Compañía de Minas Buenaventura S.A.A. (BVN): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of one of Peru's most established miners, Compañía de Minas Buenaventura S.A.A., trying to map out exactly how they generate value as they push toward year-end 2025. Honestly, it's a complex machine, but the core levers are clear: they are balancing near-term gold growth from the San Gabriel project-targeting first gold in 4Q25-with a massive copper kicker from their stake in Cerro Verde, which already delivered $108 million in dividends by Q2 2025. With total revenue projected around $1.49 billion for the full year, understanding their nine building blocks is crucial for any serious investor looking past the daily stock price noise. Here's the breakdown of Compañía de Minas Buenaventura S.A.A.'s entire operating model, from their key partnerships to their cost structure, so you can see precisely where the value is built.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Compañía de Minas Buenaventura S.A.A. relies on to drive production and secure its financial standing as of late 2025. These alliances are critical, especially with major projects nearing completion and joint ventures providing significant cash flow.

The most prominent joint venture partnership involves Sociedad Minera Cerro Verde, where Compañía de Minas Buenaventura S.A.A. holds a 19.58% stake. This relationship is with Freeport-McMorRan Inc. and Sumitomo Corporation. This partnership is a source of material financial return; for instance, in the third quarter of 2025, Compañía de Minas Buenaventura S.A.A. commercialized 2,289 MT of Cerro Verde's contained copper, generating approximately $24.7 million in net revenue. Earlier in the year, the company received $49 million in dividends related to this stake in the first quarter of 2025 alone.

The development of the San Gabriel project, targeted for commercial production commencement in the fourth quarter of 2025, necessitated significant capital deployment through external partners, including Engineering, Procurement, and Construction (EPC) firms. The cumulative progress for San Gabriel reached 88% overall completion by the second quarter of 2025. The capital expenditure (CAPEX) for this project in the third quarter of 2025 alone was $92.3 million, focused on finalizing the processing plant. The total estimated CAPEX for San Gabriel is in the order of $720 million to $750 million, with close to $600 million already disbursed as of June 2025.

Compañía de Minas Buenaventura S.A.A. also maintains relationships with regulatory bodies that act as essential partners for operational continuity. The Peruvian Ministry of Energy and Mines granted Coimolache a new operating permit on September 5, 2025, authorizing fresh ore placement on Tantahuatay's leach platform.

The structure of these key relationships can be summarized with the following figures:

Beyond these quantifiable financial links, the operational model depends on other critical, though less numerically detailed, partnerships:

• Strategic alliances with local Peruvian communities for land access and social license.
• Engineering, Procurement, and Construction (EPC) firms for the San Gabriel project development.
• Global metal traders and refiners for concentrate and doré sales.

The successful commissioning of San Gabriel in 4Q25 hinges on the final execution by the EPC partners. Also, maintaining the social license to operate across all sites, including those with community agreements, remains a constant focus for operational stability.

Finance: draft 13-week cash view by Friday.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Key Activities

Compañía de Minas Buenaventura S.A.A. focuses its primary operational efforts on the extraction and refinement of various metallic resources, alongside significant capital deployment into near-term growth projects and ongoing exploration.

The core operational activity involves the mining and processing of polymetallic ores, yielding gold, silver, copper, zinc, and lead from its operating units like Yumpag, Orcopampa, and Tambomayo. This activity is quantified by recent production metrics, which show the output for the nine months ended September 30, 2025, as follows:

A major key activity is the development of the San Gabriel gold project, a strategic asset in the Moquegua region. This development is nearing completion, with cumulative progress reaching 88% as of the second quarter of 2025. The total expected investment for this project is between $720 million and $750 million. The company is targeting the production of the first gold bar in 4Q25, contingent on receiving the necessary operational permits. Once ramped up, San Gabriel is expected to produce between 100,000 and 120,000 ounces of gold annually.

Sustaining future production requires dedicated exploration and resource definition. For the full year 2025, Compañía de Minas Buenaventura S.A.A. projects exploration expenses to be in the range of $40-$45 million for operating units, with an additional $20 million allocated for non-operating areas.

