Key Takeaways Micron Technology, Five Below and Buenaventura lead momentum picks with major 1-year gains.MU shows 21.7% average earnings surprise, aligning with strong momentum and earnings growth criteria. FIVE and BVN post 63.4% and 80.4% average earnings surprises, supporting sustained price uptrends. A proven way to identify the strongest momentum stocks is by applying the principle of “buy high and sell higher" investment philosophy, a successful investment approach that helped Richard Driehaus earn a ...

Core Insights - The efficiency level of a company is crucial for assessing its potential to generate profits and is positively correlated with price performance [1] Efficiency Ratios - Receivables Turnover measures a company's ability to extend credit and collect debts, with a high ratio indicating quality customers [2] - Asset Utilization indicates how effectively a company converts assets into output, with a high ratio suggesting efficiency [3] - Inventory Turnover reflects a company's ability to maintain an appropriate inventory level, with a high value indicating low inventory relative to cost of goods sold [4] - Operating Margin measures a company's control over operating expenses, with a high ratio indicating efficient management compared to peers [5] Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) to enhance profitability [6] - The criteria narrowed down over 7,906 stocks to 13 based on efficiency ratios exceeding industry averages [7] Selected Stocks - Buenaventura Mining (BVN) shows strong efficiency metrics with an average four-quarter earnings surprise of 80.4% [8][9] - Veeco Instruments (VECO) has an average four-quarter earnings surprise of nearly 26% [8][10] - Blue Bird (BLBD) achieved an average four-quarter earnings surprise of 23.3% [8][11] - Eni (E) has an average four-quarter earnings surprise of 13.5% [8][12]

Group 1 - Peru has approved an environmental study for Buenaventura's Trapiche copper project, which involves an estimated investment of $3.4 billion [1] - The environmental certification office SENACE stated that the approval guarantees development under high sustainability standards in the Apurimac region [1] - Although the study's approval is crucial, it does not authorize the miner to commence operations, as additional permits are required [1] Group 2 - Buenaventura is one of Peru's largest mining firms and owns several gold and silver mines across the country [1] - The Trapiche project is expected to become one of Buenaventura's most significant copper projects upon its operational start after 2030 [1] - Buenaventura holds close to 20% of Cerro Verde, one of Peru's largest copper deposits, which is operated by Freeport McMoRan [1]

Group 1 - BHP has shown a year-to-date return of 19%, outperforming the Basic Materials sector average return of 16% [4] - The Zacks Consensus Estimate for BHP's full-year earnings has increased by 10% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - BHP currently holds a Zacks Rank of 1 (Strong Buy), suggesting it has characteristics favorable for outperforming the market in the near term [3] Group 2 - BHP is part of the Mining - Miscellaneous industry, which has an average year-to-date gain of 17.6%, indicating BHP's performance is above the industry average [6] - Buenaventura, another stock in the Basic Materials sector, has a year-to-date return of 33.1% and a Zacks Rank of 1 (Strong Buy) [5] - The Mining - Silver industry, to which Buenaventura belongs, has seen a year-to-date increase of 21.7% [6]

Financial Data and Key Metrics Changes - Copper production in 2025 was 52.4 thousand tons, down 8% year-over-year due to processing stockpiles with higher precious metal content [5] - Silver production reached 15.6 million ounces, a 1% increase from 15.5 million ounces in the previous year [6] - Gold production was 121,000 ounces, down 18% year-on-year, primarily due to lower output at Orcopampa and Tambomayo [6] - EBITDA for 2025 was $112 million, an 88% increase from $431.5 million in 2024 [6] - Net income for 2025 was $830 million, compared to $460 million in 2024, including $157.3 million from the sale of Chaupiloma [6] - The company ended the year with a cash position of $530 million and total debt of $710 million, resulting in a leverage ratio of 0.22x [7] Business Line Data and Key Metrics Changes - The focus for gold production is shifting to San Gabriel, expected to become the main gold-producing asset in the coming years [8] - CapEx for 2025 is projected between $385 million and $415 million, with $200 million-$220 million allocated for sustaining CapEx [8] Market Data and Key Metrics Changes - The company anticipates stable copper and silver production at El Brocal and Uchucchacua, maintaining consistent output levels [8] - The expected production guidance for gold in 2026 is between 48,000 and 55,000 ounces [10] Company Strategy and Development Direction - The company aims to enhance exploration investments to reinforce reserves and resources while advancing progressive closures to improve efficiency [12] - San Gabriel is transitioning from project execution to ramp-up, targeting a stable throughput of 2,000 tons per day by the third quarter of 2026 [11] Management Comments on Operating Environment and Future Outlook - Management highlighted a supportive environment for exploration investments and emphasized a strong cash flow generation and solid balance sheet [12] - The company is focused on improving ventilation systems and addressing production flexibility due to recent operational challenges [22] Other Important Information - The board approved a dividend of $0.9904 per share, totaling $1.135 per share over the past 12 months [7] - The company received $98 million in dividends from its stake in Cerro Verde after the quarter ended [7] Q&A Session Summary Question: CapEx increase and reasons behind it - Management explained that the increase in CapEx is primarily due to pending works related to earthworks and ramp-up at San Gabriel [14][15] Question: Lower production guidance for San Gabriel - Management indicated that the lower guidance is due to construction and permitting delays, as well as the need to redesign the ventilation system [19][21] Question: Guidance on G&A and exploration budget - The expected G&A for 2026 is around $60 million-$70 million, with exploration budget increased to $90 million-$100 million [28][29] Question: Status of asset sales and strategic review of mines - Management confirmed ongoing evaluations of asset sales, with a focus on the feasibility of selling mines separately or as a whole [56][58] Question: Dividend payment timeline - The dividend payment is expected in April, with $200 million in dividends from Cerro Verde anticipated throughout the year [62][63]

