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BVN

Compañía de Minas BuenaventuraA NYSE:BVN Stock Report

Last Price

US$7.13

Market Cap

US$1.8b

7D

10.4%

1Y

3.2%

Updated

05 Oct, 2022

Data

Company Financials +
BVN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends1/6

BVN Stock Overview

Compañía de Minas Buenaventura S.A.A. engages in the exploration, mining development, processing, and trading of precious and base metals.

Compañía de Minas BuenaventuraA Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Compañía de Minas BuenaventuraA
Historical stock prices
Current Share PriceUS$7.13
52 Week HighUS$12.35
52 Week LowUS$5.09
Beta0.64
1 Month Change25.53%
3 Month Change10.03%
1 Year Change3.18%
3 Year Change-50.42%
5 Year Change-47.99%
Change since IPO58.44%

Recent News & Updates

Sep 19

Compania de Minas Buenaventura: A Weak Quarter With Technical Issues At El Brocal

Summary Revenues for the second quarter of 2022 were weak, with $150.11 million down from $240.86 million in the same quarter a year ago and down 35.6% sequentially. Consolidated Gold production was 41,324 Au Oz in 2Q22 compared to 35,906 Au Oz in 2Q21. Equity gold production was 39,605 Au Oz, up from 34,241 Au Oz in 2Q21. I recommend buying BVN between $6 and $5.45 with potential lower support at $5.20. Introduction The Lima-based Compania de Minas Buenaventura (BVN) released its second-quarter 2022 results on July 26, 2022. Note: BVN is Peru's largest publicly traded precious metals miner and the most important holder of mining rights in Peru. This article is an update of my article published on May 9, 2022. I have followed BVN on Seeking Alpha since Dec. 2020. 1 - 1Q22 Earnings Snapshot BVN 2Q22 highlights (BVN Presentation) Revenues for the second quarter of 2022 were weak, with $150.11 million down from $240.86 million in the same quarter a year ago and down 35.6% sequentially. It was a weak quarter with lower production, notably zinc, lead, copper, and silver. 2 - Investment Thesis The investment thesis has not changed since the preceding article. BVN is a good miner that I consider a possible investment for the long term due to its metal diversification and solid liquidity. However, Moody's downgraded the company's debt based on potential weaknesses (higher CapEx, weaker operating profit, etc.). Buenaventura managed to improve its liquidity after repaying the syndicated facility in February 2022; however, higher capex related to San Gabriel, coupled with weaker operating profit will drive negative fee cash flow eroding liquidity in 2023 onwards. While the company has a balanced portfolio of base and precious metals the current cost structure had limited flexibility to withstand additional setbacks. Thus, these financial drawbacks, combined with weakening metals prices and increase inflationary pressures and chain disruptions, pose challenging issues for the company. Finally, the political situation in Peru is unstable, with the new leftist President in trouble. Despite only a year in office, Peru's president faces several criminal investigations, including for influence peddling and leading a criminal network. Thus, I continue recommending a small-sized core investment and accumulating on any weaknesses. The future Fed decision to hike interest rate by another 75 points or even higher will not help the mining sector. One winning strategy that I often recommend in the gold sector in my marketplace, "The Gold and Oil Corner," is trading about 50% LIFO of your whole BVN position and holding a core long-term position for a much higher target. It is the centerpiece of my marketplace which will protect you from unwelcome "surprises" recurring regularly. 3 - Stock performance BVN has slightly outperformed the VanEck Vectors Gold Miners ETF (GDX) and is down 14% on a one-year basis. Data by YCharts CEO Leandro Garcia said in the conference call: ...second quarter 2022 EBITDA from direct operations was negative $19.1 million compared to $68.5 million reported in the second quarter of 2021. Second quarter 2022 operating cash flow reached $72.7 million compared to $101.7 million in second quarter of last year. Second quarter 2022 net loss was $39.9 million compared to $37.5 million net income for the same period in 2021. Compania de Minas Buenaventura ADS - Financial Snapshot 2Q22 - The Raw Numbers Buenaventura 2Q21 3Q21 4Q21 1Q22 2Q22 Total Revenues in $ Million 240.86 