Earnings call transcript Q4 2022

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Operator

Good day, ladies and gentlemen. Welcome to the Compañía de Minas Buenaventura Fourth Quarter and Full Year 2022 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. Please note this call is being recorded.

At this time, I'd like to introduce your host for today's call, Mr. Salas. Gabriel

begin. may You

Gabriel Salas

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

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

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

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

Leandro Garcia

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

results Minas full XXXX de year present Buenaventura. We and are from pleased for our the quarter fourth to Compañía

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

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

Buenaventura's quarter stake operations XXXX from direct to and Full in slide XXXX year million follows: fourth of direct million fourth to was the the million includes US$XX.X EBITDA in resulting million $XXX a compared EBITDA were as $XX.X on three. highlights significant with compared as Moving XXXX. $XXX.X from $XXX.X increase full sale reached million, from reported operations for year The Yanacocha. quarter

reclassification XXXX net loss for includes $XX.X XXXX net compared loss Yanacocha. XXXX operations, fourth was Fourth in $XXX.X in mainly million to quarter the Full million to income loss million, result full quarter reached interest million year compared $XXX the discontinued US$XXX.X net year of period due The XXXX. a same of $XXX.X net Buenaventura's net million income for the XXXX. from to

quarter its revised XXXX to was XXXX. million Fourth fourth of focus and $XX.X old increase life units. quarter compared increase exploration million of strategy exploration $XX.X This to on in to our company's mine the with units in operation the order increased to aligned extend

Net increased [ph]. Buenaventura's operating years. XXXX. XXXX year XXXX units cash as in $XX.X of to debt million average million of million $XXX.X to December decreased exploration Full with an XX, full position million from at $XXX.X reached maturity year $XX.X X.X

capital the last XXXX XXXX were in quarter million $XX.X to to expenditures in million $XX.X capital compared $XX.X reached million expenditures million Full year same compared year. Fourth $XXX period XXXX. the for

Verde. full million. and project XXXX year Buenaventura CapEx $XX.X includes related paid received million December to to in dividend million Full in to Gabriel Buenaventura million total San Yumpag $XX.X million. relative XX, $XXX On received project. stake year a XXXX of $XX.X $XX.X total Verde its XXXX related the the dividend by Cerro Cerro The was

when in X Phase operations was La were completed. Zanja October Mining XXXX mining at halted

shareholder share/ADS, Board company's sulfide aligned project. continue remains underground to Buenaventura's copper, with commitment will leaching to US$X.XXX of while to it continues proposed profitable that However, amount a related the dividend of has in gold, Directors the payment exploration Buenaventura the the value. extent per

social normal issues have operating assets all slide X; social, logistics Buenaventura's under encountered operating Buenaventura's been other Despite normally, mining and damage has on-site Today challenges. operations Moving have are there while been the no Buenaventura conditions. off-site assets environmental on to property political some to and or delays.

lower slide quarter million, decreased XXXX. XXXX, to to X X% $XXX on the during $XXX comparison fourth to $XXX Total financial year Moving year in of compared highlights. XXXX. quarter The revenues full during fourth to million total is the which full the revenues million were

year we EBITDA As in to $XX of XXXX XXXX fourth from $XXX million from in comparison $XXX EBITDA the before of $XX effect. to mentioned transaction direct These quarter Yanacocha the million for during during figures exclude our direct operations million fourth XXXX. full XXXX. was million to quarter the for operations comparison full the year decreased

comparison income in was during period XXXX. full of of for our of Net year loss net net full fourth to XXXX the $XXX -- for year quarter to the XXXX. reached for the $XXX income million a compared same in Also a million $XX net million million XXXX loss $XX

