Q3 2020 Compania de Minas Buenaventura SAA Earnings Call
Good day, ladies and gentlemen.
Welcome to the company I mean, yes kind of been Chiles third quarter 2020 earnings conference call.
At this time all participants are in a listen only mode.
Please note that this call is being recorded.
I would now like to introduce your host for today's call.
Mr. Rodrigo will talk a par.
Investor Relations Mr., Chuck a par you may begin.
Good morning, everyone. Thank you for joining us today to discuss our third quarter and 2020 resource.
So they discussion would be led by Downdrafts he or she.
Also during our call today.
For your question, our new CFO Mr. <unk>.
<unk>.
Right.
How would we not he is my question.
You bet.
[music].
But Chris you also see 90, D. and also I'd be doing for your question would be how can we not to use our sherman.
This confidence willing to do it.
Forward looking statements, which are subject to various risk and uncertainties.
Good goals, our actual results to differ materially from these statements.
Any such statements should be considered in conjunction with the cautionary statements we see our earnings release Doctor discussion.
I encourage you to read the full disclosure concerning forward looking statements. We seen the press release, we filed on October 29 20.
In addition, it is important to note that these statements.
Sick patients and assumptions, which will be shared relate that to that impact.
19.
As seen on slide two our forward looking statements also provides information on risk factors, including the effect related to global banking that could affect our financial results.
In particular there is.
Mr significant uncertainty about valuation and complement the impact of the call we deemed bumping.
This means well.
Well I mean directly sold could change at any time and that impact on cobi, 19th and the Companys business, we sold out.
Luke you saw a best estimate based based on you from <unk>.
On today's date.
Please note that in dangerous safety, we are again utilizing a more neutral approach exercising social desktops, you might come back to the school this quarter.
We would ask you to please bear that in mind in light of any potential.
In any potential thing.
Then they know what are you gonna difficulties, which could occur.
At this time.
Let me now turn the call over to the other walks you down.
Capital. Please go ahead.
Thank you.
Good morning to all I think you for attending this conference call.
Before we started this presentation, we would like to wish you the 5 million French health and wellbeing.
Right.
We are pleased to present the results of the third World 2020 from Yeah, I mean, that's what others.
We have prepared Oh were once this information is available in the world.
Before before we go farther please take a moment to review the cautionary statement shown.
Like to.
You can see that the schools for related to the call the team.
Moving on to slide three highlights whereas for.
This quarter 2020 of EBITDA from direct operations reflected.
Positive strength on both a sequential and year on year basis. Despite the effects of gold did make team went up into that separation during the quarter.
EBITDA from Diavik appraisal reach.
The 8.5 million for the third quarter when compared to.
$26.5 million.
June quarter swing.
And 58.4 million reported in the quarter.
The third quarter.
When the adjusted EBITDA, including answers it reach 183.9 million comfort.
468.2 million type work that makes.
Third quarter, two any capital expenditures work.
2.6 million compared to 28 million for the same period.
When my team.
Third quarter 20, net income was 24.4 million compared to 4.5 million for the same period 22.
The Companys nibbled on they can program continued to progress at a reduced level do here during the third quarter twin that pulled US 2020 focus is on board to last couple of months.
Chuck a network all night.
We're not into that cash position reached $265 million for the third quarter 23.
The company has released his update guidance for the full year 20 twin.
In line with the Companys ongoing focus on cash preservation almost over 29 2020 yesterday when I do that successfully refinanced the final 113 medium leasing payments for each one so hydroelectric power plant effective November two two any.
This extends the maturity by 18 months ball it adds weight off label 30 days plus 2.7%.
Moving on to slide four five.
Nine month, 20, multi pollution and 2020 guidance.
For transparency matters, we have decided to report the monthly detail football or production. So you can appreciate we each way the cold in 19 countries such that our operating results.
And see a positive swing in turn.