220.36 253.35 232.92 150.11 Net Income in $ Million 37.54 -91.6 -224.8 636.15 -39.90 EBITDA $ Million 59.61 39.79 128.22 210.04 -70.37 EPS diluted in $/share 0.15 -0.36 -0.89 2.50 -0.16 Operating Cash flow in $ Million 102.70 -464.30 140.90 -53.72 72.74 Capital Expenditure in $ Million 21.36 23.88 32.11 19.86 30.44 Free Cash Flow in $ Million 80.34 -488.18 108.79 -73.59 42.30 Total Cash $ Million 255.23 287.87 377.00 337.41 326.32 Bank loan and Financial Obligations (incl. current) In $ Million 570.09 1,114.87 1,107.98 1,108.41 742.74 Shares outstanding (diluted) in Million 253.99 253.99 253.99 253.99 253.99 Data Source: Company release Gold Production And Balance Sheet Details 1 - Revenues were $150.11 million in 2Q22 BVN Quarterly Revenues history (Fun Trading) 2Q22 revenues were $150.11 million, down from $240.86 million in the same quarter a year ago and down 35.6% sequentially, as shown in the chart above. The steep decrease in revenue was due to lower lead, zinc, and silver sales. Net loss (attributable to equity holders of the parent) was $39.90 million compared to an income of $37.54 million last year. The cash position is now $326.32 million, up from $255.23 million in 2Q21. Buenaventura’s share in associated companies was $56.1 million in 2Q22, which remained unchanged compared to 2Q21. On April 29, 2022, Cerro Verde paid a total dividend of $150 million. Buenaventura received $29.4 million relative to its stake in Cerro Verde. 2 - The Free cash flow was a loss of $42.30 million in 2Q22 BVN Quarterly Free cash flow history (Fun Trading) Note: Generic free cash flow is Cash from operations minus CapEx. Trailing 12-month free cash flow was a loss of $410.69 million, with a free cash flow of $42.30 million for the second quarter of 2022. 3 - Compania de Minas Buenaventura debt situation BVN Cash versus Debt history (Fun Trading) The company shows a cash position of $326.32 million and a total bank loan plus financial obligations, including a current of $742.41 million at the end of 2Q22. The net debt is now $416 million with a net debt to EBITDA ratio of 2.2x with an average maturity of 3.8 years. Moody's Investors Service downgraded Compania de Minas Buenaventura S.A.A.'s (Buenaventura) corporate family rating and senior unsecured ratings to B2 from B1. The rating action incorporates the company's revised production estimates that reflect the effects of extended suspension of operations in Uchucchacua, lower than expected production in El Brocal following the landslide in March, and higher costs across its operating units. 4 - Consolidated Gold production. Details - Total production was 41,324 Au Oz and 1,918,152 Ag Oz in 2Q22. The company operates seven mines in Peru: Tambomayo, Orcopampa, Uchucchacua (suspended, see below status), Julcani, El Brocal (61.43%), La Zanja, and Coimolache. Note: Gold production includes 100% of Buenaventura's operating units, 100% of Tambomayo, 100% of La Zanja, 100% of El Brocal, and 40.095% of Coimolache. 4.1 - Charts detailed by metals and price realized in the first quarter of 2022 4.1.1 - Consolidated Gold Production (Au Oz) BVN Consolidated quarterly gold production history (Fun Trading) Note: BVN operates 100% of five mining units, including Uchucchacua, Orcopampa, Julcani, Tambomayo, La Zanja in Peru, and San Gabriel, a mining unit under the development stage. It also owns interests in Colquijirca, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche, a mining unit at the development stage. Consolidated Gold production was 41,324 Au Oz in 2Q22 compared to 35,906 Au Oz in 2Q21. Equity gold production was 39,605 Au Oz, up from 34,241 Au Oz in 2Q21. Also, equity gold production, including assoc., was 47,596 Au Oz compared to 46,241 Au Oz in 2Q21.

Sep 01
We Think Compañía de Minas BuenaventuraA (NYSE:BVN) Has A Fair Chunk Of Debt

We Think Compañía de Minas BuenaventuraA (NYSE:BVN) Has A Fair Chunk Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 03
We Like The Quality Of Compañía de Minas BuenaventuraA's (NYSE:BVN) Earnings

We Like The Quality Of Compañía de Minas BuenaventuraA's (NYSE:BVN) Earnings

The market seemed underwhelmed by last week's earnings announcement from Compañía de Minas Buenaventura S.A.A...

Shareholder Returns

BVNUS Metals and MiningUS Market
7D10.4%7.8%1.9%
1Y3.2%-6.3%-18.8%

Return vs Industry: BVN exceeded the US Metals and Mining industry which returned -6.2% over the past year.

