Financial Data and Key Metrics Changes - The company achieved record high EBITDA of $106 million in Q2 2025, with a last twelve months EBITDA of $344 million, benefiting from stable cash costs and higher gold prices [7][31] - Net revenues increased to $190 million in Q2 2025, reflecting a significant rise due to increased production and gold prices [31] - Net profit for the quarter was reported at $8 million, with adjusted net income reaching $37 million [9][33] Business Line Data and Key Metrics Changes - Gold equivalent production for Q2 was 64,000 ounces, an increase from 60,000 ounces in Q1 2025, and consistent with the same period last year [6][19] - Copper production contributed approximately 20% to revenues, with adjustments made for gold equivalent calculations based on copper sales [7][8] - The adjusted EBITDA contributions from various business units included Aranzazoo and Minos at $36 million and $34 million respectively, while Almas contributed $25 million [35] Market Data and Key Metrics Changes - The average gold price for the last twelve months was approximately $2,800, with current prices hovering around $3,400, indicating potential for further EBITDA improvement [7][31] - The company is experiencing stable all-in sustaining cash costs at BRL $1,449 million, consistent with previous quarters and last year when adjusted for constant prices [22][24] Company Strategy and Development Direction - The company is focused on three strategic avenues: delivering greenfield projects on time and budget, increasing exploration investments, and pursuing M&A opportunities [15][96] - Recent acquisitions include Bluestone and MSG, with plans to ramp up production at Borborema and Herradorada, expected to contribute significantly to future output [10][12] - The company aims to improve its market multiple by increasing production and addressing trading volume through its NASDAQ listing [13][100] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production increases in the second half of the year, particularly with Borborema expected to reach commercial production by September [11][73] - The company is actively engaging with local communities and authorities in Guatemala to ensure smooth project development [44][47] - Management highlighted the importance of maintaining safety standards, with over 1,000 days without lost time incidents during construction [17] Other Important Information - The company announced a dividend of $0.33 per share, resulting in a last twelve months dividend yield of 7.4% [16] - The IPO on NASDAQ is seen as a strategic move to enhance liquidity and market presence [14][96] Q&A Session Summary Question: What is the timeline for the final investment decision between Matupa and Guatemala? - Management expects to make a decision by the end of the year, contingent on social licensing progress in Guatemala [44][49] Question: What are the first impressions from site visits to MSG and opportunities for improvement? - Initial assessments indicate potential for increased production and reduced costs through equipment upgrades and operational efficiencies [46][50] Question: Is there space for additional M&A given the stronger cash position? - The company remains open to M&A opportunities while focusing on current projects, with a cautious approach to ensure accretive acquisitions [54][60] Question: What is the expected production and sales level for Borborema in Q3 and Q4? - The company anticipates reaching around 80% capacity by September, with plans to achieve full capacity by the end of the year [71][73] Question: What is the cash impact from gold hedges in the coming quarters? - The company has hedged approximately 80% of projected production from Borborema, with varying impacts expected in the second semester [72][78]

Investment Rating - Industry rating: Recommended [8] Core Insights - In 2024, CODELCO's copper production increased by 0.3% year-on-year to 1.328 million tons, while total copper production reached 1.4419 million tons, a 1.2% increase from 2023 [1][24] - The average realized copper price rose by 7.8% to 411.6 cents per pound in 2024, compared to 381.7 cents per pound in 2023 [3][24] - The direct C1 cash cost decreased by 1.97% to 199.1 cents per pound in 2024, down from 203.1 cents per pound in 2023 [4][11] - The company's revenue for 2024 reached $16.993 billion, a 3.66% increase from $16.393 billion in 2023, primarily driven by the rise in copper prices [7][24] - Gross profit for 2024 was $4.088 billion, reflecting a 31% year-on-year increase, with a gross margin of 24.1% [12][24] - Adjusted EBITDA increased by 30% to $5.439 billion in 2024, up from $4.184 billion in 2023 [13][24] - The net financial debt rose to $22.250 billion in 2024, a 12.1% increase from $19.255 billion in 2023 [17][24] Production and Sales - In Q4 2024, CODELCO's copper production was 454,400 tons, compared to 338,000 tons in Q3 2024 and 384,900 tons in Q4 2023 [1][2] - The total copper sales for 2024 were 1.5702 million tons, a 0.5% increase from 1.5626 million tons in 2023 [3][24] Cost and Pricing - The average exchange rate for 2024 was 944 Chilean pesos per US dollar, compared to 839 Chilean pesos per US dollar in 2023, reflecting a 12.5% depreciation of the Chilean peso [11][24] - Molybdenum production decreased by 6.1% to 15,300 tons in 2024, with a corresponding price drop of 11.8% to $21.3 per pound [6][24] Financial Performance - The pre-tax profit for 2024 was $791 million, a significant turnaround from a loss of $757 million in 2023 [14][24] - The net cash flow from operating activities increased by 52.4% to $3.6 billion in 2024, compared to $2.4 billion in 2023 [16][24] Capital Expenditure and Future Guidance - Total capital expenditure for 2024 was $4.4 billion, with plans for 2025 to increase to between $4.6 billion and $5.6 billion [20][24] - The guidance for 2025 includes a projected copper production of 1.37 to 1.4 million tons and a cash cost of 195 to 198 cents per pound [22][24]