Hochschild Mining Share Discussion Threads

[stevea171] 17/3/2024 09:27

Silver. Gold is consolidating from its recent $2180 high but silver is still moving higher. Friday it hit $25.40 and still closed above $25 at $25.18.

Next ST moves: $26, $28 then $40.

HOC is at a 21 month high and looks to be heading higher on the back of an improved outlook and the surge in gold and silver which is expected to continue.

HOC share price is responding to FY results on Wednesday that II's didn't take exception to but rather are looking to the big picture of growth this year and beyond (option to acquire Monte do Carmo project in Brazil announced this month which could be another Mara Rosa 100k oz pa gold mine with massive exploration upside) and the silver lining - silver!

Not included in HOC's valuation at all is it's under the radar 20% holding in Aclara which is likely to become a billion $ company with the discovery of a second RE deposit in Brazil which is at least 4 times larger than the original deposit in Chile.

Institutions can see how over priced the markets are generally and will be moving to increase exposure to gold and the miners. London listed PM miners of sufficient size that institutions would favour have been declining over the years with the most recent de-listings being Polymetal and Petropavlovsk. The PM miners investing universe in the Ftse350 is reduced to just 4 companies now - Endeavour, Fresnillo, Centamin and HOC - and of these HOC is the one with the best growth trajectory. Remember HOC was on the fringe of Ftse100 promotion some years ago and this is a future possibility under new management and with the sale/ditching of projects incl 10 million oz Volcan that could be worth $200 million by itself.

[tidy 2] 15/3/2024 09:38

Breakout looms.

[t_headder] 15/3/2024 06:53

At black Barron; you are wrong because it is in the same etf's and has $ listed adr's. You are probably just picking stocks with high volatility.

[rathkum] 14/3/2024 16:07

Berenberg raises Hochschild Mining price target to 150 (140) pence - 'buy'

UBS raises Hochschild Mining price target to 140 (135) pence - 'buy'

[theblackbaron] 14/3/2024 14:30

Hmmm they are switching to NYSE gold and silver miners did a nice trade yesterday sold this morning in hoc. However yes it will go up but not as much as NYSE.

[rathkum] 14/3/2024 12:31

According to my broker, investors including some institutional funds are switching out of Fresnillo and into HOC. It's all about the growth trajectory going forward which HOC offers.

[qs99] 14/3/2024 12:05

Thanks

chugging along nicely today

[stevea171] 13/3/2024 21:39

13/03/2024. 2023 Full Year Results Presentation

[stevea171] 13/3/2024 19:54

The political instability in Peru goes on.

6 March 2024. Peruvian President Dina Boluarte named the country's representative to the Organization of American States (OAS), Gustavo Adrianzen, as the new prime minister on Wednesday, a day after the prior prime minister stepped down amid corruption accusations.

[stevea171] 13/3/2024 18:04

Silver taking off, belatedly. $25. +3.5% today.
Hi,ho silver!

[pdv48] 13/3/2024 17:57

Impressive ??

[qs99] 13/3/2024 16:31

The net debt should IMO reduce very quickly and substantially if the POG stays over $2,000 and given their AISC and production guidance....DYOR

[rathkum] 13/3/2024 16:24

Aclara Announces up to US$80M Strategic Investment by Cap in Its Chilean Subsidiary and an Option for an Equity Investment of up to 19.9%

[rathkum] 13/3/2024 14:34

From IC

Take another look at Hochschild Mining as it regains its shine

South American gold and silver miner will consider return of dividend at mid-year
March 13, 2024
by Alex Hamer

Cash profit climbs on improved gold prices and weaker Argentinian peso
Push into Brazil continues with new mine purchase option

Even for a company that specialises in digging, Hochschild Mining (HOC) has done well to unearth a better portfolio within just 18 months. The South American company has been weighed down by expensive operations and a permitting hold-up at its key mine, Inmaculada.

But the completion of a new mine in Brazil and a path to improving the Peruvian operations does put it on the upswing.

