Buenaventura Q1 Revenue Doubles to $625M; Gold Output Up 80%
Buenaventura’s Q1 revenue surged to $625 million, driven by an 80% jump in gold output to 30,000 ounces, while net income rose 142% to $355 million. The company ended the quarter net cash positive with $760 million against $708 million in debt and boosted EBITDA margin from 41% to 62%.
1. Strong Top-line Growth
The company delivered record Q1 revenue of $625 million, more than doubling year-over-year, driven by an 80% increase in gold production to 30,000 ounces and a 6% rise in silver output to 3.9 million ounces, while copper production declined 11% to 10,900 tons.
2. Profitability and Cash Position
EBITDA from direct operations rose to $386 million, over three times higher year-over-year, lifting the margin from 41% to 62%. Net income jumped 142% to $355 million, and the quarter closed with $760 million in cash against $708 million of debt, resulting in a net cash positive position.
3. Operational Highlights and Challenges
Ramp-up operations at San Gabriel faced challenges from high moisture in ore affecting conveyor belts and potential additional equipment costs to handle clay content. Rising diesel prices, up 50%, increased operating expenses at El Brocal and contributed to the 11% decline in copper output due to a shift toward silver ore processing.
4. Capital Allocation and Dividends
The company allocated $81 million of capital primarily to the San Gabriel and Trapiche projects during Q1. Dividend receipts from Cerro Verde reached $59 million for the quarter, taking year-to-date totals to $157 million, bolstering funding for ongoing growth initiatives.