Compañía de Minas Buenaventura S.A.A.
Annual Report 2020

Plain-text annual report

ANNUAL REPORT ANNUAL REPORT 2020 Contents / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY T R O P E R L A U N N A 0 2 0 2 3 T R O P E R L A U N N A 0 2 0 2 44 2020 ANNUAL REPORT This document contains accurate and sufficient information regarding the business development of Compañía de Minas Buenaventura S.A.A. in 2020. Without prejudice to the issuer’s liability, the undersigned is responsible for its contents in accordance with the applicable legal provisions. Leandro García Raggio GENERAL MANAGER Lima, February 25, 2021 5 5 / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Letter to shareholders T R O P E R L A U N N A 0 2 0 2 06 06 2020 ANNUAL REPORT DEAR SHAREHOLDERS, IN THE YEAR 2020 WE FACED ONE OF THE HARDEST AND MOST COMPLEX HEALTH, ECONOMIC AND SOCIAL CRISES IN HISTORY. 07 07 Letter to shareholders Reports from the city of Wuhan, China, revealed the emergence of a rapidly spreading atypical pneumonia, which would subsequently lead the World Health Organization (WHO) to declare COVID-19 a global threat on January 30, 2020. After two months, this disease would reach global pandemic levels. In Peru, on March 16, 2020, the Government declared a State of National Emergency with mandatory physical distancing and the closure of borders due to the advance of the spreading of infections throughout the country and the collapse of its health care services. By the end of the year, the effects of COVID-19 continued to have an impact on our health as well as the economy around the world, generating a climate of uncertainty that still persists, despite the efforts of the scientific community to develop vaccines in record time. 08 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY THE GLOBAL GDP SHRANK BY -4.3% WITH THE GREATEST IMPACT ON DEVELOPING AND EMERGING ECONOMIES “ the WHO reported over 80 million infections and 1.5 million deaths worldwide. As of 31 December 2020, the WHO reported over 80 million infections and 1.5 million deaths worldwide. In our country, according to reports from the Ministry of Health, there are more than one million confirmed cases and over 37 thousand have died from the virus. The global economy went into recession, particularly affecting Latin America. According to the World Bank, the global GDP shrank by -4.3%, with the greatest impact on developing and emerging economies such as Argentina (-10.6%), Peru (-12%), Mexico (-9%), and Brazil (-4.5%). Additionally, the Economic Commission for Latin America and the Caribbean (ECLAC) described the impact of the pandemic in the United States as severe given the number of deaths and the paralysis of economic activity. The chance of a recession in the US economy reduced in 2019; however, in 2020 the pandemic led to a decline of -3.6%, according to the World Bank. The political landscape in the United States was also complex in 2020 and ended in Democrat Joseph Biden succeeding Republican Donald Trump as President. 09 Letter to shareholders According to World Bank reports, China, the country where the virus emerged, was the only growing world power in 2020, by about 2%. Infection control, production of biosafety-related material, and economic stimulus policies were key factors for China, analysts say. However, this trend is low compared to its growth rates in 2018 (6.6%) and 2019 (6.1%). The Eurozone registered a decrease of -7.4% in 2020, and it was the most affected region in the developed world, even despite policies aimed at preserving employment, family income and business activity. In Peru, the health crisis and restrictions caused the paralysis of 35% of the economy’s installed capacity, according to CONFIEP’s 2020 Reactivation Agenda, which made millions of households and thousands of enterprises vulnerable. In May 2020, Peru’s economic activity began to reactivate gradually and in stages. While the mining industry had been able to continue carrying out critical activities with essential personnel from the beginning of the quarantine, it was not until the end of May, with the first phase of reactivation, that it was able to fully resume its activities. This thus meant the reactivation of thousands of jobs and the resurgence of an activity that is one of the driving forces of our national economy. At Compañía de Minas Buenaventura, we adapted our operations to the new circumstances to ensure the health and integrity of our workers and their families, contractors, and neighboring communities. During the first stage of the quarantine, our direct operations focused only on essential tasks. We gradually resumed mining activities on May 11, 2020, in accordance with the Government’s supreme decree authorizing the resumption of mining activities at the national level. For this purpose, we designed a strict health protocol (Workplace Plan for COVID-19 Surveillance, Prevention and Control) approved by the relevant authorities, the purpose of which is to prevent and minimize the spread of the virus at our operations and projects. This protocol is continually reviewed and updated. To comply with the new regulations, we decided to restart operations in two phases, prioritizing mines with higher levels of production. Phase 1 began on May 16, 2020 restarting operations in Tambomayo, Uchucchacua, El Brocal (Tajo Norte and Marcapunta) and Coimolache, while phase 2 began on June 16, 2020 with the Orcopampa, Julcani and La Zanja units. 10 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY BUENAVENTURA CONTRIBUTED MORE THAN 110 thousand BIOSAFETY EQUIPMENT The reactivation of formal mining also demonstrated the existing solidarity of mining companies, which, in coordination with the authorities and society at large, brought aid to their respective areas of influence, locations where it was necessary to strengthen health care systems, and the availability of biosafety equipment for doctors and frontline staff workers, among other contributions. “ Since the beginning of the pandemic, Buenaventura has been coordinating with national, regional, and local authorities to bring aid to the most vulnerable populations in eight regions of the country: Arequipa, Cajamarca, Huancavelica, Pasco, Apurímac, Moquegua, Piura, Lima and Loreto, the latter outside our sphere of influence, but one of the hardest hit by the health emergency. To date, Buenaventura’s contributions include an oxygen plant for the Iquitos EsSalud Hospital III – the first donated by the Peruvian private sector – an oxygen plant for Hospital Arzobispo Loayza in Lima; an electric generator for Yanahuara Hospital in Arequipa; around 100 concentrators and more than 150 oxygen cylinders; over 110 thousand biosafety equipment; over 200 thousand medicines and more than 47,000 tests to discard COVID-19, among other contributions. It should be noted that Buenaventura is part of the group of private companies that, in coordination with the Peruvian Government, has made possible the arrival of the first batch of one million vaccines of the Sinopharm laboratory from China to Peru. In addition, together with other institutions, we have collaborated with Pontificia Universidad Católica del Perú (PUCP) on the MASI project for the development of mechanical ventilators with national technology. In 2020, the climate of political instability and clashes between the state powers continued, triggering in November the ousting of President Martín Vizcarra, the resignation of his successor Manuel Merino and the appointment of Francisco Sagasti as President. The latter will lead the country until July 2021. In 2021, the global and national landscape is expected to continue to be one of uncertainty, adaptation 11 Letter to shareholders PERÚ HAVE 48 MINING PROJECTS WORTH US$ 57 BILLION and resilience. As Peruvians and entrepreneurs, we have the mission to continue rebuilding the country while caring for our employees, communities and families. offset by an improvement in metal prices. There was also a lower cost of goods sold (US$ 119 M) and lower spending on exploration in operating units (US$ 16 M). According to reports from the Ministry of Energy and Mines, we currently have 48 mining projects worth US$ 57 billion. This represents an opportunity to highlight the value of our natural resources in favor of the reconstruction of the country and the generation of employment and opportunities for Peruvians toward the 200th anniversary of our independence. As of December 31, 2020, the price of an ounce of gold was US$ 1,891, while an ounce of silver closed at US$ 26.49, according to the London Bullion Market Association, the primary reference point in the precious metals market. The London Metal Exchange reported that a ton of copper closed at US$ 7,742 in 2020 and the ton of zinc at US$ 2,724. Lead closed the year at US$ 1,972 a ton. Buenaventura’s share price decreased by 19% in 2020, closing at US$ 12.2. In the year under review, our company suffered a net loss of US$ 150.3 M, compared to the US$ 28.5 M loss in 2019. This was mainly due to a drop in net sales generated by lower production volumes but The net debt/EBITDA ratio in 2020 increased from 2.06x to 2.46x. In addition, the cash position at the end of 2020 increased from US$ 210.0 M to US$ 235.4 M and the CAPEX for the year was US$ 73 M. In November 2020, following the Tax Court’s decision dismissing the appeals filed by our company in connection with tax controversies we hold with SUNAT, the collection of debt amounting to S/ 567 million began. It is composed of S/ 192 million in taxes and S/ 1,375 million in fines and interest. In view of this, under the current legal framework, Buenaventura filed a request for a deferral or fractioning of the tax debt so that it can be paid off within six years, paying, in addition, the interest corresponding to such fractioning. To such end, at the request of SUNAT, we submitted all the documentation required with a group of banks for the necessary financial guarantees for the amounts charged, while we continue with the legal processes in the corresponding instances. The requested fractioning initial payment of 14% and 66 equal installments for the remaining amount. involves an 12 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY “ Moreover, safety remains a fundamental part of all our activities. In 2020, the Accident Rate fell by 90% compared to 2019, due to, among other factors, the decline in high-risk work between March and June because of the pandemic. We are pleased to report that there were no fatal accidents in our units during the year under review, as opposed to the two fatal accidents that occurred in 2019. These results require us to continue making efforts and allocate resources to achieve sustainability in our safety performance. Faced with the complex situation resulting from the pandemic, we also had to adapt our social management and related activities, putting greater emphasis on caring for the health needs of the regions and localities near our units, in order to contribute to the fight against COVID-19. In ongoing coordination with local authorities, we took part in setting up health safety fences. These became one of the main tools in the districts and communities in the highlands to reduce contact with COVID-19 cases and to monitor compliance with government regulations. In addition, as explained at the start of this letter, we have provided support to vulnerable people in the most remote areas of the country, strengthening frontline work with the distribution and donation of oxygen, biosafety materials, Covid-discarding tests, among other actions detailed in this report. Our Environmental Management department directed its interventions towards achieving the sustainability of the units, through adequate operational control of a mainly preventive nature to minimize the impacts on the environment. In addition, it focused on achieving adequate management of water resources, controlling their quality and ensuring their reuse and recirculation in our processes. In the Human Resources area, we closed 2020 with a total workforce of 11,919 people. This number 13 Letter to shareholders includes contractor personnel (8,985) who provide services at our operations. The performance of our production units fell within the expected range. In 2020, Tambomayo, in Caylloma, Arequipa, produced 63,477 ounces of gold and 1,668,582 ounces of silver, compared to the 99,245 ounces of gold and 2,556,391 ounces of silver of the previous year. The Orcopampa Unit, in the province of Castilla (Arequipa), produced 41,129 ounces of gold compared to 41,660 ounces in 2019. La Zanja and Coimolache, open-pit mines operating in Cajamarca, produced 17,228 and 106,017 ounces of gold in 2020, respectively, compared to the 31,500 ounces of gold produced by La Zanja and 162,196 ounces of gold produced by Coimolache in 2019. Uchucchacua, a silver mine in Oyón, Lima, produced 5’000,312 ounces of silver, compared to the 10’640,913 ounces produced in 2019. In 2020, Sociedad Minera El Brocal (61.43% BVN), a Buenaventura subsidiary that operates the Colquijirca Unit in Cerro de Pasco, recorded a production 30,608 metric tons of copper and 54,909 metric tons of zinc. In 2019, it recorded 43,394 metric tons of copper and 43,580 metric tons of zinc. At El Brocal, lead production levels came to 20,066 tons compared to the 23,599 tons reached in 2019. In addition, it produced 3,508,585 ounces of silver, down from 4,366,438 ounces the previous year. Sociedad Minera Cerro Verde (19.58% BVN), a related company operating in Arequipa, reported a production of 371,991 metric tons of copper compared to the 455,305 metric tons produced the previous year. Minera Yanacocha (43.65% BVN), also a related company located in Cajamarca, produced 340,052 ounces of gold in 2020, down from the 527,336 ounces produced in 2019. The Julcani Unit, our flagship mine, located in Huancavelica, produced 1’676,731 ounces of silver compared to the 2’609,006 ounces produced the previous year. The effort put into exploration works is part of Buenaventura’s culture, one which ensures the continuity of our operations. At our underground units of Orcopampa, Uchucchacua, Tambomayo, 14 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY THE SAN GABRIEL PROJECT COMPLETED THE FEASIBILITY STUDY Julcani, and El Brocal, progress consisted of 7,197 meters of exploration tunnels and 112,607 meters of diamond drill holes. No drilling was carried out in open pit mines. In terms of our project portfolio, the company purchased 500 hectares in the community of Huachus Yumpaq (Pasco), and performed the planned resources delineation works for the project. Currently, 80% of the mine’s detail engineering has been developed and the Environmental Impact Assessment (EIA) is planned for the second quarter of 2021. The San Gabriel Project (Moquegua) completed the feasibility study carried out with Ausenco-Agnitia, which estimated a total volume of 14.6 million metric tons of ore with an average grade of 4.2 grams per ton of gold (1.96 million ounces of gold). At Trapiche (Apurimac), the prefeasibility study with M3 was completed, estimating a volume of 283 million metric tons of ore with an average copper grade of 0.51% (1.4 million tons of copper). “In 2020, the company saw important changes at the organizational level. On July 30, 2020, the Board of Directors accepted the resignation of Mr. Víctor Gobitz from the General Management of Buenaventura, a position he had held since January 2017. Mr. Gobitz worked with us until August 31, 2020. We would like to thank him for his important contributions to our operations and wish him every success in his new professional challenges. 15 Letter to shareholders The Board of Directors decided to appoint Mr. Leandro García as the new CEO-General Manager of Buenaventura, a position he assumed on September 1, 2020. Previously, Mr. García had served as Vice-President of Finance and Administration for the company since December 2017. His career at the company began in 1990. We are confident that his experience will allow us to achieve greater efficiencies in our operations and projects. In addition, Daniel Domínguez was appointed Vice- President of Finance and Administration of the company on September 8, 2020. Mr. Domínguez joined Buenaventura over 20 years ago. Prior to this appointment, he served as Logistics Manager from 2017 to 2020. We wish him success in his new role. In December 2020, Mr. Raúl Benavides retired from executive work after 40 years of valuable contributions to the company, leaving his mark for his important role in the development of Buenaventura and for his active participation in the start-up of mines such as Yanacocha, La Zanja and Coimolache, as well as the Rio Seco Industrial Processing Plant, among other important contributions. Raul had served as Vice-President of Business Development since 2011. The Board of Directors, in its session held on January 4, 2021, appointed Mr. Raúl Benavides as a new member of the Board of Directors to replace Dr. José Miguel Morales, who resigned from the position of Director after reaching the maximum retirement age for Board members in accordance with our Corporate Governance practices. We especially thank Dr. Morales for his 50 years of service to the company. His experience and profound knowledge of our company has contributed significantly to its development, both from his position as Director and from his position as General Counsel. We would like to extend our greatest appreciation and best wishes to him. In January 2021, Mr. Aldo Massa assumed the Vice Presidency of Business Development and 16 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY of all our production units, projects, and offices in eight regions of the country for their effort and commitment to move our company forward in this complex situation. Lima, February 25, 2021 Roque Benavides Chairman of the Board Marketing. Mr. Massa had previously served as Business Manager since February 2020. He has over 25 years of experience in the mining sector and prior to joining Buenaventura he worked at Southern Copper Corporation as its Commercial Director. At the management level, Ms. Cecilia Puga took over the Finance Management department in September 2020; Mr. Fernando Ortiz de Zevallos assumed the Logistics Management in October 2020; Mr. Percy Ponce assumed the Management of Metallurgical in January Projects and Business Development 2021; and Mr. Thiago Nantes the Technical Services Management in January 2021. Similarly, Mr. Gary Chircca was appointed Operations Management Manager and Mr. Alex Lobo assumed the management of the La Zanja and Coimolache units in January of this year. We wish all of them every success. Finally, on behalf of the Board of Directors of Compañía de Minas Buenaventura we would like to thank the Management, our shareholders, our suppliers, and all the company’s stakeholders, as well as offer a very special acknowledgement to the collaborators 17 History and long-term vision SILVER Acquisition of the Julcani mine in Huancavelica Founding of Buenaventura BVN listed on the a Stock Ex Lima Stock Exchange COPPER BVN acquires 11% of El Brocal. As of 2017, BVN holds 61% JV1: COPPER Privatization of Cerro Verde (with Cyprus) JV₃: (1994: 30K → 2017: 450-500K Cu MT) 15 x GOLD JV₄: La Zanja (1M oz/Au produced to date) Mn Rio Seco Inauguration of the chemical plant 1953 1971 1979 1994 2010 2013 1967 GOLD 1975 SILVER Orcopampa (1967: 75 → 2017: 1.5K TPD) 20x Uchucchacua (1975: 150 → 2017:~4K TDP) 25x 1993 GOLD First doré bar obtained at Yanacocha (Over 36M oz/Au produced to date) JV2: 1996 First Latin American mining company to be listed on the New York Stock Exchange 2011 GOLD JV₅: First doré bar obtained at Coimolache (1M oz/Au produced to date) 2014 Hydroelectric Plant: begins commercial operations (100 Huanza: MW) 68YEARS GOLD First doré bar obtained at Tambomayo 2016 GOVERNMENTS OF PERU 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 (2018-2020) MERINO (2020-2020) SAGASTI (2020-2021) 18 18 2020 ANNUAL REPORTHistory and long-term vision 68YEARS SILVER Acquisition of the Julcani mine in Huancavelica Founding of Buenaventura BVN listed on the Lima Stock Exchange a Stock Ex BVN acquires 11% of El Brocal. As of 2017, BVN COPPER holds 61% JV1: Privatization of Cerro Verde COPPER (with Cyprus) JV₃: (1994: 30K → 2017: 450-500K Cu MT) 15 x GOLD La Zanja (1M oz/Au produced to date) JV₄: Mn Rio Seco Inauguration of the chemical plant 1953 1971 1979 1994 2010 2013 GOLD First doré bar obtained at Tambomayo 2016 1967 GOLD Orcopampa 1975 SILVER Uchucchacua (1967: 75 → 2017: 1.5K TPD) 20x (1975: 150 → 2017:~4K TDP) 25x 1993 GOLD First doré bar obtained at Yanacocha (Over 36M oz/Au produced to date) JV2: 1996 First Latin American mining company to be listed on the New York Stock Exchange 2011 GOLD First doré bar obtained at Coimolache (1M oz/Au produced to date) JV₅: 2014 Huanza: Hydroelectric Plant: begins commercial operations (100 MW) GOVERNMENTS OF PERU 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 (2018-2020) MERINO (2020-2020) SAGASTI (2020-2021) 19 19 / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Corporate Culture T R O P E R L A U N N A 0 2 0 2 20 20 2020 ANNUAL REPORT 2121 Corporate Culture Vision › Develop mineral resources while creating the highest 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. T R O P E R L A U N N A 0 2 0 2 22 22 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Values › SAFETY Promote respect for our team members’ lives in all our processes, operations, and activities. › › › › › HONESTY Act in an upright and honest manner, never lying, deceiving, or omitting the truth. INDUSTRIOUSNESS Be passionate about 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, their culture, and rights. TRANSPARENCY Be truthful, clear, timely and unambiguous in all communications and actions. 