Group 1 - Compañía de Minas Buenaventura S.A.A. (NYSE: BVN) has been monitored for over 20 years, with previous hesitations primarily due to doubts regarding the value proposition of gold [1] - The company operates in a diverse range of industries, including mining, and has been analyzed through various economic crises and market conditions [1] Group 2 - The analyst has a long position in ORAAF shares, indicating a positive outlook on the company's performance [2] - The article reflects the author's personal opinions and does not represent any business relationship with the companies mentioned [2]

Financial Performance - The company's net income for 1Q25 was US$140 million, compared to US$61 million in 1Q24[4] - The company's cash position is US$648 million and debt is US$862 million, with a leverage ratio of 046x[4] - The company received US$49 million in dividends from Cerro Verde[6] - 1Q25 EBITDA was US$126 million with a 41% margin, compared to US$95 million with a 38% margin in 1Q24[4] Production - Copper production was 122 kton in 1Q25, a 20% increase compared to 102 kton in 1Q24[8] - Gold production was 365 kOz in 1Q25, a 24% decrease compared to 478 kOz in 1Q24[8] - Silver production was 31 Moz in 1Q25, a 21% decrease compared to 37 Moz in 1Q24[8] Costs - Copper All-in Sustaining Cost decreased 83% from 1Q24 to 1Q25[12] San Gabriel Project - The San Gabriel project is 79% complete as of 1Q25[6, 19, 20, 22] - Total CAPEX for San Gabriel as of 1Q25 is US$505 million[17] - The CAPEX for FY25 has been revised to US$220-250 million[17] - The company anticipates the first gold bar from San Gabriel in 4Q25[17, 18, 29] Reserves - Consolidated reserves have been updated as of 2024, with increases of 482 kOz for gold, 61 Moz for silver, and 253 kton for copper compared to 2023[9, 10]

Financial Data and Key Metrics Changes - The company's EBITDA from direct operations for Q1 2025 was $126 million, up from $95 million in Q1 2024, reflecting an EBITDA margin increase to 41% from 38% year-over-year [8] - Net income for Q1 2025 was $140 million, compared to $61 million in the same period last year [8] - The cash position at the end of the year was $648 million, with total debt at $862 million, resulting in a net leverage ratio of 0.46 times [9] Business Line Data and Key Metrics Changes - Silver production increased by 20% year-over-year to 3.7 million ounces, with 2.2 million ounces coming from Jumpak [11] - Copper production decreased by 21% year-over-year, primarily due to the processing of remaining inventories from the El Brocal pen pit [11] - Gold production was 27,980 ounces, down from 36,593 ounces in Q1 2024, mainly due to decreased output at Tambomayo and Orcopampa [11] Market Data and Key Metrics Changes - The all-in sustaining cost for Q1 2025 decreased by 83% compared to the same period last year, driven by lower commercial deductions and higher by-product rates [12] - Cash costs applicable to sales for copper increased year-over-year due to lower by-product credit contributions at El Brocal [13] Company Strategy and Development Direction - The company is focused on reserve growth, EBITDA maximization, and cost efficiency at flagship mines, with a strong pipeline of projects [17] - The San Gabriel project is on track, with 79% overall completion and expected to produce its first gold bar in Q4 2025, pending necessary permits [15][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the CapEx for San Gabriel is expected to be between $720 million and $750 million, with an internal rate of return around 12% to 13% [22][23] - The company anticipates an increase in overall CapEx for 2025 to a range of $400 million to $420 million due to adjustments in the San Gabriel project [38] Other Important Information - The company received $49 million in dividends related to its stake in Cerro Verde [10] - The exploration budget for 2025 is projected to be around $40 million to $45 million for operating units and $20 million for non-operating areas [32] Q&A Session Summary Question: Clarification on San Gabriel CapEx and expected returns - Management clarified that the CapEx increase in 2025 is due to geotechnical and hydraulic issues, with expected returns maintaining profitability at $1,600 per ounce [22][23] Question: Exploration budget and administrative expenses - The exploration budget is set at $40 million to $45 million for operating units, with administrative expenses expected to be around $60 million to $65 million for the year [32][33] Question: Updates on underground operations and training - The company is on track with training underground miners and has 60,000 tons of ore on the surface, with development proceeding as planned [50][51] Question: Status of permits and construction at Comalache - Construction permits were granted in March, and construction began in April, with expectations to start piling fresh ore by August [55]

