Q4 2020 Compania de Minas Buenaventura SAA Earnings Call
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Good day, ladies and gentlemen, and welcome to the company a day and Minas Buenaventura fourth quarter 2020 earnings Conference call.
At this time all participants are in 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 Rodrigo and Czech and Poland Investor Relations. Mr. A checkup on you may begin.
Thank you good morning.
Good morning, everyone and thank you for joining us today to discuss our fourth quarter 'twenty and 'twenty results.
Today's discussion will be led by Mr. <unk> <unk> CEO.
Also joining our call today and for your questions Daniel Domingos.
CFO, Mr. Juan Carlos Ortiz bus space and the operations.
Although masa, our numerous spacing and of business development and business development and commercial.
100, and most of my question of sustainability and Green from market.
On the corporate per monitor also available for your questions will be broken and now use our share.
This conference call will include forward looking assumes which are subject to various risks and uncertainties.
Of course, our actual results to differ materially from these statements any such statements should be consuming a conjunction with go generic statements, we've seen our expertise and risk factor discussions.
And I encourage you to read the full disclosure concerning forward looking statements. We have seen the press release, we filed today.
'twenty.
2021 and.
An issue and it's important to note that these statements include expectations and assumptions.
Which will be shared related to the impact of Covid.
And the team from damage.
And on slide two our forward looking statements also provides information on risk factors, including the effects related to COVID-19 that could affect our financial results. In particular, there is significant uncertainty about the duration and competitive impacts of COVID-19 pandemic. This means.
When and where he sold it could change at any time and the impact of COVID-19 on the company's beats and results and outlook is our best estimate based on the formation and below a substitute it.
And.
Please note that in the interest of safety.
Utilizing a more beautiful approach and exercising social distancing while conducting this call this quarter.
We would ask you to please bear that in mind in light of any potential technological.
And which could book.
At this moment, let me now turn the call over to landlords here and Andrew Pease go ahead.
Thank you Rudy.
Good morning to all and thank you for attending this conference call.
Before we start the presentation.
We would like to wish you your family and friends health and wellbeing and these difficult times.
We are pleased to percentage of results for the fourth.
And what the 2020 full company and that's what I mean.
We have prepared for.
Our presentation, which is available and what the.
And.
Before we go farther and please take a moment to review and a cautionary statement shown on slide two.
Please consider the disclosure related to the COVID-19 and Dave.
Moving on to slide three.
Highlights were as follows.
EBITDA from direct operation reached $59 1 million from fourth quarter.
And when you compare.
$73 9 million U S non that.
And reported in both water.
<unk>.
Okay.
Adjusted EBITDA, including adjusted company.
199, and 190 to one 4 million.
183 $7 million on.
Good day.
Capital expenditures and worked its way through it and you were $88 million compared to 39 6 million for the same period.
And it also may 19.
Book, What's the twin and those was $60 million as compared to a net loss of three.
One 7 million for the same period.
And then day.
The companies people, who are making program continued to brokerage account reviews naval using before quarter 'twenty, two and the broker and focused primarily on one of them.
Simple meals.
And there's no cost mines during 2000 and Sweden.
And then do that cash position reached.
And to that $35 million for the fourth quarter, two and each way.
The company has.
<unk> mine related fatalities during the full year 'twenty two.
Moving on to slide four financial highlights total revenues during the fourth quarter were $236 1 million reduce.
Reduced in line with a full quarter of 2019 and.
Increased commodity prices, excluding the reported fourth quarter 2020, net sales per use these spikes and they've used volume sold due to the adverse effect of COVID-19.
EBITDA from our direct operations who've worked through 'twenty, Jordan was $59 1 million dollar income.
<unk>.
83 $9 million and therefore.
Joining me on Nike.
This was mainly due to the lower production coming from wood to Chop Woe is me no.
<unk> achieved full capacity and deployed previously and all.
Also lower per engine from tumble value negatively affected.
And we think lingo will your affiliates and before it was 192.
Maybe I'm going there, which is 5% higher income.
<unk> simply the fourth quarter.
2019, this increase mainly comes from better results from several of them.
And the net loss in this quarter was $60 million compared to a net and also $53 7 million you as long as a year ago. These results continue and deferred stripping cost 11, one speaks from my little guidance, what did you need it, but oh vibration and the technical and economic parameters on different share.
Additionally, it considers at cost.
100, and join the four 8 million Boe and less from you on their culture related to our net.
And the mind share.
The Capex has decreased to 88 million going back from the fourth block 22, and compared to 39 6 million daus.
Right.
