Buenaventura Announces Fourth Quarter 2024 Results for Production and Volume Sold per Metal

Rhea-AI Summary

Buenaventura (NYSE: BVN) has released its Q4 2024 production results and 2025 guidance. Key highlights include:

Total gold production reached 39,362 ounces in Q4 2024, with annual production of 148,683 ounces. Silver production totaled 3.96M ounces in Q4, with annual production of 15.48M ounces. The company produced 14,191 metric tons of copper in Q4, reaching 56,525 metric tons for the full year.

For 2025, Buenaventura projects gold production guidance of 108.5k-129.5k ounces and silver production of 13.8M-15.7M ounces. Notable operational updates include Tambomayo expecting a 40% decrease in throughput, Orcopampa projecting a 45% reduction in annual throughput, and El Brocal achieving 12,500 tpd in underground mining. The San Gabriel project remains on track for production initiation in Q4 2025.

Average realized prices in Q4 2024 were $2,641/oz for gold, $31.17/oz for silver, and $8,883/MT for copper.

Positive

• El Brocal exceeded underground mining target, reaching 12,500 tpd in Q4 2024
• Coimolache gold production exceeded projections due to accelerated percolation rates
• Yumpag silver production exceeded projections due to higher grades
• Strong realized prices: Gold at $2,641/oz and Silver at $31.17/oz in Q4 2024

Negative

• Tambomayo expects 40% decrease in throughput for 2025
• Orcopampa projects 45% reduction in annual throughput for 2025
• Expected decrease in El Brocal silver and gold production for 2025
• Yumpag anticipates lower silver grades in 2025

Insights

Mining Industry Analyst

Buenaventura's Q4 2024 operational results and 2025 guidance reveal significant strategic shifts in its production portfolio, with important implications for future performance. The company's realized metal prices show strong performance, with gold at $2,641/oz in Q4 and silver at $31.17/oz, substantially above industry averages, indicating effective price optimization strategies.

Key operational developments warrant attention:

• Production Mix Evolution: The company is strategically transitioning several operations, notably Tambomayo's anticipated 40% throughput reduction and Orcopampa's 45% decrease, while focusing on higher-grade areas to partially offset volume declines. This suggests a shift toward quality over quantity, potentially improving cost efficiency.
• Operational Optimization: El Brocal's underground mine achieved 12,500 tpd in Q4, exceeding the original 11,500 tpd target, demonstrating successful operational ramp-up. This positions the copper segment for stable production despite grade challenges.
• Growth Initiatives: Uchucchacua's planned expansion to 2,000 tpd by end-2025 and Yumpag's potential expansion to 1,200 tpd in 2026 indicate a clear growth trajectory in silver production. The San Gabriel project's scheduled Q4 2025 start will add significant gold production capacity.

Critical implications for investors include stronger operational efficiency through selective mining approaches, though with near-term production adjustments at several assets. The company's focus on high-grade zones and throughput optimization suggests a balanced approach to maintaining profitability despite varying ore grades.

LIMA, Peru--(BUSINESS WIRE)-- Compañía 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 4Q24 results for production and volume sold.

Production per Metal

		Three Months Ended December 31, 2024		Year Ended December 31, 2024		Year Ended December 31, 2025 Guidance(1)
Gold ounces produced
El Brocal		6,317		23,646		15.5k - 18.5k
Orcopampa		16,466		70,892		45.0k - 50.0k
Tambomayo		7,823		33,896		12.5k - 15.5k
Julcani		1,664		4,504		7.5k - 9.5k
La Zanja		7,091		15,746		18.0k – 21.0k
San Gabriel (4)		0		0		10.0k – 15.0k
Total Direct Operations (2)		39,362		148,683		108.5k – 129.5k
Coimolache		9,566		48,120		50.0k - 55.0k
Total incl. Associated (3)		40,761		158,856		122.6k – 144.4k
Silver ounces produced
El Brocal		420,802		2,122,742		1.1M - 1.4M
Uchucchacua		839,090		2,364,035		2.7M - 3.2M
Yumpag (5)		2,105,606		8,123,445		7.3M - 7.8M
Orcopampa		6,636		29,493		-
Tambomayo		268,602		1,412,092		1.2M - 1.5M
Julcani		312,554		1,402,786		1.5M - 1.8M
La Zanja		8,733		23,637		-
Total Direct Operations (2)		3,962,024		15,478,231		13.8M - 15.7M
Coimolache		57,741		236,082		0.2M - 0.3M
Total incl. Associated (3)		3,822,871		14,754,144		13.5M - 15.3M
Lead metric tons produced
Uchucchacua		2,939		13,751		16.0k - 18.0k
Tambomayo		965		4,058		-
Julcani		108		727		0.8k - 1.0k
Total Direct Operations (2)		4,013		18,536		16.8k - 19.0k
Zinc metric tons produced
El Brocal		0		1,985		-
Uchucchacua		4,684		21,205		23.0k - 26.0k
Tambomayo		1,228		5,262		1.0k - 1.3k
Total Direct Operations (2)		5,913		28,452		24.0k - 27.3k
Copper metric tons produced
El Brocal		14,191		56,525		55.0k - 60.0k
Total Direct Operations (2)		14,191		56,525		55.0k - 60.0k

