10 Most Undervalued Silver Mining Stocks to Buy According to Analysts

8. Compañía de Minas Buenaventura S.A.A. (NYSE:BVN)

Average Upside Potential: 20.70%

Number of Hedge Fund Holders: 13

Forward P/E ratio: 9.16

Compañía de Minas Buenaventura S.A.A. (NYSE:BVN), a leading Peruvian mining company, is engaged in the exploration, development, and operation of mineral processing assets. Operating core mining units such as Tambomayo, Orcopampa, Uchucchacua, Julcani, and San Gabriel, the company yields gold, zinc, lead, silver, and copper. The company also holds interests in top mines, including Cerro Verde, El Brocal, and Coimolache.

Increasing silver sales and higher realized prices led to a drastic surge in the Compañía de Minas Buenaventura S.A.A.’s (NYSE:BVN) profitability in 2024. EBITDA reached $431 million, more than twice the $199 million reported in 2023. Substantial production and higher metal prices led to an EBITDA margin increase from 24% to 37%. Due to growing silver output and favorable market conditions, income rose to $402.7 million from just $19.9 million in 2023.

Furthermore, compared to 9.2 million ounces in 2023, silver production reached 15.5 million ounces, marking a 69% increase in 2024. Increased production from the Uchucchacua and Yumpag mines drove the growth. Despite this, increased exploration expenditures and inflationary pressures resulted in the company’s all-in-sustaining cost rising by 26% in Q4.

Moreover, backed by dividend inflows of $166.5 million and higher free cash flow, Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) strengthened its financial position with a cash balance of $478 million at the end of 2024. To refinance existing debt, the company issued $650 million in senior unsecured notes maturing in 2032. Moving forward, the San Gabriel project remains a key growth driver, with commissioning milestones planned for 2025.

However, challenges persist, including potential cost pressures at El Brocal due to lower by-product credits. By leveraging substantial silver output and ongoing project advancements, Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) remains positioned for further expansion. Thus, it is one of the most undervalued stocks to buy.