Buenaventura Mining Q2 2026 Earnings Report

Buenaventura Mining EPS Results

• Actual EPS: $0.94
• Consensus EPS: $0.99
• Beat/Miss: Missed by -$0.05
• One Year Ago EPS: N/A

Buenaventura Mining Revenue Results

• Actual Revenue: $528.99 million
• Expected Revenue: $610.00 million
• Beat/Miss: Missed by -$81.01 million
• YoY Revenue Growth: N/A

Buenaventura Mining Announcement Details

• Quarter: Q2 2026
• Date: 7/30/2026
• Time: After Market Closes
• Conference Call Date: Friday, July 31, 2026
• Conference Call Time: 11:00AM ET

Compañía de Minas Buenaventura S.A.A. (NYSE: BVN) is one of Peru’s leading precious metals producers, primarily engaged in the exploration, development and operation of gold, silver and base metal mines. Headquartered in Lima, the company’s core activities cover the entire mining cycle from concession acquisition and project evaluation to extraction, milling and metal refining. Buenaventura also holds interests in smelting, refining and trading services, enabling it to market its products both domestically and internationally.

The company’s principal assets include several operating mines in Peru such as Uchucchacua (silver-lead-zinc), Orcopampa (gold-silver) and the Tambomayo gold mine. In addition, Buenaventura participates in the Yanacocha gold mining joint venture with Newmont Corporation, which ranks among the world’s largest gold producers. Beyond these operations, Buenaventura maintains a portfolio of exploration and development projects across Peru and in neighboring Latin American countries, targeting resources that complement its existing precious and base metals output.

Buenaventura’s products are sold to international refiners and commodity traders, with a focus on markets in North America, Europe and Asia. The company leverages both its in-house metallurgical capabilities and strategic partnerships to optimize recovery rates and ensure compliance with environmental and social standards. Buenaventura has implemented community engagement programs and sustainability initiatives to support local development, water management and biodiversity conservation around its mining sites.

Founded in 1953, Buenaventura has grown from a regional exploration firm into a diversified mining company listed on the Lima Stock Exchange and the New York Stock Exchange. Long-time leader Roque Benavides Cámara serves as President and Chief Executive Officer, overseeing corporate strategy, operations and stakeholder relations. With more than six decades of experience in the Peruvian mining sector, Buenaventura continues to pursue selective exploration opportunities and strategic joint ventures to build long-term value for its shareholders.

Buenaventura Mining Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter results were strong: revenue rose 43% year over year to $529 million, EBITDA from direct operations more than doubled to $277 million, and net income increased 165% to $261 million. The company ended the quarter with $759 million in cash and a $67 million net cash position.
• Negative Sentiment: San Gabriel began commercial sales and produced 2,800 ounces of gold, but its ramp-up remains constrained by tailings filtration and recovery issues. Management expects roughly 70% recovery by year-end 2026 and potentially about 85% by the end of 2027, with additional flotation infrastructure estimated at approximately $15 million.
• Positive Sentiment: Yumpag received approval to increase throughput by 20%, from 1,000 to 1,200 tons per day, potentially lifting production by about 10%. Connecting the operation to Peru’s national grid by the fourth quarter is expected to reduce operating costs by approximately 15%–17%.
• Positive Sentiment: Buenaventura expects total 2026 dividends from its Cerro Verde stake of approximately $350 million–$380 million, including $274 million received or reported through July. Management said strong commodity prices and cash generation provide flexibility to fund growth projects and maintain its dividend policy.
• Negative Sentiment: The company identified potential exposure to a strong El Niño event and authorized an additional $12 million of 2026 capital spending for pumping capacity, water treatment, and structural reinforcement. Management reported no damage so far but is preparing for heavier rainfall during the next rainy season.

Presentation

[Operator]

Good day, and welcome to the Compañía de Minas Buenaventura second quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Sebastián Valencia. Please go ahead.