So production most football World operations. Additionally, we could do it over 2020 operating guidance for.
For your reference.
The pace of number might you the guidance for gold production is between 70 and 74 constant.
In the case of Orcopampa the guidance for gold production is between 40 and 42000.
Sure we did post a difficult issue resorts they need during the year.
In the case of course, that's in the guidance for gold production was beating 100 hundred 6000 homes.
In the case of less on the guidance for gold production mix between 13, and 16 something though.
Negates organic quarter this didn't make gold production.
335000 ounces that's announced by.
In the case of Who's got the.
The guidance for silver production was between 1.4 and 1.6 me. The most is showing a recovery in the last word.
<unk>.
Oh, sorry in the case of what you're talking about.
These mines mother to full capacity during the third quarter 2020, mainly due to our reduced workforce and short the work that's required to successfully operate at full capacity.
2020 operating guidance for silver is between $4.45 million.
In the case of broken.
The guidance for copper production.
<unk> 33, and 36000 metric.
Foreseeing the guidance you seemed a range of 48 51000 metric tons.
He shows that in last quarter, we will be changing the mix of production focusing more on copper that so.
Moving on to slide six.
Financial highlights.
Total revenues during the third quarter were $228.2 million, which is 1% lower in comparison to the third quarter of 2019.
This was primarily due to a decrease you bought them so of gold and silver.
EBITDA from our direct operations and the importance of 2020 was 68.5.
Good part isn't to $58.4 million in the third quarter of 2019.
It'd be think doing our affiliates.
This quarter was $183.8 million, which is nice person how ya good partisan through the third quarter or something like that.
And then maybe income in this quarter was $24.4 million compared to a net income of 4.5 million.
Dollars a year ago.
The Capex has decreased to $12.6 million in the third quarter of 2020 compared to $28 million in 2009.
The free cash flow in the third quarter 20 twin was $76.6 million compared to $10.8 billion of free cash flow can import girl who doesn't.
Moving on to slide seven and eight.
Oh, I see what though for election.
Nicole I do production in the third quarter of 2020 was 81.6 thousand ounces, which is 33% lower than the figure reported on the same quarter of the previous year. This decrease was mainly explained by lower production Tambomayo and then.
To add to the old production for this quarter was $3 million, which shows a decrease of 40% compared to the two people report that on the third floor it doesn't make sense.
This is mainly due to less production in our work which are terrible Mike.
The third quarter of 22015.
15.9 thousand metric consulting work reviews.
22% increase compared to the third quarter of 2019.
This is mainly due to a 72% decreasing for you kind of see a workforce Tacoma.
The case of let.
Equity production was seven.
3000 metric tons in the third quarter of 2020, which is 20% lower in comparison to the third quarter of 20 lighting.
Finally, our copper I do look approaching 40.
Third quarter of the year was 25000 metric stops. This reduction is explained by 32% decrease in production that broke out an 18% decrease in production upset in several though.
Moving on to slide nine.
All in sustaining cost and cost applicable to sale.
You all in sustaining costs from our direct operations in the first nine months of the current year.
Increased too.
1286, you with all the Browns horrible, mainly due to lower gold ounces sold.
The cost applicable to sales for the nine month period, the 2020, where its fall.
For both.
1035, U.S. dollar barrels, which is 3% higher than a year ago for silver 16 point Nikes Nice 96, U.S. dollar per ounce, which is 50% higher than a year ago.
For live.
1181, U.S. dollar per metric tons, which is 4% lower than a year ago.
For Cooper 5019, U.S. dollar method tone, which is 7% lower in comparison to a year ago.
Finally in the case of seeing the cost of a flight to safety was 1789, you with all the permits itself, which is 11% lower than a year ago.
Moving on to slide 10.
In the deeper than they can roll them.
For the third quarter.
As a result of the company's Newbuilding program. They will then they can program, we are gaining mining cost efficiency that but equally offset lower production.
