Summary of Compania de Minas Buenaventura Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenues:: Increased 43% year-over-year to $529 million.

EBITDA:: Rose 113% to $277 million, with EBITDA margins expanding from 35% to 52%.

Net Income:: Reached $261 million, a 165% increase year-over-year.

Cash Position:: Closed the quarter with $759 million in cash and $69 million in total debt, resulting in a net cash position of approximately $67 million.

Dividends from Cerro Verde:: Totaled $274 million year-to-date, with an additional $118 million received in July.

2Strategic Updates and Business Highlights

Gold Production:: Increased 12% year-over-year to 30.1 thousand ounces, driven by the ramp-up of San Gabriel.

Silver Production:: Rose 2% to 3.6 million ounces, supported by higher output at Jumpak.

Copper Production:: Stable at 13.5 thousand tons, primarily from El Brocal.

San Gabriel Project:: Began commercial sales and is progressing through its ramp-up phase, with plans to enhance throughput and recovery rates.

Yumpag Approval:: Received approval to increase mining throughput from 1,000 tons per day to 1,200 tons per day, expected to enhance production capacity.

3Forward Guidance and Outlook

CapEx for 2026:: Expected to total around $500 million, with approximately $200 million spent in the first half.

Production Goals:: Aiming for 70% gold recovery by the end of 2026 and further improvements through additional flotation circuits by 2027.

Cerro Verde Dividends:: Anticipated total dividends for 2026 between $350 million to $380 million, with expectations for similar levels in 2027.

4Challenges and Points of Concern

San Gabriel Operational Challenges:: Issues with tailings management and filtration have constrained throughput, impacting recovery rates and operational efficiency.

Cost Pressures:: While inflationary pressures from fuel and labor are noted, no major increases in operational costs are anticipated. However, ongoing challenges with reagent costs and supply chain issues remain.

El Niño Preparedness:: Increased CapEx of $12 million has been allocated to mitigate potential impacts from heavy rainfall associated with El Niño, though no damage has been reported to date.

5Notable Q&A Insights

San Gabriel Optimization:: The ramp-up is on track, but further engineering work is needed to enhance processing throughput and recovery rates, particularly addressing issues with organic matter in ore.

Cost Structure:: The increase in throughput at Yumpag is expected to improve cost efficiency, with a projected 15%-17% reduction in operating costs due to cheaper electricity from the national grid.

Cerro Verde Production:: Steady copper production is expected, with no changes to guidance despite lower production compared to the previous year.

Future Developments:: Plans for the Trapiche copper greenfield project are being evaluated, with a focus on reducing risks and understanding the business potential amid rising copper prices. This summary encapsulates the key financial metrics, strategic updates, forward guidance, challenges, and insights from the Q&A session, providing a balanced view of Buenaventura's performance and outlook.