Return vs Market: BVN exceeded the US Market which returned -18.2% over the past year.

Price Volatility

Is BVN's price volatile compared to industry and market?
BVN volatility
BVN Average Weekly Movement7.5%
Metals and Mining Industry Average Movement8.9%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: BVN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: BVN's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1953n/aLeandro Luis Martin Garcia Raggiohttps://www.buenaventura.com

Compañía 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.

Compañía de Minas BuenaventuraA Fundamentals Summary

How do Compañía de Minas BuenaventuraA's earnings and revenue compare to its market cap?
BVN fundamental statistics
Market CapUS$1.81b
Earnings (TTM)US$188.82m
Revenue (TTM)US$856.73m

9.6x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BVN income statement (TTM)
RevenueUS$856.73m
Cost of RevenueUS$528.71m
Gross ProfitUS$328.02m
Other ExpensesUS$139.20m
EarningsUS$188.82m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)0.74
Gross Margin38.29%
Net Profit Margin22.04%
Debt/Equity Ratio20.7%

How did BVN perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

10%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BVN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BVN?

Other financial metrics that can be useful for relative valuation.

BVN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.8x
Enterprise Value/EBITDA17.1x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does BVN's PE Ratio compare to its peers?

BVN PE Ratio vs Peers
The above table shows the PE ratio for BVN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.6x
RGLD Royal Gold
23x8.5%US$6.4b
DRD DRDGOLD
8.7xn/aUS$482.2m
GORO Gold Resource
14.3xn/aUS$156.4m
FTCO Fortitude Gold
8.4xn/aUS$136.5m
BVN Compañía de Minas BuenaventuraA
9.6x10.7%US$1.8b

Price-To-Earnings vs Peers: BVN is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (13.6x).


Price to Earnings Ratio vs Industry

How does BVN's PE Ratio compare vs other companies in the US Metals and Mining Industry?

Price-To-Earnings vs Industry: BVN is expensive based on its Price-To-Earnings Ratio (9.6x) compared to the US Metals and Mining industry average (6.8x)


Price to Earnings Ratio vs Fair Ratio

What is BVN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BVN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: BVN is good value based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).


Share Price vs Fair Value

What is the Fair Price of BVN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BVN ($7.13) is trading below our estimate of fair value ($69.83)

Significantly Below Fair Value: BVN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Compañía de Minas BuenaventuraA forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BVN's forecast earnings growth (10.7% per year) is above the savings rate (1.9%).

Earnings vs Market: BVN's earnings (10.7% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: BVN's earnings are forecast to grow, but not significantly.

Revenue vs Market: BVN's revenue (7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BVN's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BVN's Return on Equity is forecast to be low in 3 years time (7.7%).


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Past Performance

How has Compañía de Minas BuenaventuraA performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


47.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BVN has a large one-off loss of $45.5M impacting its June 30 2022 financial results.

Growing Profit Margin: BVN's current net profit margins (22%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: BVN has become profitable over the past 5 years, growing earnings by 47.2% per year.

Accelerating Growth: BVN's earnings growth over the past year (198.5%) exceeds its 5-year average (47.2% per year).

Earnings vs Industry: BVN earnings growth over the past year (198.5%) exceeded the Metals and Mining industry 82.4%.


Return on Equity

High ROE: BVN's Return on Equity (6%) is considered low.


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Financial Health

How is Compañía de Minas BuenaventuraA's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BVN's short term assets ($617.3M) exceed its short term liabilities ($317.4M).

Long Term Liabilities: BVN's short term assets ($617.3M) do not cover its long term liabilities ($994.9M).


Debt to Equity History and Analysis

Debt Level: BVN's net debt to equity ratio (10.3%) is considered satisfactory.

Reducing Debt: BVN's debt to equity ratio has increased from 13.2% to 20.7% over the past 5 years.

Debt Coverage: BVN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if BVN's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is Compañía de Minas BuenaventuraA current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.02%

Current Dividend Yield

Dividend Yield vs Market

Compañía de Minas BuenaventuraA Dividend Yield vs Market
How does Compañía de Minas BuenaventuraA dividend yield compare to the market?
SegmentDividend Yield
Company (Compañía de Minas BuenaventuraA)1.0%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Metals and Mining)3.3%
Analyst forecast in 3 Years (Compañía de Minas BuenaventuraA)0.8%

Notable Dividend: BVN's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: BVN's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (4.53%).


