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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:73Outperform
Price Target:
$34.00
▲(12.25% Upside)
Action:ReiteratedDate:03/07/26
The score is driven primarily by solid financial strength (high recent profitability and improved leverage) and attractive valuation (low P/E). These positives are moderated by cash-flow conversion/FCF weakness and a mixed earnings-call outlook with material ramp-up, cost, and CapEx execution risk; technicals add a modest near-term caution.
Positive Factors
Conservative balance sheet & improved returns
Buenaventura's materially lower leverage and a rebuilt equity base provide durable financial flexibility to fund sustaining and growth capex, absorb metal price swings, and support dividends. Improved ROE signals better capital efficiency versus recent troughs, reducing solvency risk over the next 2-6 months.
Affiliate cash inflows & shareholder payout framework
Recurring affiliate distributions (Cerro Verde) plus a formal payout (40% of 2025 net income) provide a structural layer of cash available for returns and capital allocation. This diversification of cash sources supports sustainable shareholder returns and lowers reliance on spot metal sales for distributions.
San Gabriel near completion and first production
Bringing San Gabriel into operation is a structural capacity increase that, once stabilized, should add steady metal output and revenue diversification. With core plant mechanical works complete and initial production achieved, the asset transitions from build to production and underpins medium‑term growth assumptions.
Negative Factors
Weak free cash flow conversion
Despite large reported net income, modest free cash flow implies earnings quality issues and significant reinvestment or working capital needs. Lower FCF relative to profits constrains organic funding for growth and shareholder returns, increasing sensitivity to operational or price setbacks over coming quarters.
Declining production at key mines
Material year‑over‑year declines in gold and copper output reflect sequencing and throughput issues that reduce the firm's revenue base and operating leverage. Persisting production decline increases dependence on affiliate dividends and new projects to sustain earnings, raising medium‑term execution and price risk.
San Gabriel ramp-up execution & higher capex
Operational setbacks at San Gabriel have required design changes, extra earthworks and higher-than-expected CapEx, delaying throughput targets and lowering near-term mined grades. Execution and permitting risk during ramp-up threaten projected incremental production and cash generation in the next 2-6 months.
Compania de Minas Buenaventura SAA (BVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.68B
Dividend Yield1.45%
Average Volume (3M)1.68M
Price to Earnings (P/E)9.0
Beta (1Y)0.80
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. Volume2,013,474
30 Day Avg. Volume1,675,021
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.74
Price to Sales (P/S)4.06
P/FCF Ratio67.34
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue4.74
Enterprise Value/Gross Profit9.76
Enterprise Value/Ebitda9.79
Forecast
1Y Price Target
$44.00Price Target Upside45.26% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.53
Revenue Forecast (FY)$2.16B
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 MoneyBuenaventura generates revenue primarily from the sale of mineral production from its mining operations. Its main revenue streams are (1) sales of gold and silver produced at its operating mines, typically sold as doré bars or as metal contained in concentrates depending on the operation, and (2) sales of base metals (such as copper, lead, and zinc) when produced, commonly sold as concentrates. Realized revenue depends on volumes produced and sold, prevailing commodity prices, and commercial terms that can include treatment and refining charges, payability terms, and penalties typically associated with concentrate sales. In addition to revenue from its own operations, the company can earn income from equity interests in other mining assets and companies (for example via dividends, share of results, or gains/losses from such holdings), though the significance of these contributions varies by period and is dependent on the performance and accounting treatment of those investments. Profitability is also influenced by operating costs, sustaining and growth capital expenditures, ore grades and recoveries, and regulatory and royalty/tax frameworks applicable to mining in Peru.
