Q2 2026 Compania de Minas Buenaventura SAA Earnings Call Transcript
Key Points
- Consolidated gold production increased 12% year-over-year to 30,500 ounces, driven by the ramp-up at San Gabriel.
- Total revenues surged 43% year-over-year to $529 million, with EBITDA from direct operations up 113% to $277 million.
- EBITDA margins expanded significantly from 35% to 52%, reflecting strong operational performance.
- Net income rose 165% year-over-year to $261 million, supported by favorable metal prices.
- The company maintains a strong balance sheet with a net cash position of $67 million and net debt-to-EBITDA of -0.05x.
- San Gabriel began commercial sales in Q2 2026, marking its first contribution to revenue.
- Approval received to increase Yumpag's mining throughput by 20% to 1,200 tonnes per day, with expected cost reductions of 15-17% from grid connection.
- Cerro Verde dividends totaled $274 million year-to-date, with expectations of $350-$380 million for the full year.
- Exploration remains a priority, with ongoing efforts to extend mine life and support long-term production growth.
- Proactive measures are being taken to mitigate El Nino risks, with $12 million in additional CapEx allocated.
- San Gabriel's ramp-up is constrained by tailings management and filtration challenges, limiting throughput.
- Gold recovery at San Gabriel is below expectations due to organic matter and refractory sulfides, with recovery expected to reach only 70% by end of 2026.
- Silver cash costs increased due to higher commercial deductions from price-based escalators at Uchucchacua and Yumpag.
- Gold cash costs at San Gabriel are elevated as production volumes remain below steady-state levels.
- San Gabriel requires additional CapEx of $5-$10 million for filter structure reinforcement and $15 million for a new flotation circuit.
- Julcani's production mix shifted, with lower silver output and potential sale of the asset, creating uncertainty.
- Higher diesel prices are expected to increase OpEx by 5-7%.
- El Nino poses a risk of heavy rains, potentially impacting operations and requiring additional preparedness spending.
- Cerro Verde's copper production is expected to be slightly lower than the prior year.
- The company faces ongoing challenges in optimizing San Gabriel's processing plant, including moisture control and metallurgical issues.
Good day, and welcome to the Compania de Minas Buenaventura second quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Sebastian Valencia. Please go ahead.
Good morning, everyone, and thank you for joining us today to discuss our second quarter 2026 results. Today's discussion will be led by Mr. Leandro Garcia, Chief Executive Officer. Also joining our call today and available for your questions are Mr. Daniel Dominguez, Chief Financial Officer; Mr. Juan Carlos Ortiz, Vice President of Operations; Mr. Aldo Massa, Vice President of Business Development and Commercial; Mr. Renzo Macher, Vice President of Projects; Mr. Juan Carlos Salazar, Vice President of Geology and Explorations; Mr. Jose Malca, Vice President of Sustainability; Mr. Roque Benavides, Chairman; and Mr. Raul Benavides, Director.
Before I hand the call over, please let me touch first on a few items. On
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