Hochschild Mining Share Discussion Threads

[stevea171] 17/11/2020 18:19

Blackrock knows what's coming next and aims to clean up ..... !!

[plat hunter] 17/11/2020 18:07

From 1.8 that's massive.Where have you seen this?

[d3009] 17/11/2020 17:03

Looks like Blackrock Inc. has just taken holdings of Hocs to over 5pc.

[tuscan4] 17/11/2020 16:04

presumably peruvian unrest is a factor?

[plat hunter] 17/11/2020 15:35

Not bad, hopefully a good entry today... Onwards to 260/70 now please.Choo choo

[stevea171] 17/11/2020 15:19

Physical shortage of silver means the Comex and LME are going to find it tough to meet deliveries at the end of this month for clients standing for delivery.

In the first CV lock down both silver miners incl HOC and Swiss refineries were shut down at the same time as demand rocketed.
It seems the supply side has never recovered to be able to meet demand hence the reported 6 month wait for silver kilo bars that are bought by China and others.

The suppression of the paper silver price on Comex may soon give way to market forces for physical and we see $30 silver very quickly.

Egon von Greyerz: For silver kilo bars, there is now a six month wait for those from the Swiss refiners.
This is why people who sell the smaller bars can charge massive premiums — because of the (shortages and) delays.

[petebreeze37] 17/11/2020 09:57

Maybe a big inst is selling.

[petebreeze37] 17/11/2020 08:43

Got a few more.

[plat hunter] 17/11/2020 08:32

I'm here for the volatility, :-P

[stevea171] 17/11/2020 08:27

Plat. You should do well if you just ignore the present volatility.

[stevea171] 17/11/2020 08:21

Cassini. I don't think $100 silver is a stretch in the present PM bull market. If anything it may prove to be conservative! Similarly we have already hit $2070 for gold in August so $2500 for gold could be taken out very easily - probably next year with all this CB money printing.

On top of that there are many reports of a physical shortage of silver. EvG's (below) PM business is in Switzerland. He has first hand knowledge of the Swiss refiners and the market for gold and silver there.

November 14. Egon von Greyerz:
“There are shortages of silver. And there is always a delay in getting silver.

We deal mainly in the 1,000 ounces bars, but if you go to kilo bars, there is now a six month wait for those from the Swiss refiners. This is why people who sell the smaller bars can charge massive premiums — because of the (shortages and) delays.

The price of silver will reach hundreds of dollars…

[plat hunter] 17/11/2020 08:17

Long time lurker, first time punter.Love the the volatility here so taken a slice, nice bounce back to 250/260 is the usual pattern it seems.Good luck all

[cassini] 17/11/2020 02:27

Silver at $100 is a bit of a stretch.

I know how he got that figure - pick a target for gold ($2500 is not unreasonable) then apply the lowest historical silver:gold price ratio to it, for which he appears to have used 1:25.

Could happen, but we're at the edge of the probabilities there IMO.

Mind you, I do remember silver getting to $48 last time there was a big blow-off.

[stevea171] 16/11/2020 20:32

Included in this top 10 are 7 silver producers incl HOC. Future annual production should be 40 million AGEQ as they mention in the summary. Interesting comment on Volcan.
Mkt Cap expected to increase x6.

With this quarter only 6 weeks from being out of the way (FY20 affected by the CV) HOC should start to fly very soon as the market looks forward to 2021 and beyond.

The gearing here is quite spectacular even with current mines and normalised production eg
Estimated EPS 2020: 11c
Estimated EPS 2021: 43c

Seeking Alpha: Top 10 List For Gold/Silver Miners
Nov. 15, 2020

Below is the current Top 10 list in the GSD Newsletter. The lowest upside rating is a 2, which is an expected 300% return at higher gold/silver prices. So, all of the stocks on this list are expected to have high returns.

What makes this list strong is the quality of their properties/projects, along with valuations that are leveraged for higher gold/silver prices. All of these stocks should do well in a rising precious metals bull market.

I have also included my expected future market cap for each stock based on gold prices at $2,500 and silver at $100. One question I'm sure many of you will ask is what is the future timeline for these valuations? The answer is 3 to 5 years, although that is only a guess, as our future market cap estimates.

Hochschild Mining. Hochschild has been mining in South America for about 50 years. They have a very experienced team. They get about half their revenue from gold and half from silver. Their production comes from Peru and Argentina, although they have a large (9 million oz.) low-grade gold development project (Volcan) in Chile. I think their Volcan project will end up being worth more than their current market cap at higher gold prices.

This is a company with a lot of resources (gold and silver) and should become a 40 million oz. AGEQ producer in the next few years. Their balance sheet has been improving and they have very little net debt. Their costs have been high which adds a bit of risk, and this is why their valuation is currently low. However, they have a huge amount of leverage for higher gold/silver prices.

Estimate Future Valuation at $100 silver.

Estimated Future All-In Costs (breakeven) Per oz.: $18.

Estimated Future Annual Production: 25 million oz. (AGEQ).

Estimated Future Free Cash Flow: $2 billion.

Estimated Future Market Cap: $10 billion.

Current Market Cap: $1.6 billion.

[petebreeze37] 16/11/2020 18:10

There doesn't seem rhyme or reason is applied here at all. Probably traders at work with insider dealing.

[breaktwister] 16/11/2020 16:59

Metals remain bullish and this share just gets slapped around. Hideous looking chart now too.

[breaktwister] 16/11/2020 16:57

Huge drop yet again on a day when metals are steady. Starting to get very very tired of my investment here.

[stevea171] 16/11/2020 13:46

Albo. Yes, very good. Hydroxychloroquine supplemented with zinc, if taken early, has been well proven to treat the CV. Most patients recover very quickly after this treatment.

I will not be taking any Big Pharma vaccine under any circumstances ....

The MSM are just shills for the Pharma industry. Completely shameless. No one should listen to them on the CV or health, politics etc. I certainly don't!

[petebreeze37] 16/11/2020 13:44

I missed that dip anyway, doing some diy. Not to worry.

[albo76] 16/11/2020 12:22

Sorry previous post sent early:Or option BQuickly Take a inexpensive drug should should you get sick with C19 which has been around for donkeys years, has been proven safe and highly effective globally and is available without prescription in many countries to treat prophylactically malaria. It's no coincidence those countries using it for malaria have little problem with C19.I know which I feel safer taking.Sorry to go off topic everyone I won't do it again, but this is so so important again knowledge is power after all, and if we want our government to start to look after our interests instead of their own then we need to tell them enough we know what they are doing. If you agree once you look at the evidence then maybe time to contact your MP?

[juju44] 16/11/2020 12:17

Buy the dips . This is irrational

[albo76] 16/11/2020 12:05

Agreed Steve, something is severely a miss, and not just in the US!hTTps://c19study.com/This site collates the C19 clinical studies from around the world. Please Don't take my word for it, As you can see the evidence that HQC is highly effective preventative treatment when used early is now absolutely over whelming. And yet the evidence is studiously ignored and misrepresented by the MSM and powers that be. So I guess it's not the "right"solution then?! Given the choice would you rather:A ) Take an rushed experimental RNA vaccine, when the long term interaction with both our genetic code and future viral mutations cannot possibly be known or predicted. Oh and the pharmaceutical company will be protected from beinmm

[petebreeze37] 16/11/2020 10:31

The lows are getting higher but the presidency and convid could still give us momentarily lows.