23 Corporate Culture Sustainability SAFETY COMMUNITY RELATIONS ENVIRONMENT GOLD SILVER BASE METALS GOLD SILVER BASE METALS E U L A V Tambomayo Orcopampa Coimolache (JV) La Zanja (JV) Yanacocha (JV) › › › › › Uchucchacua Julcani › › El Brocal Cerro Verde › › San Gabriel › Yumpaq › Río Seco (Chemical plant) Yanacocha Sulfuros (JV) Coimolache Sulfuros (JV) Trapiche › › › › OPERATIONS PROJECTS T R O P E R L A U N N A 0 2 0 2 24 24 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Sustainability SAFETY COMMUNITY RELATIONS ENVIRONMENT GOLD SILVER GOLD SILVER BASE METALS BASE METALS E U L A V Tambomayo Orcopampa Coimolache (JV) La Zanja (JV) Yanacocha (JV) › › › › › Uchucchacua Julcani › › El Brocal Cerro Verde › › San Gabriel › Yumpaq › Río Seco (Chemical plant) Yanacocha Sulfuros (JV) Coimolache Sulfuros (JV) Trapiche › › › › OPERATIONS PROJECTS 25 25 / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Operations IN 2020, 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 UNITS (LA ZANJA, COIMOLACHE Y TAJO NORTE). T R O P E R L A U N N A 0 2 0 2 26 26 2020 ANNUAL REPORT 2727 Operations Tambomayo (100% BVN) The unit Is located in the province of Caylloma, in the Arequipa region. Tambomayo is an epithermal deposit with quartz veins and mineralization mainly of gold and silver with significant lead and zinc content. In 2020, due to COVID-19 health emergency, the plant reduced its operations from March 16 to April 29, restarting operations gradually towards the end of the year. A surveillance plan was established with prevention protocols that included the screening process for the entry, stay and exit of personnel with rapid and molecular tests. In addition, the work system was modified from 14 x 7 to 28 x 14, camp habitability was increased from 470 to 650 people, and 2 dining rooms and 2 locker rooms were built in addition to the main dining hall and the main locker room. In 2021, habitability will increase to 696 people, the work system will return to 14 x 7 and the screening process for workers will be updated with antigen and molecular tests. The main structure is the Mirtha vein, which runs NW-SE. At its SE end are the Paola and Paola Norte veins are being developed. These three veins account for 85% of the total mineral resources of this deposit. According to the consolidated net parts, in 2020, 510,405 DMT were processed with 5.10 g/t Au, 3.97 oz/t Ag, 1.45 % Pb and 1.92 % Zn, recovering 63,477 ounces of gold, 1’668.852 ounces of silver, 6.550 FMT of lead and 5.266 FMT of zinc. The metallurgical recovery achieved was 75.80% for Au and 82.39% for Ag, 88.30% for Pb and 53.62% for Zn. The average annual cash cost was US$941 per oz of Au. Mineral reserves as of December 31, 2020 are as follows: 2’338.910 DMT, with 0,107 oz/t gold (3.32 g/t), 4.08 oz/t silver, 1.00% lead and 1.50% zinc, which represent 249.427 ounces of gold, 9’545.803 ounces of silver, 23,462 MT of lead and 35,060 MT of zinc. The measured and indicated resources are 755,001 DMT with 0.10 oz/t gold (3.01 g/t), 4.24 oz/t silver, 0.95% lead and 1.48 % zinc, which represent 72,968 ounces of gold, 3’200,771 ounces of silver, 7,147 MT of lead and 11,161 MT of zinc. In the geology area, 119 meters of exploration works, and 27,456 meters of diamond drill holes were carried out. This program was aimed at completing the reconnaissance of known structures within the operation and at recategorizing and extending resources (infill drilling). Three targets 28 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN TAMBOMAYO WERE PROCESSED 63,477 OF GOLD IN 2020 OUNCES were primarily explored: Mirtha Este, Melissa, Gisela-Catalina, Carmen Norte and Profundización, the objective of which is to open new exploration fronts around the current area of operation between levels 4,540 and 4,340. In 2021 we will continue exploring these new areas. The mine area undertook 4.076 meters of mining work, of which 62 meters correspond to drilling and 4,014 meters to preparation. The Huaruro Irrigation Project, as part of the mining unit’s social commitment is the expansion and improvement of the Belen, Paclla, Cosñirhua, Malata and Tapay countryside in the district of Tapay over a 246-hectare area. In 2020, US$ 4.3 M were invested in this project for a 1.1-km water collection and delivery works. In addition, 2.2 km of pipes were installed, and the pipe-rack works was completed in the Fure area. 29 Operations Orcopampa (100% BVN) The Orcopampa Unit is located in the province of Castilla, in the region of Arequipa, at 3,800 m.a.s.l, 150 km NW of 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 and it contains a system of gold-bearing veins related to tellurides. In 2020, due to COVID-19 health emergency, the plant stopped its operations from March 16 to June 4, restarting operations gradually towards the end of the year. A surveillance plan was established with prevention protocols that included the screening process for the entry and exit of personnel with rapid and molecular tests. In addition, the work system was modified from 14x7 to 28x14, camp habitability increased from 492 to 580 people. Chipmo offices were modified to provide 95 beds and where 1 satellite dining room with a capacity for the 95 workers per shift was also implemented. By 2021, habitability will increase to 660 people, the work system will return to 14 x 7 and the screening process for workers will be updated with antigen and molecular tests. According to the consolidated net parts, in 2020 the plant processed 88,249 t of ore with a grade of 0.47 oz/t gold (14.6 g/t) and 0.13 oz/t silver, recovering 41,129 ounces of gold and 9,069 ounces of silver. The metallurgical recovery achieved was 96.41% for Au and 74.89% for Ag. The average annual cash cost was US$962 per oz of Au. 30 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN ORCOPAMPA WERE PROCESSED 41,129 OF GOLD IN 2020 OUNCES The measured and indicated mineral resources exclusive of the reserve report: 425,072 DMT with 0.30 oz/t gold (9.40 g/t Au) and 0.41 oz/t silver, which represent 128,479 ounces of gold and 175,700 ounces of silver. The measured and indicated mineral resources exclusive of the reserve report: 536,844 DMT with 0.34 oz/t gold (10.43 g/t Au) and 0.51 oz/t silver, which represent 180,080 ounces of gold and 273,790 ounces of silver. In the geology area, 1,300 meters of exploration works, and 15,532 meters of diamond drill holes were carried out, mainly focused on exploration drilling (11,975 m) and recategorization drilling (3,557 m) of the Pucará Sur veins, R4, Pucara Sur Piso, Pucarina, María Isabel 2, Ocoruro and Nazarene, between levels 3,690 and 3,540. In 2021, exploration works will be prioritized in the Pucara Sur (System R4), Pucarina Este and System N20°E sectors. The mine area undertook 2,643 meters of mining works, of which 64 meters were development works and 2,579 meters were preparation works. 31 Operations Compañía Minera Coimolache S.A. (40.095% BVN) Tantahuatay Buenaventura is the company responsible for 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 2020 and in light of the COVID-19 health emergency, mining at the Tantahuatay 2 pit and the transfer of ore from Gold Fields stopped on March 16, until May 12 and June 4, respectively, dates on which the operation began to resume gradually towards the end of the year. Mining operations at the Ciénaga Norte pit were postponed until August 18. A surveillance plan with prevention and control protocols was established, the work system changed from 9 x 5 to 28 x 14, and the capacity of camps, offices, vehicles, and dining rooms was reduced. Habitability in the camps increased from 1,150 to 1,550 people through the acquisition of 104 portacamps and the installation of partitions in 26 tents. Additionally, 1 dining room with a capacity for 72 workers per shift was implemented, as well as a cleaning team made up of 10 employees, and a disinfection team for the facilities. The personnel entry screening process was carried out with a rapid and molecular test, in addition to performing control tests every half-shift for the risk group. In 2021, the current version of the protocol will be updated, and the work system will return to 9 x 5; entry, stay and exit screenings for each shift will be carried out with antigen and molecular tests. Mining was performed in the Tantahuatay 2 and Ciénaga Norte pits, between levels 3,964 to 3,860 32 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN COIMOLACHE WERE PROCESSED 106,017 OF GOLD IN 2020 OUNCES and 3,924 to 3,860, respectively. A total of 12’043,702 DMT oxide ore were sent to the leach pads, with grades of 0,014 oz/t gold (0.43 g/t) and 0,485 oz/t silver (15.24 g/t), of which 1’254,956 DMT came from hauling Goldfields oxides. The production of fine metals amounts to 106,017 ounces of gold and 699,361 ounces of silver, of these recovered ounces of gold 344 oz correspond to re-leaching and 105,674 to run-of-mine ore. As of the close of 2020, there is ore remaining in the pad, counted as Inventory in Pad, totaling 1,907 ounces of gold and 78,997 ounces of silver. The average annual cash cost was US$ 854 per oz of Au. With regard to the oxide development plan, 100 m of a 700 m drill program has been implemented in the Tantahuatay 2 pit, with the purpose of categorizing inferred resources to measured/indicated. This program was delayed due to the pandemic. With regard to the Sulfides Project, the works were aimed at reinterpreting the geological model in the high copper-gold-grade zone, starting with resurveying 13,854 m to create an infill drilling program that allows better definition of the resource model. As of December 31, 2020, Tantahuatay’s proven and probable mineral reserves of oxides total 75’193,421 DMT with grades of 0,011 oz/t gold (0,330 g/t) and 0,231 oz/t silver (7,191 g/t), which represent 798.079 ounces of gold and 17’384,663 ounces of silver. This result includes 6 mineral deposits, two currently in production (Tantahuatay-2 and Ciénaga Norte) and the Mirador Norte, Mirador Sur, Tantahuatay 2 Extension Nor-Oeste and Tantahuatay 5 projects. The calculation of reserves in the deposits was based on an economic pit of 1,600 USD/Oz Au. The measured and indicated oxide mineral resources exclusive of reserves as of December 31, 2020 and within the economic cone of US$ 1.760/oz total, 15’507,313 DMT with 0.0080 oz/t gold (0,250 g/t), 0.3882 oz/t silver (12,073 g/t), which represent 124,468 ounces of gold and 6’019,395 ounces of silver. The extractions from the leach pads in 2020 were: Gold 64% and Silver 12%. The cumulative extractions from the leach pad from the start of operations through December 31, 2020 were: Gold 74% and Silver 17%. In December 2020, the construction of the 5-ha Leach Pad in Tantahuatay and the 1.8-ha leach pad in Ciénaga Norte were completed and are used to process ore from the Tantahuatay, Ciénaga and Mirador pits. In addition, 3 ponds (20,000.00 m³) and a concrete- lined collection channel (700 m) were built, and HDPE pipes (2.5 km) were installed, all part of Mirador pit’s contact water management. In addition, Pond 103 was expanded to 4.000 m³ for the management of DME CN effluents. As part of road infrastructure development, construction of the Haul Road Mirador (0.40km) was undertaken to aid in the development of the pit of the same name. 33 Operations Minera La Zanja SRL (53.06% BNV) Minera La Zanja SRL is a subsidiary of Buenaventura that operates the La Zanja Mine, located in the district of Pulán, in the province of Santa Cruz, 107 kilometers northwest of the city of Cajamarca. In 2020 and in light of the COVID-19 health emergency, mining at the San Pedro Sur and Pampa Verde pits stopped from March 17 to May 27, and again from August 12 to August 31 due to health controls, gradually restarting operations on September 1 towards the end of the year. A surveillance plan with prevention and control protocols was established to change the work system from 9 x 5 to 28 x 14, and the capacity of camps, offices, vehicles and dining rooms was reduced. Habitability in the camps increased from 496 to 616 people, with the construction of 7 igloos (with a capacity for 84 people) and by making other spaces habitable. The personnel entry screening process was carried out with a rapid and molecular test, in addition to performing control tests every half-shift for the risk group. In 2021 the current version of the protocol will be updated, and the work system will return to 9 x 5; entry, stay and exit screening for each shift is carried out with antigen and molecular tests. Operations focused on the San Pedro Verde and San Pedro Sur pits. 1’639.008 DMT of ore were sent to the leach pad from the Pampa Verde and San Pedro Sur pits with 0,012 oz/t gold (0,365 g/t) and 0,302 oz/t silver (9,407 g/t) on average, recovering 17,228 ounces of gold and 84,641 ounces of silver, and of the recovered ounces of gold 8,716 oz correspond to re- 34 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN LA ZANJA WERE PROCESSED 17,228 OF GOLD IN 2020 OUNCES leaching and 8,512 oz to run-of-mine ore. The average annual cash cost was US$941 per oz of Au. Since the operation began at La Zanja in 2010, a total of 1’099.544 ounces of gold and 2’832.484 ounces of silver have been produced. The mineral reserves of the open pits total 5’196,635 DMT with 0.012 oz/t gold (0.127 oz/t) and 0.127 oz/t (3.945 g/t silver which represent 64,596 ounces of gold and 659,093 ounces of silver. In addition, 1,175 ounces of recoverable gold and 33,133 ounces of silver remain in inventory at Pads and at the Plant. The measured and indicated oxides mineral resources exclusive of reserves as of December 31, 2020 and within the economic cone of US$ 1.760/oz total, 9’116,578 DMT with 0.0132 oz/t gold (0,411 g/t), 0.2891 oz/t silver (8,992 g/t), which represent 120,435 ounces of gold and 2,635,693 ounces of silver. In 2020, the exploration area drilled a total of 70 diamond drill holes, of which 16,771 m were drilled in the Corredor Emperatiriz – Sector Emperatriz Sur project. 35 Operations Uchucchacua (100% BVN) The Uchucchacua unit is located in Oyón district, in the 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 2020, in the light of the COVID-19 health emergency, the concentrator stopped operations on March 16, gradually resuming operations in May and June, and stopping again in July. In August, operations resumed gradually and finally, since September 5, operations have been carried out continuously, aiming at restoring the levels of preparation, development, and infill exploration within mine. A surveillance plan with prevention protocols was established where the work system changed from 14 x 7 to 30 x 15. Also, a maintenance campaign was carried out on the lodging modules to guarantee 1,324 beds which were increased by 120 to a total of 1,444 beds. Operational controls were implemented to mitigate Installation of thermal COVID-19 transmission: imaging cameras, hand basins with pedal systems, infographics related to COVID-19 control, foot baths and alcohol gel dispensers, physical barriers on tables and in the dining room service line, and use of buses at 50% capacity. In addition, a company specialized in disinfection was hired for the facilities. When operations restarted, the screening process for the entry and exit of personnel included rapid tests in the first stage (May-2020), and in the second stage (June-2020) the molecular test was added. In 2021 the surveillance plan will be updated, the work system will return to 14 x 7, and the entry and exit screenings of workers will be carried out with antigen and molecular tests. In 2020, 550,718 DMT were treated, with 10.10 oz/t silver, 1.03% of lead, and 1.56% of zinc, with the ore coming from the Socorro, Carmen, and Casualidad Mines, obtaining 5,000.312 ounces of silver, 5.151 FMT of lead, and 5,223 FMT of zinc. The average annual cash cost in 2020 was US$22.24 per oz of Au. Uchucchacua’s mineral reserves, including the Yumpaq Project, as of December 31, 2020, totaled 7’616,848 DMT, with 9.67 oz/t of silver, 1.11% of lead, 1.93% zinc, and 6.75% of manganese, which represent 73’661,978 ounces of silver, 84,846 MT of lead, and 146,946 MT of zinc. Within this total, the Yumpaq Project accounts for 1’132,996 DMT, with 19.35 oz/t silver, 0.43% of 36 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN UCHUCCHACUA WERE PROCESSED 5’000,312 OF SILVER IN 2020 OUNCES 37 Operations Uchucchacua (100% BVN) lead, 0.76% of zinc, and 15.51% of manganese, which represent 22,088.630 ounces of silver, 4,856 MT of lead, and 8,584 MT of zinc. The report on measured and indicated resources exclusive of reserves of the Uchucchacua Unit and the Yumpaq Project are 2’334,609 DMT with 9.79 oz/t silver, 1.20% lead, 2.06% zinc and 9.08% manganese, which represent 22,865,461 oz of silver, 28,041 MT of lead and 48,162 MT of zinc. Progress in exploration undertaken included 1,753 meters of mining works and 30,172 meters of diamond drill holes, focused primarily on the Socorro, Cachipampa, Carmen, and Casualidad sectors, of which 22,498 meters correspond to infill drilling, and 7,674 to explorations. In 2021, exploration works will be prioritized toward the projection of silver mineralized bodies with economic values between levels 4,550 and 4,120, and which are associated with the favorable horizons of the eastern flank of the Cachipampa anticline. Diamond drilling will be carried out toward the Nora and Sandra veins considered in the long-term exploration works, with the aim of generating inferred and potential resources; Also, for medium- and short-term exploration works, diamond drilling will be carried out toward Irma Viviana veins 2.3,4, Socorro 2, Geraldine, Karen, Rosalía, Gina Socorro, Lilia, Marisol, Ramal Nora, Liliana, Deissy, Lesly, Rosa and Rita which will allow to generate measured, indicated and inferred resources. 