BVN · Compañía de Minas Buenaventura S.A.A.

Cost of sales pressures emerged from specific operational dynamics. At Colquijirca, lower ore grades necessitated higher consumption of supplies to sustain extraction and production levels comparable to prior periods, driving up costs. Similarly, at Rio Seco, the ramp-up in manganese sulfate production and sales volumes contributed significantly to the overall increase. These factors highlight the company's focus on maintaining output amid geological variability, with costs allocated across minerals based on their commercial value—realized prices multiplied by volumes sold—ensuring fair attribution in standalone unit accounts.

Offsetting these pressures, depreciation and amortization declined, primarily due to updated reserves extending the life-of-mine (LOM) at major units including Colquijirca and Tambomayo. This adjustment reduced unit depreciation rates under production-based methodologies, though partially tempered by a shorter LOM at Julcani. The net effect preserved margins and supported profitability, demonstrating effective reserve management and its direct impact on non-cash expenses.

Looking ahead, Buenaventura's management continues to monitor macroeconomic and geopolitical uncertainties that could influence commodity prices and operational costs. Potential adjustments to business plans remain possible, reflecting adaptability in a volatile mining sector. Overall, these dynamics affirm the company's strategy of leveraging core assets and associates to generate value for investors.