Good day, ladies and gentlemen, and welcome to the Compañía de Minas Buenaventura First Quarter 2024 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, Investor Relations Officer. Mr. Salas, you may begin. Good morning, everyone, and thank you for joining us today to discuss our first quarter 2024 results. Today's discussion will be led by Mr. Leandro García, Chief Executive Officer. Also joining our call today and available for your questions are Mr. Daniel Domínguez, Chief Financial Officer, Mr. Juan Carlos Ortiz, Vice President of Operations, Mr. Aldo Massa, Vice President of Business Development and Commercial, Mr. Alejandro Hermoza, Vice President of Sustainability, Mr. Renzo Macher, Vice President of Projects, Mr. Roque Benavides, Chairman, and Mr. Raul Benavides, Director. Before I hand our call over, let me first touch on a few items. On Buenaventura's website, you will find our press release that was posted yesterday after the market closed. 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 view of the currently available information, you are cautioned not to place undue reliance on these forward-looking statements. I encourage you to read the full disclosure concerning forward-looking statements within the earnings results press release issued on April 29, 2024. Let me now turn the call to Mr. Leandro García. Thank you, Gabriel. Good morning to all, and thank you for joining us today to discuss the quarterly results of Compañía de Minas Buenaventura. On Slide two, it's our cautionary statement, important information that I encourage you to read. Take a couple, a couple of seconds, please. Today, we will be discussing our performance for the first quarter 2024, highlighting key achievements and strategies moving forward. After the presentation, we will be available for our Q&A session, where our team will be happy to answer your questions. The next slide, please. I would like to highlight a few key areas that contribute to our strong first quarter 2024 results. Our EBITDA from direct operations for the first quarter has increased 83% compared to the previous year, primarily driven by improved performance at El Brocal and Yumpag. This is also reflected in a higher EBITDA margin of 38% compared to 28% from the previous year. First quarter 2024 operating income reached $46.9 million, compared to the last year's $12.6 million. Copper production increased in 26% year-over-year, driven by a steady progression rate at El Brocal, which surpassed the 10,500 tons per day in the underground mine. Silver production reached 3.1 million ounces, a significant increase compared to the 1.3 million ounces produced last year for the same period. From these, 1.5 million ounces come from Uchucchacua and Yumpag, where we got approval for the final mining operating permit earlier than expected. Gold production decreased 4% year-over-year, reaching 36.5 thousand ounces, since we are now mining lower grades at Orcopampa and Tambomayo. We are pleased to inform that the dividends from Cerro Verde were received on April 26th, last Friday. These dividends will strengthen our overall financial standing. Buenaventura's CapEx in first quarter 2024 total $58 million, which includes $38 million allocated to the San Gabriel project. Our cash position reached $174 million, with a total debt of $699 million. We continue deleveraging the company, reaching a net debt EBITDA ratio of 1.78 x, lowest in two years, in two years and within our target range. Moving on to our cost structure in Slide four, please. First quarter 2024, all-in sustaining costs have reduced by 58% year-over-year. This reduction is primarily attributed to the copper production at El Brocal and silver contribution from Yumpag. However, it is important to mention that part of the Yumpag cost have been considered to be CapEx. Normalized all-in sustaining costs should be around $3,600, $3,600 per ton of copper, still below than the previous year. Moving on the cost applicable to sales trend. As you can see, the prioritization of copper ore at El Brocal and the ramp-up in the underground mine is translating into a continuous cost reduction trend. Silver cash has decreased year-over-year, primarily driven by higher contribution of Uchucchacua and Yumpag silver ounces. Normalized cash, including Yumpag cost, is expected to be between $17 and $18 per ounce. Gold cash has decreased year-over-year and even quarter-over-quarter, primarily driven by higher grades and more mill at El Brocal, El Brocal and volume, despite lower grades at Tambomayo and Orcopampa. On the next slide, we will be presenting the free cash flow generation. During the first quarter of 2024, we reduced our cash position by $46 million, primarily due to the intensive capital expenditures campaign, which includes San Gabriel. The EBITDA to free cash flow reconciliation is explained by the following breakdown of inflows and outflows. El Brocal, Yumpag, and Orcopampa have been the main contributor for the first quarter of 2024. As we have mentioned before, when Buenaventura is going through a growth phase with an intensive CapEx related to San Gabriel. The previously reported dividends from Cerro Verde will be registered in the second quarter of 2024. Moving on to Slide six. In the next years, when Buenaventura will be focusing most of its efforts in the San Gabriel project. On this slide, you can see the project's cumulative progress, reaching a 47% overall progress by the first quarter of 2024, primarily driven