Buenaventura Announces Second Quarter 2022 Production and Volume Sold per Metal Results

Rhea-AI Summary

Compañia de Minas Buenaventura S.A.A. (NYSE: BVN) reported 2Q22 production results, highlighting variances in metal output compared to prior quarters. Gold production at Orcopampa decreased to 17,749 Oz from 19,031 Oz in 1Q22, whereas Tambomayo's output slightly increased to 14,351 Oz. Silver production saw a decrease at El Brocal, totaling 806,123 Oz, while lead and zinc outputs also reflected declines. The Company updated its production guidance for the year, projecting gold output of 65k-70k Oz and silver output of 3.0M-3.5M Oz.

Positive

• Tambomayo's gold production improved to 14,351 Oz, up from 13,867 Oz in 1Q22.
• El Brocal's copper production remained stable at 10,537 MT.

Negative

• Total gold production decreased at Orcopampa to 17,749 Oz from 19,031 Oz in 1Q22.
• Silver production at El Brocal dropped to 806,123 Oz from over 1M Oz, affecting overall silver output.
• Lead production at El Brocal fell to 1,306 MT, a significant decline.
• Zinc production at El Brocal also declined to 4,146 MT from 8,772 MT.

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 2Q22 results for production and volume sold.

2Q22 Production per Metal (100% basis)
	1Q22 (Actual)	2Q22 (Actual)	6M22 (Actual)		2022 Updated Guidance (1)
Gold (Oz.)
Orcopampa	19,031	17,749	36,780		65k - 70k
Tambomayo	13,867	14,351	28,218		48k - 53k
La Zanja	5,900	4,767	10,667		37k - 45k
Coimolache	19,512	19,930	39,442		80k - 85k
El Brocal	4,350	4,457	8,807		12k - 15k
Silver (Oz.)
Uchucchacua	0	0	0		0
El Brocal	1,059,666	806,123	1,865,789		3.0M - 3.5M
Tambomayo	419,396	433,820	853,216		1.8M - 2.4M
Julcani	661,132	640,557	1,301,689		2.2M - 2.5M
Lead (MT)
El Brocal	2,497	1,306	3,803		5.0k - 6.0k
Uchucchacua	0	0	0		0
Tambomayo	2,509	2,823	5,331		6.0k - 8.0k
Zinc (MT)
El Brocal	8,772	4,146	12,918		16.0k - 20.0k
Uchucchacua	0	0	0		0
Tambomayo	3,543	3,920	7,464		8.0k - 10.0k
Copper (MT)
El Brocal	10,159	10,537	20,696		40.0k - 45.0k

1. 2022 outlook projections shown above are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of July 2022.

2Q22 Comments

Tambomayo:

• 2Q22 gold, lead and zinc production exceeded expectations due to an increase in grade and metallurgical recovery. 2022 guidance has subsequently been updated.
• 2Q22 silver production was in line with expectations for the quarter. 2022 guidance remains unchanged.

Orcopampa:

• 2Q22 gold production exceeded expectations due to an increase of treated ore and higher gold grades. 2022 guidance has been updated.

Coimolache:

• Production remained stable during the quarter with higher than expected gold production due to positive reconciliation of grades from the Mirador Norte open pit along with improved leaching permeability. 2022 guidance has been updated.

La Zanja:

• Partial recovery of mining rate at the Pampa Verde open pit subsequent to Peru’s January through April rainy season. Inflationary pressure has accelerated Buenaventura’s decision to put the mine under care and maintenance by 4Q22 in anticipation of oxides being largely depleted between October and December 2022. Buenaventura will then continue to focus on Cu-Au sulfide exploration within La Zanja’s operational footprint. Any residual gold ounces remaining within the open pit will be recovered once La Zanja’s Cu_Au project is confirmed. 2022 guidance remains unchanged.

Julcani:

• 2Q22 silver production was in line with expectations. 2022 guidance remains unchanged.

