Volcan Compañía Minera (VOLCABC1) Q4 2025 earnings summary

Executive summary

• Achieved net sales of USD 1,180.7M in 2025, up from USD 960.5M in 2024, with net income rising to USD 208.6M from USD 137.1M year-over-year.

• Adjusted EBITDA for 2025 rose 17.9% YoY to USD 450.1M, with a margin of 38%.

• Comprehensive income for 2025 was USD 83.9M, down from USD 196.7M in 2024 due to unrealized losses on derivatives and investments.

• Safety indicators improved, with LTIFR down and event severity under control.

• Major refinancing activities included a USD 750M bond issuance at 8.5% due 2032, repaying prior notes and syndicated loans, and strengthening liquidity.

Financial highlights

• Net sales for 2025 grew 22.9% YoY to USD 1,180.7M, driven by higher silver and zinc prices and volumes.

• Gross margin improved to 38% for 2025, up from 27% in 2024.

• Operating profit reached USD 406.8M, up from USD 290.5M year-over-year.

• Cash position at year-end 2025 was USD 330.1M, up from USD 155.8M in 2024.

• Net debt reduced to USD 549.1M, with Net Debt/EBITDA ratio improving to 1.1x.

Outlook and guidance

• 2026 production guidance: zinc 275-290k FMT, lead 65-75k FMT, copper 3-4k FMT, silver 13.5-14.5M oz, gold 10-15k oz.

• Unit cost guidance for 2026: USD 60-65/MT.

• Sustaining capex for 2026 expected at USD 200-215M.

• Romina project on track for commercial operations in late 2Q26, with residual funds from refinancing earmarked for its completion.

• Management expects sufficient liquidity to meet obligations, supported by strong operating cash flows and recent refinancing.