Compañía de Minas Buenaventura S.A.A. (BVN) 28 Apr 232023 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Compañía de Minas Buenaventura First Quarter 2023 Earnings Results Conference Call. At this time, all participants are in a listen-only mode, and please note that this event is being recorded.

I would now like to introduce your host for today's call, Mr. Gabriel Salas, Investor Relations. Mr. begin. may you Salas,

Renzo Also and Chief and first Aldo Macher, for discussion quarter Commercial; Mr. Mr. are Executive Salazar, led everyone, of and available today to President your Navies Director. Officer; for will President Vice us Mr. [ph] discuss by questions Officer. Chief Garcia, our Vice of XXXX Projects; Daniel Massa, Sustainability; President [ph] Benavides Operations; President Vice Leandro our Mr. Mr. Alejandro thank of morning, Juan Mr. Geology Business call joining Manager, Ortiz, and Dominguez, you Hermoza, Mr. and today be joining Chairman; Vice Financial Good results. Development Carlos Mr. Raul Today's of Carlos Juan Mr. Exploration Roger

hand today's include our find you website on views yesterday after Please let On management's on me market that posted and over, that will items. few current assumptions. call was remarks first close. a forward-looking that Before statements touch are Buenaventura's based our release press I note

are While projections assumptions, XXXX. encourage statements undue are the disclosure on not place XX, that in the currently the its information, within expectations results concerning cautioned to and of you you issued statements. earnings April forward-looking on to management I these reliance available release view read believes forward-looking the full reasonable press

now call Garcia. the to turn me Leandro Let Mr.

attending thank for and Thank all, this call. you, Gabriel. morning Good you conference to

Minas We the quarter pleased first XXXX from are present Buenaventura. Compañía de the to for results

on presentation, a web prepared available page. powerpoint have We our is which

down cautionary moment a Before on please to we take further, Slide two. number the statement review go

Highlights three. Slide to on as were follows. Moving

the in EBITDA was direct from $XX.X $XXX Yanacocha. million the compared million sale not include of results 'XX. of EBITDA Buenaventura from in quarter $XX.X first stake million 'XX quarter the to do operations First reported

include the EBITDA compared $XXX.X not stake $XXX $XXX.X Yanacocha. Buenaventura's first the the sale EBITDA, 'XX. First of Again, reached quarter company from associate results to of quarter 'XX million the in including do in million million

reached during First $XX.X treated the X,XXX during in as [ph] compared the operations million was per the quarter XXXX XXXX quarter. day for quarter the and increased its income net XXXX. operations production from not first first per was period to tonnes same 'XX US$XXX.X tonnes quarter the from mine during to compared XXXX. pit in to continuing ramp-up open quarter Underground X,XXX or mine per first tonnes part during million net stockpiled day day reach of income the continuing XX,XXX to Brocal from the of 'XX

ore position the zinc average Net debt and $XXX at years. maturity X.X Brocal led XXXX. stockpiled This increased processing million will reached Buenaventura's of quarter with cash March of XX, in as of be $XXX.X million treated an XXXX. to second plant

to million First the capital quarter compared for expenditures XXXX, period $XX.X same $XX.X million were in XXXX.

XXXX million million $X.X includes and related San Yumpag to First the project, quarter related CapEx to project. Gabriel $X.X

will relative announced On a stake in XXXX. to April on XX dividend XXXX, rail of its receive Buenaventura [indiscernible] $XXX million. March XX, million XX, distribution total

at antigovernment recover operations to February on fully expect for in related XXXX. year, adversely subsequent XXXX Julcani February meet protests, company XX, this XX of quarter guidance. plans The to were and production established XXXX were and first production the During Operations development. impacted to quarters in suspended mine which days this production

the which were to of million, the Slide Total revenues during $XXX is four, the quarter financial to first XX% XXXX. first comparison lower in on our quarter Moving highlights.

transaction XXXX. exclude operations quarter our from before, effect. during the Again, figures first EBITDA million the XXXX was million direct mentioned Uchucchacua As for comparison to we of in $XX first $XX quarter these

during income from the from XXXX in same $XX to first $XXX million first was of for million XXXX. in of million increased $XX a quarter operations the XXXX. our to the XXXX in continuing comparison compared in operations of quarter to Also, the period first million The net CapEx income of net $XX the continuing quarter

to mining in is first than was quarter operations XX% XXXX. temporarily the XXXX the by of explained five, stockpiling year. lower production gold reported This same mainly fourth Latana quarter in at decrease since figure the the on production. the ounces, XX,XXX quarter Coimolache attributable were and mining production Total of quarter suspended [ph] Slide fourth expansion Moving the in 'XX, lower ore as attributable and previous of

being first figure was Silver primarily attributable ounces, in underground of million quarter decrease the compared on was of XXXX. which the quarter as sole due This mine activities impact protest production for of as with mine decrease a reported described. the suspension the XX-day the X.X quarter to the XXXX, adverse this production Julcani producing XX% first during to shows of Brocal at the of due to

a in attributable period same Finally, compared copper XX,XXX X% our tonns, quarter the the production year first XXXX. to to for metric of was increase close the

