COMPAÑÍA DE MINAS BUENAVENTURA S.A.A. 3Q23
Earnings Results Conference Call
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Cautionary Statement.- This presentation contains certain information that may constitute forward- looking information under applicable U.S. securities legislation, including but not limited to information about costs applicable to sales, general and administrative expenses; production volumes; current expectations on the timing, extent and success of exploration; development and metallurgical sampling activities, the timing and success of mining operations and the optimization of mine plans. This forward- looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained within said information. These uncertainties and risks include, but are not limited to, the strength of the global economy, the price of commodities; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present, and other risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the BVN's form 20-F filed with the Securities and Exchange Commission in the U.S. and available at www.sec.gov . Readers are urged to read these materials. Buenaventura assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.
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Agenda
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2
3
4
5
9M23 Highlights
All-in Sustaining Cost and Cost Applicable to Sales
Free cash flow generation
Projects Pipeline: Yumpag and San Gabriel
Closing remarks
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9M23 Highlights
EBITDA Direct Operations(1)
In US$ millions
+27% | 121.9 |
96.3 | |
9M22 | 9M23 |
Cash Position
US$ 222 M
3Q23 dividends from Cerro Verde
US$ 48.9M
28-Aug ressumption Uchucchacua
7-Sep approval of Yumpag EIA
9M23 CAPEX(2)
In US$ millions
12
56 | Maintenance | ||
146 | Yumpag | ||
47 | |||
San Gabriel |
Growth
31
Focus to increase El Brocal's
underground production to
12 ktpd continue as planned
Consolidated Production(2)
44.3 53 58
Cu (kton) | 12.2 | 13.2 | 18.8 |
4.9 | 8.3 | 9.5 |
Ag (MOz) | 1.3 | 1.7 | 1.9 |
111.2 126 142
Au (kOz) | 38.1 | 37.3 | 35.8 |
1Q23 | 2Q23 | 3Q23 | Guidance Min range | ||||
Guidance Max range | |||||||
Temporary suspension of mining activities at El Brocal's open pit until MEIA approval
Notes: (1) Do not include Yanacocha transaction US$ 300M; | 4 |
(2) Consolidated figures includes 100% BVN, 100% La Zanja and 100% El Brocal. |
All-in Sustaining Cost(1)
US$/Oz-Au Eq
Costs Applicable to Sales
1,908
Copper
US$/TMF-Cu
↓10%
6,675
6,291
6,031
3Q23 | 9M22 | 9M23 |
El Brocal:
Copper priorization
1,425
↑34%
9M229M23
Silver
Gold
US$/Oz-Ag
US$/Oz-Au
↑29%
24.422.7
17.7
3Q23 | 9M22 | 9M23 |
1,252
1,126 1,166
Julcani:
Lower grades
Tambomayo:
Lower grades
La Zanja:
Reserves depletion
Tambomayo:
Lower grades
Note: (1) Doesn´t include figures from El Brocal and Cerro Verde
3Q23 | 9M22 | 9M23 |
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Free cash flow generation
3Q23 Cash generation | 9M23 EBITDA to FCF reconciliation | |
In US$ millions | In US$ millions |
+$20M
(1)
Notes: (1) Considers US$ 31 M of advanced payments, primarily related to San Gabriel project | 6 |
Projects Pipeline - Update
Increase value through our diversified portfolio focusing on projects with LOM ↑10 years
Copper
Gold
Silver
Tomasa
Dorita
Chaska
Gaby
Mayra
El
Faique
La Zanja | |
Sulfides | El |
Trapiche | Brocal |
10Y | |
San | |
Gabriel | |
Coimolache | Rio |
Sulfides | |
Seco | |
Uchucchacua
+ Yumpag
Exploration | Scoping | Prefeasibility | Feasibility | Construction | Startup |
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Projects Pipeline - Update
Increase value through our diversified portfolio focusing on projects with LOM ↑10 years
San
Gabriel
Uchucchacua
+ Yumpag
Exploration | Scoping | Prefeasibility | Feasibility | Construction |
Copper
Gold
Silver
Startup
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Yumpag: relaunching a new Uchucchacua
Extending the LOM for the next 15 years
Uchucchacua Mine
Yumpag Mine
Future exploration | Average Grade: | |
↑20 Oz-Ag/t | ||
Average Grade: | ~6km of potential | |
~10 Oz-Ag/t |
Highlights
- Yumpag´s environmental permit was approved on September 7, 2023
- BVN has submitted a request to the Ministry of Energy and Mines to obtain the final authorizations to initiate the deposit's exploitation
- Processing will start in November with the temporary permit that allows us to treat up to 125 kton of ore from Yumpag's pilot stope at Uchucchacua´s processing plant
LOM Resources
Total CAPEX US$
+10 years 80M - 110M
LOM CAS
10 - 12
US$/Oz-Ag
9
San Gabriel: Our next large gold project
Item | Description | Progress as of: | ||||
1Q23 | 2Q23 | 3Q23 | ||||
1 | Engineering | 66% | 81% | 90% | ||
2 | Procurement | 85% | 85% | 89% | ||
3 | Construction | 3% | 7% | 14% | ||
4 | Commissioning | 0% | 0% | 0% | ||
Total | 15% | 23% | 28% | |||
Highlights
Project Milestones
Authority admitted | Start of UG | Concrete Plant |
power line EIA | mining contractor | installation start |
1Q23 2Q23 3Q23 4Q23E 1Q24E
Agani campsite | Fresh water | San Gabriel |
completed | Dam Started | campsite completed |
- 9M23 CAPEX related to earthworks and construction-related water dam excavation reached US$ 46.5 M.
- Additional US$ 40 M have been invested in the project as advance payments for equipment manufacturing.
- Underground mining tender process completed during 3Q23 and contractor will begin field work during 4Q23.
LOM Reserves
Total CAPEX US$
+14 years 450M - 470M
LOM CAS
750 - 800
US$/Oz-Au
10
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Disclaimer
Compañia de Minas Buenaventura SAA published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 15:32:08 UTC.