Adjusted Ebitda for 2023 was $274mn (£214mn), up 10 per cent on the year before. A $34mn drop in exploration spending and $21mn boost through an Argentinian preferential exchange rate programme also helped this figure, although it is still $100mn down on 2021. Analysts see improvement again this year thanks to the higher gold price and cheaper production at the new Mara Rosa mine. Production in 2023 was 300,749 gold equivalent ounces (oz), which includes silver, and the guidance for 2024 is 343,000-360,000 gold equivalent oz.

The realities of looking for profitable new operations was obvious in the 2023 income statement: reported profits fell on $80mn of impairments and another $17mn came from a write-down on the mining unit of San Jose in Argentina.

Debt rose in the year due to the Mara Rosa construction cost. Chief executive Eduardo Landin said the company would consider bringing back a dividend once Mara Rosa hits commercial production, expected mid-year.

Landin, who said Peru was more stable even after a change of prime minister last week, also flagged a greater commitment to Brazil through a new option over another brownfield project, Monte do Carmo. He said this could be another Mara Rosa, if further exploration confirms the seller’s pitch in the next 12 months.

Hochschild still has a way to go to balance out its new growth spending with managing some still ageing and expensive mines, like San Jose, but it is cheap enough and has good enough prospects to warrant getting back in. Buy.

[farrugia] 13/3/2024 10:52

debt is chunky at $257.9 million so will wait for better opportunities to top-up here - I actually topped up in Cerrado Gold that has a market cap of just 18.92M now despite signing this deal with HOC. Cerrado still have a producing gold mine in Argentina

The Group, through its wholly-owned subsidiary Amarillo Mineração do Brasil Ltda. has entered into an option agreement and certain ancillary agreements with Cerrado Gold Inc. pursuant to which Cerrado has granted Amarillo Mineração the option to acquire a 100% interest in Cerrado's Monte Do Carmo project located in the mining-friendly state of Tocantins, Brazil.

"In consideration for entering into the option, Amarillo Mineração has agreed to advance to Cerrado an amount equal to $15 million by way of 10% interest-bearing secured loan and has committed to incur a minimum of $5 million in exploration expenditures at the project during a 12.5-month period ending on 19 March 2025.


At any time during the Option Period, Amarillo Mineração may, at its sole discretion, elect to exercise the option to acquire a 100% interest in the project by deemed repayment of the secured loan, and by making further cash payments to Cerrado totalling $45 million in the aggregate, in multiple instalments over the next three years."

[qs99] 13/3/2024 10:24

Graph suggesting IMO that this will be blue by end of the day DYOR...

2024 forecasts and beyond with commodity prices where they are IMO are just too compelling. DYOR

[r88ave] 13/3/2024 08:15

loaded up more at average 105

[theblackbaron] 13/3/2024 08:06

You still moaning sotolo about hoc past 2 years on here, been making three times the loot on us gold and silver miners does seem U.K. ones particularly resolute should do better.

I have come to the conclusion at present NYSE is the place but still keep an eye on old favourites.

[qs99] 13/3/2024 08:03

stockhunters, WHY would gold get anywhere near $1,500 again?

Interest rates likely to fall, $ weakness, geo political risks

market will look at 2024 and beyond IMO and r88ave post is more salient.

Massive uptick in production at POG over 2,000 and this should be making some massive hay DYOR

[stevea171] 13/3/2024 07:56

Sotolo. I was expecting poor results today. Probably there will be a hit to the share price but what do I know? I thought the same with the Interim results but the II's thought differently. Ultimately the share price is down to them - especially the North American market which trades mainly after 2.30pm here.

Medium tern, long term HOC should get back to where it was years ago with much higher production and profitability but it has been set back by the closures of Arcata and Pallancata with no replacement till now with Mara Rosa, the permitting process in Peru and the Socialist government in Argentina during Covid and since.

[stockhunters] 13/3/2024 07:53

but gold could quite easily drop

[r88ave] 13/3/2024 07:48

I reckon this will cheekily drop on open on face of the last year results, however the numbers for 2024 going forward with new gold mine etc and capex cost at max 178m with 360k gold eq say $2100/oz average for year. The numbers im roughly getting is about $580m in returns unless I am missing something. This more than cap market of company. I will buy if it drops today

[kaos3] 13/3/2024 07:45

I do not like it, despite operational progress.

No divi and above all hedging years into the PMs boom