Compañía de Minas Buenaventura

Good morning, ladies and gentlemen. Welcome to the Compania de Minas Buenaventura fourth quarter 2025 earnings results conference call. At this time, all participants are in listen-only mode, and please note that this call is being recorded. I would now like to introduce you to your host for today's call, Mr. Sebastian Valencia, head of investor relations. Mr. Valencia, you may begin.

Good morning, everyone. And thank you for joining us today to discuss our four-quarter 2025 results. Today's discussion will be led by Mr. Leandro Garcia, Chief Executive Officer. Also, joining our call today and available for your questions are Mr. Daniel Dominguez, Chief Financial Officer, Mr. Juan Carlos Ortiz, Vice President of Operations, Mr. Aldo Massa, Vice President of Business Development and Commercial, Mr. Alejandro Hermosa, Vice President of Sustainability, Mr. Renzo Maher, Vice President of Projects, Mr. Juan Carlos Salazar, Vice President of Geology and Explorations, Mr. Roger Benavides, Chairman, and Mr. Raúl Benavides, Director. Before I hand the call over, let me first touch on a few items. On Buenaventura's website, you will find our press release that was posted yesterday after the market closed. Please note that today's remarks include forward-looking statements that are based on management current views and assumptions. While management believes that these assumptions, expectations, and projections are reasonable in view of the current available information, you are cautioned not to place under reliance on these forward-looking statements. I encourage you to read the full disclosure concerning forward-looking statements within the earnings result that was issued on February 26, 2026. Let me now turn the call to Ms. Arleandro Garcia.

Good morning and thank you for joining us today to discuss the quarterly results of the company at the year end. On slide two is our cautionary statement, important information that I encourage you to read. Today, we will talk about our 2025 performance, our main achievements, and our priorities for the future. After the presentation, we will be available for our Q&A session, where our team will be happy to answer your questions. The next slide, I will start by providing a summary of our strong results for the year. Copper production in the full year of 2025 reached 52.4 thousand tons, down 8% over year. was mainly because the company processed stockpiles with higher precious metal content following a sharp increase in precious metal. This was in Brocal. Silver production reached 15.6 million ounces, 1% higher compared to the 15.5 million ounces produced during the same period last year, in line with our annual expectations. Gold production was 121,000 ounces, down 18% year-on-year, mainly due to lower output at Orcopampa and Tambomayo, consistent with the 2025 planned mining sequence. EBITDA from our direct operations in full year of 2025 was US$112 million, which represents an 88% increase compared to the $431.5 million in 2024. Net income for the full year was $1,830 million compared to $416 million in 2024, which includes $157.3 million from the sale of Chaupiloma. The year ended with a cash position of $530 million and total debt of $710 million, resulting in a leverage ratio of 0.22 times. Moving on to San Gabriel. As of now, San Gabriel has reached 99% overall progress. CAPEX for the project in the fourth quarter of 2025 was $153 million, primarily allocated to the completion of the processing plant construction. After the quarter ended on January 29, 2026, Buenaventura received $98 million in dividends from its stake in Cerro Verde. Finally, the Board approved a dividend of $0.9904 per share. With this approval, total dividends declared over the past 12 months reached $1.135 per share at ADS. Moving forward to our 2025 guidance. Regarding gold production, our primary focus is in San Gabriel, which is expected to become our main gold-producing asset in the coming years, playing a key role in our long-term growth strategy. We anticipate stable copper and silver production at both El Brocal and Uchuchacuayumpa, maintaining consistent output levels. For 2025, we expect total CAPEX of between $385 and $415 million, around $200 to $220 million we sustain in CAPEX, mainly focused on mine development, tailings, and ventilation at Richa del Brocal, Urchuchaco, and Yumpac, as well as readiness and wrap-up works at San Gabriel. for 2026 is expected to be between 185 and 195 million, mainly focused on the completing of San Gabriel and advancing Trapiche and Algarro. Moving on the cost applicable to sales trend, Copper cash increased in the fourth quarter of 2025, mainly due to higher personnel costs driven by improved profitability, increased cement consumption, and foreign exchange impacts at Eurocash. Silver cash increased due to higher commercial deductions and YUMPA, non-payable value and escalators. Additionally, there were increased or throughput partially offsetting lower grades at Uchuchagua and Hulcani. Gold cash has increased due to lower throughput, reducing scale efficiency at Orcopampa and Tambo Maya. On the next slide, we will present free cash flow generation. The four-quarter cash position increased during the quarter, mainly driven by net cash inflows from operating activities. Moving on to slide six, I would like to highlight a key milestone achieved last December. We produced our first dorebar at San Gabriel, and we have received the initial operating permit. The water license is expected in the coming weeks. For 2026, our production guidance is between 48,000 and 55,000 gold ounces. There are still some pending milestones to achieve full potential. These include the expansion of tailings drying areas and upgrades of the ventilation system. We expect to complete this milestone, enable a stable 2,000 tons per day throughput in the third quarter of 2026, and continued ramp up. San Gabriel's cumulative progress has reached 99% overall completion by fourth quarter of 2025, primarily driven by finishing the engineering and procurement as well as the construction at 98% of advance. On the next slide, we are showing the processing plant's progress, the primary crusher mechanical wars at 100%, The SAC and BOS mechanical wars are at 100% also. And finally, the sealed tanks mechanic wars are ended with 100% achievement. Moving on, we can see the progress of the main components of the plant. Moving on to slide nine, we are showing the progress made at the filter tailings plant, which is now complete. To conclude the presentation, I would like to share a few final thoughts. Consistent copper and silver output supported by steady operations at El Brocal, Uchuchagua and Yumpac, ensuring operational reliability. Solid performance from affiliate companies, Colmolache is operating at full capacity, while Cerro Verde distributes 98 million in dividends attributable to Buenaventura State. San Gabriel has entered in its transition phase, moving from project execution to ramp-up during the first half of 2026, positioning the operation to achieve a stable 2,000 tons per day throughput in the third quarter of 2026. environment allows us to step up exploration investment to reinforce our reserves and resources base, while advancing progressive closures to enhance efficiency. A strong cash flow generation, a solid balance sheet, and a disciplined capital allocation enable us to return in value to shareholders, reaffirming our commitment to investor returns. Thank you for your attention, and I will call back to the operator to open the line for questions. Operator, please go ahead.