6-K 1 a52162760.htm BUENAVENTURA MINING COMPANY INC. 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 2020
Commission File Number 001-14370
COMPANIA DE MINAS BUENAVENTURA S.A.A.
(Exact name of registrant as specified in its charter)
BUENAVENTURA MINING COMPANY INC.
(Translation of registrant’s name into English)
Republic of Peru
(Jurisdiction of incorporation or organization)
CARLOS VILLARAN 790
SANTA CATALINA, LIMA 13, PERU
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ____X___ Form 40-F _______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.

Buenaventura Announces Fourth Quarter 2019 Production, Volume Sold per Metal Results and 2020 Guidance

LIMA, Peru--(BUSINESS WIRE)--January 23, 2020--Compañía 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 4Q19 production, volume sold and full year 2020 guidance.

4Q19 Production per Metal and 2020 Operating Guidance (100% basis)


4Q19
(Actual)
12M19
(Actual)
2019
(Last Guidance)
2020
(Estimated)




 
Gold (Oz.)



Orcopampa

14,226

41,660

37k - 45k

20k - 30k

Tambomayo

28,861

99,245

90k - 110k

90k - 100k

La Zanja

6,217

31,500

30k - 35k

20k - 30k

Tantahuatay

51,474

162,196

150k - 170k

135k - 145k

Yanacocha

101,183

527,337

510k*

415k*

El Brocal

5,933

18,726

18k - 20k

25k - 35k


 

 

 

 

Silver (Oz.)

 

 

 

 

Uchucchacua

2,876,329

10,640,913

11.5M - 12.5M

11.0M - 12.5M

El Brocal

1,158,888

4,366,438

4.0M - 4.5M

4.0M - 4.5M

Tambomayo

841,868

2,556,391

2.5M - 3.0M

2.5M - 3.0M

Julcani

649,226

2,609,006

2.2M - 2.5M

2.4M - 3.0M


 

 

 

 

Lead (MT)

 

 

 

 

El Brocal

5,825

23,599

22.0k - 26.0k

13.0k - 17.0k

Uchucchacua

4,174

17,635

20.0k - 21.0k

24.0k - 30.0k

Tambomayo

2,277

7,603

6.5k -7.5k

5.0k - 6.0k

Julcani

227

966

0.9k - 1.0k

0.9k - 1.2k


 

 

 

 

Zinc (MT)

 

 

 

 

El Brocal

11,670

43,580

50k - 53k

47k - 55k

Uchucchacua

4,046

19,144

20k - 25k

27k - 32k

Tambomayo

2,356

9,672

8k - 9k

7k - 8k


 

 

 

 

Copper (MT)

 

 

 

 

El Brocal

12,159

43,394

47K - 52K

48k - 57k


*As announced by Newmont

4Q19 Production Comments

Gold Operations

  • Orcopampa:

2019 gold production was in line with the revised guidance as announced in the second quarter 2019.

  • Tambomayo:

2019 gold production was in line with the guidance as announced at the beginning of the year.

2019 guidance for Tambomayo’s lead and zinc production was above the most recent guidance provided.

  • La Zanja:

2019 gold production was in line with the most recent guidance released.

  • Coimolache:

2019 gold production was in line with the guidance as announced at the beginning of the year.

Silver Operations

  • Uchucchacua:

2019 silver, lead and zinc production was below the revised guidance as announced in the second quarter 2019 mainly due to delays in access to high grades areas that will be exploited in the coming quarters.

  • Julcani:

2019 silver production was in line with the guidance as announced at the beginning of the year.

Base Metals Operations

  • El Brocal:

2019 copper production was below the guidance provided at the beginning of the year mainly due to slower than expected ramp-up of the new contractor responsible for ore transportation. This contractor is now fully operational.

2019 zinc production was below the most recent guidance provided mainly due the slope stability issues mentioned last quarter. This area will be fully exploited during 2020.


4Q19 Payable Volume Sold

4Q19 Payable Volume sold per Metal (100% basis)


4Q19 (Actual)

12M19 (Actual)





 
Gold (Oz.)


Orcopampa

14,601

40,702


Tambomayo

26,240

96,636


La Zanja

6,233

30,710


Tantahuatay

52,272

162,013


El Brocal

4,197

12,648



 

 


Silver (Oz.)