The company also manages non-mining segments, which include energy generation and transmission services. Key assets in this area include the Centralitas Huapa e Ingenio and the Huanza HEPP.

The operational focus areas for 2025 include:

• Mining and processing of gold, silver, copper, zinc, and lead ores.
• Advancing San Gabriel project to commercial production in 4Q25.
• Executing the 2025 exploration program with a budget of $40-$45 million for operating units.
• Managing energy assets like Huanza HEPP.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Key Resources

You're looking at the bedrock of Compañía de Minas Buenaventura S.A.A.'s operation-the physical and financial assets that let them run the show. Honestly, in this business, your resource base is everything, and BVN has deep Peruvian roots.

The company relies on extensive Peruvian mineral reserves. While specific 2024 reserve updates showing increases across gold, silver, and copper aren't immediately on hand, management's preliminary estimates for Mineral Reserves in 2025 underpin the long-term plan. The operational strength comes directly from these assets, which are managed across several key sites.

Here's a look at the core operating mines that feed the system:

• Orcopampa
• Uchucchacua
• Yumpag
• Tambomayo
• Julcani
• La Zanja
• El Brocal

These wholly-owned operations are complemented by significant non-controlling interests and strategic holdings. For instance, the company's operational output in the third quarter of 2025 included production from these units, such as 4,278,658 silver ounces and 12,770 metric tons of copper from direct operations in 3Q25.

The resource base extends beyond wholly-owned assets through key partnerships. Compañía de Minas Buenaventura S.A.A. holds a significant equity stake in the world-class Cerro Verde copper operation. That stake is 19.58%, which serves as a stable source of dividends and exposure to large-scale copper production.

To give you a clearer picture of the scale of these resources and their recent financial backing, let's look at the balance sheet strength as of the reporting period:

That cash position of US$ 485.7 million as of September 30, 2025, is a critical resource, providing liquidity for ongoing capital expenditures, like the investment into the San Gabriel project, which was a focus for 2025 CapEx guidance between US$ 400 million and US$ 420 million.

Also, don't forget the non-mining assets that bolster the core business. These are important secondary resources that help smooth out commodity cycles. They include:

• Energy generation and transmission services
• Construction and engineering services
• Holding minority interests in other major operations

These operational and financial assets are what allow Compañía de Minas Buenaventura S.A.A. to maintain its position as Peru's largest publicly-traded precious metals mining company.

Finance: draft 13-week cash view by Friday.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Value Propositions

Compañía de Minas Buenaventura S.A.A. offers investors exposure to a portfolio spanning precious and base metals, which helps manage the volatility inherent in any single commodity market.

The company's direct operations in the third quarter of 2025 (3Q25) showed production across multiple streams, as detailed below:

The value proposition is enhanced by the company's participation in the copper market, primarily through its equity stake in Sociedad Minera Cerro Verde.

The exposure to copper is a key differentiator, providing a hedge and growth vector:

• Compañía de Minas Buenaventura S.A.A. holds a 19.58% equity interest in Sociedad Minera Cerro Verde.
• In 3Q25, Compañía de Minas Buenaventura S.A.A. commercialized 2,289 MT of Cerro Verde's contained copper, generating approximately US$24.7 million in net revenue.
• Cerro Verde announced a dividend distribution of $59 million on July 24, 2025, resulting in a total distribution of $108 million corresponding to Compañía de Minas Buenaventura S.A.A.'s equity share in August 2025.

Near-term growth is anchored by the commissioning of the San Gabriel project. Management has targeted an annual gold output of approximately 120,000 ounces once production stabilizes after the ramp-up phase. The company reported that San Gabriel cumulative progress reached 88% overall completion by the second quarter of 2025, with US$ 92.3 million in Capital Expenditures (CAPEX) allocated to the project in 3Q25 to complete the processing plant construction, enabling the commencement of commercial production in the fourth quarter of 2025. The initial guidance for San Gabriel production in 2025 was between 1.0k - 5.0k ounces as of September 30, 2025.

The company offers a value proposition rooted in deep experience, having been incorporated in 1953. This represents a defintely solid track record spanning over 72 years in Peruvian mining operations as of late 2025.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Customer Relationships

You're looking at how Compañía de Minas Buenaventura S.A.A. manages its key relationships, which is crucial for stable cash flow and social license to operate. This isn't just about selling metal; it's about managing perception and continuity.

