Volcan Compañía Minera (VOLCABC1) Q3 2024 earnings summary

Executive summary

• Achieved significant improvement in safety strategy, including the launch of the SSOMAC Management System and enhanced contractor evaluations in August 2024.

• Net income for the nine months ended September 30, 2024 was $30.3 million, a significant turnaround from a net loss of $10.9 million in the same period last year.

• Total comprehensive income reached $115.9 million for the nine months, driven by strong operating results and unrealized gains.

• Major asset sales included Hidroeléctrica Huanchor S.A.C. and Empresa de Generación Energética Rio Baños S.A.C., generating significant cash inflows.

• Focused on cost management, resulting in a 3.1% reduction in unitary costs year-over-year for 3Q24.

Financial highlights

• 3Q24 sales after adjustments reached USD 274.8 MM, up 19.6% compared to 3Q23.

• EBITDA for 3Q24 was USD 123.6 MM, a 43.4% increase year-over-year.

• Operating income for 3Q24 was USD 73.8 MM, more than double the USD 32.5 MM in 3Q23.

• Net income for Q3 2024 was $39.2 million, compared to $0.1 million in Q3 2023.

• Gross margin improved to 34% in 3Q24 from 20% in 3Q23.

Outlook and guidance

• Annual capex guidance maintained at USD 170–180 MM.

• Romina Project progressing, with start-up expected by end of H1 2026 and total investment of USD 130–140 MM in 2025.

• The spin-off of a 40% stake in Cosco Shipping Ports Chancay Perú S.A. is expected to be completed in 2024.