 

 


Uchucchacua

2,634,857

9,808,791


El Brocal

896,000

3,520,992


Tambomayo

623,846

2,318,434


Julcani

611,490

2,480,173



 

 


Lead (MT)

 

 


El Brocal

5,412

22,598


Uchucchacua

3,471

15,347


Tambomayo

1,782

7,211


Julcani

194

839



 

 


Zinc (MT)

 

 


El Brocal

9,691

36,788


Uchucchacua

3,211

15,315


Tambomayo

1,800

7,850



 

 


Copper (MT)

 

 


El Brocal

11,520

41,013



 
Realized Metal Prices




 

4Q19 (Actual) 12M19 (Actual)



 
Gold (Oz)

1,487

1,405


Silver (Oz)

17.38

16.36


Lead (MT)

1,952

1,939


Zinc (MT)

2,208

2,492


Copper (MT)

5,602

5,808





 



 

2020 Guidance

1. Production Comments

Gold Operations

  • Orcopampa:

Starting in 2H20, the main focus will be on exploration in order to delineate a Long Term Business Plan. If this milestone is not achieved, the company will reevaluate Orcopampa.

  • Tambomayo:

2020 production is expected to be slightly below the production of 2019. However, the profitability will be maintained based on the results from the De-bottlenecking Program (please see next page).

  • La Zanja:

As was previously announced, 2020 will the last year of exploitation at La Zanja. Starting August 2020, La Zanja will only treat leach pad inventories.

Exploration efforts will be focused on Emperatiz, the copper project.

  • Coimolache:

2020 gold production will be slightly less than 2019 production as less mineral will be bought from Goldfields. However, the LOM has been optimized resulting in a similar profitability.

Silver Operations

  • Uchucchacua:

A higher production is expected in 2020 mainly due to more ore throughput. Higher profitability is anticipated due to the results of the De-bottlenecking Program (please see next page).

  • Julcani:

2020 production is expected to be in line with the production of 2019.

Base Metals Operations

  • El Brocal:

2020 copper production is expected to be higher as the open pit will also be a source of copper ore. This is part of El Brocal’s transition to becoming a 100% copper operation in the future.

2020 lead production will be lower than 2019 production, but it will be partially compensated by a slightly higher zinc production.


2. EBITDA Direct Operations* and Total Capex**

The company expects an EBITDA of $200-250 million and a total CAPEX of $85 – 105 million during 2020.

*2020 prices: Au: 1,500 US$/Oz; Ag: $17.00 US$/Oz; Cu: 6,000 US$/MT; Zn: 2,250 US$/MT & Pb: 1,950 US$/MT

** In the coming conference call, the company will present a breakdown of total capex by objectives (sustaining and growth).

3. De-Bottlenecking Program - Cost Trend

In Tambomayo, 2017 US$/MT was 234.4 in comparison to US$/MT 87.6 in 2020, representing a 63% decrease.

In Orcopampa, 2017 US$/MT was 296.5 in comparison to US$/MT 291.8 in 2020, representing a 2% decrease.

In Uchucchacua, 2017 US$/MT was 120.5 in comparison to US$/MT 90.9 in 2020, representing a 25% decrease.

In El Brocal, 2017 US$/MT was 37.3 in comparison to US$/MT 36.3 in 2020, representing a 3% decrease.

*Annual average cost

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*, 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 & Sumitomo Corporation), an important precious metal producer and 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc., Sumitomo Corporation & Sumitomo Metals).

For a printed version of the Company’s 2018 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.

Contacts

In Lima:
Leandro García, Chief Financial Officer
(511) 419 2540

Rodrigo Echecopar, Head of Investor Relations
(511) 419 2591 / rodrigo.echecopar@buenaventura.pe

Company Website: www.buenaventura.com.pe/ir

In NY:
Barbara Cano (646) 452 2334
barbara@inspirgroup.com


Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


COMPAÑÍA DE MINAS BUENAVENTURA S.A.A.

 
 

By: /s/ LEANDRO GARCÍA RAGGIO

Name: Leandro García Raggio

Title: Chief Financial Officer

 
 

Date: January 23, 2020