Buenaventura Announces Second Quarter and Six-Month 2016 Results

Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE:BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, announced today results for the second quarter (2Q16) and six-month (6M16) periods ended June 30, 2016. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non GAAP basis and are stated in U.S. dollars (US$).

Second Quarter 2016 Highlights:

• In 2Q16, EBITDA from direct operations was US$ 109.4 million, a 270% increase compared to US$ 29.6 million reported in 2Q15. Adjusted EBITDA (including associated companies) increased 84% (US$ 188.9 million in 2Q16 compared to the US$ 102.4 million in 2Q15).
• All In Sustaining Cost (AISC) decreased 34% in 2Q16 (US$ 610/oz in 2Q16 compared to the US$ 929/oz in 2Q15). This confirms the cost reduction trend, already shown in the 1Q16.
• Total attributable production in 2Q16 was 153k gold ounces and 6.0 million silver ounces, compared to 181k gold ounces and 4.4 million silver ounces in 2Q15.
• The Tambomayo project remains on schedule and within budget. Total project progress is at 81%. Production ramp up is expected by 4Q16.
• Buenaventura raised US$ 275 million in long-term debt. The proceeds were mainly used to reprofile its current short-term debt (US$ 245 million).
• At San Gabriel the Public Hearing was successfully held on June 17, as an important step in the process receiving the Environmental Impact Assessment approval by the end of the 2016.

Financial Highlights (in millions of US$, except EPS figures):
				2Q16				2Q15				Var%				6M16				6M15				Var%
Total Revenues				285.3				243.9				17%				512.6				483.4				6%
Operating Profit				60.5				-35.5				N.A.				73.6				-39.2				N.A.
EBITDA Direct Operations				109.4				29.6				270%				170.5				74.6				129%
Adjusted EBITDA (Inc Associates)				188.9				102.4				84%				334.8				236.2				42%
Net Income				55.5				-18.7				N.A.				107.0				-1.4				N.A.
EPS*				0.22				-0.07				N.A.				0.42				-0.01				N.A.

(*) as of June 30, 2016 Buenaventura had 254,186,867 outstanding shares.

Operating Revenues

During 2Q16, net sales were US$ 279.4 million, an 18% increase compared to the US$ 236.6 million reported in 2Q15. This was mainly explained by an increase in gold and silver prices as well additional volume sold of all metals.

The higher revenues from our operations partially offset a royalty income decrease of 21%, to US$ 5.9 million in 2Q16 compared to the US$ 7.4 reported in 2Q15. This was due to lower revenues at Yanacocha (19% lower QoQ).

Operating Highlights				2Q16				2Q15				Var%				6M16				6M15				Var%
Net Sales (in millions of US$)				279.4				236.6				18%				500.1				466.9				7%
Average Realized Gold Price (US$/oz) 1 2				1,275				1,185				8%				1,242				1,203				3%
Average Realized Gold Price (US$/oz) inc. Affiliates 3				1,268				1,187				7%				1,232				1,206				2%
Average Realized Silver Price (US$/oz) 1 2				17.80				16.18				10%				16.14				15.76				2%
Average Realized Lead Price (US$/MT) 1 2				1,783				1,918				-7%				1,783				1,791				0%
Average Realized Zinc Price (US$/MT) 1 2				2,112				2,145				-2%				1,894				2,103				-10%
Average Realized Copper Price (US$/MT) 1 2				4,754				5,150				-8%				4,587				5,124				-10%

Volume Sold				2Q16				2Q15				Var%				6M16				6M15				Var%
Gold Oz Direct Operations 1				92,752				86,272				8%				173,741				180,109				-4%
Gold Oz inc Associated Companies 3				174,827				187,074				-7%				346,917				400,767				-13%
Silver Oz 1				5,634,615				4,723,560				19%				10,949,395				9,438,198				16%
Lead MT 1				7,669				6,309				22%				14,236				15,678				-9%
Zinc MT 1				15,484				13,364				16%				27,826				26,899				3%
Copper MT 1				10,572				8,831				20%				21,670				12,465				74%

(1)			Buenaventura’s Direct Operations includes 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal
(2)			The realized price considers the adjustments of quotational periods
(3)			Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 100% of El Brocal, 40.95% of Coimolache and 43.65% of Yanacocha

For 6M16, net sales increased 7%, from US$ 466.9 million in 6M15 to US$ 500.1 million in 6M16. Royalty income for 6M16 was US$ 12.5 million (US$ 16.5 million in 2015).

Production and Operating Costs

In 2Q16, Buenaventura’s gold equity production from direct operations was in-line compared to the figure reported in 2Q15 (84,997 gold ounces in 2Q16 vs 86,334 gold ounces in 2Q15). Gold production including associated companies in 2Q16 was 152,884 ounces, 15% lower than the amount reported in the same period 2015. This is explained by a decrease in production from Yanacocha. Silver equity production from direct operations increased 35%, mainly due to higher production at the Uchucchacua mine and the Mallay mine (5.7 million silver ounces in 2Q16 vs 4.2 million silver ounces in 2Q15).

Equity Production				2Q16				2Q15				Var%				6M16				6M15				Var%
Gold Oz Direct Operations1				84,997				86,334				-2%				164,709				165,526				0%
Gold Oz including Associated Companies				152,884				180,585				-15%				311,317				368,053				-15%
Silver Oz Direct Operations1				5,737,314				4,238,092				35%				11,734,124				9,649,014				22%
Silver Oz including Associated Companies				5,976,999				4,363,845				37%				12,190,679				9,908,549				23%
Lead MT				7,065				5,652				25%				14,047				13,092				7%
Zinc MT				12,573				9,660				30%				22,644				21,005				8%
Copper MT Direct Operations1				6,911				5,263				31%				13,370				7,453				79%
Copper MT including Associated Companies				31,609				14,450				119%				62,233				26,160				138%

Orcopampa’s (100% owned by Buenaventura)
Production
								2Q16				2Q15				Var%				6M16				6M15				Var%
Gold				Oz				47,826				51,921				-8%				91,962				101,989				-10%
Silver				Oz				166,186				133,401				25%				313,600				245,611				28%

Cost Applicable to Sales
								2Q16				2Q15				Var%				6M16				6M15				Var%
Gold				US$/Oz				704				694				1%				696				696				0%

Gold production at Orcopampa decreased 8% in 2Q16 (compared to 2Q15) mainly due to lower ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 2Q16 was US$ 704/oz of gold, in line with the Cost Applicable to Sales (CAS) reported in 2Q15.

Gold production guidance for 2016 is 190k – 200k ounces.

1	Direct Operation production includes 100% of Buenaventura’s operating units, 53.06% of La Zanja, 59.6% of El Brocal (since May 2016) and 40.10% of Coimolache.

Uchucchacua (100% owned by Buenaventura)
Production
								2Q16				2Q15				Var%				6M16				6M15				Var%
Silver				Oz				3,921,199				2,497,189				57%				8,083,174				6,026,362				34%
Zinc				MT				1,890				1,212				56%				3,615				2,798				29%
Lead				MT				2,591				1,470				76%				5,097				3,529				44%

Cost Applicable to Sales
								2Q16				2Q15				Var%				6M16				6M15				Var%
Silver				US$/Oz				11.11				15.67				-29%				10.75				15.04				-29%

Silver production in 2Q16 increased 57% compared to 2Q15, due to higher volumes of ore treated (29-day stoppage in May 2015) and higher ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 2Q16 decreased 29% compared to 2Q15, primarily due to lower labor expenses resulting from a reduced headcount and lower reagent cost and consumption.

Silver production guidance for 2016 is 15.5 million – 16.5 million ounces.

