Buenaventura Announces Third Quarter and Nine Month 2020 Results

Rhea-AI Summary

Compañía de Minas Buenaventura S.A.A. (NYSE: BVN) reported strong 3Q20 results, with EBITDA from direct operations at US$ 68.5 million, up from US$ 26.5 million in 2Q20. Adjusted EBITDA rose to US$ 183.9 million, a 9% increase from 3Q19. Net income surged to US$ 24.4 million compared to US$ 4.5 million in 3Q19. Despite a 1% decline in total revenues to US$ 228.2 million, the company maintained a robust cash position of US$ 265 million. Notably, Buenaventura refinanced a US$ 113 million leasing payment, extending its maturity by 18 months.

Positive

• 3Q20 EBITDA from direct operations increased to US$ 68.5 million from US$ 26.5 million in 2Q20.
• Net income of US$ 24.4 million represents a 442% increase from 3Q19.
• Cash position of US$ 265 million indicates strong liquidity.
• Successfully refinanced US$ 113 million leasing payment, extending maturity by 18 months.

Negative

• Total revenues decreased by 1% from 3Q19, amounting to US$ 228.2 million.
• 9M20 total revenue fell 30% compared to the previous year, totaling US$ 440.5 million.
• Adjusted EBITDA for 9M20 dropped 37% compared to 2019.

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 results for the third quarter (3Q20) and nine-month (9M20) period ended September 30, 2020. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non-GAAP basis and are stated in U.S. dollars (US$).

Third Quarter 2020 Highlights:

• Third quarter 2020 EBITDA from direct operations reflected a positive trend on both a sequential and year on year basis, despite the effects of COVID-19 on Buenaventura’s operations during the quarter. EBITDA from direct operations reached US$ 68.5 million for the 3Q20, compared to US$ 26.5 million in 2Q20 and US$ 58.4 million reported in 3Q19.
• 3Q20 Adjusted EBITDA including associated companies reached US$ 183.9 million, compared to US$ 168.2 million in 3Q19.
• 3Q20 capital expenditures were US$ 12.6 million, compared to US$ 28.0 million for the same period in 2019.
• 3Q20 net income was US$ 24.4 million, compared to US$ 4.5 million for the same period in 2019.
• The Company´s De-Bottlenecking Program continued to progress at a reduced level during the 3Q20. The program’s 2020 focus is on Buenaventura’s Tambomayo, Uchucchacua and El Brocal mines (please refer to page 7 for related details).
• Buenaventura’s cash position reached US$ 265 million for the third quarter 2020.
• The Company has released its updated guidance for the full year 2020 (please refer to page 2 for related details).
• In line with the Company’s ongoing focus on cash preservation, on October 29, 2020 Buenaventura successfully refinanced the final US$ 113 million leasing payment for its Huanza hydroelectric power plant, effective November 2, 2020. This extends the maturity by 18 months (bullet) at rate of Libor 30-days + 2.10%.

Financial Highlights (in millions of US$, except EPS figures):

	3Q20	3Q19	Var	9M20	9M19	Var
Total Revenues	228.2	230.2	-1%	440.5	632.4	-30%
Operating Profit	12.7	-6.9	N.A.	-64.8	-49.3	-31%
EBITDA Direct Operations	68.5	58.4	17%	88.1	133.2	-34%
Adjusted EBITDA (Inc Associates)	183.9	168.2	9%	298.5	472.5	-37%
Net Income	24.4	4.5	442%	-75.7	41.5	N.A.
EPS*	0.10	0.02	442%	-0.30	0.16	N.A.

(*) As of September 30, 2020 Buenaventura had a weighted average number of shares outstanding of 253,986,867.

For a full version of Compañía de Minas Buenaventura Third Quarter 2020 Earnings Release, please visit: http://www.buenaventura.com/en/inversionistas

CONFERENCE CALL INFORMATION:

Compañia de Minas Buenaventura will host a conference call on Friday, October 30, 2020 to discuss these results at 10:00 a.m. Eastern Time / 9:00 a.m. Peru Time

To participate in the conference call, please dial:

Toll Free US:
+1-844-763-8274

Toll International:
+1-412-717-9224

Passcode:
Ask to be joined into the Compañía de Minas Buenaventura’s call.

Webcast: https://services.choruscall.com/links/bvn201030.html

If you would prefer to receive a call rather than dialing in, please register via the following link. Please use this option 10-15 minutes prior to conference call start time:

Call Me Link: https://hd.choruscall.com/?callme=true&passcode=&info=company-email&r=true&b=9
Passcode: 3520604
Participants who do not wish to be interrupted to have their information gathered may have Chorus Call dial out to them by clicking on the above link, filling in the information, and pressing the green phone button at the bottom. The phone number provided will be automatically called and connected to the conference without any interruption to the participant. (Please note: Participants will be joined directly to the conference and will hear hold music until the call begins. No confirmation message will be played when joined.)

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded, precious metals company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold and silver and other metals via wholly owned mines as well as through its participation in joint exploration projects.

Buenaventura currently operates several mines in Peru: Orcopampa*, Uchucchacua*, Julcani*, El Brocal, La Zanja and Coimolache, and is developing the Tambomayo project.

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer; 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

For a printed version of the Company’s 2019 Form 20-F, please contact the investor relations contacts on page 1 of this report, or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

This press release and related conference call contain, in addition to historical information, forward-looking statements including statements related to the Company’s ability to manage its business and liquidity during and after the COVID-19 pandemic, the impact of the COVID-19 pandemic on the Company’s results of operations, including net revenues, earnings and cash flows, the Company’s ability to reduce costs and capital spending in response to the COVID-19 pandemic if needed, the Company’s balance sheet, liquidity and inventory position throughout and following the COVID-19 pandemic, the Company’s prospects for financial performance, growth and achievement of its long-term growth algorithm following the COVID-19 pandemic, future dividends and share repurchases.

This press release may also 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.