Buenaventura Announces First Quarter 2024 Results

Rhea-AI Summary

Buenaventura, Peru's largest precious metals mining company, announced its first-quarter 2024 results. The company reported an EBITDA of US$94.4 million, a net income of US$67.1 million, and a cash position of US$174.0 million. Buenaventura obtained its final operating permit for the Yumpag mine, enabling production of 1,000 tons per day. The company received US$29.4 million in dividends from Cerro Verde. Financial highlights show a 33% increase in total revenues from 1Q23, with an 83% rise in EBITDA from direct operations. However, net income decreased by 5% compared to 1Q23.

Positive

• Buenaventura's EBITDA from direct operations increased significantly by 83% in 1Q24.

• The company obtained its final operating permit for the Yumpag mine, allowing for uninterrupted mining and achieving its 2024 production guidance of 6.5 - 7.2 million silver ounces.

• Buenaventura received US$29.4 million in dividends related to its stake in Cerro Verde.

Negative

• Net income for 1Q24 decreased by 5% compared to 1Q23.

• Buenaventura's net debt amounted to US$525.3 million, resulting in a Leverage Ratio of 1.87x by the end of March 2024.

Insights

Financial Analyst

The increased EBITDA from direct operations, representing an 83% boost from the prior year, is a striking data point signaling operational efficiency improvements or increased revenue streams. It's noteworthy that the net debt of $525.3 million and a leverage ratio of 1.87x suggest moderate gearing levels for the firm. However, shareholders should be aware of the slight 5% decline in net income despite a rise in revenues, indicating possible increases in operational costs or one-off expenses affecting profitability.

The commencement of production at the Yumpag mine, expected to produce 6.5 - 7.2 million silver ounces in 2024, is a strategic move that may enhance Buenaventura's market position in the silver industry and drive long-term revenue growth. However, investors should track the cost of production and silver market prices to gauge the potential profitability of this new venture. The inflow from dividends, specifically the $29.4 million received from Cerro Verde, enriches the cash position, potentially offering a buffer against market volatility and enabling reinvestment into high-potential projects like San Gabriel.

Mining Sector Analyst

Engaging in large CAPEX investments, to the tune of $38.4 million on the San Gabriel project, speaks to Buenaventura's commitment to infrastructure and long-term growth prospects. The operational permit for Yumpag mine marks a significant regulatory achievement, often a substantial risk in the mining sector. The expected boost to silver production can enhance Buenaventura's market share and benefit from economies of scale.

The global macroeconomic outlook and commodity prices, particularly for precious metals, will inevitably influence Buenaventura's stock performance. For instance, the value of silver and gold often correlates inversely with U.S. dollar strength and equities market performance. Therefore, investors would benefit from closely monitoring these factors when evaluating Buenaventura's future financial health and stock attractiveness.

LIMA, Peru--(BUSINESS WIRE)-- 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 results for the first quarter (1Q24) ended March 31, 2024. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non-GAAP basis and are stated in U.S. dollars (US$).

First Quarter 2024 Highlights:

• 1Q24 EBITDA from direct operations was US$ 94.4 million, compared to US$ 51.6 million reported in 1Q23.
• 1Q24 net income was US$ 67.1 million, compared to US$ 72.8 million net income in 1Q23.
• Buenaventura's cash position reached US$ 174.0 million, while net debt amounted to US$ 525.3 million, resulting in a Leverage Ratio of 1.87x by quarter’s end, March 31, 2024.
• On March 18, 2024, the Peruvian Ministry of Energy and Mines granted Buenaventura its final operating permit to begin production at its Yumpag mine. This milestone marks the initiation of 1,000 ton per day uninterrupted mining at Yumpag, enabling Buenaventura to achieve its 2024 production guidance of 6.5 - 7.2 million silver ounces.
• On April 26, 2024, Buenaventura received US$29.4 million in dividends related to its stake in Cerro Verde.
• 1Q24 CAPEX related to San Gabriel was US$ 38.4 million, primarily for the comprehensive installation and operation of the concrete plant, camp construction completion, underground mine rehabilitation, and civil works at the plant.

Financial Highlights (in millions of US$, excluding EPS):

	1Q24	1Q23	Var %
Total Revenues	246.8	185.5	33%
Operating Income	46.9	12.6	N.A.
EBITDA Direct Operations	94.4	51.6	83%
EBITDA Including Affiliates	185.4	178.4	4%
Net Income (1)	61.4	64.4	-5%
EPS (2)	0.24	0.25	-5%

		(1)		Net Income attributable to owners of the parent
		(2)		As of March 31, 2024, Buenaventura had a weighted average number of shares outstanding of 253,986,867

For a full version of Compañía de Minas Buenaventura First Quarter 2024 Earnings Release, please visit: https://www.buenaventura.com/en/inversionistas/reportes-trimestrales/2024

CONFERENCE CALL INFORMATION:

Compañia de Minas Buenaventura will host a conference call on Tuesday, April 30, 2024, to discuss these results at 11:00 a.m. Eastern Time / 10:00 a.m. Peru Time.

To participate in the conference call, please dial:

Toll-Free US:
+1-844-481-2914

Toll International:
+1-412-317-0697

Passcode:
Ask to be joined into the Compañía de Minas Buenaventura’s call.

Webcast:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=JHyqyM33

If you would prefer to receive a call rather than dial in, please register via the following link. Please use this option 10-15 minutes prior to the conference call start time:

Call Me Link:
https://hd.choruscall.com/?callme=true&passcode=&info=company-email&r=true&b=16
Passcode: 9047857

Participants who do not wish to be interrupted to have their information gathered may have Chorus Call dial out to them by clicking on the above link, filling in the information, and pressing the green phone button at the bottom. The phone number provided will be automatically called and connected to the conference without any interruption to the participant. (Please note: Participants will be joined directly to the conference and will hear hold music until the call begins. No confirmation message will be played when joined.)

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 2023 Form 20-F, please contact the investor relations contacts on page 1 of this report or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

This press release and related conference call contain, in addition to historical information, forward-looking statements including statements related to the Company’s ability to manage its business and liquidity during and after the COVID-19 pandemic, the impact of the COVID-19 pandemic on the Company’s results of operations, including net revenues, earnings and cash flows, the Company’s ability to reduce costs and capital spending in response to the COVID-19 pandemic if needed, the Company’s balance sheet, liquidity and inventory position throughout and following the COVID-19 pandemic, the Company’s prospects for financial performance, growth and achievement of its long-term growth algorithm following the COVID-19 pandemic, future dividends and share repurchases.

This press release may also 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, 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, 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/20240429231791/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: Compañia de Minas Buenaventura S.A.A.

FAQ

What is Buenaventura's EBITDA from direct operations in 1Q24?

Buenaventura's EBITDA from direct operations in 1Q24 was US$94.4 million.

What is Buenaventura's net income in 1Q24?

Buenaventura's net income in 1Q24 was US$67.1 million.

What is Buenaventura's cash position at the end of 1Q24?

Buenaventura's cash position at the end of 1Q24 was US$174.0 million.

What is Buenaventura's Leverage Ratio as of March 31, 2024?

Buenaventura's Leverage Ratio was 1.87x by the end of March 2024.