Hochschild Mining Share Discussion Threads

[stevea171] 24/7/2024 10:41

RBC raises Hochschild Mining price target to 240 (230) pence - 'outperform'

[nilla159] 24/7/2024 07:35

I too would also agree with those sentiments ... and thanks to your input sotolo.

[stevea171] 24/7/2024 07:33

Sotolo. Many thanks. Watch Monte do Carmo.

HOC has got the timing perfect and a very low price for a million oz resource in the next state to Mara Rosa. I expect current drilling and metallurgical work to be very positive and the option to be taken up this year, well before expiry in March.

Reasonable finance can be found, FS completed last year and all permissions in place so set for the next HOC mine build to commence next year. Average AISC of US$711 per ounce over LOM.

[sotolo] 24/7/2024 07:18

Stevea, really appreciate your intelligent, informed and frequently helpful posts

[stevea171] 24/7/2024 07:14

Pallancata silver replaced by Mara Rosa gold. But Royropata silver will be starting up in future so silver % should increase then.

[ifthecapfits] 24/7/2024 07:09

The forward looking statements are pretty encouraging too.

[sotolo] 24/7/2024 07:08

I thought Fres results much as expected, but what they don’t have is the growth that is coming to us in the next two years, also I am not sure that the market has twigged that Hoc is near 70% gold now.

[stevea171] 24/7/2024 07:04

FRES results out this morning as well. A bit disappointing. So we may find some FRES holders jumping ship to HOC ....?!!

The early volumes and price rises favour HOC.

[stevea171] 24/7/2024 06:30

24 July 2024
Production Report for the 6 months ended 30 June 2024

Hochschild Mining PLC ("Hochschild" or "the Company") (LSE: HOC) (OTCQX: HCHDF) is pleased to announce its production report for H1 2024.

Eduardo Landin, Chief Executive Officer commented:
"We have delivered a robust second quarter with another good performance from Inmaculada and a first material contribution from our new Mara Rosa mine in Brazil and remain on track to meet our annual production and cost guidance. We can now look forward to a substantial increase in output in the second half which, when combined with the current strong precious metal prices, is expected to see the Company generate significant free cashflow."

Operational highlights

§ Q2 2024 attributable production:[1]

o 57,815 ounces of gold

o 2.1 million ounces of silver

o 83,034 gold equivalent ounces

o 6.9 million silver equivalent ounces

§ H1 2024 attributable production

o 103,752 ounces of gold

o 4.1 million ounces of silver

o 152,792 gold equivalent ounces

o 12.7 million silver equivalent ounces

§ Reiterate 2024 guidance:

o Production of 343,000-360,000 gold equivalent ounces

o All-in sustaining costs of $1,510-1,550 per gold equivalent ounce

Project & Exploration highlights

§ Mara Rosa mine in commercial production with strong second half forecast

§ Cerrado Gold Inc. shareholders approved Hochschild's purchase of an option to acquire Monte do Carmo project

o $15 million paid already for the option cost; $45 million to be paid in instalments if the option is exercised

o Exploration & technical work ongoing

§ 2024 Brownfield drilling programme commenced with encouraging early results from Inmaculada and Mara Rosa

Financial position

§ Total cash of approximately $89 million as at 30 June 2024 ($73 million as at 31 March 2024)

§ Net debt of approximately $271 million as at 30 June 2024 ($282 million as at 31 March 2024)

§ Current Net Debt/LTM EBITDA of approximately 0.8x as at 30 June 2024

[sotolo] 24/7/2024 06:15

Steady as she goes and as expected now, but future looks bright, we have to wait for financials till 28th aug and financials.

[ifthecapfits] 24/7/2024 06:13

Great results.

[stevea171] 23/7/2024 14:19

Well done Sotolo and Onedb.
Hopefully the analysts will be satisfied with production numbers tomorrow so sentiment remains firm ahead of expected further rises in PM prices.

[sotolo] 23/7/2024 13:55

Stevea, me too, I bought a few thousand pounds more this morning around 174.5, it should also be helped by them probably announcing restarting of diviend, albeit small but will rise.