Financial Data and Key Metrics Changes - Copper production in 2025 reached 52.4 thousand tons, down 8% year-over-year due to processing stockpiles with higher precious metal content [5] - Silver production was 15.6 million ounces, a 1% increase from 15.5 million ounces in the previous year [6] - Gold production decreased by 18% year-on-year to 121,000 ounces, primarily due to lower output at Orcopampa and Tambomayo [6] - EBITDA from direct operations for 2025 was $112 million, an 88% increase from $431.5 million in 2024 [6] - Net income for 2025 was $830 million, compared to $460 million in 2024, including $157.3 million from the sale of Chaupiloma [6] - The company ended the year with a cash position of $530 million and total debt of $710 million, resulting in a leverage ratio of 0.22 times [7] Business Line Data and Key Metrics Changes - San Gabriel project reached 99% overall progress, with CapEx in Q4 2025 amounting to $153 million, mainly for the processing plant construction [7] - The company anticipates stable copper and silver production at El Brocal and Uchucchacua Yumpag, maintaining consistent output levels [8] - For 2025, total CapEx is expected to be between $385 million and $415 million, with sustaining CapEx focused on mine development and readiness works at San Gabriel [8] Market Data and Key Metrics Changes - The company expects gold production guidance for 2026 to be between 48,000 and 55,000 ounces, with pending milestones to achieve full potential [10] - The cash position increased in Q4 2025, driven by net cash inflows from operating activities [9] Company Strategy and Development Direction - San Gabriel is expected to become the main gold-producing asset, playing a key role in the long-term growth strategy [8] - The company aims to step up exploration investment to reinforce reserves and resources while enhancing efficiency through progressive closures [12] Management Comments on Operating Environment and Future Outlook - Management highlighted a supportive environment for exploration investment and emphasized a strong cash flow generation and solid balance sheet [12] - The company is focused on achieving a stable 2,000 tons per day throughput at San Gabriel by Q3 2026 [11] Other Important Information - The board approved a dividend of $0.9904 per share, totaling $1.135 per share over the past 12 months [7] - The company received $98 million in dividends from its stake in Cerro Verde after the quarter ended [7] Q&A Session Summary Question: CapEx increase and reasons behind it - Management explained that the significant increase in CapEx is primarily due to pending works related to earthworks and ramp-up of the San Gabriel project [14][15] Question: Lower production guidance for San Gabriel - Management indicated that the lower guidance is due to the need for improved ventilation and a revised production plan following an accident [18][22] Question: Changes in mining plans due to rising metal prices - Management confirmed that only the San Gabriel mining plan has been reviewed, with no changes to copper and silver objectives [24] Question: G&A and exploration budget for 2026 - The expected G&A for 2026 is around $60 million-$70 million, with exploration budget increased to $90 million-$100 million [30] Question: Status of asset sales and potential decisions - Management is evaluating asset sales and will inform the market once a decision is made, considering the current precious metals prices [39][58]

