How much of the growth CapEx is for San Gabriel, and what specifically for earthworks vs. ventilation? Also, guidance for G&A, exploration, and Cerro Verde dividends.

San Gabriel accounts for about $160 million of the growth CapEx, split between closing contracts and additional earthworks. Ventilation costs are categorized under sustaining CapEx. G&A for FY26 is guided at $60M-$70M, and total exploration at $90M-$100M. Cerro Verde dividends expected in FY26 are $200M. “Yes, from that, San Gabriel is going to be like $160 million. That includes the closing of all the contracts that we have. That's probably half of that. And the other half is additional work in the earthworks. I think the ventilation is more in the sustaining CapEx.”

Update on dividend payout, Coimolache study timeline, San Gabriel water permit delay, and progress on asset sales.

The Board approved a 40% payout of FY25 net income, exceeding the minimum policy, to be evaluated going forward. Coimolache Sulfides study is ending, with market updates expected in H1 2026 after internal discussions. San Gabriel's water permit is expected within weeks, pending signing after authority visits. Asset sales are still under evaluation, with rising precious metal prices prompting a re-analysis, but a decision is expected soon, likely selling units separately. “But you have to take into consideration that this increase in precious metals prices, really, you have to think a lot if you want to sell or not an asset right now.”

Explanation for the 16% rise in cost applicable to sales at Yumpag/Uchucchacua, particularly commercial deductions and nonpayable value. Also, provide FY26 revenue and EBITDA guidance.

Silver cost increases at Yumpag were due to higher commercial deductions from producing lower-grade silver concentrate (less than 2,500 grams, resulting in 60-70% payable vs. 90-95% for higher grade) and escalator clauses in contracts triggered by sharp silver price increases. FY26 revenue is guided at $1.8B-$2B and EBITDA at $800M-$1B, based on specific commodity price assumptions. “When you sell silver concentrates with less than 2,500 grams, usually, the payable for that concentrate is between 60% and 70%. When you sell silver concentrate with higher than 2,500 grams, the payable is between 90% and 95%. In the last quarter, we produced more silver concentrate with lower grade. That's why the deduction is a lot more.”

BVN

Buenaventura Mining CO (BVN) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Materials· Feb 27, 2026

Source: earnings call transcript

Executive summary

Compañía de Minas Buenaventura Q4 FY25 — San Gabriel Nears Completion Amidst Strong Financials

Buenaventura closed FY25 with robust financial results, driven by strong EBITDA and net income, despite a decline in gold and copper production. The San Gabriel project is nearing completion, having produced its first dore bar, though its ramp-up faces initial challenges with ventilation and high-grade access, leading to a revised 2026 production outlook. The company is actively reviewing its portfolio, including potential asset sales, while increasing exploration investments and maintaining a disciplined capital allocation strategy, highlighted by an increased dividend payout.

Highlights

EBITDA from direct operations increased 88% to $812 million in FY25 compared to $431.5 million in FY24.
Net income for FY25 reached $830 million, up from $416 million in FY24, including $208.9 million from the sale of Chaupiloma.
San Gabriel project achieved 99% overall completion by Q4 FY25, with first dore bar produced in December.
The company ended the year with a strong cash position of $530 million and a leverage ratio of 0.22x.
Board approved a dividend of $0.9904 per share, bringing total dividends over the past 12 months to $1.135 per share/ADS.

Concerns

Gold production decreased 18% year-on-year to 121,000 ounces in FY25 due to lower output at Orcopampa and Tambomayo.
Copper production was down 8% year-on-year to 52,400 tonnes in FY25.
San Gabriel's 2026 gold production guidance was lowered to 48,000-55,000 ounces, impacted by ventilation issues and restricted high-grade mining.
Cash costs for copper, silver, and gold increased in Q4 FY25 due to higher personnel costs, commercial deductions, and lower scale efficiency.
FY26 CapEx guidance of $385 million to $415 million is higher than previous expectations, partly due to additional earthworks at San Gabriel.

Guidance & targets

Category	Target	Timeline	Confidence
Total Capital Expenditure	$385 million to $415 million high materiality	FY26	High
Sustaining Capital Expenditure	around $200 million to $220 million medium materiality	FY26	High
Growth Capital Expenditure	between $185 million and $195 million medium materiality	FY26	High
San Gabriel Gold Production	48,000 and 55,000 gold ounces high materiality	FY26	Medium
San Gabriel Throughput	stable 2,000 tonnes per day high materiality	Q3 · FY26	High
San Gabriel Throughput	3,000 tonnes per day high materiality	FY27	Medium
General & Administrative Expenses	around $60 million to $70 million medium materiality	FY26	High
Total Exploration Budget	between $90 million and $100 million medium materiality	FY26	High
Cerro Verde Dividends Expected	around $200 million medium materiality	FY26	High
Revenue	$1.8 billion to $2 billion high materiality	FY26	Medium
EBITDA	around $800 million and $1 billion high materiality	FY26	Medium

Deals & partnerships

null Sale of Chaupiloma $208.9 million

The sale of Chaupiloma contributed significantly to the company's net income for the full year 2025.

null Strategic review for potential sale of mines

The company is evaluating the feasibility of selling Orcopampa, Tambomayo, and Julcani. Rising precious metal prices are causing a re-analysis of the decision. A final decision is close, with a higher possibility of selling units separately rather than as a whole.

