Compania De Minas Buenaventura Saa · BVL:BUENAVC1
Compania De Minas Buenaventura Saa — Investor Day (December 2024)
66 slides from Compania De Minas Buenaventura Saa's investor day presentation, December 2024
Slide 1: Buenaventura Investor Day
Buenaventura Investor Day December 2024
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains certain information that may constitute forward-looking information under applicable U.S. securities legislation, including but not limited to information about costs applicable to sales, general and administrative expenses; production volumes; current
Slide 3: Today's Presenters
Today’s Presenters LEANDRO GARCÍA DANIEL DOMÍNGUEZ JUAN CARLOS ORTIZ ALDO MASSA • Vice President of CEO • Buenaventura’s CEO CFO VP of Operations • Vice President of VP Business Develop. • Buenaventura’s CFO Business Development since 2020 Operations since 2018 since 2020 since 2021 • 20+ years of e
Slide 4: Leandro García
Leandro García Delivering Growth & Generating Returns
Slide 5: Building Buenaventura's Foundations for the Long Term
BUILDING ´S FOUNDATIONS FOR THE LONG TERM Operational Focusing on long LOM and Capital Excellence FCF generating assets Allocation • Optimizing operations to reduce costs • Strategic Portfolio Management: • Prioritizing high-return investments and drive efficiency Adjusting our portfolio to focus on
Slide 6: Unlocking Potential
Unlocking Potential Buenaventura’s Roadmap to Sustainable Growth Production1 LOM Operating Strength Driving balanced growth in precious metals and Strategic growth with long life of mine assets Driven by operational excellence and cost efficiency copper by consolidating a portfolio of efficient mine
Slide 7: World-class Sustainability Practices
World-class Sustainability Practices
Slide 8: Buenaventura in Numbers
Buenaventura in Numbers Mining units between 8 regions 8 operations 4 Advanced 3,500 - 4,800 exploration projects MASL +30Local +100 Communities +20 Indigenous Communities +140 Active negotiations governments (MINCUL) in 2024 Plurality in Mining Units Cultures and social Projects Water supply Weathe
Slide 9: Best-in-class ESG Practices Support Value Creation and Sustainable Development
Best-in-class ESG Practices Support Value Creation and Sustainable Development Sustainability pillars Sustainability performance PEOPLE SOCIAL ENVIRONMENT • Strong health and safety practices • Solid relations with local • First-class water management +12,000 67% • Performance-based compensation com
Slide 10: Sustainability Pillars - People: Employees and Safety
Sustainability Pillars - People: Employees and Safety Employees Safety Local employment (% of employees from host regions) Severity rate1 64% 63% 67% 706 682 273 2021 2022 2023 2021 2022 2023 Employees satisfied with work-environment (% of total employees) Frequency rate2 3.6 3.6 70% 76% 77% 3.0 202
Slide 11: Sustainability Pillars - Social: Community Relations & Sustainability
Sustainability Pillars - Social: Community Relations & Sustainability Community relations Social conflicts al national level 230 130 225 120 220 110 100 OUTREACH AND INFRASTRUCTURE 215 BOOSTING OF THE LOCAL HUMAN DEVELOPMENT 90 COMMUNICATIONS In collaboration with local 210 80 Buenaventura operates
Slide 12: Sustainability Pillars - Permits and Environmental Management
