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 July 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

Second Quarter and Six-month 2024 Results

Lima, Peru, July 25, 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 second quarter (2Q24) and six-month period ended June 30, 2024 (6M24). 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$).

Second Quarter and Six-Month 2024 Highlights:

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

2Q24 capital expenditures were US$ 84.2 million, compared to US$ 49.7 million for the same period in 2023. The 2Q24 capex includes US$ 69.7 million for the San Gabriel Project, US$ 5.1 million for the Trapiche Project, US$ 3.6 million for Yumpag, and US$ 6.0 million in sustaining capex. 6M24 capital expenditures reached US$ 142.2 million, compared to US$ 85.9 million in 6M23.

2Q24 net sales were US$ 277.1 million, compared to US$ 173.3 million in 2Q23. Increased net sales were due to increased volume of silver, lead and zinc sold, resulting from the reinitiation of the Uchucchacua and Yumpag mines, as well as higher prices during the quarter.

The Company recorded a positive US$ 4.0 million provisional price adjustment for 2Q24. This is comprised of a US$ 3.5 million decrease in fair value of accounts receivables and a US$ 7.5 million increase in adjustments to prior period liquidations in 2Q24. This compares to a negative US$ 17.7 million adjustment for the 2Q23.

Buenaventura’s 2Q24 equity gold production was 35,247 ounces, compared to 39,451 ounces produced in 2Q23, primarily due to decreased production at Orcopampa, Tambomayo, and Coimolache. 2Q24 silver production was 3,897,469 ounces, compared to 1,416,441 ounces produced in 2Q23. 2Q24 lead production was 4,383 MT, compared to 1,867 MT produced in 2Q23. 2Q24 zinc production was 6,352 MT, compared to 3,491 MT produced in 2Q23. Silver, lead, and zinc production increased primarily due to production initiation at Uchucchacua and Yumpag. The Company’s 2Q24 equity copper production was 27,885 MT, compared to 30,914 MT produced in 2Q23, due to decreased production at El Brocal and Cerro Verde.

Tambomayo (100% owned by Buenaventura)

Tambomayo 2Q24 gold production decreased by 18% year on year due to lower grades processed, as was expected . 2Q24 silver production decreased by 30% year on year. Cost Applicable to Sales (CAS) increased to 1,525 US$/Oz in 2Q24 from 1,175 US$/Oz in 2Q23 primarily due to decreased volume sold.

Orcopampa (100% owned by Buenaventura)

2Q24 gold production decreased by 12% year-over-year, consistent with the 2024 planned mining sequence. CAS increased, to 1,317 US$/Oz in 2Q24 compared to 1,002 US$/Oz in 2Q23 due to decreased volume sold.

Coimolache (40.09% owned by Buenaventura)

Coimolache 2Q24 gold production decreased 23% year-over-year, in line with expectations.

Coimolache’s third Environmental Impact Assessment was approved by Peru’s National Service of Environmental Certification for Sustainable Investments (SENACE) on May 31, 2024. This permit enables Buenaventura to file for the relevant construction permit to increase leach pad capacity at Coimolache. CAS increased to 2,048 US$/Oz for the 2Q24, from 1,732 US$/Oz in 2Q23 due to previously announced temporary decrease in production until leach pad expansion has been completed.

Uchucchacua & Yumpag (100% owned by Buenaventura)

Uchucchacua’s 2Q24 silver, lead, and zinc production was consistent with expectations for the quarter. Production increased sequentially  , to an average of 1,200 TPD during 2Q24, aligned with the Company’s plan to reach 1,500 TPD by the end of 2024. Lead and zinc production exceeded 2Q24 projections due to a positive ore grade reconciliation.

Yumpag’s silver production exceeded 2Q24 projections as ore processing was initiated earlier than expected, in March 2024, due to operating permit approval which was initially expected in May 2024.