As you can see that sold for the third quarter workforce generating $7.1 million, so, but you should know.
Additionally, the company continues to enhance its current mining plan in order to focus on high grade areas, while maintaining a focus on exploration and cost reduction efforts.
You can see more details hub exploration program with FNB each of these percentage.
Moving on to slide 11, I'd like like like project.
Yeah.
We are presenting.
One is nuptials accelerant development level for each one of our part.
Moving on to slide 12, San Gabriel.
The feasibility study is at 76% progress I mean, this thing will be completed by the yen.
The end of the year.
The construction permit it's already submitted for approval, we aim to start construction by the second quarter of 2021.
Moving on to slide 13 therapy to the Prefeasibility study with and three is at 86% progress and suspected mi that to be completed by the end of the Oh, yes.
Onsite column testing activities are delayed until the first quarter 21 due to call. These restrictions.
The feasibility study will begin after this competition.
Moving on to Slide 14, you will see.
Michael.
The feasibility study is expected to be concluded that.
First quarter to 21.
The.
Yeah, we filed by the end of 23.
This project will unlock value for our copper portfolio.
Moving on to slide 15 cent, though what they sold flights project.
This is a stand alone business case, we expect to reach Prefeasibility stage like 2021.
We are currently preparing the media process, you Michel to comment but.
We have already finished saving them basic EPS.
Thank you for.
Your attention.
I will hand, the call back to the operator to open the line for questions. Operator. Please go.
Thank you Sir.
We will now begin the question and answer session to ask a question.
You May press Star and then one on your telephone keypad.
If you are using a speakerphone please pick up your handset before pressing the keys.
It was for all your question. Please press Star and then too.
At this time, we will pause for a moment to assemble our roster.
And our first question today will come from geography, I'd say of Goldman Sachs. Please go ahead.
Hi, good morning, Thanks, everyone.
My first question I mean, you've got you know that's who we're thrilled about the robot.
If you're looking for Danville wardens for next quarter, and what should we expect them to offer.
Call how do you see how do you see a big improvement on on costs going forward in aim regarding the capital of THL, What's hard look in terms of capital allocation for next year. If you can't provide you know a year before.
Morgan added beyond on Kashi integration to fixate Shannon's on Capex implication beat gains strong several very good. Thank you.
Thank you yeah Hello.
In the game, so oh cost.
We it's big.
Who.
[laughter] Kindle reviews are you aware of where.
I would guess or possibly go to say is known where oh, where might we expect to do have.
Have you seen.
I reviews, posting double my you.
Yeah, I know what I.
Yeah.
<unk> guidance.
Well get you to come we're comfortable.
Good.
In the gauge to Oh some of my own for example, we stick to finish our Callaway gas for the whole year between 750.
No alerts to $800 in orcopampa around $1000.
You can tell by around 850.
$800 per ounce you need to move to talk while we expect to have our own 19 $18 per ounce.
Thank God. He also 19.
And in the case of foreseeing cookie and around 1000 seat.
$800 for for Don not seen and in copper for Michael Foods are wrong.
5.5 thousand $200.
Uh huh.
In the diesel got big.
We like to finish this this this year.
We the best.
Total investment in football that Didnt know, where my eyes between.
$45 million to 65 million is sustaining.
[laughter].
Greenfield.
Yeah.
I don't.
What was your second question sorry, Joel.
Sure. It's what you know about the capital accretion in general terms, so what to expect in terms of Capex, but also what you're looking to build up the cash generation and its very been carrying sufficient dividends from several did.
Well and I were aware capex for this year.
We don't.
See there in the construction loan books, and Navient will be around 100 <unk> hundred million.
Billion dollar.
Our cash cash generation will.
The mainly in our efforts to.
In Greece, how where exploration was seen in our own minds and the cash in that region. So that.
He tells me.
It's HM.
A discussion that we that's in there is it still pending we report.
In the <unk>.
