RT Satraj (@sat_bam_)Excited to share our Q3 results for the Round13 Digital Asset Fund. Since inception, we’ve navigated a challenging market environment, protected capital through volatility, and consistently delivered results for our investors, reflected in our closing MOIC of 2.02x.As we close out the year, we’re entering 2026 with an extremely strong cash position and a disciplined approach, ready to deploy when the right market signals emerge and value becomes undeniable. The opportunity ahead remains ...

Core Insights - Warren Buffett's actions with Berkshire Hathaway's balance sheet signal caution amid elevated stock market valuations [1][2] - The company has significantly increased its cash position while halting share buybacks, indicating a more conservative approach [3][5] Group 1: Cash Position and Share Buybacks - Berkshire Hathaway's cash and equivalents reached $344 billion, surpassing the market capitalizations of all but 27 publicly traded companies [3] - Buffett has reduced his stock holdings, including a decrease in his position in Apple to $267 billion, suggesting more capital is sidelined than invested [4] - Share repurchases have been completely halted in Q2 2025, contrasting with previous years when billions were spent on buybacks [5] Group 2: Valuation Metrics - The price-to-book (P/B) ratio for Berkshire Hathaway has risen to a 10-year high of nearly 1.8, indicating that Buffett does not see the stock as a bargain [6] - The S&P 500 index currently trades at a P/E ratio of 30, significantly above its long-term average, with high-growth stocks like Nvidia at 59 and Walmart at 42 [8] Group 3: Investment Strategy - Buffett's historical pattern shows he increases cash positions and exits stocks when valuations are overheated, as seen in past market cycles [8] - The current market environment makes it challenging for Buffett to find bargain stocks, leading him to prefer cash equivalents for guaranteed interest income [9] - Investors are advised to consider Buffett's cautious approach, especially older investors who may be drawing down funds for retirement [12][14]

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]