[Sebastián Valencia, Head of Investor Relations at Compañía de Minas Buenaventura]

Good morning, everyone, and thank you for joining us today to discuss our second quarter 2026 results. Today's discussion will be led by Mr. Leandro García, Chief Executive Officer. Also joining our call today and available for your questions are Mr. Daniel Domínguez, Chief Financial Officer, Mr. Juan Carlos Ortiz, Vice President of Operations, Mr. Aldo Massa, Vice President of Business Development and Commercial, Mr. Renzo Macher, Vice President of Projects, Mr. Juan Carlos Salazar, Vice President of Geology and Explorations, Mr. José Malca, Vice President of Sustainability, Mr. Roque Benavides, Chairman, and Mr. Raúl Benavides, Director. Before I hand the call over, please let me touch first on a few items. On Buenaventura's website, you will find our press release that was posted yesterday after market close. Please note that today's remarks include forward-looking statements that are based on management current views and assumptions.

[Sebastián Valencia, Head of Investor Relations at Compañía de Minas Buenaventura]

While management believes that assumptions, expectations, and projections are reasonable in view of current available information, we are cautioned not to place under reliance on these forward-looking statements. I encourage you to read the full disclosure concerning forward-looking statements within the earnings results press release issued on July 30, 2026. Let me now turn the call to Mr. Leandro García.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Thank you, Sebastián. Good morning to all, and thank you for joining us today to discuss the quarterly results of the company. On slide two is our cautionary statement, important information that I encourage you to read. Today, we will talk about our second quarter 2026 performance, our main achievements, and our priorities for the future. After the presentation, we will be able for Q&A session where our team will be happy to answer your questions. Next slide. I would like to begin with a brief overview of our operational performance during the second quarter of 2026. Consolidated gold production increased 12% year-over-year to 30,500 ounces, primarily driven by the continued ramp-up of San Gabriel.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Consolidated silver production increased 2% year-over-year to 3.6 million ounces, mainly supported by higher production at Yumpag, while copper production increased 2% year-over-year to 13,500 tons, reflecting a stable production at El Brocal. San Gabriel produced 2,800 ounces of gold during the quarter and began commercialization in the second quarter of 2026, marking its first contribution to Buenaventura's sales volumes. More details on the project's ramp-up and key developments are presented in the following slides. In addition, after quarter end, we received approval to increase Yumpag's mining throughput from 1,000 tons per day to 1,200 tons per day, an important milestone toward unlocking additional production capacity. Our capital allocation remains focused on projects and assets that enhance productivity, support growth, and create long-term value for shareholders.

[Leandro García, CEO at Compañía de Minas Buenaventura]

CapEx totaled approximately $98 million, primarily allocated to San Gabriel, El Brocal, Uchucchacua, Yumpag, supporting productivity, operational reliability, and future value creation. Moving on the next slide, I would like to summarize our second quarter financial performance. Our operational performance, combined with the favorable metal prices, translated into another quarter of robust financial results. Total revenues increased 43% year-over-year to $529 million. EBITDA from direct operations reached $277 million, increasing 113% compared to the same period last year. Importantly, EBITDA margins expand from 35%-52%. Net income reached $261 million, representing a 165% increase year-over-year and reflecting a stronger operational performance across our core assets. Our balance sheet remains a key strength of the company. We closed the quarter with $759 million in cash and $692 million in total debt, maintaining a net cash position of approximately $67 million.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Net debt-to-EBITDA remained at negative 0.05x, underscoring the financial flexibility of the company. At Huanza, our power generation subsidiary, we reduced the outstanding balance of the financial lease from $63 million-$50 million, with the remaining balance to be amortized through 2031. Year-to-date, dividends from Cerro Verde reached $274 million, including $118 million received in July. Moving on the cost applicable to sales strength, starting with copper CAS, performance remained stable year-over-year, mainly at El Brocal. Silver CAS increased compared to the same period last year, primarily reflecting higher commercial deductions associated with price-based escalators at Uchucchacua and Yumpag. Finally, gold CAS was impacted by the commencement of commercial sales of San Gabriel. During the quarter, the operation recorded cost applicable to sales for the first time as it continued progressing through its ramp-up phase.

