Does Buenaventura's (BVN) Mixed Q3 Earnings Reveal a Strategic Profitability Trade-Off?

Compañía de Minas Buenaventura S.A.A. reported its third quarter 2025 earnings on October 30, showing quarterly revenue of US$431.04 million and net income of US$167.15 million, with results covering both the quarter and the nine months ended September 30, 2025. While quarterly revenue increased compared to last year, net income and earnings per share declined for the quarter, yet both measures improved over the nine-month period, a mixed outcome which attracted significant market attention following the announcement. We’ll now explore how these latest results, specifically the rise in quarterly revenue alongside lower net income, affect the company’s investment narrative.

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Compañía de Minas BuenaventuraA Investment Narrative Recap

For shareholders in Compañía de Minas Buenaventura S.A.A., belief in the company’s story rests on successful execution of new mine developments, diversifying revenue beyond current output, and controlling costs in a volatile metals market. The third quarter’s revenue growth is encouraging, but the drop in net income and margins highlights that cost pressures and operational risks, especially around copper production and by-product credits, remain central to the short-term outlook. Based on these results, the biggest catalyst (San Gabriel’s ramp-up) and risk (structural cost inflation) are largely unchanged.

Among recent announcements, the updated production guidance for 2025 (provided October 16) stands out. With gold and copper output targets unchanged, this update suggests that the Q3 results reflect prevailing industry cost and grade challenges rather than major shifts in the company’s production trajectory, leaving future revenue growth prospects still closely tied to new project execution and efficient cost management.

Yet, in contrast to the revenue headline, investors should remain aware of the sustained rise in all-in sustaining costs, which could...

Read the full narrative on Compañía de Minas BuenaventuraA (it's free!)

Compañía de Minas BuenaventuraA is projected to generate $1.4 billion in revenue and $490.9 million in earnings by 2028. This scenario assumes a 2.8% annual revenue growth rate, but a decrease in earnings of $15.5 million from the current level of $506.4 million.

Uncover how Compañía de Minas BuenaventuraA's forecasts yield a $20.48 fair value, a 10% downside to its current price.

Story Continues

Exploring Other PerspectivesBVN Community Fair Values as at Nov 2025

Simply Wall St Community members provided five fair value estimates for Buenaventura, ranging from US$7.71 to US$22.78 per share. Some see strong upside while others are more cautious, and this diversity is especially relevant as the company’s future cash flow is still closely tied to managing structural cost inflation.

Explore 5 other fair value estimates on Compañía de Minas BuenaventuraA - why the stock might be worth less than half the current price!

Build Your Own Compañía de Minas BuenaventuraA Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Compañía de Minas BuenaventuraA research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Compañía de Minas BuenaventuraA research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Compañía de Minas BuenaventuraA's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BVN.

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