BVN - Earnings call transcript Q1 2022 | Compañía de Minas Buenaventura S.A.A.

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Operator

Good day, ladies and gentlemen. Welcome to the Compania de Minas Buenaventura First Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode and please note that this call is being recorded. I'd now like to introduce your host for today's call Mr. Gabriel Salas, Investor Relations. Mr. begin. may you Salas,

Gabriel Salas

Also of and Macher,Project Mr. Chief which Carlos Benavides, to first for discussion cause quarter Director. Ortiz, Mr. conjunction are within statements. considered are Executive release that and with actual various our Mr. Any be ahead. led factors XXXX. With everyone, looking we Aldo turn XX, available and today Mr. to of your President Leandro, Vice statements This and for Salazar, Juan Garcia. will materially us discuss I could Explorations uncertainties risks April risk such Chief conference by questions Mr. discussions. to press Vice on call from to statements Officer. Chief Garcia, Commercial; in our to XXXX Mr. Daniel Geology let go Renzo Mr. Leandro our filed Officer; Executive Manager; Benavides, thank Business morning, read encourage me cautionary Hermoza, forward-looking Alejandro over within subject Sustainability; differ call joining results Juan Carlos and the Dominguez, the you the Mr. please statements should now these President earnings statements today will that, concerning Mr. Leandro be our include release joining Financial Vice Masa, forward disclosure Good full call Officer. you results. Manager; Chairman; President of Mr. Raúl Development and Operations; and Roque Today’s

Leandro Garcia

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

we health wellbeing your presentation, at this this like would start you, friends’ time. to and family difficult and we wish Before

present first Buenaventura. for the to de quarter pleased Minas XXXX of are We Compania results

webpage. We have which in prepared PowerPoint which our is presentation, available is a

please X. on a moment Before statements further, we review a Slide cautionary go to take shown

Slide as to Moving follows. X, on were highlights

’XX, first million closure reflecting from the to from contribution operations in Zanja’s First sale $XXX.X million, Newmont’s $XXX direct stake in million of costs. quarter ‘XX resulting reached reported La $XX compared Buenaventura’s quarter to $XX.X EBITDA from and million Yanacocha future

reached First quarter ‘XX XXXX. $XXX.X EBITDA, compared to associated in quarter including million first $XXX.X million company

million quarter $XXX.X period First same to XXXX. in $XX.X reached income the million for compared ‘XX net

‘XX increased from million exploration. on in units to year, exploration strategy primarily at last quarter focus same with First period operating million the $X.X $XX the aligned to company's

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

quarter the Project. CapEx costs CapEx $X.X First Project CapEx when restarts. the strategy the structure continuing and efficiency mine related in ‘XX San to the progressively operation The in million company reducing of Yumpag cost improve million the to includes Gabriel Uchucchacua fixed $X.X to related at

XXXX. X to an a million development required Mine project for its in plan be production updated exploration. XXX Brocal, cancelled between ounce million expenses immediately the cash resulting $XX.X guidance and decrease million was Peru’s Debt company progress XXXX silver to First Buenaventura in Buenaventura’s full ‘XX second Aligned March expected Project syndicate On of XX, XXXX. construction, $ the million, XX on net million in are million XXXX for in million, X.XX XX, reduced and to EBITDA the quarter Net quarter reached $X.X position ‘XX were deleveraging, with X.X $XX to mine $XXX fully reported El production due will expenses, quarter San enabling the new the permits, revolving compared a COVID-related million. company’s estimates the in to the the March all year achieving of facility. ’XX. COVID-related $XX million loan approval amounting $XX mining and Aligned with March $XXX.X March also first to commence debt times X, of of its Gabriel commitment ratio. paid Government on to to received million, as company

Slide ESG Strategy. to X, on Corporate Moving

year, the working progress use. metrics. results As change find materiality our chain, will made we and the [ph] will first start next in is supply standards the you on The presented climate gaps slide. on of the here quarter energy shown before, This this and closing fortifying in of

to can on Slide Moving our you some X, key regarding here indicators find Strategy. ESG

responsible the of and on of measuring XX% renewable pit we example, For energy, our XX% have XXXX, pillar, upgrades. water hydroelectric used at will from at plant. year, footprint. we circulation committed in is And environment this our on our Buenaventura focus power operation, first the of quarter our carbon achieving open to underground XX% primarily our management, Also,

always Regarding continue will have we top our the workers’ and of care social we our working pillar, this. taking priority is on mentioned, as health

