Q1 2025 Compañía de Minas Buenaventura SAA Earnings Call
Speaker Change: [music].
Unknown Executive: © BF-WATCH TV 2021 Good morning, ladies and gentlemen.
Good morning, ladies and gentlemen.
Unknown Executive: Welcome to the Compania de Minas Buenaventura first quarter 2025 earnings results conference call. At this time, all participants are in listen-only mode, and please note that this call is being recorded.
So the company I believe me notice one of Ventura first quarter of 2025 earnings results Conference call.
At this time, all participants are in listen only mode.
Please note that this call is being recorded.
Sebastian Valencia: I would now like to introduce your host for today's call, Mr. Sebastian Valencia, head of investor relations. Mr. Valencia, you may begin.
Speaker Change: I would now like to introduce your host for today's call, especially Boston Valencia.
Speaker Change: That's the relations Mr. <unk> you may begin.
Speaker Change: Good morning.
Leandro Garcia: Good morning and thank you for joining us today to discuss our first quarter 2025 results.
Speaker Change: Thank you for joining us today to discuss our first quarter 2025 results today's discussion will be led by Mr. Leandro Garcia Chief Executive Officer.
Leandro Garcia: Today's discussion will be led by Mr. Leandro Garcia, Chief Executive Officer.
Leandro Garcia: 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 Hermosa, Vice President of Sustainability, Mr. Renzo Macher, Vice President of Projects, Mr. Juan Carlos Salazar, Vice President of Geology and Explorations, Mr. Roque Benavides, Chairman, and Mr. Raul Benavides.
Speaker Change: Also joining our call today and I mean that was part of your questions Army settling in Domingues, Chief Financial Officer, You said, Juan Carlos Ortiz Vice Presidents of operations. He said I know myself Bice prescient off pieces. The Bureau van Dijk commercial you said.
Speaker Change: I'm done I'm also vice present of sustainability.
Speaker Change: He said I saw my hair, Vice President of projects, you said, one Carlos Salazar Vice present of Jello explorations you settle Gary now, yes, chairman and Mr. <unk> will you be nice alright.
Sebastian Valencia: Before I handle the call over, let me first touch on a few items. On Buenaventura'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, and they are based on management's current views and assumptions. While management believes that these assumptions, expectations, and projections are reasonable in view of the current available information, you are cautioned not to place any reliance on these forward-looking statements.
Speaker Change: Before I hand, they'll Niccolo Air let me first touch on a few items on the website you will find our press release that was posted yesterday after market close. Please note that today's remarks include forward looking statements under are based on management's current views and assumptions management.
Speaker Change: Management believes that its assumptions expectations and Peggy or we saw all in view of the current available information you are cautioned not to place undue reliance on these forward looking statements.
Sebastian Valencia: I encourage you to read the full disclosure concerning four allocated statements within the earliest press release, issued on April 30, 2025.
Speaker Change: We encourage you to read the full disclosure concerning forward looking statements within the erroneous press release issued on April 32025, Let me now turn the call to me certainly on the Rossiya.
Leandro Garcia: Let me now turn the call to Mr. Leandro Garcia. Thank you Sebastian. Good morning and thank you for joining us today to discuss the quarterly results of the comp.
Speaker Change: Thank you, so often but morning and thank you for joining us today to discuss the quarterly results of the company.
Speaker Change: On slide two is our cautionary statement importantly formation that I encourage you to read.
Leandro Garcia: On slide two is our cautionary statement, important information that I encourage you to read. Today, we will be discussing our performance for the first quarter of 2025, highlighting key achievements and strategies moving forward.
Speaker Change: Today, we will be discussing our performance for the first quarter 2025.
Speaker Change: Highlighting key achievements and the strategy is moving forward after.
Leandro Garcia: After the presentation, we will be available for our Q&A session, where our team will be happy to answer your questions.
Speaker Change: After the presentation, we will be available for Q&A session, where our team will be happy to answer your questions.
Leandro Garcia: Next slide, please. I would like to highlight a few key areas that contribute to our strong first quarter 2025 result. Our first quarter 2025 EBITDA from direct operations was $126 million, compared to $95 million reported in the first quarter of 2025. This performance is also reflected in a higher VDA margin of 41% compared to 38% in the previous year. First quarter 2025 net income was $140 million compared to $61 million in net income for the first quarter of last year. The year ended with a cash position of $648 million and a total debt of $862 million, resulting in a leverage ratio of 0.46 times.
Speaker Change: Next slide please.
Speaker Change: I would like to highlight a few key areas that's going through its doors strong first quarter 'twenty 'twenty five for salt.
Speaker Change: Our first quarter 'twenty 25, EBITDA from direct operations was $126 million compared to $95 million reported in the first quarter or 2024.
Speaker Change: This performance is also reflected in the higher the margin of 41 person compared to 58% in the previous year.
Speaker Change: First quarter 2025, net income was 140 million compared to 61 million and net income for the first quarter of last year.
Speaker Change: The year ended with a cash position of she found around 48 million.
Speaker Change: Total debt of $862 million, resulting.
Speaker Change: That's a great deal of zero point 46 times.
Leandro Garcia: This debt level increased against the previous quarter as it includes Buenaventura 2032 notes. It also considers only the outstanding amount of our 2026 notes. The total capex for the quarters amounted to $36 million, with $22 million allocated to the San Gabriel project. On April 23, 2025, Buenaventura received $49 million in dividends related to its stake in Cerro Bell. The first quarter of 2025, silver production reached 3.7 million ounces, 20% higher compared to the 3.1 million ounces produced during the same period of last year. Of this total, 2.2 million ounces came from Junepac due to full-scale operations.
