EM LATAM CREDIT: Peru's Buenaventura 1Q 2025 Earnings Beat: Neutral view
Cia. De Minas Buenaventura S.A.A (BUENAV; Ba3 /BB- /BB)
• Peru precious metal mining company Buenaventura reported better than expected revenues and net income while lower gold production was disappointing. Low leverage keeps credit profile intact.
• Revenues increased 25% and net income grew 128%, helped by an increase of about 40% in gold and silver prices. EBITDA including partially owned affiliates increased 35% to USD251mn.
• Gold production was down about 25% while silver production increased 28%.
• Capex increased 43% leading to negative cash flow generation excluding financing. The company issued 7-year notes that provided USD634mn net of issuance costs and repaid USD403mn in debt.
• Net debt increased USD64mn. Cash increased USD169mn while debt increased USD234mn. The company reported net debt leverage of .46x for the quarter.
• BUENAV 2032s issued at 7.1% YTM or T+268bps were last quoted 6.83% T+275bps, 33 bps wider MTD.
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