Compañía de Minas Buenaventura (BVN) Q3 2024 earnings summary

Executive summary

• Q3 2024 EBITDA from direct operations rose to $132.4 million, up 149% year-over-year, driven by strong results at Yumpag and El Brocal.

• Net income reached $237 million in Q3 2024, including the $210 million Chaupiloma sale, versus a $28 million net loss in Q3 2023.

• Silver production surged to 4.4 million ounces, with Uchucchacua and Yumpag contributing 3.2 million ounces.

• Moody’s upgraded credit rating to B1 with a positive outlook, citing operational improvements and liquidity.

• Revenues rose 57% year-over-year in Q3 2024 to $331.1 million, driven by higher silver, lead, and zinc sales and prices.

Financial highlights

• Sale of Chaupiloma Royalty Company to Franco-Nevada for $210 million completed in Q3 2024.

• Q3 2024 CapEx totaled $98 million, with $77 million allocated to San Gabriel project.

• Cash position at quarter-end was $458 million; total debt stood at $675 million; net debt $224.7 million.

• Net debt/EBITDA ratio improved to 0.5x, the lowest in years.

• Free cash flow increased, supported by asset sale and operational cash flow.

Outlook and guidance

• San Gabriel project reached 65% completion, with commissioning planned for year-end 2024 and first ore in Q2 2025.

• 2025 EBITDA projected at $350–$380 million, assuming gold at $2,100/oz, silver at $27/oz, and copper at $9,000/ton.

• $150 million in dividends expected from Cerro Verde in 2025, with an additional $50–$60 million possible in Q4 2024.

• San Gabriel's annual EBITDA estimated at $90–$110 million, with cash costs of $1,300/oz and sustaining CapEx of $5–$7 million.

• Coimolache expected to return to profitability in Q3 2025 as fresh ore is placed on the leach pad.