BVN Compania De Minas Buenaventura SA

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 4Q22 results for production and volume sold.

4Q22 and FY22 Production per Metal(100% basis)   1Q22(Actual) 2Q22(Actual) 3Q22(Actual) 4Q22(Actual) FY22(Actual) 2023 Guidance (1)(2)(3)   Gold (Oz.) Orcopampa

19,031

17,749

20,164

17,535

74,478

 

 

72k - 80k

Tambomayo

13,867

14,351

13,755

12,348

54,320

 

 

35k - 40k

La Zanja

5,900

4,767

8,786

10,163

29,616

 

 

-

Coimolache

19,512

19,930

21,899

21,067

82,408

 

 

60k - 65k

El Brocal

4,350

4,457

7,085

7,467

23,359

 

 

24k - 26k

 

 

 

 

 

 

 

 

Silver (Oz.)

 

 

 

 

 

 

 

 

Uchucchacua

0

0

0

0

0

 

 

0.7M - 1.0M

Yumpag

0

0

0

0

0

 

 

1.6M - 1.8M

El Brocal

1,059,666

806,123

813,272

877,768

3,556,829

 

 

2.7M - 3.0M

Tambomayo

419,396

433,820

546,256

463,938

1,863,411

 

 

1.9M - 2.2M

Julcani

661,132

640,557

692,876

646,125

2,640,689

 

 

2.6M - 2.8M

 

 

 

 

 

 

 

 

Lead (MT)

 

 

 

 

 

 

 

 

El Brocal

2,497

1,306

1,781

1,207

6,791

 

 

7.5k - 8.3k

Uchucchacua

0

0

0

0

0

 

 

1.4k - 1.5k

Yumpag

0

0

0

0

0

 

 

0.3k - 0.4k

Tambomayo

2,509

2,823

2,639

2,320

10,290

 

 

2.9k - 3.2k

 

 

 

 

 

 

 

 

Zinc (MT)

 

 

 

 

 

 

 

 

El Brocal

8,772

4,146

6,403

4,037

23,359

 

 

23.0k - 25.0k

Uchucchacua

0

0

0

0

0

 

 

2.0k - 2.2k

Yumpag

0

0

0

0

0

 

 

-

Tambomayo

3,543

3,920

3,446

2,601

13,511

 

 

4.8k - 5.3k

 

 

 

 

 

 

 

 

Copper (MT)

 

 

 

 

 

 

 

 

El Brocal

10,159

10,537

12,108

14,548

47,352

 

 

45.0k - 50.0k

1. 2023 outlook projections shown above are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of February 2023.
2. 2023 Guidance for Uchucchacua and Yumpag is subject of permit approval to begin production.
3. During the 1Q23 El Brocal will be stockpiling ore mined from the open pit. Lead and Zinc ore will be treated at the processing plant since 2Q23. The underground mine will operate continuously throughout 2023.

4Q22 and 2023 Guidance Comments

Tambomayo:

• 2022 gold, silver, lead and zinc production were in line with Buenaventura’s revised 2022 guidance announced in the third quarter 2022.
• 2023 Guidance: the Company expects a year on year decrease in gold production due to the planned mining sequence which entails mining narrower veins. This will result in a 20% decrease in annual throughput as well as lower gold, lead and zinc grades.

Orcopampa:

• 2022 gold production was in line with Buenaventura’s revised 2022 guidance.
• 2023 Guidance: gold production is expected to exceed 2022 production due to an anticipated increase in 2023 throughput.

Coimolache:

• 2022 gold production was in line with Buenaventura’s revised guidance.
• 2023 Guidance: the Company expects a decrease in 2023 gold production due to leach pad capacity limitations resulting from leach pad expansion permitting delays.

La Zanja:

• 2022 gold production was below revised guidance due to the re-assessment of economics for the Phase V-Pampa Verde open pit. Mining at Phase V-Pampa Verde was postponed due to inflation-related OpEx increases and to enable early access for exploring the sulfides potential below the pit.
• Mining activities at the Pampa Verde pit will be paused during 2023 to focus on exploration. However, leaching will continue at La Zanja’s San Pedro pad to the extent that this remains profitable.

Julcani:

• 2022 silver production was in line with revised 2022 guidance.
• 2023 Guidance: 2023 silver production is expected to be consistent with that of prior years.

Yumpag:

• Yumpag project construction and permitting will continue according to schedule.
• 2023 Guidance: Production is subject of permit approval, which is expected to be granted during 3Q23 and assumes initial production beginning in 4Q23.

Uchucchacua:

• Exploration and mine development at the Uchucchacua mine will continue as planned. The 2H23 target to resume ore beneficiation at Uchucchacua’s processing plant remains unchanged.
• 2023 Guidance: Production will resume ramp-up during 4Q23.