Dedicated Investor Relations Team for Institutional Investors and Analysts

Compañía de Minas Buenaventura S.A.A. maintains a formal structure to engage the financial community. This relationship management is highlighted by events like the Investor Day, which took place on Tuesday, November 18, 2025, in New York, NY. The Head of Investor Relations, Mr. Sebastian Carrasco, welcomed participants. The executive team presenting to this customer segment included Mr. Leandro García, Chief Executive Officer; Mr. Daniel Dominguez, Chief Financial Officer; and Mr. Juan Carlos Ortiz, Vice President of Operations. The focus of this engagement was to outline the strategy for sustainable growth, unlocking flagship potential, and advancing the project pipeline, including the commencement of production at San Gabriel.

The direct engagement points for institutional investors and analysts include:

• Presentations led by senior management on corporate strategy.
• Financial performance and capital allocation strategy updates.
• Discussions on progress at key projects like San Gabriel.

Here are the key management personnel interacting with this segment as of the November 2025 event:

Direct, Long-Term Commercial Contracts with Major Metal Buyers

While the specific terms or volume breakdown of long-term contracts aren't explicitly detailed in the latest public releases, Compañía de Minas Buenaventura S.A.A. manages its sales across a mix of metals. The company noted that its revenues are a mix of 50% base metals and 50% precious metals, a mix they aim to maintain. Furthermore, the relationship with a major partner, Sociedad Minera Cerro Verde, is significant, with Compañía de Minas Buenaventura S.A.A. expecting a stable $150 million to $170 million of dividends per year from its 19.58% stake in the copper producer. This dividend stream represents a stable, long-term financial relationship tied to a major asset.

For context on the realized pricing environment influencing these sales relationships as of late 2025:

Realized prices include both provisional sales and final adjustments for price changes.

Proactive Social Management and Community Agreements to Maintain Operational Continuity

Maintaining operational continuity heavily relies on proactive social management, especially in Peru's operating environment. A concrete example of this relationship management is tied to the El Algarrobo Project in the Tambogrande district. Compañía de Minas Buenaventura S.A.A. received a Private Initiative Project grant for this, contingent on a Social Framework Agreement with the Comunidad Campesina Apóstol Juan Bautista de Locuto. The objective of this agreement is the design and execution of hydraulic infrastructure projects to supply water, focusing on the integral and sustainable development of the community's population. The contractual framework includes a Suspensive Period of up to three (3) years from the Option's Validity signing to the Social Agreement signing. The consideration for the Mining Concession Transfer Option Agreement related to this is USD 10,000,000.00, with an initial payment of USD 1,000,000.00 due upon signing the Option Agreement.

Transactional Sales Model for Spot Market Concentrate Sales via Buenaventura Trading

The transactional element of customer relationships is managed through Buenaventura Trading S.A.S., located in Montevideo, Uruguay. This entity acts as the vehicle through which Compañía de Minas Buenaventura S.A.A. purchases copper concentrate from Freeport, which is produced at Cerro Verde (where BVN holds a 19.58% stake). Critically, the concentrate purchased via this mechanism is then sold on the spot market by Buenaventura Trading. This indicates a direct, transactional relationship with the market for a portion of its base metal output, contrasting with any potential long-term contracts.

The scope of Buenaventura Trading's sales is reflected in the consolidated figures, as the 3Q25 operating metrics consider 100% of Buenaventura Trading in certain calculations. For instance, the Nine Months Ended September 30, 2025, volume sold attributed to Buenaventura Trading was 6,584 units (the specific metal unit is not defined in the snippet but is part of the metal sales volume reporting).

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Channels

You're looking at how Compañía de Minas Buenaventura S.A.A. gets its product and equity story out to the world, which is key for a major Peruvian miner operating globally. The channels here are a mix of physical commodity movement and financial market access.