And the free cash flow in the fourth quarter of 'twenty, and 'twenty was negative $14 million compared to negative <unk> 65 for 9 million below your cash.
And the fourth quarter of 2000 and Nathan.
Moving on to slide five on cheeks attributable production.
Total goes I think we don't book.
And in the fourth.
'twenty 'twenty was 79, five sponsored pulse, which is 31.
Our scent nowhere and if and when you reported on the same quarter of the previous year.
This decrease was mainly explained by lower production and tumble value and then of course.
These are attributable production for the quarter was $3 7 million on.
It shows a decrease from 35.
And compared to the figure there.
On their fourth quarter two.
And then maybe.
And he is mainly due to net production in our.
Chuck one months and.
The fourth quarter of 'twenty, two and 11 5000 metric tons and worked with us and 16 degrees and sheepskin.
Per cent decrease compare of the fourth quarter EBITDA and this.
And this is mainly due to a 60 40, but we seem to lunch and we'll see.
And what would you take on line.
And the Gainesville net.
Equity production was exploring 8000 metric tons in the fourth quarter of 2002 and did you say.
84% lower and comprising more work their book.
2019.
Finally, our corporate and see what the hope on.
Election for the fourth quarter and the year was 25, four pumps and metric zone.
This reduction is mainly explained by <unk> 24 per cent decrease and production.
Our guidance on 18 degrees on production with each other loans.
Moving on to slide seven and all in sustaining and growth and cost applicable to say.
And sustain the all in sustaining and growth from our direct operations from Jamie training increased to 14.
And at $74 per ounce of growth, mainly due to lower gold ounces sold and the per year.
The cost applicable to sales.
For 'twenty, two and were as follows.
For gold.
1087, U S loans, which is 10% higher than a year ago.
14, 18, and 29 U S dollar per ounce, which is 52% higher than a year ago.
<unk> 1174 years dollar where it makes it zone, which is 5% lower than a year ago.
Copper production and $133 per metric ton, which is 4% lower in comparison to a year ago.
Finally, the day searching the cost applied to say less.
$1935 per metric ton, which is spices and lower than a year ago.
Moving on to slide eight day.
People can make and program worked with plenty of Georgia.
And so that's what really come from these people, making program, we are gaining mining cost efficiency that partially upset by lower production outlook.
As you can see results for the fourth quarter were positive generating eight 1 million going on for Felicia.
Moving on to slide nine five.
It's a big key.
And we person.
One is snapshot the Korean development moving well.
Each one of our book.
On slide 10 and Guardian.
We completed a feasibility study, but what I'm, saying.
And so we completed you on logical confirmation on threes with no major impact on net Oh great.
The construction is delayed until the second call.
And in 'twenty one.
And to the minions, two eh and <unk>.
And then there's a decent growth.
We initiated and their concerns about baby food cost.
We've got baby.
Right.
Vision process due to Covid second waves and go and political situation.
Moving on to slide 11.
You briefly said really does value has been updated.
And new component arrangement, but and.
We are currently working with the community to start going on there's activities by April 20 genuine.
Additionally, we are performing right leach and pace.
Excellent and results and they are on.
And the collection.
Yeah.
The study.
And total Minto.
And that's.
And it.
Moving on to.
And it's like Joe real simple, we completed a feasibility study by some.
They are probably the guy from me.
West, Texas, when we executed and we are waiting for a flurry piece revision ankle.
Moving on.
2014.
So what day, so if I.
We have updated and confirm the scoping study and three or six tons and tons per day copper concentrate.
We are starting at five years.
Good day.
And this moment, we would like to share our guidance on all work.
And Maine.
And then sort of guidelines book to Dunson and 'twenty one.
And so on sales.
We will be and the range of 800.
$850 million 950 million book.
These sales assumes.
And metal prices of gold eight.
18 Congress Seaway.
$23 per loans late $1850 per ton.
$7250 per ton on.
Zinc.
23.
With this we will.
We are expecting to have on EBITDA from our direct operations and the range of one kind of and $60 million $180 million.
And eating and building our affiliates will be vice president and $60 million to.
600 million book.
In terms of Capex, our sustaining capex will be between.
50 million, Golar, and 60 million Thunder and.
And on where projects, including and doing Bard books on Garvin, but not the construction will be between 30 and 35 million.
Thank you for your attention I will hand, the call back to your behavior to open the line for questions operator.
And the circle of life.
Thank you very much we will now begin the question and answer session to ask a question.
Please press Star then one on your telephone keypad, if you're using a speakerphone. Please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
And the first question today comes from Carlos de Alba with Morgan Stanley. Please go ahead.
