Buenaventura(BVN) - 2022 Q3 - Quarterly Report

FORM 6-K Filing Information This section details Compañia de Minas Buenaventura S.A.A.'s Form 6-K filing with the SEC for October 2022 Registrant Details This section identifies Compañia de Minas Buenaventura S.A.A. as a foreign issuer filing a Form 6-K report with the SEC for the month of October 2022, indicating it files annual reports under Form 20-F - Registrant: Compañia de Minas Buenaventura S.A.A. (Buenaventura Mining Company Inc.)[1] - Filing Type: Form 6-K, for the month of October 2022[1] - Annual Report Filing: Files under Form 20-F[3] Third Quarter and Nine-Month 2022 Results Overview This overview presents Buenaventura's financial and operational performance for 3Q22 and 9M22, highlighting key metrics and project updates 3Q22 Highlights Buenaventura reported a significant decrease in EBITDA from direct operations and a net loss in 3Q22, despite a substantial improvement in operating cash flow compared to 3Q21 due to a large tax payment in the prior year. The company increased exploration and capital expenditures, aligning with a strategy to extend mine life and advance key projects 3Q22 Key Financial Highlights | Metric | 3Q22 (US$ million) | 3Q21 (US$ million) | Change (%) | | :-------------------------- | :----------------- | :----------------- | :--------- | | EBITDA Direct Operations | 22.2 | 39.5 | -44% | | Operating Cash Flow | 16.1 | -464.3 | N.A. | | Net Loss | -19.8 | -91.9 | -78% | | Exploration (Operating Units) | 20.7 | 17.1 | 21% | | Capital Expenditures | 37.2 | 23.9 | 56% | - Operating Cash Flow improved significantly from US$ -464.3 million in 3Q21 to US$ 16.1 million in 3Q22, primarily due to a US$ 544.2 million tax payment to SUNAT in 3Q21[7] - Buenaventura's cash position was US$ 288.0 million as of September 30, 2022, with Net Debt decreasing to US$ 448.1 million[7] Financial Highlights Buenaventura experienced a decline in total revenues and operating income for both 3Q22 and 9M22 compared to the prior year periods. While 3Q22 net loss significantly narrowed, 9M22 saw a substantial net income due to non-recurring items, leading to a positive EPS for the nine-month period Financial Highlights (in millions of US$, except EPS) | Metric | 3Q22 | 3Q21 | Var (%) | 9M22 | 9M21 | Var (%) | | :---------------------------- | :---- | :---- | :------ | :---- | :---- | :------ | | Total Revenues | 195.4 | 220.4 | -11% | 578.4 | 647.1 | -11% | | Operating Income | -20.0 | -13.6 | 47% | -52.0 | -16.6 | 213% | | EBITDA Direct Operations | 22.2 | 39.5 | -44% | 396.3 | 144.6 | 174% | | EBITDA Including Affiliates | 78.2 | 171.3 | -54% | 669.8 | 511.9 | 31% | | Net Income | -19.8 | -91.9 | -78% | 535.1 | -39.3 | N.A. | | EPS | -0.08 | -0.36 | -78% | 2.11 | -0.15 | N.A. | Operating Revenues Analysis Net sales decreased by 10% year-on-year in 3Q22, primarily driven by lower prices and reduced sales volumes of lead, zinc, and silver. While gold and copper volumes sold increased, their average prices declined, contributing to the overall revenue reduction - 3Q22 net sales were US$ 195.4 million, a 10% decrease from US$ 216.9 million in 3Q21, mainly due to lower prices and volumes of lead, zinc, and silver[9] Average Metal Prices (US$/oz or US$/MT) | Metal | 3Q22 Price | 3Q21 Price | Change (%) | | :----- | :--------- | :--------- | :--------- | | Gold | 1,678 | 1,764 | -5% | | Silver | 17.33 | 23.94 | -28% | | Lead | 1,713 | 2,412 | -29% | | Zinc | 3,412 | 3,048 | 12% | | Copper | 7,261 | 9,488 | -23% | Volume Sold (Oz or MT) | Metal | 3Q22 Volume | 3Q21 Volume | Change (%) | | :----- | :---------- | :---------- | :--------- | | Gold | 45,807 | 40,633 | 13% | | Silver | 1,954,000 | 3,426,079 | -43% | | Lead | 4,129 | 5,918 | -30% | | Zinc | 8,061 | 11,114 | -27% | | Copper | 11,449 | 