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Compania de Minas Buenaventura SAA (BVN)
NYSE:BVN
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Compania de Minas Buenaventura SAA
(NYSE:BVN)
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Rating:77Outperform
Price Target:
$26.00
▲(13.54% Upside)
Compania de Minas Buenaventura SAA demonstrates strong financial performance with robust revenue growth and profitability. Technical analysis indicates a positive trend, while valuation metrics suggest the stock is fairly valued. The earnings call provided a balanced view with significant strengths in EBITDA growth and project progress, though offset by production challenges. Overall, the stock is well-positioned with a solid financial foundation and growth potential.
Compania de Minas Buenaventura SAA (BVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.39B
Dividend Yield1.28%
Average Volume (3M)1.52M
Price to Earnings (P/E)13.0
Beta (1Y)0.74
Revenue Growth32.68%
EPS Growth433.03%
CountryUS
Employees13,759
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.36
Shares Outstanding253,715,180
10 Day Avg. Volume1,616,571
30 Day Avg. Volume1,517,235
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue3.52
Enterprise Value/Gross Profit8.47
Enterprise Value/Ebitda6.55
Forecast
1Y Price Target
$26.33Price Target Upside14.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Compania de Minas Buenaventura SAA Business Overview & Revenue Model
Company DescriptionCompania de Minas Buenaventura SAA (BVN) is a leading Peruvian mining company primarily engaged in the exploration, extraction, and processing of precious metals, including gold and silver. Founded in 1953, the company operates several mining projects in Peru and has a diverse portfolio that includes both wholly-owned and joint venture operations. BVN is involved in various sectors of the mining industry, focusing on sustainable practices and contributing to local economies through employment and community development.
How the Company Makes MoneyCompania de Minas Buenaventura generates revenue primarily through the sale of gold and silver, which are its core products. The company operates several mines and has a diverse asset portfolio, including operating mines, development projects, and exploration initiatives. Revenue is primarily derived from the extraction and processing of these metals, which are then sold in international markets. The company also benefits from strategic partnerships and joint ventures with other mining entities, enhancing its operational efficiency and market reach. Fluctuations in global metal prices, production volumes, and operational costs are significant factors affecting its earnings. Additionally, Buenaventura engages in metal trading and may have revenues from by-products and exploration services, contributing to its overall financial performance.
Compania de Minas Buenaventura SAA Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with several positive developments such as increased EBITDA, growth in copper production, and progress on the San Gabriel project. However, there were also challenges including decreased silver and gold production, increased costs, and operational issues at Uchucchacua. The sentiment is balanced as the highlights and lowlights are equally impactful.Q2-2025 Updates
Positive Updates
Increase in EBITDA and Net Income
EBITDA for Q2 2025 was $130 million, up from $107 million in Q2 2024. Net income increased to $91 million from $71 million in the same period last year.
Copper Production Growth
Copper production rose by 28% year-over-year, primarily due to resumed operations at El Brocal.
Cerro Verde Copper Concentrate Sales
Initiated the sale of 20,000 metric tonnes of Cerro Verde's copper concentrate, expected to sell 40,000 metric tonnes in total for 2025.
San Gabriel Project Progress
San Gabriel project reached 88% completion, with plans to start ramp-up in Q3 2025 and produce the first gold bar in Q4 2025.
Cerro Verde Dividend
Cerro Verde announced a dividend distribution of $59 million, contributing to a total of $108 million for Buenaventura.
Cash Position and Debt Management
Ended Q2 2025 with a cash position of $589 million and a leverage ratio of 0.56x. Redeemed remaining $149 million of 2026 bond.
Negative Updates
Decrease in Silver and Gold Production
Silver production decreased by 11% to 3.6 million ounces, and gold production decreased to 27,345 ounces from 33,819 ounces year-over-year.
Increased All-in Sustaining Costs
All-in sustaining cost for copper increased by 63% year-over-year, driven by lower by-product credits.
Operational Challenges at Uchucchacua
Faced seismic activity affecting production, with a plan to stabilize by Q4 2025.
Constraints on Tailings Management at San Gabriel
The narrow V-shaped valley for tailings may delay reaching full capacity until the second half of 2026.
