XML 43 R29.htm IDEA: XBRL DOCUMENT
v3.19.1

Financial obligations | 12 Months Ended
--- | ---
Dec. 31, 2018
Disclosure of Financial obligations [Abstract] |
Disclosure of borrowings [text block] |
| 16. | Financial obligations
| (a) | This caption is made up as follow:
|  | 2018 |  |  | 2017 |
|  | US$(000) |  |  | US$(000) |
Compañía de Minas Buenaventura S.A.A.(c) |  |  |  |  |  |  |  |
BBVA Banco Continental |  |  | 61,667 |  |  |  | 61,667 |
Banco de Crédito del Perú |  |  | 61,667 |  |  |  | 61,667 |
CorpBanca New York Branch |  |  | 61,666 |  |  |  | 61,666 |
Banco Internacional del Perú |  |  | 30,000 |  |  |  | 30,000 |
ICBC Perú Bank |  |  | 25,000 |  |  |  | 25,000 |
Banco Latinoamericano de Comercio Exterior S.A. |  |  | 20,000 |  |  |  | 20,000 |
Banco de Sabadell, Miami Branch |  |  | 15,000 |  |  |  | 15,000 |
|  |  | 275,000 |  |  |  | 275,000 |
Debt issuance costs |  |  | (3,618 | ) |  |  | (2,425 | )
|  |  | 271,382 |  |  |  | 272,575 |
Sociedad Minera El Brocal S.A.A. |  |  |  |  |  |  |  |
Banco de Crédito del Perú – Finance leaseback |  |  | 94,490 |  |  |  | 119,464 |
Debt issuance costs |  |  | (976 | ) |  |  | (1,377 | )
|  |  | 93,514 |  |  |  | 118,087 |
Mid-term financial obligation |  |  | 75,000 |  |  |  | 80,000 |
|  |  | 168,514 |  |  |  | 198,087 |
Empresa de Generación Huanza S.A. |  |  |  |  |  |  |  |
Banco de Crédito del Perú – Finance lease |  |  | 147,166 |  |  |  | 162,411 |
Contacto Corredores de Seguros S.A. |  |  |  |  |  |  |  |
BBVA Banco Continental S.A. – Finance lease |  |  | - |  |  |  | 10 |
Total financial obligations |  |  | 587,062 |  |  |  | 633,083 |
Classification by maturity: |  |  |  |  |  |  |  |
Current portion |  |  | 46,166 |  |  |  | 83,991 |
Non-current portion (e) |  |  | 540,896 |  |  |  | 549,092 |
Total financial obligations |  |  | 587,062 |  |  |  | 633,083 |
| (b) | On June 27, 2016, Buenaventura entered into a long-term finance contract with seven Peruvian and foreign banks, with the following terms and conditions:
| - | Principal: US$275,000,000.
| - | Annual interest rate: Three-month Libor plus 3 % .
| - | Term: 5 years since June 30, 2016, with final maturity in June 30, 2021.
| - | Grace Period: Two years.
| - | Amortization: 6 semiannual installments of US$39,285,714 since July 2018 and a final payment of US$39,285,716 in June 2021.
| - | Guarantee: None. The subsidiaries Compañía Minera Condesa S.A., Inversiones Colquijirca S.A. and Consorcio Energético de Huancavelica S.A. are the guarantors.
As part of the commitments, the Group must meet certain consolidated financial ratios. The main ratios are the following:
| (i) | Debt service coverage ratio: Higher than 4.
| (ii) | Leverage ratio: Less than 3 times since June 30, 2017.
| (iii) | Net consolidated equity value: Higher than US$2,711,388,800.
For the calculation of (i) and (ii), the financial obligations and EBITDA of Empresa de Generación Huanza S.A. are excluded. Additionally, there is a requirement related to the distribution of dividends (until December 31, 2018: up to 20 ​​​​​​​% of the available net income for the previous period; since January 1, 2019: up to the total of net income for the previous period), according to the execution of the dividend policy of the Company. On March 28, 2018, Buenaventura restructured its financial obligation by modifying some of the clauses as follows:
| - | Annual interest rate: Libor of three months plus 2.15% (3% as of December 31, 2017).
| - | Term: 4 years from April 2018, due in April 2022 (as of December 31, 2017, they were 5 years as of June 30, 2016, with final maturity on June 30, 2021).
| - | Amortization of credit: 5 semi-annual installments of US$55 million each since as of April 2020 (as of December 31, 2017 were 6 semi-annual installments of US$39,285,714 as of July 2018 and a final installment of US$39,285,716 in June of 2021).
The compliance of the terms described above is overseen by the Company´s Management. As of December 31, 2018 and 2017, the Company complies with the above financial ratios.
| (c) | Finance leaseback -
On June 9, 2015, the Board of Directors of El Brocal approved the modification of the debt and new payment schedule of the leaseback through sale contracts through the sale of assets with the same value including equipment, machinery and processing plant located in the Colquijirca mining unit. During 2017, El Brocal negotiate a reduction in the fixed rate of the finance leaseback, and agreed the modification of the payment schedule under the following terms and conditions:
| - | Principal: US$166,500,000.
| - | Annual interest rate: Nine-month Libor plus 2.75 percent .
| - | Term: 5.5 years since June 23, 2015, with final maturity in December 2021.
| - | Amortization: Through 22 quarterly variable installments.
