SEC Form 6-K filed by Buenaventura Mining Company Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of April 2024

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)

CARLOS VILLARAN 790

SANTA CATALINA, LIMA 13, PERU

(Address of principal executive office)  

Indicate by check mark whether the registrant files or will file annual reports under cover of 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):

Yes  ¨            No  x

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):

Yes  ¨            No  x

Buenaventura Announces

First Quarter 2024 Results 

Lima, Peru, April 29, 2024 – 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 first quarter (1Q24) ended March 31, 2024. 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$).

First Quarter 2024 Highlights:

Financial Highlights (in millions of US$, excluding EPS):

(1) Net Income attributable to owners of the parent

(2) As of March 31, 2024, Buenaventura had a weighted average number of shares outstanding of 253,986,867

1Q24 capital expenditures reached US$ 58.0 million, compared to US$ 36.2 million in 1Q23. 1Q24 CAPEX includes US$ 38.4 million related to the San Gabriel Project and US$ 12.0 million related to the Yumpag Project.

1Q24 net sales were US$ 246.8 million, compared to US$ 185.5 million in 1Q23. Increased net sales were due to increased volume of copper and silver sold, driven by El Brocal’s 11,000 tpd underground mine exploitation rate initiative and the restart of the Uchucchacua and Yumpag mines, as well as higher gold, silver and zinc prices.

The Company recorded a positive US$ 3.2 million provisional price adjustment for 1Q24. This is comprised of a US$ 4.0 million increase in fair value of accounts receivables and a US$ 0.7 million decrease in adjustments to prior period liquidations in 1Q24. This compares to a positive US$ 7.9 million adjustment for the 1Q23.

Buenaventura’s 1Q24 equity gold production was 43,060 ounces, compared to 38,984 ounces produced in 1Q23, primarily due to increased production at Coimolache. 1Q24 silver production was 2,734,049 ounces, compared to 1,094,691 ounces produced in 1Q23. 1Q24 lead production was 5,187 MT, compared to 1,430 MT produced in 1Q23. 1Q24 zinc production was 8,048 MT, compared to 1,552 MT produced in 1Q23. Silver, lead, and zinc production increased primarily due to production initiation at Uchucchacua and Yumpag, as well as a year on year increase in production at El Brocal. The Company’s 1Q24 equity copper production was 29,708 MT, compared to 29,254 MT produced in 1Q23, primarily due to increased production at El Brocal, which was partially offset by decreased production at Cerro Verde.

Tambomayo (100% owned by Buenaventura)

Tambomayo 1Q24 gold production decreased by 14% year on year. However, this exceeded prior estimates by 23% due to higher than expected grade within areas mined during 1Q24. 1Q24 silver production decreased by 17% year on year compared to the same period of 2023, primarily due to lower than expected grades within areas mined. Gold production exceeded 1Q24 projections due to a change in mining sequence, prioritizing higher-margin prepared areas with higher gold grades, which was partially offset by decreased silver production. Cost Applicable to Sales (CAS) increased to 1,307 US$/Oz in 1Q24 from 1,169 US$/Oz in 1Q23 due to decreased volume sold and higher exploration expenses related to infill exploration at the operation.

Orcopampa (100% owned by Buenaventura)

1Q24 gold production decreased by 5% year-over-year, consistent with the 2024 planned mining sequence. CAS increased slightly, to 956 US$/Oz in 1Q24 compared to 947 US$/Oz in 1Q23 due to decreased volume sold.

Coimolache (40.09% owned by Buenaventura)

Coimolache 1Q24 gold production increased by 16,259 oz year-over-year, in line with expectations. Environmental permitting delays reduced available leach pad space, adversely impacting the volume of fresh ore which could be placed on the pad, as was previously announced. Silver production exceeded that of 1Q23, as well as the Company’s prior projections, due to higher grade silver ore processed from the Tantahuatay NW-Ext, which was placed on the leach pad during 4Q23. CAS therefore decreased to 1,057 US$/Oz in 1Q24, from 3,640 US$/Oz in 1Q23.

