- Earnings call transcript Q3 2022

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Operator

Good day, ladies and gentlemen, and welcome to the Compañía de Minas Buenaventura Third Quarter 2022 Earnings Conference Call. [Operator Instructions]. I would now like to introduce your host for today's call, Mr. Gabriel Salas, Investor Relations. Mr. begin. please Salas,

Gabriel Salas

Officer. Geology Hermoza, and discuss Mr. everyone, will for us questions Chief joining led and Mr. Manager; Sustainability; call Good of Mr. for available third thank quarter Benavides, Macher, to your Executive Project Garcia, Luis Financial our Mr. Mr. Daniel Ortiz, discussion Mr. Director. joining President XXXX today our by President today morning, are Dominguez, Leandro you Officer; Also results. Raul be Chief Manager; of Vice Vice Juan and Carlos Chairman; and Salazar, Mr. Carlos Roque Juan Operations; Exploration Mr. Alejandro Benavides, Renzo Today's

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

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

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

Leandro Garcia

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

XXXX de Minas Compañía from Buenaventura. pleased are quarter results present to third We of the

in our As always, page. available we have web is PowerPoint prepared which a presentation,

further, on go we a to Slide mentioned Before take statement moment the review please X. cautionary

compared quarter in direct operations follows: of with quarter million as from quarter X. third XXXX highlights The Moving $XX.X reported XXXX. EBITDA the $XX.X million Slide this on to third was were

$XXX.X cash the compared to XXXX million quarter XXXX. flow million of XX.X reached USD operating in quarter third Third minus

payment The third flow authority. XXX.X cash operating include SUNAT, million figures quarter Peruvian USD the to tax a XXXX

$XX.X net in XXXX quarter net XXXX. the to loss was compared period million for loss million Third $XX.X same

USD to its XX.X extend of compared million exploration encouraging. increased increase are at in with strategy to quarter exploration quarter mine. XXXX. This on to aligned in operating is results increase exploration $XX.X third focus units very impact life The campaign review XXXX the of the to our million order Third company's the

deposit, is resource million a Net X.X allow double believe reached outlining years. the now. high a to we with of we up decreased and as potential at XX, there us Buenaventura's an XXXX. that have position silver of till are grade September of to amount cash will silver ounces maturity $XXX.X $XXX million reported We debt average least

were same Third $XX.X quarter the million capital for -- $XX.X expenditures XXXX. to compared the second million XXXX in period in

stated Gabriel for Third therefore reach year-end million approximately related and USD quarter CapEx the the has San Yumpag and XXXX related Construction-related progressively activities now gradually million this San includes resuming. $X.X XX XXXX. to Buenaventura at million Gabriel and San project to the are Gabriel by CapEx $X.X guidance expects project. its to

on to corporate our Slide strategy. Moving ESG #X,

will regarding strategy. find key ESG indicators we Here, our some

we units carbon quarter. this last our have We measurement delivered all as footprint in announced

generate, and we'll website. next these develop full plan reduce be we With a our can to COX our these The in is now know report tool, found step much how to missions.

decreased of which of highlights. $XXX third our revenues the lower compared were to the financial the million X, is to In quarter months Total during million X to XXXX. months third quarter year, on XXXX. during to comparison Moving $XXX $XXX total revenues Slide million, in the the XX% X

net months EBITDA XX% quarter third million decreased for XXXX. for income year a operations the our X the was exclude million XXXX. loss of net of X from months reached period comparison $XXX XXXX. the year, quarter in As totaled million of during by a comparison of third comparison months third the loss These of of years $XX period compared we for The of to the direct $XX quarter transaction. to months to of the in third million, $XX the in The increase X comparison million X of Also, few increase EBITDA $XX operations net first Net our million $XXX mentioned first X loss for in quarter the Yanacocha million to third from XXXX. compared XXXX. in increased $XX was the the million XXXX the during effect. the XXXX to XXXX. is to first same to the $XX during $XX to Yanacocha of quarter first before, in XXXX million million direct XXXX In explained $XX of in the a CapEx months in same of CapEx transaction the

of Orcopampa, year. Slide previous on gold of than production. quarter is the mainly lower is of quarter the third [indiscernible]. XX,XXX Moving at explained the stable but XXXX which to production X at in our vein report partially production offset This X, by Pucara by X% higher attributable the and same Total attributable ounces, and the increase the was from production

XX% for in of For production million reported gold ounces, of same the this shows quarter attributable quarter for third the a months the the XXXX. than XXXX, to was in period Silver period XX% higher compared decrease XXXX. total attributable which was first XXX,XXX of X ounces, production X.X