by the full installation and operation of the concrete plant. The key milestone we are closely monitoring for the next quarter is the start of the mine development tunneling and the start of the SAG mill assembly. On the next slide, we are showing the completion of the definite campsite that is fully operational since February. We have more than 2,000 sleeping beds installed, considering the definite and organic campsite. Water treatment plant, offices, and dining areas are fully operational. On the next slide, we are showing the progress, the processing plant for pad. Here is the milling area, where we are planning to start the SAG mill assembly during the next quarter. On the next slide, you can see the installation of the thickener. Finally, I would like to finish the presentation with a couple of closing remarks. First, encouraging production results at Yumpag are a clear reflection of our success delivering mining products. With final mining permit secured, we are now focusing on achieving a stable and efficient production rate at 1,000 tons per day. This will be reflected in a significant increase in revenues in the following quarters. Excellent performance at El Brocal, in line with plan to reach 11,000 tons per day by the end of the year, supported by a positive trend in copper price. Third, we are proud to announce that we have achieved a significant progress of San Gabriel project, now standing at an impressive 47% overall completion, on track as we aim of our first gold bar by the second half of 2025. Currently, we are assessing the project CapEx to ensure an accurate total cost while identifying opportunities to optimize the construction. We continue our efforts to transform our mining operation into assets with +10 years of life of mine, and focus on optimizing them to achieve greater cost efficiency. Thank you for your attention, and I will hand the call back to the operator to open the line for questions. Operator, please go ahead. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. The first question will come from Cesar Pérez Novoa with BTG Pactual. Please go ahead. Thank you. Good morning, everyone. If I may, I have three questions. The first one relates to your guidance. Essentially, we have seen a meteoric rise in base and precious metals, and given the implications that it has for revenues and by-product credits, is management looking to review the volumes, the revenue, and EBITDA that you outlined in the previous call for this year? My second question relates to costs. There was an important 71% drop in cash cost for gold at Coimolache to $1,000. Is this due to higher volume or specific initiatives? I believe you mentioned in the press release that the company could not place fresh ore on the pads, which makes me think that, you know, there may be some room for improvement. And finally, at El Brocal, costs went down, too. I wanted to understand if this was due to efficiencies attained in the first quarter, or if the company used stockpiled mined inventories to dilute the cost. Those would be my questions, gentlemen. Thank you. Thank you, César, for your question. In terms of if we can change the guidance, we are evaluating all the operation daily. We maybe can change the guidance at the end of the second quarter, if things are as we are thinking that will be. In terms of the Coimolache, remember that last year we didn't produce any ounces in Coimolache, so it is the comparison this quarter to the last quarter, to the first quarter of the last year. The information you have with respect to the—we are not allowed to put more ore in production. It's true, we are just waiting the permit to construct, to build the new pad to put more ore, and we expect any moment that permit. But the production will begin in the first quarter of the production of ore, we will begin in the next quarter of the following year. So we should expect increase the production of gold ounces in the second quarter of 2025. And in El Brocal, actually, we are making many efforts to be more efficient. I pass the microphone to Juan Carlos. Maybe he can give more color on your question. Thank you, Leandro. Thank you, Cesar, for your question. Yes, at the beginning with this increase in price of copper, it's a lot of incentives to increase the production. We are reviewing our mining plans, but at this moment, we are looking more to be in the upper range of our of our guidance, the annual guidance. So probably we're gonna be more closer to the upper range in that guidance. Any further review, Leandro comment, will be probably announced if, if there is any, for the next conference call. In the case of Coimolache, last year, at the end of last year in December, we have a window of opportunity because there was no rain in the area, so we placed almost 200,000 tons of ore in the pad in the last few days of 2023. So we have an advanced work done in 2023, and that's the reason we have the ounces of gold in 2024. That part of the cost was done, was incurred during the last quarter of 2023. So that's the reason we have a good look in the cost, in the CapEx of Coimolache. But as Leandro mentioned, we stopped the production of fresh ore in February this year. We will be waiting for the permit and the construction of the new areas in the pads. Probably the permit by the end of the year and construction at the same time. The operation of the breaking of fresh ore will be in the first quarter of next year, and probably the ounces of gold start