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Buenaventura

View Company Profile

September 17, 2024 at 10:00 AM (MDT)|Broadmoor Hotel & Resort

Leandro Garcia

CEO

Bachelor’s Degree in Business Administration from Universidad del Pacífico and Bachelor’s Degree in Accounting from the same university. Master of Business Administrative from the University of Miami in Florida. He completed the Management Development Program at Harvard Business School.
He worked at Buenaventura from 1990 to 1997, where he held the position of Treasury Head. He also worked at Sociedad Minera El Brocal as Finance Manager up until 2000. He was General Manager of Boticas BTL until 2005, and General Manager of Boticas Inkafarma until June 2011.
He rejoined Buenaventura as Controller General in July 2011 until December 2017 when he became the Chief Financial Officer of Buenaventura. General Manager of Buenaventura since September 2017.
He has been a Director of Química Suiza Retail, the business that manages the Mi Farma pharmacy chain, since January 2016 until January 2018. CEO of Consorcio Energético de Huancavelica and Director of Sociedad Minera El Brocal, Compañía Minera Condesa y Empresa de Generación Huanza.

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to, to speak to us on Buena Ventura. We have Ceo Leandro Garcia. Good morning, good morning to everyone. First of all, apolo, my apologies. I I couldn't be here as previously originally scheduled. The the airline canceled my flight from Lima and I arrived 24 hours after, but it's a pleasure to be here at the 2024 Golf Forum, Americans representing Buena Ventura, a leading mining company with over 70 years of experience. Today, we are excited to share our journey, our strategies and our future prospects as we continue and look value for our investors and stakeholders Albu Ventura. We remain committed to driving driving growth, delivering strong financial performance and contributing the mining industry's role as a cornerstone of Peru's economy. Let's dive into what makes Buena Ventura a compelling investment and how we are proportionate sustainable growth in the years to come before we continue. Please note that this presentation contains forward looking information, subject to risks and uncertainties. Actual results may differ due to various factors like market conditions, commodity price and operational risk. For more details, please refer to our form 20 F field in the sec available in and also in our website Buena even what is the the the the future Buena Ventura strategy? As we look ahead, Buena Ventura is focused on unlocking sustainable growth through the five key pillars. First in production, we are driving balanced growth in precious metals and copper by consolidated efficiency, mining operations. Our long term targets aim for those 200,000 ounces of gold, 20 million ounces of silver and a 140 tons of copper fine copper annually all supported by strategic mine inspection. Next is our long life mind approach. We are committed to ensuring our assets have a strong lifespan targeting at least five years for underground mines and 10 year for open pit operations. This ensures longevity and stability for our operations. Financial strength remains a cornerstone for our strategy, aiming over 100 million in Abita per mine while maintaining a leverage ratio below two times. We are strengthening our balance sheet while delivering returns in terms of cost optimization. Our focus is to position every mine within the second quartile of the cost curve, ensuring operational excellence and competitive position in the market. Finally, we are deeply committed to empowering sustainable growth by driving esg excellence through strategic investments and communities, local economies and infrastructure, securing a sustainable future for our business and stakeholders, which are our four flagships that we are going to have in the future. At Buena Ventura. We are strategically focused in these four flagship assets that position us as a mining leader. Thanks to the diversification in both precious metals and base metals as well as long life mine of mine, you impact stands out with over 100 million ounces ounces of silver and alive mind of more than 10 years, securing robust production for the future at del bro. We are continuing to expand with a long life of mine exceeding 10 years and a rate of 12,000 tons per day underground operation that solidify our copper, our copper production, our latest project, San Gabriel is under construction and with more than 10 years, almost 14 years of life mine in the in this first stage O over 14 years of life of mine expected growth to be over and the production over 120 ounces annually lastly. So Robert, our world class copper asset has a life of mine, surprising 30 years continue to generate strong returns for Buena Ventura. These assets drive our growth strategy, ensuring longevity and diversification of growth across the metals we produce when aura is achieving important milestones. As we continue to focus on growth and sustainability. Buen Aura has successfully achieved several key milestones. We have completed the UN A and C permits which are essential for expanding