Hochschild Mining Share Discussion Threads

[andyc100] 18/1/2017 14:59

Is there any talk of an increased year end dividend?

[andyc100] 18/1/2017 14:59

The market liking the content of the conference call

[stevea171] 18/1/2017 14:25

Presentation Q&A.
2021 bonds are trading above par presently but can be repaid at 1.03 in January next year. That would be first priority for allocation of free cash flow.
Pallancata dispute. Government is taking the leading role in seeking resolution with the indigenous people. HOC will advise when there is a settlement. The 6 million Ag equivalent oz from this mine in 2017 will be 3/4 from Pablo vein.

[onedayrodders] 18/1/2017 12:51

So true DB .... refreshing change from BS blue sky promises and endless lifestyle placings

[hectorp] 18/1/2017 12:51

Good news, conference call 2pm, but I am taking on board the Indidginous peoples' dispute too.

[goldenshare888] 18/1/2017 11:26

I agree DT and also many waiting for GOLD to print $1222, $1247, $1258 ...

Any of the above levels could be taken out ANY day now and possibly ALL in ONE day!!


Many will pay higher prices as GOLD & SILVER BULL advances!

Always the way..........

[dt1010] 18/1/2017 11:18

I think a lot of people are concerned about silver not breaking $17.25

And then selling off short term hence why no new money is being committed to silver miners right now...

Until we see a break of that level we will stagnate, IMO.

[edjge2] 18/1/2017 11:17

shakey explains no wakey

[shakeypremis] 18/1/2017 10:49

Yes, short of a seller, I suppose the dispute is a very likely explanation for the lackluster performance of the share price

[stevea171] 18/1/2017 10:37

As mentioned a number of times, incl yesterday, the Pallancata dispute is the key to the share price under performing. The statement in this report is not sufficient in itself.

In Q4 approx 800k Ag equiv oz were lost from production at Pallancata due to the road closure by the indigenous people who are claiming new compensation over land rights. Production remains idled whilst talks are on going facilitated by the Government. The government was party to the original settlement of compensation going back 10 years or so. Pallancata is to move into much higher production this year with the first ore to be processed from the Pablo vein which has been developed over the past year and contributing to the 6 million Ag equiv oz forecast for the mine this year. Institutions are wanting more colour on how this dispute is to be resolved so there is clarity on how and when Pallancata can return to production.

"At Pallancata, production in Q4 was 317,000 ounces of silver and 1,470 ounces of gold bringing the silver equivalent total to 426,000 ounces. The significant reduction versus the third quarter was due to the previously announced road blockade by members of a local community which has halted output since early November 2016. Discussions with relevant parties, which have been facilitated by the Government, remain ongoing. Overall the mine produced 3.5 million silver equivalent ounces in 2016 reflecting a transitional year before the introduction of commercial production from the Pablo vein in 2017."

[shakeypremis] 18/1/2017 09:58

Meanwhile I will see if I can scoop up some more shares.

[shakeypremis] 18/1/2017 09:57

We'll see won't we.

[stevea171] 18/1/2017 09:46

Shakey. "WhatsItGonnaTake?"

240p+ Depends on this:

A conference call will be held at 2.00pm (London time) on Wednesday 18 January 2017 for analysts and investors.

Dial in details as follows:

International Dial in: [phone]

UK Toll-Free Number: [phone]

Pin: 84813687#

[shakeypremis] 18/1/2017 09:39

Hochschild's new slogan should be;

#240+?WhatsItGonnaTake?

[stevea171] 18/1/2017 08:58

Hochschild Mining Exceeds Its Annual Production Targets - Quick Facts
1/18/2017 2:34 AM ET

Hochschild Mining plc (HOC.L) reported record full year attributable production in 2016 with: 17.3 million ounces of silver; 246.1 thousand ounces of gold; 35.5 million silver equivalent ounces which was up 31% from 2015; and 479.6 thousand gold equivalent ounces. The company said its 2016 all-in sustaining costs per silver equivalent ounce is on track to meet $11.0-11.5 guidance.

In the fourth-quarter 2016, the company delivered attributable production of 116.6 thousand gold equivalent ounces or 8.6 million silver equivalent ounces. This comprised of 4.1 million ounces of silver and 61.6 thousand ounces of gold.