Mallay (100% owned by Buenaventura)
Production
								2Q16				2Q15				Var%				6M16				6M15				Var%
Silver				Oz				431,346				297,777				45%				839,964				605,031				39%
Zinc				MT				2,632				2,141				23%				5,396				4,320				25%
Lead				MT				1,873				1,776				5%				3,942				3,428				15%

Cost Applicable to Sales
								2Q16				2Q15				Var%				6M16				6M15				Var%
Silver				US$/Oz				12.57				13.58				-7%				12.27				13.94				-12%

Silver production in 2Q16 increased 45% compared to 2Q15, due to increased amounts of ore treated (Appendix 2). Cost Applicable to Sales (CAS) in 2Q16 was 7% lower compared to 2Q15 due to more volume sold, lower reagent cost and consumption.

Silver production guidance for 2016 is 1.5 million – 1.9 million ounces.

Julcani (100% owned by Buenaventura)

Production

2Q16

2Q15

Var%

6M16

6M15

Var%

Silver

Oz

837,937

786,628

7%

1,690,989

1,602,980

5%

Cost Applicable to Sales
								2Q16				2Q15				Var%				6M16				6M15				Var%
Silver				US$/Oz				11.40				12.29				-7%				11.05				12.62				-12%

Silver production in 2Q16 increased 7% compared to 2Q15 production, mainly due to a higher ore grade (Appendix 2). Cost Applicable to Sales (CAS) in 2Q16 was 7% lower than 2Q15, primarily due to fewer meters drifted and lower reagents cost and consumption, despite lower volume sold.

Silver production guidance for 2016 is 3.0 million – 3.4 million ounces.

La Zanja (53.06% owned by Buenaventura)
Production
								2Q16				2Q15				Var%				6M16				6M15				Var%
Gold				Oz				35,384				37,254				-5%				69,577				67,709				3%
Silver				Oz				49,468				67,817				-27%				108,703				163,125				-33%

Cost Applicable to Sales
								2Q16				2Q15				Var%				6M16				6M15				Var%
Gold				US$/Oz				533				822				-35%				535				803				-33%

Gold production in 2Q16 decreased 5% compared to 2Q15. CAS in 2Q16 decreased 35% compared to 2Q15, primarily due to i) lower headcount generated by new synergies with Tantahuatay mine, ii) lower reagent prices and consumption, and iii) lower contractor expenses due to better prices.

Gold production guidance for 2016 is 130k – 140k ounces.

Tantahuatay (40.10% owned by Buenaventura)
Production
								2Q16				2Q15				Var%				6M16				6M15				Var%
Gold				Oz				36,733				32,139				14%				71,295				62,346				14%
Silver				Oz				180,578				178,695				1%				424,568				338,959				25%

Cost Applicable to Sales
								2Q16				2Q15				Var%				6M16				6M15				Var%
Gold				US$/Oz				469				497				-6%				449				575				-22%

Gold production in 2Q16 increased 14% compared to the figure reported in 2Q15. CAS in 2Q16 decreased 6% compared to 2Q15 mainly due to lower reagent consumption and prices.

Gold production guidance for 2016 is 145k – 155k ounces.

El Brocal (59.26%* owned by Buenaventura)
Production
								2Q16				2Q15				Var%				6M16				6M15				Var%
Copper				MT				11,677				9,580				22%				23,020				13,450				71%
Zinc				MT				13,725				11,664				18%				23,641				25,683				-8%
Silver				Oz				480,818				768,385				-37%				1,007,541				1,750,639				-42%

Cost Applicable to Sales
								2Q16				2Q15				Var%				6M16				6M15				Var%
Copper				US$/MT				4,815				5,297				-9%				4,808				5,366				-10%
Zinc				US$/MT				1,688				1,659				2%				1,610				1,578				2%

During 2Q16, Copper production increased 22% compared to 2Q15, due to a higher ore volume treated and ore grade. Moreover, in 2Q16 zinc production increased 18% due to higher ore treated and recovery rate.

(*) Since May 2016, the new ownership of El Brocal is 59.26%.

In 2Q16, Zinc CAS was in line with the Cost Applicable to Sales (CAS) reported in 2Q15. Copper CAS in 2Q16 decreased 9% compared to 2Q15 mainly due lower commercial deductions per ton due the renegotiation of the commercial contracts.

Zinc production guidance for 2016 is 60k – 70k MT, while copper production guidance for 2016 is 35k – 45k MT.

General and Administrative Expenses

General and administrative expenses in 2Q16 were US$ 19.8 million, 8% higher compared to the US$ 18.3 million in 2Q15. For 6M16, the expense was US$ 41.2 million (US$ 39.0 million in 6M15).

Exploration in Non-Operating Areas

Exploration in non-operating areas during 2Q16 was US$ 5.0 million compared with the US$ 9.7 million in 2Q15. During the period, Buenaventura’s main exploration efforts were focused on the Tambomayo project (US$ 1.71 million), San Gabriel project (US$ 0.96 million) and Marcapunta (US$ 0.88 million). For 6M16, the expense was US$ 8.5 million (US$ 20.4 million in 6M15).

Share in Associated Companies

During 2Q16, Buenaventura’s share in associated companies was US$ 20.7 million, compared to US$ 12.0 million reported in 2Q15, composed by:

Share in the Result of Associates (in millions of US$)				2Q16				2Q15				Var %				6M16				6M15				Var %
Cerro Verde				15.8				(0.2)				N.A.				34.8				7.8				347%
Coimolache				6.4				3.9				64%				12.1				6.0				103%
Yanacocha				(1.5)				8.3				N.A.				2.2				34.5				-94%
Total				20.7				12.0				73%				49.1				48.2				2%

YANACOCHA

At Yanacocha (43.65% owned by Buenaventura), during 2Q16, gold production was 155,524 ounces, 28% lower than 2Q15 production (215,924 ounces). For 6M16, gold production was 335,872 ounces, 28% lower than 463,979 ounces in 6M15.

Gold production guidance at Yanacocha for 2016 is 630k – 660k ounces.

In 2Q16, Yanacocha reported a net loss of US$ 3.5 million compared to a net income of US$ 18.9 million reported in 2Q15. CAS in 2Q16 was US$ 790/oz, 22% higher than the US$ 648/oz reported in 2Q15 mainly due to: i) a higher inventory write-down (US$ 26.0 million in 2Q16 compared to US$ 17.9 million in 2Q15), and ii) lower volume sold (154,486 gold ounces in 2Q16 vs 203,413 gold ounces in 2Q15).

Capital expenditures at Yanacocha were US$ 22.3 million in 2Q16, while for 6M16 was US$ 36.0 million.

Currently, Yanacocha is focusing its exploration efforts on the Quecher Main project. An oxide deposit that could extend Yanacocha operation mine life to 2024. This project is currently in the feasibility stage of development and could potentially add an average of 200,000 ounces gold per year starting in 2020.

CERRO VERDE

At Cerro Verde (19.58% owned by Buenaventura), during 2Q16 copper production was 126,143 MT (24,699 MT attributable to Buenaventura), a 169% increase compared to 2Q15 (46,920 MT and 9,187 MT attributable to Buenaventura). For 6M16, copper production was 249,557 MT (48,863 MT attributable to Buenaventura).

During 2Q16, Cerro Verde reported a net income of US$ 80.8 million compared to net loss of US$ 0.9 million in 2Q15. This was primarily due to: i) a lower cash cost, and ii) more volume sold. For 6M16, net income was US$ 177.7 million (compared to US$ 39.8 million in 6M15).

Capital expenditures at Cerro Verde were US$ 143.3 million in 2Q16, and US$ 306.3 million in 6M16.

Copper production guidance at Cerro Verde for 2016 is 500k MT – 550k MT.

COIMOLACHE (Tantahuatay operation)

At Coimolache (40.10% owned by Buenaventura), attributable contribution to net income in 2Q16 was US$ 6.4 million (US$ 3.9 million in 2Q15). For 6M16, the contribution was US$ 12.1 million, compared to US$ 6.0 million reported in 6M15.