In connection with the above financing, El Brocal must comply the following financial ratios:
| (i) | Debt service coverage ratio: Higher than 1.3.
| (ii) | Leverage ratio: Less than 1.0 times.
| (iii) | Debt ratio: Less than 2.0 times.
These sales agreements with a subsequent financial lease are guaranteed by a trust agreement related to collection rights, sales contracts, cash flows for sales contracts and one related to the assets indicated in the contract. Mid-term loan contract – On October 23, 2017, El Brocal signed a mid-term loan agreement with the Banco de Credito del Peru for US$80,000,000, which accrues interest at an annual rate of 3.65 percent, for a 5-year term. The objective of this financing was the payment of short-term financial obligations maintained with the Banco de Credito del Peru and for working capital. As part of the commitments agreed, El Brocal must comply with the following financial indicators as of December 31, 2018 and 2017:
| (i) | Debt service coverage ratio: Higher than 1.3.
| (ii) | Leverage ratio: Less than 1.0 times.
| (iii) | Debt ratio: Less than a 2.25 times.
| (d) | On December 2, 2009, Empresa de Generación Huanza S.A. entered into a finance lease contract with Banco de Crédito del Perú. In the year 2017, Huanza negotiate a reduction of the fixed rate of interest and agreed a modification of the following terms and conditions:
| - | Principal: US$119,000,000.
| - | Annual interest rate: Three-month Libor plus 2.75 percent. (Three-month Libor plus 4.60 percent as of December 31, 2017).
| - | Term: 6 years since August 2014, with final maturity in November 2020.
| - | Guarantee: Leased equipment.
| - | Amortization: Through 26 quarterly variable installments and a final payment of US$44,191,000.
On June 30, 2014, Banco de Credito del Perú extended the finance lease contract above mentioned, through the addition of a new tranche. In the year 2017, Huanza negotiate a reduction of the fixed rate of interest and agreed a modification of the following terms and conditions:
| - | Principal: US$103,373,000.
| - | Annual interest rate: Three-month Libor plus 2.75 percent. (Three-month Libor plus 4.70 percent as of December 31, 2017).
| - | Term: 6 years since August 2014, with final maturity in November 2020.
| - | Guarantee: Leased equipment.
| - | Amortization: Through an initial installment of US$18,373,000, 26 quarterly variable installments and a final installment of US$68,905,000.
In addition, Huanza have granted a security interest for 100 percent of shares. According to the lease contract mentioned above, Huanza is required to maintain the following financial ratios:
| - | Debt Service Coverage Ratio greater than 1.1.
| - | Minimum Net Worth of US$30,000,000.
| (e) | The long-term portion of the financial obligations held by the Group matures as follows:
|  | 2018 |  |  | 2017 |
|  | US$(000) |  |  | US$(000) |
Between 1 and 2 years |  |  | 278,397 |  |  |  | 125,215 |
Between 2 and 5 years |  |  | 266,625 |  |  |  | 427,680 |
|  |  | 545,022 |  |  |  | 552,895 |
Debt issuance costs |  |  | (4,126 | ) |  |  | (3,803 | )
|  |  | 540,896 |  |  |  | 549,092 |
| (f) | Below is presented the movement:
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | US$(000) |  |  | US$(000) |  |  | US$(000) |
Beginning balance |  |  | 633,083 |  |  |  | 592,342 |  |  |  | 353,710 |
Accrual of debt issuance costs in results, note 27(a) |  |  | 1,024 |  |  |  | 909 |  |  |  | - |
Payments |  |  | (45,222 | ) |  |  | (32,599 | ) |  |  | (33,476 | )
Increase in interest for debt restructuring |  |  | (2,207 | ) |  |  | - |  |  |  | - |
Exchange difference |  |  | 384 |  |  |  | (165 | ) |  |  | 17 |
New obligations |  |  | - |  |  |  | 80,000 |  |  |  | 275,210 |
Accrual of debt issuance costs capitalized |  |  | - |  |  |  | 272 |  |  |  | (3,119 | )
Sale of asset under lease agreement |  |  | - |  |  |  | (7,196 | ) |  |  | - |
Increase of debt issuance costs, note 27(a) |  |  | - |  |  |  | (480 | ) |  |  | - |
Final balance |  |  | 587,062 |  |  |  | 633,083 |  |  |  | 592,342 |

X
- References No definition available. + Details
Name: | cik0001013131_DisclosureOfFinancialObligationsAbstract
Namespace Prefix: | cik0001013131_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of borrowings. [Refer: Borrowings] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2018-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=1&date=2018-03-01&anchor=para_10_e&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfBorrowingsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration