Hochschild Mining Share Discussion Threads

[ifthecapfits] 24/7/2018 15:09

Apparently not.

[juju44] 24/7/2018 13:50

Are we starting the daily yank turndown early

[dt1010] 24/7/2018 13:28

Golden dude, I have no choice.

[ifthecapfits] 24/7/2018 12:43

not sure if posted already.

[goldenshare888] 24/7/2018 12:28

Ditto DT, and I still hold mine for 550p..... ;-))

[dt1010] 24/7/2018 12:23

I love you guys. Hey whatever happens, it’s one hell of a ride.

[juju44] 24/7/2018 11:56

LOL .And there was me getting all emotional

[stevea171] 24/7/2018 11:45

Hochschild continues to smash records.
18 July 2018

Hochschild Mining keeps smashing out operational records, with a strong June quarter on high mine grades resulting in a record half-year.

During the quarter, its produced an attributable 5 million ounces of silver, up 4% year-on-year, and 68,477oz of gold, 13% higher.

The volumes translated to 10.1Moz ounces of silver equivalent, or 136,301oz of gold equivalent, both rising 8% on the year.

With the record March quarter volumes, attributable production for the January-June period was at 9.7Moz silver, 8% higher on the year, and 137,507oz gold, up 13%.

Half-year output was equal to a record 19.9Moz of silver equivalent or 266,237oz of gold equivalent, both jumping 11% year-on-year.

This put Hochschild on track to reach its full-year 2018 production guidance of 514,000oz of gold equivalent at an all-in sustaining cost of US$960-990 per ounce, or 38Moz of silver equivalent at an AISC of $13-13.40/oz.

At the end of the quarter, the company had total cash of around $142 million, up 30% from the end of the March quarter, and net debt was 34% lower than three months earlier at $66 million.

Hochschild CEO Ignacio Bustamante said the quarter had been "very strong" with output at all the company's mines in line with expectations.

"We have also continued to see exciting results from our ambitious brownfield exploration plan. In particular, drilling at Inmaculada is expected to add substantial resources close to the current mining infrastructure whilst the programme at Arcata has also made good progress."

The company expects an estimated resource update for Inmaculada in August, with drilling at San Jose planned to restart after hindrance from bad seasonal weather.

Hochschild's shares were up 1.39% Wednesday at £1.81 (US$2.37) and banks looked upon the results favourably.

RBC analyst Tyler Broda said both gold and silver production had been ahead of the bank's estimates, with stand out performance from Inmaculada due to stronger grades, and Pallancata also seeing progress.

"We are confident that Hochschild's H2 run rate target of circa 2,800 tonnes per day should be achievable as the Pablo vein comes through at the mine," he said.

Broda said he expected to see some mention of the devaluation of the Argentine Peso impacting bottom-line earnings in the H1 financial results, although RBC did mot see this as material considering the company's cash generation.

JP Morgan analysts also noted that its silver equivalent production was 6% ahead of their forecasts, helped along by better gold grades at Inmaculada and throughput and grades at Arcata.

However, they said Hochschild's medium-term investment thesis would continue to be dictated by the success of its brownfield exploration programme and the bank saw elevated operating risks, particularly around achieving five years of mine-life in reserves and an additional five years in resources by 2020.

Analysts at Barclays said the quarter had been strong overall with strong cash flow generation continuing to de-lever the balance sheet.

They chalked the strength up to solid performance at Inmaculada and Pallancata from higher than expected grades, adding that the slightly delayed ramp up at Pablo to 1,900tpd instead of the planned 2,200tpd guidance had been offset by higher than expected grade.

[stevea171] 24/7/2018 11:44

Thanks Rhu. Just starting to catch up with a few things now.

Comment on MML's recent announcement. In many ways it is to be welcomed as The Philippines mining industry has gone through a lot of trauma recently when Duterte took office as President and environmental activist Gina Lomas was appointed minister of the DENR. Her appointment was subsequently not confirmed by a Parliamentary committee so she was replaced but only after massive damage to the mining industry. MML's second project on Mindanao, Bananghilig, is unlikely to be developed into a mine because of the strong anti-mining sentiment in the country whipped up by Lomas and land occupation issues.

So then there was the Burma gold project which was not proceeded with as announced some months ago. MML needs a second project with a lower risk profile to balance the long life gold mine on Mindanao. Australia is the obvious choice as a safe jurisdiction and with the company being based in Perth. The merits of this portfolio in Qld will emerge as more is known about them.

btw. I think the current share price smash is well over done. I have not sold any and I expect the production report for Q4 to be released in the next week to be on track. But the loss of the CEO is a huge disappointment.

[goldenshare888] 24/7/2018 11:20

DT,

I view your recent Damascene conversion as the ultimate contrarian indicator!

:-))

[rhuvaal2] 24/7/2018 09:22

Good luck with the landline, Stevea, I know: it's awful being out of touch.

[dt1010] 24/7/2018 08:45

Life is a mystery guys.

[juju44] 24/7/2018 08:29

I think he is being facetious

[goldenshare888] 24/7/2018 08:28

Me thinks DT protest too much.

He does not strike me as someone who buys at the top and sells at the bottom (although this is a very common phenomenon)!

[goldenshare888] 24/7/2018 08:25

Buying retail stocks (or any other) on 200 X earnings is not for me!

Could well end in tears...!

[juju44] 24/7/2018 08:20

I find the tears welling

[crosseyed] 24/7/2018 08:19

How pathetic!

[juju44] 24/7/2018 08:16

Has to be one of the nicest sermons that I have heard

[dt1010] 24/7/2018 08:10

The dollar could reign supreme for another 10 years

During which time good could fall to sub $1000

An miners will sag and wallow in disaster.
Let’s face it. This pays virtually no dividend. The cost of holding it is t only capital erosion. It’s income loss from elsewhere.

I am going to stop buying it for my kids. I will start buying them stocks which only go up like Shopify. They trade on 200 times earnings, pay nothing but in the last year I think it’s doubled.

Whereas we’ve been arguaing a losing battle with the JPMorgans and Goldmans who are squashing paper prices and taking physical delivery, ready for when the dollar does go pop. (When the government give them the nod).

We have had our heads buried in the sand. No question. I have raised mine up now and wiped away the tears.

Now I can only look to the horizon with lessons learned.

[goldenshare888] 23/7/2018 22:38

I predict GOLD will go to $1 and HOC 0.55p!!

DT you are right, and juju is a guru, I feel the huge burden of positivity and optimism has finally been lifted....!

We are not alone wallowing in despair, and should all bow to the mighty dollar, (could it be THE ONLY PAPER CURRENCY TO ENDURE IN 5000 YEARS OF HISTORY!!!)

LOL

:-)

[juju44] 23/7/2018 20:34

Didn't say they were at the bottom just that they are racing there

[dt1010] 23/7/2018 20:31

Can’t see light at end of tunnel yet, nowhere near.

In fact.......

I predict gold will go to $1000 before it reverses sustainably.

[juju44] 23/7/2018 20:06

PM miners capitulating . Some massive losses so dont feel alone here

[dt1010] 23/7/2018 19:05

Ahaha there’s a certain beauty to finally giving in and admitting you’ve been beaten. It’s a fair cop, this is a dog after all. Might get to 550p but not for 25 years.

[goldenshare888] 23/7/2018 17:50

LOL :-))

I've even changed my target to 55p!

Happy days..... :-/