BUENAVENTURA MINING CO INC (ifrs-full:DisclosureOfFairValueMeasurementExplanatory)

33.

Fair value measurement

Fair value disclosure of assets and liabilities according to its hierarchy -

The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities:

			Fair value measurement using
			Quoted prices		Quoted prices		Quoted prices
			in active		in active		in active
			markets		markets		markets
	Total		(Level 1)		(Level 2)		(Level 3)
	US$(000)		US$(000)		US$(000)		US$(000)
As of December 31, 2017
Assets and liabilities measured at fair value:
- Embedded derivatives for concentrates sales, net		7,424		-		7,424		-
- Contingent consideration liability		17,570		-		-		17,570
- Hedge instruments		28,705		-		28,705		-
As of December 31, 2016
Liabilities measured at fair value:
- Embedded derivatives for concentrates sales, net		1,524		-		1,524		-
- Contingent consideration liability		19,343		-		-		19,343
- Hedge instruments		3,863		-		3,863		-

Financial instruments whose fair value is similar to their book value –

For financial assets and liabilities such as cash and cash equivalents, trade and other receivables, trade and other payables that are liquid or have short-term maturities (less than three months), it is estimated that their book value is similar to their fair value. The derivatives are also recorded at the fair value so that differences do not need to be reported.

The fair value of embedded derivatives is determined using valuation techniques with information directly observable in the market (future metal quotations).

Financial instruments at fixed and variable rates -

The fair value of financial assets and liabilities at fixed and variable rates at amortized cost is determined by comparing the market interest rates at the time of their initial recognition to the current market rates with regard to similar financial instruments. The estimated fair value of deposits that accrue interest is determined by means of cash flows discounted using the prevailing market interest rates in the currency with similar maturities and credit risks.

Based on the foregoing, there are no important existing difference between the value in books and the fair value of the assets and financial liabilities as of December 31, 2017 and 2016.

BUENAVENTURA MINING CO INC | CIK:0001013131 |

ifrs-full:DisclosureOfFairValueMeasurementExplanatory