Q1 2024 Compañía de Minas Buenaventura SAA Earnings Call
Good morning, the company you're de Minas Buenaventura Conference call will start momentarily I'll repeat the company de Minas Buenaventura Conference call will start momentarily. Thank you for your patience.
Operator: Good morning. The Compania de Minas Buenaventura conference call will start momentarily. I repeat, the Compania de Minas Buenaventura conference call will start momentarily. Thank you for your patience.
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Operator: Good day, ladies and gentlemen, and welcome to the Compania de Minas Buenaventura First Quarter 2024 Earnings Results Conference Call. At this time, all participants are in a listen-only mode, and please note that this call is being recorded. I would now like to introduce your host for today's call, Mr. Gabriel Salas, Investor Relations Officer. Mr. Salas, you may begin.
Gabriel Salas: Good morning, everyone, and thank you for joining us today to discuss our first quarter 2024 results. Today's discussion will be led by Mr. Leandro Garcia, Chief Executive Officer. Also joining our call today and available for your questions are Mr. Daniel Dominguez, Chief Financial Officer, Mr. Juan Carlos Ortiz, Vice President of Operations, Mr. Aldo Massa, Vice President of Business Development and Commercial, Mr. Alejandro Hermoza, Vice President of Sustainability, Mr. Renzo Macher, Vice President of Projects, Mr. Roque Benavides, Chairman, and Mr. Raul Benavides, Director.
Gabriel Salas: Good day, ladies and gentlemen, and welcome to the company of de Minas Buenaventura first quarter 2024 earnings earnings result conference call. At this time all participants are in a listen only mode and please note that this call is being recorded I would now like to introduce your host for today's call Mr. Gabriel salaries Investor Relations Officer.
Leandro Luis Martin Garcia Raggio: Mr. <unk> you may begin.
Speaker Change: Good morning, everyone and thank you for joining us today to discuss our first quarter did it before our results.
Gabriel Salas: Today's discussion will be led by Mr. Leandro Garcia Chief Executive Officer.
Gabriel Salas: Also joining our call today and available for your questions Army Stared at Aneel Domingos, Chief Financial Officer, Mr. Juan Carlos Ortiz, Vice President of operations, Mr. Aldo Masa, Vice President of business development and commercial Mr. Alejandro <unk>, Vice President of sustainability Mr. Lorenzo.
Gabriel Salas: Sure My especially in the project Mr. Rocca in that he is chairman and Mr. Already now you say Victor.
Gabriel Salas: On Buenaventura's website, you will find our press release that was posted yesterday after the market closed. Please note that today's remarks include forward-looking statements that are based on management's current views and assumptions. While management believes that its assumptions, expectations, and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on these forward-looking statements. I encourage you to read the full disclosure concerning forward-looking statements in the EARNINGS RESULTS press release issued on April 29, 2024. Let me now turn the call to Mr. Leandro Garcia.
Leandro Luis Martin Garcia Raggio: Before I hand over call over let me first touch on a few items.
Leandro Luis Martin Garcia Raggio: Where their interest website, you will find our press released at West posted yesterday after the market close.
Leandro Luis Martin Garcia Raggio: Please note that today's remarks include forward looking statements that are based on management's current views and assumptions.
Leandro Luis Martin Garcia Raggio: While management believes that each assumptions expectations and predictions are reasonable in view of the currently available information you are cautioned not to place undue reliance on these forward looking statements I encourage you to read the full disclosure concerning forward looking statements within the earnings results press release issued.
Leandro Luis Martin Garcia Raggio: On April 29, 10 didn't before.
Gabriel Salas: Let me now turn the call to Mr. Leandro Garcia.
Leandro Luis Martin Garcia Raggio: Thank you good morning.
Leandro Luis Martin Garcia Raggio: Thank you, Gabriel. Good morning to all, and thank you for joining us today to discuss the quarterly results of Compania de Minas Buenaventura. On slide two, there is our cautionary statement, which is important information that I encourage you to read.
Leandro Luis Martin Garcia Raggio: Thank you for joining us today to discuss our reported results.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: Yes.
Leandro Luis Martin Garcia Raggio: Turning to slide two.
Leandro Luis Martin Garcia Raggio: Our cautionary statement.
Leandro Luis Martin Garcia Raggio: That information to leg quarters due to weak.
Leandro Luis Martin Garcia Raggio: Okay.
Leandro Luis Martin Garcia Raggio: So.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: Debate, we will be discussing our performance for the first quarter, So I need to report.
Leandro Luis Martin Garcia Raggio: Today, we will be discussing our performance for the first quarter of 2024, highlighting key achievements and strategies moving forward. After the presentation, we will be available for our Q&A session, where our team will be happy to answer your questions.
Leandro Luis Martin Garcia Raggio: Key achievements and they stuck with us moving forward.
Leandro Luis Martin Garcia Raggio: The presentation will be available for you.
Leandro Luis Martin Garcia Raggio: On a section.
Leandro Luis Martin Garcia Raggio: Our team will.
Leandro Luis Martin Garcia Raggio: To answer your questions.
Leandro Luis Martin Garcia Raggio: That makes sense.
Speaker Change: I would like to highlight a few key areas that contributed to our strong first quarter.
Leandro Luis Martin Garcia Raggio: I would like to highlight a few key areas that contribute to our strong first quarter 24 result. Our EBITDA from direct operations for the first quarter increased 83% compared to the previous year, primarily driven by improved performance at El Brocal and Jumbo. This is also reflected in a higher EBITDA margin of 38% compared to 28% from the previous year. First quarter, 24 operating income was $46.9 million compared to last year's $12.6 million.
Leandro Luis Martin Garcia Raggio: So.
Leandro Luis Martin Garcia Raggio: Our EBITDA from direct operation.
Leandro Luis Martin Garcia Raggio: <unk> for the first quarter increased 83% compared to the previous year, primarily driven by improved performance of it.
Leandro Luis Martin Garcia Raggio: This is also reflected in there.
Leandro Luis Martin Garcia Raggio: Higher EBITDA margin of 38% compared to 18, 8% from the previous year.
Leandro Luis Martin Garcia Raggio: Third quarter operating income reached 46 $49 million compared to the last year.
Leandro Luis Martin Garcia Raggio: Yes.
Leandro Luis Martin Garcia Raggio: Copper production increased 26% year-over-year, driven by a steady production rate at El Bocal, which surpasses 10,500 tons per day in the underground mine. Chivio production reached 3.1 million ounces, a significant increase compared to the 1.3 million ounces produced last year for the same. These 1.5 million ounces come from Chaco and Yuma, where we got approval of a final mining operating permit earlier than expected. However, oil production decreased 4% year-over-year, reaching 36.5 thousand ounces since we are now mining lower rates in Ocampa and Tamaulipas.
Leandro Luis Martin Garcia Raggio: Copper production, increasing 26% year over year, driven by stay these provisional rate Okay got it.
Leandro Luis Martin Garcia Raggio: Gotcha.
Leandro Luis Martin Garcia Raggio: Then.
Leandro Luis Martin Garcia Raggio: 500 Boes per day.
Leandro Luis Martin Garcia Raggio: Right.
Leandro Luis Martin Garcia Raggio: Chile production reached $3 1 million or a.
Leandro Luis Martin Garcia Raggio: Second the increase compared to the one 3 million ounces for reviews. This year for the same period.
Leandro Luis Martin Garcia Raggio: From these 1.5 neither Olson.
Leandro Luis Martin Garcia Raggio: Chuck.
Leandro Luis Martin Garcia Raggio: We got approval of the final mining operation.
Leandro Luis Martin Garcia Raggio: Okay.
Leandro Luis Martin Garcia Raggio: Oil production increased 4% year over year, reaching <unk>.
Leandro Luis Martin Garcia Raggio: 36 five.
Leandro Luis Martin Garcia Raggio: Awesome.
Leandro Luis Martin Garcia Raggio: Since we are now mining lower grade.
Leandro Luis Martin Garcia Raggio: Right.