Moving gold, which and cost year The on to cost ounce ago. sustaining increased in first of almost to first applicable cost of to to sales a our equal operations as sales. quarter all-in of all-in The by were Slide cost US$X,XXX applicable the XXXX, to XX% gold. six, XXXX for per direct per sustaining follows: is the ounce, quarter for from $XXXX

US$X,XXX per is higher For comparison than per copper. year to for XX% X% a ago ago. ton, in a for a than which is is ago US$X,XXX lead year silver, which ton, metric per higher metric which higher year ounce, US$XX.X X%

case which lower the in year sales a cost the Finally, ago. metric ton, XX% applicable to per than zinc, of was is US$X,XXX

of on seven, update. pipeline Slide our projects Moving to

development are one projects. presenting for current in each level snapshot the of we Here, our

Slide to Moving eight. on

expected we mining Updated on for opportunity with granted in in are Environmental for Yumpag, focused mineable and mining to brownfield on case the exploration project, our development. May of permit grade of the less ramps XXXX. projects increase geological main development underground suggests Environmental Our XXXX. model February tunnels. permit exploration

organic the quarter our come maintenance finished and third [ph] impact XXXX. in fees. the regional start way, definitely In we by Working we oil and role power to is with assessment workshop San third contract. the which the have Gabriel, case Authority July. in of to greenfield community start of [indiscernible] line the site May have Codire project, environmental with or the on programming agreement right of transport government an reached currently admitted

please to you will attention, to the operator hand Thank your and ahead. for for the the the I questions. go call line back open Operator,

De go [Operator Alba your comes question. Morgan first Stanley. Please from question ahead Instructions] Carlos Our from with today

processing that you to sold as see quarter? offer lead My the only from of volumes Thank much in and much Or to your you volumes quarter. really the some the QX, third you. everyone. accumulated quarter place then under how during this quarter, this the first how will during Can in question color Good El morning, stockpiles the are Brocal you quarter you and coming is take that second really would the second the given will be stockpiles? processing expect process

to maturity And balance and Net my flow. is the second cash debt flow years. only do has free and and increased. debt the The has has negative has the in your cash with the the increased most last free sheet been quarters part question X.X for several

not Seroteis getting - but we questions you We're do about so as is more investors going probably much situation. and thought. that would address And [ph] sheet. from are concerned paying how the have to more dividends, this as And how are you balance

any going Daniel, be the plans would just the are yes, order improve address That company to on situation? sheet? So maybe, the great. in comments, how balance to that What has you're the

your questions. for Thank you, Carlos,

the Carlos order Juan cash stockpile maybe the Brocal, some how of to in color through a strategies the the terms to will terms we have in we pass pass the And flow. to the But free in answer. flow, First, have we the give is there, this year. – negative of have during of more of plan thing the cash plant terms free quarter

has this of the using because been third of quarter capital. working However, characterized

Now working we used have capital. more

the We have not we Daniel Brocal. row. in we our give ore, example, sure a the year more and all you will this for projects have about treated for information that in And strategies how coming turn for -

And finally, we received Serolerde of the already first dividend. [ph] the have part dividend of the

March the as one second for sure, declare the expect, We Freeport in advance October. during year, in dividends, an normally, and

expect should Carlos, year. if can we additional dividend more Please, Juan give to? an during color So you the

to stockpile around increase ore then will of down we X the million XXX,XXX quarters, of Sure. that up by of year in end We the tonnes quarter of of focus in finalize the and of in stockpile. the to average this in are Brocal XXX,XXX first In ore was the the the stockpile. The an asset we with open mining quarter the up this pit. third tons of XXXX operators volume end in coming the coming with that tons stripping year on around

processing we material getting is copper mainly pit. of we that will open the see material. because this contain to of This pretty quarter that first the closer in copper. transition By with is closer the XXXX, The much mine the and that underground is same mainly areas complete we're poly-metallic

The going producing line volumes of lead are our year. for be guidance in that are we to with the

of and first to So it's the only this way up the processing year to of and all the quarter XXXX. September quarter mining down sequence the last sequence of of

processing in the outstanding first the So pit stockpiles open of the or finalize will we of at the XXXX, quarter from Brocal.

reducing when Thank part of Carlos, better now. believe the - leverage of And It's your will you, temporarily, question following But are we question. we sorry, EBITDA. this our have Carlos. for ratio. we be deterioration times question quarters having second answer next X Yes, from over the the our of a right in the

