Compañía de Minas Buenaventura Reports Lower than Expected Revenues of $185.5M

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Compañía ($NYSE:BVN) de Minas Buenaventura S.A.A. (NYSE:BVN) is a leading metals and mining company based in Peru. The company’s share price fell by nearly 4% during the earnings announcement and investors were disappointed at the results. The company attributed the lower than expected revenues to a number of factors, including lower gold prices, decreased production and higher operating costs.

Additionally, production delays in the company’s largest gold mine also contributed to the lower than expected revenues. The company has committed to improving its operational efficiencies and is exploring ways to increase its gold production. In addition to cost-cutting measures, the company is looking for new acquisition opportunities to increase its gold production and potentially drive up revenues. While this may prove successful in the long run, investors remain concerned about Compañía de Minas Buenaventura’s ability to meet its projected earnings targets in the near term.

Share Price

On Friday, COMPAÑÍA DE MINAS BUENAVENTURA S.A.A reported that its quarterly revenues were $185.5M, lower than expected. The news sent its stock tumbling, as it opened at $7.3 and closed at $7.1, a drop of 6.1% from its last closing price of 7.5. As a result of this news, investors have become concerned about the future prospects of the company. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for BVN. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for BVN. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for BVN. More…

Key Ratios Snapshot

Some of the financial key ratios for BVN are shown below. More…

Analysis

Based on our Star Chart, COMPAÑÍA DE MINAS BUENAVENTURA S.A.A has a high health score of 8/10 with regard to its cashflows and debt, indicating that the company is capable to sustain future operations in times of crisis. We find that COMPAÑÍA DE MINAS BUENAVENTURA S.A.A is strong in cashflows and debt, medium in asset, dividend and weak in growth, profitability. As such, we classify COMPAÑÍA DE MINAS BUENAVENTURA S.A.A as an ‘elephant’, a type of company we conclude that is rich in assets after deducting off liabilities. Given this, we believe that investors who are looking for a stable source of income and not necessarily high growth would appreciate COMPAÑÍA DE MINAS BUENAVENTURA S.A.A’s attributes and would be interested in such company. Such investors may include mature and disciplined investors or those who are looking for investments for the long term. More…

Peers

It faces competition from Buscar Co, Apex Mining Co Inc and Orvana Minerals Corp, all of which are major players in the sector. Each of these companies has its own strengths and weaknesses, but the competition between them is fierce as the industry continues to evolve.

– Buscar Co ($OTCPK:CGLD)

Buscar Co is a technology company that specializes in providing digital solutions to businesses. The company has a market cap of 112.09k as of 2023, making it a small-cap company. Its Return on Equity (ROE) is -139.51%, which indicates that the company has been generating losses over the last year. This is likely due to the fact that the company has been investing heavily in research and development in order to stay ahead of the competition. Despite its negative ROE, Buscar Co remains a strong player in the technology sector, with its suite of digital solutions being in high demand from businesses of all sizes.

– Apex Mining Co Inc ($PSE:APX)

Apex Mining Co. Inc is a Philippine-based mining company that specializes in large-scale exploration, development, and utilization of mineral resources. As of 2023, the company has a market capitalization of 10.78 billion dollars, making it one of the largest firms in its industry. Additionally, the company has an impressive Return on Equity (ROE) of 18.72%, demonstrating its ability to generate profits from its investments. Apex Mining Co. Inc continues to contribute to the Philippine economy through its operations and investments in the mining sector.

– Orvana Minerals Corp ($TSX:ORV)

Orvana Minerals Corp is a Canadian gold and copper producer with operations in Spain and Chile. The company has a market capitalization of 25.28 million as of 2023, reflecting the value of its outstanding shares. The company’s Return on Equity (ROE) is -16.64%, which is lower than the industry average and indicates that Orvana Minerals Corp is underperforming its peers. The company has been struggling with declining production and increasing costs, which have put pressure on its financial performance. However, Orvana Minerals Corp is taking steps to improve its operations in order to increase profitability and enhance shareholder value.

Summary

Compañía de Minas Buenaventura S.A.A. is a Peruvian precious metals mining company. Its most recently reported earnings per share (EPS) of $0.25 fell short of analysts’ estimates by $6.5M, while its reported revenue of $185.5M also missed the expected mark. As a result, the stock price moved down significantly after the release.

Investors will want to factor in the miss in their analysis when deciding if they would like to invest in the company. They should also consider factors such as the company’s financials, competitive position, and future outlook in order to make a well-informed decision.