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 preliminary 4Q18 production and volume sold. The Company
also announced full year 2019 operating guidance (100% basis), 2019
EBITDA guidance from direct operations, 2019 De-Bottlenecking
Program guidance and 2019 CAPEX guidance.
4Q18 Production per Metal and 2019 Operating Guidance
(100% basis)
4Q18 (Actual)
12M18 (Actual)
2018 (Last Guidance)
2019 (Estimated)
Gold (Oz.)
Orcopampa 13,372 115,887
120k - 140k 75k - 90k
Tambomayo 31,026
129,172 125k - 135k 90k - 110k
La Zanja
20,101 71,630 70k - 80k 25k - 35k
Tantahuatay 49,708 173,192 160k - 180k
150k - 170k
Yanacocha 141,465 514,563
470k - 545k 510k*
El Brocal 4,111
21,429 20k - 25k 25k - 30k
Silver
(Oz.)
Uchucchacua 3,256,870 15,420,102 15.0M
- 17.0M 14.5M - 15.5M
Julcani 666,259
2,482,907 2.3M - 2.5M 2.2M - 2.5M
Mallay
97,670 514,081 0.4M - 0.5M 0
Tambomayo 873,249 3,929,808 3.5M - 4.5M
2.5M - 3.0M
El Brocal 934,642 3,901,869
4.6M - 5.0M 4.5M - 5.5M
Lead (MT)
Julcani 264 1,048 1.0k - 2.0k
0.9k - 1.0k
Uchucchacua 4,961 19,122
18.0k - 20.0k 22.0k - 26.0k
Mallay 401
1,768 0.5k - 2.5k 0
Tambomayo 1,522
4,220 3.0k - 4.5k 4.0k - 5.0k
El Brocal
5,361 20,582 20.0k - 30.0k 22.0k -
26.0k
Zinc (MT)
El Brocal 9,702 45,593
45k - 55k 57k - 65k
Uchucchacua 5,867
21,840 20.0k - 22.0k 27k - 32k
Mallay
1,107 4,151 3.0k - 3.6k 0
Tambomayo 2,080 8,685 7.5k - 8.5k
6k - 8k
Copper (MT)
El Brocal 12,093
46,231 45k - 55k 47k - 52k
*As announced by Newmont.
2018 Production Comments
Gold Operations
- Orcopampa:As was previously
announced on December 12, Orcopampa’s 2018 production was below the
Company’s most recently released production guidance due to
management’s strategic decision to temporarily cease production in
order to focus on centralizing the operation, prioritizing the
De-Bottlenecking Program over ore extraction.
- Tambomayo:2018 gold, silver and
lead production was in line with the most recent guidance released.
2018 zinc production was slightly above the guidance provided.
- La Zanja:2018 gold production
was in line with the most recent guidance released.
- Tantahuatay:2018 gold production
was in line with the most recent guidance released.
Silver Operations
- Uchucchacua:2018 silver, lead
and zinc production was in line with the most recent guidance
released.
- Julcani:2018 silver and lead
production was in line with the most recent guidance released.
- Mallay:2018 silver and zinc
production was slightly above the most recent guidance released.
2018 lead production was in line with the most recent guidance
released.
Base Metals Operations
- El Brocal:2018 gold, copper,
lead and zinc production was in line with the most recent guidance
released.Silver production was below the Company’s most recently
released guidance , mainly due to changes in the mining sequence
which resulted in lower silver grades. Silver grades are expected
to improve in 1Q19.
2018 Volume Sold
4Q18 Volume sold per Metal (100% basis)
4Q18 (Actual) 12M18 (Actual)
Gold (Oz.)
Orcopampa 13,405 116,719
Tambomayo
25,691 119,211
La Zanja 20,234
74,370
Tantahuatay 51,355 171,770
El
Brocal 2,482 14,297
Silver (Oz.)
