Buenaventura(BVN) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Copper production in 2025 reached 52.4 thousand tons, down 8% year-over-year due to processing stockpiles with higher precious metal content [5] - Silver production was 15.6 million ounces, a 1% increase from 15.5 million ounces in the previous year [6] - Gold production decreased by 18% year-on-year to 121,000 ounces, primarily due to lower output at Orcopampa and Tambomayo [6] - EBITDA from direct operations for 2025 was $112 million, an 88% increase from $431.5 million in 2024 [6] - Net income for 2025 was $830 million, compared to $460 million in 2024, including $157.3 million from the sale of Chaupiloma [6] - The company ended the year with a cash position of $530 million and total debt of $710 million, resulting in a leverage ratio of 0.22 times [7] Business Line Data and Key Metrics Changes - San Gabriel project reached 99% overall progress, with CapEx in Q4 2025 amounting to $153 million, mainly for the processing plant construction [7] - The company anticipates stable copper and silver production at El Brocal and Uchucchacua Yumpag, maintaining consistent output levels [8] - For 2025, total CapEx is expected to be between $385 million and $415 million, with sustaining CapEx focused on mine development and readiness works at San Gabriel [8] Market Data and Key Metrics Changes - The company expects gold production guidance for 2026 to be between 48,000 and 55,000 ounces, with pending milestones to achieve full potential [10] - The cash position increased in Q4 2025, driven by net cash inflows from operating activities [9] Company Strategy and Development Direction - San Gabriel is expected to become the main gold-producing asset, playing a key role in the long-term growth strategy [8] - The company aims to step up exploration investment to reinforce reserves and resources while enhancing efficiency through progressive closures [12] Management Comments on Operating Environment and Future Outlook - Management highlighted a supportive environment for exploration investment and emphasized a strong cash flow generation and solid balance sheet [12] - The company is focused on achieving a stable 2,000 tons per day throughput at San Gabriel by Q3 2026 [11] Other Important Information - The board approved a dividend of $0.9904 per share, totaling $1.135 per share over the past 12 months [7] - The company received $98 million in dividends from its stake in Cerro Verde after the quarter ended [7] Q&A Session Summary Question: CapEx increase and reasons behind it - Management explained that the significant increase in CapEx is primarily due to pending works related to earthworks and ramp-up of the San Gabriel project [14][15] Question: Lower production guidance for San Gabriel - Management indicated that the lower guidance is due to the need for improved ventilation and a revised production plan following an accident [18][22] Question: Changes in mining plans due to rising metal prices - Management confirmed that only the San Gabriel mining plan has been reviewed, with no changes to copper and silver objectives [24] Question: G&A and exploration budget for 2026 - The expected G&A for 2026 is around $60 million-$70 million, with exploration budget increased to $90 million-$100 million [30] Question: Status of asset sales and potential decisions - Management is evaluating asset sales and will inform the market once a decision is made, considering the current precious metals prices [39][58]