Compañía de Minas Buenaventura S.A.A.
Annual Report 2019

Plain-text annual report

ANNUAL REPORT TABLE OF CONTENTS 6 Letter to the Shareholders 18 67 Years of History and Long-Term Vision 28 Operations 46 Projects 22 52 Corporate Culture Other Businesses 58 Safety 62 Environmental Management 66 Social Management 70 Economic and Financial Report 74 Management Analysis and Discussion 82 Operations Summary 98 Shareholding Structure 104 Share and ADR Behavior 110 Financial Statements 118 Management Team 136 Background of the Members of the Board of Directors and Management 3 2019AnnualReport2019 Annual Report This report contains true and sufficient information regarding the business development of Compañía de Minas Buenaventura S.A.A. during fiscal year 2019. Without prejudice to the issuer’s liability, I, the undersigned, hereby assume responsibility for the content hereof, in accordance with the applicable laws. Roque Eduardo Benavides Ganoza CHAIRMAN OF THE BOARD Lima, June 17, 2020 4 5 LETTER TO THE SHAREHOLDERS TO OUR SHAREHOLDERS: THE YEAR 2019 TURNED OUT TO BE AN ATYPICAL ONE FOR PERU DUE TO A SERIES OF POLITICAL EVENTS THAT SET THE NATIONAL AGENDA, WITH AN UNDISPUTABLE IMPACT ON EVERY SINGLE ECONOMIC SECTOR. 6 7 2019AnnualReportLetter to the Shareholders The national economy grew at a moderate pace, demonstrating Peruvians’ intention to continue down the path of development as approach the bicentennial of the country’s independence. At the international level, the tensions eased between the United States and the Asian powers of China and North Korea was reason for relief, allowing for the slow recovery of the global economy, while the outlook following the United Kingdom’s exit from the European Union—Brexit—began to become clearer. Global GDP for 2019 grew by 3%, according to the Peruvian Central Reserve Bank (BCRP, for its acronym in Spanish) which was slightly higher than expected. This growth was driven by consumption, job creation (mainly in the service and manufacturing sectors) and real estate investment. The slight growth in the global economy, along with the partial bilateral trade agreements between the United States and China—which are of particular interest to both countries’ technology and agriculture sectors— temporarily staved off the possibility of recession in the US economy. Meanwhile, China reported a growth of 6% in its economy, although its manufacturing and service sectors began to rally during the last quarter of the year, according to the BCRP’s analysis. GLOBAL GDP FOR 2019 GREW BY 3% ACCORDING TO THE BCRP, WHICH WAS SLIGHTLY HIGHER THAN EXPECTED. In the Eurozone, the economy’s performance was weak for the third consecutive year, growing by just 1%, according to figures from the European Central Bank. Analysts identified three fundamental factors that accounted for this sluggishness: political instability, trade tensions, and the rapid changes occurring in the automotive industry, which is being forced to adapt to a new consumer profile. The Latin American economy registered a weak growth of just 0.1% during 2019, due to a highly complicated political and social context marked by the social crises that broke out in multiple countries across the region. In Chile, Colombia, Bolivia, and Ecuador, certain sectors of society took to the streets to voice a series of social, political, and civil demands, such as better public services. Unfortunately, these demonstrations included an element of violence that had a negative impact on the situation. During the year in review, Chile’s economy grew by 1%, Colombia’s by 3.2%, and Bolivia’s by 3.2%. Ecuador’s shrank by -0.1%. Brazil, the region’s largest economy, grew by 1.1%, as it fought to overcome the aftereffects of the Operation Car Wash case. 8 9 2019AnnualReportIn Argentina, where Peronist leader Alfredo Fernández became the new president in December 2019, the country’s economy shrank by -2.7%, while Mexico reported almost no growth at all (0.1%). Against this complicated external backdrop and a volatile internal climate, essentially due to problems between different branches of the government, Peru grew by 2.2% in 2019. Although this figure is rather modest, it was still the third-highest in the region behind Colombia and Bolivia. Major political events, some of them unprecedented, such as the arrest of political leaders tied to the Odebrecht case, the suicide of ex-president Alan García, the closing of the Congress of the Republic, and the call for new congressional elections, occupied the national agenda and led, among other consequences, to a drop in the business sector’s confidence regarding investment and new hires. After closing the Congress in September, President Martín Vizcarra’s administration used the powers of the Permanent Commission of the Legislative Branch to issue emergency orders, in accordance with Section 135 of the Peruvian Constitution. by Buenaventura, made history by taking home the gold medal as champion of the 42K marathon. According to the BCRP, the private investment portfolio in the country is estimated at USD 17 billion, spread across 115 projects. The most attractive sectors for private investment are mining and oil & gas. The mining sector alone presents an investment potential of over USD 8 billion, consisting of Quellaveco (Moquegua) at USD 5.3 billion, Mina Justa (Ica) at USD 1.6 billion, and the expansion of Toromocho (Junín) at USD 1.3 billion. Additionally, there are the Corani Project (Puno) at USD 600 million and the Coroccohuayco Project (Cusco) with a similar investment. Making these opportunities a reality will represent a tremendous leap in the possibility of generating development and creating formal jobs in the country’s regions, with positive impacts on the consumption of goods and services, as well as revenue for a range of government bodies. We are happy to note that, despite the crisis brought on by Operation Car Wash (“Lava Jato”) criminal investigation, the 2019 Pan American Games were held in Lima in July and August. As part of this successful athletic competition, Peruvian marathon runner Cristhian Pacheco, who is part of the “Quest for Gold” team sponsored In 2019, the extractive sector in Peru (mining and oil & gas) was affected by low commodity prices and a drop in production at the country’s most important mining deposits. Between October and November, however, the price of certain metals began to rebound, thanks to the cooling of the trade war between the United States and China. According to the London Bullion Market Association (LBMA) the primary reference point in the precious metals market, as of December 31, 2019, the price per ounce of gold closed at USD 1,523, compared to USD 1,281.65 per ounce in December 2018. The price of silver at the close of 2019 was USD 18.05 per ounce, compared to USD 15.47 at the end of 2018. The London Metal Exchange (LME) reported that the price per ton of copper closed 2019 at USD 6,156, and per ton of zinc at USD 2,292. Lead closed out the year at USD 1,922 per ton, and tin at USD 16,825. Buenaventura’s share price fell by 7% during 2019, closing the year at USD 15.10. This year, the Company reported a net loss of USD 28.5 M compared to a loss of USD 11.7 M the previous year. This was due mainly to a drop in net sales driven by a lower volume (USD -322 M) and counteracted by higher prices (USD +37 M). Cost of sales was also lower (USD 100 M) as were exploration expenditures at the operating units (USD 46 M) with income from affiliated companies (USD 49 M) and income from deferred taxes (USD 48 M). The net debt-to-EBITDA ratio in 2019 grew from 0.99x to 2.06x. The cash position at the close of 2019 dropped from USD 369.2 M to 210.0 M and the CAPEX for the year totaled USD 103 M. Safety continues to be a fundamental part of our activities. During 2019, we continued to focus on our efforts to eliminate accidents at our operations. Congratulations are due to Procesadora Industrial Río Seco (Huaral) for twelve months without accidents. This achievement bolsters our vision that accidents can be avoided with all of our commitment. We are certain that this success will gradually be replicated in Buenaventura’s other units and projects. Our social management was focused on two main areas: strengthening friendly, trust-based relationships with the communities that welcome us in the surroundings of our operations; and promoting sustainable growth based on a shared social responsibility outlook in which everyone—the Company, all levels of government, the community, universities, and the general public—works together for sustainable and inclusive development. PERU’S GROWTH IN 2019 WAS MODERATE, RANKING THIRD IN THE REGION, AT 2.2% 10 11 2019AnnualReportWe continued to apply best industry practices in an effort to innovate regarding environmental aspects such as responsible water management and efficient mine closure, in order to ensure the sustainability of operations and preserve our surroundings. In the human resources area, we closed 2019 with a total workforce of 12,515 people. This number includes contractor personnel (9,428) who provide services at our operations. The performance of our production units met expectations. Tambomayo, in Caylloma, Arequipa, produced 99,245 ounces of gold and 2,556,391 ounces of silver in 2019, compared to 129,172 ounces of gold and 3,928,808 ounces of silver the previous year. In Orcopampa, another gold-producing unit in the province of Castilla, Arequipa, we continued to work on centralizing operations and the implementation of a debottlenecking program, in search of greater efficiency and productivity. We also continued to focus efforts on exploration works. The Orcopampa Unit produced 41,660 ounces of gold compared to 115,887 ounces in 2018. This drop in production was due to the mine’s centralization and restructuring plan. La Zanja and Coimolache, two open-pit mines operating in Cajamarca, produced 31,500 and 162,196 ounces of gold in 2019, respectively, compared to 71,630 ounces of gold produced by La Zanja and 173,192 ounces produced by Coimolache in 2018. Uchucchacua, a silver mine in the province of Oyón, Lima, produced 10,640,913 ounces of silver, compared to 16,583,698 ounces in 2018. This unit’s production was affected by a 21-day halt in January 2019. The Julcani Unit, our flagship mine, located in Huancavelica, produced 2,609,006 ounces of silver, exceeding the 2,482,907 ounces produced the previous year. This was the result of the decision to reduce the processing volume and focus on more accessible zones with higher grades, thus reducing dilution. Sociedad Minera El Brocal (61.43% BVN) a subsidiary of Buenaventura that operates the Colquijirca Unit in Cerro de Pasco, registered a production of 43,394 metric tons of copper and 43,580 metric tons of zinc in 2019, compared to 46,231 metric tons of copper and 45,593 metric tons of zinc in 2018. At El Brocal, lead production levels came to 23,599 tons, higher than the 20,582 tons reported in 2018. The mine also produced 4,366,438 ounces of silver, which was also higher than the 3,901,869 ounces from the previous year. Sociedad Minera Cerro Verde (19.58% BVN), an affiliate that operates in Arequipa, reported a production of 455,305 metric tons of copper compared to 476,013 metric tons the previous year. Minera Yanacocha (43.65% BVN) another affiliate, located in Cajamarca, produced 527,336 ounces of gold, which was higher than the 514,564 ounces reported the previous year. The effort put into exploration works is also part of Buenaventura’s culture that helps ensure the continuity of our operations. At our underground units of Orcopampa, Uchucchacua, Tambomayo, Julcani, and El Brocal, progress consisted of 11,042 meters of exploration tunnels and 208,428 meters of diamond drill holes. In the open-pit mines of La Zanja and Coimolache, progress included 5,417 meters of diamond drill holes. Note should be made of the progress in tunnels for mine preparation and development, which totaled 62,037 meters. Of this total, 10,454 meters correspond to development and 51,583 to preparation. In terms of our project portfolio, at Yumpaq (Pasco) we purchased 500 hectares in the community of Huachus, and performed planned resources delineation works for the project. These resources helped in the development of a prefeasibility study that enabled us to include 1.7 million metric tons of ore with an average grade of 19.18 ounces per ton of silver (22.5 million ounces of silver) in the reserves of our Uchucchacua Unit. Meanwhile, the San Gabriel Project (Moquegua) completed the prefeasibility study, carried out with the company Ausenco, which estimated a total volume of 9.8 million metric tons of ore with an average grade of 5.01 grams per ton of gold (1.7 million ounces of gold). At Trapiche (Apurímac) prefeasibility studies were completed with the company M3, estimating a volume of 283 million metric tons of ore with an average grade of 0.51% of copper (1.4 million tons of copper). We are also pleased to announce that in 2019, together with Nexa, Gold Fields, and the Peruvian National Mining, Oil, and Energy Association (SNMPE) we founded the Peruvian Mining Innovation WE CLOSED 2019 WITH A TOTAL WORKFORCE OF 12,515 PEOPLE 13 2019AnnualReportHub. This initiative, which is being promoted by our Innovation Management, along with its equivalent areas in our partner companies, is the first of its kind in Peru and aims to foster collaboration in the sector to help meet the major challenges faced by mining in our country. Last but not least, the Board of Directors of Compañía de Minas Buenaventura would like to thank the management, our shareholders, our suppliers, and all of our stakeholders, giving special recognition to the team members from all our production units, projects, and offices throughout eight regions of the country. COMMENTS AS OF JUNE 16, 2020 By the time you read this letter, you will know that the effects of COVID-19 in Peru have grown more severe. The fight against the coronavirus has brought many activities nationwide to a halt, with severe social and economic consequences. In the face of this completely new and unprecedented crisis, all of us as Peruvians have been focusing our efforts on the same objective: to flatten the curve in the spread of the virus and to save as many lives as possible. At Buenaventura, we have adapted our operations to these new circumstances to safeguard the health and wellbeing of our workers, contractors, and neighboring communities, all of whom are our main priority. During the first part of quarantine, our direct operations were focused solely on critical and essential tasks, such as pumping systems, water treatment, power supply, electric substations, plant maintenance, health and occupational services, among others. However, during this time, we continued to process ore in the leach pads of our La Zanja and Coimolache units in Cajamarca. In 2020, we completed the refinancing of the syndicated loan. This new loan will be for five years with a grace period of 30 months, with six-month installments starting in October 2022. The rate was reduced to Libor (3m) + 190 bps from Libor (3m) + 215 bps. It should be noted that our Company has a solid cash position of USD 222 million as of March 2020, with fixed monthly costs for critical activities of approximately USD 12 to 14 million. We continue to monitor current growth CAPEX, G&A, and the payment of dividends to shareholders with a focus on preserving the Company’s liquidity. 