water management and mine closures so as to ensure
the sustainability of our operations.
We ensured compliance with all laws, statutes, and standards in force, as well as the
agreements and commitments assumed in our management instruments, achieving
96% compliance. In our mining units and projects, critical work was done to follow up
on the Environmental Management Plans (EMPs) and the measurement of the Basic
Environmental Performance Index (BEPI), which indicates the degree of involvement of the
different operating areas, achieving implementation levels of 96% and 92%, respectively.
We were successfully recertified the Integrated Management System (IMS) that guides our
performance, based on OHSAS 18001, ISO 9001, and ISO 14001 international standards.
Our operations and explorations continued to encourage “water harvesting” through the
storage of rainwater for our own use, and above all to contribute to nearby populations,
especially during the dry season. We also implemented tree planting programs.
In our processes, we sought to continue promoting best practices for the efficient use of
water, successfully reducing freshwater consumption and achieving recirculation values
of 98% in open pit operations, and 72% in
underground operations. As a result, we
used just 16% of the volume of freshwater
for which we are authorized. In terms
of waste management, we continued to
make progress in the sorting and recycling
processes, with the latter achieving a total
of 59%.
This year, the Tantahuatay Mine owned
by our subsidiary Cía. Minera Coimolache
obtained the “Certificado Azul” given out
by the National Water Authority (ANA).
It thus became the first metal mining
company in Peru to obtain this recognition
for its measurement and control of its
water footprint, certifying the proper
management of water in its processes
and its social contribution to the basin
through the generation of water assets
(micro-reservoirs). Throughout all of our
operations, we also continued to bolster
our participation in and promotion of
participative monitoring activities, together
with regional, municipal, and community
authorities.
A total of 21 key participative monitoring
activities were performed (including
monitoring and the dissemination of results)
and 220 community leaders were trained.
This work has helped inspire greater
trust among the residents who live near
our operations, while also building local
capacities in environmental aspects.
As part of our efforts to promote research
and innovation in our environmental
practices, Minera La Zanja SRL obtained
first place in 2018 in the Sustainable
Development Awards for the Mining Sector
for the Tecnosoles project developed for
the unit’s mine closure; and second place
in the Technological Innovation Awards
for the Mining and Energy Sector. The
Orcopampa Unit also received second place
in the Innovative Ideas category, with the
organic waste treatment project using
anaerobic fermentation, in the Technological
Innovation Awards. These recognitions were
given out by the National Society of Mining,
Petroleum, and Energy.
Over the course of 2018, the Environmental
Assessment and Enforcement Agency
(OEFA) conducted 41 inspection visits
to our operations. A total of 54 findings
were reported, representing a rate of
1.32 findings/inspection, compared to
0.9 findings/inspection in 2017, when 28
inspections visits were performed and 26
findings were reported. Of particular note
were the findings in the mine closure and
environmental liabilities works, which were
affected by the presence of illegal mining.
In the operating units, the percentage of
findings declined by 30% compared to 2017.
As of the end of the year, environmental
contingencies totaled US$ 2.7 million,
compared to the US$ 2.2 million reported
at the end of 2017. The influence of pending
works for the closure of the Santa Bárbara
liability, located in Huancavelica, resulted
in an increase of 57% during 2018. These
activities will be performed in 2019.
58
2018 Annual Report As part of our water management, we
obtained 38 licenses. 15 of these are
treatment system authorizations (six for
industrial discharge, five for domestic
discharge, and four for drinking water
treatment systems), six rights to use water,
eleven authorizations for the performance
of minor works (hydraulic infrastructure,
embankments, cleaning of watercourses),
and five authorizations for hydrogeological
studies.
During 2018, we performed formalities for
31 environmental management instruments
(EMIs). 9 were approved, 10 are still being
processed, and 12 are still in the process
of being prepared. We also performed
formalities for 102 operating permits, of
which 68 were approved, 16 are still being
processed, and 18 are being prepared.
Particular note should be made of the
approval of the EIAsd for the Tantahuatay,
Ciénaga Sur, and Mirador exploration
projects, as well as the Yumpag Project.
We have also begun to prepare the EIAd
for the Río Seco Copper Plant, the Third
Amendment to the EIA for Tantahuatay,
and the EIA for the Trapiche Project, which
will be evaluated by the SENACE and be
submitted in 2019.
Among the most important operating
permits were the Technological
Improvement Report for the Installation
of Huaraucaca Concentration Plant
Components for the 13K-Cu Project.
59
“In 2018, Minera La Zanja S.R.L. obtained first
place in the Sustainable Development Awards
for the Mining Sector.”
60
2018 Annual Report SOCIAL
MANAGEMENT
61
At Buenaventura, our work is guided by the conviction
that mining can act as an agent to promote change
and development in the country, and especially for the
communities near our operations and projects.
That change will become possible if we apply the shared social responsibility approach,
wherein the community, its authorities, and the company work together toward a common
goal: the wellbeing of all.
With this in mind, Buenaventura’s Social Management over the course of the year remained
focused on two major objectives:
› Maintaining cordial relations based on trust with the communities in the area of
influence of our operations.
› Promoting sustainable development using the shared social responsibility approach.
With a view to achieve these objectives,
we have actively participated in the
communities’ traditions and activities.
300 million soles by local companies for
procurements and the hiring of support
services for our operations.
› We participated in over 300 activities
organized by the communities.
› At our own initiative, we promoted the
organization of 290 activities with the
participation of the communities.
Additionally, following our policy of
“open door”, we also carried out 349
communication activities, which are aimed
at sharing information on our fieldwork and
clearing up any doubts that local residents
may have.
In our efforts to promote the communities’
sustainable development, we primarily seek
to help foster a dynamic local economy by
creating formal jobs, hiring local companies,
and helping to strengthen and sell local
production.
In 2018, 79% of the workforce hired at
our units came from the regions where
we operate. We were also billed over
In terms of our contribution to traditional
economic activities that help bolster local
productivity, we continued to promote the
PRA Buenaventura Project, which directly
contributes to building capacities and
creating new business opportunities. During
this period, the PRA promoted 90 business
opportunities with the communities that
helped bring together 5,316 local producers
and generate annuals sales of S/ 6.5 million
(S/ 22.5 million in cumulative sales), thus
creating a positive impact on local families
and their income.
Buenaventura also offers effective
contributions to the improvement of basic
services and infrastructure, particularly
in access to basic sanitation and drinking
water, as well as roads and water
infrastructure, acting in alliance with the
different levels of government and local
communities.
62
2018 Annual Report Thanks to these alliances, we have been
able to help improve health through the
annual campaign we perform together with
the Peruvian American Medical Society
(PAMS), the staff of the Public Health
Network in the province of Angaraes,
doctors from Lircay Hospital, and students
from Universidad para el Desarrollo Andino
(UDEA) in Huancavelica.
During the 2018 campaign, local residents
had 3,952 appointments with medical
specialists, including 17 surgeries such
as cleft lip, cleft palate, malformations
of the feet, and tumors. Infrastructural
improvements were made to the Lircay
Hospital, and telemedicine and anesthesia
equipment was donated. Additionally,
1,500 pairs of sunglasses were given out,
along with 366 pairs of reading glasses, and
1,320 campaigns were performed to share
information on child malnutrition.
At Buenaventura, we are convinced of the
importance of education in overcoming
poverty. That is why we have continued
with our goal of improving the quality
of basic education through our “Learn to
Grow” ("Aprender para Crecer”) and “Teach
Peru” (“Enseña Perú”) programs, which
benefited over 3,000 in more than
80 schools in our areas of influence in 2018.
Our scholarship program, on the other
hand, seeks to offer young people more
opportunities to pursue higher studies,
including through the “Beca 18” program.
As for our infrastructure projects, this
year we finished construction of the Pisit
Secondary School, in the district of Tongod,
working together with the Regional
Government of Cajamarca and hiring a local
executing company.
We also began the street paving project in
the Puente Piedra neighborhood of Oyón,
in alliance with the Regional Government
of Lima.
As for sanitation, we began performing
the water and sanitation works for the
Populated Center of Morán Pata, in
alliance with the Municipality of Hualgayoc
in Cajamarca. These three projects are
being carried out through the works for
taxes mechanism. We also finished the
final studies for the sanitation works
in communities in the area of influence
of our Orcopampa (Arequipa), La Zanja
(Cajamarca), San Gabriel (Moquegua),
and El Brocal Units (Pasco).
63
64
2018 Annual Report ECONOMIC,
FINANCIAL,
AND CORPORATE
MATTERS
REPORT
65
The Company’s consolidated net loss for fiscal year 2018
was US$ 11.65 million, compared to a net profit of
US$ 64.44 million in fiscal year 2017.
66
This difference was mainly due to the
(non-cash) expenses registered by Cerro
Verde for US$ 406.6 million (100%)
corresponding to fines and interest in
lawsuits over mining royalties litigated with
the SUNAT.
On a consolidated basis, the metal that
accounted for the highest percentage of our
sales in 2018, in terms of value, was gold
with 36%, followed by silver with 29%, then
copper with 15%, zinc with 13%, and lead
with 7%.
During 2018, the decision was made to
refinance Buenaventura’s syndicated loan,
lowering the rate by 85 basis points and
extending the maturity date, with the first
payment due in April 2020.
The net debt-to-EBITDA ratio was also
lowered from 1.38x to 0.99x as of the end
of the year.
The final cash position rose from US$ 214.6
to US$ 369.2 million due to the Company’s
new CAPEX control initiatives.
2018 Annual Report 67
As of December 31, 2018, we had 1,028
common shareholders. Of these, 22.65%
were shareholders domiciled in Peru and
77.35% were non-domiciled.
We also had 896 shareholders with
investment stock.
The ADR program on the New York
Stock Exchange (NYSE) reached a trade
volume of US$ 4,791,775,988 in 2018
(325,871,063 ADSs).
As of December 31, 2018, there were
211,359,550 ADSs in circulation,
representing 76.89% of all of the Company’s
shares in circulation.
68
2018 Annual Report MANAGEMENT´S
ANALYSIS AND
DISCUSSION
69
The main changes in the consolidated financial
statements for the twelve-month periods ended
December 31, 2018 and 2017, are explained below:
(Figures given in U.S. dollars are expressed in thousands, except for metal prices
and quantities).