The competing this 2020 year.
Hi, Matt.
Oh gosh.
But.
Up to now the we have never discuss what to what to do with that cash.
Okay. Thank you and then just going back on the cost.
What's your talk what are you expecting to reach 100% now the fourth quarter were 100% of production in the fourth quarter.
No.
We are actually.
Yeah.
Grain to get.
And.
More.
Hey.
Back to college.
Workforce.
For type one has been a very difficult work through and we expect the LASG work there to meet almost.
Yeah.
Terry.
Look like they did that our third quarter, maybe one catalog.
Our current governor for peace and give us more color when we talk about.
Thank you Andrew Yes, he could talk where we're putting a little bit before now we really because we're always available at this site.
Well the.
I Love paper said production and hopefully so he might develop and that's.
Yes, I did said be lazy, but I think we are activity in your mind do they are using workforce we are.
Oh, that's you got really a proper rate of 90 available quite so maybe.
Almost 30% production, we they need a workforce and catching up we might develop it.
Okay. Thank you.
[noise] again, if he would like to ask a question. Please press star and then one teacher when the Q.
Our next question today comes from Carlos de Alba of Morgan Stanley. Please go ahead.
Yes. Good morning, everyone. Thank you very much. So just maybe following up to make sure that I understood correctly. So the capex. The can you can you mentioned they get the Capex that you see for 2020, and maybe if you already have.
A ballpark figure for 20 $21.
That would be great, but you clearly have you can also break down how much of that 2021 number and I'm 2020, do you have it I look at it to somebody else.
And my second question is regarding cost.
Thank you for the details on the deferred buying used for.
For the full year, but maybe more broadly can.
Can you come in and landed on the on the cost performance.
Yeah, the number in the third quarter again significantly above what we were expecting and therefore, even though volume was also the better hey, the EBITDA generated by the company was still lower than what we expected and making what the consensus was expecting.
I would have thought that we the increase in production and the and the high grading.
Try to you know the company had been placed cost will perform better.
Good when I looked at a discounted or particularly cast with a full nine nine months is up 50% and Gol d. So much more reasonable ONEOK keep are saying do.
Do you have a sense how how much.
D increasing cost.
[music].
Hi, there.
Related to specific on the Uh huh.
We the lower production that you experienced this year I'm, particularly in the third quarter, where where shipments and production I think surprised positively by getting cost.
We didn't see the benefit of how you you need to <unk>, yeah right about you. Thank you.
I got a little color there.
Well in terms of Capex as I.
I think as I told you and.
Taking notes.
No taking in consideration San Gabriel we expect to invest between 920 $120 million.
Hey.
The business I really will depend on how they did the permits that.
We are.
Yes, you know we are.
And timing with the government.
And but.
And he gave the construction will begin in the in the second quarter. We are expecting that's in sync with where that 2021, you know the capex is around $400 million hole.
That that should be.
In the amount of Oh, okay.
Oh the investment.
Tim So of course.
No that 100 to 120 west for 2020.
No no. This is from <unk>, if anybody wants yeah, okay aboard for 22 anyway.
And we.
We expect to have between 45 and 65.
Got you all right. Thank you.
Mhm.
In the terms of a.
Regarding the cost of goods sold.
Please do you have to keep in mind that in.
Oh you cost.
Operating costs.
That were.
Registered in the second quarter and in the third quarter, while we were not producing in some of our units have been.
We assigned or re a cone fit in.
In in the cost of goods.
Good sold so there is a significant increase in.
In the course of loopholes and a decrease in India.
And gross margin that's what maybe.
Take your your your there.
Your calculations out of the of our big and tall figure and.
And then in the first in the second quarter, We register in the operating expenses not into operating cost, but in discussion with nowhere or the external all the doors they suggest us to move it.
And make a reclassification from operating expenses to.
Operating cost that that's maybe the difference on the total.
