Hochschild Mining Share Discussion Threads

[arja] 18/10/2023 14:41

p/e of 88 is awful but that might not be up to date :)

[arja] 18/10/2023 14:39

not a lot to love looking at chart but should edge up a bit more if gold price holds up

[knocknock] 18/10/2023 12:50

Love this stock

[blackhorse23] 18/10/2023 11:20

They have raised GATC 180p & WJG 100p as well

[nilla159] 18/10/2023 06:47

Excellent production report delivered in difficult times.
Steady improvement from this point I think.

[amazoner] 13/10/2023 07:38

yippee yippee

[juju44] 29/9/2023 14:52

Daily Yank smash in PMs . Gangsters rule

[amazoner] 29/9/2023 09:50

how big is the financial impact of suspending pallacanta from next month?

[rathkum] 28/9/2023 18:19

Hochschild Mining planning a US$500mn future in Peru
Bnamericas Published: Thursday, September 28, 2023

Hochschild Mining, one of Peru's main precious metals miners, is optimistic about its brownfield projects, but will have to stop operations to advance one of them.

CEO Eduardo Landin told the Perumin mining event that the Royropata deposit, discovered in 2022 at the Pallancata gold-silver mine in Ayacucho region, has a lot of potential and will be a priority. Landin said the company will invest US$500mn.

Royropata is in the advanced feasibility engineering stage and the process to obtain the third environmental impact modification (MEIA) started recently, according to Landin.

Pallancata will produce 2-2.2Moz silver and 21,875-24,609oz gold this year, he said.

“We think Royropata can be converted into a new mine. The project has very good grades and we have already incorporated 51Moz of silver equivalent [in potential resources],” he said.

Hochschild obtained the environmental license for its Inmaculada gold project in August.

SUSPENSION

But operations at Pallancata will have to be suspended because of the MEIA process.

"We are going to have to stop until we get this permit. We are counting on the government to facilitate it, and obviously on our part we are going to do our best to ensure that the MEIA is a document of the highest quality," Landin said.

Operations will stop in the fourth quarter and restart only after all permits are obtained, which is expected for 2H26.

FORMALITIES

Brownfield projects are seen as less challenging because they carry lower social and environmental risk, enabling swifter execution.

Considering the advantages, Landin proposed authorities facilitate free brownfield exploration in areas of direct influence, also at smaller scales without requiring permits, which could deliver resources to juniors and add value.

He also recommended eliminating prior consultation for exploration and to simplify the environmental technical requirements and the environmental impact declaration.

“Permitting is definitely a barrier to investment. Promoting brownfield exploration is critical for the industry because it is less expensive than making a discovery, has greater probability of a discovery, and it ensures the competitiveness of mining units that employ a lot of people.”

[book5] 11/9/2023 14:11

Nothing new
Low margin
Imho, though decreasing, Peru risk still high, politically and from locals
this is not a share for widows and orphans,
I am watching this
Aclara is also an option, let's see if they raise new cash for that subsidiary

[jsg123] 11/9/2023 13:58

Anyone know why this has dropped from mid 80s this morning?

[rathkum] 07/9/2023 18:15

Berenberg raises Hochschild Mining price target to 140 (130) pence - 'buy'

[hunter154] 06/9/2023 17:42

I dont think there was anything that was not known already. I was hoping they would do a presentation of what the MEIA means for ongoing production 2024 and beyond.
Sadly, we will have to wait till 22/11 for the Capital day presentation before we get that.

One positive was that 10k drilling will start now and we should have that fall into reserves by 31/3/24. This shows that mine plan will get back to normal (+250k aueq ) moving fwd.

[tigerbythetail] 06/9/2023 10:02

There was a lot of bad news (and a certain amount of "new boss kitchen-sinking") in this morning's RNS, but it looks like the market had most of it priced in.
I wonder if this is the beginning of a turnaround after a time of troubles. The worry is the debt load, but as long as HOC can get the new mine open on cost and on budget then it should be manageable - bar a collapse in precious metal prices, of course.

[arlington chetwynd talbott] 06/9/2023 06:33

Not as good as expected?

[farrugia] 06/9/2023 06:20

10 May 2023

o Production of 301,000-314,000 gold equivalent ounces (25.0-26.0 million silver equivalent ounces)

o All-in sustaining costs of $1,370-1,450 per gold equivalent ounce ($16.5-17.5 per silver equivalent ounce)

06 September 2023

§ Revised production target:

o 289,000-303,0000 gold equivalent ounces (24.0-25.0 million silver equivalent ounces)

§ Revised All-in sustaining costs target:

o $1,490-$1,580 per gold equivalent ounce ($18.0-$19.0 per silver equivalent ounce)

and they still have to spend $54 million to complete Mara Rosa in H2

[spacedust] 30/8/2023 14:35

I was correct

[spacedust] 25/8/2023 14:24

Silver will fly. Rates held

[spacedust] 25/8/2023 11:57

Perfect fries Chichen

[sotolo] 25/8/2023 10:03

I, who have been the Jeremiah for 2 years + , have actually been accumulating shares since the Inmaculada news. IF Hochschild makes it through this heavy debt for Maria Rosa period, or now I believe WHEN it does, with the Inmaculada news and hedge, I think this is an interesting and good value play on the gold price, and lesser extent the silver price, with the downside partially protected by the hedge and the upside optionality as Inmaculada resources extended and Pallancata exploration developed

[blackhorse23] 24/8/2023 09:34

Switched to PFC

[sotolo] 24/8/2023 05:51

Farfuglia, Hochschild is now a medium sized gold miner (now over 60% of production value) and rising with some silver, which will only be increased further by Pallancata closure. So when it come to silver Hoc is now a small miner. It has fallen to 16th in ranking of ounces of silver mined by companies

[hunter154] 23/8/2023 17:58

Thats good news.
The interims are now on 6 September, so hopefully we get upward move in anticipation of that and then a good presentation of mine plan for Inmaculada will provide some fuel post the announcement.

[rathkum] 23/8/2023 17:22

Things are finally looking up for Hochschild Mining, says Berenberg
hochschild

Berenberg has hiked its target price for the shares of precious metal producer Hochschild Mining by 30%, saying it's time to "revisit the investment case" after a tough number of years for the company.
Hochschild Mining
89.90p
17:05 23/08/23
5.21%
4.45p

The broker lifted its target from 100p to 130p, and reiterated a 'buy' stance on the stock, which was up 1.8% at 86.95p on Wednesday morning.

"Since 2018, 12 of the top 20 shareholders have reduced their stake in Hochschild, including the Hochschild family, which sold a 12% interest in 2020, with six shareholders fully selling out. In our view, investor interest is at its lows and now is the time to revisit the investment case," said analysts Richard Hatch and William Dalby.

Hochschild announced in early August that it had finally received a modified environmental impact assessment (MEIA) for its Inmaculada mine in Peru, a long-delayed milestone that has been hanging on the stock since the first half of 2022. For context, Inmaculada represents two thirds of production and 80% of operational free cash flow.

Meanwhile, the falling production and impending closure of the Pallancata project due to a lack of economic ore has also weighed on sentiment, Berenberg said.

However, there are now three key reasons to be optimistic, the broker believes: first, the MEIA for Inmaculada being approved; second, the new Mara Rosa mine in Brazil coming online in the coming year; and thirdly, the balance sheet approaching peak leverage, with net debt-to-EBITDA at 1.29x by the end of 2023.

"We think that as the company turns the corner operationally, and ramps up Mara Rosa, it will materially de-risk the investment case, and believe that with limited investor interest due to recent challenging years, the time is right to dust off the file on Hochschild."