Sustainability Pillars - Permits and Environmental Management Permits approved Sustainability Solid performance delivering permits and environmental assessments Responsible and solid performance on climate change risks, focused on water, energy, GHG emissions and waste Water resources management (%
Slide 13: Juan Carlos Ortiz
Juan Carlos Ortiz Focused Discussion on Buenaventura’s Core Operations
Slide 14: Building Buenaventura's Foundations for the Long Term
BUILDING ´S FOUNDATIONS FOR THE LONG TERM Operational Focusing on long LOM and Capital Excellence FCF generating assets Allocation • Optimizing operations to reduce costs • Strategic Portfolio Management: • Prioritizing high-return investments and drive efficiency Adjusting our portfolio to focus on
Slide 15: Increasing Gold, Silver, and Copper Reserves Powered by Flagship Operations
Driving Growth: Increasing Gold, Silver, and Copper Reserves Powered by Our Flagship Operations Gold (MOz-Au) Silver (MOz-Ag) 3.3 +22% 3.4 +47% 189 3.0 34% 2.8 41% 131 129 El Brocal El Brocal 2% Others 5% Others 80 56% 61% San Gabriel Uchucchacua & Yumpag 2021 2022 2023 2024 2021 2022 2023 2024 Copp
Slide 16: Consolidated Production - Forecast
Consolidated Production - Forecast Copper production Silver production (‘000 MT) (‘MM Oz) 60.0 60.0 60.0 60.0 16.1 16.6 16.4 57.7 15.4 14.7 15.2 15.0 55.0 55.0 55.0 55.0 9.2 14.0 2023 2024E 2025E 2026E 2027E 2023 2024E 2025E 2026E 2027E Cash Cost (US$/tmf) Cash Cost (US$/oz) 5,500 5,800 6,100 14 15
Slide 17: Consolidated Production - Forecast
Consolidated Production - Forecast Copper production Silver production (‘000 MT) (‘MM Oz) 60.0 60.0 60.0 60.0 16.1 16.6 16.4 57.7 15.4 14.7 15.2 15.0 55.0 55.0 55.0 55.0 9.2 14.0 2023 2024E 2025E 2026E 2027E 2023 2024E 2025E 2026E 2027E Cash Cost (US$/tmf) Cash Cost (US$/oz) 5,500 5,800 6,100 14 15
Slide 18: Uchucchacua Mine – Medium Term
Uchucchacua Mine – Medium Term Mine Production and Mine OPEX 5000 Ramp-Up Mine Production 190 Polymetallic Ore: Ag, Pb and Zn 4500 170 US$/t Diversification of metal production 4000 170 160 US$/t High Level of Confidence 3500 150 140 US$/t 3,000 tpd 3,000 tpd All Mining Blocks are easily accessible
Slide 19: Uchucchacua Mine – Long Term
Uchucchacua Mine – Long Term Mine Production and Mine OPEX 5000 4500 170 US$/t 190 Mine Competitiveness 4000 160 US$/t 170 Permits and Infrastructure in alignment with ongoing exploration: 3500 140 US$/t 3,000 tpd 3,000 tpd 150 • Shaft deepening down to L3440 3000 2,500 tpd 2500 2,000 tpd 120 US$/t
Slide 20: Yumpag Mine – Medium Term
Yumpag Mine – Medium term Ramp-Up Mine Production 4000 230 US$/t Mine Production and Mine OPEX1 High Grade Silver Mine 230 3500 Silver grade average over 20 oz/t Ag 210 Mineral Reserves ~ 100MM oz Ag 190 US$/t 3000 190 High Level of Confidence 165 US$/t 170 2500 All Mining Blocks are easily accessib
Slide 21: Yumpag Mine – Long Term
Yumpag Mine – Long Term Increase Mineral Reserves 4000 230 US$/t Mine Production and Mine OPEX1 Permits and Infrastructure in alignment with ongoing exploration: 230 • Main mine infrastructure developed to support the future of the mine 3500 210 • Mineral Exploration areas (Tomasa) easily accessible
Slide 22: Consolidated Production - Forecast
Consolidated Production - Forecast Copper production Silver production (‘000 MT) (‘MM Oz) 60.0 60.0 60.0 60.0 16.1 16.6 16.4 57.7 15.4 14.7 15.2 15.0 55.0 55.0 55.0 55.0 9.2 14.0 2023 2024E 2025E 2026E 2027E 2023 2024E 2025E 2026E 2027E Cash Cost (US$/tmf) Cash Cost (US$/oz) 5,500 5,800 6,100 14 15
