Buenaventura Mining Company Inc. (BVN) fair value

ACCE thesis

Buenaventura is a Peruvian miner whose output is mostly silver and gold, with copper, lead and zinc as by-products, sold from its Yanacocha, Orcopampa and Uchucchacua operations (the Cerro Verde stake, held through its equity interest, adds copper exposure). The reason to look closer is the margin profile: a 41.9% operating margin and 61.2% gross margin on 43.2% revenue growth, with a trailing P/E of 7.1 against a forward P/E of 36.5, which tells you earnings are currently depressed relative to what the market expects to recover. That gap between trailing and forward multiples is the core question, since it implies either a sharp earnings reset that has already passed or a step-down that analysts are pricing in and the reader needs to test. Buenaventura carries a 27.8% ROE and sits at a 7.9 billion USD market cap with no index membership, which is an unusual combination for a name this size and may mean less passive ownership and more room for mispricing. Before going further, the diligence should focus on Peruvian jurisdiction and permitting risk at Yanacocha, and on whether the forward earnings estimate survives contact with the metal price assumptions behind it.