1. Net Sales
In fiscal year 2018, nets sales of assets
totaled US$ 1,122,995, compared to sales
of US$ 1,223,942 in fiscal year 2017, for a
decrease of 8.25%. This was primarily due
to the following factors:
70
A. GOLD SALES
B. SILVER SALES
The average sale price of this metal rose
from US$ 1,267.56/oz in 2017 to
US$ 1,267.99/oz in 2018, representing
a price increase of 0.03%. However,
78,616 fewer ounces of gold were sold
compared to 2017. The combined effect
made for sales revenues that were
US$ 99,508 lower. These lower revenues
were mainly due to the net effect of the
decrease in sales in the Orcopampa and
La Zanja mining units by US$ 98,817
and US$ 68,274, respectively, as a
consequence of the lower volumes sold.
This was offset by the increase in the
Tambomayo mining unit due to the growth
of volumes sold.
The average sale price of this metal dropped
from US$ 16.54/oz in 2017 to US$15.09/oz
in 2018, representing a price decrease of
8.77%. Silver sales were also 308,630/oz
lower than in 2017. The combined effect
made for sales revenues that were
US$ 40,608 lower in 2018 compared to the
previous year. These lower revenues were
due mainly to the net effect of the decrease
in sales in the Uchucchacua, Mallay, Julcani,
and Orcopampa mining units by
US$ 38,765, US$ 9,473, US$ 5,078,
and US$ 4,353, respectively, as a
consequence in the decrease in volumes
and the average agreed prices, offset by an
increase in the Tambomayo mining unit of
US$ 26,825 due to the higher volumes sold.
2018 Annual Report C. ZINC SALES
D. LEAD SALES
The average sale price of this metal
dropped from US$ 3,046.18/MT in 2017 to
US$ 2,686.24/MT in 2018, representing a
price decrease of 11.82%. However, sales
of zinc were 3,068 MT higher than in
2017. The combined effect made for sales
revenues that were US$ 13,974 lower in
2018 than in 2017. The lower revenues
were due to the combined effect of the
drop in sales at the Colquijirca and Mallay
mining units by US$ 29,515 and US$ 8,122,
respectively, as a result of the decrease in
volumes and the average agreed prices, and
the increase in sales at the Uchucchacua
and Tambomayo mining units by
US$ 13,380 and US$ 10,282, respectively,
due to the growth in volumes sold.
The average sale price of this metal
dropped from US$ 2,372.01/MT en 2017
a US$ 2,140.81/MT en 2018, representing
a price decrease of 9.75%. However, lead
sales were 1,569 MT higher than in 2017.
The combined effect made for sales that
were US$ 5,897 lower in 2018 than in 2017.
The lower revenues were due mainly to
the net effect of the drop in sales from
the Mallay and Colquijirca mining units by
US$ 5,494 and US$ 3,701, respectively, as
a result of the lower volumes sold and the
drop in the average agreed prices, offset by
an increase in sales from the Uchucchacua
mining unit of US$ 3,994, due to the higher
volumes sold.
71
E. COPPER SALES
The average sale price of this metal dropped
from US$ 6,280.48/MT in 2017 to
US$ 6,277.40/MT in 2018, representing a
price decrease of 0.05%. However, copper
sales were 1,014 MT higher than in 2017.
The combined effect made for sales
revenues that were US$ 6,234 higher in
2018 compared to the previous year. The
higher revenues were due mainly to the
increase in sales from the Colquijirca mining
unit by US$ 7,117, as a result of the increase
in sales volumes and the average agreed
prices.
F. DEDUCTIONS
During 2018, deductions applied for maquila
(tolling) and penalties on concentrate sales,
taken as a whole, totaled US$ 195,865,
compared to US$ 253,939 in 2017. These
amounts were deducted from the net sales
for each year.
This year, net sales of services totaled
US$ 24,001 compared to US$ 29,697 in
sales in fiscal year 2017, representing a
decrease of 19.18%. This variation was
primarily due to the sale of the subsidiary
Buenaventura Ingenieros S.A. in 2018.
2. Revenues from
Royalties
The royalties received by S.M.R.L
Chaupiloma Dos de Cajamarca (Chaupiloma)
in 2018 came to US$ 20,385, a decrease of
1.71% compared to those received in 2017
(US$ 20,739). This drop was due to the
lower sales in ounces of gold and silver from
Yanacocha during 2018 compared to 2017.
3. Operating
Costs
In 2018, operating costs totaled
US$ 982,957, compared to US$ 980,254
in 2017, representing an increase of 0.28%.
This increase was mainly due to the
following entries:
A. COST OF SALES OF
SERVICES, NOT INCLUDING
DEPRECIATION OR
AMORTIZATION
The entry for “Cost of Sales of Services,
Not Including Depreciation or Amortization”
fell by US$ 8,636, going from US$ 12,954 in
2017 to US$ 4,318 in 2018, representing a
decrease of 66.67%. This decrease was due
to the sale of the subsidiary Buenaventura
Ingenieros S.A., which reported cost of sale
of US$ 9,393 in 2017.
72
2018 Annual Report 73
C. MINING ROYALTIES
The mining royalties entry decreased by
US$ 9,691, going from US$ 31,217 in 2017 to
US$ 21,526 in 2018 due to the lower sales
this year.
B. DEPRECIATION AND
AMORTIZATION
The “Depreciation and Amortization” entry
increased by US$ 27,564, going from
US$ 213,722 in 2017 to US$ 241,286 in 2018,
which represents an increase of 12.90%.
This was due primarily to the net effect of:
i. An increase of US$ 34,242 due to the
commissioning of the Tambomayo mining
unit in 2017.
ii. An increase of US$ 10,467 in the
Colquijirca mining unit, as a consequence
of the change in the operating design
model for the stripping cost for the
removal of the reserves associated with
Phase 10.
iii. A decrease of US$ 14,297 in the La Zanja
mining unit due to the increase of the
useful life.
4. Operating
Expenditures
Operating expenditures fell by US$ 57,939,
going from US$ 188,608 in 2017 to
US$ 130,669 in 2018, representing a
decrease of 30.72%. This decrease was due
primarily to the following:
i. A recovery in the provision for long-lived
asset impairment for US$ 5,693 from the
La Zanja subsidiary, compared to
a provision of US$ 21,620 in 2017.
ii. A writeback in the provision for
contingencies in 2018 for US$ 11,239,
compared to an increase in the provision
by US$ 13,879 in 2017.
iii. US$ 13,573 write-off of a deferred
stripping cost corresponding to the
El Brocal subsidiary due to a change
in the operating design model for the
stripping cost in 2017.
5. Other
Revenues
(Expenditures),
Net
Other expenditures rose by US$ 18,309,
going from US$ 12,971 in 2017 to
US$ 31,280 in 2018, which represents
an increase of 141%. This was due to the
variation in the net share in the results of
related companies. This entry represented
a gain of US$ 13,207 in 2017, and a loss
of US$ 1,144 in 2018. The decrease was
primarily the result of the net effect of
lower net earnings by Sociedad Minera
Cerro Verde S.A.A. on the order of
US$ 45,077 (due to charges tied to
interest and penalties associated with
the calculation of royalties in dispute for
the period between January 2009 and
December 2013 for a total of
US$ 408.9 million), and by Compañía
Minera Coimolache S.A. on the order of
US$ 10,277, which was partly offset by a
lower net loss by Minera Yanacocha S.R.L.
on the order of US$ 41,003.
74
2018 Annual Report 6. Provision for
Income Tax
This entry consists of income tax, and
mining royalties and special mining tax.
7. Non-
Controlling
Interest
This entry booked a profit of US$ 1,791 in
2018, compared to US$ 3,612 in 2017. The
decrease in this profit is due primarily to
the drop in the non-controlling results
of El Brocal (profit of US$ 2,880 in 2018
compared to US$ 4,246 in 2017).
INCOME TAX
This entry reported an expenditure of
US$ 22,502 in 2018, and an expenditure
of US$ 12,797 in 2017.
MINING ROYALTIES AND
SPECIAL MINING TAX
This entry reported an expenditure of
US$ 4,424 in 2018, and an expenditure
of US$ 5,215 in 2017.
