We recently published a list of 10 Most Undervalued Silver Mining Stocks to Buy According to Analysts. In this article, we are going to take a look at where Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) stands against other most undervalued silver mining stocks to buy according to analysts.
Fueled by growing demand across industrial, investment, and technological sectors, the silver mining industry continues to expand. According to The Business Research Company, the global silver ore industry has grown substantially from $7.87 billion in 2024 to $8.56 billion in 2025 at a CAGR of 8.7%. This has been driven by demand from renewable energy, medical devices, and consumer electronics. Moving forward, the industry is predicted to reach $11.87 billion by 2029 at a CAGR of 8.5%, backed by advancements in recycling initiatives, silver refining, and the rising role of silver in green technologies.
Silver prices rose, reaching their highest levels since 2011, surpassing $30 per ounce in 2024 due to the weakening U.S. dollar, inflationary pressures, and geopolitical instability. According to The Silver Institute, short covering and growing silver deliveries to CME warehouses have been fueled by climbing tariffs under the Trump administration, contributing to market volatility. Accordingly, silver Futures produced a 34.97% one-year return as of March 4, 2025, significantly outperforming the market’s 12.61% return. This reflects firm investor confidence in silver as a hedge against economic uncertainty.
Moreover, according to The Silver Institute, total consumption is forecasted to be 1.2 billion ounces, supporting the statement that silver demand will remain strong in 2025. The report further mentioned that fabrication demand will exceed 700 million ounces for the first time as industrial applications will drive most of the silver demand.
Silver is utilized in electric vehicle (EV) manufacturing in charging infrastructure, batteries, and semiconductors, highlighting its significant role in the automotive industry. The S&P Global Mobility forecasts that 2025 global battery electric vehicle sales are expected to reach 1.5 million units, reflecting a 30% growth from 2024 levels and accounting for 16.7% of total global light vehicle sales.
Silver consumption is anticipated to rise significantly due to this surge in EV adoption. Backed by the charging station expansion, infrastructure investments, and broader decarbonization efforts, The Silver Institute predicts that in 2025, silver demand will reach 90 million ounces.
The firm also highlighted global silver supply is predicted to rise by 3% to 1.05 billion ounces in 2025, marking an 11-year high. Due to increased output in Morocco, China, and Canada, silver mine production is forecasted to reach 844 million ounces. However, additional supply growth could be restricted due to limited capital expenditure in base metal mining and decreasing ore grades. Fueled by higher industrial scrap recovery, silver recycling is predicted to increase by 5%, exceeding 200 million ounces for the first time since 2012.
In 2025, the silver market is predicted to remain in a deficit of 149 million ounces despite the rising production, extending its supply shortfall for the fifth consecutive year. WisdomTree report projects that silver prices will be pushed to $40 per ounce by Q3 2025 due to a sustained deficit, coupled with strong industrial and investment demand.
Thus, silver remains an attractive investment due to constrained supply, ongoing economic uncertainties, and a strong demand outlook. With this, let us take a look at the 10 most undervalued silver mining stocks to buy according to analysts.
Methodology
To compose our list of the top 10 Most Undervalued Silver Mining Stocks to Buy According to Analysts, we utilized Finviz stock screener to find the 10 largest companies trading below the forward P/E ratio of 15, as of March 5, 2025. Furthermore, Insider Monkey’s Hedge Fund database was used to evaluate hedge fund sentiment as of Q4 2024. Finally, the stocks are organized in ascending order based on average upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Large scale mining machinery operating in a quarry, showing the vast operations of the company’s mining units.
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.
Overall, BVN ranks 8th on our list of most undervalued silver mining stocks to buy according to analysts. While we acknowledge the potential of BVN, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