38 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY The mine area undertook 14,685 meters of horizontal and vertical mining works (14,472m and 213m), distributed in the following stages: 618 meters of development works, 11,884 meters of preparation works, 1,753 meters of exploration works and 217 meters of infrastructure works. At the Uchucchacua processing plant, flotation stage Circuit II was set up to process high-grade silver ore. In February 2020, the prior consultation process for the components began (73 diamond drilling platforms, 1 vent, a 6.3-km access, Ramp 4490, and the pampa Salera camp) approved in the 2nd amendment to the EIAsd of the Yumpaq Carama project, before the General Office of Social Management (OGGS) of the Ministry of Energy Mines. On November 10, 2020, the 3rd amendment to the EIAsd of the Yumpaq Carama project (Yumpaq-Uchucchacua physical integration, power transmission line from Uchucchacua to Yumpaq, pilot pit, underground works, camps and deposits) was submitted to the General Office of Mining Environmental Affairs (DGAM) of the Ministry of Energy and Mines (MEM). It is expected to be approved during the second quarter of 2021. 39 Operations 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 2020, due to COVID-19 health emergency, the its operations from concentrator plant stopped March 16 to June 5, restarting operations gradually towards the end of the year. A surveillance plan with prevention protocols was established and the work system changed from 6 x 1 to 28 x 14. Habitability in camps in Julcani increased from 150 to 746 people within the industrial zone. Also implemented were 2 dining rooms with a capacity for 300 workers per shift as well as a cleaning team of 15 employees, and a disinfection team for the facilities. The screening process for staff entry is performed with rapid and molecular testing. In 2021 we will update the surveillance plan and return to the 14 x 7 work system, and the entry and exit screenings of workers will be carried out with antigen and molecular tests. In 2020, 71,943 t of ore from the Acchilla mine were processed, with a head grade of 22.67 oz/t silver, 0,068 g/t of gold, 0.63% of lead, and 0.18% of copper, recovering 1’579,918.6 ounces of silver, 68.4 ounces of gold, 407.9 MT of lead and 127.47 MT of copper. The average annual cash cost in 2020 was US$22.24 per oz of Au. In addition, in 2020, tailings from Tailings Dams 1-5 were processed, recovering 96,812 ounces of silver and 247 ounces of gold. Mineral reserves as of December 31, 2020 between the Acchilla and Estela mines totaled 269,310 t with 20.93 oz/t silver and 1.86% lead; which represent 5’635.985 fine oz of silver, 1,859 oz of gold, 5,001 MT of lead and 1,205 MT of copper; of these total reserves, 77% belong to the Acchilla Mine and the remaining 23% to the Estela Mine. Mineral resources exclusive of reserves total 92,075 t with 21.78 oz/t silver, 1.29% lead, which represent 2’005,837 ounces of silver and 1,189 MT of lead. In 2020, at the Acchilla Mine, a total of 4,042 m of underground mining works and 16,130 m of diamond drill holes were executed. The new ore found totaled 52,596 t with 21.94 oz/t silver, 0.92% lead (1’154,196 ounces of silver), with a volume calculation ratio of 13.0 t/m of advance. The veins that contribute the new mineral are Porvenir, Leyci, Josmery, Yanela, Melisa R, Acchilla 7B Ramal, Jesús R 2B, Romina, Sta. Fe Techo 1. The mine area also undertook 3,614 meters of mining works, of which 425 meters correspond 40 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN JULCANI WERE PROCESSED 1’676,731 OF SILVER IN 2020 OUNCES to development works and 3,189 meters to mine preparation works By 2021, at the Acchilla mine, exploration works will be oriented towards the Melissa and Porvenir vein sectors between levels 510 and 710. Exploration works towards the SE to the Acchilla 7B R vein system between levels 610 and 710 are still pending, in addition to the search for veins with Ag and Au content in the SW sector of the Acchilla mine within the Yanela vein area and 28 between levels 560 and 660. These exploration works are expected to confirm in 2021, 200,000t of reserves and new resources between exploration works (8,400m) and with diamond drilling. (24,000m). In addition, exploration works north of the Estela mine were restarted in Nv610, with the aim of evaluating and defining the structural continuity of the Angie and Belén veins, as well as other branches of the same system with Pb and Ag content to increase the Unit’s resources. The processing plant started processing tailings at the industrial level in July 2020 with an average treatment of 400 TPD, increasing in December to 500 TPD. 41 Operations Sociedad Minera el Brocal S.A.A. (61.43% BVN) Minera Sociedad 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 minerals from the Tajo Norte open pit mine, and copper ore from the Marcapunta Norte underground mine. Ore from both zones are processed in Concentrator Plants 1 and 2 at Huaraucaca. In 2020, in response to the COVID-19 health emergency, the concentrator plant stopped operations from March 16 to June 3, where Plant 1 stopped for 77 days and Plant 2 for 78 days. Operations resumed gradually towards the end of the year. A surveillance plan was established with prevention protocols where the atypical 30 x 15 work system was changed. We increased habitability within the industrial zone of Huaraucaca, having up to 368 beds available which were distributed among the different shifts. We are also in the process of implementing a kitchen adjacent to the dining room within the industrial zone. Furthermore, in February we should complete the installation of 420 beds in Marcapunta Sur near the access to the underground mine with all habitability conditions, this in addition to building a full dining room which 42 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN BROCAL WERE PROCESSED 54,909 OF ZINC IN 2020 OUNCES should be completed in the second quarter of this year. The screening process for staff entry is performed with rapid and molecular testing. In 2021 we will update the surveillance plan, return to the 14 x 7 y work system, and the entry and exit screenings of workers will be carried out with Antigen and Molecular tests. In 2020, 2’782.313 DMT of lead and zinc ore from Tajo Norte were processed, recovering 2’520.528 ounces of silver, 20.066 MT of lead and 54,909 MT of zinc. In addition, 91,477 DMT of copper ore from Tajo Norte were processed recovering 175,556 ounces of silver, 36 ounces of gold and 570 tons of copper. Likewise, 1’659.731 DMT of copper ore (Marcapunta Norte) were processed, recovering 812,501 ounces of silver, 11,816 ounces of gold and 30,608 MT of copper. In 2020, the operation reached a total processing volume of 4,533.521 DMT which represent an average daily processing volume of 16,147 DMT. The cumulative fine production in 2020 amounted to 3’508.585 ounces of silver, 11,852 ounces of gold, 20,066 MT of lead, 54, 909 MT of zinc and 30,608 MT of copper, contained in the 3 concentrates produced. The average annual cash cost in 2020 was US$ 5,135/MT Cu and US$ 1,923/MT Zn. 43 Operations Sociedad Minera el Brocal S.A.A. (61.43% BVN) The proven-probable mineral reserves as of December 31, 2020 for the Tajo Norte - Smelter (Cu- AG) are 31,759.551 DMT, with 0.8 oz/t silver, and 1.48 % Cu, which represent 25,352.124 ounces of silver and 468,659 MT of copper. The proven-probable mineral reserves as of December 312020 for Tajo Norte (Zn-Pb-Ag zone) are 9,840.358 DMT, with 2.15% Zn, 1.00% Pb and 2.76 oz/t Silver, which represent 211,394 MT of Zinc, 97,918 MT of Lead and 27’6,315 ounces of Silver. The proven-probable mineral reserves as of December 31, 2020 for Marcapunta Norte are 30,529.941 DMT, with 0.021 oz/t gold, 1.29% copper, 1.04 oz/t silver, which represent 654,523 oz of gold, 392,951 MT of copper, and 31,650.860 ounces of silver. The measured-indicated exclusive resources as of December 31, 2020 for the Tajo Norte - Smelter Cu-Ag) are 1’061,041 DMT, with 0.7 oz/t silver, and 1.40% Cu, which represent 742,325 ounces of silver and 10,700 MT of copper. The measured-indicated exclusive resources for the Tajo Norte - Smelter (Zn – Pb- Ag) are 5’587,692 DMT, with 3.17% Zn, 0.97% Pb and 0.74 oz/t silver, which represent 177,371 MT of zinc, 54,282 MT of lead and 4’114,373 ounces of silver. 44 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN BROCAL WERE PROCESSED 30,608 OF COPPER IN 2020 TMS sequence of the northern wall. The instability was constantly monitored with a radar allowing actions to be taken in the face of potential harm to personnel and damage to equipment. At the concentrator plants, resources were directed to critical equipment. Over 1,200 Maintenance Plans were implemented, spare parts lead time was improved, and major equipment was re-powered; and at Plant 1 the Dominium mill was put into operation on February 15, stabilizing production on February 27. In addition, the 7’x12’ N°4 mill was replaced; and in plant 2, 2.4 km of belt were changed in Overland 2b and 600m in Overland 3; the HPGR rollers were changed, the cracks of the washing drum were repaired and 3 10’ x 8’ pumps were installed on train 6 for pumping tailings, which contributed to the availability of the plants, contributing to increasing plant availability by 3%. The measured-indicated exclusive resources for Marcapunta Norte are 21’581,865 DMT, with 0.026 oz/t gold, 1.41% of copper, 0.93 oz/t silver, which represent 551,265 ounces of gold, 302,146 MT of copper and 20’105,318 ounces of silver. In 2020, 22,816 m of diamond drill holes were undertaken on the surface and within the mine. Of these, 73% (16,662 m) was performed in the areas of Marcapunta Norte, Marcapunta SW and Marcapunta SE (underground), with the purpose of recategorizing measured, indicated and inferred resources to Cu-Ag-Au ore reserves, with positive results with the increase of Cu-Au values. In addition, 25% of this length corresponds to drilling in the Tajo Norte with the aim of recategorizing measured, indicated and inferred resources to mineral reserves of Zn, Pb, Ag and Cu. Another 352 m were undertaken in 2 boreholes in Marcapunta Sur for geo-metallurgical studies of mixed copper ore. Laboratory tests are in the process of being analyzed, which will help increase our resources. In Marcapunta Norte, an underground mine, 2,327.5 meters of development mining works and 6,896.8 meters of preparation works were performed, which add up to 9,224.3 meters. In 2020, the instability of the northern slope in the open pit caused minimal delays in the mining 45 Operations Minera Yanacocha S.R.L. (43.65% BVN) Yanacocha is a mining district with several volcanic events that have generated gold surface oxide deposits underlying deposits of copper sulphides with arsenic. It is located 54 km north of the city of Cajamarca and is operated by Newmont Mining. Yanacocha has produced approximately 38.6 M oz of Au since 1993 to date. Gold production in 2020 totaled to 340 thousand ounces versus the 527 thousand ounces produced in 2019. Silver production came to 2.140 million ounces versus the 0.737 million ounces produced in 2019. In 2020, the Gold Mill processed 4.068 million dry metric tons of ore, with an average grade of 1.14 grams per ton and a gold recovery of 65.7%, obtaining a gold production of 100 thousand ounces compared to the 229 thousand ounces in 2019. The ore discharged in the leach heap pads in 2020 totaled 15.3 million dry metric tons, lower than that in 2019, which totaled 31.5 million tons. This is mainly due to the lower extraction of ore at Tapado Oeste Layback and La Quinua Sur, with gold production totaling 240 thousand ounces, compared to the 298 thousand ounces in 2019. Minera Yanacocha’s proven and probable reserves as of December 31, 2020 total 6.6 million ounces of gold, 97.3 million ounces of silver and 0.70 million MT of copper. As of 31 December 2020, resources amounted to 8.2 million ounces of gold, 60.9 million ounces of silver and 0.52 million MT of copper. Yanacocha’s CAPEX in 2020 came to US$ 41 million, with the main capital expenditures being the Quecher Main Project ($25.7M), the EWTP LQ Upgrade Project ($2.5M), the Water Treatment Phase II Project ($2.6M), the Quecher Main 2 Project (US$ 0.8 M), the KM 52 Camp Expansion Project (US$ 4.8m), which serves to ensure isolation and health protocols to prevent COVID-19 infections, the Carachugo 14 Improvement Project ($ 0.4m) and the Yanacocha Shield Project ($4.2M). Mine closure expenditures totaled US$ 23.2M. Quecher Main is the project that continues Yanacocha’s operations, contributing 1.3 million ounces of gold; its operations are scheduled through 2027. The EWTP LQ Plant Upgrade Project was completed in June 2020. Quecher Main was able to complete the construction of 13.2 ha leach pad in December 2020. By 2021, Sustainable Capital Projects has approved a capitalizable budget of US$ 43.3M that considers mainly the construction of 13.6 ha heap leach pad in Carachugo 14, the Water Treatment Phase II Project, the Quecher Main 2 Project, the Carachugo 14 Improvement Project, and the Yanacocha Shield Project. Mine closure has a budget of US$ 93.4M for 2021. The Yanacocha Sulphides Project is located within the current area of operation and consists of processing sulfide minerals for copper and gold 46 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN YANACOCHA WERE PROCESSED 340,052 OF GOLD IN 2020 OUNCES 4747 Operations Minera Yanacocha S.R.L. (43.65% BVN) production, which would extend the life of the mine until 2041. Due to the health measures issued by our authorities for the protection against of COVID-19, any works requiring anyone to be in the field, such as geotechnical drilling, were temporarily paralyzed and progressively resumed according to the reactivation plans, and eventually completed in September 2020. The Definitive Feasibility study was developed remotely and is expected to be completed in 2021 to make any investment decisions. The Second Amendment to the Yanacocha Environmental Impact Assessment was approved in December 2020. As part of the activities of the Definitive Feasibility Phase of the project, the stope tests have been planned in the Southern Zone of Chaquicocha Underground which will allow to validate the mining method, productivity, geotechnical conditions, and the development of exploration platforms. Because of restrictions due to COVID-19, works at Chaquicocha Underground stopped, though care and maintenance work continued. Additionally, diamond drilling was carried out at Chaquicocha Underground advancing a total of 5.548 m. In 2020, Yanacocha continued to strengthen the conditions for the continuity of its operations and the viability of the Sulphides project, taking into account the health emergency due to the COVID-19 pandemic. In 2020, Minera Yanacocha continued to 48 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY THE DEFINITIVE FEASIBILITY STUDY WAS DEVELOPED REMOTELY AND IS EXPECTED TO BE COMPLETED IN 2021 TO MAKE ANY INVESTMENT DECISIONS maintain its Environmental Management System certified by the ISO 14001:2015 standard focused on the process of continuous improvement. It also maintained its Environmental Monitoring Laboratory accredited by the ISO 17025 standard, and its control over process activities certified by the International Cyanide Management Code. The improvements were focused on reducing water use in its operations, evaluating alternatives for operational improvements in processes, mainly in those associated with water treatment, and on understanding – with the help of the National Center for Atmospheric Research (NCAR – USA) – projections of climate behavior in the coming years and from there work on plans to reduce greenhouse gas emissions and processes to adapt to climate change. 