8,691 | 32% | Production and Operating Costs Overview Buenaventura's 3Q22 equity gold and copper production increased, while silver, lead, and zinc production saw significant year-on-year decreases, primarily due to the suspension of Uchucchacua operations and a revised mine plan at El Brocal. Consolidated production figures reflect similar trends - Equity gold production increased by 2% YoY to 55,837 ounces, and equity copper production increased by 13% YoY to 28,909 MT[11][12] - Silver production decreased by 50% YoY, lead by 33% YoY, and zinc by 36% YoY, mainly due to Uchucchacua's suspension and a mine plan change at El Brocal[11] Consolidated Production (3Q22 vs 3Q21) | Metal | 3Q22 Production | 3Q21 Production | Change (%) | | :----- | :-------------- | :-------------- | :--------- | | Gold | 49,789 Oz | 44,796 Oz | 11% | | Silver | 1,906,679 Oz | 3,898,613 Oz | -51% | | Lead | 4,340 MT | 6,676 MT | -35% | | Zinc | 9,129 MT | 14,254 MT | -36% | | Copper | 12,108 MT | 9,146 MT | 32% | Tambomayo Operations Tambomayo experienced a 23% decrease in gold production in 3Q22 due to mining lower-grade gold areas, which also led to a 1% increase in Cost Applicable to Sales (CAS) for gold. However, silver, zinc, and lead production increased Tambomayo Production & CAS (3Q22 vs 3Q21) | Metric | 3Q22 | 3Q21 | Change (%) | | :---------- | :-------- | :-------- | :--------- | | Gold (Oz) | 13,755 | 17,837 | -23% | | Silver (Oz) | 546,256 | 509,836 | 7% | | Zinc (MT) | 3,446 | 3,397 | 1% | | Lead (MT) | 2,639 | 1,978 | 33% | | Gold CAS (US$/Oz) | 982 | 973 | 1% | - The decrease in gold production was primarily due to production from lower gold grade areas, partially offset by higher lead and zinc grades, aligning with the planned mining sequence[13] Orcopampa Operations Orcopampa significantly increased gold production by 30% in 3Q22, driven by stable production from the Pucara vein. This higher production, coupled with higher gold grades and lower cash costs, resulted in a 30% decrease in gold Cost Applicable to Sales (CAS) Orcopampa Production & CAS (3Q22 vs 3Q21) | Metric | 3Q22 | 3Q21 | Change (%) | | :---------- | :----- | :----- | :--------- | | Gold (Oz) | 20,164 | 15,547 | 30% | | Silver (Oz) | 8,247 | 4,716 | 75% | | Gold CAS (US$/Oz) | 803 | 1,147 | -30% | - Increased gold production was primarily due to stable production from the asset's Pucara vein[15] - The decrease in Gold CAS was mainly due to higher gold grade and lower cash cost[15] La Zanja Operations La Zanja saw a 47% increase in gold production in 3Q22 due to improved access to the ore body after completing pre-stripping activities. However, Cost Applicable to Sales (CAS) for gold increased by 7% due to lower-than-expected gold extraction from the leach pad and raw material cost inflation, leading to a revised mine plan to conclude mining operations by October 2022 La Zanja Production & CAS (3Q22 vs 3Q21) | Metric | 3Q22 | 3Q21 | Change (%) | | :---------- | :----- | :----- | :--------- | | Gold (Oz) | 8,786 | 5,967 | 47% | | Silver (Oz) | 31,665 | 24,011 | 32% | | Gold CAS (US$/Oz) | 1,892 | 1,763 | 7% | - Gold production increased due to the conclusion of Pampa Verde pit (Phase 4) pre-stripping, enabling full access to the ore body[16] - Mine plan updated to reflect OpEx increase from raw materials cost inflation; mining operations to extend only through October 2022, followed by limited pad leaching and exploration for an underground Cu/Au-sulfide project[17] Coimolache Operations Coimolache experienced a 26% decrease in gold production and a 52% decrease in silver production in 3Q22, primarily due to lower grades mined and leach pad constraints. Gold Cost Applicable to Sales (CAS) significantly increased by 76%, partly due to a one-time land purchase transaction Coimolache Production & CAS (3Q22 vs 3Q21) | Metric | 3Q22 | 3Q21 | Change (%) | | :---------- | :----- | :------ | :--------- | | Gold (Oz) | 21,899 | 29,597 | -26% | | Silver (Oz) | 76,133 | 159,072 | -52% | | Gold CAS (US$/Oz) | 1,710 | 973 | 76% | - Production decrease was primarily due to lower grades mined and decreased tonnage for leaching due to permit-related leach pad constraints[19] - The increase in Gold CAS included a one-time land purchase transaction of US$ 234/Oz[19] Uchucchacua Operations Uchucchacua mine remained under suspension in 3Q22, with no production reported. Exploration and mine development are ongoing, and the target to resume production in 2H23 remains unchanged - No silver, zinc, or lead production reported for 3Q22, as operations were suspended[20][21] - Exploration and mine development continue as planned, with a target to resume production in 2H23[22] Julcani Operations Julcani increased silver production by 5% in 3Q22 due to higher silver grades. This, combined with lower cash costs, led to an 18% year-on-year decrease in silver Cost Applicable to Sales (CAS) Julcani Production & CAS (3Q22 vs 3Q21) | Metric | 3Q22 | 3Q21 | Change (%) | | :---------- | :------ | :------ | :--------- | | Silver (Oz) | 692,876 | 657,494 | 5% | | Silver CAS (US$/Oz) | 13.80 | 16.79 | -18% | - Silver production increased primarily due to a higher silver grade[24] - Silver CAS decreased due to a combination of higher grade and lower cash cost[24] El Brocal Operations El Brocal's copper production increased by 32% in 3Q22 due to higher throughput and grades from the Marcapunta underground mine. Conversely, zinc and silver production decreased significantly as part of a planned transition to copper ore and a revised mine plan following a landslide. Copper Cost Applicable to Sales (CAS) slightly decreased, while zinc CAS increased due to a higher stripping ratio El Brocal Production & CAS (3Q22 vs 3Q21) | Metric | 3Q22 | 3Q21 | Change (%) | | :---------- | :---------- | :---------- | :--------- | | Copper (MT) | 12,108 | 9,146 | 32% | | Zinc (MT) | 5,683 | 8,930 | -36% | | Silver (Oz) | 627,635 | 1,482,163 | -58% | | Copper CAS (US$/MT) | 6,690 | 6,819 | -2% | | Zinc CAS (US$/MT) | 2,698 | 1,814 | 49% | - Copper production increased due to increased throughput and Cu grades from the Marcapunta underground mine[26] - Zinc and silver production decreased due to a planned transition from polymetallic to copper ore and a revised mine plan following a landslide in March 2022[26] General and Administrative Expenses General and Administrative expenses for 3Q22 saw a slight decrease of 2% compared to 3Q21 General and Administrative Expenses (US$ million) | Period | 3Q22 | 3Q21 | Change (%) | | :----- | :--- | :--- | :--------- | | G&A | 15.4 | 15.6 | -2% | Exploration Activities Exploration costs in non-operating areas increased in 3Q22, consistent with Buenaventura's strategic focus on extending its mine life (LOM) Exploration Costs in Non-Operating Areas (US$ million) | Period | 3Q22 | 3Q21 | Change (%) | | :----- | :--- | :--- | :--------- | | Costs | 4.2 | 3.5 | 20% | - Increased exploration costs are in line with the Company's strategy to focus on extending LOM[29] Share in Associated Companies Buenaventura's share in associated companies significantly decreased in 3Q22, primarily due to a 64% reduction in its share from Cerro Verde and a 127% decrease from Coimolache Share in the Result of Associates (in millions of US$) | Associate | 3Q22 | 3Q21 | Change (%) | | :--------- | :--- | :--- | :--------- | | Cerro Verde | 20.7 | 57.4 | -64% | | Coimolache | -0.2 | 0.8 | -127% | | Total | 20.4 | 58.2 | -65% | Project Updates Buenaventura provided updates on its key development projects, San Gabriel and Yumpag. Construction activities at San Gabriel are gradually