Hochschild Mining Share Discussion Threads

[dogwalker] 21/8/2020 18:59

I think the share's chart shows currently a zag in a steep zig-zag uptrend. Best seen in log scale with candle-stick chart. Besides the upward -sloping support line, there is also horizontal support coming from the highs in April& May 2018 & again last summer.
There's a convergence between these lines later next week around 225-230 p. Unless pm prices go on down, I'd expect the uptrend in HOC (etc) to resume then, if not before.

[hector_p] 21/8/2020 18:40

Hi Arja, how's it going.

Silver looks pretty good at anything over $26 as it still is. Target mid thirties in a couple of months.

[hector_p] 21/8/2020 18:38

That classic head and shoulders is heading for 180 unless something changes. I'm so relieved I didn't buy last week I was going to.

[d3009] 21/8/2020 17:23

So Arja, you mentioned share price going down to 225p, I can see from the H&S pattern the retraction should be down to 243p, obviously we've broken through this level and the long term support of just over the 200p region. Same with gold the H&S pattern would suggest a potential retraction to 1880 levels. Would be interested to see how you get to 225p for the support of the share price

[arja] 21/8/2020 13:38

gold price is bouncing and mini resistance at 1930 level . Will be interesting to see if it can break it.

[arja] 21/8/2020 13:16

HOC is quite a slow moving stock compared with POLY or FRES but chart suggests it is heading for about 220 assuming gold price does not start to look bullish again .Never a bad idea to short with a CFD or spreadbet as a kind of hedge even if just in a modest way to partially protect the paper profit . I used to do that a lot when I held a stock but now only trade with CFDs and do not always cut my loss quickly as I lack the big D . Gold might be looking to have a short term bounce but far from sure .

[arja] 21/8/2020 12:50

Sotolo ,
I take a more simplistic approach relying on charts but there is more than one way pf making money or losing it at times . The chart for gold has some support at $1920 level and just about there . If it breaks this decisively , minimum target seems to be about 1880 as I read chart . $US strong today too and that often means a weaker gold price of course as gold priced in $US . Sterling weaker after bad news on brexit talks and pound will be the greatest of shorts in a NO DEAL scenario . Well done brexiters !!

[petebreeze37] 21/8/2020 12:48

Sotolo,
Who knows what will happen, the markets were over cooked before convid and now it is painfully obviously that the printing machines must be at full pelt.
One thing for sure is that people are trusting paper money less and less and we know, lead to believe, that previous metals are at very low supply levels.
So I think prices will continue to rise and hoc has been making a profit at much lower prices than today's. I have bought more at these levels and fingers crossed.
Crimex are going to bash precious metals for the next 5 days to get themselves out of a hole. so I can see hoc going lower again

[digger18] 21/8/2020 12:27

It’s a profitable debt free business in a market full of debt and turmoil. Markets including PM’s are moving fast both ways, however, I know where I will leave any investments, and this is one of them.

[sotolo] 21/8/2020 12:21

arja I totally agree, which is why I am happiest when pundits start talking about how gold will fall. I notice a number of them doing that now so hopefully rather than having seen the top this is a correction and on the next rise the market will become even more euphoric, then time to sell. I hope this is the case as staying in and bought more. The 5 stages are
1. displacement,
2. boom,
3. euphoria,
4. profit taking,
5. panic.

I think we are at a correction in 2. And have yet to see true euphoria
However if you are right we have been euphoria, are amidst profit taking and panic comes next. Which would be very sad for me!

Any thoughts from others

[arja] 21/8/2020 12:11

gold chart shows declining high and maybe the party is over for gold. When people start getting excited and saying $3000 or more is on the way , it sometimes indicate something has topped out !

[arja] 21/8/2020 09:14

so really it is better to trade the actual commodity really with a spreadbet or a CFD as much less risky being not exposed to what announcement might come out from a company . Alternatively GBSP , GBS or slvp are possibilities as they mirror the metal concerned albeit with a slight currency risk if not traded in $US.

[hector_p] 20/8/2020 20:16

It implies ALL miners will be hit by closures etc due to Covid19. It is inevitable, but it also works the other way to suggest much lower silver output in a time of rising retail demand. Though that is initially better for silver than the miners they will catch up again. Hoc should too.

[caedwalla] 20/8/2020 13:27

Correction - 243p. Bullish divergence on the 1hr chart.

[caedwalla] 20/8/2020 12:08

We are literally on a support line now at 43p so could be the inflection point.

[arja] 20/8/2020 10:51

yes, you are right after I perused chart again . looks like it is going back to the 243 level it hit earlier and gold and silver still struggling to recover does not help !

[petebreeze37] 20/8/2020 09:52

230 is on the cards but who knows in these times.

[arja] 20/8/2020 09:45

has had a mini bounce to 247 after going lower but quite honestly the chart looks bearish and share price might get as low as 225 in next few weeks unless of course the gold and silver prices pick up markedly . but markets often fool us and who knows for sure !

[petebreeze37] 20/8/2020 09:30

The smash on gold and silver are helping getting to the buy point sooner.

[arja] 20/8/2020 08:57

holding up quite well even as gold and silver dip after a brief rally

[petebreeze37] 20/8/2020 08:48

Getting close to buying time, ready for the 3rd wave

[arja] 19/8/2020 19:42

not highly geared I think unless things have got much worse since last year !

[asagi] 19/8/2020 19:02

from today's release:

H1 Avg. realised silver price $16.2/oz
H1 Avg. realised gold price $1,701/oz

spot price now is

silver: $27.32/oz
gold: $1,968.1/oz

"All-in sustaining cost from operations in H1 2020 was $1,026 per gold equivalent ounce or $11.9 per silver equivalent ounce (H1 2019: $945 per gold equivalent ounce or $11.0 per silver equivalent ounce), higher than H1 2019 mainly due to the effect of less production resulting from the stoppages"

So, taking today's spot as estimate for average achieved prices across H2, we have

gross margin (gold) => ($1,968 - $1,026) = $942 vs. $675 in H1
gross margin (silver) => ($27.32 - $11.9) = $15.42 vs. $4.3 in H1

better still, if we take H1 2019's costs we get

($1,968 - $945) = $1,023 vs. $675 in H1
($27.32 - $11.0) = $16.32 vs. $4.3 in H1

obviously then you can scale up production too. You can see why the shares have done well but can't shake the feeling that we are only part way there on this journey?

Asagi (long HOC)

[jane deer] 19/8/2020 16:54

Sotolo (4881). I agree that HOC looks good value - but in your back of stamp figures you have ignored the minorities in San Jose, I think.

[zcaprd7] 19/8/2020 15:37

If you have a strong balance sheet, and confidence in the future, you don't cancel your dividend?Perhaps they are being extra cautious, but there are other PM miners that are chucking out cash!