Compañia de Minas Buenaventura S.A.A. ("Buenaventura" or "the Company") (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru's largest publicly-traded precious metals mining company, today announced 4Q22 results for production and volume sold.
4Q22 and FY22 Production per Metal (100% basis)
1Q22 (Actual)
2Q22 (Actual)
3Q22 (Actual)
4Q22 (Actual)
FY22 (Actual)
2023 Guidance (1)(2)(3)
Gold (Oz.)
Orcopampa
19,031
17,749
20,164
17,535
74,478
72k - 80k
Tambomayo
13,867
14,351
13,755
12,348
54,320
35k - 40k
La Zanja
5,900
4,767
8,786
10,163
29,616
-
Coimolache
19,512
19,930
21,899
21,067
82,408
60k - 65k
El Brocal
4,350
4,457
7,085
7,467
23,359
24k - 26k
Silver (Oz.)
Uchucchacua
0
0
0
0
0
0.7M - 1.0M
Yumpag
0
0
0
0
0
1.6M - 1.8M
El Brocal
1,059,666
806,123
813,272
877,768
3,556,829
2.7M - 3.0M
Tambomayo
419,396
433,820
546,256
463,938
1,863,411
1.9M - 2.2M
Julcani
661,132
640,557
692,876
646,125
2,640,689
2.6M - 2.8M
Lead (MT)
El Brocal
2,497
1,306
1,781
1,207
6,791
7.5k - 8.3k
Uchucchacua
0
0
0
0
0
1.4k - 1.5k
Yumpag
0
0
0
0
0
0.3k - 0.4k
Tambomayo
2,509
2,823
2,639
2,320
10,290
2.9k - 3.2k
Zinc (MT)
El Brocal
8,772
4,146
6,403
4,037
23,359
23.0k - 25.0k
Uchucchacua
0
0
0
0
0
2.0k - 2.2k
Yumpag
0
0
0
0
0
-
Tambomayo
3,543
3,920
3,446
2,601
13,511
4.8k - 5.3k
Copper (MT)
El Brocal
10,159
10,537
12,108
14,548
47,352
45.0k - 50.0k
2023 outlook projections shown above are considered forward-looking statements and represent management's good faith estimates or expectations of future production results as of February 2023.
2023 Guidance for Uchucchacua and Yumpag is subject of permit approval to begin production.
During the 1Q23 El Brocal will be stockpiling ore mined from the open pit. Lead and Zinc ore will be treated at the processing plant since 2Q23. The underground mine will operate continuously throughout 2023.
4Q22 and 2023 Guidance Comments
Tambomayo:
2022 gold, silver, lead and zinc production were in line with Buenaventura's revised 2022 guidance announced in the third quarter 2022.
2023 Guidance: the Company expects a year on year decrease in gold production due to the planned mining sequence which entails mining narrower veins. This will result in a 20% decrease in annual throughput as well as lower gold, lead and zinc grades.
Orcopampa:
2022 gold production was in line with Buenaventura's revised 2022 guidance.
2023 Guidance: gold production is expected to exceed 2022 production due to an anticipated increase in 2023 throughput.
Coimolache:
2022 gold production was in line with Buenaventura's revised guidance.
2023 Guidance: the Company expects a decrease in 2023 gold production due to leach pad capacity limitations resulting from leach pad expansion permitting delays.
La Zanja:
2022 gold production was below revised guidance due to the re-assessment of economics for the Phase V-Pampa Verde open pit. Mining at Phase V-Pampa Verde was postponed due to inflation-related OpEx increases and to enable early access for exploring the sulfides potential below the pit.
Mining activities at the Pampa Verde pit will be paused during 2023 to focus on exploration. However, leaching will continue at La Zanja's San Pedro pad to the extent that this remains profitable.
Julcani:
2022 silver production was in line with revised 2022 guidance.
2023 Guidance: 2023 silver production is expected to be consistent with that of prior years.
Yumpag:
Yumpag project construction and permitting will continue according to schedule.
2023 Guidance: Production is subject of permit approval, which is expected to be granted during 3Q23 and assumes initial production beginning in 4Q23.
Uchucchacua:
Exploration and mine development at the Uchucchacua mine will continue as planned. The 2H23 target to resume ore beneficiation at Uchucchacua's processing plant remains unchanged.
2023 Guidance: Production will resume ramp-up during 4Q23.
El Brocal:
2022 gold, silver and copper production exceeded Buenaventura's revised 2022 guidance.
2022 lead and zinc production were in line with revised guidance.
Buenaventura has recorded a US$16.4M write-off within its 4Q 2022 results related to inventories associated with low grade polymetallic mineral stocks from its Tajo Norte open pit. This represents a one-time accounting effect and does not represent a cash outflow. This has been recorded within the company's 4Q 2022 results as related metallurgical tests were completed from June to November 2022 and concluded that the inventory's sulfides ore has oxidized, adversely affecting its metallurgical performance and therefore its value.
