Cost of sales of goods and services, without considering depreciation and amortization (Tables)

12 Months Ended

Dec. 31, 2024

Disclosure of continuing involvement in derecognised financial assets [line items]

Schedule of detailed information of cost of sale of goods and services

(a)

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


		2024		2023		2022
		US$(000)		US$(000)		US$(000)

Beginning balance of finished goods and products in process, net of depreciation and amortization		18,748		22,667		30,031

Cost of production
Services provided by third parties		239,804		166,227		185,028
Direct labor		106,022		77,781		67,704
Consumption of materials and supplies		104,063		93,407		94,929
Short-term and low-value leases		39,747		26,794		29,329
Maintenance and repair		22,903		21,601		21,099
Insurance		20,823		16,946		16,118
Electricity and water		14,707		28,729		21,510
Transport		11,763		13,589		13,528
Other		14,912		4,510		6,404
Provision (reversal) for impairment of finished goods and product in progress, note 8(b)		(6,487)		3,851		(1,071)
Total cost of production		568,257		453,435		454,578
Final balance of finished goods and products in process		(18,523)		(18,748)		(33,624)
Write – off of products in process		—		—		10,957
Final balance of finished goods and products in process, net of depreciation and amortization		(18,523)		(18,748)		(22,667)
Cost of sales of goods, without considering depreciation and amortization		568,482		457,354		461,942

See related accounting policies in Note 2.4(x).

Sociedad Minera Cerro Verde S.A.A.

Disclosure of continuing involvement in derecognised financial assets [line items]

Schedule of detailed information about cost of sales

This item is made up as follows:


		For the year ended		For the year ended		For the year ended
		December 31, 2024		December 31, 2023		December 31, 2022
		US$(000)		US$(000)		US$(000)

Materials and supplies		917,531		982,616		915,323
Property plant and equipment depreciation (see Note 7)		571,852		530,199		489,700
Labor (a)		501,678		381,761		343,575
Third-party services		239,547		279,923		246,247
Energy		209,925		249,039		243,549
Change in work in process inventory		49,764		13,538		(1,358)
Variable lease payments, low-value and short-term leases		19,775		17,741		13,369
Depreciation on right-of-use assets (see Note 7)		11,152		11,117		12,708
OEFA and OSINERGMIN contributions (b)		8,208		8,015		9,308
Supplementary Retirement Fund contribution (c)		7,861		7,467		6,371
Loss on materials obsolescence, net (see note 5(a))		6,897		12,496		4,053
Management fees		3,227		3,098		2,540
Intangible amortization		2,342		2,342		2,342
Change in finished goods inventory		2,110		14,165		(10,368)
WIP stockpile write-offs (see Note 5(b))		—		1,527		7,668
Cost related to COVID-19 pandemic		—		—		43,672
Other costs		36,910		48,475		45,439

		2,588,779		2,563,519		2,374,138

(a)

For the year ended December 31, 2024, labor includes an expense of US$138.4 million related to profit sharing (US$130.9 million and US$118.2 million for the year ended December 31, 2023, and 2022 respectively). In October 2024, the Company reached new four - year collective labor agreement (CLA) with one of its two unions and recorded nonrecurring charges of US$30.6 million in third quarter 2024 associated with the new CLA. The agreement follows the successful completion of a new CLA with the second union in April 2024 for which the Company recorded nonrecurring charges of US$66.5 million.

(b)

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 0.14% of invoiced sales and the calculation for the OEFA royalty is 0.10% of invoiced sales for the year 2024, 2023 and 2022.

(c)

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.