Compañía de Minas Buenaventura SAA (BVN)

Financial Report: Compañía Mina Buenaventura S.A.A.

Report Date: 2025-04-30
Period Covered: Fiscal Year 2024
Form Type: 20-F

1. Overview

Buenaventura is Peru’s largest precious-metals mining company, producing gold, silver, and polymetallic concentrates from multiple underground and open-pit operations. It also holds a 19.58% stake in Cerro Verde, a major copper operation.

2. Financial Highlights

• Revenue: $1.154 billion in 2024 vs. $0.824 billion in 2023 (+40%).
• Net Profit: $416 million in 2024 vs. $32.7 million in 2023.
• EPS: $1.59 per basic share in 2024 vs. $0.08 in 2023.
• Cash Balance: $689.7 million at year-end vs. $509.6 million 2023.
• Net Debt (financial obligations): $627 million at year-end vs. $707 million 2023 (–11.3%).
• Cash Flow from Ops: +$1.699 billion (2024) vs. +$1.367 billion (2023).

3. Profit & Loss Analysis

Revenue Growth Drivers:

• Copper Sales: Benefited from higher realized prices (avg. $9 237/t in 2024 vs. $8 532/t), partially offset by a 4% drop in volume.
• Silver & Gold: Production ramp-up at Uchucchacua/Yumpag drove a 53% increase in silver sales; gold sales benefited from +23% price lift.
• By‐products: Zinc and lead sales also rose on improved prices and resumed operations.

Cost & Margins:

• Total operating costs (ex‐D&A): $795 million (+8.5%), driven by staffing, energy, and resumption of suspended sites.
• Stripping‐cost amortization: $150.8 million (–17% YoY) as waste‐removal schedules normalize.
• Gross margin improved to 31.1% from 11.1% in 2023.

Non‐operating & Taxes:

• Equity‐income from Cerro Verde: +$186.5 million.
• Interest & FX: Net finance income of +$12.5 million.
• Effective tax rate: 37.2% (2024) vs. 41.3% (2023), due to non‐recurring tax credits.

4. Profit Drivers & Risks

Drivers:

• Full‐year restart of Uchucchacua and Yumpag plants.
• Optimized underground mining at Brocal.
• Strong precious/ base‐metals price environment.

Risks:

• Metal‐price volatility.
• Regulatory/tax audits (ongoing Sunat disputes).
• Political/social unrest in Peru.
• Environmental & mine-closure obligations.

5. Pros & Cons

Pros:

• Diversified gold/silver/copper portfolio.
• Robust cash generation & deleveraging.
• Upside from San Gabriel (2025 startup) & Trapiche projects.

Cons:

• High exposure to commodity cycles.
• Significant environmental/social permitting risk.
• Legacy tax/legal disputes with Peru’s Sunat.

Revenue Mix (2024):

• Copper: $483.5 M (36.4%)
• Silver: $415.4 M (31.3%)
• Gold: $326.7 M (24.6%)
• Zinc: $63.1 M (4.8%)
• Lead: $33.8 M (2.5%)
• Other: $3.7 M (0.3%)

Geographic Revenue (2024):

• Asia: 78%
• Rest of Peru: 10%
• North America: 6%
• Europe: 6%

Buenaventura’s 2024 results reflect the successful resumption of key sites and strong metals pricing, driving a dramatic rebound in profit and cash flow. The balance sheet shows sustained debt reduction and a $689 million cash buffer, funding growth projects (San Gabriel, Trapiche) and supportive of continued dividend payouts. Exploration will focus on Uchucchacua extensions and brownfield targets around existing mines, while strategic assets like Cerro Verde add long‐term copper exposure. However, Peru’s shifting regulatory environment, community tensions, and tax/legal uncertainties remain headwinds that require active management. Looking ahead, the company’s diversified metal mix, disciplined capital allocation, and improving free cash flow position it well for sustainable value creation, provided operational execution and commodity markets stay favorable.