Q4 2022 Compania de Minas Buenaventura SAA Earnings Call
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Speaker 2: Good day, ladies and gentlemen. Welcome to the CompaNIA de Minas Bueno Ventura fourth quarter and full year 2022 earnings results conference call.
Speaker 2: At this time, all participants are in illicit only mode. Please note this call is being recorded.
Speaker 2: At this time, I'd like to introduce your host for today's call, Mr. Gabrielle Thales. You may begin. You may begin.
Speaker 3: Good morning, everyone. Thank you for joining us today to discuss our fourth quarter and full year 2022 results.
Speaker 3: 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. Juan Carlos Ortiz, Vice President of Operations, Mr. Aldo Maza, Vice President of Business Development and Commercial.
Speaker 3: Mr Alejandro Armosa, Vice President of Sustainability, Mr. Renzo Mager, Vice President of Project, Mr. Juan Carlos Alazar, Jolley and Explorations Manager, Mr. Roque Vinaí is Chairman, and Mr. Raúl Vinaí is Director.
Speaker 3: Before I hand our call over, let me first touch on a few items. On Buenantura's website you will find our press release that was posted yesterday after market close. Please note that today's remarks include forward looking statements that are based on management's current views and assumptions.
Speaker 3: While management believes that its assumptions, expectations and projections are reasonable in the view of the currently available information. Your caution not to place and view reliance on this forward looking statement.
Speaker 3: I encourage you to read the full disclosure concerning forward-looking statements within the earnings results press release issues on February 28, 2023. Let me now turn the call to Mr. Leandro Garcia.
Speaker 4: Thank you, Gabriel, and good morning to all and thank you for your attending to this conference call. We are pleased to present the results for 4 quarter of the year 2022 from company EMS-1 Elementary School in Con Buffalo Eastside
Speaker 4: We have to prepare a PowerPoint presentation which is available in our webpage. Before we go further, please take a moment to review the cautionary statement shown on its light number two. Moving on to the light three, the highlights were as follows. The highlights were as follows.
Speaker 4: Four quarters 2022 EDITDA from direct operations was $66.9 million compared with the
Speaker 4: US $59.7 million reported in 4 quarter 21.
Speaker 4: full year EBITDA from direct operations reach 407.1 million. The significant increase as compared to 204.4 million dollars for the full year 2021. And includes 300 million dollars resulting from the sale of the Navin-Turrestake in Janakot.
Speaker 4: For quarter 22 net income reached $68.7 million compared to a 222.3 million net loss for the same period in 2021.
Speaker 4: The 4.421 result includes a net loss of 301 million from these continued operations mainly due to the reclassification of Bonapuenturas Interest in Ganakota.
Speaker 4: The 4.25-1 result includes a net loss of 301 million from these continued operations mainly due to the reclassification of Bonapuensura's interest in Ganakota. School year 22, Medin-Kan was...
Speaker 4: US$602.9 million compared to a $262.8 million net loss for the full year 2021.
Speaker 4: Four-quarter 2022 exploration at Operation UNIX increased to 27.2 million compared to 15.5 million in four-quarter 2021.
Speaker 4: This increase was aligned with the company's revised strategy to increase its focus on exploration in order to extend the life of our old units. Full year 2022, exploration at operating units increased to $80.8 million from $56.4 million to $60.4 million.
Speaker 4: in cool year 2021. Buenaventura's cash position reached $253.9 million as of December 31, 2020. Net debt decreased to $484.6 million with an average maturity of 3.4 years.
Speaker 4: All quarter, 22 capital expenditures were 58.8 million compared to the 32.1 million dollars for the same period in 2021.
Speaker 4: Full year 2022 capital expenditures reached $152 million compared to $90.3 million in last year.
Speaker 4: Full year 2022 CAPEX includes 34.7 million related to the San Gabriel project and 30.4 million related to the June project.
Speaker 4: December 20th.
Speaker 4: In 2022, Cerro de Abreu state a total dividend of $250 million when Aventura received $49.8 million relative to its stake in Cerro de Abreu. The total dividend received by Buenaventura in full year 2022 was $79.1 million. Mining operations at La Sanja were halted in October 2021. The total dividend received by Buenaventura in October 2021 was $69.1 million.
Speaker 4: of US$0.073 per share, ADS aligned with the company's commitment to share all the value.
Speaker 4: Moving on to slide 4, social, environmental and political challenges. Today, Buenaventura's on-site operations have been operating normally, while off-site logistics have encountered some delays. Despite the social issues, there has been no damage to Buenaventura's property or assets.
Speaker 4: and all other one of the mining assets are operating under normal conditions. Moving on to slide 5, financial highlights. Total revenues during the 4th quarter were $246 million, which is...
Speaker 4: 3% lower in comparison to the fourth quarter of 2021. The full year 2022 total revenues decreased to $825 million compared to $901 million during the full year 2021.
Speaker 4: As we went from before, our EBITDA from direct operation for quarter 2022 was $77 million in comparison to $60 million during the fall quarter of 2021. EBITDA from direct operation for the pool year 2022 decreased to 173.
