Compania de Minas Buenaventura S.A. Q2 2026 earnings show net income of $261M, up 165% YoY, driven by gold production ramp-up and favorable prices.
Compania de Minas Buenaventura S.A. reported Q2 2026 net income of $261 million (USD), a staggering 165% increase year-over-year and exceeding analyst expectations. The notable performance comes amid a significant ramp-up in gold production and favorable metal prices, which underpins the company's strong operational recovery.
Key Takeaways
- Net income reached $261 million, up 165% YoY, driven by improved operational performance across core assets.
- EBITDA increased 113% YoY to $277 million, with margins expanding from 35% to 52% as revenue rose 43% to $529 million.
- Gold production rose 12% YoY to 30.5 thousand ounces, boosted by the ramp-up at San Gabriel, which began commercial sales this quarter.
- Cash position improved to $759 million, with a net cash position of approximately $67 million and net debt to EBITDA remaining at negative 0.05 times.
- Capital expenditures totaled approximately $98 million, mainly directed towards San Gabriel and El Brocal projects, with an expected total of $500 million for the year.
Financial Performance Drives Strong Results
Compania de Minas Buenaventura S.A. experienced a robust second quarter with total revenues increasing 43% year-over-year to $529 million, driven by higher production and favorable commodity prices. EBITDA from direct operations reached $277 million, representing a significant 113% increase from the same period last year, and pushing EBITDA margins to 52% from 35%.
| Metric | Q2 2026 | YoY | QoQ |
|---|---|---|---|
| Revenue | $529M | +43% | N/A |
| EBITDA | $277M | +113% | N/A |
| Net Income | $261M | +165% | N/A |
This operational success was primarily attributed to a 12% increase in gold production to 30.5 thousand ounces, stemming from continued ramp-up efforts at the San Gabriel mine, which has now begun to contribute to sales volumes.
San Gabriel's Ramp-Up Progress
San Gabriel's successful ramp-up has been a focal point for Buenaventura, as it began commercial sales in Q2 2026, producing 2.8 thousand ounces of gold. The company expects the mine to stabilize its operations by mid-2027. Management indicated that while throughput remains constrained due to tailings management and filtration challenges, significant progress has been made with primary ventilation infrastructure and the development of the full mining fleet.
“We are very focused on San Gabriel. We have a plan to deliver what was our guideline for 2026 and ending the ramp-up in the midst of 2027.” - Leandro Garcia, CEO.
Management remains optimistic about achieving a stable production environment at San Gabriel, aiming for approximately 70% gold recovery by the end of 2026, with further improvements anticipated by the end of 2027.
Cost Structure Remains Manageable
Despite inflationary pressures from higher fuel costs and royalties, management indicated that overall costs have remained stable. The company noted that diesel prices could impact operating costs by 5-7%. The cash performance for copper remained stable year-over-year at El Brocal, while silver cash costs increased due to higher commercial deductions. Gold cash costs were impacted by the commencement of commercial sales at San Gabriel.
Management expects to maintain operational costs within budget, even as they anticipate spending an additional $12 million to address potential El Niño impacts, which could affect operations later in the year.
Future Guidance and Dividend Expectations
Looking ahead, management reiterated their commitment to disciplined capital allocation, with total capital expenditures projected to be around $500 million for the year. This includes approximately $60 million directed specifically towards San Gabriel for ongoing enhancements. The company anticipates receiving between $350 million to $380 million in dividends from Cerro Verde for the entire year, maintaining a strong cash generation profile.
“The combination of strong operating performance, disciplined capital allocation, and favorable commodity prices continues to strengthen our cash generation and balance sheet.” - Leandro Garcia, CEO.
Frequently Asked Questions
Did Compania de Minas Buenaventura S.A. beat earnings estimates in Q2 2026?
Yes, the company reported a net income of $261 million, significantly exceeding analyst expectations and representing a 165% increase year-over-year.
What were the primary contributors to revenue growth in Q2 2026?
Revenue grew due to a 12% increase in gold production and favorable metal prices, resulting in total revenues of $529 million, a 43% year-over-year increase.
What is the expected gold recovery rate at San Gabriel by the end of 2026?
Management expects to achieve approximately 70% gold recovery at San Gabriel by the end of 2026, with further improvements expected by the end of 2027.
How much is Compania de Minas Buenaventura S.A. spending on capital expenditures this year?
The company has projected total capital expenditures of approximately $500 million for 2026, focusing on growth projects and productivity enhancements.
This analysis is based on public earnings call materials and is not investment advice.
