Compania De Minas Buenaventura SAA (BVN) Q3 2025 Earnings Call Highlights: Navigating ...

This article first appeared on GuruFocus.

Copper Production: 12,800 tonnes, down 24% year-on-year. Silver Production: 4.3 million ounces, 3% lower year-on-year. Gold Production: 3,894 ounces, down 21% year-on-year. EBITDA from Direct Operations: $202.1 million, a 48% increase from the previous year. Net Income: $167.1 million, compared to $236.9 million in the previous year. Cash Position: $486 million at the end of the quarter. Total Debt: $711 million, with a leverage ratio of 0.41 times. San Gabriel CapEx: $92 million for the third quarter, with 96% overall project progress. Dividend Payment: Approved at $0.1446 per share.

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Release Date: October 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

EBITDA from direct operations in the third quarter of 2025 increased by 48% compared to the same quarter last year. San Gabriel project has achieved 96% overall progress, with construction 95% complete, and is on track to begin production in the fourth quarter of 2025. The company has a strong cash position of $486 million, enabling it to resume its dividend policy with a payment of USD0.1446 per share. Coimolache received a new operating permit, allowing full capacity production, which is expected to increase cash flow in the coming quarters. Buenaventura's flagship operations have driven strong cash flow generation and a solid balance sheet, allowing for value return to shareholders.

Negative Points

Copper production in the third quarter of 2025 decreased by 24% year-on-year due to the processing of ore stockpile in the previous year. Silver production was 3% lower compared to the same period last year, mainly due to lower production at Chakan Upa. Gold production decreased by 21% year-on-year, primarily due to lower output at Orcon Papa and Tambomayo. Net income for the quarter was $167.1 million, down from $236.9 million in the third quarter of 2024, which included a significant gain from the sale of Chapello. The third quarter 2025 cash position decreased due to net cash outflows from investing and financing activities, including the redemption of $149 million of its 2026 notes.

Q & A Highlights

Q: Can you provide more details on what is still pending for the San Gabriel project and when you expect to receive the necessary permits? Also, how confident are you about receiving these permits on time given recent government changes? A: We are coordinating the final permits for San Gabriel and are confident that we will receive them, allowing us to produce two gold bars by the end of the year. The power line construction is complete, and the energy station will be operational soon, enabling us to start the commissioning process, which will take a couple of months to complete.

Story Continues

Q: What is the expected production sequence for San Gabriel, and when do you anticipate the project to become EBITDA neutral? A: Initial gold bars are expected by the end of the year, with operational ramp-up starting in January. We anticipate producing 70,000 to 90,000 ounces of gold next year. We expect to reach breakeven by the second quarter of next year, even if not operating at full capacity.

Q: Can you elaborate on the power situation for San Gabriel and why the ramp-up will take two months? A: The power line construction and necessary permits are complete. The energy station will be operational soon, allowing us to start the commissioning process. This involves stabilizing power, feeding the mills, and starting the crushing and milling process, which will take a couple of months to complete.

Q: What are the production expectations for San Gabriel in the coming year? A: We expect to produce between 70,000 to 90,000 ounces of gold next year. We are working to achieve the upper range of this guidance by closely monitoring the commissioning process and optimizing operations.

Q: When do you expect San Gabriel to start generating positive cash flow? A: We anticipate that San Gabriel will start generating positive cash flow by the second quarter of next year, as we will begin with high-grade production, which should help us reach breakeven relatively quickly.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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