Buenaventura(US:BVN)2022-04-29 19:19Financial Data and Key Metrics Changes - First quarter 2022 EBITDA from direct operations reached $431.9 million, a significant increase from $39.7 million in the first quarter of 2021, largely due to a $300 million gain from the sale of Buenaventura's stake in Yanacocha [8] - First quarter 2022 net income was $636.2 million, compared to $16.4 million for the same period in 2021 [9] - Cash position as of March 31, 2022, was $337.4 million, with net debt reduced to $771 million, achieving a net debt to EBITDA ratio of 1.71 times [11] Business Line Data and Key Metrics Changes - Exploration expenditures increased to $14 million in Q1 2022 from $9.3 million in Q1 2021, aligning with the company's focus on exploration [10] - Capital expenditures in Q1 2022 were $19.9 million, up from $13 million in the same period last year [10] Market Data and Key Metrics Changes - Total revenues for the first quarter were $233 million, a 27% increase compared to Q1 2021 [17] - Total gold attributable production in Q1 2022 was 49,000 ounces, a 31% increase year-over-year, while silver production decreased by 42% to 2 million ounces due to the suspension of operations at Uchucchacua [19] Company Strategy and Development Direction - The company is committed to deleveraging, having fully paid a $275 million syndicate loan and canceled $50 million of its revolving facility [12] - The San Gabriel Mine Project received government approval for all required permits, allowing immediate commencement of construction [13] Management's Comments on Operating Environment and Future Outlook - Management indicated that the 2022 production guidance will be updated in Q2 2022 due to a new mine plan for El Brocal, expecting a decrease in silver production of 1 million to 1.5 million ounces for the full year [13] - Management emphasized the importance of health and safety for workers and the commitment to social responsibility, achieving 92% fulfillment of social commitments [15] Other Important Information - COVID-related expenses in Q1 2022 were $5.3 million, down from $11.7 million in Q1 2021, with estimates for 2022 between $12 million and $14 million [11] - The company is focusing on ESG initiatives, including responsible water management and renewable energy usage [15] Q&A Session Summary Question: Can you provide more details on El Brocal and the revised mining plan? - The revised mining plan was necessitated by a landslide in March, which will delay production by approximately 1.1 million to 1.5 million ounces of silver into 2023, with additional costs estimated at $3 million to $4 million for remediation [26][28][30] Question: Why was there no adjustment to the copper and base metal guidance? - The guidance for copper remains unchanged as the underground mine, which accounts for 95% of copper production, was not impacted by the landslide [36][37] Question: What are the critical milestones for the San Gabriel project? - The first milestone is to reach the foundation level of the plant by the end of 2022, with commercial production expected in the second half of 2025 [48][49] Question: Any updates on dividends from Cerro Verde? - The company expects to receive close to $30 million in dividends related to 2021 results, with additional dividends anticipated in the second half of the year [50]