Cost of sales

12 Months Ended

Dec. 31, 2018

Disclosure of cost of sales [Line Items]

Disclosure of cost of sales [text block]

21.

Cost of sales, without considering depreciation and amortization

(a)

The cost of sales of goods is made up as follows:

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

Beginning balance of finished goods and products in process, net of depreciation and amortization		37,640			58,633			69,932

Cost of production
Services provided by third parties		245,705			262,195			211,325
Consumption of materials and supplies		136,991			134,070			100,401
Direct labor		96,612			87,886			72,344
Electricity and water		51,226			44,345			41,989
Transport		24,805			16,254			10,880
Maintenance and repair		24,459			22,839			17,792
Rentals		31,156			26,591			10,852
Insurances		11,550			6,637			4,347
Provision (reversal) for impairment of finished goods and product in progress, note 8(c)		4,521			2,118			(7,581	)
Cost of concentrate purchased to third parties		-			439			2,958
Other production expenses		10,025			10,464			9,789
Total cost of production of the period		637,050			613,838			475,096
Final balance of products in process and finished goods, net of depreciation and amortization		(49,206	)		(45,038	)		(47,216	)
Cost of sales of goods, without considering depreciation and amortization		625,484			627,433			497,812

(b)

The cost of services is made up as follows:

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

Direct labor		2,128		7,398		5,983
Consumption of materials and supplies		675		1,026		868
Maintenance and repair		543		946		217
Services provided by third parties		382		1,782		1,689
Electricity and water		249		586		633
Rentals		92		423		480
Insurances		86		246		212
Transport		50		98		213
Other		113		449		459

		4,318		12,954		10,754

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

Disclosure of cost of sales [Line Items]

Disclosure of cost of sales [text block]

15.

Cost of sales

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
	US$(000)			US$(000)		US$(000)

Materials and supplies		693,316			556,022		496,918
Depreciation and amortization		512,298			456,467		472,997
Labor (a)		357,692			286,058		215,839
Energy		254,243			229,272		229,035
Third parties services		159,514			144,829		100,897
Management Fees		2,743			2,867		2,793
Change in work in process inventory		(8,513	)		51,412		(3,789	)
Change in finished goods inventory		(5,723	)		2,060		(3,951	)
Other costs		45,402			39,251		42,301

		2,010,972			1,768,238		1,553,040

(a)

Labor includes an expense of US$60.2 million related to profit sharing for the year ended December 31, 2018 (US$86.4 million for the year ended December 31, 2017

and US$36.8 million for the year ended December 31, 2016).

Additionally, it includes an expense of US$69.0 million related to the Union Agreement bonus payment obtained by workers as part of the new collective labor agreement, which is effective from September 1, 2018, through August 31, 2021.

In compliance with corporate policies, the Company recognizes administrative costs directly to cost of production (approximately U$30.7 million for the year ended December 31, 2018, US$34.4 million for the year ended December 31, 2017

and US$23.4 million for the year ended December 31, 2016).

The effect of this policy is immaterial to the financial statements as a whole.

Minera Yanacocha SRL and subsidiary [Member]

Disclosure of cost of sales [Line Items]

Disclosure of cost of sales [text block]

17.

Costs applicable to sales

This caption is made up as follows:

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

Beginning balance of finished goods and in-process		345,489			446,503			544,325
Beginning balance of provision for net realizable value, note 8(b)		(62,540	)		(84,374	)		(90,298	)
Consumption of supplies		215,863			240,881			228,376
Personnel expenses		82,645			99,702			87,258
Other services		43,672			66,408			73,779
Maintenance		22,585			24,033			36,213
Power		24,203			23,565			27,270
Depreciation and amortization		156,212			87,783			140,712
Workers' profit participation		3,837			1,242			12,394
Reclamation expenses related to leach pads, note 12(b)		16,284			124,124			78,494
Ending balance of provision for net realizable value, note 8(b)		89,127			62,540			84,374
Ending balance of finished goods and in-process		(341,213	)		(345,489	)		(446,503	)

		596,164			746,918			776,394