| Trade and other receivables |
7. Trade and other receivables | (a) | This caption is made up as follows |
| | | | | | | 2024 | | 2023 | | | US$(000) | | US$(000) | Trade receivables (b) | | | | | Domestic clients | | 161,743 | | 157,296 | Foreign clients | | 55,693 | | 46,051 | Related entities, note 32(b) | | 669 | | 421 | | | 218,105 | | 203,768 | Allowance for expected credit losses (h) | | (24,567) | | (22,276) | | | 193,538 | | 181,492 | Other receivables | | | | | Tax claims (c) | | 535,860 | | 546,385 | Value added tax credit | | 61,452 | | 66,515 | Other accounts receivables to third parties | | 26,284 | | 27,585 | Restricted bank accounts (d) | | 9,902 | | 1,058 | Refund of value added tax applications (e) | | 8,963 | | 2,591 | Accounts receivable from Howden Hodco Perú (i), note 29(a) | | 7,480 | | 12,564 | | | | | | Interest receivable | | 3,525 | | 2,634 | Bank accounts in trust (f) | | 2,839 | | 3,075 | Advances to suppliers | | 2,704 | | 6,810 | Related entities, note 32(b) | | 2,285 | | 2,486 | Due from for sales of assets (g) | | 100 | | 2,744 | Other | | 2,374 | | 1,401 | | | 663,768 | | 675,848 | Allowance for expected credit losses (h) | | (2,757) | | (4,141) | | | 661,011 | | 671,707 | Total trade and other receivables | | 854,549 | | 853,199 | | | | | | Classification by maturity: | | | | | Current portion | | 256,602 | | 240,319 | Non-current portion | | 597,947 | | 612,880 | Total trade and other receivables | | 854,549 | | 853,199 | | | | | | Classification by nature: | | | | | Financial receivables | | 245,435 | | 237,708 | Non-financial receivables | | 609,114 | | 615,491 | Total trade and other receivables | | 854,549 | | 853,199 | | | | | | Classification by measurement: | | | | | Trade receivables (not subject to provisional pricing) | | 83,466 | | 55,906 | Trade receivables (subject to provisional pricing) | | 110,072 | | 125,586 | Other accounts receivables | | 661,011 | | 671,707 | Total trade and other receivables | | 854,549 | | 853,199 |
See related accounting policies in Note 2.4 (b). | (b) | Trade accounts receivable are denominated in U.S. dollars, are neither due nor impaired (except for those included in the Group’s allowance for expected credit losses, see (h)) do not yield interest and have no specific guarantees. |
| (c) | Corresponds to forced payments of tax debts that are in litigation and that, in the opinion of management and its legal advisors, a favorable result should be obtained in the judicial and administrative processes that have been initiated, see note 31(d): |
| | | | | | | | | Payment | | 2024 | | 2023 | Detail | | Date | | US$(000) | | US$(000) | | | | | | | | Buenaventura (c.1) - | | | | | | | Payment of tax debt for fiscal year 2007 - 2008 | | July 2021 | | 420,361 | | 426,374 | Payment of tax debt for fiscal year 2010 | | July 2021 | | 94,915 | | 96,273 | Payment of tax debt for fiscal year 2009 | | July 2021 | | 51,463 | | 52,199 | SUNAT seizure for payment on account from January to December 2009; January and February 2010 | | December 2019 | | 32,002 | | 32,459 | Payment of part of the tax liability debt for fiscal year 2007 | | November - December 2020 | | 19,176 | | 19,451 | SUNAT seizure for payment on account on Income Tax 2007-2008-2009 | | January 2021 | | 5,101 | | 5,174 | Payment in claim to SUNAT for the year 2018 | | August 2023 | | 2,844 | | 3,306 | Payment of tax debt for fiscal year 2017 | | December 2022 | | 2,456 | | 2,490 | Payment of the tax liability debt imputed by SUNAT in the IGV inspection process January-December 2014 to benefit from the gradual nature of the fine | | November 2020 | | 1,262 | | 1,280 | Payment of part of the tax liability debt for fiscal year 2010 | | December 2020 | | 479 | | 486 | Other minors | | | | 2,688 | | 2,832 | | | | | | | | Payment in claim to the Tax Administration | | | | 632,747 | | 642,324 | | | | | | | | El Brocal - | | | | | | | Payment under protest of the tax liability for fiscal year 2017 | | October 2023 | | 5,993 | | 6,079 | Forced payment of part of the tax debt for fiscal year 2014. | | January 2021 | | 834 | | 1,314 | Payment of the fine for the benefit of reducing the fine for fiscal year 2015. | | January 2020 | | 190 | | 269 | | | | | 7,017 | | 7,662 | Río Seco - | | | | | | | Forced payment of part of the VAT liability for 2012. | | July to September 2019 | | 3,229 | | 3,232 | Forced payment of part of the tax debt for fiscal year 2020. | | November 2022 | | 613 | | 620 | Payment in force as part of the tax liability of year 2020 | | February 2020 | | 77 | | 4 | | | | | 3,919 | | 3,856 | Huanza - | | | | | | | Payment under protest of the tax liability for fiscal year 2014 | | December 2022 | | 1,621 | | 1,644 | | | | | | | | La Zanja - | | | | | | | SUNAT seizure for income tax for fiscal year 2016 | | October 2022 | | 2,384 | | 2,418 | Forced payment of part of the tax debt for fiscal year 2013-2015. | | April 2021 | | 814 | | 826 | Forced payment of part of the tax debt for fiscal year 2019 | | December 2023 | | 484 | | 494 | | | | | 3,682 | | 3,738 | Chaupiloma - | | | | | | | SUNAT seizure for income tax for fiscal year 2011 | | September 2021 | | — | | 339 | | | | | — | | 339 | | | | | | | | Conenhua - | | | | | | | Payment under protest of the tax liability of the fiscal year 2017 | | September 2021 | | 14 | | — | | | | | 14 | | — | | | | | | | | | | | | 649,000 | | 659,563 |