49 Operations 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 Arequipa in the Uchumayo and Yarabamba districts. In 2020, 121.4 million DMT were processed by flotation which compares unfavorably with the 143.5 million DMT processed in 2019, with a head grade of 0,343% copper, producing 1,601 thousand DMT of copper concentrates with an average grade of 21.89% copper and a recovery of 84.3%. A total of 737,614 thousand pounds of copper (334,576 tons), 18,903 thousand pounds of molybdenum (8,574 tons) and 3.38 million ounces of silver contained in the concentrates were produced. In addition, 82.49 million pounds of copper cathode (37,415 tons) were produced. The cash cost was US$ 1,646 per pound of copper and the total cost was US$ 2,100 per pound of copper produced. Mineral reserves for grinding as of December 31, 2020 are as follows: 4’002,281,000 DMT, with 0.36% Cu, 0.014% molybdenum, 0.062 oz/t silver, which represent 12,572 thousand tons of copper, 312 thousand tons of molybdenum, 111,370 thousand ounces of silver. Leachable reserves as of December 31, 2020 are as follows: 75’199,000 DMT, with 0.29% Cu, which represent 148,000 tons of copper. In 2020, sales reached US$ 2,539 million, with a net profit of US$ 274.5 million. Long-term debt fell from US$ 826 million to US$ 523 million. Investment reached US$ 179.0 million in capital projects compared to the US$ 283.5 million invested in 2019. Cerro Verde has been in dispute since 2009 with the tax authority over the collection of royalties corresponding to December 2006 and subsequent periods up to December 31, 2013. Cerro Verde has been paying mining royalty installments for the periods corresponding to January 2009 to September 2011 and for the years 2012 and 2013 and the special tax on mining for the October 2011 to December 2013 period. There are currently no other periods in dispute with the tax authority. Cerro Verde believes that it is not subject to these payments in accordance with the stability agreement signed in 1998 with the Peruvian government. In February 2020, Cerro Verde requested an arbitration proceeding before the International Center for Settlement of Investment Disputes (ICSID). Coronavirus COVID-19 outbreak in Peru On March 15, 2020, the Peruvian government issued an Executive Order and a National Emergency Declaration in its efforts to contain the COVID-19 outbreak, first for 15 days which 50 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY EN CERRO VERDE SE PRODUJERON EN TOTAL 820 MILLIONS DE LIBRAS DE COBRE EN EL 2020 51 51 Operations Sociedad Minera Cerro Verde S.A.A. (19.58% BVN) later extended for different periods until January 31, 2021. To meet government requirements, Cerro Verde temporarily transitioned to a state of care and maintenance and adjusted its operations to prioritize critical activities. Cerro Verde reactivated its operations in the second quarter after the Peruvian government lifted the restrictions imposed in March 2020 given the COVID-19 pandemic. On May 4, the Peruvian government updated its state of emergency authorizing the first phase aimed at restarting economic activities to allow large-scale mining operations to progressively increase theirs. In mid-May, the Peruvian government approved the Workplace Plan for COVID-19 Surveillance, Prevention and Control submitted by Cerro Verde, which establishes guidelines for the surveillance, prevention and control of the health of workers with risk of exposure to the virus. The implementation of these prevention, early detection and response measures and actions is aimed at controlling the risk of spread and health impact caused by the COVID-19 pandemic during the development of operational activities, aiming at protecting the health of workers and contractors, as well as allowing the gradual resumption of normal operations. Because of the significant negative impacts of the COVID-19 pandemic on the global economy, Cerro Verde has evaluated its short-term operational plans with a focus on maximizing cash flow and in a weak and uncertain protecting liquidity 52 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY economic environment and preserve asset values for improved copper prices in advance as economic conditions recover. The revised mine plans point to lower costs, deferment of non-essential projects and the preservation of long-term value of long-lasting resources. Cerro Verde continued to move toward the restoration of operations during the third and fourth quarters of 2020. The Company continues to closely monitor health and market conditions and will make adjustments to its mine plans as needed. The costs of idle capacity associated with temporary closure and costs related to the impact of the COVID-19 pandemic during 2020 amounted to US$ 95.7 million. 53 PROJECTS The health and political crisis in the country also affected the development of our projects. While the majority of the works in 2020 were mostly clerical, the mandatory social isolation and the constant changes of government impacted the development of some minor field works, and particularly the obtaining of permits requiring liaison with neighboring communities. I. Projects at feasibility stage 1 SAN GABRIEL PROJECT (100% BVN) The San Gabriel Project is an epithermal intermediate sulphidation deposit with gold contents, and lower copper and silver values, located in the province of General Sánchez Cerro, in the Moquegua region. 54 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN SAN GABRIEL, THE FEASIBILITY STUDY WAS COMPLETED, CONFIRMING AND UNDERGROUND MINING OPERATION METHOD AT A 3,000 tpd During 2020, the feasibility study was completed with Ausenco – Agnitia companies, confirming an underground mining operation using the ODF (Overhead Drift and Fill) method at a 3000 TPD rate, processed in a scalable gravimetry-CIL-ADR plant for the production of Doré bars and based on the use of filtered tailings. Towards the third quarter of 2020, the procedure to obtain the Benefit Concession for the first quarter of 2021 was started. Unfortunately, social isolation measures and constant authority changes impacted the normal implementation of the Prior Consultation process. Only confirmatory engineering field works were performed, so reserves are maintained as follows: Reserves: 11.6 mt with 4.68 g/t Au, representing 1.7 Moz Au. (Ministry of Energy In 2021, MINEM and Mining) will continue with the Prior Consultation process and, at the same time, progress will be made with detail engineering and the selection of the teams and contractors in order to speed up the start of the project construction by the second semester of 2021, avoiding delays. 2 RIO SECO INDUSTRIAL PLANT CU-AS (100% BVN) The Rio Seco Industrial Plant project consists of a hydrometallurgical process to leach Cu- As concentrates from El Brocal unit, which allows for the extraction of copper cathodes, a high-grade Au/Ag and As residue in the stable form of scorodite crystals. During 2020, the research stage was successfully completed with the audit of the new process by Samuels Engineering; the feasibility studies for a 40 k tpa copper- cathode plant were completed, achieving the expected results; the EIA file was admitted; and the regional improvement plan and subsequent zoning change for the future plant were obtained. The improvement of commercial terms in the complex copper concentrates market, and a substantial increase in installed capacity for concentrate blending compete with the project’s profitability. The 2021 work plan will aim at obtaining environmental permits and completing the issue of the feasibility study for future implementation. 55 Proyects IN THE TRAPICHE PROJECT THE REVISED PRE-FEASIBILITY STUDY CONFIRMS AN OPEN-PIT MINING OPERATION AT 45k tpd PROCESSED AT A CRUSHING PLANT-LEACHING PAD-SX/EW II. Projects at pre-feasibility stage Resources: 540 mt with 0.31% Cu, representing 1.7 mt Cu (floatable). 1 TRAPICHE PROJECT (EL MOLLE VERDE S.A.C. - 100% BVN) The Trapiche Project is an oligocene porphyry copper-molybdenum deposit located on the southwest bank of the Andahuaylas-Yauri belt, Antabamba province, Apurimac region. During 2020, social isolation measures prevented the execution of in-situ column tests and delayed environmental baseline work and, hence, the admission of the EIA. However, it was possible to explore a new configuration of components aimed at maximizing the present net value of the project with excellent results along with M3/Mining Plus/KCB. The revised pre-feasibility study confirms an open-pit mining operation at 45,000 TPD, processed at a crushing plant-leaching pad-SX/EW for the production of copper cathodes. No additional work was done to increase resources, so the balance is maintained at: Reserves: 283.2 mt with 0.51% Cu, representing 1.4 mt Cu (leachable) In 2021, in-situ column tests will be resumed and the EIA will be updated for admission in the first quarter of the year, in parallel with the Prior Consultation processes, with a view to supporting the start of the feasibility study in 2022. III. Projects at scoping stage 1 COIMOLACHE SULFIDES PROJECT (COMPAÑÍA MINERA COIMOLACHE S.A. - 40.95% BVN) The Coimolache Sulphides Project consists of a flotation plant for the treatment of copper sulphides lying under the Coimolache gold mineral that is currently being exploited. During 2020, the conceptual study was updated and a favorable business case for an open pit operation and a 60k-TPD flotation plant with thickened tailings deposition was confirmed. The inferred- resource model continues without variations in: 56 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY 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 Moz Au. social and land-acquisition strategy, as well as an additional diamond drilling campaign to provide greater certainty regarding the mineral resources. In 2021, preliminary works will begin to support the start of the pre-feasibility study with a view to completing it in 2022. These works include the 57 OTHER BUSINESSES Consorcio Energético de Huancavelica S.A. - CONENHUA (100% BVN) This company was founded 38 years ago. During 2020, they sold their last regulated line (systems the remuneration of which is fixed by Osinergmin) and the concession changed its ownership in September, 2020. Its COES registration number is L-6644: Additionally, CONENHUA continues to operate and maintain the secondary transmission lines and their respective substations, which provide energy to Buenaventura’s mining and industrial operations, both in high and medium voltage. Said mining operations are: La Zanja, Coimolache, Uchucchacua, Procesadora Industrial Río Seco, El Brocal, Julcani and Tambomayo. The performance of all the aforementioned lines has been as per the following table: System Voltage (kV) Voltage (kV Location Voltage levels External Failure (Hours) Internal Failure (Hours) Maintenance (Hours) Total (Hours) Line from Ingenio substation to Caudalosa substation 60 52 Huancavelica 33 kV 60 kV 0.5 0.0 0.0 0.0 10.67 11.2 9.4 9.4 138 kV 5.87 12.98 17.57 36.42 Total 6.37 12.98 37.64 57.02 58 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY THE NEXT RESULT AFTER INCOME TAX OF US$ 29.85 IN 2020 MILLIONS In 2020, COES approved the Pre-operation Study of the project called “220 kV Transmission Line from the Cotaruse Substation to the Trapiche Substation”, commissioned by El Molle Verde S.A. (EMV). In 2020, COES also approved the Pre-operation Study of the project called “220 kV Transmission Line from the Chilota Substation to the San Gabriel Substation”, commissioned by Compañía de Minas Buenaventura S.A.A. The progress regarding environmental permits and easement managements was not as planned due to the health restrictions related to COVID-19. During this period, CONENHUA was awarded the Pre-Feasibility and Feasibility Studies of the “220kV Transmission Line of the Ishcayucro Diversion to the Raurapata Substation” Project, commissioned by Compañía Minera Raura for its project of mining expansion to 6000 TPD. As for the hydroelectric power plants, Empresa de Generación Huanza has continued to improve its electromechanical facilities and equipment, obtaining a group availability of more than 93% and generating 425.709 GWh. The Huanza Hydroelectric Project has arranged and obtained the 2020 Renewable Energy Certification issued by Spanish certifier AENOR Internacional. The Huanza Control Room has also been replicated in the Buenaventura Lima offices, from where the hydroelectric plant has been operated since December 2020. Throughout the year, the small Huapa and Ingenio hydroelectric power plants have generated a total of 9.521 GWh to the benefit of the operations of the Buenaventura Julcani mine. The Huanza Generation Company has completed the Feasibility Study of a photovoltaic power generation plant in the vicinity of the San Gabriel Project until 20MW. The economic outturn of Consorcio Energético Huancavelica, in consolidated terms, has reported a total operating income of US$ 59.69 M, an operating profit of US$ 36.20 M, and a net income after income tax of US$ 29.85 M. 59 Other Businesses DURING 2020 THE ACID WASHING PLANT TREATED 14, 963 TMS OF CONCENTRATE Procesadora Industrial Río Seco S.A. (100% BVN) Procesadora Industrial Rio Seco (Rio Seco Industrial Processing Plant) is a Peruvian company dedicated to the production of manganese sulphate from lead-silver-manganese the Uchucchacua Unit. It is located in Huaral, 102 kilometers North of the city of Lima. concentrates of During 2020 the acid washing plant treated 14,963.3 DMT of concentrate from the Uchucchacua Unit, the grades being 57.4 oz/t of silver, 7.4% of lead and 22.9% of manganese. As a result of the acid washing operations, a concentrate with a higher silver grade and a lower manganese content is obtained. The following table shows the results before and after washing: The Sulphuric Acid Plant produced 10,546 mt of sulfuric acid with a purity of 98%. This Plant uses WSA (Wet Sulphuric Acid) technology, which is clean and ecofriendly. 61.5% of the acid was produced from elemental sulphur, and 38.5% was produced from acid gas coming from the Acid Washing Plant. The Crystallization Plant produced 11.765 MT of Manganese Sulfate Monohydrate with two dryers. The distribution of production per dryer is shown in the following table: Manganese Sulphate Monohydrate TM 4,163 7,602 11,765 Concentrate Uchucchacua Concentrate Rio Seco Concentrate DMT Ag Oz/TMS 14,963.3 57.4 Pb % 7.4 Mn % 22.9 Spray Dryer Spin Flash Dryer 8,844.1 96.3 12.4 2.8 Total 60 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY One of the main projects is the Rio Seco Copper Plant, which is in the final stage of the feasibility study and in the process of obtaining the EIA. Rio Seco works with the highest environmental safety standards, continuously coordinating with the communities of Huaral and Sayán, the Lachay National Reserve, the Municipality of Huaral and the Municipality of Chancay, with which the participatory environmental monitoring program is carried out in the area. 61 SAFETY “ DURING 2020 THERE WERE NO FATAL ACCIDENTS IN OUR UNITS. At Buenaventura, we consider SAFETY to be an inherent part of any process and not something separate; in this sense, safety management is the responsibility of the operating officer in charge of the respective process, this being part of the quality indicators and a cross-cutting value throughout the company. During 2020, the Accident Rate was reduced to 0.16, 90% less than in 2019 (1.64). One of the factors contributing to this reduction has been the decline in high-risk works between March and June due to the COVID-19 pandemic. It is important to mention that there were no fatal accidents in the units compared to the 02 accidents of that type occurred in 2019. These results require us to continue to make efforts and to allocate resources to achieve sustainability of results based on the Critical Risk Management (operating controls) approach and the Pact for Life (change in beliefs). Our main activities were as follows: T R O P E R L A U N N A 0 2 0 2 62 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY THE ACCIDENT RATE WAS REDUCED TO 90% LESS THAN IN 2019 › › › Approach to Unions through awareness sessions called “An Alliance for Life: Together We Achieve Sustainable Results.” Reinforcement of BNV collaborators and contractors through the activities of the “A Pact for Life” program, related to personal commitment. › › Involvement of supervisors, workers and unions through the Participatory Safety Approach. Improvement in the efficiency of corrective actions through the prioritization of engineering- type operational controls and the application of the ICAM methodology for accident investigation. Deployment of the “Critical Risk Management” initiative, focused on the prevention of fatal and permanently disabling accidents. We continue to work in order to achieve a Safety Culture that involves all the collaborators of the Buenaventura family. 63 63 / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY ENVIRONMENTAL MANAGEMENT THE COMPANY CONTINUED TO PERFORM ITS ACTIVITIES IN THE MIDST OF THE HEALTH EMERGENCY BY COVID-19, ORIENTING ITS INTERVENTIONS TO THE ACHIEVEMENT OF THE ENVIRONMENTAL SUSTAINABILITY OF ITS OPERATIONS. L A U N A A R O M E M I 0 2 0 2 64 64 2020 ANNUAL REPORT ENVIRONMENTAL MANAGEMENT 65 65 Environmental Management Its performance was based on an adequate and mainly- preventive monitoring and operational control to minimize the impacts on the environment and to achieve an adequate management of the water resources by controlling their quality, and strengthening the reuse and recirculation of water in our processes. Similarly, we have focused on the importance of reducing the disposal of sterile material and waste via recycling and the execution of mine closure work, priority being given to progressive closure. Throughout the year, 40 environmental instruments were arranged, of which 09 were approved, 23 are still under evaluation and 08 are under development. Important Detailed Environmental Impact Assessments (DEIA) ––such as for the Trapiche, Rio Seco Cobre and Yumpaq projects–– are being arranged, and, due to health restrictions, alternative mechanisms of citizen participation through radio and multimedia communication In strategies were successfully implemented. 66 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY THE RATE OF RECIRCULATION IN OPEN-PIT OPERATIONS REACHED 93% AND ABOUT IN UNDERGROUND OPERATIONS 50% addition, amendments to the Environmental Impact Assessments of Colquijirca, Julcani, Tambomayo and Tantahuatay of Compañía Minera Coimolache were promoted. In the case of the San Gabriel Project, the DEIA of which had been approved, the coordination aimed at obtaining the benefit concession and the construction permit was started. On the other hand, the Supporting Technical Reports (STR), which allow for the execution of low-impact components, were the most frequent, adding up to 10 of this type of management instruments. Also, this year, the Detailed Environmental Plans (DAP) of Julcani, Uchucchacua, Tambomayo, Colquijirca and La Zanja, which are under evaluation, were submitted to the authority in accordance with the environmental standards issued by MINEM that will allow to include existing components in a new Environmental Instrument. It should be noted that, due to the health emergency, the State introduced the Prior Communication procedure through Legislative Decree 1500-2020 and Supreme Decree No. 005-2020, which allowed for the implementation of components associated with sanitary measures such as camps, drinking water plants, among others. A total of fifteen (15) prior communications were made in the open-pit units, and thirteen (13) in the underground units. We have the Buenaventura Integrated Management System (SIB) Certification, which, in reference to the Environmental Management System (EMS), is based on the ISO 14001:2015 international standard. Meanwhile, the Environmental Performance Index (EPI) was used in order to increase involvement in the environmental processes, reaching a 95% compliance. This Index measures the degree of compliance of the different areas with respect to commitments and action plans resulting from findings from inspections, audits, supervision and implementation of the training plan. Water is a strategic input for different economic sectors, especially mining. Accordingly, our operations made efforts to use water resources efficiently by boosting the recirculation generated in the metallurgical process. However, it is important to note that, during the first months of the health emergency, plant activities were partial and, in some cases, shut down. Therefore, the rate of recirculation in open-pit operations reached 93%, and about 50% in underground operations. The water consumption rate compared to the quantity of ore processed was 0.20 m³/TM in open pit mines and 0.96 m³/MT in underground mines. 