NYSE:BVN Compañía de Minas Buenaventura S.A.A. Q1 2024 Earnings Report $14.55 -0.44 (-2.94%) Closing price 04/25/2025 03:59 PM EasternExtended Trading$14.56 +0.01 (+0.06%) As of 04/25/2025 05:04 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Compañía de Minas Buenaventura S.A.A. EPS ResultsActual EPS$0.24Consensus EPS $0.11Beat/MissBeat by +$0.13One Year Ago EPSN/ACompañía de Minas Buenaventura S.A.A. Revenue ResultsActual Revenue$246.80 millionExpected Revenue$171.25 millionBeat/MissBeat by +$75.55 millionYoY Revenue GrowthN/ACompañía de Minas Buenaventura S.A.A. Announcement DetailsQuarterQ1 2024Date4/29/2024TimeN/AConference Call DateTuesday, April 30, 2024Conference Call Time11:00AM ETUpcoming EarningsCompañía de Minas Buenaventura S.A.A.'s Q1 2025 earnings is scheduled for Wednesday, April 30, 2025, with a conference call scheduled on Thursday, May 1, 2025 at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Compañía de Minas Buenaventura S.A.A. Q1 2024 Earnings Call TranscriptProvided by QuartrApril 30, 2024 ShareLink copied to clipboard.There are 10 speakers on the call. Operator00:00:00Good day, ladies and gentlemen, and welcome to the Compania De Minas Buenaventura First Quarter 2024 Earnings Results Conference Call. At this time, all participants are in a listen only mode. And please note that this call is being recorded. I would now like to introduce your host for today's call, Mr. Gabriel Salas, Investor Relations Officer. Operator00:00:19Mr. Salas, you may begin. Speaker 100:00:22Good morning, everyone, and thank you for joining us today to discuss our Q1 2024 results. Today's discussion will be led by Mr. Leandro Garcia, Chief Executive Officer. Also joining our call today and available for your questions are Mr. Daniel Dominguez, Chief Financial Officer Mr. Speaker 100:00:42Juan Carlos Ortiz, Vice President of Operations Mr. Aldo Masa, Vice President of Business Development and Commercial Mr. Alejandro Hermoza, Vice President of Sustainability Mr. Renzo Maher, Vice President of Projects Mr. Roger Enagias, Chairman and Mr. Speaker 100:01:00Raul Enagias, Director. Before I hand our call over, let me first touch on a few items. On Buenaventura's website, you will find our press release that was posted yesterday after the market closed. Please note that today's remarks include forward looking statements that are based on management's current views and assumptions. While management believes that its assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on these forward looking statements. Speaker 100:01:35I encourage you to read the full disclosure concerning forward looking statements within the earnings results press release issued on April 29, 2024. Let me now turn the call to Mr. Leandro Garcia. Speaker 200:01:50Thank you, Gabriel. Good morning to all, and thank you for joining us today to discuss the quarterly results of Panemina Buenaventura. On Slide 2, it's our cautionary statement, important information that I encourage you to read. We have a couple of seconds, please. Today, we will be discussing our performance for the Q1 2024, highlighting key achievements and strategies moving forward. Speaker 200:02:22After the presentation, we will be available for our Q and A session, where our team will be happy to answer your questions. The next slide, please. I would like to highlight a few key areas that contribute to our strong Q1 'twenty four results. Our EBITDA from direct operations for the Q1 has increased 83% compared to the previous year, primarily driven by improved performance at Edrocal and Junco. This is also reflected in a higher EBITDA margin of 38% compared to 28% from the previous year. Speaker 200:03:03Q1 'twenty four operating income reached 46,900,000 dollars compared to the last year's $12,600,000 Copper production increasing 26% year over year driven by a steady production rate at El Brocal, which surpassed the 10 1,500 tons per day in the underground mine. Chile production reached 3,100,000 ounces, a significant increase compared to the 1,300,000 ounces produced last year for the same period. From this, 1,500,000 ounces come from Uchucchacua and Yumpa, where we got approval of a final mining operating permit earlier than expected. Oil production decreased 4% year over year, reaching 36,500 ounces since we are now mining lower rates at both the Pampa and Tambo mine. We are pleased to inform that the dividends from Cerro Verde were received on April 26, last Friday. Speaker 200:04:15These events will strengthen our overall financial standard. Onaventura's CapEx in Q1 2024 totaled $58,000,000 which includes $38,000,000 allocated to the San Gabriel project. Our cash position reached BRL 174,000,000 with a total debt of BRL 699,000,000. Dollars We continue deleveraging the company, reaching a net debt to EBITDA ratio of 1.78x, lowest in the 2 years in 2 years and within our target range. Moving on to our cost structure in Slide 4, please. Speaker 200:05:02Q1 'twenty four all in sustaining costs have reduced by 58% year over year. This reduction is primarily attributed to the copper production at El Brocal and silver contribution from June. However, it is important to mention that part of the June pad costs have been considered to be CapEx. Normalized all in sustaining cost should be around US3600 per ton of copper, still below than the previous year. Moving on the cost applicable to sales trend. Speaker 200:05:43As you can see, the prioritization of copper ore at Ed Brocal and the ramp up in the underground mine is translating into a continuous cost reduction trend. Silver cash has decreased year over year, primarily driven by higher contribution of Chukup Chuchakwa and Jumpak silver ounces. Normalized cash, including Junpak cost, is expected to be between $17 $18 per ounce. Gold cost has decreased year over year and even quarter over quarter, primarily driven by higher grades at North Mill and El Brocal San El Online despite lower grades at Cambomayo and Orcobao. On the next slide, we will be presenting the free cash flow generation. Speaker 200:06:35During the Q1 2024, we reduced our cash position by $46,000,000 primarily due to the intensive capital expenditures campaign, which includes San Gabriel. The EBITDA to free cash flow reconciliation is explained by the following breakdown of inflows and uplands. Herrocal, Yumpa and Orcopampa have been the main contributor for the Q1 of 2024. As we have mentioned before, The previously reported dividends from Cerro Verde will be registered in the Q2 of 2024. Moving on to Slide 6. Speaker 200:07:23In the next years, Buenaventura will be focusing most of its efforts in the San Gabriel part. On this slide, you can see the project's cumulative progress reaching a 47% overall progress by the Q1 of 2024, primarily driven by the full installation and operation of the concrete plant. The key milestone we are closely monitoring for the next quarter is the start of the mine development to Meli and the start of the SAC Neo assembly. On the next slide, we are showing the completion of the definite campsite that is fully operational since February. We have more than 2,000 sleeping beds installed considering the definite and organic campsite. Speaker 200:08:15Water treatment plant, offices and dining areas are fully operational. On the next slide, we are showing the progress in the processing plant platform. Here is the milling area where we are planning to start the Sac Mill Assembly during the next quarter. And on the next slide, you can see the installation of the ficule. Finally, I would like to finish the presentation with a couple of closing remarks. Speaker 200:08:50First, encouraging production results at JMPAC are a clear reflection of our success delivering mining projects. With final mining permits secured, we are now focusing on achieving a stable and efficient production rate at 1,000 tons per day. This will be reflected in a significant increase in revenues in the following quarter. Excellent performance at the the Volcan, in line with plan to reach 11 tonnes per day by the end of this year, supported by a positive trend in copper prices. 