Hochschild Mining Share Discussion Threads

[knocknock] 05/4/2024 15:54

More big trades at the end of play. These are not uc trades either. Been going on for a fortnight.

[petebreeze37] 05/4/2024 15:10

Gold to silver us at an unheard of ratio of 95 to 1. Silver in theory should be much higher

[stevea171] 05/4/2024 07:48

Kk. Year end target prices for HOC all depend on the price for gold and silver.

Gold now is at an ATH but silver no where near its $50 ATH. If silver is $50-100 by year's end as I expect HOC and other silver miners could be multiples of their present prices and yes, £3 or more is possible!

[knocknock] 04/4/2024 21:07

Watching the trades I believe there are big buyers out there. Keep filling the boots as these prices will not hold. I've held here for a good few years and traded well. Tranches at £1.28 down to 68p if ever there was a stock so undervalued it's HOC and I'm happy to look at my positions when £3 comes knock knocking before years end. Ramp and enthusiasm intended. DYOR nai

[stevea171] 04/4/2024 17:14

A ton of loyal SHG PI's who were remaining to see the vote result today will exit in the coming weeks and some more may come here.

[stevea171] 04/4/2024 17:06

LSE: "Oh well we have tried. Topped up my SRB THX EDV and bought new positions in PTAL, FRES and HOC. its a shame but theres many more out there. Good luck all its been a pleasure"

I have a reasonable holding in SRB too, but held off diversifying further until the result of this fiasco was confirmed.

[stevea171] 04/4/2024 16:57

3.40pm. SHG announced the takeover vote was passed. PI's who had been holding on hoping for rejection of the paultry offer started to sell en mass and a ton of money came here!

I was a large holder when the offer was made just before Xmas but exited in dribs and drabs from January when I took the view that a bidding war would not emerge and Shanta (sadly) was a gonna!

Yet another LSE listed gold miner will be delisting now in due course.

[petebreeze37] 04/4/2024 15:16

WTF, 4p jump

[stevea171] 03/4/2024 18:41

Silver $27.05. Highest since 2021. So that's another $ since yesterday but a break above $28 is the key level and what we are all waiting for.
Gold $2297.

[stevea171] 02/4/2024 19:47

Silver $26.08. FRES was up 7.5% today on silver now following gold's rise.

[stevea171] 02/4/2024 16:37

If this new Mines Dept process is applied to Royropata the permit could be issued H2 this year followed by development and production of 100k oz silver/gold pa next year. 2 years ahead of guidance! Let's hope Soto can deliver.

We could do with the Chilean Mines Dept streamlining their permitting process along the same lines as Peru for Aclara's RE Penco Module. If this were to happen, Penco could be approved this year with construction next year and first production thereafter.

HOC is a Peruvian miner but has been forced to look to build new mines out of the country because of the chaos, agro, and exorbitant length and complexity of the permitting process in Peru. Now Brazil is first choice for HOC with Mara Rosa to be likely followed by Monte do Carmo.

[rathkum] 02/4/2024 13:33

Wonder if this would speed up the environmental permitting process for Royropata

The head of the mining department, Jorge Soto, said the ministry is holding meetings with Senace, water authority ANA, forestry service Serfor, protected areas service Sernanp, state agency Ingemmet, the culture ministry and others, to expedite second stage procedures. It aims to complete the process this month.

Soto said in an interview with the Institute of Mining Engineers that the second stage will focus on optimizing internal processes and reviewing legal issues under the current regulatory framework.

Regarding the first stage, focused on exploration, Soto highlighted that it has been possible to reduce the permit review time from 234 to 40-50 days and that procedures for up to three projects should be approved each month.

[stevea171] 02/4/2024 07:00

March 31, 2024. Draft decree allows miners in Peru to exceed daily installed capacity by 10%.
The Peruvian Ministry of Energy and Mines (Minem) presented a draft Supreme Decree to allow miners to increase their daily authorized production by up to 10% without applying for new permits.

Currently, excess production can reach up to 5% of the total allowed and if miners go over that limit, they have to pay a validation fee.

[stevea171] 02/4/2024 06:42

HOC offloading Crespo project. It was decided it would not be of a scale HOC would want to invest in for development. $15 million. Thanks very much. With more to come from the likes of Volcan!

2 April 2024
Sale of Crespo project for $15 million

Hochschild Mining PLC is pleased to announce that it has completed the sale of its Crespo project in southern Peru to Kina Mining Peru SAC (related to the Apumayo SAC Group). Under the terms of the agreement, the Company will receive $15 million as a non-refundable cash payment and a 1.5% Royalty Net Smelter Return (NSR) over the project with Kina also assuming any future associated liabilities.

Eduardo Landin, Chief Executive Officer of Hochschild, commented:

"The sale of the Crespo project is consistent with our stated strategy of disciplined capital allocation and focusing on our core assets such as the Company's flagship Inmaculada mine and the new Royropata project, both in Peru, as well as the recently-completed Mara Rosa mine in Goias, Brazil."