XX% achieved million than local a have have of social more our We we made in commitment. fulfilment Also, purchases. $XXX

construction Finally, the and we regarding key generator. the focus pillar, Gabriel our government's and optimizing are will of EBITDA value Yumpag San Projects, which on e

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

increased in the million the first As period. million first to year. in we compared of for ‘XX, to operations quarter quarter EBITDA quarter direct mentioned comparison increased reached first million last $XX of year. to our $XX EBITDA first Also, in million of for before, associated $XXX $XXX for million from last The company $XXX including in comparison quarter XXXX the the our quarter $XX same the during same to million CapEx the

the the shows first suspension this on metric attributable slight to was last quarter of operation lower first was of were of the X,XXX the at to of which the XXXX, of ounces, to same than metric XXXX gold first first production a X,XXX production. which higher the silver of direct The of XX% ounces, decrease to Total on of zinc In in equity produced, and Uchucchacua. year. Slide result quarter figure X tonnes quarter lead, was quarter production previous in first in this of This XXXX. tonnes which the is is comparison the quarter compared decrease a reported a figure is quarter of XX% X quarter first case Moving XXXX. million the In attributable the year. XX,XXX quarter X% ‘XX, of compared X, the of production reported of

Finally, was metric attributable first for production year we tonnes, increase our the copper XX,XXX of XX% an when of the XXXX. period of the quarter with same compare

ago; sales in as XXXX Moving follows: per cost to X. for and payable. for lower a XX% our silver, operations is applicable which lead, is tonne, is a ago; year than XX% $X,XXX All-in for for X% Slide tonne, $XX.XX per quarter metric XX% to ounce on than ounce is from $X,XXX by lower sales gold, metric ago. a per for $X,XXX which sustaining copper, in ago; to posts applicable $X,XXX costs the The which were quarter year sustaining direct XX% The which higher decreased costs comparison of to all-in ounce, year higher this year than first the to per per cash.

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

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

construction early This level slide, the Slide obtained Here our approval we all we the enable the in requirements. to us San projects XX, works. commence for current of each and the immediately presenting Gabriel, are In of development -- this

to the We are service order starting currently and for purchase release contract construction. for

metallurgical testing Onsite Trapiche. is XX, Slide progress. to column on on Moving

up environmental are And their report two missing We be workshops on with quarter date one field. second one only four assessment the finish The held completed of in we communities stages. of cooperation We have favorable out results. final of on the land ‘XX. access five to powerline agreement by are

Coimolache´s the board for the Finished you for Moving to • on XXXX´s operator back confirming to project. to Operator, zone. high approved hand we'll open Sulfides grade your And viability the Tantahuatay’s drilling call line Slide ahead. please program In-fill go attention. questions. XX, stage. Thank

Operator

Thank you.

Carlos Instructions] begin We will Please De [Operator ahead. session. question the now Alba first go Morgan Our Stanley. from from question-and-answer comes

Carlos Alba

morning, gentlemen. Good Hopefully doing fine. Yeah. you're

to First for that question an that the if the from operation? at if but has Brocal? to you not, us plan? production discrepancy flow other could comment there on cash the is the just of any other really probably EBITDA And And negative, then is besides could if and operations led meaningful that was mining generation. any Cash the changes also metals EBITDA El production would other I'll you you strong. more what gave And impact operation? revised What between meaningful, be on cost ask even the color was give

of I -- the operations, profits on on think taxes Thank you. that much -- much operations. continuing these with guys booked that how the potentially it operations. paid has to cash from you discontinued How taxes, the the you discontinued do results

Leandro Garcia

was that And a have the question the you. is Carlos. production reconciliation the advised you, the And of But cash event should market. we With the the Carlos plan. respect Thank -- in your to EBITDA question more have give March about with will this to generation. consequence of color to change mining other we of Brocal,

is course, here Of Daniel.

first, begin with go So Brocal, Juan please, of question the ahead. can Carlos we

Juan Carlos Ortiz

or Carlos pit. the west Yes, happens the Thank the question. occurs landslide of in you, open the flank for

that four slope area and area the plan that remediate safe condition have And of So that in we the have months is order probably area, in a to material three place for remediation to to between loose for that the to remove take to will in right now. shallow particular mine.