During of the of million X the due was produced, at suspension to primarily the of the decrease zinc compared a months tons decrease XXXX, the months around than the silver which year, XXXX. explained of months same period operation approximately XXXX. attributable same XXXX. compared production production metric ounces, is X in third was in of lower XXXX, the first XX% El to the were quarter X months and X reached increase In In third X Uchucchacua’s XXXX, of production XX% first X,XXX mine was XXXX. -- third of as tons In the previously a ounces quarter in plan tons, metric announced of XX% a [Technical metric change lead period Difficulty] lower the case of In tones, equity metric of sequence the quarter to zinc in mainly XX,XXX This XXXX, lead, to than X,XXX quarter first of XXXX. we comparison lower production the third Brocal. XX,XXX XX% the was the

to a and for Slide ton, were lead, X% X,XXX silver, per USD lower lower ounce, which per the to of which per X,XXX XX% than a higher year in per decreased of on for than ounce, USD which year is ago. ago; applicable X,XXX lower ago; Moving finally, sales. is ounce XX.XX ton, XXXX gold, which gold. year the a ago; a all-in than USD applicable the and a to sales to in to direct of per operations is cost USD in follows: USD per USD XX% metric to metric zinc, is higher cost is ton, sustaining from applicable X% year X by ago; X,XXX sales for metric X, comparison all-in for our The for year XX% first for cost XX% case months copper, X,XXX was costs sustaining first XXXX of than X as months the The which

Slide of our to This X, an is pipeline projects. update. pipeline, on Moving

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

We planned significant total Engineering procurement and relative respectively, for overall to and XX, upside by work project progressed targeted of this San and completion. These relative Slide activities third related loss potentially Gabriel. estimate XX% the on the XX% San to provision the whereby from quarter target portion . uncertainty to of Moving projection. enabling reduces as to to project Gabriel a recovery its commercial of have time during

Slide Trapiche. Moving on to XX,

metallurgical the finished have of testing. on-site We first step column

copper and hand assessment operator will and Thank the to your controlling I asset of aim engagement to the for call for The please column to consumption. work social go impact recovery progressing over attention. questions. second open you will as improving set line testing field Operator, ahead. the planned. Environmental

Operator

today [Operator Tanya Scotiabank. from with will Jakusconek first question And Instructions]. come our

Tanya Jakusconek

questions three ask. like I'd have I to

are, that been on actually And do in That's on first us one are breaking occurring, question. first physically we like those you The issues we were on where construction? start of ground? resolved? Can terms starting just social when my is an update where Like actually Gabriel. give have the we San

Leandro Garcia

the Tanya. you, to third and you Or one? Do want with and continue second then Thank by we one answer?

Tanya Jakusconek

Should supply question that CapEx. have Previously, costs. is constraints, interested There's $XX $XXX a in $XXX second Gabriel? seeing for if is been it from Peru consumable any, $XXX we easing the been of of for in last sustaining then we are modeling relief in only seeing I'm one my has then companies these in easing, be in the And is steel. pressures are million in inflation lower pricing in $XX is some of pressures. hearing to fuel million relief the and which San price on million. million for in easiest Daniel, other been which you terms now what still to million Sure. the inflation cyanide was XXXX And one, a

So X my those are questions.

Leandro Garcia

with much, Tanya. and Daniel Gabriel. help X. our number our And strategy on the San Macher, Project Thank give then in and us will Roque Renzo You very will you X about Manager comment answers the

Renzo Macher

Sure.

finding we are a the we construction, with Currently, when at have work. were the the preconstruction we I [indiscernible], outside kind would that So common one our the of with started activities of communities starting resumed issue authorities. we and after and of this say most X%

already has So move community -- so from we the help pace. at begun, they are already faster training have can a and we us nearby people this forward on-site work the

soft are at process. So we far, start

Tanya Jakusconek

Okay.

the you've X% right you're you So further that communities, complete, as issues access and to is site your now, resolved started wasn't with around communities, of it, fine, and that communities I the you've you've the but starting that. on understood started all you're and only resolved construction

Renzo Macher

Yes.

on going this on-site. work in already there's So

Tanya Jakusconek

to QX again just critical critical milestones ask, XXXX, the look today I of the what Can milestones from construction remind me are for to site? of for your me at the

Renzo Macher

year, second this second And producing architectural will our job the -- be So structural another be revised work. probably quarter we XXXX, late towards next gold quarter. start we our should should concrete bar, of first half then

with been and We working on no these some delays. -- can of have recover on engineering so procurement, stop we

another So probably quarter.

Tanya Jakusconek

sorry. so I'm

half year work. to second year, you're your start next -- and next concrete structural So going of

So now [indiscernible] you're moving.

