Buenaventura

Thank you, Lawson. It’s nice to see you. Thank you very much. Good afternoon to everyone. Today I’m presenting the Buenaventura profile. This year is important for us because we have the thirty anniversary of Buenaventura being listed in New York Stock Exchange. For a Peruvian company, this is a milestone that we feel very proud of that. We continue to evolve with a clear vision, transforming Buenaventura in one of the world’s leading mining companies while creating long-term value for all our stakeholders.

Today, I would like to transmit and share three key ideas. First, Buenaventura has completed a significant transformation in the last several years. Second, San Gabriel is now moving from construction into operational execution. And third, our future growth will be increasingly driven by copper, supported by a pipeline of long life, high quality projects.

This slide I showed it last year, and this is our vision, our strategy for the following fifteen years. Our objective is to put Buenaventura be among the fifty most valuable mining companies in terms of value in the stock exchange. We are building a company that combines scale, profitability, sustainability and resilience. Our aspiration includes recover the investment grade, the metrics of the investment grade, operating under world-class mining standards, and achieving a balanced revenue between base metals and precious metals. By 2040, our expectation is that all our mines will generate more than 100 million of EBITDA. We have defined the flagships that we are operating, and even one of our mines that not fit all the characteristic that we have defined, we should get off from our portfolio.

Why Buenaventura today? We believe our investment case is different in several ways. First, we offer a diversified exposure to gold, silver, and copper. Few companies provide investors with such balanced access to metals and that are critical both for value preservation and global electrification. Second, our core assets have an upside that we are working on unlock that potential. Buenaventura has demonstrated a consistently ability to create value through organic growth. We continue to see opportunities to extend mine life, discover additional resources, and improve operating performance across our portfolio.

Third, we possess two significant copper projects at a time when the industry faces a shortage of new copper supply. This creates a compelling setup for future value creation. And finally, our ownership in Cerro Verde continues to provide stable cash generation and attractive dividend from one of the premier copper assets in the world.

Our production roadmap illustrates how we foresee our company in the following years. During the next five years, we are going to work to extend the Moyllachas oxide mine, the Zanja oxide mine, and continue with the ramp up in the following year of our San Gabriel mine. Of course, we have to unlock the potential of El Brocal and the complex Uchucchacua Yumpac. That is as our silver productor. Brocal, we planning to increase the throughput from 13,000 tons per day to 17,000 tons per day. And in Uchucchacua Yumpac from three thousand tons per day to forty-five hundred tons per day. That will give us a big base for increase our value and to continue increase the value of the company.

In the next page, we see the transformation I talked before. First, we have increased all our reserves in all our flagship mines. Today, we can talk about fifteen years of life of mining Brocal, talking only in reserves. In resources, we can double that number. In the complex Uchucchacua Yumpac, we have seven years of reserve. And in San Gabriel, we begin with fifteen years of reserves. And of course, Cerro Verde has a long life maturity.

You can see also in the lower part of the graph our revenue mix. The objective is to maintain the revenue mix as close as 50% base metals and 50% precious metals. We feel comfortable with that mix, and we give the opportunity to the investors to take the opportunity to increase the value with the price cycles that we have today.

In terms of EBITDA, we have increased our EBITDA from one hundred and seventy-three in 2022 to almost $1.2 billion in the last twelve months ending in June this year. Also, our leverage has decreased from six times to almost net cash position in the same period, and we analyzed here.

In terms of cost, we have something to explain there. In the gold side, remember we are in the ramp-up of San Gabriel. And during the ramp-up, there is a distortion of this cost. But we think that once we execute and we reach the production capacity we are planning, the cost of San Gabriel will be around $1,900 to $2,000 per ounce. In terms of silver, the commercial terms of the escalator have affected in this period the cost of silver. However, we think it’s a temporary affection. We are ending those contracts in this quarter. And finally, we are going to have the contracts, the new contracts for the year 2027, and the escalator will not affect the same as it was affected this year.

Let’s talk about our last project, San Gabriel. This is a picture. San Gabriel is located in Moquegua, south of Peru, 4,800 meters above sea level. This is a picture from all the components of the mine. Today we are in the ramp-up. We have some challenges to face in San Gabriel. The throughput of the mine, it’s 3,000 tons, and we are ready to extract 3,000 tons per day this following quarter. The primary mine ventilation infrastructure has already done. We are completed in that term. The undercut mining below cement fill commenced this quarter.