Speaker 4: million dollars in comparison to 204 million dollars during the four years of 2021. These seniors, a fluke, the Yanakocha Transuction Effect.
Speaker 4: Also our net income for 4 quarter of 2022 was $69 million in comparison to a net loss.
Speaker 4: of 2022 million dollars during the same period in 2021. That income for the full year of...
Speaker 4: 2022 reached $603 million compared to a 263 million net loss for the full year 2021. The CPEX increased to $59 million in the fourth quarter of 2022 compared to the $32 million in the fourth quarter of 2021.
Speaker 4: In the full year 2022, Catex total 152 million dollars, a 68 increase in comparison to the full year of 2021. Moving on to slide 6 and 7, attributable production. The goal of the Luto production in the fourth quarter.
Speaker 4: of 2022, was 53,000 ounces, which is 10% lower than the failure reported on the same quarter and the previous year. This decrease is mainly explained by lower production and top at Cambodia in line with them, my main sequence of low and lower grade.
Speaker 4: The full year of 2022, total vote at the vote of a production was 206,000 ounces, 4% higher than the same period in 2021.
Speaker 4: Silver attributable production for this quarter was 1.7 million ounces, which shows a decrease of 25% compared to the figure reported on the post-warter of 2021.
Speaker 4: During the full year of 2022, Silver atributo for auction was 6.8 million on, 43% lower than the full year of 2021.
Speaker 4: This decrease was mainly explained primarily due to the suspension of Huchukuchakwa operation as was previously announced and a change of the mind-blowing sequence at El Broca.
Speaker 4: In the fourth quarter of 2022, 5,000 metric tons of zinc were produced, a 45% decrease compared to the fourth quarter of 2021. The full year, 2022, zinc production reached 28,000 metric tons, 33% lower than the same period in 2021. In the case of lead, equity production was around 3,000 metric tons in the fourth quarter of 2022.
Speaker 4: which is 30% lower in comparison to the fourth quarter of 2021. The full year of 2022, late production was approximately 15,000 metric tons in comparison to the 21,000 metric tons in 2021. Finally, our corporate attributable production for the fourth quarter of the year was close to 31,000 metric tons during the full year 2022. The full year of 2021, late production was approximately 15,000 metric tons in 2021.
Speaker 4: 116,000 Mbq, 13% increased compared to the previous year of 2021. Moving on to slide 8 all in sustaining cost and cost applicable to sales. They all in sustaining cost from our direct operations in the full year 2022 increased by 2%.
Speaker 4: $1564 US dollars for an ounce of gold. The cost applicable to sale for the food here 2022 whereas for those.
Speaker 4: US dollars for a ounce of gold. The cost applicable to say for the poor year 2022 whereas for gold alpha
Speaker 4: $1,153 per ounce, which is 4% lower than a year ago. For silver, 19.60 US dollars per ounce, which is 4% higher than a year ago. For late, 1329 US dollars per metric tons, which is 10% lower than a year ago. For copper.
Speaker 4: $6,613 per metric ton aligned with the full year 2021 fee. Finally, in the case of zinc, the cost applied to sales was $2,812 per metric ton, which is $2,812 per metric ton, which is $2,812 per metric ton.
Speaker 4: 24% higher than a year ago. Moving on to slide 9, 5 blind of Georgia's update.
Speaker 4: Here will be a presenting one is not short the current development level for each one of our projects Moving on to the slide 10, sorry, San Gabriel
Speaker 4: Engineering and procurement work of side activities progress as planned by a significant 64% and 83% respectively.
Speaker 4: relative to a total target fit for the project completion. These will provide reviews overall project uncertainty, a potenti-appotation, an a potenti-enabling recovery of a portion of time lost related to this project relative to a targeted completion.
Speaker 4: Chin Al ales amco EPCM contract and awarded power line boo contractmoving on to a Slide 11: pure.
Speaker 4: that is the second set of own site column, metallurgical testing and ROM, metallurgical imaging tests, environmental impact assessment and social engagement field work progressing as planned. Thank you for your attention. I will hand it over to the operator to open the line for your question.
Speaker 2: Appearance, Appearance, Appearance, Appearance, Appearance, Appearance, Appearance, Ladies and gentlemen, at this time we'll begin the question and answer session. To ask a question you may press star and then one, using a touch-to-entell phone, to withdraw your questions, you may press star into. If you are using a speaker phone, we do ask you please pick up your handset prior to pressing them.
Speaker 2: from Morgan's family. Please go ahead with your question.
Speaker 5: Thank you. Good morning, everyone. Thank you for.
Speaker 5: the presentation. My question, Leandro, is maybe on on topics, right? The guidance of 350 to 370 came above market expectations. So if you could allude or explain a little bit what draw of this, I think it's also a little bit higher than what you had the company had mentioned.
Speaker 5: before it was planning on expanding in 2023. So you can provide maybe a little bit of color as to what is driving that increase or a parent increase. And also what are the expectations in terms of reaching the gap between your fairly reduced casual operations, at least as of lately and these caps?