67 Environmental Management WE ARRANGED 35 operating PERMITS FOR WATER RESOURCES In the current year, we arranged 35 operating permits for water resources, of which 16 correspond to treatment system authorizations (07 industrial discharges, 08 domestic discharges, 01 drinking water treatment system), 10 correspond to water-use rights, 07 are permits for the execution of minimum works infrastructure, embankments, riverbed cleaning) and 02 permits for hydrogeological studies. (hydraulic As for the implementation of participatory water- quality monitoring in the environment of our operations, considering the health emergency caused by COVID-19, virtual participation mechanisms have been implemented in the cases of the Orcopampa and Tambomayo units, managing to hold training activities with 28 leaders, monitoring by accredited laboratories and the dissemination of results to the population through radio and electronic newsletters. In the other units, due to the health emergency conditions, the respective authorities were informed of the need to reschedule these activities. In the fourteenth (14) year, the Environmental Assessment and Control Agency (OEFA) conducted supervisions in the different units and projects. This year, efforts were made to minimize potential administrative procedures, acting preventively in the field. The accrued environmental contingencies as of 2020 are S/ 9.3 M. We have continued to drive mine-closure works, mainly in the Progressive Closure and Post-Closure stage. It should be noted that, in 2020, because of the health emergency caused by COVID-19, a large part of the activities had to be rescheduled and, therefore, the mine-closure plans were modified. Our closure works have also been affected by the presence of illegal mining, a situation we have communicated to the competent authorities. It is worth noting that, since, in most cases, we have not received a timely response from the relevant authorities, we have been forced to carry out remediation works on already-closed areas that have been disturbed. The mine-closure allowance, for both mining units and exploration projects and environmental liabilities, reached US$ 440M as of 12.31.20. The works carried out in the year totaled US$ 10.4M, mainly including rehabilitation and revegetation works. Finally, in the field of innovation, we have improved instrumentation and continued monitoring the improved-soils project called “Tecnosoles” in La Zanja in order to validate the technology and to improve the prediction of application costs. We have also identified knowledge gaps with regard to the mine-closure technologies for our mining units, proposing research projects to be developed in 2021. These projects are aimed at reducing acid water generation and the cost of physical closure of sterile material deposits. 68 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY 69 / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY SOCIAL MANAGEMENT L A U N A A R O M E M I 0 2 0 2 70 70 2020 ANNUAL REPORT 2020 WAS A COMPLEX YEAR. CHARACTERIZED BY AN UNPRECEDENTED HEALTH CRISIS THAT AFFECTED –AND KEEPS AFFECTING– THE WORLD, THE COUNTRY, AND THE REGIONS AND COMMUNITIES WHERE WE OPERATE. 71 71 Social Management “ As a company, our operations have suffered a significant production decrease because of the Government restrictions to the performance of economic activities so as to mitigate the impact in the health of the Peruvian population during the first months of this pandemic. 72 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY BUENAVENTURA HAS DISTRIBUTED 98 Oxygen concentrators However, this situation, which is not over yet, has not only affected the operational functioning of our mining units, but also the development of many of the liaison activities that contribute to the normal coexistence with our neighbors. As many Peruvians, though, we had to adapt to this new reality; in our case, giving a much greater importance to the attention of the health needs of nearby regions and communities to contribute to the fight against this virus. In constant coordination with local authorities, we have been part of the construction and maintenance of health-safety fences. These became one of the main tools for the districts and communities of the highlands to reduce the inflow of COVID-19 cases and to monitor compliance with the isolation regulations established by the Government. We have also been supporting families that are most in need and that were affected by this situation through the delivery of more than 35 tons of food supplies. In addition, to reinforce the work of the first line of containment against this virus in eight regions where we operate, we have distributed 98 oxygen concentrators, more than 110 thousand health safety equipment, more than 150 oxygen cylinders, more than 200 thousand medicines, more than 2,700 rapid tests and a power generator for an EsSalud Hospital in Arequipa that handles COVID-19 cases. Also, at the worst 73 Social Management IN LORETO WE SUPPORT WITH THE INSTALLATION OF 01 Oxygen generating plant moment of the health crisis in Loreto, a region that is not part of our area of influence, we were able to provide support with the installation of an oxygen generating plant. Education has also been one of the pillars of our work in 2020. To help children study remotely from the most distant areas of the Cajamarca, Arequipa and Moquegua regions, we have contributed to the broadcast of the Ministry of Education’s radio program Aprendo en Casa (I Learn at Home). Following that same goal, in the Tapay district of Caylloma, Arequipa, we distributed tablets to all the students in the district and installed wireless Internet antennas in every school. 74 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Furthermore, we adapted our teacher-training program for around 220 teachers and principals of our operation environment to a remote mode, training them in the use of distance learning tools, educational planning and evaluation, and emotional support strategies for the families of approximately 3,090 students of 9 districts in 5 regions (Cajamarca, Lima, Pasco, Huancavelica and Arequipa). As for the operational part of our mining units, we also had to deal with the pandemic by adapting our strategies to protect our workers. In addition to the health protocols implemented by the company, the decision was made to prioritize local and regional labor hiring, reducing the contagion risk posed by interprovincial travel. Thus, at the end of 2020, 62% of the workers in our mines belonged to the regions where we operate, half of them from our neighboring communities. As mentioned above, the way we liaison also changed because of the need for physical distancing forced by COVID-19. In fact, within the communities, these limitations also affected the communal decision-making because of impossibility to hold assemblies. However, virtual tools became an effective solution that enabled us to maintain contact, primarily with leaders and authorities, especially at the most critical times of the pandemic. As the restrictions eased by the last quarter of the year, we were able to get a little closer to our neighbors, always respecting the company’s health protocols. Thus, we have been able to participate in over 130 sociocultural activities organized by the communities and have organized other 150 with the participation of our neighbors. These virtual tools have also made it possible to comply with the citizen participation mechanisms of environmental management instruments of the Company’s projects and units. Platforms such as Teams and Zoom allowed local and sectoral authorities to meet with officials from Buenaventura and consulting companies to conduct participatory workshops that were broadcast on television or radio, depending on access to them at each location. The reactivation of mining activities has also been an important government strategy that allowed the local economy of the communities in our areas of influence not to stop completely. During this year, we have billed more than S/ 246 million to local companies for services provided to our operations. In line with the above, PRA Buenaventura has allowed in Lima, Pasco, Huancavelica, local producers Arequipa and Moquegua to earn an income of over S/ 4 million from the sale of their products in local, regional and national markets. En infraestructura, pudimos continuar con la gestión de importantes obras a través de la modalidad de obra por impuestos. En consecuencia, en la provincia de Pasco, se recibió la Buena Pro de la Municipalidad para la ejecución de los proyectos de pavimentación 75 Social Management en el Centro Poblado Smelter por 1.8 millones de soles y en el Barrio Uliachin por 500 mil soles. Por su parte, en Oyón región Lima, se está culminando la ejecución de la pavimentación de la avenida Huánuco cuyo costo total asciende a 9.1 millones de soles. financed by the Ministry of Housing, Construction and Sanitation. In that same province and under the same execution mode, work was started on the irrigation project in Chugurcillo, for an amount of S/ 4.3 million. In Arequipa, with direct funding by Buenaventura for assessments and execution, significant progress has been made in the construction of the Huaruro irrigation canal in the Tapay district. This iconic work is over 15 kilometers in length and will allow irrigation water to be brought to the lower part of this district. 2020 has been a year of challenges that we have taken on responsibly, taking care of our health and aiming at seeking a harmonious coexistence between our operations and the neighboring communities, sustainable development. promoting their As for infrastructure, we were able to continue with the management of important works through the Works for Taxes method. Consequently, in the province of Pasco, we were awarded the successful bid by the Municipality for the execution of the paving projects in the Smelter Town Center for S/ 1.8 million and in the Uliachin neighborhood for S/ 500 thousand. In turn, in Oyón, Lima region, the paving of Huánuco Avenue is being completed, with a total cost of S/ 9.1 million. In Cajamarca, with assessments financed by Coimolache, the technical file of the biodigesters project in the population center of Cuadratura, province of Hualgayoc, was approved at S/ 1.9 million. The execution of this project will be 76 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY 7777 INNOVATION Since the Innovation Management was created, back in 2018, a series of innovative projects has been given cross-cutting promotion in Buenaventura. Many of the projects that have been developed and implemented have emerged from opportunities that were born in mining operations and because of the need to address them from an innovative approach. In addition, we have defined the road map that we must follow to automate our operations, emphasizing critical value-chain activities, such as mine operation and plant operation, which allows us to bet on the benefits of digital transformation. For many, 2020 has been a very challenging year given the circumstances we have been engulfed in as a result of the pandemic. However, this new reality, which has enabled changes to accelerate globally, has allowed us as a company to identify, test and validate some technologies that may be of great importance in the development of our operations, so that they are increasingly carried out in a more productive and safe way. As part of the automation projects that we have been working on throughout the year, we can highlight the following: › At the Colquijirca mining unit (El Brocal), efforts focused on the remote-control room and the use of artificial intelligence (AI) for the prediction of faults in the HPGR crushers. The remote-control room was obtained by optimizing the System800xA control system that allows remote operation of the process plant using the Multisystem Integration protocol. The operators selected for the prototype, who are located in Lima, Arequipa and Trujillo, access from their homes to supervise and control metallurgical processes of the operation through a platform that is similar to the one available in the mining unit. The remote network access was developed with high standards of security and reliability. As for the use of artificial intelligence to predict faults, variables from the HPGR tertiary crusher were integrated into the PI System of descriptive analytics and the ERP. Added to this was the use of artificial intelligence engine software. The purpose of the project is to determine the causes of failure because of equipment shutdown based on operational signals compared against the sources of corrective maintenance incidents 78 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY EL BROCAL AT EFFORTS FOCUSED ON THE REMOTE-CONTROL ROOM AND THE USE OF ARTIFICIAL INTELLIGENCE (AI) FOR THE PREDICTION OF FAULTS IN THE HPGR CRUSHERS. by SAP, as well as to anticipate failures and determine when the equipment will need corrective maintenance. › The model allows to predict operational failures in advance following a behavior pattern generated through the use of artificial intelligence. The Uchucchacua mining unit began to implement the use of telemetry for Simba S7C equipment through an equipment monitoring system. This allows the automated system equipment to perform automatic drilling during down-time periods. In turn, through the 79 Innovation IMPLEMENTATION OF A VIDEO-PRESENCE OR TELE-PRESENCE SYSTEM THAT ALLOWS USERS OF THE HUANZA HYDROELECTRIC POWER PLANT monitoring system, vital information is collected, compared and communicated from the Simba S7C equipment, which enables us to analyze information at both the maintenance and the equipment operation levels, allowing us to detect sources of activity delay, down-time periods, use of equipment in automatic mode, operators’ efficiency, to anticipate maintenance failures, count daily drill meters, efficiency averages, among other data. Such development should be considered as a first stage of the underground mine’s digital transformation plan as the implementation of fleet management and equipment and people tracking systems is under review. › Implementation of a video-presence or tele- presence system that allows users of the Huanza Hydroelectric Power Plant to interact remotely from the field with process and maintenance specialists through a virtual connection via peripherals (augmented reality lenses, mobile phones or tablets). Augmented reality lenses were purchased to work with augmented reality, mixed and virtual, to communicate directly with specialists located anywhere in the country and around the world, and to access virtual support and assisted machine and equipment maintenance. The benefit of using this technology lies in optimizing maintenance response times, and remote operational monitoring; in turn, it encourages the use of virtual tools as an accessible solution for the operation. Other innovation projects we have been working on during 2020 include: › › Development of a prototype to disinfect common spaces in mining operations with UV technology. Based on the need to use innovative technology to disinfect work environments in mining operations, the evaluation of alternatives for a UV-technology disinfection prototype was requested. Development of innovative projects to improve the efficiency of milling equipment in Buenaventura. Through a national competition where we collaborated with several mining companies and UTEC University, funds were obtained from Innóvate Perú to develop, in a first stage, an agenda aimed at improving milling efficiency in Peru, and later, in a second stage, implement some of the projects selected. › Several prototypes have been developed to advance the electrification of the different mining units in Buenaventura. The technical and 80 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY economic parts are being developed so that tests can be carried out with an electric bus and a battery Scoop equipment. › › Preparation of feasibility studies so that the San Gabriel project could be fully implemented as an electric mine using solar energy. reliability. Essentially, Implementation of Imago software by the Management of Explorations and Geology, the purpose being to exploit geological information through the use of machine learning or artificial intelligence, which will allow for the prediction of geological models with greater precision Imago enables and the conformation of a coded library of high- resolution photographic records of drilling cores and the interaction with the geological database management and geological modeling systems to place each core photo in their true spatial position in the subsoil, correlate the photograph with existing geological information (description, structural control, mineral content, etc.) and finally define geological models with greater soundness. Finally, the last work axis has been developed alongside with the Mining Innovation Hub of Peru, of which Buenaventura is one of the three founding partners. This is why we have worked to create a space to meet, connect and collaborate that, through innovation, can generate greater value for us. Panel discussions, meetings, trainings, events and open innovation activities have been developed as part of this work. It is worth noting that solutions were sought to real challenges that arose in the mining units; for instance: inorganic polymers for arsenic retention, UV disinfection, solutions for moisture reduction in mineral concentrates and fines control in the grinding stage. Taking advantage of the collaborative spaces, solutions were also sought to acquire molecular tests for our operations and the Tikari project. The latter is a project involving the Inter-American Development Bank (IDB) and other mining companies looking forward to developing and taking advantage of the skills of women in communities located in areas of influence of mining operations at the clothing, embroidery and entrepreneurship levels. Thus, economic revival can be supported. In the case of Buenaventura, it was decided to carry out the project in our alma mater, Julcani, with the participation of the Ccochaccasa community. 81 / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Economic and Financial Report L A U N A A R O M E M I 0 2 0 2 82 82 2020 ANNUAL REPORT Economic and Financial Report 83 83 we had 979 common As of December 31, 2020, “ 21.641% shareholders. Of those, correspond to Economic and Financial Report The Company’s 2020 net loss was US$ 150.3 million, compared to the net loss of US$ 28.5 million in 2019. This difference is mainly due to a fall in net sales caused by a lower volume and offset by an improvement in prices. Also, there was a lower sales cost (US$ 119 M) and less spending on exploration in operating units (US$ 16 M). On a consolidated basis, the metal with the highest percentage value of our 2020 sales was gold with 34%, followed by silver with 30%, copper with 18%, zinc with 12% and lead with 6%. In addition, the net debt/EBITDA ratio closed the year at 2.46x. During 2020, the final cash position increased from US$ 210.0 million to US$ 235.4 million, and the total CAPEX for the year was US$ 73.2 M. 84 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY THE GOLD WITH 34% WAS THE METAL THAT IN VALUE CONSTITUTED THE HIGHEST PERCENTAGE OF OUR SALES IN 2020 shareholders residing in the country and 78.359% to non-residents. Likewise, we had 886 shareholders holding investment shares. During 2020, the ADRs program of the New York Stock Exchange (NYSE), achieved a trading volume of US$ 4,315,198,361 (407,179,365 ADS). Also, as of December 31, 2020, there were 215,325,698 floating ADS, representing 78.33% of the company’s total floating shares. 