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

Summary of Compañía de Minas Buenaventura S.A.A. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Copper Production: 52,400 tons, down 8% year-over-year.
• Silver Production: 15.6 million ounces, up 1% year-over-year.
• Gold Production: 121,000 ounces, down 18% year-over-year.
• EBITDA: $112 million, an 88% increase from $431.5 million in 2024.
• Net Income: $1.83 billion, compared to $416 million in 2024 (which included a $157.3 million gain from the sale of Chaupi Loma).
• Cash Position: $530 million; Total Debt: $710 million; Leverage Ratio: 0.22x.
• Dividend: $0.9904 per share approved, totaling $1.0135 per ADS over the past year.

2. Strategic Updates and Business Highlights

• San Gabriel Project: Achieved 99% completion; CapEx for 2025 was $153 million, focused on processing plant construction.
• Dividend from Cerro Verde: Received $98 million post-quarter.
• Operational Reliability: Consistent copper and silver output supported by steady operations at El Brocal, Uchucchacua, and Yumpa.
• Exploration Investment: Increased focus on reinforcing reserves and resources, with a total exploration budget of $90-$100 million for 2026.

3. Forward Guidance and Outlook

• 2026 Production Guidance: Anticipate gold production of 48,055 ounces; stable copper and silver production expected.
• CapEx for 2026: Total expected between $385 million and $415 million, with $185 million to $195 million allocated for growth CapEx, primarily for San Gabriel.
• Revenue and EBITDA Forecast: Expected revenues between $1.8 billion and $2 billion, with EBITDA projected at $800 million to $1 billion, assuming certain commodity price levels.

4. Bad News, Challenges, or Points of Concern

• Declining Gold Production: Significant drop in gold output due to lower grades and operational adjustments at Orcopampa and Tambomayo.
• Increased Costs: Rising cash costs for copper and gold attributed to higher personnel costs and lower throughput efficiency.
• Operational Delays: Challenges in ramping up San Gabriel due to ventilation issues and additional earthworks required after rainy season impacts.
• Market Conditions: The company is reconsidering asset sales due to fluctuating precious metal prices, which may affect strategic decisions.

5. Notable Q&A Insights

• CapEx Increase: Management explained the significant CapEx increase was due to unexpected earthworks and infrastructure improvements needed for San Gabriel.
• Production Guidance Adjustments: Lower production guidance for 2026 was attributed to ventilation redesigns and operational adjustments following an accident in late December.
• Dividend Policy: The board approved a higher dividend payout of 40% of net income, reflecting strong financial performance and cash flow.
• Exploration and G&A: G&A expenses expected to remain stable, while exploration spending will increase to support ongoing projects.
• Asset Sales: The company is evaluating the sale of Orcopampa, Tambomayo, and Julcani, with decisions pending due to the current favorable market for precious metals.

This summary encapsulates the key points from the earnings call, providing a balanced view of Compañía de Minas Buenaventura's performance and strategic direction.