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Buenaventura (BVN) Gets Operating Permit for Yumpag Mine

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Buenaventura Mining (BVN - Free Report) announced that it received the final operating permit from the Peruvian Ministry of Energy and Mines to start production at the Yumpag mine. This milestone marks the start of 1,000-ton-per-day continuous mining at Yumpag.

The Yumpag project receiving this approval is an important step for Buenaventura to produce high-grade silver resources, with promising exploration campaigns in the mine.

This approval also marks the end of extensive planning and preparation.

In September 2023, the company announced that it received an Environmental Impact Assessment  approval by the Peruvian Environmental Certification authority  for the Yumpag mine. The company has so far secured the relevant project stages and clearances in a timely manner, which displays its ability to capitalize on opportunities and execute strategic objectives effectively.

Buenaventura expects to produce 6.5-7.2 million silver ounces in 2024.

The company reported an adjusted loss per share of 1 cent in fourth-quarter 2023, which fell short of the Zacks Consensus Estimate of earnings of 16 cents. Notably, the company reported earnings of 28 cents in the year-ago quarter.

Buenaventura’s  revenues rose 3.3% year over year to $254 million in the quarter under review. The company’s top line beat the Zacks Consensus Estimate of $225 million. Higher commodity prices and volumes of silver sold led to the improvement in revenues.

Price Performance

Shares of Buenaventura have surged 109.9% in the past year against the industry’s 8% decline.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

Buenaventura currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Ecolab Inc. (ECL - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) . ECL and CRS sport a Zacks Rank #1 (Strong Buy) at present, and HWKN has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 41.8% in a year.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 33.5% in a year.

The Zacks Consensus Estimate for Hawkins’ fiscal 2024 earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 30.6%. The company’s shares have rallied 70% in the past year.


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