Buenaventura(BVN) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenues for Q3 2023 were $211.3 million, an 8% increase from $195.4 million in Q3 2022[11] - Net income for Q3 2023 was a loss of $28.0 million, a 42% increase in losses compared to a loss of $19.8 million in Q3 2022[11] - EBITDA including affiliates for Q3 2023 was $152.7 million, a 95% increase from $78.2 million in Q3 2022[11] - The company reported a significant increase in operating income, with a loss of $29.5 million in Q3 2023 compared to a loss of $20.0 million in Q3 2022, reflecting a 48% increase in losses[11] - The company reported a loss on currency exchange differences of 31,176 in Q3 2023, compared to 27,961 in Q3 2022, indicating increased volatility in foreign exchange[24] - Net income for 3Q23 was reported at -24,498, a decline from -22,487 in 3Q22, while year-to-date net income for 9M23 was 42,953, down from 547,593 in 9M22[24] - Total operating income for the nine-month period ended September 30, 2023, was US$570,044,000, a decrease from US$578,440,000 in the same period of 2022[76] - The company’s attributable net profit for the three-month period ended September 30, 2023, was a loss of US$28,032,000, compared to a loss of US$19,771,000 in the same period of 2022[76] Production Metrics - Gold production in Q3 2023 decreased by 27% year-on-year to 36,228 ounces, while silver production increased by 1% to 1,933,025 ounces[5] - Copper production increased by 55% year-on-year to 18,826 metric tons in Q3 2023[5] - Silver production for the first nine months of 2023 decreased by 34% to 1,317,895 ounces compared to 1,994,565 ounces in the same period of 2022[9] - 3Q23 silver production decreased by 38% year on year due to negative geology reconciliation and decreased treated ore[17] - 3Q23 silver production at El Brocal increased by 90% year on year, aligning with the planned mining sequence for 2023[18] - 3Q23 consolidated copper production increased by 18% YoY to 34,168 MT, while gold production decreased by 22% to 43,449 ounces[35] - Gold production in 3Q23 was 8,127 ounces, a decrease of 41% compared to 13,755 ounces in 2Q23, while 9M23 production was 29,623 ounces, down 29% from 41,973 ounces[47] Cost Metrics - Cost Applicable to Sales (CAS) for gold increased to $1,083 per ounce in Q3 2023, down 37% from $1,710 per ounce in Q3 2022[8] - The average gold price for direct operations in Q3 2023 was $1,921 per ounce, a 14% increase from $1,678 per ounce in Q3 2022[12] - The average silver price in Q3 2023 was $25.67 per ounce, a 48% increase from $17.33 per ounce in Q3 2022[12] - 3Q23 Cost Applicable to Sales (CAS) for silver increased by 89% year on year to 26.09 US$/Oz from 13.80 US$/Oz in 2Q22[17] - Consolidated Cost of sales, excluding depreciation and amortization for Q3 2023 was $136,195,000, an increase of 15% from $118,419,000 in Q3 2022[26] - Total Cost of sales for the first nine months of 2023 reached $342,171,000, slightly up from $337,503,000 in the same period of 2022[26] - The total cost applicable to sales for Q3 2023 was US$204.2 million, compared to US$528.6 million in Q3 2022, marking a decrease of 61.4%[61] Exploration and Capital Expenditures - Exploration expenses in units in operation for Q3 2023 amounted to $12,418,000, down from $20,708,000 in Q3 2022, representing a decrease of 40%[26] - The total exploration expenses for the first nine months of 2023 were $39,051,000, a decrease of 27% compared to $53,629,000 in the same period of 2022[26] - Capital expenditures for 3Q23 were US$ 59.8 million, up from US$ 37.2 million in Q3 2022; 9M23 capital expenditures totaled US$ 145.7 million compared to US$ 93.2 million in 9M22[33] - An additional US$ 40.0 million was invested as advance payment for equipment manufacturing related to the processing plant, which will be reclassified as CAPEX upon equipment arrival[44] Cash Flow and Liquidity - Buenaventura's cash position reached US$ 221.8 million, with net debt decreasing to US$ 493.7 million by the end of 3Q23[33] - The net cash flows from operating activities in Q3 2023 were US$88.2 million, a substantial increase from US$5.6 million in Q3 2022[67] - The company reported a total cash and cash equivalents of US$221.8 million at the end of Q3 2023, compared to US$287.9 million at the end of Q3 2022[67] - Payments to suppliers and third parties decreased to US$104.9 million in Q3 2023 from US$120.9 million in Q3 2022, a reduction of 13.0%[67] Future Outlook - The company is focusing on improving ore grades and recovery rates in future operations[22] - Future outlook includes managing business and liquidity post-COVID-19, with a focus on cost reduction and capital spending adjustments as necessary[45] - The company’s future outlook includes a focus on improving operational efficiency and exploring new market opportunities[77]