Strong Revenue Growth
Total revenues reached $625 million in Q1 2026, more than doubling year over year (>100% YoY), driven by stronger operating performance and a favorable market environment.
Compania de Minas Buenaventura SAA
· BVN
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- -8.71%
- Next Earnings Date:
- 2026-07-23
Earnings Call Sentiment
PositiveThe call reported strong top-line and bottom-line improvements (revenues >100% YoY, EBITDA >3x, net income +142%), meaningful production gains in gold (+80%) and silver (+6%), significant permitting progress, and a robust cash position supported by large affiliate dividends. Challenges include a copper production decline (-11%), marked increases in workers' profit sharing and other cost pressures, and operational teething issues at San Gabriel (clay/high moisture, partial equipment delivery, tailings constraints) that will delay full ramp-up. On balance, the positive financial performance, strong cash generation and permitting momentum outweigh the operational and cost headwinds.
Company Guidance
Buenaventura guided that San Gabriel has entered ramp‑up and should begin recording sales in Q2 2026, targeting 2,000 tpd by December 2026 and full 3,000 tpd in 2027 (filter presses 50% delivered, currently operating at ~8 bar vs 14 bar design; tailings placement to start in June); Q1 production/guidance metrics included 30,000 oz gold (+80% YoY), 3.9 million oz silver (+6% YoY vs 3.7M), and 10.9 kt copper (−11% YoY); Q1 financials: revenues $625M (>2x YoY), EBITDA from direct operations $386M (>3x YoY) with margins up from 41% to 62%, net income $355M (+142% YoY), CapEx $81M, quarter‑end cash $760M and net cash positive; dividends received YTD ~ $157M including $59M in April, while Cerro Verde is expected to generate >$2.5B EBITDA this year with $350–400M CapEx, ~$1B taxes and $1.2–1.3B FCF (Buenaventura’s share of distributions ~ $200M, $160M already distributed Jan–Apr); permitting milestones include San Gabriel stage‑one operating permit and water license, Yumpag ITS to 12 ktpd (mine plan mod expected 2026), El Brocal ITS to 17 ktpd and Trapiche EIA approved; cost pressures noted: workers’ profit‑sharing up from $2.5M to ~ $19M and diesel +50% (≈+2–2.5% to OpEx); company policy remains unhedged.
Robust Profitability and Margin Expansion
EBITDA from direct operations was $386 million, more than three times higher YoY (>200% YoY), with margins improving from 41% to 62% (up 21 percentage points). Net income was $355 million, a 142% YoY increase.
Significant Gold and Silver Production Uplift
Gold production was 30 thousand ounces, up 80% YoY, primarily due to San Gabriel ramp-up. Silver production reached 3.9 million ounces, up 6% YoY, supported by higher output at El Brocal, Uchucchacua, and Tambomayo.
Permitting Progress Unlocking Capacity
Key permits received in 2026: Stage one operating permit and water use license for San Gabriel; second ITS at Yumpag authorizing 12k tpd; first ITS at El Brocal increasing capacity to 17k tpd; Environmental Impact Assessment approved for Trapiche. Management noted these milestones increase operational certainty and support ramp-up.
Strong Balance Sheet and Cash Generation
Quarter-end cash position of $760 million and a net cash positive stance (total debt amount was inaudible). CapEx for the quarter was $81 million. YTD dividends received amounted to ~$157 million, including $59 million in April, supporting free cash flow.
Material Affiliate Cash Flow Contribution
Management expects Cerro Verde to generate exceptional cash in 2026 (EBITDA in excess of $2.5 billion; free cash flow ~ $1.2–1.3 billion after ~ $350–400 million CapEx and ~$1 billion taxes). Buenaventura expects to receive around $200 million in dividends from Cerro Verde this year, with ~$160 million already distributed Jan–Apr.
Operator
Good morning, ladies and gentlemen. Welcome to Compañía de Minas Buenaventura S.A.A. First Quarter 2026 Earnings Results Conference Call. At this time, all participants are in a listen-only mode, and please note that this call is being recorded. I would now like to introduce your host for today's call, Mr. Sebastian Valencia, Head of Investor Relations. Mr. Valencia, you may begin.
Sebastian Valencia
Good morning, everyone, and thank you for joining us today to discuss our first 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. Alejandro Hermoza, Vice President of Sustainability; Mr.
Renzo Macher, Vice President of Projects; Mr. Juan Carlos Salazar, Vice President of Geology and Explorations; Mr. Jorge Navires, Chairman; and Mr. Raul Navidres, Director. Before I hand the call over, let me first touch on a few items. On Compañía de Minas Buenaventura S.A.A.’s website, you will find our press release that was posted yesterday after market close. Please note that today's remarks include forward-looking statements that are based on management's current views and assumptions. While management believes these assumptions, expectations, and projections are reasonable in light of the currently available information, you are cautioned not to place undue reliance on these forward-looking statements.
I encourage you to...
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