Amount of these extra cost an extra up sorry, the all the costs that cannot be absorbed by by the production is her on $29 million.
[noise] and of those $29 million.
About if I remember correctly about 9.2.
Happened in the third quarter right.
Hey, nice between debt can be can be in India in the in the in the third quarter was a.
No were.
But these are the type of work.
Right and how do you see that in the fourth quarter.
Given the full year guidance production guidance that you you provided.
As as as respect go.
The whole ghost.
No just to their unabsorbed cost you to production and stuff.
There should not be any end up sort of course, because we already have some production in all our work in our minds when they this account that this amount is.
And.
Registering an upside of course, when when we don't have any promotion worked was saying that close.
All right great. Thank you very much and then just if I may just one final question.
Yes on on on the de Bottlenecking program.
Great.
Progress in the third quarter 7.1 is still fell short of the budget of 12.1.
Hey, what explains the difference but quarter over <unk> of the budget that number didn't materialize is de.
He is related to the ramp up in production and the disruption that you had high steel index in the third quarter or is there anything else that you can point out specifically that explains and they the gap.
Well basically the reason.
Recently, they've got these c. cobiz related reasons, but maybe Juan Carlos and get more.
An explanation of these.
But then again.
In the late.
Sure Andrew the Yeah as you mentioned, it's mostly related to Colby operational disruptions in double now you saw eyewear plan.
Plans were based on.
Might develop name reduction anymore.
Hence the demand.
We couldn't achieve who use these targets be go we have.
Love books time, maybe the quarter.
As Jeremy stated he liberation. So we did develop the mine or change the multi site I suspect it will be this week.
Quite the same what's for Chaco and maybe the savings that we.
Consolidated EBITDA quite what the high grading oh cover or the underground mine.
Now with the most significant activity for people to make you more about this quarter.
There was we needed workforce that we have.
We focus on these.
Hi, great quarter Peter.
The color you've done the room nights, albeit maybe not achieving the expectation was completed with the limited workforce and they need it painful bbds the mine.
Was.
Yeah, I think Larry.
And workout on the girl Mike.
All right. Thank you very much what kind of scenario.
Thank God.
Our next question today is from Leopoldo Silva of Larrainvial. Please go ahead.
Hi, Good morning, Dan how are you.
So I wanted to ask.
Christopher I apologize if maybe what Alaska has already been asked I just came to a cool 10 minutes ago My.
My question is regarding expected.
Exploration and.
I see that so far nine month on the year and you have to spend less than half done.
What to spend on 2019 exploration.
I wanted to ask you.
And how successful.
If you can comment has been Youre your results.
In particularly in Dumbo My you on Obama.
Has has the cobi.
At least drink you from from doing all of the exploration that you wish you well done.
On on what what should we expect.
And perhaps it's the higher prices that will be embedded in reserves will will those be enough to two we tore you.
You know for for a good 2021 vertical bump up or down or done by you.
And if you can give color on your next.
Reserve release.
So that you can maybe extend that you can that you can go.
Thanks.
Thank you and Apollo.
Yes first of all two to clarify the this gap.
Exploration expenses is mainly due to the difficult too.
Working in.
Colby situation.
We have difficulties in.
Errol workforce.
Workforce and also for the war for for our exploration program.
And.
But once we get all the people all the workforce we are.
Doing.
Most the.
Most of our Air Force too.
Hey, good luck.
On the exploration activity and we are.
Very positive.
The results that but that we are having babies.
These.
Last month.
And we expect to maintain the same level of reserves at the closing of this year.
[laughter].
On December.
And maybe even.
Juan Carlos also for another time gun can give us more more color too.
Exploration sufficiently nowhere you know what might be.
Yes, well thank.
Since you mentioned it would obviously be could be to beat people up to the mine site he or she will be.
Really activities, but we are really happy with these on site right now we have five lease hold much.
Okay great.
Right now.
For the underground Wednesday surface.
