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Buenaventura (BVN) Reports Q4 Production & Sales Volume Numbers
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Compañía de Minas Buenaventura S.A.A. (BVN - Free Report) came out with its fourth-quarter and 2022 production and volume sold. The company also provided the production outlook for 2023 for its operating mines.
Production at Tambomayo, Orcopampa, Coimolache and Julcani mines in 2022 came in line with the company’s latest guidance, whereas production at La Zanja missed the same. Meanwhile, gold, silver and copper production at El Brocal was better than expected.
Let’s dig deeper.
Tambomayo Meets Guidance
Gold production at Tambomayo decreased 32.9% year over year in the fourth quarter and 2.19% in 2022 to 12,348 ounces and 54,320 ounces, respectively. Silver production decreased 21.2% to 4,63,938 ounces in the fourth quarter, whereas silver production improved 2.7% in 2022 to 18.6 million ounces. The 2022 lead and zinc production at Tambomayo totaled 10,290 MT and 13,511 MT, respectively. Gold, silver, lead and zinc production in 2022 came in line with the company’s revised 2022 guidance.
Buenaventura sold 10,999 ounces of gold in the fourth quarter and 48,247 ounces of gold in 2022 from mining at Tambomayo. In the fourth quarter, 402,538 ounces of silver were sold and 1.6 million ounces were sold in 2022. The volume of lead and zinc sold totaled 2,126 MT and 2,038 MT in the fourth quarter, and 9,479 MT and 11,054 MT in 2022, respectively.
Due to the planned mining sequence, which involves mining narrower veins, the company anticipates a year-over-year decline in gold production at Tambomayo in 2023. As a result, annual throughput will be reduced 20%, and gold, lead and zinc grades will be lower.
Orcopampa In Line With Guidance
In fourth-quarter 2022, gold production at Orcopampa was 17,535 ounces, down 9.4% from the 2021 level. Full-year gold production at the mine improved 48.9% to 74,478 ounces. The reported figure came in line with Buenaventura’s revised 2022 guidance.
BVN sold 17,514 ounces of gold in the December-end quarter and 74,354 ounces in the year.
In 2023, gold production is projected to exceed the prior-year production on an anticipated increase in annual throughput.
Coimolache Output In Line With Guidance
Fourth-quarter gold production at Coimolache decreased 13.9% to 21,067 ounces. In 2022, the company produced 82,408 ounces of gold, down 25.4% from 2021. However, the figure came in line with the company’s revised guidance.
In the three months ended Dec 31, 2022, BVN sold 23,442 ounces of gold. In 2022, gold volume sold from mining at Coimolache totaled 86,010 ounces.
Buenaventura anticipates a decline in gold production for 2023 at Coimolache.
La Zanja Lags Guidance
Buenaventura produced 10,163 ounces of gold in the fourth quarter at La Zanja, marking an increase of 22.6% from the prior-year quarter. Gold production for 2022 at La Zanja increased 30.9% to 29,616 ounces. However, the figure came below the guidance of 31,000-38,000 ounces as mining at Phase V-Pampa Verde was delayed due to inflation-related OpEx increases.
From La Zanja, the company sold 10,576 ounces of gold in the fourth quarter and 29,376 ounces in 2022.
The Pampa Verde pit will pause mining operations in 2023 to concentrate on exploration. Nonetheless, leaching will continue at La Zanja's San Pedro pad as long as it is profitable.
Julcani In Line With Expectations
Julcani fourth-quarter silver production decreased 7.1% year over year to 6,46,125 ounces. In 2022, silver production at Julcani totaled 26.4 million ounces, up 2.7% from 2021. The full-year silver production was in line with the company's revised 2022 guidance.
Buenaventura sold 6,05,128 ounces of silver in the fourth quarter and 24.98 million ounces of silver in 2022.
The company expects 2023 silver production at the Julcani to remain flat year over year.
El Brocal Beats Gold, Silver & Copper Production Expectations
Buenaventura produced 7,467 ounces of gold in the fourth quarter and 23,359 ounces in 2022 at El Brocal. Full-year gold production at El Brocal exceeded the company’s revised guidance of 20,000-23,000 ounces. Silver production at El Brocal was down 41.5% in the quarter under review to 8,77,768 ounces and down 42.3% in 2022 to 35,56,829 ounces.
Zinc production in the fourth quarter declined 50.9% year over year to 4,037 MT, whereas full-year zinc production declined 35.1% to 23,359 MT. Full-year silver production exceeded the guidance, while zinc production met the same. El Brocal produced 6,791 MT of lead and 47,352 MT of copper in 2022, with lead production meeting the guidance and copper production exceeding the same.
In the fourth quarter, Buenaventura sold 5,492 ounces of gold, 7,12,041 ounces of silver, 1,036 MT of lead, 3,311 MT of zinc and 13,772 MT of copper. Full-year volume sold from production at El Brocal totaled 16,217 ounces of gold, 2.8 million ounces of silver, 5,914 MT of lead, 19,166 MT of zinc and 45,211 MT of copper.
The company expects silver production at El Brocal to decline 20% from the prior year, whereas gold, copper, zinc and lead production will likely be flat in 2023.
Price Performance
Shares of Buenaventura have lost 18.8% in the past year compared with the industry’s fall of 23.5%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Buenaventura currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 43.6% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $18.26 for 2023. Earnings estimates have been revised 7.4% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.4%, on average. The company has gained 41.7% in a year.
The Zacks Consensus Estimate for Teck Resources Limited’s 2022 earnings per share is pegged at $6.89, suggesting 52.43% growth from the year-ago reported figure. Earnings estimates have moved 0.7% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 24.4% in the past year.