75
76
2018 Annual Report OPERATIONS
SUMMARY
77
78
Table 1
2018 OPERATIONS SUMMARY
DESCRIPTION
Head Ore Treated
Head Grades Ag
Au
Cu
Pb
Zn
Bulk Concentrate (Ag-Pb-Cu-Au)
Lead - Silver Concentrate
Copper - Silver Concentrate
Copper Concentrate
Zinc Concentrate
Ounces of Silver
Ounces of Gold
Metallic Copper
Metallic Lead
Metallic Zinc
Ag Recovery
Au Recovery
Cu Recovery
Pb Recovery
Zn Recovery
Cash Cost Oz Ag
Cash Cost Oz Au
Cash Cost MT Zn
Cash Cost MT Cu
UNIT
DMT
Oz/DMT
Gr/ DMT
%
%
%
DMT
DMT
DMT
DMT
DMT
Oz
Oz
MT
MT
MT
%
%
%
%
%
US$
US$
US$
US$
TAMBOMAYO
557,364
8.11
7.75
1.49
2.16
8,190
17,858
3,929,808
129,172
4,220
8,685
85.12
90.89
48.2
71.3
626
2018 Annual Report ORCOPAMPA
UCHUCCHACUA
JULCANI
MALLAY
LA ZANJA
353,891
1,387,775
109,025
92,450
5,702,881
1.03
9.98
1,630
12.48
1.60
2.23
23.35
0.04
0.16
1.01
10,867
6.33
0.35
2.28
5.30
90,895
4,800
2,404
312,250
15,420,102
2,482,907
115,887
81.73
97.03
1,020
71
169
1,048
97.39
36.12
96.77
93.59
14.98
19,122
21,840
87.85
86.40
70.33
10.41
9,462
514,081
319
1,768
4,151
87.76
18.45
83.34
84.47
11.50
0.24
0.46
217,174
71,630
18.39
86.89
891
79
80
Table 1
2018 OPERATIONS SUMMARY
DESCRIPTION
UNIT
TANTAHUATAY
Head Ore Treated
Head Grades Ag
Au
Cu
Pb
Zn
Mo
Bulk Concentrate (Ag-Pb-Cu-Au)
Lead - Silver Concentrate
Copper - Silver Concentrate
Zinc Concentrate
Metallic Molybdenum
Leached Copper
Ounces of Silver
Ounces of Gold
Metallic Copper
Metallic Lead
Metallic Zinc
Ag Recovery
Au Recovery
Cu Recovery
Pb Recovery
Zn Recovery
Cash Cost Oz Ag
Cash Cost Oz Au
Cash Cost MT Zn
Cash Cost MT Cu
DMT
Oz/DMT
Gr/DTM
13,384,291
0.24
0.58
%
%
%
%
DMT
DMT
DMT
DMT
DMT
DMT
Oz
Oz
MT
MT
MT
%
%
%
%
%
US$
US$
US$
US$
791,181
173,192
22.31
69.19
675
2018 Annual Report EL BROCAL
CERRO VERDE
YANACOCHA
Tajo Norte
Marcapunta
Cathodes
Concentrate
3,429,618
3,204,262
25,611,900
141,474,000
27,090,000
1.13
1.11
2.30
41,861
93,427
0.71
0.51
1.59
183,111
0.38
0.014
10,546
2,518,333
1,383,536
4,555,191
20,582
45,593
63.92
52.41
57.55
1,569
21,429
46,231
60.64
39.80
90.55
39,727
436,286
66.10
84.30
5,487
3,417
81
1,076,493
514,564
831
Table 2
RESERVES AS OF DECEMBER 31, 2018
PROVEN AND PROBABLE RESERVES
GOLD
BVN % Share
DMT
(000)
Oz /
DMT
Ounces
(000)
BVN
Ounces
(000)
Orcopampa
Julcani
Mallay
Tambomayo
La Zanja
100.00
100.00
100.00
922
251
134
0.331
306
306
0.006
0.007
1
1
1
1
100.00
3,391
0.120
408
408
53.06
3,120
0.012
82
La Zanja (in Pads)
53.06
Tantahuatay (Oxides)
40.10
57,715
0.012
Tantahuatay PAD
40.10
El Brocal Marcapunta Norte
61.43
19,804
0.013
Yanacocha
43.65
Total Gold Reserves
37
11
666
4
249
19
6
267
2
153
7,423
3,240
9,105
4,403
2018 Annual Report SILVER
Uchucchacua
(Silver-Lead-Zinc)
Julcani
Mallay
Orcopampa
Tambomayo
La Zanja
ZINC
Uchucchacua
(Silver-Lead-Zinc)
Mallay
Tambomayo
BVN %
Share
DMT
(000)
Oz /
DMT
Ounces
(000)
BVN
Ounces
(000)
100.00
11,941
7.69
91,844
91,844
100.00
100.00
100.00
251
134
922
100.00
3,391
53.06
3,120
21.37
5,368
5,368
6.56
1.01
4.17
0.23
878
932
878
932
14,133
14,133
709
210
376
111
La Zanja (in Pads and Plant)
53.06
Tantahuatay Oxides
40.10
57,715
0.31
17,910
7,181
Tantahuatay PAD
40.10
57
23
El Brocal (Tajo Norte-Smelter)
61.43
58,982
1.13
66,396
40,787
El Brocal Marcapunta Norte
61.43
19,804
0.70
13,956
8,573
83
Yanacocha
43.65
104,571
45,645
Cerro Verde (for Mill)
19.58
4,191,353
0.06
254,493
49,830
Total Silver Reserves
571,455
265,680
BVN %
Share
DMT
(000)
% Zn
DMT
(000)
BVN
DMT
(000)
100.00
11,941
1.79
214
214
El Brocal (Tajo Norte-Smelter)
61.43
21,083
Total Zinc Reserves
36,549
2.08
100.00
134
100.00
3,391
6.74
1.06
2.38
9
36
502
761
9
36
308
567
BVN %
Share
DMT
(000)
% Pb
DMT
(000)
BVN
DMT
(000)
100.00
11,941
1.12
134
134
Tambomayo
100.00
3,391
El Brocal (Tajo Norte-Smelter)
61.43
21,083
Total Lead Reserves
36,800
100.00
100.00
251
134
2.04
3.67
0.73
1.09
1.08
5
5
25
230
399
LEAD
Uchucchacua
(Silver-Lead-Zinc)
Julcani
Mallay
COPPER
Julcani
5
5
25
141
310
BVN
DMT
(000)
1
164
387
BVN %
Share
DMT
(000)
% Cu
DMT
(000)
84
El Brocal Marcapunta Norte
61.43
19,804
El Brocal (Tajo Norte-Smelter)
61.43
37,899
1.35
1.11
100.00
251
0.47
1
266
630
Cerro Verde (for Mill)
19.58
4,191,353
0.36
13,943
2,730
Cerro Verde
(for Leaching)
19.58
133,107
0.24
992
194
43.65
660
288
Total Copper Reserves
4,382,414
0.38
16,493
3,764
MOLYBDENUM
BVN %
Share
DMT
(000)
% Mo
DMT
(000)
Cerro Verde (for Mill)
19.58
4,191,353
0.014
Total Molybdenum Reserves
4,191,353
0.014
587
587
BVN
DMT
(000)
115
115
2018 Annual Report Table 3
RESERVES AS OF DECEMBER 31, 2018
PROVEN AND PROBABLE RESERVES
GOLD
Orcopampa
Julcani
Mallay
Tambomayo
La Zanja
BVN %
Share
DMT
(000)
Oz /
DMT
Ounces
(000)
BVN
Ounces
(000)
0.459
391
391
100.00
100.00
851
270
0.010
100.00
193
0.005
100.00
1,898
0.282
53.06
10,801
0.015
La Zanja (in Pads)
53.06
Tantahuatay (Oxides)
40.10
68,099
0.121
Tantahuatay PAD
40.10
El Brocal Marcapunta Norte
61.43
13,991
0.011
Yanacocha
43.65
Total Gold Reserves
3,819
1,667
5,895
3,110
2
1
535
163
4
821
5
155
2
1
535
86
2
329
2
95
85
SILVER
Uchucchacua
(Silver-Lead-Zinc)
Julcani
Mallay
Orcopampa
Tambomayo
La Zanja
BVN %
Share
DMT
(000)
Oz /
DMT
Ounces
(000)
BVN
Ounces
(000)
100.00
4,894
13.21
64,640
64,640
100.00
100.00
100.00
270
193
851
19.93
5,380
5,380
6.45
1,244
1,244
1.23
1,046
1,046
100.00
1,898
9.83
18,653
18,653
53.06
10,801
0.20
2,204
1,170
La Zanja (in Pads)
53.06
177
94
Tantahuatay Oxides
40.10
68,099
0.23
15,645
6,273
Tantahuatay PAD
40.10
145
58
El Brocal (Tajo Norte-Smelter)
61.43
69,781
0.71
49,710
30,537
El Brocal Marcapunta Norte
61.43
13,991
0.41
5,667
3,481
Yanacocha
43.65
49,900
21,781
Cerro Verde (for Mill)
19.58
3,471,000
0.06
216,495
42,390
Total Silver Reserves
430,907
196,747
86
ZINC
Uchucchacua
(Silver-Lead-Zinc)
Mallay
Tambomayo
BVN %
Share
DMT
(000)
% Zn
DMT
(000)
BVN
DMT
(000)
100.00
4,894
2.18
107
107
100.00
193
100.00
1,898
7.55
2.50
0.86
1.00
15
48
601
770
15
48
369
538
El Brocal (Tajo Norte-Smelter)
61.43
69,781
Total Zinc Reserves
76,766
2018 Annual Report BVN
DMT
(000)
65
6
7
24
155
256
BVN
DMT
(000)
1
156
434
87
BVN %
Share
DMT
(000)
% Pb
DMT
(000)
LEAD
Uchucchacua
(Silver-Lead-Zinc)
Julcani
Mallay
100.00
4,894
1.32
100.00
100.00
270
193
2.13
3.58
1.25
0.36
Tambomayo
100.00
1,898
El Brocal (Tajo Norte-Smelter)
61.43
69,781
Total Lead Reserves
77,036
0.46
COPPER
Julcani
BVN %
Share
DMT
(000)
% Cu
DMT
(000)
100.00
270
0.47
El Brocal Marcapunta Norte
61.43
13,991
El Brocal (Tajo Norte-Smelter)
61.43
69,781
1.81
1.01
Cerro Verde (for Mill)
19.58
3,471,000