So the first question is just on on the Capex and landed on that you just mentioned on how much of that day to 35 east Eastern Gabrielle.
And and yeah.
And just to just to know how much did you guys aren't spending on that one day.
The second question is regarding day.
Ongoing dispute with us and that.
Can you give us kind of day, please and what are the latest.
I understand and are based on the latest and brand new leases on that matter and the company may have to start.
And so on and some of these money and how is the company and planning on.
And on Dressy yeah.
Funding and financing the payments for the Mad and any updates on the legal front, Oh, Judy Judy shell Rick.
Appeal that you are moving forward in order to try and avoid to to make these payments and avoid these payments.
Thank you very much.
Thank you Carlos and drink.
Your first question the Capex.
And you can see the porcine Guardian.
And the.
Great.
Just do you view is $19 million.
And in terms for work.
Worked on related to some net.
And there is there is no news from the legal side and the legal age of each.
Of this controversy, we continue to do disputes being injured in the judicial area, our our rights and in terms of pay and we are.
Finishing the strategy to prepaid lease so net.
And payment directly to resume that and.
And we are on.
As you can imagine we are.
And constructing these this is strategy using the hey, maybe we will and should be by them.
And your sales.
Non core assets or and also when we should look for a financial facility in terms of volume.
Loans or <unk> and the older.
And two and we should be doing this all of these studies will be done.
And the Atmos and June of this year.
And when we.
And you can get from our banks, we will inform you and which are the steps we are taking on.
Thank you.
Maybe.
Danielle guidance.
Try and give you some color on abuse and diseases.
Another couple of months.
Thank you Dan and I'll just.
Wanted to get a little bit more detail on the capex.
And as for your 2021.
And then on Romania.
We are planning to execute and $19 million from these San Gabriel represents $20 million.
And our direct operations $55 million and the remaining 15.
We'll go to the <unk>.
Other countries like Turkey and realistic.
Thanks.
Thank you very much.
And once again, if you'd like to ask a question. Please press Star then one.
And our next question will come from Tanya.
Jacuzzi go neck with Scotiabank. Please go ahead.
Great and good morning, everybody and I hope everyone as well.
Thank you for taking my question.
I just wanted to circle back just one more for our guidance if I can is there any more.
EBIT improvement Youre expecting from the Debottlenecking program and 2021 or have you completed that program.
Thank you. Thank you. Thank you and thank you for your for your question the Debottlenecking program.
And I saw a duration of three years and it has and on December 20 trading now we are working on a new program.
And at least based on sleep and continuous improvement but.
And we now we are focused on and we go over the full capacity on our.
Our plants and nowhere mic on.
And may continue and nowhere.
The increase in June.
And to increase our also increase our exploration program and.
And for that we need from the other all on where our workforce to half or a better performance and.
And you know we're a unit.
Okay. So given that the focus on exploration would you be able to give us the guidance for your exploration spend.
And so you know direct and uncertainty here Elliot.
Oh for 'twenty and 'twenty one.
And you just told you we've done we've got and saying the we've been public our our guidance for exploration and investment for this year considering the.
The briefing on the on the brownfield.
Larry just in China, and our own mines, we will we will.
Foolish on our way.
Perfect. Thank you very much.
Okay, and then just two other questions and fight back.
And just wanted to get them to.
And the circle back on just on the asset side.
And can I just get an explanation on what is exactly happening at two of your mines that Campbell mile. We seem to have some quite a drop in both your goals and.
Zinc recoveries.
I'm just trying to understand what's happening on Campbell mile and then also what's happening and wood to chop on the silver side, where the recovery per week. There also.
And it will be up there with.
And as we are.
Here we.
Juan Carlos Ortiz and.
And if you abuse resistant nation, and then kind of a value on the juggler issues.
On government support and body.
Yes, Hello, everybody and thank you dependent on equation.
And regarding Bumble Maya.
And the last quarter, we had one section of the mine.
Yes.
And that's all the deposits and plan and we had said.
Behavioral growth.
And as you saw from so.
We tried to given that you go from there.
No.
And so much of a virtual maybe on the processing plant and unit volume from the growth side.
And so.
And we need to change multiple day.
And thank you Luc and myself.
And that's D day.
So net net.
The total body and long lead time.
Yes.
And David.
And that was net up independent from the previous quarter.
And then.
So we have some.
And time.
On the development is done.
And we maintained and to plan.
Right.
And then.
Yes.
And looking at that.
And we haven't seen indicated that he needs.
And this quarter.
From the chocolate flow.