1. 2025 projections are considered to be forward-looking statements and represent management’s good faith estimates or expectations of future production results as of February 2025.
2. Considers 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal.
3. Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 61.43% of El Brocal and 40.094% of Coimolache.
4. 4Q25 targeted production initiation remains unchanged, subject to final permitting and required approvals.
5. Considers ore from the pilot stope approved within Yumpag EIA-sd.

Volume Sold per Metal

		Three Months Ended December 31, 2024		Year Ended December 31, 2024
Gold ounces sold
El Brocal		3,825		14,501
Orcopampa		16,403		70,626
Tambomayo		7,129		31,328
Julcani		1,460		3,987
La Zanja		6,798		15,323
Total Direct Operations (1)		35,615		135,766
Coimolache		10,414		48,941
Total incl. Associated (2)		38,315		149,795
Silver ounces sold
El Brocal		336,635		1,739,941
Uchucchacua		734,812		2,080,541
Yumpag (3)		2,062,192		7,847,952
Orcopampa		4,947		27,121
Tambomayo		232,468		1,268,157
Julcani		290,618		1,342,669
La Zanja		25,694		57,835
Total Direct Operations (1)		3,687,366		14,364,215
Coimolache		61,500		238,893
Total incl. Associated (2)		3,582,184		13,788,902
Lead metric tons sold
El Brocal		0		72
Uchucchacua		2,515		12,267
Yumpag (3)		8		63
Tambomayo		821		3,513
Julcani		91		649
Total Direct Operations (1)		3,435		16,564
Zinc metric tons sold
El Brocal		0		1,592
Uchucchacua		3,858		17,451
Tambomayo		978		4,209
Total Direct Operations (1)		4,835		23,252
Copper metric tons sold
El Brocal		13,398		53,107
Tambomayo		63		158
Julcani		8		87
Total Direct Operations (1)		13,469		53,353

1. Considers 100% of Buenaventura’s operating units, 100% of La Zanja and 100% of El Brocal.
2. Considers 100% of Buenaventura’s operating units, 100% of La Zanja, 61.43% of El Brocal and 40.094% of Coimolache.
3. Considers ore from the pilot stope approved within Yumpag EIA-sd.

Average realized prices⁽¹⁾⁽²⁾

		Three Months Ended December 31, 2024		Year Ended December 31, 2024
Gold (US$/Oz)		2,641		2,407
Silver (US$/Oz)		31.17		28.92
Lead (US$/MT)		1,890		2,039
Zinc (US$/MT)		3,084		2,715
Copper (US$/MT)		8,883		9,063

1. Considers Buenaventura consolidated figures.
2. Realized prices include both provisional sales and final adjustments for price changes.

Commentary on Operations

Tambomayo: 2024 gold production exceeded revised guidance, primarily due to an increase in processed ore. 2024 lead and zinc production were in line with expectations. 2024 silver production underperformed slightly relative to adjusted guidance, primarily due to delays related to poor ground conditions at the high silver grade ore stopes which made extraction more challenging.

2025 Guidance: Buenaventura anticipates a decrease in gold, lead, and zinc production at its Tambomayo operations relative to 2024. The Company expects an approximately 40% decrease in throughput for the year, as well as lower gold, lead, and zinc grades as the mining sequence progresses into lower-grade areas. However, higher silver grades in the scheduled 2025 mining areas are expected to offset the decrease in volume processed, resulting in stable silver production, year-on-year.

Orcopampa: 2024 gold and silver production was in line with expectations.

2025 Guidance: Guidance reflects a year-on-year decrease in gold production as well as an approximately 45% reduction in annual throughput, partially offset by higher gold grades expected in the scheduled 2025 mining areas as some stopes from Pucarina and Nazareno veins come into production.

