Hochschild Mining Share Discussion Threads

[blowitall] 16/8/2017 08:13

Well now we know what the market thinks...another buy opportunity sub 300 but will wait a while to see how things settle!

[stevea171] 16/8/2017 08:11

Dividend same as for H1/16: 1.38c share.

This share price fall well overdone on the back of the take down of the PM's yesterday.
-40p in a few hours of trading!

[dt1010] 16/8/2017 08:11

Am ready to buy more :))))

[dmitribollokov] 16/8/2017 08:08

Ouch - ebitda quite grim y-on-y but px reaction seems harsh.

[dt1010] 16/8/2017 08:08

When silver lights up again it will carry this to new highs. Plenty of money waiting until silver quits falling from its NK push to enter here.
Won't be long. Aug and Sep both great months for PMs.
336p was the high.

[blowitall] 16/8/2017 07:58

Pretty much thoughts Lauders. All sound figures and reduced debt but nothing to bring in a new crowd of punters. Sort of steady as she goes....not that I am a great reader of figures.

[dt1010] 16/8/2017 07:58

Very happy with all that. Everything on track. Debt down. Divi up.

No complaints :))

[majorpain2] 16/8/2017 07:57

Profit showing the damage done by low PM prices this year, Arcata was barely profitable at $16.

Rather glad I don't hold too many this morning, HOC is about to join my other goldies at the bottom IMO.

[dt1010] 16/8/2017 07:57

Very happy with all that. Everything on track. Debt down. Divi up.

No complaints :)

[lauders] 16/8/2017 07:57

Exploration

Over the last two years, the key discovery by our brownfield exploration team has been the Pablo vein at the Pallancata deposit in mid-2015 and since then, the quality and quantity of this resource has increased significantly whilst providing the team with the possibility for an ongoing reinterpretation of the surrounding district. Throughput at Pallancata is expected to rise towards the end of the year once the necessary permits are received from the Peruvian government in the fourth quarter. In addition, the Company's annual brownfield programme, which has already started to deliver positive results, is due to ramp up in the second half with drilling campaigns to be carried out at Inmaculada, San Jose and Arcata as well further initiatives at other prospects, again subject to permitting.

[spagnolia] 16/8/2017 07:54

Excellent drilling results!

[stevea171] 16/8/2017 07:53

At Inmaculada, although the main drilling programmes have not begun yet, mine development during the period has allowed a reinterpretation of the geological model at the deposit and has so far identified a further 9.7 million silver equivalent ounces of resources.

[lauders] 16/8/2017 07:47

A lot to read and not much time to do it at the moment. Not sure how the market is going to take these results. A lot of figures seem to be down on comparsions. The debt is reduced. The dividend is up. Things look all set for the future. With more weakness to silver and gold at this very minute we might drop more today. Thoughts?

[stevea171] 16/8/2017 07:46

Hochschild Mining plc

Interim Results for the six months ended 30 June 2017

2017 Interim Results Highlights

§ Revenue of $340.8 million (H1 2016: $339.3 million)1

§ Adjusted EBITDA of $136.0 million (H1 2016: $170.3 million)2

§ Profit before income tax of $39.9 million (H1 2016: $60.3 million)

§ Adjusted basic earnings per share of $0.03 (H1 2016: $0.05)3

§ Cash and cash equivalent balance of $144.5 million as at 30 June 2017 (31 December 2016: $140.0 million)

§ Net debt of $164.7 million as at 30 June 2017 (31 December 2016: $187.4 million)

§ $18.5 million of debt repaid in H1 20174

§ Net debt/annual Adjusted EBITDA of 0.56x as at 30 June 2017 (31 December 2016: 0.57x)

§ Interim dividend of 1.38 cents per share ($7.0 million)

§ Brownfield drilling programme ramping up in H2 - starting to deliver positive results

H1 2017 operational delivery in line with guidance

§ H1 2017 AISC per silver equivalent ounce from operations of $12.0 (H1 2016: $10.9) ahead of guidance of $12.2-12.75

§ Half year production of 17.9 million attributable silver equivalent ounces (H1 2016: 17.0 million ounces)6

H2 2017 Outlook

§ On track to deliver record attributable production target of 37.0 million silver equivalent ounces for 2017

§ AISC expected to be in line with $12.2-12.7 per silver equivalent ounce guidance

Ignacio Bustamante, Chief Executive Officer said:

"Hochschild Mining continues to deliver a robust operational performance with both production and cost targets for 2017 on track. Towards the end of the year, once permits are in place, we can expect further progress with the development of the Pablo vein at the Pallancata deposit as well as several brownfield drilling campaigns across the Company's portfolio. I am confident that our Company has the financial and operational flexibility to meet our upcoming debt commitment, fund an extensive brownfield programme and assess value accretive opportunities as they arise.

[stevea171] 15/8/2017 23:24

Obbig. Thanks for that. BullionCoin pulled at the last minute but seems for the best.
It seems the original model morphed into something unsafe for investors.

Perhaps the new collaboration of ABX with other parties will find a better model.

[obbig60] 15/8/2017 22:58

Sadly it looks like Bullioncoin is dead. It has been dumped by ABX and Andrew Maguire.



ABX withdraws from its collaboration with Digital Gold Limited
15 August 2017

Allocated Bullion Exchange (‘ABX’) has issued this statement in response to questions from our Members, their customers, stakeholders, potential BullionCoin investors, and the precious metals industry at large, concerning the release of Digital Gold Limited’s (‘Digital Gold’) BullionCoin digital asset product.