Direct sales to international metal refineries and smelters form a core part of the physical distribution. This is especially true for the base metals segment, where Compañía de Minas Buenaventura S.A.A. has recently stepped up its direct involvement. For instance, the company started commercializing a portion of the copper concentrate sourced from Sociedad Minera Cerro Verde S.A.A. during the second quarter of 2025. By the end of 2Q25, approximately 20k WMT (Wet Metric Tons) of this concentrate had been sold. Management guided for a total sale of around ~40k WMT for the entire 2025 fiscal year through this channel. This move shows a direct push into the physical commodity sales chain.

The trading arm, Buenaventura Trading S.A., is the specific vehicle used for commercializing copper concentrate, often purchased from Freeport-McMoRan entities like Cerro Verde, where Compañía de Minas Buenaventura S.A.A. holds a 19.58% stake. This subsidiary then sells the concentrate on the spot market. For the nine months ended September 30, 2025, Buenaventura Trading sold 6,584 MT of copper. This trading channel allows the company to capture market pricing directly for a portion of its base metal output.

The company's equity presence is managed through dual listings, which is a critical channel for accessing capital and investor visibility. You can find Compañía de Minas Buenaventura S.A.A. on the New York Stock Exchange (NYSE: BVN) and the Lima Stock Exchange (BUE.LM). This dual access broadens the pool of potential equity investors, spanning US institutional money to local Peruvian capital.

Here's a quick look at the financial market channel metrics as of late 2025 data points:

The final physical channel involves direct shipments from Peruvian ports to global buyers. While the copper concentrate sales via Buenaventura Trading are one component, the company's overall sales structure, which includes gold, silver, zinc, and lead from its wholly-owned mines like Orcopampa and Tambomayo, relies on this logistics backbone. The realized prices for these metals, such as an average realized gold price of $3,594 per Oz in 3Q25, reflect the final destination and market reached through these shipping channels.

You can see the different ways Compañía de Minas Buenaventura S.A.A. moves its product and its stock:

• Ship copper concentrate via Buenaventura Trading S.A. on the spot market.
• Sell precious and base metals directly to international refineries and smelters.
• Provide equity access via the NYSE (BVN) and BUE.LM exchanges.
• Utilize Peruvian port infrastructure for global logistics of mined output.

Finance: draft 13-week cash view by Friday.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Customer Segments

The customer base for Compañía de Minas Buenaventura S.A.A. is segmented across physical commodity purchasers and financial market participants.

Global industrial metal buyers and processors are the direct off-takers for the base metals produced by Compañía de Minas Buenaventura S.A.A. operations. The company's 2025 updated guidance for total direct operations production includes volumes for lead, zinc, and copper, which are sold into industrial supply chains. For instance, the expected full-year 2025 production for copper is bracketed between 53,000 metric tons and 55,000 metric tons. Furthermore, the realized price for copper in the third quarter of 2025 was reported at $9,989 /MT. The expected 2025 output for zinc is targeted between 25,700 metric tons and 29,300 metric tons, while lead production guidance sits between 17,200 metric tons and 19,800 metric tons for the year. The vehicle through which Compañía de Minas Buenaventura S.A.A. purchases and sells copper concentrate, Buenaventura Trading, sells this concentrate on the spot market.

International precious metal refiners and bullion dealers purchase the gold and silver output. The company's 2025 updated guidance for total direct operations gold production is set between 112,000 ounces and 128,000 ounces. Silver production guidance for 2025 is projected to be between 14.2 Million ounces and 15.5 Million ounces. The realized price for gold in the third quarter of 2025 was $3,594 /oz, and the realized price for silver in the same period was $40.81 /oz.

Institutional investors and hedge funds are a key segment seeking exposure to Peruvian mining assets through the publicly traded shares of Compañía de Minas Buenaventura S.A.A. As of the second quarter of 2025, Institutions Ownership stood at 60.36%. This segment is actively trading, with reports showing material position increases by firms like JPMorgan Chase & Co. and Candriam S.C.A. during the second quarter of 2025. The financial performance metrics relevant to this segment include the third quarter 2025 reported Earnings Per Share (EPS) of $0.66, beating the expectation of $0.41. Revenue for the third quarter of 2025 reached $431.0M.