Leandro Luis Martin Garcia Raggio: We are pleased to inform you that the dividends from Cerro Verde were received on April 26, last Friday. These dividends will strengthen our overall financial standards. Buenaventura's capex in the first quarter 2024 totaled $58 million, which includes $38 million allocated to the San Gabriel project. Our cash position reached $174 million, with a total debt of $699 million.
Leandro Luis Martin Garcia Raggio: We are pleased to inform that deviates from sort of a little bit where received April 26.
Leandro Luis Martin Garcia Raggio: These events will strengthen our overall financial yourself.
Speaker Change: Well I'm going to have Capex in first quarter 2024 total.
Leandro Luis Martin Garcia Raggio: Maybe I'm doing that which includes $38 million allocated to the signs already of course.
Leandro Luis Martin Garcia Raggio: Our cash position reached 174 million with.
Leandro Luis Martin Garcia Raggio: Total debt of 699 days.
Leandro Luis Martin Garcia Raggio: We continue delivering the company, reaching a net debt EBITDA ratio of 1.78 times, the lowest in two years and within our target. Moving on to our cost structure in slide 4, per quarter, 24 all-in sustainment costs have been reduced by 58% year over year. This reduction is primarily attributed to the copper production at El Bocal and silver contribution from... However, it is important to mention that part of the YUMPA cost has been considered to be cut. Normalized oil at sustainable costs should be around $3,600.
Leandro Luis Martin Garcia Raggio: We continue.
Leandro Luis Martin Garcia Raggio: Daily regime, the company, reaching a net debt EBITDA ratio of 178 times lowest in the two years two years and within our target range.
Leandro Luis Martin Garcia Raggio: Moving on to our cost structure and its rightful place.
Leandro Luis Martin Garcia Raggio: First quarter 24, all in sustaining costs reduced.
Leandro Luis Martin Garcia Raggio: We've used by 58% year over year.
Leandro Luis Martin Garcia Raggio: Usually that Bryan Murray attributed to that.
Leandro Luis Martin Garcia Raggio: Copper production.
Leandro Luis Martin Garcia Raggio: I assume the dilution from the deal.
Leandro Luis Martin Garcia Raggio: However, it is important.
Leandro Luis Martin Garcia Raggio: To make sure that.
Leandro Luis Martin Garcia Raggio: Part of the human workforce.
Leandro Luis Martin Garcia Raggio: Being close here to pick up.
Leandro Luis Martin Garcia Raggio: Normalize all in sustaining cost should be alone ADC.
Leandro Luis Martin Garcia Raggio: $600.
Leandro Luis Martin Garcia Raggio: $3,300 USD per ton of copper, still below the previous year. Moving on, the cost applicable to sales strength. As you can see, the prioritization of copper ore at Ed Rocal and the ramp-up in the Andero mine is translating into a continuous cost-reduction trend. However, silver cash has decreased year over year, primarily driven by higher contributions to Chacua and Yumpaq silver ounces. Normalized cash, including Yumpaq costs, is suspected to be between $17 and $18 per ounce.
Leandro Luis Martin Garcia Raggio: <unk> hundred <unk>.
Leandro Luis Martin Garcia Raggio: Tom.
Leandro Luis Martin Garcia Raggio: It's still below that of the previous year.
Leandro Luis Martin Garcia Raggio: Moving on the cost applicable to sales.
Leandro Luis Martin Garcia Raggio: As you can see the prioritization or it broke out on the ramp up and down there on my mind is translating into a continuous cost reduction.
Leandro Luis Martin Garcia Raggio: Sure.
Leandro Luis Martin Garcia Raggio: The decrease year over year.
Leandro Luis Martin Garcia Raggio: Really driven by higher content.
Speaker Change: Doug what I'm doing.
Leandro Luis Martin Garcia Raggio: Normalized Scott.
Leandro Luis Martin Garcia Raggio: Two important goals, we suspect it did.
Leandro Luis Martin Garcia Raggio: 17 $18.
Leandro Luis Martin Garcia Raggio: Gold cash cost increase year over year even.
Leandro Luis Martin Garcia Raggio: Gold cash has decreased year over year and even..., quarter over quarter, primarily driven by higher grades at North Mill and El Brocal and Long Mile, despite lower grades at Cambo Mayo and Porco. On the next slide, we will be presenting free cash flow generation. During the first quarter of 2024, we reduced our cash position by 46 million. Primarily due to the intensive capital expenditures campaign which includes San Gabriel. The EBITDA to Free Cash Flow Reconciliation is explained by the following breakdown of inflows and outflows.
Leandro Luis Martin Garcia Raggio: Quarter over quarter, primarily driven by higher grades and ore Miller as brookhouse, they broke out somebody else despite lower grades.
Leandro Luis Martin Garcia Raggio: Mike.
Leandro Luis Martin Garcia Raggio: Okay.
Leandro Luis Martin Garcia Raggio: On the next slide we will be presenting their free cash flow generation.
Leandro Luis Martin Garcia Raggio: In the first quarter 'twenty to report we review so cash position by 46.
Leandro Luis Martin Garcia Raggio: No that's primarily due to the extensive capital expenditures.
Speaker Change: Got it.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: Free cash flow reconciliation is explained by the.
Leandro Luis Martin Garcia Raggio: The following breakdown inflows.
Leandro Luis Martin Garcia Raggio: Okay.
Leandro Luis Martin Garcia Raggio: El Brocal, Iumpam, and Orcopampa have been the main contributors for the 1st Local 2021. As we have mentioned before, Buenaventura is going through a growth phase with an intensive capex related to San Gabriel. The previously reported Vivian Stanzarraverde will be registered in the second quarter of 2020.
Leandro Luis Martin Garcia Raggio: That being the main contributor for the first quarter.
Leandro Luis Martin Garcia Raggio: Yes.
Leandro Luis Martin Garcia Raggio: As we have mentioned before with I think two days going through I will base.
Leandro Luis Martin Garcia Raggio: We've got extensive capex.
Leandro Luis Martin Garcia Raggio: <unk>.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: Reported UBS first of all there will be registered in the second quarter.
Leandro Luis Martin Garcia Raggio: Paul.
Leandro Luis Martin Garcia Raggio: Moving onto slide six in the next year.
Leandro Luis Martin Garcia Raggio: Moving on to slide six, in the next years, Buenaventura will be focusing most of its efforts on the San Gabriel project. On this slide, you can see the project's cumulative progress, reaching a 47% overall progress by the first quarter of 2020, primarily driven by the full installation and operation of the concrete plan. The key milestone we are closely monitoring for the next quarter is the start of the mine development tunneling and the start of the SAC-NEO assembly. On the next slide, we are showing the completion of the definite campsite that is fully operational since Friday. We have more than 2,000 sleeping beds installed, considering they're definite and organic.
Leandro Luis Martin Garcia Raggio: We will be focusing more most airports in the San Gabriel.
Leandro Luis Martin Garcia Raggio: On this slide you can see the projects.
Leandro Luis Martin Garcia Raggio: Broker, reaching a 47% over pro list by the first quarter.
Leandro Luis Martin Garcia Raggio: Primarily driven by the full installation.
Leandro Luis Martin Garcia Raggio: Concrete.
Leandro Luis Martin Garcia Raggio: The key milestone we are closely monitoring for the Knick, Florida East to start mine development to Meli and it started up there.
Leandro Luis Martin Garcia Raggio: Neil.
Leandro Luis Martin Garcia Raggio: On the mix of slide we are showing.
Leandro Luis Martin Garcia Raggio: Oh definitely.
Leandro Luis Martin Garcia Raggio: Site that is fully operational change driver, we have more than two.
Leandro Luis Martin Garcia Raggio: Lithium beds installed considering that definitely gone Yukon water treatment plant offices.
Leandro Luis Martin Garcia Raggio: Water Treatment Plant, Offices, and Dining Areas are fully operational. On the next slide, we are showing the progress. The processing platform, here is the milling area, where we are planning to start the exact new assembly during the next quarter. And on the next slide, you can see the installation of the FICA.
