XML 39 R17.htm IDEA: XBRL DOCUMENT

Investments in associates and joint venture

12 Months Ended

Dec. 31, 2022

Investments in associates and joint venture

Investments in associates and joint venture

10. Investments in associates and joint venture

(a)

This caption is made up as follows:


	Share in equity
	2022	2021	2022	2021
	%	%	US$(000)	US$(000)

Associates
Sociedad Minera Cerro Verde S.A.A.	19.58	19.58	1,408,260	1,305,377
Compañía Minera Coimolache S.A.	40.10	40.10	98,388	101,683
Tinka Resources Ltd.	19.32	19.30	10,678	11,573
			1,517,326	1,418,633
Joint venture (d)			2,486	2,497
Other minor investments			1,165	1,165
			1,520,977	1,422,295

(b)

The table below presents the net share in profit (loss) of investments:


	2022	2021	2020
	US$(000)	US$(000)	US$(000)
Associates
Sociedad Minera Cerro Verde S.A.A.	181,221	233,342	53,767
Compañía Minera Coimolache S.A.	(2,493)	8,170	10,055
Tinka Resources Ltd.	(2,447)	(1,098)	(868)
	176,281	240,414	62,954
Joint venture	(11)	36	(252)
	176,270	240,450	62,702

Investment in Sociedad Minera Cerro Verde S.A.A. (Cerro Verde) -

Cerro Verde is engaged in the extraction, production and marketing of cathodes and copper concentrate from its mining unit that is located in Uchumayo, Arequipa, Peru.

Key financial data -

The table below presents the key financial data from the financial statements of Cerro Verde under IFRS:


	2022	2021
	US$(000)	US$(000)

Statements of financial position as of December 31:
Current assets	1,946,762	2,157,182
Non-current assets	6,047,101	5,967,382
Current liabilities	(564,058)	(1,252,095)
Non-current liabilities	(778,378)	(745,463)

Equity	6,651,427	6,127,006

Group’s interest	1,300,497	1,197,614
Goodwill	107,763	107,763
	1,408,260	1,305,377


	2022	2021	2020
	US$(000)	US$(000)	US$(000)
Statements of profit or loss for the years ended December 31:

Sales of goods	3,975,295	4,199,448	2,538,593

Net profit from continued operations	925,353	1,191,474	274,544

Group’s share in results	181,221	233,342	53,767

The Group’s management determined that there was no objective evidence that its investment in Cerro Verde is impaired as of December 31, 2022 and 2021.

Market capitalization:

As of December 31, 2022 and 2021, total market capitalization of shares maintained by the Group in Cerro Verde was US$2,043 million and US$2,552 million, respectively (market capitalization value by each share of US$29.80 and US$37.23, respectively).

Investment in Compañía Minera Coimolache S.A. (Coimolache) -

Coimolache is involved in the production and the sales of gold and silver from its open-pit mining unit located in Cajamarca, Peru.

Key financial data -

The table below presents the key financial data from the financial statements of Coimolache under IFRS:


	2022	2021
	US$(000)	US$(000)

Statements of financial position as of December 31:
Current assets	208,382	216,581
Non-current assets	157,203	184,635
Current liabilities	(21,565)	(36,521)
Non-current liabilities	(95,822)	(106,129)

Equity	248,198	258,566

Adjustments to conform to the accounting policies of the Group	(2,804)	(4,954)

Equity, adjusted	245,394	253,612

Group’s interest	98,388	101,683


	2022	2021	2020
	US$(000)	US$(000)	US$(000)

Statements of profit or loss for the years ended December 31:
Sales of goods	159,003	215,481	203,163

Net profit (loss) from continued operations	(8,368)	18,294	22,786
Adjustments to conform to the accounting policies	2,150	2,083	2,293

Net profit (loss), adjusted	(6,218)	20,377	25,079

Group’s share in results	(2,493)	8,170	10,055

The Group’s management determined that there was no objective evidence that its investment in Coimolache is impaired as of December 31, 2022 and 2021.