silver and gold production. We are also on track to secure vocal permits, ensuring our copper operations continue to grow in terms of production. We have aligned the start of operations at June impact, contributing 8 million owns for Sealer for this year. On the financial side, we have completed the sale of non core assets, generating 250 million in the past two years, $250 million in the past two years. Further strengthening our financial position. Lastly, San Gabriel's construction is now at 57% complete and remains on track to begin operations in the second half of 2025 solidifying its role as a key driver of our future growth in terms of Evita from direct operations. We have witnesses consistent growth from 188 million in the first quarter, 23 last 12 months. No to thir $371 million in the second quarter of of, of of 2024 in the same scale last last 12 months with the vida margins improving from 18% to 38%. This reflects the strength and efficiency of our operations, particularly as yac and a local ramp up production. Looking at our consolidated cost applicable to sales. We are reducing cost across our copper and silver production. Copper costs are steadily decreasing from 6700 per ton in first quarter, 2023 to a projected $5800 in the second quarter of 2024. While silver costs are also dropping from $23.5 per ounce to 16.2 per ounce. Additionally, our gold costs have remained controlled and stable. Maintaining a steady range around 1200 hun $1200 per ounce over the period. Despite our gold production decreasing. At the same time, we are optimizing our financial structure reducing our leverage ratio from four times to in in the first quarter of 2023 to 1.4 times in this second quarter, 2024. This improvement strengthens our balance sheet and positions us for continued growth. We are also maintaining a steady dividends from Cerro Verde with returns between 121 $150 million annually. Further enhancing our cash flow. Our this is our pipeline of projects. Our device diverse portfolio spans copper, gold and silver projects across various stages of development from exploration to construction. This includes promising assets like Kolache, Sulfites, Trache and advanced projects like San Gabriel which is nearing start up while we have a strong pipeline or our focus today will be on San Gabriel, one of our key growth drivers. Ok. San Gabriel is our next large gold project. It's a key project for Buena Ventura representing our next major gold asset with a total Capex of $650 million. We have already executed 273 million and committed 307 million leaving only 70 million pending to be awarded out of 20 contracts. Only five main contracts are included in this figure. Looking at the S curve, we have completed more than half of the project. And as you will notice, the curve shows a steeper slope in the coming month. This indicates that we'll be advancing at a faster pace, accelerate accelerated process significantly. Al Buena Ventura, we are taking concrete actions to mitigate risk and ensure we stay within the Capex. While reaching our goal of delivering the first gold Bar in the second half of 2025 the detailed engineering is near nearly completed, reducing the likelihood of unexpected changes. Almost all procurement contracts have been awarded and critical part equipment is already on site. We are also working on finding synergies with contractors already on the project to reduce in indirect cost and optimize mobilization time. Construction of San Gabriel processing plan is progressing well with 80% of the foundations completed the sack and the ball means mechanical works are 60% completed. The primary crasher is at 40%. Progress seal tanks are 30% complete. We are moving forward steadily keeping on track for production at the beginning and begin the mine and the production. In the second half of 2025 we have made significant progress at San Gabriel with the water dam foundation now fully completed. Additional the civil works for the filtering plan are well underway. Positioning us to continue advan advancing the project as planned. Oh, my closing remarks for this exposition. In summary, Buena Ventura stands as a leading mining company in Peru with 70 years of excellent, creating long term value and stability for our stakeholders in a country. With a with a stable regulatory environment. We are unlocking value through a diversified portfolio of assets, ensuring consistent returned and disciplined growth while maintaining our commitment to en environment, environmental and sustainable development. Looking forward or focus for the coming years is to accelerate. First, the ramp up of ya and Muchu Chau to secure a stable high impact silver production delivery delivers San Gabriel on time and within budget while managing risk to ensure success, secure environmental permits for El Rocal to drive continue copper production growth maximized our cash flow from SDE with annual dividend payout between 121 $150 million expand our reserves and resources through strategic exploration, aiming for a stronger portfolio with longer life of mind. Thank you very much. Thank you, Mister Garcia. All the best.


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