Leandro Luis Martin Garcia Raggio: Areas are fully operational.
Leandro Luis Martin Garcia Raggio: On the next slide we are showing the growers.
Leandro Luis Martin Garcia Raggio: The processing platform, here's the meeting area.
Leandro Luis Martin Garcia Raggio: We are planning to start.
Leandro Luis Martin Garcia Raggio: Chuck meal Assembly during the next quarter.
Leandro Luis Martin Garcia Raggio: Although that makes them that you can see the installation of if he could.
Speaker Change: Finally, I would like to finish the presentation with a couple of closing remarks.
Leandro Luis Martin Garcia Raggio: Finally, I would like to finish the presentation with a couple of closing remarks. First, the encouraging production results at Jumbo are a clear reflection of our success in delivering mining. With the final mining permit secured, we are now focusing on achieving a stable and efficient production rate at 1,000 tons per day. This will be reflected in a significant increase in revenues in the following. Excellent performance at the volcano, in line with plans to reach 11 tons per day by the end of the year, supported by a positive trend in copper prices.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: First <unk> production as soon as I do.
Leandro Luis Martin Garcia Raggio: Are a clear reflection of our success delivering Miami.
Leandro Luis Martin Garcia Raggio: With final mining permit secured we are now focusing on achieving a stable and efficient production rate.
Leandro Luis Martin Garcia Raggio: 1000 tonnes per day.
Leandro Luis Martin Garcia Raggio: These will be reflected in that significant increase in revenue should get follow up work.
Leandro Luis Martin Garcia Raggio: Excellent for four months I believe.
Leandro Luis Martin Garcia Raggio: In line with plans to.
Leandro Luis Martin Garcia Raggio: To reach 11 tons per day by the end of the year supported by supported by a positive price.
Leandro Luis Martin Garcia Raggio: Third we are proud to announce that we have achieved a significant chunk of your book now standing at.
Leandro Luis Martin Garcia Raggio: Third, we are proud to announce that we have achieved significant progress on the Chang'e project, now standing at an impressive 47% overall completion, on track as we aim for our first gold bar by the second half of 2020. Currently, we are assessing the project topic to ensure an accurate total cost while identifying opportunities to optimize the cost structure. We continue our efforts to transform our mining operations into assets with plus 10 years of life of mine and focus on optimizing them to achieve greater cost efficiency.
Leandro Luis Martin Garcia Raggio: 47% overall completion.
Leandro Luis Martin Garcia Raggio: On truck.
Leandro Luis Martin Garcia Raggio: Aim of our first gold bar by the second call 2020.
Leandro Luis Martin Garcia Raggio: Yes.
Leandro Luis Martin Garcia Raggio: Fortunately, we are assessing the project capex to ensure an accurate total most widely defined opportunities to optimize the construction.
Leandro Luis Martin Garcia Raggio: We continue our efforts to both for our mining operation.
Leandro Luis Martin Garcia Raggio: Last 10 years life of mine and focus on optimization.
Leandro Luis Martin Garcia Raggio: Thank you for your attention, and I will hand the call back to the operator to open the line for... Operator, please go ahead. Thank you. We will now begin the question and answer session. To ask a question, you may press *.
Leandro Luis Martin Garcia Raggio: The aim to achieve greater cost efficiency.
Leandro Luis Martin Garcia Raggio: Thank you for your attention and we'll hand, the call back to the operator to open the line for questions.
Leandro Luis Martin Garcia Raggio: Operator, Please go ahead.
Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. And at this time, we'll pause momentarily to assemble our roster. And the first question will come from Cesar Perez-Navoa, with BTG Pactual. Please go ahead.
Leandro Luis Martin Garcia Raggio: We will now begin the question and answer session.
César Pérez: To ask a question you May Press Star then one on your Touchtone phone.
César Pérez: If youre using a speakerphone please pick up your handset before pressing the keys.
César Pérez: Anytime Youre question has been addressed and you would like to withdraw your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
César Pérez: And the first question will come from Cesar Perez Novoa with BTG Pactual. Please go ahead.
César Pérez: Thank you good morning, everyone. If I may I have three questions.
César Pérez: Thank you. Good morning, everyone.
César Pérez: If I may, I have three questions. The first one relates to your guidance. Essentially, we have seen a meteoric rise in base and precious metals, and given the implications that it has for revenues and by-product credits, is management looking to review the volumes, the revenue, and EBITDA that you outlined in the previous call for this year? My second question relates to cost. There was an important 71% drop in cash and in gold cash at Colombo Lache to $1,000.
César Pérez: The first one relates to to your your guidance.
César Pérez: Essentially we have seen a meteoric rise in based on precious metals.
César Pérez: And given the implications that it has for revenues.
César Pérez: And byproduct credits is is management are looking to review the volumes the revenue and EBITDA that you outlined in the previous call for this year. My second question relates to costs. There was unimportant, so many 1% dropping in cash and gold Cas at Guatemala.
César Pérez: It to $1000 is this due to higher volume or specific initiatives. I believe you mentioned in the press release that the company could not place fresh ore in the pads, which makes me think that.
César Pérez: Is this due to higher volume or specific initiatives? I believe you mentioned in the press release that the company could not place fresh ore in the pads, which makes me think that, you know, there may be some room for improvement. And finally, at El Brocal, costs went down too, and I wanted to understand if this was due to efficiencies attained in the first quarter or if the company used stockpiled mined inventories to dilute the cost. Those would be my questions, gentlemen. Thank you.
César Pérez: There may be some room for improvement and finally attleboro brokerage costs went down two and wanted to understand.
César Pérez: If this was due to efficiencies.
César Pérez: Attained in the first quarter or if the company use star stockpiled mind inventories to two to dilute the costs those would be my my my questions gentlemen, Thank you.
Speaker Change: Thank you for your question.
Leandro Luis Martin Garcia Raggio: Thank you, Cesar, for your question. In terms of whether we can change the guidance, we are evaluating all the operations daily. We might be able to change the guidance at the end of the second quarter, if things are as we are thinking they will be. In terms of COI Molache, remember that last year we didn't produce any ounces of COI Molache. So this is the comparison this quarter to the last quarter to the first quarter of the last year. The information you have, with real respect.
Leandro Luis Martin Garcia Raggio: In terms of.
Leandro Luis Martin Garcia Raggio: If we can change the guidance.
Leandro Luis Martin Garcia Raggio: All the completion date, we maybe.
Leandro Luis Martin Garcia Raggio: It can change the guidance at the end of the second quarter.
Leandro Luis Martin Garcia Raggio: If things are.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: As we as we are thinking that will be.
Leandro Luis Martin Garcia Raggio: In terms of going more let you.
Leandro Luis Martin Garcia Raggio: Remember that last year, we didn't you didn't produce any illness.
Leandro Luis Martin Garcia Raggio: Isn't that just so so.
Leandro Luis Martin Garcia Raggio: As a comparison this quarter too.
Leandro Luis Martin Garcia Raggio: Quarter to the first.
Leandro Luis Martin Garcia Raggio: First quarter of last year.
Leandro Luis Martin Garcia Raggio: The information you have.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: Okay.
Leandro Luis Martin Garcia Raggio: With the readers expect.
Leandro Luis Martin Garcia Raggio: We are not allowed to put more ore in the... Production, and it's true; we are just waiting for the permit to construct and build the new platform to put more ore on it. And we expect at any moment that that permit that the production will begin in the first quarter of the production of ore, and we will begin in the next quarter of the following year. So we should expect an increase in the production of gold ounces in the second quarter. 2020 And in Brocado, actually, we are making many airports more efficient. [inaudible] Microphone to Juan Carlos. Maybe he can give us more color.
Leandro Luis Martin Garcia Raggio: We are not allowed to put more or.
Juan Carlos: And production.
Juan Carlos: It's true we are just waiting the Permian.
Leandro Luis Martin Garcia Raggio: Two of them.
Leandro Luis Martin Garcia Raggio: Construct to build their new platform to put more more more ore and we expect any moment.
