Compañía de Minas Buenaventura (BVN) Q2 2024 earnings summary

Executive summary

• 2Q24 delivered strong operational and financial performance, with EBITDA from direct operations rising to $106.9M and net income reaching $74.4M, driven by robust results from Yumpag, Uchucchacua, and El Brocal, despite a 16-day plant suspension at El Brocal.

• Silver production surged to 3.9–4 million ounces, while copper and gold output declined due to operational and ore grade challenges.

• San Gabriel project reached 57% completion, with major construction milestones achieved and first gold bar targeted for the second half of 2025.

• Revenues increased 60% year-over-year in 2Q24 to $277.1M, supported by higher silver, lead, and zinc volumes and prices.

• Cerro Verde paid $29.4M in dividends in April and $58.7M to be received in August, with total 2024 dividends expected between $120M and $150M.

Financial highlights

• 2Q24 EBITDA reached $107M with a 39% margin; net income was $74M, reversing a prior year loss.

• Silver production rose to 3.9–4 million ounces; gold output fell 9% to 33.8 thousand ounces; copper production dropped 22% year-over-year.

• Cash position at quarter-end was $171.5–$172M; total debt at $682M; net debt at $520.5M.

• Free cash flow for 2Q24 was $31M; capex totaled $84M, with $70M–$69.7M allocated to San Gabriel.

• 2Q24 EPS was $0.28; gross margin reached $97.8M.

Outlook and guidance

• El Brocal aims to reach 11,000 TPD by year-end, with production recovery on track.

• San Gabriel project investment for 2024 set at $280M, with $200M planned for 2025; total project cost updated to $650M.

• Uchucchacua targets 1,500 TPD by year-end 2024; San Gabriel commissioning and first gold bar expected in 2H25.

• Cerro Verde dividends for 2024 expected between $120M and $150M.

• San Gabriel project construction at 50–57% completion, with major milestones in engineering, procurement, and construction.