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

Summary of Compañía de Minas Buenaventura S.A.A. Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenues: $625 million, more than double year-over-year.
• EBITDA: $386 million, up over 300% year-over-year, with margins improving from 41% to 62%.
• Net Income: $355 million, a 142% increase year-over-year.
• Gold Production: 30,000 ounces, up 80% year-over-year, primarily due to ramp-up at San Gabriel.
• Silver Production: 3.9 million ounces, a 6% increase year-over-year.
• Copper Production: 10.9 thousand tons, down 11% year-over-year due to a focus on silver ore processing.
• Capital Expenditures (CapEx): $81 million, mainly for San Gabriel and sustaining Trapiche.
• Cash Position: $760 million, with a net cash positive position.

2. Strategic Updates and Business Highlights

• San Gabriel Ramp-Up: Entered ramp-up phase, with production expected to reach 2,000 tons per day by December 2026 and full capacity of 3,000 tons per day by 2027.
• Permitting Progress: Received key permits for San Gabriel and other projects, enhancing operational capacity and regulatory compliance.
• Dividend Inflows: Received $59 million in dividends from Cerro Verde, with a total of $157 million year-to-date.

3. Forward Guidance and Outlook

• Production Expectations: Anticipate sales from San Gabriel starting in Q2 2026, with continued ramp-up expected.
• Cerro Verde Performance: Expected to generate over $2.5 billion in EBITDA for the year, with potential dividends of around $200 million to Buenaventura.
• Cost Management: Anticipate continued increases in operational costs due to higher personnel expenses linked to profit-sharing arrangements.

4. Bad News, Challenges, or Points of Concern

• Copper Production Decline: 11% decrease in copper production due to strategic focus on silver ore processing.
• Operational Challenges at San Gabriel: Encountering issues with high moisture content in ore leading to processing difficulties, though expected to be resolved as the dry season approaches.
• Cost Pressures: Increased personnel costs due to higher profit-sharing payments, which rose significantly from $2.5 million to nearly $19 million year-over-year.
• Supply Chain Concerns: While no immediate supply issues were reported, rising diesel prices (up 50%) could impact operational costs.

5. Notable Q&A Insights

• San Gabriel Challenges: Management acknowledged challenges with clay in the ore affecting processing efficiency but assured that solutions are being implemented.
• Trapiche Project Development: No decision made on pursuing the Trapiche project independently or with a partner; ongoing investigations into geotechnical aspects.
• Political Climate in Peru: Management expressed confidence in the stability of the new government and its impact on mining regulations, indicating no expected changes to taxes or royalties.
• Hedging Policy: The company remains unhedged in copper, gold, and silver, preferring to operate in line with market conditions.

This summary encapsulates the key points from the earnings call, highlighting both the successes and challenges faced by Compañía de Minas Buenaventura S.A.A. in Q1 2026.