Compania de Minas Buenaventura SAA ( (BVN) ) has released its Q3 earnings. Here is a breakdown of the information Compania de Minas Buenaventura SAA presented to its investors.
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Compañia de Minas Buenaventura S.A.A. is Peru’s largest publicly traded precious and base metals mining company, focusing on the exploration, development, processing, and trading of gold, silver, and other base metals through its wholly-owned mines and joint venture projects. The company is a significant mining rights holder in Peru and has a noteworthy partnership with Freeport-McMoRan Inc. and Sumitomo Corporation in the Cerro Verde copper mine.
In its latest earnings report, Buenaventura presented robust financial results for the third quarter and the nine-month period ending September 30, 2024. The company reported a substantial increase in EBITDA and net income, driven by the sale of the Chaupiloma Royalty Company and enhanced production levels, especially in silver, zinc, and lead. Improved operational efficiencies and elevated metal prices contributed to a significant rise in total revenues year-on-year.
Key financial highlights include a 57% increase in total revenues for 3Q24 compared to 3Q23, reaching $331.1 million, and a remarkable turnaround in net income, achieving $236.9 million compared to a loss in the previous year. The sale of Chaupiloma Royalty Company for $210 million notably bolstered these results. Additionally, the company saw substantial growth in production volumes of silver, lead, and zinc, attributed to increased output from the Uchucchacua and Yumpag mines.
The company’s cash position remains strong, with a balance of $457.9 million, and its leverage ratio stands at a conservative 0.50x. Moody’s recently upgraded Buenaventura’s credit rating to B1 with a positive outlook, acknowledging the company’s operational improvements and efficient liquidity management.
Looking forward, Buenaventura’s management remains optimistic about sustaining its operational momentum, supported by ongoing projects like San Gabriel, which is seeing significant capital investment. The company aims to maintain its focus on operational efficiencies, cost management, and strategic asset management to drive growth and shareholder value.