Speaker Change: This debt level increase against the previous quarter as he didn't lose one of in Buda. So any 32 notes. It also goes to either only they'll standing amount will forward 'twenty 'twenty six notes.
Speaker Change: The total capex for the quarter amounted to $36 million with 22 million allocated to the San Gabriel project.
Speaker Change: On April 23, 2025, when I went through that received 49 million in dividends related to the stake you settle badly.
Speaker Change: The third quarter of 2025, she's their production reached three 7 million ounces, 20% higher compared to the 3.1 million ounces producing during the same period of last year.
Speaker Change: Of this total $2 2 million ounces came from Doom puck due to full scale operation.
Leandro Garcia: Copper production decreased 21% year over year, primarily due to the remaining El Brocal open pit inventories, which were processed in the first quarter of 2021. Gold production was 27,980 oz compared to 36,593 oz produced in Q1 of 2024, primarily due to the decreased production at Tambomayo and Oropampa, and partially offset by increased production at La Zanca.
Speaker Change: Copper production decreased 21% year over year, primarily due to the remaining April Gallup MPD inventories, which were processed in the first quarter of 'twenty 'twenty four.
Speaker Change: Gold production was 26 27988 ounces compared to 36593 ounces produced in the first quarter 'twenty 'twenty four primarily due to the group's production that stumble my uncle bump on partially offset by increased production.
Speaker Change: That's right.
Leandro Garcia: Finally, consolidated reserves have been updated as of the end of 2024. Gold reserves have increased by 482,000 oz. Silver reserves have increased by 61 million ounces and copper reserves have increased by 253,000 tons.
Speaker Change: Finally, consolidated research being updated as of the end of 'twenty 'twenty four gold reserves have increased by 482000 ounces silver reserves have increased by 61 million ounces and copper reserve increased by 253.
Speaker Change: Bounce in phones.
Speaker Change: Moving on to our cost structure and slide four.
Leandro Garcia: Moving on to our cost structure in slide four, the all-in sustaining cost for the first quarter of 2025 decreased by 83 percent compared to the same period in the previous year. It is important to highlight that the year-over-year decrease in all-in sustaining cost was primarily driven by lower commercial deductions and higher by product price.
Speaker Change: The all in sustaining costs for the first quarter of 'twenty or 'twenty five degrees by 83% compared to the same period in the previous year. It is important to highlight that the year over year degrees, you know leading sustaining cost was primarily driven by lower commercial deductions and higher by broke break.
Leandro Garcia: Moving on the Cost Applicable to Sales Trend. As you can see, copper, gas, cost applicable to sales, Increased year-over-year mainly due to lower by-product credit contributions at El Brocal. Silver cash has increased year over year but was consistent with the expectations for this quarter. Gold cast has increased year over year, primarily driven by lower volumes in grates at Tambomayo and Orcopampa.
Speaker Change: Moving on to cost applicable to sales strength as you can see Goldberg gosh goes up people want to see.
Speaker Change: Increase year over year, mainly due to lower my brother Gregg contributions that they've got it got it.
Speaker Change: Silver gosh, patchy increase year over year, but the west consistent with your expectations for this quarter.
Speaker Change: Oh gosh increase year over year, primarily driven by lower volumes in grades at Thunder Bayou nautical boat.
Speaker Change: On the next slide we will present free cash flow generation.
Leandro Garcia: On the next slide, we will present free cash flow generation. The first quarter 2025 cash position increased during the quarter, mainly driven by net cash inflows from financial activities. An additional $100 million was raised through the bond issued in February 2025 and the remaining amount of the 2026 bond. In addition to these drivers, the bid to free cash flow reconciliation reflects Buenaventura's significant capex investment related to San Gabriel.
Speaker Change: The first quarter 'twenty 25, gosh position in Greece during the quarter, mainly driven by net cash inflows from financial activities and additional.
Speaker Change: 100 million, what's raced through their own issues.
Speaker Change: In February 'twenty.
Speaker Change: February 25, and then the remaining amount over the 2020 seats booked.
In addition to these drivers they beat that to free cash flow reconciliation reflects when it went out into without significant capex investment related to sungard yet.
Speaker Change: Moving on to slide six this is nice shows got Sungard is cumulative progress reaching C 17, 9% overall completion by the first quarter 2025.
Leandro Garcia: Moving on to slide six, this slide shows San Gabriel's cumulative progress, reaching 79% overall completion by the first quarter 2025. Primarily driven by finishing the engineering and procurement as well as the construction as 75% of advance. As March 2025, San Gabriel's total capex has reached $505 million. The guidance for the full year 2025 has been revised to the range of $220-$250 million. The construction timeline remains on schedule. We anticipate commencing the ramp up phase in the third quarter of 2025, followed by the production of the first gold bar in the fourth quarter of 2025.
Speaker Change: Primarily driven by finishing the engineering and procurement as well as the construction I see 75% of our bass.
Speaker Change: March 20 to 25, so and Gavea Stardock optics has reached $505 million.
Speaker Change: The guidance for the full year 'twenty to 'twenty five has been reviewed and revised the range of 220 $250 million.
Speaker Change: The construction timeline remains on schedule, we anticipate commencing their ramp up phase in the third quarter of 2025, followed by the production of their first gold bar in the fourth quarter of 2025.
Leandro Garcia: However, this milestone remains subject to the timely approval to the necessary permits.
Speaker Change: However, these milestone remain subject to the timely approval through the necessary permits.
Speaker Change: On the next slide we are showing their processing plants programs that will operate at 3000 tonnes per day.
Leandro Garcia: On the next slide, we are showing the processing plant programs that will operate at 3,000 tons per day. Currently, the primary crusher mechanical works are at 100%. The sack and bolt mechanical works are at 98%. And finally, the shield tank's mechanical works are at 97%.
