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spk00: Good day, ladies and gentlemen. Welcome to the Compania de Minas Buena Ventura second quarter 2023 earnings results conference call. At this time, all participants are in a listen-only mode, and please note that this call is being recorded. I would now like to introduce your host for today's call, Mr. Gabriel Salas of Investor Relations. Mr. Salas, you may begin.
spk01: Good morning, everyone, and thank you for joining us today to discuss our second quarter 2023 results. Today's discussion will be led by Mr. Leandro Garcia, Chief Executive Officer. Also joining our call today and available for your questions are Mr. Daniel Dominguez, Chief Financial Officer, Mr. Juan Carlos Ortiz, Vice President of Operations, Mr. Alejandro Hermosa, Vice President of Sustainability, Mr. Renzo Maher, Vice President of Projects, Mr. Juan Carlos Salazar, Geology and Explorations Manager, and Mr. Raul Benavides, Director. Before I hand our call over, let me first touch on a few items. On Buena Ventura's website, you will find our press release that was posted yesterday after market close. Please note that today's remarks include forward-looking statements that are based on management's current views and assumptions. While management believes that its assumptions, expectations, and projections are reasonable in the view of the currently available information, they are accustomed not to place undue reliance on this forward-looking statement. I encourage you to read the full disclosure concerning forward-looking statements within the earnings results press release issued on July 26, 2023. Let me now turn the call to Mr. Leandro Garcia.
spk02: Thank you, Gabriel. Good morning to all, and thank you for attending this conference. We are pleased to present the results of the second quarter 2023 from Compania and Minas . We have prepared a PowerPoint presentation, which is available on our webpage. Before we go further, please take a moment to review the cautionary statement shown on the slide number two. Moving on to the slide three highlights were as follows. Second quarter 23 EBITDA from direct operations was 17.1 million compared to U.S. dollars negative 12.9 million reported in the second quarter 2022. The first semester EBITDA from direct operations reached 68.7 million compared with the US dollar 74 million reported in the first semester of 2022. 2022 EBITDA does not include 300 million resulting from the sale of Buenaventura Steak in Yanagotchi. Second quarter 2023 net loss reached 5.4 million dollars compared to a 44.6 million net loss for the same period in 2022. The six first months of 2023 net income was 67.5 million compared to 570.1 million net income for the six months of 2022. The first six months 2022 result includes 480 million net income from discounted operations primarily due to the reclassification of Buenaventura's interest in Llanacocha. The company recorded a $9.8 million provisional price adjustment for the accumulated first six months of 2023. This is comprised of negative $13.7 million in fair value of accounts receivable and a positive $3.9 million in adjustment prior period liquidations. compared to a 35 million US dollar loss for the accumulated for first six months of 2022. When Aventura six months, the first six months, 2023 consolidated copper production increased 23% year and year. Zinc production decreased by 68%, lead decreased by 60%, silver decreased by 28% year and year. on gold decreased by 11% year-on-year. El Rocal's underground mine production increased to 9,300 tons per day during the second quarter of 2023, compared to the 8,150 tons per day in the second quarter of 2022. The El Brokal ramp-up remains on target to reach 10,000 tons per day by year end of 2022. Buenaventura's cash position reached $202.4 million and a net debt decrease to U.S. dollars $520.9 million with an average maturity of 2.9 years by quarter end June 30, 2023. Second quarter, 23 capital expenditures were 49.7 compared to the $36.1 million for the same period in 2022. The first half of 2023, capital expenditures reached $85.9 million compared to $56 million in the same period of 2022. and includes 24.0 million related to the San Gabriel project and 19.2 million related to the Yumpac work. Buenaventura looks forward to permitting approval of Uchuchagua, Yumpac, El Grokal, and Colmolache. The company continues to work with the Peruvian Environmental Authority, SENACE, on its final review. We expect permits for Uchubchagua and Yumpac to be approved during the third quarter of 2023. Cerro Verde paid a total dividend of $250 million on April 28, 2023. Guayantura received $49 million relative to its stake in Cerro Verde. Cerro Verde will pay a second dividend on August the 3rd. of 2023, from which Buenaventura will receive an additional $49 million US dollars. Moving on to slide four, financial highlights. Total revenues during the second quarter were $173 million, which is 15% higher in comparison to the second quarter of 2022. The first half of the year, total revenues decreased to $359 million compared to the first half of 2022. As we mentioned before, our EBITDA from direct operations for the second quarter of 2023 was $17 million in comparison to a loss of $13 million during the second quarter of 2022. EBITDA from direct operations for the six months of 2023 decreased to $69 million in comparison to $74 million during the first six months of 2022. 