He said everywhere. So we go.
Right.
We have four people working right now there is one more a read on board. The next week. So we we have five planned for Brocal bound by November.
We have good result, the underground.
Probably by the end of the year, we cops and.
Where we sold a reflecting increasing resources military reserve because the army work, maybe some better for its always at the site.
But high grade rebate nearby deceleration. So we expect to have much more.
2021 years.
Running at an average of 4000.
Right.
He says quote or more next year.
The the only the Bible, where it's human activities duration more color.
We have five people working right now.
In surface three underground.
We have we have to recall working.
They are getting good results.
No different than it was structured some fights I.
Hi, Great Mayfield two flights in the room I.
And Chuck will check up we have saving three holes, but she is working right now having.
Having good results something are you can really work immediately as usual part of the ongoing TBD.
The Americas name Oh.
Four of them are overexploitation animals out there.
We're having good results but.
Campaign, we don't have a consolidated see were itself pretty stupid, so probably by the end of the year as usual, we report where violence. He thinks will be terribly guy I'm sure time.
What specific numbers on there we sub lease exploration efforts.
Okay. Thanks, Thanks, very much very clear.
I know there.
Another point to another thing to point out is that you over men open the cone on me, but basis right and the exploration was up.
After the beginning.
Of our operations. So there's another there's another point of of the Lady nowhere explanation for it.
Uh huh.
Though.
The prices the current prices of the precious metal at least and would would lead you to.
Increased perhaps your operating rates.
And may be sacrificing some higher cost.
But bucketing from though at the moment.
Yes.
Hi, I'm wondering can you repeat I didn't hear you, yes, you were with.
Yes, sorry, so, though these higher precious metals.
Prices.
Would allow you or would you be keen to to increase your production rates and maybe at higher costs on.
On those mines, but perhaps mining resources.
Resources, not reserves and that does.
At 13.
$1300, an ounce of gold maybe are not economical but at 22000. The downside would be would you would you be able to to increased costs.
Maybe sacrificing some additional costs.
Okay I understand your question.
We are in the process of.
Making nowhere operations.
Lending.
November.
We should evaluate there.
Which is the best.
Mining plan for all our mines.
That mining plan Cedars.
That's always the price.
And.
The.
The old the level of core and only.
The content in there or that we.
More available so.
So.
We we should evaluate that in.
Remember we will.
Well of course, the current prices, which is where.
Oh good.
We believe that we will like to have it.
It does.
21.
All right.
Well, thanks, thanks very much.
Our next question today is from Tom.
Yes to cost.
Scotia Bank. Please go ahead.
Good morning, everyone. Thank you for taking my question.
Wanted to ask about your reserve.
So.
If I understand you correctly will you be changing the pricing.
Options that you used at the end of 219 and move them up in Twentytwenty. It that's what I'm understanding.
Hi, Thank you no no no that's it for our mining plan that reserve.
We got the.
Proceed here, who will feel.
You know we be sick as you see them.
Yeah.
Procedures.
That does that answer was.
Regarding our mining plans for for next year.
I appreciate the project will be Dan.
Hi, a pricing I'm just trying to understand how would you use that three year rolling average for your pricing for your reserves and resources is that what youre going to use the FTC formats for that.
Yes, and that's it.
Well, we calculated our reserves Okay. And then you know you mentioned on the drilling side that you know you're you're going to be replacing your reserves and resources I know that your mine plans have changed this year and you are mining higher grade material set you're going after that how does that.
Change your mind plan for what you are going to do in Twentytwenty one.
Well no our effort is to.
Searching a nowhere exploration that Ford is searching to replace those high grade areas.
As you May hear you.
Got lost and we all know where might I need it.
Very high activity in doing.
It doesn't matter.
We should.
Being having results.
For for the very close 2021, we still.
Making our plan to given the prices and given the the the.
Content that we find maybe for another one Carlos can give more explanation.