Uchucchacua 2,949,234
14,443,456
Julcani 635,338 2,368,497
Mallay 97,106 458,671
Tambomayo
662,978 3,570,382
El Brocal 773,051
3,058,987
Lead (MT)
Julcani 237 915
Uchucchacua
4,553 17,071
Mallay 387 1,633
Tambomayo 709 3,268
El Brocal
5,248 18,713
Zinc (MT)
El Brocal 8,020 37,470
Uchucchacua 4,328 16,811
Mallay
931 3,369
Tambomayo 1,769 7,143
Copper (MT) El Brocal
11,523 43,710
Realized Metal Prices
4Q18 12M18
Gold 1,223 1,268
Silver 13.51 15.09
Lead 1,792
2,141
Zinc 2,338 2,686
Copper
5,801 6,277
2019 Guidance
1. EBITDA Direct Operations
The company expects an EBITDA of $310-380 million during
2019.
Regarding Buenaventura’s guidance for 2019, the Company expects
2019E EBITDA to be in line with that which was announced for 2018,
despite an anticipated decrease in production which is expected to
be offset by decreased Opex resulting from the continued success of
Buenaventura’s De-Bottlenecking Program.
*2019 prices: Au: 1,250 US$/Oz; Ag: $16.00 US$/Oz; Cu:
6,000 US$/MT; Zn: 2,500 US$/MT & Pb: 2,100 US$/MT
2. 2019 De-Bottlenecking Program*
Name Stage
Annual EBITDA TAMBOMAYO 1 Mine Design
Optimization Increase of efficiency of the ratio of mining
preparations per tone + Haulage Fleet reduction $4.0 -5.0M
2 Improvement of the Metallurgical Process
Change in the process: Cyanidation → Flotation to Flotation
→ Cyanidation of concentrate $11.0 – 12.0M 3
Cost Optimization in Support Areas Synergies between
Orcopampa and Tambomayo $1.0 – 2.0M
ORCOPAMPA
1 Mine Centralization Reduction of equipment
$2.0 – 2.5M 2 Improvement of efficiency in
exploration Reduction of exploration galleries and emphasis
in diamond drilling $2.0 – 2.5M 3 Cost
Optimization in Support Areas Synergies between Orcopampa
and Tambomayo $1.0 – 2.0M
UCHUCCHACUA 1
Optimization of the ore transport system Reduction of
equipment and haulage distances $1.0 – 1.5M 2
Improvement of efficiency in exploration Emphasis in
zones close to the exploitation areas (centralization) $3.5
– 4.5M 3 Cost Optimization in Support Areas
Optimization of services and process $1.5 – 2.5M
EL BROCAL 1 Mine Design Optimization
Stope design optimization to reduce galleries per ton mined
$5.0 – 6.0M 2 Renegotiation cost rates with
contractors Optimization of the use of the equipment fleet
$1.5 – 2.5M 3 Increase in production
due to operational improvements Second stage in the
optimization of metallurgical processes: Availability and
Performance $6.0 – 7.0M
TOTAL : $40.0 - 50.0M
*In the coming conference call, the company will present a
breakdown of the De-Bottlenecking Program by quarter.
3. Total Capex**
The company expects a total CAPEX of $80-120 million during
2019.
**In the coming conference call, the company will present a
breakdown of total capex by objectives (sustaining and
growth).
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*, Mallay*,
Julcani*, Tambomayo*, El Brocal, La Zanja and Coimolache).
The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership
with Newmont Mining Corporation), an important precious metal
producer and 19.58% of Sociedad Minera Cerro Verde, an important
Peruvian copper producer.
For a printed version of the Company’s 2017 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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190114005399/en/
Contacts in Lima:Leandro García, Chief Financial
Officer(511) 419 2540
Rodrigo Echecopar, Investor Relations Coordinator(511)
419 2591 / rodrigo.echecopar@buenaventura.pe
Company Website: www.buenaventura.com.pe/ir
Contacts in NY:Barbara Cano(646) 452
2334barbara@inspirgroup.com
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