Hochschild Mining Share Discussion Threads

[stevea171] 15/7/2020 23:20

NT68. Yes, for sure PM prices are way up which will offset the production losses to some extent. Agree probably no dividends for this year. Brown field exploration around the existing mines will be expedited and have excellent prospects.

Rare earths is a great project but probably not in production before 2022. HOC are working on a revised feasibility study currently to complete next year. Re exploration of Biolantanidos' tenements in Chile I think they know they don't need any more exploration for now. It is more about the technical processing and extraction details, optimisation, costs, logistics, stages of implementation, etc.

[novicetrade68] 15/7/2020 22:59

steve, gold is indeed everybody's guess and would also imagine HOC to not pay a dividend this year, the reopening and realised gold prices should help HOCs recovery a bit yet it will hopefully be intersting to see how they'll get on with their rare earths - presumably in reference to their brownfield explo in H2.

[novicetrade68] 15/7/2020 22:50

Agreed, if gold hits $2000 or so at some point this year or next I would imagine HOC to get in the £3-£4 -range..

[stevea171] 15/7/2020 22:48

Sotolo. I like the company, the management, Inmaculada and the silver otherwise I would not have spent many years here. Importantly, I'm not in love with the company. However right now I don't like the financial implications for the company of these stoppages which can't be quantified. No revised guidance for FY/20 re production or AISC quite understandably.

The conference call usually has plenty of analysts asking plenty of questions. Not today. One analyst with questions and he was quite down beat by the end. Ignacio was upbeat as usual about everything.

Imo what happens next is the US markets start to crash. Wave 2 from which there will be no recovery. They are now right at the end of the final hurrah. Probably within days. What happens to the PM's and the miners in the short term is anyone's guess.

At some point, maybe now, HOC will be a buy. But not for me, not right now. Plenty of people buying today probably because silver is breaking up. I hope it lasts. I have other investments, none of which have had CV stoppages so far, where earnings for 2020 are not likely to be impacted. Or not on the scale of HOC.

Each to their own. We are all different which is what makes markets ....

[sotolo] 15/7/2020 21:38

Stevea, I often get it wrong, just for once my hope turned out right, and the bad news was in the price so actually the second quarter figures sent the price up, particularly with the Inmaculada mines reopening. Thanks so much for the news on Arcata which I hoped might come, though San Jose delay to full production is longer than I imagined . Do you like me think that Hoc is a steal at this price, if its mines get fully going again and PM’s stay up? Just to add that I am now way a trader, I just take a long view that I like this company and appreciate all posters info, especially when like yours that is so well informed and useful. We must all be happier this eve.

[makesomemoney3] 15/7/2020 15:18

Stevea171,

many thanks for your update !

[stevea171] 15/7/2020 14:55

2:30pm. Conference call.

The CEO gave a brief run down of results that we have this morning.

Q&A.

1. Drilling program. Expects that the full 2020 drilling program can be completed by the end of the year that was previously scheduled to end about September.

2. Return to full production at San Jose. There are still travel restrictions in place in Argentina so some workers can't return until these are lifted. He expects full production to return by end Q3. A new $20 million Bank loan taken out there for working capital requirements.

3. Arcata. Waiting on permits to drill NE (or NW) prospect at Arcata. This should come through by year end. Then drilling in H1/2021. If the drill results are good this should allow return of Arcata to production. Care and Mtnce there continues so it would be ready to resume as required.

[stevea171] 15/7/2020 10:47

Sotolo. You are on a misguided mission to prove you are right here and I am wrong with nearly every post. It is tiresome in the extreme.

Also you have learnt nothing from the recent Trader365 saga. It seems you are the self appointed substitute.

You are just so small minded that I can't be bothered to reply to you as you likely wouldn't understand anyway.

What is up one minute/day/week etc can be down the next. I am looking after my portfolio and would be grateful if you just look after yours. It's not a competition. Everyone can be a winner. Not I win you lose Trader365 nonsense.

The investment world consists of more than just CEY and HOC.

Really I am sick to death of your attitude and posts on this board over many months. Why not post on the other thread?

[sotolo] 15/7/2020 10:14

So Stevea, you selling because of worry about the share price collapsing on these results, is happily unfounded. As expected the lost production was in the price, share prices look forward and profits will be great once production is fully back up at these POG prices. I think Hoc is a steal and I think the market will begin to realise it, selling on the cheap because of a temporary cOvid setback. Are you going to buy back what you sold, although the price is higher, I would. If silver climbs another 20% Arcata could even come back on stream.

[fieldhouse] 15/7/2020 09:54

A bit of a shortage in the real world !!

[risa5] 15/7/2020 09:33

Did they actually get, $1,826/ounce for gold and $19.8/ounce for silver ?

