Compañía de Minas Buenaventura S.A.A. Q1 FY2026 earnings call

Mr. Leandro Garcia started by summarizing operational results. Gold production up due to San Gabriel ramp - up. Silver production up mainly from Del Brugal, Utubchakwa and Tambomayo. Copper production down due to focus on silver ore. Permitting progress: received stage one operating permit for San Gabriel, water use license for San Gabriel, ITS for Yumpac to increase extraction, mine plan modification expected for Yumpac, ITS for El Brocal to increase extraction capacity, environmental impact assessment approved for Trapiche. First quarter revenues, EBITDA, net income details. Capex focused on San Gabriel and Trapiche. Dividends received from Cerro Verde. San Gabriel entered ramp - up phase, progress in commissioning and training, challenges with clay in ore and tailings dam plans. Permitting progress across portfolio supports long - term strategy.

Gold production was 30,000 ounces, up 80% year - over - year. Silver production reached 3.9 million ounces, up 6% year over year. Copper production in this first quarter reached 10.9 thousand tons, down 11% year over year. Total revenues reached $625 million in the first quarter. EBITDA from direct operations was $386 million. Net income was $355 million, a 142% year - over - year increase. Capex for the quarter totaled $81 million. Cash position was $760 million and total debt was $708 million, resulting in a net cash positive position.

Expect to solve most sensitive issues from throughput and mechanical availability of San Gabriel processing plant in second quarter. Anticipate finishing 2,000 tons per day by end of December 2026 and reaching full capacity 3,000 tons per day by end of 2027 for San Gabriel. Cerro Verde expected to generate strong cash flow with high copper prices, free cash flow in order of $1.2 to $1.3 billion this year, distributing around $200 million to Buenaventura.

Challenges with clay in San Gabriel ore affecting crushing sequence. Potential supply chain issues related to diesel price increase. Uncertainty in Peru's political situation and its impact on permitting and legislation.

Q: Can you provide more color and details on how San Gabriel ramp - up is going? What are the challenges, maybe bottom legs, that you are facing at this stage, and what is the expected output for the second quarter at San Gabriel?

A: Juan Carlos Ortiz said San Gabriel in first quarter had commissioning, training, and machine running progress. Challenges like clay in ore causing issues in crushing, milling, sanitation, filtration. Tailings dam work starting in May, expecting to solve most sensitive issues in second quarter, expect to finish 2,000 tons per day by end of December 2026 and reach 3,000 tons per day by end of 2027.

Q: On the Trapiche strategy. Clearly, you got now the environmental approval. You have a very strong balance sheet. Have you decided if you're going to pursue this project and build it on your own, or if doing it together with a partner is more likely?

A: Far from decision, investigating geotechnical, drilling, and next permits.

Q: On dividends, what are the expectations for further dividends from Cerro Verde in addition to the ones that you have received today, including the $59 million in April?

A: Daniel said Cerro Verde expected to generate strong cash flow, free cash flow in order of $1.2 to $1.3 billion this year, distributing around $200 million to Buenaventura, already distributed $160 million from January to April.

Q: I wanted to follow back on St. Gabriel. I am surprised about the clay in the ores. I didn't realize that there was clay in the ore. Can you just remind me what exactly, what mineral do you have and how are you removing this? And are you surprised you have clay in the ore?

A: Have Montmorenoyite clay, 1% - 8% in deposit. Solution options like using water - spraying screen or drum washing. Not surprised, working on clay distribution model.

Q: As you're aware, with the volatility of oil prices and other things going on around the world, I just wanted to understand how you in Peru are managing, you know, supplies coming in country. And I just want to understand whether you are seeing any constraints in getting supplies into country and or to your mine sites, you know, like we did in COVID times? Are you having to increase your working capital or stockpile selective, you know, consumables?

A: Daniel said no major supply chain disturbances, diesel price increased 50% but 5% of OPEX, have one month stock in mines and three months in Lima port.

Q: If I can, and someone in the team wants to take this, maybe for us sitting in North America, just a flavor of, you know, with elections going on, what is happening in Peru from both, you know, fiscal regime and maybe social as well with, you know, new leader in place. Can someone... give us some insights into the politics of Peru.

A: New Congress composition center and center - right, no foresee changes in legislation, campaign easy, confident business will go ahead.

Q: Going back to the San Gabriel contained clay, if I heard correctly, when you incept the screen mesh panel, which I think it's what you're going to use. Will that have an impact over OPEX at the mine? And will this have any additional capex spent?

A: Have two options, banana screen costing around $1 million additional capex, operating cost around $0.10 per ton.

Q: We have seen some cost pressures related to personal expenses. Is this something you expect to continue through the year? And could you provide more color on the main drivers behind this increase and whether it's related to wage adjustments, higher headcount, contractor costs, or the ramp - ups of San Gabriel?

A: Increase in personal costs from higher workers' profit sharing, from 2.5 million last year to almost 19 million this year, no major wage increases, headcount not a big difference.

Q: Is Buenaventura corporate policy still to remain and hedge in copper, gold and silver?

A: Policy is to not hedge, prefer to go with market, had problems with TUNAT in past, audit positive, prefer not to hedge for now.