Property, plant, equipment and development costs

12 Months Ended

Dec. 31, 2025

Property, plant, equipment and development costs

Property, plant, equipment and development costs

11.Property, plant, equipment and development costs

(a)

Below is presented the movement:


		Balance as of												Balance as of												Balance as of
		January 1,								Changes in		Reclassifications		December 31,		Additions, net						Changes in		Reclassifications		December 31,
		2024		Additions		Disposals		Sales		estimations		and transfers		2024		(g)		Disposals		Sales		estimations		and transfers		2025
		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)

Cost:
Lands		18,765		—		—		—		—		—		18,765		—		(89)		—		—		—		18,676
Mining concessions		77,567		—		—		(3)		—		(7)		77,557		—		—		—		—		(4)		77,553
Development costs		993,802		101,876		—		—		—		1,782		1,097,460		155,427		(16,816)		—		—		—		1,236,071
Buildings, constructions and other		1,375,600		—		—		(313)		—		79,815		1,455,102		—		(2,868)		(590)		—		288,060		1,739,704
Machinery and equipment		889,211		—		(1,466)		(10,567)		—		24,904		902,082		—		(43,563)		(7,806)		—		103,557		954,270
Transportation units		5,530		—		(68)		(483)		—		113		5,092		—		(327)		(1,337)		—		755		4,183
Furniture and fixtures		11,531		—		—		(1)		—		1,166		12,696		—		(1,497)		(7)		—		35		11,227
Units in transit		52,138		33,521		—		—		—		247		85,906		50,967		—		—		—		(95,439)		41,434
Work in progress		186,123		242,841		(7,496)		—		—		(100,177)		321,291		289,758		—		(125)		—		(297,070)		313,854
Stripping activity asset		199,109		—		—		—		—		1		199,110		—		—		—		—		—		199,110
Right-of-use asset (e)		33,928		—		—		—		7,842		(7,842)		33,928		—		—		—		2,433		106		36,467
Mine closure costs		322,392		—		—		—		73,090		(2)		395,480		—		—		—		66,177		—		461,657
		4,165,696		378,238		(9,030)		(11,367)		80,932		—		4,604,469		496,152		(65,160)		(9,865)		68,610		—		5,094,206
Accumulated depreciation and amortization:
Development costs		412,290		33,236		—		—		—		7,461		452,987		18,444		(14,820)		—		—		—		456,611
Buildings, construction and other		879,837		67,469		—		(313)		—		(7,124)		939,869		55,859		(2,763)		(590)		—		—		992,375
Machinery and equipment		777,144		31,398		(938)		(10,541)		—		6,602		803,665		31,958		(43,927)		(7,089)		—		—		784,607
Transportation units		4,643		249		(41)		(483)		—		(141)		4,227		351		(319)		(1,337)		—		—		2,922
Furniture and fixtures		10,672		501		—		(1)		—		(303)		10,869		469		(1,489)		(6)		—		—		9,843
Stripping activity asset		205,052		—		—		—		—		(5,942)		199,110		—		—		—		—		—		199,110
Right-of-use asset (e)		22,172		5,737		—		—		—		(553)		27,356		24		—		—		2,258		—		29,638
Mine closure costs		247,046		18,826		—		—		—		—		265,872		28,067		—		—		—		—		293,939
		2,558,856		157,416		(979)		(11,338)		—		—		2,703,955		135,172		(63,318)		(9,022)		2,258		—		2,769,045
Provision for impairment of long-lived assets:
Mine closure costs		2,206		—		—		—		—		—		2,206		—		—		—		—		—		2,206
Development costs		3,488		—		—		—		—		(3)		3,485		—		—		—		—		—		3,485
Property, plant and other		851		—		—		—		—		3		854		—		—		—		—		—		854
Machinery and equipment		—		4,184		—		—		—		—		4,184		—		—		—		—		—		4,184
		6,545		4,184		—		—		—		—		10,729		—		—		—		—		—		10,729