Financial Data and Key Metrics Changes - Copper production in 2025 reached 52.4 thousand tons, down 8% year-over-year due to processing stockpiles with higher precious metal content [5] - Silver production was 15.6 million ounces, a 1% increase from 15.5 million ounces in the previous year [6] - Gold production decreased by 18% year-on-year to 121,000 ounces, primarily due to lower output at Orcopampa and Tambomayo [6] - EBITDA for 2025 was $112 million, an 88% increase from $431.5 million in 2024 [6] - Net income for 2025 was $830 million, compared to $460 million in 2024, including $157.3 million from the sale of Chaupiloma [6] - The company ended the year with a cash position of $530 million and total debt of $710 million, resulting in a leverage ratio of 0.22 times [7] Business Line Data and Key Metrics Changes - The company anticipates stable copper and silver production at El Brocal and Uchucchacua Yumpag, maintaining consistent output levels [8] - CapEx for 2025 is expected to be between $385 million and $415 million, with $200 million-$220 million allocated for sustaining CapEx [8] Market Data and Key Metrics Changes - The company received $98 million in dividends from its stake in Cerro Verde after the quarter ended [7] - The board approved a dividend of $0.9904 per share, totaling $1.135 per share at ADS over the past 12 months [7] Company Strategy and Development Direction - San Gabriel is expected to become the main gold-producing asset, playing a key role in the long-term growth strategy [8] - The company is focusing on exploration investments to reinforce reserves and resources while enhancing operational efficiency [13] Management Comments on Operating Environment and Future Outlook - Management highlighted a supportive environment for exploration investments and a strong cash flow generation [13] - The company is transitioning San Gabriel from project execution to ramp-up, aiming for stable production of 2,000 tons per day by the third quarter of 2026 [12] Other Important Information - The company produced its first gold bar at San Gabriel and received the initial operating permit [10] - The water license is expected in the coming weeks [11] Q&A Session Summary Question: CapEx increase and reasons behind it - Management explained that the increase in CapEx is primarily due to pending works related to earthworks and ramp-up of the San Gabriel project [15][16] Question: Lower production guidance for San Gabriel - Management indicated that the lower guidance is due to pending construction and permitting issues, as well as the need to improve ventilation systems [19][22] Question: Exploration and G&A guidance for 2026 - Management expects G&A for 2026 to be around $60 million-$70 million, with exploration budget increased to $90 million-$100 million [30][31] Question: Status of asset sales and Coimolache sulfides study - Management confirmed that they are analyzing the feasibility of selling certain mines and expect to provide updates on the Coimolache study in the first half of the year [34][61] Question: Dividend payment timeline - The dividend payment is expected in April, with $200 million in dividends from Cerro Verde anticipated throughout the year [67]

4Q25 Earnings Results Conference Call Cautionary Statement Net Income (US$ M)(3) 30 406 416 830 4Q24 4Q25 FY24 FY25 +99% Cash Position: US$ 530 M Debt: US$ 710 M Leverage Ratio 6.14x 3.58x 2.80x 2.44x 0.34x 0.22x FY20 FY21 FY22 FY23 FY24 FY25 San Gabriel has reached 99% total progress. Construction is 98% complete. 4Q25 CAPEX related to San Gabriel was US$ 153 M On 29-Jan, BVN received US$ 98 M in dividends from Cerro Verde Buenaventura's Board of Directors has approved a dividend payment of US$ 0.9904 per ...

Core Viewpoint - Compañia de Minas Buenaventura S.A.A. reported its financial results for the fourth quarter and full year of 2025, highlighting its position as Peru's largest publicly-traded precious metals mining company [1] Financial Performance - The company’s results for 4Q25 and FY25 were prepared in accordance with IFRS on a non-GAAP basis and are expressed in U.S. dollars [1]

Core Viewpoint - Silver prices have surged to all-time highs alongside gold, driven by both monetary demand and industrial applications [1][2][13] Industry Overview - The rally in silver is supported by its dual role as a monetary metal and its essential use in various industrial applications, including solar panels, electric vehicles, and electronics [2][3] - Silver's unique properties, such as high electrical and thermal conductivity, strong reflectivity, and antimicrobial behavior, make it vital for modern technology [3] Company Summaries First Majestic Silver – AG - Current stock price is $29, operating silver mines in Mexico, and is a high-leverage miner with significant margin improvement potential [5] - Achieved record silver-equivalent output of 15.4 million ounces in 2025, with projected annual earnings growth of 30% to $0.60 per share in the current year and an 85% increase to $1.12 in fiscal 2027 [6] - Stock has increased nearly 80% year-to-date, with substantial EPS revisions across upcoming quarters [7][8] Buenaventura Mining – BVN - Current stock price is $40, a leading miner in Peru with diversified production in gold, silver, copper, lead, and zinc [9] - Shares have risen 200% in the last year, with an attractive forward earnings multiple of 11X and high-double digit EPS growth forecasted [9] Fresnillo – FNLPF - Current stock price is $57, recognized as the world's primary silver producer with over 500% stock gain in the last year [11] - Projected FY26 EPS is $2.91, a 708% increase from the previous year, with FY27 EPS expected to reach $3.01, trading at a forward P/E multiple of 18X [12] - Fresnillo has the highest revenue projections among peers, expected to exceed $5 billion annually [12] Market Sentiment - The Zacks Mining-Silver Industry is currently ranked in the top 6% of over 240 Zacks industries, indicating strong market sentiment [13] - The three highlighted stocks are rated with a Zacks Rank 1 (Strong Buy), reflecting their potential for continued growth [13]