Capital programs

San Gabriel Project ramp-up

Period spend: $153 million

Spent to date: 99% overall progress

Benefit:stable 2,000 tonnes per day throughput (Q3 2026), 3,000 tonnes per day throughput (FY27)

Reached 99% overall progress by Q4 FY25. First dore bar produced in December. Q4 FY25 CapEx primarily for processing plant construction. Remaining works include earthworks, water systems, roads, and grouting for the water dam. Ventilation system upgrades are needed to access high-grade areas.

Coimolache Sulfides Project study ending

The conceptual study is ending. Internal discussions with partners (Milpo and ESPRO) are ongoing to determine next steps. Market informed in H1 2026.

Risks & headwinds

San Gabriel ramp-up and production delays FY26

2026 gold production guidance lowered to 48,000-55,000 ounces (from higher previous expectations); stable 2,000 tpd throughput delayed to Q3 2026.

Mitigation:Completing earthworks, water systems, roads, and grouting for water dam; redesigning ventilation sequence and bringing more fans/electrical devices to improve ventilation for high-grade areas; securing final operational permits for tailings.

Rising cash costs for copper, silver, and gold Q4 FY25

Copper cash costs increased due to higher personnel costs, cement consumption, FX at El Brocal. Silver cash costs increased due to higher commercial deductions at Yumpag (lower grade concentrate, escalator clauses) and nonpayable value. Gold cash costs increased due to lower throughput and reduced scale efficiency at Orcopampa and Tambomayo.

Mitigation:Not explicitly stated for all, but for silver, managing concentrate grades and contract terms. For gold, improving throughput and scale efficiency.

Permitting Delays (San Gabriel Water License) Q1 2026

Water license expected 'in coming weeks' after Q4 FY25.

Mitigation:Authorities have visited, awaiting permit to be signed.

What to watch in Q1 FY26

San Gabriel Water License Approval

Q1 2026

Current Expected in coming weeks

Target Permit granted

Why it matters

Essential for full operational ramp-up of the San Gabriel project.

The water license is expected in the coming weeks.

Find out whether BVN delivers this. Inve re-checks your case every morning.

Q&A highlights

Why did CapEx significantly increase compared to prior guidance, and what caused the lower San Gabriel production guidance for 2026?

Management explained the CapEx increase is due to remaining earthworks and minor fixes at San Gabriel, especially after the rainy season, and closing contracts. The lower gold production guidance for San Gabriel is attributed to pending construction and permitting for tailings, and a redesign of the ventilation sequence after an accident, which restricts high-grade mining flexibility to 3 levels instead of 6, leading to lower average grades.

“Well, when we finish the earthworks, it's still untested. So this is -- we are currently in the middle of the rainy season. So you still -- you keep finding things that can be improved or things that need some extra work to be finished.”

asked by Carlos De Alba · answered by Renzo Macher

2 min read 6 chapters

Detailed narrative

San Gabriel Project Update and Ramp-up Challenges

The San Gabriel project has reached 99% overall completion by Q4 FY25, with the first dore bar produced in December. However, the 2026 gold production guidance has been lowered to 48,000-55,000 ounces, down from previous expectations. This revision is primarily due to pending earthworks, ventilation system upgrades, and a redesign of the ventilation sequence after an accident, which restricts mining flexibility to 3 levels instead of 6, impacting the average gold grade.

Management expects to achieve a stable 2,000 tonnes per day throughput by Q3 2026, with a target of 3,000 tonnes per day in FY27.

FY25 Financial Performance

Buenaventura reported a significant increase in EBITDA from direct operations, reaching $812 million in FY25, an 88% increase year-over-year. Net income also saw substantial growth, totaling $830 million for the full year, which included a $208.9 million contribution from the sale of Chaupiloma.

The company maintained a strong balance sheet, ending the year with $530 million in cash and a leverage ratio of 0.22x, supporting its capital allocation strategy.

Capital Expenditure and Allocation

The company provided FY26 total CapEx guidance of $385 million to $415 million, which is higher than prior expectations. This includes $200 million to $220 million for sustaining CapEx, focused on mine development and upgrades at existing operations, and $185 million to $195 million for growth CapEx, primarily for completing San Gabriel and advancing the Trapiche project.

The Board approved a dividend of $0.9904 per share, representing 40% of FY25 net income, exceeding the minimum 20% policy, reflecting confidence in financial performance and capital discipline.

Cost Trends and Drivers

Cash costs applicable to sales increased across copper, silver, and gold in Q4 FY25. Copper costs rose due to higher personnel expenses, increased cement consumption, and FX impacts at El Brocal. Silver costs were affected by higher commercial deductions at Yumpag, nonpayable value, and escalators linked to rising silver prices, partially offset by increased ore throughput at Uchucchacua and Julcani.

Gold costs increased due to lower throughput and reduced scale efficiency at Orcopampa and Tambomayo.

Exploration and Asset Portfolio Review

Buenaventura plans to increase its exploration budget for FY26 to $90 million-$100 million, up from $70 million previously, with a focus on San Gabriel, El Brocal, Uchucchacua, Yumpag, and greenfield projects. The company is also actively reviewing its portfolio, including the potential sale of mines like Orcopampa, Tambomayo, and Julcani.

While a decision is pending, the recent increase in precious metals prices is prompting a re-evaluation of these assets, with a current inclination towards selling them separately if a sale proceeds.

Affiliate Contributions and Dividends

The company highlighted solid performance from its affiliate companies, with Coimolache operating at full capacity. Cerro Verde distributed $98 million in dividends attributable to Buenaventura's stake in January 2026. For the full year 2026, Buenaventura expects to receive approximately $200 million in dividends from Cerro Verde, with payments scheduled throughout the year.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.