[Leandro García, CEO at Compañía de Minas Buenaventura]

As production and sales volumes remain below expected steady state levels, current unit costs are not yet representative of the operation's long-term cost profile. Next slide, please. As mentioned earlier, San Gabriel continued progressing through its ramp-up phase during the second quarter. While throughput remained constrained by tailings management and filtration challenges, the operation continued advancing across all key areas of development, and we remain focused on achieving a stable and sustainable ramp-up. At the mine, we have completed the primary ventilation infrastructure and continue advancing the development of the full mining fleet, which will support future production growth. At the same time, we expect to begin undercut mining below cemented fill during the third quarter, representing another important operational milestone. Within the processing plant, our priority remains stabilizing throughput and improving operating performance.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Current efforts are focused on moisture control, filtration performance, and metallurgical optimization, with recoveries expected to continue improving during the second half of the year. On the tailings site, we expect filtered tailings compaction to begin during the third quarter, while ongoing expansion works are designed to progressively support higher throughputs level as the operation advances toward steady state conditions. On the next slide, we highlight our strong free cash flow generation, the second quarter of 2026. Solid operation performance supported by dividends received allowed us to close the quarter with a cash position of $759 million. The chart also reflects the dividend payment we made in May. Importantly, this balance does not yet reflect the $118 million dividend received from Cerro Verde in July, following the quarter end. Before opening the line for questions, I would like to leave you with four key messages.

[Leandro García, CEO at Compañía de Minas Buenaventura]

First, San Gabriel continued advancing through its ramp-up phase during the quarter. The operation began recording commercial sales in the second quarter of 2026, and is now starting to contribute to Buenaventura's results. While we continue working through the challenges inherent to any ramp-up process, our focus remains on achieving stable and efficient operations that will become an increasingly important contributor to the company's growth. Second, we continue executing our growth strategy across the portfolio. A key milestone was achieved at Yumpag, where we received approval to increase the mining rate from 1,000 tons per day to 1,200 tons per day. This represents the first step toward unlocking the operation's full potential, while we continue advancing the next phase of expansion. Third, explorations remains part of our DNA.

[Leandro García, CEO at Compañía de Minas Buenaventura]

As we continue unlocking growth opportunity across our portfolio, we remain committed to extend our Life of Mine and supporting the long-term sustainability of our production growth. We believe that growing production and replenishing resources must go hand-in-hand to ensure long-term value creation. Finally, the combination of the strong operating performance, disciplined capital allocation, and favorable commodity prices environment continues to strengthen our cash generation and balance sheet. This financial strength give us the flexibility to invest in our growth portfolio, execute our long-term strategy, and continue delivering value to shareholders through our dividend policy. Thank you for your continued interest and support. We appreciate your time today and look forward to answering your questions. Operator, please go wide.

[Operator]

We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Tanya Jakusconek from Scotiabank. Please go ahead.

[Tanya Jakusconek, Analyst at Scotiabank]

Oh, great. Good morning, everybody. Thank you for taking my question. I have four questions, if I could. I'm going to start with San Gabriel first. Maybe someone can just provide me some insights into how the mining and the processing are doing relative to your block model now that you've gone commercial, and also in the underground and in the processing facility, what do you still need to do to optimize? I saw the recoveries need to be optimized, anything else to get you to that steady state?

[Leandro García, CEO at Compañía de Minas Buenaventura]