El Brocal:

• 2022 gold, silver and copper production exceeded Buenaventura’s revised 2022 guidance.
• 2022 lead and zinc production were in line with revised guidance.
• Buenaventura has recorded a US$16.4M write-off within its 4Q 2022 results related to inventories associated with low grade polymetallic mineral stocks from its Tajo Norte open pit. This represents a one-time accounting effect and does not represent a cash outflow. This has been recorded within the company’s 4Q 2022 results as related metallurgical tests were completed from June to November 2022 and concluded that the inventory’s sulfides ore has oxidized, adversely affecting its metallurgical performance and therefore its value.
• 2023 Guidance: copper, gold, zinc and lead production is expected to be in line with that of 2022 production while silver production is expected to decrease by 20%:
  • The Marcapunta underground mine is progressing according to plan and is expected to reach 9,000 tpd by the end of 2023 with sustained stable copper and gold production and strong economic margins. A portion of the surplus underground mine production will be processed at El Brocal’s Plant #2 which is equipped to process copper ore but had previously focused primarily on processing polymetallic ore from the open pit.
  • Silver production is expected to decrease due to reduced production from the Tajo Norte open pit as tailings dam capacity is prioritized for higher-margin ore derived from the Marcapunta underground mine. Permitting delays and a renewed mine strategy for the Tajo Norte open pit will also temporarily reduce 2023 throughput.

4Q22 and FY22 Payable Volume Sold

4Q22 and FY22 Volume Sold per Metal(100% basis)   1Q22(Actual) 2Q22(Actual) 3Q22(Actual) 4Q22(Actual) FY22(Actual)   Gold (Oz.) Orcopampa

19,307

17,719

19,814

17,514

74,354

Tambomayo

12,181

12,917

12,150

10,999

48,247

La Zanja

5,773

4,452

8,575

10,576

29,376

Coimolache

20,586

20,551

21,431

23,442

86,010

El Brocal

2,907

2,590

5,229

5,492

16,217

 

 

 

 

 

Silver (Oz.)

 

 

 

 

 

Uchucchacua

18,730

139,688

150,426

152,471

461,315

El Brocal

852,933

650,260

642,558

712,041

2,857,792

Tambomayo

351,077

376,313

468,076

402,538

1,598,004

Julcani

636,303

605,634

651,077

605,128

2,498,142

 

 

 

 

 

Lead (MT)

 

 

 

 

 

El Brocal

2,239

1,071

1,568

1,036

5,914

Uchucchacua

0

18

0

0

18

Tambomayo

2,275

2,629

2,449

2,126

9,479

 

 

 

 

 

Zinc (MT)

 

 

 

 

 

El Brocal

7,256

3,370

5,229

3,311

19,166

Uchucchacua

0

0

0

0

0

Tambomayo

2,922

3,262

2,832

2,038

11,054

 

 

 

 

 

Copper (MT)

 

 

 

 

 

El Brocal

9,697

10,311

11,431

13,772

45,211

  Realized Metal Prices*   1Q22(Actual) 2Q22(Actual) 3Q22(Actual) 4Q22(Actual) FY22(Actual) Gold (Oz)

1,896

1,825

1,678

1,747

1,781

Silver (Oz)

24.10

22.71

17.33

19.62

20.89

Lead (MT)

2,363

2,180

1,713

2,037

2,082

Zinc (MT)

4,105

4,489

3,412

1,575

3,557

Copper (MT)

9,950

9,073

7,261

6,804

8,113

  *Buenaventura consolidated figures.

Appendix

1. 4Q22 and FY22 Production per Metal(100% basis)   1Q22(Actual) 2Q22(Actual) 3Q22(Actual) 4Q22(Actual) FY22(Actual)   Silver (Oz.) Orcopampa

7,856

7,334

8,247

8,687

32,124

La Zanja

23,363

30,318

31,665

20,088

105,435

Coimolache

77,195

75,504

76,133

68,135

296,968

 

 

 

 

 

Lead (MT)

 

 

 

 

 

Julcani

99

124

140

167

530

 

 

 

 

 

2. 4Q22 and FY22 Volume Sold per Metal (100% basis)

 

 

 

 

 

1Q22 (Actual)

2Q22 (Actual)

3Q22 (Actual)

4Q22 (Actual)

FY22 (Actual)

 

 

 

 

 

Silver (Oz.)

 

 

 

 

 

Orcopampa

6,928

12,411

7,715

7,461

34,516

La Zanja

21,818

29,273

34,147

24,707

109,944

Coimolache

96,634

84,859

78,028

76,077

335,598

 

 

 

 

 

Lead (MT)

 

 

 

 

 

Julcani

76

93

112

138

418

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/20230216005854/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

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

Contacts in NY: Barbara Cano (646) 452 2334 barbara@inspirgroup.com