0.37
12,843
2,515
Cerro Verde
(for Leaching)
19.58
106,000
0.29
313
61
Total Copper Reserves
3,661,042
0.39
14,117
3,167
MOLYBDENUM
Cerro Verde
(for Mill)
BVN %
Share
DMT
(000)
% Mo
DMT
(000)
19.58
3,471,000
0.010
Total Molybdenum Reserves
3,471,000
0.010
BVN
DMT
(000)
68
68
65
6
7
24
253
354
1
253
707
347
347
Table 4
NON-RESERVE MINERALS AS OF DECEMBER 31, 2018
NON-RESERVE MINERALS (MEASURED+INDICATED RESOURCES)
GOLD
Orcopampa
Julcani
Tambomayo
Mallay
San Gabriel
Trapiche
La Zanja
BVN %
Share
100.00
100.00
100.00
100.00
DMT
(000)
Oz /
DMT
Ounces
(000)
327
155
675
0.571
0.000
0.143
7
0.007
187
0.0
97
0.0
BVN
Ounces
(000)
187
0.0
97
0.0
100.00
7,677
0.184
1,416
1,416
100.00
868,300
0.001
53.06
28,155
0.012
614
336
86
158
648
614
178
46
63
398
897
88
Alejandra (La Zanja)
53.06
123
0.703
Tantahuatay (Oxides)
40.10
16,742
0.009
El Brocal Marcapunta Norte
61.43
45,717
0.014
El Brocal Marcapunta Oeste
61.43
75,680
0.019
1,460
Yanacocha
43.65
7,500
3,274
Yanacocha (Conga) 1
43.65
536,015
0.023
12,593
5,497
Yanacocha (Conga) 2
43.65
388,268
0.012
4,880
2,130
Total Gold Reserves
1,967,840
0.015
29,975
14,797
2018 Annual Report SILVER
BVN %
Share
DMT
(000)
Oz /
DMT
Ounces
(000)
BVN
Ounces
(000)
Orcopampa
100.00
327
0.72
235
235
Uchucchacua
(Silver-Lead-Zinc)
Julcani
Mallay
Tambomayo
San Gabriel
Trapiche
La Zanja
100.00
2,617
10.84
28,367
28,367
100.00
100.00
100.00
155
7
675
100.00
7,677
100.00
868,300
53.06
28,155
22.04
3,414
3,414
7.37
6.20
0.23
0.10
0.21
3.74
0.22
50
50
4,184
4,184
1,729
1,729
52,115
52,115
5,788
3,071
459
244
3,614
1,449
Alejandra (La Zanja)
53.06
123
Tantahuatay - Oxides
40.10
16,742
El Brocal (San Gregorio)
61.43
79,934
0.31
24,620
15,124
El Brocal (Tajo Norte-
Smelter)
61.43
20,435
0.83
16,871
10,364
El Brocal Marcapunta Norte
61.43
45,717
0.59
27,088
16,640
Yanacocha
43.65
27,900
12,178
Yanacocha (Conga) 1
43.65
536,015.000
0.07
37,784.000
16,493
Yanacocha (Conga) 2
43.65 388,268.000
0.04
14,461.000
6,312
Total Silver Reserves
1,995,146
0.12
248,678
171,968
89
ZINC
Uchucchacua
(Silver-Lead-Zinc)
Mallay
Tambomayo
BVN %
Share
DMT
(000)
% Zn
DMT
(000)
100.00
2,617
2.15
100.00
100.00
7
675
El Brocal (San Gregorio)
61.43
79,934
4,175
2,560
El Brocal (Tajo Norte -
Smelter)
61.43
18,554
2.87
533
327
Total Zinc Reserves
101,786
4.69
4,771
2,950
BVN
DMT
(000)
56
0.2
7
BVN
DMT
(000)
33
1.8
0.2
4
56
0.2
7
33
1.8
0.2
4
3.42
1.01
5.22
1.18
2.23
0.65
1.53
90
LEAD
Uchucchacua
(Silver-Lead-Zinc)
Julcani
Mallay
Tambomayo
BVN %
Share
DMT
(000)
% Pb
DMT
(000)
100.00
2,617
1.27
100.00
100.00
100.00
155
7
675
El Brocal (San Gregorio)
61.43
79,934
1,221
749
El Brocal (Tajo Norte -
Smelter)
61.43
18,554
0.78
145
89
Total Lead Reserves
101,941
1.38
1,406.0
877
2018 Annual Report COPPER
Julcani
San Gabriel
Trapiche
BVN %
Share
DMT
(000)
100.00
155
100.00
7,677
% Cu
0.35
0.06
DMT
(000)
1
4
BVN
DMT
(000)
1
4
100.00
868,300
0.37
3,247
3,247
El Brocal Marcapunta Norte
61.43
45,717
El Brocal (Marcapunta Oeste)
61.43
75,680
El Brocal (Tajo Norte-Smelter)
61.43
1,881
Yanacocha (Sulfides)
43.65
110,826
Yanacocha (Conga) 1
43.65
536,015
Yanacocha (Conga) 2
43.65
388,268
1.22
1.25
1.09
0.64
0.28
0.19
557
946
20
705
1,501
738
342
581
12
308
655
322
Total Copper Reserves
2,034,518
0.38
7,719
5,473
91
Table N°5: Sales
PRICE OF METALS SOLD
Gold (US$/Oz)
Silver (US$/Oz)
Lead (US$/TM)
Zinc (US$/TM)
Copper (US$/TM)
VOLUMES OF METALS SOLD
Gold (Oz)
Silver (Oz)
Lead (TM)
Zinc (TM)
Copper (TM)
2018
1,268
15.09
2,141
2,686
6,277
2018
324,864
2017
1,268
16.54
2,372
3,046
6,280
2017
403,480
24,464,648
24,773,278
41,601
64,793
43,770
40,032
61,724
42,756
92
2018 Annual Report Table 5: Headcount
PERSONNEL AS OF DECEMBER 31, 2018
MANAGEMENT
EXECUTIVES
EMPLOYEES
MINE
EMPLOYEES
MINE
LABORERS
TOTAL
COMPANY
CONTRACTORS
OVERALL
TOTAL
COMPANY
UNITS
Julcani
Recuperada
Orcopampa
Uchucchacua
Mallay
Poracota
Tambomayo
Shila Paula
Arequipa
San Gabriel
Lima
(Projects)
Lima
Total
Buenaventura
La Zanja
Conenhua
Molle Verde
Rio Seco
El Brocal
Coimolache
1
1
1
0
0
1
0
0
1
1
25
31
0
2
0
1
5
1
52
2
88
112
18
0
91
2
5
12
15
210
607
48
22
10
18
59
83
4
1
6
17
0
0
3
0
3
1
10
101
146
1
68
1
3
313
5
537
48
0
152
133
23
0
125
3
0
3
0
0
75
1
314
265
33
0
160
25
0
1
2
0
180
4
561
528
74
0
380
30
8
18
28
336
801
56
981
60
1,135
1,696
2,097
2,625
39
3
917
9
0
88
296
63
113
3
1,297
39
8
106
324
399
487
876
2,147
5,504
7,651
39
0
3
71
24
63
52
17
1
0
347
46
140
109
15
93
748
198
1,014
1,154
57
100
107
166
115
200
3,260
4,008
2,186
2,384
687
1,339
3,450
12,228
15,678
Overall Total
40
847
CHANGE IN NUMBER OF EMPLOYEES
UNIT
Julcani
Recuperada
Orcopampa
Uchucchacua
Antapite
Poracota
Mallay
Lima
Shila Paula
San Gabriel
Breapampa
Molle Verde
Río Seco
La Zanja
Conenhua
El Brocal
Coimolache
Tambomayo
Total
2018
2017
2016
180
4
569
528
0
0
74
364
30
18
0
15
93
140
109
748
198
380
195
4
597
535
0
0
127
384
34
22
0
12
88
162
167
816
182
392
161
6
584
504
8
1
166
359
34
33
5
15
79
163
246
666
167
330
3,450
3,717
3,527
94
2018 Annual Report Table 5
TOTAL PRODUCTION
% Part
Ag
Oz
Au
Oz
Pb
DMT
Zn
DMT
Cu
DMT
Tambomayo
100%
3,929,808
129,172
4,220
8,685
Orcopampa
100%
312,250
115,887
Uchucchacua
100%
15,420,102
19,122
21,840
Julcani
Mallay
El Brocal
La Zanja
100%
2,482,907
100%
514,081
71
319
1,048
169
1,768
4,151
61.43%
3,901,868
21,429
20,582
45,593
46,231
53.06%
217,174
71,630
Tantahuatay
40.10%
791,181
173,192
Yanacocha
43.65%
1,076,493
514,563
Cerro Verde
19.58%
4,555,191
476,013
Total Content
33,201,055
1,026,263
46,740
80,270
522,413
95
Table 5
PRODUCTION ATTRIBUTABLE TO BUENAVENTURA
Ag
Oz
Au
Oz
Pb
TMS
Zn
TMS
Cu
TMS
Tambomayo
3,929,808
129,172
4,220
8,685
Orcopampa
312,250
115,887
Uchucchacua
15,420,102
19,122
21,840
Julcani
Mallay
El Brocal
La Zanja
2,482,907
514,081
71
319
1,048
1,768
4,151
169
2,396,918
13,164
12,644
28,008
28,400
115,233
38,007
Tantahuatay
317,224
69,441
Yanacocha
494,648
236,442
96
Cerro Verde
891,906
93,203
Total Content
26,875,077
602,503
38,801
62,685
121,772
2018 Annual Report 97
98
2018 Annual Report SHAREHOLDING
STRUCTURE
CIA. DE MINAS BUENAVENTURA S.A.A.
SECURITIES AREA
Shareholding Structure and Nationality with Stake of Over 5%
As of December 31, 2018
Total Common Shares 274’889,924
99
Name
Stake Percentage
Nationality
Compañía Minera Condesa S.A.
Roque Benavides Ganoza
Raúl Benavides Ganoza
The Bank of New York Mellon Dr. (*)(**)
Total
(*)THE BANK OF NEW YORK MELLON DR. Depositary bank for holders of ADRs.
(**)Includes some members of the Benavides family.
