BVN — Compañía de Minas Buenaventura S.A.A.

Summary of Compania de Minas Buenaventura Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Copper Production: 12,800 tonnes, down 24% year-on-year.
• Silver Production: 4.3 million ounces, a decrease of 3% from 4.4 million ounces in Q3 2024.
• Gold Production: 30,894 ounces, down 21% year-on-year.
• EBITDA: $202.1 million, a 48% increase from $136.5 million in Q3 2024.
• Net Income: $167.1 million, compared to $236.9 million in Q3 2024, which included a significant one-time gain from the sale of Chaupiloma.
• Cash Position: $486 million with total debt of $711 million, resulting in a leverage ratio of 0.41x.
• Dividend: Board approved a dividend payment of $0.1446 per share ADS.

2. Strategic Updates and Business Highlights

• San Gabriel Project: CapEx for Q3 was $92 million, with overall progress at 96%. The project is on track to begin commercial production in Q4 2025, pending final permits.
• Coimolache: Received a new operating permit, allowing for full capacity production at the Tantahuatay leach platform.
• Operational Efficiency: Focus on increasing throughput while maintaining cost efficiency across flagship operations.

3. Forward Guidance and Outlook

• San Gabriel Production: Expected to produce 70,000 to 90,000 ounces of gold in 2026, with initial gold bars anticipated by mid-December 2025.
• Breakeven Point: Expected to reach breakeven by Q1 or Q2 2026, driven by high-grade ore processing.

4. Bad News, Challenges, or Points of Concern

• Declining Production: Significant decreases in copper, silver, and gold production year-on-year due to planned mining sequences and operational issues at certain sites.
• Dependence on Permits: The timeline for San Gabriel's production is contingent on timely government approvals, which could be affected by recent political changes in the country.
• Cash Flow: Decrease in cash position attributed to net cash outflows from investing and financing activities.

5. Notable Q&A Insights

• San Gabriel Permits: Management expressed confidence in receiving the necessary permits on time, with power line construction completed and commissioning expected to take a couple of months.
• Production Sequence: Initial production will ramp up in January 2026, with a focus on high-grade ore to achieve breakeven quickly.
• Market Conditions: The team is optimistic about the project’s timing amidst favorable gold prices, which could enhance profitability.

This summary encapsulates the key points from Buenaventura's Q3 2025 earnings call, highlighting both achievements and challenges faced by the company.