Q1 2020 Earnings Call
Good day, ladies and gentlemen, welcome to the company had de Minas Buenaventura first quarter 2020 earnings 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 you your host for today's call Mr. Rodrigo Echopark. It it took a bar investor Relations Mr. etch a copart you may begin.
Good morning, and welcome everyone.
Or something on the cold today, if we've got a bit Gotta go see Oh, well two person I know they know what were your question are you still north Korea, especially and I'm fearful.
These like specially in operations.
Oh, Yes, my script, you couldn't be clear development.
I'm not I'm also my script. She has also seen lobby.
<unk> joining us today, if Mr cope coming out of <unk>.
Our chairman.
Before we get started during today's call. We will make forward looking statements that reflect the companys wouldn't expectations about future plans and performance.
[laughter] payments rely on assumptions I missed the mix.
On October results may differ materially.
I'm not certain <unk>.
And of course, you read the full disclosure concerning forward looking statements. We seemed a press release, we filed on May 18 2020.
It's important to note that beef steaming include expectations and assumptions, which.
We will be shirt related to that you picked up the called me thinking I'm dynamic.
I see on a slight do I work forward looking statement also provides information on beef doctors, including the effects related to coordinate deem.
That would affect our financial results.
In particular, there is significant uncertainty about the reaching uncompleted impact.
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I think this means whenever into what else we sold scope change at any time and the impact of Cobiz 19.
On the company, who sold I'm not Luke if a best estimate based on information not been <unk> folks do they beat.
Please note in dangerous safety right utilizing a more beautiful approaching exercising social distinctions well conduct in the school.
We would ask you to bleach, you're talking my light up any pumping shelf technological difficulties, which could talk your.
At this time, let me turn the call over to be the.
Peter Please go ahead.
You have already you wouldn't want me water I'm thinking about thinking the conference call. It.
Before we thought it before they show what we'd like to meet you Youre well I mean, I'm fine I would be a b what time.
He sends out with salt.
What they need to when you put on a he has made me not when I went through.
[laughter], but I wouldn't want that based on what she's available you know what age.
Before we go part of that Pete pick up momentum revealed a cultural me I think men.
On slide two.
He continues I knew it it's not going to make it look like in London.
Moving on to like me I'd like.
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Neither one of them and then let's hold what I'd definitely impacted by the state Mackenzie and related not they pick up and down.
I guess, they began calling them and you want to come thing.
Right I'm not going up by.
Yeah outbreak, oh, well be even been unrelated speech and bodes well.
I want to do that looks setting.
Oh that's from.
What I don't see anything.
Indeed, what a thing when you die from my recollection was Mackie.
<unk> point 8 billion, but.
Yeah, Jeff you got pulled up quite a yep.
Really I thought you need company, which.
They all need on bonus.
It's kind of war.
So to speak what $10 million compared to $8.5 billion, well, that's an area and things like.
[laughter] War.
No well and fraud.
Compared with a net oh $27.8 million, what I think you bring in banking.
No.
Well you can see I couldnt be thinking like regions Oh.
9.7 million, but.
The company de bottlenecking, probably won't continue well into the into one of them yes.
Can you tell me that parallel that's one that.
My you <unk>, well, hey look on lives.
I'm fine strong caspase channel one of them in $2 million Apple watch anything.
Lastly, I'll get it nothing that's not that's not to be green thread.
Even though.
Also we continue.
Our problem, but the thing I'm gone.
And then well not constantly thinking then well watch I called out in water could put SAP.
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And that helps [laughter] financing.
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Not to repeat what about new loan.
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New quite yet no.
But he might they be.
He asked me I'm lucky installing them.
Oh I'm thinking.
And our India.
Right Okay.
The couldn't veteran who we thought but had shops all the topic.
Right.
Oh, that's going to go to top but it's something that you see all fine.
Our minds.
I'm not updated guidance.