| (c.1) | During the year 2023, Buenaventura recognized a liability related to the tax claims of the previous years for a total of US$111,823,000: |
| | | | | | | | | | | Tax claim liability, | | Tax claims as | | | Disbursements | | note 31(d) | | 31.12.2023 | Years | | US$(000) | | US$(000) | | US$(000) | | | | | | | | 2007 | | 180,484 | | — | | 180,484 | 2008 | | 259,053 | | — | | 259,053 | 2009 | | 85,053 | | (34,801) | | 50,252 | 2010 | | 98,907 | | (77,022) | | 21,885 | 2017 | | 2,456 | | — | | 2,456 | 2018 | | 2,844 | | — | | 2,844 | Buenaventura’s forced payments claimed | | 628,797 | | (111,823) | | 516,974 | Other Buenaventura’s claims | | 3,950 | | — | | 3,950 | Other Buenaventura’s subsidiaries forced payments claimed | | 16,253 | | (1,317) | | 14,936 | Total | | 649,000 | | (113,140) | | 535,860 |
| (d) | Corresponds to collections that are deposited in a restricted account that can only be used for the payment of financial obligations maintained by the subsidiary Empresa de Generación Huanza S.A. (hereinafter “Huanza”), in accordance with the financial lease agreement signed with Banco de Crédito del Perú in 2009. |
Likewise, during December 2024, the Tax Administration issued an income provision, collecting the withholding accounts that the Company maintained at Banco de la Nación on that date. The funds are being used to pay the Company’s tax debts. The movement is presented below: | | | | | | | | | 2024 | | 2023 | | 2022 | | | US$(000) | | US$(000) | | US$(000) | | | | | | | | Beginning balance | | 1,058 | | 1,092 | | 359 | Increase | | 8,877 | | — | | 733 | Decrease | | (33) | | (34) | | — | Ending balance | | 9,902 | | 1,058 | | 1,092 |
| (e) | Corresponds mainly to current year refunds applications that are pending as of December 31 of each period. |
| (f) | Corresponds to withholding deposits maintained at Banco de la Nación and, in accordance with the tax law of Peru, can only be used to pay tax debts that the Group has with the Tax Administration. |
| (g) | As of December 31, 2023, the balance includes an account receivable related to the sale of mining concessions of the subsidiary Chaupiloma to Yanacocha for US$1.9 million. |
Likewise, during 2022, the Group recorded a loss of US$2 million, which is presented under the item “Others, net,” see note 28, related to the sale of the Mallay mining unit (original amount of US$7.3 million), which was transferred and collected from a third party in May 2022 for US$6 million. | (h) | Below is presented the movement in the allowance for expected credit losses: |
| | | | | | | | | 2024 | | 2023 | | 2022 | | | US$(000) | | US$(000) | | US$(000) | | | | | | | | Beginning balance | | 26,417 | | 26,382 | | 30,897 | | | | | | | | Provision for other receivables, note 28(a) | | — | | — | | 253 | Provision of the year | | — | | — | | 253 | Foreign exchange difference | | 907 | | 35 | | (59) | Write off | | — | | — | | (4,709) | Final balance | | 27,324 | | 26,417 | | 26,382 | | | | | | | | Trade receivables | | 24,567 | | 22,276 | | 22,276 | Other receivables | | 2,757 | | 4,141 | | 4,106 | | | | | | | | | | 27,324 | | 26,417 | | 26,382 |
The allowance for expected credit losses of other receivables is related to accounts receivable from third parties. There is no allowance for expected credit losses of related parties’ accounts as they are expected to be fully recoverable. In the opinion of the Group’s management, the balance of the allowance for expected credit losses is sufficient to cover adequately the risks of non-payment as of the consolidated statement of financial position. | (i) | As December 31, 2024 and 2023, the Company holds accounts receivable with Howden Hodco Perú S.A., due to the sale of its Subsidiary Contacto Corredores de Seguros S.A., for US$8.6 million and US$14.5 million, respectively, which were recognized in the consolidated financial statements at a present value at US$7.4 million and US$12.5 million, respectively. |
In the second quarter of 2024, the Company recorded the final price adjustment according to the contract, resulting in a reduction of the account receivable by US$4.8 million. This effect was recognized in the period’s results under the item “Others, net,” see note 28. Moreover, in June 2024, a collection of US$1.06 million was made. The collection of the remaining balance will be made within five calendar days following the third anniversary of the transaction’s closing date. During 2024, the financial update of long-term accounts receivable generated the recognition of financial income of US$599,000 (financial expense of US$1.95 million), see note 29(a). These accounts receivable were determined based on the contractual conditions agreed upon by the parties.
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