Slide 23: San Gabriel Project Mine Preparation
San Gabriel Project Mine Preparation 2025 Detailed Plan Medium Term Plan North Ramp NV4800 South Ramp NV4780 2024 2025 2026 2027 3,300 meters 12,200 meters 26,600 meters 26,600 meters 23
Slide 24: San Gabriel Project Mining Method – UDF
San Gabriel Project Mining Method – UDF (Underhand Drift & Fill) Level 4630 Mine Design Implementation Program • Fully dedicated expert support with more than 15 years in this mining method • Trial Mine in Tambomayo Mine • Benchmark's visit to four mines in Nevada (USA) First Level – Top Cut Second
Slide 25: Coimolache Mine Annual Production – Permits & Production
Coimolache Mine Annual Production – Permits & Production 2024 PIT TANTAHUATAY STOCK TANTAHUATAY Permits Approval EXT. NO Operational licenses expected 1Q25 SULFIDES PROJECT Cost Competitiveness DME CIÉNAGA PIT MIRADOR NORTE New transportation contract 15% less costly PIT TANTAHUATAY 02 Operational C
Slide 26: Coimolache Mine Annual Production – Permits & Production
Coimolache Mine Annual Production – Permits & Production 2025 PIT TANTAHUATAY STOCK TANTAHUATAY Permits Approval EXT. NO Operational licenses expected 1Q25 SULFIDES PROJECT Cost Competitiveness DME CIÉNAGA PIT MIRADOR NORTE New transportation contract 15% less costly PIT TANTAHUATAY 02 Operational C
Slide 27: Coimolache Mine Annual Production – Permits & Production
Coimolache Mine Annual Production – Permits & Production 2026 PIT TANTAHUATAY STOCK TANTAHUATAY Permits Approval EXT. NO Operational licenses expected 1Q25 SULFIDES PROJECT Cost Competitiveness DME CIÉNAGA PIT MIRADOR NORTE New transportation contract 15% less costly PIT TANTAHUATAY 02 Operational C
Slide 28: Coimolache Mine Annual Production – Permits & Production
Coimolache Mine Annual Production – Permits & Production 2027 PIT TANTAHUATAY STOCK TANTAHUATAY Permits Approval EXT. NO Operational licenses expected 1Q25 SULFIDES PROJECT Cost Competitiveness DME CIÉNAGA PIT MIRADOR NORTE New transportation contract 15% less costly PIT TANTAHUATAY 02 Operational C
Slide 29: Coimolache Mine Annual Production – Permits & Production
Coimolache Mine Annual Production – Permits & Production 2028 PIT TANTAHUATAY STOCK TANTAHUATAY Permits Approval EXT. NO Operational licenses expected 1Q25 SULFIDES PROJECT Cost Competitiveness DME CIÉNAGA PIT MIRADOR NORTE New transportation contract 15% less costly PIT TANTAHUATAY 02 Operational C
Slide 30: Consolidated Production - Forecast
Consolidated Production - Forecast Copper production Silver production (‘000 MT) (‘MM Oz) 60.0 60.0 60.0 60.0 16.1 16.6 16.4 57.7 15.4 14.7 15.2 15.0 55.0 55.0 55.0 55.0 9.2 14.0 2023 2024E 2025E 2026E 2027E 2023 2024E 2025E 2026E 2027E Cash Cost (US$/tmf) Cash Cost (US$/oz) 5,500 5,800 6,100 14 15
Slide 31: El Brocal Mine – Medium Term Operational Stability
El Brocal Mine – Medium Term Operational Stability 2025 2026 2027 High Level of Mine Preparation Plant View Plant View Plant View All main developments are done New Mining Equipment 100% of Production Fleet Renewed by 4Q25 Paste Fill Conclude Feasibility Engineering and Construction expected to star
Slide 32: El Brocal Mine – Long Term: Achieve the Asset's Full Potential
El Brocal Mine – Long Term Achieve the Asset’s Full Potential Open Pit Mine 100% Production Ramp-Up Underground Stabilize the production in 12.5ktpd and prepare the mine for the future expansion 01 12.5ktpd Mine Mineral Reserves 100% Oxidized Gold Ore Exploration Geological Anomaly South East Increa
