Loading...
01/11 07:59
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with increased EBITDA, net income, and a reduced net debt-to-EBITDA ratio. Despite a decrease in copper production, silver and gold production rose. Management's optimistic guidance for 2025 and efficient cost management positively influence sentiment. The Q&A section reveals some uncertainties, but the overall outlook is favorable. The market cap suggests moderate volatility, leading to a positive stock price prediction of 2% to 8% over the next two weeks.
EBITDA $132 million (up from previous year), primarily driven by strong results from Yumpag and El Brocal, resulting in an EBITDA margin of 40%, compared to 25% in the previous year.
Net Income $237 million (compared to a net loss of $28 million in Q3 2023), including the sale of Chaupiloma Royalty Company.
Copper Production Decreased by 9% year-over-year, with El Brocal's production increasing due to higher estimated copper content from open pit transactional ore.
Silver Production 4.4 million ounces (up from 1.9 million ounces in Q3 2023), with 3.2 million ounces coming from Uchucchacua and Yumpag.
Gold Production Increased by 7% year-over-year, mainly due to increased output at Julcani and La Zanja.
CapEx $98 million (includes $77 million for the San Gabriel project), primarily for the mine's water dam and power line construction.
Cash Position $458 million with total debt of $675 million, achieving a net debt-to-EBITDA ratio of 0.5x, the lowest in years.
All-in Sustaining Costs (AISC) Reduced by 69% year-over-year, attributed to increased silver contribution from Uchucchacua and Yumpag.
Copper CAS Decreased due to an increase in volume processed, in line with the Q3 2023 figure.
Silver CAS Decreased year-over-year due to higher silver ounces from Uchucchacua and Yumpag, but increased quarter-over-quarter due to higher exploration expenses.
Gold CAS Increased year-over-year due to lower grades at Tambomayo and Orcopampa.
Free Cash Flow Increased during the quarter, driven by strong performance from El Brocal, Uchucchacua, Yumpag, and the sale of Chaupiloma.
Silver Production: Silver production reached 4.4 million ounces, a significant increase compared to 1.9 million ounces produced during the same period last year.
Gold Production: Gold production increased 7% year-over-year, mainly explained due to increased output at Julcani and La Zanja.
San Gabriel Project: San Gabriel project achieved 65% overall completion, with significant advancements in water dam and power line construction.
Chaupiloma Royalty Sale: Completed the sale of Chaupiloma Royalty Company to Franco-Nevada for $210 million.
EBITDA Growth: EBITDA from direct operations increased to $132 million, with a margin of 40%.
Cost Reduction: All-in sustaining costs reduced by 69% year-over-year, attributed to increased silver contribution.
Credit Rating Upgrade: Credit rating upgraded by Moody's to B1 with a positive outlook.
Debt Management: Achieved a net debt-to-EBITDA ratio of 0.5x, the lowest in years.
Operational Efficiency: Increased production from El Brocal, Yumpag, and Uchucchacua mines, contributing to operational improvements.
Copper Production Risk: Copper production decreased 9% year-over-year in the third quarter of 2023, indicating potential challenges in maintaining production levels.
Cost Structure Risk: Gold CAS has increased year-over-year, primarily driven by lower grades at Tambomayo and Orcopampa, which may affect profitability.
Project Completion Risk: The San Gabriel project, while progressing, requires close monitoring for the completion of pipeline works, which could impact timelines and costs.
Regulatory and Economic Factors: The company operates in a volatile economic environment, which may pose risks related to regulatory changes and market fluctuations.
Supply Chain Challenges: Increased costs at Uchucchacua and Yumpag related to ground support works indicate potential supply chain challenges affecting operational efficiency.
EBITDA from direct operations: Increased to $132 million in Q3 2024, driven by strong results from Yumpag and El Brocal.
Net income: Reached $237 million in Q3 2024, compared to a net loss of $28 million in Q3 2023.
CapEx: Totaled $98 million in Q3 2024, with $77 million allocated to the San Gabriel project.
San Gabriel project progress: Achieved 65% overall completion by Q3 2024, with significant advancements in water dam and power line construction.
Credit rating upgrade: Upgraded by Moody's to B1 with a positive outlook, citing operational improvements and cost efficiency.
Leverage ratio: Achieved a record low net debt-to-EBITDA ratio of 0.5x.
Future CapEx for San Gabriel: Total projected CapEx for the San Gabriel project is $650 million, with $250 million executed and $230 million committed.
Production targets: Uchucchacua and Yumpag are expected to maintain strong production levels, with El Brocal processing 100% of stockpile ore.
Cash position: Cash position reached $458 million, indicating strong liquidity.
Sale of Chaupiloma Royalty Company: Completed the sale of Chaupiloma Royalty Company to Franco-Nevada for $210 million during third quarter 2024.
The earnings call reveals mixed signals. Positive aspects include dividend resumption and a strong EBITDA increase. However, significant challenges such as decreased copper and gold production, increased costs, and a drop in net income create concerns. The San Gabriel project's near completion and expected breakeven are positives, but pending permits pose risks. The Q&A did not provide significant new insights or alleviate concerns. Given the market cap, the stock is likely to remain stable, resulting in a neutral sentiment prediction.
The earnings call highlights mixed signals: strong financial performance in Q1 2025, but production declines and increased costs in Q2 2025. The San Gabriel project shows promise, yet concerns arise due to unclear management responses and extended ramp-up timelines. Positive aspects include increased copper production and dividends from Cerro Verde. However, the market might react cautiously due to uncertainties in production and cost increases. Considering the company's market cap, these factors likely result in a neutral stock price movement.
The earnings report presents mixed signals: strong financial metrics with increased EBITDA and net income, but declining gold and copper production. The Q&A revealed concerns about CapEx overruns and unclear management responses, which may temper investor enthusiasm. Although the company has a strong cash position, increased debt and cost pressures could weigh on sentiment. Given the market cap, the stock price is likely to remain stable, resulting in a neutral sentiment prediction.
The earnings call highlights strong financial performance with increased EBITDA, net income, and a reduced net debt-to-EBITDA ratio. Despite a decrease in copper production, silver and gold production rose. Management's optimistic guidance for 2025 and efficient cost management positively influence sentiment. The Q&A section reveals some uncertainties, but the overall outlook is favorable. The market cap suggests moderate volatility, leading to a positive stock price prediction of 2% to 8% over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