Speaker Change: The primary crusher mechanical works alright, 100%.
Speaker Change: They suck on both mechanical walks out of 98% and find out what it is sheila thanks.
Speaker Change: Tanks mechanical works are at 97%.
Leandro Garcia: Moving on, we can see the progress of the main components of the plan. Moving on, slide nine, we are showing the progress at the filter tailings plant that currently is at 74%.
Speaker Change: Moving on we can see the progress of the main components of the plant.
Speaker Change: Moving on.
Speaker Change: <unk> nine we are showing the progress of the filter tailings plan that currently is at 74%.
Speaker Change: To conclude the presentation I would like to share a few final thoughts.
Leandro Garcia: To conclude the presentation, I would like to share a few final thoughts. San Gabriel continues to advance steadily, with 79% overall progress and on track to produce its first gold bar in the fourth quarter of 2025. Junpac is proving to be a key growth driver, delivering 2.3 million ounces of silver in the first quarter and generating a strong cash flow. We are also driving growth by increasing our gold, silver, and copper reserves, led by the strength of our flagship operations.
Speaker Change: Sangamo data continues to advance its steadily with 79% over our progress and on track to produce its fears gold bar in the fourth quarter of 'twenty or 'twenty five.
Speaker Change: Zoom back East provide is proving to be a key growth driver delivering two 3 million ounces of silver in the first quarter generating a strong cash flow.
Speaker Change: We are also driving growth by increasing our gold silver and copper sales led by the strength of our flagship operations.
Leandro Garcia: And finally, our focus strategy remains unchanged. We are committed to our corporate guidelines prioritizing reserve growth, EBITDA maximization, and cost efficiency at our flagship mines and in our strong pipeline approach.
Speaker Change: Finally, our focus our strategy remains unchanged.
Speaker Change: We are committed to our corporate guidance we already.
Speaker Change: <unk> reserved wrote it beat that maximization and cost efficiencies that were flagged flagship mines, you know work on and you know we're strong pipeline of projects.
Leandro Garcia: Thank you for your attention, I will hand the call back to the operator to open the line for questions. Operator, please go ahead. Thank you, sir.
Speaker Change: Thank you for your attention I will hand, the call back to the operator to open the line for questions. Operator. Please go ahead.
Speaker Change: Thank you Sir if you would like to ask a question. Please press Star then one on your telephone keypad.
Unknown Executive: If you would like to ask a question, please press star then one on your telephone keypad. If your question has already been addressed and you'd like to remove yourself from the queue, please press star then 2. Once again, let's start with one if you have a question.
Speaker Change: If your question has already been addressed and he'd like to remove yourself from Hugh Please press Star then two.
Speaker Change: Once again that started in the water if you have a question.
Speaker Change: Today's first question comes from Carlos de Alba with Morgan Stanley. Please go ahead.
Carlos de Alba: Today's first question comes from Carlos de Alba with Morgan Stanley. Please go ahead. Yeah, thank you.
Speaker Change: Yes, Thank you and good morning, everyone.
Leandro Garcia: Good morning, everyone. So, I'm San Gabriel, and maybe I'll group some together. So, the CAPEX increase in 2025, is this, does this represent an increase on the overall CAPEX of the project or just shifting maybe from, you know, what you would expect to invest in 2026, and maybe you're investing it now in 2025? If you could clarify that, it would be great. And given the CAPEX that we're discussing now going up, what is the new expected return on this investment that you see as you get closer to completion, and what permit? are pending that may prevent you from starting production this year.
Speaker Change: So what I'm, saying.
Maybe oh.
Speaker Change: Groups together and so the Capex increase.
Speaker Change: In 2025 is this though these represent an increase on the overall capex of the project or just shifting maybe from what you would say they had to invest in client joining fee. So maybe youre investing it now in 2025, if you could clarify that will be great and given.
Speaker Change: The capex.
Speaker Change: Capex that we're discussing now going up what is the new expected return on these investments.
Speaker Change: Then you see.
Speaker Change: Get closer to completion and what permits are.
Speaker Change: Pending yeah.
Speaker Change: May prevent you from starting production this year, but assuming that you get those permits.
Leandro Garcia: But assuming that you get those permits, what would be the range of production that you see for 2025 and maybe 2026 out of San Gabriel?
Speaker Change: It would be.
Speaker Change: The range of the adoption that you see for 2025, and maybe 2020 sheets and Osaka.
Carlos de Alba: And my second question is, if you could maybe give us a A reminder of the exploration budget, the exploration expense that you spent to run through your P&L, both for operating units and non-operating units in 2025. And you can also comment on the general initiative expenses. They came a little bit higher in the first quarter.
Speaker Change: Gabriel and my second question, if you could maybe give us a.
Speaker Change:
Speaker Change: And a reminder, oh.
On the exploration budget and exploration expense that you're staying to run through your P&L and both for <unk>.
Speaker Change: Operating units and non operating unit in 2025, and you can also comment on the.
Speaker Change: General and administrative expenses, they came out and it will be higher in the first quarter. How do you see that line also for the year as well as SG&A. Thank you.
Leandro Garcia: How do you see that line also for the year as well as H&A? Thank you. Thank you, Carlos, for your question.
Speaker Change: Yeah.
Speaker Change: Thank you Carlos for your question.
Leandro Garcia: Regarding San Gabriel, is the CAPEX to be executed in 2025? There are some geotechnical and hydraulic issues that Renzo will explain to you further. In terms of the return, remember that this project was decided to go on with prices of $1,600, so it will maintain the same profitability for the company. In terms of the permits, we are referring to the construction authorization, sorry, the operation authorization that will be granted once we finish the construction.