Slide 33: Cash Flow Profile Supported by 19.58% Stake in Cerro Verde
Buenaventura’s Cash Flow Profile is Supported by its 19.58% Stake in High- quality Copper Asset Cerro Verde Overview Production Silver (KOz) 4,685 4,415 4,077 3,384 3,684 2019 2020 2021 2022 2023 Copper (Kt) 0.36 (%) 0.34 (%) 0.31 (%) 0.33 (%) 0.34 (%) 455 402 442 447 372 2019 2020 2021 2022 2023 1s
Slide 34: Strengthening Operations: Unlocking Value Across Key Assets
Strengthening Operations: Unlocking Value Across Key Assets Uchucchacua and Yumpag 1 Silver mines are undergoing a significant ramp-up process, aiming to consolidate a low-cost operation with a +10 years LOM combined. 2 San Gabriel Mine development is advancing on schedule, as planned. Coimolache 3
Slide 35: Juan Carlos Salazar
Juan Carlos Salazar Discussion and Update on Exploration
Slide 36: Building Buenaventura's Foundations for the Long Term
BUILDING ´S FOUNDATIONS FOR THE LONG TERM Operational Focusing on long LOM and Capital Excellence FCF generating assets Allocation Buenaventura has a long and successful history of replacing reserves and discovering new resources in the mining districts we have been operating. Our main objective in
Slide 37: Mineral Resources & Reserves
Mineral Resources & Reserves Exploration is within our DNA: 4.4 4.5 +5% 4.7 4.0 GOLD (MOz-Au) Focus on Gold, Silver & Copper 2.1 2.5 2.0 Mining Unit By-products 2.3 2.1 2.0 1 Orcopampa 2021 2022 2023 2024E 2 Tambomayo Gold 3 La Zanja 3 247 +12% 276 SILVER (MOz-AgEq) 4 4 Coimolache 216 205 5 San Gabr
Slide 38: Uchucchacua - Yumpag: Rediscovering the Mining District
Uchucchacua - Yumpag : Rediscovering the Mining District Uchucchacua: Building +10Y LOM mine, based on polymetallic ore Resources 2024 (polymetallic-ore only): Strong pipeline of exploration projects close to existing infrastructure Ton (Mt) Ag (oz/t) Pb (%) Zn (%) Ag Eq MozAg • Cachipampa: Supports
Slide 39: Uchucchacua - Yumpag: Rediscovering the Mining District
Uchucchacua - Yumpag : Rediscovering the Mining District Yumpag: New high-grade silver mine (+25 oz/t) Resources 2024: Exploration program continues to drive the upside Ton (kt) Ag (oz/t) Mn (%) Moz Ag • Camila: High-grade intercept 130m southwest of the current resource model: 19.56m with M&I 4,057
Slide 40: El Brocal: Significant Mineral Endowment with Exceptional Exploration Upside
El Brocal: Significant Mineral Endowment with Exceptional Exploration Upside N Tajo Norte Resources 2024 (underground only) Pb-Zn-Ag • This increase is due to (1) Optimization of the recovery of remaining pillars, (2) New additions Smelter and resource conversion, and (3) Conversion of open-pit reso
Slide 41: La Zanja Sulfides: Moving from Oxides to Sulfides
La Zanja Sulfides: Moving from Oxides to Sulfides 10.7gt Au Luciana N 44.2gt Au • Two new breccias-pipes, Lucero and Amanda with gold and copper mineralization 38.6gt Au • Drilling (10km) has recognized over 500m of vertical mineralization interval Fátima Blue Sky 2.7gt Au and remains open at depth
Slide 42: Coimolache Sulfides: Large copper-gold sulfide project
Coimolache Sulfides: Large copper-gold sulfide project A A’ • In 2024, 22,400 meters of the infill drilling program are underway and expected to be completed by the end of the year Ox. 3,800 Sulf. • Drilling highlights: • 158.3m with 2.5%Cu and 1.3g/tAu 3,600 • 138.3m with 1.6%Cu and 0.5g/tAu • 136.