3rd, we are proud to announce that we have achieved a significant progress of Chang Audio project, now standing at an impressive 47% overall completion, on track as we aim of our first gold bar by the second half of twenty twenty five. Speaker 200:09:44Currently, we are assessing the project CapEx to ensure an accurate total cost while identifying opportunities to optimize the construction. We continue our efforts to transform our mining operation into assets with plus 10 years of life of mine and focus on optimizing them to achieve greater cost efficiency. Thank you for your attention, and I will hand the call back to the operator to open the line for questions. Operator, please go ahead. Operator00:10:18Thank you. We will now begin the question and answer session. And the first question will come from Cesar Perez Novella with BTG Pactual. Please go ahead. Speaker 300:11:00Thank you. Good morning, everyone. If I may, I have three questions. The first one relates to your guidance. Essentially, we have seen a meteoric rise in basin precious metals. Speaker 300:11:15And given the implications that it has for revenues and byproduct credits, is management looking to review the volumes of revenue and EBITDA that you outlined in the previous call for this year? My second question relates to costs. There was an important 71% drop in gas, in gold gas at Corning Molache to $1,000 Is this due to higher volume or specific initiatives? I believe you mentioned in the press release that the company could not place fresh ore on the pads, which makes me think that there may be some room for improvement. And finally, Atel Brocal costs went down too and wanted to understand this was due to efficiencies attained in the Q1 or if the company used stockpile mined inventories to dilute the cost. Speaker 300:12:13Those would be my questions, gentlemen. Thank you. Speaker 200:12:18Thank you, Cesar, for your question. In terms of if we can change the guidance, we are evaluating all the operation daily. We maybe can change the guidance at the end of the second quarter if things are as we are thinking that will be. In terms of Colle Molache, remember that last year, we didn't produce any nonsense in Comolades. So this is the comparison this quarter to the last quarter to the Q1 of last year. Speaker 200:13:08The information you have with respect of the we are not allowed to put more ore in production. It's true, we are just waiting the permit to construct, to build the new platform to put more ore. And we expect any moment that permit, but the production will begin in the Q1 of the production of ore will begin in the next quarter of the following year. So we should expect increase the production of gold ounces in the Q2 of 2025. And in Brocal, actually, we are making many airports to be more efficient. Speaker 200:14:14I pass the microphone to Carlos. Maybe he can give more color of your question. Speaker 400:14:24Thank you, Leandro. I think this is all for the question. Yes, with this increase in price of Cordova, it's a lot of incentives to increase the production. We are reviewing our mining plans. But at this moment, we are looking more to be in the upper range of our guidance, again, annual guidance. Speaker 400:14:46So probably we want to be more closer to the upper range in that guidance. Any further review, Leandro comment will be probably announced if there is any for the next conference call. In the case of Olmulache, last year, at the end of last year in December, we have a window of opportunity because there was no rain in the area. So we placed almost 200,000 tons of ore in the pad in the last few days of 2023. So we have an advanced work done in 2023 and that's the reason we have the ounces of gold in 2024, but part of the cost was done, was incurred during the last quarter of 2023. Speaker 400:15:36So that's the reason we have a good look in the cost in the cap cost of Combolache. But as Leandro mentioned, we stopped the production of fresh coal in February this year. We will be waiting for the permits and the construction of the new areas in the past, probably the permit by the end of the year and construction at the same time. The operation of new of the breaking of fresh ore will be in the Q1 of next year and probably the ounces of gold start coming down from the past in the Q2 of 2025. So probably in the coming quarters, the cost of Comolache, the gas cost of Comolache will be coming slightly up because we are not putting more fresh ore and production of gold will start to decrease in the coming quarters and in the next year that we will resume replacing our fresh ore. Speaker 400:16:35And regarding Brocal, yes, there was a lot of improvements in the operation. We are close to 10.5 kilotons per day in production. We are looking forward to reach 11,000 tons per day by the end of the year. We are well tracked on that purpose and we are reducing costs. We have been doing this increasing production without any additional people or any additional scoop frame or retract. Speaker 400:17:05It's just a matter of improvement. We put underground dispatch system that we helped him a lot to increase the productivity of our equipment, and we are reaping off the result of that investment in the previous quarter. So just more on the improvement and operational expertise that we are reaping off the benefits and getting this low cost in the program. Speaker 500:17:33All right, guys. Speaker 300:17:34Thank you very much for your detailed information. Yes. Speaker 200:17:40Daniel, I think, has a couple of additional comments to you, Cesar. Speaker 500:17:45Good morning, Cesar. Just to put some numbers to your question regarding the EBITDA. At the beginning of the year, we considered the metal prices of $8,500 for copper, dollars 19,000 for gold and $23 for silver. And our EBITDA was an estimated EBITDA of between $1,000,000 $270,000,000 Today, we have higher prices and considering $9,000 for copper, $21,100 for gold and $25 for silver, in addition to the production from Yumpak that is coming along since March, we are estimating a consolidated EBITDA of between $300,000,000 $320,000,000 That will be the improvement of the additional EBITDA that we expect. Speaker 300:18:51Okay. Thank you very much, Daniel. So it's a large $50,000,000 swing at the EBITDA level. Very clear. Thank you all gentlemen for your detailed questions. Speaker 300:19:02Thank you. Operator00:19:04The next question will come from Carlos De Alba with Morgan Stanley. Please go ahead. Speaker 300:19:10Thank you very much and Speaker 600:19:11good morning everyone. A couple of questions. First one, can you please quantify what the impact was of not having not taking the cost of Yumpak through the P and L and since they were capitalized according to the exploration permit, As you definitely that was a positive surprise, but I just wanted to understand how much of EBITDA impact that represented the fact that it was not run through cost but taken to CapEx? And second, any comments on Cerro Verde? We saw Cerro Verde paid 29.4 $1,000,000 for the 2nd quarter dividends that is down from the 41 level or so that the company had paid in the last can you provide any color? Speaker 600:20:12Is there expectation that this is the new range that we will see in the coming quarters? Or do you think that there is upside to increase, but not what you think but more like what Freeport has said they will do? Speaker 300:20:29Thank you. Speaker 200:20:30Thank you, Carlos. Thank you for your question. Well, the impact of the cost assigned to the CapEx instead of the operating cost Well, it's kind of difficult to calculate, but we expect that the cost of Yumpak will be around $16 per ounce between 16 and 17 ounces per ounce. From beginning the Q2, we will have the exact calculation revealed in financial statements. In the case of Cerro Verde, the dividends, actually, we were not expecting any dividends in this quarter coming from the profits from the NIVEA bid for us was a surprise, but still we maintain the expectation to have in the total of the year total dividends between 120 $150,000,000 We believe that with this level of prices, that figure can be completed fulfilled at the end of the year. Speaker 200:21:57I don't know, maybe Juan Carlos or Daniel want to add some comment? Speaker 400:22:06Yes. Regarding the JUPAC, we have a total CapEx total in Europe $8,000,000 in the 1st quarter that was not only part of the operational, but it's the whole package of construction plus a breaking the oil and transportation of the oil into the Uchucchacua facility. So as Leandro mentioned, it's kind of a bulk number, but probably more linked to the production not only from the quarter, but for at least the whole year. So it's a number that need to be taken with cash because it didn't match exactly the amount of houses of silver that we produce in the quarter. It's a combination of properly CapEx and part of the effort dedicated to breaking the ore and transporting the ore from Yupak into the Uchuchagua processing facility. Speaker 400:23:00Maybe Daniel has some color on the Speaker 500:23:07I would like to comment about Cerro Verde's question. At this level of prices, Cerro Verde should be generating an EBITDA of around $1,800,000,000 The working capital that we expect is around $700,000,000 to $800,000,000 with very small CapEx around $300,000,000 to $350,000,000 which gives us free cash flow of around $750,000,000 These are at level of prices of close to $9,000 Happened there, the minimum cash already in their balance, they should be distributing dividends in the order of $750,000,000 which gives us the $150,000,000 that Leandro mentioned at the beginning. Speaker 600:23:59Great. That would be great news. Just to follow-up on that Daniel, has this been approved by Cerro Verde's Board or it's just an expectation at this stage? Speaker 500:24:10No, these are numbers sorry. Speaker 600:24:15No, go on, sorry. Speaker 500:24:17These are numbers that were shared by Cerro Verde. Of course, at lower price of copper. We have adjusted them internally. But there is no as you know, there is no dividend policy, but what they normally do is to pay dividends of the in excess of the cash that they have in excess of the minimum cash that they have, which is $500,000,000 Speaker 300:24:48Thank you. Thank you very much. Operator00:24:56Our next question will come from Tanya Jakusconek with Scotiabank. Please go ahead. Speaker 700:25:03Good morning, everyone. Thank you so much for taking my questions. Daniel, I just have some very simple modeling questions for you and then I have some other questions on the assets. So can I just start on the simple modeling questions? Can I just your DD and A was kind of low at $42,000,000 in Q1 as was your G and A at $10,000,000 and as was the CapEx at $58,000,000 Can you review with me what you are expecting for those three numbers for the year? Speaker 500:25:40This is Tania. For the D and A, as you know, we in the last two quarters of last year, we had we recognized the first stripping that we had in the assets for El Brocal reserves. So in the Q1, it was a minimum of $5,500,000 that we recognized of related to this to the deferred stripping. In the 3rd and the 4th quarter, this amortization was over $23,000,000 $23,000,000 So what we expect for the following quarters is something about $35,000,000 from depreciation and amortization. Speaker 700:26:37So $35,000,000 a quarter for the next 3? Speaker 500:26:41Yes, per quarter for D and A. Speaker 700:26:44Okay. And then G and A? Speaker 500:26:49D and A, as you know, we have sold Contacto, and there is a decrease in the G and A from that. We are not considering anymore the Contacto figures. And we have been doing also other adjustments to our expenses. For example, we have reduced the size of our location, our headquarter. So we expect per quarter around 12 $1,000,000 Speaker 300:27:20of G and A. Speaker 700:27:23Okay, perfect. And then the CapEx, which I think was originally guided around $300,000,000 for the year, it looks like you would have only done $58,000,000 in Q1. So is that $300,000,000 still viable? Speaker 500:27:39Yes. San Gabriel should be catching up the rate of expenditures. So we still believe that the total CapEx for this year should be between $300,000,000 $320,000,000 Speaker 700:27:55Okay. All right. That's perfect. Thank you. Those are the easy ones. Speaker 700:28:00Maybe still to you, Daniel, because this does impact the balance sheet. Can you just give me an update? I know on Q4 call I asked about the sale of the Yanacocha royalty. I thought we mentioned it would be done in April. Can we just talk about the balance sheet? Speaker 700:28:17Yes, we are going to get monies coming from the Sierra Verde dividend, which is great. But can you talk to me about what else are you seeing in terms of sources of cash besides your operating cash flow that's coming from your mine, but other sources of cash from sales and or banks and lending? Speaker 500:28:43Yes. Apart from our operating or our EBITDA generated by our operations, we do expect the sale of one asset. We should be receiving this year between $180,000,000 $200,000,000 from that sale. Then we expect the Cerro Verde dividends, which could be between €120,000,000 €150,000,000 And in addition to that, we have already compromised 3 RCFs, revolving facilities, with 3 local banks. And these are these three facilities had up to $200,000,000 Currently, they are undrawn, but probably we will use them between the 3rd and 4th quarter in order to fund any requirements for San Gabriel. Speaker 700:29:37Okay. And the one asset sale, is that an asset or a royalty? Like there's a difference, one's an asset and one's a royalty? Speaker 500:29:46It's a royalty. Speaker 700:29:48It's a royalty. Okay, that's helpful. Thank you. And then if I could ask one more question, I am very interested in San Gabriel and what is happening there. And I see from the slides that you are you've done quite a bit. Speaker 700:30:04You've got the bag that you've got to assemble. You've got the underground tunneling, the development of the underground ramp, and I guess it's ramp and additional declines and levels. Can someone just walk me through the second half of this year into 2025 again, what needs to be done? And then Daniel for you, the last capital I remember on this mine was $450,000,000 to $470,000,000 Can you let me know how much we have spent to date and when we are getting this new CapEx number? Thank you. Speaker 200:30:44Of course, Tanja. Here with us is Renzo Majer. He can explain to you all your questions in some area. Speaker 