| Cost of sales of goods and services, without considering depreciation and amortization |
20.Cost of sales of goods and services, without considering depreciation and amortization | (a) | The cost of sales of goods is made up as follows: |
| | | | | | | | | 2025 | | 2024 | | 2023 | | | US$(000) | | US$(000) | | US$(000) | | | | | | | | Beginning balance of finished goods and products in process, net of depreciation and amortization | | 18,523 | | 18,748 | | 22,667 | | | | | | | | Cost of production | | | | | | | Services provided by third parties | | 261,879 | | 239,804 | | 166,227 | Direct labor | | 126,440 | | 106,022 | | 77,781 | Consumption of materials and supplies | | 123,241 | | 104,063 | | 93,407 | Short-term and low-value leases | | 56,134 | | 39,747 | | 26,794 | Maintenance and repair | | 26,276 | | 22,903 | | 21,601 | Electricity and water | | 20,737 | | 20,823 | | 16,946 | Insurance | | 19,727 | | 14,707 | | 28,729 | Transport | | 8,958 | | 11,763 | | 13,589 | Other | | 17,758 | | 14,912 | | 4,510 | Provision (reversal) for impairment of finished goods and product in progress, note 8(b) | | (1,782) | | (6,487) | | 3,851 | Total cost of production | | 659,368 | | 568,257 | | 453,435 | Final balance of finished goods and products in process | | (24,182) | | (18,523) | | (18,748) | Final balance of finished goods and products in process, net of depreciation and amortization | | (24,182) | | (18,523) | | (18,748) | Purchase of concentrates (i) | | 97,276 | | — | | — | Cost of sales of goods, without considering depreciation and amortization | | 750,985 | | 568,482 | | 457,354 |
See related accounting policies in Note 2.4(x). | (i) | During the year 2025, the subsidiary Buenaventura Trading S.A.S. acquired 8,844 metric tons (MT) of copper concentrate and 81,665 ounces (Oz) of silver from third parties, intended for commercialization in the same period. |
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| Cost of sales of goods and services, without considering depreciation and amortization |
15. Cost of sales This item is made up as follows: | | | | | | | | | For the year ended | | For the year ended | | For the year ended | | | December 31, 2025 | | December 31, 2024 | | December 31, 2023 | | | US$(000) | | US$(000) | | US$(000) | | | | | | | | Materials and supplies | | 884,378 | | 917,531 | | 982,616 | Property plant and equipment depreciation (see Note 7) | | 637,494 | | 571,852 | | 530,199 | Labor (a) | | 430,018 | | 501,678 | | 381,761 | Third-party services | | 266,177 | | 239,547 | | 279,923 | Energy | | 221,984 | | 209,925 | | 249,039 | Other costs | | 34,389 | | 36,910 | | 48,475 | Change in work in process inventory | | 28,209 | | 49,764 | | 13,538 | Depreciation on right-of-use assets (see Note 7) | | 14,202 | | 11,152 | | 11,117 | Variable lease payments, low-value and short-term leases | | 13,472 | | 19,775 | | 17,741 | Supplementary Retirement Fund contribution (b) | | 9,308 | | 7,861 | | 7,467 | OEFA and OSINERGMIN contributions (c) | | 8,550 | | 8,208 | | 8,015 | Change in finished goods inventory | | 7,928 | | 2,110 | | 14,165 | Management fees | | 2,891 | | 3,227 | | 3,098 | Intangible amortization | | 2,342 | | 2,342 | | 2,342 | Loss on materials obsolescence (see note 5(a)) | | 959 | | 6,897 | | 12,496 | WIP stockpile write-offs (see note 5(b)) | | — | | — | | 1,527 | | | | | | | | | | 2,562,301 | | 2,588,779 | | 2,563,519 |
| (a) | For the year ended December 31, 2025, labor includes an expense of US$157.8 million related to profit sharing (US$138.4 million and US$130.9 million for the year ended December 31, 2024 and 2023 respectively) and a prior years adjustment of US$1.1 million. For the year ended December 31, 2024, the company recorded non-recurring costs of US$97.1 million associated with new collective labor agreements reached with its unions. |
| (b) | On July 9, 2011, Law No. 29741 was published, through which the contribution to the Mining, Metallurgical and Steelworks Supplementary Retirement Fund was created. These resources constitute a social security retirement fund for mining, metallurgical and steelworkers. The Mining Supplementary Retirement Fund is applicable to the Company and is calculated based on 0.5% of the annual taxable profit. |
| (c) | The Company is subject to OEFA and OSINERGMIN royalties. These funds are used by these agencies as part of their operating budgets for investment supervision in energy and mining, as well as the environment. The calculation for the OSINERGMIN royalty is 0.12% of invoiced sales and the calculation for the OEFA royalty is 0.07% of invoiced sales for the year 2025, 2024 and 2023. |
In compliance with corporate policies, the Company recognizes administrative costs as an inventory cost (approximately US$36.2 million, US$32.5 million and US$32.6 million for the year ended December 31, 2025, 2024 and 2023 respectively). The effect of this policy is immaterial to the financial statements as a whole.
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