remaining South the area the open the with north. continue and the will section in We pit, also of of mining

addition right that to the In the we to the we plant supply main polymetallic ore to processing from the -- next to stockpile ore fit will that, to crusher. have

delayed more and some plan, really we we a of of this in going the the the on will will production by gap X.X review impact production little We're for opportunity, have due and consequences bit some probably And still a probably ounces we're more the this last the been the for far. conservative works opportunities reviewing so of a to be the captures catch single silver of will done. reschedule be be we order have the delay million opportunities this of looking Also, areas silver. reduce will year million-X.X progress side be on open in certain on in accident. lead. This to these XXXX. production So XXXX, [indiscernible]. the information And pit increase or range from into -- this that of schedule, to the on But will studies

but slopes of due of in pit. open cost, to the it’s -- material to additional accident, of open $X shallow million be it the to still wet side $X this expenses the of the range the assessed, being of the believe slopes pit the due removal we the Regarding will additional on to million

Carlos Alba

Juan you, Thank Carlos.

Leandro Garcia

please. Daniel,

Daniel Dominguez

paid taxes the morning, we free cash three between sold were you taxes. And due operating This In this operations the $XX purchased increase discrepancy in is this the in two [ph] Good related for the factors. you, this reasons. sale million -- One that $XX working in Yanacocha increase Yes, our the is which of explained the for explanation the Thank And was three flow main in and order is asset, And by we the Leandro. million. which asset that Carlos. is March. around direct -- taxes from the EBITDA reported mentioned. tax we asset. to the results. under February, capital, the consolidates And Condesa the in is -- is

the First December, we adjusted and that year. and at cuts, million of Remember contractor to $XX in the end million is $XX provision headcount due between for we the that the to also contract Uchucchacua. provisioned

and So these made paid provision February. in December. January in The bills were was

of cash disbursement, paid out to $XX Brocal. provisioned order there we million in between February. $XX the So why claims a flow property $X provision million. made February. million EBITDA we cash between that and December December, the had This the renewal The were In in is and at January million. $XX year same you also, saw discrepancy That's is And in executed worth but January and had in $XX December, This our the last the of in El the and costs, our We between the quarter end first some these for million effect. the effects million. insurance. went of is the free were of to around and is payments a $XX around

Carlos Alba

Daniel. you, Thank

Operator

from comes Scotiabank. question next ahead. go Our Instructions] from Please Jakusconek Tanya [Operator

Tanya Jakusconek

I everyone. questions. so my three Yes. call. Good taking much morning, Thank you for have

Brocal. back comes The first question El to

mine. no So was I the you metal check -- adjustment to base just the there copper the of either to wanted to why with aspects

you You lowered the guidance for on to Can silver the base the case? explain nothing me products. but why that's metal

Leandro Garcia

Carlos. But two more Tanya, One ahead. Please, that is is you Juan open and in we underground have detail, mine. give operations the Carlos, the Juan should other pit the America. go

Juan Carlos Ortiz

changed In a Leandro for Leandro. on you was the mentioned, copper impact not production Tanya. guidance XX% underground is the and pit regard the have by as and of the the of mentioned, copper that Yes, of the any the we question, year. open wall accident. mine I of lead don't not Thank for because of Yes, was impacted wall South were norther for this zinc, the open as pit

to additional but expected. we that So material, put supply fleet we production to have remove extra will

and call I be So we shared conference review see works. impact in with a when on reduce reduction bit in money have little probably, will progress time, market mentioned, in bit at that But stability zinc of and the to we more lead. our silver, be silver a for That zinc. believe this information and we in the of on order and gap equivalent can the effect later income as next the on remediation will will the the lead the increase if of we little the main or on with the

Tanya Jakusconek

where what to away it's you portion when additional trucks I'm the lead from it had you've able zinc we've that then clean move pit we've So the mudslide to zinc lead working and back, where that you is I'm the And up the trucks the the the that's and -- bring had to understanding you're and got sort pit of on hopefully going of what to from take push cleanup. understanding? be and is

Juan Carlos Ortiz

away wall from that the landslide, exactly, meters Not southern like is that XXX mudslide the a suffered. we is

So southern wall, work. continue we with the the

pretty wall wall. is are putting up southern from much catch We weeks meters have trucks of landslide. additional The cable XXX this two now halt in a and we to away with the southern work

the pit, about work that of open we northern is mudslide, So one area. north northern phase the that. with wall to don't in have continue we will of In the interference so the kilometer any

of stopped are weeks. now. for So words couple receiving a there works right we Well, their we

two the we believe we was we reducing can accident. weeks we delay So catch will in are that with We ways for in these the production with looking silver plan. for the gap continue that during the up But production probably year. the might more that of but that substantial the landslide a trade-off will have trade lead little do terms bit lead income really between from income a not We dollars. single single silver, we of in along with had

Tanya Jakusconek

Okay.

to should year? just million really that we $X for costs operation additional so then million And the is put that $X cost this

Juan Carlos Ortiz

Yeah.

