• EBITDA from Direct Operations: $126 million, up from $95 million in Q1 2024.
• EBITDA Margin: 41%, compared to 38% in the previous year.
• Net Income: $140 million, compared to $61 million in Q1 2024.
• Cash Position: $648 million at the end of the quarter.
• Total Debt: $862 million, resulting in a leverage ratio of 0.46 times.
• CapEx: $36 million, with $22 million allocated to the San Gabriel project.
• Silver Production: 3.7 million ounces, a 20% increase from 3.1 million ounces in Q1 2024.
• Copper Production: Decreased by 21% year over year.
• Gold Production: 27,988 ounces, down from 36,593 ounces in Q1 2024.
• All-in Sustaining Cost: Decreased by 83% year over year.
• San Gabriel Project Completion: 79% overall completion by Q1 2025.
• San Gabriel Total CapEx: $505 million as of March 2025.

• Warning! GuruFocus has detected 5 Warning Signs with BVN.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Compania De Minas Buenaventura SAA (NYSE:BVN) reported a strong first-quarter 2025 EBITDA from direct operations of $126 million, up from $95 million in the first quarter of 2024.
• The company achieved a higher EBITDA margin of 41% compared to 38% in the previous year.
• First-quarter 2025 net income significantly increased to $140 million from $61 million in the first quarter of the previous year.
• Silver production increased by 20% year over year, reaching 3.7 million ounces, driven by full-scale operations at Yumpag.
• Gold, silver, and copper reserves have increased, with gold reserves up by 482,000 ounces, silver reserves by 61 million ounces, and copper reserves by 253,000 tons.

Negative Points

• Copper production decreased by 21% year over year due to the processing of remaining El Brocal open pit inventories in the first quarter of 2024.
• Gold production fell to 27,988 ounces from 36,593 ounces in the first quarter of 2024, primarily due to decreased production at Tambomayo and Orcopampa.
• The company's total debt increased to $862 million, resulting in a leverage ratio of 0.46 times.
• The all-in sustaining cost for the first quarter of 2025 decreased by 83%, but this was primarily driven by lower commercial deductions and higher byproduct credits, indicating potential volatility.
• San Gabriel project faced geotechnical and hydraulic issues, leading to additional costs and a revised total CapEx estimate of $720 million to $750 million.

Q & A Highlights

Q: Can you clarify if the CapEx increase for San Gabriel in 2025 represents an overall project increase or just a shift from 2026? Also, what is the expected return on this investment, and what permits are pending for production to start this year? A: The CapEx increase is due to geotechnical and hydraulic issues, but the project maintains its profitability with an IRR of around 12-13%. The total CapEx is now expected to be between $720 million and $750 million. The pending permits are for operation authorization, expected once construction is completed.

Q: What is the exploration budget for 2025, and why were general and administrative expenses higher in the first quarter? A: The exploration budget for operating units is $40-45 million for the year, with an additional $20 million for non-operating areas. The higher administrative expenses are due to increased worker participation from higher profits, with expected expenses of $60-65 million for the year.

Q: With the increase in San Gabriel's CapEx, what is the new total expected for 2025, and what caused the overrun? A: The total CapEx for 2025 is now expected to be $400-420 million, up from the previous $330-355 million. The overrun is due to inadequate material and hydrogeological issues at the water dam, requiring additional work and coordination.

Q: Can you provide an update on the underground development at San Gabriel, including training, development, and stockpile targets? A: Training is on track with new crews being hired and trained at Tambomayo. Development is proceeding with 60,000 tons of ore on the surface. The contractor is advancing 600-800 meters per month, and the first Buenaventura crew will be on site in July.

Q: What is the status of the Coimolache project permits and construction? A: The construction permit was granted in March, and construction began in April. The project is on track to start piling fresh ore by August, with increased gold production expected by late October or early November.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.