Buenaventura Mining NYSE: BVN executives highlighted a year of higher earnings and a near-complete buildout of the San Gabriel gold project during the company’s fourth-quarter 2025 earnings call, while also detailing a higher-than-expected capital spending outlook tied mainly to remaining work at San Gabriel and ramp-up requirements.
2025 production and financial results
Chief Executive Officer Leandro García said full-year 2025 copper production totaled 52.4 thousand tons, down 8% year over year. He attributed the decline mainly to processing stockpiles with higher precious-metal content at El Brocal following a sharp increase in precious metals.
Silver production for 2025 was 15.6 million ounces, up 1% from 15.5 million ounces in the prior year and “in line with our annual expectations,” García said. Gold production was 121,000 ounces, down 18% year over year, primarily due to lower output at Orcopampa and Tambomayo, consistent with the planned mining sequence for 2025.
On the financial side, García reported EBITDA from direct operations of $112 million for 2025 and said that represented an 88% increase compared with 2024. He also said net income for the year was $830 million, compared with $460 million in 2024, and noted that 2024 included $157.3 million from the sale of Chaupiloma.
Buenaventura ended 2025 with $530 million in cash and $710 million in total debt, which management said implied a leverage ratio of 0.22x. García also said the company received $98 million in dividends after the quarter ended (on Jan. 29, 2026) from its stake in Cerro Verde.
San Gabriel: first gold bar, permits, and ramp-up changes
Management emphasized progress at San Gabriel, saying the project reached 99% overall completion by the fourth quarter of 2025. García said fourth-quarter San Gabriel capital expenditures were $153 million, primarily allocated to completing processing plant construction.
García said the company produced its “first gold bar” at San Gabriel in December and received an initial operating permit. He added that a water license was expected “in the coming weeks,” and later in the Q&A executives said the authority had already visited the site and the company was waiting for the permit to be signed, expecting it “in the following couple of weeks.”
For 2026, Buenaventura guided to San Gabriel production of 48,000 to 55,000 gold ounces. García said additional milestones remain before the operation reaches full potential, including expansion of tailings drying areas and ventilation upgrades. He said the company expects those milestones to enable a stable throughput of 2,000 tons per day in the third quarter of 2026, with continued ramp-up thereafter.
Vice President of Operations Juan Carlos Ortiz said the company expects to finalize remaining construction items and secure final operational permits by the second quarter of 2026. Ortiz also described changes to the mine plan after an underground incident in late December, saying the ventilation system must be redesigned to “triple the amount of air” pushed into underground workings to dilute gases. He said this reduces mining flexibility: instead of accessing high-grade areas across six levels as previously expected, the mine will be restricted to three levels in 2026, which lowers expected head grades even as throughput remains the same.
Capital spending outlook and what changed
Questions from analysts focused on Buenaventura’s higher capital spending expectations versus prior commentary. García said the main driver was San Gabriel, with remaining work related to earthworks and continued ramp-up activity.
Vice President of Projects Renzo Macher said additional needs were being identified during the rainy season as water systems and roads are tested. He cited minor slope issues to be corrected, channel work to redirect water, and continued grouting work at a water dam. He added the company is also closing some contracts for additional quantities and materials for the plant, which he said is already finished.
For spending guidance, García said total capital expenditures are expected to be $385 million to $415 million. He said sustaining capital is expected to be $200 million to $220 million, focused mainly on mine development, tailings and ventilation work at El Brocal, Uchucchacua, and Yumpag, as well as readiness and wrap-up work at San Gabriel. Growth capital is expected to be $185 million to $195 million, focused mainly on completing San Gabriel and advancing Trapiche and Algarrobo.
In response to a question on the growth capital breakdown, Macher said roughly $160 million of the $185 million to $195 million would be spent at San Gabriel, including closing existing contracts (about half) and additional earthworks (the remainder). He said ventilation spending was more related to sustaining capital.
Costs, pricing impacts, and 2026 outlook assumptions
Management also discussed cost trends. García said copper cash costs rose in the fourth quarter due to higher personnel costs linked to improved profitability, increased cement consumption, and foreign exchange impacts at El Brocal. For silver, he said cash costs rose due to higher commercial deductions at Yumpag, “non-payable value,” and escalators, alongside increased throughput that partially offset lower grades at Uchucchacua and Julcani. Gold cash costs rose due to lower throughput at Orcopampa and Tambomayo, which reduced scale efficiency.
Vice President of Business Development and Commercial Aldo Masa provided more detail on silver commercial deductions. He said when selling silver concentrates with less than 2,500 grams, payables are typically 60% to 70%, while concentrates above 2,500 grams can be 90% to 95%. He said fourth-quarter production included more lower-grade concentrate, reducing payables. He also said contract “escalator” clauses applied due to a sharp increase in silver prices, increasing deductions as prices moved above escalator thresholds.
Chief Financial Officer Daniel Domínguez provided figures for 2026 expenses and an illustrative revenue and EBITDA range based on commodity-price assumptions cited during the call. Domínguez said 2026 G&A should be about $60 million to $70 million, similar to 2025, citing worker profit sharing and a stronger Peruvian currency as drivers versus prior years. He said exploration at operating sites is expected to be $60 million to $70 million, and an additional $20 million to $30 million is planned for non-operating greenfield projects, for a total exploration budget of $90 million to $100 million, up from about $70 million in prior spending.
Domínguez also said that, assuming gold at $4,500, silver at $70, and copper at $12,000, the company would expect revenues of about $1.8 billion to $2.0 billion, including close to $100 million of sales from concentrate purchased from Cerro Verde/Freeport, and EBITDA of about $800 million to $1.0 billion.
Dividends and asset review
Buenaventura’s board approved a dividend of $0.9904 per share, and García said total dividends declared over the past 12 months reached $1.135 per ADS. Domínguez said the dividend proposal still requires shareholder approval and that payment is expected in April (second quarter of 2026). He also outlined the timing of expected Cerro Verde dividends, saying the company received $100 million in January and expects $50 million in July and another $50 million in the fourth quarter.
Domínguez said the board decided to pay 40% of 2025 net income as dividends this time, while noting the company’s stated dividend policy is not less than 20% of net income. He said the company would continue evaluating payout levels depending on commodity prices and the capital spending program.
Executives also addressed the status of mines under strategic review referenced at the company’s investor day—Orcopampa, Tambomayo, and Julcani. García said the company has been analyzing the feasibility of selling those units, but that rising gold and silver prices have led management to re-evaluate the decision. He said the company is close to a final decision and is open to selling assets separately or as a group, though he said the “best alternative” would be selling them separately if a sale proceeds. Masa added the company had not made a decision yet and was continuing analysis.
On Coimolache sulfides, management said the study is being finalized and will be discussed internally with partners, with an update to the market expected in the first half of the year.
About Buenaventura Mining NYSE: BVN
Compañía de Minas Buenaventura SAA. 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.
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