14 15 2019AnnualReportThe Peruvian government issued an Executive Order (Decreto Supremo) authorizing mining companies to gradually recommence their activities as of May 11, 2020. documentation to restart operations at all of our mining units, and we have the permits issued by the Ministry of Energy and Mines for such purpose. For this purpose, we have a strict new health protocol (Workplace Plan for COVID-19 Surveillance, Prevention, and Control) approved by the relevant authorities, with the objective of preventing and minimizing the spread of the virus at our operations and projects. To comply with the new regulations, Buenaventura has decided to restart its operations in two stages, prioritizing mines with the highest production levels. It should be stressed that we have already submitted all of the required Our plan for restarting operations has been conducted as follows: Stage 1 (started May 16, 2020): › › › › Tambomayo Uchucchacua El Brocal (Tajo Norte y Marcapunta) Coimolache Stage 2 (started June 16, 2020) › › › Orcopampa Julcani La Zanja We would also like to report that on March 30, we made the decision to suspend our forecasts for all of 2020, since it was not possible at that time to accurately quantify the full impact of COVID-19 on our operations and our future performance. This makes it difficult to estimate the results for this year. However, we continue to improve our current operating plans to focus on high-grade zones while maintaining exploration and cost reduction efforts. Buenaventura will provide its updated forecast once all operations have reached full capacity and we have a clearer outlook on the results for 2020. As we indicated in our two- stage plan, we expect to reach full capacity by the end of July. We continue to work with leadership and sacrifice, as a united team, to provide the best for our operations, our families, and our country. We know we will come out of this stronger, more solid, and satisfied with having fulfilled our duty. We would like to offer a special acknowledgment to our workers, contractors, suppliers, and communities. We appreciate you and value your efforts deeply. Let’s continue to build Buenaventura’s future together! Sincerely, Roque Benavides Chairman of the Board 16 17 2019AnnualReport67 YEARS OF HISTORY AND LONG-TERM VISION Buenaventura has over 67 years of experience in the exploration, development, construction, and operation of mines, as well as joint ventures with world-class companies. 18 19 2019AnnualReportSILVER Founding of Buenaventura. Acquisition of Julcani Mine in Huancavelica. BVN lists on Lima Stock Exc Stock Exchange COPPER BVN acquires 11% of El Brocal. As of this date, BVN holds 61%. JV1: el brocal Sociedad Minera El Brocal S.A.A COPPER Privatization of Cerro Verde (with Cyprus). JV₃: (1994: 30K → 2017: 500-550K Cu MT) 18x GOLD La Zanja (nearly 1M oz/Au produced ate) to date) Mn Inauguration of Río Seco chemical plant GOLD First doré bar obtained at 53553555355553553535333311111111 1953 953 776766777777799919191919191911 1967 6796 19 11111111 1971 717717777177777717771717111 97 71 19 5555555555555555991991991991991919191 1975 97 75 19 979779777797797979999991919191911111111 1979 97 9 19 99 1993 933333333333333333 99191919191919191 19 99 1994 4444444444444 94 9919191919191911 19 996666666666 1996 66666666666 9919119111911119111191111911111 19 0100000000000 2010 000000000000 002022022220222202222022222222222 20 01 2011 111111111 11 0020202020222222 20 0133333333333333 2013 33333333333 002220222202222022220222202222222222 220 01 2014 44444444444444444 00202020220220222022222 20 66666666666666601666666666 2016 00202202220222202222022222222222 20 GOLD SILVER Orcopampa (1967: 75 → 2017: 1.5K TPD) 20x Uchucchacua (1975: 150 → 2017:~4K TDP) 25x GOLD First doré bar obtained at Yanacocha (over 36M oz/Au produced to date) JV2: First mining company in Latin America to list shares on the New York Stock Exchange GOLD Coimolache: First doré bar obtained (nearly 1M oz/Au produced to date) Huanza: Hydroelectric plan begins commercial operations (100 MW) PERUVIAN GOVERNMENT ADMINISTRATIONS ODRÍA (1948-1956) PRADO UGARTECHE (1956-1962) BELAÚNDE (1963-1968) VELASCO (1968-1975) MORALES BERMÚDEZ (1975-1980) BELAÚNDE (1980-1985) GARCÍA (1985-1990) FUJIMORI (1990-2000) TOLEDO (2001-2006) GARCÍA (2006-2011) HUMALA (2011-2016) KUCZYNSKI (2016-2018) VIZCARRA (2018-a la fecha) 20 21 2019AnnualReportCORPORATE CULTURE Vision Develop mineral resources while creating the greatest possible value for society. Mission › Be the Mining Company of choice, and the most widely accepted, among communities, authorities, and the general public. › Make the Company as highly valued as possible by all of its stakeholders. 22 23 2019AnnualReportValues SAFETY Promote respect for our team members’ lives in all of our processes, operations, and activities. HONESTY Act in an upright and honest manner, never lying, deceiving, or omitting the truth. INDUSTRIOUSNESS Bring passion to our work, giving everything our best and acting efficiently, safely, and responsibly. LOYALTY Make a commitment to the Company, its mission, vision, and values. We are all part of the same team. RESPECT Be considerate and treat others with courtesy and respect for their ideas, culture, and rights TRANSPARENCY Be truthful, clear, timely, and unambiguous in all of our communications and actions. 24 25 2019AnnualReport Strategic Map SAFETY COMMUNITY RELATIONS ENVIRONMENT Y T I L I B A N A T S U S I 26 VALUE GOLD OPERATIONS SILVER BASE METALS › La Zanja › Yanacocha › Tambomayo › Orcopampa › Coimolache › Uchucchacua › Julcani › Cerro Verde › El Brocal GOLD › San Gabriel PROJECTS SILVER › Yumpaq BASE METALS › Yanacocha Sulfuros › Coimolache Sulfuros › Trapiche - El Faique › Río Seco (Chemical Plant) 27 2019AnnualReportOPERATIONS During 2019, Compañía de Minas Buenaventura S.A.A. operated eight mining units, of which five are underground (Orcopampa, Uchucchacua, Julcani, Tambomayo, and Marcapunta) and three are open-pit (La Zanja, Coimolache, and Tajo Norte). 28 29 2019AnnualReport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 Region of Arequipa. The main structure is the Mirtha vein, which runs NW. At the southeast end, the Paola and Paola Norte are being developed. These three veins contain 85% of the mineral resources of this deposit. The explorations performed to date show economic mineralization between 4,950 and 4,100 masl, which means 850 vertical meters and 1,200 horizontal meters, thus signifying a great geological potential to be explored in the structures associated with this principal system. In 2019, the debottlenecking program was implemented, which helped reduce operating costs in the Tambomayo Unit to less than USD 100 per ton. In 2019, 640,914 DMT were processed, with 5.80 g/t Au, 4.54 oz/t Ag, 1.35% Pb At Tambomayo 640,914 TMS of ore were processed in 2019 resources (infill drilling). Three main targets were explored—Profundización, Venturosa, and Los Diques—with the goal of opening new exploration fronts around the current operating zone between levels 4,540 and 4,340. Additionally, the Mine Area performed 6,764 meters of mining work, of which 924 meters correspond to development and 5,840 meters to mine preparation. In the processing plant, the leaching of flotation concentrates (Pb) began in March 2019. Not having to leach 100% of the ore has enabled us to reduce much of the cyanide consumption, and thus, the processing cost. In October 2019, we received authorization to start operating the processing plant at 2,000 tons per day. and 1.99% Zn, recovering 99,245 ounces of gold, 2,556,391 ounces of silver, 7,603 FMT of lead and 9,672 FMT of zinc. The average annual cash cost was USD 679 /oz of gold. The mineral reserves as of December 31, 2019 are 2,445,606 DMT, with 0.120 oz/t of gold (3.75 g/t) 4.46 oz/t of silver, 1.27% lead, and 1.66% zinc, which represents 294,526 ounces of gold, 10,898,249 ounces of silver, 31,002 MT of lead, and 40,645 MT of zinc. The measured and indicated resources excluding reserves are 542,401 DMT with 0.085 oz/t of gold (2.66 g/t) 4.16 oz/t of silver, 0.79% lead, and 1.09% zinc, which represent 46,323 ounces of gold, 2,256,066 ounces of silver, 4,310 MT of lead, and 5,935 MT of zinc. In 2019, 719 meters of exploration works were executed, with 52,356 meters of diamond drill holes. This program was aimed at completing the reconnaissance of the veins within the operational footprint and recategorizing and extending the 30 31 2019AnnualReport Orcopampa (100% BVN) The Orcopampa Unit is located in the province of Castilla, in the Arequipa region, at 3,800 masl, and 150 km from the city of Arequipa in the southern Andes of Peru. It is a fissure-type epithermal deposit of precious metals (Au – Ag). Currently, it operates the Chipmo Mine, which contains a system of gold-bearing veins related to tellurides. In 2019, a mining operations centralization program was implemented that formed part of the debottlenecking and helped achieve a positive operating margin in the fourth quarter of 2019. During 2019, the plant processed 127,079 t of ore with a grade of 0.33 oz/t of gold (10.30 g/t) and 0.19 oz/t of silver, recovering 41,660 ounces of gold and 18,791 ounces of silver. The metallurgical recovery was 96.75% for Au and 76.76% for Ag. The mineral reserves of the Orcopampa Unit, as of December 31, 2019, totaled 626,276 t with 0.32 oz/t of gold (10.00 g/t Au) and 0.49 oz/t of silver, representing a metal content of 201,276 ounces of gold and 304,611 ounces of silver. The measured plus indicated mineral resources, excluding the reserve, are 237,778 DMT with 0.22 oz/t of gold (6.87 g/t Au) and 0.50 oz/t of silver, representing 52,509 ounces of gold and 119,422 ounces of silver. In 2019, an exploration program was carried out with 1,229 meters of mining work and 59,509 meters of diamond drilling, mainly focused on exploration and the infill drilling of the Pucará Sur, Pucara Sur Piso, Pucarina, María Isabel 2, Ocoruro, and Nazareno veins, between levels 3,690 and 3,540. The Mine Area performed 7,013 meters of mining works, of which 2,037 meters were development works and 4,976 meters were mine preparation works. Orcopampa has 626,276 TMS of mineral reserves as of December 31, 2019 Compañía Minera Coimolache S.A. (40.095% BVN) Tantahuatay Buenaventura is in charge of the management of 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. In 2019, mining was performed in the Tantahuatay 2 and Ciénaga Norte pits, between levels 3,972 to 3,852 and 4,044 to 3,900, respectively. A total of 13,878,907 DMT of oxidized ore was sent to the leach pad, with grades of 0.017 oz/t of gold (0.537 g/t) and 0.342 oz/t of silver (10.63 g/t) of which 1,996,030 DMT came from hauling Goldfields oxides. Fine metals production came to 162,196 ounces of gold and 754,306 ounces of silver. The average annual cash cost was USD 684.00 per oz/Au. Diamond drilling of oxides totaled 5,417 meters, focused on the Tantahuatay 2 and Ciénaga Norte operating zones, and the Azufre and Mirador Nor-Oeste projects. No sulfide drilling was performed in 2019. Work was focused on validating and standardizing all of the information to generate updated models. Support was provided through the supervision of the drilling program performed by Regulus Resources in the Sinchao zone, for a total of 13,414 meters. The measured and indicated oxide mineral resources total 11’246,337 TMS 32 33 2019AnnualReportAs of December 31, 2019, the proven and probable oxide mineral reserves at Tantahuatay total 66,858,657 DMT, with ore grades of 0.011 oz/t of gold (0.343 g/t) and 0.256 oz/t of silver (7.976 g/t) representing 737,042 ounces of gold and 17,145,203 ounces of silver. This result comprises six ore deposits: two currently in production (Tantahuatay-2 and Ciénaga Norte) and the Mirador Norte, Mirador Sur, Tantahuatay 2 Extensión Nor-Oeste, and Tantahuatay 5 Projects, with the last of these being the new project placed in reserve in 2018. The calculation of reserves in the deposits was based on an economic pit of 1,300 USD/Oz Au. As of the close of fiscal year 2019, there is ore remaining in the pad, counted as Inventory in Pad, totaling 5,290.08 ounces of gold and 314,405 ounces of silver. The measured and indicated oxide resources, excluding reserves, as of December 31, 2019, total 11,246,337 DMT, with 0.009 oz/t of gold (0.273 g/t) and 0.30 oz/t of silver (9.351 g/t) representing 98,544 ounces of gold and 3,380,998 ounces of silver. The design of the future Mirador Norte Pit is evaluating the availability of areas for backfills, with a new design with two access routes to the Mirador Norte Pit that will connect to the existing haul road, which will be used to haul material from the pre-mining and mining works to the Ciénaga Norte or Tantahuatay deposits and/or pads, as applicable. The extractions in the leach pad for 2019 were 68% gold and 16 % silver. Cumulative extractions in the leach pad from the start of operations through December 31, 2019 are 75.13% gold and 17.77% silver. In December 2019, the construction of 5.50 ha of leach pad was completed in Ciénaga Norte, to process ore from the pit of the same name. Internal 10 kV distribution lines were also expanded (total length: 3.53 km) and three substations were built at Tantahuatay and two at Ciénaga for pumping and handling water in the operating ponds. An additional 80 lodging modules were built for 160 people at the Permanent Camp. Minera La Zanja S.R.L. (53.06% BVN) Minera La Zanja SRL is a subsidiary of Buenaventura that operates the La Zanja Mine, located in the district of Pulán, province of Santa Cruz, 107 kilometers northwest of the city of Cajamarca. In 2019, operations were focused on the San Pedro Sur and Pampa Verde pits. 1,577,645 DMT of ore were sent to the leach pad from the Pampa Verde and San Pedro Sur pits, with 0.015 oz/t of gold (0.464 g/t) and 0.216 oz/t of silver (6.733 g/t) on average, recovering 31,500 ounces of gold and 97,204 ounces of silver. Since operations began at La Zanja in 2010, a total of 1,082,316 ounces of gold and 2,747,843 ounces of silver have been produced. The mineral reserves of the open pits total 560,177 DMT, with 0.013 oz/t (0.411 g/t) of gold and 0.271 oz/t (8.414 g/t) of silver, which means 7,401 ounces of gold and 151,531 ounces of silver. Additionally, there is an inventory in pads and plant of 4,594 recoverable ounces of gold and 109,396 ounces of silver. The measured plus indicated oxide resources outside the reserve pit and inside the economic cone of resources of USD 1,430/oz Au total 12,906,067 DMT, with 0.014 oz/t of gold (0.438 g/t) and 