Buenaventura (BVN) to Resume Operations at Uchucchacua Mine
Compañía de Minas Buenaventura S.A.A. BVN announced that on Aug 28, 2023, it submitted the Updated Mine Plan to the Peruvian Ministry of Energy and Mines for its fully owned Uchucchacua mine. This marks a step toward restarting operations at the mine, which had been suspended since October 2021.
Located in Lima, Uchucchacua is an underground operation that produces silver, lead, and zinc. The COVID-19 pandemic adversely impacted mine preparation and exploration at the mine, leading to delays, which were further worsened by operational challenges. Production had, thus, been impacted in 2020 and 2021.
Also, operations at the mine had to be suspended due to a local community strike initiated on Sept 13, 2021. BVN had then requested the Peruvian minister for mines and energy for an extended suspension, as it took steps to meaningfully improve efficiency and profitability at the mine. Thus, mining and ore processing activities at the mine had been temporarily suspended since Oct 15, 2021.
The company will initiate relevant maintenance work on Sep 1 to ensure that the processing plant is ready to operate and receive ore from Uchucchacua and Yumpag.
Treatment of ore at the processing plant is expected to begin in the second half of September. BVN is expecting to attain a 2,600-ton-per-day production. The company expects to maintain these levels henceforth.
With the resumption of operations at the Uchucchacua processing facility, Buenaventura will also be able to conduct metallurgical testing on up to 124,600 tons of ore from the Yumpag project's pilot stope.
Buenaventura expects the Uchucchacua mine and the Yumpag project to yield between 2.3 million and 2.8 million ounces of silver in 2023.
Buenaventura anticipates receiving the Environmental Impact Assessment for the Yumpag project operation by the end of the third quarter of 2023. Following the receipt of the approvals, the company will then apply to the Peruvian Ministry of Energy and Mines for clearance to begin mining operations at its Yumpag project.
Price Performance
Shares of Buenaventura have gained 62.8% in the past year compared with the industry’s 15.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Buenaventura currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Hawkins, Inc. HWKN, PPG Industries, Inc. PPG and L.B. Foster Company FSTR. HWKN sports a Zacks Rank #1 (Strong Buy) at present, and PPG and FSTR carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares gained 35.7% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 4.3%. PPG’s shares have gained 9.7% in the past year.
L.B. Foster has an average trailing four-quarter earnings surprise of 134.5%. The Zacks Consensus Estimate for FSTR’s 2023 earnings is pegged at 53 cents per share. Earnings estimates have been unchanged in the past 60 days. FSTR’s shares gained 30.2% in the last year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
L.B. Foster Company (FSTR) : Free Stock Analysis Report
Buenaventura Mining Company Inc. (BVN) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
