Hochschild Mining Share Discussion Threads

[plat hunter] 25/11/2020 18:10

Look at 2008.... the gold bull has only just started a warm up jog.Https://www.macrotrends.net/1335/dollar-vs-gold-comparison-last-ten-years

[plat hunter] 25/11/2020 17:50

It's broke...91.957 as I type

[petebreeze37] 25/11/2020 14:50

Let's hope so, thanks.

[stevea171] 25/11/2020 14:45

This Will Reverse Gold Price Higher.

The US Dollar Index is in danger of a major breakdown if the 92 level is decisively taken out on the downside. If that happens, the gold market will explode higher in an instant.

If US Dollar Index Decisively Breaks 92,
Gold Will Explode Higher

25/11 Update: USD Index barely holding above 92, so could see this decisive break below any day now.

[plat hunter] 25/11/2020 09:36

What a crazy share... perfect for day traders with 3-5% volatility a day.

[stevea171] 25/11/2020 07:50

Today is Comex option expiry day so we should see this constant coshing of the PM's taking a breather from tomorrow. Miners incl HOC are all bombed out but should respond when gold and silver begin to spring back.

Traditionally December and January are good months for PM prices.

[juju44] 24/11/2020 16:59

gold not doing it but bitcoin sure is

[stevea171] 24/11/2020 15:50

The US market is closed Thursday for Thanksgiving while Friday is only a half day. As such, this is a holiday week and most of Wall Street will be away from their desks.

This means we can see greater volatility as trading volumes will be very light this week. This means the few traders/funds/ institutions that will be active this week will have a much easier time moving the market.

[stevea171] 24/11/2020 15:15

Only 2 days left on the December contract at Comex. So we get these take downs and extreme volatility. The BB's as usual are trying to shake the longs out of their contracts and are desperate because they are billions in the hole .... !!

23/11. With only 3 trading days left before the December Delivery month the Silver Shorts are Throwing tantrums to try and shake off their 260M oz Short Position! How many contacts can they cover before Wednesday?!

[plat hunter] 24/11/2020 09:30

Didn't think my 204 stop loss was in danger but was sweating a little this morning to say the least lol

[plat hunter] 23/11/2020 15:44

Bounced off 216, in 3 of the last 4 days now.

[stevea171] 22/11/2020 22:11

Sotolo. I will look at it more when I have time.

Conference call. I got most of it which was brief and just mostly a rehash of the statement. No questions which never happens.

AISC. Yes, this is high. Too high. Especially Pallancata. No drill results from there either yet but drilling proceeding everywhere atm. They are hoping for a Pablo vein Mk 2 discovery to come along as happened a few years ago when production at the main Pallancata vein was nearing the end.

Production. I think this guidance is very conservative because the CV has not gone away and HOC management can't predict how Governments in Peru and Argentina are going to respond to a second wave.
Also production is slowed down because of all the testing of the work force they are doing and social distancing, etc. Who knows how long this will have to continue?

[misterbluesky] 21/11/2020 00:12

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

Summary
Producers and near-term producers with good risk-reward profiles.

Stocks that I expect to perform well in a rising gold/silver price environment.

Solid properties and management teams that should have high free cash flow.

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.

Some of them have higher risks than others, but overall, they tend to have very solid risk-reward profiles. The majority of companies are in good locations, although there is significant production in Mexico and one stock in West Africa, also some exposure in South America.

Not all of them have pristine balance sheets, which is reflected in their high-risk rating. So, if gold/silver prices drop significantly, these stocks could fall rapidly in valuation.

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.

Top 10 List...(see the actual article)

I will give you a short analysis of why each stock makes my Top 10. Most of these stocks are well-known, so the analysis will focus more on the nuances of why I picked them.

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.

Another question you will ask is why are the future free cash flow multiples different for each company? Why do I use random values from 5x to 10x? This is based on a number of factors, but mostly my experience and gut-level expectations.

Some people find that guessing the future is a fool's errand and instead they focus on current company valuations. I find that it is very useful to project out into the future using estimated future production, estimated future costs, and estimated future metal prices. I have found this to be extremely beneficial in picking stocks.

I'll give you an example. In 2008, after gold & silver prices collapsed, along with share prices for the miners, I used this method to identify stocks that had large upside potential. I compared their current market cap to my estimated future market cap. It worked extremely well, and I expect to again during this bull market, as displayed below in this article.


Hochschild Mining (OTC:HCHDY): 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.

Notes...

[misterbluesky] 21/11/2020 00:07

Hochschild Mining resumes dividends, confirms confidence in outlook

[plat hunter] 20/11/2020 15:59

Reinstatement of a dividend policy, the markets hate those kind of things :-P

[petebreeze37] 20/11/2020 15:31

I wonder what is giving ag and gold a little tickle up. Choo choo.
Edit. Nothing as usual.

[sotolo] 20/11/2020 12:30

Most nominees take the dividend in the primary currency, I have a twice yearly argument with Barclay’s who insist on taking Centamin divi in dollars, despite it being offered in pounds, then days to change it into sterling.

[stevea171] 20/11/2020 11:27

Further announcement re dividend:

Dividend Calendar

Dividend dates 2020
Ex-dividend date 3 December
----------------------------------------------- ------------
Record date 4 December
----------------------------------------------- ------------
Deadline for return of currency election forms 11 December
----------------------------------------------- ------------
Payment date 31 December
----------------------------------------------- ------------

(the Directors of the Company (the "Board") approved the payment of an interim dividend of 4.0 cents per share ($20.6 million))

[plat hunter] 20/11/2020 09:22

And gave it all back again

[ifthecapfits] 20/11/2020 09:04

Divi reinstated. Nice.

[petebreeze37] 20/11/2020 08:19

Thanks plat. Choo choo

[plat hunter] 20/11/2020 08:16

Cmon.. choo choo