Hochschild Mining Share Discussion Threads

[dt1010] 18/1/2018 21:25

Big gains ahead for Bitcoin. $25,000+ by year end

HOC is just dead. Such a shame. Though I haven't sold a single share.

337p and I am gone.

[topicel] 18/1/2018 17:05

Well, for the record I was reducing into production data as the share is rangebound and not likely to get much assistance from PM prices either as they seem to be capped pretty much too.

As has been said, inflation is not applicable to gold and silver prices it seems and if/until we see a change in that I can not be a full holder any longer.

I'll maintain a small interest for now, but glad I sold 3/4 for 250p ten days ago. Same goes with Fresnillo, it goes without saying.

Topicel

[lauders] 18/1/2018 15:36

shakeypremis - I can appreciate your feelings. I still believe that Christopher Aaron talks a lot of sense and he hasn't been too far off the mark yet. His latest video from today is a helpful reminder of the story. If you and I can keep or sell finger in check and wait until later this year (October/November?) then hopefully we will be well rewarded. I am trying to be patient and see how things unfold but I know I need some funds just before mid-year and so I am not sure what I will have to sell in order to generate those funds. If I can hand on to the majority of my remaining HOC I will do so. All this waiting has to pay off sometime and while I am still in profit I am sure that there is more to come providing I can wait long enough. Good luck whatever you decide!

[ifthecapfits] 18/1/2018 15:32

We shall see. I'm happy to hold.

[banj] 18/1/2018 12:18

I think that's it Mike. We are linked to the PoS and PoG. Simple as.. Appears range bound 240 to 260p until those price break to the upside or down. Could be a long wait...

[nav_mike] 18/1/2018 11:45

I guess people are gradually giving up the ghost on HOC :(

The presentation yesterday afternoon had no positive effect, and guidance for 2018 wasnt exactly exciting.

Seems to be well run and cash generative, but hard to see where big gains will come from unless metal prices go higher

[shakeypremis] 18/1/2018 09:40

Hunt mining does look interesting to be fair. With improving precious metals prices and so many up and coming and undervalued producers out there I do wonder at times what I am still doing in HOC. Nothing is going to shift the share price here barring a surge in metal prices. Could have made a lot of money selling HOC and buying some undervalued producers and soon to be producers. Going to have to reevaluate why I am here over the next few days.

[lauders] 18/1/2018 00:58

Well I must admit I reduced my holding by 13% before the RNS just to be safe as my experience with recent HOC RNSs is one of disappointment. Perhaps I should have taken more off the table? Anyway I hope HOC will "do the business" when gold and silver become the talk of the town one of these days, whenever that will be! Just need to replace crypto chatter with gold and silver instead and we will have "made it" ;-)

I see that it is not all doom and gloom with the investing community when it comes to HOC, although I am uncertain about the "retire" part:

Here is another mining stock that could help you retire early.

All that glisters

Hochschild Mining (LSE: HOC) is a relative minnow with a market cap of just £1.24bn and is even more volatile. It is up an incredible 500% over two years, mostly due to a strong 2016. It is up only 5% over the past 12 months, with profits undermined by increased costs. Do not expect it to carry on four-bagging.

This morning’s production report for the year ended 31 December saw CEO Ignacio Bustamante reporting that it has “once again delivered a historic year of production with output growing for the fifth consecutive year”.

Silver machine

Total 2017 production was a record 513,598 gold equivalent ounces and 38m silver equivalent ounces, including 254,932 ounces of gold and 19.1m ounces of silver. Costs and capex for 2017 should meet expectations while the group’s financial position is “very robust“, as it completes early repayment of its bonds over the coming days. Bustamante also reported “encouraging results” across its brownfield exploration programme.

Its cash balance has also strengthened to hit $256m at 31 December, up from $140m one year earlier, net debt falling from $183m to $97m over the same period.

Hochschild’s share price is down 1.13% at time of writing. Given its forecast valuation of 38.2 times earnings, I can see why. RBC Capital recently downgraded the company due to its valuation, although it said the story remains “compelling“. Much depends on the progress of its exploration programme. However, forecast earnings per share growth of 69% in 2018 and 21% in 2019 point to a shinier future. Maybe wait for a cheaper entry point.

BHP Billiton would be my preferred stock, a big solid dividend payer that could help underpin a comfortable retirement and give you the financial independence you crave.

FWIW from TMF:

PS. HOC get a couple of mentions in this piece with McEwen but some interesting Ag information:

[richkid71] 17/1/2018 20:35

Absolute pants.

[shakeypremis] 17/1/2018 20:34

lolololol, I've only just noticed that gold had made it's way up to $1340 today and then bang, smacked down $12 dollars.

[shakeypremis] 17/1/2018 20:19

Probably going to be a very bad day for HOC tomorrow if metals don't recover.

[shakeypremis] 17/1/2018 20:18

It's like the dollar never really fell. Just battering gold and silver relentlessly.

[stevea171] 17/1/2018 20:15

Bill Murphy (GATA): I Haven’t Seen This Level Of Suppression In Gold For 20 Years Or In Silver For 40. January 16, 2018

Bill says that relative to other assets, the downside to gold & silver is limited, yet the upside, even with all the manipulation, is extraordinary…

[juju44] 17/1/2018 20:11

What they want , when they want . Always was , always will be

[eeza] 17/1/2018 20:08

Crimms looking to take it back down to 1262.

Rinse, repeat.

Good game, Good game. Eh, Brucie.


When you can - well why not.

[shakeypremis] 17/1/2018 18:40

A lot of precious metals miners are struggling to maintain margins and either drill or acquire new reserves at current metal prices. Margins on silver production are particularly low for companies that mine silver primarily or as a large proportion of the metals they pull out of the ground. The price of silver has to rise!

[shakeypremis] 17/1/2018 18:37

Yes I am starting to think the only thing that can save this company's short term share price is meaningfully higher precious metals prices, silver in particular. Production is staying constant (although they usually always over deliver) while costs are increasing. We need higher metal prices!

[ohno1] 17/1/2018 15:36

Will the refusal of governments throughout the world to accept crypto currencies rising daily,will it mean more investment into PMs.The volatility of bitcoin from 20k to less than 10k in one month surely must frighten most people from getting involved with something as risky as crypto currencies!

[richkid71] 17/1/2018 14:23

This share is just under delivering. I think everyone has given up and fed up with it. People talk about being patient and would love to be right but they could say I told you so, in 2025. 2018 hasn't started well for HOC.

[d3009] 17/1/2018 13:09

Fieldhouse, I took the same messages as Stevea from the results especially around Arcata and the exploration results, these seem somewhat muted in the Q4 results compared with the H1 2017 Interim results, the AISC is also expected to go up for Arcata and it was hoped to bring costs down in 2017, could be what has subdued the share price this morning. Hopefully will find out more at 14:00 today.

[juju44] 17/1/2018 10:50

blue finish