Tanya Jakusconek

we it And an is in getting terms of updated or mine plan, year that year? Will be next Uchucchacua. this

Leandro Garcia

Tanya, your thank for you question.

on -- when going to -- are is market, you Uchucchacua. work we As the in reinitiate resume of course the worry about

working We are hard. very

Uchucchacua we'll But year to finally We think -- schedule. we are again. back be shorten the date expected trying the next to expect that to

Tanya Jakusconek

of was the year Uchucchacua the remember half the the towards it you next year? And second of end or year,

Leandro Garcia

half. second The

Tanya Jakusconek

Second half.

Okay.

Can starting XXXX next production? get my on then construction sorry, had and some here Congratulations to And when there. --someone permits gives we me the from of with milestones do see just question need you to we the San getting to Gabriel. maybe

Leandro Garcia

to The And And you a that has team I it. and we is answer. he With Project take And congratulate the the homework all have to permitting possible. us opportunity make. give been can correct Renzo made very details Manager. our Macher, tough the this did

Tanya Jakusconek

you. thank Perfect,

Renzo Macher

you very thank much. And

the missing as work, with orders pre-construction years. infrastructure the authorization what equipment, for couple is the maintaining and that the for inactive have a been start earthworks well main to So we and has current we of as

end at production. the bar will to That area first start is to going today. the we're construction of end half towards we're the And going this of be first of XXXX. -- first finishing be what aiming that towards commercial that's the The XXXX. So

Tanya Jakusconek

from construction watch So there the in to second critical that commercial XXXX, half. milestones are production But -- are anything us within for? for

Renzo Macher

during we Well, working XXXX, -- have engineering. during XXXX on been

passing We on have XX% [ph] engineering.

the the reach project to -- water the we're of of going think and And is I information foundation end the the have quarter heavy it beginning of then we're be the the another of XXXX. will which first be project more to to the the that campsite, ready milestone the of in the the that that XXXX. And dam. on of uncertainly will should I the construction. guess reach And less second when of that's formation. milestone revealing kind is somewhere going towards to be signify plant foundation of of the

Tanya Jakusconek

Okay.

you foundation the XXXX, So correct by by as the and a construction, you the till I the going time understood understanding? the plant And down QX, of bit heavy that you're in it, of XXXX. to then XXXX be campsite Is second half construction XXXX QX, then have, in pour of place. from putting end gold so

Renzo Macher

Yes, that milestone the is. level foundation. foundation of models the foundation sure yes. about all foundation was I Confirming installation, will reaching the just putting the first -- not switching we’re the make the our where

Tanya Jakusconek

Okay. Got it.

So the that. prep for work

So the technical side.

that. for you my And for Daniel. maybe last thank Okay, question, then

an We're the in Cerro expecting XXXX. some update Verde dividends. Just on

what in So are are an dividend update you seeing expecting or on a maybe you QX?

Daniel Dominguez

Tanya. morning. Yes, Good

We to results. related dividends are are to close today, XXXX $XX These million. receiving

We -- sort this is also valuating. something we and expect that are of

additional report. yet half for evaluating But second figure an the we the don't dividends of half. by But additional have we expect second We to any are year. dividends

Tanya Jakusconek

Okay.

everyone. million. congratulations Thank well $XX good Have great you. additional on Okay, That's weekend, news. the a

Leandro Garcia

Thank you.

too. You

Operator

of [Operator back like you in are There star questions Garcia to today's remarks. our question, call. closing would Instructions] conference to Again, concludes more if That queue. portion a it turn please no have the I one. for press Leandro then question-and-answer

Leandro Garcia

you. Thank

XXXX to you like conference June a again. finish York Thank we for am us Eastern will time And call, the our much thank today. you making have in Day, XX Thank Time. at wonderful day. which Standard New today be join invite today’s on held X you very would again. Investor you Before to We to

Operator

gentlemen, participation. again and XXXX call. your concludes conference would quarter you We that like Buenaventura’s Ladies thank results first earnings for to

disconnect. You now may

Compañía de Minas Buenaventura S.A.A. (BVN) 29 Apr 222022 Q1 Earnings call transcript