Uchucchacua:

• Exploration continues at the Uchucchacua mine according to plan with a focus on tunnels and diamond drilling during 2Q22. Underground crews are simultaneously in the process of being assembled in order to resume mine development during 3Q22, targeting production restart by 2H23.
• Yumpag project continued according to plan with progress related to construction and permitting during the second quarter. Production is targeted to begin during the 2H23. Exploration continued as planned at the Camila and Tomasa orebodies with positive results which likely will increase reserves and resources by the end of 2022.

El Brocal:

• Stable production at the underground mine at a rate of 8,000 tpd. 2Q22 copper production was in line with expectations. 2022 guidance remains unchanged.
• Tajo Norte’s silver, zinc and lead production was below expectations during the quarter due to a change in the mine plan. 2022 guidance was updated.
• Rehabilitation work began in late June within the upper area of the open pit which required stabilization subsequent to the March 2022 landslide.
• Polymetallic ore derived from the open pit’s low-grade stockpiles was processed during 2Q22. This will continue during 3Q22 while rehabilitation works progresses at the open pit.

2Q22 Payable Volume Sold

2Q22 Volume Sold per Metal (100% basis)
	1Q22 (Actual)	2Q22 (Actual)	6M22 (Actual)
Gold (Oz.)
Orcopampa	19,307	17,719	37,026
Tambomayo	12,181	12,917	25,098
La Zanja	5,773	4,452	10,225
Coimolache	20,586	20,551	41,137
El Brocal	2,907	2,590	5,496
Silver (Oz.)
Uchucchacua	18,730	139,688	158,418
El Brocal	852,933	650,260	1,503,193
Tambomayo	351,077	376,313	727,390
Julcani	636,303	605,634	1,241,937
Lead (MT)
El Brocal	2,239	1,071	3,310
Uchucchacua	0	18	18
Tambomayo	2,275	2,629	4,904
Zinc (MT)
El Brocal	7,256	3,370	10,626
Uchucchacua	0	0	0
Tambomayo	2,922	3,262	6,184
Copper (MT)
El Brocal	9,697	10,311	20,008
Realized Metal Prices*
	1Q22 (Actual)	2Q22 (Actual)	6M22 (Actual)
Gold (Oz)	1,896	1,825	1,861
Silver (Oz)	24.10	22.71	23.42
Lead (MT)	2,363	2,180	2,280
Zinc (MT)	4,105	4,489	4,257
Copper (MT)	9,950	9,073	9,498
*Buenaventura consolidated figures.

Appendix

1. 2Q22 Production per Metal
	1Q22 (Actual)	2Q22 (Actual)	6M22 (Actual)
Silver (Oz.)
Orcopampa	7,856	7,334	15,190
La Zanja	23,363	30,318	53,682
Coimolache	77,195	75,504	152,699
Lead (MT)
Julcani	99	124	224
2. 2Q22 Volume Sold per Metal
	1Q22 (Actual)	2Q22 (Actual)	6M22 (Actual)
Silver (Oz.)
Orcopampa	6,928	12,411	19,339
La Zanja	21,818	29,273	51,090
Coimolache	96,634	84,859	181,494
Lead (MT)
Julcani	76	93	168

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 2021 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/20220714005880/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

Contacts in NY:

Barbara Cano

(646) 452 2334

barbara@inspirgroup.com

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

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

FAQ

What were the 2Q22 gold production numbers for Buenaventura (BVN)?

In 2Q22, gold production for Buenaventura was 17,749 Oz at Orcopampa, 14,351 Oz at Tambomayo, 4,767 Oz at La Zanja, and 19,930 Oz at Coimolache.

How did Buenaventura's silver production change in 2Q22?

In 2Q22, Buenaventura's silver production was 806,123 Oz at El Brocal, down from over 1M Oz in the previous quarter.

What is Buenaventura's updated production guidance for 2022?

Buenaventura's updated production guidance for 2022 includes gold output of 65k-70k Oz and silver output of 3.0M-3.5M Oz.

What were the lead and zinc production figures for Buenaventura in 2Q22?

In 2Q22, Buenaventura produced 1,306 MT of lead at El Brocal and 4,146 MT of zinc, both representing declines from previous quarters.