Coimolache: 2024 Gold production exceeded projections due to an accelerated percolation rate at the leach pad and to higher grades than was previously expected.

2025 Guidance: The Company expects a year-on-year increase in gold production due to the expansion of the leach pad, which will be ready to receive fresh ore starting in 2H25. Buenaventura expects to obtain the necessary permits in 1Q25 with expected construction in 2Q25 and the resulting resumption of fresh ore leaching in 3Q25. The Coimolache production plan combines fresh ore with low-grade stockpile ore for leaching on the Tantahuatay pad to offset the decreased production planned for the 1H25.

Julcani: 2024 silver production underperformed slightly relative to adjusted guidance, primarily due to the transition from silver into copper-gold stopes. 2024 gold production therefore exceeded revised guidance slightly, gradually increasing as the operation transitions to zones richer in copper-gold.

2025 Guidance: The Company expects a year-on-year increase in silver and gold production due to an approximately 20% increase in expected throughput for the year, driven by an increased contribution of ore extracted from the Socorro sector.

Uchucchacua: 2024 silver and zinc production was in line with expectations. 2024 lead production underperformed slightly relative to adjusted guidance due to lower than expected grades.

2025 Guidance: Buenaventura anticipates a year-on-year increase in silver, lead, and zinc production resulting from an approximately 20% increase in throughput for 2025. This is due to optimized operations at Uchucchacua, which is projected to increase to 2,000 tpd by year-end 2025 from 1,500 tpd currently.

Yumpag: 2024 Silver production exceeded projections mainly due to higher than expected grades.

2025 Guidance: Buenaventura expects a decrease in silver production year-over-year, primarily due to lower silver grades. However, this will be partially mitigated by increased ore volume processed, as 2025 represents Yumpag’s first full 12-months of production at 1,000 tpd; the operations’ maximum allowable throughput based on the environmental permit currently in place. Buenaventura has planned to apply in 2025 for mining extraction rate expansion, enabling these operations to achieve 1,200 tpd during 2026.

El Brocal: 2024 copper and zinc production was in line with expectations. 2024 gold and silver production exceeded expectations primarily due to better than expected by-product recovery from copper concentrate extracted from the underground mine.

2025 Guidance: Buenaventura expects copper production to remain consistent with 2024 levels as underground mine production ramp-up continues, partially offset by lower copper grades. The targeted underground mine exploitation rate at El Brocal exceeded the original 11,500tpd target, reaching 12,500 tpd in 4Q24. A significant decrease in El Brocal silver and gold production is expected in 2025 due to the full depletion of the remaining ore inventory from Colquijirca’s Tajo Norte Mine in 2024, as well as ongoing temporary suspension of mining activities at Tajo Norte Mine. There are no plans for lead and zinc production for 2025.

San Gabriel:

2025 Guidance: Construction and mine development at San Gabriel will continue as planned during 1H25. In 3Q25, Buenaventura will focus on ensuring the processing plant's operational readiness for commercial production. 4Q25 targeted production initiation remains unchanged, subject to final permitting and required approvals.

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).

(*) 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/20250211691679/en/

Contacts in Lima:

Daniel Dominguez, Chief Financial Officer

(511) 419 2540

Sebastián Valencia, Head of Investor Relations

(511) 419 2591

sebastian.valencia@buenaventura.pe

Contact in New York:

Barbara Cano, InspIR Group

1 (646) 452 2334

barbara@inspirgroup.com

Website: buenaventura.com/en/inversionista/

Source: Compañía de Minas Buenaventura S.A.A.

FAQ

What is Buenaventura's (BVN) gold production guidance for 2025?

Buenaventura's gold production guidance for 2025 is 108,500-129,500 ounces for total direct operations.

How much silver did BVN produce in Q4 2024?

Buenaventura produced 3,962,024 ounces of silver in Q4 2024 from direct operations.

What were BVN's realized gold and silver prices in Q4 2024?

In Q4 2024, BVN's realized prices were $2,641 per ounce for gold and $31.17 per ounce for silver.

When is BVN's San Gabriel project expected to start production?

San Gabriel's production is targeted to begin in Q4 2025, subject to final permitting and required approvals.

What is the expected throughput reduction at BVN's Tambomayo operation in 2025?

Tambomayo expects approximately 40% decrease in throughput for 2025 compared to 2024.