700:30:53Thank you. Speaker 800:30:53Hi, Tanya. Hi, Tanya. So what's coming in as you can see the pictures, there's great progress in air moving, it's out of the way of the critical path. And we have started with all the concrete placement. And we have the mechanical steel and piping contractor on-site. Speaker 800:31:18So you're going to see a lot of advance in that area. The underground contractor for development the mine, it's already on-site. So we're going to see the first in the next quarter, we're going to see the first mine development advancing. And the electrical and signal contractor, we shall be closing that contract towards end of May, beginning of end of May, beginning of June. You're going to see all those 3 main contractors, which is pretty much all of them, the remaining big contracts fully on board producing. Speaker 800:31:55That's the idea. Again, we have this 98% of engineering and procurement. So it's about managing this advantage in favor of the product. Speaker 700:32:09Okay. So these three contracts are going to be placed, it looks like, in Q2. So the concrete, steel, the underground development and the electrical, right, these 3 are going to be placed in or awarded in Q2. Then you're going to have all of that work obviously done Q2 onwards. And then when do we actually expect the mill to start to turn wet commissioning, dry commissioning, when are we expecting that? Speaker 800:32:44So we already have from those three contracts you mentioned, the concrete, mechanical, pipe and steel, it's already signed and it's running now. Underground is signed and it will be producing now. Electrical and signal is the one that we need to we're at the final stage of the bidding process. So it should be finished on May and awarded on May. Now in the pictures, you can see that we are constructing the mill already, foundations, the first foundation has been put. Speaker 800:33:19Towards the we're going to be finishing construction towards the early Q2 of next year, and that's kind of when the commissioning is going to start. Speaker 700:33:32Okay. And how long do you think commissioning will take? Is it like 60% of capacity for 30 days in terms of getting to commercial production. Speaker 800:33:46I think we're so we're early 4th quarter, we should Speaker 900:33:51be in. Speaker 700:33:52Okay. So Q4, so it's going to take you 2 quarters to go to commercial? Speaker 800:33:57Yes. I mean, we're very advancing we're going to be very advancing construction, so we can start commissioning earlier for sure. Speaker 700:34:05Okay. Okay. So that's commercial. Yes, I should start thinking commercial in Q4. That's when we start taking this through the income through revenue. Speaker 700:34:22Like $450,000,000 to $470,000,000 was the last number I have. Maybe you can give me a little bit of an idea when a new one is coming and where are you seeing changes in this CapEx number positive and negative? Speaker 500:34:37It's Tanya. We are still evaluating the total CapEx. We will have a better figure for the next quarter conference call, but we expect from the initial CapEx of $470,000,000 we expect around 10% to 15 percent increase. And currently, we have been we have already disbursed since 2022 until the end of last quarter, dollars 220,000,000 for San Gabriel. Speaker 700:35:11Okay. That's great. And then I guess in Q2, someone can give me an idea about when you're doing your development, how the development is coming in terms of costing for the underground as well. Thank you so much for helping me. Speaker 200:35:29Tania, if I may pass the microphone to Aldo, he wants to make a little more give you a little more color about the sale of the choppy loan environment. Speaker 900:35:41Yes. Hi, Tanya. Sorry. I want to clarify a little bit the time for the sale of the royalty of Yanacocha. We have time until July 15. Speaker 900:35:55If we don't reach the price, the target price, we can go to the 2nd phase and ask for a lower price first to Newmont and then to the interested in that Royal. But the idea is to try to finish that sale during this year. But in the first phase, we have time until July 15. Speaker 700:36:17Okay. So if I understand correctly, you have until July 15 in this first phase. If you do not get the price you want, then you go to a second phase. And how does this second phase differ from the first phase? Is it just different? Speaker 700:36:32Only a lower price. Speaker 900:36:33Only a lower price. Speaker 700:36:34Only a lower price. Okay. So what about then can you go back to Newmont because Newmont, I think, has a right of first refusal on it? Speaker 900:36:44It's a right of first offer. A little bit different, but we have to ask for a price on Newmont. If they don't accept to buy at that price, we also can go to the market again. This is our idea. Speaker 700:36:57Okay. Got it. Okay. All right. So, if that if we don't get anything by July 15, then we're going to Phase 2? Speaker 400:37:05Yes, it's fast. Speaker 700:37:06Okay, great. Thank you for the clarification. I really appreciate it. Speaker 600:37:11Thank you. Operator00:37:13Ladies and gentlemen, with that, we will be concluding today's audio question and answer session. I would like to turn the floor back over to Gabriel Salas, Investor Relations Officer for any webcast questions. Please go ahead. Speaker 100:37:27Thank you, operator. The first question comes from Orlando Arriga from Credicorp Capital. Can you please comment on commercial deductions? They decreased in a per ton of unit sold basis, so I would appreciate some color on that. Speaker 400:37:44[SPEAKER CANDIDO BOTELHO BRACHER:] Yes, Speaker 900:37:48Gabriel. Yes, thank you for the question. It happened 2 things in the market. The first one is that the commercial direction has gone lower a lot. We have better commercial terms for this year. Speaker 900:38:04That's why one of the reasons why the commercial terms is going down. And the second one was that we sold 13 dry metric tons of concentrate during the 1st Q with no warrants in Brokani. And that gives us, of course, better terms and lower deductions. That was the 2 main reasons why the direction was so low in this quarter. Speaker 100:38:34Thank you, Alou. At this time, there are no further questions. I would like to turn the call over to the operator. Operator00:38:45Thank you. That concludes the question and answer session for today. I would like to turn it back over to management for any closing remarks. Speaker 200:38:54Thank you, operator. And before we finish today's conference call, thank you. I want to thank you very much for making the time to join us and the interest in our company. Thank you again and have a wonderful day. Operator00:39:13Ladies and gentlemen, that concludes today's conference call. We would like to thank you again for your participation. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallCompañía de Minas Buenaventura S.A.A. Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K) Compañía de Minas Buenaventura S.A.A. Earnings HeadlinesMinas Buenaventura Cordially Invites You to Its First Quarter 2025 Earnings Conference CallApril 23, 2025 | juniorminingnetwork.comBuenaventura Schedules Q1 2025 Earnings Call for May 1April 22, 2025 | tipranks.comTrump to unlock 15-figure fortune for America (May 3rd) ?We were shown this map by former Presidential Advisor, Jim Rickards, one of the most politically connected men in America. Rickards has spent his fifty-year career in the innermost circles of the U.S. government and banking. And he believes Trump could soon release this frozen asset to the public. April 28, 2025 | Paradigm Press (Ad)Minas Buenaventura Announces First Quarter 2025 Results for Production and Volume Sold per MetalApril 17, 2025 | juniorminingnetwork.comBuenaventura Announces First Quarter 2025 Results for Production and Volume Sold per MetalApril 16, 2025 | gurufocus.comBuenaventura Announces First Quarter 2025 Results for Production and Volume Sold per MetalApril 16, 2025 | businesswire.comSee More Compañía de Minas Buenaventura S.A.A. Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Compañía de Minas Buenaventura S.A.A.? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Compañía de Minas Buenaventura S.A.A. and other key companies, straight to your email. Email Address About Compañía de Minas Buenaventura S.A.A.Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) engages in the exploration, development, construction, and operation of mineral processing business. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company owns interests in Colquijirca, La Zanja, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces monohydrate manganese sulphate; and operates hydroelectric power plants. Compañía de Minas Buenaventura S.A.A. was incorporated in 1953 and is based in Lima, Peru.View Compañía de Minas Buenaventura S.A.A. ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Markets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Texas Instruments: Earnings Beat, Upbeat Guidance Fuel RecoveryMarket Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of Earnings Upcoming Earnings AstraZeneca (4/29/2025)Booking (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Regeneron Pharmaceuticals (4/29/2025)Starbucks (4/29/2025)American Tower (4/29/2025)América Móvil (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 10 speakers on the call. Operator00:00:00Good day, ladies and gentlemen, and welcome to the Compania De Minas Buenaventura First Quarter 2024 Earnings Results Conference Call. At this time, all participants are in a listen only mode. And please note that this call is being recorded. I would now like to introduce your host for today's call, Mr. Gabriel Salas, Investor Relations Officer. Operator00:00:19Mr. Salas, you may begin. Speaker 100:00:22Good morning, everyone, and thank you for joining us today to discuss our Q1 2024 results. Today's discussion will be led by Mr. Leandro Garcia, Chief Executive Officer. Also joining our call today and available for your questions are Mr. Daniel Dominguez, Chief Financial Officer Mr. Speaker 100:00:42Juan Carlos Ortiz, Vice President of Operations Mr. Aldo Masa, Vice President of Business Development and Commercial Mr. Alejandro Hermoza, Vice President of Sustainability Mr. Renzo Maher, Vice President of Projects Mr. Roger Enagias, Chairman and Mr. Speaker 100:01:00Raul Enagias, Director. Before I hand our call over, let me first touch on a few items. On Buenaventura's website, you will find our press release that was posted yesterday after the market closed. Please note that today's remarks include forward looking statements that are based on management's current views and assumptions. While management believes that its assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on these forward looking statements. Speaker 100:01:35I encourage you to read the full disclosure concerning forward looking statements within the earnings results press release issued on April 29, 2024. Let me now turn the call to Mr. Leandro Garcia. Speaker 200:01:50Thank you, Gabriel. Good morning to all, and thank you for joining us today to discuss the quarterly results of Panemina Buenaventura. On Slide 2, it's our cautionary statement, important information that I encourage you to read. We have a couple of seconds, please. Today, we will be discussing our performance for the Q1 2024, highlighting key achievements and strategies moving forward. Speaker 200:02:22After the presentation, we will be available for our Q and A session, where our team will be happy to answer your questions. The next slide, please. I would like to highlight a few key areas that contribute to our strong Q1 'twenty four results. Our EBITDA from direct operations for the Q1 has increased 83% compared to the previous year, primarily driven by improved performance at Edrocal and Junco. This is also reflected in a higher EBITDA margin of 38% compared to 28% from the previous year. Speaker 200:03:03Q1 'twenty four operating income reached 46,900,000 dollars compared to the last year's $12,600,000 Copper production increasing 26% year over year driven by a steady production rate at El Brocal, which surpassed the 10 1,500 tons per day in the underground mine. Chile production reached 3,100,000 ounces, a significant increase compared to the 1,300,000 ounces produced last year for the same period. From this, 1,500,000 ounces come from Uchucchacua and Yumpa, where we got approval of a final mining operating permit earlier than expected. Oil production decreased 4% year over year, reaching 36,500 ounces since we are now mining lower rates at both the Pampa and Tambo mine. We are pleased to inform that the dividends from Cerro Verde were received on April 26, last Friday. Speaker 200:04:15These events will strengthen our overall financial standard. Onaventura's CapEx in Q1 2024 totaled $58,000,000 which includes $38,000,000 allocated to the San Gabriel project. Our cash position reached BRL 174,000,000 with a total debt of BRL 699,000,000. Dollars We continue deleveraging the company, reaching a net debt to EBITDA ratio of 1.78x, lowest in the 2 years in 2 years and within our target range. Moving on to our cost structure in Slide 4, please. Speaker 200:05:02Q1 'twenty four all in sustaining costs have reduced by 58% year over year. This reduction is primarily attributed to the copper production at El Brocal and silver contribution from June. However, it is important to mention that part of the June pad costs have been considered to be CapEx. Normalized all in sustaining cost should be around US3600 per ton of copper, still below than the previous year. Moving on the cost applicable to sales trend. Speaker 200:05:43As you can see, the prioritization of copper ore at Ed Brocal and the ramp up in the underground mine is translating into a continuous cost reduction trend. Silver cash has decreased year over year, primarily driven by higher contribution of Chukup Chuchakwa and Jumpak silver ounces. Normalized cash, including Junpak cost, is expected to be between $17 $18 per ounce. Gold cost has decreased year over year and even quarter over quarter, primarily driven by higher grades at North Mill and El Brocal San El Online despite lower grades at Cambomayo and Orcobao. On the next slide, we will be presenting the free cash flow generation. Speaker 200:06:35During the Q1 2024, we reduced our cash position by $46,000,000 primarily due to the intensive capital expenditures campaign, which includes San Gabriel. The EBITDA to free cash flow reconciliation is explained by the following breakdown of inflows and uplands. Herrocal, Yumpa and Orcopampa have been the main contributor for the Q1 of 2024. As we have mentioned before, The previously reported dividends from Cerro Verde will be registered in the Q2 of 2024. Moving on to Slide 6. Speaker 200:07:23In the next years, Buenaventura will be focusing most of its efforts in the San Gabriel part. On this slide, you can see the project's cumulative progress reaching a 47% overall progress by the Q1 of 2024, primarily driven by the full installation and operation of the concrete plant. The key milestone we are closely