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

Rhea-AI Summary

Buenaventura (NYSE: BVN), Peru's largest publicly-traded precious metals mining company, has released its production and volume sold results for Q3 2024. The report includes data for gold, silver, lead, zinc, and copper production across various mining operations.

Key highlights include:

• Total gold production including associated operations: 39,690 ounces in Q3, 118,095 ounces year-to-date
• Total silver production including associated operations: 4,243,769 ounces in Q3, 10,931,273 ounces year-to-date
• Lead production from direct operations: 4,953 metric tons in Q3, 14,523 metric tons year-to-date
• Zinc production from direct operations: 7,374 metric tons in Q3, 22,540 metric tons year-to-date
• Copper production from direct operations: 16,769 metric tons in Q3, 42,334 metric tons year-to-date

The report also includes updated guidance for 2024 production targets across all metals and operations.

Positive

• Yumpag silver production reached 2,591,227 ounces in Q3, contributing significantly to total silver output
• El Brocal copper production of 16,769 metric tons in Q3 is on track to meet 2024 guidance of 55,000-60,000 metric tons
• Gold production from Orcopampa mine shows strong performance with 17,831 ounces in Q3

Negative

• El Brocal zinc production dropped to 0 metric tons in Q3, compared to 1,985 metric tons year-to-date
• Some operations like La Zanja show lower production figures compared to their year-to-date totals, indicating potential slowdowns

Insights

Financial Analyst

Buenaventura's Q3 2024 production report shows mixed results across its portfolio of metals. Gold production from direct operations reached 38,909 ounces, putting the company on track to meet its updated 2024 guidance of 130,500-145,000 ounces. However, some individual mines like Orcopampa may fall short of their targets.

Silver production was strong at 4.43 million ounces for the quarter, largely driven by Yumpag's 2.59 million ounces. This puts Buenaventura in a good position to achieve its 14.7-16.1 million ounce guidance for the year. The base metals segment saw copper production of 16,769 metric tons, which needs to accelerate in Q4 to meet the 55,000-60,000 ton annual target.

While production volumes are crucial, investors should note that metal prices will significantly impact revenue and profitability. The company's ability to control costs and optimize operations across its diverse portfolio will be key to financial performance. The ramp-up of Yumpag and performance of core assets like El Brocal and Orcopampa warrant close monitoring in the coming quarters.

Mining Industry Expert

Buenaventura's Q3 production results reflect the challenges and opportunities in Peru's mining sector. The diversified portfolio approach helps mitigate risks, with strong silver performance offsetting potential shortfalls in gold and copper.

The Yumpag project is emerging as a game-changer for silver production, contributing over 50% of the company's silver output this quarter. This rapid ramp-up is impressive and could position Buenaventura as a more significant player in the global silver market.

However, the underperformance of some gold assets like La Zanja and the slower-than-expected copper production at El Brocal highlight operational challenges. The company may need to reassess its strategies for these mines to ensure they meet annual targets. The zinc production cessation at El Brocal is also notable, potentially indicating a shift in focus or operational issues that investors should monitor.

Overall, Buenaventura's ability to adapt to changing market conditions and optimize its diverse asset base will be important for long-term success in the competitive Peruvian mining landscape.

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 3Q24 results for production and volume sold.

Production per Metal

		Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024		2024 Updated Guidance (1)
Gold ounces produced
El Brocal		6,673		17,329		19.0k - 22.0k
Orcopampa		17,831		54,426		70.0k - 75.0k
Tambomayo		8,015		26,072		28.0k - 32.0k
Julcani		1,428		2,839		3.5k - 4.0k
La Zanja		4,963		8,655		10.0k - 12.0k
Total Direct Operations (2)		38,909		109,321		130.5k - 145.0k
Coimolache		8,368		38,554		41.0k - 46.0k
Total incl. Associated (3)		39,690		118,095		139.6k - 155.0k
Silver ounces produced
El Brocal		516,480		1,701,940		1.8M - 2.0M
Uchucchacua		608,412		1,524,944		2.2M - 2.5M
Yumpag (4)		2,591,227		6,017,839		7.5M - 8.0M
Orcopampa		6,891		22,857		-
Tambomayo		434,054		1,143,490		1.7M - 1.9M
Julcani		261,492		1,090,232		1.5M - 1.7M
La Zanja		8,901		14,904		-
Total Direct Operations (2)		4,427,457		11,516,207		14.7M - 16.1M
Coimolache		38,705		178,341		0.1M - 0.2M
Total incl. Associated (3)		4,243,769		10,931,273		14.0M - 15.4M
Lead metric tons produced
Uchucchacua		3,865		10,812		13.0k - 15.0k
Tambomayo		979		3,093		3.5k - 4.0k
Julcani		108		619		0.9k - 1.0k
Total Direct Operations (2)		4,953		14,523		17.4k - 20.0k
Zinc metric tons produced
El Brocal		0		1,985		1.9k - 2.0k
Uchucchacua		6,153		16,521		19.0k - 22.0k
Tambomayo		1,222		4,034		5.4k - 5.8k
Total Direct Operations (2)		7,374		22,540		26.3k - 29.8k
Copper metric tons produced
El Brocal		16,769		42,334		55.0k - 60.0k
Total Direct Operations (2)		16,769		42,334		55.0k - 60.0k

1. 2024 projections are considered to be forward-looking statements and represent management’s good faith estimates or expectations of future production results as of October 2024.
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. Considers ore from the pilot stope approved within Yumpag EIA-sd.

