Buenaventura Announces Third Quarter and Nine Month 2019 Results
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 results for the third quarter (3Q19) and nine-month (9M19) period ended September 30, 2019. All figures have been prepared in accordance with IFRS (International Financial Reporting Standards) on a non-GAAP basis and are stated in U.S. dollars (US$).
Third Quarter 2019 Highlights:
- Buenaventura generated US$ 12.0 million in additional EBITDA through the Company´s De-Bottlenecking Program (please see page 6 for more details). Through this program, BVN is increasing the efficiency of its Tambomayo, Uchucchacua, Orcopampa and El Brocal mines.
- 3Q19 EBITDA from direct operations was US$ 55.8 million, compared to US$ 60.8 million reported in 3Q18, primarily due to a reduction in production and volume sold at the Company’s Orcopampa and La Zanja mines. However, this represents a continued positive sequential quarterly trend.
- 3Q19 EBITDA was adversely affected in the amount of US$ 10 million due to a one-off event related to headcount reduction at Orcopampa and more than expected inventory generated at Tambomayo.
- 3Q19 Adjusted EBITDA including associated companies reached US$ 158.5 million, compared to US$ 150.8 million in 3Q18.
- 3Q19 capital expenditures were US$ 28.0 million, compared to US$ 18.5 million for the same period in 2018.
- 3Q19 net income was US$ 4.5 million, compared to a net income of US$ -10.3 million for the same period in 2018.
- The portfolio of greenfield projects continued progressing well. San Gabriel (Au) and Trapiche (Cu) have achieved pre-feasibility stage in 3Q19. Buenaventura expects to declare ore reserves in 1Q20.
- At Yanacocha, Quecher Main is on budget and should achieve commercial production by 4Q19.
- Cerro Verde´s 3Q19 was primarily affected by the social unrest related to a copper project in the region, which restricted the workforce’s access to the mine and the replacement of consumables. Due to this, the processing plants treated stockpiles, which adversely affected grades and recoveries.
- A dividend payment of US$ 0.027 per share/ADS was approved by Buenaventura’s Board.
Financial Highlights (in millions of US$, except EPS figures):