Compañía de Minas Buenaventura SAA Q4 FY2024 earnings call

• Full year 2024 EBITDA from direct operations (excluding sale of Chaupiloma Royalty Company) was $431 million, up from $199 million in 2023, with an EBITDA margin of 37% vs. 24% in 2023.
• Full year 2024 net income, including sale of Chaupiloma Royalty Company, was $402.7 million vs. $19.9 million in 2023.
• Issued senior unsecured notes for $650 million in February 2025 to refinance debt and for general corporate purposes, and repurchased $401 million of bonds maturing in 2026.
• Received $166.5 million in dividends for 2024, including $78.3 million in December 2024 from Cerro Verde.
• 2024 CapEx totaled $378 million, with $291 million allocated to San Gabriel project.
• San Gabriel project was 71% complete by Q4 2024, with processing plant components at various stages: primary crusher at 97%, SAG and Ball at 75%, CIL tanks at 87%, filtered tailings plant at 55%.
• Implemented UDF mining method with initiatives including engaging expert, trial mine at Tambomayo, and benchmarking with four Nevada mines.

In the fourth quarter of 2024, silver production reached 15.5 million ounces, which is 69% higher compared to the same period in 2023. Of this total, 10.5 million ounces came from Uchucchacua and Yumpag complex. Full year 2024 EBITDA from direct operations, excluding the sale of Chaupiloma Royalty Company, was $431 million, a significant increase from $199 million in 2023. Full year 2024 net income, including the sale of Chaupiloma Royalty Company, was $402.7 million compared to $19.9 million in 2023. The year ended with a cash position of $478 million and total debt of $627 million, resulting in a leverage ratio of 0.34 times.

• Anticipate stable copper and silver production from El Brocal, Uchucchacua, and Yumpag.
• San Gabriel expected to commence ramp-up in Q3 2025 and produce first gold bar in Q4 2025 (subject to permit approval).
• Proposed dividend payment of US$0.2922 per share.
• 2025 focus on San Gabriel as main gold-producing asset for long-term growth.

• Weather could potentially cause delays in San Gabriel construction, though rainy season in Peru is passing and minor delays are manageable.
• Social issues remain a potential risk, though no significant disruptions have occurred so far.
• Permit approvals for San Gabriel are necessary for full operation and could pose a risk if not obtained timely.

Q: On San Gabriel, what are the key elements of pending construction and critical aspects?

A: Key elements include commissioning of electric room in crusher circuit, C1 and C2 in crusher area, and carbon in leaching area in the next three months. Critical aspects involve completing construction and securing permits.

Q: Comments on profitability of San Gabriel?

A: Cash cost for San Gabriel is expected to be $1,400 per ounce of gold, with expected annual production of 120,000 ounces.

Q: On dividends, is this the only payment in 2024 and plans for 2025?

A: Management evaluates additional dividends; proposed dividend is $0.2922 per share, and 20% of net profit is targeted for dividends.

Q: Risk related to San Gabriel completion?

A: No major procurement risk, rainy season impact is manageable, social issues are being managed, and permits are being pursued.

Q: Cost for El Brocal in 2025?

A: Expect copper costs for El Brocal to be in the range of $6,500 per tonne, balancing tonnage, cost reduction, and grade improvement.

Q: Update on San Gabriel underground, ground conditions, and benchmarking?

A: Underground progress is on track, ground conditions are poor but manageable with shotcrete and no water issues. Benchmarking with Nevada mines focuses on production grades and KPI translation to local metrics.

Q: Reserves redoing for San Gabriel?

A: Reserves are being redone due to material difference in operating costs, expected to report adjusted reserves by April 30, 2025.

Q: Dividends from Cerro Verde?

A: Expect similar dividend amount to 2024 in 2025 given Cerro Verde's strong cash generation.

Q: Plans for Trapiche and Algarrobo projects?

A: Trapiche has QP team visiting, finishing environmental impact assessment responses, and working with communities. Algarrobo project has three stages including social agreement, permit acquisition, exploration, and feasibility study.