Speaker Change: Regarding things San Gabriel.
Speaker Change: There is the Capex do we do that it would be executed in 2025.
Speaker Change: Hey, there are some geotechnical and Israeli.
Speaker Change: Issues that range.
Speaker Change: And so we you will explain you for there.
Speaker Change: In terms of a the return remember that even the these project was.
Speaker Change: And decided to go on with the wheat prices of 1600. So it will maintain the same profitability or loss for the company in terms of the permits.
Speaker Change: We are referring to the construction authorization.
Speaker Change: That Oh, I'm, sorry, the operation I mean authorization that will be a granted once we finish the construction.
Yeah.
Leandro Garcia: I don't know if you want to go further with it. Maybe, Leandro, can you remind us what exactly is the return or the profitability that you are seeing for San Gabriel, and just to clarify, what is now the total CAPEX for the project that you see after the increase in 2025? The total capex should be between... $720 and $750 million.
Speaker Change: Don't know if you want to maybe they ended up well like Florida.
Speaker Change: What what exactly is the return or the profitability that you are seeing.
Speaker Change: C enforce I'm going to be had and just to clarify at what is now the total capex for the project that you see a steady increase in 2025.
Speaker Change: The total capex should be between <unk>.
Speaker Change: Mm.
Speaker Change: <unk> hundred 20 and $750 million.
Speaker Change: Okay. Thank you and I ride with that project.
Leandro Garcia: Thank you. And the IRR of the project or the net present value of the project? It's around 12%, 13%. Great.
Speaker Change: The net present value of the project.
Speaker Change: It's around 12% 13%.
Leandro Garcia: Thank you, Leandro. Thank you.
Linda: Great. Thank you Linda.
Linda: Thank you.
Unknown Executive: And as a reminder, if you would like to ask a question...
Speaker Change: I Wonder if you would like to ask their questions.
Unknown Executive: Yes, there are a couple of questions and the answer from Renzo and also there are a couple of questions on exploration expenses and the GNA. We can begin with Renzo. Yes.
Linda: Oh, sorry apologize there, yes, there are a couple of questions.
Linda: And the answer for four four from vessel.
Linda: And also there are a couple of course exploration expenses.
Linda: And the journey.
Linda: We we can begin with with a pencil.
Linda: Yeah.
Renzo Macher: So, in regards to the problems we have with geotech and hydrogeology as well as some excess inadequate material beyond our confidence level, those problems have been resolved but we require some additional work in the form of slope reinforcement, additional layers of grouting in the water dam. Some to find a place to temporarily place these sectors in adequate inventory and add some Some excess query production to compensate. So all those things have been already done or in the process of being completed.
Linda: So in regards to the programs, we have you taken hydro yellow, yes, well have some excess inadequate material beyond our confidence level.
Linda: Those plants has been resolved.
Linda: It will require some additional work in the formal.
Linda: Hope reinforcement, Additionally, yourself grouting and de watered down.
Linda: Yeah.
Hum.
Linda: To find a place to temporarily nasty sixes inadequate inventory and at some.
Linda: Some extra square reproduction to compensate so.
Linda: All those things have been already done.
Linda: Early in the process of being completed.
Linda: Okay.
Renzo Macher: And that was the.
Linda: What where are we gonna be spending all this money. Besides these and exercise works, we have like $45 million asking finishing.
Renzo Macher: What, where are we going to be spending all this money besides these excess works? We have like $45 million in finishing the electrical and mechanical and commissioning of the plant, the tailing storage facility, another $25 million, the mine development, another $35 million and the power line, another $50 million. We are maintaining our Our committed date for the first goal during the fourth quarter.
Linda: Finishing the electrical and mechanical and commissioning of our plan.
Linda: Oh, sorry.
Speaker Change: 25, new homeowners the mine development.
Linda: And Laura on empower now.
Linda: Yes.
Linda: We are maintaining our.
Linda: Or can you give me the date for the first of all regarding the fourth quarter.
Linda: No. We we we got thank you Rachel we're going to continue with the exploration expenses and investment.
Leandro Garcia: Now we can, thank you Renzo, we can continue with the exploration expenses and investment. Yes, Leandro.
Linda: Yes.
Daniel Dominguez: This is Daniel. Thank you, Carlos, for your question. In terms of exploration, we can divide it into two kinds of explorations. The first one is the explorations in the operating unit. This is basically for infill drilling to convert the resources into reserves. The normalized amount for the quarters, the next quarters, is in the $12 million. For the overall year 2025, we are in the order of $40 to $45 million. In addition to this, we have the non-operating areas of explorations, which will be in the order of $4 to $5 million each quarter. For the entire 2025, we should be in the order of $20 million.
Linda: This is Andy and thank you Carlos for your for your question in terms of exploration regard divided into two kinds of exploration. The first one is the.
Linda: Explorations in the operator this is basically for infill drilling infill drilling to convert the resources into reserves.
Linda: B.
Linda: The normalized.
Linda: The amount for the quarter. The next quarter is in the order of $10 million to $12 million for the overall year 2025, we are in the order of $40 million to $45 million.
Linda: In addition to these we have the non operating.
Areas explorations, which will be in the order of $4 million to $5 million.
Linda: Each quarter or four reporting <unk> five we should be in the order of $20 million one of the most.
Daniel Dominguez: One of the most important activities here is the exploration in El Brocal, within the areas of Unish and Bojorquez. Regarding the administrative expenses, yes, as you mentioned, they are a little bit higher than we were expecting, but this is basically due to the higher workers' participation that we are registering because of the higher profits that we report from our direct operations. The amount of administrative expenses for each quarter this year will be in the order of $15 to $17 million. For the entire year, we expect around $60 to $65 million.