Slide 43: Renzo Macher
Renzo Macher Discussion and Update of Key Projects
Slide 44: Strong Project Pipeline Driving Sustainable Growth at All Development Stages
Strong Project Pipeline Driving Sustainable Growth at All Development Stages Explorations Prefeasibility Feasibility Construction Commissioning Operation Yumpag 100% 4 Trapiche Copper San Gabriel 65% projects Silver 2 Ag 47 107.9 Gold & Silver Copper projects Cu Gold 3 29 63.5 Au 79 197.0 Polymetall
Slide 45: San Gabriel: First Gold Bar 4Q 2025
San Gabriel: First Gold Bar 4Q 2025 Capex Overview Project Milestones Executed CAPEX Pending CAPEX First Primary Filter Water Commissioning $ 351 M $ 219 M $ 80 M $ 650 M Crusher CIL Plant Dam Complete Gold Bar Committed To be Awarded 1Q25 2Q25 3Q25 4Q25 • Earthworks at ~80% completion reduce risks
Slide 46: San Gabriel: Commissioning Readiness
San Gabriel: Commissioning Readiness Focused execution across critical pillars to achieve commissioning by 3Q25, laying the foundation for long-term operational success Fresh Water Dam 220 kV Power Line Waste Dump Filtered Tailing Dam SS San Gabriel 20% Stage 0 100% Transmission Earthworks 35% Line
Slide 47: San Gabriel: Processing Plant Commissioning
San Gabriel: Processing Plant Commissioning Progressing all components of the processing plant as planned, ensuring alignment with our commissioning timeline and operational excellence goals Primary Crusher Grinding CIL Filter Plant Earthworks 100% Earthworks 100% Earthworks 100% Earthworks 100% Civ
Slide 48: Trapiche: Deliver a World Class Bankable Feasibility Study
Trapiche: Deliver a World Class Bankable Feasibility Study General Layout Schedule EIAd file EIAd Construction issue approval permit approval ENRICHED ORE LEACH PAD ROM Project 2024 2025 2026 2027 → Development Complete Power line Feasibility right of pass study finish OPEN PIT SX/EW AREA Key Figure
Slide 49: Trapiche: Deliver a World Class Bankable Feasibility Study
Trapiche: Deliver a World Class Bankable Feasibility Study Advancing Trapiche toward feasibility, positioning it as the next cornerstone of Buenaventura’s copper portfolio, with completion targeted for mid-2026 Feasibility Fieldworks Feasibility Models 50% Completed 90% Completed • Drilling works at
Slide 50: Trapiche: Securing Land and Permits
Trapiche: Securing Land and Permits Advancing Trapiche toward feasibility, positioning it as the next cornerstone of Buenaventura’s copper portfolio, with completion targeted for mid-2026 External Access Lands Environmental Permits Power Line Lands 70% Completed 80% Completed 100% Completed CC CC Mo
Slide 51: Building Buenaventura's Foundations for the Long Term
BUILDING ´S FOUNDATIONS FOR THE LONG TERM Operational Focusing on long LOM and Capital Excellence FCF generating assets Allocation Trapiche San Gabriel world-class bankable First Gold bar by 4Q25 Feasibility Study 52
Slide 52: Aldo Massa
Aldo Massa Non-Core Asset Management, Growth Prospects, and Market Outlook
Slide 53: Buenaventura Achieved Strong Results in Non-Core Asset Sales
Buenaventura Achieved Strong Results in Non-Core Asset Sales November 2023 October 2020 ✓ Sale of total stake in Contacto Insurance Broker ✓ Sale of the Mallay mine (US$ 10M) (US$ 33.7M + US$ 1.6M in contingent payments) February 2022 August 2024 ✓ Sale of 43.65% interest in Yanacocha (US$ ✓ Sale of
Slide 54: Mature Assets Evaluation
Mature Assets Evaluation 1 Re-evaluate the long-term business plan fundamentals of the mines that currently fall outside BVN's growth strategy 2 Identify geological and technical opportunities to improve the profitability of these mines and develop a robust business plan 3 Determine the best asset m