Financial Data and Key Metrics Changes - The company's EBITDA from direct operations for Q1 2025 was $126 million, up from $95 million in Q1 2024, reflecting an EBITDA margin increase to 41% from 38% year-over-year [7] - Net income for Q1 2025 was $140 million, compared to $61 million in the same period last year [7] - The cash position at the end of the quarter was $648 million, with total debt of $862 million, resulting in a net leverage ratio of 0.46 times [8] Business Line Data and Key Metrics Changes - Silver production increased by 20% year-over-year to 3.7 million ounces, with 2.2 million ounces coming from Jumpak [9] - Copper production decreased by 21% year-over-year, primarily due to the processing of remaining inventories from the El Brocado pen pit [9] - Gold production fell to 27,980 ounces from 36,593 ounces in Q1 2024, mainly due to decreased output at Tambomayo and Orcopampa [9] Market Data and Key Metrics Changes - The all-in sustaining cost for Q1 2025 decreased by 83% compared to the same period last year, driven by lower commercial deductions and higher by-product rates [11] - Cash costs applicable to sales for copper and silver increased year-over-year, while gold cash costs rose primarily due to lower volumes and grades at Tambomayo and Orcopampa [12] Company Strategy and Development Direction - The company is focused on reserve growth, EBITDA maximization, and cost efficiency at flagship mines, with a strong pipeline of projects [16] - The San Gabriel project is on track, with 79% overall completion and expected to produce its first gold bar in Q4 2025, pending necessary permits [14][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the San Gabriel project and its expected profitability, maintaining an internal rate of return (IRR) of around 12% to 13% [20][21] - The company anticipates an increase in capital expenditures for 2025, now expected to be between $400 million and $420 million, due to additional costs associated with San Gabriel [34] Other Important Information - The company received $49 million in dividends related to its stake in Cerro Verde [8] - Exploration expenses for 2025 are projected to be around $40 million to $45 million for operating units and $20 million for non-operating areas [28] Q&A Session Summary Question: Clarification on San Gabriel CapEx and expected returns - Management confirmed that the CapEx increase in 2025 is due to geotechnical and hydraulic issues, with total CapEx for the project now estimated between $720 million and $750 million, maintaining profitability at $1,600 gold prices [20][21] Question: Exploration budget and administrative expenses - The exploration budget for operating units is expected to be $40 million to $45 million for the year, with administrative expenses projected at $60 million to $65 million due to higher worker participation from increased profits [28][29] Question: Update on underground operations and training - The company is on track with underground training and development, with 60,000 tons of ore material on the surface and plans to hire new crews by July [45][46] Question: Status of permits and construction at Comalache - Construction permits were granted in March, and construction began in April, with expectations to start piling fresh ore by August [51]

