Hochschild Mining Share Discussion Threads

[stevea171] 19/1/2017 08:20

Hochschild Mining (LON:HOC) 236 pence, Mkt Cap £1.2bn – Record production in 2016 and increased guidance for 2017

Hochschild Mining reports that it achieved record attributable production in 2016 with 17.3m oz of silver and 246 koz of gold representing 35.5m equivalent ounces of silver - a 31% increase on the 27.0m oz of attributable equivalent oz achieved in 2015.

The company is indicating that all in sustaining costs for 2016 are “expected to be between $11.0 and $11.5” per silver equivalent ounce.

Hochschild Mining is guiding the market to expect another record production year in 2017 with a target of 37m oz of silver equivalent, “exceeding previous guidance of 35.0 million ounces.” Cost guidance is for $12.2-12.7 per silver equivalent ounce. The company is also indicating that it expects to spend $120-130m on development and sustaining capital in 2017.

Production during the first full year of production at the Immaculada mine exceeded the company’s original forecast at 16.9m ounces of silver equivalent or around half of the group’s attributable output. The company expects Immaculada to produce around 17m oz of silver equivalent in 2017.

The company reports a strengthening of its financial position as a result of the increased production levels, with a halving of net debt to $183m during the year and increased cash of $56m leaving Hochshild Mining with a cash balance of $140m at the end of 2016.

Conclusion: The impact of Immaculada is delivering increased production, strengthening the company’s financial position and company forecasts show this continuing into 2017.

www.proactiveinvestors.co.uk/columns/sp-angel/26909/today-s-market-view-ariana-resources-plc-bluerock-diamonds-plc-central-asia-metals-ltd-edenville-energy-golden-star-resources-hochschild-mining

[shakeypremis] 19/1/2017 08:14

Normal service resumed. If we do get a turnaround here in the upward direction I think it will be very strong. As someone said earlier on this thread, HOC is like a coiled spring.

Caveat, we of course need supportive metal prices. We are at a crucial point with regards to PM prices.

[eeza] 19/1/2017 08:06

Looks to be going in the opposite direction at the moment.

[lauders] 19/1/2017 00:53

Thank you for your reply to my cup and handle query SG. A bullish wedge will do me just as well ta ;-)

Would be nice to see HOC just back over 300p short term. The rest can follow in due course!

[saturdaygirl] 18/1/2017 18:24

I can`t keep posting sahara`s charts here but her USDollar prediction with a plot of the right shoulder is worth a look .

[saturdaygirl] 18/1/2017 18:16

A sahara Silver chart


Looks the same as the HOC chart but has broken the current bullish wedge .

[dstorey1] 18/1/2017 18:11

Neck on line prediction. Post 20th expect a major fall in USD, counter move in precious metals and significant probability of equity crash. Interesting times!!

[banj] 18/1/2017 17:35

I will take the 560p thanks SG!

[saturdaygirl] 18/1/2017 16:29

Lauders

More of a bullish wedge followed by a breakout and now another wedge waiting to be broken

Target £5.60


free stock charts from uk.advfn.com

[daybreakers] 18/1/2017 16:26

yeah I hold fres too.

[onedayrodders] 18/1/2017 16:22

chart action at FRES almost identical

[lauders] 18/1/2017 16:20

Does the long term chart above look a bit like a cup and handle or not really? I am probably wishing too much ;-)

[breaktwister] 18/1/2017 16:18

Huge day for silver imo. Making significant gains while gold is only steady.

[kryptonsnake] 18/1/2017 16:05

The sooner the better! It seems like the only hold back here. It's like a coiled spring ready to go off lol

[onedayrodders] 18/1/2017 16:01

Pallancata issue sounds like it will be resolved soon.

[rathkum] 18/1/2017 15:40

Hochschild Mining: RBC Capital Markets reiterates Outperform with a target price of 290p.

[kryptonsnake] 18/1/2017 15:36

Silver above 1730 now. I added at about 238, if we break above 245 we should start to move much higher.

[stevea171] 18/1/2017 15:31

Further to Pallancata:
"We are in still in the process of negotiation with the community but have been clear that we are not going to change land agreements that have contracts and that were negotiated in good faith. However, for future parcels of new exploration land etc we have said that we are willing to negotiate new terms."

[andyc100] 18/1/2017 15:26

Thanks stevea171. Will try and listen to the playback later.

[stevea171] 18/1/2017 15:18

Andy. This was mentioned.
Dividend will be determined by the Board when FY results are released in March.

[kryptonsnake] 18/1/2017 15:07

Silver seems to be outshining gold at the mo!

[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.