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

Rhea-AI Summary

Buenaventura (NYSE: BVN) has released its Q2 2024 production and sales volume results. Key highlights include:

- Gold production: 33,819 oz from direct operations, 35,247 oz including associated companies

- Silver production: 4,017,977 oz from direct operations, 3,911,774 oz including associated companies

- Lead production: 4,383 metric tons

- Zinc production: 6,352 metric tons

- Copper production: 10,123 metric tons

The company is on track to meet its 2024 guidance for most metals. Notably, Yumpag mine contributed significantly to silver production with 2,461,616 oz in Q2. El Brocal remains the primary copper producer for Buenaventura.

Positive

• Silver production from Yumpag mine reached 2,461,616 oz in Q2, contributing significantly to total output
• Gold production from direct operations totaled 33,819 oz, with Orcopampa being the top producer at 17,569 oz
• Copper production from El Brocal reached 10,123 metric tons in Q2

Negative

• Zinc production from El Brocal was 0 metric tons in Q2, compared to 1,985 metric tons in H1 2024

Financial Analyst

Buenaventura's second-quarter results for 2024 reveal a mixed performance across different metals. Gold production from El Brocal, Orcopampa and Tambomayo shows varying results but largely aligns with the company's updated guidance. The total direct operations produced 33,819 ounces of gold in the quarter and 70,412 ounces in the first half of the year, progressing toward the annual goal of 122.8k to 137.2k ounces. Investors should note the fine margins in these numbers, with potential minor shortfalls or overachievements impacting the stock value.

Silver production numbers draw attention due to the substantial yields from Yumpag and Uchucchacua. Total direct operations have produced 7,088,751 ounces in the first half, indicating a trend towards the annual target of 14.5M to 16.0M ounces. Any disruptions or inefficiencies in these high-output mines could significantly impact the company's financial performance.

The company's base metals like lead, zinc and copper show stable production, with copper from El Brocal leading at 25,565 metric tons in the first half against an annual projection of 55k to 60k metric tons. This stable output in base metals may provide a buffer against the volatility in precious metals' prices.

Investors should weigh these results considering commodity price trends and global economic conditions that can influence metal prices and subsequently Buenaventura's revenue. The performance seems robust but watch for any deviations from the guidance which could act as a volatility trigger for the stock in the near term.

Market Research Analyst

Analyzing Buenaventura's results from a market perspective, the company's comprehensive breakdown of production volumes across multiple mines provides significant transparency. This reporting strategy allows investors to assess the performance variability between different mining sites and metals.

A key takeaway is the importance of diversification. Buenaventura's spread across gold, silver, lead, zinc and copper acts as a hedge against market volatility. For instance, the high silver output from Yumpag and Uchucchacua offers reassurance against any potential dips in gold production or pricing.

Meanwhile, the consistency in copper production, particularly from El Brocal, indicates robust operational management, which can be favorable for investor confidence. It’s also worth noting that the ongoing high demand for industrial metals like copper, driven by sectors such as renewable energy and electric vehicles, could help Buenaventura capitalize on market trends.

Retail investors should monitor how well Buenaventura meets its updated annual guidance as it will reflect the firm's operational efficiency and ability to adapt to market conditions. A steady performance across these diversified assets could signify a stable investment despite fluctuating precious metal prices.

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 2Q24 results for production and volume sold.

Production per Metal

		Three Months Ended June 30, 2024		Six Months Ended June 30, 2024		2024 Updated Guidance (1)
Gold ounces produced
El Brocal		3,981		10,656		17.0k - 20.0k
Orcopampa		17,569		36,595		70.0k - 75.0k
Tambomayo		8,934		18,058		28.0k - 32.0k
Julcani		1,033		1,412		2.8k - 3.2k
La Zanja		2,303		3,692		5.0k - 7.0k
Total Direct Operations (2)		33,819		70,412		122.8k - 137.2k
Coimolache		7,390		30,186		38.0k - 43.0k
Total incl. Associated (3)		35,247		78,405		131.5k - 146.7k
Silver ounces produced
El Brocal		312,440		1,185,460		1.4M - 1.7M
Uchucchacua		409,481		916,532		2.2M - 2.5M
Yumpag (4)		2,461,616		3,426,612		7.5M - 8.0M
Orcopampa		7,979		15,966		-
Tambomayo		380,370		709,437		1.7M - 1.9M
Julcani		442,400		828,741		1.7M - 1.9M
La Zanja		3,692		6,003		-
Total Direct Operations (2)		4,017,977		7,088,751		14.5M - 16.0M
Coimolache		35,678		139,635		0.1M - 0.2M
Total incl. Associated (3)		3,911,774		6,687,504		14.0M - 15.4M
Lead metric tons produced
Uchucchacua		3,037		6,947		13.0k - 15.0k
Tambomayo		1,085		2,113		3.5k - 4.0k
Julcani		261		510		0.9k - 1.0k
Total Direct Operations (2)		4,383		9,570		17.4k - 20.0k
Zinc metric tons produced
El Brocal		0		1,985		1.9k - 2.0k
Uchucchacua		4,874		10,368		17.0k - 19.0k
Tambomayo		1,477		2,812		5.4k - 5.8k
Total Direct Operations (2)		6,352		15,165		24.3k - 26.8k
Copper metric tons produced
El Brocal		10,123		25,565		55.0k - 60.0k
Total Direct Operations (2)		10,123		25,565		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 July 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 June 30, 2024		Six Months Ended June 30, 2024
Gold ounces sold
El Brocal	2,192		6,765
Orcopampa	17,365		36,196
Tambomayo	8,317		16,761
Julcani	909		1,234
La Zanja	2,437		3,850
Total Direct Operations (1)	31,220		64,806
Coimolache	8,375		30,076
Total incl. Associated (2)	33,732		74,255
Silver ounces sold
El Brocal	249,032		989,899
Uchucchacua	354,404		790,717
Yumpag (3)	2,452,482		3,556,610
Orcopampa	4,231		12,143
Tambomayo	343,677		633,058
Julcani	420,236		803,609
La Zanja	9,638		15,690
Total Direct Operations (1)	3,833,701		6,801,726
Coimolache	40,753		138,645
Total incl. Associated (2)	3,753,989		6,475,510
Lead metric tons sold
El Brocal	0		72
Uchucchacua	2,774		6,263
Yumpag (3)	34		34
Tambomayo	928		1,843
Julcani	232		461
Total Direct Operations (1)	3,967		8,674
Zinc metric tons sold
El Brocal	0		1,592
Uchucchacua	4,033		8,568
Tambomayo	1,195		2,262
Total Direct Operations (1)	5,228		12,422
Copper metric tons sold
El Brocal	9,571		24,138
Tambomayo	63		63
Julcani	38		60
Total Direct Operations (1)	9,673		24,261