monitoring for the next quarter is the start of the mine development to Meli and the start of the SAC Neo assembly. On the next slide, we are showing the completion of the definite campsite that is fully operational since February. We have more than 2,000 sleeping beds installed considering the definite and organic campsite. Speaker 200:08:15Water treatment plant, offices and dining areas are fully operational. On the next slide, we are showing the progress in the processing plant platform. Here is the milling area where we are planning to start the Sac Mill Assembly during the next quarter. And on the next slide, you can see the installation of the ficule. Finally, I would like to finish the presentation with a couple of closing remarks. Speaker 200:08:50First, encouraging production results at JMPAC are a clear reflection of our success delivering mining projects. With final mining permits secured, we are now focusing on achieving a stable and efficient production rate at 1,000 tons per day. This will be reflected in a significant increase in revenues in the following quarter. Excellent performance at the the Volcan, in line with plan to reach 11 tonnes per day by the end of this year, supported by a positive trend in copper prices. 3rd, we are proud to announce that we have achieved a significant progress of Chang Audio project, now standing at an impressive 47% overall completion, on track as we aim of our first gold bar by the second half of twenty twenty five. Speaker 200:09:44Currently, we are assessing the project CapEx to ensure an accurate total cost while identifying opportunities to optimize the construction. We continue our efforts to transform our mining operation into assets with plus 10 years of life of mine and focus on optimizing them to achieve greater cost efficiency. Thank you for your attention, and I will hand the call back to the operator to open the line for questions. Operator, please go ahead. Operator00:10:18Thank you. We will now begin the question and answer session. And the first question will come from Cesar Perez Novella with BTG Pactual. Please go ahead. Speaker 300:11:00Thank you. Good morning, everyone. If I may, I have three questions. The first one relates to your guidance. Essentially, we have seen a meteoric rise in basin precious metals. Speaker 300:11:15And given the implications that it has for revenues and byproduct credits, is management looking to review the volumes of revenue and EBITDA that you outlined in the previous call for this year? My second question relates to costs. There was an important 71% drop in gas, in gold gas at Corning Molache to $1,000 Is this due to higher volume or specific initiatives? I believe you mentioned in the press release that the company could not place fresh ore on the pads, which makes me think that there may be some room for improvement. And finally, Atel Brocal costs went down too and wanted to understand this was due to efficiencies attained in the Q1 or if the company used stockpile mined inventories to dilute the cost. Speaker 300:12:13Those would be my questions, gentlemen. Thank you. Speaker 200:12:18Thank you, Cesar, for your question. In terms of if we can change the guidance, we are evaluating all the operation daily. We maybe can change the guidance at the end of the second quarter if things are as we are thinking that will be. In terms of Colle Molache, remember that last year, we didn't produce any nonsense in Comolades. So this is the comparison this quarter to the last quarter to the Q1 of last year. Speaker 200:13:08The information you have with respect of the we are not allowed to put more ore in production. It's true, we are just waiting the permit to construct, to build the new platform to put more ore. And we expect any moment that permit, but the production will begin in the Q1 of the production of ore will begin in the next quarter of the following year. So we should expect increase the production of gold ounces in the Q2 of 2025. And in Brocal, actually, we are making many airports to be more efficient. Speaker 200:14:14I pass the microphone to Carlos. Maybe he can give more color of your question. Speaker 400:14:24Thank you, Leandro. I think this is all for the question. Yes, with this increase in price of Cordova, it's a lot of incentives to increase the production. We are reviewing our mining plans. But at this moment, we are looking more to be in the upper range of our guidance, again, annual guidance. Speaker 400:14:46So probably we want to be more closer to the upper range in that guidance. Any further review, Leandro comment will be probably announced if there is any for the next conference call. In the case of Olmulache, last year, at the end of last year in December, we have a window of opportunity because there was no rain in the area. So we placed almost 200,000 tons of ore in the pad in the last few days of 2023. So we have an advanced work done in 2023 and that's the reason we have the ounces of gold in 2024, but part of the cost was done, was incurred during the last quarter of 2023. Speaker 400:15:36So that's the reason we have a good look in the cost in the cap cost of Combolache. But as Leandro mentioned, we stopped the production of fresh coal in February this year. We will be waiting for the permits and the construction of the new areas in the past, probably the permit by the end of the year and construction at the same time. The operation of new of the breaking of fresh ore will be in the Q1 of next year and probably the ounces of gold start coming down from the past in the Q2 of 2025. So probably in the coming quarters, the cost of Comolache, the gas cost of Comolache will be coming slightly up because we are not putting more fresh ore and production of gold will start to decrease in the coming quarters and in the next year that we will resume replacing our fresh ore. Speaker 400:16:35And regarding Brocal, yes, there was a lot of improvements in the operation. We are close to 10.5 kilotons per day in production. We are looking forward to reach 11,000 tons per day by the end of the year. We are well tracked on that purpose and we are reducing costs. We have been doing this increasing production without any additional people or any additional scoop frame or retract. Speaker 400:17:05It's just a matter of improvement. We put underground dispatch system that we helped him a lot to increase the productivity of our equipment, and we are reaping off the result of that investment in the previous quarter. So just more on the improvement and operational expertise that we are reaping off the benefits and getting this low cost in the program. Speaker 500:17:33All right, guys. Speaker 300:17:34Thank you very much for your detailed information. Yes. Speaker 200:17:40Daniel, I think, has a couple of additional comments to you, Cesar. Speaker 500:17:45Good morning, Cesar. Just to put some numbers to your question regarding the EBITDA. At the beginning of the year, we considered the metal prices of $8,500 for copper, dollars 19,000 for gold and $23 for silver. And our EBITDA was an estimated EBITDA of between $1,000,000 $270,000,000 Today, we have higher prices and considering $9,000 for copper, $21,100 for gold and $25 for silver, in addition to the production from Yumpak that is coming along since March, we are estimating a consolidated EBITDA of between $300,000,000 $320,000,000 That will be the improvement of the additional EBITDA that we expect. Speaker 300:18:51Okay. Thank you very much, Daniel. So it's a large $50,000,000 swing at the EBITDA level. Very clear. Thank you all gentlemen