- Carlos XXXX, ratio, EBITDA. a the we During second the in half second of year, improving last operation - with second very period mentioned, within to the are this believe quarter going quarter is after Brocal recover with we which And and had low the stockpile Juan that EBITDA EBITDA. counted third the treating we the of

to temporary our $XXX and fund loan. will to Yumpaq cash, us permit between going own going to banks. $XX and we we already see San obligations we to to and have up this use need also able committed if And of the be that will with our to million Gabriel. This local are a maturity San are we in This but temporarily to raise Gabriel, this - impact be facility fund could we extend Meanwhile, million.

that and receive at receive be we dividends will with finish fourth that end starting After of will believe the below in also leverage the - quarter, we times. a year. and the Yumpag will we of able Uchucchacua X.X with to the the we ratio year However, third

we're should times. think having to levels down that three on Yumpag the having and go of and tap full EBITDA, ratio - to better For a working better next capacity year, a we at leverage

Thank you.

negative in biggest why Just that quarter. impact It a see Leandro the capital inventories. the to trade almost particular $XX one in accounts question But on that. the on impact. that such on Any big million so not delta is and working we alluded reason line? other can payables, actually, negative is

Yes, Carlos.

As These Brocal and first quarter from the remember, December, of the year, amount we contractors, of the paid the at of basically you El registered year big a last and same situation. during the experienced In we registered end bills Tambomayo. were at were year.

well. temporary So as this effect a is

Thank you.

And Jakusconek question question. Tanya Scotiabank. from from go our with Please ahead next comes your

Good so much question. have taking Thank my you three. morning, everyone. I for actually

years. next at Just about the you for materials, Verde to $XXX guidance Daniel, dividend that sort [ph] annum of Investor be your your million use? good gave know for and per Sierra to us Daniel, you X still I a for number can for Is for Day

think We right levels Tanya. now. copper the of price that the Yes, with

cash So $XXX dividend where is million of and amount be the important generating year. believe We flow. should a between very $XXX per million that

there's Daniel, cost earlier you then, been guidance year? to capital And Okay. your this that change no provided

point this in at Not time.

the still CapEx We of this effect point this for Gabriel. maintain time, same we year. But San are at any at in level evaluating

- you and just to can that San on camps. actually have Gabriel. done And come is San back final I so El you've so we Okay. mentioned then back Gabriel, question the Brocal. my to just But

work Can workshop. remind And me were You're third on Can am we third just getting confused. you workshop carline what permit shot? with totally EIA. the we third this a I right project. I'm have I thought the doing is? - And this then the permitted

the here Renzo for part. of But so The Projects, last permits. our Thank detail President year Macher, you, explain mentioned in the permit, can Tanja, he your well, question. with Vice following we construction

Yes. Hi.

land, the we first, the this have we're is, process do environmental the So land all and talking What [ph] for resin - is permits we mine. already that. construction get we here power We the about of do permit permits have line. have the the for all

different done. the the have a design which impact line, for is now of mine. impact about as We assessment the And environmental the ready than it's environmental

it's So a regulation. different

different two it's So permits.

Okay.

go. I Sorry, had misunderstood. all the had we of to assumed permits I

you're QX 'XX. expecting this a the with I'm is just permit consultation power understanding line then? to going So how that's communities happening the in and doing it, is When and permit that power are you be the

All right that. That's a Yes. after regulation. different

going the the Towards the to of have power end year, the line we're permit for construction

the Is that it you have right. that pretty you last I this have permits? in the All permit big the power need? Because terms Is the environmental, Okay. of construction, much permit?

Yes.

of small the But permits a - There's operations biggest yes. lot yes. and one,

there, the I permits and here bigger every Yes. No, the understand but ones.

critical the on time And get the production by into to line line Okay. mid-XXXX? power on is permit

not. it No, is

No.

time. in monthly X a like have do We the No.

Okay.

what I So up of with understand? you could sort is generators start

always with but power is optimal it the yes. do line, It Yes. to

Yes.

sure. Okay. for sure, No, for

Okay. Daniel, again, maybe And Daniel. Thank sorry, you for for then answering that.

on understanding the be my should are from coming of Brocal we like model this our QX, year El this thinking until Should I it mining how out cash like you. right copper so the underground. Just the model, flow and I just we asset in for get

million, which that the stockpile, get tons that, to XXX,XXX off increasing lead X stockpile thinking from come then zinc it you're starts I of majority the and be to QX. in then And should

copper processed of coming comes comes this is next year. and QX the revenue through So and the get that goes from and and of majority that revenue stockpile that the year, out QX in just

revenue copper year, is the sorry, that entire next - of how QX, should zinc in QX think year. the the coming and things. where QX through and two lead QX about I So it? coming Is

explain of explore can Brocal. are the going Carlos we to process with Juan how Maybe, work

coming How quarterly. the revenues cash flow and the through is

which poly-metallic reason that are April. you ore is in Tanya we mining The -- are we than building the start rate. starting now of at some say at the processing processing the higher that additional peak the the same But stockpile. Can million the up start is that speed mining situation, by outstanding of third about time, we we open quarter. we'll In are stopped we processing a of and reach Then stockpile. pit, ore. the processing the the X of stockpile will the tonnes That's