Stability and Growth of Payments

Stable Dividend: BVN's dividend payments have been volatile in the past 10 years.

Growing Dividend: BVN's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.8%), BVN's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: BVN is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Leandro Luis Martin Garcia Raggio (53 yo)

2.08yrs

Tenure

Mr. Leandro Luis Martin Garcia Raggio serves as the Chief Executive Officer at Compañía de Minas Buenaventura S.A.A. since September 1, 2020 and serves as General Manager. He was Vice President of Finance...


Leadership Team

Experienced Management: BVN's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: BVN's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of BVN?
Owner TypeNumber of SharesOwnership Percentage
General Public36,302,44214.3%
Individual Insiders40,774,20616.1%
Institutions176,910,21969.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 78.96% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.75%
Van Eck Associates Corporation
24,765,448$176.6m8.61%0.34%
8.93%
BlackRock, Inc.
22,677,441$161.7m6.05%no data
8.57%
Westwood Global Investments LLC
21,762,425$155.2m-0.54%4.82%
6.11%
Bank Of Nova SCOTIA Trust Co, Trust Investments
15,521,839$110.7m18.35%6.08%
6.01%
The Bank of Nova Scotia, Banking Investments
15,253,399$108.8m0%0.21%
5.48%
Roque Eduardo Benavides Ganoza
13,912,006$99.2m0%no data
5.44%
Raul Eduardo Benavides Ganoza
13,813,836$98.5m0%no data
5.36%
T. Rowe Price Group, Inc.
13,606,984$97.0m-28.67%0.01%
5.13%
Jose Miguel Morales Dasso
13,033,836$92.9m0%no data
4.22%
AFP Integra
10,713,607$76.4m0%16.18%
2.07%
Mirae Asset Global Investments Co., Ltd
5,259,430$37.5m-0.42%0.06%
1.85%
Polunin Capital Partners Limited
4,693,021$33.5m-6.69%3.67%
1.75%
Macquarie Investment Management Business Trust
4,441,012$31.7m0.74%0.03%
1.39%
State Street Global Advisors, Inc.
3,521,067$25.1m-9.68%no data
0.98%
ETF Managers Group LLC
2,485,704$17.7m-8.4%0.47%
0.95%
Oldfield Partners LLP
2,420,120$17.3m-12.15%1.03%
0.71%
FMR LLC
1,793,789$12.8m-31.03%no data
0.7%
Allspring Global Investments, LLC
1,777,479$12.7m0.17%0.02%
0.61%
Commerzbank AG, Asset Management Arm
1,537,592$11.0m0%0.16%
0.57%
Legal & General Investment Management Limited
1,458,516$10.4m-14.69%no data
0.57%
UBS Asset Management
1,447,210$10.3m1.7%no data
0.51%
Amundi Asset Management
1,289,379$9.2m8%no data
0.5%
Eaton Vance Management
1,262,456$9.0m1.99%no data
0.43%
TSP Capital Management Group, LLC
1,091,989$7.8m0.25%3.12%
0.39%
Itau USA Asset Management Inc.
999,339$7.1m0%0.42%

Company Information

Compañía de Minas Buenaventura S.A.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Compañía de Minas Buenaventura S.A.A.
  • Ticker: BVN
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: US$1.811b
  • Shares outstanding: 253.99m
  • Website: https://www.buenaventura.com

Location

  • Compañía de Minas Buenaventura S.A.A.
  • Las Begonias 415
  • 19th floor
  • Lima
  • Lima
  • 27
  • Peru


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BUENAVC1BVL (Bolsa de Valores de Lima)Common SharesPEPENSep 1993
BUENAVI1BVL (Bolsa de Valores de Lima)Investment SharesPEPENMay 1994
BVNNYSE (New York Stock Exchange)YesSPON ADR REP 1 COM PEN10USUSDMay 1996
BVNBVL (Bolsa de Valores de Lima)YesSPON ADR REP 1 COM PEN10PEUSDMay 1996
MBUDB (Deutsche Boerse AG)YesSPON ADR REP 1 COM PEN10DEEURMay 1996
BVN NBMV (Bolsa Mexicana de Valores)YesSPON ADR REP 1 COM PEN10MXMXNMay 1996

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.