0.284 oz/t of silver (8.842 g/t), which means 181,659 ounces of gold and 3,668,976 ounces of silver. In 2019, the Explorations Area drilled a total of 2,926 meters of diamond drill holes, of which 2,777 meters were in the Corredor Emperatriz – Sector Emperatriz Sur project, and 148 meters were drilled in the San Pedro Sur Pit. 1’577,645 TMS were sent to the leach pad 34 35 2019AnnualReport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 late 2019, the Yumpaq Project was integrated into our unit after completing the delineation of reserves and resources. Yumpaq is located 5 kilometers NE of Uchucchacua, and consists of a system of veins with a predominantly NE orientation, which are in tension with the Cachipampa Fault that controls the mineralization of Uchucchacua. In 2019, a total of 1,335,018 DMT were processed, with 9.06 oz/t of silver, 1.52% lead, and 2.2% zinc, with the ore coming from the Socorro, Carmen, and Casualidad Mines, obtaining 10,640,913 ounces of silver, 17,635 FMT of lead, and 19,144 FMT of zinc. The average annual cash cost for 2019 was USD12.15/oz Ag. Uchucchacua’s mineral reserves, , including the Yumpaq Project, as of December 31, 2019, totaled 10,425,777 DMT, with 9.46 oz/t of silver, 1.19% of lead, 2.03% zinc, and 6.42% manganese, representing contents of 98,597,841 ounces of silver, 124,359 MT of lead, and 211,939 MT of zinc. Within this total, the Yumpaq Project accounts for 1,168,113 DMT, with 19.32 oz/t of silver, 0.42% lead, 0.75% zinc, and 15.41% manganese, representing contents of 22,572,876 ounces of silver, 4,928 MT of lead, and 8,710 MT of zinc. The measured and indicated resources, excluding reserves, of the Uchucchacua Unit and the Yumpaq Project are 3,139,988 DMT, with 11.26 oz/t of silver, 1.21% lead, 1.90% zinc, and 7.89% manganese, which means 35,367,936 oz of silver, 38,138 MT of lead, and 59,705 MT of zinc. As of December 31, 2019, mineral reserves totaled 10’425,777 TMS In the Uchucchacua processing plant, in the thickening and filtering stage, installation began for a new Diemme filter that will allow us to increase our filtering capacity. On December 5, 2019, the file was submitted to obtain authorization for operations at 4,500 tons per day. Progress in exploration undertaken included 1,778 meters of mining works and 57,402 meters of diamond drill holes, focused primarily on the Socorro, Cachipampa, Carmen, and Casualidad Sectors, of which 7,907 meters correspond to infill drilling, with the goal of increasing the certainty of resources to be measured. The Mine Area executed 24,903 meters of mining works, of which 1,412 meters correspond to development works and 23,491 meters to mine preparation works. 36 37 2019AnnualReportJulcani (100 % BVN) The Julcani Unit is located in the province of Angaraes, department of Huancavelica, in the central Andes of Peru. It is an underground operation that essentially produces silver with lead and gold content. In 2019, 123,818 t of ore were processed from the Acchilla Mine, with an ore grade of 21.9 oz/t of silver, 0.092 g/t of gold, 0.86% lead, and 0.16% copper, recovering 2,609,006 ounces of silver, 150 ounces of gold, 966 MT of lead, and 185 MT of copper. The average annual cash cost was 13.49 USD/oz Ag. The mineral reserves as of December 31, 2019, between the Acchilla and Estela Mines, totaled 255,097 t, with 21.02 oz/t silver and 2.00% lead, representing 5,360,856 fine oz of silver, 1,432 oz of gold, 5,108 MT of lead, and 1,089 MT of copper. Of these total reserves, 77% belongs to the Acchilla Mine and the remaining 23% to the Estela Mine. The indicated mineral resources, excluding reserves, total 167,061 t, with 20.96 oz/t of silver and 1.26% lead, representing contents of 3,502,157 ounces of silver and 2,103 MT of lead. During 2019, at the Acchilla Mine, a total of 7,263 m of underground mining works and 32,305 m of diamond drill holes were executed. The new mineral found totaled 100,249 t, with 23.18 oz/t of silver, 1.79% lead (2,323,772 ounces of silver) with a volume calculation ratio of 13.85 t/m of advance. The veins that contributed the new mineral are Hanna 1, Tilsa 3, Yamila Piso, Acchilla 7B Ramal, Sandra, Mayra, and Sta. Fe Techo 1. The new mineral replacement to reserve production ratio is 1. The Mine Area also undertook 5,726 meters of mining works, of which 880 meters correspond to development and 4,846 meters to mine preparation works. Meanwhile, the geological review of the Nueva Esperanza Project will continue on the surface, with the goal of evaluating and defining the type of deposit and its Ag-Cu potential. The processing plant successfully decreased the arsenic percentage in the concentrates with the use of metabisulfite and pH control, applying this recommendation for minerals with grades in excess of 1% As in the plant feed. Plant tests were performed for the reprocessing of tailings from Dams 1, 2, and 3, obtaining concentrates with grades of 35 to 40 oz/t Ag and 2 to 4 g/t Au. In November, we received authorization to raise the height of Tailings Dam 9 to an elevation of 4,136, thus expanding the life of the mine by approximately seven years. The new mineral found this year totaled 100,249 TMS 38 39 2019AnnualReportSociedad Minera El Brocal S.A.A. (61.43 % BVN) Sociedad Minera El Brocal S.A.A. operates the Colquijirca mining unit in the province and region of Cerro de Pasco, 15 km south of the city of the same name. It currently extracts zinc, lead, and silver ore from the Tajo Norte open-pit mine, and copper ore from the Marcapunta Norte underground mine. The minerals from both zones are processed in Concentrating Plants 1 and 2 at Huaraucaca. In 2019, a total of 3,407,914 DMT of lead and zinc ore (Tajo Norte) were processed, recovering 2,974,072 ounces of silver, 23,599 MT of lead, and 43,580 MT of zinc. Additionally, 2,926,124 DMT of copper ore (Marcapunta Norte) were processed, recovering 1,392,359 ounces of silver, 18,726 ounces of gold, and 43,394 MT of copper. In 2019, the operation achieved a total processing value of 6,334,038 DMT, which represents an average daily processing volume of 17,354 DMT. The cumulative fine production for 2019 was 4,366,438 ounces of silver, 18,726 ounces of gold, 23,599 MT of lead, 43,580 MT of zinc, and 43,394 MT of copper contained in the three concentrates produced. The proven-probable mineral reserves as of December 31, 2019, for Tajo Norte - Smelter, which includes the Zn-Pb-Ag zone and the Cu-Ag zone, are 42,215,608 DMT, with 1.08 oz/t of silver, and 1.11% Cu, which means 45,580,615 ounces of silver and 470,215 MT of copper. The proven-probable mineral reserves as of December 31, 2019, for the Tajo Norte pit (Zn-Pb-Ag zone) are 14,756,041 DMT, with 2.52% Zn and 1.17% Pb, making for 371,350 MT of zinc and 173,284 MT of lead. The proven-probable mineral reserves as of December 31, 2019, for Marcapunta Norte are 34,503,283 DMT, with 0.023 oz/t of gold, 1.30% copper, and 1.15 oz/t of silver, making for 805,168 oz of gold, 450,220 MT of copper, and 39,798,655 ounces of silver. The exclusive measured-indicated resources of Marcapunta Norte total 26,285,070 DMT, with 0.023 oz/t of gold, 1.63% copper, and 0.87 oz/t of silver. In 2019, 12,807 meters of diamond drill holes were undertaken, both on the surface and inside the mine. 84% of this total (10,768 meters) was performed in the Marcapunta SW and Marcapunta SE zones (underground) in order to recategorize inferred resources to measured and indicated reserves and to Cu-Ag ore reserves, with positive results in the increase of Au values. Another 1,115 meters were undertaken in nine boreholes in Marcapunta Sur for geometallurgical studies of arsenical copper ore. The laboratory tests were positive, with copper recoveries of 85% to 90%, which helps increase our resources. Additionally, 14,840 meters of diamond drilling was performed for mineral control. At the underground mine of Marcapunta Norte, 5,201 meters of development works were undertaken and 12,430 meters of preparation works, for a total of 17,631 meters. In 2019, the north slope remained unstable in the open pit, causing delays in the mining sequence. This instability was constantly monitored with radar, making it possible to control potential harm to personnel and damages to equipment. In the concentrating plants, the maintenance planning and control system was strengthened. Together with an operational stability study conducted by the engineering firm Hatch, which has made it possible to draw up an intensive maintenance plan. The total processing volume achieved in 2019 was 6’334,038 TMS 40 41 2019AnnualReportMinera Yanacocha S.R.L. (43.65 % BVN) Gold production in 2019 totaled 527,000 ounces, compared to 515,000 ounces produced in 2018. Silver production came to 0.737 million ounces versus 1.076 million ounces in 2018. During 2019, the gold mill processed 4.75 million dry metric tons of ore, with an average grade of 1.97 grams per ton and a gold recovery of 75.2%, obtaining a gold production of 229,000 ounces compared to 268,000 ounces in 2018. The lower gold mill production was due to the lower tonnage processed (4.8 million vs. 5.5 million in 2018) a higher soluble copper content, lower recovery, and a lower grade compared to 2018. The ore discharged in the leach pads in 2019 totaled 31.5 million dry metric tons, higher than in 2018, when the total was 23 million tons. This was due to the higher extraction of ore from Yanacocha and Quecher Main. Gold production was 298,000 ounces, higher than the 247,000 ounces in 2018. The proven and probable reserves of Minera Yanacocha as of December 31, 2019, totaled 6.9 million ounces of gold, 102.5 million ounces of silver,and 0.66 million MT of copper. As of December 31, 2019, resources totaled 7.8 million ounces of gold, 26.4 million ounces of silver,and 0.05 million MT of copper. Yanacocha’s CAPEX in 2019 came to USD 109 million, with the main capital expenditures being the Quecher Main Project ($96.9 M) the EWTP LQ Upgrade Project ($8.9 M) and the Yanacocha Shield Project ($3.2 M). Mine closure expenditures totaled USD 25.6 M. Quecher Main is the bridge for the continuity of Yanacocha’s operations, contributing 1.3 million ounces of gold, consisting of two leach pads, Carachugo 11 (5 ha) and Carachugo 14 (57 ha); a pumping station; an operating pond and a stormwater pond; an open pit; and works related to mine development. The construction of Phases 3 and 4 is still underway, with operations scheduled through 2027. In October 2019, Quecher Main announced its commercial production. The EWTP LQ Plant Upgrade Project includes the installation of new equipment to achieve the required design flow volume. The Yanacocha Sulfuros Project is located in the current operating zone and consists of the processing of sulfide minerals for the production of copper and gold, which would substantially extend Yanacocha’s CAPEX in 2019 was US$ 109 millones system, the management of its ISO 17025 accredited environmental laboratory, and control of its process activities certified by the International Cyanide Management Code. Improvements were focused on reducing water use in its operations, relocating its environmental laboratory to La Quinua, reducing the use of plastic and styrofoam, and operational improvements in its processes. Finally, in March 2019, the Environmental Impact Assessment was approved for the Yanacocha Sulfuros Project. The amendment of this Assessment was begun immediately to incorporate adjustments to the project, with citizen participation in 56 villages, completing the submission of the file to the National Environmental Certification Service (Senace) in December. the life of mine to 2041. During the first quarter of 2019, the feasibility studies were completed and the Environmental Impact Assessment was approved. Currently, the definitive feasibility is being developed, which is expected to be completed in 2021, after which the investment decision will be made. As part of the activities of the Project’s Definitive Feasibility Stage, test stope mining tests were begun in the southern zone of Chaquicocha Subterráneo, which will help validate the mining method, productivity, geotechnical conditions, and develop the exploration platforms. To date, progress is at 1,461 of a total of 2,025 meters. Construction was completed on the Chaquicocha Central exploration tunnel, with a total length of 623 meters, of which 391 meters were executed in 2019. Additionally, diamond drill holes were executed in Chaquicocha Subterráneo for a total of 33,234 meters. Yanacocha continued working with local communities in the area of influence of the Yanacocha Sulfuros Project, creating local job opportunities, addressing their concerns regarding water, and reaching historic commitments. In 2019, Yanacocha achieved the commercial production of Quecher Main with the solid participation and support of contractors and local communities. In 2019, Minera Yanacocha continued to maintain and improve its ISO 14001:2015 certified environmental management 42 43 2019AnnualReport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 SW of the city of Arequipa, in the districts of Uchumayo and Yarabamba. During 2019, Cerro Verde availed itself of two installment plan programs for 2012 royalties, which it began to pay during the third quarter of 2019; and for the 2013 period. In 2019, 143.5 million DMT were processed by flotation, which compares favorably with the 141.5 million DMT processed in 2018, with an ore grade of 0.362% copper, producing 1,873,000 DMT of copper concentrates with an average grade of 23.17% copper and a recovery of 83.5%. Total production came to 915,677,000 pounds of copper, 28,390,000 pounds of molybdenum, and 4.69 million ounces of silver contained in the concentrates. Additionally, 88.1 million pounds of copper were produced in cathodes. The cash cost was USD 1.565 per pound of copper and the total cost was USD 1.906 per pound of copper produced. In 2019, sales totaled USD 2.89 billion, making for net earnings of USD 390.4 million. The long-term debt was reduced from USD 1.023 billion to USD 826 million. Investment totaled USD 283.5 million in capital projects, compared to USD 280.2 million in 2018. Since 2009, Cerro Verde has been involved in a dispute with the tax authorities over the collection of royalties for the periods from December 2006 through December 31, 2013. The installment payments for the periods of December 2006, 2007, and 2008 were completed in the fourth quarter of 2019. The periods from January 2009 to September 2011 are being paid in installments. The royalties for October through December 2011 were paid in the fourth quarter of 2019. There are currently no other tax periods in dispute with the tax authorities. Cerro Verde believes it was not required to make these payments according to the tax stability agreement signed in 1998 with the Peruvian government. Nevertheless, Cerro Verde has acted in good faith at all times, and continues to evaluate alternatives to defend its rights. In 2019, US$ 141.5 million of DMTs were processed. 