Buenaventura Announces Second Quarter 2018 Production and Volume Sold per Metal Results

BusinessWire - Earnings News

LIMA, Peru–()–Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE:BVN; Lima Stock Exchange:BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced preliminary 2Q18 production and volume sold results as well as full year 2018 operating guidance (100% basis).


2Q18 Production per Metal and 2018
Operating Guidance (100% basis)









Gold (Oz.)                                
Orcopampa       39,987       35,694       75,681       120k – 140k
Tambomayo       33,693       31,173       64,866       110k – 130k
La Zanja       17,722       15,660       33,382       70k – 80k
Tantahuatay       29,915       39,557       69,473       160k – 180k
Yanacocha       104,233       115,342       219,575       470k – 545k
El Brocal       7,029       5,924       12,953       25k – 30k
Silver (Oz.)                                
Uchucchacua       4,413,249       4,005,948       8,419,196       17.2M – 18.6M
Julcani       504,155       620,276       1,124,431       2.1M – 2.4M
Mallay       155,000       134,936       289,936       0.4M – 0.5M
Tambomayo       1,019,915       1,106,694       2,126,610       3.0M – 3.5M
El Brocal       739,454       967,763       1,707,217       4.6M – 5.0M
Lead (MT)                                
Julcani       283       231       514       1.0k – 2.0k
Uchucchacua       4,184       4,762       8,947       18.0k – 20.0k
Mallay       504       447       951       0.5k – 2.5k
Tambomayo       856       814       1,670       2.5k – 4.5k
El Brocal       3,737       4,700       8,438       25.0k – 35.0k
Zinc (MT)                                
El Brocal       13,797       12,353       26,151       45k – 55k
Uchucchacua       4,575       4,842       9,418       18.0k – 20.0k
Mallay       952       1,187       2,139       3.0k – 3.6k
Tambomayo       2,562       1,998       4,560       7.0k – 8.0k
Copper (MT)                                
El Brocal       10,482       11,173       21,655       45K – 55K

Production Comments

Gold Operations

  • Orcopampa:

In light of the Company’s strategy to prioritize its De-bottlenecking Program over ore mineral extraction, Buenaventura’s management has made the decision to temporarily reduce annual production guidance for its Orcopampa asset in order to centralize the underground operation. A more detailed explanation will be provided during Buenaventura’s second quarter 2018 results conference call.

  • Tambomayo:

Operating at full capacity. 2018 guidance has been confirmed.

Second quarter production declined due to a change of its mining contractor. The same contractor used at Tantahuatay, San Martín Contratistas Generales S.A, has been hired as the new contractor at La Zanja, leveraging important synergies between the two mines. 2018 guidance therefore remains unchanged.

  • Tantahuatay:

Positive shift in the second quarter production as was previously announced (the first quarter was affected by heavy rains). 2018 guidance has been confirmed.

Silver Operations

  • Uchucchacua:

Silver and Lead guidance remains unchanged. Zinc guidance has been increased due to improved grades in the Cachipampa area.

As was announced in previous quarters, the Julcani operation has been centralized, thereby improving operational efficiency. 2018 guidance has been confirmed.

Centralizing and stopping the deepening of the mine has achieved positive results. 2018 guidance has been confirmed.

Base Metals Operations

  • El Brocal:

The production mix has been modified within El Brocal´s 2018 mining plan. More production will be derived from the polymetallic open pit mine than was previously announced in early 2018. The plan is to smoothly and efficiently transition the underground operation from 8k TPD to 13k TPD. El Brocal´s 2018 annual EBITDA budget will not be affected.

Volume Sold

  2Q18 Volume sold per Metal (100% basis)







Gold (Oz.)                        
Orcopampa       40,015       35,155       75,170
Tambomayo       30,698       30,721       61,419
La Zanja       18,222       17,495       35,717
Tantahuatay       27,957       38,599       66,556
El Brocal       5,102       4,029       9,130
Silver (Oz.)                        
Uchucchacua       3,853,518       4,125,034       7,978,552
Julcani       352,236       741,469       1,093,705
Mallay       136,838       123,609       260,447
Tambomayo       837,123       1,143,540       1,980,663
El Brocal       536,585       774,576       1,311,161
Lead (MT)                        
Julcani       169       275       444
Uchucchacua       3,434       4,387       7,821
Mallay       440       434       874
Tambomayo       528       1,025       1,554
El Brocal       3,339       4,490       7,829
Zinc (MT)                        
El Brocal       11,354       10,383       21,738
Uchucchacua       3,802       3,783       7,585
Mallay       733       986       1,718
Tambomayo       1,672       1,871       3,543
Copper (MT)                        
El Brocal       9,854       10,517       20,371

Company Description

Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru. The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Mallay*, Julcani*, Tambomayo*, El Brocal, La Zanja and Coimolache).

The Company owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer.

For a printed version of the Company’s 2017 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company’s web site.

(*) Operations wholly owned by Buenaventura

Note on Forward-Looking Statements

This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning the Company’s, Yanacocha’s and Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to the Company’s, Yanacocha’s and Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.


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