7.69
5.06
5.02
76.89
94.66
Peruvian
Peruvian
Peruvian
American
SHAREHOLDING COMPOSITION, COMMON SHARES WITH VOTING RIGHTS
AS OF DECEMBER 31, 2018
HOLDINGS
Less than 1%
From 1% - 5%
From 5% - 10%
Over 10%
Total
No. OF
SHAREHOLDERS
STAKE
PERCENTAGE
1023
1
3
1
1028
3.81
1.53
17.77
76.89
100.00
SHAREHOLDING COMPOSITION,
INVESTMENT SHARES AS OF DECEMBER 31, 2018
Total investment Shares
744,640
HOLDINGS
Less than 1%
From 1% - 5%
From 5% - 10%
Over 10%
Total
No. OF
SHAREHOLDERS
STAKE
PERCENTAGE
892
2
1
1
896
28.90
2.30
5.45
63.35
100.00
100
2018 Annual Report SHAREHOLDER STRUCTURE BY INVESTOR TYPE
AS OF DECEMBER 31, 2018
HOLDINGS BY SHAREHOLDER TYPE OF SHARES OR
SECURITIES INCLUDED IN THE S&P PERÚ SELECTIVE
INDEX (AS OF THE CLOSE OF THE FISCAL YEAR)
No. OF
HOLDERS
STAKE %
Members of the Company’s Board of Directors
and Senior Management, including relatives
Company employees not included in no. 1
17
0
12.90%
0.00%
Individuals not included in no. 1 and no. 2
963
2.05%
1
2
3
4
5
6
7
8
9
Pension funds managed by private pension
fund management companies under the
supervision of the Superintendency of Banking,
Insurance, and AFPs
Pension funds managed by the Pension
Normalization Office (ONP)
Peruvian government entities, with the
exception of those included in no. 5
Banks, financial institutions, municipal savings
and loan banks, EDPYMES, agricultural credit
banks, and savings and loan cooperatives under
the supervision of the Superintendency of
Banking, Insurance, and AFPs
Insurance companies under the supervision of
the Superintendency of Banking, Insurance,
and AFPs
Brokerage agents, under the supervision
of the SMV
10
Investment funds, mutual funds, and trust
estates within the scope of the Stock Exchange
Act and the Investment Fund Act, and bank
trusts within the scope of the General Financial
System Act
101
1
0
1
0
1
1
0
0.00%
0.00%
0.01%
0.00%
0.00%
0.00%
0.00%
Memoria Anual 2018
HOLDINGS BY SHAREHOLDER TYPE OF SHARES OR
SECURITIES INCLUDED IN THE S&P PERÚ SELECTIVE
INDEX (AS OF THE CLOSE OF THE FISCAL YEAR)
No. OF
HOLDERS
STAKE %
11
12
13
Foreign free-standing trusts and bank trusts,
where identifiable
Foreign depositaries listed as holders of the
share under ADR or ADS programs
Foreign depositaries listed as holders of shares
not included in no. 12
14
Foreign custodians listed as holders of shares
15
Entities not included in the preceding numbers
Shares belonging to the S&P/BVL Perú Select
Index or securities representing these shares, in
the Company’s portfolio
16
Total
HOLDINGS BY RESIDENCY OF THE SHAREHOLDERS
OF THE SHARE OR SECURITY INCLUDED IN THE S&P/
BVL PERÚ SELECT INDEX (AS OF THE CLOSE OF THE
FISCAL YEAR)
Domiciled
Non-Domiciled
Total
0
1
0
0
41
2
0.00%
76.89%
0.00%
0.00%
0.46%
7.69%
1028
100.00%
No. OF
HOLDERS
STAKE %
980
48
1028
22.65%
77.35%
100.00%
102
103
104
2018 Annual Report SHARE AND
ADS BEHAVIOR
105
BEHAVIOR OF SHARES AND ADS’s 2018
BVN. SECURITIES
ADS PRICE
Month
Opening
Closing
High
Low
Average
US$
S/
US$
S/
US$
S/
US$
S/
US$
S/
January
14.14
45.67
15.45
49.70
16.23
52.18
14.06
45.41
15.09
48.54
February
15.60
50.19
15.63
50.80
16.12
52.71
14.17
46.11
15.46
50.25
March
15.29
49.86
14.66
47.34
16.50
53.63
14.33
46.90
15.39
49.69
April
May
June
July
15.35
49.57
15.87
51.43
16.74
54.22
15.35
49.57
16.23
52.60
15.78
51.29
15.32
50.13
15.92
51.74
15.06
49.38
15.38
50.32
15.52
50.81
13.70
44.85
16.15
52.86
13.58
44.43
14.84
48.59
13.50
44.39
13.68
44.76
13.85
45.54
12.46
40.77
13.20
43.40
106
August
13.82
45.25
12.50
41.23
13.82
45.25
11.81
39.13
12.76
41.78
September
12.50
41.34
13.30
43.92
13.75
45.38
12.10
40.17
12.98
42.86
October
13.41
44.37
13.90
46.70
14.44
48.13
13.00
43.21
13.91
46.74
November
14.22
47.88
14.04
47.44
14.90
50.45
13.60
45.86
14.28
48.25
December
14.05
47.52
16.10
54.26
16.50
55.41
14.05
47.52
15.98
53.85
2018 Annual Report Month
January
February
March
April
May
June
July
August
September
October
November
December
Opening
Closing
3.23
3.22
3.26
3.23
3.25
3.27
3.29
3.27
3.31
3.31
3.37
3.38
3.217
3.25
3.229
3.241
3.272
3.274
3.272
3.298
3.302
3.36
3.379
3.37
TC
High
3.215
3.27
3.25
3.239
3.25
3.273
3.288
3.274
3.3
3.333
3.386
3.358
Low
Average
3.23
3.254
3.273
3.229
3.279
3.272
3.272
3.313
3.32
3.324
3.372
3.382
3.217
3.25
3.229
3.241
3.272
3.274
3.288
3.274
3.302
3.36
3.379
3.37
107
SHARE PRICE
BUENAVENTURA COMMON (S/)
Month
January
February
March
April
May
June
July
August
September
October
November
December
Opening
Closing
45.25
49.40
50.00
49.15
49.20
51.70
40.00
44.90
42.60
44.70
46.50
47.90
51.50
50.00
47.01
52.50
50.00
45.00
43.40
41.00
43.00
45.90
47.00
53.60
High
51.50
52.00
50.00
52.80
50.00
53.09
43.40
44.90
43.00
47.05
47.00
54.94
Low
Average
45.25
49.40
47.01
49.15
48.50
44.53
40.00
39.00
42.60
44.20
46.00
47.90
49.78
50.87
48.67
50.35
49.14
48.88
41.24
42.73
42.61
45.50
46.85
54.26
108
2018 Annual Report BUENAVENTURA INVESTMENT (S/)
Opening
Closing
21.99
22.15
High
22.15
Low
Average
21.99
22.01
22.15
22.15
22.15
22.15
20.90
Month
January
February
March
April
May
June
July
August
September
19.60
19.60
19.60
19.60
October
November
December
22.05
19.60
19.59
109
110
2018 Annual Report FINANCIAL
STATEMENTS
111
112
Paredes, Burga & Asociados
Sociedad Civil de Responsabilidad Limitada
Dictamen de los auditores independientes
Report of Independent Registered Public Accounting Firm
Al Directorio y los Accionistas de Compañía de Minas Buenaventura S.A.A.
Hemos auditado los estados financieros consolidados adjuntos de Compañía de Minas Buenaventura
S.A.A. (una sociedad anónima abierta peruana) y Subsidiarias (en adelante “el Grupo”), que
To the Shareholders and the Board of Directors of Compañía de Minas Buenaventura S.A.A.
comprenden el estado consolidado de situación financiera al 31 de diciembre de 2018 y de 2017, y
and Subsidiaries.
los correspondientes estados consolidados de resultados, de resultados integrales, de cambios en el
Opinion on the Financial Statements
patrimonio neto y de flujos de efectivo por los años terminados el 31 de diciembre de 2018, 2017 y de
2016, y el resumen de las políticas contables significativas y otras notas explicativas.
We have audited the accompanying consolidated statements of financial position of
Compañía de Minas Buenaventura S.A.A., and Subsidiaries (together the Group) as of
Responsabilidad de la Gerencia sobre los estados financieros consolidados
December 31, 2018 and 2017, and related consolidated statements of profit or loss, other
La Gerencia es responsable de la preparación y presentación razonable de estos estados financieros
comprehensive income, changes in equity and cash flows for each of the three years in
consolidados de acuerdo con Normas Internacionales de Información Financiera, emitidas por el
the period ended December 31, 2018, and the related notes (collectively referred to as the
International Accounting Standards Board (IASB) y del control interno que la Gerencia determine que
“consolidated financial statements“). In our opinion, the consolidated financial statements
es necesario para permitir la preparación de estados financieros consolidados libres de errores
present fairly, in all material respects, the consolidated financial position of the Group at
materiales, ya sea debido a fraude o error.
December 31, 2018 and 2017, and the consolidated results of its operations and its cash
flows for each of the three years in the period ended December 31, 2018, in conformity
Responsabilidad del Auditor
with International Financial Reporting Standards as issued by the International Accounting
Nuestra responsabilidad es expresar una opinión sobre estos estados financieros consolidados sobre
Standards Board.
la base de nuestra auditoría. Nuestra auditoria fue realizada de acuerdo con Normas Internacionales
We also have audited, in accordance with the standards of the Public Company Accounting
de Auditoría aprobadas para su aplicación en Perú por la Junta de Decanos del Colegio de
Oversight Board (United States) (PCAOB) the Group´s internal control over financial
Contadores Públicos del Perú. Tales normas requieren que cumplamos con requerimientos éticos, y
planifiquemos y realicemos la auditoría para obtener una seguridad razonable de que los estados
reporting as of December 31, 2018, based on criteria established in Internal Control -
financieros consolidados están libres de errores materiales.
Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (2013 framework) and our report dated March 29, 2019 expressed
Una auditoría comprende la aplicación de procedimientos para obtener evidencia de auditoria sobre
an unqualified opinion thereon.
los importes y la información revelada en los estados financieros consolidados. Los procedimientos
seleccionados dependen del juicio profesional del auditor, incluyendo la evaluación de los riesgos de
Basis for Opinion
que existan errores materiales en los estados financieros consolidados, ya sea debido a fraude o
These consolidated financial statements are the responsibility of the Group‘s management.
error. Al realizar esta evaluación de riesgos, el auditor toma en consideración el control interno
pertinente del Grupo para la preparación y presentación razonable de los estados financieros
Our responsibility is to express an opinion on the Group‘s consolidated financial statements
consolidados, a fin de diseñar procedimientos de auditoría de acuerdo con las circunstancias, pero no
based on our audits. We are a public accounting firm registered with the PCAOB and are
con el propósito de expresar una opinión sobre la efectividad del control interno del Grupo. Una
required to be independent with respect to the Group in accordance with the U.S. federal
auditoría también comprende la evaluación de si los principios de contabilidad aplicados son
securities laws and the applicable rules and regulations of the Securities and Exchange
apropiados y si las estimaciones contables realizadas por la Gerencia son razonables, así como una
Commission and the PCAOB.
evaluación de la presentación general de los estados financieros consolidados.
Inscrita en la partida 11396556 del Registro de Personas Jurídicas de Lima y Callao
Miembro de Ernst & Young Global
2018 Annual Report
Paredes, Burga & Asociados
Sociedad Civil de Responsabilidad Limitada
Dictamen de los auditores independientes
Report of Independent Registered Public Accounting Firm (continued)
Al Directorio y los Accionistas de Compañía de Minas Buenaventura S.A.A.
Hemos auditado los estados financieros consolidados adjuntos de Compañía de Minas Buenaventura
S.A.A. (una sociedad anónima abierta peruana) y Subsidiarias (en adelante “el Grupo”), que
We conducted our audits in accordance with the standards of the PCAOB. Those standards
comprenden el estado consolidado de situación financiera al 31 de diciembre de 2018 y de 2017, y
require that we plan and perform the audit to obtain reasonable assurance about whether
los correspondientes estados consolidados de resultados, de resultados integrales, de cambios en el
the consolidated financial statements are free of material misstatement, whether due to
patrimonio neto y de flujos de efectivo por los años terminados el 31 de diciembre de 2018, 2017 y de
error or fraud. Our audits included performing procedures to assess the risks of material
2016, y el resumen de las políticas contables significativas y otras notas explicativas.
misstatement of the consolidated financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining,
Responsabilidad de la Gerencia sobre los estados financieros consolidados
on a test basis, evidence regarding the amounts and disclosures in the consolidated
La Gerencia es responsable de la preparación y presentación razonable de estos estados financieros
financial statements. Our audits also included evaluating the accounting principles used and
consolidados de acuerdo con Normas Internacionales de Información Financiera, emitidas por el
significant estimates made by management, as well as evaluating the overall presentation
International Accounting Standards Board (IASB) y del control interno que la Gerencia determine que
of the consolidated financial statements. We believe that our audits provide a reasonable
es necesario para permitir la preparación de estados financieros consolidados libres de errores
basis for our opinion.
materiales, ya sea debido a fraude o error.
Responsabilidad del Auditor
Nuestra responsabilidad es expresar una opinión sobre estos estados financieros consolidados sobre
la base de nuestra auditoría. Nuestra auditoria fue realizada de acuerdo con Normas Internacionales
de Auditoría aprobadas para su aplicación en Perú por la Junta de Decanos del Colegio de
Contadores Públicos del Perú. Tales normas requieren que cumplamos con requerimientos éticos, y
planifiquemos y realicemos la auditoría para obtener una seguridad razonable de que los estados
financieros consolidados están libres de errores materiales.
Paredes, Burga & Asociados S. Civil de R.L.
Una auditoría comprende la aplicación de procedimientos para obtener evidencia de auditoria sobre
A member practice of Ernst & Young Global Limited
los importes y la información revelada en los estados financieros consolidados. Los procedimientos
seleccionados dependen del juicio profesional del auditor, incluyendo la evaluación de los riesgos de
que existan errores materiales en los estados financieros consolidados, ya sea debido a fraude o
error. Al realizar esta evaluación de riesgos, el auditor toma en consideración el control interno
pertinente del Grupo para la preparación y presentación razonable de los estados financieros
consolidados, a fin de diseñar procedimientos de auditoría de acuerdo con las circunstancias, pero no
con el propósito de expresar una opinión sobre la efectividad del control interno del Grupo. Una
auditoría también comprende la evaluación de si los principios de contabilidad aplicados son
/s/ Katherine Villanueva
apropiados y si las estimaciones contables realizadas por la Gerencia son razonables, así como una
evaluación de la presentación general de los estados financieros consolidados.
We have served as the Group‘s auditor since 2002
Lima, Peru
March 29, 2019
Inscrita en la partida 11396556 del Registro de Personas Jurídicas de Lima y Callao
Miembro de Ernst & Young Global
113
114
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated statements of financial position
As of December 31, 2018 and 2017
2018
US$(000)
2017
US$(000)
Assets
Current assets
Cash and cash equivalents
Trade and other receivables, net
Inventories, net
Income tax credit
Prepaid expenses
Hedge derivative financial instruments
Non-current assets
Trade and other receivables, net
Inventories, net
Income tax credit
Investments in associates and joint ventures
Mining concessions, development costs, property, plant and
equipment, net
Investment properties, net
Deferred income tax asset, net
Prepaid expenses
Other asset, net
Non-current assets
Total assets
Liabilities and shareholders’ equity, net
Current liabilities
Bank loans
Trade and other payables
Provisions and contingent liabilities
Income tax payable
Financial obligations
Hedge derivative financial instruments
Non-current liabilities
Trade and other payables
Provisions and contingent liabilities
Financial obligations
Contingent consideration liability
Deferred income tax liabilities, net
Non-current liabilities
Total liabilities
Shareholders’ equity, net
Capital stock
Investment shares
Additional paid-in capital
Legal reserve
Other reserves
Retained earnings
Other reserves of equity
Shareholders ‘equity, net attributable to owners of the parent
Non-controlling interest
Total shareholders’ equity, net
369,200
211,715
135,919
24,396
17,145
2,759
761,134
40,593
3,812
319
1,473,382
1,847,615
222
38,305
26,578
25,261
3,456,087
4,217,221
95,000
188,084
68,172
1,760
46,166
−
399,182
639
199,762
540,896
15,755
31,422
788,474
1,187,656
750,497
791
218,450
163,115
269
1,675,909
(703)
2,808,328
221,237
3,029,565
214,551
314,308
132,287
23,165
17,551
−
701,862
44,191
3,238
3,413
1,536,887
1,949,555
222
43,129
27,555
22,761
3,630,951
4,332,813
96,215
233,355
76,847
2,081
83,991
28,705
521,194
663
164,877
549,092
17,570
15,790
747,992
1,269,186
750,497
791
218,450
163,071
269
1,728,847
(13,888)
2,848,037
215,590
3,063,627
Total liabilities and shareholders’ equity, net
4,217,221
4,332,813
2018 Annual Report Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated statements of profit or loss
For the years ended December 31, 2018, 2017 and 2016
Continuing operations
Operating income:
Net sales of goods
Net sales of services
Royalty income
Total operating income
Operating costs
Cost of sales of goods, excluding depreciation and
amortization
Cost of services, excluding depreciation and amortization
Exploration in operating units
Depreciation and amortization
Mining royalties
Total operating costs
Gross profit
Operating expenses, net
Administrative expenses
Exploration in non-operating areas
Selling expenses
Reversal (provision) and contingent liabilities
Impairment recovery (loss) of long-lived assets
Write – off of stripping activity asset
Other, net
Total operating expenses
Operating profit
Other income (expense), net
Finance costs
Net gain (loss) from currency exchange difference
Share in the results of associates
Finance income
Total other income (expenses), net
Profit (loss) before income tax
Current income tax
Deferred income tax
Profit (loss) from continuing operations
Discontinued operations
Net loss from discontinued operations attributable to equity
holders of the parent
Profit (loss) for the year
Attributable to:
Equity holders of the parent
Non-controlling interest
Basic and diluted profit (loss) per share attributable to
equity holders of the parent, stated in U.S. dollars
Profit (loss) for continuing operations, basic and diluted per
share attributable to equity holders of the parent,
expressed in US dollars
2018
US$(000)
2017
US$(000)
2016
US$(000)
1,122,995
24,001
20,385
1,167,381
1,223,942
29,697
20,739
1,274,378
1,015,670
28,782
24,339
1,068,791
(625,484)
(627,433)
(497,812)
(4,318)
(90,343)
(241,286)
(21,526)
(982,957)
184,424
(78,760)
(36,307)
(27,522)
11,239
5,693
−
(5,012)
(130,669)
53,755
(38,456)
(1,366)
(1,144)
9,686
(31,280)
22,475
(16,928)
(9,998)
(4,451)
(7,203)
(11,654)
(13,445)
1,791
(11,654)
(0.05)
(0.02)
(12,954)
(94,928)
(213,722)
(31,217)
(980,254)
294,124
(83,597)
(18,262)
(24,088)
(13,879)
(21,620)
(13,573)
(13,589)
(188,608)
105,516
(34,623)
2,928
13,207
5,517
(12,971)
(10,754)
(96,149)
(192,647)
(27,611)
(824,973)
243,818
(81,692)
(26,589)
(21,733)
(565)
−
−
18,957
(111,622)
132,196
(31,580)
2,638
(365,321)
6,830
(387,433)
92,545
(255,237)
(23,837)
5,825
74,533
(39,444)
(14,060)
(308,741)
(10,098)
64,435
(19,073)
(327,814)
60,823
3,612
64,435
0.24
0.28
(323,492)
(4,322)
(327,814)
(1.27)
(1.20)
115
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated statements of cash flows
For the years ended December 31, 2018, 2017 and 2016
Operating activities
Proceeds from sales
Tax recovery
Dividends received
Proceeds from insurance claim
Royalty received
Interest received
Payments to suppliers and third parties
Payments to employees
Income tax paid
Interest paid
Payments of mining royalties
Net cash and cash equivalents provided by operating activities
Investing activities
Proceeds from sale of mining concessions, development costs, property,
plant and equipment
Additions to mining concessions, development costs, property, plant and
equipment
Payments for acquisition of other assets
Proceeds from collection of loan to an associate
Net cash and cash equivalents used in investing activities
Financing activities
Proceeds from bank loans
Payments of bank loans
Proceeds from financial obligations
Payments of financial obligations
Dividends paid to controlling shareholders
Dividends paid to non-controlling shareholders
Increase of restricted bank accounts
Purchase of treasury share
Acquisition of non-controlling interest
Net cash and cash equivalents provided by (used in) financing
activities
Increase in cash and cash equivalents for the year, net
Cash and cash equivalents at beginning of year
Cash and cash equivalents at year-end
Financing and investing activities not affecting cash flows:
Changes in mine closures plans
Contingent consideration liability
Accounts receivable from sale of assets
2018
US$(000)
2017
US$(000)
2016
US$(000)
1,216,294
106,656
46,792
38,793
20,013
2,383
(861,282)
(151,602)
(30,898)
(27,699)
(13,190)
346,260
1,197,523
102,548
9,823
-
21,565
3,169
(872,467)
(160,891)
(38,121)
(30,402)
(20,165)
212,582
1,003,422
117,661
142,340
-
25,961
2,140
(672,419)
(138,113)
(35,401)
(34,138)
(20,052)
391,401
2,240
1,962
7,180
(111,270)
(259,507)
(366,834)
(8,529)
−
(117,559)
95,000
(95,000)
-
(45,222)
(22,860)
(5,560)
(410)
−
−
(5,405)
124,800
(138,150)
(5,222)
−
(364,876)
341,215
(300,000)
80,000
(32,599)
(22,099)
(6,036)
(285)
−
(621)
200,500
(442,957)
275,210
(33,476)
(7,621)
(7,400)
(2,087)
(1,210)
(5,459)
(74,052)
59,575
(24,500)
154,649
214,551
369,200
134,007
80,544
214,551
42,874
1,815
2,715
10,594
1,773
5,371
2,025
78,519
80,544
34,532
2,349
5,204
116
2018 Annual Report MEMBERS OF THE
MANAGEMENT
117
THE BOARD
Roque Benavides
Chairman of the Board
Starting on Mar. 25, 2011
Felipe Ortiz de Zevallos
Director
Starting on Aug. 27,
2003
José Miguel Morales
Director
Starting on Jul. 31, 2012
Germán Suárez
Director
Starting on Mar. 31,
2005
William Champion
Director
Starting on Jan. 4, 2016
Diego de la Torre
Director
Starting on Mar. 28,
2017
Nicole Bernex
Director
Starting on Jan. 1, 2018
THE MANAGEMENT
Víctor Gobitz C.
General Manager
Starting on Jan. 2, 2017
Raúl Benavides
Leandro García R.
Vice President of Business
Development
Starting on Jul. 1, 1997
Vice President and Chief Financial
Officer
Starting on Dec. 1, 2017
118
THE MANAGEMENT
Juan Carlos Ortiz
Vice President of Operations
Starting on May 1, 2018
Alejandro Hermoza
Vice President of Sustainability
Starting on Sep. 2, 2008
Oswaldo Cabrera R.