Leandro Luis Martin Garcia Raggio: By the way production will begin in the first quarter.
Leandro Luis Martin Garcia Raggio: Your personal or.
Leandro Luis Martin Garcia Raggio: We begin in the next quarter.
Juan Carlos: Following here so we issued his baby in Greece.
Speaker Change: The production of all the answers.
Juan Carlos: In the second quarter.
Leandro Luis Martin Garcia Raggio: 2025.
Juan Carlos: And we broke out.
Leandro Luis Martin Garcia Raggio: Actually.
Leandro Luis Martin Garcia Raggio: Yeah.
Leandro Luis Martin Garcia Raggio: We are making.
Leandro Luis Martin Garcia Raggio: Many airports to be more efficient.
Juan Carlos: And lastly.
Juan Carlos: Microphone two.
Leandro Luis Martin Garcia Raggio: Carlos maybe if you can give more color.
Juan Carlos Ortiz: Thank you, Leandro. Thank you, Cesar, for the question.
Juan Carlos Ortiz: Mr.
Speaker Change: Thank you Andrew.
Speaker Change: Separate question, Yes, we do.
Juan Carlos Ortiz: Yes, at the peak, we need to... Increase the price, of course, there are a lot of incentives to increase production. We are reviewing our mining plans, but at this moment, we are looking more to be in the upper range of our guidance, the annual guidance. So probably we want to be closer to the upper range in that guidance. Any further review, Leandro comments, will probably be announced if there is any for the next contract call.
Juan Carlos Ortiz: The increase in price correlates Oliver Tempt us too.
Juan Carlos Ortiz: Increase of production, we are reviewing our mining.
Juan Carlos Ortiz: Mining bonds that at this moment.
Juan Carlos Ortiz: We are looking more to be the upper range of our our guidance annually.
Juan Carlos Ortiz: Annual guidance, so probably one of the more closer to the upper range.
Juan Carlos Ortiz: Guidance any part of the review.
Juan Carlos Ortiz: And a common <unk> broadly and now.
Speaker Change: If there is any.
Leandro: Thanks, Paul.
Juan Carlos Ortiz: Paul in the queso.
Juan Carlos Ortiz: In the case of Pueblo Leche, last year, at the end of last year, in December, we had a window of opportunity because there was no rain in the area. So we placed almost 200,000 tons of ore in the pad in the last few days of 2023. So we have advanced work done in 2023, and that's the reason we have ounces of gold in 2024. But part of the cost was that Don was in cure during the last quarter of 2023, so that's the reason we have a good look in the calls in the Cascosa of Colmolachi. But as Leandro mentioned, we stopped the production of fresh oil in February this year.
Juan Carlos Ortiz: Malecha last year.
Juan Carlos Ortiz: End of last year in December.
Juan Carlos Ortiz: The opportunity because there was no way.
Juan Carlos Ortiz: In.
Juan Carlos Ortiz: The area. So we place almost 200000 barrels of oil.
Juan Carlos Ortiz: In the last few days of 2023, so we have an advanced work in 2023.
Juan Carlos Ortiz: And we have the ounces of gold.
Juan Carlos Ortiz: Before.
Juan Carlos Ortiz: I don't think goes west.
Juan Carlos Ortiz: Yeah.
Juan Carlos Ortiz: And Don was in Q2 in the last quarter of 2020.
Juan Carlos Ortiz: So that's the reason we have a good day.
Juan Carlos Ortiz: Calls.
Juan Carlos Ortiz: The catheter causal global edge.
Juan Carlos Ortiz: The aforementioned waste all day.
Juan Carlos Ortiz: Ocean of Bridgeport.
Juan Carlos Ortiz: February this year.
Juan Carlos Ortiz: We will be waiting for the permits and the construction of new areas in the past. Probably the permits by the end of the year and construction at the same time, the operation of new, and the breaking of fresh ore will be in the first quarter of next year, and probably the ounces of gold start coming down from the pad in the second quarter of 2025. So probably in the incoming quarters, the cost of Colmolaceae, the gas cost of Colmolaceae, will become slightly higher because we are not putting more fresh ore in, and production of gold will start to decrease in the incoming quarters and in the year that we will resume the placement of fresh ore. And regarding Brocal, yes, there were a lot of improvements in the operation.
Juan Carlos Ortiz: We will be waiting for the permits and the construction of the.
Juan Carlos Ortiz: New areas.
Juan Carlos Ortiz: Yes.
Juan Carlos Ortiz: Probably by the end of the year construction time.
Juan Carlos Ortiz: Yes.
Juan Carlos Ortiz: Operation New braking.
Juan Carlos Ortiz: Breaking our fresh ore would be in the first quarter comps next year.
Juan Carlos Ortiz: Gold's stock coming down 25.
Juan Carlos Ortiz: 25, so poorly.
Juan Carlos Ortiz: In the coming quarters, because similar to the gas cost of collection will be.
Juan Carlos Ortiz: Slightly up.
Speaker Change: We have not.
Juan Carlos Ortiz: Most British or production of gold.
Juan Carlos Ortiz: The decrease in the coming quarters.
Juan Carlos Ortiz: A year that we will receive in.
Juan Carlos Ortiz: Ladies perpetual regarding Morocco, yes, where there was a lot of improvement in the integration we are close to.
Juan Carlos Ortiz: We are close to 10.5 kilotons per day in production, and we are looking forward to reaching 11,000 tons per day by the end of the year. We are well tracked on that purpose, and we are reducing costs. We have been doing this increase in production without any additional people or any additional scoop crank or retract. It's just a matter of improvement. We put in an on-the-ground dispatch system that will be helping a lot to increase the productivity of our equipment, and we are ripping up the result of that investment in the previous quarter. So just more on the improvement and operational expertise that we are ripping up the benefits and getting this.
Juan Carlos Ortiz: Dave Bloom five kilo tons per day in production.
Juan Carlos Ortiz: Looking forward to reach 11000 Boes per day by the end of the year, where our website on that purpose and we are reducing cost we have been down these increasing production without any addition, Iowa.
Juan Carlos Ortiz: Ebola or any addition, now.
Juan Carlos Ortiz: <unk>.
Juan Carlos Ortiz: Joseph Marinoff improve Malibu.
Juan Carlos Ortiz: And on the ground.
Juan Carlos Ortiz: This budget has been increased ability with Cleveland and we are we've.
Juan Carlos Ortiz: We've been.
Juan Carlos Ortiz: As a result of that investment in the previous quarter, So GSE mortgage obey buchman in operation now.
Juan Carlos Ortiz: Expertise that we are would be helpful.
Juan Carlos Ortiz: These are low cost.
César Pérez: Alright guys, thank you very much for your detailed information.
Speaker Change: Alright, guys. Thank you very much.
Speaker Change: Build the information yes.
Leandro Luis Martin Garcia Raggio: Okay, Cesar. Daniel, I think he has a couple of additional comments to you, Cesar. Good morning.
Daniel: This is Daniel.
Daniel: A couple of additional Goldman SBU system.
Daniel Dominguez Vera: Good morning, Cesar. Oh, okay. Thank you.
Cesar: Oh, Okay. So that could put some numbers just to put some numbers to your to your question regarding the EBITDA.
Daniel Dominguez Vera: Just to put some numbers to your question regarding EBITDA, at the beginning of the year, we considered the metal prices of $8,500 for copper, $1,900 for gold, and $23 for silver, and our EBITDA was an estimated amount of between $250 and $270 million. Today, we have higher prices, and considering $9,000 for copper, $2,100 for gold, and $25 for silver, in addition to the production from Junpac that is coming along since March, we are estimating a consolidated EBITDA of between $300 million and $320 million. That would be an improvement on the additional EBITDA that we expected.
Daniel Dominguez Vera: At the beginning of the year, we considered.
Daniel Dominguez Vera: The metal prices.
Daniel Dominguez Vera: <unk> Congress or copper.
Daniel Dominguez Vera: The 1900 for gold and $23 four for silver and our EBITDA.
Daniel Dominguez Vera: Once an estimated maybe though between 250 and $270 million.
