The reason to be bullish on copper is simple: Every major theme framing the global economy – AI data centers, electrification, EVs, power grid expansion – uses massive amounts of copper. That’s why I like Compañía de Minas Buenaventura SA (BVN), one of the largest metals mining companies in Peru, says Carl Delfeld, editor of Cabot Explorer.
Take AI hyperscale data centers. They are essentially copper-and-aluminum frames wrapped around threads of silicon. S&P Global sees global copper demand rising from roughly 28 million metric tons today to 42 million by 2040.
Compania de Minas Buenaventura SA (BVN)
Near term, timing also seems positive. First, the war in the Middle East is creating bottlenecks and delaying copper shipments. And when supply temporarily shrinks, traders price in scarcity fast – leading to surging spot premiums, especially in Asia.
Second, beginning several days ago, China started restricting exports of sulfuric acid, a chemical essential to copper mining. That’s likely to curtail production at the source so traders have to price in that risk. The result is genuine demand growth and supply-risk stress.
BVN started back in 1953 with the acquisition of the Julcani Mine. Today, the company continues to focus primarily on mining, developing, and exploring gold, silver, and other metal mines – including lead, zinc, and copper.
BVN operates seven mines in Peru – and the company has a nearly 20% interest in Sociedad Cerro Verde, a leading copper producer in Peru. BVN also began production at its Yumpag mine in 2025, with annual silver production expected to be between 8.3 million ounces and 8.6 million ounces.
Production remains strong. The company produced a total of 30,035 ounces of gold, 3.9 million ounces of silver, 4,495 metric tons of lead, 7,379 metric tons of zinc, and 10,898 metric tons of copper in the quarter.
Since copper, silver, and gold prices remain robust, the company’s sales and earnings are accelerating.
First-quarter earnings are forecast to surge 98% year-over-year to $1.09 per share. Revenue is expected to more than double year-over-year to $637 million.
Recommended Action: Buy BVN.