Project Development and Exploration

The Tambomayo Project (100% ownership)

• Detailed engineering currently at 100% of development.
• Overall project progress is at 81% (As of July 2016)
  • Exploration and mine development are at 100% of progress.
  • The construction of the facilities are at 70% of progress.
• CAPEX: US$ 340 M (Total disbursement as of 2Q16 US$ 232 M):
  • Exploration and mine development US$ 122 M (Disbursement as of 2Q16 US$ 122 M).
  • Civil works and Equipment US$ 218 M (Disbursement as of 2Q16 US$ 110 M).

The San Gabriel Project (100% ownership)

• The project has been rescheduled in order to preserve cash flow.
• Environmental Impact Assessment (EIA) of the project´s construction is expected to be approved in 4Q16 (the Public Audience was successfully held in June).
• Objective for 2S16:
  • Drilling program: 7,000 meters in order to confirm resources and certainty
  • Metallurgical studies to be completed in order to improve recovery in the first years of production

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded, precious metals company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold and silver and other metals via wholly owned mines as well as through its participation in joint exploration projects.

Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, El Brocal, La Zanja and Coimolache) and is developing the Tambomayo and San Gabriel projects.

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corp.), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

For a printed version of the Company’s 2015 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to the Company’s, Yanacocha’s and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.

APPENDIX 1
Equity Participation in Subsidiaries and Associates (as of June 30, 2016)
				BVN				Operating
				Equity %				Mines / Business
El Molle Verde S.A.C*				100.00				Trapiche project
Minera La Zanja S.A*				53.06				La Zanja
Sociedad Minera El Brocal S.A.A*				59.26				Colquijirca and Marcapunta
Compañía Minera Coimolache S.A **				40.10				Tantahuatay
Minera Yanacocha S.R.L **				43.65				Yanacocha
Sociedad Minera Cerro Verde S.A.A **				19.58				Cerro Verde
Processadora Industrial Rio Seco S.A*				100.00				Rio Seco chemical plant
Consorcio Energético de Huancavelica S.A*				100.00				Energy – Huanza Hydroelectrical plant
Buenaventura Ingenieros S.A*				100.00				Engineering Consultant

(*) Consolidates

(**) Equity Accounting

APPENDIX 2
								GOLD PRODUCTION
								2Q16				2Q15				%				6M16				6M15				%
Mining Unit				Operating Results				Underground
Orcopampa				Ore Milled DMT				118,341				114,421				3%				228,930				222,836				3%
				Ore Grade OZ/MT				0.42				0.47				-9%				0.43				0.47				-8%
				Recovery Rate %				94.9%				95.6%				-1%				95.5%				96.0%				-1%
				Ounces Produced*				47,826				51,921				-8%				91,962				101,989				-10%
Mining Unit				Operating Results				Open Pit
La Zanja				Ounces Produced				35,384				37,254				-5%				69,577				67,709				3%
Tantahuatay				Ounces Produced				36,733				32,139				14%				71,295				62,346				14%
* Includes ounces from retreatment of taling dams

								SILVER PRODUCTION
								2Q16				2Q15				%				6M16				6M15				%
Mining Unit				Operating Results				Underground
Uchucchacua				Ore Milled DMT				304,241				209,949				45%				622,623				492,522				26%
				Ore Grade OZ/MT				15.37				14.16				9%				15.49				14.58				6%
				Recovery Rate %				83.9%				84.0%				0%				83.8%				83.9%				0%
				Ounces Produced				3,921,199				2,497,189				57%				8,083,174				6,026,362				34%
Julcani				Ore Milled DMT				43,796				44,306				-1%				88,778				87,988				1%
				Ore Grade OZ/MT				19.97				18.67				7%				19.91				19.14				4%
				Recovery Rate %				95.8%				95.1%				1%				95.7%				95.2%				1%
				Ounces Produced				837,937				786,628				7%				1,690,989				1,602,980				5%
Mallay				Ore Milled DMT				52,413				36,615				43%				100,959				73,424				38%
				Ore Grade OZ/MT				8.95				8.66				3%				8.97				8.71				3%
				Recovery Rate %				92.0%				93.9%				-2%				92.8%				94.6%				-2%
				Ounces Produced				431,346				297,777				45%				839,964				605,031				39%
Mining Unit				Operating Results				Open Pit
Colquijirca				Ounces Produced				480,818				768,385				-37%				1,007,541				1,750,639				-42%

								ZINC PRODUCTION
								2Q16				2Q15				%				6M16				6M15				%
Mining Unit				Operating Results				Underground
Uchucchacua				Ore Milled DMT				304,241				209,949				45%				622,623				492,522				26%
				Ore Grade %				1.17%				1.08%				8%				1.15%				1.07%				8%
				Recovery Rate %				52.88%				52.6%				1%				50.2%				53.1%				-5%
				MT Produced				1,890				1,212				56%				3,615				2,798				29%
Mallay				Ore Milled DMT				52,413				36,615				43%				100,959				73,424				38%
				Ore Grade %				5.7%				6.9%				-17%				6.10%				6.63%				-8%
				Recovery Rate %				88.2%				84.9%				4%				87.6%				88.8%				-1%
				MT Produced				2,632				2,141				23%				5,396				4,320				25%
Mining Unit				Operating Results				Open Pit
Colquijirca				MT Produced				13,725				11,664				18%				23,641				25,683				-8%

APPENDIX 3: EBITDA Reconciliation (in thousand US$)
							2Q16					2Q15					6M16					6M15
Net Income							58,473					-31,490					109,721					-21,242
Add / Substract:							50,921					61,060					60,820					95,833
Provision for income tax, net							14,197					-64					7,408					10,363
Share in associated companies by the equity method, net							-20,675					-11,966					-49,072					-48,240
Interest income							-1,965					-970					-4,312					-1,614
Interest expense							7,694					8,269					15,674					14,144
Loss on currency exchange difference							891					1,264					-5,488					3,581
Long Term Compensation provision							590					33					590					135
Depreciation and Amortization							45,842					61,355					92,680					109,514
Workers´ participation provision							2,418					-89					3,694					383
Impairment of long-term lived assets							0					3,803					0					3,803
Write-Down adjustment							0					0					0					0
Loss from discontinued operations							1,929					-575					-354					3,764
EBITDA Buenaventura Direct Operations							109,394					29,570					170,541					74,591
EBITDA Yanacocha (43.65%)							20,221					48,931					45,625					112,515
EBITDA Cerro Verde (19.58%)							46,315					15,153					94,548					32,858
EBITDA Coimolache (40.10%)							12,935					8,775					24,055					16,205
EBITDA Buenaventura + All Associates							188,865					102,430					334,770					236,169

Note:

EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.

EBITDA (including associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Yanacocha) (2) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (3) Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.

Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities, determined in accordance with IFRS, as an indicator of cash flows or as a measure of liquidity.

APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION

Reconciliation of Costs Applicable to Sales and Cost Applicable to Sales per Unit Sold

Cost applicable to sales consists of cost of sales, excluding depreciation and amortization, plus selling expenses. Cost applicable to sales per unit sold for each mine consists of cost applicable to sales for a particular metal produced at a given mine divided by the volume of such metal produced at such mine in the specified period. We note that cost applicable to sales is not directly comparable to the cash operating cost figures disclosed in previously furnished earnings releases.

Cost applicable to sales and Cost applicable to sales per unit of mineral sold are not measures of financial performance under IFRS, and may not be comparable to similarly titled measures of other companies. We consider Cost applicable to sales and Cost applicable to sales per unit of mineral sold to be key measures in managing and evaluating our operating performance. These measures are widely reported in the precious metals industry as a benchmark for performance, but do not have standardized meanings. You should not consider Cost applicable to sales or Cost applicable to sales per unit of mineral sold as alternatives to cost of sales determined in accordance with IFRS, as indicators of our operating performance. Cost applicable to sales and Cost applicable to sales per unit of mineral sold are calculated without adjusting for by-product revenue amounts.