• Institutions Ownership as of Q2 2025: 60.36%.
• Third Quarter 2025 Net Margin: 30.7%.
• Analysts project fiscal year 2025 EPS around ~1.13.
• The company held a Zacks Rank #1 as of December 2, 2025.

Retail and high-net-worth investors trade Compañía de Minas Buenaventura S.A.A. shares on both the New York Stock Exchange (NYSE) and the Lima Stock Exchange (BUE.LM). As of November 21, 2025, the stock price on the NYSE was 23.02 USD. The total market capitalization for the company was reported at 6.43B as of the second quarter of 2025. This investor group is also attracted by income characteristics, as the company has a reported dividend yield (TTM) of 1.7%.

• Stock Price (NYSE) as of November 21, 2025: 23.02 USD.
• Market Capitalization: $6.43B.
• Dividend Yield (TTM): 1.7%.
• Short Percent as of Q2 2025: 1.72%.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Cost Structure

Compañía de Minas Buenaventura S.A.A. exhibits a cost structure heavily weighted toward capital-intensive mine development and expansion, particularly driven by the San Gabriel project as of late 2025.

The revised total Capital Expenditure (CapEx) guidance for the full year 2025 is set between US$ 400-420 million.

The San Gabriel project is the primary driver of this expenditure. As of September 2025, the cumulative CapEx for San Gabriel reached $681 million, with $92.3 million spent in the third quarter alone, allocated to completing the processing plant construction.

Operating costs are significant, covering mining, processing, and transportation activities, reflected in the Cost Applicable to Sales (CAS) metrics:

Exploration expenses for 2025 are projected to total between $60-$65 million, broken down into $40-$45 million for operating units and $20 million for non-operating areas.

Administrative expenses for 2025 are expected to be around $60-$65 million.

The cost structure also includes substantial commitments related to labor costs and social investment expenses in Peru, which are ongoing operational outlays.

• Capital-intensive structure driven by mine development and expansion CapEx.
• High 2025 CapEx guidance of US$ 400-420 million, mainly for San Gabriel.
• Significant operating costs for mining, processing, and transportation.
• Exploration expenses projected at $60-$65 million total for 2025.
• Labor costs and social investment expenses in Peru.

Compañía de Minas Buenaventura S.A.A. (BVN) - Canvas Business Model: Revenue Streams

You're looking at how Compañía de Minas Buenaventura S.A.A. brings in cash, which is heavily tied to metal prices and production from its Peruvian assets. Here's the quick math on the streams as of late 2025.

The primary revenue drivers come from the sale of metals mined at wholly-owned operations and from its significant stake in a major copper producer.

Direct Mining Operations Sales

• Sale of gold and silver doré from wholly-owned operations like Orcopampa and Yumpag.
• Gold production saw a 19% year-over-year decrease in Q2 2025, and a 21% decrease in Q3 2025 due to lower output at Orcopampa and Tambomayo.
• Consolidated silver production fell 11% in Q2 2025, but only 3% in Q3 2025.

Base metal sales are also a key component, sourced from operations like El Brocal. You see some volatility here based on operational status, like the El Brocal ore processing in Q2 2025.

The company's overall revenue performance in the first nine months of 2025 reflects this mix, with revenue reaching US$ 1,108.24 million for the nine-month period ending September 30, 2025.

Investment Income and Joint Venture Revenue

Revenue streams are diversified by the equity stake in Sociedad Minera Cerro Verde S.A.A., which is a major Peruvian copper producer where Compañía de Minas Buenaventura S.A.A. holds a 19.58% interest as of September 30, 2025.

• Dividends from the Cerro Verde stake totaled US$ 108 million for the year as of Q2 2025, with a $59 million dividend received in Q2 2025 alone.
• Commercial revenue from selling Cerro Verde copper concentrate began in Q2 2025.
• Approximately 20k WMT of Cerro Verde copper concentrate had been sold by the end of Q2 2025, out of a total expected sale of ~40k WMT for the full year 2025.

The total revenue projected for Compañía de Minas Buenaventura S.A.A. for the full year 2025 is around $1.49 billion. For context, Q2 2025 net sales were $369.5 million, and Q3 2025 revenue was $431.04 million.

Finance: draft 13-week cash view by Friday.