The fact that you.
Sure. We underwrote. The study protocol agreed we are planning to extend that we have the ability to extend that after the end of the year.
We know that the call, we probably will be around for way more fine you quarter to quarter more so the distressed. He also that he didn't develop equally by the 2021 needs to see if we can continue we.
Yes, they censored though I.
I agree broadly not higher.
The hair and ongoing quieter, but you see here than average for me at least by 2021, that's the JV strategy. We are developing detailed all the mining plan.
Hi, Dave.
Valuable to develop these threats.
And then.
Bye bye.
The decrease in each case he cannot be thanks.
Oh, the sequence of mining, but he's got underground mine, where we have seen it on the.
We can change I think the we see good.
Right.
Oh.
We wouldn't try to move that up it doesn't put your wife wet.
Yes, sometimes I went that high grading upfront you compromise your reserves.
And no compromise our body longer term. So are you, saying that the underground youre just going to be moving to higher grade areas. So there's no compromise in your reserve basis.
That's correct, we need to be buried cage crucial situation.
The strategies that we divided for panel choke bigger upside without compromising the orbio mining sequence of the mine. So yes, we need to be very occasion Asia's. Another reason, we are working on that right now.
The target he supply to keep up with the high grade.
Well the.
He doesn't do anyone but we need to validate that equally.
He will get back on the shelf.
It's been a big genetic study at this point, Okay, and then maybe I just can I ask one other question Richard shop like when do you expect that line to be back at full capacity in 2021, and then will you be reporting your monthly data like will you be reporting like November October.
Number four X. and November or will you just showing it to Washington and that the quarterly data I'm just trying to understand if it's going to just be showing in the quarterly data monthly or will you be announcing monthly data going forward for us.
In terms of our releases.
For this year, we in order to have the same conspiring to see.
We decided to.
Report monthly our production figures.
So we you should this big nowhere for election.
Please.
Month by month.
And in terms of Tarkwa.
Well Carlos.
We continue.
Yes.
I mentioned before we are right now to give you much at 30% capacity of the processing plant.
If we're on the ground are shared between production will mind.
Mine development and exploration, we were having had delayed they hit them all we all mine development.
We will catch up with the delayed along the next most probably at the January we completed two.
We've reached the point, where we can start making a ramp up from 30%.
Maybe 70% 80%.
So it.
Yes, it's a it's one of the mine to how he more heavily impacted by the call.
Well, we had some instability or how many people we can scaling for a week to week. So they do no plan that well.
Moving from 30%.
Or they.
If you want.
Its own they developing how fast which you felt were arguing gold mine development, we established a ramp up and I will wrap up so it's at.
At this point its kind of uncertain how fast can we go but he said that he did he person.
70% in the early months of 2021.
Okay, great. Thank you so much.
Thank you thank.
And yet only to clarify sorry, and we are going to report and how we're aware production figures.
Hey.
In when need.
And at the end of the quarter, but.
We're going to report that month by month Yeah.
I was just trying to clarify that not unlike December you're going to be reporting just there.
October November number that you're going to report monthly when you were there at the end of the quarter, Yes, yes.
You know January or February.
Ben.
January we should.
Scent for.
Formation.
Okay, Okay, Okay, and if I could just ask one other question just on now I'm just on your dividend policy like what do you need to see to reinstate the dividend.
And.
Yesterday, we coffee the board of directors and and.
[noise] issue too.
To that discussion and we lose pick where our board.
Primary to see reaches the global situation, which is.
The very next future those loans. So then we should take make the decision.
So would it be that you would need to see that all the mines are back up and running at full capacity, including Chaplin No. Co. Then that you feel comfortable at that point is that what you're trying to assess.
Yes, yes, okay.
Great. Thank you so much.
Thank you.
[noise] again to ask a question. Please press star and then one.
Our next question today from Capex coming from BNP Paribas. Please go ahead.