85 85 MANAGEMENT ANALYSIS AND DISCUSSION “ The main variations in the consolidated financial statements for the 12-month periods ended on December 31, 2020 and 2019, are explained next: (Figures in US dollars are expressed in thousands, except for metal quantities and quotations) L A U N A A R O M E M I 0 2 0 2 86 1 Net Sales In 2020, the sales of goods accounted for US$ 637,619, compared to sales of US$ 821,930 in 2019, representing a decrease of 22%. This decrease in sales is mainly explained by the lower production due to the temporary shutdown of the mining units during the state of national emergency and compulsory social isolation decreed by the Peruvian government “the temporary shutdown”): (hereinafter a. SALES OF GOLD The average sales quotation of this metal went up from US$ 1,405.35/oz, in 2019, to US$ 1,841.96/oz in 2020, which represents a 31% price increase. However, sales were down to 56,232 oz of gold, compared to 2019. The combined effect meant a lower sales revenue of US$ 24,604 in 2020, compared to 2019. The lower income corresponds mainly to the net effect: (i) the decrease in sales in the Tambomayo and La Zanja mining units by US$ 29,028 and US$ 40,164, respectively, as a result of the lower volume sold, offset by (ii) the increase in sales of Rio Seco by US$ 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY IN 2020 THE SALES OF GOODS ACCOUNTED FOR US$ 637, 619 30,023, as a result of the increase in sales of Doré bars during 2020. b. SALES OF SILVER The average sales quotation of this metal went up from US$ 16.36/oz in 2019, to US$ 22.14/oz in 2020, which represents a 35% price increase. Also, sales went down to 7,813,844 oz of silver, compared to 2019. The combined effect meant a lower sales revenue of US$ 67,673 in 2020, compared to 2019. The lower income corresponds to the net effect of the decrease in sales of the Uchucchacua, Julcani and Tambomayo mining units in US$ 61,810, US$ 7,258, and US$ 5,347, respectively, as a result of the decrease in volumes sold. This was offset by the increase in the Colquijirca mining unit by US$ 5,439 as a result of the increase in the agreed average quotations. C. SALES OF ZINC The average sales quotation of this metal in went down from US$ 2,490.60/mt 2019, to US$ 2,233.55/MT in 2020, which represents a 10% price decrease. Likewise, sales were down to 7,813,844 oz of zinc, compared to 2019. The combined effect meant a lower sales revenue of US$ 28,771 in 2020, compared to 2019. The lower income corresponds to the effect of the decrease in sales of the Uchucchacua and Tambomayo mining units in US$ 29,788 and US$ 10,353, respectively, as a result of the decrease in volumes sold and average quotations. This was offset by the growth in sales of the Colquijirca mining unit by US$ 11,370, as a result of the increase in volumes sold. d. SALE OF COPPER The average sales quotation of this metal went up from US$ 5,808.47/mt, in 2019, to US$ 6,259.49/mt in 2020, which represents an 8% price increase. However, sales were down to 12,061 mt of copper, compared to 2019. The combined effect meant a lower in 2020, sales revenue of US$ 56,993 compared to 2019. The lower income is mainly due to the decrease in the quantities sold and the average quotations of the Colquijirca mining unit by US$ 56,962 e. DEDUCTIONS During 2020, deductions to metal prices for maquila and penalties in concentrate sales as a whole amounted to US$ 179,748, compared to US$ 220,306 in 2019, amounts which have been deducted from total net sales of each year. 87 Management Analysis and Discussion f. SALE OF SERVICES In 2020, service sales added up to US$ 20,285 compared to sales of US$ 23,661 in 2019, a decrease of 14%, mainly in the sale of energy generation and transmission services to mining units as a result of the temporary shutdown. 2 Operating costs In 2020, operating expenses were US$ 652,613, compared to US$ 799,582 of 2019, which represents a decrease of 18%. This decrease was mainly due to the effect of: a. COST OF SALES OF GOODS, WITHOUT CONSIDERING DEPRECIATION AND AMORTIZATION The cost of sales of goods, without considering depreciation or amortization, decreased by US$ 118,986, from US$ 512,874 in 2019 to US$ 393,888 in 2020, which represents a decrease of 23%. The decrease in the cost of sales is mainly due to lower production and sales in the mining units of the Group as a result of the temporary shutdown from 88 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY March 15, 2020 to May 16, 2020 for the Tambomayo, Uchucchacua and El Brocal units, and June 16, 2020 for Orcopampa, Julcani and La Zanja units. b. UNABSORBED COST DUE TO PRODUCTION STOPPAGE The costs not absorbed during the production (net of shutdown totaled US$ 27,758 intercompany eliminations), consisting of services provided by third parties, costs of personnel and supplies for US$ 13,885, US$ 11,057 and US$ 2,816, respectively. c. DEPRECIATION AND AMORTIZATION The depreciation and amortization category decreased by US$ 36,715, from US$ 226,335 in 2019 to US$ 189,620 in 2020, which represents a decrease of 16%. The variation is explained mainly by the decrease in production in all the mining units of the Group due to the State of National Emergency and compulsory social isolation ordered by the Peruvian Government. 89 Management Analysis and Discussion d. EXPLORATION IN OPERATING UNITS Exploration in operating units decreased by US$ 16,119, from US$ 44,163 in 2019 to US$ 28,044 in 2020, mainly due to the decrease in explorations in all the units of the Group. Explorations decreased by US$ 4,456, US$ 3,842, US$ 2,937, US$ 2,697 and US$ 2,186 in the units of Tambomayo, Orcopampa, Colquijirca, and Uchucchacua, respectively. Julcani 3 Operating expenses In 2020, operating expenses were US$ 105,203, compared to US$ 126,319 of 2019, which represents a decrease of 17%. This decrease was mainly due to the net effect of: (i) lower administration and sales costs by US$ 9,112 and US$ 5,780; (ii) lower exploration costs in non-operational areas by US$ 3,404; (iii) higher expenditure in 2020 for the asset write-off as deferred- clearing cost of the Colquijirca mining unit at US$ 11,633; (iv) increased expenditure related to the contingency allowance of US$ 7,118 as a result of a US$ 2,968 income decrease in 2019, compared to the 2020 expenditure of US$ 4,150 resulting from an increase in the tax and environmental contingency allowances by US$ 2,728 and US$ 1,640, respectively; (v) a 2020 income for an allowance recovery of US$ 2,083 due to the impairment of long-term assets at the Julcani mining unit, recorded as spending in 2019; (vi) a variation in the “Others, net” heading of a US$ 14,715 expenditure in 2019, compared to a US$ 2,690 income in 2020, explained mainly by: a) a 2020 income of US$ 4,381 for the loss of profit at El Brocal subsidiary from the insurance indemnity received for damages suffered by the fire in the electric engine of the 16x22 Dominium mill occurred in 2019; and b) a 2019 income from the sale of transmission systems located in the Huancavelica, Trujillo – Cajamarca, Callalli – Ares and Lomera areas of the Conenhua subsidiary to Conelsur LT S.A.C. for US$ 21,023. 4 Other income (expenses), net The Other income (expenses), net, decreased by US$ 63,522, going down from a US$ 14,478 profit in 2019 to a US$ 49,044 loss in 2020. Such a decrease is mainly explained by the variation in the net share in the 90 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Minority interest 6 This category showed loss reduction of US$ 16,251 in 2019, compared to a loss of US$ 14,621 in 2020. The decrease is mainly explained by the net effect of (i) a lower loss in the minority interest of La Zanja subsidiary in 2020 (loss of US $9,090 in 2019 compared to a loss of US$ 6,905 in 2020), offset by (ii) a lower profit on the minority interest of Chaupiloma subsidiary (US$ 6,286 profit in 2019 compared to US$ 5,201 in 2020). in 2020. This decrease results from associates and joint business. This category represented a profit of US$ 47,710 in 2019, compared to a loss of US$ 9,517 is mainly explained by the net effect of a lower net profit on the investments of US$ 30,639 in Minera Yanacocha S.R.L. and of US$ 22,684 in Sociedad Minera Cerro Verde S.A.A. 5 Provision for income tax This item is formed by the Income Tax and the Mining Royalties and the Special Mining Tax. a. PROFITS TAX This category shows a variation from an income of US$ 25,766 in 2019 to an expense of US$ 23,716 in 2020, mainly explained by a loss in the deferred portion of US$ 15,270 in 2020, compared to a US$ 37,617 income in 2019. b. MINING ROYALTIES AND SPECIAL MINING TAX This category shows a variation from a US$ 176 expense in 2019 to a greater expense of US$ 1,714 in 2020, mainly explained by an expense increase in the current portion by US$1,418. 91 OPERATIONS OVERVIEW CHART No.1 OPERATIONS OVERVIEW 2020 Description Ore treated Head grades Bulk concentrate (ag-pb-cu-au) gold-silver concentrate Lead-silver-gold concentrate Copper concentrate Zinc concentrate Silver ounces Gold ounces Metallic copper Metallic lead Metallic zinc Ag recovery Au recovery Cu recovery Pb recovery Zn recovery Cost applicable to sales oz ag Cost applicable to sales oz au Cost applicable to sales mt zn Cost applicable to sales mt cu Unit. Tambomayo Orcopampa Coimolache La Zanja Yanacocha Uchucchacua Ag Au Cu Pb Zn DMT oz/DMT g/DMT % % % DMT DMT DMT DMT DMT Oz Oz MT MT MT % % % % % US$ US$ US$ US$ 510,405 88,249 12,043,702 1,639,008 17,102,000 3.97 5.10 1.45 1.92 17,722 11,638 1,668,582 63,477 6,550 5,266 82.39 75.80 88.3 53.6 942 0.13 14.65 0.49 0.43 0.30 0.37 586 9,069 41,129 699,361 106,017 84,641 17,228 2,140,360 340,052 74.89 96.41 11.97 64.11 17.07 89.56 962 854 1,739 1,043 550,718 10.10 1.03 1.56 54,381 15,236 5,000,312 5,151 5,223 89.88 90.55 60.90 22.24 92 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Description Unit. Julcani El Brocal Cerro verde Acchilla Tailings Marcapunta Tajo Norte - Pb y Zn Tajo Norte - Cu Cathodes Concentrate Ore treated Head grades Ag. Ag Au Au Cu Cu Pb. Pb Zn Zn Lead-silver concentrate Copper concentrate Zinc concentrate Metallic molybdenum Silver ounces Gold ounces Metallic copper Metallic Lead Metallic Zinc Ag recovery Au recovery Cu recovery Pb recovery Zn recovery Cost applicable to sales Oz Ag Cost applicable to sales Mt Zn Cost applicable to sales Mt cu *Considers Cash Cost DMT Oz/DMT g/DMT % % % DMT DMT DMT DMT Oz Oz MT MT MT % % % % % US$ US$ US$ 71,943 22.67 0.07 0.18 0.63 1,579,919 96,812 247 68 127 408 96.88 43.44 96.80 89.90 14.27 1,659,731 2,782,313 91,477 28,114,000 121,360,000 0.78 0.55 1.97 121,281 812,501 11,816 30,038 63.0 40.1 91.8 5,135 1.33 1.17 3.54 42,837 111,712 3.80 0.04 1.04 2,927 2,520,528 175,556 0.34 8,574 3,384,056 20,066 54,909 68.0 61.6 55.7 1,923 36 570 50.5 27.4 60.0 37,415 334,576 58.8 84.3 3,629* 93 Operations Overview CHART No.2 RESERVES AS OF DECEMBER 31, 2020 PROVEN AND PROBABLE RESERVES GOLD Orcopampa Julcani Tambomayo La Zanja Coimolache El Brocal Marcapunta El Brocal (Tajo Norte Smelter – Cu – Ag) Yanacocha San Gabriel Total Gold Reserves SILVER Uchucchacua (Silver-Lead-Zinc) Julcani Orcopampa Tambomayo La Zanja Coimolache El Brocal (Tajo Norte Smelter-Cu-Ag) El Brocal (Tajo Norte Smelter-Zn-Pb-Ag) El Brocal (Marcapunta) Yanacocha Cerro Verde (for grinding) San Gabriel Total Silver Reserves BVN % Share 100.00 100.00 100.00 53.06 40.10 61.43 61.43 43.65 100.00 BVN % Share 100.00 100.00 100.00 100.00 53.06 40.10 61.43 61.43 61.43 43.65 19.58 100.00 DMT (000) Oz / DMT Ounces (000) BVN Ounces (000) 469 269 2,339 5,197 74,617 30,530 31,760 198,611 11,576 0.299 0.007 0.107 0.012 0.010 0.021 0.007 0.033 0.150 140 2 249 65 774 655 211 6,627 1,741 10,463 140 2 249 34 310 402 130 2,893 1,741 5,903 DMT (000) Oz / DMT Ounces (000) BVN Ounces (000) 7,617 269 469 2,339 5,197 74,617 31,760 9,840 30,530 221,609 4,002,281 11,576 9.67 20.93 0.55 4.08 0.13 0.23 0.80 2.76 1.04 0.44 - 0.24 73,662 5,636 260 9,546 659 17,385 25,352 27,169 31,651 96,554 111,370 2,724 73,662 5,636 260 9,546 350 6,970 15,574 16,690 19,443 42,146 21,806 2,724 401,968 214,807 94 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY ZINC 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) El Brocal (Tajo Norte Smelter-Cu-Ag) San Gabriel Trapiche Yanacocha Cerro Verde (for grinding) Cerro Verde (for leaching) Total Copper Reserves MOLYBDENUM BVN % Share 100.00 100.00 61.43 BVN % Share 100.00 100.00 100.00 61.43 BVN % Share 100.00 61.43 61.43 100.00 100.00 43.65 19.58 19.58 BVN % Share DMT (000) % Zn DMT (000) 7,617 2,339 9,840 1.93 1.50 2.15 147 35 211 393 DMT (000) %Pb DMT (000) 10,426 255 2,446 14,756 1.19 2.00 1.27 1.17 124 5 31 173 334 DMT (000) %Cu DMT (000) 269 30,530 31,760 11,610 283,200 112,404 4,002,281 75,199 0.45 1.29 1.48 0.06 0.51 0.62 - - 1 393 469 7 1,444 697 12,572 148 15,731 DMT (000) % Mo DMT (000) Cerro Verde (for grinding) 19.58 4,002,281 Total Molybdenum Reserves 312 312 Prices used to estimate reserves: Gold US$ 1,600/Oz; Silver US$ 20.00/Oz; Lead US$ 1900/MT; Zinc US$ 2,300/MT; and Copper US$ 6,500/MT BVN DMT (000) 147 35 130 312 BVN DMT (000) 124 5 31 106 267 BVN DMT (000) 1 241 288 7 1,444 304 2,462 29 4,777 BVN DMT (000) 61 61 95 Operations Overview CHART No.3 RESERVES AS OF DECEMBER 31, 2019 PROVEN AND PROBABLE RESERVES GOLD Orcopampa Julcani Tambomayo La Zanja Coimolache El Brocal (Marcapunta) Yanacocha San Gabriel Total Gold Reserves SILVER Uchucchacua (Silver-Lead-Zinc) Julcani Orcopampa Tambomayo La Zanja Coimolache El Brocal (Tajo Norte Smelter) El Brocal( Marcapunta) Yanacocha Cerro Verde (for grinding) San Gabriel Total Silver Reserves BVN % Share 100.00 100.00 100.00 53.06 40.10 61.43 43.65 100.00 BVN % Share 100.00 100.00 100.00 100.00 53.06 40.10 61.43 61.43 43.65 19.58 100.00 DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 626 255 2,446 560 66,859 34,503 221,834 11,576 0.321 0.006 0.120 0.013 0.011 0.023 0.031 0.150 201 1 295 7 737 805 6,938 1,741 10,726 201 1 295 4 296 495 3,028 1,741 6,061 DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 10,426 255 626 2,446 560 66,859 42,216 34,503 227,718 4,169,880 11,576 9.46 21.02 0.49 4.46 0.27 0.26 1.08 1.15 0.45 - 0.24 98,598 5,361 305 10,898 152 17,145 45,581 39,799 102,473 113,314 2,724 98,598 5,361 305 10,898 80 6,874 28,000 24,448 44,729 22,187 2,724 436,349 244,205 96 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY ZINC 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) El Brocal (Tajo Norte Smelter-Cu-Ag) San Gabriel Trapiche Yanacocha Cerro Verde (for grinding) Cerro Verde (for leaching) Total Copper Reserves MOLYBDENUM BVN % Share 100.00 100.00 61.43 BVN % Share 100.00 100.00 100.00 61.43 BVN % Share 100.00 61.43 61.43 100.00 100.00 43.65 19.58 19.58 BVN % Share DMT (000) % Zn DMT (000) 10,426 2,446 14,756 2.03 1.66 2.52 212 41 371 624 DMT (000) %Pb DMT (000) 10,426 255 2,446 14,756 1.19 2.00 1.27 1.17 124 5 31 173 334 DMT (000) % Cu DMT (000) 255 34,503 27,460 11,610 283,200 104,388 4,169,880 95,353 0.43 1.30 1.71 0.06 0.51 0.63 - - 1 450 470 7 1,444 660 12,792 210 16,035 DMT (000) % Mo DMT (000) Cerro Verde (for grinding) 19.58 4,169,880 Total Molybdenum Reserves 317 317 Prices used to estimate reserves: Gold US$ 1,300/Oz; Silver US$ 16.30/Oz; Lead US$ 2,200/MT; Zinc US$ 2,800/MT; and Copper US$ 6,200/MT BVN DMT (000) 212 41 228z 480 BVN DMT (000) 124 5 31 106 267 BVN DMT (000) 1 277 289 7 1,444 288 2,505 41 4,851 BVN DMT (000) 62 62 97 Operations Overview CHART No.4 NON- RESERVE MINERALS AS OF DECEMBER 31, 2020 NON-RESERVE MINERALS (measured + indicated) GOLD Orcopampa Julcani Tambomayo La Zanja Alejandra (La Zanja) Coimolache - Óxidos El Brocal Marcapunta El Brocal (Tajo Norte Smelter – Cu-Ag) Yanacocha Yanacocha (Conga) 1 Yanacocha (Conga) 2 Total Gold Resources SILVER Orcopampa Uchucchacua (Silver-Lead-Zinc) Julcani Tambomayo La Zanja Alejandra (La Zanja) Coimolache - oxides El Brocal (Tajo Norte Smelter – Cu-Ag) El Brocal (Tajo Norte Smelter – Zn-Pb-Ag) El Brocal Marcapunta El Brocal (San Gregorio) Yanacocha Yanacocha (Conga) 1 Yanacocha (Conga) 2 Total Silver Resources BVN % Share 100.00 100.00 100.00 53.06 53.06 40.10 61.43 61.43 43.65 43.65 43.65 BVN % Share 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 DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 425 92 755 9,117 123 15,507 21,582 1,061 337,893 536,015 388,268 0.302 0.000 0.097 0.013 0.703 0.008 0.026 0.004 0.0024 0.0023 0.012 128 0 73 120 86 124 551 4 8,245 12,593 4,880 26,806 128.5 0 73 64 46 50 339 3 3,599 5,497 2,130 11,928 DMT (000) Oz/DMT Ounces (000) BVN Ounces (000) 425 2,335 92 755 9,117 123 15,507 1,061 5,588 21,582 79,934 122,612 536,015 388,268 0.413 9.79 21.785 4.240 0.290 3.740 0.390 0.700 0.736 0.932 0.308 0.496 0.070 0.040 176 22,865 2,006 3,201 2,636 459 6,019 742 4,114 20,105 24,620 60,882 37,784 14,461 176 22,865 2,006 3,201 1,398.500 243.545 2,413 456 2,527 12,351 15,124 26,575 16,493 6,312 200,070 112,141 98 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY ZINC Uchucchacua (Silver-Lead-Zinc) Tambomayo El Brocal (Tajo Norte Smelter – Zn-Pb-Ag) El Brocal (San Gregorio) Total Zinc Resources LEAD Uchucchacua (Silver-Lead-Zinc) Julcani Tambomayo El Brocal (Tajo Norte Smelter - Zn-Pb-Ag) El Brocal (San Gregorio ) Total Lead Resources COPPER Julcani Trapiche El Brocal Marcapunta El Brocal (Tajo Norte Smelter-Cu-Ag) Yanacocha Yanacocha ( Conga) 1 Yanacocha ( Conga) 2 Total Copper Resources BVN % Share 100.00 100.00 61.43 61.43 BVN % Share 100.00 100.00 100.00 61.43 61.43 BVN % Share 100.00 100.00 61.43 61.43 43.65 43.65 43.65 DMT (000) % Zn DMT (000) 2,335 755 5,588 79,934 2.063 1.480 3.174 5.223 48 11 177 4,175 4,412 DMT (000) % Pb DMT (000) 2,335 92 755 5,588 79,934 1.201 1.290 0.950 0.971 1.528 28 1 7 54 1,221 1,312 BVN DMT (000) 48 11 109 2,565 2,733 BVN DMT (000) 28 1 7 33 750 820 DMT (000) % Cu DMT (000) BVN DMT (000) 92 540,000 21,582 1,061 138,247 536,015 388,268 0.180 0.31 1.398 1.008 0.380 0.280 0.190 0 1,674 302 11 525 1,501 738 4,751 0 1,674 186 7 229 655 322 3,073 99 Operations Overview CHART No.5 PRODUCTION OVERVIEW 2020 % Share 100% 100% 100% 100% Tambomayo Orcopampa Uchucchacua Julcani El Brocal La Zanja Coimolache Total production Produccion Atribuible a Buenaventura Ag Oz Au Oz Pb DMT Zn DMT Cu DMT Ag Oz Au Oz Pb DMT Zn DMT Cu DMT 1,668,582 63,477 6,550 5,266 Tambomayo 1,668,582 63,477 6,550 5,266 9,069 41,129 Orcopampa 9,069 41,129 5,000,312 1,676,731 5,151 408 315 5,223 127 61.43% 3,508,585 11,852 20,066 54,909 30,608 53,06% 40.10% 84,641 17,228 699,361 106,017 Yanacocha 43.65% 2,140,361 340,052 Uchucchacua 5,000,312 5,151 5,223 Julcani El Brocal La Zanja Coimolache Yanacocha 1,676,731 315 408 127 2,155,324 7,280 12,326 33,731 18,802 44,911 9,141 280,409 42,507 934,268 148,433 Cerro Verde 19.58% 3,384,056 371,992 Cerro Verde 662,598 72,836 Total Content 18,171,697 508,069 32,175 65,399 402,727 Total Content 12,432,202 312,282 24,436 44,221 91,766 COMMERCIAL OVERVIEW Oro (US$/Oz) Plata (US$/Oz) Plomo (US$/TM) Zinc (US$/TM) Cobre (US$/TM) Quotation of metals sold 2020 1,842 22.14 1,708 2,234 6,259 2019 1,405 16.36 1,939 2,492 5,808 Oro (Oz) Plata (Oz) Plomo (TM) Zinc (TM) Cobre (TM) Volumes of metals sold 2020 2019 124,644 180,876 10,410,477 18,224,320 28,348 53,971 28,966 45,995 59,953 41,027 100 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY PERSONNEL AS OF DECEMBER 31, 2020 Company Units Julcani Recuperada Orcopampa Uchucchacua Mallay Poracota Tambomayo Shila Paula Arequipa San Gabriel Lima (Proyectos) Lima TOTAL BUENAVENTURA La Zanja Conenhua Molle Verde Rio Seco Coimolache El Brocal TOTAL GENERAL Management Executives Employees Bep Employees Workers mine Total Company Contracts Total General 0 0 1 1 0 0 1 0 0 1 1 21 26 0 1 1 1 1 3 33 53 3 50 104 1 0 78 3 5 19 13 191 520 35 21 12 20 77 160 845 4 1 1 13 0 0 5 0 3 1 12 87 127 0 48 1 1 4 175 356 1 0 0 1 0 0 1 0 0 0 0 1 4 0 0 0 0 0 0 4 43 0 103 126 1 0 109 0 0 3 0 0 385 28 0 4 67 75 0 84 0 243 247 2 0 143 11 0 1 0 1 732 33 19 0 0 42 311 559 1,137 185 4 398 492 4 0 337 14 8 25 26 301 1,794 96 89 18 89 199 649 2,934 873 0 446 1,639 0 0 612 0 0 156 37 55 3,818 756 50 48 87 1,633 2,593 8,985 1,058 4 844 2,131 4 0 949 14 8 181 63 356 5,612 852 139 66 176 1,832 3,242 11,919 VARIATION IN NUMBERS OF EMPLOYEES Units Julcani Recuperada Orcopampa Uchucchacua Mallay Poracota Tambomayo Shila Paula Arequipa San Gabriel Lima (Proyectos) Lima La Zanja Conenhua Molle Verde Rio Seco Coimolache El Brocal TOTAL 2020 2019 2018 201 7 185 4 406 492 0 0 4 327 14 25 0 18 89 96 89 199 337 649 2,934 193 4 451 506 0 0 13 344 13 19 0 31 87 90 106 214 346 678 181 4 573 532 0 0 74 374 30 18 0 15 95 141 109 202 383 748 199 4 609 547 0 0 127 395 34 25 0 12 91 166 173 189 401 816 3,095 3,479 3,788 101 SHAREHOLDING STRUCTURE CIA. DE MINAS BUENAVENTURA S.A.A. SECURITIES AREA Shareholding Structure and Nationality with a Share over 5% As of December 31, 2020 Total Common Shares 274,889,924 Name Percentage Share Compañía Minera Condesa S.A. Roque Benavides Ganoza The Bank of New York Mellon Dr.