Compañía de Minas Buenaventura S.A.A. (BVN): BCG Matrix [Dec-2025 Updated]

You're looking at Compañía de Minas Buenaventura S.A.A.'s portfolio right now, and honestly, it's a mix of high-potential growth and areas needing serious attention as we hit late 2025. We've mapped their key assets using the BCG Matrix-that's the framework we used at BlackRock to decide where to put our chips. You'll see stars like the San Gabriel Gold Project, nearing commercial production after 79% progress, sitting alongside cash cows like the Cerro Verde stake, which dropped US$49 million in dividends in 1Q25, all while some legacy mines saw production fall by 21%. Dive in to see exactly where BVN needs to invest capital, where it's milking stable cash flow, and which 'Question Marks,' like the Uchucchacua turnaround aiming for 2,000 TPD, demand your immediate focus.

Background of Compañía de Minas Buenaventura S.A.A. (BVN)

Compañía de Minas Buenaventura S.A.A. (BVN) stands as Peru's largest publicly-traded precious metals mining company. Headquartered in Lima, the company's core business involves the entire mining cycle: exploration, extraction, concentration, smelting, and the commercialization of polymetallic ores and metals.

The operational footprint of Compañía de Minas Buenaventura S.A.A. includes several key mines within Peru, such as Orcopampa, Uchucchacua, Julcani, and Tambomayo. Beyond direct mining, the company's segments cover construction and project development, energy generation and transmission, insurance brokerage, leasing of mining concessions, investments in shares, and industrial activities.

Looking at the most recent data, Compañía de Minas Buenaventura S.A.A. reported third quarter 2025 financial results on October 30, 2025. For that quarter, the company posted revenue of US$431.04 million and a net income of $167.15 million. The EBITDA from direct operations for Q3 2025 reached $202.1 million, a significant increase from $136.5 million in the same period the prior year.

Financially, as of September 30, 2025, Compañía de Minas Buenaventura S.A.A. maintained a cash position of approximately $486 million, against a total debt of $711 million, resulting in a leverage ratio of 0.41x. This strong balance sheet supports ongoing major capital expenditures, such as the $92 million spent in Q3 2025 specifically on the San Gabriel processing plant construction.

In terms of production for the third quarter of 2025, the company saw mixed results across its metals. Gold production fell by 21% year-over-year to 30,894 ounces, and copper production decreased by 24% to 12,800 tonnes. Silver output saw a slight reduction to 4.3 million ounces.

A major near-term focus is the San Gabriel project, which management expects to commence commercial production in the fourth quarter of 2025, with initial gold bars targeted by the end of the year. Furthermore, the Coimolache operation received a new operating permit, which signifies the potential for full capacity production moving forward.

Compañía de Minas Buenaventura S.A.A. (BVN) - BCG Matrix: Stars

You're looking at the assets Compañía de Minas Buenaventura S.A.A. is pouring cash into right now, the ones with the best shot at dominating a growing market. These are the Stars, demanding big investment to keep their lead, but they're the future Cash Cows if they nail the execution.

San Gabriel Gold Project is definitely a Star, representing a major push into a high-growth gold area. As of the end of the first quarter of 2025 (1Q25), the project had reached 79% overall progress. The total investment for this US$750 million project is guided to be between US$ 720 million and US$ 750 million. The company is targeting the start of commercial production in the fourth quarter of 2025 (4Q25), contingent on timely permit approvals. Once stabilized after ramp-up, the expectation is an annual gold output of between 100,000 ounces and 120,000 ounces, or estimated output between 150,000oz and 160,000oz of gold per year. The capital expenditure (CAPEX) for San Gabriel in 2Q25 alone was US$ 82.2 million. This asset is Compañía de Minas Buenaventura S.A.A.'s first operation in the Moquegua region.

The silver portfolio is also showing Star characteristics, driven by a new, high-performing operation and significant reserve growth. The Yumpag Mine reached full-scale operation in 1Q25, which directly fueled a year-over-year increase in consolidated silver production in that quarter. Specifically, Yumpag contributed 2,275,799 ounces of silver in 1Q25. This growth is supported by a solid resource base; consolidated silver reserves increased by 61 Moz as of the end of 2024. To keep this momentum, the company is investing in methods like the Over-Drift-Fill (ODF) mining method at Yumpag for improved ore extraction.

We can map out the key metrics for these growth drivers here:

The recovery at Copper production at El Brocal also signals a return to strength in a key base metal market. Consolidated copper production saw a 28% year-over-year increase in the second quarter of 2025 (2Q25). This rebound was largely due to the comparison against 2Q24, which was negatively impacted by halted operations at El Brocal and the processing of its stockpiled ore. El Brocal's equity copper production in 2Q25 was 27,318 MT. This recovery in output, following a period of disruption, positions the asset to capture market share as operations normalize.

