Net sales

12 Months Ended

Dec. 31, 2018

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. Set out below is the disaggregation of the Group’s revenue from contracts with customers:

	2018		2017		2016
	US$(000)		US$(000)		US$(000)

Revenues by geographic region:
Metal and concentrates sales -
Peru		537,816		551,243		396,733
America		370,624		471,863		397,795
Asia		120,519		120,719		97,467
Europe		100,792		81,333		121,929

		1,129,751		1,225,158		1,013,924

Services -
Peru		23,712		14,903		28,782
America		289		14,794		-
		24,001		29,697		28,782

Royalties -
Peru		20,385		20,739		24,339

		1,174,137		1,275,594		1,067,045

	2018			2017			2016
	US$(000)			US$(000)			US$(000)

Revenues by type of good or services:
Sales by metal -
Gold		411,926			511,434			440,603
Silver		369,167			409,775			385,989
Copper		274,761			268,527			224,649
Zinc		174,048			188,023			142,425
Lead		89,059			94,955			58,690
Manganese sulfate		6,655			6,317			5,982
Indium		-			66			-
		1,325,616			1,479,097			1,258,338
Commercial deductions		(195,865	)		(253,939	)		(244,414	)
		1,129,751			1,225,158			1,013,924
Sales by services -		24,001			29,697			28,782
Royalties income -		20,385			20,739			24,339

Total revenue from contracts with customers		1,174,137			1,275,594			1,067,045

Revenues by timing of revenue recognition:
Goods transferred at a point in time		1,129,751			1,225,158			1,013,924
Services transferred over time		24,001			29,697			28,782
Royalties at a point of time		20,385			20,739			24,339

		1,174,137			1,275,594			1,067,045

(b)

Set out below, is the reconciliation of the revenue from contracts with customers with the amounts disclosed in the consolidated statement of profit or loss:

	2018			2017			2016
	US$(000)			US$(000)			US$(000)

Contracts with customers for sale of goods		1,129,751			1,225,158			1,013,924
Adjustments to prior period liquidations		857			919			4,611
Fair value of accounts receivables		(6,215	)		8,786			880
Hedge operations		(1,398	)		(10,921	)		(3,745	)
Net sale of goods		1,122,995			1,223,942			1,015,670

Contracts with customers for sale of services		24,001			29,697			28,782
Net sale of services		24,001			29,697			28,782

Contracts with customers for royalty income		20,385			20,739			24,339
Royalty income		20,385			20,739			24,339

		1,167,381			1,274,378			1,068,791

(c)

Performance obligations -

The performance obligation of the sale of goods is satisfied upon delivery of the goods and payment is generally due within 30 to 90 days from delivery. Performance obligation of services is satisfied over-time and payment is generally due upon completion and acceptance of service.

(d)

Concentration of sales -

In 2018, the three customers with sales of more than 10 percent of total net sales represented 32, 13 and 11 percent from the total net sales of the Group (three customers by 28, 15 and 10 percent during 2017; three customers by 28, 22 and 22 percent during 2016). As of December 31, 2018, 43 percent of the accounts receivable correspond to these customers (49 percent as of December 31, 2017). 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]

14.

Sales of goods

(a)

This item is made up as follows:

	For the year ended December 31, 2018					For the year ended December 31, 2017					For the year ended December 31, 2016
	Pounds (000)		US$(000)			Pounds (000)		US$(000)				Pounds (000)		US$(000)

Copper in concentrate		962,113		2,458,088			979,243		2,702,508				995,386		1,967,052
Copper cathode		86,346		251,908			84,679		241,725				109,128		247,431
Other (primarily silver and molybdenum concentrate)				351,934					267,033						176,357
Subtotal Sales				3,061,930					3,211,266						2,390,840
Less: Royalty contributions (see Note 2(k))				(7,904	)				(8,335	)					(6,686	)

Total net sales				3,054,026					3,202,931						2,384,154

Sales to related parties totaled US$2.9 billion for the year ended December 31, 2018 (US$3.0 billion for the year ended December 31, 2017

and US$2.3 billion for the year ended December 31, 2016).

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 decrease to net sales of goods totaling US$88.8 million for the year ended December 31, 2018, an increase of US$1.3 million for the year ended December 31, 2017

and US$86.3 billion for the year ended December 31, 2016.

(b)

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

	For the year ended December 31, 2018			For the year ended December 31, 2017			For the year ended December 31, 2016
	US$(000)			US$(000)			US$(000)

Asia		2,404,530			2,416,826			1,865,346
North America		295,448			287,174			213,002
Europe		209,894			314,092			161,844
South America (primarily Peru)		136,400			193,174			150,648
Central America		15,658			-			-
		3,061,930			3,211,266			2,390,840
Less: Royalty contributions (see Note 2(k))		(7,904	)		(8,335	)		(6,686	)

Total net sales		3,054,026			3,202,931			2,384,154

(c)

Concentration of sales -

For the years ended December 31, 2018 and 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 the 95% of the Company's sales were to these related entities, respectively.

Minera Yanacocha SRL and subsidiary [Member]

Sale of goods [Line Items]

Disclosure of revenue [text block]

16.

Revenue from sales

(a)

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

	2018			2017			2016
	US$(000)			US$(000)			US$(000)

Sales and services by geographic region:
Metal sales
Switzerland		518,664			491,887			558,723
America		139,989			179,018			233,043
		658,653			670,905			791,766

Royalties, note 1(a) and 22		(20,385	)		(20,739	)		(24,339	)
Mining royalties to the government		(2,875	)		(4,990	)		(6,234	)

		635,393			645,176			761,193

(b)

Other operating income is made up as follows:

	2018		2017		2016
	US$(000)		US$(000)		US$(000)

Sales of copper and silver		20,442		17,509		8,136
Others		1,523		4,361		9,577

		21,965		21,870		17,713

The amount of the subsequent changes in fair value of the trade receivable were a decrease of US$176,000, US$15,000 and US$346,000 in 2018, 2017 and 2016, respectively and are presented as part of the caption “Sales of copper and silver”.