Information and Communications
Technology Manager
Pedro Torres T.
Accounting Manager
Luz Campodónico A.
Internal Auditing Manager
Daniel Dominguez V.
Logistics Manager
José Malca La Fuente
Human Resources Manager
Starting on Sep. 1, 2018
Gulnara La Rosa R.
Legal Manager
Edgar Córdova M.
Social Affairs and Mine
Property Manager
Ignacio Agramunt B.
Innovation Manager
Starting on Jan. 15, 2018
Renzo Macher C.
Projects Manager
Julio Meza Paredes
Geology Manager
Juan Carlos Salazar C.
Explorations Manager
Carlos Rodríguez Vigo
Environmental Manager
Diego Angulo de Avilés
Planning Manager
Alan Angles Arrue
Sustainment Operations Project
Manager
Tomas Chaparro D.
Safety Manager
Sandro Arce Valdivia
Asset Manager
Ricardo Huancaya Delgado
Technical Manager for
Underground Operations
Starting on Jul. 1, 2018
Alex Lobo Guillén
Technical Manager for Open Pit
Operations
Starting on Jul. 1, 2018
Julio Rojas Echenique
Operations Manager
Until Jun. 30, 2018
Marco Oyanguren L.
Operations Manager
2018 Annual Report THE MANAGEMENT
Percy Ponce B.
Plant and Metallurgical
Research Manager
Starting on Jan. 1, 2018
Rubén Valer C.
Project Manager - San Gabriel
LIMA
Héctor Alzamora B.
Director of Processes
Starting on Dec. 1, 2017
Julio Avalos C.
Director of Maintenance Planning
Starting on Mar. 3, 2018
Augusto Bejarano Vásquez
Director of Tax Accounting
Rosemarie Boltan Atoche
Regional Director of
Environmental Management
Juan Buhytron Q.
Guillermo Chang Chag
Director of ICT
Operational Applications
Director of Financial
and Process Auditing
Carlos Claux Mora
Director of Social Responsibility
and Development
Juan Collao Guanilo
Director of Sales
Andrés Condori Benavides
Director of Geology
Starting on Jan. 1, 2018
119
Alan Cruz Campos
Director of Safety
Until Sep. 19, 2018
Pedro Navarro B.
Director of Safety
Starting on Oct. 15, 2018
Fredy Oscategui S.
Director of Safety
Starting on Aug. 1, 2017
Miguel Díaz Romero
Director of Financial Accounting
Jorge Falla Cordero
Director of Permits and Obligations
Luis Fernández De Paredes
Robles
Director of Regional Explorations
Alfredo Gallardo Ríos
Regional Director of
Environmental Management
José López La Torre
Director of Compliance
120
Rolando Ligarda C.
Director of Regional Explorations
Starting on Jul. 7, 2018
Fernando Mayor Najera
Neil Mendoza Hoyos
Director of Compliance
and Research Auditing
Director of Asset
Management Reliability
Freddy Meza Padilla
Director of Project Development
Fernando Ortiz De Zevallos
Málaga
Director of Business Development
Alberto Peña Alburqueque
Director of Modeling and Resources
Cecilia Puga Buse
Director of the Treasury
Ana María Rivera Calderón
Director of Social Management
Starting on Feb. 1, 2018
Guillermo Shoof A.
Legal Director
Starting on Jan. 1, 2018
Exequiel Salazar
Culquicondor
Raúl Ponce de León
Director of Procurements
Until Sep. 30, 2018
Director of Service Contracts
and Management
Starting on Jan. 1, 2018
Juan Martin Chávez L.
Director of Materials
and Assets Procurement
Starting on Sep. 1, 2018
Rafael Guillen Llerena
Director of Logistics
Starting on Sep. 1, 2018
Harry Silva Nichos
Director of Project Control
Starting on Nov. 8, 2017
José Trujillo Salcedo
Director of Regional Explorations
Starting on Jul. 1, 2018
Pablo Valladares Hernández
Juan Carlos Vargas Byrne
Regional Director of
Environmental Management
Director of Labor Relations
and Personnel Management
Julio Velásquez Miñán
Director of Safety
Silvia Vicente León
Director of ICT Systems
Manuel Villalobos Berrocal
Director of Administrative
Control – Units
José Villalobos Tamindzija
Director of Information Security
and ICT Risks
Starting on Feb. 1, 2018
Juan Pablo Zoeger La Hoz
Director of Human Resources
Management and Development
2018 Annual Report UCHUCCHACUA
Andrés Osorio Anaya
Unit Manager
Juan Ayala López
Plant Supervisor
José Luis Aquino Aquino
Geology Supervisor
Juan Carlos Oré Mego
Mine Supervisor
Williams Noel Vásquez
Maintenance Supervisor
Until Aug. 24, 2018
Christian Aragón Díaz
Maintenance Supervisor
Starting on Dec. 4, 2018
Javier Raya Quispe
Planning and Engineering
Supervisor
Fabricio Huerta Luza
Project Supervisor
César Carrasco Loayza
Environmental Management
Supervisor
Sabino Velásquez Tiznado
Safety Supervisor
Until Jun. 30, 2018
Marco Negrón Tunjar
Safety Supervisor
Starting on May 1, 2018
César Augusto Rondinelli
Zaga
Social Affairs Supervisor
Edwin Chuquipul
Administrative Supervisor
Until Nov. 30, 2018
Enrique Romero Graus
Human Resources Supervisor
Julio Delgado Z.
Unit Accountant
121
MALLAY
Andrés Osorio Anaya
Unit Manager
Juan Ayala López
Plant Supervisor
Dante Gavidia Cannon
Planning and Engineering
Supervisor
Until Jul. 31, 2018
Juan Carlos Bellido
Geology Supervisor
Until Jul. 31, 2018
Marco López Carranza
Mine Supervisor
Until Jul. 31, 2018
Luis Valdiviezo Guamán
Safety Supervisor
Until Jul. 31, 2018
Ciro López Vergara
Head of Human Resources
ORCOPAMPA
Carlos Ramírez Rodríguez
Unit Manager
Until Nov. 15, 2018
Cristina Gutiérrez Jaramillo
Plant Supervisor
Until Aug. 15, 2018
Edwin Mendoza Begazo
Geology Supervisor
Heider Montoya Espinoza
Mine Supervisor
Rommel Cotacallapa Vera
General Maintenance Supervisor
Until May 31, 2018
Jorge Nakagawa Yep
Planning and Engineering
Supervisor
Until Aug. 31, 2018
Jimmy Gabriel Espinoza
Environmental Management
Supervisor
Walter Rondinelli Zaga
Social Affairs Supervisor
Pedro Vizcardo Martínez
Administrative Supervisor
Ángel Francia Meza
Human Resources Supervisor
122
2018 Annual Report JULCANI
Gilmar Valenzuela Salazar
Unit Manager
Until Nov. 30, 2018
José Luis Alcala Valencia
Unit Manager
Starting on Nov. 12, 2018
Carlos Montes Moya
Geology Supervisor
Yackson Enrique Figueroa
Cruz
Plant Supervisor
Jaime Jimenez Tuse
Mine Supervisor
Iván Carhuaz Castro
Social Affairs Supervisor
Henry Arcos Romucho
Environmental Management
Supervisor
Fernando Dueñas Aliaga
Safety Supervisor
Carlos Lara Moreano
Planning and Engineering
Supervisor
Rommer Mendoza Ramírez
Head of Human Resources
Salvador Salazar Zegarra
Unit Accountant
Until Aug. 31, 2018
123
TAMBOMAYO
Edgar Roque Ortiz
Unit Manager
Fernando Guillén Portugal
General Maintenance Supervisor
Until Sep. 30, 2018
William Agurto Antón
Maintenance Supervisor
Starting on Oct. 1, 2018
Edgard Atencia Daga
Mine Supervisor
Starting on Feb. 1, 2018
Roger Ccahuana Figueroa
Geology Supervisor
Kellyn Cristóbal Paredes
Planning and Engineering
Supervisor
Miguel Achata Yglesias
Safety Supervisor
Until May 15, 2018
Fernando Dueñas Aliaga
Safety Supervisor
Starting on Nov. 1, 2018
Luis Postigo Zúñiga
Project Supervisor
Percy Quea Díaz
Human Resources Supervisor
José Luis Quijahuaman
Yana
Plant Supervisor
124
Wilfredo Garzón Pérez
Environmental Management
Supervisor
Until Oct. 31, 2018
Liseth León Castro
Head of Environmental
Management
Starting on Nov. 1, 2018
Segundo Salazar Silva
Social Affairs Supervisor
Carlos Matias Medrano
Administrative Supervisor
Starting on Jan. 1, 2018
SAN GABRIEL
Mariella Núñez Hernández
Social Affairs Supervisor
Until Mar. 31, 2018
Roxana Salas Zárate
Head of Community Relations
Starting on Jul. 1, 2018
Fernando Remigio Julián
Geology Supervisor
Until Oct. 15, 2018
Edwin Arias Celis
Head of District Explorations
Starting on Jan. 1, 2018
Rubén Fernandez Soto
Construction Supervisor
2018 Annual Report LA ZANJA
Víctor Medina Yllesca
Unit Manager
Until May 31, 2018
Walter Amaya Alvarado
Geology Supervisor
Until May 31, 2018
Julián Muñoz Ganoza
Mine Supervisor
Until Jun. 18, 2018
Robinson Paredes Abanto
Plant Supervisor
Percy Chávez Rojas
Julio Ugarte Luna
Planning and Engineering
Supervisor
Environmental Management
Supervisor
Until Apr. 30, 2018
Enver Carhuaz Castro
Social Affairs Supervisor
Until Sep. 12, 2018
David Reaño Vidal
Construction Supervisor
Until Apr. 30, 2018
Hernando Saboya Robles
Safety Supervisor
Until Jun. 30, 2018
CIA. MINERA COIMOLACHE
Gary Samuel Chircca Ayesta
Unit Manager
Percy Zamora Díaz
Geology Supervisor
Manuel Aranda Villar
Mine Supervisor
Giancarlo Sarria Iraola
Administrative Supervisor
Until Jun. 30, 2018
César Esquivel Saavedra
Administrative Supervisor
Starting on Jul. 7, 2018
Christian Dávila Grados
Plant Supervisor
Until Sep. 2, 2018
Segundo Velásquez
Miranda
Plant Supervisor
Starting on Sep. 1, 2018
Víctor Orihuela Vega
Human Resources Supervisor
Roni Flores Concha
Unit Accountant
Until Aug. 31, 2018
Salvador Salazar Zegarra
Unit Accountant
Starting on Sep. 1, 2018
125
CONENHUA
Reynel Aspilcueta
Operations Manager
Until Nov. 30, 2018
Carlos Herrera Bullón
Technical Manager
Starting on Jul. 1, 2018
Julio Montoya Gonzáles
Sales Manager
EL MOLLE VERDE
Edgar Paico Salazar
Head of Construction
Miguel Pérez Fernandez
Project Director
Edgardo Prado Arce
Social Affairs Supervisor
RÍO SECO
Jaime Díaz Yosa
Unit Manager
126
José Luis Lama Manayay
Research and Development
Supervisor
Starting on Jan. 1, 2018
Vidal Mamani Machuca
Plant Operations Supervisor
Starting on Mar 21, 2018
Sandra Medina Vega
Safety Supervisor
Martín Rodríguez Serveleón
General Maintenance Supervisor
Manuel Ruiz Chocano
Administrative Supervisor
Until Feb. 28, 2018
Álvaro Castillo Sánchez
Administrative Head - Unit
Starting on May 2, 2018
Richard Villagaray Surca
Head of Plant Processes
2018 Annual Report Background of Our Board
Members and Management
Roque Benavides
Chairman of the Board
Mr. Benavides graduated with his degree in civil engineering from the Pontificia Universidad
Católica del Perú (PUCP). He holds a Master of Business Administration from the Henley
Business School at the University of Reading in the U.K. He completed the Management
Development Program at the Harvard Business School and the Advanced Management
Programme at Oxford University. He has worked at Buenaventura for forty years as a
Project Engineer, CFO, and CEO until 2017. He sits on the board of nine related companies,
as well as the Banco de Crédito del Perú and UNACEM. He was previously president of the
Peruvian Society of Mining, Petroleum, and Energy (SNMPE), and is currently president of
the Peruvian Confederation of Private Business Institutions (CONFIEP).