Market Prices - The morning fixing price for gold on the London Bullion Market was US$2,611 per ounce on December 31, 2024, and US$3,120 per ounce on March 31, 2025[51]. - The afternoon fixing spot price of silver on the London market was US$28.91 per ounce on December 31, 2024, and US$34.06 per ounce on March 31, 2025[51]. - The London Metal Exchange Spot Price for copper was US$8,706 per tonne on December 31, 2024, and US$9,673 per tonne on March 31, 2025[51]. - A continued decline in market prices of gold, silver, and copper could adversely impact revenues, net income, and cash flows[53]. Operating Costs and Profitability - Increased operating costs, including higher equipment, energy, and production costs, could adversely affect profitability and results of operations[68]. - The company no longer engages in hedging activities for gold and silver prices, exposing it fully to market price fluctuations[51]. Mineral Reserves and Exploration - The company may face challenges in replenishing mineral reserves due to the speculative nature of exploration and potential changes in economic feasibility[64]. - The estimates of proven and probable reserves are subject to uncertainties, and actual recovery may vary from estimates[72]. Tax Liabilities - The tax claim for the years 2007, 2008, 2009, and 2010 initially amounted to 373.3 million soles (approximately US$99.0 million), escalating to 2,107.5 million soles (approximately US$559.0 million) due to penalties and fees[78]. - The total amount paid for the disputed tax assessment related to fiscal years 2007 and 2008 was S/1,584,227,000 (equivalent to US$420,219,000), while for fiscal year 2009 it was S/193,398,000 (equivalent to US$51,299,000), and for fiscal year 2010 it was S/356,691,000 (equivalent to US$94,613,000)[80]. - As of 2023, the probability of recovering a portion of the payments made under protest to the Tax Administration related to fiscal years 2009 and 2010 was assessed to be less than 50%, leading to a recognized liability of S/420,231,000 (equivalent to US$111,823,000)[82]. Labor Relations - Unions represented approximately 17.6% of the company's and its subsidiaries' employees as of December 31, 2024, indicating potential risks related to labor disputes[88]. Partnerships and Interests - The company holds a 19.58% partnership interest in Cerro Verde and has no longer any interest in Yanacocha, having sold its stake to Newmont on February 8, 2022[96]. Credit Ratings - The company is rated "BB" by Fitch, "Ba3" by Moody's Investors Service, and "BB-" by S&P Global Ratings, which could impact borrowing costs if ratings are downgraded[102]. Political and Social Risks - The company has faced local political protests and social risks that could disrupt operations and affect future mining projects[89]. - The political and social situation in Peru directly impacts the company's operations, with significant unrest leading to violence and vandalism affecting mining facilities[121]. - Over 60 Peruvians died during three months of violence in early 2023, impacting public and private institutions, including critical mining infrastructure[122]. Legal and Compliance Risks - Legal proceedings against SUNAT could have a material adverse effect on the company's business, with ongoing appeals in Peruvian courts[85]. - The company is subject to evolving anti-bribery and anti-corruption laws in Peru, which may not be as stringent as those in other jurisdictions, necessitating ongoing compliance efforts[110]. Community Relations - The company has implemented extensive community relations practices to manage social issues that may arise at its operations[101]. Geotechnical and Environmental Risks - Geotechnical challenges could adversely impact production and profitability, with potential risks from severe weather and hydrological conditions[91]. - The company owns 15 tailings dams, including 1 under construction, 5 active, and 9 inactive, which could present stability risks, especially related to liquefaction[104]. - The company maintains strict operational controls on critical components to mitigate risks associated with tailings dam failures, which could lead to severe damages and loss of life[106]. Cybersecurity Risks - Cyber incidents, including deliberate attacks, have been increasing, posing risks to the company's information technology systems and potentially disrupting operations[107]. - A cyber-attack could cause temporary interruptions in production and expose the company to liabilities if sensitive personal information is compromised[108]. Shareholder Rights and Corporate Governance - As of March 31, 2025, the Benavides Family holds approximately 35% of the company's outstanding share capital, potentially limiting other shareholders' influence[129]. - Shareholders' rights under Peruvian law are less defined compared to those in the U.S., which may complicate enforcement of their rights[132]. - The company is subject to less stringent disclosure requirements than U.S. companies, potentially resulting in less information available to investors[134]. - Holders of ADSs may be unable to exercise preemptive rights and accretion rights for Common Shares unless specific conditions are met[136]. - A capital increase requires approval from holders of at least 40% of Common Shares at a properly called meeting[136]. - U.S. Holders of ADSs may face limitations in exercising rights unless a registration statement under the Securities Act is effective[136]. - Any rights offering could have a dilutive effect on shareholders who do not exercise their rights[136]. - The Depositary has discretion to sell preemptive rights or accretion rights for holders of ADSs and distribute net proceeds[136]. - If the Depositary cannot make rights available, they may allow the rights to lapse[136].

