Hochschild Mining Share Discussion Threads

[hectorp] 01/11/2016 10:18

It would be good to breach the last high over 300 this month!

[goldenshare888] 01/11/2016 10:17

I have a theory re apparent price suppression/pause here:

HOC: UNDER ACCUMULATION from BIG BOYS !

The potential for serious gains here is very good/enormous in my view.

:))

[daybreakers] 01/11/2016 10:14

Like I said, Hoc follows silver more than gold. If it followed gold, share price would be over 280 but it's not is it whilst all the other gold miners are up, hoc has remained level just like silver.

Ciao.

[potts650] 01/11/2016 09:33

Feels like its been a while since we breached $18 for silver. Lets hope it continues to strengthen and move upward.

[topicel] 01/11/2016 08:37

Agreed GS. My sense is this is ready to move north quite strongly later this week and possibly beyond whatever results we get in the States.

Assuming the PMs are left to their own devices...

We never did get that 300p in October, so maybe miss that level out and smash through to 400p as if it wasn't there?! Then I woke up. Lol.

Topicel

[goldenshare888] 01/11/2016 07:53

BIG moves ahead here.........

:))

[edjge2] 31/10/2016 21:33

I think new month will change pm weather.

[topicel] 31/10/2016 08:51

Thanks extrader. Yes indeed, a rise in 'E' is the cure, which is what I was kinda hinting at with the debt reduction comment I made.

Either or both, indirectly reducing interest payments or simply increasing production and profitability will do the trick. Both are underway but, as I say, it needs watching as people often don't invest on the 'detail', do they?!

Clearly, unless more email news breaks to the detriment of Hillary, the market's in almost all sectors are on hold until Tuesday week it seems. Then what???

Topicel

[goldenshare888] 31/10/2016 08:02

I agree 100% and am using a projected forward (2017) PE of 4 for my own calculations.


I prefer to look forwards rather than backwards when valuing investments!

:))

Whether the PE is 6.2 or 4 next year I expect HOC to be 700p+ (of course the PE ratio will rise accordingly)

[johntrustee] 31/10/2016 06:42

Hi Lauders, PE ratio of 22 is only arrived at if you take interest and debt repayments off the bottom line. If you take the basic PE ratio of price/earnings you get 6.2, as given in the Daily Telegraph.

The fact that the company is paying off its debt at a remarkable rate is no bad thing, so I take 6.2 as the true PE ratio.

Over 50 years I have seen analysts mangle figures. Accounting is not, is not nearly, a precise study. It depends on your interpretation of the situation.

[colinvest] 31/10/2016 05:29

India super-computer predicts a Trump victory; and they've got a 100% track record !

[spagnolia] 31/10/2016 04:12

Silver doing well - Trump effect in the US as all the news is about Clinton and super negative!!

[lauders] 31/10/2016 01:14

What matters here to me is the debt reduction and rising earnings from higher commodity prices so I would tend to agree Extrader ;-) Those dividends will hopefully continue and get larger too :-)

[extrader] 30/10/2016 16:59

Hi Topicel,

The 'cure' for a high P/E that TMF postulates is a reduction in P, you could as well argue that another 'cure' is a rising E...which seems to be what we're in fact seeing, n'est-ce pas ?

ATB

[topicel] 30/10/2016 13:43

But do you not at least accept the point about the P/E ratio being rather high for the sector?

Of course more debt reduction should be coming, but nothing is a given and so the caution is justified somewhat unless or until the PM prices start rebounding...

I remain long but observant btw.

Topicel

[goldenshare888] 30/10/2016 11:49

LOL - Where on earth do they dig this clap trap up from?

Vested inerest seem to want lower prices in the face of reality.

Seeing how many hundreds of millions have been lost by large hedge funds shorting miners this year (DOH) i can see where their concern of yet further gains (losses for them ) come from!

:))

[lauders] 30/10/2016 03:19

NOT a great believer in TMF as stated before but here is a piece that is partially on HOC for what it is worth:

All that glisters…

Silver and gold specialist Hochschild Mining is also enjoying splendid output rises of its own, and silver output leapt to a record 5m ounces during July-September thanks to improving metal recoveries at its Inmaculada and Arcata projects.

While the silver market has supply/demand problems of its own however, I reckon Hochschild’s revenues outlook is on safer footing than that of Kaz Minerals.

The ongoing political and economic turmoil facing the global economy should keep precious metal values well supported long into the future, even if prices have come off the boil more recently amid expectations of Federal Reserve rate hikes. Indeed, the London Bullion Market Association predicted last week that gold will trade at $1,347.40 per ounce in 2017, up from around $1,260 recently.

Having said that, both Kaz Minerals and Hochschild Mining deal on forward P/E ratios of 22.5 times and 25 times respectively, well above the watermark of 15 times that’s widely considered attractive value.

I reckon these figures could prompt hefty share price retracements should metal prices continue to trend lower.

[obbig60] 29/10/2016 11:37

Yes SG, the slow Stoch will eventually return to 20 or below but no-one can predict when, and the Silver price might go higher before that happens. Chartists seem to forget that charts are driven by events and only tell you about the past.

[lauders] 29/10/2016 08:53

9 weeks! I hope not SG!

Posted some pieces on the AG BB.

I see that the Indian market is doing OK as it is the "time of year". Ad blocker not liked by this site:

[saturdaygirl] 28/10/2016 23:52

Lauders

This is the Silver chart i`m struggling with , the monthly Stock chart will probably complete its cycle and go below the 20 value around the first week in January . Until then we have Silver under pressure and HOC too .
Also note the Stoch indicator value just before the rise into 2016 around the 20 value .So i see downward pressure from here or sideways at best for the next 9 weeks .

[dt1010] 28/10/2016 22:10

Trump will win or there'll be a revolution

[topicel] 28/10/2016 17:44

Celeritas, not many who frequent this board or some others related to PMs would disagree about the money printing farce. The only question is when will it really come home to roost.

And something equally novel is tried to make up for it. Trillions of dollars in debt, almost every major western country swimming in it and yet still they print more against the backdrop of little growth.

What's more the Fed will probably move in December but it'll be muted with a commentary that they'll do little more for six months until second half of 2017. It'll give them room to cut them too, especially once Hillary starts spending...

The brakes must be let off the PMs after the election, at least for a mini bounce back. Good weekend all.

Topicel

[juju44] 28/10/2016 16:45

PM's getting whacked in the daily ritual . Surprised this survived