Buenaventura Mining (NYSE:BVN) outlined a long-term strategy centered on operational improvements, the ramp-up of its San Gabriel mine and a growing pipeline of copper projects, saying it aims to become one of the 50 most valuable mining companies by stock-market value over the next 15 years.
During a New York Stock Exchange presentation, a company executive identified by the moderator as Leandro said Buenaventura has substantially transformed its business in recent years by strengthening its balance sheet, increasing profitability and extending the lives of key mining assets. The company’s strategy calls for a combination of scale, profitability, sustainability and resilience, alongside a revenue mix that is roughly balanced between base metals and precious metals.
Financial and Production Priorities
The company cited an increase in EBITDA from $173 million in 2022 to nearly $1.2 billion for the 12 months ended in June. It also said leverage declined from six times to nearly a net-cash position during the same period.
Buenaventura highlighted its diversified exposure to gold, silver and copper, as well as stable cash generation and dividends from its ownership interest in Cerro Verde. It said it sees further potential to extend mine lives, add resources and improve operating performance at its core assets.
Over the next five years, the company plans to focus on the ramp-up of San Gabriel while seeking to unlock additional potential at El Brocal and the Uchucchacua-Yumpag complex. Buenaventura plans to increase throughput at El Brocal to 17,000 tons per day from 13,000 tons per day, while throughput at Uchucchacua-Yumpag is targeted to rise to 4,500 tons per day from 3,000 tons per day.
- El Brocal has approximately 15 years of mine life based on reserves, which could double when resources are included, according to the company.
- Uchucchacua-Yumpag has about seven years of reserves.
- San Gabriel begins with approximately 15 years of reserves.
- Cerro Verde was described as a long-life, mature asset.
The company said costs associated with San Gabriel are currently affected by its ramp-up phase. Once the mine reaches planned production capacity, Buenaventura expects San Gabriel’s costs to be about $1,900 to $2,000 per ounce. It also said silver costs were affected by escalator terms in commercial contracts, which it expects to end during the current quarter. New contracts for 2027 are expected to reduce that impact.
San Gabriel Ramp-Up
San Gabriel, located in Moquegua in southern Peru at an elevation of 4,800 meters, is transitioning from construction to operational execution. The mine is designed for throughput of 3,000 tons per day, and Buenaventura said it expects to be ready to extract that volume during the following quarter.
The company said primary mine ventilation infrastructure has been completed and that undercut mining below cement fill began during the quarter. At the processing plant, Buenaventura expects to stabilize throughput at 1,700 tons per day by year-end and is focusing on filter-performance optimization through the first quarter of 2027. Its metallurgical recovery target is 70% by the end of the year.
In tailings management, filtered tailings compaction began in the third quarter of 2026. The tailings facility is expected to support 1.5 million tons of throughput in the fourth quarter of 2026, while an expansion is underway to support 3,000 tons per day.
In response to a question about risks at San Gabriel, Leandro said the company had encountered restrictions it had not anticipated but was reviewing an ongoing action plan and remained on track toward reaching the mine’s design production level.
Copper Projects and Capital Allocation
Buenaventura identified Trapiche and Coimolache as its next major development projects following San Gabriel. Coimolache sulfides would represent a second stage of the company’s current gold-oxide operation and would be developed within the existing operating footprint. The company said it expects pre-feasibility work to take two years, with feasibility work beginning in 2029.
Trapiche is currently in feasibility, with Buenaventura reconsidering aspects of the project to incorporate primary copper identified beneath sulfides. Together, Trapiche and Coimolache could add between 50,000 and 60,000 tons of copper production annually, the company said.
On capital allocation, Leandro said Buenaventura intends to prioritize reserve additions, longer mine lives, efficiency investments and funding for projects. The company’s dividend policy is to pay 20% of net profit, though it said last year’s payout ratio was 40% and it expects a similar level this year.
Regarding portfolio actions, Leandro said Buenaventura is evaluating acquisition opportunities but has “demonstrated we are better miners than buyers.” He added that smaller assets that do not meet the company’s flagship criteria could be divested, with the company considering future operators for certain legacy mines.
About Buenaventura Mining (NYSE:BVN)
Buenaventura Mining Company, formally Compañía de Minas Buenaventura SAA., is a Peru-based precious and base metals mining company. Its activities include the exploration, development, construction, and operation of mining projects, with production primarily focused on gold, silver, lead, zinc, and copper.
Founded in 1953, Buenaventura has developed and operated mining assets throughout Peru. Its portfolio has included the Tambomayo, Orcopampa, Uchucchacua, and Yumpag operations, as well as interests in other Peruvian mining projects.