Renzo Macher

our now and bring can final to half, and we're of construction, start comp, second complete have construction, that's then the to construction, most the we when the full going people earthworks. Toward between

Tanya Jakusconek

QX might right? And slippage I of think I that hear we to of that a Okay. I a of then time 'XX schedule bit Did this because delay. Earthworks, the understood QX from have bit little in

Renzo Macher

Yes.

Tanya Jakusconek

Okay.

then seeing then pressures, where any? inflationary that. the just And Okay. you just Daniel, No, I And CapEx? maybe, on are the on if I could, appreciate if easing,

Alejandro Hermoza

Yes, Tanya [indiscernible].

Tanya Jakusconek

there? Anyone anything. I hear can't

Alejandro Hermoza

I on Hermoza, is this wanted just Tanya, something to of issues social San Yes, Gabriel. add the

Tanya Jakusconek

sure. Yes, for

Alejandro Hermoza

Yes. we social have done the What we after project have.

We for have villages. establishing project. communities on and approaching spaces located reinforce to successful approached We've basically them this been information and further in them working

We spaces explaining was whole that have that most opened very the them, that's of and go resumed to confident positive we and we Renzo are have field into social are many oriented we climate, the strengthening why ramp-up the with confidence, of activities with construction.

and to ongoing feel So on give so what we and effort continue a process, this confident project. we sustainability this social far, on accomplished to have the we is will very an

Tanya Jakusconek

this jobs we on what Or there's them you implemented have -- implemented social for have to and in you construction along? just the -- done? help social we know communities? And programs I their done of you working, that but have Have social mine have front,

Alejandro Hermoza

which into explaining as to with about most course, of also some local conducted workshops, well, -- have And agreements our from more places, Renzo Mine, environmental the along explained, and of the building management. in gotten the on information engage local in workers cases, we authorities also from workshops project. some we Minister and Yes, the are into as authorities, of working capacities environmental

Operator

Okay. that to Perfect. resolved. see Good being

Leandro Garcia

questions two are left. Daniel? There

Daniel Dominguez

Thanks, Tanya. Two additional questions you. from

make can one reductions we especially cyanide have and in [Technical diesel, if been seeing regarding been have some prices, the in first we inflation, some explosives, yes, Difficulty]. The we in

Tanya Jakusconek

you saw that's diesel cyanide, that except it. in some and Anything relief explosive

Daniel Dominguez

Yes.

We the connection. a Sorry, had Tanya. problem with

So period cyanide, around of for X% the X%; if the of X-month we a have last XX%; period between consumables, that and X-month reduction the year, there of compare we is this against diesel, the and around prices of of explosive, XX%. some year

dollar. can that As exchange say that in rate the a for to in quarter, again we the have have have around also, we prices due can consumable inflation X%. between we have an would we X% And of higher overall, labor -- reduction a reducing fourth we to for

Tanya Jakusconek

about what Daniel, freight any And there? relief and transportation, Okay. are seeing you

Daniel Dominguez

I get Sorry, didn't Tanya, you.

Tanya Jakusconek

relief transportation Are transportation, any you [indiscernible]? seeing any in freight,

Daniel Dominguez

Yes. we do. do, We

cannot we the reduction. see do don't been but freights. percentage, have of now in have see of a the decrease we we also We right the a trend amount -- We this --

Tanya Jakusconek

Okay. there? Would just side, labor you That's percent? great. Good relief do said And how the you would a much on relief, a see say you color. -- you know

Daniel Dominguez

Yes. In would labor, X%. to that around it's we say X%

Tanya Jakusconek

call, have should still Perfect. $XX $XXX And then I CapEx, I lastly, don't Gabriel? but to for sorry, the the on be $XX million and San want sustaining just million for million to just using

Daniel Dominguez

to expecting sustaining $XX Well, we Gabriel [indiscernible] From devoted from be estimate what the for the And around remaining be be $XXX be to from that have $XXX And million Trapiche construct between order this project. we and in to for million, $XXX devoted growth, are million say will the and this This should XXXX. revised $XX $XX the CapEx we $XX is preliminary for million. sustained for can CapEx. will which which in XXXX, our of other close San million, now year. $XXX to CapEx can and total projects. to will million million We million CapEx,

Operator

conclude Instructions]. Garcia the question-and-answer of Mr. remarks. And this our portion back to I'd turn to over closing call. conference today's will [Operator for like conference

Leandro Garcia

Thank you, sir.

I wonderful join again for day. have the Before call, time a we today's to thank will us. finish conference making Please

Operator

you now The to now thank again presentation. for concluded. for participation, We'd your conference disconnect. you and has you like today's attending Thank may

Compañía de Minas Buenaventura S.A.A. (BVN) 28 Oct 222022 Q3 Earnings call transcript