Net sales

12 Months Ended

Dec. 31, 2017

20.

Net sales

(a)

The Group’s revenues are mostly from sales of gold and precious metals in the form of concentrates, including silver-lead, silver-gold, zinc and lead-gold-copper concentrates and ounces of gold. The table below presents the net sales to customers by geographic region and product type:

	2017		2016		2015
	US$(000)		US$(000)		US$(000)
Sales and services by geographic region:
Metal and concentrates sales
Peru		591,185		401,372		345,146
America		464,000		410,154		419,359
Europe		91,414		109,788		60,549
Asia		77,343		94,356		21,215
		1,223,942		1,015,670		846,269

Services rendered
Peru		14,903		28,782		50,839
America		14,794		-		-
		29,697		28,782		50,839
		1,253,639		1,044,452		897,108

Sale by metal:
Gold		511,434		440,603		419,541
Silver		409,775		385,989		313,418
Copper		268,527		224,649		131,356
Zinc		188,023		142,425		102,110
Lead		94,955		58,690		55,445
Manganese sulfate		6,317		5,982		3,649
Indium		66		-		-
		1,479,097		1,258,338		1,025,519

Commercial deductions		(253,939)		(244,414)		(196,145)
Adjustments to prior period liquidations		919		4,611		7,467
Embedded derivatives from sale of concentrate		8,786		880		(388)
Hedge operations		(10,921)		(3,745)		9,816
		1,223,942		1,015,670		846,269
Services rendered		29,697		28,782		50,839

		1,253,639		1,044,452		897,108

(b)

Concentration of sales -

In 2017, the three customers with sales of more than 10 percent of total net sales represented 28, 15 and 10 percent from the total net sales of the Group (three customers by 28, 22 and 22 percent during the year 2016 and; two customers by 66 and 22 percent during the year 2015). As of December 31, 2017, 49 percent of the accounts receivable correspond to these customers (46 percent as of December 31, 2016). These customers are related to the mining business.

The Group's sales of gold and concentrates are delivered to investment banks and national and international well-known companies. Some of these clients have long-term sales contracts that guarantee supplying them the production from the Group’s mines.

Sociedad Minera Cerro Verde S.A.A. [Member]

Sale of goods [Line Items]

Disclosure of revenue [text block]

15.

Sales of goods

(a)

This item is made up as follows:

	For the year ended			For the year ended				For the year ended
	December 31, 2017			December 31, 2016				December 31, 2015
	Pounds(000)	US$(000)		Pounds(000)		US$(000)		Pounds(000)		US$(000)

Copper in concentrate	979,243		2,702,508		995,386		1,967,052		440,071		794,197
Copper cathode	84,679		241,725		109,128		247,431		104,279		259,830
Other (primarily silver and molybdenum concentrate)			267,033				176,357				65,343

Subtotal Sales			3,211,266				2,390,840				1,119,370
Less: Royalty contributions (see Note 2(k))			(8,335)				(6,686)				(3,753)

Total net sales			3,202,931				2,384,154				1,115,617

Sales to related parties totaled US$3.0 billion for the year ended December 31, 2017 (US$2.3 billion for the year ended December 31, 2016 and US$0.9 billion for the year ended December 31, 2015).

As described in Note 2(d), the Company’s copper sales are provisionally priced at shipment. Adjustments to the provisional prices are recognized as gains and losses in sales of goods through the month of settlement. Adjustments to provisional priced copper and molybdenum sales resulted in an increase to net sales of goods totaling US$1.3 million for the year ended December 31, 2017, and an increase of US$86.3 million for the year ended December 31, 2016 and an increase of US$7.9 million for the year ended December 31, 2015.

(b)

The following table shows net sales by geographic region based on the final destination port:

	For the year ended		For the year ended		For the year ended
	December 31, 2017		December 31, 2016		December 31, 2015
	US$(000)		US$(000)		US$(000)

Asia		2,416,826		1,865,346		770,272
Europe		314,092		161,844		65,648
North America		287,174		213,002		79,244
South America (primarily Peru)		193,174		150,648		204,206
		3,211,266		2,390,840		1,119,370
Less: Royalty contributions (see Note 2(k))		(8,335)		(6,686)		(3,753)

Total net sales		3,202,931		2,384,154		1,115,617

(c)

Concentration of sales -

For the year ended December 31, 2017, 94% of the Company’s sales were to related entities (FMC, Sumitomo Metal Mining Company and Climax Molybdenum). For the year ended December 31, 2016 and 2015, 95% and 80%, respectively, of the Company’s sales were to these related entities.

Minera Yanacocha SRL and subsidiary [Member]

Sale of goods [Line Items]

Disclosure of revenue [text block]

15.

Revenue from sales

The Company’s revenues are mainly from sales of gold ounces. The table below presents the net sales to customers by geographic region:

	2017		2016		2015
	US$(000)		US$(000)		US$(000)

Sales and services by geographic region:
Metal sales
Suiza		491,887		558,723		754,335
America		179,018		233,043		315,686
		670,905		791,766		1,070,021
Royalties, note 1(a) and 21		(20,739)		(24,339)		(32,414)
Mining royalties to the government		(4,990)		(6,234)		(6,433)
		645,176		761,193		1,031,174