Yeah. Thank everyone. Thank you for all the country or just one question I'm not focused as broken.
And concerning the button, making program.
Hoping to explain.
On a trailing third quarter figures compared to the budgeted one.
Let's move higher.
For them they budgeted one full el Brocal.
So the first Peters recovery with high co great.
Thank you. Thank you for your question.
Yes, this this quarter or something.
A very good quarter for for for for where Am I look at it.
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We have.
Some.
Okay.
Operating.
Mm.
Operating expenses of recovery, we didn't have any disturbance or communities are the only time that school, which situation, but we.
We achieved some stability operating stability.
And also of course, the efforts of our operating people to maintain your production.
Even.
You've been on.
That we.
Yes.
Eight days.
Period. It easement thing this period for one of our plants, we reach is decent stability he and.
The production.
Wes.
Very stable, maybe on Carlos can give us more color of this.
Revenue in the third quarter.
We speed up the.
This treaty or one section of the open pit. So we can reach ahead of time or.
Hi, good area.
In summary, the mining right now we continue to mine around by the war and finish the north face of LTV.
In this quarter.
Later he becomes.
We switch operation.
The south.
Greed copper production because companies on the south side of it.
Higher than it was when we study would be what.
So we start now with him as he should grow what do you mean.
Or are you going to be.
This holiday.
So.
Well, if they increase production was by speeding up the.
Sweeping motorparts, reaching the higher rate, what do you believe or I should say.
And we believe that the promotion.
Well the underground mine.
The production of the dealer theme, we have high grade copper pillar between two to two parts and copper in certain areas of other domain. So we deleted workforce that we have we moved a lot of effort to recover those pillars and bring that production. The processing plant now one of the reasons we have been increasingly.
Production.
We keep up with the traditional corporate EBITDA, we there maybe you could walk.
Of course.
Regarding the woken, making program, yes, and they should be equal, but he was this particular activity of recovery in the high grade copper pillars.
The corporate bullshit Nate.
Very good price in the quarter, so, it's well below thick increasing rates and increasing.
That's true.
So it can be anything.
Hello Hello.
Why did he will follow.
Okay. Thank you very much and one more question could you have more.
More detailed forecast about a fish, especially el brocal.
Capex for the.
Julio Twentytwenty didn't pick up through 2020.
And.
Details about the expected.
Production mix, because I saw that.
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The cookbook projections are Chris.
Well the thing you Didnt when Chris.
Yeah.
Well and four in the terms of course.
We expect finished.
In the open pit.
Yeah, Mike.
Right.
Around the world.
$1800 gas.
Yes I.
I mean, we.
Underground mine around five point.
Two goals.
Allison Golar for on the copper.
In terms of Capex is we are estimating too.
To finish this year.
This year with 20.
$18 million of Capex.
And for the next year, we don't have.
Up to now the the final figure because.
We as I told you before.
In November we have our operating.
Landing stations.
And in that moment, we are going to define the following your capex for all our units.
Okay. Thanks, a lot.
You're welcome.
Ladies and gentlemen at this time, we will conclude the question and answer portion of today's conference at this time I would like to turn the conference back over to Mr. Garcia for closing remarks.
Thank you.
Before we finish to this conference call I would like to present to all of you that our first commitment is to maintain our workforce healthy applying this to exist protocols the warranty their safety in these pandemics.
Then we went to assure that we will continue making great airports, who will go over our output in all our work with the unions as it was before the effects of covered 13.
We still are playing the strategy of working okay, great or with a partner at 14 geology three of those areas so for the upcoming months.
Finally, we want to confirm that we maintain our airport also to preserve our cash position as a very important merger.
It's an area.
Thank you very much for making the time to join us today.
Have a wonderful day.
Thank you.
Ladies and gentlemen that concludes point of insurance third quarter 2020 results conference call. We would like to thank you again for your participation and you may now disconnect.
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