Thank you, Tanya, for your question. As I told you before, we are very focused on San Gabriel. We have a plan to deliver what was our guideline for 2026 and ending the ramp up in the midst of 2027. Maybe Juan Carlos can give you more color in this topic, please. Please, Juan Carlos.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Sure, Leandro. Tanya, regarding the mine, the underground mine, we're feeling comfortable with the progress that we have in the new mining method, the underhand cut-and-fill. We are already in the first undercut. We need the original mining layer with a cemented backfill. We are doing okay according to the plan. We are ramping up production. We are opening new phases, now we are according to the plan. The underground mine is moving ahead. It's according to our plans. We will have the fourth fleet for underground mining for Buenaventura by the end of August, and two additional fleets for future developments underground with a contractor by November. According to the plan. The underground mine is moving along. Regarding the processing plant, we have two lines of work. One is related to the increase of throughput, the second one is increasing recovery.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Regarding the throughput, we are facing some problems with the press filters. Remember that we are using dry stacking for tailing disposition, we need to filter all the tailings. We are having some problems with the structure basis of the foundation of the filters. Remember, they are high-pressure filters, when they are loaded with full pressure, they start to generate a back movement in the structures. According to the tolerance that we have to have in these structures, we are on top of that, beyond that. We need to do further works to reinforce the structure and put some additional steel and reinforce with new structures, additional structure on top of what we have in the building. We have three filters, we need to do one by one to reinforce the filters.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Once these tasks are completed, we are on track to reach full capacity from that processing plant. Regarding the recoveries, coal recoveries, it's a very complex ore. We are following all the parameters that we do have. We need to fine-tune our setpoints for all of them, and put and use additional reagents. We have some preg-robbing coal in the ore, generating a lot of trouble. We need to add additional reagents, new reagents that we don't have in Peru. We're bringing these reagents in August to start testing it at industrial scale. We already tested them at a lab scale. They are giving good results. They are part of the solution. Probably in August, we will start finding the right dosage of these reagents for reducing the impact of the preg-robbing that we already faced in the second quarter.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

With that, we expect to reach about 70% ore recovery by the end of 2026. The following actions to go beyond 70% recovery, ore recovery, probably are linked with an additional circuit for flotation. Probably, we need to remove all the coal, all the organic matter that we have in the ore. Not only use the reagent that I mentioned at the beginning of my comments, but probably we need to remove that coal in order to avoid further complications in the process. The flotation circuit is being designed. Probably, we need to get all the permits and all the designs ready by the end of the year and make the implementation of this new flotation circuit for coal and partial sulfides, refractory sulfides, by the end of 2027. There are two milestones. The first one, reaching 70% ore recovery by the end of 2026.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Beyond that 70%, close to the 85% that we have in our budget, probably by the end of 2027.

[Tanya Jakusconek, Analyst at Scotiabank]

Okay. Just so I understand, the issue that you're having with the recoveries has got to do with organic matter that's sitting with the gold?

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Yes, it's organic matter. There is a small fraction of the gold that is into sulfides. It's becoming a little bit harder to extract that gold out of the sulfide. We believe the best option is to do a complete flotation, not only for the organic matter-

[Tanya Jakusconek, Analyst at Scotiabank]

It's two things

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

In addition to that, the flotation of the sulfide as well.

[Tanya Jakusconek, Analyst at Scotiabank]

Okay. It's two things. Okay. It's both the sulfides and organic matter. Okay, thank you for that one. The second question I have is just on the costs overall. Besides the inflationary pressures you are seeing from higher fuel prices and maybe royalties paid, are you seeing any other inflation in terms of labor or any other consumables or any issues with the supply chain in what you need for your cost?

[Daniel Domínguez, CFO at Compañía de Minas Buenaventura]

No, Tanya, this is Daniel.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Yeah.

[Daniel Domínguez, CFO at Compañía de Minas Buenaventura]

We don't see, or we don't foresee, at this point in time, any major inflation effects. As we were speaking last quarter, the impact of higher diesel prices had an effect of around 5% in our OpEx. Probably having diesel at the same levels as the last quarter, the impact could be around 5%-7%. Also, as you mentioned, the workers' profit sharing is also increasing slightly our costs, but nothing else. We don't have energy issues. Other reagents or consumables are keeping the same price for Buenaventura, at least.

[Tanya Jakusconek, Analyst at Scotiabank]

Okay, Daniel, thank you for that. That's good to see. I guess when I have you on, what about expectations for dividends from Cerro Verde for 2026 and longer term? We're doing above the guidance range you provided. What would you guide for us for Cerro Verde dividends?

[Daniel Domínguez, CFO at Compañía de Minas Buenaventura]

Well, for the first half of this year, Cerro Verde has already distributed close to $160 million. We have already reported another $120 million. This is for Buenaventura's stakes. We have already reported $120 million of dividends that will be or have been already paid in July. This adds up to around $274 million. We expect between $50 million-$100 million in addition to this by the fourth quarter. In total, we should be receiving between $350 million-$380 million of total dividends for this year.