Uchucchacua & Yumpag (100% owned by Buenaventura)

Uchucchacua’s 1Q24 silver, lead, and zinc production was consistent with expectations for the quarter. Uchucchacua production increased sequentially, to an average of 1,000 tpd during 1Q24 from 800 tpd reported for 4Q23, aligned with the Company’s plan to reach 1,500 tpd by the end of 2024.

Yumpag successfully completed processing 124,600 tons of ore from its pilot stope in January 2024. Yumpag received final operating permitting approval on March 18, 2024, enabling uninterrupted mining of up to 1,000 tons per day. Yumpag’s silver production therefore exceeded 1Q24 projections as ore processing was initiated earlier than expected due to the operating permit approval. Processing had previously been expected to begin in 2Q24.

1Q24 Silver CAS reached 12.19 US$/Oz, which is below the average cost for Uchucchacua-Yumpag’s LOM due to the fact that costs incurred related to Yumpag pilot stope mining are considered to be CAPEX per the exploration permit. Beginning in 2Q24, mining costs will be included within the cost calculation, based on Yumpag’s definitive exploration permit.

Julcani (100% owned by Buenaventura)

1Q24 silver production decreased by 8% year on year. 1Q24 CAS was 26.15 US$/Oz, compared to 19.50 US$/Oz in 1Q23; a 34% year on year increase due to decreased volume sold and increased exploration expenses.

El Brocal (61.43% owned by Buenaventura)

El Brocal's 1Q24 copper production increased by 26% year on year, in line with expectations for the quarter. El Brocal's underground mine exploitation rate reached 10,500 tpd in 1Q24, consistent with the Company's target to reach 11,000 tpd by the end of 2024.

1Q24 silver production doubled, year on year, while 1Q24 zinc production reached 1,985 metric tons. Silver production exceeded 1Q24 projections due to higher than anticipated grades from the open pit's remaining stockpiled mined inventories, which was partially offset by lower than anticipated zinc grades during the quarter.

Approximately 293,000 metric tons of polymetallic ore, representing the final inventories from the open pit mine, were processed during 1Q24. The total remaining deferred stripping was therefore recognized.

1Q24 copper CAS decreased by 21% year-over-year, primarily due to increased volume sold and increased by-product credits.

Buenaventura’s share in associated companies was US$ 41.1 million in 1Q24, compared with US$ 59.4 million in 1Q23, comprised of:

1Q24 copper production was 103,175 MT, 20,202 MT of which is attributable to Buenaventura; a 7% decrease as compared to 111,012 MT produced in 1Q23, 21,736 MT of which was attributable to Buenaventura.

Cerro Verde reported US$ 182.6 million net income in 1Q24, compared to US$ 328.4 million net income in 1Q23. This decrease is primarily due to a 23% year-on-year decrease in net sales resulting from a lower average realized copper price of US$3.97 per pound in the 1Q24, compared to US$4.42 per pound in the 1Q23, as well as a 7% decrease in volume of copper sold. Further, decreased molybdenum net sales for the quarter due to lower prices and reduced volumes sold. This decrease was partially offset by lower taxes paid during the quarter.

1Q24 Cerro Verde capital expenditures were US$ 69.8 million.

Coimolache reported US$ 13.3 million in 1Q24 net income, compared to US$ 16.7 million net loss in 1Q23.

1Q24 capital expenditures were US$ 38.4 million. These expenditures were primarily related to the full installation and operation of the concrete plant and concrete for the processing plant foundations where the mill, thickeners and leaching tanks will be located. The definitive camp has been fully completed, including offices, dining areas, and sleeping rooms.

The initial phase of underground mine rehabilitation, focusing on the main ramp, has also concluded. Mine development tunneling will begin in 2Q24.

***

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*, La Zanja*, El Brocal and Coimolache).

The Company owns 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc. and Sumitomo Corporation).

For a printed version of the Company’s 2023 Form 20-F, please contact the investor relations contacts on page 1 of this report or download the PDF format file from the Company’s web site at www.buenaventura.com.