coming down from the pad in the second quarter of 2025. So probably in the incoming quarters, Coimolache, the cost of Coimolache, the cash cost of Coimolache, will be coming slightly up because we are not putting more fresh ore, and production of gold will start to decrease in the incoming quarters. And in next year, that we will resume the placing of fresh ore. And regarding Brocal, yes, where there was a lot of improvements in the operation. We are close to 10.5 kilotons per day in production. We are looking forward to reach 11,000 tons per day by the end of the year. We are well tracked on that purpose, and we are reducing costs. We have been doing this increase in production without any additional people or any additional Scooptram or truck. It's just a matter of improvement. We put a underground dispatch system that be helping a lot to increase the productivity of our equipment. And we are ripping off the result of that investment in the previous quarter. So just more on the improvement and operational expertise, that we are ripping off the benefits and getting this low cost in El Brocal. All right, guys. So I think, Daniel- Thank you very much for your detailed information. Yes? Okay, César. Daniel, I think, has a couple of additional comments to you, César. Good morning, Cesar. Oh, okay. Thank you. Just to put some numbers to your question regarding the EBITDA. At the beginning of the year, we considered the metal prices of $8,500 for copper, $1,900 for gold, and $23 for silver. Our EBITDA was an estimated EBITDA of between $250 million and $270 million. Today we have higher prices, and considering $9,000 for copper, $2,100 for gold, and $25 for silver, in addition to the production from Yumpag that is coming along since March, we are estimating a consolidated EBITDA of between $300 million and $320 million. That will be the improvement of the additional EBITDA that we expect. Okay, thank you very much, Daniel. It's a large $50 million swing at the EBITDA level. Very clear. Right. Thank you all, gentlemen, for your detailed questions. Thank you. The next question will come from Carlos de Alba with Morgan Stanley. Please go ahead. Yeah. Thank you very much, and good morning, everyone. A couple of questions. First one, can you please quantify what the impact was of not having, yeah, not taking the cost of Yumpag through the P&L, and since they were capitalized according to the, you know, to the exploration permit? As you know, that was definitely a positive surprise, but I just wanted to understand how much of EBITDA impact that represented, the fact that it was not run through cost, but taken to CapEx. And second, any comments on Cerro Verde? We saw that Cerro Verde paid $29.4 million for the second quarter dividends. That is down from the 41 level or so that the company had paid in the last six. Can you provide any color? Is the expectation that this is the new range that we will see in the coming quarters, or do you think that there is upside to increase them? But not what you think, but more like what Freeport has said they will do. Thank you. Thank you, Carlos. Thank you for your question. Well, the impact of the cost assigned to the CapEx instead of the operating cost is kind of difficult to calculate, but we expect that the cost of Yumpag will be around $16 per ounce, between $16 and $17 per ounce. From beginning the second quarter, we will have the exact calculation revealed in our financial statement. In the case of Cerro Verde, the dividends, actually, we were not expecting any dividends in this quarter, in this quarter, coming from the profits from the last year. For us, was a surprise, but still, we maintain the expectation to have, in the total of the year, total dividends between $120 and $150. We believe that with this level of prices, that figure can be completed, fulfilled at the end of the year. I don't know, maybe Juan Carlos or Daniel want to add some comment there. Yeah, regarding the Yumpag, we have a total CapEx, total, in the area of $8 million in the first quarter. That was, not only part of the operational, but it's, the whole package of construction, plus the breaking the ore and transportation of the ore into the, into Uchucchacua facility. So as Leandro mentioned, it's kind of a bulk number, but probably more linked to the production, not only from the quarter, but for at least the whole year. So it's, a number that need to be, taken with cautions, because it, it, it didn't match exactly the amount of ounces of silver that we produced in the quarter. It's a combination of properly CapEx and part of the effort dedicated to breaking the ore and transporting the ore from Yumpag into the Uchucchacua processing facility. Maybe Daniel has some more color of the facilities. Yes, I would like to comment about Cerro Verde's question. At this level of prices, Cerro Verde should be generating an EBITDA of around $1.8 billion. The working capital that we expect is around $0.7 billion-$0.8 billion, with very small CapEx, around $300 million-$350 million, which gives us a free cash flow of around $750 million. These are at level of prices of close to $9,000. Having there the minimum cash already in their balance, they should be distributing dividends in the order of $750 million, which gives us the $150 million that Leandro mentioned at the beginning. Great. That would be great news. Just to follow up on that, Daniel, has this been approved by Cerro Verde's board, or it's just an expectation at this