Daniel Dominguez Vera: Today, we have higher prices and considering $9000 for copper 'twenty 104.
Daniel Dominguez Vera: <unk> and 'twenty five or silver in addition to the production from June but that is coming along.
Daniel Dominguez Vera: Since March we are estimating a consolidated EBITDA of between $300 million in two and 320.
Daniel Dominguez Vera: Would be the improvement of the additional EBITDA that we expect.
Speaker Change: Okay. Thank you very much Danielle so it's a large $50 million swing at the EBITDA level.
César Pérez: Okay. Thank you very much, Daniel. So that's a large $50 million swing at the EBITDA level.
César Pérez: Very clear. Thank you all, gentlemen, for your detailed questions. Thank you.
Speaker Change: Very clear thanks.
Speaker Change: All gentlemen for your detailed questions. Thank you.
Speaker Change: The next question will come from Carlos de Alba with Morgan Stanley. Please go ahead.
Carlos de Alba: The next question will come from Carlos de Alba, with Morgan Stanley. Please go ahead. Yeah, thank you very much.
Speaker Change: Yes, Thank you very much and good morning, everyone a couple of them.
Speaker Change: First one Peter.
Carlos de Alba: Thank you very much and good morning everyone. I have a couple of questions. The first one is, can you please quantify what the impact was of not having the expiration permit. Definitely, that was a positive surprise, but I just wanted to understand how much of an EBITDA impact that represented the fact that it was not run through cost but taken to CAPEX. And second, any comments on Cerro Verde? We saw that the company paid $29.4 million for the second quarter dividends.
Speaker Change: Can you please quantify it.
Carlos de Alba: The impact was of not having.
Carlos de Alba: Yes, not not taking the cost of Yum pack.
Carlos de Alba: Through the P&L and if they were capitalized.
Carlos de Alba: Turning to them.
Carlos de Alba: To the exploration permit.
Carlos de Alba: As you definitely that was a positive surprise, but I just wanted to understand how much of that EBITDA impact that that represented the fact that he was not.
Carlos de Alba: <unk> through cost, but take into Capex and second and any comments on on subtle rather than we saw that they sort of are they paid 29 point <unk> 4 million for the second quarter dividends that is down from the 41 level or saw that the company had been in the last.
Carlos de Alba: That is down from the $41 level or so that the company paid in the last. Can you provide any color? Is the expectation that this is the new range that we will see in the coming quarters? Or do you think that there is upside to increase them? But not what you think, but more like what Freeport has said they will do.
Carlos de Alba: Okay.
Carlos de Alba: Okay and can you provide any color or is the expectation that this is the new range that we will see in the coming quarters or just didn't get that there is a M.
Carlos de Alba: Upside to increase them, but not knowing what you're seeing but more like what what Freeport has said they will do.
Speaker Change: Thank you.
Leandro Luis Martin Garcia Raggio: Thank you, Carlos. Thank you for your question. Well, yes.
Speaker Change: Got it thank you.
Speaker Change: The question.
Leandro Luis Martin Garcia Raggio: Jim.
Speaker Change: Well in <unk>.
Leandro Luis Martin Garcia Raggio: The impact of the cost assigned to the capex instead of the operating cost is kind of difficult to calculate, but we expect that the cost, [inaudible] From the beginning of the second quarter, we will have the exact calculation revealed in our financial statement. In the case of Cerro Verde, the dividends, actually, we were not expecting any dividends in this quarter. Coming from the profit from the Nadia deal was a surprise to us, but still, we... We maintain the expectation to have, for the whole year, total dividends between $120,000 and $150,000. We believe that with this level of prices, that figure can be fulfilled at the end of the year. I don't know, maybe Juan Carlos or Daniel want to add something commemorative.
Leandro Luis Martin Garcia Raggio: The impact of the cost assigned to the Capex instead of operating costs.
Speaker Change: It is.
Leandro Luis Martin Garcia Raggio: Kind of difficult to calculate that.
Speaker Change: It's big.
Speaker Change: The cost of you Buck will be around $16 a barrel.
Speaker Change: Between 16 and 17.
Speaker Change: For <unk>.
Speaker Change: Beginning the second quarter, we will.
Leandro Luis Martin Garcia Raggio: The exact calculation.
Speaker Change: <unk> in our.
Leandro Luis Martin Garcia Raggio: Absolutely.
Leandro Luis Martin Garcia Raggio: Yeah.
Speaker Change: In the K so well.
Speaker Change: Several literally.
Leandro Luis Martin Garcia Raggio: Events actually we were not expecting any variance in.
Speaker Change: In this quarter coming from <unk>.
Leandro Luis Martin Garcia Raggio: Brokerage firm.
Speaker Change: Or as was the surprise by the steel we.
Leandro Luis Martin Garcia Raggio:
Leandro Luis Martin Garcia Raggio: We maintained the expectation to have in the total of the year.
Speaker Change: Total lesions between 120.
Leandro Luis Martin Garcia Raggio: 50.
Leandro Luis Martin Garcia Raggio: We believe that with this level of prices.
Leandro Luis Martin Garcia Raggio: Yes.
Leandro Luis Martin Garcia Raggio: Figure.
Speaker Change: Coffee Coke can be completed completed.
Leandro Luis Martin Garcia Raggio: Fulfilled.
Leandro Luis Martin Garcia Raggio: Of the year.
Speaker Change: I don't know, maybe Carlos Daniela we wanted to add.
Leandro Luis Martin Garcia Raggio: Goldman.
Leandro Luis Martin Garcia Raggio: Yes.
Juan Carlos Ortiz: Yeah, regarding JUPAC, we have a total, APEX total, in the realm of $8 million in the first quarter. That was not only part of the operations, but it's the whole package of construction, plus breaking the order and transportation of the order into the Chuchaco facility. So, as Leandro mentioned, it's kind of a bulk number, but probably more linked to production, not only for the quarter but for at least the whole year.
Juan Carlos: Joe Buck we have had total opex total in Europe $8 million in the first quarter.
Juan Carlos Ortiz: Not only part of the operational but it's the full.
Juan Carlos Ortiz: All packaging construction glass breaking their own transportation or <unk>.
Juan Carlos Ortiz: We should check or so us.
Juan Carlos Ortiz: Andrew mentioned, it's kind of both.
Juan Carlos Ortiz: Bulk number.
Juan Carlos Ortiz: Probably more linked to the production not only from the water by the.
Juan Carlos Ortiz: Total at least the whole year so.
Juan Carlos Ortiz: So, it's a number that needs to be taken with caution because it doesn't match exactly the amount of ounces of silver that we produce in the quarter. It's a combination of properly capped and part of the effort dedicated to breaking the order and transporting the order from JUPAC into the Chuchaco processing facility. Maybe Daniel has some, or a color of the distribution.
Juan Carlos Ortiz: The number that need to be.
Juan Carlos Ortiz: Uh huh.
Juan Carlos Ortiz: Sticking with patients because.
Daniel: I think matts exactly the amount of ounces of silver that we bring to the inquiries are.
Juan Carlos Ortiz: General corporate Capex.
Juan Carlos Ortiz: Arguably equal dedicated breaking the law and transport only oil.
Juan Carlos Ortiz: You've seemed to check a processing facility, maybe Daniel has had some or all of the.
Daniel Dominguez Vera: I would like to comment on Cesar Roberta's question. We, at this level of prices, Cesar Roberta should be generating an EBITDA of around $1.8 billion. The working capital that we expect is around $0.7 to $0.8 billion, with a very small CAPEX, around $300 to $350 million, which gives us a free cash flow of around $750 million. These are at a level of prices of close to $9,000. Having the minimum cash already in their balance, they should be distributing dividends in the order of $750 million, which gives us the $150 million.
Daniel Dominguez Vera: I would like to comment about Cerro Verde discretion.
Daniel Dominguez Vera: We at this level of prices for ammonia should be generating an EBITDA of around one 8 billion.
Daniel Dominguez Vera: <unk> million dollars.