Volume Sold per Metal

		Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
Gold ounces sold
El Brocal		3,912		10,676
Orcopampa		18,027		54,223
Tambomayo		7,438		24,199
Julcani		1,293		2,527
La Zanja		4,676		8,525
Total Direct Operations (1)		35,345		100,151
Coimolache		8,450		38,526
Total incl. Associated (2)		37,225		111,480
Silver ounces sold
El Brocal		413,407		1,403,306
Uchucchacua		555,012		1,345,729
Yumpag (3)		2,229,149		5,785,760
Orcopampa		10,031		22,174
Tambomayo		402,631		1,035,689
Julcani		248,442		1,052,051
La Zanja		16,450		32,140
Total Direct Operations (1)		3,875,123		10,676,849
Coimolache		38,748		177,393
Total incl. Associated (2)		3,731,208		10,206,718
Lead metric tons sold
El Brocal		0		72
Uchucchacua		3,489		9,752
Yumpag (3)		21		55
Tambomayo		849		2,692
Julcani		96		557
Total Direct Operations (1)		4,455		13,129
Zinc metric tons sold
El Brocal		0		1,592
Uchucchacua		5,026		13,593
Tambomayo		969		3,231
Total Direct Operations (1)		5,995		18,417
Copper metric tons sold
El Brocal		15,571		39,709
Tambomayo		32		95
Julcani		20		79
Total Direct Operations (1)		15,622		39,883

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 September 30, 2024		Nine Months Ended September 30, 2024		Year Ended December 31, 2023
Gold (US$/Oz)		2,514		2,323		1,954
Silver (US$/Oz)		29.92		28.14		23.98
Lead (US$/MT)		2,082		2,078		2,093
Zinc (US$/MT)		2,883		2,618		2,315
Copper (US$/MT)		9,391		9,124		8,418

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

Commentary on Operations

Tambomayo:

• Gold, lead and zinc production was in line with expectations. 2024 guidance remains unchanged.
• Silver production was below 3Q24 projections due to delays related to mine development and in the preparation of high silver grade ore stopes. 2024 remains unchanged.

Orcopampa:

• 3Q24 gold and silver production was in line with expectations. 2024 guidance remains unchanged.

Coimolache:

• Gold production exceeded 3Q24 projections due to an accelerated percolation rate at the leach pad. 2024 guidance has therefore been updated.
• During the 3Q24, Buenaventura filed for a leach pad expansion construction permit at Coimolache, which is currently pending with the Ministry of Energy and Mines. Approval is expected by the end of 1Q25, enabling the Company to begin construction in 2Q25 and to resume leaching fresh ore in 3Q25.

Julcani:

• Gold and copper production at the Julcani mine is gradually increasing as the operation transitions to zones richer in these metals, successfully offsetting lower production from the Achilla zone which has historically produced lead and silver.
• 2024 guidance has therefore been revised to reflect increased gold production with lower silver grades.

Uchucchacua:

• Silver and lead production was in line with expectations for 3Q24. 2024 guidance remains unchanged.
• Zinc production exceeded expectations due to higher grades than was previously projected. 2024 guidance has therefore been updated.
• Uchucchacua achieved 1,500 TPD average daily throughput in 3Q24, aligned with the Company’s targeted 1,500 TPD by year end 2024.

Yumpag:

• Silver production was in line with expectations for 3Q24. 2024 guidance remains unchanged.

El Brocal:

• Copper production was in line with expectations for 3Q24. 2024 guidance remains unchanged.
• Gold and silver production exceeded expectations for 3Q24 due to increased volume processed during the quarter. 2024 guidance has therefore been updated.
• All ore stockpiled in 2Q24 was processed during the 3Q24, enabling El Brocal to meet its targeted production for the first nine months of 2024. The average mining rate during 3Q24 was 12,000 tons per day, and the average mining rate for the first nine months of the year was 11,000 tons per day, aligned with the Company’s target for full year production to exceed 11,000 tons per day.

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/20241016331347/en/

Contacts in Lima:

Daniel Dominguez, Chief Financial Officer

+51 1 419 2540

Gabriel Salas, Head of Investor Relations

+51 1 419 2591

gabriel.salas@buenaventura.pe

Contact in New York:

Barbara Cano, InspIR Group

+1 646 452 2334

barbara@inspirgroup.com

Website: www.buenaventura.com

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

FAQ

What was Buenaventura's (BVN) total gold production in Q3 2024?

Buenaventura's total gold production, including associated operations, was 39,690 ounces in Q3 2024.

How much silver did Buenaventura (BVN) produce in the first nine months of 2024?

Buenaventura produced 10,931,273 ounces of silver in the first nine months of 2024, including associated operations.

What is Buenaventura's (BVN) copper production guidance for 2024?

Buenaventura's copper production guidance for 2024 is 55,000 to 60,000 metric tons from El Brocal operations.

Which Buenaventura (BVN) mine had the highest gold production in Q3 2024?

Orcopampa mine had the highest gold production in Q3 2024 with 17,831 ounces.