Buenaventura Announces Results for Third Quarter 2021 Production and Volume Sold per Metal

Rhea-AI Summary

Compañia de Minas Buenaventura S.A.A. (NYSE: BVN) reported its 3Q21 production figures, showing significant gold and silver output. For gold, 3Q21 production was led by Yanacocha with 65,220 ounces and Orcopampa with 15,547 ounces. Total gold production for 9M21 reached 30,663 ounces at Orcopampa, while silver production totaled 3.7 million ounces overall. The company updated its 2021 guidance, projecting gold production between 40k-45k ounces for Orcopampa and a total of 315k ounces from Yanacocha. The company also adjusted silver output guidance to between 5.4M and 6.0M ounces for El Brocal.

Positive

• Gold production increased at key sites: Orcopampa (15,547 oz), Yanacocha (65,220 oz).
• Updated 2021 guidance shows expected growth in gold output, with projections of 315k oz from Yanacocha.
• Silver production remains strong, with total production reaching 3.7 million ounces for 9M21.

Negative

• Some mines are not meeting high end of guidance, e.g., Orcopampa's updated target is lower than anticipated.

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 3Q21 production and volume sold.

3Q21 Production per Metal and 2021 Guidance
(100% basis)
	1Q21 (Actual)	2Q21 (Actual)	3Q21 (Actual)	9M21 (Actual)		Updated 2021 Guidance (1) (2)
Gold (Oz.)
Orcopampa	5,986	9,130	15,547	30,663		40k - 45k
Tambomayo	15,347	17,964	17,837	51,148		69k - 75k
La Zanja	3,908	4,447	5,967	14,322		18k - 21k
Coimolache	26,133	30,378	29,597	86,107		105k-110k
Yanacocha	62,125	66,563	65,220	193,908		315k (3)
El Brocal	3,067	4,317	5,360	12,745		17k-19k
Silver (Oz.)
Uchucchacua	1,243,916	1,268,082	1,220,393	3,732,391		3.7 M
El Brocal	1,574,305	1,603,208	1,482,163	4,659,676		5.4M - 6.0M
Tambomayo	284,677	432,638	509,836	1,227,151		1.6M - 1.8M
Julcani	648,854	570,248	657,494	1,876,596		2.1M - 2.4M
Lead (MT)
El Brocal	2,140	2,812	2,754	7,707		10.0k - 12.0k
Uchucchacua	1,292	1,715	1,830	4,836		4.8K
Tambomayo	1,504	2,767	1,978	6,249		7.7k - 8.2k
Zinc (MT)
El Brocal	10,207	8,612	8,930	27,748		36.0k - 38.0k
Uchucchacua	1,246	3,029	1,928	6,203		6.2K
Tambomayo	1,821	3,671	3,397	8,888		10.5k - 12.0k
Copper (MT)
El Brocal	7,965	10,494	9,146	27,606		37.0k - 42.0k

1. Above 2021 projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of September 2021.

2. Updated guidance could potentially be adversely impacted by further COVID-19 effects.

3. As announced by Newmont on February 18, 2021.

 

Additional Comments

• Tambomayo:
  
  3Q21 gold production was in line with expectations. 2021 gold guidance remains unchanged.
  
  The Company has increased its full year 2021 silver, lead and zinc production guidance.

• Orcopampa:
  
  3Q21 successful ramp-up with gold production in line with expectations. 2021 guidance remains unchanged.

• Coimolache:
  
  3Q21 gold production in line with expectations. The Company has increased it’s 2021 gold production guidance for Coimolache.

• La Zanja:
  
  3Q21 gold production exceeded expectations. The Company has increased its 2021 gold production guidance for La Zanja.

• Julcani:
  
  3Q21 silver production was in line with expectations. 2021 guidance remains unchanged.

• El Brocal:
  
  3Q21 production was in line with expectations. The Company has decreased its 2021 Gold and Zinc guidance slightly due to decreased processing plant recovery.