44 45 2019AnnualReportPROYECTOS Continuing with the implementation of the project management methodology described in Project Management for Mining: Handbook for Delivering Project Success (2015) by Terry L. Owen and Robin J. Hickson, and having completely closed the gaps identified in 2018 and 2019, the past few years have been marked by the maturation of our projects along the following lines: 46 47 2019AnnualReportI. Projects in the Feasibility Stage II. Projects in the Prefeasibility Stage 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. TRAPICHE PROJECT (EL MOLLE VERDE S.A.C. - 100% BVN) The Trapiche Project is a copper and molybdenum porphyry deposit from the Oligocene Age located on the southwestern side of the Andahuaylas-Yauri Belt, in the province of Antabamba, Apurimac region. In 2019, the prefeasibility study was performed and concluded with Ausenco/Agnitia, which defines an underground mining operation using the Overhead Drift and Fill (ODF) method at a rate of 3,000 TPD, processed in a scalable gravimetric-CIL-ADR plant for the production of doré bars, based on the use of filtered tailings. Based on this study, the following resources and reserves have been estimated: In 2019, the prefeasibility study was conducted and completed with the companies M3/ Mining PluPENKCB, which defined an open-pit mining operation at a rate of 45,000 TPD, processed in a crusher-leach pad-SX/EW plant for the production of copper cathodes. Based on the study, the following resource and reserve volumes have been estimated: Reserves: 283.2 MT with 0.51% Cu, representing 1.4 MT of Cu (leachable). Reserves: 11.6 MT with 4.68 g/t of Au, representing 1.7 M oz/Au. Resources: 540 MT with 0.31% Cu, representing 1.7 MT of Cu (floatable). RIO SECO CU-AS INDUSTRIAL PLANT PROJECT (100% BVN) The Rio Seco Industrial Plant Project consists of a hydrometallurgical process for the leaching of Cu-As concentrates from the El Brocal Unit that allows for the extraction of copper cathodes, a high-grade Au/Ag residue, and As in the stable form of scorodite crystals. In 2019, continuous industrial scale testing remained in effect in the Rio Seco pilot plant. 48 49 2019AnnualReportII. Projects in the Conceptual Stage COIMOLACHE SULFUROS PROJECT (COMPAÑÍA MINERA COIMOLACHE S.A. - 40.95% 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 Coimolache Mine. In 2019, the conceptual study developed with the company M3/Mining PluPENKCB was completed, which suggests an open-pit operation at a production rate of 20-40K TPD, to be processed in a concentrating plant for the production of Cu-As concentrates, based on the use of filtered tailings. Additionally, the necessary field works were completed to support the basic engineering of the filtered tailings deposit to be concluded in the first quarter of 2020, as well as the updating of the resources model with SRK, defining: Inferred resources: 933 MT with 0.32% Cu, 0.18 g/t Au, 7.89 g/t Ag, representing 3 MT Cu and 5.4 M oz/Au. III. Projects Pending Entry into the Conceptual Phase YUMPAQ 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. In 2019, field works were completed and the prefeasibility study was concluded with Agnitia, which defines overhead drift and fill (ODF)/ mechanized cut and fill underground operation at a rate of 1K TPD, which will be transported by truck to the Uchuchachu Unit for processing. Based on said study, the following reserve amounts have been calculated: Reserves: 1.2 MT with 19.32 oz/t Ag, representing 22.6 M oz/Ag. The subsequent development and construction of the Yumpag deposit will be included in the Uchuchacua Unit, and no longer as an independent project. EL FAIQUE PROJECT (100% BVN) The El Faique Project is a volcanogenic massive sulfide (VMS) copper ore deposit hosted in the Mesozoic basin of Lacones, located in the province of Tambogrande, in the Piura region. In 2019, the final version of the file was submitted to Pro-Inversión, and is currently in the process of being reviewed by the Ministry of Energy and Mines (MINEM). 50 51 2019AnnualReportOTHER BUSINESSES Consorcio Energético de Huancavelica S.A. (CONENHUA) (100% BVN) This Company has now been in business for 36 years. In 2019, its regulated transmission lines and substations were put up for sale, and formally changed owners in late December. This sale comprised those systems and assets whose revenue is set by the regulatory agency, Osinergmin, as follows: 52 53 2019AnnualReportSystem Voltage Length (km) Location Trujillo Norte SS – Cajamarca Norte SS Line Cajamarca Norte SS - La Pajuela SS Line Callali - Ares Line Huancavelica-Ingenio Line and Input Substation 220 60 138 60 137 Cajamarca Cajamarca 103.7 Arequipa 32.9 Huancavelica Lomera Substation 220/60/23 - Huaral However, CONENHUA continues to operate and maintain the secondary transmission lines that supply power to Buenaventura’s mining and industrial operations and their respective substations, in both high and medium voltage. These operations are La Zanja, Coimolache, Uchucchacua, Río Seco, El Brocal, Julcani, and Tambomayo. The performance of all of the abovementioned lines is as follows: Voltage Level External Fault (Hours) Own Fault (Hours) Maintenance (Hours) Total (Hours) 33 kV 60 kV 138 kV 220 kV Total 5.18 59.71 6.99 0 0.19 3.98 11.99 0 3.39 53.68 37.89 0 71.88 16.16 94.96 8.76 117.37 56.87 0 183 The Huapa and Ingenio small hydroelectric plants generated a total of 12.268 GWh over the course of the year, to the benefit of Buenaventura’s operations. Empresa de Generación Huanza has begun studies in search of renewable power sources to supply Buenaventura’s future projects, such as hydroelectric and photovoltaic power plants, both in the central part of the country and in the south, generally near its projects. The consolidated economic results of Consorcio Energético de Huancavelica reported total operating revenue of USD 59.69 M, operating profit of USD 36.197 M, and net results, after income taxes, of USD 29.854 M. At the request of El Molle Verde S.A. (EMV) the feasibility study was conducted for the supply of electricity to the Trapiche Project. The results indicated that the connection point to the National Grid System (SEIN) would be at the Cotaruse Substation, via a 220 kV transmission line to the future Trapiche 220/22.9 kV substation. At the request of Compañía de Minas Buenaventura S.A.A. (BVN) the definitive study was completed for the “Chilota Substation - San Gabriel Substation 220 kV Transmission Line” Project, which will supply electricity for the future operation of the San Gabriel Project. Area use negotiations were also concluded for the output bays in the Redesur and Anglo- American Chilota substation. In terms of hydroelectric power plants, Empresa de Generación Huanza has continued to improve its facilities and electromechanical equipment, obtaining a generator availability of over 93% and generating 396.466 GWh. 54 55 2019AnnualReportProcesadora Industrial Río Seco S.A. (100% BVN) Procesadora Industrial Rio Seco is a Peruvian company engaged in the production of manganese sulfide from lead-silver-manganese concentrates from the Uchucchacua Unit. Rio Seco is located in Huaral, in the northern part of the department of Lima, 102 kilometers from the city of Lima. In 2019, the Acid Washing Plant processed 32,409 DMT of concentrate from the Uchucchacua Unit, with grades of 67.2 oz/t of silver, 11.5% lead, and 23.3% manganese. The acid washing operations achieve a concentrate with a higher silver grade and lower manganese content. The following table shows the results before and after acid washing: Concentrate TMS Ag Oz/TMS Pb % Mn % Uchucchacua Concentrate 32,409 67.2 11.5 23.3 Rio Seco Concentrate 20,692 104.7 18.0 3.8 The Sulfuric Acid Plant produced 18,463 MT of sulfuric acid with a purity of 98%. The plant uses wet sulfuric acid (WSA) technology, which is clean and environmentally friendly. 49.7% of the acid was produced from elemental sulfur, and 50.3% was produced from acid gas, which comes from the Acid Washing Plant. The Crystallization Plant produced 21,795 MT of manganese sulfate monohydrate with two dryers. The distribution of production by dryer is shown in the following table: Manganese Sulfate Monohydrate Spray Dryer Spin Flash Dryer Total TM 7,549 14,246 21,795 Buenaventura’s Research and Technological Innovation Center operates at the Río Seco facilities. This center has a pilot plant where research is being performed to develop an industrial process for cathodic copper production from copper concentrates with enargite from El Brocal. Currently, an audit is being performed on the BVN Process to confirm the operating conditions and optimization of the industrial process prior to the start of the feasibility engineering. Río Seco uses the highest safety and environmental standards, in constant coordination with the communities of Huaral and Sayán, the Lachay National Reserve, and the Municipalities of Huaral and Chancay, with which it conducts the participatory environmental monitoring program in the area. 56 57 2019AnnualReportSAFETY At Buenaventura, we believe that safety is a part of every process, not something separate. This means that safety management is the responsibility of the operating officer in charge of each process. Safety is part of our quality indicators, and a cross-cutting aspect throughout the entire company. 58 59 2019AnnualReportIn 2019, the Accident Rate Index dropped to 1.61, 15% lower than in 2018 (1.90). Unfortunately, two fatal accidents were reported at the Uchucchacua and El Brocal mining units, compared to three such accidents in 2018. These results require us to continue making efforts and allocating resources to prevent accidents based on a critical risk management approach. Our main activities were as follows: › › › › › Closer relations with 14 unions through awareness raising sessions called “Interiorizing Commitments for Life.” Strengthening of team members from Buenaventura and contractors through the “A Pact for Life” program with a focus on personal commitment. Structuring of the “Critical Risk Management” initiative, focused on the prevention of fatal accidents and those causing permanent disability. Involvement of supervisors, team members, and unions through a “participatory safety” approach. Training for Buenaventura’s supervision line in the Leadership Program and the ICAM accident investigation methodology. We continue to work to achieve a culture of safety that involves all of the team members of the Buenaventura family. 60 61 2019AnnualReportENVIRONMENTAL MANAGEMENT This year, the Company continued to carry out its activities with the goal of achieving the environmental sustainability of its operations. Its performance was based on appropriate operational monitoring and control, with a primarily preventive focus to minimize impacts on the environment; achieve the appropriate management of water resources, monitoring its quality and fostering the reuse and recirculation of water to our processes; reduce the disposal of barren material and waste through recycling; and prioritizing progressive closure when undertaking mine closure works. 62 63 2019AnnualReportOver the course of the year, work was done on 74 environmental instruments, of which 22 were approved, 22 are still under review, and 30 are still being drafted. We began developing important environmental impact assessments, such as those for the Trapiche Project, Río Seco Cobre, and Yumpag, as well as amendments to the environmental impact assessments for Julcani, Tambomayo, and Tantahuatay, property of Compañía Minera Coimolache. The supporting technical reports (ITSs) that enable the execution of low-impact components have been the most frequent instruments, with a total of 25. Detailed environmental plans (PAD) were also prepared this year, through which we have adapted to the environmental regulations issued by the Ministry of Energy and Mines (MINEM) that will allow for the inclusion of existing components in a new environmental instrument. We recertified the Buenaventura Integrated Management System (SIB). The environmental facet of this system is based on ISO 14001 international standards. Elsewhere, with the goal of increasing the level of involvement in environmental processes, the Environmental Performance Index (IDA) was applied, determining a compliance level of 92% for different areas regarding commitments and action plans resulting from inspection findings, audits, and supervision activities; training plans; and the quality of resources intervened, among other aspects. Water is a strategic input for different economic sectors, especially mining. Accordingly, our operations made an effort to ensure the efficient use of water resources, fostering the recirculation and reuse of water generated in the metallurgical process, achieving a rate of 94% in open-pit operations and 84% in underground operations. The water consumption rate compared to the quantity of ore processed was 0.02 m³/MT in open- pit mines and 1.64 m³/MT in underground mines. This year, we obtained 40 permits for water use: 19 treatment system authorizations (8 for industrial dumping, 8 for domestic dumping, and 3 for drinking water treatment systems) 5 water use rights, 9 authorizations for the execution of minor works (hydraulic infrastructure, flood control, watercourse cleanup); and 7 authorizations for hydrogeological studies. 40 PERMITS WERE OBTAINED FOR WATER RESOURCES We continued to bolster our participation, promotion, and dissemination of the results of the participatory water quality monitoring activities in the areas surrounding our operations. A total of 36 activities were undertaken, with the participation of municipal and community authorities. These actions foster greater trust in our environmental performance, as well as serving as spaces for building local capacities and strengthening environmental management with a shared responsibility approach. This year, the Environmental Assessment and Oversight Agency (OEFA) performed 32 supervisory processes in the different units and projects, identifying 62 findings, with a rate of 1.9 findingPENvisit. This year, they placed particular emphasis on the mine closure works. Cumulative environmental contingencies as of 2019 total PEN 5.81 M. We continued promoting mine closure works, particularly progressive closure and post-closure works. Unfortunately, a significant number of our closure . works were affected by the presence of illegal and informal mining. We have reported this situation to the authorities, but have received no response. On the contrary, we have been forced to remedy these issues ourselves As of December 31, 2019, the provision for mine closure, comprising not only units but exploration projects and environmental liabilities (including La Zanja and Coimolache) totaled USD 302 M. The works executed during the year totaled USD 12 M, mainly including rehabilitation and revegetation works. It is important to note that following a long post-closure period (10 years) the General Directorate of Mining-Related Environmental Affairs of the Ministry of Energy and Mines granted Final Closure Certification to the Rumimaqui Rifle environmental liability (Huancavelica) making it the first to be awarded nationwide. We have also continued developing the project for improved soils known as “Tecnosoles” at La Zanja, with the goal of validating a technology that guarantees the adequate rehabilitation of intervened areas, while also helping to reduce the water volumes requiring treatment. 