But once we achieve who I think the population enrolling our operations you updated guidance, it's affected because we've appointed by the end of June.
Moving onto slide fall.
Well I don't think d., but who wasn't the Olympic being much.
C.
What are you shouldn't see theme they.
Which was subsequently extended.
They are used government mandated wanting fine.
Glenn on me.
Any tool.
What do you know why aren't buying media.
That's something all by itself, but it's one of the main pent up maintenance on my math, you see what do you get to build critical peak.
Do you need to but it's all on each Bob I'm not sure not sound I'm gonna clubs to Mike.
On May 11, I am calling them I'm for like nine later today.
Yes, the B and C patients.
Moving on things like price.
You can see nice.
We have somebody I.
Yeah, Cotton quilted show called the banking outbreak.
And when I got cut into maintains a strong cash position.
Got any gloomy them, but Oh my gosh anything.
No no yeah, Maffucci, Oh, yeah, making loans.
Mean.
When school 14 million Bucks.
Yeah, now like from anything and I do not completely.
And I see no syndicated though I'm not too which has been set.
What I knew you have done long lead that.
Wow that's Pete.
And I agree that we've got a potential to trade approach bothered by both my.
Most unique on production.
One pumping them on me.
Thing.
You say well my you jump off Uh huh.
To conclude on all corn backup won't though I'm, putting more lucky inching operations.
Hi School starting in June.
Yeah, It's who we stopped you.
Oh pardon me.
Well now include Oh already but it sounds like that's why the implementation on what we thought of people passions model assets.
Thank you.
The problem that meets your minds <unk> topical patient enrolled.
And Mike.
Moving onto its nice.
The company insight into the fold updated guidance once all the patients at chief.
However, the company continues to and I invite you blend somebody.
Oh.
Hi, Great, Yes, why maintain focus was called Rachel I call for that.
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Moving on to slide saving a night.
Indeed slides we show that makes you take into account I would walk home safely, keeping hi, suddenly Tonight and I.
He got to call the thing I've asked this but.
Yeah, you can find that matches they can't inside.
Oh absolutely.
I mean, one can see all four of them like what makes sense based on stock.
A workforce.
I'll also say Blue Chip column stated I don't come election.
He wants to slide nine.
Yeah, that's showing that was that does it come up.
Whether we use not usual.
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I love overnight.
Well, that's one of them.
The comments like which I discussed and actual results.
Moving onto its nice thing.
Financing bodies.
Insight on that must be paid I wouldn't put it that's true. So you can appreciate which way that's going to be 19, [laughter] I will play itself.
Moving on to slide 11.
Pete These wonderful.
I see that degree revenues these possibly explain.
Greetings volume sold but you know good I give money keeps you got caught it.
Nick.
Moving on to slide right.
I'm actually highlights revenues, even got whatever was 114.5 million bonus we keep April I know you can buy something about truck or anything.
These wells.
Did you put anything in volumes sold <unk> gold.
You'd be down for the holiday biotic operations.
Well I don't put anything.
Okay got it.
<unk> $8 million.
Somebody's until then hey, falling hold more bullish, but what else I mean I.
Easy that including our affiliates in deep water wash.
The people $1 million cheap and keep up and no one company [laughter], what I don't have any like.
Now that you all deep water wash.
And in spite you're going to.
Compared to our net income fault and $7.3 million again.
The net loss see it reached almost $10.7 million related because we like.
[laughter] things these umbrella.
Or anything compared to $8.5 billion playing bank.
[laughter] free cash flow deep.
Border same thing was 20.
Indeed on bubbles, but right now.
$88.2 million.
You got cool.
Well put anymore.
And if he can oh, there's not a couple of number because you can see it.
That's a good.
Moving onto slide that team here again, you can't see that got because we have each one index or I'm not liking that results from our portfolio corporations.
Moving on to slide emoji theme.
Look a whole products from the computers that lease ups and operational but not seen big box.
You are saying setting but said.
