Compania de Minas Buenaventura SAA ((BVN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Compania de Minas Buenaventura SAA painted a mixed picture of the company’s financial health and operational progress. While there were notable achievements such as a significant surge in EBITDA and advancements in the San Gabriel project, these were counterbalanced by declines in production metrics for copper, silver, and gold, alongside a drop in net income.
EBITDA Surge
The company reported a remarkable increase in EBITDA from direct operations, reaching $202.1 million in the third quarter of 2025. This represents a 48% rise compared to $136.5 million in the same quarter last year, highlighting strong operational efficiency and cost management.
San Gabriel Project Progress
The San Gabriel project has made substantial headway, achieving 96% overall progress with construction at 95% completion. The project is poised to commence production in the fourth quarter of 2025, marking a significant milestone for the company.
Dividend Announcement
In a positive move for shareholders, Buenaventura’s Board of Directors has approved a dividend payment of $0.1446 per share ADS, reflecting the company’s commitment to returning value to its investors.
Coimolache Operating Permit
The Coimolache mine received a new operating permit, which allows for full capacity production at the mine and leach pad, potentially boosting future output and revenue.
Copper Production Decline
Copper production in the third quarter of 2025 saw a significant decline, reaching 12,800 tonnes, which is a 24% decrease year-on-year. This drop poses challenges for the company in maintaining its production targets.
Silver Production Decrease
Silver production was slightly down by 3%, totaling 4.3 million ounces compared to the same period last year, indicating a modest decline in output.
Gold Production Drop
Gold production experienced a notable decrease, falling 21% year-on-year to 30,894 ounces, which could impact the company’s revenue from precious metals.
Net Income Decrease
Net income for the quarter was $167.1 million, down from $236.9 million in the third quarter of 2024. The previous year’s net income had been positively impacted by the sale of Chaupiloma, which was not replicated this year.
Forward-Looking Guidance
Looking ahead, the company remains focused on completing the San Gabriel project, with significant capital expenditure already allocated. Despite the declines in production for copper, silver, and gold, the company maintains a strong cash position of $486 million against a total debt of $711 million. The leverage ratio stands at 0.41x, indicating a manageable debt level. The approved dividend payment also signals confidence in future cash flows.
In summary, Compania de Minas Buenaventura SAA’s earnings call highlighted a blend of strong operational achievements and challenges in production metrics. While the surge in EBITDA and progress in the San Gabriel project are promising, the declines in copper, silver, and gold production, along with reduced net income, present areas for improvement. The company’s forward-looking guidance suggests a focus on strategic project completion and financial stability.