These Stars are consuming cash now, but they are the foundation for future stability. You need to watch the San Gabriel permitting closely; that's the near-term risk. Here's the quick math: the company is spending heavily on San Gabriel to secure that 4Q25 start date, which is critical for the next phase of growth.

• San Gabriel CAPEX in 2Q25 was US$ 82.2 million.
• Yumpag drove 1Q25 silver production up, contributing 2,275,799 ounces.
• Consolidated silver reserves grew by 61 Moz in 2024.
• El Brocal copper production rebounded with a 28% YoY increase in 2Q25.

Finance: draft 13-week cash view by Friday.

Compañía de Minas Buenaventura S.A.A. (BVN) - BCG Matrix: Cash Cows

You're looking at the core generators of stability for Compañía de Minas Buenaventura S.A.A., the units that consistently bring in more cash than they need to maintain their position. These are the market leaders in mature segments, and for BVN, that stability is clearly visible in its affiliate income and core operational cash generation as of 2025.

The dividend stream from your stake in Sociedad Minera Cerro Verde is a prime example of this cash cow dynamic. You own a 19.58% stake in that important Peruvian copper producer. This holding delivered a significant, stable cash inflow, with the latest reported dividend payment amounting to US$49 million received in the first quarter of 2025 (1Q25).

Looking at the wholly-owned operations, the underlying cash generation remains robust. The EBITDA from direct operations for the first nine months of 2025 (9M25) reached US$ 458.5 million, a solid improvement over the US$ 338.2 million reported for the same period in 2024, which notably excludes the sale of Chaupiloma Royalty Company in both comparisons. This high market share in established assets allows for lower relative promotional spending, letting you focus capital elsewhere, like on growth projects.

The Coimolache Mine also fits this profile, providing stable gold and silver output. A key operational milestone was achieved on September 5, 2025, when the Peruvian Ministry of Energy and Mines granted a new operating permit. This permit authorizes fresh ore placement on a new level of the Tantahuatay leach platform and on adjacent surface areas, which effectively means the mine is now set for full-capacity production at both the mine and the leach pad. While the immediate 2025 production figures are part of the overall picture, management has indicated Coimolache is expected to contribute over 8,000 ounces of gold in 2026.

This operational strength underpins a very healthy balance sheet, which is what you want from a cash cow-it consumes less and provides a buffer. As of the third quarter of 2025 (3Q25), Compañía de Minas Buenaventura S.A.A. reported a net debt of US$ 224.9 million against a cash position of US$ 485.7 million. This results in a low Leverage Ratio of 0.41x. That low leverage means the cash cows are funding the company's obligations without strain.

Here's a quick look at the key financial metrics supporting the Cash Cow status as of 3Q25, showing the cash generation versus debt load:

The cash flow generated by these stable assets is critical for the entire portfolio. You use this cash to support other areas of the business. Consider the deployment of that cash flow:

• Funding the final push for San Gabriel commercial production in 4Q25.
• Servicing corporate debt, as seen by the redemption of US$ 149 million of 2026 notes during the quarter.
• Paying shareholder returns, evidenced by the Board approving a dividend payment of US$ 0.1446 per share/ADS.
• Maintaining efficiency through sustaining CAPEX, which was US$ 32.1 million in 3Q25.

The goal here is to maintain productivity and milk the gains passively, only investing enough to keep the infrastructure running efficiently. The Coimolache permit update, for instance, is an investment in infrastructure efficiency-allowing for fresh ore placement to maintain full-capacity output.

The dividend income from the affiliate is a direct, passive return, which you can summarize alongside the direct operational cash flow:

• Cerro Verde Dividend Income (1Q25): US$ 49 million.
• Direct Operations EBITDA (9M25): US$ 458.5 million.
• Coimolache full-capacity production enabled by September 2025 permit.
• Financial stability with a low Leverage Ratio of 0.41x as of 3Q25.

If onboarding takes 14+ days, churn risk rises-and similarly, if these cash cows face unexpected operational stoppages, the entire corporate funding structure feels it. Finance: draft 13-week cash view by Friday.

Compañía de Minas Buenaventura S.A.A. (BVN) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Compañía de Minas Buenaventura S.A.A. (BVN), the assets categorized here show clear signs of maturity or operational headwinds, characterized by declining production volumes and associated cost pressures as of the third quarter of 2025 (3Q25). Management focus here should be on minimizing cash burn and evaluating strategic alternatives, as expensive turn-around plans usually do not help.

