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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:71Outperform
Price Target:
$38.00
▼(-7.61% Downside)
Action:ReiteratedDate:01/07/26
Overall score is driven by strong profitability and an improving technical trend (price above major moving averages with positive MACD). The score is tempered by weakening free cash flow and mixed earnings-call fundamentals, including lower production and net income despite higher EBITDA and near-completion of the San Gabriel project.
Positive Factors
High Profitability Margins
Sustained high EBIT and net margins indicate structurally efficient operations and pricing power in precious metals processing. Over 2–6 months this supports cash generation and reinvestment capacity, cushioning the company against cyclical commodity swings.
Conservative Leverage
Low debt-to-equity provides durable financial flexibility to fund capital projects, pay dividends, and absorb commodity volatility. This conservatism reduces refinancing risk and preserves ability to pursue opportunistic M&A or fund San Gabriel completion without stressing liquidity.
Permits and Project Pipeline
A new operating permit and San Gabriel at 96% progress are structural capacity drivers, increasing medium-term production optionality. Permitting and near-completion project delivery materially expand sustainable output and diversify cash flow sources.
Negative Factors
Declining Free Cash Flow
A meaningful FCF decline erodes the company’s ability to self-fund capex, dividends, or unexpected costs. If sustained, weaker FCF can force higher external financing or curtailed growth spending, limiting strategic flexibility over the next several quarters.
Material Production Drops
Large year-over-year volume declines materially weaken revenue resilience and increase reliance on metal prices to sustain earnings. Persistent output drops reduce operating leverage and could signal mine-specific issues or depletion risks affecting medium-term cash flows.
Gross Margin Deterioration
Worsening gross margins point to rising unit costs or lower ore grades; over months this compresses operating profitability unless offset by higher prices or efficiency gains. Margin pressure strains sustained high net margins and could force capital allocation trade-offs.
Compania de Minas Buenaventura SAA (BVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.80B
Dividend Yield1.45%
Average Volume (3M)1.56M
Price to Earnings (P/E)22.8
Beta (1Y)0.64
Revenue Growth27.42%
EPS Growth20.63%
CountryUS
Employees13,759
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)1.51
Shares Outstanding253,715,180
10 Day Avg. Volume1,214,195
30 Day Avg. Volume1,556,106
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.86
Price to Sales (P/S)2.53
P/FCF Ratio19.73
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue8.04
Enterprise Value/Gross Profit17.03
Enterprise Value/Ebitda18.48
Forecast
1Y Price Target
$42.00Price Target Upside2.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.19
Revenue Forecast (FY)$1.97B
Compania de Minas Buenaventura SAA Business Overview & Revenue Model
Company DescriptionCompañía de Minas Buenaventura S.A.A. engages in the exploration, mining development, processing, and trading of precious and base metals. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company also owns interests in Colquijirca, La Zanja, Yanacocha, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces manganese sulphate monohydrate and other by-products generated from minerals; and operates hydroelectric power plants. The company was incorporated in 1953 and is based in Lima, Peru.
How the Company Makes MoneyCompania de Minas Buenaventura generates revenue primarily through the sale of gold and silver, which are its main products. The company operates both its own mines and joint ventures with other mining firms, allowing it to diversify its income sources. Revenue is driven by the production volume of precious metals, which is influenced by market prices, operational efficiency, and production costs. Additionally, Buenaventura benefits from strategic partnerships and joint ventures that enable shared resources and risk mitigation. The company also engages in metal trading and may earn revenues from processing ores for third parties, further contributing to its earnings.
Compania de Minas Buenaventura SAA Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presented a mix of meaningful financial strength (very large reported net income increase, solid cash position, dividend increases, San Gabriel nearly complete and initial production achieved, and attractive 2026 revenue/EBITDA guidance under certain metal price assumptions) alongside material operational and cost challenges (production declines in copper and gold, substantial quarter cost spikes, ventilation and ramp-up issues at San Gabriel, and higher-than-expected CapEx). The positives support balance-sheet robustness and shareholder returns, while the operational headwinds and cost volatility temper near-term operational outlook and create execution risk during ramp-up.Q4-2025 Updates
Positive Updates
Strong Net Income and Cash Position
Net income for full year 2025 was $1,830,000,000 versus $416,000,000 in 2024 (≈+340% YoY). Year-end cash position of $530,000,000 and total debt of $710,000,000, yielding a leverage ratio of 0.22x.
Dividend Policy and Payouts
Board approved a dividend of $0.9904 per share; total dividends declared over the past 12 months reached $1.0135 per ADS. Company plans to pay 40% of 2025 net income as dividends (above minimum 20% policy). Cerro Verde dividends attributable to the company: $98,000,000 received (post-quarter), and management expects ~$200,000,000 from Cerro Verde in 2026 (scheduling cited: $100M received in January, $50M in July, $50M in Q4).
San Gabriel Nears Completion and Early Production Milestone
San Gabriel overall progress at 99% completion; CapEx in 2025 for the project was $153,000,000. Produced first doré bar in December 2025 and received initial operating permit; water license expected imminently. Key plant mechanical works (primary crusher, SAG/ball, sealed tanks) reported at 100% and filtered tailings plant complete.