(*) Operations wholly owned by Buenaventura

**Tables to follow**

APPENDIX 1

(*) Consolidated

(**) Equity Accounting

APPENDIX 2

APPENDIX 3: Adjusted EBITDA Reconciliation (in thousand US$)

*Cerro Verde’s EBITDA accounts for D&A related to the capitalization of the stripping.

Note:

EBITDA (Buenaventura Direct Operations) consists of earnings before net interest, taxes, depreciation and amortization, share in associated companies, net, loss on currency exchange difference, other, net, provision for workers’ profit sharing and provision for long-term officers’ compensation.

EBITDA (including associated companies) consists of EBITDA (Buenaventura Direct Operations), plus (1) Buenaventura’s equity share of EBITDA (Cerro Verde), plus (2) Buenaventura’s equity share of EBITDA (Coimolache). All EBITDA mentioned were similarly calculated using financial information provided to Buenaventura by the associated companies.

Buenaventura presents EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) to provide further information with respect to its operating performance and the operating performance of its equity investees, the affiliates. EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) are not a measure of financial performance under IFRS and may not be comparable to similarly titled measures of other companies. You should not consider EBITDA (Buenaventura Direct Operations) and EBITDA (including affiliates) as alternatives to operating income or net income determined in accordance with IFRS, as an indicator of Buenaventura’s, affiliates operating performance, or as an alternative to cash flows from operating activities.

APPENDIX 4: COST APPLICABLE TO SALES RECONCILIATION

Reconciliation of Costs Applicable to Sales and Cost Applicable to Sales per Unit Sold

Cost applicable to sales consists of cost of sales, excluding depreciation and amortization, plus selling expenses. Cost applicable to sales per unit sold for each mine consists of cost applicable to sales for a particular metal produced at a given mine divided by the volume of such metal produced at such mine in the specified period. We note that cost applicable to sales is not directly comparable to the cash operating cost figures disclosed in previously furnished earnings releases.

Cost applicable to sales and Cost applicable to sales per unit of mineral sold are not measures of financial performance under IFRS and may not be comparable to similarly titled measures of other companies. We consider Cost applicable to sales and Cost applicable to sales per unit of mineral sold to be key measures in managing and evaluating our operating performance. These measures are widely reported in the precious metals industry as a benchmark for performance, but do not have standardized meanings. You should not consider Cost applicable to sales or Cost applicable to sales per unit of mineral sold as alternatives to cost of sales determined in accordance with IFRS, as indicators of our operating performance. Cost applicable to sales and Cost applicable to sales per unit of mineral sold are calculated without adjusting for by-product revenue amounts.

Operations’ Cost applicable to sales does not include operating cost for those months during which Buenaventura’s operations were suspended due to COVID-19, as these have been classified as “Unabsorbed costs due to production stoppage” within the financial statements.

The tables below set forth (i) a reconciliation of consolidated Cost of sales, excluding depreciation and amortization to consolidated Cost applicable to sales, (ii) reconciliations of the components of Cost applicable to sales (by mine and mineral) to the corresponding consolidated line items set forth on our consolidated statements of profit or loss for the three and twelve months ended December 31, 2022 and 2021 and (iii) reconciliations of Cost of sales, excluding depreciation and amortization to Cost applicable to sales for each of our mining units.  The amounts set forth in Cost applicable to sales and Cost applicable to sales per unit sold for each mine and mineral indicated in the tables below can be reconciled to the amounts set forth on our consolidated statements of profit or loss for the three and twelve months ended December 31, 2021 and 2022 by reference to the reconciliations of Cost of sales, excluding depreciation and amortization (by mine and mineral), Selling Expenses (by mine and metal) expenses and Exploration in units in operations (by mine and mineral) to consolidated Cost of sales, excluding depreciation and amortization, consolidated Selling Expenses and consolidated Exploration in units in operations expenses, respectively, set forth below.

APPENDIX 5: All-in Sustaining Cost

*All-in Sustaining Cost does not include: Depreciation and Amortization, Stoppage of mining units, Exploration in non-operating areas.