Here's the quick math on the performance indicators for these specific units as of 3Q25:

The overall trend for gold production across the portfolio reflects the challenges at these specific assets, with Compañía de Minas Buenaventura S.A.A.'s consolidated gold production decreasing by 21% YoY in 3Q25 due to output from Orcopampa and Tambomayo.

You should review the specific operational constraints driving these results:

• Orcopampa Mine: Gold production decreased by 25% YoY in 3Q25, reflecting a decline in processed output.
• Tambomayo Mine: Gold production decreased by 38% YoY in 3Q25, with throughput constrained.
• La Zanja (Royalty): The operation is now a royalty asset after Newmont acquired the JV interest, offering minimal direct operational control or growth [scenario dictated].
• Uchucchacua (Current Output): Silver production decreased by 3% YoY in 3Q25, despite efforts to optimize the mine plan.

The rising CAS at the gold mines, such as Tambomayo's jump to 2,762 US$/Oz in 3Q25, clearly signals that lower volumes are eroding per-unit cost efficiency, a classic Dog characteristic.

For La Zanja, while 1Q25 silver production showed positive signs due to higher solubility, the unit's classification as a royalty asset suggests its future cash flow contribution is passive and unlikely to drive significant growth for Compañía de Minas Buenaventura S.A.A., fitting the low-growth profile.

Finance: draft 13-week cash view by Friday.

Compañía de Minas Buenaventura S.A.A. (BVN) - BCG Matrix: Question Marks

These business units operate in high-growth markets but currently hold a low market share for Compañía de Minas Buenaventura S.A.A. (BVN). They are cash-intensive due to necessary investment to capture market growth, yet they generate low immediate returns.

Uchucchacua Turnaround

The Uchucchacua operation is positioned as a turnaround play requiring significant capital and operational focus to achieve the target of 2,000 TPD (Tonnes Per Day) throughput by year-end 2025. This unit is part of the sustaining CAPEX focus for 2025, budgeted between US$ 125 - 140 million for the full year, which includes investments related to becoming a self-operator of the mine. The operational reality in the first quarter of 2025 showed mixed results; silver production was in line with expectations, but lead and zinc output did not meet guidance due to lower-than-expected grades, which resulted in higher dilution.

Trapiche Project

The Trapiche Project represents an early-stage copper venture situated in a high-growth commodity market. Realizing its potential necessitates future substantial capital expenditure (CapEx). For the full year 2025, the growth CapEx allocation for Trapiche, alongside San Gabriel, was initially guided between US$ 205 - 215 million. Actual spending in the first half of 2025 shows the early commitment to this asset.

• 1Q25 Capital Expenditure for Trapiche Project: US$ 3.4 million.
• 6M25 Capital Expenditure for Trapiche Project: US$ 6.3 million.

This project consumes cash now with the expectation of becoming a Star asset as copper market growth materializes.

Polymetallic Production

The performance of the established polymetallic production lines, specifically zinc and lead, shows a significant contraction year-over-year in the first quarter of 2025. This decline signals a current low market share or operational challenge within these specific metal streams, demanding a swift strategic reversal to avoid degradation into Dogs.

The year-over-year comparison for the three months ended March 31, 2025, shows the following:

• Zinc production declined by 34% YoY.
• Lead production declined by 28% YoY.

Here's the quick math on the absolute volumes for 1Q25 compared to 1Q24:

San Gabriel Permitting

The San Gabriel mine is Compañía de Minas Buenaventura S.A.A.'s major near-term growth asset, but its path to commercial production is heavily contingent on permitting. The biggest risk here is any construction or permitting delay, which would push this high-growth asset into a prolonged, cash-intensive phase, typical of a Question Mark needing heavy investment to move to Star status. As of the end of the first quarter of 2025, the project had reached 79% overall progress, with cumulative CapEx reaching US$ 505 million.

The company maintained its expectation for a commercial start in the fourth quarter of 2025, subject to final approvals. By the third quarter of 2025, progress had advanced significantly, with the project achieving 96% overall progress and construction standing at 95% complete. The investment required to push this through is substantial, with the full-year 2025 CapEx guidance for San Gabriel revised to US$ 250 million. The Q3 2025 CapEx specific to San Gabriel was US$ 92 million.

The cash burn associated with this development is evident in the quarterly spending:

• 1Q25 San Gabriel CAPEX: US$ 21.8 million.
• 2Q25 San Gabriel CAPEX: US$ 82.2 million.