for your detailed questions. Speaker 300:19:02Thank you. Operator00:19:04The next question will come from Carlos De Alba with Morgan Stanley. Please go ahead. Speaker 300:19:10Thank you very much and Speaker 600:19:11good morning everyone. A couple of questions. First one, can you please quantify what the impact was of not having not taking the cost of Yumpak through the P and L and since they were capitalized according to the exploration permit, As you definitely that was a positive surprise, but I just wanted to understand how much of EBITDA impact that represented the fact that it was not run through cost but taken to CapEx? And second, any comments on Cerro Verde? We saw Cerro Verde paid 29.4 $1,000,000 for the 2nd quarter dividends that is down from the 41 level or so that the company had paid in the last can you provide any color? Speaker 600:20:12Is there expectation that this is the new range that we will see in the coming quarters? Or do you think that there is upside to increase, but not what you think but more like what Freeport has said they will do? Speaker 300:20:29Thank you. Speaker 200:20:30Thank you, Carlos. Thank you for your question. Well, the impact of the cost assigned to the CapEx instead of the operating cost Well, it's kind of difficult to calculate, but we expect that the cost of Yumpak will be around $16 per ounce between 16 and 17 ounces per ounce. From beginning the Q2, we will have the exact calculation revealed in financial statements. In the case of Cerro Verde, the dividends, actually, we were not expecting any dividends in this quarter coming from the profits from the NIVEA bid for us was a surprise, but still we maintain the expectation to have in the total of the year total dividends between 120 $150,000,000 We believe that with this level of prices, that figure can be completed fulfilled at the end of the year. Speaker 200:21:57I don't know, maybe Juan Carlos or Daniel want to add some comment? Speaker 400:22:06Yes. Regarding the JUPAC, we have a total CapEx total in Europe $8,000,000 in the 1st quarter that was not only part of the operational, but it's the whole package of construction plus a breaking the oil and transportation of the oil into the Uchucchacua facility. So as Leandro mentioned, it's kind of a bulk number, but probably more linked to the production not only from the quarter, but for at least the whole year. So it's a number that need to be taken with cash because it didn't match exactly the amount of houses of silver that we produce in the quarter. It's a combination of properly CapEx and part of the effort dedicated to breaking the ore and transporting the ore from Yupak into the Uchuchagua processing facility. Speaker 400:23:00Maybe Daniel has some color on the Speaker 500:23:07I would like to comment about Cerro Verde's question. At this level of prices, Cerro Verde should be generating an EBITDA of around $1,800,000,000 The working capital that we expect is around $700,000,000 to $800,000,000 with very small CapEx around $300,000,000 to $350,000,000 which gives us free cash flow of around $750,000,000 These are at level of prices of close to $9,000 Happened there, the minimum cash already in their balance, they should be distributing dividends in the order of $750,000,000 which gives us the $150,000,000 that Leandro mentioned at the beginning. Speaker 600:23:59Great. That would be great news. Just to follow-up on that Daniel, has this been approved by Cerro Verde's Board or it's just an expectation at this stage? Speaker 500:24:10No, these are numbers sorry. Speaker 600:24:15No, go on, sorry. Speaker 500:24:17These are numbers that were shared by Cerro Verde. Of course, at lower price of copper. We have adjusted them internally. But there is no as you know, there is no dividend policy, but what they normally do is to pay dividends of the in excess of the cash that they have in excess of the minimum cash that they have, which is $500,000,000 Speaker 300:24:48Thank you. Thank you very much. Operator00:24:56Our next question will come from Tanya Jakusconek with Scotiabank. Please go ahead. Speaker 700:25:03Good morning, everyone. Thank you so much for taking my questions. Daniel, I just have some very simple modeling questions for you and then I have some other questions on the assets. So can I just start on the simple modeling questions? Can I just your DD and A was kind of low at $42,000,000 in Q1 as was your G and A at $10,000,000 and as was the CapEx at $58,000,000 Can you review with me what you are expecting for those three numbers for the year? Speaker 500:25:40This is Tania. For the D and A, as you know, we in the last two quarters of last year, we had we recognized the first stripping that we had in the assets for El Brocal reserves. So in the Q1, it was a minimum of $5,500,000 that we recognized of related to this to the deferred stripping. In the 3rd and the 4th quarter, this amortization was over $23,000,000 $23,000,000 So what we expect for the following quarters is something about $35,000,000 from depreciation and amortization. Speaker 700:26:37So $35,000,000 a quarter for the next 3? Speaker 500:26:41Yes, per quarter for D and A. Speaker 700:26:44Okay. And then G and A? Speaker 500:26:49D and A, as you know, we have sold Contacto, and there is a decrease in the G and A from that. We are not considering anymore the Contacto figures. And we have been doing also other adjustments to our expenses. For example, we have reduced the size of our location, our headquarter. So we expect per quarter around 12 $1,000,000 Speaker 300:27:20of G and A. Speaker 700:27:23Okay, perfect. And then the CapEx, which I think was originally guided around $300,000,000 for the year, it looks like you would have only done $58,000,000 in Q1. So is that $300,000,000 still viable? Speaker 500:27:39Yes. San Gabriel should be catching up the rate of expenditures. So we still believe that the total CapEx for this year should be between $300,000,000 $320,000,000 Speaker 700:27:55Okay. All right. That's perfect. Thank you. Those are the easy ones. Speaker 700:28:00Maybe still to you, Daniel, because this does impact the balance sheet. Can you just give me an update? I know on Q4 call I asked about the sale of the Yanacocha royalty. I thought we mentioned it would be done in April. Can we just talk about the balance sheet? Speaker 700:28:17Yes, we are going to get monies coming from the Sierra Verde dividend, which is great. But can you talk to me about what else are you seeing in terms of sources of cash besides your operating cash flow that's coming from your mine, but other sources of cash from sales and or banks and lending? Speaker 500:28:43Yes. Apart from our operating or our EBITDA generated by our operations, we do expect the sale of one asset. We should be receiving this year between $180,000,000 $200,000,000 from that sale. Then we expect the Cerro Verde dividends, which could be between €120,000,000 €150,000,000 And in addition to that, we have already compromised 3 RCFs, revolving facilities, with 3 local banks. And these are these three facilities had up to $200,000,000 Currently, they are undrawn, but probably we will use them between the 3rd and 4th quarter in order to fund any requirements for San Gabriel. Speaker 700:29:37Okay. And the one asset sale, is that an asset or a royalty? Like there's a difference, one's an asset and one's a royalty? Speaker 500:29:46It's a royalty. Speaker 700:29:48It's a royalty. Okay, that's helpful. Thank you. And then if I could ask one more question, I am very interested in San Gabriel and what is happening