Regrettably, and effective immediately, ABX’s Board has today, Tuesday the 15th of August 2017, resolved to cease any further collaboration with Digital Gold.

This action was not taken lightly, but rather, as a result of recently obtained information, as well as ABX’s inability to reconcile material risks to supporters of the BullionCoin product structure due to the following factors:

1. Against strong advice from ABX, Digital Gold was insisting to structure its metal ownership so that investors in the digital asset would be, in our view, unsecured creditors of Digital Gold. This form of ownership is commonly referred to as an ‘unallocated’ holding, and results in the investor only having a ‘claim’ to the metal, as opposed to having ownership of the asset and being protected in the event of a Digital Gold default. It has long been ABX’s view that this model is inherently flawed and would result in genuine counterparty risk to holders of BullionCoin. A detailed explanation of ‘allocated vs. unallocated’ metal ownership and the substantial risks associated with unallocated metal, can be found here;

2. ABX has been unable to satisfy itself regarding the security and integrity of Digital Gold’s bullion holdings structure and thus ABX is of the view that there are risks similar to other flawed cryptocurrency businesses in recent times where investors have lost significant amounts of money;

3. ABX have received confirmation that a competitor of Digital Gold intends to initiate legal action against Digital Gold upon the launch of BullionCoin due to alleged infringement of intellectual property rights. This, in our view, would have the potential to put at risk all BullionCoin-backed unallocated bullion, to the detriment of BullionCoin holders and investors;

4. Digital Gold is insisting on utilising private vaulting networks that, in ABX’s view, would permit external bullion deposits with limited quality verification, thereby circumventing, and being not subject to ABX’s robust bullion framework for assuring the quality of the bullion in its network;

5. Digital Gold is developing and utilising a non-standard matching engine and order book within its BullionCoin System (‘BCS’) secondary market which, in our view, will result in an atypical trading experience that ABX believes will cause confusion and disputes;

6. Digital Gold has made frequent and substantial scope of project amendment requests and in ABX’s view, has been unable to meet any mutually agreed project development timelines; and

7. ABX’s unwavering commitment to allocated and transparent precious metal ownership.

ABX is disappointed that it has been forced to withdraw from this collaboration. Unfortunately, ABX believes that it simply had no alternative as it found itself in the untenable position whereby the mechanics of the business model originally pitched to ABX were not what Digital Gold ultimately delivered.

ABX intends to continue work to support and / or launch its own precious metal backed digital currency. The experience with Digital Gold has resulted in the Board forming a view that they do not have the expertise or experience or professionalism to launch a product or service which will adequately satisfy the needs of ABX's stakeholders. Based on ABX's experience, and the legal advice taken, ABX is recommending to its stakeholders that they do not work with Digital Gold for the reasons stated above.

On a positive note however, ABX has recently been contacted by several other bullion-backed digital currency providers who have identified ABX as the market leading facility for allocated physical precious metals. Now that ABX has withdrawn from the Digital Gold collaboration, the Board has approved collaborations with several other advanced stage allocated precious metal digital currency providers.

To this end, ABX is pleased to announce that it will be issuing a press release to its stakeholders on these new collaborations and partnerships in the immediate future.

Allocated Bullion Exchange

[topicel] 15/8/2017 21:08

The retail numbers were about sales in the US and, no doubt like the UK it will be thanks to big summer discounting and end of season lines being marked down that drove the footfall.

Everyone still likes a bargain, especially when being squeezed the other end with little wage growth.

The earnings will be a very different matter though. A temporary respite for the beleaguered US malls which, as you say edge, are still seeing big shop closure numbers of very major names...

The debt ceiling fracas will be the one for us in PM land. The latest seems to be Mnuchin needs it settled by early September while the Office for Budget Responsibilty reckons they can last at a push to early October when a big veterans cheque is due which the Treasury would struggle to honour under the current ceiling.

According to debt clock the US national debt is now $19.73 trillion, and already technically ahead of what is allowable but they are using special accounting measures to get round it - whatever that means?!

Back of the sofa probably. HOC numbers tomorrow hopefully will not be sold into.

Topicel

[edjge2] 15/8/2017 20:48

NK will verbalise when ready to maintain pressure but gold recovered its suspicious sales stats hit. Most shops going under in all states this year. Good results after a reduced entry point today will be a welcome bonus.

[onedayrodders] 15/8/2017 19:18

Depends on which side of the bed Kim wakes up tomorrow.
If someone burns his toast he will kick off again.

[topicel] 15/8/2017 17:22

That's what I warned last week ODR. NK is rhetoric and bluster which may, or may not go wrong, and when it all goes off the boil the yen weakens against the dollar and PMs get dumped.

It is unlikely to be any different now until the debt ceiling games begin. If I was trading I'd sell and buy back then, but HOC remains a steady investment whatever else is happening - as tomorrow will show.

Topicel

[onedayrodders] 15/8/2017 16:33

$ having a rare good day .. we all need toilet paper now and then I suppose

[goldenshare888] 15/8/2017 16:23

Place your bets........

[goldenshare888] 15/8/2017 16:16

Or someone wants in cheaper pre-results?!!

:-/

[lauders] 15/8/2017 15:56

No leaking here if the results are good! Tight ship for sure. Unless of course we are going to read bad news but I and most here doubt that. Shows how much the gold and silver prices influence the price and not so much the fundamentals of HOC. Of course both are important, but I would hope the company would weigh more than the metal prices.

[onedayrodders] 15/8/2017 15:11

Cheer up Juguire .. HOC chart for 2017 still intact

Not sure anyone made any predictions for today ?