Linda: Important.
Linda: Activities here.
Linda: The exploration in Alberta.
Linda: Within the areas of <unk>.
Linda: The administrative expenses.
Linda: You mentioned it is they are a little bit higher than we were expecting.
Linda: Is basically due to the higher workers' participation that we have.
Linda: We are registering because of the higher.
Linda: We report from our direct operations.
Linda: The amount of admin.
Linda: <unk> expenses for each quarter. This year will be in the order of $15 million to $17 million for the entire year, we expect around $60 million to $65 million.
Danielle: Thank you very much Danielle.
Unknown Executive: Thank you very much, Daniel, Renzo, and Leandro. Thank you, everyone. Thank you. And as a reminder, please press star then 1 to ask a question.
Linda: No.
Linda: Thank you Carlos.
Speaker Change: Thank you and as a reminder, please press Star then one to ask a question. Our next question today comes from Tom Yeah, Jackson Sconnix with Scotiabank. Please go ahead.
Tanya Jakusconek: Our next question today comes from Tanya Jakusconek with Scotiabank. Please go ahead. Great. Good morning, everybody. Thank you so much for taking my questions.
Linda: Oh great.
Linda: Everybody. Thank you so much that taking my question and maybe Daniel I'm, just kind of finish off with just some of the forecast.
Daniel Dominguez: Maybe, Daniel, I'm just going to finish off with you just on some of the forecasting. Can you remind me now what your capital expenditure is going to be for this year? Previously, we had $330 million to $355 million. I'm just wondering if that is still valid with this movement in the San Gabriel capital. Tanya, we expect an increase in the capex, as Renzo mentioned. San Gabriel will add some some additional capex for the construction of San Gabriel. We expect for this year in total around 400 to 420 million dollars. From this, we have already spent more than 80 million dollars.
Linda: Can you remind me now what's your capital expenditure is going to be for this year. Previously we had 330 to 355 million I'm. Just wondering if that is valid what new money in the bank Gabrielle capital.
Linda: We expect an increase in the Capex range from reinsurance.
Linda: We'll add some some additional capex for four for construction in San Gabriel.
Linda: We expect for the year in total around $400 million to $420 million.
Linda: From this we have already spent.
Linda: More than $80 million.
Linda: Okay.
Daniel Dominguez: Okay. And maybe just so I understand the Delta, I think it's coming $50 million more than Gabriel, $50 million or thereabout more than we expected from the original budget of Q4. Can you just remind me that $50 million, what was the overrun? All right. Okay. So the overall run of It was based on this inadequate material and the hydrogeological underneath the water dam, basically. So we have to move a lot more inadequate material to a new storage area. We need to do several additional layers of grouting. And obviously these. This scrambled a little bit the coordination between the contractors.
Linda: Maybe just so I understand the Delta I think.
Linda: And I think that having 50 million more.
Linda: Al.
Linda: Finally, I know there are about more than we are.
Linda: Yeah.
Linda: The original budget.
Linda: Or can you just remind me.
Linda: Maryann.
Linda: What was the overrun.
Linda: Right.
Linda: Alright, okay.
Linda: All right.
Linda: Run off.
Linda: And it was based on the United way material and Andy I doing geological underneath the water basically.
Linda: So we have to move a lot of.
Linda: A lot more inadequate material to that new considering the new storage area. We.
Linda: We need to do several additional layers of grouting.
Linda: And obviously this is scrambling a little bit.
Linda: The coordination between the contract. So we are in that process.
Daniel Dominguez: So we're in that process of accelerating certain activities to maintain the date of the first go around. That's that's kind of what it was out of the school. Okay, so maybe just for myself to understand, when you talk about inadequate material, are you talking about waste rock? No, no, no, I'm talking about like queries, queries that were supposed to have like good feeling material. We found some layers of inadequate material. Okay. And so you have to move this facility to another place. Is that the correct understanding? No, no, no. We need to, we need to remove all that inadequate material in order to reach the foundation level.
Linda: Actually what are you doing certain activities to maintain today does that first of all Bob.
Linda: That's kind of what what was missed.
Linda: Scope.
Linda: Okay. So.
Linda: Maybe just on my part to understand when you talk about inadequate materiality youre talking about waste rock.
Linda: No no no I'm taking them all.
Linda: All right query square, we used to have was supposed to have my good.
Linda: Building material.
Linda: We found some lay yourself, notably in Nigeria.
Linda: Okay, and so you have to move that.
Linda: Okay.
Linda: Other place is that correct understanding none.
Linda: We need to we need to remove all of that.
Linda: In order to reach the foundational level and we need to do.
Daniel Dominguez: And we need to, to expand our existing inadequate material deposit to hold this additional quantity. OK, and is this a water storage facility? I'm just trying to understand what's going to be placed on top of that. Oh, no, no, this is a this is where the where the filtration plan is the water storage for a different issue. Yes, no, the water storage facility have some infiltration problems. So we we initially we expected to do kind of a couple of layers of of grouting, but we ended up putting like seven layers of grouting that that took some time and we're going to be reinforcing the sides of the water dam as well.
<unk>.
Linda: Material the Boston to hold these additional.
Linda: Yes.
Linda: Okay.
And.
Linda: Our water storage facility I'm, just trying to understand what is going to be placed on top of that.
Linda: This is a word there.
Linda: Integration planning the water storage facility for.
Nishu: Nishu, yes, not the winterstein facility absolve infiltration Rollins Hall.
Nishu: Initially we expected to do kind of a couple of million Oh Oh.
Nishu: Routing, but we ended up putting nextgen in the year so growing back.
Nishu: Some time and what have you you mean enforced in the sites of the water that Manuel.