The state of the war.
Well.
<unk>, who was on production and that's what our anything what 89 Oh.
Oh, Yeah Keith.
Anyone Thats I know what I'm not sure.
On a plane or whatever maybe yes.
He was mainly explained by lower production with a more miles.
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He was it out so you got all production for this quarter was 8.8 million ounces, we chose not to be peaceful practicing.
Cool see people.
[laughter] or 29 pm.
They need do you know, it's kinda like Chile tumble Mike.
Well, let me playing right going nine Oh, that's fine.
That's good news in mind, you got scene that action.
One thing you might be.
Okay sounds like if we keep products from what.
Oh I'm going to bounce.
Well go anything.
It seems that I know in comparison to that or anything.
Finally, our products with a long thought actual trials will be the Iowa.
Then 8.7 thousand metric box.
Before that sounds named game I think people tend to peak production.
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Moving on to its nights I mean, not only took thing called the holiday direct operations or.
Yep.
Right.
Food thousand feet between yet put up Oh of course.
Mainly due to lower gold ounces sold but b.
Oh no assays.
I'm on my view on event.
Oh the couple of sites.
Colin Quinn went outside.
Well.
1500 on thing gets cut off what else would teach quote unquote, Okay, hi analytical.
Similar.
HM.
Going to school.
Yeah, nothing else that you could be a person hi analytical.
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Finally, let David seek.
Well, it's applied to say what.
Oh I'm not.
A lot that metric pump Keith.
No I get double.
Moving on to slide 17.
The book on making Florida I have told all of our people are companies Debottlenecking, Florida, <unk> gaming mice, Oh or something [laughter] upset.
I got from outcome.
See it's called [laughter] or what inline but.
And then 18 $7.4 million I wish I won't be.
I concluded.
Yes, right you can see a bomb thing you're breaking expenses.
Glenn and doing well.
For the thing.
So you don't see any no effect I mean from called nine.
Moving onto slide 18.
Well again, you can see all that could be there will be from all the low juice <unk> I know like any more detail the uptake that information regarding our <unk>. Please.
Moving onto slide 19.
Yeah, we have something one stop shop.
Good on that level, each one of our car.
Moving on to slide.
And.
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But it probably and that's something that couldn't pick somebody else in Colombia and put a little.
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Moving on to slide 21.
We do continue to be yeah, we own side Hello.
Oh hi.
Right off.
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Oh, no dramatic impact I said minutes of use from social interaction Bobby Assembly, what do they.
Oh, the Nike investigations.
Because I think cool got real cycle probably.
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The minimum [laughter], because they tend to be approved.
[laughter] or anything you want.
That's pretty quick cold.
Oh, you mean.
Well I know you pick on value.
Oh, well, having to go up or.
Moving on to slide 10 feet.
By what that implies probably.
We expect to leaps feasibility stage I.
Hi, 2021.
Are you going they don't have gotten back office mental.
And they started to come in picture.
And we actually mentioned and I pending bandaid she can give me.
Thank you create potential and we end up going back to your favorite to open the lines for questions.
Great well be right.
Thank you we will now be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
A confirmation Tony will indicate your line is in the question Q.
You May press Star too if you would like to remove your question from the Q.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the sarkies at this time, we will pause momentarily to assemble a roster.
No.
Oh.
[noise] Carlos Your line is open on our end is your phone muted.
Yeah, No I, just thought but I guess, even though can you hear me. Please go ahead when your question.
Great. Thank you very much I know good morning, everyone. I Hope you, you and you're probably not doing well [laughter]. So the first question has to do with a restart Oh you know.
The two faces Victor I.
I see that that you're prioritizing those mines with more significant production, but to what extent cost and on or profitability also play a role in D. Stewart stage.
Right. The that you have put in place can you elaborate on that as well as to what do you see as the cost if any and all of restarting the operations I mean is that 12 to 14 million.
