Buenaventura Mining Q3 Earnings Call Highlights

Key Points

• Strong third-quarter financial performance: Revenue rose 27% year over year to $545 million, while EBITDA increased 34% to $261 million and net income climbed 50% to $268 million. Buenaventura ended the quarter with $1 billion in cash, $242 million in free cash flow and approved a $0.5508-per-share interim dividend.
• Mixed production trends: Copper output increased 7% to 13,600 metric tons, supported by El Brocal, but gold and silver production declined 6% and 21%, respectively. The company is targeting higher El Brocal throughput while managing elevated costs tied to owner-operated equipment, maintenance and tailings handling.
• San Gabriel ramp-up remains constrained: Filtered-tailings drying and compaction capacity—not the processing plant—continues to limit the project. Buenaventura expects repairs to its press filters by April or May 2027 and aims to reach nameplate capacity by the end of 2028, with annual gold production projected at 110,000–120,000 ounces.

Buenaventura Mining NYSE: BVN reported higher third-quarter revenue, EBITDA and net income, supported by stronger realized metal prices and increased copper sales volumes from its El Brocal operation, while management said it continued to address processing and tailings constraints at its San Gabriel project.

Revenue for the third quarter of 2026 rose 27% year over year to $545 million, Chief Executive Officer Leandro García said on the company’s earnings call. EBITDA from direct operations increased 34% to $261 million, producing an EBITDA margin of 48%, while net income climbed 50% to $268 million.

The company ended September with about $1 billion in cash and a net cash position of $307 million. Its leverage ratio improved to negative 0.25x, García said. Buenaventura generated $242 million in free cash flow during the quarter, aided by operating performance and $126 million in dividends received.

The board approved an interim dividend of $0.5508 per share or American depositary share, equivalent to 20% of net income for the first nine months of 2026, García said. The annual dividend will be proposed at the board’s next meeting.

Production trends and operating costs

Consolidated gold production was approximately 29,000 ounces, down 6% from the prior-year quarter. Consolidated silver output fell 21% to 3.4 million ounces, primarily because of lower planned silver grades at Yumpag. Copper production rose 7% to 13,600 metric tons, supported by higher-grade throughput at El Brocal.

At Uchucchacua and Yumpag, silver cash costs reached $11 per ounce. García attributed the year-over-year increase to the continued use of a more selective mining method at Yumpag, additional ground-support requirements, the transition to an owner-operated fleet and lower planned silver grades. Higher byproduct grades and lower commercial deductions partly offset those factors.

El Brocal’s copper cash cost was $5,474 per metric ton, reflecting increased cement consumption for tailings management, scheduled maintenance and the shift toward owner-operated equipment. The operation reached a processing rate of 13,500 tons per day by the end of the quarter.

Management said it is working to expand El Brocal throughput from about 13,000 tons per day to 17,000 tons per day, though García said copper production in fine-metal terms would remain “almost the same” over the longer term. Coimolache’s cash cost declined to $1,103 per ounce, supported by higher payable gold production and stronger byproduct credits.

San Gabriel ramp-up remains constrained by tailings handling

San Gabriel continued to advance during the quarter, with mining stabilizing at 1,700 tons per day and generating an ore stockpile of roughly 100,000 metric tons. The company also began undercut mining below cemented fill.

Juan Carlos Ortiz, vice president of operations, said the processing plant was running at an average rate of 1,400 tons per day in October and was expected to reach about 1,700 tons per day in November and December. He said the processing plant itself is not the primary constraint; rather, drying and compaction capacity for filtered tailings remains the bottleneck.

Gold recovery at San Gabriel was expected to be about 60% in October and to improve to roughly 65% to 70% by December, Ortiz said. The company’s ultimate target is approximately 85% recovery, but achieving that level will require additional circuits in the processing flow sheet and is expected to take until 2028.

Buenaventura expects to process about 600,000 tons in 2027 and approximately 800,000 tons in 2028. Ortiz said the operation is expected to reach its nameplate capacity of roughly 1 million tons per year, or about 3,000 tons per day, by the end of 2028. At steady state, management expects annual gold production of about 110,000 to 120,000 ounces and operating costs near $180 per ton.

The first phase of filtration-system reinforcement was completed during the third quarter. Ortiz said repairs on two of three press filters began at the end of September, and all three filters, including steel and concrete supports, are expected to be repaired and ready by April or May 2027 after Peru’s rainy season.

Owner-operated fleet transition and project pipeline

Buenaventura is expanding owner-operated mining across several assets. At Yumpag, mining and development are now fully handled by the company, and about 75% of the required equipment has been purchased. Ortiz said about $6 million of additional underground equipment is scheduled for delivery in the first quarter of 2027.

At Uchucchacua, Buenaventura conducts about 75% of mining and around half of development work. At El Brocal, the company expects to operate 100% of underground production by the second quarter of 2027, while contractors will continue to handle development in more extended areas. San Gabriel currently has all production and about 75% of development performed by Buenaventura.

Management estimated equipment-related capital spending for the owner-operated transition at approximately $25 million to $30 million next year.

For the Trapiche project, García said Buenaventura is open to evaluating a partner to help de-risk the investment. Renzo Macher, vice president of projects, said the company resumed about 20,000 meters of drilling, split between exploration of primary material and new samples for bioleaching work intended to reduce acid consumption. The company is also advancing engineering and permits for an access road and power line.

Other operations and Cerro Verde dividends

Ortiz said Orcopampa has an expected operating life of about two to three more years based on known structures, while the company continues underground and nearby exploration. At Tambomayo, management is focusing on district exploration and expects to review its outlook for continued mining in the second quarter of 2027.

Chief Financial Officer Daniel Domínguez said Cerro Verde had distributed $270 million to Buenaventura so far in 2026, with an additional $50 million to $70 million dividend expected by year-end. For 2027, he said the company generally uses a more conservative planning assumption of about $200 million to $250 million, pending further discussion and updated information.

About Buenaventura Mining (NYSE:BVN)

Compañía de Minas Buenaventura SAA., known as Buenaventura Mining, is a Peru-based mining company engaged in the exploration, development, construction, and operation of mineral projects. Its portfolio includes precious and base metals, with primary exposure to gold, silver, copper, lead, and zinc.

Founded in 1953, Buenaventura operates primarily in Peru. Its activities have included the Uchucchacua, Tambomayo, La Zanja, Coimolache, and El Brocal mining operations, as well as exploration and development projects across the country.

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