Compañía de Minas Buenaventura S.A.A. Q2 FY2025 earnings call

• Strong financial performance in Q2 2025 with EBITDA and net income growth. - Silver, copper, and gold production details including changes year-over-year. - Cerro Verde's dividend distribution and San Gabriel project progress (88% completion, $82 million CapEx in Q2 2025). - Cost structure changes with all-in sustaining cost increase due to lower by-product credit. - Free cash flow generation and San Gabriel project milestones like anticipated ramp-up in Q3 2025 and first gold bar in Q4 2025 (subject to permits).

In the second quarter of 2025, Buenaventura's EBITDA from direct operations was $130 million, up from $107 million in Q2 2024. Net income was $91 million vs $71 million in Q2 2024. Silver production was 3.6 million ounces, 11% lower than Q2 2024. Copper production increased 28% YOY due to halted operation at El Brocal in Q2 2024. Gold production was 27,345 ounces, down from 33,819 ounces in Q2 2024. Cerro Verde announced a $59 million dividend distribution, with Buenaventura's equity share to be $108 million. CapEx for the quarter was $107 million, with $82 million allocated to the San Gabriel project. Cash position at end of Q2 2025 was $589 million, total debt $860 million, leverage ratio 0.56x.

• San Gabriel project anticipated to commence ramp-up in Q3 2025 with first gold bar in Q4 2025 (subject to permits). - CapEx for San Gabriel expected to be $720-$750 million, with ~$600 million disbursed by June 2025 and $130-$160 million to be disbursed by year-end. - Uchucchacua expected to reach 2,000 tonnes per day throughput by end of 2025, reducing operating costs. - El Brocal to mine higher grade blocks with higher gold and silver content. - Continued sales of Cerro Verde copper concentrate with expected margins from back-to-back sales.

• Potential permit delays for San Gabriel project. - Impact of road blockades on mining operations. - Uncertainty in market conditions affecting concentrate sales margins.

Q: Can you provide more color on the pending permits for San Gabriel, CapEx for the second half of 2025, and ramp-up timeline?

A: We invited authorities to visit the plant around September for the simple permit. CapEx for San Gabriel will be ~$720-$750 million, with ~$600 million disbursed by June 2025 and $130-$160 million to be disbursed by year-end. Ramp-up will take all of 2026, aiming for 100,000-120,000 ounces production.

Q: How is Uchucchacua's silver grade situation and what's the strategy for El Brocal?

A: Uchucchacua is doing backfilling due to seismic activity, aiming to resume mining in bottom part by Q4 2025 and reach 2,000 tonnes per day by end of 2025. El Brocal will mine higher grade blocks with higher gold and silver content to impact costs positively.

Q: Talk about Cerro Verde concentrate sales and Trapiche's timeline?

A: Sold 20,000 tonnes of Cerro Verde copper concentrate in first half, plan to sell 20,000 tonnes more in second half. Trapiche's feasibility study expected in Q3 2026, with environmental permits being finalized.

Q: Details on San Gabriel's tailings, stockpile, and ramp-up?

A: San Gabriel has tailings valley constraints as it's a V-shaped valley. Stockpile review ongoing, with plan to ramp-up in 2026, aiming for 3,000 tonnes per day throughput in second half of 2026.

Q: Impact of road blockades on mining operations and use of Cerro Verde dividends?

A: No major impact on Buenaventura's operations from road blockades. Cerro Verde dividends will be used for CapEx, exploration, and possible shareholder dividend.