[Tanya Jakusconek, Analyst at Scotiabank]

Daniel, should I be thinking similar levels for next year?

[Daniel Domínguez, CFO at Compañía de Minas Buenaventura]

Probably-

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Depending on the price.

[Daniel Domínguez, CFO at Compañía de Minas Buenaventura]

Yes, depending on the price, could be $50 million or $80 million less. Remember that the dividend that we received in January was a dividend that came from the previous year.

[Tanya Jakusconek, Analyst at Scotiabank]

Maybe $300 million.

[Daniel Domínguez, CFO at Compañía de Minas Buenaventura]

Yes. Which is higher than what we have been receiving.

[Tanya Jakusconek, Analyst at Scotiabank]

Oh, absolutely. That's great. Thank you so much for taking my questions.

[Daniel Domínguez, CFO at Compañía de Minas Buenaventura]

Thank you.

[Operator]

Our next question comes from Carlos de Alba with Morgan Stanley. Please go ahead.

[Carlos de Alba, Analyst at Morgan Stanley]

Yeah, thank you. Good morning, everyone. Good to be here. Just in terms of all the initiatives that you are pursuing in San Gabriel to address the challenges, what are the CapEx and OpEx implications? How much CapEx are you investing in those initiatives, and is cost going up? If you can, maybe just remind us what are the CapEx expectations for this year, maybe next year. What is the cost looking like, the OpEx for San Gabriel once you stabilize the operation?

[Leandro García, CEO at Compañía de Minas Buenaventura]

Carlos, the total CapEx we expect to spend this year is around $500 million. We already have expended in the first half around $200 and $220. All the investment we have to do in San Gabriel and El Brocal and all our flagships are according to what we expected in the guidance, and mainly are related also in opportunities that we have found, taking advantage of the prices, and we have opportunities to do the CapEx. For next year, we can go forward a little bit. Another type of CapEx that we are identifying is how we are going to prepare for the El Niño phenomenon.

[Leandro García, CEO at Compañía de Minas Buenaventura]

That will be the guidance for this year. In terms of especially the CapEx for San Gabriel, the rest of the year is around $60 million, around that number. I don't know, Juan Carlos, if you want to give us some more ideas.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Yes, Leandro. In the case of San Gabriel, all the comments that I made regarding the increase in recovery for 2026 are not material in regard of OpEx and CapEx, are more on the fine-tuning of the existing infrastructure and using additional reagents that replace other reagents that we have been used before. In the case of increasing throughput, as I mentioned, we need to reinforce the structures that hold the three filters, press filter for tailings. We are working on the engineering for this reinforcement. Top of my head, I would say something between $5 million to $10 million. Probably we need to do the engineering and probably will be in the lower range. It's something that we need to still work on, to have something that will really solve the problem.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

At the same time, it's fast to be implemented and with the existing constraint, because the filters are already mounted on their bases.

[Carlos de Alba, Analyst at Morgan Stanley]

Juan Carlos, it's basically a small impact on CapEx, but no real impact on OpEx.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

We probably follow our budget for OpEx for the year. Of course, the impact would be a lower throughput than expected. That will impact the cost by ton, but not the overall amount of dollars that we spend along the year.

[Carlos de Alba, Analyst at Morgan Stanley]

What will be the cost of adding the additional flotation circuit?

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

We haven't finished engineering so far. We expect it to be in the order of $15 million, probably for next year.

[Carlos de Alba, Analyst at Morgan Stanley]

Sorry. Five zero or one five?

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

One five.

[Carlos de Alba, Analyst at Morgan Stanley]

That does not increase the cost significantly, the OpEx cost, the additional circuit there?

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

No, maybe $1 or $2 per ton out of 130. It's not material, maybe 1% increase on cost to capture 10% more on recovery.

[Carlos de Alba, Analyst at Morgan Stanley]

Right. Okay. Yeah. You will be getting closer to 80% of recovery. Okay. All right. On Cerro Verde, great to see the CapEx coming through. Just on production, what is the expected copper production this year and next in Cerro Verde?

[Leandro García, CEO at Compañía de Minas Buenaventura]

It has not changed.