Operational Stability at Core Mines and Affiliate Performance
Management highlighted consistent copper and silver output supported by steady operations at El Brocal, Uchucchacua, and Yumpa. Coimolache operating at full capacity and Cerro Verde delivered dividends (supporting affiliate cash generation).
Guidance and Financial Outlook for 2026
Management provided revenue and EBITDA sensitivity guidance assuming prices of $4,500/oz gold, $70/oz silver, $12,000/t copper: revenue range $1.8B–$2.0B and EBITDA $800M–$1,000M for 2026. 2026 growth CapEx expected $185M–$195M (≈$160M allocated to San Gabriel) and sustaining CapEx $200M–$220M; total 2025 CapEx guidance reiterated at $385M–$415M.
Free Cash Flow Generation and Capital Discipline
Fourth quarter cash position increased driven by net cash inflows from operating activities. Company emphasized strong cash flow generation, solid balance sheet, and disciplined capital allocation enabling returns to shareholders.
Negative Updates
Declines in Key Production Metrics
Copper production for full year 2025: 52,400 tons, down 8% YoY. Gold production: 121,000 ounces, down 18% YoY (lower output at Orcopampa and Tambomayo consistent with planned mining sequence).
Rising Costs Across Metals
Copper cash costs increased in 2025 driven by higher personnel costs (linked to profitability), increased cement consumption, and foreign exchange impacts at El Brocal. Silver cash costs increased due to higher commercial deductions at Yumpa, non-payable value, and escalator clauses; gold cash costs rose due to lower throughput and reduced scale efficiency at Orcopampa and Tambomayo.
Sharp Increase in Cost Applicable to Sales (Quarterly Spike)
Management cited a 616% rise in cost applicable to sales in the quarter at Yumpa/Uchucchacua. Drivers include larger throughput of lower-grade material, greater commercial deductions (lower payable percentages for low-grade silver concentrates—~60–70% payable vs ~90–95% at higher grades), increased non-payable value, and application of price escalator clauses due to sharp silver price appreciation.
San Gabriel Ramp-up Challenges and Safety Incident Impact
Ramp-up at San Gabriel affected by a late-December accident that required redesigning the ventilation sequence and tripling air pressure needs. As a result, mining flexibility reduced (from expected six galleries to three), which lowers mined grades in 2026 and contributed to reduced 2026 production guidance. Additional earthworks and water-system fixes (exacerbated by rainy season testing) required extra work and CapEx.
Higher-than-Expected CapEx and Revised Ramp-up Guidance
CapEx guidance increased materially versus prior sell-side/Investor Day expectations. Management attributes additional spend mainly to San Gabriel earthworks, contract adjustments and ramp-up readiness; growth CapEx for 2026 $185M–$195M (≈$160M to San Gabriel). Company lowered near-term production guidance for San Gabriel (targeting 2,000 tpd stable throughput in 2026 rather than immediate higher throughput).
Uncertainty on Asset Sales and Project Timelines
Strategic review of Orcopampa, Tambomayo, and Julcani continues; potential asset sale processes are under consideration but delayed or re-evaluated given higher precious metal prices. Permitting items remain (San Gabriel water permit pending; expected in weeks) and other project studies (e.g., Coimolache, Cañariaco sulfides conceptual study) are ongoing with timing in H1/early periods but not firmly finalized.
Inconsistent/Conflicting Reported Figures
Transcript reports EBITDA from direct operations in 2025 as $112,000,000 and states this represents an 88% increase versus $431,500,000 in 2024—an internal inconsistency (the numbers do not mathematically support the stated percentage change), creating ambiguity around underlying operating profitability trends.