64 65 2019AnnualReport SOCIAL MANAGEMENT At Buenaventura, we firmly believe that mining is an essential driver of the country’s development and decentralization. Above all, it can generate progress in the communities near our different operations and projects. 66 67 2019AnnualReportWe believe this positive impact is possible through a joint effort among enterprise, the community, and authorities. If we join forces in pursuing a common objective, together we will achieve sustainable development for all. Based on this principle, we at Buenaventura perform our mining activities based on these four pillars: 1. 2. 3. 4. Engage in and maintain relationships based on respect and trust with the communities inside the area of our projects and operations. Always strive for sustainable development, with a view to shared social responsibility. Under this vision, all actors act as one. Always bear in mind the need to care for the environment and water. Always give the highest priority to our occupational health and safety policies in our activities. n view of our first pillar, we actively participate in community life and development by joining forces with them, while respecting their traditions and customs. This helps forge bonds of trust that will ensure the sustainability of social investment projects. In compliance with this objective, we have participated in 336 social and cultural activities held by our neighboring communities and organized 331 activities together with them. On a related note, in accordance with our transparency and open door policy, we focus on always maintaining direct communications so that we can share and fully explain the work we have done and clear up any doubts that the public may have. Using the rapport-building spaces that we create through our Permanent Information Offices, we have carried out 391 communications activities, including door-to-door visits, workshops, guided visits, and more. We seek to promote the sustainable development of our communities by helping to foster a dynamic economy based through improved employability and local entrepreneurship. As a result of these efforts, 63% of our team members come from the regions where we operate, and local businesspeople have billed Buenaventura a total of 117 million soles for the provision of services and the sale of goods to our units. To improve local production, we also work to strengthen traditional activities and market their products with the execution of the Buenaventura PRA in Lima, Pasco, Arequipa, Moquegua, and Huancavelica, and the Productive Development Projects in Cajamarca. Thanks to this effort, local producers achieved over 10 million soles in sales in 2019, for a total of nearly 45 million soles in sales since 2014. Our concern with improving the population’s quality of life in our areas of influence has led us to execute infrastructure projects, mainly in the form of tax-deductible works. In 2019, we delivered works such as pavement and sidewalks in the Puente Piedra neighborhood of Oyón (Lima) and the expansion and improvement of the Morán Pata SAP in Hualgayoc (Cajamarca). During the same period, we managed to leverage 22.7 million soles for the performance of water and sanitation projects in the village of Gordillos, in the district of Catilluc (Cajamarca) and the district of Ccochaccasa (Huancavelica); pavement and sidewalks in the district of Antabamba (Apurímac) in the populated center of Nuevo Smelter, district of Tinyahuarco, and in the neighborhood of Uliachin, district of Chaupimarca (Pasco); and sprinkler irrigation in the populated center of Ruiz Señor, district of Catilluc (Cajamarca). At the same time, Buenaventura has also demonstrated our concern for education and health in the country’s most isolated areas, carrying out different projects such as “Aprender para Crecer” and “Enseña Perú.” Through these projects, we seek to build teachers’ capacities and develop skills among primary and secondary school students. These projects also include the Comprehensive Scholarship Program in Uchucchacua, Orcopampa, La Zanja, Julcani, and San Gabriel; as well as support for local institutions of higher education. In light of the foregoing, these pages will provide a detailed report on the activities we performed in 2019. Over the course of the year, we reaffirmed our commitment to continuing to work toward sustainability, as always within a framework of safety, respect for communities, and care of the environment. Our goal is to promote the sustainable development of our areas of influence and our country. 68 69 2019AnnualReportECONOMIC AND FINANCIAL REPORT 70 71 2019AnnualReportThe Company’s net loss for fiscal year 2019 was USD 28.5 million, compared to a net loss of USD 11.7 million in fiscal year 2018. This difference was due mainly to a drop in net sales resulting from lower volume (USD -322 M) counteracted by higher prices (USD +37 M) a lower cost of sales (USD 100 M) lower exploration expenditures in the operating units (USD 46 M) revenue from affiliates (USD 49 M) and deferred tax revenue (USD 48 M). On a consolidated basis, the metal that accounted for the highest percentage of our sales in terms of value in 2019 was gold, with 29%, followed by silver with 25%, then copper with 23%, zinc with 15%, and lead with 9%. The net debt-to-EBITDA ratio closed out the year at 2.06x. During 2019, the final cash position fell from USD 369 to USD 210 million, and the total CAPEX for the year was USD 103 M. As of December 31, 2019, we had 989 common shareholders. Of these, 22.4% are shareholders domiciled in Peru, while 77.56% are not. We also had 886 shareholders with investment shares. The ADR program on the New York Stock Exchange (NYSE) reached a trade volume of USD 4,606,152,048 in 2019 (295,266,641 ADSs). As of December 31, 2019, the number of outstanding ADSs was 212,545,083, which represents 77.32% of the Company’s total outstanding shares. 29%, WITH GOLD WAS THE METAL THAT ACCOUNTED FOR THE HIGHEST PERCENTAGE OF OUR SALES IN TERMS OF 72 73 2019AnnualReportMANAGEMENT’S ANALYSIS AND DISCUSSION The main changes in the consolidated financial statements for the twelve-month periods ended December 31, 2019 and 2018, are explained below: (Figures in U.S. dollars are expressed in thousands, except for metal prices and quantities) 74 75 2019AnnualReportNet Sales In fiscal year 2019, net sales of goods totaled USD 821,930, compared to sales of USD 1,106,329 in fiscal year 2018, representing a decrease of 26%. This change is mainly due to the following factors: a. Gold Sales The average sale price of this metal rose from USD1,267.99/oz in 2018 to USD 1,405.35/ oz in 2019, or 11% higher. However, the volume of gold sales was 143,949 oz less than in 2018. The combined effect resulted in sales that were USD 157,683 lower in 2019 than in 2018. The lower revenue corresponds primarily to the net effect of the decrease in sales at the Orcopampa and La Zanja Units, by USD 90,355 and USD 50,659, respectively, as a consequence of the decrease in volumes sold. b. Silver Sales The average sale price of this metal rose from USD 15.08/oz from 2018 to USD 16.36/ oz in 2019, an increase of 8% in the price. However, silver sales were 5,781,657 oz lower than in 2018. The combined effect led to sales that were USD 63,951 in 2019 than in 2018. The lower revenue was the result of the net effect of the drop in sales from the Uchucchacua and Tambomayo Mining Units by USD 58,130 and USD 15,997, respectively, as a consequence of the lower volumes sold, partially offset by the increase at the Colquijirca Unit of USD 11,856 due to the increase in volumes sold and average prices negotiated. c. Zinc Sales The average sale price of this metal fell from USD 2,680.81/MT in 2018 to USD 2,490.60/MT in 2019, representing a 7% decrease in price. However, 1,471 fewer MT of zinc were sold compared to 2018. The combined effect was USD15,349 less in sales revenue in 2019 than in 2018. The lower revenue was the effect of the drop in sales from the Colquijirca and Uchucchacua Mining Units by USD 9,968 and USD 7,051, respectively, as a consequence of the decrease in volumes and average negotiated prices, partially offset by the increase in sales from the Tambomayo Mining Unit by USD 1,670, as a consequence of the higher volumes sold. d. Copper Sales The average sale price of this metal fell from USD 6,277.40/MT in 2018 to USD 5,808.47/ MT in 2019, representing a drop of 7% in price. Additionally, 2,743 fewer MT of copper were sold compared to 2018. The combined effect was USD 36,457 less in sales revenue in 2019 than 2018. The drop in revenue was mainly due to sales from the Colquijirca Unit that were USD36,629 lower, primarily as a result of volumes sold and average negotiated prices. e. Deductions During 2019, deductions applied for maquila (tolling) and penalties on concentrate sales jointly totaled USD 220,306, compared to USD 192,684 in 2018. These amounts have been deducted from the total net sales in each year. f. Sales of Services In fiscal year 2019, net sales for services totaled USD 23,661, compared to sales of USD 24,001 in fiscal year 2018, representing a drop of 1%. 76 77 2019AnnualReportOperating Costs Operating Expenditures In 2019, operating costs totaled USD 799,582, compared to USD 967,696 for 2018, representing a decrease of 17%. This drop was mainly due to the following line items: a. Cost of Sale of Goods, Not Including Depreciation or Amortization The “Cost of Sale of Goods, Not Including Depreciation or Amortization” item fell by USD 100,507, from USD 613,381 in 2018 to USD 512,875 in 2019, representing a decrease of 16%. The drop in cost of sales is due mainly to the production in the Orcopampa and La Zanja Units, which was USD 42,267 and USD 29,042 lower, respectively; as well as a drop of USD 23,294 in the Uchucchacua Unit as a result of lower production and sales caused by the 22-day halt that occurred in 2019. b. Depreciation and Amortization The “Depreciation and Amortization” item dropped by USD 12,544, going from USD 238,879 in 2018 to USD 226,335 in 2019, representing a decrease of 5%. This decrease occurred mainly due to the net effect of: (i) a drop of USD 24,985 at the La Zanja Mining Unit as a result of the increase in the life of mine and the lower depreciable base; partially offset by (ii) increases of USD 6,669 and USD 6,628 at the Colquijirca and Tambomayo Mining Units, respectively. c. Exploration in Operating Units The “Exploration in Operating Units” fell by USD 45,567, going from USD 89,730 in 2018 to USD 44,163 in 2019, due primarily to the decrease in exploration in the Orcopampa, Uchucchacua, and Tambomayo Units by USD 20,523, USD 11,980, and USD 8,940, respectively. d. Mining Royalties The “Mining Royalties” item fell by USD 8,556, going from USD 21,388 in 2018 to USD 12,832 in 2019 as a result of the lower sales during 2019. Operating expenditures remained similar to the previous year, going from USD 124,721 in 2018 to USD 126,319 in 2019, making for an increase of 1%. This increase was mainly caused by the net effect of: (i) lower exploration expenditures in no-operating areas, by USD 24,428; (ii) USD 33,735 less in revenue from the insurance recovery in 2018 involving the El Brocal subsidiary; partially offset by (iii) lower expenses for the contingencies provision by USD 8,280 as a result of a decrease in revenues from USD 11,248 in 2018 compared to USD 2,968 in 2019; iv) expenses of USD 2,083 for the long- term asset deterioration provision for the Julcani Mining Unit in 2019 compared to a recovery of the USD 5,693 provision in 2018 from the La Zanja subsidiary. Other Revenue (Expenditures) Net “Other Revenue (Expenditures) Net” rose by USD 45,743, going from a loss of USD 31,265 in 2018 to a gain of USD 14,478 in 2019. This change is due to the net share in the results of related companies. This item represented a loss of USD 1,144 in 2018, compared to a gain of USD 47,710 in 2019. This increase is primarily the result of the net effect of the net earnings of Sociedad Minera Cerro Verde S.A.A., which were USD 53,007 higher, and Compañía Minera Coimolache S. A., which were USD 1,889 higher, partially offset by a net loss by Minera Yanacocha S.R.L., which was USD 5,998 more than the previous year. 78 79 2019AnnualReportIncome Tax Provision This item consists of “Income Tax” and “Mining Royalties and Special Mining Tax.” a. Income Tax This item went from an expenditure of USD 22,462 in 2018 to a revenue of USD 25,766 in 2019. b. Mining Royalties and Special Mining Tax This item went from an expenditure of USD 4,417 in 2018 to an expenditure of USD 176 in 2019. Non-Controlling Interest This item registered a loss of USD16,251 in 2019, compared to a gain of USD 1,791 in 2018. This change was mainly due to the decrease in the non-controlling results of the El Brocal subsidiary (profit of USD 2,880 in 2018 compared to a loss of USD 13,432 in 2019). 