Buenaventura(US:BVN)2022-10-28 18:20Financial Data and Key Metrics Changes - Third quarter 2022 EBITDA from direct operations was $22.2 million, down from $39.5 million in the third quarter of 2021 [7] - Operating cash flow for Q3 2022 reached $16.1 million, a significant improvement from a negative $464.3 million in Q3 2021, which included a $544.2 million payment to the Peruvian tax authority [7] - The net loss for Q3 2022 was $19.8 million, compared to a net loss of $91.9 million for the same period in 2021 [7] - Total revenues in Q3 2022 were $195 million, an 11% decrease from $219 million in Q3 2021 [11] - For the first nine months of 2022, total revenues decreased to $578 million from $647 million in the same period of 2021 [11] Business Line Data and Key Metrics Changes - Exploration expenditures increased to $20.7 million in Q3 2022 from $17.1 million in Q3 2021, reflecting a strategic focus on exploration [8] - Total gold attributable production in Q3 2022 was 56,000 ounces, a 2% increase from the same quarter in 2021 [13] - Silver attributable production decreased by 50% to 1.7 million ounces in Q3 2022 compared to Q3 2021 [14] - Zinc production in Q3 2022 was 7,000 metric tons, a decrease from the previous year [15] - Lead production was around 4,000 metric tons in Q3 2022, down 28% from Q3 2021 [16] Market Data and Key Metrics Changes - The all-in sustaining cost from direct operations for the first nine months of 2022 decreased by 12% to $1,424 per ounce of gold [17] - Costs applicable to sales for gold were $1,126 per ounce, 8% lower than the previous year [17] - Costs for silver were $17.65 per ounce, 10% lower than a year ago [17] Company Strategy and Development Direction - The company is focusing on increasing exploration efforts to extend the life of its mines, with promising results from recent campaigns [8] - Capital expenditures for Q3 2022 were $37.2 million, up from $23.9 million in Q3 2021, with a guidance of approximately $65 million for the San Gabriel project by year-end 2022 [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted easing inflation pressures in Peru, particularly in diesel, cyanide, and explosives, with expectations of a 5% to 8% reduction in consumable prices for Q4 2022 [35] - The company is optimistic about the social climate surrounding the San Gabriel project, having established positive relationships with local communities [31] Other Important Information - The cash position of the company reached $288 million as of September 30, 2022, with net debt decreasing to $448.1 million [9] - The company has resumed construction-related activities at the San Gabriel project, with a soft start already in progress [24] Q&A Session Summary Question: Update on San Gabriel construction and social issues - Management confirmed that construction has started, currently at 1% completion, and social issues with local communities have been resolved [24][25] Question: Easing of inflation pressures in Peru - Management reported reductions in prices for diesel (10%), cyanide (5%), and explosives (8-10%), with an overall expectation of 5% to 8% reduction in consumable prices for Q4 2022 [35][36] Question: CapEx guidance for 2022 - The revised total CapEx for 2022 is estimated at $190 million, with $110 million for sustaining CapEx and $65 million for San Gabriel [38]