Good day, ladies and gentlemen. Welcome to Compania de Minas Buenaventura Fourth Quarter and Full Year 2019 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded.At this time I would now like to introduce your host for today's call, Mr. Rodrigo Echecopar. Mr. Echecopar, you may begin.

Thank you. Good morning and welcome, everyone. Presently on the call today is Mr. Victor Gobitz, CEO. Also present and available for your questions are Mr. Leandro Garcia, Vice President CFO; Mr. Juan Carlos Ortiz, Vice President of Operations; Raul Benavides, Vice President of Business Development; and Alejandro Hermoza, Vice President of Sustainability.Before we get started in today's call, we will make forward-looking statements that reflect the company's current expectations about the future plans and performance. These statements rely on assumptions and estimates, and actual results may differ materially due to risks and uncertainties. I encourage you to read the full disclosure concerning forward-looking statements, which is in the press release we filed on February 20, 2019 [ph].With that, I'll turn the call over to Mr. Victor Gobitz. Please go ahead.

Thank you Rodrigo. Good morning to all and thank you for attending this conference call. We are pleased to present the results of the fourth quarter of 2019 from Compania de Minas Buenaventura. We have prepared a PowerPoint presentation which is available in our web page.Before we go further, please take a moment to review the cautionary statement shown on Slide 2. Moving on to Slide 3 highlights were as follows. In the fourth quarter of 2019, EBITDA from direct operation was $73.9 million compared to $68.7 million reported in the fourth quarter of 2018.In the fourth quarter of 2019, the adjusted EBITDA including associated companies reached $176.8 million compared to $147.4 million in the fourth quarter of 2018. Primarily due to improved results of Cerro Verde and Coimolache.In the fourth quarter of 2019 capital expenditures were $38.4 million, compared to $41.2 million for the same period in 2018. In the fourth quarter of 2019, net loss was $53.7 million, compared to a net loss of $72.9 million for the same period in 2018.The company's portfolio of greenfield projects continue progressing well during the quarter. At Yumpaq our silver project, at San Gabriel our gold project and Trapiche our copper project we are declaring our results in this fourth quarter of 2020.In the fourth quarter of 2019, Buenaventura generated $13.6 million in incremental EBITDA through the company's de-bottlenecking program. The program enables Buenaventura to increase the efficiency of Tambomayo, Uchucchacua and El Brocal mines.Yanacocha's Quecher Main project is on budget and achieved commercial production in the fourth quarter of 2019. Cerro Verde processing plants averaged almost 400,000 metric tons of ore per day, approximately 10% above nameplate capacity.A dividend payment of $0.027 was proposed at Buenaventura’s February 20, 2020 Board Meeting. Moving on to Slide 4, summery. In 2019, 3…

Thank you. We will now be conducting a question and answer session. [Operator instructions] Our first question today will come from Thiago Ojea of Goldman Sachs. Please go ahead.

Hi, thanks, everyone. I would like for you, if you can discuss a little bit about the debottlenecking and the cost, the difference on cash that was reported. We saw the cash in several operations going up to the overall cash for the company going down.And how does it relate to the bottlenecking. And we saw as well in the fourth quarter negative free cash flow. So the total net debt now rose to above $400 million. How do you see that in terms of capital allocation for the future? Thank you.

Thank you Thiago for your two questions. The first one is regarding the debottlenecking program. One part is related specifically to the technical part. And the second part regarding the differences between our information we express in terms of EBITDA and also in terms of production costs US dollar per metric tons of cash.The first one would -- that first part two will be answered by Juan Carlos.

Hello, there. This is Juan Ortiz from Operations. The evolution of the debottlenecking program was due to the result expected in the last quarter of 2019. One of the main evolutions was in terms of value, we consolidate the change in the processing of the ore, reducing the cost of sanitation and sanitation on the concentrated on 100% of the core profit, but only on about 5% of the mass the concentrated.So, we achieved that consolidated result in the last quarter and it is a real cash saving. And we call this a recovery with lower expenses. Also the consolidated reduction in meters, the need to develop meters for exploration, we consolidate the strategy to do more drill holes and longer drill holes that are cheaper to do than the tunnels and we consolidate the structure and the strategy also in our minds particularly in Tambomayo and Uchucchacua.

Yes. The second part of your question. What was the differences in between them our [indiscernible] and cash? And also resulted in the free cash flow Alejandro if you will explain that to him the topics?

Beginning with a free cash flow. We -- in this year we repay the loans in the short term -- the short term loan. And also with the payment. We have the schedule for our long term. Hopefully also we have made an additional disbursement for dividends and mega different of around $100 million in the reducing cash flow.For the debt, you also asked for what are we planning to that. We are planning to refinance our debt facility in this 2020 in April. We should have an announcement of our refinancing debt.

Yes, we're taking advantage of the market to increase the maturity and to reduce that costs.