there. And I see from the slides that you are you've done quite a bit. Speaker 700:30:04You've got the bag that you've got to assemble. You've got the underground tunneling, the development of the underground ramp, and I guess it's ramp and additional declines and levels. Can someone just walk me through the second half of this year into 2025 again, what needs to be done? And then Daniel for you, the last capital I remember on this mine was $450,000,000 to $470,000,000 Can you let me know how much we have spent to date and when we are getting this new CapEx number? Thank you. Speaker 200:30:44Of course, Tanja. Here with us is Renzo Majer. He can explain to you all your questions in some area. Speaker 700:30:53Thank you. Speaker 800:30:53Hi, Tanya. Hi, Tanya. So what's coming in as you can see the pictures, there's great progress in air moving, it's out of the way of the critical path. And we have started with all the concrete placement. And we have the mechanical steel and piping contractor on-site. Speaker 800:31:18So you're going to see a lot of advance in that area. The underground contractor for development the mine, it's already on-site. So we're going to see the first in the next quarter, we're going to see the first mine development advancing. And the electrical and signal contractor, we shall be closing that contract towards end of May, beginning of end of May, beginning of June. You're going to see all those 3 main contractors, which is pretty much all of them, the remaining big contracts fully on board producing. Speaker 800:31:55That's the idea. Again, we have this 98% of engineering and procurement. So it's about managing this advantage in favor of the product. Speaker 700:32:09Okay. So these three contracts are going to be placed, it looks like, in Q2. So the concrete, steel, the underground development and the electrical, right, these 3 are going to be placed in or awarded in Q2. Then you're going to have all of that work obviously done Q2 onwards. And then when do we actually expect the mill to start to turn wet commissioning, dry commissioning, when are we expecting that? Speaker 800:32:44So we already have from those three contracts you mentioned, the concrete, mechanical, pipe and steel, it's already signed and it's running now. Underground is signed and it will be producing now. Electrical and signal is the one that we need to we're at the final stage of the bidding process. So it should be finished on May and awarded on May. Now in the pictures, you can see that we are constructing the mill already, foundations, the first foundation has been put. Speaker 800:33:19Towards the we're going to be finishing construction towards the early Q2 of next year, and that's kind of when the commissioning is going to start. Speaker 700:33:32Okay. And how long do you think commissioning will take? Is it like 60% of capacity for 30 days in terms of getting to commercial production. Speaker 800:33:46I think we're so we're early 4th quarter, we should Speaker 900:33:51be in. Speaker 700:33:52Okay. So Q4, so it's going to take you 2 quarters to go to commercial? Speaker 800:33:57Yes. I mean, we're very advancing we're going to be very advancing construction, so we can start commissioning earlier for sure. Speaker 700:34:05Okay. Okay. So that's commercial. Yes, I should start thinking commercial in Q4. That's when we start taking this through the income through revenue. Speaker 700:34:22Like $450,000,000 to $470,000,000 was the last number I have. Maybe you can give me a little bit of an idea when a new one is coming and where are you seeing changes in this CapEx number positive and negative? Speaker 500:34:37It's Tanya. We are still evaluating the total CapEx. We will have a better figure for the next quarter conference call, but we expect from the initial CapEx of $470,000,000 we expect around 10% to 15 percent increase. And currently, we have been we have already disbursed since 2022 until the end of last quarter, dollars 220,000,000 for San Gabriel. Speaker 700:35:11Okay. That's great. And then I guess in Q2, someone can give me an idea about when you're doing your development, how the development is coming in terms of costing for the underground as well. Thank you so much for helping me. Speaker 200:35:29Tania, if I may pass the microphone to Aldo, he wants to make a little more give you a little more color about the sale of the choppy loan environment. Speaker 900:35:41Yes. Hi, Tanya. Sorry. I want to clarify a little bit the time for the sale of the royalty of Yanacocha. We have time until July 15. Speaker 900:35:55If we don't reach the price, the target price, we can go to the 2nd phase and ask for a lower price first to Newmont and then to the interested in that Royal. But the idea is to try to finish that sale during this year. But in the first phase, we have time until July 15. Speaker 700:36:17Okay. So if I understand correctly, you have until July 15 in this first phase. If you do not get the price you want, then you go to a second phase. And how does this second phase differ from the first phase? Is it just different? Speaker 700:36:32Only a lower price. Speaker 900:36:33Only a lower price. Speaker 700:36:34Only a lower price. Okay. So what about then can you go back to Newmont because Newmont, I think, has a right of first refusal on it? Speaker 900:36:44It's a right of first offer. A little bit different, but we have to ask for a price on Newmont. If they don't accept to buy at that price, we also can go to the market again. This is our idea. Speaker 700:36:57Okay. Got it. Okay. All right. So, if that if we don't get anything by July 15, then we're going to Phase 2? Speaker 400:37:05Yes, it's fast. Speaker 700:37:06Okay, great. Thank you for the clarification. I really appreciate it. Speaker 600:37:11Thank you. Operator00:37:13Ladies and gentlemen, with that, we will be concluding today's audio question and answer session. I would like to turn the floor back over to Gabriel Salas, Investor Relations Officer for any webcast questions. Please go ahead. Speaker 100:37:27Thank you, operator. The first question comes from Orlando Arriga from Credicorp Capital. Can you please comment on commercial deductions? They decreased in a per ton of unit sold basis, so I would appreciate some color on that. Speaker 400:37:44[SPEAKER CANDIDO BOTELHO BRACHER:] Yes, Speaker 900:37:48Gabriel. Yes, thank you for the question. It happened 2 things in the market. The first one is that the commercial direction has gone lower a lot. We have better commercial terms for this year. Speaker 900:38:04That's why one of the reasons why the commercial terms is going down. And the second one was that we sold 13 dry metric tons of concentrate during the 1st Q with no warrants in Brokani. And that gives us, of course, better terms and lower deductions. That was the 2 main reasons why the direction was so low in this quarter. Speaker 100:38:34Thank you, Alou. At this time, there are no further questions. I would like to turn the call over to the operator. Operator00:38:45Thank you. That concludes the question and answer session for today. I would like to turn it back over to management for any closing remarks. Speaker 200:38:54Thank you, operator. And before we finish today's conference call, thank you. I want to thank you very much for making the time to join us and the interest in our company. Thank you again and have a wonderful day. Operator00:39:13Ladies and gentlemen, that concludes today's conference call. We would like to thank you again for your participation. You may now disconnect.Read morePowered by