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
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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).
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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%.
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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
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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
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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
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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.
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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.
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