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Buenaventura (BVN) Reports Q4 Production & Sales Volume Numbers
Compañía de Minas Buenaventura S.A.A. (BVN - Free Report) came out with its fourth-quarter and 2022 production and volume sold. The company also provided the production outlook for 2023 for its operating mines.
Production at Tambomayo, Orcopampa, Coimolache and Julcani mines in 2022 came in line with the company’s latest guidance, whereas production at La Zanja missed the same. Meanwhile, gold, silver and copper production at El Brocal was better than expected.
Let’s dig deeper.
Tambomayo Meets Guidance
Gold production at Tambomayo decreased 32.9% year over year in the fourth quarter and 2.19% in 2022 to 12,348 ounces and 54,320 ounces, respectively. Silver production decreased 21.2% to 4,63,938 ounces in the fourth quarter, whereas silver production improved 2.7% in 2022 to 18.6 million ounces. The 2022 lead and zinc production at Tambomayo totaled 10,290 MT and 13,511 MT, respectively. Gold, silver, lead and zinc production in 2022 came in line with the company’s revised 2022 guidance.
Buenaventura sold 10,999 ounces of gold in the fourth quarter and 48,247 ounces of gold in 2022 from mining at Tambomayo. In the fourth quarter, 402,538 ounces of silver were sold and 1.6 million ounces were sold in 2022. The volume of lead and zinc sold totaled 2,126 MT and 2,038 MT in the fourth quarter, and 9,479 MT and 11,054 MT in 2022, respectively.
Due to the planned mining sequence, which involves mining narrower veins, the company anticipates a year-over-year decline in gold production at Tambomayo in 2023. As a result, annual throughput will be reduced 20%, and gold, lead and zinc grades will be lower.
Orcopampa In Line With Guidance
In fourth-quarter 2022, gold production at Orcopampa was 17,535 ounces, down 9.4% from the 2021 level. Full-year gold production at the mine improved 48.9% to 74,478 ounces. The reported figure came in line with Buenaventura’s revised 2022 guidance.
BVN sold 17,514 ounces of gold in the December-end quarter and 74,354 ounces in the year.
In 2023, gold production is projected to exceed the prior-year production on an anticipated increase in annual throughput.
Coimolache Output In Line With Guidance
Fourth-quarter gold production at Coimolache decreased 13.9% to 21,067 ounces. In 2022, the company produced 82,408 ounces of gold, down 25.4% from 2021. However, the figure came in line with the company’s revised guidance.
In the three months ended Dec 31, 2022, BVN sold 23,442 ounces of gold. In 2022, gold volume sold from mining at Coimolache totaled 86,010 ounces.
Buenaventura anticipates a decline in gold production for 2023 at Coimolache.
La Zanja Lags Guidance
Buenaventura produced 10,163 ounces of gold in the fourth quarter at La Zanja, marking an increase of 22.6% from the prior-year quarter. Gold production for 2022 at La Zanja increased 30.9% to 29,616 ounces. However, the figure came below the guidance of 31,000-38,000 ounces as mining at Phase V-Pampa Verde was delayed due to inflation-related OpEx increases.
From La Zanja, the company sold 10,576 ounces of gold in the fourth quarter and 29,376 ounces in 2022.
The Pampa Verde pit will pause mining operations in 2023 to concentrate on exploration. Nonetheless, leaching will continue at La Zanja's San Pedro pad as long as it is profitable.
Julcani In Line With Expectations
Julcani fourth-quarter silver production decreased 7.1% year over year to 6,46,125 ounces. In 2022, silver production at Julcani totaled 26.4 million ounces, up 2.7% from 2021. The full-year silver production was in line with the company's revised 2022 guidance.
Buenaventura sold 6,05,128 ounces of silver in the fourth quarter and 24.98 million ounces of silver in 2022.
The company expects 2023 silver production at the Julcani to remain flat year over year.
El Brocal Beats Gold, Silver & Copper Production Expectations
Buenaventura produced 7,467 ounces of gold in the fourth quarter and 23,359 ounces in 2022 at El Brocal. Full-year gold production at El Brocal exceeded the company’s revised guidance of 20,000-23,000 ounces. Silver production at El Brocal was down 41.5% in the quarter under review to 8,77,768 ounces and down 42.3% in 2022 to 35,56,829 ounces.
Zinc production in the fourth quarter declined 50.9% year over year to 4,037 MT, whereas full-year zinc production declined 35.1% to 23,359 MT. Full-year silver production exceeded the guidance, while zinc production met the same. El Brocal produced 6,791 MT of lead and 47,352 MT of copper in 2022, with lead production meeting the guidance and copper production exceeding the same.
In the fourth quarter, Buenaventura sold 5,492 ounces of gold, 7,12,041 ounces of silver, 1,036 MT of lead, 3,311 MT of zinc and 13,772 MT of copper. Full-year volume sold from production at El Brocal totaled 16,217 ounces of gold, 2.8 million ounces of silver, 5,914 MT of lead, 19,166 MT of zinc and 45,211 MT of copper.
The company expects silver production at El Brocal to decline 20% from the prior year, whereas gold, copper, zinc and lead production will likely be flat in 2023.
Price Performance
Shares of Buenaventura have lost 18.8% in the past year compared with the industry’s fall of 23.5%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Buenaventura currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) , Reliance Steel & Aluminum Co. (RS - Free Report) and Teck Resources Limited (TECK - Free Report) . CALM and RS currently flaunt a Zacks Rank #1 (Strong Buy), and TECK carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 43.6% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $18.26 for 2023. Earnings estimates have been revised 7.4% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.4%, on average. The company has gained 41.7% in a year.
The Zacks Consensus Estimate for Teck Resources Limited’s 2022 earnings per share is pegged at $6.89, suggesting 52.43% growth from the year-ago reported figure. Earnings estimates have moved 0.7% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 24.4% in the past year.