Buenaventura Mining Q2 Earnings Call Highlights

Buenaventura Mining NYSE: BVN reported higher second-quarter 2026 production, revenue and earnings, supported by the ramp-up of its San Gabriel gold project, increased output at Yumpag and favorable metal prices. Chief Executive Officer Leandro García said consolidated gold production rose 12% year over year to 30,500 ounces in the quarter. Silver production increased 2% to 3.6 million ounces, primarily reflecting higher production at Yumpag, while copper production increased 2% to 13,500 tons as El Brocal maintained stable output. San Gabriel produced 2,800 ounces of gold during the quarter and began commercial sales, marking its first contribution to Buenaventura's sales volumes. The operation remains in its ramp-up phase, with management targeting a stable and sustainable operation by the middle of 2027. Total revenue increased 43% from a year earlier to $529 million. EBITDA from direct operations more than doubled, rising 113% to $277 million, while the EBITDA margin expanded to 52% from 35% in the prior-year period. Net income reached $261 million, up 165% year over year. García attributed the results to stronger operational performance across core assets and the favorable commodity-price environment. The company ended the quarter with $759 million in cash and $692 million in total debt, resulting in a net cash position of about $67 million. Net debt to EBITDA was negative 0.05 times. Buenaventura also continued to receive dividends from its Cerro Verde investment. García said year-to-date dividends reached $274 million, including $118 million received in July after the end of the second quarter. Chief Financial Officer Daniel Domínguez said the company expects an additional $50 million to $100 million in dividends by the fourth quarter, implying total 2026 Cerro Verde dividends of $350 million to $380 million. Management said San Gabriel’s underground mine is progressing in line with its plan, including the implementation of an undercut-and-fill mining method. The company expects to have its fourth underground mining fleet in place by the end of August and two additional contractor-operated fleets by November. However, processing throughput has been constrained by tailings filtration issues. Juan Carlos, Buenaventura’s vice president of operations, said the high-pressure filter foundations have experienced structural movement beyond required tolerances. The company plans to reinforce the structures supporting its three press filters, with estimated spending of roughly $5 million to $10 million. The company is also working to improve gold recoveries, which have been affected by organic matter and sulfides in the ore. Management plans to begin industrial-scale testing of additional reagents in A...