Peruvian mining giant Buenaventura boosts net income, production nosedives in Q1
(Kitco News) - Buenaventura (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru's largest publicly-traded precious metals mining company, announced that the company’s 1Q21 equity gold production was 62,899 ounces, a 29% decline compared to 89,152 ounces produced in 1Q20. This was primarily due to a 27% decrease at Orcopampa and a 49% production decrease at Yanacocha.
Silver equity production decreased by 8% year on year, primarily due to a 36% decrease in production at the Uchucchacua mine, as the mine is currently in the process of ramping up to full capacity by 3Q21.This was largely offset by a 132% production increase at El Brocal.
Lead equity production decreased by 37% year on year, primarily due to a 43% decrease at the Uchucchacua mine and a 56% decrease at El Brocal.
Zinc equity production decreased by 27% year on year, primarily due to a 47% production decrease at the Uchucchacua mine and a 32% decrease at El Brocal.
However, despite a production setback, the company’s EBITDA from direct operations reached US$ 38.2 million in 1Q21, compared to negative US$ 6.7 million reported in 1Q20. 1Q21 Adjusted EBITDA including associated companies reached US$ 182.9 million, compared to US$ 30.1 million in 1Q20.
Buenaventura’s 1Q21 net income was US$ 16.4 million, compared to a net loss of US$ 68.6 million for the same period in 2020.
Compañía de Minas Buenaventura is Peru’s largest, publicly traded, precious metals company and a major holder of mining rights in Peru. Buenaventura currently operates several mines in Peru: Orcopampa, Uchucchacua, Julcani, El Brocal, La Zanja and Coimolache, and is developing the Tambomayo project.