Compañía de Minas Buenaventura (BVN) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $140 million, more than double the $61 million reported in Q1 2024, with EBITDA from direct operations rising to $126 million and EBITDA margin improving to 41% from 38% year-over-year.

• Revenues increased 25% year-over-year to $307.7 million, driven by higher silver prices and volumes from Yumpag, offsetting declines in other metals.

• Cash position at quarter-end was $648 million, with total debt at $862 million and a net leverage ratio of 0.46x.

• San Gabriel project reached 79% completion, targeting first gold bar in Q4 2025, pending permit approvals, with major construction and commissioning milestones achieved.

• Yumpag mine contributed 2.2–2.3 million ounces of silver in Q1 2025, emerging as a key growth driver and generating robust cash flow.

Financial highlights

• Silver production in Q1 2025 was 3.7 million ounces, up 20% year-over-year, with Yumpag ramp-up driving growth.

• Gold production was 27,918–27,988 ounces, down 24% year-over-year, mainly due to lower output at Tambomayo and Orcopampa.

• Copper production declined 21% year-over-year to 12,198–12,200 MT, due to lower inventories at El Brocal.

• All-in Sustaining Costs (AISC) for Q1 2025 decreased by 83% year-over-year, driven by lower commercial deductions and higher by-product credits.

• Free cash flow increased, supported by $49 million in dividends from Cerro Verde and $100 million raised from bond issues in February 2025.

Outlook and guidance

• San Gabriel CapEx guidance for 2025 revised to $220 million–$250 million, with total project CapEx now expected at $720 million–$750 million.

• Full-year 2025 total CapEx expected to be $400 million–$420 million, up from previous guidance of $330 million–$355 million.

• Exploration expenses for 2025 projected at $40 million–$45 million for operating units and $20 million for non-operating areas.

• Administrative expenses for 2025 expected at $60 million–$65 million, higher due to increased workers' participation from higher profits.

• San Gabriel ramp-up phase to begin in Q3 2025, with first gold bar targeted for Q4 2025, subject to timely permit approvals.