Volcan Compañía Minera (VOLCABC1) Q2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2Q25, with net profit up 265.7% YoY, driven by higher production, stronger precious metal prices, and improved commercial terms.

• Sales after adjustments increased 33.0% YoY to USD 290.2 MM in 2Q25; EBITDA rose 28% YoY to USD 111.5 MM with a 38% margin.

• Gross margin improved by 10 percentage points YoY to 35% in 2Q25.

• Safety indicators were mixed: LTIFR increased due to 27 lost-time injuries, while DISR improved; "Volcan Seguro" safety system was launched.

• Net profit for 1H25 reached USD 72.5 MM, reversing a net loss of USD 8.8 MM in 1H24.

Financial highlights

• Net sales after adjustments for 1H25 were USD 568.0 MM, up 43.8% YoY; EBITDA for 1H25 was USD 223.2 MM, up 69.1%.

• Net margin in 2Q25 was 13%, up from 5% in 2Q24; gross profit in 2Q25 was USD 100.5 MM, up 87.0% YoY.

• Administrative expenses nearly doubled to USD 16.3 MM in 2Q25.

• Cash position doubled YoY to USD 146.8 MM; net debt reduced to USD 577.8 MM.

• Net Debt/EBITDA ratio improved to 1.2x as of June 30, 2025.

Outlook and guidance

• On track to meet 2025 production and cost guidance, with zinc, lead, silver, and gold output all increasing YoY.

• Sustaining capex for 2025 expected within USD 190–210 MM; growth and other capex at USD 60–70 MM.

• Romina Project progressing ahead of schedule, with commercial production targeted for 3Q26 and total capex of USD 110–130 MM (2023–2026).

• Ongoing hedging program for zinc and silver aims to mitigate price volatility through 2025–2026.

• New growth strategy includes exploration of high-potential projects in 2025.