Fixed cost and can make it is that you highlight is that going to temporarily increase a or are there any cost addition out to those fixed cost just from they are we starting point of view all over the operations and then a you're talking about the $12 million to $14 million, maybe they handle.
The fixed cost. It does it include Caulks AG is DNA exploration expenses.
Can you maybe a drill down on either beat on other details estimate what what cost I already commented there and then finally.
With all the moving pieces or I know that is very difficult to forecast. They the cash flows, but how do you see working capital in the second quarter given that.
Stories that you how I didn't do Brasil, either you accumulated doing during the quarter IDN over the first quarter.
Do you expect that as the economy in active economic activity normalizing in Peru, you're you're going to be able to ship those are those inventories and generate working cash out of working capital lower working capital. Thank you very much and good luck.
Thank you can look for report from the first one need for real good good I'm really proud to be crazy.
They didn't believe these concept these days going down the main channel our base I'm on also in them, so probably doesn't exactly.
Picking on council that Ah lisanti.
That that we'd have to profitable I need to kind of number of people walk us through that Oh, hi.
So they can easily because it's become baseball dimension or what else its profitability another way with patients.
In dental goals.
And maybe that's probably the I'm look good and.
Number.
Between the different mine on differently. This number you can Greg who called in dollar not include we have not been greedy, Indiana.
And then me well it.
Yes, a couple of how are you there. Thank you for your question. It the total cost in the fixed costs. These yourself operational big close.
Good evening subsidiaries older and when I do know subsidiaries the total vehicle space some of these between.
So going to in 2000 $5 billion [laughter] in DNA. It's after another two or 4.5 Canadian dollar.
So Doug will be to go dark pools.
For a fix cost for the generic Buddha.
Okay. So going forward that change there. So you know each other philly is still the fixed cost Islam point [noise].
Nine.
Hey, I mean, it's lumpy.
Hey.
And at least you know Colby cost related in March because.
We have fixed thing certainly shouldn't be in between.
Oh boy.
They have a million dollar.
In the $1 million, if I usually goes.
We foresee it and this goes are very well the Mr. Mango the already and.
If anybody codes or or all the him and transport the drugs for the Sean I I wish you luck to three footprint for these could be Bobby Greensboro voting.
HM.
We will see the them. This me you movie.
At least.
50% more in April.
Okay.
We expect a few the baby mm deliveries for for.
This second semester, we foresee that and we can we will be able to do that lever a or b broke shown that he was doing.
You know where inventories you've done where might you.
And once we begin.
For break those you know the bump, but we will treat all the or that it will still be goes we working with them, but she would come base 15 days campaign.
It can be began in the last two weeks of remote from these look don't change just a 15 year old March or we could not process alone.
4004, four doesn't bonuses for the moment.
Over for a bump.
[noise] right Okay John.
Yeah Okay.
No yeah, sorry, yes, just a on on a coupon policies.
That is part of phase two study on June 16.
Do you think that you will be able to threed they ores.
Yeah, the material from the first quarter that Washington treated in March and you're in those two last weeks of June.
Yeah, the quick it on cotton yeah.
Okay, we explained with more to be big.
Frankly.
Hi, guys looking for good question, Yes, we were able to threed, there or lets you could stockpile in front of mind during the coming monks recoveries for capacity on the pricing plan to do so.
Uh huh.
A couple of let me add that Oh, we started taking consideration on backing the Alaska the way.
I mean, when we think it cannot be dealing with the great would be better because the main thing I believe Oh, let's call. It 10 of our forgot what falls.
Got it shouldn't be paid and making a happy.
Well that country end up yeah Halloween.
All right approach in order to restart our body.
Thank you very much a everyone in Oh.
On the best or with the with the ramp up and particularly when are we there.
That you're basically stay safe [laughter].
Hi, good lateral.
Again, if you have a question. Please press Star then one.
The next question is from Seattle O'hara with Goldman Sachs. Please go ahead.