resuming with updated CAPEX guidance, while Yumpag project construction and permitting are on schedule for a 1H24 production target - San Gabriel Project: Construction activities are gradually resuming. CAPEX guidance for San Gabriel is updated to approximately US$ 65.0 million by year-end 2022[7][31] - San Gabriel Project: Engineering and procurement work offsite activities progressed significantly (45% and 67% respectively), reducing project uncertainty[32] - Yumpag Project: Construction and permitting continue according to schedule, with a target to begin production in 1H24[23] Associated Company Performance Buenaventura's associated companies, Cerro Verde and Coimolache, reported mixed financial results in 3Q22. Cerro Verde saw increased copper production but a significant drop in net income due to higher costs and lower copper prices. Coimolache reported an increased net loss Cerro Verde (19.58% owned) Cerro Verde's 3Q22 copper production increased by 7%, with Buenaventura's attributable share also rising. However, net income decreased significantly by 64% due to inflationary cost increases and lower average realized copper prices - 3Q22 copper production was 109,655 MT (7% increase YoY), with 21,471 MT attributable to Buenaventura[34] Cerro Verde Net Income (US$ million) | Period | 3Q22 | 3Q21 | Change (%) | | :----- | :---- | :---- | :--------- | | Income | 105.5 | 293.3 | -64% | - Net income decrease was primarily due to increased costs from inflationary material/supply prices and decreased sales from lower average realized copper prices[35] Coimolache (40.10% owned) Coimolache reported a net loss of US$ 1.0 million in 3Q22, an increase from the US$ 0.4 million net loss in 3Q21 Coimolache Net Loss (US$ million) | Period | 3Q22 | 3Q21 | | :----- | :--- | :--- | | Net Loss | 1.0 | 0.4 | Company Profile and Disclaimers This section provides an overview of Buenaventura's business, operations, and a disclaimer regarding forward-looking statements Company Description Compañía de Minas Buenaventura S.A.A. is Peru's largest publicly traded precious metals mining company, involved in the mining, processing, development, and exploration of gold, silver, and other metals through wholly-owned mines and joint ventures. It also holds a significant stake in Sociedad Minera Cerro Verde, a major copper producer - Buenaventura is Peru's largest publicly-traded precious metals mining company and a major holder of mining rights[38] - The company operates several mines in Peru, including Tambomayo, Orcopampa, Uchucchacua, Julcani, La Zanja, El Brocal, and Coimolache[39] - Buenaventura owns 19.58% of Sociedad Minera Cerro Verde, a significant Peruvian copper producer[40] Note on Forward-Looking Statements This section serves as a disclaimer, indicating that the press release contains forward-looking statements regarding the company's future performance, liquidity, cost management, and project achievements. It highlights that actual results may differ materially due to various risks and uncertainties, including market prices, exploration success, and political/economic developments - The press release contains forward-looking statements regarding the Company's business management, liquidity, impact of COVID-19, financial performance, growth, and future dividends/share repurchases[41] - Forward-looking information involves risks and uncertainties, including those concerning costs, exploration results, market prices of metals, success of joint ventures, and Peruvian political/economic developments[41] Appendices and Financial Statements This section includes detailed appendices on equity participation, production results, and reconciliations for EBITDA, CAS, and AISC, along with interim consolidated financial statements Equity Participation Subsidiaries and