[Leandro García, CEO at Compañía de Minas Buenaventura]

It's the same guidance. It's a little lower than the prior year, it has not been any change in the guidance.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

If you allow me, Leandro.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Yes.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

The production of the six months of 2026 is about 187,000 tons for fine copper, 187. It probably is a very steady operation. Probably, we can expect the same production for the remaining six months of 2026. It's going to be around 370,000-380,000 tons of copper for 2026.

[Carlos de Alba, Analyst at Morgan Stanley]

Okay. Thank you. Will the percentage of the Cerro Verde production that you are getting change in the coming quarters?

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

No. We have a contract of 40,000 tons of concentrate.

[Carlos de Alba, Analyst at Morgan Stanley]

Okay. All right. On Julcani, there was a big shift in the production mix between gold and silver. What is the outlook for the remainder of the year? I don't know if you have a view on 2027.

[Leandro García, CEO at Compañía de Minas Buenaventura]

After the more production we have, we have change, where we are concentrating in another area of the production. That's the reason why the production of silver lower a little bit, from our guidance. The gold increased for the new areas we are working. As you know, we are in a process, that in this quarter, we expect to have some news of if we have arrived a final decision to sell Julcani. We have the plan until 2026. Once we end this process, we will see, we can give you the guideline for the 2027 year.

[Carlos de Alba, Analyst at Morgan Stanley]

Okay. All right. For the second half of 2026, this mix of gold and silver should remain stable or the mining plan suggests something different?

[Leandro García, CEO at Compañía de Minas Buenaventura]

No. We continue in the same areas. Yes.

[Carlos de Alba, Analyst at Morgan Stanley]

Finally, on Uchucchacua and Yumpag CAS, there was a significant increase, almost double. It is mentioned there that it was driven by price-based escalators. As silver has come down, how do you see CAS adjusting it back down? I ask just if you can share any color, given the importance of that operation and the big increase in CAS that we saw in the second quarter.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Well, as I understand, the base escalator, the price that we use at base for the contracts of this part of the year, the first six months, was around $35. For the new contracts, I think we are fixing that base in $50. I don't know. Aldo maybe can give you more information.

[Aldo Massa, VP of Business Development and Commercial at Compañía de Minas Buenaventura]

Yes, Leandro, you are right. For the first half of the year, we have this floor price of $35 per ounce. These contracts are going to end in August this year. From September to December, we're going to start with a new base of $50 per ounce.

[Carlos de Alba, Analyst at Morgan Stanley]

Okay. All right. Thank you.

[Operator]

Again, if you have a question, please press star then one. Our next question comes from César Pérez Novoa with BTG. Please go ahead.

[César Pérez Novoa, Analyst at BTG]

Yes. Good morning. My first question relates to Yumpag. You received the approval to increase your throughput rates by 20%. My question is, how is this expected to impact silver production going forward? Could you actually quantify this potential increase and discuss whether this scale-up might improve the cost structure of this asset?

[Leandro García, CEO at Compañía de Minas Buenaventura]

Yes. Taking into consideration that we have received it at the half of the year, we are now ready to begin production at 1,200 tons per day. We expect a 10% increase of what we were thinking at the beginning of the year.

[César Pérez Novoa, Analyst at BTG]

Okay. Is this going to have, Leandro, any impact or improvement on the cost structure for this mine?

[Leandro García, CEO at Compañía de Minas Buenaventura]

Of course. Yeah, sure. Juan Carlos, please.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Yes. It's going to have a positive impact. We dilute our fixed cost by 20%. In addition to that, by the fourth quarter of this year, we are connecting the Yumpag operation with the national electrical grid. We replace all the power generated by cheaper electricity. The outcome by the end of the year is going to be a double effect. The effect of larger throughput and the replacement of energy coming from diesel generators by electricity coming from the national grid. It's going to be a cost reduction in the order of, if I'm not wrong, 15%-17% lower than the operating cost of the first half of the year.

[César Pérez Novoa, Analyst at BTG]

All right. Thank you very much. Can you also assess the current progress on the Trapiche copper greenfield? Given how high copper prices are, the cash flow that you're generating, the substantial dividends you're getting from Cerro Verde, is there any scope to accelerate the development timeline?

