Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What are the key elements of the San Gabriel project's construction that are still pending, and what are the most critical aspects? A: Renzo Macher, Vice President of Projects and Innovation, explained that the main goals for the next three months include commissioning the electric in the crusher circuit, followed by the C1 and C2 commissioning of the crusher area, and then the carbon leaching area. The cash cost for the project is expected to be around $1,400 per ounce of gold, with an annual production of 120,000 ounces.
Q: Is the proposed dividend payment the only one expected for 2024, and will there be an increase in 2025? A: Leandro Garcia, CEO, stated that the proposed dividend is around $80 million, which is 20% of net profit. The company is open to evaluating additional dividends if opportunities arise. The previous limited payments were due to the San Gabriel construction and operational challenges, but the company is now in a better position.
Q: Are there any risks related to the completion of the San Gabriel project, particularly concerning weather or social issues? A: Renzo Macher noted that procurement is complete, and the rainy season is ending, with no significant delays expected. Social issues are being managed without any stoppages, and the focus will shift to obtaining necessary permits once construction is complete.
Q: How will the cost structure at El Brocal be affected by lower by-product contributions, and what is the expected cost for 2025? A: Juan Carlos Ortiz, Vice President of Operations, indicated that the cost is expected to stabilize around $6,500 per tonne of copper. This is due to a combination of reducing unit costs and aligning copper grades with reserve averages.
Q: What is the status of the underground development at San Gabriel, and how are ground conditions being managed? A: Juan Carlos Ortiz reported that the mine development is on track, with 20,000 tonnes of ore already stockpiled. The ground conditions are manageable, with no water issues. The company is benchmarking against mines in Nevada to optimize costs and operations.
Q: What are the expectations for dividends from Cerro Verde in 2025? A: Daniel Dominguez, Vice President of Finance and Administration, expects dividends similar to 2024, given Cerro Verde's strong cash generation and lack of debt.
Q: Can you provide an update on the Trapiche project and its milestones for this year? A: Aldo Massa, Vice President of Business Development and Commercial, mentioned that the focus is on advancing the feasibility study, securing environmental permits, and working with communities to secure power line access.
Q: How is the partnership with Antofagasta progressing, and what benefits does it bring? A: Leandro Garcia expressed satisfaction with the partnership, noting that Antofagasta supports the company's strategy and efforts to increase visibility and operational stability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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