Daniel Dominguez Vera: The working capital that we expect is around 0.7 to <unk> 8 billion with very small capex around $300 million to $350 million, which gives us a free cash flow of around $750 million desire.
Daniel Dominguez Vera: The level of prices of close to $9000.
Daniel Dominguez Vera: Having there.
Daniel Dominguez Vera: The minimum cash already in their balance should be distributing dividends in the order of 750 million would you gave us.
Daniel Dominguez Vera: The $150 million.
Daniel Dominguez Vera: Great. That would be great news. Just to follow up on that, Daniel. Has this been approved by Cerro Verde's board, or is it just an expectation at this stage? No, these are numbers.
Daniel Dominguez Vera: Rob mentioned at the beginning.
Speaker Change: Great does that would be great news just a follow up on that Daniel is this has just been approved by Cerro Verde. This board.
Speaker Change: Or or is just that an expectation at this stage because that number is.
Daniel Dominguez Vera: Sorry.
Speaker Change: No voluntary.
Speaker Change: These are numbers.
Daniel Dominguez Vera: These are numbers that were shared by Cerro Verde, of course, at a lower price for copper. We have adjusted them internally, but there is no, as you know, there is no dividend policy, but what they normally do is to pay dividends in excess of the cash that they have, in excess of the minimum cash that they have, which is $500 million.
Daniel Dominguez Vera: That were shared by the federal government.
Speaker Change: Of course.
Daniel Dominguez Vera: At lower price of copper, we have adjusted them internally, but there is no. There is no dividend policy, but what they normally do is compelling.
Daniel Dominguez Vera: Leland.
Daniel Dominguez Vera: In excess of the cash that they have in the face of the minimum cash that they have which is.
Daniel Dominguez Vera: $500 million.
Carlos de Alba: Thank you. Thank you very much.
Speaker Change: Thank you. Thank you very much.
Speaker Change: Again, if you have a question. Please press Star then one our next question will come from Tanya Jacquizz Connick with Scotiabank. Please go ahead.
Operator: Again, if you have a question, please press star, then 1. Our next question will come from Tanya Jakusconek with Scotiabank. Please go ahead.
Tanya Jakusconek: Good morning everyone. Thank you so much for taking my questions, Daniel. I just have some very simple modeling questions for you, and then I have some other questions on the assets. So can I just start with the simple modeling questions? Can I just say your dDNA was kind of low at 42 million in Q1, as was your GNA at 10, and as was the CapEx at 58 million. Can you review with me what you're expecting for those three numbers for the year?
Tanya Jakusconek: Good morning, everyone. Thank you so much for taking my questions Daniel.
Speaker Change: Very simple.
Tanya Jakusconek: Modeling questions for you.
Tanya Jakusconek: We have some other questions on the asset so can I just start on the simple modeling question.
Tanya Jakusconek: Yes.
Tanya Jakusconek: Your D DNA with kind of now at 42 million in Q1 as well.
Tanya Jakusconek: Okay.
Tanya Jakusconek: Ken.
Tanya Jakusconek: The capex.
Tanya Jakusconek: Maryann can you review, what youre expecting for those three numbers for the year.
Tonya: This is tonya.
Daniel Dominguez Vera: For the DNA... As you know, in the last two quarters of last year, we recognized the first stripping that we had in the assets, for El Brocal Reserves. So, in the first quarter, it was a minimum of $5.5 million that we recognized related to this deferred stripping. In the third and the fourth quarter, this amortization was over $20-23 million. So, what we expect for the following quarters is something about $35 million from depreciation and amortization.
Tanya Jakusconek: Towards the DNA.
Daniel Dominguez Vera: As you know we we cause.
Daniel Dominguez Vera: The last quarter of last year.
Daniel Dominguez Vera: We recognized the first stripping.
Daniel Dominguez Vera: In the asset.
Daniel Dominguez Vera: For the broker reserves so in the first quarter.
Daniel Dominguez Vera: In April of $5 5 million, although we recognized.
Daniel Dominguez Vera: Related to this.
Daniel Dominguez Vera: This deferred stripping.
Daniel Dominguez Vera: Third on the fourth quarter. These amortization was over 23 2000 23 million. So what we expect for the following quarters.
Daniel Dominguez Vera: Something about.
Daniel Dominguez Vera: $35 million.
Daniel Dominguez Vera: So $35 million a quarter for the next three years. Sponsored ADR
Daniel Dominguez Vera: Depreciation and amortization.
Daniel Dominguez Vera: The $35 million a quarter.
Daniel Dominguez Vera: Yes, for a quarter, for DNA.
Daniel Dominguez Vera: Great.
Speaker Change: Yes, four quarter for DNA.
Daniel Dominguez Vera: Okay.
Daniel Dominguez Vera: And then GM Sir.
Daniel Dominguez Vera: and then GNA.
Daniel Dominguez Vera: Yes.
Daniel Dominguez Vera: DNA, as you know, we have sold contacto, and there is a decrease in DNA due to that. We are not considering anymore the contacto figures, and we have also made other adjustments to our expenses. For example, we have reduced the size of our location, our headquarters. So, we expect around $12 million in DNA per quarter.
Daniel Dominguez Vera: As you know we have sold contact.
Daniel Dominguez Vera: And there is.
Daniel Dominguez Vera: A decrease in G&A from that we are not considering anymore.
Daniel Dominguez Vera: The conduct of figures and we have been doing also other adjustments to our expenses for example, we have.
Daniel Dominguez Vera: Reduced the size of our of our relocation of our headquarter so.
Daniel Dominguez Vera: We expect third quarter around $12 million of Germany.
Speaker Change: Okay, perfect and then the Capex, which I think.
Daniel Dominguez Vera: Okay, perfect. And then the CAPEX, which I think was originally guided around 300 million for the year. It looks like you would have only done 58 million in Q1. So is that 300 million still viable?
Daniel Dominguez Vera: Originally guided around 300 million.
Daniel Dominguez Vera: For the year. It looks like you would have only been 58 million in Q1, so is that 300 million still viable.
Daniel Dominguez Vera: Yes.
Daniel Dominguez Vera: Sanger deals should be catching up.
Daniel Dominguez Vera: Yes, San Gabriel should be catching up with the rate of expenditures. So we still believe that the total capex for this year should be between 300 and 320 million.
Daniel Dominguez Vera: The rate of expenditures so we still.
Daniel Dominguez Vera: Believe that the total capex for this year should be between 300 and 320 meter.
Speaker Change: Okay, Alright, thats perfect. Thank you.
Tanya Jakusconek: Maybe still to you, Daniel, because this does impact the balance sheet. Can you just give me an update?
Daniel Dominguez Vera: Would be one.
Daniel: Maybe to you Daniel.
Daniel: The balance sheet can you just give me an update now on Q4 call I asked about the sale of the <unk> royalty I thought we mentioned it would be down in April can we just talk about the balance sheet, yes, we are going to get money coming from the dividend.
Daniel Dominguez Vera: I know on the Q4 call, I asked about the sale of the Yanacocha royalty. I thought we mentioned it would be done in April. Can we just talk about the balance sheet? Yes, we are going to get money coming from the Sierra Verde dividend, which is great. But can you talk to me about what else you are seeing in terms of sources of cash besides your operating cash flow that's coming from your mines but other sources of cash from sales and, you know, banks and lending?
Daniel Dominguez Vera: Dividends, which is great.
Daniel Dominguez Vera: Can you talk to me about what else are you seeing in churn.
Daniel Dominguez Vera: As our cash.
Daniel Dominguez Vera: Your operating cash flow, that's coming from your mind, but other sources of cash from sales and or banks and landing.
Speaker Change: Okay, Yes.
Daniel Dominguez Vera: Okay, yes. Apart from our operating income or our EBITDA generated by our operations, we do expect the sale of one asset. We should be receiving between $180 and $200 million from that sale this year. Then we expect the Cerro Verde dividends, which could be between $120 and $150 million. And in addition to that, we have already compromised three RCFs, revolving facilities, with three local banks. And these three facilities add up to $200 million. Currently, they are unknown, but probably we will use them between the third and fourth quarter in order to fund any requirements for San Gabriel.