• Uchucchacua:
  
  3Q21 silver, lead and zinc production below expectations with decreased production due to suspended operations resulting from an illegal road blockade by members of the local community which began on September 13, 2021.
  
  Decreased 2021 silver production will be partially offset for the remainder of the year by increased production by other mining units.

 

3Q21 Payable Volume Sold

3Q21 Volume sold per Metal (100% basis)
	1Q21 (Actual)	2Q21 (Actual)	3Q21 (Actual)	9M21 (Actual)
Gold (Oz.)
Orcopampa	5,698	9,618	15,646	30,962
Tambomayo	14,631	16,652	15,943	47,225
La Zanja	3,897	4,455	5,169	13,521
Coimolache	28,094	29,815	30,893	88,802
El Brocal	1,951	2,805	3,806	8,562
Silver (Oz.)
Uchucchacua	1,029,816	1,226,055	1,107,282	3,363,154
El Brocal	1,244,168	1,325,553	1,235,143	3,804,864
Tambomayo	257,290	380,029	445,525	1,082,844
Julcani	614,164	547,606	606,737	1,768,507
Lead (MT)
El Brocal	2,239	2,597	2,461	7,297
Uchucchacua	1,014	1,450	1,562	4,025
Tambomayo	1,440	2,575	1,813	5,827
Julcani	113	91	83	286
Zinc (MT)
El Brocal	8,491	7,117	7,367	22,975
Uchucchacua	914	2,309	1,444	4,667
Tambomayo	1,401	3,049	2,304	6,754
Copper (MT)
El Brocal	7,536	9,948	8,677	26,161
Realized Metal Prices*
	1Q21 (Actual)	2Q21 (Actual)	3Q21 (Actual)	9M21 (Actual)
Gold (Oz)	1,726	1,815	1,764	1,771
Silver (Oz)	26.98	27.06	23.94	25.98
Lead (MT)	2,129	2,192	2,412	2,249
Zinc (MT)	3,220	3,010	3,048	3,088
Copper (MT)	8,994	10,033	9,488	9,553
*Buenaventura consolidated figures.

Appendix

1. 3Q21 Production per Metal
	1Q21 (Actual)	2Q21 (Actual)	3Q21 (Actual)	9M21 (Actual)
Gold (Oz.)
Julcani	13	48	85	146
Silver (Oz.)
Orcopampa	1,043	1,781	4,716	7,539
La Zanja	27,042	20,519	24,011	71,573
Coimolache	200,993	166,327	159,072	526,393
Yanacocha	187,057	33,338	-1,483	218,912
Lead (MT)
Julcani	146	123	114	383
2. 3Q21 Volume Sold per Metal
	1Q21 (Actual)	2Q21 (Actual)	3Q21 (Actual)	9M21 (Actual)
Gold (Oz.)
Julcani	10	46	64	119
Silver (Oz.)
Orcopampa	1,878	1,518	4,709	8,105
La Zanja	28,964	24,710	26,683	80,356
Coimolache	215,648	178,729	169,499	563,876

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*, El Brocal, La Zanja and Coimolache).

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation & Sumitomo Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc., Sumitomo Corporation & Sumitomo Metals).

For a printed version of the Company’s 2018 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/20211015005374/en/

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

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

FAQ

What are Buenaventura's 3Q21 production figures for gold and silver?

Buenaventura reported gold production of 15,547 ounces at Orcopampa and 65,220 ounces at Yanacocha for 3Q21.

What is Buenaventura's updated production guidance for 2021 for gold?

The updated 2021 guidance for gold production is 40k-45k ounces at Orcopampa and 315k at Yanacocha.

How much silver did Buenaventura produce in the first nine months of 2021?

Buenaventura produced a total of 3.7 million ounces of silver in the first nine months of 2021.

What adjustments did Buenaventura make to its silver production guidance for 2021?

Buenaventura adjusted its silver production guidance to a range of 5.4 million to 6.0 million ounces for El Brocal.