(*)(**) Total (*)THE BANK OF NEW YORK MELLON DR. Depository Bank, ADR holder (**) Includes some members of the Benavides family 7.69 5.06 78.33 91.08 Nationality Peruvian Peruvian USA 102 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY SHAREHOLDING STRUCTURE, COMMON VOTING SHARES AS OF DECEMBER 31, 2020 Share holding Number of shareholders Shareholding percentage Under 1% Between 1% and 5% Between 5% and 10% Above 10% Total 971 5 2 1 979 2.37 6.55 12.75 78.33 100.00 SHAREHOLDER COMPOSITION, INVESTMENT SHARES AS OF DECEMBER 31, 2020 Shareholding structure Investment Shares as of December 31, 2020 Total Investment Shares 744,640 Share holding Number of shareholders Shareholding percentage Under 1% Between 1% and 5% Between 5% and 10% Above 10% Total 881 3 1 1 886 27.83 3.37 5.45 63.35 100.00 103 Shareholding Structure SHAREHOLDING STRUCTURE PER TYPE OF INVESTOR AS OF DECEMBER 31, 2020 Holding by shareholder type or proxy of the share composing the S&P Peru Selective Index (at year end) Number of holders Shareholding % 1 2 3 4 5 6 7 8 9 Members of the Board of Directors and the top management, including family members. Corporation workers, not included in number 1. Individuals, not included in numbers 1 and 2. Pension funds managed by Pension Fund Administrators under the supervision of the Superintendence of Banking, Insurance and Pension Fund Administrators. Pension fund administered by the Peruvian Social Security Administration (ONP, in Spanish). Peruvian State entities, except for the case mentioned in paragraph 5. Banks, financial institutions, municipal savings banks, small and micro enterprise development agencies (edpymes, in Spanish), rural banks and credit unions under the supervision of the of Banking, Insurance and AFP Regulator. Insurance companies under the supervision of the Superintendence of Banking, Insurance and Pension Fund Administrators. Intermediation agents, under the supervision of the Peruvian Securities Market Regulator (SMV, in Spanish). 10 Investment funds, mutual funds and equity trusts under the Securities Market Law and the Investment Funds and Bank Trusts Law under the General Law of the Financial System. 19 0 920 1 0 1 0 1 1 0 12.11% 0.00% 1.84% 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 104 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY 11 12 13 Autonomous assets and foreign bank trusts, to the extent that they can be identified. Foreign depositories that appear as shareholders under ADR or ADS programs. Foreign depositories that appear as shareholders not included in number 12 14 Foreign custodians appearing as shareholders. 15 Entities that do not appear in previous numbers. 16 Shares belonging to the S&P/BVL Peru Select Index or proxy of these shares, in the portfolio of the company. 0 1 0 0 33 2 0.00% 78.33% 0.00% 0.00% 0.02% 7.69% Total 979 100.00% Holding by shareholders or the proxy of the share composing the S&P/BVL Peru Select Index, based on their residence (at year end) Number of holders Shareholding % Resident Non-Resident Total 934 45 979 21.64% 78.36% 100.00% 105 SHARES AND ADR BEHAVIOR Behavior of the shares and ADS’s year 2020 BVN. Securities - ADS Quotation $ Opening Closure Maximum Minimum Average US$ S/. US$ S/. US$ S/. US$ S/. US$ S/. 15.26 12.94 11.36 7.14 7.30 7.92 9.13 11.67 14.24 12.37 12.43 11.46 50.62 43.69 39.14 24.58 24.70 27.20 32.33 41.18 50.51 44.52 44.93 41.37 12.93 11.15 7.29 7.49 7.85 9.14 11.86 14.29 12.22 12.27 11.10 12.19 43.44 38.48 25.07 25.26 26.96 32.19 41.63 50.59 43.96 44.36 40.06 44.14 15.36 13.12 11.68 8.45 9.11 9.50 12.77 14.29 14.32 13.44 13.06 13.28 50.95 44.27 40.24 28.55 31.41 33.21 45.07 50.59 50.79 48.46 47.02 47.68 12.13 11.15 5.12 6.68 7.26 7.84 8.89 11.38 11.24 11.88 10.22 11.38 40.45 38.24 18.07 22.99 24.56 26.92 31.13 40.16 39.96 42.85 36.87 41.08 13.59 12.22 7.97 7.37 8.20 8.77 10.59 13.17 12.46 12.53 11.70 12.30 45.67 42.17 27.42 24.87 28.14 30.88 37.16 46.61 44.82 45.28 42.23 44.55 Opening Closure Maximum Minimum Average TC 3.32 3.38 3.45 3.44 3.38 3.43 3.54 3.53 3.55 3.60 3.62 3.61 3.36 3.45 3.44 3.37 3.43 3.52 3.51 3.54 3.60 3.62 3.61 3.62 3.32 3.37 3.45 3.38 3.45 3.50 3.53 3.54 3.55 3.61 3.60 3.59 3.34 3.43 3.53 3.44 3.38 3.43 3.50 3.53 3.56 3.61 3.61 3.61 3.36 3.45 3.44 3.37 3.43 3.52 3.51 3.54 3.60 3.62 3.61 3.62 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 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Share price Buenaventura Common (S/) Month January February March April May June July August September October November December Opening Closure Maximum Minimum Average 42.00 42.50 32.40 26.00 27.22 42.60 43.74 40.20 43.80 42.00 40.00 25.00 26.00 29.00 43.45 44.80 40.72 43.80 42.00 42.50 32.40 26.00 29.00 43.45 44.80 40.72 43.80 42.00 40.00 25.00 26.00 27.22 42.60 43.74 40.20 43.80 41.79 42.32 27.70 27.50 26.00 28.57 33.93 35.44 42.61 44.12 40.49 43.80 Buenaventura Investment (S/) Month January February March April May June July August September October November December Opening Closure Maximum Minimum Average - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 107 Shares and ADR behavior a. ADRs ADRs NEW YORK PROGRAMS YEAR 2020 During 2020, the ADRs program of the New York Stock Exchange (NYSE), achieved a trading volume of US$ 4,315,198,361 (407,179,365 ADS). Also, as of December 31, 2020, there were 215,325,698 floating ADS, representing 78.33% of the company’s total floating shares. Lima, January 2021 108 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY b. CORPORATE MATTERS As of December 31, 2020, we had 979 common shareholders. Of those, 21.641% correspond to shareholders residing in the country and 78.359% to non-residents. Likewise, we had 886 shareholders holding investment shares. Lima, January 2021 109 FINANCIAL STATEMENTS Paredes, Burga & Asociados Sociedad Civil de Responsabilidad Limitada Independent Auditor’s Report To the Board of Directors and Shareholders of Compañía de Minas Buenaventura S.A.A. We have audited the accompanying consolidated financial statements of Compañía de Minas Buenaventura S.A.A. (a Peruvian publicly traded company) and Subsidiaries (hereinafter called “the Group”), which comprise the consolidated statement of financial position as of December 31, 2020 and 2019, and the corresponding consolidated income statement, comprehensive income statements, statements of changes in equity and cash flow statements for the years ended in December 31, 2020, 2019 and 2018, as well as the summary of the significant accounting policies and other explanatory notes. Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), and for such internal control as Management deems necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit pursuant to the International Standards on Auditing approved for their application in Peru by the Council of Deans of the Public Accountant Associations of Peru. Those standards require that we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. Registered in item 11396556 of the Registry of Legal Entities of Lima and Callao Member of Ernst & Young Global 110 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The selected procedures depend on the auditor’s professional judgment, including the assessment of the risks of material misstatement in the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the Group for the preparation and fair presentation of the consolidated financial statements in order to design auditing procedures that are appropriate according to the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. An audit also includes evaluating the appropriateness of the accounting principles used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying consolidated financial statements fairly present, in all material aspects, the financial position of Compañía de Minas Buenaventura S.A.A. and Subsidiaries as of December 31, 2020 and 2019, as well as their financial performance and their consolidated cash flows for the years ended in December 31, 2020, 2019 and 2018, in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board (IASB). Lima, Perú, February 25, 2021 Countersigned by: Katherine Villanueva C.P.C.C. Matrícula No.36892 Firma miembro de Ernst & Young Global Limited 111 Financial statements CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As of December 31, 2020 and 2019 Assets Current assets Cash and cash equivalents Trade and other receivables, net Inventories, net Income tax credit Prepaid expenses Non-current assets Trade and other receivables, net Inventories, net Investments in associates and joint venture Mining concessions, development costs, right-of-use asset, property, plant and equipment, net Investment properties, net Deferred income tax asset Prepaid expenses Other assets, net Total assets Liabilities and shareholders’ equity, net Current liabilities Bank loans Trade and other payables Provisions, contingent liabilities and other liabilities Includes lines that are not provisions such as benefits to Income tax payable Financial obligations employees. SAD. Hedge derivative financial instruments Non-current liabilities Trade and other payables Provisions, contingent liabilities and other liabilities Includes lines that are not provisions such as benefits to Financial obligations employees. SAD. Contingent consideration liability Deferred income tax liabilities Total liabilities Shareholders’ equity, net Capital stock Investment shares Additional paid-in capital Legal reserve Other reserves Retained earnings Other reserves of equity Shareholders ‘equity, net attributable to owners of the parent Non-controlling interest Total shareholders’ equity, net Total liabilities and shareholders’ equity, net 2020 US$(000) 2019 US$(000) 235,449 230,830 77,327 19,837 25,709 589,152 102,347 23,637 1,488,775 1,650,361 186 73,850 24,806 26,503 3,390,465 3,979,617 65,793 179,956 68,000 3,162 25,086 18,439 360,436 − 252,338 506,567 22,100 38,319 819,324 1,179,760 750,497 791 218,450 163,194 269 1,503,785 (9,526) 2,627,460 172,397 2,799,857 3,979,617 210,046 287,712 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 4,107,274 112 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY CONSOLIDATED STATEMENTS OF PROFIT OR LOSS For the years ended December 31, 2020, 2019 and 2018 Continuing operations Sales Sales of goods Sales of services Royalty income Total sales Operating costs Cost of sales of goods, excluding depreciation and amortization Unabsorbed cost due to production stoppage Cost of sales of services, excluding depreciation and amortization Depreciation and amortization Exploration in operating units Mining royalties Total operating costs Gross profit Operating expenses, net Administrative expenses Selling expenses Write –off of stripping activity asset Exploration in non-operating areas Reversal (provision) of contingencies and others Impairment recovery (loss) of long-lived assets Other, net Total operating expenses, net Operating profit (loss) Finance income Finance costs Share in the results of associates and joint venture Net loss from currency exchange difference Profit (loss) before income tax Current income tax Deferred income tax Total income tax Profit (loss) from continuing operations Discontinued operations Net profit (loss) from discontinued operations attributable to equity holders of the parent Loss for the year Attributable to: Equity holders of the parent Non-controlling interest 2020 US$(000) 2019 US$(000) 2018 US$(000) 637,619 20,285 18,638 676,542 (393,888) (27,758) (1,554) (189,620) (28,044) (11,749) (652,613) 23,929 (67,185) (18,533) (11,633) (8,475) (4,150) 2,083 2,690 (105,203) (81,274) 2,411 (37,822) (9,517) (4,116) (130,318) (9,924) (15,506) (25,430) (155,748) 821,930 23,661 22,297 867,888 (512,874) − (3,378) (226,335) (44,163) (12,832) (799,582) 68,306 (76,297) (24,313) − (11,879) 2,968 (2,083) (14,715) (126,319) (58,013) 9,675 (42,173) 47,710 (734) (43,535) (11,911) 37,501 25,590 (17,945) 5,409 (10,514) (150,339) (28,459) (135,718) (14,621) (12,208) (16,251) (150,339) (28,459) 1,106,329 24,001 20,385 1,150,715 (613,381) − (4,318) (238,879) (89,730) (21,388) (967,696) 183,019 (77,099) (26,948) − (36,307) 11,248 5,693 (1,308) (124,721) 58,298 9,685 (38,422) (1,144) (1,384) 27,033 (16,882) (9,997) (26,879) 154 (11,808) (11,654) (13,445) 1,791 (11,654) Basic and diluted loss per share attributable to equity holders of the parent, stated in U.S. dollars Loss for continuing operations, basic and diluted per share attributable to equity holders of the parent, expressed in US dollars (0.53) (0.05) (0.05) (0.56) (0.01) (0.02) 113 Financial statements CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2020, 2019 and 2018 Operating activities Proceeds from sales Recovery from value added tax and other taxes Royalty received Dividends received from related parties Dividends received from investments Proceeds from insurance claim Interest received Payments to suppliers and third parties, and other net Payments to employees Income tax and Royalties paid to Peruvian State Payments for tax litigation Interest paid Payments of royalties Net cash and cash equivalents provided by operating activities Investing activities Proceeds from sale of property, plant and equipment to third parties Additions to mining concessions, development costs, property, plant and equipment Acquisition of investment in associate Payments for acquisition of other assets 2020 US$(000) 2019 US$(000) 2018 US$(000) 708,196 783,000 1,216,294 42,967 18,954 3,649 2,500 4,381 1,658 (454,140) (129,353) (25,708) (22,386) (21,653) (6,180) 122,885 45,712 23,001 33,388 − − 4,265 (610,737) (137,300) (24,935) (36,322) (28,266) (4,741) 47,065 106,656 20,013 46,792 − 38,793 2,383 (861,282) (151,602) (30,898) − (27,699) (13,190) 346,260 24,416 726 2,240 (71,546) (13,453) (1,641) (102,627) (111,270) − (3,700) − (8,529) Net cash and cash equivalents used in investing activities (62,224) (105,601) (117,559) Financing activities Proceeds from bank loans Payments of bank loans Proceeds from financial obligations Payments of financial obligations Dividends paid to controlling shareholders Short-term and low value lease payments Decrease (increase) of bank accounts in trust Dividends paid to non-controlling shareholders Net cash and cash equivalents used in financing activities Increase (decrease) in cash and cash equivalents for the year, net Cash and cash equivalents at beginning of year Cash and cash equivalents at year-end Financing and investing activities not affecting cash flows: Changes in estimates of mine closures plans Change of the fair value for contingent consideration liability Accounts receivable from sale of assets 18,019 (7,197) − (38,994) − (4,080) 2,134 (5,140) (35,258) 25,403 210,046 235,449 55,000 (95,000) 161,894 (186,152) (22,098) (7,596) (166) (6,500) (100,618) (159,154) 369,200 210,046 95,000 (95,000) − (45,222) (22,860) − (410) (5,560) (74,052) 154,649 214,551 369,200 31,558 (5,690) 8,233 26,722 (655) 21,648 42,874 1,815 2,715 114 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY 115 MEMBERS OF THE MANAGEMENT Management Roque Benavides G. Raúl Benavides G. CEO Since 03/25/2011 Vice-President, Business Development From 07/01/1997 To 12/31/2020 – termination Juan Carlos Ortiz Zevallos Vice-President, Operations Alejandro Hermoza M. Vice-President, Sustainability Since 05/01/2018 Since 05/01/2018 Victor Gobitz C. General Manager From 01/02/2017 To 08/31/2020 – termination Leandro García R. Vice-President, Finance and Administration From 12/01/2017 To 08/31/2020 – changed Replaces Víctor Gobitz since 09/01/2020 position Daniel Dominguez V. Logistics Manager From 03/01/2017 To 08/31/2020 – changed Replaces Leandro García since 09/01/2020 position Fernando Ortiz De Zevallos Malaga Director, Business Development From 01/01/2017 To 09/30/2020 – changed Replaces Daniel Domínguez since 10/01/2020 position Finance Manager Since 09/01/2020 Manager of Information Technologies and Communications Since 01/01/2020 Cecilia Puga Buse Juan Buhytron Q. Pedro Torres T. Luz Campodónico A. José Malca La Fuente Gulnara La Rosa R. Edgar Córdova M. Aldo Massa Peschiera Ignacio Agramunt B. Accounting Manager Internal Audit Manager Human Resources Manager Legal Manager Community Relations Manager Commercial Manager Innovation Manager Ernesto Ladron de Guevara H. Compliance Manager Renzo Macher C. Andres Osorio A. Julio Meza Paredes Juan Carlos Salazar C. Carlos Rodríguez Vigo Percy Montoya Vargas Diego Angulo de Aviles Tomas Chaparro D. Alex Lobo Guillén Percy Ponce B. Project Manager – Projects Project Manager – Operations Geology Manager Geology and Explorations Manager Manager of Environmental Management Manager of Environmental Management Planning Manager Safety Manager Technical Manager of Open-Pit Operations Manager of Metallurgical Research and Plants 116 Since 02/01/2020 Since 01/15/2018 Since 04/08/2019 Since 09/01/2017 From 06/01/2019 To 04/30/2020 – termination To 03/31/2020 – termination Since 03/01/2020 Since 03/01/2020 To 02/29/2020 – termination Since 09/25/2017 To 01/02/2020 – termination Since 07/19/201 Since 07/01/2018 Since 01/01/2018 2020 ANNUAL REPORT/ THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Lima Juan Ayala López Kellyn Cristobal Paredes Process Director Planning Director Augusto Bejarano Vásquez Tax Accounting Director Rosemarie Boltan Atoche Regional Director of Environmental Management Guillermo Chang Chag Financial Audit and Process Director Carlos Claux Mora Juan Collao Guanilo Andres Condori Benavides José Luis Aquino Aquino Pedro