Yumpag Silver Surge Lifts Buenaventura as San Gabriel Gold Lags
Buenaventura has raised its 2026 silver production guidance after a strong second quarter at its Yumpag mine, though operational constraints at the San Gabriel gold project will cap near-term gold revenues.
Compañía de Minas Buenaventura S.A.A. produced 2.32 million ounces of silver at its Yumpag mine in the second quarter of 2026, prompting the Peruvian miner to significantly raise its full-year guidance for the metal. The underground operation accounted for roughly two-thirds of the company's consolidated silver output, which totaled between 3.52 million and 3.62 million ounces. Meanwhile, the company's San Gabriel gold project recorded its first sales volumes but cut its annual output forecast due to technical constraints.
Yumpag has quickly become "the crown jewel" of Buenaventura's silver strategy, validating a capital programme totalling between $114 million and $144 million. Built to replace depleting reserves at the neighbouring Uchucchacua mine, the asset has consistently exceeded expectations since receiving its initial operating permit in March 2024. In response to the sustained outperformance, the company lifted its 2026 silver guidance for the mine to between 8.5 million and 9.0 million ounces, up sharply from earlier targets of 6.5 million to 7.2 million ounces.
Regulators have rewarded this operational momentum. Buenaventura recently secured approval to increase Yumpag's mining rate from 1,000 to 1,200 tonnes per day, signalling a constructive relationship with Peru's Ministry of Energy and Mines. For foreign capital assessing jurisdictional risk in the world's third-largest silver-producing nation, the swift permit expansion is a tangible positive.
The gold segment presents a more cautious narrative. San Gabriel entered its ramp-up phase in the first quarter, producing 1,700 ounces of gold before commercialising output in the second quarter. However, Buenaventura slashed its 2026 gold guidance for the project to between 25,000 and 30,000 ounces, blaming tailings-management constraints and metallurgical recovery rates that sit below design specifications.
This downgrade is significant for investors because San Gabriel has already absorbed roughly $430 million in capital and missed its original target to reach commercial production in the second half of 2025. Steady-state output of 100,000 to 120,000 ounces annually now appears further away. While strong silver volumes and favourable mid-2026 prices should drive margin expansion across the portfolio, San Gabriel's technical hurdles will limit the group's near-term gold earnings.