Company Guidance
In the second quarter of 2025, Compañía de Minas Buenaventura reported a strong financial performance, with EBITDA from direct operations reaching $130 million, up from $107 million in the same quarter of 2024. The company also saw an increase in net income, rising to $91 million compared to $71 million in the prior year. Despite a 11% decrease in silver production to 3.6 million ounces, copper production surged by 28% year-over-year. Gold production, however, fell to 27,345 ounces from 33,819 ounces in the prior year. Buenaventura initiated the sale of 20,000 metric tonnes of Cerro Verde's copper concentrate and anticipates selling a total of 40,000 metric tonnes for the full year. A new dividend distribution of $59 million was announced for Cerro Verde, contributing to a total of $108 million for Buenaventura. Total CapEx for the quarter was $107 million, with $82 million allocated to the San Gabriel project, which has reached 88% completion. The quarter ended with a cash position of $589 million and a total debt of $860 million, resulting in a leverage ratio of 0.56x.Compania de Minas Buenaventura SAA Financial Statement Overview
Summary
Compania de Minas Buenaventura SAA exhibits robust financial health with strong revenue growth, profitability, and efficient cash flow management. While the balance sheet shows low leverage, the relatively high debt levels require careful management. Overall, the company is in a strong financial position with positive growth trajectories and operational efficiencies.Income Statement
The company's income statement shows strong revenue growth with a TTM revenue increase of 13.62% over the previous year. Gross profit margin for the TTM is robust at 41.56%, indicating efficient cost management. The net profit margin also improved significantly to 38.34%, showcasing enhanced profitability. Both EBIT and EBITDA margins are high at 39.53% and 53.69% respectively, reflecting strong operational efficiency and profitability.85
Very Positive
Balance Sheet
The balance sheet indicates a healthy financial position with a debt-to-equity ratio of 0.24, suggesting low leverage and financial risk. The equity ratio stands at 65.67%, illustrating a strong equity base. ROE is impressive at 14.17% for the TTM, reflecting effective utilization of equity capital. However, the high total debt figure could pose potential risks if not managed carefully.78
Positive
Cash Flow
Cash flow analysis shows a solid operating cash flow to net income ratio of 1.03, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.26, suggesting positive but moderate free cash flow generation. The free cash flow growth rate is substantial at 10.38% over the last annual period, indicating an improving cash flow situation.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.31B | 1.15B | 823.85M | 824.80M | 900.45M | 676.54M |
| Gross Profit | 545.32M | 563.13M | 91.25M | 61.33M | 87.34M | 23.93M |
| EBITDA | 704.42M | 599.21M | 173.71M | 178.97M | 101.62M | 103.77M |
| Net Income | 502.90M | 402.69M | 19.86M | 124.39M | 124.80M | -155.75M |
Balance Sheet | ||||||
| Total Assets | 5.40B | 5.05B | 4.53B | 4.50B | 4.56B | 3.98B |
| Cash, Cash Equivalents and Short-Term Investments | 588.54M | 478.44M | 219.79M | 253.92M | 377.00M | 235.45M |
| Total Debt | 860.23M | 626.78M | 706.58M | 703.46M | 928.56M | 572.36M |
| Total Liabilities | 1.68B | 1.49B | 1.36B | 1.34B | 2.02B | 1.18B |
| Stockholders Equity | 3.55B | 3.39B | 3.01B | 3.01B | 2.37B | 2.63B |
Cash Flow | ||||||
| Free Cash Flow | 132.20M | 148.32M | -11.60M | -110.31M | -287.82M | 70.89M |
| Operating Cash Flow | 515.77M | 486.06M | 227.07M | 41.67M | -197.51M | 142.43M |
| Investing Cash Flow | -176.02M | -117.92M | -205.54M | 205.75M | -86.29M | -62.22M |
| Financing Cash Flow | 77.99M | -109.49M | -55.66M | -370.50M | 425.35M | -35.26M |
Compania de Minas Buenaventura SAA Technical Analysis
Neutral
22.90
Price Trends
21.66
Positive
19.29
Positive
16.52
Positive
Market Momentum
0.80
Positive
45.59
Neutral
27.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BVN, the sentiment is Neutral. The current price of 22.9 is below the 20-day moving average (MA) of 24.71, above the 50-day MA of 21.66, and above the 200-day MA of 16.52, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 27.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BVN.
Compania de Minas Buenaventura SAA Risk Analysis
Compania de Minas Buenaventura SAA disclosed 42 risk factors in its most recent earnings report. Compania de Minas Buenaventura SAA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Compania de Minas Buenaventura SAA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.52B | 14.12 | 32.05% | 1.17% | 29.08% | 70.63% | |
77 Outperform | $6.39B | 12.95 | 15.22% | 1.28% | 32.68% | 433.03% | |
74 Outperform | $11.88B | 48.67 | 9.88% | ― | 68.88% | ― | |
70 Outperform | $8.58B | 81.85 | 4.67% | 0.19% | 36.30% | ― | |
63 Neutral | $606.02M | ― | -0.33% | ― | 90.37% | 94.00% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $7.32B | ― | -8.31% | ― | 6.27% | 93.14% |
* Basic Materials Sector Average
BVN
Compania de Minas Buenaventura SAA
22.90
9.64
72.70%
CDE
Coeur Mining
18.98
11.87
166.95%
HMY
Harmony Gold Mining
17.82
6.34
55.23%
HL
Hecla Mining Company
12.99
6.04
86.91%
SBSW
Sibanye Stillwater
10.96
6.00
120.97%
GROY
Gold Royalty
3.54
2.04
136.00%
Compania de Minas Buenaventura SAA Corporate Events
Buenaventura Reports Strong Q3 2025 Metal Production
Oct 17, 2025
On October 16, 2025, Buenaventura announced its third-quarter results for 2025, detailing production and sales volumes for various metals. The company reported significant production figures across its mining operations, including gold, silver, lead, zinc, and copper. These results highlight Buenaventura’s robust operational performance and its strategic positioning in the mining industry, potentially impacting stakeholders by reinforcing its market presence and operational efficiency.
Buenaventura Completes Redemption of 2026 Senior Notes
Jul 30, 2025
On July 23, 2025, Compañía de Minas Buenaventura S.A.A. successfully completed the redemption of its ‘5.500% Senior Notes due 2026,’ which were issued under Rule 144A and Regulation S of the U.S. Securities Act of 1933. This redemption marks a significant financial event for the company, potentially impacting its debt structure and financial strategy moving forward.
Buenaventura Reports Strong Q2 2025 Financial Results Amid Production Changes
Jul 25, 2025
On July 24, 2025, Buenaventura announced its financial results for the second quarter of 2025, showcasing a substantial increase in EBITDA and net income compared to the previous year. The company reported a 28% rise in copper production due to resumed operations at El Brocal, while silver production decreased by 11%. Buenaventura also redeemed its 2026 notes and began commercializing Cerro Verde’s copper concentrate, reflecting strategic financial management and operational adjustments.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.