Volcan Compania Minera S.A.A. Series B

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What it is

Volcan is a polymetallic mining company that explores and operates mining concessions in Peru, producing concentrates of zinc, gold, copper, lead and silver. It operates through six business units — Volcan, Chungar, Cerro, investments, energy and others — and holds interests in the Yauli, Animón, Alpamarca and Cerro mines, spread across the departments of Cerro de Pasco, Junín and Lima.

Volcan began mining operations as Volcan Mines in the heights of the Ticlio pass on January 26, 1943; the company changed its name to Volcan Compañía Minera S.A. in 1975, and again to its current form in 1998, after a merger with Empresa Minera Paragsha S.A. Zinc is the main revenue driver, and the company has set a target of surpassing 300,000 tonnes of refined zinc a year by 2027.

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Who owns it

Transition Metals AG, a subsidiary of the Argentine group Integra Capital, is the majority owner; in May 2024 it acquired 55% of the Class A voting shares that had previously belonged to Glencore. Through its Panamanian holding company, Integral Capital Business S.A., Transition Metals AG controls 63% of the Class A voting shares in circulation, though its total economic interest across both share classes is approximately 23.3%.

Both the ordinary Class A shares (with voting rights) and the Class B shares (without voting rights, ticker VOLCABC1) are listed on the Bolsa de Valores de Lima. Among the minority shareholders are Ignacio de Romaña Letts and Irene Letts Colmenares.

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Who runs it

The positions of Chairman of the Board and Chief Executive Officer are held separately, and the Board of Directors is composed of six members. Victoria Soyer serves as Chair of the Board (Presidenta del Directorio), having assumed the role in 2023.

Luis Herrera was designated as incoming CEO (Gerente General).

Board member Mallo, who joined in May 2024, holds a law degree from the Universidad Católica of Argentina and an LLM from Northwestern University, and has experience across energy and natural resources sectors in Latin America. The auditors signing the 2024 consolidated financial statements are Deloitte Peru (Velásquez, Loli y Asociados S.

Civil de R.L.).

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The money, in plain words

In 2024, Volcan brought in revenue of US$960.5 million, up 8.8% from the year before. Net profit swung from a loss of US$10.0 million in 2023 to a gain of US$137.1 million in 2024.

That means the company kept about 14 cents of profit from every dollar of sales — a net profit margin of roughly 14.3% (our calculation) — a healthy result for a metals miner operating high-altitude, capital-intensive underground mines.

The ratio of net debt to operating earnings improved significantly to 1.5 times, thanks to strong operating cash generation, rising cash balances and a US$59.3 million reduction in total debt through loan repayments. Total liabilities stood at US$1,391.2 million at December 2024.

The company carries no dividend; it is directing cash into debt reduction and mine development.

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What it is doing now

In May 2024, Glencore completed the off-market transfer of its shares to Transition Metals AG, a subsidiary of Integra Capital, marking a generational change in control. Also in 2024, the company sold two hydroelectric plants (Rucuy and Huanchor) and completed a full refinancing of its debt, extending its main syndicated loan to 2029.

Volcan also reached a milestone in mining technology by deploying Peru’s first fleet of autonomous CAT R1600H low-profile loaders at its Animón operations, in partnership with Ferreyros and Caterpillar. Mineral reserves grew 57.6% in 2024, driven by exploration results and the addition of the Romina Project to the reserve inventory.

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What to watch

• Romina Project: The company aims to surpass 300,000 tonnes of refined zinc annually by 2027, with the Romina project a central pillar of that growth. Progress on permits and construction is the key operational signal.
• Metal prices: Zinc and silver together account for most revenue; a sustained move in global zinc prices of even 10% would swing annual profit by tens of millions of dollars.
• Debt service: The syndicated loan has been refinanced to 2029, and the company exchanged 81.4% of its outstanding bonds during 2024. Quarterly amortisations are now scheduled through 2029; any slip in cash generation tightens that schedule.
• New ownership, new strategy: Integra Capital, through affiliates, has been active in lithium, rare earths, zinc and silver across Latin America. Whether Volcan becomes a platform for regional consolidation under its new Argentine owner is the longer-term strategic question.
• Regulatory and community risk: Peru’s environmental regulator OEFA has recorded 225 infractions against Volcan since 2010, mainly for exceeding permitted emissions limits. Ongoing community relations and permitting remain a live risk for any mine expansion.

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This is news, not investment advice.