80 81 2019AnnualReportSUMMARY OF OPERATIONS 82 83 2019AnnualReportTable 1 Summary of Operations 2019 Description Ore Treated Ore Grades Ag Au Cu Pb Zn Bulk Concentrate (Ag-Pb-Cu-Au) Gold-Silver Concentrate Lead-Silver-Gold 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 Unit DMT oz/DMT g/TMS % % % DMT DMT DMT DMT DMT oz oz MT MT MT % % % % % Cost Applicable to Sales Ag Cost Applicable to Sales Au Cost Applicable to Sales Zn Cost Applicable to Sales Cu US$ / Oz US $/ Oz US $ /MT US $/MT 84 Tambomayo Orcopampa Uchucchacua Julcani La Zanja 640,914 127,079 1,335,018 123,818 1,577,645 Description Unit Tantahuatay Yanacocha Tajo Norte Marcapunta Cathodes Concentrate El Brocal Cerro Verde 4.54 5.80 1.35 1.99 18,432 19,999 2,556,391 99,245 7,603 9,672 87.76 83.10 88.1 75.8 0.19 10.30 832 18,791 41,660 76.76 96.75 9.06 1.52 2.20 0.22 0.46 21.90 0.09 0.16 0.86 97,204 31,500 89,651 3,760 48,486 10,640,913 2,609,006 150 185 966 96.22 41.01 94.05 91.01 13.49 17,635 19,144 87.96 86.87 65.08 12.15 679 1,489 1,233 Ore Treated Ore Grades Ag. Au Cu Pb. Zn. Bulk Concentrate (Ag-Pb-Cu-Au) Lead-Silver Concentrate Copper – Silver Concentrate Copper Concentrate Zinc Concentrate Metallic Molybdenum Leached Copper Ounces of Silver Ounces of Gold Metallic Copper Metallic Lead Metallic Zinc Ag Recovery Au Recovery Cu Recovery Pb Recovery Zn Recovery % % % DMT DMT DMT DMT DMT DMT DMT oz oz MT MT MT % % % % % Cost Applicable to Sales Ag Cost Applicable to Sales Au Cost Applicable to Sales Zn Cost Applicable to Sales Cu US$ / Oz US $/ Oz US $ /MT US $/MT DMT 13,878,907 3,407,914 2,926,124 27,059,000 143,467,000 34,695,000 oz/DMT g/DMT 0.342 0.54 1.38 1.26 2.42 50,355 89,218 0.77 0.54 1.67 174,717 0.36 12,877 754,306 162,196 15.90 67.64 684 2,974,075 1,392,363 4,685,092 23,599 43,580 63.32 54.97 55.00 2,007 18,726 43,394 62.07 37.03 88.68 39,961 415,344 58.75 83.54 5,385 3,450 737,238 527,336 776 85 2019AnnualReportTable 2: Reserves as of December 31, 2019 ZINC BVN % Share DMT (000) % Zn DMT (000) BVN DMT(000) Proven and Probable Reserves GOLD Orcopampa Julcani Tambomayo La Zanja La Zanja (in Pads) Tantahuatay (Oxidos) Tantahuatay Pad El Brocal Marcapunta Norte Yanacocha San Gabriel Total Gold Reserves SILVER Uchucchacua (Silver-Lead- Zinc) Julcani Orcopampa Tambomayo La Zanja La Zanja (in Pads) Tantahuatay Oxidos Tantahuatay Pad El Brocal (Tajo Norte - Smelter) El Brocal Marcapunta Norte Yanacocha Cerro Verde (for Milling) Total Silver Reserves 86 BVN % Share DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 100.00 100.00 100.00 53.06 53.06 40.10 40.10 61.43 43.65 100.00 626 255 2,446 560 0.321 0.006 0.120 0.013 66,859 0.011 34,503 221,834 11,810 0.023 0.031 0.142 201 1 295 7 5 737 5 805 6,938 1,675 10,670 201 1 295 4 2 296 2 495 3,028 1,675 5,999 BVN % Share DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 100.00 100.00 100.00 100.00 53.06 53.06 40.10 40.10 61.43 61.43 43.65 19.58 10,426 255 626 2,446 560 66,859 42,216 34,503 227,718 4,169,880 9.46 21.02 0.49 4.46 0.27 0.26 1.08 1.15 0.45 98,598 5,361 305 10,898 152 109 17,145 314 45,581 39,799 102,473 113,314 98,598 5,361 305 10,898 80 58 6,874 126 28,000 24,448 44,729 22,187 Uchucchacua (Silver-Lead- Zinc) Tambomayo El Brocal (Tajo Norte - Smelter Zn - Pb - Ag ) Total Zinc Reserves LEAD Uchucchacua (Silver-Lead- Zinc) Julcani Tambomayo El Brocal (Tajo Norte - Smelter Zn - Pb - Ag ) Total Lead Reserves COPPER Julcani El Brocal Marcapunta Norte El Brocal (Tajo Norte - Smelter Cu - Ag) Trapiche Yanacocha Cerro Verde (for Milling) Cerro Verde (for Leaching) Total Copper Reserves 100.00 100.00 61.43 10,426 2,446 14,756 2.03 1.66 2.52 BVN % Share DMT (000) % Pb DMT (000) 100.00 100.00 100.00 61.43 10,426 255 2,446 14,756 1.19 2.00 1.27 1.17 212 41 371 624 124 5 31 173 334 BVN DMT(000) 212 41 228 481 124 5 31 106 267 BVN % Share DMT (000) % Cu DMT (000) BVN DMT(000) 100.00 61.43 61.43 100.00 43.65 19.58 19.58 255 34,503 27,460 283,200 104,388 4,169,880 95,353 0.43 1.30 1.71 0.51 0.63 1 450 470 1,444 660 12,792 210 1 277 289 1,444 288 2,505 41 16,028 4,844 MOLYBDENUM BVN % Share DMT (000) % Mo DMT (000) Cerro Verde (for Milling) 19.58 4,169,880 Total Molybdenum Reserves BVN DMT(000) 317 317 62 62 434,048 241,665 Prices used to calculate reserves: Gold 1,300 USD/oz; Silver 16.30 USD/oz; Lead 2,200 USD/MT; Zinc 2,800 USD/MT; and Copper 6,200 USD/MT. 87 2019AnnualReportTable 3: Reserves as of December 31, 2018 Proven and Probable Reserves BVN % Share DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 100.00 100.00 100.00 100.00 53.06 53.06 40.10 40.10 61.43 43.65 922 251 134 3,391 3,120 0.331 0.006 0.007 0.120 0.012 57,715 0.012 19,804 0.013 306 1 1 408 37 11 666 4 249 7,423 9,105 306 1 1 408 19 6 267 2 153 3,240 4,403 BVN % Share DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 100.00 100.00 100.00 100.00 100.00 53.06 53.06 40.10 40.10 61.43 61.43 43.65 19.58 11,941 251 134 922 3,391 3,120 57,715 58,982 19,804 4,191,354 7.69 21.37 6.56 1.01 4.17 0.23 0.31 1.13 0.70 91,844 5,368 878 932 14,133 709 210 17,910 57 66,396 13,956 104,571 113,683 91,844 5,368 878 932 14,133 376 111 7,181 23 40,787 8,573 45,645 22,259 GOLD Orcopampa Julcani Mallay Tambomayo La Zanja La Zanja (in Pads) Tantahuatay (Oxidos) Tantahuatay Pad El Brocal Marcapunta Norte Yanacocha Total Gold Reserves SILVER Uchucchacua (Silver-Lead-Zinc) Julcani Mallay Orcopampa Tambomayo La Zanja La Zanja (in Pads) Tantahuatay Oxidos Tantahuatay PAD El Brocal (Tajo Norte - Smelter) El Brocal Marcapunta Norte Yanacocha Cerro Verde (for Milling) Total Silver Reserves 88 ZINC Uchucchacua (Silver-Lead-Zinc) Mallay Tambomayo El Brocal (Tajo Norte - Smelter) Total Zinc Reserves LEAD Uchucchacua (Silver-Lead-Zinc) Julcani Mallay Tambomayo El Brocal (Tajo Norte - Smelter) Total Lead Reserves COPPER Julcani El Brocal Marcapunta Norte El Brocal (Tajo Norte - Smelter) Cerro Verde (for Milling) Cerro Verde (for Leaching) Yanacocha Total Copper Reserves BVN % Share DMT (000) % Zn DMT (000) BVN DMT(000) 100.00 100.00 100.00 61.43 11,941 134 3,391 21,083 1.79 6.74 1.06 0.94 BVN % Share DMT (000) % Pb DMT (000) 100.00 100.00 100.00 100.00 61.43 11,941 251 134 3,391 21,083 1.12 2.04 3.67 0.73 0.48 214 9 36 502 761 134 5 5 25 230 399 BVN DMT(000) 214 9 36 308 567 134 5 5 25 141 310 BVN % Share DMT (000) % Cu DMT (000) BVN DMT(000) 100.00 61.43 61.43 19.58 19.58 43.65 251 19,804 37,899 4,191,354 133,107 0.47 1.35 1.11 1 266 630 12,895 222 660 1 164 387 2,525 43 288 14,674 3,408 MOLYBDENUM BVN % Share DMT (000) % Mo DMT (000) BVN DMT(000) Cerro Verde (for Milling) 19.58 4,191,354 Total Molybdenum Reserves 322 322 63 63 89 430,645 238,110 Prices used to calculate reserves: Gold 1,300 USD/oz; Silver 17 USD/oz; Lead 2,100 USD/MT; Zinc 2,500 USD/MT; and Copper 7,000 USD/MT. 2019AnnualReportTable 4 Non-Reserve Minerals as of December 31, 2019 Non-Reserve Minerals (Measured + Indicated Resources) GOLD Orcopampa Julcani Tambomayo San Gabriel Trapiche La Zanja Alejandra (La Zanja) Tantahuatay (Oxidos) El Brocal (Tajo Norte - Smelter Cu - Ag) El Brocal Marcapunta Norte El Brocal Marcapunta Sur (Oeste) Yanacocha Yanacocha (Conga)1 Yanacocha (Conga)2 Total Gold Reserves BVN % Share DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 100.00 100.00 100.00 100.00 100.00 53.06 53.06 40.10 61.43 61.43 61.43 43.65 43.65 43.65 238 167 542 7,677 868,300 12,906 123 11,246 1,080 26,285 27,154 268,852 536,015 388,268 0.221 0.000 0.085 0.184 0.001 0.014 0.703 0.009 0.005 0.023 0.034 0.029 0.023 0.012 53 0.0 46 1,416 614 182 86 99 5 610 925 7,792 12,593 4,880 53 0.0 46 1,416 614 96 46 40 3 375 568 3,401 5,497 2,130 29,301 14,285 SILVER Orcopampa Uchucchacua (Silver - Lead - Zinc - ) Julcani Tambomayo San Gabriel Trapiche La Zanja Alejandra (La Zanja) Tantahuatay - Oxidos El Brocal (San Gregorio) El Brocal (Tajo Norte - Smelter) El Brocal Marcapunta Norte El Brocal Marcapunta Sur (Oeste) Yanacocha Yanacocha (Conga)1 Yanacocha (Conga)2 Total Silver Reserves BVN % Share DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 100.00 100.00 100.00 100.00 100.00 100.00 53.06 53.06 40.10 61.43 61.43 61.43 61.43 43.65 43.65 43.65 238 3,140 167 542 7,677 868,300 12,906 123 11,246 79,934 11,629 26,285 27,154 45,777 536,015 388,268 0.50 11.26 20.96 4.16 0.23 0.10 0.28 3.74 0.30 0.31 0.45 0.87 1.37 0.58 0.07 0.04 119 35,368 3,502 2,256 1,729 52,115 3,669 459 3,381 24,620 5,252 22,802 37,276 26,432 37,784.000 14,461.000 119 35,368 3,502 2,256 1,729 52,115 1,947 244 1,356 15,124 3,226 14,007 22,899 11,537 16,493 6,312 271,225 188,234 90 91 2019AnnualReportZINC Uchucchacua (Silver - Lead - Zinc) Tambomayo El Brocal (San Gregorio) El Brocal (Tajo Norte - Smelter Zn - Pb - Ag) Total Zinc Reserves LEAD Uchucchacua (Silver - Lead - Zinc) Julcani Tambomayo El Brocal (San Gregorio ) El Brocal (Tajo Norte - Smelter Zn - Pb - Ag) Total Lead Resources BVN % Share DMT (000) % Zn DMT (000) BVN DMT(000) 100.00 100.00 61.43 61.43 3,140 542 79,934 10,549 1.90 1.09 5.22 3.15 60 6 4,175 332 60 6 2,560 204 4,573 2,829 BVN % Share DMT (000) % Pb DMT (000) BVN DMT(000) 100.00 100.00 100.00 61.43 61.43 3,140 167 542 79,934 10,549 1.21 1.26 0.79 1.53 0.97 38 2.1 4 1,221 102 1,368.2 38 2.1 4 749 63 856 COPPER Julcani San Gabriel Trapiche El Brocal Marcapunta Norte El Brocal Marcapunta Sur (Oeste) El Brocal (Tajo Norte - Smelter Cu - Ag) Yanacocha Yanacocha (sulfuros) Yanacocha (Conga)1 Yanacocha (Conga)2 Total Copper Resources BVN % Share DMT (000) % Cu DMT (000) BVN DMT(000) 100.00 100.00 100.00 61.43 61.43 61.43 43.65 43.65 43.65 43.65 167 7,677 868,300 26,285 27,154 1,080 22,376 110,826 536,015 388,268 0.27 0.06 0.37 1.63 0.89 1.27 0.22 0.64 0.28 0.19 0 4 3,247 430 242 14 49 50,000 1,501 738 56,225 0 4 3,247 264 149 8 21 21,825 655 322 26,497 Prices used to calculate resources: Gold 1,300 USD/oz; Silver 16.30 USD/oz; Lead 2,200 USD/MT; Zinc 2,800 USD/MT; and Copper 6,200 USD/MT. 92 93 2019AnnualReportTable 5: Commercial Table 5: Headcount Price of Metals Sold Personnel as of December 31, 2019 Gold (USD/oz) Silver (USD/oz) Lead (USD/MT) Zinc (USD/MT) Copper (USD/MT) Volumes of Metals Sold Gold (oz) Silver (oz) Lead (MT) Zinc (MT) Copper (MT) 2019 1,405 16.36 1,939 2,492 5,808 2019 180,876 18,224,320 45,995 59,953 41,027 2018 1,268 15.09 2,141 2,686 6,277 2018 324,864 24,464,648 41,601 64,793 43,770 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 Management Executives Employees Mine Comp. Mine Workers Company Total Contractors Overall Total Company 0 0 1 1 0 0 1 0 0 1 1 21 26 0 1 1 1 4 1 56 3 53 108 2 0 80 1 5 15 17 198 538 31 20 22 17 168 87 4 1 1 14 0 0 2 0 3 0 12 90 127 0 65 2 2 188 5 389 44 0 117 128 6 0 110 0 0 3 0 0 87 0 270 255 5 0 153 12 0 0 1 1 191 4 442 506 13 0 346 13 8 19 31 310 795 32 469 986 36 911 2,010 2,516 0 0 512 0 0 232 22 46 13 0 858 13 8 251 53 356 408 784 1,883 4,118 6,001 25 0 5 67 0 76 34 20 1 0 317 44 90 106 31 87 677 213 624 49 323 111 2,731 1,472 714 155 354 198 3,408 1,685 581 1,200 3,087 9,428 12,515 Overall Total 34 883 94 95 2019AnnualReportTable 5: Headcount Changes in Employee Numbers Unit Julcani Recuperada Orcopampa Uchucchacua Antapite Poracota Mallay Lima Shila Paula San Gabriel Breapampa Molle Verde Rio Seco La Zanja Conenhua Brocal Coimolache Tambomayo Total 2019 2018 2017 191 4 450 506 0 0 13 341 13 19 0 31 87 90 106 677 213 346 180 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 3,087 3,450 3,717 Table 5: Total Production % Share Ag oz Au oz Pb DMT Zn DMT Cu DMT Tambomayo Orcopampa Uchucchacua Julcani El Brocal La Zanja Tantahuatay Yanacocha Cerro Verde 100% 100% 100% 100% 61.43% 53.06% 40.10% 43.65% 19.58% 2,556,391 18,791 10,640,913 2,609,006 4,366,438 97,204 754,306 737,239 4,685,092 99,245 41,660 150 18,726 31,500 162,196 527,337 7,603 9,672 9,672 17,635 966 23,599 19,144 19,144 43,580 43,580 Total Content 26,465,380 880,814 49,803 72,396 498,883 Table 5: Production Attributable to Buenaventura Ag oz Au oz Pb DMT Zn DMT Cu DMT Tambomayo Orcopampa Uchucchacua Julcani El Brocal La Zanja Tantahuatay Yanacocha Cerro Verde 2,556,391 18,791 10,640,913 2,609,006 2,682,303 51,576 302,439 321,805 917,341 99,245 41,660 150 11,504 16,714 65,032 230,183 7,603 9,672 17,635 966 14,497 19,144 26,771 185 26,657 89,149 Total Content 20,100,565 464,488 40,701 55,587 115,990 96 97 2019AnnualReportSHAREHOLDING STRUCTURE 98 99 2019AnnualReportCIA. DE MINAS BUENAVENTURA S.A.A. Securities Area Shareholding Structure and Nationality with Stake of Over 5% As of December 31, 2019 Total Common Shares 274,889,924 Name Stake Percentage Nationality Compañía Minera Condesa S.A. Roque Benavides Ganoza Raúl Benavides Ganoza The Bank of New York Mellon Dr.(*)(**) Total Peruvian Peruvian Peruvian USA 7.69 5.06 5.03 77.32 95.10 (*) THE BANK OF NEW YORK MELLON DR. Depositary bank that holds ADRs. (**) Includes members of the Benavides family. Shareholder Composition, Common Shares with Voting Rights as of December 31, 2019 Holdings No. of Shareholders Stake Percentage Less than 1% From 1% to 5% From 5% to 10% Over 10% Total 984 1 3 1 989 3.38 1.53 17.77 77.32 100.00 Shareholder Composition, Investment Shares as of December 31, 2019 Holdings No. of Shareholders Stake Percentage Less than 1% From 1% to 5% From 5% to 10% Over 10% Total 881 3 1 1 886 27.82 3.37 5.45 63.35 100.00 100 101 2019AnnualReportShareholding Structure by Investor Type as of December 31, 2019 Share: PEP612001003 Holdings by type of holder of the share or security representing a stake comprising the S&P Perú Selective Index (as of the close of the fiscal year) No. of Holders Stake % 1 2 3 4 5 6 7 8 9 Members of the Company’s Board of Directors and senior management, including relatives Company employees not included in number 1 Individuals not included in numbers 1 and 2 Pension funds managed by the private pension fund management companies under the supervision of the Superintendency of Banking, Insurance, and Private Pension Fund Management Companies (SBS) Pension funds managed by the Pension Normalization Office (ONP) Peruvian government agencies, with the exception of the case included in number 5 Banks, financial entities, municipal savings banks, SME development agencies, agricultural credit banks, and savings and loan cooperatives under the supervision of the Superintendency of Banking, Insurance, and Private Pension Fund Management Companies (SBS) Insurance companies under the supervision of the Superintendency of Banking, Insurance, and Private Pension Fund Management Companies Brokerage agents under the supervision of the Peruvian Securities and Exchange Commission (SMV) 10 Investment funds, mutual funds, and trusts under the scope of the Stock Market Act and the Investment Funds Act, and bank trusts under the scope of the General Financial System Act 17 0 925 1 0 1 0 1 1 0 12.90% 0.00% 1.84% 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% Free-standing trusts and foreign bank trusts, to the extent they can be identified Foreign depositaries that are listed as holders of the share as part of ADR or ADS programs Foreign depositaries that are listed as holders of shares not included in number 12 Foreign custodians listed as shareholders 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 11 12 13 14 15 16 Total 0 1 0 0 40 2 0.00% 77.32% 0.00% 0.00% 0.23% 7.69% 989 100.00% Holdings by type of holder of the share or security representing a stake comprising the S&P Perú Selective Index (as of the close of the fiscal year) No. of Holders Stake % Domiciled Non-Domiciled Total 940 49 989 22.44% 77.56% 100.00% 102 103 2019AnnualReportSHARE AND ADR BEHAVIOR 104 105 2019AnnualReportShare and ADS Behavior in 2019 Share Price BVN Securities - ADS Price Buenaventura Common Share (PEN) Open Close High Low Average USD 16.12 15.66 16.53 17.37 16.17 15.43 16.36 PEN. 54.47 52.23 54.63 57.69 53.56 52.00 53.84 15.00 49.65 15.42 15.03 15.26 15.35 52.51 50.88 50.91 52.24 USD 15.65 16.64 17.28 16.21 15.17 16.67 15.24 15.24 15.18 15.34 15.37 15.10 PEN. 52.51 55.01 57.35 53.77 51.02 54.84 50.29 51.80 51.54 51.37 52.24 50.12 USD 16.80 17.31 17.78 17.70 16.57 17.71 17.85 16.11 15.94 15.67 15.83 15.45 PEN. 56.63 57.43 58.76 58.41 54.88 USD 14.80 15.42 15.98 15.13 14.15 58.48 15.08 PEN. 49.33 51.35 52.85 50.10 47.47 50.31 58.80 15.07 49.73 53.32 53.64 52.48 52.81 51.32 13.91 13.93 13.77 14.63 14.43 47.21 46.62 46.09 49.61 48.17 USD 15.72 16.36 16.93 16.31 15.05 16.09 16.67 14.98 14.81 14.47 15.23 PEN. 52.73 54.09 56.21 54.09 50.60 52.92 55.01 50.91 50.28 48.46 51.75 14.86 49.33 Open Close High Low Average Exchange Rate 3.38 3.34 3.31 3.32 3.31 3.37 3.29 3.31 3.41 3.39 3.34 3.40 3.36 3.31 3.32 3.32 3.36 3.29 3.30 3.40 3.40 3.35 3.40 3.32 3.37 3.32 3.31 3.30 3.31 3.30 3.29 3.31 3.37 3.35 3.34 3.32 3.33 3.33 3.31 3.31 3.36 3.34 3.30 3.39 3.35 3.35 3.39 3.34 3.36 3.31 3.32 3.32 3.36 3.29 3.30 3.40 3.40 3.35 3.40 3.32 Month January February