[rathkum] 01/4/2024 20:03

Hochschild Mining: Undervalued Mid-Tier Gold/Silver Producer
Apr. 01, 2024 9:03 AM ETHochschild Mining plc (HCHDF) StockHCHDY
Don Durrett

Summary

Hochschild's risk-reward has improved due to resolved permit issues, improved long-term costs, strong pipeline, and increasing gold prices.

The company has the potential to grow production and generate significant free cash flow over the next 3-5 years.

Hochschild's current valuation presents a significant upside potential of 600% if gold prices reach $3,000.

[stevea171] 30/3/2024 07:51

Graddhy out of Sweden: Gold had a historical breakout 12 weeks ago.
Silver is now in the making of a similar mega breakout.
Silver miners should start to outperform just about everything…

Commodities are extremely undervalued vs the stock market. A historical turn is coming. Meaning a historical opportunity.

A global paradigm shift is in the making, away from overvalued paper assets towards undervalued hard assets. It will be the largest global financial paradigm shift the world has ever seen.

Posted recent big breakouts or breakouts happening now: copper, gold, silver, agriculture index, base metals index.

The pushed narrative is inflation is done. No, it is not. Not by a mile. Unfortunately.

With all these major breakouts, it is clear that the 2nd inflationary wave is starting.

This commodities bull is the opportunity of a lifetime.

[hunter154] 29/3/2024 13:30

Free cashflow yield for next year is 19%.
Net debt is manageable.
Mara Rosa commercial prodn announcement due.
1st Qtr trading due in a few weeks.
Above all, further geographic diversification with the new option.

All is rosy in HOC’s garden. If metals remain at current level, a double is likely by end of year.

[stevea171] 28/3/2024 10:11

First gold pour at Mara Rosa was on 20th February. I expect commercial production to be announced ahead of schedule, within 3 months of this start up. Probably May. With gold holding over $2000 and looking to take out $2200 imminently the timing of production at HOC's new mine with low costs could hardly be better.

Mara Rosa is expected to produce between 83,000 to 93,000 ounces of gold in 2024 at an all-in sustaining cost of between $1,090 and $1,120 per ounce.

Focus now is on completing the ramp up of the processing plant to achieve commercial production. In addition, the brownfield team is continuing its programme to further grow the resource base at a number of targets in the region.

[rathkum] 27/3/2024 20:21

Super recognition coming into Hochschild Mining, few sellers relative to the demand. Lowly valuation multiples, growth, diversification and cost declines (on horizon) driving.

Silver yet to go.

So JPMorgan said this about Hochschild and valuation:

"HOC trades at spot 2024/25E EV/EBITDA of 2.1x/1.6x vs
precious metal peers average of 4.9x/4.0x. We are Overweight"

112p presently and double at 226p is still discounted (despite the rising production profile coming and falling cost base ahead).

Someone nudge me at 150p for starters.

[rathkum] 27/3/2024 15:44

Why today's rise:
Berenberg raises Hochschild Mining price target to 170 (150) pence - 'buy'

[stevea171] 27/3/2024 08:53

120p back test over, HOC moving ahead.

[stevea171] 26/3/2024 10:26

Peter Schiff: “I think we’re on the verge of the biggest bull market in commodities since the 1970s. Of course, this flies in the face of Powell claiming that inflation is going to go back down to two percent. There’s no chance that inflation is going to go back down to two percent! All the data shows that inflation is on the way up. Plus, if you understand what inflation is, it has nowhere to go but up.”

A hotter-than-expected Producer Price Index (PPI) report last week also contradicts Powell, with the PPI increasing from last month by more than twice the most conservative estimates. The PPI, in addition to a recently announced 13% federal deficit increase, does not bode well for the economy:

“This is why we have inflation. It’s driving prices higher. All this money is being spent. How can it not bid up prices? This is why the Fed is not only going to taper the QT [quantitative tightening] program but go back to quantitative easing because government spending is going ballistic. And all of it is stoking the fires for inflation. … There’s no downward pressure from five and a quarter, five and a half percent interest rates. Those rates are still too low.”

[stevea171] 26/3/2024 10:11

Gold $2191. +$20.
Are these 2 events connected?

Huge Bridge In Baltimore Collapses After Container Ship Strike.
Baltimore is the most inland port on the East Coast and is interconnected to the I-95 highway network. With no commercial vessels sailing in and out of port anytime soon, this is catastrophic for port operations and could spark major supply chain snarls in the Mid-Atlantic and Northeast.

Last year, according to the Maryland government's website, the Port of Baltimore managed over 52 million tons of international cargo valued at more than $80 billion, ranking it as the ninth busiest port in the United States.

[stevea171] 22/3/2024 19:07

If you want charts I suggest you start your own thread.

[petersinthemarket] 22/3/2024 11:08

With the exception of the charts, the other thread is a waste of time.