Buenaventura Obtains Key Operating Permit for Yumpag Mine
Compañia de Minas Buenaventura S.A.A. (BVN) receives final operating permit for Yumpag mine, marking a significant milestone. CEO Leandro Garcia highlights the company's efficiency in handling mining projects and regulatory processes. The permit allows Buenaventura to begin production, showcasing readiness to capitalize on opportunities and execute strategic objectives.
The granting of the final operating permit for the Yumpag mine is a pivotal moment for Compañia de Minas Buenaventura. This step indicates that the company has successfully navigated the regulatory landscape, which is often a complex hurdle in the mining industry. The commencement of production at Yumpag has the potential to significantly increase Buenaventura's precious metals output, which includes gold and silver, commodities that typically have a stable demand.
From a supply chain perspective, the start of mining operations could enhance the company's market position. However, investors should monitor the global precious metals market, as fluctuations in gold and silver prices can impact profitability. Additionally, operational efficiency and cost control during the initial phase of production will be critical in determining the mine's long-term viability and its contribution to the company's financial performance.
While the receipt of the operating permit is a clear business win for Buenaventura, it's important to consider the environmental implications of new mining projects. The mining sector faces increasing scrutiny for its environmental impact and Buenaventura will need to demonstrate adherence to environmental standards to maintain its social license to operate.
Investors should evaluate the company's environmental, social and governance (ESG) practices as these can affect the company's reputation and future profitability. Effective management of environmental risks, such as waste disposal and water usage, can prevent costly incidents and regulatory fines. Moreover, companies that excel in ESG practices may gain a competitive advantage as investors and consumers increasingly favor environmentally responsible businesses.
The start of production at Yumpag coincides with a time of volatility in the commodity markets. The prices of gold and silver, the primary metals mined by Buenaventura, are influenced by numerous global factors such as currency strength, interest rates and economic sentiment. An increase in production from Yumpag could impact supply dynamics, potentially affecting prices.
For stakeholders, the timing of the mine's entry into production could be both a benefit and a risk, depending on market conditions. A bullish market for precious metals would enhance the value of the increased output, while a bearish market could compress margins. Additionally, the mine's production cost relative to the global average will be an important factor in determining its competitiveness in the commodity market.
03/18/2024 - 09:18 AM
LIMA, Peru --(BUSINESS WIRE)--
Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, is pleased to announce it has received its final operating permit from the Peruvian Ministry of Energy and Mines to begin production at its Yumpag mine (“Yumpag”).
Leandro Garcia, Buenaventura’s CEO, commented, "Receipt of this final permit for our flagship Yumpag mine represents a significant milestone for Buenaventura and also reflects our proficiency in handling mining projects as well as regulatory processes efficiently and effectively. Securing the necessary project stages and approvals in a timely manner demonstrates our readiness to capitalize on opportunities and execute strategic objectives with precision.” He continued, “We’re very enthusiastic about Yumpag’s future prospects to produce high-grade silver resources, with promising exploration campaigns. We’ve therefore achieved a key pillar to support Buenaventura’s overall growth strategy which, coupled with our focus on operational excellence and commitment to responsible resource management, position us to unlock significant value for our stakeholders."
The final operating permit approval for Buenaventura’s flagship Yumpag mine signifies the culmination of rigorous planning and preparation. This milestone marks the start of 1,000 ton per day uninterrupted mining at Yumpag, enabling Buenaventura to achieve its 2024 production guidance of 6.5 - 7.2 million silver ounces.
Company Description
Compañía de Minas Buenaventura S.A.A. is Peru’s largest, publicly traded precious and base metals Company and a major holder of mining rights in Peru . The Company is engaged in the exploration, mining development, processing and trade of gold, silver and other base metals via wholly-owned mines and through its participation in joint venture projects. Buenaventura currently operates several mines in Peru (Orcopampa*, Uchucchacua*, Julcani*, Tambomayo*, La Zanja*, El Brocal and Coimolache).
The Company owns 19.58% of Sociedad Minera Cerro Verde, an important Peruvian copper producer (a partnership with Freeport-McMorRan Inc. and Sumitomo Corporation).
For a printed version of the Company’s 2022 Form 20-F, please contact the persons indicated above, or download a PDF format file from the Company’s web site.
(*) Operations wholly owned by Buenaventura
Note on Forward-Looking Statements
This press release may contain forward-looking information (as defined in the U.S. Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties, including those concerning Cerro Verde’s costs and expenses, results of exploration, the continued improving efficiency of operations, prevailing market prices of gold, silver, copper and other metals mined, the success of joint ventures, estimates of future explorations, development and production, subsidiaries’ plans for capital expenditures, estimates of reserves and Peruvian political, economic, social and legal developments. These forward-looking statements reflect the Company’s view with respect to Cerro Verde’s future financial performance. Actual results could differ materially from those projected in the forward-looking statements as a result of a variety of factors discussed elsewhere in this Press Release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240318536000/en/
Contacts in Lima :
Daniel Dominguez, Chief Financial Officer
(511) 419 2540
Gabriel Salas, Head of Investor Relations
(511) 419 2591 / Gabriel.salas@buenaventura.pe
Contacts in NY:
Barbara Cano
(646) 452 2334
barbara@inspirgroup.com
Company Website: www.buenaventura.com.pe/ir
Source: Compañía de Minas Buenaventura S.A.A.
When did Buenaventura receive the final operating permit for Yumpag mine?
Buenaventura received the final operating permit for Yumpag mine recently.
Who is the CEO of Buenaventura?
Leandro Garcia is the CEO of Buenaventura.
What does the final operating permit allow Buenaventura to do?
The final operating permit allows Buenaventura to begin production at Yumpag mine.
What is the ticker symbol for Compañia de Minas Buenaventura S.A.A.?
The ticker symbol for Compañia de Minas Buenaventura S.A.A. is BVN.