2Q24 Silver CAS reached 12.56 US$/Oz below initial estimates, also due to the early approval of Yumpag´s operating permit.

Julcani (100% owned by Buenaventura)

2Q24 silver production decreased by 6% year on year, in line with expectations and which was fully offset by 1,033 Oz of gold produced from the Rosario area early developments. 2Q24 CAS was 22.73 US$/Oz, compared to 21.87 US$/Oz in 2Q23; a 4% year on year increase due to increased exploration and development expenses required for the Rosario area.

El Brocal (61.43% owned by Buenaventura)

El Brocal's 2Q24 copper production decreased by 23% year on year. 2Q24 copper production was below expectations due to a decrease in volume processed during the quarter resulting from a 16 day voluntary temporary suspension of El Brocal’s processing plant facilities, as was announced by the Company on May 22, 2024. 2Q24 silver production decreased by 51% year on year compared to the same period of 2023 when the open pit was in operation.

Buenaventura announced that ore treatment operations at its El Brocal processing plant resumed operations at midnight on June 7, 2024. El Brocal had accumulated approximately 220,000 tonnes of copper ore upon the plant’s reinitiation. The processing of said stockpiled inventories, combined with production from the mine, will gradually ramp to a processing rate of 15,000 tons per day, leveraging the two plants’ previously idle capacity. El Brocal is expected to achieve its nine month 2024 copper production target by September 2024.

The Company’s target to achieve a 11,000 TPD underground mining rate by year end 2024 remains unchanged with an average of 10,800 TPD in the 2Q24.

2Q24 copper CAS increased by 14% year-over-year, primarily due to a decrease in volume processed during the quarter, resulting from the voluntary temporary suspension of the processing plant facilities as described.

Buenaventura’s share in associated companies was US$ 60.4 million in 2Q24, compared with US$ 7.6 million in 2Q23, comprised of:

2Q24 copper production was 109,866 MT, 21,512 MT of which is attributable to Buenaventura; a 6% decrease as compared to 116,431 MT produced in 2Q23, 22,797 MT of which was attributable to Buenaventura.

Cerro Verde reported US$ 316.3 million in 2Q24 net income, compared to US$ 59.5 million in 2Q23 net income. This year on year increase is primarily due to the adverse effects of an unfavorable tax dispute outcome and a provisional price adjustment on Cerro Verde’s 2Q23 net income. Additionally, 2Q24 results reflect a 28% year-on-year net sales increase from a higher average realized copper price of US$4.74 per pound, compared to US$3.52 per pound in 2Q23, partially offset by a 6% decrease in copper volume sold. Further, molybdenum net sales for the quarter increased due to higher prices.

Cerro Verde 2Q24 capital expenditures were US$ 80.4 million.

Coimolache reported a US$ 3.4 million net loss in 2Q24, compared to a US$ 8.1 million net loss in 2Q23.

2Q24 capital expenditures were US$ 69.7 million, primarily directed to the completion of waste dumps (organic, inert and sterile - Phase 0), and San Gabriel’s main substation platform.

The processing plant remains under construction, with significant progress on its foundation- 80% of which has been completed to date- steel, and mechanical works. Electrical and instrumentation works, as well as pipeline activities, are scheduled to begin in 3Q24. Mine development tunneling and infill drilling for the first six months of operation have begun.

***

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.

Set forth below is a reconciliation of consolidated Cost of sales, excluding depreciation and amortization, to consolidated Cost applicable to sales:

Set forth below is a reconciliation of Cost of sales, excluding depreciation and amortization (by mine and mineral) to consolidated Cost of sales:

Set forth below is a reconciliation of Exploration expenses in units in operation (by mine and mineral) to consolidated Exploration expenses in mining units:

Set forth below is a reconciliation of Commercial Deductions in units in operation (by mine and mineral) to consolidated Commercial deductions:

Set forth below is a reconciliation of Selling expenses (by mine and mineral) to consolidated Selling expenses: