Business Context and Reporting Period
Company: Compañía de Minas Buenaventura S.A.A. (Buenaventura Mining Company Inc.)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Third Quarter 2024 (Ended September 30, 2024) and Nine Months Ended September 30, 2024.
Announcement Date: October 16, 2024
Overview: Peru's largest publicly-traded precious metals mining company, reporting production and volume sold for gold, silver, lead, zinc, and copper across its direct operations and associated joint ventures.
Key Financial and Operational Metrics
Note: This filing focuses on production volumes and realized prices. Revenue, profit, cash flow, debt, and liquidity figures are not provided in this specific document.
Production Volumes (Three Months Ended Sept 30, 2024)
| Metal | Total Direct Operations | Total incl. Associated |
|---|---|---|
| Gold (oz) | 38,909 | 39,690 |
| Silver (oz) | 4,427,457 | 4,243,769 |
| Lead (metric tons) | 4,953 | N/A |
| Zinc (metric tons) | 7,374 | N/A |
| Copper (metric tons) | 16,769 | N/A |
Average Realized Prices (Three Months Ended Sept 30, 2024)
| Metal | Price (USD) |
|---|---|
| Gold | $2,514 / oz |
| Silver | $29.92 / oz |
| Lead | $2,082 / MT |
| Zinc | $2,883 / MT |
| Copper | $9,391 / MT |
Material Changes and Operational Highlights
- Price Realization: Average realized prices for all reported metals increased significantly compared to the full year 2023 (e.g., Gold rose from $1,954 to $2,514/oz; Silver from $23.98 to $29.92/oz).
- Coimolache: Gold production exceeded 3Q24 projections due to an accelerated percolation rate at the leach pad. Management updated 2024 guidance upward.
- El Brocal: Gold and silver production exceeded expectations due to increased processing volumes. All ore stockpiled in 2Q24 was processed in 3Q24. Mining rates averaged 12,000 tons per day in 3Q24.
- Julcani: Transitioning to richer gold and copper zones, offsetting lower production from the Achilla zone (historically lead/silver). 2024 guidance revised for higher gold and lower silver.
- Uchucchacua: Zinc production exceeded expectations due to higher grades; 2024 guidance updated. Achieved targeted 1,500 TPD average daily throughput.
- Tambomayo: Silver production was below 3Q24 projections due to delays in mine development and preparation of high-grade ore stopes.
Guidance, Outlook, and Risks
2024 Updated Production Guidance
- Gold: 139.6k - 155.0k oz (Total incl. Associated)
- Silver: 14.0M - 15.4M oz (Total incl. Associated)
- Lead: 17.4k - 20.0k MT (Direct Operations)
- Zinc: 26.3k - 29.8k MT (Direct Operations)
- Copper: 55.0k - 60.0k MT (Direct Operations)
Management Commentary and Contingencies
- Coimolache Expansion: Filed for a leach pad expansion permit; approval expected by end of 1Q25. Construction to begin 2Q25, resuming fresh ore leaching in 3Q25.
- Forward-Looking Risks: Results depend on market prices, exploration success, joint venture performance (including 19.58% stake in Cerro Verde), capital expenditure plans, and Peruvian political/economic/legal developments.
Investor Verification Checklist
- Verify the impact of the updated 2024 guidance on full-year revenue projections given the significant rise in realized metal prices.
- Confirm the timeline and regulatory status of the Coimolache leach pad expansion permit with the Ministry of Energy and Mines.
- Assess the sustainability of the increased mining rate at El Brocal (12,000 TPD) for the remainder of the year.
- Review the specific operational delays at Tambomayo affecting silver production and the timeline for resolution.
- Monitor the transition progress at Julcani to ensure gold/copper grade increases offset the decline in lead/silver from the Achilla zone.