Daniel Dominguez: At this point, the dam is at 35% of its total height so far. We already finished the rainy season, so we're starting to see some increased speed in that.
Nishu: Okay disappointed at that.
Nishu: 35% of its total height. So far we already finished the rainy season and so we're starting to see some increases speaking now.
Daniel Dominguez: OK, so it's two, two, two different things, the filtration plant and the water dam. OK, got it. OK. Yes.
Nishu: Okay. So two different things in filtration plant and that was okay got it okay. Yeah. Thank you explanation on that can I then ask.
Daniel Dominguez: Thank you. Explanation on that.
Unknown Executive: Can I then. What we are going to, you talked a lot about the open, what's happening on surface at San Gabriel. So I've talked a lot about the mill.
Speaker Change: What we are going to court you talked a lot about me Oh, Oh come out what's happening on Seroquel quite frankly, everybody else. So I've talked a lot about now.
Juan Carlos Ortiz: Can we go to the underground? So where are we now on the underground with respect to number one, the training of the underground miners? Number two, where are we with respect to soap development, i.e. getting them ready for production? And number three, where are we on the stockpile on surface? And are we still on target to be at that 300,000 ton by October? So just those three on San Gabriel.
Speaker Change: Can we go to the underground so where are we now on the underground with respect to number one.
Speaker Change: <unk> our go underground miner.
Speaker Change: Number two where are we with respect to <unk>.
Speaker Change: Development I E.
Speaker Change: I'm ready for production and number three where are we on the stockpile on surface.
Speaker Change: Are we still on target to be at that 300000 ton by October.
Speaker Change: Yeah.
Speaker Change: Thank you Barbara maybe Juan Carlos Cobo with with the answers.
Juan Carlos Ortiz: Thank you, Bárbara.
Juan Carlos Ortiz: Maybe Juan Carlos can help us with the answer. Well, regarding training, we are hiring the new crews for Buenaventura in order to be ready by the end of July that we work our first delivery of equipment, underground equipment. So APROC is going to deliver our first crew on an escape route July, August, September, and the last crew, the last fleet, October. So we have hired the first crew and the second is in the process of being hired and we are training them.
Speaker Change: Sure Andrew.
Speaker Change: Well regarding frame where hiring the new crew.
Speaker Change: Crews for went out in July.
Speaker Change: Really by the end of July that we were our first.
Speaker Change: The delivery of equipment and the Robert So could you run it anywhere.
Speaker Change: <unk> crew scheduled July August September and the less true.
Speaker Change: Fleet.
Speaker Change: So we have.
Higher deferred SKU.
Speaker Change: So good news on the brokers can be higher.
Speaker Change: And we're training them we have.
Juan Carlos Ortiz: We have the Tambomayo mine. using this mining method right now. So we are bringing the executive, the engineers, the supervisors to Tambo Mayo. They are being trained there in order to know all the details about the mining method under current field. So it's part of the process. We are on track of doing that. Regarding the stock development, we are opening, according to the plan, the galleries across the old body. We have right now in order of 60,000 tons of material on surface. So it's according to the plan. Right now, we have the contractor, Mass Eraseries, with three fleets on site, with the capabilities of doing between 600 meters to 800 meters per month.
Speaker Change: The number of your mind.
Speaker Change: Using these mining methods right now so we are bringing the trigger D. The engineers the supervisors to double Myer Caribbean trained there no oldest you talked about the 90 megawatt under got on the field. So it's part of the process. We are on track to meet that.
Speaker Change: Yeah.
Speaker Change: Regarding the still developing we are operating according to the plan the galleries across the ore body, we have right now.
Matthew: So Matthew yes, or.
Matthew: So according to the plan right now we have the contractor.
Matthew: We do.
Matthew: <unk>.
Matthew: Alright.
Matthew: Capabilities are doing between 600 meters to 800 meters per month.
Juan Carlos Ortiz: It depends what kind of ground we need to cross each month. So we need to put, like, steel reinforcements, probably more close to the 600 meters per month. And we have another month where we only can advance with shotcrete, probably closer to the 800 meters per month. So depending on the schedule of each month, we are in that range with the contractor. And in July, we will have our first crew of Buenaventura on site.
Matthew: What kind of ground, we need to gross each month, so we need to do this deal.
Matthew: <unk>.
Forsman: Forsman <unk>, probably more close to the 600 meters per month.
Forsman: We have on our long, where we only can advance which showed creek probably closer to the 800 meter remark. So depending on the scale of each month, we are in that range with a contractor.
In July when we have our first.
Forsman: We're not into that one.
Forsman: Yeah.
Juan Carlos Ortiz: Okay, so it looks like everything's going to plan and I know we talked about the ground conditions in your previous conference call that you know you were requiring concrete cement required and obviously reinforcement is and little water if you didn't have water underground. Are you still seeing similar ground conditions? Nothing worse? Yes, it's what is expected. It's what we call ROC Math Category 4. It's pro-ground. Yes. It needs to be supported with steel arches. In some cases, we have a little bit better ROC. It's called Category 3B that can be developed only with short rhythm balls.
Forsman: Okay.
Forsman: It looks like everything's going to cram in I know.
Forsman: Talk about the ground conditions.
Forsman: In your previous conference call that you know you were acquiring concrete and not require them.
Forsman: Obviously reinforcement and little water. If you didn't have water underground are you still seeing similar ground conditions nothing right.
Forsman: Yes.
Forsman: Victor.
Forsman: What we call rock.
Forsman: Matt.
Forsman: Kathy we're ready for <unk>.
Forsman: Need to be supported steel arches.
Forsman: Some cases, we have a little better rock, it's called category III B that can be developed only with short read them both.
