Compañía de Minas Buenaventura (BVN) Q3 2024 earnings summary

Executive summary

• Q3 2024 EBITDA from direct operations rose to $132.4 million, up 149% year-over-year, driven by strong results at Yumpag and El Brocal.

• Net income reached $237 million in Q3 2024, including the $210 million Chaupiloma sale, versus a $28 million net loss in Q3 2023.

• Silver production surged to 4.4 million ounces, gold output increased 7% year-over-year, while copper production fell 9%.

• Moody’s upgraded credit rating to B1 with a positive outlook, citing operational improvements and strong liquidity.

• Revenues rose 57% year-over-year in Q3 2024 to $331.1 million, driven by higher silver, lead, and zinc sales and prices.

Financial highlights

• EBITDA margin improved to 40% from 25% year-over-year.

• Cash position at quarter-end was $458 million; total debt stood at $675 million; net debt $224.7 million.

• Net debt/EBITDA ratio dropped to 0.5x, the lowest in years.

• Q3 CapEx totaled $98 million, with $77 million allocated to San Gabriel.

• Free cash flow increased, supported by asset sales and Cerro Verde dividends.

Outlook and guidance

• San Gabriel project reached 65% completion, with commissioning planned towards year-end and first gold bar expected in Q1 2025.

• 2025 EBITDA guidance is $350–$380 million, assuming gold at $2,100/oz, silver at $27/oz, and copper at $9,000/ton.

• Cerro Verde dividends expected at $150 million in 2025, with potential for $50–$60 million in Q4 2024.

• Coimolache profitability expected to recover in Q3 2025 as fresh ore is placed on leach pads.

• Uchucchacua and Yumpag mines achieved or exceeded targeted throughput ahead of schedule.