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
|Historical stock prices|
|Current Share Price||US$7.13|
|52 Week High||US$12.35|
|52 Week Low||US$5.09|
|1 Month Change||25.53%|
|3 Month Change||10.03%|
|1 Year Change||3.18%|
|3 Year Change||-50.42%|
|5 Year Change||-47.99%|
|Change since IPO||58.44%|
Recent News & Updates
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.
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...
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...
|BVN||US Metals and Mining||US Market|
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.
|BVN Average Weekly Movement||7.5%|
|Metals and Mining Industry Average Movement||8.9%|
|Market Average Movement||7.0%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.9%|
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
|1953||n/a||Leandro Luis Martin Garcia Raggio||https://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
|BVN fundamental statistics|
Is BVN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|BVN income statement (TTM)|
|Cost of Revenue||US$528.71m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 27, 2022
|Earnings per share (EPS)||0.74|
|Net Profit Margin||22.04%|
How did BVN perform over the long term?See historical performance and comparison
1.0%Current Dividend Yield
Is BVN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is BVN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does BVN's PE Ratio compare to its peers?
|BVN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
RGLD Royal Gold
GORO Gold Resource
FTCO Fortitude Gold
BVN Compañía de Minas BuenaventuraA
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.
|Current PE Ratio||9.6x|
|Fair PE Ratio||15.6x|
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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How is Compañía de Minas BuenaventuraA forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Compañía de Minas BuenaventuraA performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
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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How is Compañía de Minas BuenaventuraA's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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.
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What is Compañía de Minas BuenaventuraA current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Compañía de Minas BuenaventuraA Dividend Yield vs Market|
|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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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Leandro Luis Martin Garcia Raggio (53 yo)
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...
Experienced Management: BVN's management team is considered experienced (4.1 years average tenure).
Experienced Board: BVN's board of directors are considered experienced (5.6 years average tenure).
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.
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Compañía de Minas Buenaventura S.A.A.'s employee growth, exchange listings and data sources
- 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
- Compañía de Minas Buenaventura S.A.A.
- Las Begonias 415
- 19th floor
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|BUENAVC1||BVL (Bolsa de Valores de Lima)||Common Shares||PE||PEN||Sep 1993|
|BUENAVI1||BVL (Bolsa de Valores de Lima)||Investment Shares||PE||PEN||May 1994|
|BVN||NYSE (New York Stock Exchange)||Yes||SPON ADR REP 1 COM PEN10||US||USD||May 1996|
|BVN||BVL (Bolsa de Valores de Lima)||Yes||SPON ADR REP 1 COM PEN10||PE||USD||May 1996|
|MBU||DB (Deutsche Boerse AG)||Yes||SPON ADR REP 1 COM PEN10||DE||EUR||May 1996|
|BVN N||BMV (Bolsa Mexicana de Valores)||Yes||SPON ADR REP 1 COM PEN10||MX||MXN||May 1996|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/05 00:00|
|End of Day Share Price||2022/10/05 00:00|
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.