The tables below set forth (i) a reconciliation of consolidated Cost of sales, excluding depreciation and amortization to consolidated Cost applicable to sales, (ii) reconciliations of the components of Cost applicable to sales (by mine and mineral) to the corresponding consolidated line items set forth on our consolidated statements of profit or loss for the three and six months ended June 30, 2014 and 2015, and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units. The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and six months ended June 30, 2014 and 2015 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.

Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization, to consolidated Cost applicable to sales:
				For the 3 months ended June 30				For the 6 months ended June 30
				2016		2015		2016		2015
				(in thousands of US$)
Consolidated Cost of sales excluding depreciation and amortization				126,383		147,515		241,793		281,307
Add:
Consolidated Exploration in units in operation				22,105		22,618		41,221		45,018
Consolidated Commercial deductions				59,375		53,568		113,717		90,054
Consolidated Selling expenses				5,342		3,893		10,115		8,046
Consolidated Cost applicable to sales				213,205		227,594		406,846		424,425

Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization (by mine and mineral) to consolidated Cost of sales:
	For the 3 months ended Mar 31				For the 6 months ended June 30
	2016		2015		2016		2015
Cost of sales by mine and mineral	(in thousands of US$)
Julcani, Gold	5		23		5		34
Julcani, Silver	5,077		8,214		9,082		12,688
Julcani, Lead	498		693		885		1,139
Julcani, Copper	21		88		49		147
Mallay, Gold	245		0		364		0
Mallay, Silver	2,577		1,788		4,668		3,834
Mallay, Lead	1,230		1,351		2,525		2,537
Mallay, Zinc	1,872		1,683		3,381		3,340
Orcopampa, Gold	20,761		23,330		42,532		54,022
Orcopampa, Silver	959		872		2,040		1,822
Orcopampa, Copper	0		0		6		6
Uchucchacua, Gold	31		2		48		2
Uchucchacua, Silver	24,885		25,055		46,443		50,203
Uchucchacua, Lead	1,363		1,584		2,670		2,903
Uchucchacua, Zinc	1,047		2,269		1,931		3,018
La Zanja, Gold	24,049		29,630		41,767		54,315
La Zanja, Silver	398		740		834		1,864
El Brocal, Gold	1,805		877		3,769		1,310
El Brocal, Silver	2,429		3,834		5,131		9,810
El Brocal, Lead	2,262		2,080		4,419		6,863
El Brocal, Zinc	10,684		9,608		17,974		20,063
El Brocal, Copper	21,485		20,750		45,595		28,881
Non Mining Units	2,702		13,043		5,676		22,504
Consolidated Cost of sales, excluding depreciation and amortization	126,383		147,515		241,793		281,307

Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units:
				For the 3 months ended Mar 31				For the 6 months ended June 30
				2016		2015		2016		2015
Exploration expenses in units in operation by mine and mineral				(in thousands of US$)
Julcani, Gold				3		12		3		17
Julcani, Silver				2,602		4,184		4,813		6,370
Julcani, Lead				255		353		469		572
Julcani, Copper				11		45		26		74
Mallay, Gold				89		0		130		0
Mallay, Silver				940		797		1,668		1,479
Mallay, Lead				449		602		902		978
Mallay, Zinc				683		750		1,208		1,288
Orcopampa, Gold				9,392		9,778		17,579		21,297
Orcopampa, Silver				434		366		843		718
Orcopampa, Copper				0		0		2		2
Uchucchacua, Gold				8		0		13		0
Uchucchacua, Silver				6,598		4,957		12,335		10,909
Uchucchacua, Lead				361		313		709		631
Uchucchacua, Zinc				277		449		513		656
La Zanja, Gold				3		12		7		25
La Zanja, Silver				0		0		0		1
El Brocal, Gold				0		0		0		0
El Brocal, Silver				0		0		0		0
El Brocal, Lead				0		0		0		0
El Brocal, Zinc				0		0		0		0
El Brocal, Copper				0		0		0		0
Non Mining Units				0		0		0		0
Consolidated Exploration expenses in units in operation				22,105		22,618		41,221		45,018

Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) to consolidated Commercial deductions:
				For the 3 months ended Mar 31				For the 6 months ended June 30
				2016		2015		2016		2015
Commercial Deductions in units in operation by mine and mineral				(in thousands of US$)
Julcani, Gold				1		7		1		9
Julcani, Silver				1,435		2,682		2,870		4,010
Julcani, Lead				140		225		275		352
Julcani, Copper				7		30		18		49
Mallay, Gold				80		0		124		0
Mallay, Silver				1,149		920		2,259		1,799
Mallay, Lead				550		682		1,231		1,188
Mallay, Zinc				1,302		1,235		2,672		2,093
Orcopampa, Gold				48		64		150		120
Orcopampa, Silver				0		0		16		0
Orcopampa, Copper				0		0		1		1
Uchucchacua, Gold				12		1		18		1
Uchucchacua, Silver				10,384		8,179		19,640		16,142
Uchucchacua, Lead				561		495		1,129		921
Uchucchacua, Zinc				1,431		2,237		2,743		3,127
La Zanja, Gold				107		39		165		63
La Zanja, Silver				7		0		8		0
El Brocal, Gold				2,408		1,098		4,602		1,635
El Brocal, Silver				2,092		3,361		4,120		6,946
El Brocal, Lead				1,266		1,078		2,321		3,271
El Brocal, Zinc				8,599		6,282		13,954		12,088
El Brocal, Copper				27,796		24,953		55,401		36,241
Non Mining Units				0		0		0		0
Consolidated Commercial deductions in units in operation				59,375		53,568		113,717		90,054

Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses:
	For the 3 months ended Mar 31				For the 6 months ended June 30
	2016		2015		2016		2015
Selling expenses by mine and mineral	(in thousands of US$)
Julcani, Gold	0		1		0		2
Julcani, Silver	207		344		385		584
Julcani, Lead	20		29		38		52
Julcani, Copper	1		4		2		7
Mallay, Gold	17		0		26		0
Mallay, Silver	176		133		337		272
Mallay, Lead	84		101		182		180
Mallay, Zinc	128		126		244		237
Orcopampa, Gold	161		192		320		442
Orcopampa, Silver	7		7		15		15
Orcopampa, Copper	0		0		0		0
Uchucchacua, Gold	2		0		2		0
Uchucchacua, Silver	1,214		543		2,023		1,351
Uchucchacua, Lead	67		34		116		78
Uchucchacua, Zinc	51		49		84		81
La Zanja, Gold	269		353		486		655
La Zanja, Silver	4		9		10		22
El Brocal, Gold	131		37		251		65
El Brocal, Silver	176		160		342		485
El Brocal, Lead	164		87		294		340
El Brocal, Zinc	776		402		1,197		993
El Brocal, Copper	1,560		869		3,036		1,429
Non Mining Units	127		413		725		758
Consolidated Selling expenses	5,342		3,893		10,115		8,046

			JULCANI
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			5			5,077			498			-			21			5,600			23			8,214			693			-			88			9,019
Add:
Exploration Expenses (US$000)			3			2,602			255			-			11			2,871			12			4,184			353			-			45			4,594
Commercial Deductions (US$000)			1			1,435			140			-			7			1,583			7			2,682			225			-			30			2,944
Selling Expenses (US$000)			0			207			20			-			1			228			1			344			29			-			4			377
Cost Applicable to Sales (US$000)			9			9,321			913			-			39			10,282			43			15,425			1,300			-			168			16,935
Divide:
Volume Sold			11			817,511			787			-			13			Not Applicable			49			1,254,805			926			-			39			Not Applicable
CAS			812			11.40			1,160			-			3,015			Not Applicable			872			12.29			1,404			-			4,258			Not Applicable

