Hochschild Mining Share Discussion Threads

[stevea171] 07/12/2020 12:20

It seems Eduardo's disposal of 12% in the placing last week has gone to a spread of institutions with no one holder reaching a notifiable holding. This should be good for liquidity of the shares going forward.

The Mkt Cap of HOC is now below £1 billion.

Eduardo's blocking holding is now removed for the first time since the company listed on the LSE. If a bid is now to follow I would expect an approach to be made in Q1 next year before the full effect of the higher gold and silver prices and higher production are reflected in the results.

[petebreeze37] 07/12/2020 11:37

I agree with the company being solid going forward but your JPM quote is using a lot of poetic license, they only look out for themselves and their mates and it looks like the seller is now one of their mates.

"As for JPM, yes I subscribe to the conspiracy theories, but nobody knows the gold and silver markets better than them and they will have countless serious investors as clients, to offer these too...its a bit like placing a huge lot of Vega Sicilia into the wine market..."

[rougepierre] 07/12/2020 11:29

Lets have a realistic perspective...

Yes it was surprise that he would reduce from his long held 50% thereby ceding potential control...

Given the bullish statements in recent company reports, I assume he had his own reasons for selling...

And remember they've just restored a dividend...

And for those that think 200p was a poor price, what price would HOC have had to take for a 12% placing...probably well below 200p...

As for JPM, yes I subscribe to the conspiracy theories, but nobody knows the gold and silver markets better than them and they will have countless serious investors as clients, to offer these too...its a bit like placing a huge lot of Vega Sicilia into the wine market...

So I've added more today and delighted to at sub 190p...

HOC is now my third largest holding and I look forward to substantial gains in future, primarily due to exposure to Gold and Silver as they rise...

As an aside, anybody interested in further research into Gold particularly might want to watch Nouriel Roubini's "23 reasons to buy gold" video on Youtube...



Enjoy...

[petebreeze37] 07/12/2020 09:44

I can't see this as a short term recovery, will need a bit of patience.

[imastu pidgitaswell] 07/12/2020 09:11

My gut is to buy more, relatively carefully. Just done so. And will keep on adding if needs be. Come back whenever it is 220 or more and take the cash and move on. It's all good.

I don't see the point of taking, say, a 10% loss. Why not add and make more than 1) you would have done with just the first purchase; 2) taking a loss? It's not a loss making prospector.

[plat hunter] 07/12/2020 09:07

Well I was right to take my loss, trust your gut

[plat hunter] 07/12/2020 08:52

Still no tr1's

[stevea171] 07/12/2020 08:47

EPS FY2020 (est): 11c (8.5p). PE @ 200p = 23.5

EPS FY2021 (est): 34c (26.1p). PE @ 200p = 7.6

Forecast net cash $20 million as at end 2020.

Forecast Free Cash Flow $182 million FY2021.

[petebreeze37] 07/12/2020 08:42

No one wants to buy at this price, they know it will go lower

[petebreeze37] 07/12/2020 08:31

I suppose you could ask the owner why he has chosen JPM and was he incentisized.

[petebreeze37] 07/12/2020 08:28

No one really knows what is happening, but with JPM in play it is concerning.

[gurcharan_cheema] 07/12/2020 08:21

The only reason I can think of is.... that his about to retire. Or they maybe a tax avoidance motivation. ... I don't want to think that there is bad news in the pipeline.. if that's the case.. I'm sure this would be seen as insider trading..obvs

[petebreeze37] 07/12/2020 08:16

Looks like JPM are in charge already
Belt up and wait.

[stevea171] 07/12/2020 08:11

I've bought a few more this morning on the drop as people panic sell. At some point next year I would expect 400p minimum. Not long to wait ....

[allseeingeye1] 07/12/2020 07:26

There is no way hedge funds are going to short this, they have all stayed away from metal miners and they have a mandate to do that.

These miners will be the light in 2021. No one knows truly why he sold the shares but institutions have brought them. If they think that Hochschild is a bargain at £2.03 then I am certainly ok with this.

Typical those with no positions talk the share down to get a better price. jog on and see this over £2 today

[knocknock] 07/12/2020 06:31

No doubt a substantial amount of the stock will be lent out to short selling hedge funds . Usual carry on . Watching and waiting here having been a long term holder here on occasions. No position at present.

[zcaprd7] 07/12/2020 04:06

Why did the chairman sell then?

[allseeingeye1] 06/12/2020 13:21

1. The placing isn’t a usual type of placing where the shares have been diluted, it is just a transfer of shares from one shareholder to another but at a discounted price.

2. Gold and silver prices are set to rise substantially into 2021

3. H2 exploration from Hochschild should be released before the end of December.

4. Imminent news on the reopening of their San Jose mine, which could come Monday and would give us a nice boost IMO.

5. Meeting in Feb 2021 on whether to continue to pay dividends which I think they will do.

6. They have cash of 196m and a tiny bit of debt which I think will be paid off in Jan.

Posted from LSE today

[d3009] 05/12/2020 19:27

Take back my comment ref post 20712 on the 1st Dec re: Blackrock kicking themselves, if we see their holding go back above 5pc in the near future I would hale them as true visionaries!

[petebreeze37] 05/12/2020 18:30

Agree long term ok, but, I read that JPM can buy some of the shares and if they do,and probably have already or when they pull the price lower, that to me suggests foul play from now on. JPM can now get direct access to silver and gold through the back door to enable their foul play with the comex.

[plat hunter] 05/12/2020 11:45

I agree on the long term view though

[plat hunter] 05/12/2020 11:35

I'm not convinced Rouge, especially in the abscence of tr1's I think they're going to get worked through.I changed my mind after sleeping on it and took my loss. Had they been sold at a premium then obviously a different story, we'd all be happy and probably be buying more. Can't have the same outcome for two opposing events, life ain't ever that easy.

[rougepierre] 05/12/2020 11:00

This is not like a placing, because theres no dilution...the shares have gone into institutional hands and this will improve liquidity..

The production forecasts for 2021 are still way above 2020...gold and silver are going to rise (watch Nouriel Roubinis 23 reasons to buy gold)...

HOC now makes more from gold than from silver...

RBC has these at 330p (22 Nov) and Peel Hunt at 325p (23 Nov)...

No brainer for long haul...

[breaktwister] 04/12/2020 17:05

Chart looks horrendous. Nice that us PIs lose 20% in two days because one multimillionaire decides to sell at a discount. Looks like we test 180 now after this abysmal close under 200.