The fourth quarter CapEx to $XX of XXXX, $XXX million, In year CapEx of XX in full increased to increase $XX in to million the million XXXX. comparison of full year fourth a XXXX. in XXXX the the the quarter the totaled compared

production year in six of quarter The gold full XX,XXX The production is which with is XX% XXXX. ounces year. low at Moving XXXX in planned the total gold than XXX,XXX mainly lower than of quarter in X% the and line sequence previous the seven XXXX lower This and same of on decrease production explained attributable attributable same figure was on production. higher was lower slides the in the period attributable to ounces, the by grades. reported fourth mining Tambomayo,

decrease to of quarter of Silver attributable fourth reported figure shows was production the in X.X this compared XXXX. for quarter which the million ounces, XX% a

was suspension full announced During explained of year full plan mainly sequence Brocal. than XXXX, El XXXX. and decrease million This the previously production the as change was Uchucchacua's at year ounces, the of X.X mine due a silver attributable XX% primarily to of operation the was lower of

production The tonnes, XX% the compared -- quarter reached metric XXXX. decrease XXXX. XXXX, produced, the the fourth In of zinc quarter to metric than X,XXX fourth of in period were of in XX,XXX XXXX, year lower zinc XX% tonnes same a full

in of tonnes case full which is was lead, production lead XXXX, of equity X,XXX XX% metric of the XXXX. metric year The XXXX fourth the approximately to the comparison quarter the XX,XXX tonnes was tonnes comparison metric XXXX. lower quarter XX,XXX fourth In to of around in in production in

our copper Finally, fourth XX,XXX attributable production close was the to of metric the year for quarter tonnes.

production same full the attributable the XXXX, During copper compared year to a XX% of tonnes, XXX,XXX increase was period XXXX. metric

The sustaining sustaining the X% direct sales. operations to year all-in for increased applicable full sales to on XXXX by and to cost full from were gold. per ounce follows. the XXXX eight, Moving The our cost year $X,XXX slide applicable cost to all-in as in cost of

per X% for ago; For gold, ago; than ounce than per $X,XXX USD XX.XX copper, a which USD tons lower XXXX lower is X,XXX a with which lead for than aligned year the X,XXX USD year XX% metric year a per ounce higher metric per tons fee. for is is ago; X%, year which silver, full

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

are each snapshot development in pipeline Moving projects. one of of on for one to slide projects update, presenting our level the current here, X, we

This project portion EPCM significant work procurement by slide relative time a of sorry respectively, overall to line targeted a XX% to recovery to of for completion. Gabriel. on activities and and XX Engineering as lost and the this total its a progress potentially project XX%, Signed and awarded BOOT offsite thereby -- project uncertainty relative Moving to San power completion. reviews planned contract. contract related enabling targeted Ausenco's the

Impact the Assessment started field set ROM XX, Trapiche, second planned. metallurgical slide Moving progressing social on and to engagement and testing on-site test. column leaching work Environmental as of metallurgy

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

Operator

Please question. at Alba Ladies today go from session. question-and-answer and the first this time, gentlemen, Instructions] Morgan our And from ahead with your [Operator De begin comes Carlos we'll question Stanley.

Carlos De Alba

Good the you right? presentation. market My million Leandro for came question on is The above $XXX to expectations. maybe CapEx, morning of Thank $XXX million guidance everyone.

what you maybe little that than XXXX? had what mentioned company little bit it's bit was to allude or the apparent you color can of explain provide also if if -- little what increase higher before, or driving a as increase. this, in spending I on could So, you a think planning is a bit So it drove had

are what least is at maybe will maybe will in flow operations to expectations have terms of what can on and flow the you or comment as some dividends going be debt selling you planning. this issue you or can assets? planning that that understand cash the cash company free If reduced also, question fairly on of CapEx. are the bridge to to And your I address bridging interesting gap if Verde, maybe this is gap if is late you between what Cerro know don't

Can increase the income for flow is you the in And about into talk that in obviously, areas XXXX? noticed, lines then spending. exploration non-operating we the exploration statement, you. the what Thank and operating the units budget in two exploration your for

Leandro Garcia

San Thank to the explained following doing we of is year because continue the CapEx you mainly XXXX. have And we into Carlos. increased Gabriel. The for the stoppage in have work

we are For need dividends cash in of also We plan. the we going do CapEx the Cerro to are we state and a Verde. XXXX, have difference, the the --

is cover And needed year CapEx. some financing for some -- this to increased maybe the

questions. color Carlos Juan and more Daniel Maybe can those give you of

Daniel Dominguez

for Thank you, Leandro. your you, Thank Carlos question.

