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

• Gold Production: 30,000 ounces, an 80% increase year-over-year, attributed to ramp-up operations at San Gabriel.
• Silver Production: 3.9 million ounces, up 6% year-over-year, driven by higher output at El Brocal.
• Copper Production: 10.9 thousand tons, down 11% year-over-year, primarily due to a focus on silver ore processing.
• Total Revenues: $625 million, more than double compared to the same quarter last year.
• EBITDA: $386 million, over three times higher year-over-year, with margins improving from 41% to 62%.
• Net Income: $355 million, a 142% increase year-over-year.
• Capital Expenditures (CapEx): $81 million, focused on 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, Yumpag, El Brocal, and Trapiche, enhancing operational capacity and regulatory compliance.
• Dividend Inflows: Received $59 million in dividends from Cerro Verde, totaling $157 million year-to-date.

3. Forward Guidance and Outlook

• Production Expectations: Anticipate sales from San Gabriel to begin in Q2 2026, with ongoing improvements expected in operational efficiency.
• Cerro Verde Performance: Expected to generate over $2.5 billion in EBITDA for the year, with potential for additional dividends.
• Cost Management: While costs are expected to rise due to increased personnel expenses, overall operational performance remains strong.

4. Bad News, Challenges, or Points of Concern

• Copper Production Decline: A decrease in copper output due to prioritizing silver ore processing at El Brocal.
• Operational Challenges at San Gabriel: Issues with high moisture content in ore causing delays in the crushing circuit, although these are being addressed with planned solutions.
• 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.

5. Notable Q&A Insights

• San Gabriel Challenges: Management detailed operational challenges, including clay content in ore affecting processing efficiency. Solutions are being implemented to mitigate these issues.
• Trapiche Project Decision: No final decision on whether to pursue the Trapiche project independently or with a partner; ongoing feasibility studies are in progress.
• Supply Chain Stability: No major disruptions in supply chains reported, although costs for diesel and other supplies have increased.
• Political Environment: Management expressed confidence in the stability of the new Peruvian Congress and the likelihood of no significant changes to tax or permitting regulations.

This summary encapsulates the key points discussed during the earnings call, providing a balanced view of Compañía de Minas Buenaventura's performance and outlook.