stage? No, these are numbers- So it's- Sorry. No, go on. Sorry. Sorry. These are numbers- ... that were shared by Cerro Verde. Of course, at lower price of copper, we have adjusted them internally, but, as you know, there is no dividend policy. But what they normally do is to pay dividends of the cash in excess of the minimum cash that they have, which is $950 million. Thank you. Thank you very much. Again, if you have a question, please press star then one. Our next question will come from Tanya Jakusconek with Scotiabank. Please go ahead. Good morning, everyone. Thank you so much for taking my questions. Daniel, I just have some very simple modeling questions for you, and then I have some other questions on the assets. Can I just start on the simple modeling questions? Can I just... Your DD&A was kind of low at $42 million in Q1, as was your G&A at $10 million, and as was the CapEx at $58 million. Can you review with me what you are expecting for those three numbers for the year? Yes, Tanya. For the DD&A, as you know, we, in the last two quarters of last year, we recognized the first stripping that we had in the assets for El Brocal reserves. So in the first quarter, it was a minimum of $5.5 million, but we recognized of or related to this, to this deferred stripping. In the third and the fourth quarter, this amortization was over 23 million, 20 million, 23 million. So what we expect for the following quarters is something about $35 million from depreciation amortization. $35 million a quarter for the next three? Yes, for quarter, for DD&A. Okay. And then G&A? G&A, as you know, we have sold Contacto, and there is a decrease in the G&A from that. We are not considering anymore the Contacto figures, and we have been doing also other adjustments to our expenses. For example, we have reduced the size of our location, our headquarters. So, we expect per quarter around $12 million of G&A. Okay, perfect. And then the CapEx, which I think was originally guided around $300 million for the year. It looks like you would have only done $58 million in Q1, so is that $300 million still viable? Yes. San Gabriel should be catching up the rate of expenditures. So we still believe that the total CapEx for this year should be between $300 million and $320 million. Okay. All right. That's, perfect. Thank you. That's... Those are the easy ones. Maybe still to you, Daniel, because this does impact the balance sheet. Can you, just give me an update? I know on Q4 call, I asked about the sale of the Yanacocha royalty. I thought we mentioned it would be done in April. Can we just talk about the balance sheet? Yes, we are gonna get monies coming from the Cerro Verde dividend, which is great. But can you talk to me about what else are you seeing in terms of sources of cash, besides your operating cash flow that's coming from your mine, but other sources of cash from sales and/or, you know, banks and lending? Okay. Yes. Apart from our operating or our EBITDA generated by our operations, we do expect the sale of one asset. We should be receiving this year between $180 million and $200 million from that sale. Then we expect the Cerro Verde dividends, which could be between $120 million and $150 million. In addition to that, we have already committed three RCFs, revolving facilities, with three local banks. These three facilities had up to $200 million. Currently, they are undrawn, but probably we will use them between the third and fourth quarter in order to fund any requirements for San Gabriel. Okay. And the one asset sale, is that an asset or a royalty, like, I, there's a difference. One's an asset and one's a royalty. It's a royalty. It's a royalty. Okay, that's helpful. Thank you. And then if I could ask one more question, I am very interested in San Gabriel and what is happening there. And I see from the slides that, you know, you are, you know, you've done quite a bit. You've got a, you know, you've got the bag that you've got to assemble. You've got the, the underground tunneling, the development of the underground ramp, and I guess it's ramp and additional declines and levels. Can someone just walk me through, you know, the second half of this year into 2025 again? What needs to be done? And then, Daniel, for you... The last capital I remember on this mine was $450 million-$470 million. Can you let me know how much we have spent to date and when we're getting this new CapEx number? Thank you. Of course, Tanya. Here with us is Renzo Macher. He can explain you all your questions in San Gabriel. Thank you. Hi, Tanya. Hi, Tanya. Hello. What's coming in. Hi. As you can see the pictures, there's great progress in earth moving. It's out of the way of the critical path, and we have started with all the complete placement. We have the mechanical, steel and piping contractor on site, so you're gonna see a lot of advance in that area. The underground contractor for developing the mine is already on site, so we're gonna see the first. In the next quarter, we're gonna see the first mine development advancing. The electrical and signal contractor, we shall be closing that contract towards end of May, beginning of June. So you're gonna see all those three main contractors, which is pretty much all of them, the remaining big contracts, fully on board and producing. That's the idea. Again, we have this 98% of engineering and procurement, so it's, it's about managing this advantage in favor of the project. Okay, so these three contracts are gonna be