Compañía de Minas Buenaventura S.A.A.

Second quarter revenue was $529 million, up 43% year over year. EBITDA from direct operations reached $277 million, up 113% year over year, and EBITDA margin expanded from 35% to 52%. Net income was $261 million, up 165% year over year. Consolidated gold production was 30.1 thousand ounces, up 12% year over year; silver production was 3.6 million ounces, up 2%; and copper production was 13.5 thousand tons, up 2%. CapEx totaled approximately $98 million, and the company ended the quarter with $759 million in cash and $69.002 million in total debt, for a net cash position of approximately $67 million. For the full year, management said total CapEx is expected to be around $500 million, San Gabriel CapEx for the rest of the year is around $60 million, additional El Niño-related CapEx is about $12 million, and Cerro Verde dividends are expected to total $350 million to $380 million for 2026. Management also said Yumpag throughput is being raised to 1.2 thousand tons per day, and San Gabriel gold recovery is expected to reach about 70% by the end of 2026 and nearer to 85% by the end of 2027.

Leandro Garcia framed the quarter as evidence that Buenaventura’s portfolio is translating higher metal prices and stronger operations into cash generation and balance-sheet strength. He emphasized San Gabriel’s ramp-up, Yumpag’s expansion, exploration as part of the company’s long-term model, and disciplined capital allocation toward assets that improve productivity and shareholder value. His tone was constructive but cautious on execution, especially at San Gabriel, where he stressed stable, sustainable ramp-up rather than rushing growth.

Daniel Dominguez highlighted the company’s financial flexibility, citing $759 million in cash, $69.002 million in total debt, and a negative 0.05x net debt-to-EBITDA ratio. He also noted that the power subsidiary reduced its financial lease balance from $63 million to $50 million and that Cerro Verde dividends had reached $274 million year to date, including $118 million received in July. On costs, he said higher diesel had added about 5% to OpEx last quarter and could still imply a 5% to 7% impact if prices stay elevated, while workers’ profit sharing was also nudging costs up.

Analysts focused heavily on San Gabriel’s ramp-up, asking about mine and plant performance versus the block model, what remained to reach steady state, and how recovery problems were being addressed. Management said underground mining is tracking plan, but the processing plant still needs reinforcement of the tailings press-filter structures and better recovery of gold affected by organic carbon and sulfides; they are testing additional reagents in August and expect about 70% recovery by end-2026, with a flotation circuit potentially lifting recovery further by end-2027. Questions also covered Cerro Verde dividends, with management guiding to $350 million to $380 million for 2026, Yumpag’s throughput and cost benefits, and El Niño preparedness, where the company said it has added about $12 million of CapEx for pumping, water treatment, and structural reinforcements.