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

Summary of Compania de Minas Buenaventura Q2 2026 Earnings Call

1. Key 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.

2. Strategic 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.

3. Forward 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.

4. Challenges 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.

5. Notable 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.