Yes. Regarding the cost -- the cash and the operating costs, we report is that basically the difference is the accounting methods we use for the cash and our operational costs. There are some differences within week accounts.We take in an account to report those costs. And the for example, the cash considered inventories, initial inventories, the final inventories of our concentration the answers we have in containing our constant. So, there will be -- I think very recommendable to have a reconciliation that we can send you before to go through from our operating cost to our cash and we can send it to you.

Okay, thanks so much. Just for following up. What do you -- how do you see the current net debt level? How should we see the capital allocation in terms paying down debt and dividends in the future? What are the priorities for the company going forward? Thank you.

Yes, in general terms Thiago we are comfortable with our current level of debt. But as Alejandro said, during 2020, we intend to extend the maturity of these total debt in order to be more comfortable in order to be able to allocate part of these capital for our future growth.

Thank you.

You are welcome.

[Operator Instructions] Our next question today will come from [indiscernible]. Please go ahead.

Hi, good morning everyone. Thanks for the opportunity. My first question is regarding reserves. In Orcopampa I see that you have reduced reserves further from what could be explained by production on 2019.And Tambomayo reserves for this year are largely and perhaps only explained but by production on 2019. However you have -- you should be reducing and to my standing the cutoff rate of Tambomayo? And is there any other factor on this on the exploration process on 2019 that made you guys discover these reserves on Orcopampa and not more in Tambomayo, both reserves I am speaking of?

Thank you for the question. The first part is technical part Carlos Ortiz will explain that. At the second part all the different aspects that we have to deal with rural communities in order to expand those programs will be explain by Alex Hermoza.

Hi, good morning. In the case of Orcopampa in the last quarter, in the last month of 2019, we achieved the balance for a positive EBITDA in a new strategies with limited production and focusing on high grade in the underground mine.This impact on the increase on the cut off the duration we need to run the resource with a new cut off and as a reduction in the reserve, as presented in December 2019. The exploration is ongoing in Orcopampa.We are working hard on that. But, so far we are having only mine reserves probably along the year we can deliver more news about exploration of Orcopampa. Regarding Tambomayo the exploration is focusing right now at the bottom part of the mine and we are still within fair reserves.So, we are not publishing and not increasing any of results so far. And this would likely impact also in the value of the ore, particularly for the value coming from the zinc and lead. As you know, the throughput charge has been increased in both markets zinc and lead.And that generates lesser value from the ore coming or the ore that has an important value in Tambomayo in zinc and lead terms. That's the reason these blocks have been pushing for reserve to excluding resources in here as like small amounts.It's a gold mine but still, though, has a section of the mine that has an important value coming from the latency that they are have impacted by this treatment charge in 2019.

Yeah, the second part of your question on the follow up regarding our exploration. As you know in Peru we have also a new rule regarding the prior consultation and Alejandro Hermoza will explain in more detail on this topic.

Yes, hello. Yes. Juan Carlos explained about the mine exploration but regarding the near mine and district explorations, we have had some delays, both from reaching agreements, land agreements with community symbols.And on the other side, as Victor explained, we have this, Peru subscribe the ILO 169 convention, which has to do with prior consultation to population around the surrounding projects. And this process, which is not handled by the company, it's handled directly by the officials from the ministry.They're taking longer than we expected. And not only Tambomayo in different sites, we have these delays. And we expect that after many changes that have been going on inside the ministry, changes of responsibles and officers in-charge of with take to have that process back on track on this year and this semester.

Okay, great. Have a follow up question as well. So, I see that you declared reserves with gold at 1300. If gold continues to be at these levels, current levels for the coming years, could you give some color on how much reserves would you have or perhaps in terms of life of mine could you have in Orcopampa and Tambomayo, please?

[Indiscernible] in general terms when you talk about ore reserves we try to define a long-term gold price. The long-term gold price is in the order of $1300. The current price is $1500, sorry $1600. But for the long-term we'd have to be careful and to have a more conservative overview. And we as a company we use $1300 per ounce of gold.

Yeah, naturally, but if prices continue to be at these levels, would you be able to continue or other terms of the pit that would be economically viable to continue and to extend the life of mine without any further exploration?

Yeah. I suppose it is a possibility. The problem that it's too early to try to calculate the amount involved in this option.

Okay. Thanks very much.

You are welcome.

Ladies and gentlemen. This will conclude our question and answers session. At this time, I'd like to turn the conference back over to Mr. Victor Gobitz for closing remarks

Thank you, everyone for joining our conference call this morning. On behalf of Buenaventura's management team, I would like to express our commitment off maintaining our plan of developing the full potential of existing assets, prioritizing our long term perspective in order to give more predictability in terms of production and profitability.In this respect we can say that 2019 was a transitional year, essential to achieving these goals. Just to let you know we are attending at BMO Metals and Mining Conference next week in Miami. And finally we are glad to invite you to our Investor Day that will take place on Monday, March 9th in New York.Please contact our IR team for further information. Thank you again and have a wonderful day.

The conference is now concluded and we thank you for attending today's presentation. You may now disconnect your lines.