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 June 30, 2024		Six Months Ended June 30, 2024
Gold (US$/Oz)		2,336		2,219
Silver (US$/Oz)		29.98		27.13
Lead (US$/MT)		2,153		2,077
Zinc (US$/MT)		2,703		2,490
Copper (US$/MT)		9,998		8,952

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 exceeded 2Q24 projections due to a positive reconciliation of gold, lead and zinc grades relative to the mid-term production program, partially offset by decreased silver production. Full year 2024 lead and zinc guidance has therefore been updated. 2024 gold guidance remains unchanged.

Orcopampa:

• 2Q24 gold production was in line with expectations. 2024 guidance remains unchanged.

Coimolache:

• 2Q24 gold production was in line with expectations. 2024 guidance remains unchanged.
• Coimolache’s third Environmental Impact Assessment was approved by Peru’s National Service of Environmental Certification for Sustainable Investments (SENACE) on May 31, 2024. This permit enables Buenaventura to file for the relevant construction permit to increase leach pad capacity at Coimolache.

Julcani:

• Silver and lead production was in line with expectations for 2Q24. 2024 guidance remains unchanged.

Uchucchacua:

• Silver production was in line with expectations for 2Q24.
• Lead and zinc production exceeded 2Q24 projections due to a positive ore grade reconciliation. 2024 guidance remains unchanged.
• Uchucchacua daily throughput increased to an average 1,200 TPD during the 6M24, aligned with the Company’s targeted 1,500 TPD by year end 2024.

Yumpag:

• Silver production exceeded 2Q24 projections as ore processing was initiated earlier than expected, in March 2024, due to operating permit approval which was initially expected in May 2024. 2024 guidance has therefore been updated.

El Brocal:

• Copper and silver production was below expectations for 2Q24 due to a decrease in volume processed during the quarter resulting from a 16 day voluntary temporary suspension of El Brocal’s processing plant facilities, as was announced by the Company on May 22, 2024.
• Buenaventura announced that ore treatment operations at its El Brocal processing plant resumed operations at midnight on June 7, 2024. El Brocal had accumulated approximately 220,000 tonnes of copper ore upon the plant’s reinitiation. The processing of said stockpiled inventories, combined with production from the mine, will gradually ramp to a processing rate of 15,000 tons per day, leveraging the two plants’ previously idle capacity. El Brocal is expected to achieve its nine month 2024 copper production target by September 2024. Full year 2024 copper guidance therefore remains unchanged.
• The Company’s target to achieve a 11,000 TPD underground mining rate by year end 2024 remains unchanged.
• Open pit ore inventories were fully processed by the end of 1Q24. Lead and zinc production is not expected until the open pit resumes operation. The Company temporarily suspended mining activities at the open pit mine for up to three years, as was previously announced on October 3, 2023. 2024 zinc guidance has therefore been updated.

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/20240716976503/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) gold production in Q2 2024?

Buenaventura's gold production from direct operations in Q2 2024 was 33,819 ounces, with a total of 35,247 ounces including associated companies.

How much silver did Buenaventura (BVN) produce in Q2 2024?

Buenaventura produced 4,017,977 ounces of silver from direct operations in Q2 2024, with Yumpag mine contributing 2,461,616 ounces.

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

Buenaventura's copper production guidance for 2024 is between 55,000 and 60,000 metric tons, primarily from the El Brocal mine.

How did Buenaventura's (BVN) Yumpag mine perform in Q2 2024?

Buenaventura's Yumpag mine produced 2,461,616 ounces of silver in Q2 2024, making it a significant contributor to the company's overall silver production.