March April May June July August September October November December Month January February March April May June July August September October November December 106 Month January February March April May June July August September October November December Open Close High Low Average 55.30 53.75 54.50 57.00 49.00 49.00 54.94 52.18 47.30 48.40 51.10 51.00 52.60 54.00 56.15 53.00 49.00 53.70 51.00 50.70 52.00 51.10 51.00 47.77 55.30 54.15 57.00 57.05 49.00 55.00 55.80 52.18 52.00 51.10 51.10 51.00 50.75 52.60 54.50 53.00 49.00 49.00 51.00 49.00 47.30 45.30 49.50 47.77 53.40 53.54 55.87 56.47 49.00 54.53 54.91 50.85 48.07 48.89 50.65 49.82 Buenaventura Investment Share (PEN) Month January February March April May June July August September October November December Open Close High Low Average 17.00 16.80 17.00 16.80 16.80 16.80 16.60 16.00 16.81 16.80 16.60 16.00 16.81 16.80 16.60 16.00 16.80 16.80 16.60 16.00 16.88 16.80 16.81 16.80 16.60 16.00 16.00 107 2019AnnualReport a. ADRs The ADR program on the New York Stock Exchange (NYSE) reached a trade volume of USD 4,606,152,048 in 2019 (295,266,641 ADSs). As of December 31, 2019, the number of outstanding ADSs totaled 212,545,083, representing 77.32% of the Company’s total outstanding shares. Lima, January 2020 b. Corporate Affairs As of December 31, 2019, we had 989 common shareholders. Of these, 22.44% correspond to shareholders domiciled in Peru, and 77.56% to non-domiciled shareholders. We also had 886 shareholders with investment shares. Lima, January 2020 108 109 2019AnnualReportFINANCIAL STATEMENTS 110 111 2019AnnualReportParedes, Burga & Asociados Sociedad Civil de Responsabilidad Limitada Independent Auditors’ Opinion To the Board of Directors and Shareholders of Compañía de Minas Buenaventura S.A.A. We have audited the attached consolidated financial statements of Compañía de Minas Buenaventura S.A.A. (a Peruvian publicly traded corporation) and Subsidiaries (hereinafter, “the Group”) which comprise the consolidated balance sheet as at December 31, 2019 and 2018, and the corresponding consolidated statements of income, comprehensive income, changes in equity, and cash flows for the years ended December 31, 2019, 2018, and 2017, and the summary of significant accounting policies and other explanatory notes. Paredes, Burga & Asociados Sociedad Civil de Responsabilidad Limitada Management’s liability for the consolidated financial statements Independent Auditors’ Opinion The Management is responsible for the reasonable preparation and presentation of these consolidated financial statements in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) and all internal controls deemed necessary by the Management to permit the preparation of consolidated financial statements free of material mistakes, To the Board of Directors and Shareholders of Compañía de Minas Buenaventura S.A.A. whether due to fraud or error. We have audited the attached consolidated financial statements of Compañía de Minas Auditor’s liability Buenaventura S.A.A. (a Peruvian publicly traded corporation) and Subsidiaries (hereinafter, “the Group”) which comprise the consolidated balance sheet as at December 31, 2019 and 2018, and the corresponding consolidated statements of income, comprehensive income, changes in equity, and Our responsibility is to express an opinion on these consolidated financial statements based on our cash flows for the years ended December 31, 2019, 2018, and 2017, and the summary of significant audit. Our audit was performed in accordance with International Standards on Auditing approved for accounting policies and other explanatory notes. application in Peru by the Governing Board of the Peruvian Public Accountants’ Association. Such Management’s liability for the consolidated financial statements standards require us to comply with ethical requirements, and to plan and conduct the audit to achieve reasonable certainty that the consolidated financial statements are free of material mistakes. The Management is responsible for the reasonable preparation and presentation of these consolidated An audit comprises the application of procedures to obtain auditing evidence for the amounts and financial statements in accordance with the International Financial Reporting Standards issued by the information disclosed in the consolidated financial statements. The procedures selected depend on the International Accounting Standards Board (IASB) and all internal controls deemed necessary by the professional judgment of the auditor, including the assessment of risks of material mistakes in the Management to permit the preparation of consolidated financial statements free of material mistakes, whether due to fraud or error. consolidated financial statements, whether due to fraud or error. When performing this risk assess- ment, the auditor takes into account the relevant internal controls of the Group for the reasonable Auditor’s liability preparation and presentation of the consolidated financial statements, in order to design audit proce- dures in accordance with the circumstances, but not with the purpose of expressing an opinion regard- Our responsibility is to express an opinion on these consolidated financial statements based on our ing the effectiveness of the Group’s internal controls. An audit also includes an evaluation of whether audit. Our audit was performed in accordance with International Standards on Auditing approved for application in Peru by the Governing Board of the Peruvian Public Accountants’ Association. Such or not the accounting principles applied are appropriate, and if the accounting estimates performed by standards require us to comply with ethical requirements, and to plan and conduct the audit to achieve the Management are reasonable, as well as an evaluation of the general presentation of the consoli- reasonable certainty that the consolidated financial statements are free of material mistakes. dated financial statements. An audit comprises the application of procedures to obtain auditing evidence for the amounts and information disclosed in the consolidated financial statements. The procedures selected depend on the professional judgment of the auditor, including the assessment of risks of material mistakes in the consolidated financial statements, whether due to fraud or error. When performing this risk assess- ment, the auditor takes into account the relevant internal controls of the Group for the reasonable preparation and presentation of the consolidated financial statements, in order to design audit proce- dures in accordance with the circumstances, but not with the purpose of expressing an opinion regard- ing the effectiveness of the Group’s internal controls. An audit also includes an evaluation of whether or not the accounting principles applied are appropriate, and if the accounting estimates performed by the Management are reasonable, as well as an evaluation of the general presentation of the consoli- dated financial statements. Independent Auditors’ Opinion (continued) We believe that the audit evidence we have obtained is sufficient and appropriate to provide us with a basis for our audit opinion. Opinion In our opinion, the attached consolidated financial statements reasonably present, in all material aspects, the financial situation of Compañía de Minas Buenaventura S.A.A. and Subsidiaries as at December 31, 2019 and 2018, as well as its financial performance and its consolidated cash flows for the years ended December 31, 2019, 2018, and 2017, in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB). Lima, Peru February 20, 2020 Countersigned by: Katherine Villanueva Certified Public Accountants’ Association of Callao Reg. No. 36892 Registered in Filing Card 11396556 of the Registry of Companies in and for Lima and Callao A member of Ernst & Young Global 112 Registered in Filing Card 11396556 of the Registry of Companies in and for Lima and Callao A member of Ernst & Young Global 113 2019AnnualReport Compañía de Minas Buenaventura S.A.A. and Subsidiaries Compañía de Minas Buenaventura S.A.A. and Subsidiaries Consolidated Balance Sheet as of December 31, 2019 and 2018 Consolidated Balance Sheet for the Years Ended December 31, 2019, 2018, and 2017 Assets Current assets Cash and cash equivalents Trade and misc. accounts receivable, net Inventory, net Income tax credit Expenditures paid in advance Derivative financial instruments Non-current assets Trade and misc. accounts receivable, net Inventory, net Income tax credit Investments in related businesses and joint ventures Mining concessions, development costs, use rights, property, plant, and equipment, net Investments properties, net Deferred income tax assets, net Expenditures paid in advance Other assets, net Total assets Liabilities and net equity Current liabilities Bank loans Trade and misc. accounts payable Provisions, contingent, liabilities and other liabilities Current income tax liabilities Financial obligations Non-current liabilities Trade and misc. accounts payable Provisions, contingent, liabilities and other liabilities Financial obligations Financial liabilities for contingent considerations Deferred income tax liabilities, net Total liabilities Net equity Capital stock Investment stock Additional capital Legal reserves Other reserves Cumulative profit (loss) Other equity reserves Net share attributable to shareholders of the controlling entity Share of non-controlling shareholders Total net equity 2019 USD(000) 2018 USD(000) 210,046 287,712 97,973 31,919 20,969 − 648,619 88,515 394 − 1,488,247 1,754,372 204 74,556 25,692 26,675 3’458,655 4’107,274 55,000 166,244 72,771 5,650 265,692 565,357 616 221,736 305,996 16,410 28,959 573,717 1’139,074 750,497 791 218,450 163,168 269 1’639,658 (1,311) 2’771,522 196,678 2’968,200 369,200 211,715 135,919 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 Total net liabilities and equity 4’107,274 4’217,221 Continued operations Operating income: Net goods sold Services sold Income from royalties Total operating income Operating costs Cost of goods sold, not incl. depreciation and amortization Cost of services sold, not incl. depreciation and amortization Depreciation and amortization Exploration in operating units Mining royalties Total operating costs Net earnings Operating expenses, net Administrative expenses Sales expenses Exploration in non-operating areas Recovery (loss) from long-term asset impairment Reversal (provision) for contingencies and others Write-off of clearing cost component Others, net Total operating expenses Operating earnings (loss) Other income (expenses), net Net share in results of related businesses and joint ventures Financial income Financial costs Net earnings (loss) due to exchange rate difference Total other income (expenses), net Earnings (loss) for continued operations Current income tax Deferred income tax Earnings (loss) for continued operations Discontinued operations Net loss due to discontinued operations attributable to controlling entity Net earnings (loss) Attributable to: Shareholders of the controlling entity Non-controlling interests 2019 USD(000) 2018 USD(000) 2017 USD(000) 821,930 23,661 22,297 867,888 1’106,329 24,001 20,385 1’150,715 1’187,206 29,697 20,739 1’237,642 (512,874) (613,381) (604,650) (3,378) (226,335) (44,163) (12,832) (799, 582) 68,306 (76,297) (24,313) (11,879) (2,083) 2,968 (14,715) (126,319) (58,013) 7,710 9,675 (42,173) (734) 14, 478 (43,535 ) (11,911) 37,501 (17,945) (10,514) (28,459) (12,208) (16,251) (28,459) (4,318) (238,879) (89,730) (21,388) (967,696) 183,019 (77,099) (26,948) (36,307) 11,248 − (1,308) (124,721) 58,298 (1,144) 9,685 (38,422) (1,384) (31,265) 27,033 (16,882) (9,997) 154 (11,808) (11,654) (13,445) 1,791 (11,654) (12,954) (210,154) (89,311) (30,884) (947,953) 289,689 (80,666) (23,043) (18,262) (21,620) (13,740) (13,573) (13,230) (184,134) 105,555 13,207 5,517 (34,551) 2,939 (12,888) 92,667 (23,713) 5,825 74,779 (10,344) 64,435 60,823 3,612 64,435 0.24 0.28 114 115 Net earnings (loss) per basic and diluted share attributable to shareholders of the controlling entity, expressed in US dollars Earnings (loss) from continued operations, per basic and diluted share attributable to the shareholders of the controlling entity, expressed in US dollars (0.05) (0.05) ( 0.01) (0.02) 2019AnnualReportCompañía de Minas Buenaventura S.A.A. and Subsidiaries Consolidated Cash Flow Statement for the Years Ended December 31, 2019, 2018, and 2017 Operating activities Collection of sales Collection of tax refunds requested for sales tax and other taxes Collection of dividends Collection of royalties Collection of interest Collection from insurance Payments to suppliers and third parties Payments to employees Payments due to tax litigation Payment of interest Payment of income tax Payment of royalties 2019 USD(000) 2018 USD(000) 2017 USD(000) 783,000 1’216,294 1‘197,523 45,712 33,388 23,001 4,265 (610,737) (137,300) (36,322) (28,266) (24,935) (4,741) 106,656 46,792 20,013 2,383 38,793 (861,282) (151,602) − (27,699) (30,898) (13,190) 102,548 9,823 21,565 3,169 − (872,467) (160,891) − (30,402) (38,121) (20,165) Net cash and cash equivalents from operating activities 47,065 346,26 0 212,582 Investment activities Income from sale of mining concessions, development costs, and property, plant, and equipment to third parties Acquisition of mining concessions, development costs, and property, plant, and equipment Payments for acquisition of other assets Income from collection of loan to related company Net cash and cash equivalents used in investment activities Financing activities Increase in bank loans Payment of bank loans Increase in financial obligations Payment of financial obligations Payments on short-term lease Payment of dividends to controlling shareholders Payment of dividends to non-controlling shareholders Decrease (increase) in restricted bank accounts Payment for purchase of shares from non-controlling shareholders Net cash and cash equivalents from (used in) financing activities Increase (decrease) in cash and cash equivalents during the year Cash and cash equivalents at the start of the year Cash and cash equivalents at the end of the year Financing and investment activities that do not affect cash flows: Changes in mine closure estimates Accounts receivable for sale of fixed asset Fair value of contingent liability 726 2,240 1,962 (102,627) (3,700) (111,270) (8,529) − (259,507) (5,405) 124,800 (105,601) (117,559) (138,150) 55,000 (95,000) 161,894 (186,152) (7,596) (22,098) (6,500) (166) − (100,618) (159,154) 369,200 210,046 95,000 (95,000) − (45,222) − (22,860) (5,560) (410) − (74,052) 154,649 214,551 369,200 341,215 (300,000) 80,000 (32,599) − (22,099) (6,036) (285) (621) 59,575 134,007 80,544 214,551 26,722 21,648 (655) 42,874 2,715 1,815 10,594 5,371 1,773 116 117 117 2019AnnualReportMANAGEMENT TEAM 118 119 2019AnnualReportManagement Management Victor Gobitz C. General Manager since Jan. 2, 2017 Renzo Macher C. Projects Manager - Projects Raúl Benavides G. Vice President of Business Development since Jul. 1, 