Forsman: Okay.
Juan Carlos Ortiz: Okay.
Unknown Executive: Well, thank you so much for that.
Speaker Change: Thank you so much for that and then just my final question, if I can ask on Mac Hummel Akshay.
Juan Carlos Ortiz: And then just my final question, if I can ask on Comalache, I know we were expecting permits in Q1, so we could start construction in Q2 and resume fresh or leaching in Q3. Do we know where we are? Have we gotten the permits and have we started construction? Yeah. We were granted the construction permit in March. We started construction in April. We are starting construction right now of the expansion of the path, while at the same time we are asking for stockpiling fresh ore on top of the existing stock and on the existing path. So we have two permits running in parallel, one for the lateral expansion of the path and one for piling more ore on top of the existing one.
Speaker Change: We were expecting permits in Q1, so we can start construction in Q2.
Speaker Change: Wisdom fresh ore leaching in Q3.
Speaker Change: And do we know where we are have we gotten the permits and have we started construction.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes, yes, yes, we were granted the construction permit a march we start construction in April we are starting right now or the expansion will take that.
Speaker Change: While at the same time, whereas Q4 is stockpiling fresh ore on top of the existing stock.
Ryan: So we have to bear me, Ryan and you buy one from the lateral expansion.
Ryan: Well for the piling more or on top of the existing one so we arent where according to the plan with big too.
Juan Carlos Ortiz: So we are according to the plan, we expect to pile fresh ore on top of the path by August this year. So after we put the ore in there, probably you need to wait 60 days in order to allow the solution to come all the way down to the geomembrane and report to the extraction facility. So we start placing ore in August. It will be September, October, late October, early November that we will start seeing an increase in coal production in Cosmolaches.
Ryan: Hi, fresh ore on double.
Ryan: But by August the year. So after we bought the building there probably you need to wait 60 days in order to allow the solution to keep all the way down to the Jimmy brain in regard to the extraction facility. So we start.
Ryan: Boise or in the <unk>.
Ryan: It would be September October late October early November that we really start to see an increase in gold production equal much.
Okay. Thank you so much stuff with that good luck on that.
Juan Carlos Ortiz: Okay, thank you so much for that and good luck on both Camaloche and San Gabriel. Thank you.
Shane: Camelot, Shane and thank everybody out.
Ryan: Thank you. Thank you.
Thank you. Our next question today comes from Alex Hacking with Citi. Please go ahead.
Alex Hacking: Our next question today comes from Alex Hacking with Citi. Please go ahead. Yes, good morning. I just wanted to clarify on San Gabriel. I apologize. When you talk about the water dam. Are you, is that the TSF? Is that where the tailings are being deposited? Thank you.
Alex Hacking: Hi, Yes, good morning, I, just wanted to clarify on San Gabriel.
Ryan: I apologize.
Alex Hacking: When you talk about the water dam.
Speaker Change: Is that the TSA is that where the tailings are being deposited thank you.
Alex Hacking: No matter what.
Juan Carlos Ortiz: No, the water dummy is where we're going to be storing fresh water to use in the in the plant. The tailing and storage facility, it's a different component, and it's going to be dry stacking. Okay, thank you. So I just want to clarify that. And so When you talk about the geotechnical and hydraulic issues, those are exclusively in the CAPEX overrun. Is it exclusively related to that water dam or are there other issues as well? Thanks. You have to water them and have some. The infiltration that we found underneath the foundation was not according to the to what our original study meant.
Alex Hacking: I mean is where we're going to be starting fresh water to use in the in the plant.
Alex Hacking: The tailings storage facility anytime component.
Alex Hacking: He has got any stocking.
Alex Hacking: Okay. Thank you so I just wanted to clarify that so.
Alex Hacking: When you talk about the geotechnical and high hydraulic issues those are exclusively and the capex overrun is that exclusively related to that what the dam or there are other issues as well. Thanks.
Alex Hacking: Okay.
Alex Hacking: Yes, the wintertime.
Alex Hacking: Yes.
Alex Hacking: The situation then we fall underneath the foundation with not according to the.
Alex Hacking: With our originally studied me.
Juan Carlos Ortiz: So we have to do a lot more of of A grouting. Yes, we thought that three, two to three layers of grouting will be enough, we ended up with seven layers of grouting. And we reach the infiltration rate, the design infiltration rate. That's one problem. And the other problem, it's a query that was supposed to have enough material for filling, didn't have enough material, it was inadequate material. So we need to move it to reach the foundation level that that query and then replace it with another query. So that causes some. scrambling of the construction sequence that we are currently aligning against.
Alex Hacking: Well, we have to do a lot more off.
Alex Hacking: Okay.
Alex Hacking: Yes, we talked at three two to three years of routing will be announced we ended up with seven Mega still growing and we reach.
Alex Hacking: <unk> infiltration.
Alex Hacking: Infiltration did assign infiltration rates, that's one problem.
Alex Hacking: The other prong.
Alex Hacking: February.
Alex Hacking: We're supposed to have enough material for a feeling you didn't have it.
Alex Hacking: It was inadequate and agenda, so we need to move it to reach the foundation on their own.
Alex Hacking: Where are we and then replace it with another one.
Alex Hacking: All that cost in farming and.
Alex Hacking: Scrambling I'll take one quarter of the construction sequence that we're currently aligning again.
Yeah.
Juan Carlos Ortiz: Okay, thank you. Thanks for the clarification. That's helpful.
Alex Hacking: Okay. Thank you.
Alex Hacking: Thanks for the clarification Thats helpful.
Unknown Executive: And then I guess the follow up question.
Alex Hacking: And then I guess the follow up question I.