Speaker 5: I don't know if you can comment maybe Saturday, dividends is what is going to bring that gap or if you will have to issue that or maybe are you planning on selling some assets. If you can maybe address this question on free cash flow that would be interesting to understand what the company is planning. And then we notice obviously the increase in exploration expense is spending.
Speaker 5: Can you talk about what the budget is for the two lines that flow into your income statement, your exploration in operating units and the exploration in non-operating areas for 2023? Thank you.
Speaker 4: Thank you Carlos. And the increase, the increase, the topic for the following year, mainly is explained because of the, the topic we have in San Gaville and we have to continue during the work on to nature. And for the difference of,
Speaker 4: the cash and the topics we are going to need in 2023. We do have a plan, we have taken also the dividends of several levels and maybe some financing is needed.
Speaker 4: for this year to go for the increased capital. Maybe Daniel and Carlos can give you more color of those questions. Thank you, Landro. Thank you, Carlos, for your question. As Landro mentioned, this increased independence for the capital of 2023.
Speaker 4: is due to the current forward that we have from the delays at Sangha Real in 2022. The figure we expect for this year, 2023, is around $350 to $360 million. The breakdown of this is at Sangha Real, we will need around $119 million for the developing June past close to $50 million and at Elbrocal.
Speaker 4: the tail end dam management to be able to expand the the plant capacity and the capacity of the of the tail end dam, we will devote around 15 million dollars there. In terms of the exploration budget for 2023 we are expecting between 80 and 90 million dollars.
Speaker 4: the distribution of these are close to $50 million in exploration for our operations and $30 to $35 million to our Greenfinch projects.
Speaker 4: going back to how we're going to fund these topics requirements for this year. We have 250 million dollars in cash that we are going to use. We expect, as the undermanage, some dividends from Sarabherty. They could be in the order of $100 million, $120 million.
Speaker 4: And of course, when we need the cash, we could be raising something close to $50 million or $100 million. As we have already mentioned, we have between 50 and $100 million already committed with local banks.
Speaker 5: Thanks for those details, Ania. So, do you not think that the company will have to need, will have sell assets? Not at this point in time, Carlos.
Speaker 2: And, Arna, once again, if you would like to ask a question, please press star and then one on a touch tone telephone. To withdraw your questions, you may press star and two. Again, that is star and then one.
Speaker 2: And, Arna, once again, if you would like to ask a question, please press star and then one on a touch tone telephone. So, withdraw your questions. You may press star and two. Again, that is star and then one to ask a question.
Speaker 2: And at this time, we have a follow-up question from Carlos Stalba from Morgan Stanley . Please go ahead with your follow-up. Thank you, guys. Just coming back to the sun.
Speaker 5: Leandro, what is the level? So you mentioned that the leaching will continue as long as it is profitable to do so. What is that level in terms of gold prices? And for how long, how much more material do you think you can, your potential is strike there?
Speaker 6: Thank you Carlos. The plan output this year is 5,000 ounces this 2023. We will continue in Eulichin, La Sanca, during all the time we are...
Speaker 6: converting this unit and developing the proper gold so-fi project. Contables, I don't know if you want to comment something about the Shanghai DJN mode...
Speaker 4: Yes, sure, Leandro. Currently we have a very conservative budget of about 5,000 dollars of gold to be struck from the existing reaching path in 2023. We expect to be above that figure, but it's a very conservative initial figure because it's something that you're learning in the process how much you can get out.
Speaker 4: In parallel, we are working a project to do some geophysics on the path to know what are the kind of dry areas where the solution is not running through that could be potentially wet with additional drilling in order to bank with low pressure. The S&I solution in order to extract gold from the dry areas that the past were not completely legit. Because of the way the path is being built. There is some local experience between that with success.
Speaker 5: So it's a kind of innovative process that we will build on this year in order to extend a profitable or economic leaching of the path for we don't know how much, but probably one or two more years to go. Thank you for Carlos. And so the cost attributable to sales La Sanja is around.
Speaker 5: was in the fourth quarter at least, 1,649, which was better than the full year of 1,820. So around those levels, is the break even potentially and below that, would you stop leaking or would you just carry on and extract all the material for the next one to three years that you mentioned? Yeah, well, there's a good question because the calls actually record all the expenses that we make in the La Sanja unit.
Speaker 5: It includes also part of exploration, part of the Progressive Closure that we do in some other areas that we are not going to be mining in the future. Some studies that we do regarding the Solved-by projects. So we have a separate kind of split cost account for what is related to the extraction of gold from the path in addition to what we do for exploring and developing the culprer.
Speaker 5: copper gold sulfide projects that we have in the same footprint. Kind of, it makes together right now, that in our accounting, we will follow what is profitable from the leaching operation itself, regardless of what additional cost we need to do to develop the copper sulfide project in La Sanja.
Speaker 2: Okay, all right, thank you. Once again, if you would like to ask a question, please press star in one, two, withdraw yourself from the question queue you may press star in two. Again, that is star in one to join the question queue. Okay.
Speaker 6: and have a wonderful day.
Speaker 2: Thank you very much again. Ladies and gentlemen, that concludes Winneventura's fourth quarter and full year 2022 earnings results conference call. We would like to thank you again for your participation. You may now disconnect your lines.