Buenaventura stock hits 52-week low at $11.61 amid market challenges By Investing.com

In a turbulent market environment, shares of Buenaventura Mining (NYSE:) Company have touched a 52-week low, with the stock price descending to $11.61. Trading at just 9.6 times earnings and below book value, InvestingPro

analysis suggests the stock may be undervalued at current levels. The Peruvian precious metals miner has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of 23.62%. Despite these challenges, the company maintains impressive gross profit margins of 50.5% and operates with strong liquidity, as evidenced by a healthy current ratio of 1.82. Investors have shown concern as the company grapples with operational challenges and fluctuating commodity prices, leading to a cautious stance on the stock. The current price level marks a critical juncture for Buenaventura as it navigates through these market conditions, aiming to regain its footing and investor confidence. For deeper insights into Buenaventura’s financial health and additional ProTips, explore the comprehensive analysis available on InvestingPro.

In other recent news, Compañía de Minas Buenaventura showcased a robust recovery in Q3 2024 with a substantial increase in EBITDA, net income, and silver production. The company reported an EBITDA of $132 million, net income of $237 million, and silver production of 4.4 million ounces. Moody’s (NYSE:) recognized these improvements by upgrading Buenaventura’s credit rating to B1.

Contributing to the firm’s financial health, the sale of the Chaupiloma Royalty Company resulted in a cash inflow of $210 million. The company’s strategic growth is also marked by advancements in the San Gabriel and El Brocal projects. However, it’s noteworthy that the San Gabriel project faced increased cash costs, up by 60% from the original plan.

In terms of future expectations, analysts predict an average throughput of 12,500 tonnes per day by El Brocal in early 2025, and anticipate the San Gabriel project to generate $100 million in EBITDA annually. It’s also projected that dividends from Cerro Verde will be around $150 million. These recent developments provide a snapshot of Buenaventura’s performance and future projections.

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