				JULCANI
				6M 2016																		6M 2015
				GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)				5			9,082			885			-			49			10,021			34			12,688			1,139			-			147			14,009
Add:
Exploration Expenses (US$000)				3			4,813			469			-			26			5,311			17			6,370			572			-			74			7,033
Commercial Deductions (US$000)				1			2,870			275			-			18			3,165			9			4,010			352			-			49			4,420
Selling Expenses (US$000)				0			385			38			-			2			425			2			584			52			-			7			645
Cost Applicable to Sales (US$000)				9			17,151			1,666			-			96			18,922			62			23,653			2,115			-			277			26,107
Divide:
Volume Sold				11			1,551,735			1,365			-			31			Not Applicable			64			1,873,579			1,399			-			58			Not Applicable
CAS				847			11.05			1,220			-			3,057			Not Applicable			974			12.62			1,512			-			4,741			Not Applicable

			MALLAY
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			245			2,577			1,230			1,872			-			5,923			-			1,788			1,351			1,683			-			4,822
Add:
Exploration Expenses (US$000)			89			940			449			683			-			2,161			-			797			602			750			-			2,148
Commercial Deductions (US$000)			80			1,149			550			1,302			-			3,081			-			920			682			1,235			-			2,837
Selling Expenses (US$000)			17			176			84			128			-			404			-			133			101			126			-			360
Cost Applicable to Sales (US$000)			430			4,842			2,312			3,985			-			11,569			-			3,638			2,736			3,793			-			10,167
Divide:
Volume Sold			459			385,120			1,771			2,231			-			Not Applicable			-			267,856			1,654			1,841			-			Not Applicable
CAS			937			12.57			1,305			1,786			-			Not Applicable			-			13.58			1,654			2,060			-			Not Applicable

			MALLAY
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			364			4,668			2,525			3,381			-			10,938			-			3,834			2,537			3,340			-			9,711
Add:
Exploration Expenses (US$000)			130			1,668			902			1,208			-			3,909			-			1,479			978			1,288			-			3,745
Commercial Deductions (US$000)			124			2,259			1,231			2,672			-			6,285			-			1,799			1,188			2,093			-			5,080
Selling Expenses (US$000)			26			337			182			244			-			790			-			272			180			237			-			688
Cost Applicable to Sales (US$000)			644			8,932			4,841			7,506			-			21,922			-			7,384			4,883			6,958			-			19,224
Divide:
Volume Sold			699			727,710			3,570			4,526			-			Not Applicable			-			529,674			3,110			3,477			-			Not Applicable
CAS			921			12.27			1,356			1,658			-			Not Applicable			-			13.94			1,570			2,001			-			Not Applicable

			ORCOPAMPA
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			20,761			959			-			-			-			21,720			23,330			872			-			-			-			24,202
Add:															-
Exploration Expenses (US$000)			9,392			434			-			-			-			9,826			9,778			366			-			-			-			10,144
Commercial Deductions (US$000)			48			-			-			-			-			48			64			-			-			-			-			64
Selling Expenses (US$000)			161			7			-			-			-			168			192			7			-			-			-			199
Cost Applicable to Sales (US$000)			30,362			1,400			-			-			-			31,762			33,364			1,245			-			-			-			34,609
Divide:
Volume Sold			43,130			155,889			-			-			-			Not Applicable			48,047			133,795			-			-			-			Not Applicable
CAS			704			8.98			-			-			-			Not Applicable			694			9.31			-			-			-			Not Applicable

			ORCOPAMPA
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			42,532			2,040			-			-			6			44,578			54,022			1,822			-			-			6			55,851
Add:
Exploration Expenses (US$000)			17,579			843			-			-			2			18,424			21,297			718			-			-			2			22,018
Commercial Deductions (US$000)			150			16			-			-			1			167			120			0			-			-			1			121
Selling Expenses (US$000)			320			15			-			-			0			335			442			15			-			-			0			457
Cost Applicable to Sales (US$000)			60,580			2,914			-			-			9			63,504			75,881			2,556			-			-			10			78,447
Divide:
Volume Sold			87,081			342,097			-			-			3			Not Applicable			108,957			279,184			-			-			3			Not Applicable
CAS			696			8.52			-			-			3,073			Not Applicable			696			9.15			-			-			3,171			Not Applicable

			UCHUCCHACUA
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			31			24,885			1,363			1,047			-			27,326			2			25,055			1,584			2,269			-			28,910
Add:
Exploration Expenses (US$000)			8			6,598			361			277			-			7,245			0			4,957			313			449			-			5,720
Commercial Deductions (US$000)			12			10,384			561			1,431			-			12,388			1			8,179			495			2,237			-			10,911
Selling Expenses (US$000)			2			1,214			67			51			-			1,333			0			543			34			49			-			627
Cost Applicable to Sales (US$000)			53			43,080			2,353			2,806			-			48,292			3			38,734			2,427			5,004			-			46,167
Divide:
Volume Sold			68			3,876,108			2,199			1,367			-			Not Applicable			3			2,472,030			1,273			1,701			-			Not Applicable
CAS			782			11.11			1,070			2,052			-			Not Applicable			1,124			15.67			1,907			2,942			-			Not Applicable

			UCHUCCHACUA
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			48			46,443			2,670			1,931			-			51,092			2			50,203			2,903			3,018			-			56,126
Add:
Exploration Expenses (US$000)			13			12,335			709			513			-			13,570			0			10,909			631			656			-			12,196
Commercial Deductions (US$000)			18			19,640			1,129			2,743			-			23,530			1			16,142			921			3,127			-			20,190
Selling Expenses (US$000)			2			2,023			116			84			-			2,225			0			1,351			78			81			-			1,510
Cost Applicable to Sales (US$000)			81			80,440			4,625			5,271			-			90,417			3			78,604			4,532			6,883			-			90,022
Divide:
Volume Sold			101			7,484,129			3,990			2,728			-			Not Applicable			3			5,226,729			2,736			2,415			-			Not Applicable
CAS			802			10.75			1,159			1,932			-			Not Applicable			1,101			15.04			1,657			2,850			-			Not Applicable

			LA ZANJA
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			24,049			398			-			-			-			24,447			29,630			740			-			-			-			30,370
Add:
Exploration Expenses (US$000)			3			0			-			-			-			3			12			0			-			-			-			13
Commercial Deductions (US$000)			107			7			-			-			-			114			39			-			-			-			-			39
Selling Expenses (US$000)			269			4			-			-			-			274			353			9			-			-			-			362
Cost Applicable to Sales (US$000)			24,428			410			-			-			-			24,838			30,035			749			-			-			-			30,784
Divide:
Volume Sold			45,856			57,602			-			-			-			Not Applicable			36,518			68,376			-			-			-			Not Applicable
CAS			533			7.11			-			-			-			Not Applicable			822			10.96			-			-			-			Not Applicable

			LA ZANJA
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			41,767			834			-			-			-			42,601			54,315			1,864			-			-			-			56,179
Add:
Exploration Expenses (US$000)			7			0			-			-			-			7			25			1			-			-			-			26
Commercial Deductions (US$000)			165			8			-			-			-			173			63			-			-			-			-			63
Selling Expenses (US$000)			486			10			-			-			-			496			655			22			-			-			-			677
Cost Applicable to Sales (US$000)			42,425			851			-			-			-			43,277			55,058			1,888			-			-			-			56,945
Divide:
Volume Sold			79,288			126,389			-			-			-			Not Applicable			68,598			176,299			-			-			-			Not Applicable
CAS			535			6.74			-			-			-			Not Applicable			803			10.71			-			-			-			Not Applicable

			BROCAL
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			1,805			2,429			2,262			10,684			21,485			38,665			877			3,834			2,080			9,608			20,750			37,149
Add:
Exploration Expenses (US$000)			-			-			-			-			-			-			-			-			-			-			-			-
Commercial Deductions (US$000)			2,408			2,092			1,266			8,599			27,796			42,160			1,098			3,361			1,078			6,282			24,953			36,773
Selling Expenses (US$000)			131			176			164			776			1,560			2,808			37			160			87			402			869			1,555
Cost Applicable to Sales (US$000)			4,344			4,698			3,692			20,059			50,841			83,633			2,012			7,356			3,245			16,292			46,572			75,477
Divide:
Volume Sold			3,228			342,385			2,912			11,886			10,560			Not Applicable			1,656			526,698			2,456			9,822			8,792			Not Applicable
CAS			1,346			13.72			1,268			1,688			4,815			Not Applicable			1,215			13.97			1,321			1,659			5,297			Not Applicable