Thanks, and thanks, everyone. Thanks for taking the questions. My first question are you broadening several very good we saw that no. There was a big meets on a dollar celebrate I know that's your another concerned shareholders, but you can clarify exactly what happened was the realize.
Right Fair Derrick Ward, you know, 30% down quarter over quarter ran you know there let me prices actually was much lower.
Just 4%, though so you can.
I'm sure transcripts liver beats does mismatch and second a if you can also provide some more information on why you ought to be starting the minus the Jewish stages, why you're not snarky ever seen at once it's a it's a logistics problem. It's a strategy given the current corporate bright or the metals.
Prices or you can provide a little bit more granularity on that would be interesting. Thank you.
Oh. Thank you can tell your first question to me that regarding our easy that our results the company that coupon Bonnie will make important one a venue volume.
We could do you mean indefinitely.
HM.
Uh huh.
They are available under the current body create good like on component will be lower easy but.
Oh, no right graph, but really I like hardly landrieu you good yeah, because more information regarding these.
But we we at night.
I think on body related to the public would kind of what are some Juan Carlos.
Many thanks.
Yes, Yeah, we ended up with debuted friendly.
Yeah sure. It's you know the realized pricing so literally.
It has been affected because they.
Choose not to do so all the luxury or lack of available today and they have.
Inventories on hold.
Not too they decide not to sell.
More than other less than 5000 Williamsburg for potential.
And they have great [laughter] being affected a b C. Bickering market I'm also very even though they have I know some effect. So they they have no big data in real life sales.
So I'll try to related.
Okay.
Excuse me.
No I understood there the first I am sorry forgot to provide the second one or I appreciate it.
Yeah, I've gotten that you could explain with all the great.
Why we decided to use would be that'd be great.
[laughter].
Okay, well Joe.
Got you fight for fiery facing they more report I, absolutely agree I want portfolio.
Also we all day constrained by the logistics site. According to the rules the news for anybody rules hit by the government, we need to read people from their own I don't know necessarily near them I could be some elephant together from the mine we need to bring that people do a medically station take our reputation.
Free he's not we'd call week, if he's not that we'd call. If she can get into the truck and then we need to read that person one way to Straightly. Mike. So you can imagine, bringing I was from people for each operation. We take time, we need to go in groups of 60 to 70 people Berger for group that's the.
Oh gosh ideally.
Hello facility to attend these test and in order to bring it up older people it would take a lot of logistical.
Detailed that's the reason we put that you faces the in order to comply with the more important brands in the second half of me and the other one being the first half folks in June.
Sure.
Okay. Thank you.
The work on Joel.
Your next question is from Tanya Jakusconek with Scotia Bank. Please go ahead.
Hi, good morning, everybody and thank you very much of the call I'm just wondering in terms of the ramp up of the operation on for both phase one and say Hey, maybe you can get into Atlanta like they have how I, it's gonna take it to ramp up Tehran, Yeah full capacity on all of these assets.
Okay. Thank their time, yeah, yeah, exactly what kind of our plan to obtain the who could be.
Around June we kinda lead this incremental kind of early you couldn't explain.
Great one more repaying a good battering going more akshay sample might you be tough out there.
Yeah, the whole blood Bank you any I'm also not go down for a book on I know one.
Yeah look like.
Perfect.
They ramp up really first but do you will vary between two weeks to four weeks depending on each mine.
Even when we'll let you we have all the comps already set and we believe is gonna be read between the two weeks time period.
So you Fort Campbell money, because they have an isolated can you would it be easier and he wouldn't take a little bit more time for the towns or remind you that our nearby population because we need to be segregated from the from the corporation, we need to be working you know and close environment. So we need to.
We changed our sit out how we have all the people.
Leading around eyewear footprint, we need to bring they need to a new close the deal cruise area and sometimes you takes time to build these.