Investment in Tinka Resources Ltd. (Tinka) -

Tinka is a Canadian junior exploration and development mining company with its flagship property being the project of Ayawilca. Ayawilca is carbonate replacement deposit (CRD) in the zinc-lead-silver belt of central Peru, in Cerro de Pasco, 200 kilometers northeast of Lima. Tinka is listed on the Lima and Canada Stocks Exchanges.

Key financial data -

The table below presents the key financial data from the financial statements of Tinka under IFRS in 2022 (financial statements as of September 30, 2022) and in 2021 and 2020 (financial statements as of November 30, 2021 and 2020, respectively):


	2022	2021
	US$(000)	US$(000)
Statements of financial position:
Current assets	13,007	8,667
Non-current assets	50,454	50,461
Current liabilities	(473)	(211)
Equity	62,988	58,917

Adjustments to conform to the accounting policies of the Group	(7,719)	1,042

Equity, adjusted	55,269	59,959

Group’s interest	10,678	11,573


	2022	2021	2020
	US$(000)	US$(000)	US$(000)
Statements of profit or loss for the years:
Sales of goods	—	—	—

Net loss from continued operations	(4,383)	(1,109)	(2,311)
Adjustments to conform to the Group accounting policies	(8,283)	(4,583)	(2,189)

Net loss, adjusted	(12,666)	(5,692)	(4,500)

Group’s share in results	(2,447)	(1,098)	(868)

For the years 2022, 2021 and 2020, the Group has used the latest financial statements available from its associate Tinka, the difference between the period reported by the associate and the date of issuance of these financial statements being less than 3 months. There have been no significant transactions or events between the reporting date of the associate’s financial statements and the consolidated financial statements as of December 31, 2022, 2021 and 2020. The Group’s management determined that there was no objective evidence that its investment in Tinka is impaired as of December 31, 2022 and 2021.

Market capitalization:

As of December 31, 2022 and 2021, total market capitalization of shares maintained by the Group was US$11.0 million respectively (market capitalization value by each share of US$0.14 and US$0.16, respectively).

(c)

The Group, through its subsidiary El Brocal, has an interest of 8% in Transportadora Callao S.A., a joint venture whose objective was the construction of a fixed conveyor belt of minerals and deposits in the Port of Callao. In May 2014, Transportadora Callao started operations and currently its main activity is the operation of that terminal.

The table below presents the key financial data from the joint venture under IFRS:


	2022	2021
	US$(000)	US$(000)

Statements of financial position as of December 31:
Current assets	14,760	19,898
Non-current assets	77,435	87,634
Current liabilities	(17,608)	(14,403)
Non-current liabilities	(53,768)	(72,444)
Equity	20,819	20,685

Adjustments to conform to the Group accounting policies	10,256	10,528

Equity, adjusted	31,075	31,213

Group’s share in results	2,486	2,497


	2022	2021	2020
	US$(000)	US$(000)	US$(000)
Statements of profit or loss for the years ended December 31:

Revenue	27,538	22,937	18,560

Net profit (loss) from continuing operations	322	191	(2,554)
Adjustments to conform to the Group accounting policies	(459)	259	(596)
Net profit (loss), adjusted	(137)	450	(3,150)
Group interests	(11)	36	(252)

(d)

Changes in this caption are as follows:


	2022	2021
	US$(000)	US$(000)

As of January 1,	1,422,295	1,488,775
Net share in profit of associates and joint venture	176,270	240,450
Equity contributions granted and paid, note 32(a)	1,677	—
Dividends declared and collected, note 32(a)	(79,140)	(148,411)
Unrealized results on investments	(101)	(335)
Reclassification of share of the year in losses of Yanacocha to discontinued operations, note 1(e)	—	(422,394)
Reclassification to held for sale of the investment in Yanacocha, note 1(e)	—	264,838
Equity reduction of minor investments	—	(580)
Translation adjustments and other	(24)	(48)
As of December 31,	1,520,977	1,422,295