			BROCAL
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			3,769			5,131			4,419			17,974			45,595			76,887			1,310			9,810			6,863			20,063			28,881			66,927
Add:
Exploration Expenses (US$000)			-			-			-			-			-			-			-			-			-			-			-			-
Commercial Deductions (US$000)			4,602			4,120			2,321			13,954			55,401			80,397			1,635			6,946			3,271			12,088			36,241			60,180
Selling Expenses (US$000)			251			342			294			1,197			3,036			5,119			65			485			340			993			1,429			3,311
Cost Applicable to Sales (US$000)			8,622			9,592			7,033			33,124			104,032			162,403			3,010			17,241			10,474			33,143			66,550			130,418
Divide:
Volume Sold			6,561			717,335			5,310			20,573			21,636			Not Applicable			2,488			1,352,732			8,432			21,007			12,403			Not Applicable
CAS			1,314			13.37			1,324			1,610			4,808			Not Applicable			1,210			12.75			1,242			1,578			5,366			Not Applicable

			NON MINING COMPANIES
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			-			-			-			-			-			2,702			-			-			-			-			-			13,043
Add:
Selling Expenses (US$000)			-			-			-			-			-			127			-			-			-			-			-			413
Total (US$000)			-			-			-			-			-			2,829			-			-			-			-			-			13,456

			NON MINING COMPANIES
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			-			-			-			-			-			5,676			-			-			-			-			-			22,504
Add:
Selling Expenses (US$000)			-			-			-			-			-			725			-			-			-			-			-			758
Total (US$000)			-			-			-			-			-			6,401			-			-			-			-			-			23,262

			BUENAVENTURA CONSOLIDATED
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			46,896			36,325			5,353			13,602			21,506			126,383			53,862			40,504			5,708			13,559			20,839			147,515
Add:
Exploration Expenses (US$000)			9,495			10,574			1,065			960			11			22,105			9,802			10,304			1,268			1,198			45			22,618
Commercial Deductions (US$000)			2,657			15,067			2,516			11,333			27,802			59,375			1,208			15,141			2,480			9,755			24,984			53,568
Selling Expenses (US$000)			579			1,785			335			955			1,561			5,342			583			1,197			251			577			872			3,893
Cost Applicable to Sales (US$000)			59,627			63,751			9,269			26,850			50,880			213,205			65,455			67,146			9,708			25,089			46,740			227,594
Divide:
Volume Sold			92,752			5,634,615			7,669			15,484			10,572			Not Applicable			86,272			4,723,560			6,309			13,364			8,831			Not Applicable
CAS			643			11.31			1,209			1,734			4,812			Not Applicable			759			14.22			1,539			1,877			5,292			Not Applicable

			BUENAVENTURA CONSOLIDATED
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			88,485			68,196			10,499			23,286			45,651			241,793			109,683			80,223			13,442			26,421			29,034			281,307
Add:
Exploration Expenses (US$000)			17,731			19,660			2,081			1,721			29			41,221			21,340			19,477			2,181			1,944			76			45,018
Commercial Deductions (US$000)			5,060			28,913			4,955			19,368			55,420			113,717			1,827			28,897			5,732			17,308			36,290			90,054
Selling Expenses (US$000)			1,085			3,111			630			1,525			3,038			10,115			1,163			2,729			650			1,310			1,436			8,046
Cost Applicable to Sales (US$000)			112,362			119,880			18,165			45,900			104,137			406,846			134,013			131,326			22,004			46,983			66,837			424,425
Divide:
Volume Sold			173,741			10,949,395			14,236			27,826			21,670			Not Applicable			180,109			9,438,198			15,678			26,899			12,465			Not Applicable
CAS			647			10.95			1,276			1,650			4,806			Not Applicable			744			13.91			1,404			1,747			5,362			Not Applicable

			COIMOLACHE
			2Q 2016																		2Q 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			13,952			993			-			-			-			14,945			12,873			963			-			-			-			13,836
Add:
Exploration Expenses (US$000)			2,756			196			-			-			-			2,952			1,752			131			-			-			-			1,883
Commercial Deductions (US$000)			190			17			-			-			-			207			89			7			-			-			-			95
Selling Expenses (US$000)			270			19			-			-			-			289			214			16			-			-			-			230
Cost Applicable to Sales (US$000)			17,167			1,225			-			-			-			18,392			14,927			1,117			-			-			-			16,044
Divide:
Volume Sold			36,596			191,812			-			-			-			Not Applicable			30,024			162,106			-			-			-			Not Applicable
CAS			469			6.39			-			-			-			Not Applicable			497			6.89			-			-			-			Not Applicable

			COIMOLACHE
			6M 2016																		6M 2015
			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL			GOLD (OZ)			SILVER (OZ)			LEAD (MT)			ZINC (MT)			COPPER (MT)			TOTAL
Cost of Sales (without D&A) (US$000)			26,374			2,100			-			-			-			28,474			25,349			1,913			-			-			-			27,262
Add:
Exploration Expenses (US$000)			3,950			315			-			-			-			4,265			8,852			668			-			-			-			9,520
Commercial Deductions (US$000)			320			33			-			-			-			353			289			23			-			-			-			312
Selling Expenses (US$000)			512			41			-			-			-			553			440			33			-			-			-			473
Cost Applicable to Sales (US$000)			31,157			2,488			-			-			-			33,645			34,930			2,637			-			-			-			37,567
Divide:
Volume Sold			69,404			430,003			-			-			-			Not Applicable			60,746			331,507			-			-			-			Not Applicable
CAS			449			5.79			-			-			-			Not Applicable			575			7.95			-			-			-			Not Applicable

APPENDIX 5: ALL-IN SUSTAINING COST

All-in Sustaining Cost for 2Q16
		Buenaventura1				La Zanja				Tantahuatay				Attributable 2
		2Q16				2Q16				2Q16				2Q16
Au Ounces Sold BVN			88,930
Au Ounces bought from La Zanja			-45,262
Au Ounces Sold Net			43,669				45,566				36,596				82,519
		2Q16				2Q16				2Q16				2Q16
Income Statement & Cash Flow		US$ 000'	US$/Oz Au			US$ 000'	US$/Oz Au			US$ 000'	US$/Oz Au			US$ 000'	US$/Oz Au
Cost of Sales3		78,168	1,790			19,818	435			14,945	408			94,676	1,147
Exploration in Operating Units		22,102	506			678	15			2,952.23	81			23,645	287
Royalties		4,682	107			0	0			0	0			4,682	57
Commercial Deductions4		17,101	392			1,188	26			207	6			17,814	216
Selling Expenses		2,136	49			273.75	6			289	8			2,397	29
Administrative Expenses5		11,680	267			534	12			498	14			12,163	147
Other Expenses		0	0			2,204	48			1,332	36			1,704	21
Other Incomes		-1,408	-32			-3,353	-74			-1,709	-47			-3,872	-47
Administrative charges		0	0			615.74	14			182	5			400	5
Sustaining Capex6		5,098	117			2,550	56			5,065	138			8,482	103
By-product Credit		-109,859	-2,516			-1,071	-24			-3,332	-91			-111,763	-1,354
All-in Sustaining Cost		29,700	680			23,436	514			20,430	558			50,326	610
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.

Notes:
1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.
2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

All-in Sustaining Cost for 2Q15
			Buenaventura1					La Zanja					Tantahuatay					Attributable Production2
			2Q15					2Q15					2Q15					2Q15
Au Ounces Sold BVN					84,616
Au Ounces bought from La Zanja					-36,518
Au Ounces Sold Net					48,098					39,651					30,024					81,175
			2Q15					2Q15					2Q15					2Q15
Income Statement & Cash Flow			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au
Cost of Sales3			65,094		1,353			33,793		852			13,836		461			88,572		1,091
Exploration in Operating Units			22,605		470			2,600		66			1,883		63			24,739		305
Royalties			4,801		100			0		0			0		0			4,801		59
Commercial Deductions4			16,756		348			945		24			95		3			17,296		213
Selling Expenses			1,565		33			362		9			231		8			1,849		23
Administrative Expenses5			10,167		211			366		9			394		13			10,519		130
Other Expenses			0		0			4,518		114			1,862		62			3,144		39
Other Incomes			-1,266		-26			-5,549		-140			-2,155		-72			-5,074		-63
Other administrative charges			0		0			858		22			126		4			506		6
Sustaining Capex6			4,599		96			9,406		237			9,178		306			13,270		163
By-product Credit			-82,469		-1,715			-1,249		-32			-2,643		-88			-84,192		-1,037
All-in Sustaining Cost			41,852		870			46,048		1,161			22,808		760			75,430		929
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.

Notes:
1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.
2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

All-in Sustaining Cost for 6M16
			Buenaventura1					La Zanja					Tantahuatay					Attributable 2
			6M16					6M16					6M16					6M16
Au Ounces Sold BVN					166,478
Au Ounces bought from La Zanja					-78,586
Au Ounces Sold Net					87,892					71,996					69,404					153,921
			6M16					6M16					6M16					6M16
Income Statement & Cash Flow			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au
Cost of Sales3			136,579		1,554			36,824		511			28,474		410			167,535		1,088
Exploration in Operating Units			41,214		469			1,272		18			4,265.25		61			43,599		283
Royalties			9,356		106			0		0			0		0			9,356		61
Commercial Deductions4			33,147		377			-1,808		-25			353		5			32,329		210
Selling Expenses			3,777		43			496		7			553		8			4,262		28
Administrative Expenses5			24,418		278			1,026		14			1,053		15			25,384		165
Other Expenses			0		0			4,094		57			2,139		31			3,030		20
Other Incomes			-2,169		-25			-7,156		-99			-2,820		-41			-7,097		-46
Administrative charges			0		0			1,199		17			504		7			838		5
Sustaining Capex6			16,078		183			2,821		39			8,872		128			21,132		137
By-product Credit			-193,054		-2,196			-1,786		-25			-6,896		-99			-196,766		-1,278
All-in Sustaining Cost			69,346		789			36,982		514			36,496		526			103,602		673
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.

Notes:
1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.
2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

All-in Sustaining Cost for 6M15
			Buenaventura1					La Zanja					Tantahuatay					Attributable Production2
			6M15					6M15					6M15					6M15
Au Ounces Sold BVN					177,622
Au Ounces bought from La Zanja					-68,598
Au Ounces Sold Net					109,023					67,628					60,746					169,263
			6M15					6M15					6M15					6M15
Income Statement & Cash Flow			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au			US$ 000'		US$/Oz Au
Cost of Sales3			144,524		1,326			57,182		846			27,262		449			185,796		1,098
Exploration in Operating Units			44,992		413			8,310		123			9,521		157			53,218		314
Royalties			11,600		106			0		0			0		0			11,600		69
Commercial Deductions4			29,810		273			1,639		24			312		5			30,804		182
Selling Expenses			3,302		30			677		10			474		8			3,851		23
Administrative Expenses5			22,749		209			740		11			928		15			23,514		139
Other Expenses			0		0			6,630		98			2,748		45			4,620		27
Other Incomes			-2,471		-23			-9,335		-138			-3,599		-59			-8,867		-52
Other administrative charges			0		0			2,442		36			571		9			1,525		9
Sustaining Capex6			10,009		92			13,536		200			15,552		256			23,427		138
By-product Credit			-150,069		-1,376			-2,636		-39			-5,532		-91			-153,685		-908
All-in Sustaining Cost			114,446		1,050			79,185		1,171			48,236		794			175,802		1,039
*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.

Notes:
1. Non-consolidated financial statements for Compañia De Minas Buenaventura S.A.A.
2. Considers 100% from Compañia De Minas Buenaventura S.A.A., 53.06% from La Zanja and 40.095% from Tantahuatay.
3. For Buenaventura does not consider purchase of concentrate from La Zanja.
4. For all metals produced.
5. For Buenaventura, does not consider management services charged to subsidiaries. For La Zanja does not consider US$ 3.8 MM Impairment.
6. Sustaining Capex + Growth Capex equals Acquisitions of mining concessions, development costs, property, plant and equipment.

APPENDIX 6
Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of Financial Position
As of June 30, 2016 and December 31, 2015
					2016			2015
Assets					US$(000)			US$(000)
Current assets
Cash and cash equivalents					181,452			78,519
Trade and other accounts receivable, net					262,162			219,862
Inventory, net					120,119			101,473
Income tax credit					23,741			45,919
Prepaid expenses					10,366			8,231
Embedded derivatives for concentrate sales, net					17,292			-
Total current assets					615,132			454,004
Assets classified as held for sale					4,905			15,592
					620,037			469,596
Non-current assets
Trade and other accounts receivable, net					177,259			162,567
Inventory, net					14,381			26,029
Investment in associates					1,956,380			2,043,983
Mining concessions, development costs, property, plant and equipment, net					1,782,188			1,747,624
Investment properties, net					10,307			10,719
Deferred income tax asset, net					46,038			41,574
Prepaid expenses					30,868			29,235
Other assets					17,925			15,854
Total non-current assets					4,035,346			4,077,585
Total assets					4,655,383			4,547,181
Liabilities and shareholders’ equity
Current liabilities
Bank loans					54,368			285,302
Trade and other accounts payable					234,385			247,114
Provisions					64,122			49,829
Income tax payable					1,850			2,444
Embedded derivatives for concentrate sales, net					-			1,694
Hedge derivative financial instruments					90			10,643
Financial obligations					36,510			33,394
Total current liabilities					391,325			630,420
Liabilities directly associated with assets classified as held for sale					6,396			20,611
					397,721			651,031
Non-current liabilities
Trade and other accounts payable					18,538			15,057
Provisions					147,664			141,885
Financial obligations					572,393			320,316
Contingent consideration liability					16,994			16,994
Deferred income tax liability, net					7,911			12,662
Total non-current liabilities					763,500			506,914
Total liabilities					1,161,221			1,157,945
Shareholders’ equity
Capital stock					750,497			750,497
Investment shares					1,396			1,396
Additional paid-in capital					219,055			219,055
Legal reserve					162,744			162,714
Other reserves					269			269
Retained earnings					2,136,198			2,024,895
Other reserves of equity					(1,454)			2,240
Shareholders’ equity, net attributable to owners of the parent					3,268,705			3,161,066
Non-controlling interest					225,457			228,170
Total shareholders’ equity					3,494,162			3,389,236
Total liabilities and shareholders’ equity					4,655,383			4,547,181