Daniel Dominguez Vera:
Daniel Dominguez Vera: Apart from all operating or our EBITDA generated by our operations.
Daniel Dominguez Vera: Do you expect the same level of one asset.
Daniel Dominguez Vera: We should be receiving this year between 180 and $200 million from from that sale.
Daniel Dominguez Vera: Then we expect the Cerro Verde dividends, which could be between 120 on $150 million and in addition to that we have already.
Daniel Dominguez Vera: Compromised three rcs revolving facilities with local banks.
Daniel Dominguez Vera: And these are.
Daniel Dominguez Vera: These three facilities of up to $200 million currently.
Daniel Dominguez Vera: Our undrawn, but probably we will use them between the third and fourth quarter in order to fund any any requirement for San Gabriel.
Daniel Dominguez Vera: Okay, and the one asset sale.
Daniel Dominguez Vera: Okay. And the asset sale, is that an asset or a royalty? Like, there's a difference. One's an asset, and one's a royalty. It's a royalty.
Speaker Change: Our royalty.
Daniel Dominguez Vera: There is a difference one of an asset and one that royalty.
Daniel Dominguez Vera: So royalty.
Tanya Jakusconek: Okay, that's helpful. Thank you. And then, if I could ask one more question, I am very interested in San Gabriel and what is happening there. And I see from the slides that, you know, you've done quite a bit. You've got the bag that you've got to assemble, you've got the underground tunneling, the development of the underground ramp, and I guess it's the ramp and additional declines and levels.
Speaker Change: Okay. That's helpful. Thank you.
Tanya Jakusconek: And then if I could ask one more question.
Tanya Jakusconek: I am very interested in that.
Tanya Jakusconek: What is happening there and I see from the slide that you know.
Tanya Jakusconek: You know you've done quite a bit you've got it got it.
Tanya Jakusconek: Bad debt, you've got to assemble a new coffee the underground tunneling and the development of the underground ramp and I guess its ramp and additional deep declines.
Tanya Jakusconek: Declines in levels.
Tanya Jakusconek: Can someone just walk me through, you know, the second half of this year into 2025 again, what needs to be done? And then Daniel, for you, the last capital I remember on this mine was $450 to $470 million. Can you let me know how much we have spent to date and when we're getting this new CapEx number?
Tanya Jakusconek: Someone just walk me through.
Tanya Jakusconek: No.
Tanya Jakusconek: Second half of this year into 2025 again, what needs to be done and then Daniel for you there.
Tanya Jakusconek: Alas capital I remember on this line was $450 million to $470 million and you. Let me know how much we have spent to date and when we are getting this new capex number.
Speaker Change: Thank you of course.
Renzo Macher: Here with us is Renzo Macher. He can explain to you all your questions in Chandler. Thank you. Bye, Tanya.
Tanya Jakusconek: Here with us these rental market.
Renzo Macher: He can explain.
Speaker Change: They are purchasing some noted.
Speaker Change: Thank you Danny.
Renzo Macher: Hey, Danny so.
Renzo Macher: Hi Tanya, so what's coming in, hi, as you can see in the pictures, there's great progress in Earth moving is out of the way of the critical path, and we have started with all the concrete placement. And we have the mechanical, steel, and piping contractor on site. So you're going to see a lot of progress in that area. The underground contractor for developing the mine is already on site. So we're going to see the first in the next quarter.
Renzo Macher: What's permitting high as you can see the pictures and there is progressing.
Renzo Macher: Third moving out of the out of the way of the critical path.
Renzo Macher: We have started will be concrete placement.
Renzo Macher: And we have the mechanical steel and pipe being conducted onsite, so youre going to see a lot of advancing that in that area.
Renzo Macher: The underground contractor for developing the mine is already on site. So we're going to see the first in the next whatever we're going to see the first mine development advancing.
Renzo Macher: We're going to see the first mine development advancing. The electrical and signal contractor, we shall be closing that contract towards the end of May or beginning of June. So you're going to see all those three main contractors, which is pretty much all of them, the remaining big contracts fully on board and producing.
Renzo Macher: <unk>.
Renzo Macher: Okay.
Renzo Macher: Electrical and signal confirm that we should be closing that contract awards and there may be enough.
Renzo Macher: End of May beginning of June.
Renzo Macher: So youre going to see all those three main contract, which is pretty much all of them all of them that.
Renzo Macher: The remaining big complex fully on board.
Renzo Macher: Dosing best idea again, we have this.
Renzo Macher: 90, 898% of engineering and procurement.
Renzo Macher: Managing this advantage they love the product.
Speaker Change: Okay great.
Renzo Macher: Okay, so these three contracts are going to be placed, it looks like in Q2. So the concrete, steel, the underground development, and the electrical, right? These three are going to be placed in or awarded in Q2. Then you're going to have all of that work obviously done Q2 onwards, and then when do we actually expect the mill to start to, you know, turn, you know, wet? Commissioning, Dry Commissioning, when are we expecting that?
Renzo Macher: <unk> contracts are going to be place it looks like in Q2.
Speaker Change: There will be a company.
Renzo Macher: The underground development and then the electrical right three of them to be.
Renzo Macher: Placement.
Renzo Macher: Warranted in Q2.
Renzo Macher: And youre going to have all of that works, obviously done Q2 onward.
Renzo Macher: And then when this week.
Renzo Macher: The mail to start.
Speaker Change: Take care.
Renzo Macher: <unk>.
Renzo Macher: <unk>.
Renzo Macher: Dry commissioning.
Renzo Macher: We expect from that.
Speaker Change: So we already have.
Renzo Macher: So we already have, from those three contracts you mentioned, the concrete, the mechanical, piping, and steel. It's already signed, and it's running now. Underground, it's signed, and it will be producing now. Electrical and signal is the one that we need to, we're at the final stage of the bidding process, so it should be finished. [inaudible] and towards the early second quarter of next year, and that's kind of when commissioning is going to start. Okay.
Renzo Macher: Those three contracts you mention the concrete mechanical piping and steel.
Speaker Change: Ladies sign and it's on its way.
Renzo Macher: Turning now underground each time and will be for listening now.
Renzo Macher: Electrical and signal is the one that we need to win a defined on the stage of the bidding process. So it should be finished.
Renzo Macher: Amit.
Renzo Macher: And awarded on me now in the Pictures you can see that we are.
Renzo Macher: Struck in the mill already foundations to personal vision has been good.
Renzo Macher: So once the.
Renzo Macher: We're going to be finishing construction towards the.
Renzo Macher: Early second quarter of next year and that commission is going to start.
Renzo Macher: Okay, and how long do you think commissioning will take? Is it like, you know, 60% of capacity for 30 days in terms of getting to commercial production?
Renzo Macher: Yes.
Renzo Macher: Okay, and how long do you think commissioning, okay, because it like that.
Renzo Macher: 60% of capacity.
Renzo Macher: In terms of getting to commercial production.
Renzo Macher: Towards the early fall quarter, we shall be
Renzo Macher: Okay.
Renzo Macher: So we're early fourth quarter, we should be.
Renzo Macher: Okay. So Q4 is just going to take you two quarters to go commercial.
Renzo Macher: Okay, so Q4, so it's going to take you two quarters to go commercial.
Renzo Macher: Yes.
Renzo Macher: I mean, we're very advancing, and we're going to be very advancing construction so we can start commissioning earlier.
Renzo Macher: We are very advanced and we're gonna be very advancing construction. So we can start commissioning earlier push them.
Tanya Jakusconek: Okay, yeah, I should start thinking commercial in Q4. That's when we start taking this through the income, through revenue. Okay. And Daniel, just for you, can I just get an update on the CapEx number? Like, you know, 450 to 470 was the last number I had. Maybe you can give me a little bit of an idea of when a new one is coming and where it is.
Speaker Change: Okay. Okay.
Tanya Jakusconek: Yes.