Hochschild Mining recorded total cash of approximately $140 million as at 31 December 2016. Net debt is approximately $183 million as at 31 December 2016; $127 million of debt repaid in 2016.

The overall production target for 2017 is 37.0 million silver equivalent ounces or 500 thousand gold equivalent ounces exceeding previous guidance of 35.0 million ounces. The all-in sustaining cost per silver equivalent ounce in 2017 is expected to be between $12.2 and $12.7. Excluding the increased investment in resource growth as well as the one-off investment in Pablo infrastructure, the all-in sustaining cost forecast is between $11.5 and $12.0 per silver equivalent ounce. The overall capital expenditure budget for 2017 is approximately $120-130 million.

Ignacio Bustamante, CEO said: "In 2017, we will continue our focus on cost effective organic growth with the start of production from the new Pablo vein as well as an increase in brownfield drilling as part of our recently announced exploration programme. We are also targeting a fifth consecutive year of production increases and, despite the rise in brownfield investment, cost control at all our mines will remain a priority."

by RTT Staff Writer

[topicel] 18/1/2017 08:54

Yep, they keep exceeding guidance.

And with the COMEX paper play about to meet a new master, and JPM hoarding hundreds of thousands of ounces with that in mind, any sea change in the silver price and gold/silver ratio will send this share to new 12-month highs pretty soon.

Will we have the expected buying later today as the market digests this production news and see the forecast 250p-plus? That would be my hope and expectation.

Topicel

[stevea171] 18/1/2017 08:51

Silver and gold maintaining the gains of yesterday.
Silver at $17.14 breaking out from the down trend of the past 6 months.
If it holds here for a few more days, targeting $20 plus again.

[stevea171] 18/1/2017 08:41

Operational highlights

§ Record full year attributable production in 2016

o 17.3 million ounces of silver

o 246.1 thousand ounces of gold

o 35.5 million silver equivalent ounces, up 31% versus 2015 (27.0 million ounces)

o 479.6 thousand gold equivalent ounces (2015: 365.4 thousand ounces)

§ Inmaculada's first full year of production exceeded original forecast

o 163 thousand ounces of gold

o 4.9 million ounces of silver

o 229 thousand gold equivalent ounces

o 16.9 million silver equivalent ounces

§ 2016 all-in sustaining costs per silver equivalent ounce on track to meet $11.0-11.5 guidance

Strengthening financial position

§ Total cash of approximately $140 million as at 31 December 2016 ($84 million as at 31 December 2015)

§ $127 million of debt repaid in 2016

§ Net debt of approximately $183 million as at 31 December 2016 ($366 million as at 31 December 2015)

§ Current Net Debt/LTM EBITDA of approximately 0.55x as of 31 December 2016

2017 guidance

§ Record attributable production target of 37.0 million silver equivalent ounces (500 thousand gold equivalent ounces) exceeding previous guidance of 35.0 million ounces

§ All-in sustaining costs now expected to be $12.2-12.7 per silver equivalent ounce due increased brownfield exploration investment and forecast Pablo expenditure

o Sustained control of underlying costs: Excluding the improved investment in brownfield exploration and one-off Pablo investments, all-in sustaining costs would be $11.5-12.0

o Inmaculada costs expected to be $9.0-9.5 per silver equivalent ounce

§ Total sustaining and development capital expenditure expected to be approximately $120-130 million including $20 million to develop Pablo vein and its surrounding infrastructure

[edjge2] 18/1/2017 08:36

this little pig can fly

[goldenshare888] 18/1/2017 08:29

We ain't seen anything yet........

Holding 100% for BIG money in 2017!

:))

[stevea171] 18/1/2017 08:19

The market seems to like the report 244p so has smashed 240p.

[goldenshare888] 18/1/2017 08:03

HOC could be a serious cash cow this year.

:)))

[kryptonsnake] 18/1/2017 08:01

Siver and gold only $4-$5 down from when HOC closed yesterday, not really a big drop considering the initial rise up. Will have to see what they do for the rest of the day.

RNS looks pretty good to me.

[goldenshare888] 18/1/2017 07:59

The debt reduction is tremendous.

The production increase is excellent.

Increasing expenditure on brownfield exploration is the right move in my view.

This company is highly experienced and is sitting on some fantastic assets.

Cash $140 million :)))

Should be 320p+ already.