Peru's Buenaventura plans lower capex in 2025

Peruvian precious metals miner Buenaventura plans to invest between US$330mn and US$350mn this year, with about US$180mn going to the San Gabriel gold project. 

According to the company's 4Q24 results presentation, of the rest approximately US$135mn will be allocated to maintaining operations while some US$30mn will be assigned to growth. In addition to San Gabriel, Buenaventura has the Trapiche copper project, which is expected to receive a good part of the US$30mn.

Although the total is below 2024 capex of US$378mn, this is explained by the lower amount required to start up San Gabriel, which is 71% complete and is expected to produce its first gold bar by the end of 2025.

According to the company, engineering and procurement work is 100% complete, while construction and commissioning were at 63% and 3%, respectively, at the end of 2024.

The focus at San Gabriel this quarter is to finish construction of the waste landfill and the primary crusher. For Q2, the tailings dam, the machinery necessary for the leaching process, and the filtration and grinding plant are projected to be completed. Finally, for Q3, water dam construction, power lines and obtaining operating permits are expected to be concluded. 

Regarding the capex for maintaining operations, investments will be focused on three mines. "This includes US$125-140mn in sustaining capex which includes investments related to becoming a self-operator of the El Brocal, Uchucchacua, and Yumpag- mines, increasing efficiencies with reduced costs, as well as investment in mine development and tailing dams as expected," states the company's results report.

In 2024, Buenaventura produced 158,856oz of gold (down 9%), 14.7Moz of silver (up 85%), 18,536t of lead (up 96%), 27,686t of zinc (up 51%) and 119,580t of copper (down 3%), all on an equity basis.