Good for ready facilities for for the workers. So in short term two weeks, Andy will actually come on my mind or what went on most important work for us and up to four weeks in deal their minds.
Well, maybe put me on it differently.
Yeah right now in some of my old T, 100% of our name plate capacity right now in Campbell. My you you can cut blow a cheap today 75, that's saying that they are more likely <unk> <unk>, but then we will keep us they could actually want so I mean, regardless.
Yeah.
Hi.
When you talk to him.
Okay, that's great.
Okay, one week yeah.
Hey, good.
Q1 hundred percent indeed.
Core Mark.
Okay, and then what about the in phase two.
Yeah, Hey school.
Oh, Pampa, who Gandhi.
Oh, God, yet somehow or on kind of Oh, So you could they stop spending that's the branch warmed up but around the beach units and Ah Lisanti.
Okay, even less sometimes it's also during that period of two weeks, because you have or close camper revealed so it's only bringing the people on board I indicated so county, and Orcopampa moving to a range of three to four weeks, because we need it to lose from well if you.
I wish him, but he doesn't mean that we are starting.
We will have federal production from that boys you use that we would have started by June 16, which 50, 60% I will ramp up 200% in the next three weeks for regarding our coupon.
Okay no by the end of June or there about right. Your life restaurants that we should be at design capacity.
Yes, that's correct, Okay, [laughter] and can I ask it just be I've ever met you [laughter] Oh, you know transportation of the concentrate from the mine fight to support.
That all old town or are we having issue at the 0.7 times that shipping out that concentrate or in outdoor a or whatever I'm that you're doing is that all okay.
Yes, I would point Banga I said do indeed.
Okay, Oh pardon I know or love them, we maintain yeah sort of maintenance we maintain a.
That's not the diesel could be quite a P D.
What I'd love to talk about I want to concentrate our non saw what about it. So besides like when you pick on a kitten really this pickup we will be using our inventories on site.
Well, we don't we don't have any issue I mean.
They can see him we maintain the CLO what might be.
Okay. The port parallel kinda ready for transportation, Ontario, you know yeah, you're right you're a smelter is around the world.
Yes.
Okay, well maintain open bidding D or something.
Okay. Okay. That's good thank you.
You're welcome founder.
Once again, if you have a question. Please press Star then one.
Please standby as we poll for questions.
Showing no further questions. This concludes our question and answer session.
I'd now like to turn the conference back over to Mr. Victor Dobbins for his closing remarks.
Thank you.
Great one again for drugs in our conference call. This morning.
Final remarks, let me explain the Carlo.
All necessary measures on top of course, not a beep on Seattle could take care.
Okay, all our workers Compressco onboarding communities at all levels.
Whenever include Oh, we thought that may be.
Okay sounds grew up two phase approach body types in gold mines with the most significant production.
One Campbell my you could talk while it will probably go more like.
I mean trade school starting in June that's it.
Good good start Hmm.
And Brian.
Huh.
It's important to note that you do that implementation a whole lot de bottlenecking pro rata.
Great News, our placement fees go significantly.
While the Pope.
These I'm pretty damn good P.
I know that mostly fixed costs to maintain and they're getting as well our mine the topic.
Oh, great to $14 million.
Well I don't know box I still think huh.
Yeah. These young we manage to refinance.
Unfortunately, Oh I was Greg I'm Revpor thing to do that same altrom corresponding to a how to lift the plan once.
Regarding how we're going to any guidance, even though our experience not last.
They are willing to de I'm confident that see pressure.
We prefer to walk everybody trying the new guidance anything other than the.
Finally gotten quite easy so our topic on our financial policy for Pizza.
I would allow us to overcome these kind of is probably right and then thing I wasn't long time business plan.
Before we finish todays conference call. Thank you very much for making that buying going on today.
I told you are all safe on practice, all that recommendations even by the Gorman.
Nucor wasn't.
You in Brazil.
I suppose it.
Thank you again on a wonderful day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Mhm.
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