Buenaventura(BVN)2023-03-01 15:57Financial Data and Key Metrics Changes - Full year 2022 net income was $602.9 million compared to a net loss of $262.8 million for the full year 2021 [6] - Fourth quarter 2022 net income reached $69 million, in contrast to a net loss of $22 million during the same period in 2021 [8] - Total revenues for the fourth quarter were $246 million, a 3% decrease compared to the fourth quarter of 2021 [23] - Full year 2022 total revenues decreased to $825 million from $901 million in 2021 [23] - EBITDA from direct operations for the fourth quarter 2022 was $66.9 million, up from $59.7 million in the fourth quarter of 2021 [21] - Full year EBITDA from direct operations reached $473.1 million, significantly higher than $200.4 million for the full year 2021 [21] Business Line Data and Key Metrics Changes - Silver attributable production for Q4 2022 was 1.7 million ounces, a 25% decrease compared to Q4 2021; full year silver production was 6.8 million ounces, down 43% from 2021 [9] - Copper attributable production for Q4 2022 was approximately 31,000 metric tonnes, with full year production at 116,000 metric tonnes, a 13% increase compared to 2021 [10] - Gold attributable production in Q4 2022 was 53,000 ounces, a 10% decrease from the previous year; however, full year gold production was 206,000 ounces, a 4% increase [24] - Lead production in Q4 2022 was around 3,000 metric tonnes, a 30% decrease compared to Q4 2021; full year lead production was approximately 15,000 metric tonnes, down from 21,000 metric tonnes in 2021 [25] - Zinc production in Q4 2022 was 5,000 metric tonnes, a 45% decrease compared to Q4 2021; full year zinc production reached 28,000 metric tonnes, a 33% decline [57] Market Data and Key Metrics Changes - The average gold price was $1,153 per ounce, a 4% decrease year-over-year; silver averaged $19.60 per ounce, a 4% increase; lead was $1,329 per metric tonne, down 10%; copper remained at $6,613 per metric tonne, unchanged from 2021; zinc cost applied to sales was $2,812 per metric tonne, a 24% increase [26] Company Strategy and Development Direction - The company plans to continue exploration related to the underground copper, gold, sulfide project while managing leaching operations at La Zanja [7] - The exploration budget for 2023 is expected to be between $80 million and $90 million, with a focus on both operating units and greenfield projects [18] - The company is working on innovative processes to enhance gold extraction from leaching pads, potentially extending profitable operations for one to two more years [43] Management's Comments on Operating Environment and Future Outlook - Management noted that social, environmental, and political challenges have not significantly impacted on-site operations, although off-site logistics faced delays [54] - The company is optimistic about its cash position, expecting dividends from Cerro Verde to support capital expenditures [32] - Management emphasized the importance of maintaining profitability in leaching operations while developing new projects [50] Other Important Information - Capital expenditures for Q4 2022 were $58.8 million, up from $32.1 million in Q4 2021; full year CapEx reached $152 million, a 68% increase from 2021 [3][56] - The company received a total dividend of $79.1 million from Cerro Verde in 2022 [49] Q&A Session Summary Question: What drove the increase in CapEx for 2023? - The increase is primarily due to the stoppage at San Gabriel and the need to continue work into 2023 [16] Question: What is the exploration budget for 2023? - The exploration budget is expected to be between $80 million and $90 million, with allocations for operating units and greenfield projects [18] Question: How will the company fund the increased CapEx? - The company plans to use $250 million in cash, expect dividends from Cerro Verde, and may raise additional funds if necessary [32] Question: What is the planned output for La Zanja in 2023? - The initial conservative budget is set at 5,000 ounces of gold, with expectations to exceed this figure [36] Question: Will the company need to sell assets to meet financial needs? - Management indicated that asset sales are not anticipated at this time [33]