Buenaventura Announces Second Quarter 2024 Results for Production and Volume Sold per Metal
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.
- 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
- Zinc production from El Brocal was 0 metric tons in Q2, compared to 1,985 metric tons in H1 2024
Insights
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.
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.
Production per Metal
Three Months Ended June 30, 2024 |
Six Months Ended June 30, 2024 |
2024 Updated
|
||||
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 |
- 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.
-
Considers
100% of Buenaventura’s operating units,100% of La Zanja and100% of El Brocal. -
Considers
100% of Buenaventura’s operating units,100% of La Zanja,61.43% of El Brocal and40.094% of Coimolache. -
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 |
-
Considers
100% of Buenaventura’s operating units,100% of La Zanja and100% of El Brocal. -
Considers
100% of Buenaventura’s operating units,100% of La Zanja,61.43% of El Brocal and40.094% of Coimolache. - 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 |
- Considers Buenaventura consolidated figures.
- 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
The Company owns
(*) Operations wholly owned by Buenaventura.
Note on Forward-Looking Statements
This press release may contain forward-looking information (as defined in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240716976503/en/
Contacts in
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
Barbara Cano, InspIR Group
+1 646 452 2334
barbara@inspirgroup.com
Website: www.buenaventura.com
Source: Compañía de Minas Buenaventura S.A.A.
FAQ
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