Business Context and Reporting Period
Company: Compania de Minas Buenaventura S.A.A. (Buena Ventura Mining Co Inc)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Fourth Quarter 2024 (ended December 31, 2024) and Full Year 2024.
Announcement Date: February 11, 2025
Overview: Peru's largest publicly-traded precious metals mining company. The filing details production volumes, volumes sold, and average realized prices for gold, silver, copper, lead, and zinc across its direct operations and associated interests (including Coimolache). It also provides 2025 production guidance.
Key Financial and Operational Metrics
Note: This filing focuses on operational volumes and realized prices. It does not contain revenue, profit, cash flow, debt, or liquidity figures.
Production Volumes (Full Year 2024)
| Metal | Unit | Total Direct Operations | Total incl. Associated |
|---|---|---|---|
| Gold | Ounces | 148,683 | 158,856 |
| Silver | Ounces | 15,478,231 | 14,754,144 |
| Copper | Metric Tons | 56,525 | 56,525 |
| Lead | Metric Tons | 18,536 | 18,536 |
| Zinc | Metric Tons | 28,452 | 28,452 |
Average Realized Prices (Full Year 2024)
| Metal | Price (USD) |
|---|---|
| Gold | $2,407 / Oz |
| Silver | $28.92 / Oz |
| Copper | $9,063 / MT |
| Lead | $2,039 / MT |
| Zinc | $2,715 / MT |
Material Changes and Operational Highlights
- Tambomayo: 2024 gold production exceeded revised guidance due to increased processed ore. Silver production underperformed slightly due to poor ground conditions in high-grade stopes.
- Coimolache: 2024 gold production exceeded projections due to accelerated percolation rates and higher-than-expected grades.
- El Brocal: 2024 gold and silver production exceeded expectations due to better by-product recovery from copper concentrate. Underground mine exploitation rate reached 12,500 tpd in 4Q24, exceeding the 11,500 tpd target.
- Yumpag: 2024 silver production exceeded projections due to higher grades.
- Julcani: Silver production underperformed slightly due to a transition from silver to copper-gold stopes, while gold production exceeded guidance.
Guidance, Outlook, and Risks
2025 Production Guidance
- Gold: Total incl. Associated guidance is 122.6k – 144.4k ounces.
- Tambomayo: Expected decrease due to ~40% lower throughput and lower grades.
- Orcopampa: Expected decrease due to ~45% lower throughput, partially offset by higher grades.
- Coimolache: Expected increase due to leach pad expansion (fresh ore leaching expected to resume in 3Q25).
- El Brocal: Significant decrease expected due to depletion of Colquijirca's Tajo Norte Mine inventory and temporary suspension of activities there.
- Silver: Total incl. Associated guidance is 13.5M – 15.3M ounces.
- Tambomayo: Stable production expected despite lower volume, offset by higher grades.
- Uchucchacua: Expected increase due to ~20% higher throughput (optimizing to 2,000 tpd by year-end).
- Yumpag: Expected decrease due to lower grades, partially mitigated by full-year operation at 1,000 tpd.
- Copper: Guidance 55.0k – 60.0k MT. El Brocal production expected to remain consistent with 2024 levels.
- San Gabriel: Targeted production initiation remains in 4Q25, subject to final permitting.
Risks and Contingencies
- Permitting: San Gabriel production initiation and Coimolache leach pad expansion are subject to final permitting and approvals.
- Operational Challenges: Ground conditions at Tambomayo and depletion of ore inventory at El Brocal's Tajo Norte Mine impact production volumes.
- Market Factors: Forward-looking statements are subject to risks regarding prevailing market prices of metals and Peruvian political, economic, and legal developments.
Investor Verification Checklist
- Verify the status of permitting for the San Gabriel mine and Coimolache leach pad expansion, as these are critical for 2025 volume targets.
- Monitor the operational status of El Brocal's Tajo Norte Mine, as its suspension significantly impacts 2025 gold and silver guidance.
- Confirm the timeline for Coimolache's fresh ore leaching resumption (targeted for 3Q25) to validate the expected production increase.
- Review upcoming 20-F filings for detailed financial metrics (revenue, EBITDA, cash flow) which are not included in this 6-K operational report.
- Assess the impact of the planned throughput reduction at Tambomayo and Orcopampa on overall cost structures and margins.