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 recent upcycle with rapid revenue growth and very high 2025 margins, plus a healthier leverage profile (low debt-to-equity and improved ROE). Offsets are pronounced cyclicality in past profitability and weaker earnings-to-free-cash-flow conversion (FCF modest vs net income and down YoY).Income Statement
BVN shows a strong earnings rebound and accelerating top-line momentum. Annual revenue rose to ~$1.74B in 2025 (+23.7% YoY) from ~$1.15B in 2024, and profitability is currently very strong (2025 net margin ~45% and EBIT margin ~36%). However, results have been volatile across the cycle (losses in 2020–2021 and very weak profitability in 2023), and the 2022 profit spike looks inconsistent versus weaker operating profitability that year, suggesting earnings can be heavily influenced by non-operating factors.78
Positive
Balance Sheet
The balance sheet looks conservatively levered with improving resilience: debt-to-equity is low in 2024–2025 (~0.18 and ~0.17), down substantially from 2021 (~0.47). Equity has expanded meaningfully (to ~$4.06B in 2025), and returns on equity improved to ~19% in 2025 from ~12% in 2024. The key weakness is cyclicality in returns (near-zero ROE in 2023 and negative in 2020–2021), which highlights sensitivity to commodity/operating conditions despite the healthier leverage profile today.82
Very Positive
Cash Flow
Cash generation is positive but not as strong as reported earnings. Operating cash flow improved to ~$581M in 2025 (vs ~$486M in 2024), but free cash flow declined to ~$105M in 2025 (from ~$148M in 2024). Free cash flow is modest relative to net income (about 18% in 2025 and ~31% in 2024), implying earnings quality and/or reinvestment needs are meaningful. Positives include a return to consistently positive operating cash flow in 2023–2025 versus the negative operating cash flow seen in 2021, though free cash flow has been negative in multiple earlier years (2021–2023, 2022 notably).64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.74B | 1.15B | 823.85M | 824.80M | 900.45M |
| Gross Profit | 748.88M | 563.13M | 91.25M | 61.33M | 87.34M |
| EBITDA | 767.86M | 599.21M | 173.71M | 170.98M | 158.04M |
| Net Income | 787.05M | 402.69M | 19.86M | 602.55M | -264.07M |
Balance Sheet | |||||
| Total Assets | 6.02B | 5.05B | 4.53B | 4.50B | 4.56B |
| Cash, Cash Equivalents and Short-Term Investments | 529.84M | 478.44M | 219.79M | 253.92M | 377.00M |
| Total Debt | 709.67M | 626.78M | 706.58M | 738.53M | 1.11B |
| Total Liabilities | 1.76B | 1.49B | 1.36B | 1.34B | 2.02B |
| Stockholders Equity | 4.06B | 3.39B | 3.01B | 3.01B | 2.37B |
Cash Flow | |||||
| Free Cash Flow | 104.97M | 148.32M | -11.64M | -110.31M | -323.80M |
| Operating Cash Flow | 580.94M | 486.06M | 227.03M | 41.67M | -233.50M |
| Investing Cash Flow | -480.66M | -117.92M | -205.54M | 205.75M | -86.29M |
| Financing Cash Flow | -48.55M | -109.49M | -55.62M | -370.50M | 461.33M |
Compania de Minas Buenaventura SAA Technical Analysis
Negative
30.29
Price Trends
37.02
Negative
31.20
Negative
25.25
Positive
Market Momentum
-1.20
Positive
31.09
Neutral
7.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BVN, the sentiment is Negative. The current price of 30.29 is below the 20-day moving average (MA) of 37.65, below the 50-day MA of 37.02, and above the 200-day MA of 25.25, indicating a neutral trend. The MACD of -1.20 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.68B | 8.98 | 21.24% | 1.45% | 27.42% | 20.63% | |
71 Outperform | $8.60B | 5.53 | 32.51% | 0.87% | 29.08% | 72.12% | |
70 Outperform | $11.35B | 19.33 | 19.56% | ― | 72.94% | ― | |
66 Neutral | $11.56B | 38.89 | 13.65% | 0.07% | 45.61% | ― | |
65 Neutral | $714.88M | -171.17 | -0.70% | ― | 86.30% | 74.16% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | $7.82B | -34.86 | -12.94% | ― | 6.27% | 93.14% |
* Basic Materials Sector Average
BVN
Compania de Minas Buenaventura SAA
30.29
15.29
101.93%
CDE
Coeur Mining
17.67
11.41
182.27%
HMY
Harmony Gold Mining
13.32
0.79
6.26%
HL
Hecla Mining Company
17.24
11.38
194.20%
SBSW
Sibanye Stillwater
11.26
7.03
166.07%
GROY
Gold Royalty
3.15
1.74
123.40%
Compania de Minas Buenaventura SAA Corporate Events
Buenaventura Posts Surging 2025 Earnings and Boosts Payout as San Gabriel Build Advances
Feb 27, 2026
On February 26, 2026, Buenaventura reported a strong finish to 2025, with fourth-quarter silver output up 2% year-on-year and sharp gains in lead and zinc, though gold production fell 11% due mainly to lower volumes at Tambomayo while copper was flat versus 4Q24. For the full year 2025, revenue rose 50% to US$1.73 billion, EBITDA from direct operations nearly doubled to US$811.9 million, and net income climbed 94% to US$782.1 million, reflecting improved operating performance and higher contribution from affiliates.
Fourth-quarter 2025 results underscored this earnings momentum, with revenue more than doubling, operating income up 549% and net income jumping to US$383.6 million, supported by a surge in EBITDA including affiliates to US$555.3 million. The company continued to invest heavily in growth by allocating US$153.4 million of 4Q25 capex to complete construction of the San Gabriel processing plant, ended the year with US$529.8 million in cash and low leverage of 0.22x, received a US$97.9 million dividend from Cerro Verde in January 2026, and the board proposed a cash dividend of US$0.9904 per share/ADS, signaling confidence in its balance sheet and cash generation.
The most recent analyst rating on (BVN) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Compania de Minas Buenaventura SAA stock, see the BVN Stock Forecast page.
Buenaventura Reports Fourth-Quarter and Full-Year 2025 Production Results
Feb 18, 2026
On February 17, 2026, Buenaventura reported its production and metal sales volume for the fourth quarter and full year ended December 31, 2025, detailing output by mine and metal. The disclosure shows solid contributions from key assets like Yumpag and El Brocal across gold, silver, copper, lead and zinc, providing investors and other stakeholders with a clearer picture of recent operating performance and the scale of its direct and associated operations.
The most recent analyst rating on (BVN) stock is a Buy with a $38.00 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.