guidance the million the able for of need El the to tailing impact of tailing this at around figure developing year, million the the capacity $XX close at $XXX carry-forward to in XXXX Brocal, we is that San devote million. from The expand plant is be breakdown will around XXXX will and XXXX. million CapEx for of expect San Leandro the dam, management to to dam Gabriel the we this $XX there. the As capacity And increase Gabriel, mentioned $XXX at million new delays the for around And we this in $XXX due is to have we

XXXX, in greenfield $XX to close million In we exploration for $XX terms our for million. budget million to are $XX million our are these $XX of of and distribution projects. operations the expecting between The exploration $XX to million and

to fund this we're how for back CapEx this to requirement going Going year.

million have to we going use. We in that are cash $XXX

to we the dividends million could million. million. close $XXX course, be We order of $XXX expect, $XX be cash, or of And the raising need as Cerro $XXX million, Leandro Verde. we when mentioned, something some from in could It

we and already As between with local have $XXX mentioned, have million committed million $XX already banks. we

Carlos De Alba

detail. those for Thanks

the sell think So, to no -- company you meet -- will to will that have assets? have don't

Daniel Dominguez

Not at time, this Carlos. in point

Carlos De Alba

That’s great.

Operator

from at your have And follow-up. Alba Stanley. a go Morgan Instructions] from question [Operator Please De Carlos this follow-up time, ahead we with

Carlos De Alba

Thank guys. Yes. you,

gold -- long as as is there? continue profitable prices leasing What back and La so coming do much do will strike more you mentioned you Zanja long? Leandro of is how it think to in Just so. material what potentially How for you the here, that that level is terms the level to can

Leandro Garcia

Carlos. you, is The this planned Thank ounces year output X,XXX this XXXX.

converting to leaching unit all Zanja La the sulfide you Carlos, La comment time, regionally? will project. this the Zanja continue We we about copper I during and gold don't if know are Juan something developing want

Juan Carlos Ortiz

Currently Yes. to of we of Sure, in about leaching ounces existing struck the pad X,XXX very Leandro. be conservative have XXXX. gold for a budget

conservative We very figure, the how a out. expect you can be to you're process learning that it's above much that because something but get it's figure, initial

pump to, additional we kind not with success. with is completely areas the the pad know some is past running leached, experience are low project some to drilling to, were the way of because on could parallel, in right in not working built. is the In are from with through extract the cyanide that local where solution pad pressure areas being the what There the that geophysics a potentially doing order on do that dry be solution order the wet, of to gold

extend kind economic innovative one but or on a this of for -- pad go. probably leaching two more we to in the order we don't the know will that it's or process So, build to much, year, how profitable of years

Carlos De Alba

Thank you.

year full was to least La -- in was fourth X,XXX. is than which sales at Zanja And so quarter around cost the at of better the X,XXX, the attributable

or or you carry you would the for material you below the So and years leaching, one on that is would the next stop mentioned? around breakeven to those levels that, potentially extract just two all

Juan Carlos Ortiz

La is other in we of Yes. question to we going exploration, the good do the the the that includes progressive the part cost that do part some It we of that sulfide that regarding are mining future, record we unit. and be all in the some closure, expenses because Well, a make studies projects. also that the Zanja actually not areas

of extraction projects split the of cost separate same in to from addition gold to, for related kind sulfide exploring are developing footprint. we a copper accounting and gold have that we we for, the what the So, the have in pad, do

So now, to Zanja. operation we will develop of right kind additional of, in La is from the do accounting profitable sulfide need our the leaching we it follow but copper mix together in costs regardless project what what to itself,

Carlos De Alba

All right. Thank Okay. you.

Operator

[Operator time to further Garcia, this Instructions] turn question-and-answer to over the will conclude in at remarks. back And ladies showing and questions Mr. gentlemen, for no this portion. I'd like today's closing floor

Leandro Garcia

you. Thank

today, Before Thank would you you we us, time have a wonderful I again. to finish to for like thank join very day. your much, and

Operator

gentlemen, Quarter to Full like again, thank you We would and Earnings your Year and concludes Results Fourth that Conference Buenaventura's Ladies participation. for XXXX Call.

You may your disconnect now lines.

Compañía de Minas Buenaventura S.A.A. (BVN) 1 Mar 232022 Q4 Earnings call transcript