Buenaventura(US:BVN)2025-05-01 14:00Financial 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]