Tanya Jakusconek: Yes, it should start thinking commercial in Q4, that's when we start taking necessary be yung Kim to revenue.
Tanya Jakusconek: Mhm, Okay, and Danielle just for you can I just get an update on the Capex number.
Daniel: 450 to 470 ones the last number I had.
Tanya Jakusconek: Maybe you can give me a little bit of an idea of when and your line is coming in where are you seeing changes in the capex number of positive and negative.
Daniel Dominguez Vera: Hi Tanya, We are still evaluating the total CAPEX. We will have a better figure for the next quarterly conference call, but we expect from the initial CAPEX of $470,000, we expect around a 10% to 15% increase. And currently, we have already disbursed, from 2022 until the end of last quarter, $220 million for San Gabriel.
Tonya: This is tonya.
Daniel Dominguez Vera: Still evaluating the total Capex, we will have a better figure for the next the next quarter conference call, but we expect from the from the initial Capex of 470, we expect around 10% to 15% increase.
Daniel Dominguez Vera: Currently we have been we have already disbursed things 'twenty to 'twenty two.
Daniel Dominguez Vera: Until the end of last quarter.
Daniel Dominguez Vera: $222 million.
Daniel Dominguez Vera: Okay, that's great, and then I guess in Q2, someone can give me an idea about when you're doing your development and how the development is coming in terms of costing for the underground as well. Thank you so much for helping me.
Daniel Dominguez Vera: For San Gabriel.
Speaker Change: Okay. That's great and then I guess in Q2 someone can give me an idea about when youre doing the development.
Daniel Dominguez Vera: Element, that's coming in terms of processing for the underground as well.
Daniel Dominguez Vera: Okay.
Daniel Dominguez Vera: Thank you so much for helping.
Leandro Luis Martin Garcia Raggio: Tanya, if I may pass the microphone to Aldo, he wants to make a little more, give you a little more color about the shade of the...
Speaker Change: Okay. Thank you.
Aldo: If I may.
Aldo: Lastly, Michael Virtu Algo, we want to make a little more give you a little more color of RBC will be totally normal Oregon.
Aldo Massa: Yes, hi Tanya. Sorry, I want to clarify a little bit. I want to clarify a little bit that the time for the sale of the royalty for the Anacocha is July 15. If we don't reach the price, the target price, we can go to the second phase and ask for a lower price first to Newmont and then to the others interested in that royalty. But the idea is to try to finish that sale during this year. But in the first stage, we have time until July.
Aldo: Hi, Tanya.
Aldo Massa: I want to clarify a little bit I wanted to clarify I didn't meet the time for the CLO.
Aldo Massa: The Williams deal Gotcha.
Aldo Massa: Until July 15.
Aldo Massa: If we don't reach the price.
Aldo Massa: The price we can go to a second phase and ask for a lower price first one Omar and then who the interested in that volume.
Aldo Massa: The idea is to try to finish dovetail during this year.
Aldo Massa: But in the purchase date, we have patent until July 15.
Tanya Jakusconek: Okay, so if I understand correctly, you have until July 15th in this first phase. If you do not get the price you want, then you go to a second phase. And how does this second phase differ from the first phase? Is it just different? Only a lower price; only a lower price. Okay, so what about then? Can you go back to Newmont because Newmont, I think, has the right of first refusal on it?
Tanya Jakusconek: Okay. So if I understand correctly, you Havent till July 15th and Thats Fair to say if you do not get the price you want and you go to a second phase and how does this second phase differ from the first phase.
Tanya Jakusconek: It's just different R&D on lower price.
Tanya Jakusconek: Brian.
Tanya Jakusconek: Right. Okay. So what is it.
Tanya Jakusconek: Can you go back to new March because newmont I think has a right of first refusal on that.
Speaker Change: Is that right. So first of all if it needs to be different but we have to us or our price from newmont. They don't accept to buy at that price. We also can go to a market again.
Aldo Massa: It's the right of first offer. It's a little bit different, but we have to ask for a price, a new one. If they don't accept to buy at that price, we can go to the market again. This is our idea.
Aldo Massa: Yeah.
Speaker Change: Okay got it okay alright.
Tanya Jakusconek: Okay, got it. Okay. All right. So, if we don't get anything by July 15th, then we're going to phase two. Yes, exactly. Okay, great. Thank you for the clarification. I really appreciate it.
Aldo Massa: In fact, if we don't get anything by July 15th then we're going to phase two.
Tanya Jakusconek: Yes.
Tanya Jakusconek: Okay, great. Thank you for the clarification I really appreciate it.
Speaker Change: Thank you.
Tanya Jakusconek: Ladies and gentlemen, with that we will be concluding today's audio question and answer session I would like to turn the floor back over to Gabriel Salus Investor Relations officer for any webcast questions. Please go ahead.
Gabriel Salas: Ladies and gentlemen, with that, we will be concluding today's audio question and answer session. I would like to turn the floor back over to Gabriel Salas, Investor Relations Officer, for any webcast questions. Please go ahead.
Gabriel Salas: Thank you operator.
Gabriel Salas: First question comes from Orlando Arena from Canadian Corp capital.
Gabriel Salas: Can you. Please comment on commercial deductions decreased in a per ton of unit sold basis. So I would appreciate some color on that.
Gabriel Salas: Yes.
Gabriel Salas: Okay.
Gabriel Salas: Great. Thank.
Gabriel Salas: Thank you, operator. The first question comes from Orlando Barriga from Credit Corp Capital. Can you please comment on commercial deductions? They decreased on a per ton of units sold basis, so I would appreciate some color.
Gabriel Salas: Thank you for the question and it happens to things in the market.
Gabriel Salas: The first one is that the commercial.
Gabriel Salas: Yes.
Gabriel Salas: They go lower.
Gabriel Salas: We have a better commercial terms for this year.
Gabriel Salas: Why why not at least one way.
Orlando Barriga: Commercial is going down and the second one was that we sold 13 million metric tonnes of concentrate during the high SKU with no worse in Brooklyn.
Gabriel Salas: Thank you for the question. It happens; there are two things in the market. The first one is that the commercial direction has gone down a lot. We have better commercial terms for this year. That's one of the reasons why the commercial terms are going down. And the second one was that we sold 13 dry metric tons of concentrate during the first Q with no worse in Broccoli. And that gives us, of course, better terms and lower deductions. That were the two main reasons why the deductions were so low in this quarter.
Gabriel Salas: And that that DFAST.
Gabriel Salas: Of course better tons on lower deductions that wasn't there to me what the other national restaurant loans.
Gabriel Salas: Sure.
Speaker Change: Thank you Aldo.
Speaker Change: At this time there are no further questions I would like to turn the call over to the operator.
Speaker Change: Thank you that concludes the question and answer session for today I would like to turn it back over to management for any closing remarks.
Speaker Change: Thank you Brito.
Speaker Change: Before we finished vehicle critical thank you I want to thank you very much for making the time to join us.
Speaker Change: And the interest in our company. Thank you again and cover a wonderful day.
Speaker Change: Ladies and gentlemen that concludes today's conference call, we would like to thank you again for your participation you may now disconnect.
Gabriel Salas: At this time, there are no further questions. I would like to turn the call over to the operator.
Gabriel Salas: Okay.
Gabriel Salas: Goodbye.
Operator: Thank you. That concludes the question and answer session for today. I would like to turn it back over to
Gabriel Salas: [music].
Operator: Okay.
Operator: Yes.
Gabriel Salas: Thank you very much. Before we finish today's conference call, thank you. I want to thank you very much for taking the time to join us. Thank you again, and have a wonderful day.
Gabriel Salas: [music].
Gabriel Salas: Yeah.
Gabriel Salas: Yes.
Gabriel Salas: [music].
Gabriel Salas: Yes.
Gabriel Salas: Yes.
Gabriel Salas: Okay.
Gabriel Salas: Okay.
Operator: Ladies and gentlemen, that concludes today's conference call. We would like to thank you again for your participation. You may now disconnect.
Gabriel Salas: Okay.
Operator: [music].
unknown: [inaudible]
Operator: Yes.