[juju44] 15/7/2020 09:08

Bought some early doors . PMs being taken up

[fieldhouse] 15/7/2020 08:13

I think as good as it gets under the circumstances.
Good cash conservation ,exploration program to complete by year end
Fully operational by end July except Argentina.
And the cherry on top is the rising pm prices .

The risks further shutdowns because of the virus !
However a ten minute saliva test is on the way that would enable all workers to be tested daily .

[stevea171] 15/7/2020 07:30

Revised guidance.
Due to the temporary suspension of Hochschild's Inmaculada mine in Peru, Hochschild is not providing revised 2020 guidance. The Company will reissue guidance once all operations are in production and the full impact of the current suspension of Inmaculada is clearer.

Inmaculada. Overall in the first half of 2020, Inmaculada produced 79,604 gold equivalent ounces (H1 2019: 132,915 ounces).

As announced on 6 July 2020, operations are currently halted due to a number of cases of Covid-19 with a reduced workforce performing care and maintenance activities. The Inmaculada team is currently expected to remobilise during the week beginning 20 July 2020 and is scheduled to reach full production by the end of the month.

Pallancata. Overall in H1 2020, Pallancata's output was 1.8 million silver equivalent ounces (H1 2019: 5.0 million ounces).

San Jose. The total for the first half of the year was 4.4 million silver equivalent ounces (H1 2019: 7.4 million ounces).

The San Jose operation in Argentina restarted concentrate production on 27 April, although the ongoing countrywide restrictions on the movement of people resulted in the ramp-up being phased over a significant period of time with full production expected towards the end of the third quarter.

Average realisable prices and sales

Average realisable precious metal prices in Q2 2020 (which are reported before the deduction of commercial discounts) were $1,826/ounce for gold and $19.8/ounce for silver (Q2 2019: $1,346/ounce for gold and $14.8/ounce for silver). For H1 2020, average realisable precious metal prices were $1,701/ounce for gold and $16.2/ounce for silver (H1 2019: $1,329/ounce for gold and $15.0/ounce for silver).

[sotolo] 15/7/2020 07:15

Looks good to me, Inmaculada restarting,
Full exploration restarting
Plenty of cash still, has barely fallen since Dec 31 from £166m to £162m , tho debt has risen from £33m to £58m.
Future guidance will come later after restarts but as long as mines don’t shut again should be churning out cash at these PM prices

[stevea171] 15/7/2020 07:14

RNS Number : 0080T

Hochschild Mining PLC

15 July 2020

Production Report for the 6 months ended 30 June 2020

Ignacio Bustamante, Chief Executive Officer said:

"At such a difficult time for everyone globally, the Company is focused on supporting our people and communities as well as protecting our finances. I am very proud of the work that our employees are doing, particularly our colleagues at the mines who are operating in the most challenging of circumstances.

The second quarter results inevitably reflect the impact of Covid-19 on the countries we operate in. However, we remain in a strong financial position and currently expect that the extensive protective measures we have implemented across the organisation will allow our full team to start returning to Inmaculada next week. We look forward to an ambitious second half schedule, particularly in our brownfield drilling programme, and we expect to issue our updated 2020 guidance when we have assessed the full impact of the current suspension."

Operational highlights

-- Q2 2020 attributable production: ([1])
o 19,647 ounces of gold

o 1.1 million ounces of silver

o 32,712 gold equivalent ounces

o 2.8 million silver equivalent ounces

-- H1 2020 attributable production

o 79,073 ounces of gold

o 4.1 million ounces of silver

o 126,835 gold equivalent ounces

o 10.9 million silver equivalent ounces

-- Inmaculada expected to ramp up back to full production by end of July

-- Pallancata operating normally

-- San Jose in phased ramp-up process

-- Full Covid-19 protocols in place at all operations

-- Full brownfield exploration programme expected to be completed by year-end

Strong financial position despite Covid-19 impact

-- Total cash of approximately $162 million as at 30 June 2020 ($166 million as at 31 December 2019)

-- Net debt of approximately $58 million as at 30 June 2020 ($33 million as at 31 December 2019)

-- Net Debt/LTM EBITDA of approximately 0.21x as at 30 June 2020

[knocknock] 15/7/2020 07:11

Massive hit to production. Mine open next week hopefully.

[drago] 14/7/2020 20:54

Its the stock market.
Never a sure thing unfortunately .
If todays prices hold and the mines all start producing as normal we should rerate.
Fingers crossed

[edjge2] 14/7/2020 17:51

mine will open again for 30p up

[c0lin1] 14/7/2020 17:36

maybe it has something to do with mine closures.

[juju44] 14/7/2020 11:32

When you can print free money you can put PMs anywhere you want

[fieldhouse] 14/7/2020 11:21

Slap down Tuesday again !! Regular as clockwork .