Slide 55: Grounded in Exploration, Evolving for Growth
Grounded in Exploration, Evolving for Growth Our DNA lies in exploring and developing our ore deposits: Yumpag, San Gabriel, Trapiche, Coimolache, and La Zanja, but we are also exploring inorganic growth opportunities. Corporate Guidelines Joint Venture (Consolidated basis) • JV with local partners
Slide 56: World-class Diversified Portfolio Focused on Metals with Strong Fundamentals
World-class Diversified Portfolio Focused on Metals with Strong Fundamentals, Encompassing Precious and Base Metals, Ensuring a Solid Foundation for Growth Gold Price (US$ / Oz)1 Silver Price (US$ / Oz)1 Copper Price (US$ / MT)1 2,700 35 11,000 2,500 30 10,000 2,300 25 Market 2,100 1,900 20 15 9,000
Slide 57: Buenaventura Will Begin Commercializing a Portion of Cerro Verde's Copper Concentrates
Buenaventura Will Begin Commercializing a Portion of Cerro Verde’s Copper Concentrates • This figure will start in 2025 with around 40,000 wmt to 50,000 wmt annually • This enables Buenaventura to increase its portfolio of products helping to improve its commercial terms • Buenaventura marketing the
Slide 58: Daniel Domínguez
Daniel Domínguez Financial Performance and Outlook
Slide 59: Strong Financial Performance and a Stable Liquidity Position
Strong Financial Performance and a Stable Liquidity Position 1 2024 represents a turning point for Buenaventura 2 We have secured the full funding of San Gabriel project 3 Focus our Capital Allocation exploring and developing the assets with the highest return 4 Leverage Ratio below 1x Net Debt/EBIT
Slide 60: Established Track Record of Financial and Operational Performance
Established Track Record of Financial and Operational Performance Metal prices: Net revenue (US$ M) Au ($/Oz) Ag ($/Oz) Cu ($/TMF) Zn ($/TMF) Pb ($/TMF) 1,900 24.0 8,800 2,400 1,900 1,146 1,114 1,164 1,085 824 2023 2024E 2025E 2026E 2027E Adj. Ebitda1 (US$ M) & Adj. Ebitda margin (%) 24% 34% 29% 31%
Slide 61: Strengthening Profitability Through Cost Management
Strengthening Profitability Through Cost Management C1 – Cash Cost1 El Brocal All-In – Copper Sustaining Costs (AISC) (1) (US$/TM) San Gabriel - Gold (US$/Oz) 7,020 6,001 5,963 5,931 5,962 2,300 1,390 1,350 2023 2024E 2025E 2026E 2027E 2023 2024E 2025E 2026E 2027E Uchucchacua & Yumpag – Silver (US$
Slide 62: Capital Allocation: Precision in Mining, Precision in Investments
Capital Allocation: Precision in Mining, Precision in Investments Capex Breakdown (US$ M) Prioritizing available resources with a focus on San Gabriel • Growth CAPEX: An intensive Capital Expenditure period will conclude with the completion Moquegua of San Gabriel in 2H25 • Sustaining CAPEX: We are
Slide 63: Effective Liability Management: Our Plan for Bond Refinancing
Effective Liability Management: Our Plan for Bond Refinancing Bond refinancing - Execution timeline Our US$ 550M 144A bond with maturity July 2026 will be refinanced on 1Q25 Fitch upgraded due: • Global leaders selection 3Q24 • Documents preparation ● Solid balance sheet: Strong liquidity, created t
Slide 64: Building the Future on Strong Foundations
Building the Future on Strong Foundations: Operational Excellence, High-Value Assets, and Disciplined Capital Allocation 1 INCREASING OPERATIONAL EFFICIENCY Boosting productivity, cutting costs, and embracing innovation are key to enhancing margins and ensuring long-term profitability 2 IMPROVING LO
Slide 65: Buenaventura
Bucnave NTURA
Slide 66: Appendix
Appendix
Compañía de Minas Buenaventura S.A.A. — Investor Day (December 2024) on 6ix