• EBITDA 2024: $431 million, up from $199 million in 2023.
• EBITDA Margin: 37%, compared to 24% in the previous year.
• Net Income 2024: $402.7 million, up from $19.9 million in 2023.
• Cash Position: $478 million at year-end 2024.
• Total Debt: $627 million, with a leverage ratio of 0.34 times.
• Senior Unsecured Notes: $650 million issued, maturing in 2032 with a 6.8% interest rate.
• Dividends Received: $166.5 million for the full year 2024.
• CapEx 2024: $378 million, with $291 million allocated to the San Gabriel project.
• Silver Production 2024: 15.5 million ounces, a 69% increase from 2023.
• Dividend Proposal: USD 0.2922 per share.
• All-in Sustaining Cost Increase: 26% rise in Q4 2024 compared to the previous year.
• Free Cash Flow: Increased in Q4 2024, driven by strong performance and dividends received.
• San Gabriel Project Completion: 71% overall completion by Q4 2024.

• Warning! GuruFocus has detected 5 Warning Signs with BVN.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Compania De Minas Buenaventura SAA (NYSE:BVN) reported a significant increase in full-year EBITDA for 2024, reaching $431 million compared to $199 million in 2023.
• The company's net income for 2024 was $402.7 million, a substantial rise from $19.9 million in 2023.
• Silver production increased by 69% in 2024, reaching 15.5 million ounces compared to 9.2 million ounces in 2023.
• The company successfully issued senior unsecured notes for $650 million, maturing in 2032, to refinance existing debt and support corporate purposes.
• Compania De Minas Buenaventura SAA (NYSE:BVN) resumed its dividend payment policy, proposing a dividend of USD0.2922 per share, reflecting a commitment to shareholder returns.

Negative Points

• The all-in sustaining cost for the fourth quarter of 2024 increased by 26% compared to the previous year, driven by increased exploration activities.
• Copper cash costs increased due to lower by-product credit contributions at El Brocal.
• Gold cost applicable to sales rose year-over-year, primarily due to lower grades at Tambomayo and Orcopampa.
• The San Gabriel project, while progressing, still faces risks related to timely permit approvals and potential weather-related delays.
• The company anticipates a potential reduction in reported reserves for the San Gabriel project due to updated operating costs and feasibility assessments.

Q & A Highlights

Q: What are the key elements of the San Gabriel project's construction that are still pending, and what are the most critical aspects? A: Renzo Macher, Vice President of Projects and Innovation, explained that the main goals for the next three months include commissioning the electric in the crusher circuit, followed by the C1 and C2 commissioning of the crusher area, and then the carbon leaching area. The cash cost for the project is expected to be around $1,400 per ounce of gold, with an annual production of 120,000 ounces.

Q: Is the proposed dividend payment the only one expected for 2024, and will there be an increase in 2025? A: Leandro Garcia, CEO, stated that the proposed dividend is around $80 million, which is 20% of net profit. The company is open to evaluating additional dividends if opportunities arise. The previous limited payments were due to the San Gabriel construction and operational challenges, but the company is now in a better position.

Q: Are there any risks related to the completion of the San Gabriel project, particularly concerning weather or social issues? A: Renzo Macher noted that procurement is complete, and the rainy season is ending, with no significant delays expected. Social issues are being managed without any stoppages, and the focus will shift to obtaining necessary permits once construction is complete.

Q: How will the cost structure at El Brocal be affected by lower by-product contributions, and what is the expected cost for 2025? A: Juan Carlos Ortiz, Vice President of Operations, indicated that the cost is expected to stabilize around $6,500 per tonne of copper. This is due to a combination of reducing unit costs and aligning copper grades with reserve averages.

Q: What is the status of the underground development at San Gabriel, and how are ground conditions being managed? A: Juan Carlos Ortiz reported that the mine development is on track, with 20,000 tonnes of ore already stockpiled. The ground conditions are manageable, with no water issues. The company is benchmarking against mines in Nevada to optimize costs and operations.

Q: What are the expectations for dividends from Cerro Verde in 2025? A: Daniel Dominguez, Vice President of Finance and Administration, expects dividends similar to 2024, given Cerro Verde's strong cash generation and lack of debt.

Q: Can you provide an update on the Trapiche project and its milestones for this year? A: Aldo Massa, Vice President of Business Development and Commercial, mentioned that the focus is on advancing the feasibility study, securing environmental permits, and working with communities to secure power line access.

Q: How is the partnership with Antofagasta progressing, and what benefits does it bring? A: Leandro Garcia expressed satisfaction with the partnership, noting that Antofagasta supports the company's strategy and efforts to increase visibility and operational stability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.