Unknown Executive: I guess around the transition to operating yourself at Uchichakwe, Yumpac, Brokal, you know, I guess, any update on... on how that process is going. Thank you.
Alex Hacking: Yes.
Alex Hacking: Around the transition to the operating.
Alex Hacking: Yourself.
Alex Hacking: Thank you Jacquie impact broke out.
Alex Hacking: I guess any update on <unk>.
Alex Hacking: And how that process is going thank you.
Juan Carlos Ortiz: Leandro, will you allow me to answer that part of the question? Yes. We already assigned the contract, the purchase order for Chacoa, Jumpaq, and Brokal to Sandvik. We have a schedule for bringing all the equipment on board. In the case of Chacoa and Jumpaq, because they are mid-size equipment, they are going to be delivered earlier, basically in the third and fourth quarter of the year. Only a small fraction of the equipment will be delivered early in 2026. We will replace all equipment. We will return any rental equipment that we have on the ground, so to give more continuity of operations on the ground.
Alex Hacking: Lastly, although we do yeah sure that BARDA Christian yes.
Alex Hacking: We already have signed the contract.
Alex Hacking: <unk> order for chocolate, Duke Umbro Kal to sandvik.
Alex Hacking: We have a schedule for bringing on the creeping on board.
Alex Hacking: In the case of Checkmark June packs, because our mid size agreement, they're going to be delivered earlier.
Alex Hacking: In the third quarter of the year always win burst approach a fraction of the crude that will be the liberty area in 2026.
Alex Hacking: We will replace older equipment.
Alex Hacking: We will return any rental equipment that we have underground so to me you got more.
Alex Hacking: Continue with you fulfill ratios underground, where we have also foodservice or semi con side from base Europe.
Juan Carlos Ortiz: We will have also full service of Sandvik on site from day zero. In the case of El Brocal, most of the equipment will be delivered on 2026 because this is a very large size of equipment, large loaders and large production drills. So most of the equipment will be delivered by early 2026, in the first and second quarter. Again, the strategy there is to save costs by doing the work by ourselves at a larger size. We have right now with the contractor loaders that are only 10 tons capacity, and we're moving into a different size of equipment, more close to between 14 for development, 14 tons loader for development, and 17 tons for production, to extract the ore from the stoves.
Alex Hacking: In the case, though it broke out most of the agreement will be delivered in 2026, because it is a very large size of COVID-19 largely loaders and large production release.
Alex Hacking: So most of the group will be delivered by early 2026 in the first and second quarter.
Alex Hacking: Again, the strategy there is to save costs by at least one of itself.
Alex Hacking: At a larger size, we have right now with the conductor loaders that only.
Alex Hacking: Capacity, we're moving into different size I think we'd be more close to between 14 for developing 44.
Alex Hacking: For development.
Alex Hacking: Don for production to instruct me or from the stopes.
Juan Carlos Ortiz: So that's the reason we're doing that in Arrocal, and again, it's going to be with SAMIC, with the same strategy, with full maintenance from day zero on site. Okay, perfect. Very helpful. Thank you.
Alex Hacking: That's the reason we're doing that.
Alex Hacking: Please go ahead.
Alex Hacking: With the same strategy redefault maintenance from dates here on site.
Speaker Change: Okay perfect very helpful. Thank you.
Speaker Change: Thank you that concludes the question answer session of today's conference call.
Unknown Executive: That concludes the question and answer session on today's conference call.
Leandro Garcia: I would now like to turn it back over to Leandro Garcia for closing remarks. Thank you very much. Before we conclude today's conference call, I would like to thank you for the time and effort dedicated to joining us. Your participation and input are greatly appreciated.
Leandro Garcia: Now I'd like to turn the box over the Leandro Garcia for closing remarks.
Leandro Garcia: Thank you Brad before we conclude today's conference call I would like to thank you for the time and therefore, maybe getting to joining us.
Speaker Change: Visually on input.
Leandro Garcia: I appreciate it. Thank you very much have a wonderful day.
Leandro Garcia: Thank you very much and have a wonderful day.
Unknown Executive: Ladies and gentlemen, that concludes Buenaventura's first quarter 2025 earnings results conference call. We would like to thank you again for your participation.
Speaker Change: Ladies and gentlemen that concludes one of them towards first quarter 2025 earnings results Conference call.
Leandro Garcia: We would like to thank you again for your participation.
Unknown Executive: You may now disconnect.
Speaker Change: You may now disconnect.
Leandro Garcia: Okay.
Leandro Garcia: [music].
Leandro Garcia:
Leandro Garcia: Okay.
Leandro Garcia: Yeah.
Unknown Executive: Tanya Jakusconek, Alexander Hacking, Ruslan Sotedo, Leandro Raggio, Juan Zevallos, Daniel Vera, Renzo Macher, Leandro Raggio, Juan Ceres, Aldo Massa, Sebastian Carrasco, Compania de Minas Buenaventura SAA Sponsored ADR © BF-WATCH TV 2021 © Dolores Huerta & Cesar Perez © transcript Emily Beynon
Leandro Garcia: [music].
Leandro Garcia: Yeah.
Leandro Garcia: Yeah.
Leandro Garcia: [music].
Leandro Garcia: Yeah.
Leandro Garcia: Okay.
Leandro Garcia: Yeah.
Leandro Garcia: [music].
Leandro Garcia: Okay.
Leandro Garcia: [music].
Leandro Garcia: Sure.
Leandro Garcia: Okay.
Leandro Garcia: Okay.
Leandro Garcia: Yeah.
Leandro Garcia: Yeah.
Leandro Garcia: [music].
Yes.
Leandro Garcia: [music].
Leandro Garcia: Yes.
Leandro Garcia: [music].
Leandro Garcia: Yeah.