Hochschild Mining Share Discussion Threads

[edjge2] 18/8/2017 08:54

Gold nearly 1300. HOC down, preempting bounce back?

[topicel] 18/8/2017 08:50

Lauders, we look like we need the PM rally mate as the market has voted rather dramatically back below £3 suggesting they can't give HOC the highs it attained last week on the current set of numbers.

We should drift up towards £3 or so over the 2-4week period I noted recently has been the reaction all three previous times this year we were knocked back, but this time is not a PM smash related event...

I wonder why you didn't set a stop loss around £3.20 mate? The machines do the work for them so sometimes it is wise to let them do it for you! The slightly poor headlines made the task of hitting stops far lower than that easy enough.

So we are back underwater with our selection of £3 purchases from last year, lol. A big event is luckily around the corner mon ami - debt ceiling and US government shutdown threats as a cause and effect because they can't pay their bills or raise new money without bi-partisan agreement.

And that is not gonna be easy! D.C. is back in a couple of weeks and Russia issues will come back front and centre too. Let alone race riots, leftist marches, and still a little matter of NK to really be resolved.

Yep, we might need PMs to rally but that does seem plausible with or without the help of the elite and their ambitions...and German elections???

Topicel

[shakeypremis] 18/8/2017 08:46

Another buying opportunity presenting itself this morning.

[lauders] 18/8/2017 01:44

Well I hope this is correct re: silver being on the verge of a spectacular rally:



However, I am currently seeing signs in the market that lead me to believe that silver is on the verge of a rally that will take it to a much higher level.

At the end of the article:

A higher high than in 2016 could be in the cards before the year is over

There are four reasons why I believe that the price action in silver will eventually resolve itself to the upside and we could see a return of volatility to the silver market that will take the precious metal to a new high in 2017 and perhaps a level above the 2016 peak at just over $21 per ounce.

[edjge2] 17/8/2017 22:40

Made it to the bottom of its up channel

[stevea171] 17/8/2017 22:23

Hochschild Mining's (HCHDF) CEO Ignacio Bustamante on Half Year 2017 Results - Earnings Call Transcript
Aug.16.17 | About: Hochschild Mining (HCHDF)

Executives

Ignacio Bustamante - Chief Executive Officer and Executive Director

Ramon Barua - Chief Financial Officer

Operator

Good day, and welcome to the Hochschild Mining PLC 2017 Half-Year Results Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Ignacio Bustamante. Please go ahead, sir.

Ignacio Bustamante

Thank you very much, Valerie. Good afternoon, everyone, and thank you for joining us for today’s presentation I'm Ignacio Bustamante, CEO and with me is Ramon Barua, our CFO and in London, we have our Head of Investor Relations, Charlie Gordon. We have for today a presentation that is in our webcast, so please refer to that presentation.

We're going to be starting on Page 3. So let me start with the key highlights, and then I will hand over the presentation to Ramon Barua to talk about the key financial highlights. So we just announced results. We have reported revenues of $341 million, very close to the same revenues that we obtained in the first half of 2016. We have also announced an EBITDA of $136 million, which is slightly below that from 2016 and in line with the guidance that we gave at the beginning of the year for the all-in sustaining cash cost for all our operations.

We have also reported an EPS of $0.03; all-in sustaining cash cost of around $12 per ounce, which are slightly below our guidance for the year of between $12.2 to $12.7; cash balance of $145 million, compared to $140 million as of December 31, 2016; net debt of $165 million compared to $140 as of December 31, 2016.

We have also announced that during the second half of 2017, we're going to be ramping up our Brownfield exploration program, mostly because we're expecting that the permit that should come for the year to complete our operation program will be coming either in Q3 or Q4 during the year, allowing us to move significantly at a faster pace our exploration program for the year.

And finally, we have also declared an interim dividend of [$0.0138] per share, which is equivalent at – to $7 million, very much in line with what we declared during 2016. So all-in all on track to achieve our guidance and finish another strong year with very encouraging geological upside.

So with that, let me hand the presentation over to Ramon to talk about the financial highlights.

Ramon Barua

Thank you, Ignacio, and hello, everyone. In our first slide of the interim results section, we have our P&L for the first half. Although the results were not as good as last year's, the performance was still strong, and the Company is in a robust financial health. Revenue was very similar to the first half of 2016, both in terms of volumes and prices.