Net cost		1,600,295												1,889,785												2,314,432

(b)

Impairment of long-lived assets

As of December 31, 2025, the Group identified impairment indicators in its mining units (CGU) Tambomayo, Orcopampa, La Zanja, El Brocal and Río Seco. The Tambomayo, Orcopampa, and La Zanja mining units presented indicators of impairment as they are approaching the end of their useful lives. In respect of El Brocal CGU, future plans focused on prioritizing underground operations modify the structure of the mining plan and, consequently, the CGU’s cash flows, which was considered an indicator of impairment. Finally, for the Río Seco CGU, indicators of impairment arose as a result of a temporary suspension, for a period of two years of the leaching services provided to Buenaventura.

Accordingly, the Group determined the recoverable amount based on value in use for the El Brocal CGU, and based on fair value less costs of disposal for the Tambomayo, Orcopampa, La Zanja, and Río Seco CGUs. Value in use is calculated as the present value of future cash flows arising from the continued use of the asset or CGU, using market-based metal prices and other exchange assumptions, estimated recoverable mineral quantities, production levels, operating costs and capital expenditure requirements, as well as potential asset disposals, all based on the most recent life-of-mine (LOM) plans.

The Group determined fair value less costs of disposal based on valuations prepared by an independent appraiser, such valuations are mainly based on the replacement cost method, which relies on market studies of the assets, research of comparable assets, and the application of updating factors to determine market value.

Fair value less costs of disposal considers the appraised values net of the estimated costs to complete the sale, which mainly consist of selling commissions.

As a result of these evaluations, the Group concluded that the recoverable amount of the CGUs for which indicators of impairment were identified exceeded their carrying amounts; therefore, no impairment loss was recognized.

As of December 31, 2024, the Group identified indicators of impairment in its Tambomayo, Orcopampa, and La Zanja mining units. The Company assessed and concluded that no impairment existed as a result of the recoverable amount analysis based on value in use.

Key assumptions for the value in use

The determination of value in use is most sensitive to the following key assumptions:

-

Production volumes

-

Commodity prices

-

Discount rate

Production volumes: Estimated production volumes are based on detailed life-of-mine plans and consider development plans for the mines agreed by management as part of planning process. Production volumes are dependent on several variables, such as: the recoverable quantities; the production profile; the cost of the development of the infrastructure necessary to extract the reserves; the production costs; the contractual duration of mining rights; and the selling price of the commodities extracted.

As each producing mining unit has specific reserve characteristics and economic circumstances, the cash flows of the mines are computed using appropriate individual economic models and key assumptions established by management. The production profiles used were consistent with the reserves and resource volumes approved as part of the Group’s process for the estimation of proven and probable reserves and resource estimates.

Commodity prices: Forecast commodity prices are based on management’s estimates and are derived from forward price curves and long-term views of global supply and demand, building on experience of the industry and consistent with external sources. These prices were adjusted to arrive at appropriate consistent price assumptions for the different qualities and type of commodities, or, where appropriate, contracted prices were applied. These prices are reviewed at least annually.

Estimated prices for the current and long-term periods that have been used to estimate future cash flows are as follows:

As of December 31, 2025 -


		2026		2027-2047
		US$		US$

Gold		3,500 / Oz		4,146 / Oz
Silver		40 / Oz		53 / Oz
Copper		10,500 / MT		13,334 / MT
Zinc		2,900 / MT		3,416 / MT
Lead		1,900 / Oz		2,622 / Oz

As of December 31, 2024 -


		2025		2026-2028
		US$		US$

Gold		2,000 / Oz		2,304 / Oz
Silver		26.00 / Oz		30.00 / Oz
Copper		8,900 / MT		10,175 / MT
Zinc		2,500 / MT		2,721 / MT
Lead		1,900 / Oz		2,185 / Oz

(*)OZ= Ounces, MT = Metric Ton.