We think the great balance CEVA net people areas and has a lot of London. So we need to make a trade off for cleaning and the more that we produce so we need to sacrifice on liquidity.
Good commercial grade concentrates.
Moving to tableau.
And in April.
And the drop and the recovery would.
Would you jump ball and the last quarter.
Okay. So just going forward.
These these recoveries that we are expecting from me two line, what we saw on Q4.
For the people from 41.
And right now.
This relationship on the budget so its all more pent up I'll go backwards.
Okay.
And then my final question I, just wanted to come back on just the funding.
Your options for funding.
The you know your your tax Bill.
Thank you we mentioned non core asset sale.
I just wanted to try and have you you know whether and non core assets would be our power plants and if you were.
Would consider equity.
Issuances as one of your option.
Thank you Sanjay.
We will not consider it would be and there were options, we will consider on a program of both issues and the shale.
And some of our US one day.
And it can be.
And so you mentioned one zone and.
Also from the conduct due and a group or a group book then.
And in that.
Range and on.
Those are the easy yes, it will be there.
You bet.
Okay, great. Thank you so much and good luck.
Thank you Sandra.
And the next question will come from Leopoldo Silva with Lira and V. L. Please go ahead.
Hi, guys do you hear me.
Is there a volume.
Okay. Thanks, well.
I guess my question is regarding and.
And reserves I see that your bumper on time on Miami Gold reserves are lower than.
And those at the beginning of 'twenty and 'twenty.
So and.
Now that we have.
Hi, and Gulf prices.
And along the.
The year have said that you were happy with what they read preliminary results that we that you were getting with exploration and these mines.
What shall.
Sharon we have expected a higher.
Gold reserves and what happens.
And in these two mines.
What.
Is that or.
Maybe I don't know 60 and hundred forego that's on average not all of the goals that you could mine.
And at these prices.
And he.
He is a book.
First of all you have to keep in mind that.
And last year.
And we're also I think that any area on exploration for.
And what was the Kobe.
We.
And I fell behind in our programs for volume, we get people to make all the drillings on and on all the work we did and <unk>.
And the Ebola related.
Operations.
However, as you say, we we are very optimistic, but we need and have the time to convert and.
And did that pertain and shell in.
And reserves or inferred and start.
So we do have and this year, we will have a and I think and <unk>.
And then in Greece, and in our targets and in our results.
Maybe also on golf and those kind of give you more and.
And in Colorado and Utah.
And reserved smucker.
Thank you remember that.
And the paper or coupon book.
We passed on discovery.
And Andrew mentioned it was.
Nathan and thanks, <unk>. So there is still a day.
Potential legal battle and.
And not enough time to move all these new discoveries and to be measured and indicated category.
So essentially leave alone by repo good consulting arrangement.
Yes.
And area.
And our operations Paul.
And Paul.
Got it.
And good results on the island.
On the year.
Keep on data, but our deposits that we take the formation.
And the case up on the margin.
It's a very high grade vein.
So there is no much all become standard.
And 50 countries.
Everything they do.
And the very high day.
Much less.
Low grade operation on low grade Hollywood, along the day, so the multiples increasing the price and listen to them.
The new leases and instrument and so.
It came from.
We are working on and installation and we had some raw material.
Right now.
And it's making deals.
<unk>.
It's a little bit late durations and blah blah blah.
On it.
Okay and.
Do you.
And taking that do you believe the twin Twain tool.
And then on the used forward could be.
You could lift the production on these mines or would you expect.
And rather to maintain what you have in guidance for 'twenty and 'twenty one.
Indicating flow Holdco pump, which day.
To keep running at around the guidance labor, that's Super valuable 40, and 45000 ounces of gold and.
Indicators from memorial.
Well, yeah, a little bit less and the guidance of EBITDA maybe.
And I won't say the balance on our liquidity.
These are loans that will be balance.
Bob.
I'd like to work and the places that debate.
It depends on.
And just.
While the guidance for next year.
Okay, all right thanks very much.
And once again, if you would like to ask a question. Please press Star then one.
And again pressing Star then one will allow you to ask a question.
Ladies and gentlemen, this concludes our question and answer session I would like to turn the call back to management for any closing remarks.
Thank you Sir.
Before we finish today's copper and coal.
I want to thank you again for making the time to join us today.
And these are wonderful day.
Be safe and see you soon.
Thank you.
And thank you Sir.
Ladies and gentlemen that concludes guinta and tourists fourth quarter 2020 conference call. You may disconnect your lines. Thank you.
Thank you.
Thank you.
Okay.
Yes.
Okay.
Okay.
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