I in quarter processing as the started And April. We that first be start the XXXX. will completed processed the by we of mentioned, now of stockpile poly-metallic. the But

in the single revenue first concentrates the So lead the it coming and will from next to quarter continue year. now is of up starting April,

Okay.

zinc gave And that's Okay. in the already your lead and in us is your you XXXX pre-release. guidance

that guidance sold lead So year-end? to about should to now the I and zinc, be up is QX think whatever from

That's correct. correct. That's

Thank sense Okay. my I me. much. taking makes Thank appreciate you really to That questions. you. so you

with Carlos next from Please Our Instructions] a Morgan [Operator De Alba follow-up ahead go question from Stanley. your question. is

you. Thank

be and in or of to of able I the these if Just to ramping the sort And this in on Yumpag, quarter stand the in do year? deadline you start the still operations receive fourth up quarter you fourth ask. the later permits or is have what operations the up internally may Where terms guys that permits? ramp

Carlo, Uchucchacua... you – me let which you ask Yumpag, do permits

Uchucchacua...

Okay.

please. in we which order Okay. can have the Well, maybe frame of But to the we in time Uchucchacua are in line give and Yumpag, of what with - market, talked line Alejandro, begin explained will details Alejandro restart are our the however, and times. be you we to

Carlos. Yes. Thank you,

Okay.

operations. just have restart in on We no to to Uchucchacua major two has the permits. issues procedures time of due do terms different situations. have - We the

not that's a major So issue.

side, have. that environmental environment stage what assessment study for permit have approval the getting we final we main were On Yumpag that of the the the on the

go able May, approval. as but should that be was of of should It's gotten get have that, That Ministry permit, the an we just - be May already, a it approval. bringing permit phase construction should should on we that take we have should us together, few We the get to project. first get And a months by to the we scheduled. of by months, it more. After the to within we get into Mines time and should issue parts it for the all a and the few would need

Okay.

just would get you when permit to the for expect And construction sorry, Yumpag?

Yes.

we mine expect developing - are to Carlos. the have the already We at

the the We ramps, are running running accesses.

that the XX With start and ounces in ore May, to ore through areas XX the we X the about start May, ore of have to will to the very expect galleries X making in high-grade license down develop weeks hitting we the silver. will start In we in a or bodies body road, body.

that. So we start developing will

Yumpag transport area, an by of Uchucchacua to the from permit, it kilometers of expect end plant In the processing the it additional be the quarter and XXXX. first to of XXXX per we this or will order the ore year to have

and doing by permit course, best year the try our to Of we XXXX. are up the quarter try to get speed the it of last to

we put to balance more to blend discovered That's the probably XX, are mine the lead access XX underground different that silver. we seeing doing new led year. have Uchucchacua developments of end the sheet in months, than a And by areas there this new of are months. into last silver And in our now XX Yumpag. developments, into the zinc, of ounces So in parallel, and silver, XX some

value. good or polymetallic more it's So

probably, -- stopes. developing will doing we And are start now we these the of

so producing and processing some ore to small plant we are Uchucchacua the on the by stockpiles of start October. We expect of far, production

year, by start production. operations, the much the the X turning Uchucchacua pretty into and Yumpag So end we of

to ore to just in just the still really is one you the transportation Yumpag need And the for that Uchucchacua permit the construction clarify, plant? of just

the between mostly power acceding all or get comps, for processing actually Uchucchacua It's -- the the that is the -- to the transportation for of -- unpack XX but concentrate we done. the we to the line kilometers for a mine also commercialization processing We an the need additional site development plant of along permit the for producing. for have because and permits permit highway. Yes. the will

them the to put final will into So that's that officially permit require we production.

And to for conclude I'd over like Mr. closing gentlemen, ladies back now remarks. and will to floor that question-and-answer the Garcia turn session. today's

be family. we you. are conference I this Thank part Compañía anniversary as we yesterday, have mention work of de And call. proud attending much, this that Thank for projects Buenaventura. we Minas efforts to have have to our company, good seventh for our you our And very day. content. in to a all Thank to go for our you with for further get our and all our collaborators and our have very

XXXX and Quarter that you will Results for Ladies gentlemen, like Conference First your would Buenaventura's Call. participation. to We thank Earnings conclude again

your now may lines. disconnect You