[Leandro García, CEO at Compañía de Minas Buenaventura]

Thank you, César, for this question. Here with us is Renzo Macher, he can give you an idea of what we are going on in Trapiche. Please, Renzo, go ahead.

[Renzo Macher, VP of Projects at Compañía de Minas Buenaventura]

Yes, thanks. Thanks for the question. Yes. Actually, due to these increasing copper prices, the opportunity of exploiting the primaries, which are currently open underneath the secondary sulfides, it's getting closer to our realities. We are going to be spending the next year and a half in understanding if it's a business. Meanwhile, we're going to keep reducing the current risk of the project, which is the access road, the power line, the licenses, and try to get a deeper dip into the acid consumption.

[César Pérez Novoa, Analyst at BTG]

All right. This is my last question. Has El Niño had any operational impact to date, or do you have any concerns about future effects? If so, which mining areas, operations, or logistics do you see are at most risk, if any, of course?

[Leandro García, CEO at Compañía de Minas Buenaventura]

Yes, César, thank you for your question again. We have identified some risk in our risk management meetings. We have See all our main operations and what will it affect. We are part of the, a little increase in CapEx is related, and is added to what we thought in the beginning of the year we are going to spend in that. We have add additional CapEx around $12 million. Maybe Juan Carlos can give you the exact idea on what are the activities we are making and what we are preventing.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

Sure, Leandro. Since the end of April, we have the early alert of El Niño, a strong El Niño group. We start treating our safety committees for preventing any potential damage from this impact, heavy rains. We already put a committee in each of the mine. Each of the mine have a map, all the potential risk that we have. We authorize an increase in CapEx of about $12 million to be spent in the rest of the year 2026, in order to be prepared for larger rainfall. Increase pumping capacity, power for the pumps, water treatment facilities, reinforcement of certain critical structures like water dams or reservoirs. We are working on that regard. We have a very strong technical committee working on that regard. So far, we haven't had any damage, like probably you heard the news about the damage for heavy rainfall in Chile.

[Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura]

We don't have that in Peru, but we are preparing for probably a strong rainfall in the next rainy season starting in December 2026.

[César Pérez Novoa, Analyst at BTG]

All right. That's fairly detailed. Thank you very much, all of you. Thank you.

[Operator]

This concludes the audio portion of the Q&A session. I'd like to turn it over to Sebastián Valencia for webcast questions.

[Sebastián Valencia, Head of Investor Relations at Compañía de Minas Buenaventura]

Thank you, operator. The last question comes from Jurak Dominik from La Opinión Aval. Given the recent price drop in gold, any risk that production in Orcopampa, Tambomayo could be reviewed?

[Leandro García, CEO at Compañía de Minas Buenaventura]

Well, no. I think that my first answer is no. We permanently are reviewing the value that we add with any ounce we produce, but we are building a plan for Orcopampa, Tambomayo for the following years. We continue in that trend.

[Sebastián Valencia, Head of Investor Relations at Compañía de Minas Buenaventura]

Thank you, Leandro. At this time, there are no further questions. I would like to turn the call over to Leandro for final remarks.

[Leandro García, CEO at Compañía de Minas Buenaventura]

Okay. Thank you, Sebastián. Before we conclude today's conference call, I would like to thank you for the time and effort dedicating to joining us today. Your participation and input are greatly appreciated. Thank you again. Have a wonderful day.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Analysts

• Sebastián Valencia, Head of Investor Relations at Compañía de Minas Buenaventura
• Leandro García, CEO at Compañía de Minas Buenaventura
• Tanya Jakusconek, Analyst at Scotiabank
• Juan Carlos Ortiz, VP of Operations at Compañía de Minas Buenaventura
• Daniel Domínguez, CFO at Compañía de Minas Buenaventura
• Carlos de Alba, Analyst at Morgan Stanley
• Aldo Massa, VP of Business Development and Commercial at Compañía de Minas Buenaventura
• César Pérez Novoa, Analyst at BTG
• Renzo Macher, VP of Projects at Compañía de Minas Buenaventura