Buenaventura(BVN)2025-02-21 18:40Financial 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]