Felipe Ortiz de Zevallos
Director
Mr. Ortiz de Zevallos graduated with a degree in industrial engineering from the UNI, and
holds a MSc in Business Administration from the University of Rochester. He is a graduate
of the OPM Program at Harvard Business School. In addition to a range of professional,
academic, and business activities, he is the founder and president of the APOYO Group,
created in 1977. He was previously the rector of Universidad del Pacífico (2004-2006) and
Peruvian Ambassador to the United States from September 2006 to March 2009.
José Miguel Morales
Director
Attorney at law graduated from the Pontificia Universidad Católica del Perú (PUCP).
Mr. Morales completed the Sloan Program at the Stanford University School of Business.
He has been a senior attorney at the Company since 1970, and served as general counsel
from 1993 to 2010. He has been a Senior Partner at the Estudio Aurelio García Sayán law
firm since 2007, and has worked for the firm since 1965. He sits on the board of five related
companies and several other companies not engaged in mining activities. He was previously
the president of the Institute of Mining and Oil Law, the Peruvian Society of Mining, Energy,
and Petroleum (SNMPE), and the CONFIEP. He is currently the president of the Entrepreneurs
for Education Association.
127
Germán Suárez
Director
Economist graduated from the UNMSM with a Master’s Degree in Economics from
Columbia University. Mr. Suárez was previously Chairman of the Board of the Peruvian
Central Reserve Bank from April 1992 to September 2001, where he has spent most of his
professional career since 1964. He was president of Banco de la Nación (1990-1992), as well
as holding various positions in the Ministry of Economy and Finance (1981-1985) and the
International Monetary Fund (1978-1980). He sits on the board of several companies,
and is a governor to the IMF and IADB. He chaired the G-24 for IMF and World Bank affairs.
William Champion
Director
Mr. Champion holds a Bachelor’s Degree in Chemical Engineering and Biology from the
University of Arizona. He has been a board member since January 2016. He is also a
director of Gladiator Mining Group LLC, a private mining investment company based in the
United States. He has over forty years of executive, management, and operating experience
in the mining sector. He worked at Rio Tinto PLC from 2002 to 2014 in different positions
and was managing director of Río Tinto Coal Australia; managing director of Río Tinto
Diamonds; and chairman and CEO of Kennecott Utah Copper. He also worked for Phelps
Dodge Mining Company from 1984 to 1995, where he held a number of positions
(President of Phelps Dodge Chile).
Diego de la Torre
Director
Mr. De la Torre holds a Bachelor’s Degree in Business Administration from the Universidad
del Pacífico in Lima and an MBA from the London Business School in England. He is the
cofounder and Chairman of the Board of La Viga y Quikrete Perú. He is also a member of
the advisory council of the David Rockefeller Center for Latin American Studies at Harvard
University, and writes a column on the economy for the newspaper El Comercio. He was a
professor at the Universidad del Pacífico for twelve years, and has been a board member at
many important companies and institutions, including Endeavor Perú, IPAE, and Perú 2021.
Since 2005, he has been the President of the United Nations Global Compact Network in
Peru. In 2013, he received the “Complete Businessperson” award from the Latin American
Business Council (CEAL). Additionally, in 2015, he was selected as one of the Top 100
Leaders by AACSB International. He has been a board member of Buenaventura since 2017.
128
2018 Annual Report Nicole Bernex
Directora
Ms. Bernex has been a board member at BVN since January 2018. She holds a PhD in
Geography (1975) and a Master’s Degree in Geography (1971) from Université Paul Valéry
in Montpellier, France. She has been a professor in the Humanities Department of the
Pontificia Universidad Católica del Perú (PUCP) since 1984, and was the Academic Director
of the Center for Research in Applied Geography at the same university from 1984 to 2018.
She has been the Chairwoman of the Board of the Instituto Científico del Agua since 2018,
president of the Lima Geographic Society since July 2016, and is a board member of 2030
Water Resource Group Peru. She was a member of the Global Technical Committee
(2014-2017) of the Global Water Partnership and is president emerita Global Water
Partnership Perú. Vice president of the National Academy of Sciences. She was also
previously the director for Latin America and the Caribbean of the Scientific Committee of
the United Nations Convention to Combat Desertification; the coordinator of a number
of research programs; and a consultant to different international agencies (PAS-WB, UNDP,
FAO, and others). She has over 150 publications to her name.
Víctor Gobitz
General Manager
General Manager of Buenaventura since January 2017. Mr. Gobitz has also been a board
member of Sociedad Minera El Brocal S.A.A. and Sociedad Minera Cerro Verde since that
same year. Previously, he was CEO of Compañía Minera Milpo (now Nexa Resources) from
2013 to 2016; General Manager and Director at Río Alto Mining (now Tahoe Resources);
General Manager and Director at Castrovirreyna Compañía Minera; Operations Manager
at Sociedad Minera El Brocal S.A.A.; and Assistant General Manager and Director at
Volcan Compañía Minera. He is currently the director of the Peruvian Institute of Mining
Engineers (IIMP), the National Society of Mining, Energy, and Petroleum (SNMPE), the
director of GERENS Business School, and a professor at the Pontificia Universidad Católica
del Perú (PUCP). He has over twenty-five years of experience in operations and mining
projects management. He graduated from the PUCP (1986), and obtained his MBA from
ESAN Business School (1998), as well as pursuing specialized studies at the University of
Pennsylvania’s Wharton School (2005), and the Kellogg School of Management (2015).
129
130
Leandro García
Vice President of Finance and Administration
Mr. García holds a Bachelor’s Degree in Business Administration from the Universidad del
Pacífico, Bachelor’s Degree in Accounting from the same university, and Master of Business
Administration from the University of Miami in Florida. He completed the Advanced
Management Program at Harvard Business School in 2017. He worked at Buenaventura
from 1990 to 1997, where he held the position of Head of Treasury. He also worked at
Sociedad Minera El Brocal S.A.A. as Finance Manager up until 2000. He was General
Manager of Boticas BTL until 2005, and General Manager of Boticas Inkafarma until June
2011. He rejoined Buenaventura as Controller General in July 2011. He sat on the board
of Química Suiza Retail, the business that manages the MiFarma pharmacy chain, from
January 2016 to January 2018. He is the general manager of Consorcio Energético de
Huancavelica and a director of Sociedad Minera El Brocal S.A.A., Compañía Minera Condesa,
and Empresa de Generación Huanza.
Juan Carlos Ortiz
Vice President of Operations
Mr. Ortiz graduated with a degree in mining engineering from the Pontificia Universidad
Católica del Perú in 1992, and holds a Master’s Degree in Engineering from Pennsylvania
State University in the United States. He has also pursued specialized studies in mining
engineering management. Before joining Buenaventura, he was Central Technical Manager
at Volcan Compañía Minera, a polymetallic mining company and one of the largest zinc,
lead, and silver producers in the world, where he was responsible for the engineering,
projects, planning, and environmental affairs departments for Volcan Alpamarca and
Cerro de Pasco. He was also previously COO at Compañía Minera Milpo (now part of Nexa
Resources Group), where he was in charge of the operations at Cerro Lindo, Atacocha,
and El Porvenir.
2018 Annual Report Raúl Benavides
Vice President of Business Development
Mr. Benavides graduated with a Bachelor’s Degree in Mining Engineering from the
University of Missouri at Rolla. He holds a Master’s Degree in Mining Administration from
Pennsylvania State University and completed the Advanced Management Program at
Harvard Business School (AMP-160). He has served as president of the Peruvian Institute
of Mining Engineers (IIMP), as well as being the founder and president of the Mining Safety
Institute (ISEM). He is currently the President of the vocational mining school CETEMIN.
He has worked at Buenaventura since 1980, and is a director of eleven related companies.
Alejandro Hermoza
Vice President of Sustainability
131
Mr. Hermoza graduated with a degree in mechanical engineering from the University of
Maryland, and holds a Master’s Degree in Engineering from the same university, as well as
a Master’s in Business Administration from the Universidad de Ciencias Aplicadas (UPC).
He previously worked as Development Manager of the Peruvian Confederation of Private
Business Institutions (CONFIEP) and has worked at Buenaventura since 2003, where he
held the position of Community Relations Manager from 2008 to 2011; and Deputy Manager
of Administration and Human Resources from 2003 to 2008. He has been an alternate
member of the Executive Committee at Yanacocha since 2014. In 2011, he graduated from
the Advanced Management Program (AMP) at Harvard Business School.
2018
ANNUAL
REPORT
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