Buenaventura(US:BVN)2025-11-18 15:32Summary of Compañía de Minas Buenaventura (NYSE:BVN) 2025 Investor Day Company Overview - Company: Compañía de Minas Buenaventura - Event: 2025 Investor Day held on November 18, 2025 - Key Speakers: Leandro García (CEO), Daniel Dominguez (CFO), Juan Carlos Ortiz (VP of Operations), Roque Benavides (Chairman) Industry Insights - Mining Sector: Focus on gold, silver, and copper production - Market Position: Currently ranked 81st in market capitalization, with aspirations to reach the top 50 in 15 years - Production Goals: - Gold: From current 120,000-130,000 ounces to 200,000-220,000 ounces per year - Silver: From current levels to 20-22 million ounces per year - Copper: From current levels to 120,000-130,000 tons per year Core Strategies and Financial Performance - Revenue Mix: 50% base metals and 50% precious metals, targeting a minimum EBITDA margin of 30% [5][6] - Financial Strength: Current leverage ratio at 0.45, down from 6 times EBITDA five years ago [9] - Investment Grade: Aiming to regain investment grade status and participate in new mining standards [5] Production and Operational Highlights - Flagship Projects: - Cerro Verde: Partnership with Freeport-McMoRan - Uchucua and Yumpac: Silver complex - Brocal: Copper mine - San Gabriel: Expected to start production in December 2025 [3][6] - Production Forecast: - Gold production expected to reach 75,000-80,000 ounces in 2026, increasing to over 100,000 ounces in subsequent years [28] - Copper production at El Brocal projected to reach 60,000 tons per year by 2029 [34] Cost Management and Efficiency - Cost Reduction Initiatives: - San Gabriel cash costs projected to decrease from $2,000 to $1,500-$1,400 per ounce as production ramps up [52] - El Brocal cash costs expected to reduce from $6,000 to $5,000 per ton [53] - Uchucua cash costs projected to decrease from $12 to $9-$10 per ounce [53] - Coimolache costs expected to drop from $1,400 to $1,100 per ounce [54] Environmental, Social, and Governance (ESG) Practices - Local Employment: 64% of employees are from local communities [14] - Safety Record: Zero fatal accidents reported this year [15] - Renewable Energy: 100% of energy sourced from renewable sources [16] - Community Investment: $240 million spent annually on local services and goods [15] Political and Economic Context - Political Landscape: Upcoming elections in Peru may bring discussions on nationalization and tax changes, but the current political context is more stable compared to 2021 [18][19] - Macroeconomic Fundamentals: Strong central bank and positive performance of the Peruvian sol [19] Future Outlook - Cash Flow Projections: Expected positive free cash flow starting in 2026, with projections of $150 million in 2026 and $400 million in 2027 [56][57] - Capital Expenditures: Estimated at $400 million for 2025, with a focus on San Gabriel construction and sustaining CapEx for other projects [55] - Dividend Expectations: Anticipated dividends from Cerro Verde of $150 million-$170 million annually [56] Conclusion - Strategic Focus: Buenaventura is committed to operational stability, strategic expansion, and maintaining a strong financial position while enhancing production capabilities across its flagship projects [58][59]