Company Guidance
Guidance highlights: San Gabriel is entering ramp‑up after reaching ~99% completion with primary crusher, SAG and ball mills and sealed tanks at 100% and the filtered tailings plant complete; first doré produced and initial operating permit received, water license pending, and the company expects a stable 2,000 tpd throughput in 2026 (with a 3,000 tpd design target thereafter). Capital spending guidance is $385–415M for 2025 (sustaining CapEx $200–220M) and growth CapEx $185–195M for 2026 (about $160M of that tied to San Gabriel); G&A is guided at $60–70M and exploration at $90–100M (operating $60–70M; greenfield $20–30M). Production and financial anchors: FY2025 copper 52,400 t (‑8% y/y), silver 15.6M oz (+1%), gold 121,000 oz (‑18%); 2026 gold guidance ~48,055 oz alongside the San Gabriel ramp; FY2025 direct‑ops EBITDA reported $112M, net income $1.83B, year‑end cash $530M, debt $710M (leverage 0.22x). Shareholder returns and cash flow: Cerro Verde dividends of ~ $200M expected in 2026 (already $100M received in Jan, $50M expected in July and $50M in Q4), board approved $0.9904/share dividend (total last‑12‑month ADS dividends $1.0135) and approved a 40% payout of 2025 net income; at price assumptions of $4,500/oz gold, $70/oz silver and $12,000/t copper management expects revenues of $1.8–2.0B and EBITDA of $800–1,000M. Cost trends: copper, silver and gold cash costs are up due to higher personnel, cement and FX impacts, increased commercial deductions/non‑payable values/escalators, and lower throughput in some mines.Compania de Minas Buenaventura SAA Financial Statement Overview
Summary
Strong profitability (net margin 38.34%, EBIT margin 43.61%) and positive TTM revenue growth (+7.68%) support the score, and leverage is conservative (debt-to-equity 0.24). Offsetting this, free cash flow declined meaningfully (-27.23%) and gross margin deterioration suggests some cost pressure.Income Statement
The company shows strong revenue growth with a 7.68% increase in TTM, supported by robust net profit and EBIT margins of 38.34% and 43.61%, respectively. However, the gross profit margin has decreased compared to the previous year, indicating potential cost pressures.78
Positive
Balance Sheet
The balance sheet is stable with a low debt-to-equity ratio of 0.24, indicating conservative leverage. Return on equity is healthy at 14.63%, reflecting efficient use of equity. However, the equity ratio is not explicitly provided, which could provide further insights into asset financing.72
Positive
Cash Flow
Operating cash flow is strong with a coverage ratio of 1.34, indicating good cash generation relative to net income. However, free cash flow has declined significantly by 27.23%, which could impact future investments or debt repayments.65
Positive
| Breakdown | TTM | Dec 2023 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.41B | 1.15B | 823.85M | 824.80M | 900.45M | 676.54M |
| Gross Profit | 664.83M | 563.13M | 91.25M | 61.33M | 87.34M | 23.93M |
| EBITDA | 612.41M | 599.21M | 173.71M | 170.98M | 158.04M | -30.21M |
| Net Income | 432.45M | 402.69M | 19.86M | 602.55M | -264.07M | -135.72M |
Balance Sheet | ||||||
| Total Assets | 5.45B | 5.05B | 4.53B | 4.50B | 4.56B | 3.98B |
| Cash, Cash Equivalents and Short-Term Investments | 485.73M | 478.44M | 219.79M | 253.92M | 377.00M | 235.45M |
| Total Debt | 710.63M | 626.78M | 706.58M | 738.53M | 1.11B | 572.36M |
| Total Liabilities | 1.55B | 1.49B | 1.36B | 1.34B | 2.02B | 1.18B |
| Stockholders Equity | 3.72B | 3.39B | 3.01B | 3.01B | 2.37B | 2.63B |
Cash Flow | ||||||
| Free Cash Flow | 96.21M | 148.32M | -11.64M | -110.31M | -323.80M | 70.89M |
| Operating Cash Flow | 521.53M | 486.06M | 227.03M | 41.67M | -233.50M | 142.43M |
| Investing Cash Flow | -429.84M | -117.92M | -205.54M | 205.75M | -86.29M | -62.22M |
| Financing Cash Flow | -63.82M | -109.49M | -55.62M | -370.50M | 461.33M | -35.26M |
Compania de Minas Buenaventura SAA Technical Analysis
Positive
41.13
Price Trends
34.37
Positive
29.19
Positive
23.46
Positive
Market Momentum
1.48
Negative
66.17
Neutral
80.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BVN, the sentiment is Positive. The current price of 41.13 is above the 20-day moving average (MA) of 37.83, above the 50-day MA of 34.37, and above the 200-day MA of 23.46, indicating a bullish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 66.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $13.49B | 16.92 | 32.05% | 0.87% | 29.08% | 72.12% | |
76 Outperform | $15.91B | 26.71 | 26.41% | ― | 72.94% | ― | |
71 Outperform | $9.80B | 22.79 | 12.35% | 1.45% | 27.42% | 20.63% | |
66 Neutral | $15.85B | 48.26 | 13.89% | 0.07% | 45.61% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $1.04B | -121.01 | -1.14% | ― | 86.30% | 74.16% | |
49 Neutral | $11.32B | -41.46 | -12.14% | ― | 6.27% | 93.14% |
* Basic Materials Sector Average
BVN
Compania de Minas Buenaventura SAA
41.13
28.70
230.76%
CDE
Coeur Mining
26.56
21.41
415.73%
HMY
Harmony Gold Mining
22.55
12.70
128.89%
HL
Hecla Mining Company
24.54
19.42
379.30%
SBSW
Sibanye Stillwater
17.00
13.81
432.92%
GROY
Gold Royalty
4.72
3.36
247.06%
Compania de Minas Buenaventura SAA Corporate Events
Buenaventura Announces Acquisition Plans for El Brocal Shares
Dec 12, 2025
On December 5, 2025, Compañía de Minas Buenaventura S.A.A. announced its intention to acquire up to 1.5% of the share capital of Sociedad Minera El Brocal S.A.A. The company plans to execute these acquisitions depending on market conditions, which may occur on one or multiple dates. This strategic move is likely aimed at strengthening Buenaventura’s position in the mining industry and could have implications for its market influence and stakeholder interests.
The most recent analyst rating on (BVN) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Compania de Minas Buenaventura SAA stock, see the BVN Stock Forecast page.
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.