Financial Data and Key Metrics Changes - Full year EBITDA for 2024 reached $431 million, a significant increase from $199 million in 2023, resulting in an EBITDA margin of 37% compared to 24% the previous year [8] - Net income for 2024 was $402.7 million, a substantial rise from $19.9 million in 2023, with a cash position of $478 million and total debt of $627 million, leading to a leverage ratio of 0.34 times [9] - Total capital expenditures (CapEx) for 2024 amounted to $378 million, with $291 million allocated to the San Gabriel project [11] Business Line Data and Key Metrics Changes - Silver production in 2024 reached 15.5 million ounces, a 69% increase from 9.2 million ounces in the previous year, with significant contributions from Uchucchacua and Yumpag complex [11] - The all-in sustaining cost for the fourth quarter of 2024 increased by 26% year-over-year, primarily due to increased exploration activities [13] Market Data and Key Metrics Changes - The company anticipates stable copper and silver production at El Brocal and Uchucchacua, maintaining consistent output levels [21] - The expected cash cost for the San Gabriel project is projected at $1,400 per ounce of gold, with an anticipated annual production of approximately 120,000 ounces [32] Company Strategy and Development Direction - The San Gabriel project is expected to become the main gold-producing asset, playing a crucial role in the company's long-term growth strategy [13] - The company has resumed its dividend payment policy, proposing a dividend of $0.2922 per share, reaffirming its commitment to delivering returns to investors [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial position following successful bond issuance, which enhances liquidity and flexibility for future growth [21] - The year 2025 is viewed as a significant transition period, with the ramp-up of production at San Gabriel marking an important milestone [21] Other Important Information - The company received $166.5 million in dividends for the full year 2024, including $78.3 million related to its stake in Cerro Verde [10] - The construction of the San Gabriel project is 71% complete, with the ramp-up phase expected to commence in the third quarter of 2025 [17] Q&A Session Summary Question: What are the key elements of the construction of San Gabriel that are still pending? - The main goals for the next three months include commissioning the electric room in the crusher circuit and the carbon in leaching area [29] Question: What is the expected cash cost and all-in sustaining cost for the San Gabriel project? - The expected cash cost is $1,400 per ounce of gold, with an annual production of around 120,000 ounces [32] Question: Is the proposed dividend the only payment for 2024? - The management proposed a dividend of around $80 million, which is 20% of net profit, and is open to evaluating additional dividends in the future [44] Question: Are there any risks related to the completion of the San Gabriel project? - There are minimal risks regarding procurement and weather, with no significant delays anticipated [52] Question: What is the expected cost for El Brocal? - The expected cost for El Brocal is around $6,500 per tonne of copper, with stable performance anticipated [56] Question: What is the progress on the underground mine at San Gabriel? - The underground mine is on track, with 20,000 tonnes of ore already on the surface and plans to increase stockpile to 300,000 tonnes by October [70] Question: What is the expected dilution in the stope models? - The expected dilution is around 12%, which will be monitored and fine-tuned as operations progress [82] Question: When will the updated reserves for San Gabriel be reported? - The updated reserves are expected to be reported on April 30 [90]

4Q24 Earnings Results Conference Call 109 149 130 FY24 FY25E 13.8 15.5 15.7 FY24 FY25E 55 57 60 FY24 FY25E $330M $355M- Maintenance ~$135M San Gabriel ~$180M Growth ~$30M +6% +1% -13% Kton-Cu MOz-Ag kOz-Au CAPEX Copper Silver Gold 4 Cautionary Statement This presentation contains certain information that may constitute forward-looking information under applicable U.S. securities legislation, including but not limited to information about costs applicable to sales, general and administrative expenses; produc ...

