Buenaventura Announces Resumption of Ore Processing Operations at El Brocal Mine

Rhea-AI Summary

Buenaventura, Peru's largest publicly traded precious metals mining company, has resumed ore processing operations at its El Brocal mine. The resumption began at midnight on June 7, 2024, to process the accumulated 220,000 tonnes of copper ore. The processing rate will ramp up to 15,000 tons per day, aiming to meet the budgeted production for Q3 2024 and the full-year 2024 production guidance. The resumption follows an agreement between the Huaraucaca community leaders and El Brocal representatives, facilitated by Peru's Ministry of Energy and Mines. The agreement addresses compliance with commitments between the parties. Buenaventura reaffirms its commitment to all signed agreements with surrounding communities.

Positive

• Resumption of operations at El Brocal mine as of June 7, 2024.
• Processing rate to reach 15,000 tons per day.
• Accumulated 220,000 tonnes of copper ore to be processed.
• Expected to meet Q3 2024 and full-year 2024 production guidance.
• Agreement reached with Huaraucaca community leaders.
• Facilitation by Peru's Ministry of Energy and Mines ensures compliance.

Negative

• Previous suspension of operations due to blockade.
• Potential risks associated with community relations.

Insights

Financial Analyst

The resumption of ore processing operations at Buenaventura's El Brocal mine is a significant development for the company. The processing of approximately 220,000 tonnes of copper ore, ramping up to 15,000 tons per day, will likely have a positive impact on the company's revenue and profitability in the coming quarters. This is particularly important given that the company aims to achieve its production guidance for 2024.

Short-term impact: The immediate effect will be the increased cash flow from the processed ore, which had been accumulating due to the suspension. This should improve liquidity and financial stability, potentially leading to positive sentiment among investors.

Long-term impact: Resuming operations also enhances the company's operational efficiency and sustainability. The resolution of community disputes and compliance with commitments indicate a stable operational environment, reducing the risk of future disruptions.

This development is a positive signal for stakeholders, underscoring Buenaventura's capacity to manage operational challenges and sustain production targets.

Market Research Analyst

From a market perspective, the restart of operations at El Brocal is likely to affect the supply and pricing of copper. Given the substantial tonnage involved, this could influence market dynamics, especially if the company reaches its production targets for 3Q24 and the full year.

Competitive Position: Buenaventura's ability to resume operations and maintain production levels strengthens its competitive position in the precious and base metals market. This can attract more investors, particularly those focusing on stable and reliable mining operations.

Community Relations: The agreement with community leaders to end the blockade demonstrates the company's commitment to social responsibility and sustainable operations. This can enhance its reputation and potentially lead to better community relations in the future.

Overall, this news is favorable for market sentiment and can bolster investor confidence in Buenaventura's operational resilience and market strategy.

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, is pleased to announce that ore treatment operations at its El Brocal processing plant has resumed. Ore treatment activities resumed operations at midnight on June 7, 2024 to begin processing the accumulated inventory at the mine site. El Brocal has accumulated approximately 220,000 tonnes of copper ore to date, the processing of which will gradually ramp to a rate of 15,000 tons per day, enabling recovery of ore processing which was halted during the suspension. The Company expects to achieve the budgeted production in 3Q24 to achieve its full year 2024 production guidance.

Huaraucaca community leaders signed an agreement with El Brocal representatives to end the prior blockade and related suspension of ore treatment at the Company’s processing facilities. A formal dialogue between Community leaders and Buenaventura, facilitated by officials from Peru’s Ministry of Energy and Mines (MINEM) have reviewed and addressed overall compliance with commitments between both parties. Further, Buenaventura reaffirms its commitment and compliance with all signed agreements with communities surrounding its operations.

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 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 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/20240610718561/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



Contact in NY:

Barbara Cano

(646) 452 2334

barbara@inspirgroup.com

Company Website: www.buenaventura.com.pe/ir

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

FAQ

When did BVN resume ore processing operations at El Brocal mine?

Ore processing operations at El Brocal mine resumed at midnight on June 7, 2024.

How much copper ore is accumulated at El Brocal mine for processing?

El Brocal mine has accumulated approximately 220,000 tonnes of copper ore.

What is the daily processing rate expected at BVN's El Brocal mine?

The daily processing rate at El Brocal mine is expected to reach 15,000 tons per day.

What production targets does BVN aim to achieve in 2024?

BVN aims to achieve the budgeted production for Q3 2024 and its full-year 2024 production guidance.

What facilitated the resumption of operations at BVN's El Brocal mine?

An agreement between Huaraucaca community leaders and El Brocal representatives, facilitated by Peru's Ministry of Energy and Mines, enabled the resumption.

What are the potential risks associated with BVN's El Brocal mine operations?

The major potential risk is related to community relations, which previously caused a blockade and suspension of operations.