1997 Andrés Osorio A. Projects Manager - Operations since Jun. 1, 2019 Leandro García R. Vice President of Finance and Admin. since Dec. 1, 2017 Julio Meza Paredes Geology Manager Juan Carlos Ortiz Zevallos Vice President of Operations since May 1, 2018 Juan Carlos Salazar C. Explorations Manager Alejandro Hermoza M. Vice President of Sustainability since Sep. 2, 2008 Carlos Rodríguez Vigo Environmental Manager Oswaldo Cabrera R. Juan Buhytron Q. Information Technology and Communications Manager from Jun. 30, 2019 to departure Director of Operational ITC Applications in charge of ITC Management since Jul. 1, 2019 Diego Angulo de Avilés Planning Manager Tomas Chaparro D. Safety Manager Pedro Torres T. Accounting Manager Sandro Arce Valdivia Asset Manager from Aug. 31, 2019 to departure Luz Campodónico A. Internal Audit Manager Ricardo Huancaya Delgado Technical Operations Mgr. - Underground from Jul. 1, 2018 to Apr. 30, 2019 – change to San Gabriel Daniel Domínguez V. Logistics Manager Alex Lobo Guillén Technical Operations Mgr. - Open Pit José Malca La Fuente Human Resources Manager Marco Oyanguren L. Operations Manager until Mar. 31, 2019 - Transfer to Brocal Gulnara La Rosa R. Legal Manager Edgar Córdova M. Manager of Social Affairs and Mining Property Percy Ponce B. Metallurgical Plants and Research Manager Benjamin Valer C. Project Manager - San Gabriel until May 20, 2019 - Transfer to Molle Verde Ignacio Agramunt B. Innovation Manager Ricardo Huancaya Delgado Project Manager - San Gabriel since May 1, 2019 Ernesto Ladron de Guevara H. Compliance Manager since Apr. 8, 2019 120 121 2019AnnualReportLima Lima Hector Alzamora B. Director of Processes from Dec. 1, 2017 to Mar. 4 2019 - Transfer to Brocal Jorge Falla Cordero Director of Permits and Obligations Juan Ayala L. Director of Processes since Apr. 1, 2019 Luis Fernandez De Paredes Robles Director of Regional Explorations Julio Avalos C. Maintenance Planning Director from Mar. 1, 2018 to Mar. 31, 2019 - Transfer to Brocal Alfredo Gallardo Rios Reg. Director of Environmental Mgmt. Kellyn Cristobal P. Planning Director since Dec. 1, 2019 Rolando Ligarda C. Director of Regional Explorations Augusto Bejarano Vásquez Tax Accounting Director Rosemarie Boltan Atoche Reg. Director of Environmental Mgmt. Fernando Mayor Najera Director of Compliance and Research Auditing Neil Mendoza Hoyos Director of Asset Management Reliability Juan Buhytron Q. Director of Operational ICT Applications Freddy Meza Padilla Director of Project Development Guillermo Chang Chag Director of Financial and Process Auditing Carlos Claux Mora Director of Social Responsibility and Development Fernando Ortiz De Zevallos Malaga Director of Business Development Alberto Peña Alburqueque Director of Modeling and Resources Juan Collao Guanilo Marketing Director Andrés Cecilia Puga Buse Director of the Treasury Andrés Condori Benavides Director of Geology Ana María Rivera Calderón Director of Social Management Pedro Navarro B. Director of Safety Guillermo Shoof A. Legal Director Fredy Oscategui S. Director of Safety since Aug. 1, 2017 Raúl Ponce de León Director of Service Procurement and Contract Manager from Jan. 1, 2018 to Sep. 30, 2019 - departure Julio Velasquez Miñan Director of Safety Miguel Diaz Romero Director of Financial Accounting 122 123 2019AnnualReportLima Uchucchacua Rossi Marie Montalvo S. Director of Service Procurement and Contract Manager since Oct. 1, 2019 Andrés Osorio Anaya Unit Manager until May 31, 2019 - Transfer to LIMA Juan Martin Chávez L. Director of Material and Asset Procurement José Luis Alcalá Unit Manager since Jun. 1, 2019 Rafael Guillen Llerena Director of Logistics Juan Ayala López Plant Supervisor until Mar. 31, 2019 - Transfer to LIMA Harry Silva Nichos Director of Project Control since Nov. 8, 2017 Waldir Guillermo C. Plant Supervisor since May 1, 2019 José Trujillo Salcedo Director of Regional Explorations José Luis Aquino Aquino Geology Supervisor until Dec. 31, 2019 - Transfer to LIMA Pablo Valladares Hernandez Regional Director of Environmental Management Juan Carlos Oré Mego Mine Supervisor until Apr. 10, 2019 - departure Percy Montoya V. Director of Environmental Projects since Oct. 1, 2019 Heider Montoya E. Mine Supervisor since May 1, 2019 Dante García Suclla Director of Metallurgical Projects since Jan. 1, 2019 Christian Aragón Díaz Maintenance Supervisor until Mar. 22, 2019 - departure Juan Carlos Vargas Byrne Director of Labor Relations and Personnel Management Martin Rodriguez S. Maintenance and Engineering Supervisor since Apr. 1, 2019 Silvia Vicente León Director of ITC Communications Systems Javier Raya Quispe Planning Supervisor until Feb. 1, 2019 - departure Manuel Villalobos Berrocal Director of Administrative Control - Mining Units José Villlobos Tamindzija Director of Information Security and ITC Risks from Feb. 1, 2018 to Aug. 31, 2019 - departure Juan Pablo Zoeger La Hoz Director of Human Resources Management and Development Julio Velasquez Miñan Director of Safety Miguel Diaz Romero Director of Financial Accounting 124 125 2019AnnualReportUchucchacua Orcopampa Orlando Olarte R Planning Supervisor since Nov. 1, 2019 Gilmar Valenzuela Salazar Production Manager Fabricio Huerta Luza Project Supervisor Edwin Mendoza Begazo Geology Supervisor César Carrasco Loayza Environmental Management Supervisor Heider Montoya Espinoza Mine Supervisor from Jan. 1, 2017 to Apr. 30, 2019 - Transf to UCH Marco Negrón Tunjar Safety Supervisor until Jul. 7, 2019 - Transfer to Brocal Jimmy Gabriel Espinoza Environmental Management Supervisor Hector Quispe Chahua Safety Supervisor since Jul. 1, 2019 Walter Rondinelli Zaga Social Affairs Supervisor César Augusto Rondinelli Zaga Social Affairs Supervisor Pedro Vizcardo Martínez Administrative Supervisor Carlos Matías M. Administrative Supervisor until Jul. 31, 2019 - Transfer to Brocal Percy Quea Díaz Human Resources Supervisor Hector Quispe Ramos Administrative Supervisor since Aug. 1, 2019 Enrique Romero Graus Human Resources Supervisor Julcani Julio Delgado Z. Unit Accountant José Luis Alcala Valencia Unit Manager until May 31, 2019 - Transf to UCH Jaime Jimenez Tuse General Unit Supervisor since Aug. 1, 2019 Mallay Carlos Montes Moya Geology Supervisor Rolando Quispe V. Head of Community Relations since Oct. 1, 2015 Yackson Enrique Figueroa Cruz Plant Supervisor 126 127 2019AnnualReportJulcani Tambomayo Jaime Jimenez Tuse Mine Supervisor until Jul. 31, 2019 –promotion Edgar Roque Ortiz Unit Manager Mirko Martinez N. Mine Supervisor since Sep. 1, 2019 William Agurto Anton Maintenance Supervisor Ivan Carhuaz Castro Social Affairs Supervisor Edgard Atencia Daga Mine Supervisor Henry Arcos Romucho Environmental Management Supervisor until Feb. 10, 2019 - Transf to CMC Roger Ccahuana Figueroa Geology Supervisor Alfredo Angulo S. Environmental Management Supervisor since Feb. 1, 2019 Kellyn Cristobal Paredes Planning and Engineering Supervisor until Nov. 30, 2019 - Transf to LIMA Hector Quispe Chahua Safety Supervisor from Jan. 8, 2019 to Jun. 30, 2019 - Transf to UCH Fernando Dueñas Aliaga Safety Supervisor Rendel Apolo F. Safety Supervisor since Jul. 8, 2019 Percy Quea Díaz Human Resources Supervisor Jackson Arriola C. Planning and Project Supervisor since Sep. 1, 2019 José Luis Quijahuaman Yana Plant Supervisor until Sep. 30, 2019 - departure Rommer Mendoza Ramírez Head of Human Resources Liseth León Castro Head of Environmental Management until Aug. 31, 2019 - departure Carlos Huamaní T. Head of Environmental Management since Oct. 1, 2019 Segundo Salazar Silva Social Affairs Supervisor 128 129 2019AnnualReportSan Gabriel Cia. Minera Coimolache Alicia Sotelo R. Project Supervisor since Apr. 15, 2019 Gary Samuel Chircca Ayesta Unit Manager since Jul. 1, 2017 Roxana Salas Z. Head of Community Relations until Jun. 30, 2019 – dep. Percy Zamora Díaz Geology Supervisor Reynaldo Zambraro R. Local Social Affairs Coordinator Manuel Aranda Villar Mine Supervisor Yanina Aroni C. Local Social Affairs Coordinator César Esquivel Saavedra Administrative Supervisor Luis Falcón López Explorations Geologist since Sep. 1, 2019 Segundo Velasquez Miranda Plant Supervisor Julio Ugarte L. Environmental Management Supervisor since Sep. 1, 2019 Victor Orihuela Vega Human Resources Supervisor Huber Usuriaga N. Mine Head since Apr. 1, 2019 Salvador Salazar Zegarra Unit Accountant since Sep. 1, 2018 to Sep. 30, 2019 - Transf to BVN Jackson Durand L. Safety Engineer since Oct. 14, 2019 Edgardo Torres S. Safety Engineer Conenhua Carlos Herrera B. Technical Manager La Zanja Kenny Regalado Vasquez General Unit Supervisor since Mar. 6, 2019 Pedro Limaco V. Mario Borda C. Superintendent of Operations and Maintenance until Jan. 2, 2019 - departure Superintendent of Operations and Maintenance since Mar. 1, 2019 Robinson Paredes Abanto Plant Supervisor David Giraldo Ch. Operations Supervisor Julio Ugarte Luna Environmental Management Supervisor until Aug. 31, 2019 - Transf to BVN Fabio Mallqui A. Superintendent of Engineering Humberto Núñez Flores Environmental Management Supervisor since Dec. 2, 2019 Julio Montoya G. Sales Manager until Jan. 31, 2019 - departure William Pilco G. Superintendent of Social and Env. Affairs 130 131 2019AnnualReportEl Molle Verde Soc. Minera el Brocal Edgar Paico Salazar Head of Construction until Oct. 31, 2019 - departure Akira Takahashi A. El Brocal Manager until Mar. 17, 2019 - departure Miguel Pérez Fernandez Project Director until Jul. 31, 2019 - departure Marco Oyanguren L. Operations Manager since Apr. 1, 2019 Ruben Fernandez Soto Project Supervisor since May 20, 2019 Rubén Rojas M. Process Manager until Mar. 8, 2019 - departure Francisco Veliz Mamami Geology Supervisor since May 1, 2019 Hector Alzamora B. Process Manager since Mar. 5, 2019 Edgardo Prado Arce Social Affairs Supervisor until Apr. 30, 2019 - departure Juan Carlos Vásquez M. Maintenance Manager until Mar. 30, 2019 - departure Walter Rondinelli Z. Social Affairs Supervisor since Jun. 1, 2019 Julio Avalos C. Maintenance Manager from Apr. 1, 2019 to Aug. 16, 2019 - departure Raúl Olivares J. Optimization Projects Manager - El Brocal Daniel Roca F. Mine Manager Bruno Alvarez B. Administrative Supervisor until Jul. 31, 2019 - departure Carlos Matías M. Administrative Supervisor since Aug. 1, 2019 Rio Seco Jaime Díaz Yosa Unit Manager José Luis Lama Manayay Supervisor of Research and Development Vidal Mamani Machuca Plant Operations Supervisor from Mar. 21, 2018 to Mar. 15, 2019 - departure Giovani Loayza Montenegro Plant Operations Supervisor since 11/03/2019 Sandra Medina Vega Safety Supervisor Martin Rodriguez Serveleon General Maintenance Supervisor until Mar. 31, 2019 - Transf to BVN Felipe Gonzales Bernal General Maintenance Supervisor since May 23, 2019 Alvaro Castillo Sánchez Head of Administration Richard Villagaray Surca Head of Plant Processes 132 133 2019AnnualReportSoc. Minera el Brocal Soc. Minera el Brocal Hugo Araoz Z. Environmental Supervisor Delbi Molina G. Plant Processes Supervisor until May 31, 2019 - departure Wilder Cabrera T. Project Supervisor Ivan Monteagudo G. Gen. Development and Explorations Supervisor Michela Corimanya D. Project Control Supervisor Armando Muñoz S. Social Affairs Supervisor Angel Francia M. Human Resources Supervisor since Jan. 16, 2019 Marco Negrón T. Safety Supervisor since Jul. 8, 2019 Dante Gavidia C. Planning and Engineering Supervisor Jorge Pinazo B. Superintendent of Engineering until Jun. 30, 2019 - departure Juan Hoyos O. General SA Supervisor - San Gregorio Project Diego Quiñones T. Maintenance Planning Supervisor until Apr. 19, 2019 - departure Luis Lévano C. Surface Mining Ops. Supervisor until Jul. 11, 2019 - departure Michael Rivera M. Plant Processes Supervisor until Dec. 31, 2019 - departure Marco Calderón M. Surface Mining Ops. Supervisor since Aug. 1, 2019 Kely Santos P. Technical Processes Supervisor since May 7, 2019 Carlos Camacho D. Underground Mining Ops. Supervisor Ivan Turco A. Electrical and Instrument Maint. Supervisor Guillermo Macedo Ch. Operating Services Supervisor until Mar. 31, 2019 - departure José Antonio Unda H. Mine Maintenance Supervisor until Dec. 31, 2019 - departure Moises Mascco C. Plant Maintenance Supervisor Marco Villalobos O. Maintenance Planning Supervisor since May 16, 2019 134 135 2019AnnualReportBACKGROUND OF BOARD MEMBERS AND MANAGEMENT 136 Roque Benavides - Chairman of the Board Mr. Benavides graduated with a 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 40 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 Confederation of Private Business Institutions (CONFIEP) for two separate terms, the last of which concluded in 2019. He was also previously the president of the Peruvian Society of Mining, Petroleum, and Energy (SNMPE). 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 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 president of the Entrepreneurs for Education Association. 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 40 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 and 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. Nicole Bernex - Director 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 of 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. 138 139 2019AnnualReportVíctor Gobitz - General Manager CEO and 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 Peru) from 2013 to 2016; General Manager and Director at Río Alto Mining (now Panamerican Silver); 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 has over 25 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). He is currently the director of GERENS Business School and a professor at the Pontificia Universidad Católica del Perú (PUCP). Leandro García - Vice President of Finance and Administration Mr. García holds a Bachelor’s Degree in Business Administration from the Universidad del Pacífico, a 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 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 and became Vice President of Finance and Administration in December 2017. 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, with a focus on mining engineering management. Before joining Buenaventura, he was Chief Technical Officer at Volcan Compañía Minera, a polymetallic mining company and one of the largest zinc, lead, and silver producers in the world. He was also previously Chief Operating Officer 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. Over the course of his career, he has held different operations and project management positions throughout Latin America. Currently, he is the director of the Peruvian Institute of Mining Engineers. 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 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 has held the position of Community Relations Manager from 2008 to 2011and Deputy Manager of Administration and Human Resources from 2003 to 2008; and Vice President of Sustainability from 2008 to date. 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. 140 141 2019AnnualReport

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