Discount rate:

In calculating the value in use, as of December 31, 2025, and 2024 the following discount rates were applied to the cash flows:


		2025		2024
		%		%

Tambomayo		N/A		12.73
Orcopampa		N/A		12.73
El Brocal		15.17		N/A
La Zanja		N/A		15.18

These discount rates are derived from the Group’s pre-tax weighted average cost of capital (WACC), with appropriate adjustments made to reflect the risks specific to the CGU. The WACC considers both debt and equity. The cost of equity is derived from the expected return on investment by the Group’s investors. The cost of debt is based on its interest-bearing borrowings the Group is obliged to service. The Beta factors are evaluated annually based on publicly available market data.

Residual value: As part of its financial projections to determine the recoverable amount, the Group has estimated and included the value of long-lived assets that could be sold independently at the end of the life of the mine. The estimation of the residual value is carried out by an independent appraiser each year.

(c)

The book value of assets held under finance leases, and assets within the trust equity amounted to US$240.3 million as of December 31, 2025 and 2024, and is presented within various items of “Property, plant, equipment and development cost” caption. During the years 2025 and 2024, there were no acquisitions of assets under finance lease contracts. The leased assets have been pledged as collateral for the corresponding operations.

(d)

During 2025, 2024 and 2023, no borrowing costs were capitalized.

(e)

Right-of-use assets

The net assets for right-of-use assets maintained by the Group correspond to the following:


		2025		2024
		US$(000)		US$(000)

Buildings		4,486		5,150
Transportation units		1,191		1,340
Machinery and equipment		1,152		82

		6,829		6,572

During 2025, there were additions for US$2.4 million and no disposals were made (additions of US$1.9 million and no disposals were made during 2024).

(f)

Below is the distribution of depreciation expenses of the year:


		2025		2024		2023
		US$(000)		US$(000)		US$(000)

Cost of sales of goods		126,256		149,954		164,543
Unabsorbed cost due to production stoppage		9		8		10,420
Cost of sales of services		2,442		2,783		9,037
Administrative expenses		2,409		1,758		2,065
Property, plant, equipment and development costs		3,864		2,400		1,799
Exploration in non-operating areas		35		163		98
Selling expenses		103		198		103
Other, net		54		152		51
		135,172		157,416		188,116

(g)

Additions during 2025 correspond mainly to various acquisitions associated with the construction of the San Gabriel project, including, among others, the installation of equipment and machinery for mining and hauling operations, construction of tailings facilities, ponds, camps, a mineral processing plant, administrative buildings, and a water dam, amounting to US$408.7 million, net of advances (US$224 million in 2024). Furthermore, during 2025, the Company invested US$13 million in ramp development works, raises, galleries and infrastructure, installation of equipment and machinery for mining and hauling operations, and construction of tailings facilities, ponds and mining material storage facilities at the Yumpag mining unit (US$64 million in 2024).

Sociedad Minera Cerro Verde S.A.A.

Property, plant, equipment and development costs

Property, plant, equipment and development costs

7. Property, plant and equipment, net

Property, plant and equipment consist of owned and leased assets (right-of-use assets). Cost and accumulated depreciation accounts as of December 31, 2025, and 2024, are shown below:


						Adjustments										Adjustments
		January 1,				and changes in		Disposals				December 31,				and changes in		Disposals				December 31,
		2024		Additions		estimates		and/or sales		Transfers		2024		Additions		estimates		and/or sales		Transfers		2025
		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)