Associates (Appendix 1) Appendix 1 details Buenaventura's equity participation in its subsidiaries and associates as of September 30, 2022, outlining ownership percentages and the corresponding operating mines or businesses Equity Participation Subsidiaries and Associates (as of September 30, 2022) | Company Name | BVN Equity % | Operating Mines / Business | | :---------------------------- | :----------- | :------------------------- | | El Molle Verde S.A.C* | 100.00 | Trapiche Project | | Minera La Zanja S.A* | 100.00 | La Zanja | | Sociedad Minera El Brocal S.A.A* | 61.43 | Colquijirca and Marcapunta | | Compañía Minera Coimolache S.A. ** | 40.10 | Tantahuatay | | Sociedad Minera Cerro Verde S.A.A ** | 19.58 | Cerro Verde | | Processadora Industrial Rio Seco S.A* | 100.00 | Rio Seco chemical plant | | Energético de Huancavelica S.A* | 100.00 | | Detailed Production Operating Results (Appendix 2) Appendix 2 provides comprehensive operating results for gold, silver, zinc, and copper production across Buenaventura's various mining units for 3Q22 and 9M22, including ore milled, ore grade, recovery rates, and ounces/MT produced Gold Production Operating Results (3Q22 vs 3Q21) | Mining Unit | Metric | Unit | 3Q22 | 3Q21 | △ % | | :---------- | :--------------- | :----- | :------- | :------- | :------ | | Tambomayo | Ounces Produced | Oz | 13,755 | 17,837 | -23% | | Orcopampa | Ounces Produced | Oz | 20,164 | 15,547 | 30% | | La Zanja | Ounces Produced | Oz | 8,786 | 5,967 | 47% | | Coimolache | Ounces Produced | Oz | 21,899 | 29,597 | -26% | Silver Production Operating Results (3Q22 vs 3Q21) | Mining Unit | Metric | Unit | 3Q22 | 3Q21 | △ % | | :------------ | :-------------- | :--- | :---------- | :---------- | :---- | | Tambomayo | Ounces Produced | Oz | 546,256 | 509,836 | 7% | | Uchucchacua | Ounces Produced | Oz | 0 | 1,220,393 | N.A. | | Julcani | Ounces Produced | Oz | 692,876 | 657,494 | 5% | | Marcapunta | Ounces Produced | Oz | 442,811 | 411,542 | 8% | Zinc Production Operating Results (3Q22 vs 3Q21) | Mining Unit | Metric | Unit | 3Q22 | 3Q21 | △ % | | :---------- | :-------------- | :--- | :---- | :---- | :---- | | Tambomayo | MT Produced | MT | 3,446 | 3,397 | 1% | | Uchucchacua | MT Produced | MT | 0 | 1,928 | N.A. | | Tajo Norte | MT Produced | MT | 5,683 | 8,930 | -36% | Adjusted EBITDA Reconciliation (Appendix 3) Appendix 3 provides a reconciliation of Net Income to EBITDA for Buenaventura's direct operations and including associated companies. It clarifies that EBITDA is a non-GAAP measure and should not be considered an alternative to IFRS operating or net income EBITDA Reconciliation (in thousand US$) | Metric | 3Q22 | 3Q21 | 9M22 | 9M21 | | :---------------------------------------- | :------- | :------- | :------- | :------- | | Net Income | -22,487 | -94,428 | 534,221 | -40,544 | | Depreciation and Amortization in cost of sales | 41,477 | 44,305 | 131,531 | 140,110 | | Share in associated companies by the equity method, net | -20,442 | -58,186 | -118,149 | -82,441 | | EBITDA Buenaventura Direct Operations | 22,246 | 39,471 | 396,271 | 144,639 | | EBITDA Cerro Verde (19.58%) | 52,321 | 120,926 | 261,100 | 331,501 | | EBITDA Coimolache (40.095%) | 3,672 | 10,928 | 12,397 | 35,733 | | EBITDA Buenaventura + All Associates | 78,240 | 171,325 | 669,768 | 511,873 | - EBITDA (Buenaventura Direct Operations) and EBITDA (including associated companies) are non-GAAP measures provided for additional information on operating performance[48] Cost Applicable to Sales Reconciliation (Appendix 4) Appendix 4 provides a detailed reconciliation of Cost of Sales (excluding depreciation and amortization) to Cost Applicable to Sales (CAS) for each mine and mineral. It defines CAS as a key non-GAAP measure for evaluating operating performance, noting it is