Core Viewpoint - Markets are experiencing volatility due to escalating tariff concerns and stagnant interest rates, making value investing a strategic approach to identify fundamentally strong stocks trading below their intrinsic value [1] Earnings Yield Analysis - Earnings yield is calculated as annual earnings per share (EPS) divided by market price, serving as a measure of anticipated return from earnings for each dollar invested [3] - A higher earnings yield indicates a stock may be undervalued, while a lower yield suggests it may be overpriced [3] - Earnings yield can be compared to prevailing interest rates, such as the 10-year Treasury yield, to assess relative value against fixed-income securities [4] Investment Strategy - A screening criterion of an earnings yield greater than 10% is established, supplemented by additional parameters such as estimated EPS growth and average daily trading volume [6][7] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers in various market conditions [8] Selected Stocks - **Dana Incorporated (DAN)**: Expected 2025 earnings growth of 79%, with a recent EPS estimate increase of $0.20, Zacks Rank 1, Value Score A [9] - **Ingevity Corporation (NGVT)**: Anticipated 2025 earnings growth of 62%, with a $1 increase in EPS estimates, Zacks Rank 1, Value Score B [10] - **Compania de Minas Buenaventura S.A.A. (BVN)**: Projected 2025 earnings growth of 30.5%, with a $0.03 increase in EPS estimates, Zacks Rank 1, Value Score B [11] - **Noble Corporation (NE)**: Expected 2025 earnings growth of 22%, with an $0.08 increase in EPS estimates, Zacks Rank 1, Value Score A [12] - **Suzano S.A. (SUZ)**: Anticipated 2025 earnings growth of 395%, with a $0.21 increase in EPS estimates, Zacks Rank 1, Value Score A [13]

Core Viewpoint - Compañía de Minas Buenaventura S.A.A. has successfully completed a cash tender offer for its outstanding 5.500% Senior Notes due 2026, with a significant participation rate of approximately 72.98% of the total notes outstanding [1][2]. Group 1: Tender Offer Details - The tender offer expired on January 29, 2025, at 5:00 p.m. New York City time, with valid tenders received for US$401,392,000 in aggregate principal amount of notes [2]. - Holders of the notes who validly tendered their notes will receive US$1,000 per US$1,000 principal amount of notes, plus accrued and unpaid interest from the last interest payment date to the settlement date [3]. - The complete terms and conditions of the tender offer are detailed in the Offer to Purchase and the Notice of Guaranteed Delivery, which are available through the designated tender agent [3]. Group 2: Management and Contact Information - Banco BTG Pactual S.A. – Cayman Branch and J.P. Morgan Securities LLC have been engaged as dealer managers for the tender offer [3]. - Inquiries regarding the terms of the tender offer can be directed to the dealer managers via provided contact numbers [3].

Core Viewpoint - Compañía de Minas Buenaventura S.A.A. has announced the expiration of its cash tender offer for its outstanding 5.500% Senior Notes due 2026, with a significant portion of the notes being tendered by the expiration time [1][2]. Group 1: Tender Offer Details - The tender offer expired on January 29, 2025, with valid tenders received for US$400,601,000 in aggregate principal amount of notes, representing approximately 72.84% of the outstanding notes [2]. - Notices of Guaranteed Delivery were submitted for US$850,000 in aggregate principal amount of notes, approximately 0.15% of the outstanding notes [2]. - Holders of notes must validly tender their notes by January 31, 2025, to participate in the tender offer under the Guaranteed Delivery Procedures [2][3]. Group 2: Payment and Settlement - Buenaventura expects to accept and make payment on February 4, 2025, for all notes validly tendered and not withdrawn by the specified deadlines [3]. - Eligible holders will receive US$1,000 per US$1,000 principal amount of notes, plus accrued and unpaid interest from the last interest payment date to the settlement date [4]. Group 3: Final Results and Communication - The final principal amount of notes purchased will be announced in a press release after the settlement date [5]. - Interested parties can obtain the complete terms and conditions of the tender offer from the designated tender agent and information agent [5].