2022 EBITDA does not include the US dollar 300 million resulting from the sale of Buenaventura's estate in Guanacoche. Also, our net loss from continuing operations for the second quarter of 2023 was $5 million in comparison to the net loss from continuing operations of $44 million during the same period in 2020. Net profit from direct operations for the six first months of 2023 decreased to $67 million in comparison to $90 million during the first six months of 2022. The capex increased to $50 million in the second quarter of 2023, compared to the $36 million in the second quarter of 2022. The first six months of the year, capex totaled $86 million, a 53% increase in comparison to the first half of 2022. Moving on to slide five, please, attributable production. Total gold attributable production in the second quarter of 2023 was 39,000 onsets, 17% lower than the figure reported in the same quarter of the previous year. This decrease is mainly explained by La Sanja mining operations stations in the fourth quarter of 2023, and lower production at Coimbatore. In the first semester of 2023, Total gold attributable production was 78,000 ounces, 19% lower than the same period in 2022. Silver attributable production for this quarter was 1.4 million ounces, which shows a decrease of 12% compared to the figure reported in the second quarter of 2022. This decrease in production was primarily due to hulkani and ergotal performance. During the first half of 2023, Silver attributable production was 2.5 million ounces, 25% lower than the first semester of 2020. Finally, our copper attributable production for the second quarter of the year was close to 31,000 metric tons, an 11% increase compared to the same period in 2022. During the first half of 2023, copper attributable production was 60,000 metric tons. and 9% compared to the same period of 2022. Moving on to slide six, our all-in sustaining cost and cost applicable to sales. The all-in sustaining cost from our direct operations in the first semester of 2023 increased by 30% to $1,875 per ounce of wool. The all-in sustaining cost for the first semester of 2023 has increased compared to the previous year due to lower production levels at Jultani, La Sanja and Colmolache. However, we anticipate it will decrease in the upcoming quarters as production meets our guidance. This calculation only takes into account our ownership in Buenaventura direct operations, La Sanja and Colmolache. from this field as its primary produces copper. The cost applicable to save for the first semester of 2023 were as follows. For gold, US$1,131 per ounce, which is almost equal to a year ago. For silver, US$21.79 per ounce, which is 25% higher than a year ago. $1,229 per metric ton, which is 7% lower than a year ago. For copper, $6,475 per metric ton, which is 3% lower in comparison to a year ago. Finally, in the case of zinc, the cost applicable to sales was $1,884 US dollars per metric ton, which is 39% lower than a year ago. Moving on to slide seven, here we show where we are presenting in one snapshot the current development level for each of our projects. Moving on to slide eight, our projects, in the case of UMPAC, our brownfield project Our mine development is around 2,100 meters during the second quarter of 2023. Processing plan will resume operations during the third quarter of 2023 in a short batch campaign that will help to identify and correct any potential mechanical problems. Environmental permit for mining expected on August 2023 due to delays in CENACE's approval process. In the case of San Gabriel, our greenfield project, CAPEX related to earthworks and construction related water dam escalation. Authority admitted our power line environmental impact assessment. Four out of five workshops have been completed by the end of the second quarter of 2023. public hearing has been scheduled for the third quarter of 2023. 2023 CAPEX guidance has been revised to between $140 and $160 million. This does not affect project total CAPEX nor target production in starting the second half of 2025. Thank you for your attention and I will hand the call back to the operator to open the line for questions.
spk00: Operator, please go ahead. Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. At this time, we'll pause momentarily to assemble our roster. Again, if you have a question, that's star then 1. There are no questions in the queue. I'll hand the call back over to Mr. Garcia for closing remarks.
spk02: Well, before we finished today's conference call. Thank you very much for making the time to join us today. Additionally, I would like to invite you to our Buenaventura Day that will be held on December the 4th in New York. And the invitations will be released today. Thank you again and have a wonderful day.
spk00: Ladies and gentlemen, that concludes Buenaventura's second quarter 2023 earnings results conference call. We would like to thank you again for your participation. You may now disconnect.
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