not comparable to previously disclosed cash operating costs - Cost applicable to sales (CAS) consists of cost of sales (excluding depreciation and amortization), plus selling expenses[49] - CAS and CAS per unit sold are non-GAAP measures considered key for managing and evaluating operating performance in the precious metals industry[50] Consolidated Cost Applicable to Sales (in thousands of US$) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | | :-------------------------------------------- | :-------------------------- | :-------------------------- | | Consolidated Cost of sales excluding D&A | 118,419 | 138,702 | | Add: Consolidated Exploration in units in operation | 20,708 | 17,058 | | Consolidated Commercial deductions | 42,039 | 47,865 | | Consolidated Selling expenses | 5,854 | 4,935 | | Consolidated Cost applicable to sales | 187,020 | 208,561 | All-in Sustaining Cost (AISC) Reconciliation (Appendix 5) Appendix 5 provides a reconciliation of All-in Sustaining Cost (AISC) for 3Q22, 3Q21, 9M22, and 9M21. AISC is presented as a non-consolidated and attributable figure, excluding depreciation, amortization, and exploration in non-operating areas, to offer a comprehensive view of the costs associated with sustaining current mining operations - AISC does not include Depreciation and Amortization, Stoppage of mining units, or Exploration in non-operating areas[64][67][69][71] All-in Sustaining Cost (AISC) for 3Q22 (Attributable) | Metric | Attributable US$ 000' | 3Q22 US$/Oz Au | | :-------------------------- | :-------------------- | :------------- | | Au Ounces Sold | 49,170 | | | Cost of Sales | 61,490 | 1,251 | | Exploration in Operating Units | 16,631 | 338 | | Royalties | 2,789 | 57 | | Commercial Deductions | 7,598 | 155 | | Selling Expenses | 3,039 | 62 | | Administrative Expenses | 10,234 | 208 | | Other, net | -492 | -10 | | Sustaining Capex | 4,605 | 94 | | By-product Credit | -37,767 | -768 | | All-in Sustaining Cost | 68,127 | 1,386 | All-in Sustaining Cost (AISC) for 9M22 (Attributable) | Metric | Attributable US$ 000' | 9M22 US$/Oz Au | | :-------------------------- | :-------------------- | :------------- | | Au Ounces Sold | 138,053 | | | Cost of Sales | 192,580 | 1,395 | | Exploration in Operating Units | 42,801 | 310 | | Royalties | 8,455 | 61 | | Commercial Deductions | 24,540 | 178 | | Selling Expenses | 8,270 | 60 | | Administrative Expenses | 34,509 | 250 | | Other, net | 1,287 | 9 | | Sustaining Capex | 11,522 | 83 | | By-product Credit | -127,329 | -922 | | All-in Sustaining Cost | 196,635 | 1,424 | Interim Condensed Consolidated Financial Statements This section presents the interim condensed consolidated financial statements for Buenaventura, including the statements of financial position, profit or loss, and cash flows for the three and nine-month periods ended September 30, 2022 and 2021, prepared in accordance with IFRS Statements of Financial Position (Balance Sheet) The balance sheet shows a decrease in total assets and current liabilities from December 31, 2021, to September 30, 2022. Cash and cash equivalents decreased, while investments in associates and joint ventures increased. Total equity attributable to owners of the parent significantly increased Key Financial Position Data (US$ 000) | Metric | Sep 30, 2022 | Dec 31, 2021 | | :-------------------------- | :----------- | :----------- | | Cash and cash equivalents | 287,966 | 376,999 | | Total current assets | 590,824 | 739,545 | | Investments in associates and joint venture | 1,512,790 | 1,422,295 | | Total assets | 4,429,918 | 4,561,811 | | Total current liabilities | 327,412 | 580,099 | | Total liabilities | 1,310,767 | 2,023,280 | | Equity attributable to owners of the parent | 2,961,631 | 2,368,326 | | Total equity | 3,119,151 | 2,538,531 | Statements of Profit or Loss (Income Statement) The income statement shows a decrease in total operating income and gross profit for both 3Q22 and 9M22. The company reported a net loss in 3Q22 but a significant net profit for 9M22, largely driven by profit from discontinued operations Key Profit or Loss Data (US$ 000) | Metric | 3Q22 | 3Q21 | 9M22 | 9M21 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | | Total operating income | 195,416 | 220,361 | 578,440 | 647,105 | | Total cost of sales | (189,073) | (203,947) | (550,960) | (582,320) | | Gross profit | 6,343 | 16,414 | 27,480 | 64,785 | | Operating loss | (20,022) | (13,587) | (52,006) | (16,629) | | Share in results of associates and joint venture | 20,442 | 58,186 | 118,149 | 166,449 | | Profit (loss) from continuing operations | (22,549) | (5,276) | 54,352 | 45,848 | | Profit (loss) from discontinued operations | 62 | (89,152) | 479,869 | (86,392) | | Net profit (loss) | (22,487) | (94,428) | 534,221 | (40,544) | | Basic and diluted profit (loss) per share (US$) | (0.08) | (0.36) | 2.11 | (0.15) | Statements of Cash Flows The cash flow statement shows a positive net cash flow from operating activities in 3Q22, a significant improvement from a negative flow in 3Q21 due to a large tax payment in the prior year. Investing activities resulted in a net cash outflow in 3Q22, while financing activities also showed a net outflow, contrasting with a large inflow in 3Q21 from bond and bank loan proceeds Key Cash Flow Data (US$ 000) | Metric | 3Q22 | 3Q21 | 9M22 | 9M21 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net cash flows from (used in) operating activities | 16,134 | (464,304) | 40,853 | (338,408) | | Net cash flows from (used in) investing activities | (34,770) | (23,747) | 262,787 | (54,371) | | Net cash flows from (used in) financing activities | (19,714) | 520,689 | (392,673) | 445,200 | | Increase (decrease) in cash and cash equivalents | (38,350) | 32,638 | (89,033) | 52,421 | | Cash and cash equivalents at period-end | 287,966 | 287,870 | 287,966 | 287,870 | - Operating cash flow in 3Q21 included a US$ 544.2 million payment for tax litigation[75] - 9M22 investing activities benefited from a US$ 300 million gain from the sale of investment in Yanacocha and US$ 45 million from the purchase of shares in La Zanja[75] Reconciliation of Net Profit to Operating Cash Flows This reconciliation details the adjustments made to net profit (loss) to arrive at net cash flows from operating activities, highlighting significant non-cash items and changes in working capital. Key adjustments include share in associates, depreciation, deferred income tax, and changes in receivables and payables Reconciliation of Net Profit to Operating Cash Flows (US$ 000) | Metric | 3Q22 | 3Q21 | 9M22 | 9M21 | | :-------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net profit (loss) | (22,487) | (94,428) | 534,221 | (40,544) | | Share in the results of associates and joint venture | (20,442) | (58,186) | (118,149) | (166,449) | | Depreciation and amortization in Cost of sales | 41,477 | 44,305 | 131,531 | 140,110 | | Decrease (increase) in Trade and other accounts receivable | 27,756 | 47,107 | 82,952 | 47,827 | | Increase (decrease) in Trade and other accounts payable | (15,482) | (1,057) | (83,643) | (8,624) | | Net cash and cash equivalents provided by operating activities | 16,134 | (464,304) | 40,853 | (338,408) | Signature This section formally concludes the Form 6-K report with the required signature and date Report Signature The Form 6-K report was duly signed on October 27, 2022, by Daniel Dominguez, Chief Financial Officer of Compañía de Minas Buenaventura S.A.A., as authorized by the Securities Exchange Act of 1934 - Signed by Daniel Dominguez, Chief Financial Officer, on October 27, 2022[78]