2023 Guidance: copper, gold, zinc and lead production is expected to be in line with that of 2022 production while silver production is expected to decrease by 20%:
The Marcapunta underground mine is progressing according to plan and is expected to reach 9,000 tpd by the end of 2023 with sustained stable copper and gold production and strong economic margins. A portion of the surplus underground mine production will be processed at El Brocal's Plant #2 which is equipped to process copper ore but had previously focused primarily on processing polymetallic ore from the open pit.
Silver production is expected to decrease due to reduced production from the Tajo Norte open pit as tailings dam capacity is prioritized for higher-margin ore derived from the Marcapunta underground mine. Permitting delays and a renewed mine strategy for the Tajo Norte open pit will also temporarily reduce 2023 throughput.
4Q22 and FY22 Payable Volume Sold
4Q22 and FY22 Volume Sold per Metal (100% basis)
1Q22 (Actual)
2Q22 (Actual)
3Q22 (Actual)
4Q22 (Actual)
FY22 (Actual)
Gold (Oz.)
Orcopampa
19,307
17,719
19,814
17,514
74,354
Tambomayo
12,181
12,917
12,150
10,999
48,247
La Zanja
5,773
4,452
8,575
10,576
29,376
Coimolache
20,586
20,551
21,431
23,442
86,010
El Brocal
2,907
2,590
5,229
5,492
16,217
Silver (Oz.)
Uchucchacua
18,730
139,688
150,426
152,471
461,315
El Brocal
852,933
650,260
642,558
712,041
2,857,792
Tambomayo
351,077
376,313
468,076
402,538
1,598,004
Julcani
636,303
605,634
651,077
605,128
2,498,142
Lead (MT)
El Brocal
2,239
1,071
1,568
1,036
5,914
Uchucchacua
0
18
0
0
18
Tambomayo
2,275
2,629
2,449
2,126
9,479
Zinc (MT)
El Brocal
7,256
3,370
5,229
3,311
19,166
Uchucchacua
0
0
0
0
0
Tambomayo
2,922
3,262
2,832
2,038
11,054
Copper (MT)
El Brocal
9,697
10,311
11,431
13,772
45,211
Realized Metal Prices*
1Q22 (Actual)
2Q22 (Actual)
3Q22 (Actual)
4Q22 (Actual)
FY22 (Actual)
Gold (Oz)
1,896
1,825
1,678
1,747
1,781
Silver (Oz)
24.10
22.71
17.33
19.62
20.89
Lead (MT)
2,363
2,180
1,713
2,037
2,082
Zinc (MT)
4,105
4,489
3,412
1,575
3,557
Copper (MT)
9,950
9,073
7,261
6,804
8,113
*Buenaventura consolidated figures.
Appendix
1. 4Q22 and FY22 Production per Metal (100% basis)
1Q22 (Actual)
2Q22 (Actual)
3Q22 (Actual)
4Q22 (Actual)
FY22 (Actual)
Silver (Oz.)
Orcopampa
7,856
7,334
8,247
8,687
32,124
La Zanja
23,363
30,318
31,665
20,088
105,435
Coimolache
77,195
75,504
76,133
68,135
296,968
Lead (MT)
Julcani
99
124
140
167
530
2. 4Q22 and FY22 Volume Sold per Metal (100% basis)
1Q22 (Actual)
2Q22 (Actual)
3Q22 (Actual)
4Q22 (Actual)
FY22 (Actual)
Silver (Oz.)
Orcopampa
6,928
12,411
7,715
7,461
34,516
La Zanja
21,818
29,273
34,147
24,707
109,944
Coimolache
96,634
84,859
78,028
76,077
335,598
Lead (MT)
Julcani
76
93
112
138
418
Company Description Compañía de Minas Buenaventura S.A.A. is Peru's largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Julcani*, Tambomayo*, La Zanja*, El Brocal and Coimolache).
The Company owns 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc. and Sumitomo Corporation).
For a printed version of the Company's 2021 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company's web site. (*) Operations wholly owned by Buenaventura
Note on Forward-Looking Statements This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning Cerro Verde's costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries' plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company's view with respect to Cerro Verde's future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230216005854/en/
Contact
Contacts in Lima: Daniel Dominguez, Chief Financial Officer (511) 419 2540
Gabriel Salas, Head of Investor Relations (511) 419 2591 / Gabriel.salas@buenaventura.pe
Company Website: www.buenaventura.com.pe/ir
Contacts in NY: Barbara Cano (646) 452 2334 barbara@inspirgroup.com