Navarro Bayona Fredy Oscategui Salazar Julio Velasquez Miñan Miguel Diaz Romero Jorge Falla Cordero Social Responsibility and Development Director Commercialization Director Geology Director Geology Director Safety Director Safety Director Safety Director Financial Accounting Director Permits and Obligations Director Luis Fernandez De Paredes Robles Regional Explorations Director Since 04/01/2019 Since 12/01/2019 From 08/01/2016 To 08/15/2020 – termination From 02/01/2014 To 03/31/2020 – termination Since 01/01/2020 Since 10/15/2018 Since 08/01/2017 Alfredo Gallardo Rios Rolando Ligarda C. Environmental, Mine-Closure Director Technical Director From 01/01/2014 To 02/29/2020 – termination Regional Explorations Director Since 07/01/2018 Fernando Mayor Najera Director of Research and Compliance Audit Neil Mendoza Hoyos Freddy Meza Padilla Asset Management Reliability Director Since 02/01/2018 Project Development Director From 04/20/2013 To 08/15/2020 – termination Miguel Infantes Quijano Project Development Director Since 07/06/2020 Alberto Peña Alburqueque Modeling and Resources Director From 06/15/2015 To 06/07/2020 – termination José Gutierrez Ramirez Modeling and Resources Director Since 08/01/2020 Ana María Rivera Calderón Social Management Director Guillermo Shoof A. Legal Director Since 01/01/2018 Rossi Marie Montalvo S. Service Procurement and Contract Administration Director Since 10/01/2019 Juan Martin Chávez L. Rafael Guillen Llerena Harry Silva Nichos Jorge Villanueva Samar José Trujillo Salcedo Procurement of Materials and Assets Director Logistics Director Project Control Director Project Control Director Regional Explorations Director Pablo Valladares Hernandez Regional Director of Environmental Management Since 09/01/2018 Since 09/01/2018 From 11/08/207 To 04/30/2020 – termination Since 05/01/2020 Since 07/01/2018 Since 08/01/2017 Dante García Suclla Metallurgical Projects Director From 01/01/2019 To 02/29/2020 – termination Fernando Zeballos Zeballos Metallurgical Projects Director Since 05/08/2020 Juan Carlos Vargas Byrne Director of Labor Relations and Personnel Management Silvia Vicente León Information Systems TIC Director Manuel Villalobos Berrocal Administration Director From 01/04/2016 To 10/31/2020 – termination Juan Pablo Zoeger La Hoz Management and Human Development Director Roger Velasquez Rosales Costs and Budget Director Since 06/01/2020 117 Members of the Management Uchucchacua José Luis Alcalá Valencia Unit Manager Waldir Guillermo Cisneros Plant Superintendent Roger Ccahuana Figueroa Geology Superintendent Heider Montoya Espinoza Mine Superintendent Martin Rodriguez Serveleon Maintenance Superintendent Planning Superintendent Project Superintendent Environmental Management Superintendent Safety Superintendent Social Affairs Superintendent Administration Superintendent Human Resources Superintendent Unit Accountant Orlando Olarte Olivas Fabricio Huerta Luza César Carrasco Loayza Hector Quispe Chahua César Rondinelli Zaga Hector Quispe Ramos Enrique Romero Graus Julio Delgado Zúñiga Mallay Since 06/01/2019 Since 05/01/2019 Since 01/01/2020 Since 05/01/2019 Since 04/01/2019 Since 01/01/2019 Since 07/01/2019 Since 08/01/2019 To 09/30/2020 – termination To 08/21/2020 (passed away) Rolando Quispe Vilcahuamán Head of Community Relations Since 10/01/2015 Orcopampa Gilmar Valenzuela Salazar Production Manager Since 12/01/2018 Edwin Mendoza Begazo Geology Superintendent Jimmy Gabriel Espinoza Environmental Management Superintendent Pedro Vizcardo Martínez Administration Superintendent Percy Quea Díaz Human Resources Superintendent Eduardo Molinari Arroyo Head of Community Relations Alex Huaraca Aylas Head of Mine (Advance and Development) Since 06/11/2019 Since 09/01/2019 118 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Julcani Jaime Jimenez Tuse Carlos Montes Moya Unit General Superintendent Geology Superintendent Yackson Enrique Figueroa Cruz Plant Superintendent Mirko Martinez Neira Ivan Carhuaz Castro Alfredo Angulo S. Rendel Apolo Farias Marco Molina Rosas Mine Superintendent Social Affairs Superintendent Environmental Management Superintendent Safety Superintendent Safety Superintendent Jackson Arriola Céspedes Planning and Projects Superintendent Rommer Mendoza Ramírez Head of Human Resources Since 08/19/2019 Since 09/01/2019 Since 02/01/2019 From 07/08/2019 Since 06/01/2020 Since 09/01/2019 Salvador Salazar Zegarra Head of Administration – Unit Since 12/01/2019 Tambomayo Edgar Roque Ortiz William Agurto Anton Edgard Atencia Daga Antonio Blanco Quiroga Unit Manager Maintenance Superintendent Mine Superintendent Mine Superintendent Roger Ccahuana Figueroa Geology Superintendent Edwin Mendoza Begazo Geology Superintendent Pedro Escudero Jaimes Planning and Engineering Superintendent Fernando Dueñas Aliaga Safety Superintendent Percy Quea Díaz Human Resources Superintendent Cesar Jacobo Nolasco Plant Superintendent Jimmy Gabriel Espinoza Environmental Management Superintendent Segundo Salazar Silva Social Affairs Superintendent Since 01/01/2018 Since 10/01/2018 From 02/01/2018 Since 07/01/2020 Since 01/01/2020 Since 03/01/2020 Since 11/01/2018 Since 03/01/2020 Since 01/01/2020 San Gabriel Ricardo Huancaya Delgado Project Manager – San Gabriel Alicia Sotelo Rendón Project Superintendent Danny Valencia Galvan Head of Community Relations Eduardo Cuellar Bohorquez Head of District Explorations Julio Ugarte Luna Environmental Management Superintendent Huber Usuriaga Najera Head of Mine Javier Rendon Lopez -Torres Head of Mine Geology Jackson Durand Liñan Edgardo Torres Suarez Safety Engineer Safety Engineer Since 05/01/2019 From 04/15/2019 Since 09/01/2019 Since 06/01/2020 Since 09/01/2019 Since 04/01/2019 Since 02/01/2020 Since 10/14/2019 Since 01/01/2018 To 03/19/2020 (passed away) To 06/30/2018 – Tr. to UCH To 12/31/2019 – Tr. To UCH To 12/20/2020 – termination 119 Members of the Management La Zanja Kenny Regalado Vasquez General Superintendent – Unit Jesus Guerra Molina General Superintendent – Unit Robinson Paredes Abanto Plant Superintendent From 03/06/2019 Since 10/02/2020 To 09/30/2020 – termination Humberto Núñez Flores Environmental Management Superintendent Since 12/02/2019 CIA. Minera Coimolache Gary Samuel Chircca Ayesta Unit Manager Since 07/01/2017 Juan Calizaya Yufra Manuel Aranda Villar Geology Superintendent Mine Superintendent César Esquivel Saavedra Administration Superintendent Segundo Velasquez Miranda Plant Superintendent Victor Orihuela Vega Angel Francia Meza Human Resources Superintendent Human Resources Superintendent Since 07/01/2018 Since 09/01/2018 Since 10/01/2020 To 09/30/2020 – Tr. to Brocal Conenhua Carlos Herrera B. Mario Borda C. David Giraldo Ch. Fabio Mallqui A. El Molle Verde Ruben Valer Cruces Julio Ayquipa Tapia Technical Manager Operations and Maintenance Superintendent Since 03/01/2019 Operations Superintendent Engineering Superintendent Project Manager Head of Process – Project Angel Fernandez Canchos Head of Environmental Management – Unit Ruben Fernandez Soto George Flores Caso Javier Maguiña Aliaga Walter Rondinelli Zaga Walter Rondinelli Zaga Project Superintendent Head of Project Control Head of Mine Social Affairs Superintendent Social Affairs Superintendent Jose Luis Tafur Cabrera Head of Planning – Unit Francisco Javier Veliz Mamani Geology Superintendent To 07/05/2020 – termination To 07/31/2020 – termination Since 09/15/2020 (went back to El Molle) To 07/31/2020 – termination 120 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Rio Seco Jaime Díaz Yosa Unit Manager José Luis Lama Manayay Research and Development Superintendent Giovani Loayza Montenegro Plant Operations Superintendent Sandra Medina Vega Felipe Gonzales Bernal Safety Superintendent General Maintenance Superintendent Javier Vasquez Delgado Human Resources Coordinator – Unit Eduardo Solis Encinas Head of Processes – Plant Since 01/01/2018 Since 03/11/2019 Since 05/23/2019 Since 09/01/2020 SOC. Minera El Brocal Marco Oyanguren Leon Daniel Roca Fabian Hector Alzamora Benites El Brocal Manager Mine Manager Process Manager Marco Calderon Marmanillo Mine General Superintendent Raul Olivares Jurado Hugo Araoz Zevallos Wilder Cabrera Teran Project Optimization Manager – El Brocal Environmental Superintendent Project Superintendent Carlos Camacho Delgado Superintendent of Underground Mine Ops. Sergio Gallesi Guanilo Dante Gavidia Cannon Plant Process Superintendent Planning and Engineering Superintendent Moises Mascco Cotaquispe Plant Maintenance Superintendent Ivan Monteagudo Gonzales Development and Explorations General Superintendent Armando Muñoz Santillana Social Affairs Superintendent Marco Negron Tunjar Gino Ojeda Moret Victor Orihuela Vega Kely Santos Perez Ivan Turco Aliaga Safety Superintendent Administration Superintendent Human Resources Superintendent Processes Technical Superintendent Electric Maintenance and Instrumentation Superintendent Marco Villalobos Oliva Maintenance Planning Superintendent To 12/03/2020 – termination Since 01/14/2020 Since 09/01/2020 Since 10/01/2020 To 12/02/2020 – termination 121 CAREER OF MANAGEMENT AND BOARD MEMBERS Roque Benavides Chairman of the Board of Directors Civil Engineer from Pontificia Universidad Católica del Perú with a Master’s Degree in Business Administration by Henley, University of Reading, United Kingdom. He completed the Management Development Program at Harvard Business School, United States, and the Advanced Management Program at Templeton College, University of Oxford, United Kingdom. He has worked at Buenaventura since 1977, and is Director of Sociedad Minera El Brocal and Banco de Crédito del Peru (BCP). He was Director of UNACEM from 2010 to 2020. the National He served as President of Confederation of Private Business Institutions (CONFIEP, in Spanish) for two periods, the last of which was completed in February 2019. He has also been Chairman of the National Society for Mining, Oil and Energy (SNMPE). He is Chairman of the Board of Trustees of Universidad Nacional de Ingeniería (UNI, in Spanish) since 2020. He is also President of the Institute of Mining Safety (ISEM, in Spanish) and has been a member of the Fulbright Commission in Peru since 2019. Nicole Bernex Director Member of the Board of Directors of BVN since January 2018. She holds a Ph.D. in Geography (1975) and a Master’s Degree in Geography (1971) by the Université Paul-Valéry, Montpellier, France. She has been Professor of the Department of Humanities at Pontificia Universidad Católica del Perú (PUCP) since 1984; Academic Director of the Center for Research in Applied Geography of said university from 1984 to 2018; Chairman of the Board of Directors of the Scientific Institute of Water since 2018; President of the Geographical Society of Lima since July 2016; and member of the Board of Directors of 2030 Water Resource Group Peru. Member of the Global Water Partnership Global Technical Committee (2014-2017) and is Emeritus President of the Global Water Partnership Peru. Vice-President of the National Academy of Sciences. She has also been Director for Latin America and the Caribbean of the Scientific Committee of the United Nations Convention to Combat Desertification, coordinator of various research programs and consultant to different international entities (SAP-BM, UNDP, FAO and others). She has over 150 publications. William Champion Director He holds a Bachelor’s Degree in Chemical Engineering and Biology by the University of Arizona. He has been a member of the Board of Directors since January 2016. He is Director of PJSC Polyus, a large Russian gold company. He is also Director of US-based Peabody Energy, a producer of thermal and metallurgical coal. More than 40 years of executive, managerial and operational experience in the mining sector. He worked at Rio Tinto PLC from 2002 to 2014, holding various positions: CEO of Rio Tinto Coal Australia, CEO of Rio Tinto Diamonds and President and CEO of Kennecott Utah Copper. He also worked at Phelps Dodge Mining Company from 1984 to 1995, where he held various positions (President of Phelps Dodge Chile). 122 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Diego de la Torre Director Felipe Ortiz de Zevallos Director Industrial Engineer from UN with a Master’s Degree in Business Administration by the University of Rochester, graduate of the OPM Program at Harvard University School of Business. In addition to various institutional (NON-professional), academic and business activities, he has been Founder and President of APOYO since 1977. He was Senior Professor and Rector of Universidad del Pacífico (2004- 2006), (NO and) Ambassador of Peru to the US (2006-2009); and President of Asociación Civili Transparencia. IPAE Award 1990. Marco Antonio Zaldívar García Independent Director Chartered Public Accountant from Universidad de Lima, graduated from the PAD Management Development Program at Universidad de Piura, and MBA from Adolfo Ibáñez School of Management, United States. He is Independent Director of various companies such as Backus & Johnston, Banco Santander and Cementos Pacasmayo. He has served as Chairman of the Board of Directors of the Lima Stock Exchange (BVL) and Second Vice- Chairman of CONFIEP, among other positions. Bachelor’s Degree in Business Administration by Universidad del Pacífico in Lima, and an MBA by the London Business School, England. He is co-founder and Chairman of the Board of Directors of La Viga, Quikrete Peru, Aleteia Capital and Bodega RAS. Member of the advisory board of the David Rockefeller Center for Latin American Studies at Harvard University and the international council of CEAPI in Madrid. He has been professor at Universidad del Pacífico and director of PPX Mining, Endeavor Peru, IPAE, IPE, CAPECO, Museum of Art of Lima, and Peru 2021. Since 2005 he has been President of the United Nations Global Compact in Peru. In 2013 he received the “Integral Entrepreneur” award from the Latin American Business Council (CEAL). Selected among the Top 100 Leaders by AACSB International, among other awards. He is Director of Buenaventura since 2017. José Miguel Morales Director Lawyer from the PUCP. He completed the Stanford University Business School Training Program. Chief Lawyer of the company since 1970 and General Counsel from 1993 to 2010. He has been a Senior Partner of the Aurelio García Sayán Law Firm since 2007 and has been working since 1965 in this firm. Director of five associated companies and several other non-mining companies. He was President of the Mining and Petroleum Law Institute, the National Society for Mining, Oil and Energy, and CONIPEP. He is currently President of the Entrepreneurs for Education Association. 123 Career of Management and Board Members Leandro García, CEO General Manager He holds a Bachelor’s Degree in Business Administration and Accounting from Universidad del Pacífico and a Master’s Degree in Business Administration from the University of Miami, Florida. He completed the Advanced Management Program at Harvard Business School, United States, in 2017. He worked at Buenaventura from 1990 to 1997 as Chief of Treasury and served as Finance Manager of Sociedad Minera El Brocal until 2000. In 2011 he rejoined the company as Comptroller General and in 2017 he became Vice-President of Finance and Administration. He was appointed CEO-General Manager of Buenaventura in September 2020. He is also General Manager of Sociedad Minera El Brocal. He was General Manager of Consorcio Energético Huancavelica (Conenhua) and Empresa de Generación Huanza until 2020, as well as General Manager of Boticas BTL until 2005 and Boticas Inkafarma until 2011. He was Director of Química Suiza Retail, a business that manages Boticas Mi Farma pharmacy chain, from 2016 to 2018. Currently, he is Director of Compañía Minera Coimolache, Compañía Minera Colquirrumi, Compañía Minera Condesa, Consorcio Energético Huancavelica (Conenhua), CONTACTO Corredores de Seguros, Empresa de Generación Huanza, Rio Seco Industrial Processing Plant and Sociedad Minera El Brocal, as well as Alternate Director of Sociedad Minera Cerro Verde and member of the Yanacocha Executive Committee. Raúl Benavides Vice-President, Business Development He holds a Bachelor’s Degree in Mining Engineering by the Missouri-Rolla University. He holds a Master’s Degree in Mining Administration by Pennsylvania State University and completed the Advanced Management Program at Harvard Business School (AMP-160). He is currently Director of the Institute of Mining Engineers of Peru (IIMP). He is also founder and President of the Institute of Mining Safety (ISEM). He is currently President of CETEMIN, technical mining school. He has worked at Buenaventura since 1980 and is Director of 11 associated companies. Daniel Domínguez Vice-President, Finance and Administration in Economics He holds a Bachelor’s Degree by Universidad del Pacífico and a Master’s Degree in Business Administration by the same university. He successfully completed the General Management Program at Harvard Business School in 2015, and the Corporate Finance Program at London Business School in 2010. He joined Buenaventura 20 years ago, having started his career at INMINSUR (former subsidiary company) as Head of Treasury. He was then transferred to Buenaventura, where he has held various positions, such as Head of Treasury, from 2003 to 2012; Director of Treasury and Financial Planning, from 2012 to 2015; Financial Planning and Investor Relations Manager, from 2016 to 2017; and Logistics Manager, from 2017 to 2020. 124 2020 ANNUAL REPORT / THE HEALTH AND INTEGRITY OF EVERYONE IS OUR PRIORITY Alejandro Hermoza Vice-President, Sustainability Juan Carlos Ortiz Vice-President, Operations Mechanical engineer from the University of Maryland, he holds a Master’s Degree in Engineering by the same university and a Master’s Degree in Administration by Universidad Peruana de Ciencias Aplicadas – UPC. He worked as Development Manager at the National Confederation of Private Business Institutions (CONFIEP) and works at Buenaventura since 2003 where he has held the positions of Community Relations Manager (2008- 2011), Assistant Manager of Administration and Human Resources (2003-2008) and Vice-President of Sustainability (2008 to date). He has been an alternate member of the Yanacocha Executive Committee since 2014. In 2011 he graduated from the Advanced Management Program at Harvard Business School (AMP). Mining Engineer from Pontificia Universidad Católica del Perú (1992), with a Master’s Degree in Engineering by Pennsylvania State University, United States, with a major in Mining Engineering Management. Before Buenaventura, he had served as Technical Central Manager of Compañía Minera Volcan, a polymetallic mining company and one of the largest producers of zinc, lead and silver in the world. Previously, he had been Corporate Operations Manager at Compañía Minera Milpo (now part of Nexa Resources Group), where he was in charge of operations at Cerro Lindo, Atacocha and El Porvenir. During his professional development he has served in different operations in Latin and project management positions America. He is currently Director of the Institute of Mining Engineers of Peru. 125 126 2020 ANNUAL REPORT

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