In the processing plant, we are going to stabilize this in 1,700 tons per day, the end of this year. Today we are focused on the filter performance optimization until the first quarter of 2027. And the metallurgical recovery we target to reach this year, at the end of the year, the 70%. In tailing management, the filter tailings compactation has started in the third quarter of 2026. Tailing facility expected support 1,500 throughput in fourth quarter of 2026, and expansion underway to support 3,000 tons per day.

What comes next? Once we finish San Gabriel, the next project for Buenaventura will be Trapiche and Coimolache. Coimolache is the second stage of our current mine that is gold oxides that we are treating. The Coimolache sulfides will be in the same footprint of the current operations, and we are now in the pre-feasibility stage. We are going to begin the pre-feasibility stage. We expect to be two years making all the studies, all the efforts to complete the pre-feasibility, and the feasibility will begin in 2029. In the case of Trapiche, we are in the feasibility stage. And today, we are rethinking the project in order to take advantage of the primary copper we have found under the sulfides. Both will add to the Buenaventura production between 50,000 and 60,000 tons of copper per year.

Closing remarks. We will continue accelerating exploration efforts to extend the mine lives, expand resources, and capture opportunities created by the current commodity cycle. Second, we will keep investing in productivity, operational efficiency, and long-term competitiveness across our portfolio. Third, we will unlock the full potential of our flagship assets by executing growth initiatives over the next five years. Fourth, we remain fully focused on delivering a successful San Gabriel ramp up and ensuring it becomes a high-quality operation we envision. We will continue also advancing in our copper projects through feasibility and pre-feasibility work, laying the groundwork for the next generation of Buenaventura assets.

In summary, Buenaventura is fundamentally different company from it was just a few years ago. We have strengthened our balance sheet, increased profitability, extend the life of our key assets, complete the construction of San Gabriel, and build a pipeline of copper growth opportunities that can create value for decades to come. Our objective is not simple, to grow production. Our objective is to build a more resilient, more diversified, and more profitable mining company capable to generate superior returns throughout these commodity cycles. Thank you very much.

That was fantastic. Thank you very much, Leandro. We definitely have some time for some questions. I think first of all, you noted some work and some heavy lifting that had to do with San Gabriel. Maybe you could just speak to some of the risks and opportunities involved with that asset and how you’re managing those risks.

From San Gabriel?

For San Gabriel, yes.

Yeah. Well, we are now working on the ramp-up of San Gabriel. Actually, we have found some restrictions that we didn’t foresee in the future. But we are working with an agenda that we are permanently review it, and we are on track on what we have to do in order to put San Gabriel as a design level, no? With the production.

Okay. That’s helpful. And then maybe just on capital allocation. So between growth, the balance sheet, and shareholder returns, how would you describe to investors where the emphasis lies most?

Yeah. Well, first, we are going to continue investing and increase our reserves to give more visibility to our investors first. To increase the mine of life of our mines. To have efficiency improvements, invest in equipment, invest in new procedures in order to have a more efficient company. Third, of course, we have to preserve some cash for the projects we have. And of course, we are going to try to increase the amount of dividends we are paying, no? Our policy is to pay 20% of our net profit. Last year, our payout ratio was forty, so we expect this year to have some figure like that.

And then related to capital allocation, we’re often asked about acquisitions, divestitures, that sort of thing.

That is a homework that we have.

Okay. [chuckles]

But we have demonstrated our... We are better miners [chuckles] than buyers. [chuckles] So we are looking for any opportunity, and we have the objective to find some possibility that can reinforce our position in, for example, in gold, no? To maintain that fifty-fifty percent strategy in our revenues.

And then divestitures. Are there any assets in the portfolio that you might consider non-core at this point, or are you quite happy—

I don’t understand.

In terms of divestitures, are there any assets in the portfolio that you might consider non-core?

Oh, yeah. The ones that don’t meet the objectives we have defined as a flagship should be divested, no? There are a couple of mines that are little ones, smaller ones. We are deciding which is the best way to continue the life. We have a legacy, and we have to see who is going to be the next operator of the domain.

Understood. Thank you very much. Thank you, folks, for listening in.

Thank you.

[audience applauding]

Nice to see you. Very nice to see you.