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 preliminary 2Q18 production and volume sold results as well as full year 2018 operating guidance (100% basis).
2Q18 Production per Metal and 2018 Operating Guidance (100% basis)
1Q18 (Actual)
2Q18 (Actual)
6M18 (Actual)
2018 (Estimated)
Gold (Oz.)
Orcopampa
39,987
35,694
75,681
120k - 140k
Tambomayo
33,693
31,173
64,866
110k - 130k
La Zanja
17,722
15,660
33,382
70k - 80k
Tantahuatay
29,915
39,557
69,473
160k - 180k
Yanacocha
104,233
115,342
219,575
470k - 545k
El Brocal
7,029
5,924
12,953
25k - 30k
Silver (Oz.)
Uchucchacua
4,413,249
4,005,948
8,419,196
17.2M - 18.6M
Julcani
504,155
620,276
1,124,431
2.1M - 2.4M
Mallay
155,000
134,936
289,936
0.4M - 0.5M
Tambomayo
1,019,915
1,106,694
2,126,610
3.0M - 3.5M
El Brocal
739,454
967,763
1,707,217
4.6M - 5.0M
Lead (MT)
Julcani
283
231
514
1.0k - 2.0k
Uchucchacua
4,184
4,762
8,947
18.0k - 20.0k
Mallay
504
447
951
0.5k - 2.5k
Tambomayo
856
814
1,670
2.5k - 4.5k
El Brocal
3,737
4,700
8,438
25.0k - 35.0k
Zinc (MT)
El Brocal
13,797
12,353
26,151
45k - 55k
Uchucchacua
4,575
4,842
9,418
18.0k - 20.0k
Mallay
952
1,187
2,139
3.0k - 3.6k
Tambomayo
2,562
1,998
4,560
7.0k - 8.0k
Copper (MT)
El Brocal
10,482
11,173
21,655
45K - 55K
Production Comments
Gold Operations
Orcopampa:
In light of the Company’s strategy to prioritize its De-bottlenecking Program over ore mineral extraction, Buenaventura’s management has made the decision to temporarily reduce annual production guidance for its Orcopampa asset in order to centralize the underground operation. A more detailed explanation will be provided during Buenaventura’s second quarter 2018 results conference call.
Tambomayo:
Operating at full capacity. 2018 guidance has been confirmed.
La Zanja:
Second quarter production declined due to a change of its mining contractor. The same contractor used at Tantahuatay, San Martín Contratistas Generales S.A, has been hired as the new contractor at La Zanja, leveraging important synergies between the two mines. 2018 guidance therefore remains unchanged.
Tantahuatay:
Positive shift in the second quarter production as was previously announced (the first quarter was affected by heavy rains). 2018 guidance has been confirmed.
Silver Operations
Uchucchacua:
Silver and Lead guidance remains unchanged. Zinc guidance has been increased due to improved grades in the Cachipampa area.
Julcani:
As was announced in previous quarters, the Julcani operation has been centralized, thereby improving operational efficiency. 2018 guidance has been confirmed.
Mallay:
Centralizing and stopping the deepening of the mine has achieved positive results. 2018 guidance has been confirmed.
Base Metals Operations
El Brocal:
The production mix has been modified within El Brocal´s 2018 mining plan. More production will be derived from the polymetallic open pit mine than was previously announced in early 2018. The plan is to smoothly and efficiently transition the underground operation from 8k TPD to 13k TPD. El Brocal´s 2018 annual EBITDA budget will not be affected.
Volume Sold
2Q18 Volume sold per Metal (100% basis)
1Q18 (Actual)
2Q18 (Actual)
6M18
(Actual)
Gold (Oz.)
Orcopampa
40,015
35,155
75,170
Tambomayo
30,698
30,721
61,419
La Zanja
18,222
17,495
35,717
Tantahuatay
27,957
38,599
66,556
El Brocal
5,102
4,029
9,130
Silver (Oz.)
Uchucchacua
3,853,518
4,125,034
7,978,552
Julcani
352,236
741,469
1,093,705
Mallay
136,838
123,609
260,447
Tambomayo
837,123
1,143,540
1,980,663
El Brocal
536,585
774,576
1,311,161
Lead (MT)
Julcani
169
275
444
Uchucchacua
3,434
4,387
7,821
Mallay
440
434
874
Tambomayo
528
1,025
1,554
El Brocal
3,339
4,490
7,829
Zinc (MT)
El Brocal
11,354
10,383
21,738
Uchucchacua
3,802
3,783
7,585
Mallay
733
986
1,718
Tambomayo
1,672
1,871
3,543
Copper (MT)
El Brocal
9,854
10,517
20,371
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*, Mallay*, Julcani*, Tambomayo*, El Brocal, La Zanja and Coimolache).
The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corp.), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.
For a printed version of the Company’s 2017 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 the Company’s, Yanacocha’s and 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 the Company’s, Yanacocha’s and 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/20180712005886/en/
Contact
Compañia de Minas Buenaventura S.A.A. Lima: Leandro García, 511-419-2540 Chief Financial Officer or Rodrigo Echecopar, 511-419-2591 Investor Relations Coordinator rodrigo.echecopar@buenaventura.pe or NY: Barbara Cano, 646-452-2334 barbara@inspirgroup.com or Company Website: www.buenaventura.com.pe/ir