placed, it looks like, in Q2. So the concrete, steel, the underground development, and the electrical, right? These three are gonna be placed in or awarded in Q2. Then you're gonna have all of that work obviously done Q2 onwards. And then when do we actually expect the mill to start to you know, to turn, you know, wet commissioning, dry commissioning? Oh. When are we expecting that? So we already have, from those three contracts you mentioned, the concrete, mechanical piping, and steel. It's already signed, and it's running now. Underground- Okay. It is signed, and it will be producing now. Electrical and signal is the one that we need to; we're at the final stage of the bidding process, so it should be finished on May and awarded on May. Now, in the pictures, you can see that we are constructing the mill already. Foundations, the first foundation has been put. Towards the... We're gonna be finishing construction towards the early second quarter of next year, and that's kind of when commissioning is going to start. Okay. And how long do you think commissioning will take? Is it like, you know, 60% of capacity for 30 days in terms of getting to commercial production? I think we're toward early fourth quarter. We should be. Okay, so Q4. It's gonna take you two quarters to go commercial. Yes. I mean, we're very advancing. We're gonna be very advancing construction, so we can start commissioning earlier, for sure. Okay. Okay, so that's- That's the idea. Yeah, I should start thinking commercial in Q4. That's when we start taking this through the income, through revenue. Mm-hmm. Okay. And Daniel, just for you, can I just get an update on the CapEx number? Like, you know, $450-$470 was the last number I have. Maybe you can give me a little bit of an idea when a new one is coming, and where are you seeing changes in this CapEx number, positive and negative? Yes, Tanya. We are still evaluating the total CapEx. We will have a better figure for the next quarter conference call. But we expect from the initial CapEx of $470 million, we expect around 10%-15% increase. And currently, we have already disbursed since 2022 until the end of last quarter $220 million for San Gabriel. Okay. That's great. And then I, I guess in Q2, someone can give me an idea about when you're doing your development, how the development is coming in terms of costing for the underground as well. Thank you so much for helping me. Tanya, if I may, pass the microphone to Aldo, he want to make a little more, give you a little more color about the sale of the Chaupiloma royalty. Yes. Hi, Tanya. Hi. So I want to clarify a little bit, I want to clarify a little bit that the time for the sale of the royalty of Yanacocha. We have time until July 15th. If we don't reach the price, the target price, we can go to the second phase and ask for a lower price, first to Newmont, and then to the interested in, in that royalty. But the idea is to try to finish that sale during this year, no? Yeah. In the first stage, we have time until July 15th. Okay. So if I understand correctly, you have until July 15th in this first phase. If you do not get the price you want, then you go to a second phase. And how does this second phase differ from the first phase? Is it just different- Only at lower price. Only at lower price. Only at lower price. Okay, so what about then, do you, can you go back to Newmont? Because Newmont, I think, has a right of first refusal on it. It's a right of first offer. It's, it's a little bit different, but we have to ask for a price from Newmont. If, if they don't accept to buy at that price, we also can go to the market again. This is our idea. Okay. Okay, got it. Okay. All right, so if asked, if we don't get anything by July 15th, then we're going to phase two. Yes, exactly. Okay, great. Thank you for the clarification. I really appreciate it. Thank you. Ladies and gentlemen, with that, we will be concluding today's audio question and answer session. I would like to turn the floor back over to Gabriel Salas, Investor Relations Officer, for any webcast questions. Please go ahead. Thank you, operator. The first question comes from Orlando Barriga, from Credicorp Capital. Can you please comment on commercial deductions? They decreased in a per ton of units sold basis, so I would appreciate some color on that. Yes, Gabriel. Hello. Okay, sorry, sorry. Yes, thank you for the question. It happened two things in the market. The first one is that the commercial deductions has gone lower a lot. We have a better commercial terms for this year. That's why one of the reasons why the commercial terms is going down. And the second one was that we sold 13,000 dry metric tons of concentrate during the first Q, with no ores in El Brocal. And that give us, of course, better terms and lower deductions. That was the two main reasons why the deduction was so low in this quarter. Thank you, Aldo. At this time, there are no further questions. I would like to turn the call over to the operator. Thank you. That concludes the question- and- answer session for today. I would like to turn it back over to management for any closing remarks. Thank you, operator. Before we finish today's conference call, thank you. I want to thank you very much for making the time to join us, and be interested in our company. Thank you again, and have a wonderful day. Ladies and gentlemen, that concludes today's conference call. We would like to thank you again for your participation. You may now disconnect.