Costs were higher though, some anticipated, like the increase at Inmaculada now that the cyanide detox plant and the backfill plant are fully operative; but some unanticipated, like the slow pace of evolution of the Argentine peso. These additional costs resulted in a lower gross margin of 23% when compared to the 30% achieved in H1 last year. The higher administrative expenses reflect primarily increased personnel-related costs associated to inflation and provision of share-based compensation programs.

Selling expenses were lower due to the elimination of export taxes in Argentina, and exploration was higher as we execute a more aggressive Brownfield plan this year. Other income was much lower since, as you remember; the credit we were receiving for exporting through a Patagonian port was eliminated late last year.

Our finance cost is already improving as we repay debt, although the higher interest-bearing facility; the senior notes; are still outstanding. We'll talk about our strategy to deal with that cost in a later slide. So our attributable net income was $14.1 million, and the adjusted EBITDA was $136 million. Based on these positive results of the first half, we're announcing a $7 million dividend for the period.

continued .....

[juju44] 17/8/2017 19:47

Lid remains on PMs . We need Maguire for another good laugh

[glenkaz] 17/8/2017 19:32

Think I should have stayed one more day 🤡✌A039; Gl lth! Hope my dosh closed a few shorts 🤠👍

[edjge2] 17/8/2017 16:09

Hope it keeps AIM jump up habit.

[glenkaz] 17/8/2017 13:00

Took my 7% as I said yesterday! Now in hik will do the same gla! Hope it goes to £4!🤠✌️

[charles clore] 17/8/2017 12:47

Punters realising the bottom is in. Quick boys it's going up again!

[juju44] 17/8/2017 11:42

Yep , looks like boys in charge still want to keep a lid on PMs

[shakeypremis] 17/8/2017 11:41

If gold continues to grind upwards silver will almost certainly follow sooner or later.

[onedayrodders] 17/8/2017 11:35

Silver having a problem with $17.20 again

[glenkaz] 17/8/2017 10:42

Yep I took £1500 🤠✌A039; Profit!

[123trev] 17/8/2017 10:06

Took a trade yesterday thinking this was well overdone and didn't warrant that kind of drop but decided to get out with a small profit that gap is scary and like someone mentioned this is acting a little like an aim stock but good luck folks.

[stevea171] 17/8/2017 09:19

Hector. HOC costs are well under control where they are in control. Last year's costs were artificially low due to the need to maximise profit after falling into loss previously.

They can do nothing about the withdrawal of a port subsidy by the Argentinean government or inflation in that country.

As to the rest, they are increasing spending on drilling which they need to do to replace resources that are being mined and to make better use of the mill capacities that are under used. ie Arcata, Pallancata, Ares.

Their AISC for H1 was $12.0 Ag equiv oz compared with guidance for the FY of 12.2 - 12.7 so they are operating at better than guidance with their costs.

[glenkaz] 17/8/2017 09:18

May hold a few long my free ones anyway! Lol! 🤠✌A039;

[juju44] 17/8/2017 08:53

My little wager is off to a great start

[glenkaz] 17/8/2017 08:53

262 my buy in 🤠✌A039;

[hectorp] 17/8/2017 08:50

you can't fault the clarity of the statement, the key problem is the fact of costs, as opposed to the fiction of the silver price ( ie paper fixed pricing).
Chart looks very supportive if we start at the last 2016 low. I'm very tempted here too. HOC is simply in a zig zag volatile trading range, at the bottom of it.
One issue is the cost of mining is hardly going to reduce except that economies of scale should help, ie, tweaking production where it is cheaper or where there are high silver ounce zones.
GL all

[edjge2] 17/8/2017 08:42

Got em back about 4p more expensive than the close but a good ddeal cheaper than original buy price. Looks like a bargain along with CEY if gold ups. Hell of a reversal. Hovering on 1288 gold.
Werll done buyers yesterday last thing.

[glenkaz] 17/8/2017 08:38

Way overdone yesterday gla!🤡㈇7;

[tsmith2] 17/8/2017 08:23

any broker comments after yesterday's conference call?The one thing I really really liked was the detail and transparency..

[glenkaz] 17/8/2017 08:03

Looking good 🤠✌A039;