Compañía de Minas Buenaventura S.A.A. and Subsidiaries
Consolidated Statement of profit or loss
For the three and six-month periods ended June 30, 2016 and 2015
		For the three-month period ended June 30,								For the six-month period ended June 30,
		2016			2015					2016			2015
		US$(000)			US$(000)					US$(000)			US$(000)
Continuing operations
Operating income
Net sales of goods		273,746			214,034					488,826			434,634
Net sales of services		5,693			22,516					11,261			32,307
Royalty income		5,861			7,390					12,546			16,480
Total operating income		285,300			243,940					512,633			483,421
Operating costs
Cost of sales of goods, excluding depreciation and amortization		(115,963	)		(130,223	)				(223,120	)		(250,405	)
Cost of services, excluding depreciation and amortization		(10,420	)		(17,292	)				(18,673	)		(30,902	)
Depreciation and amortization		(45,842	)		(61,355	)				(92,680	)		(109,514	)
Exploration in operating units		(22,105	)		(22,618	)				(41,221	)		(45,018	)
Mining royalties		(5,963	)		(6,482	)				(12,131	)		(14,907	)
Total operating costs		(200,293	)		(237,970	)				(387,825	)		(450,746	)
Gross profit		85,007			5,970					124,808			32,675
Operating expenses, net
Administrative expenses		(19,758	)		(18,299	)				(41,169	)		(38,968	)
Selling expenses		(5,342	)		(3,893	)				(10,115	)		(8,046	)
Exploration in non-operating areas		(4,955	)		(9,704	)				(8,469	)		(20,401	)
Reversal (expense) for provision for contingencies		1,087			(731	)				202			(481	)
Impairment of long-lived assets		-			(3,803	)				-			(3,803	)
Other, net		4,505			(5,072	)				8,320			(220	)
Total operating expenses, net		(24,463	)		(41,502	)				(51,231	)		(71,919	)
Operating profit (loss)		60,544			(35,532	)				73,577			(39,244	)
Other income (expense), net
Share in results of associates under equity method		20,675			11,966					49,072			48,240
Financial income		1,965			970					4,312			1,614
Net gain (loss) from currency exchange difference		(891	)		(1,264	)				5,488			(3,581	)
Financial costs		(7,694	)		(8,269	)				(15,674	)		(14,144	)
Total other income (expense), net		14,055			3,403					43,198			32,129
Profit (loss) before income tax		74,599			(32,129	)				116,775			(7,115	)
Current income tax		(12,214	)		(2,003	)				(19,217	)		(7,380	)
Deferred income tax		(1,983	)		2,067					11,809			(2,983	)
Profit (loss) from continuing operations		60,402			(32,065	)				109,367			(17,478	)
Discontinued operations
Profit (loss) from discontinued operations		(1,929	)		575					354			(3,764	)
Net profit		58,473			(31,490	)				109,721			(21,242	)
Attributable to:
Owners of the parent		55,461			(18,746	)				107,023			(1,427	)
Non-controlling interest		3,012			(12,744	)				2,698			(19,815	)
		58,473			(31,490	)				109,721			(21,242	)
Basic and diluted profit (loss) per share attributable to equity holders
of the parent, stated in U.S. dollars		0.22			(0.07	)				0.42			(0.01	)
Profit (loss) for continuing operations, basic and diluted per share
attributable to equity holders of the parent, expressed in U.S. dollars		0.24			(0.13	)				0.43			(0.07	)
Weighted average number of shares outstanding
(common and investment), in units		253,715,190			253,715,190					253,715,190			253,715,190

Consolidated Statements of cash Flows
For the three and six-month periods ended June 30, 2016 and 2015
		For the three-month period ended June 30,								For the six-month period ended June 30,
		2016			2015					2016			2015
		US$(000)			US$(000)					US$(000)			US$(000)
Operating activities
Proceeds from sales		234,024			250,675					415,845			482,454
Dividends received		2,769			902					136,784			2,959
Value Added Tax recovered		17,779			19,506					70,872			52,873
Royalties received		13,501			9,397					21,058			22,841
Interest received		60			855					1,714			1,797
Payments to suppliers and third-parties		(164,963	)		(183,029	)				(333,019	)		(361,783	)
Payments to employees		(33,389	)		(41,700	)				(69,154	)		(87,028	)
Payments of interest		(14,083	)		(4,129	)				(17,873	)		(9,599	)
Payment of income taxes		(9,304	)		(7,121	)				(11,461	)		(11,262	)
Payments of mining royalties		(4,887	)		(5,684	)				(9,356	)		(11,882	)
Net cash and cash equivalents provided by operating activities		41,507			39,672					205,410			81,370
Investing activities
Proceeds from sales of mining concessions, property, plant and equipment		1,962			1,886					2,072			2,020
Proceeds from sales of intangibles		227			-					227			-
Payments of mining concessions, development costs, property, plant and equipment		(69,340	)		(44,514	)				(121,368	)		(81,632	)
Net cash and cash equivalents used in investing activities		(67,151	)		(42,628	)				(119,069	)		(79,612	)
Financing activities
Increase of bank loans		15,851			-					175,851			90,000
Payment of bank loans		(252,000	)		-					(412,000	)		(40,000	)
Increase of financial obligations		273,814			-					275,000			10,000
Payment of financial obligations		(8,299	)		(4,068	)				(16,883	)		(9,086	)
Dividends paid to non-controlling interest		(1,980	)		(2,640	)				(4,060	)		(5,908	)
Acquisition of non-controlling interest		(1,149	)		-					(1,307	)		-
Increase of restricted current accounts		4,395								(1,988	)		-
Payments of dividends		(9	)		-					(9	)		-
Net cash and cash equivalents provided by (used in) financing activities		30,623			(6,708	)				14,604			45,006
Net increase (decrease) in cash and cash equivalents during the period		4,979			(9,664	)				100,945			46,764
Cash and cash equivalents at the beginning of the period		174,485			134,940					78,519			78,512
Cash and cash equivalents at period-end		179,464			125,276					179,464			125,276
Net change in unrealized gain (loss) on hedge derivates		-			(2,131	)				-			(2,296	)

			For the three-month period ended June 30,							For the six-month period ended June 30,
			2016			2015				2016			2015
			US$(000)			US$(000)				US$(000)			US$(000)
Reconciliation of net profit to cash and cash equivalents provided
by operating activities
Net profit (loss) attributable to owners of the parent			55,461			(18,746	)			107,023			(1,427	)
Plus (less):
Depreciation and amortization			41,781			61,355				92,680			117,808
Net loss (gain) on sales of mining concessions, property, plant and equipment			2,182			1,639				2,072			2,953
Accretion expense of provision for closure of mining units and exploration projects			960			2,560				1,698			2,835
Net loss attributable to non-controlling interest			3,012			(12,744	)			2,698			(19,815	)
Net share in results of associates under equity method			(20,675	)		(11,966	)			(49,072	)		(48,240	)
Provision for estimated fair value of embedded derivatives related to concentrate			(16,928	)		6,061				(29,949	)		(595	)
sales and adjustments on open liquidations
Deferred income tax expense (income)			1,983			(2,067	)			(11,809	)		2,983
Provision return for impairment of inventories			(7,072	)		6,034				(8,854	)		4,782
Net loss (gain) from currency exchange difference			891			1,187				(5,488	)		3,504
Impairment of long-lived assets			-			3,803				-			3,803
Provision for employee bonus			(5,658	)		(8,175	)			-			-
Other net			(675	)		8,379				(587	)		956
Net changes in operating assets and liabilities:
Decrease (increase) in operating assets -
Trade and other accounts receivable			(37,715	)		8,780				(36,178	)		29,474
Inventories			(7,978	)		(3,335	)			1,821			24,466
Income tax credit			10,057			(1,879	)			18,001			(180	)
Prepaid expenses			(558	)		1,539				(6,924	)		2,699
Increase (decrease) in operating liabilities -
Trade and other accounts payable			14,321			20,286				(16,337	)		(14,359	)
Provisions			5,386			(23,941	)			8,425			(32,594	)
Income tax payable			(37	)		-				(594	)		(642	)
Proceeds from dividends			2,769			902				136,784			2,959
Net cash and cash equivalents provided by operating activities			41,507			39,672				205,410			81,370

View source version on businesswire.com: http://www.businesswire.com/news/home/20160726006662/en/

Contact

In Lima:
Carlos Galvez, 511-419-2540
VP & Chief Financial Officer
or
Daniel Dominguez, 511-419-2591
Manager of Financial Planning and Investor Relations
daniel.dominguez@buenaventura.pe
or
Rodrigo Echecopar, 511-419-2609
Investor Relations Coordinator
rodrigo.echecopar@buenaventura.pe
or
In New York:
i-advize Corporate Communications
Maria Barona / Rafael Borja
212-406-3691/3693