Cost
Land		33,562		—		—		—		—		33,562		—		—		—		1,782		35,344
Buildings and other constructions		2,673,262		—		716		(3,901)		11,132		2,681,209		—		538		(7,501)		15,932		2,690,178
Machinery and equipment		5,342,285		—		(716)		(77,827)		226,320		5,490,062		—		(780)		(16,981)		250,865		5,723,166
Transportation units		40,632		—		—		(306)		5,449		45,775		—		—		(3,719)		1,583		43,639
Furniture and fixtures		572		—		—		—		—		572		—		—		—		—		572
Other equipment		36,404		—		—		(436)		273		36,241		—		—		(14,624)		35		21,652
Construction in progress and in-transit units (a)		185,068		358,684		—		—		(243,174)		300,578		373,171		—		—		(266,944)		406,805
Stripping activity asset (see note 2(i))		1,808,081		312,608		—		—		—		2,120,689		381,615		—		—		—		2,502,304
Asset retirement costs (see note 11(c))		208,909		—		(36,885)		—		—		172,024		—		(8,167)		—		—		163,857
Right-of-use assets (b)		99,779		1,478		—		(1,410)		—		99,847		84,435		—		(10,481)		(3,253)		170,548
		10,428,554		672,770		(36,885)		(83,880)		—		10,980,559		839,221		(8,409)		(53,306)		—		11,758,065

Accumulated depreciation
Buildings and other constructions		658,105		75,268		418		(3,889)		—		729,902		73,940		183		(4,365)		—		799,660
Machinery and equipment		3,031,301		293,826		(418)		(77,224)		—		3,247,485		298,541		(183)		(16,312)		261		3,529,792
Transportation units		23,181		3,159		—		(261)		—		26,079		3,396		—		(3,166)		—		26,309
Furniture and fixtures		572		—		—		—		—		572		—		—		—		—		572
Other equipment		30,286		3,088		—		(436)		—		32,938		2,195		—		(14,624)		—		20,509
Stripping activity asset		1,059,567		191,070		—		—		—		1,250,637		255,247		—		—		—		1,505,884
Asset retirement costs		47,148		5,441		—		—		—		52,589		4,175		—		—		—		56,764
Right-of-use assets (b)		49,731		11,152		—		(1,342)		—		59,541		14,202		—		(10,454)		(261)		63,028
		4,899,891		583,004		—		(83,152)		—		5,399,743		651,696		—		(48,921)		—		6,002,518

Net cost		5,528,663										5,580,816										5,755,547

(a)

As of December 31, 2025, additions to construction in progress and in-transit units primarily relate to (i) tailings dam projects (US$108.9 million) (ii) projects associated with the construction of a new in-pit crusher and improvements to existing crushers (US$107.7 million), (iii) mine support equipment (US$67.8 million) (iv) projects associated with the capitalization of main components of the mine’s heavy equipment (US$45.3 million), and (v) belt replacement projects (US$8.3 million).

As of December 31, 2024, additions to construction in progress and in-transit units primarily relate to (i) mine support equipment (US$109.3 million), (ii) projects associated with the construction of new in-pit crusher and improvements to existing crushers (US$71.8 million), (iii) tailings dam projects (US$74.2 million), (iv) projects associated with the capitalization of main components of the mine’s heavy equipment (US$49.9 million), (v) belt replacement projects (US$10.8 million) and (vi) expansion of a leach pad (US$7.9 million).

(b)Set out below are the carrying amounts of right-of-use assets recognized and the movements for the years ended December 31, 2025 and 2024:


		January 1,						December 31,								December 31,
		2024		Additions		Disposals		2024		Additions		Disposals		Transfers		2025
		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)		US$(000)
Cost
Land		10,491		59		—		10,550		16,891		(9,851)		—		17,590
Buildings and other constructions		58,213		741		(873)		58,081		302		(630)		—		57,753
Machinery and equipment		31,075		678		(537)		31,216		67,242		—		(3,253)		95,205
		99,779		1,478		(1,410)		99,847		84,435		(10,481)		(3,253)		170,548

Accumulated depreciation
Land		7,874		1,673		—		9,547		1,609		(9,851)		—		1,305
Buildings and other constructions		27,364		6,210		(804)		32,770		6,037		(603)		—		38,204
Machinery and equipment		14,493		3,269		(538)		17,224		6,556		—		(261)		23,519
		49,731		11,152		(1,342)		59,541		14,202		(10,454)		(261)		63,028

Net cost		50,048						40,306								107,520

For the year ended December 31, 2025, the additions mainly correspond to the leases of high-capacity mining trucks.