[stevea171] 23/7/2024 12:04

Monte do Carmo, Brazil.
Update. This purchase is proceeding with the first $15 million now paid in 3 tranches and shareholder approval given by Cerrado Gold's shareholders at a Special Meeting on 27/6/24. If HOC completes on the option by March next year development of a mine could commence in H1/25 with a 2 year build and $186 million cost - similar to Mara Rosa.

4th March 24. Option acquired by HOC for $15m for 100% of Cerrado Gold’s Monte Do Carmo Project. Development project with $60 million purchase option.

June 26, 2024 / Cerrado Gold Inc. is pleased to announce it has received the final advance under the Signing Loan from Hochschild in the amount of US$7 million. Total funds received from Amarillo Mineração do Brasil Ltda. ("Amarillo"), a wholly-owned subsidiary of Hochschild, under the Signing Loan now stand at US$15 million.

1 million oz resource.
Potential 100k oz pa gold mine.
AISC $711/oz pa.

• Located in mining-friendly Tocantins state neighbouring Goias
• Potential synergies with Mara Rosa
• Feasibility stage open pit/underground gold project with strong exploration upside
• Permitting substantially advanced
• 21 mineral concessions totalling 83k ha
• Excellent infrastructure - paved highway & hydropower plant

2nd November 2023. Cerrado Gold Announces Positive Feasibility Study Results for Its Monte Do Carmo Gold Project, Brazil, Including an After-Tax NPV5% of US$369 Million With an IRR of 32%.

Highlights
After-Tax NPV of US$369 million and IRR of 32%

Average annual gold production of 94,797 ounces per annum over 9 year Life of Mine ("LOM")

Average AISC of US$711 per ounce over LOM

Initial Capex of US$186.6 million (including US$15.8 million contingency)

Annual average free cash flow of $85 million over the LOM, with total cumulative after-tax free cash flow of $562 million over LOM

Initial Proven and Probable Reserves of 895 koz of Gold (16.8 Mt at 1.66 g/t Au)

Updated Measured and Indicated Resources of 1,012 koz of Gold (18.4 Mt at 1.72 g/t Au) and Inferred Resources of 66 koz of Gold (1.1 Mt at 1.95 g/t Au)

The Robust Economics of Cerrado Gold's Monte Do Carmo Gold Project in Brazil

[stevea171] 23/7/2024 09:22

Q2 is the first full quarter of production from $200 million Mara Rosa mine since first gold pour in February and the start of ramp up. May was the first month of commercial operation.
Q3 and Q4 we should see further increases in production from Mara Rosa.

Hochschild Mining PLC is pleased to announce that commercial production has been achieved at the Company's Mara Rosa gold mine in Brazil, effective 13 May 2024.

During May, the Mara Rosa processing plant has operated at an average throughput of approximately 90% of its name-plate capacity of 7,000 tonnes per day and exceeded 80% average recoveries. The ramp-up is on schedule to be completed in H1 and gold production is expected to continue to increase in the third and fourth quarters of 2024, with the mine on track to produce between 83,000 to 93,000 ounces of gold this year.

[stevea171] 23/7/2024 07:22

Will be adding a few more today.

[stevea171] 21/7/2024 10:12

Theoakbloke conclusion on HOC earnings this year may be optimistic but makes the point that the recent gold prices since early Q2 of $2300 to $2450 are to some extent not yet factored into analysts forecasts.

"If I’m right on HOC being $400m Adj EBITDA in 2024 and a net profit of something like £170m and using today’s £940m market cap puts HOC on a 5.5 P/E." (I think he means $170m not £170m and P/E ratio is not correct).

The summary of 8 analysts on HOC at MarketScreener agree that a step change in results is coming 2024 to 2026 with earnings per share of 30c, 36c and 45c projected with debt paid off around the end of next year and a small dividend to recommence for this year.

Forecast FY 2024:
Sales $902 million
Profit before tax $312m
Profit after tax $170m
Fwd P/E ratio 7.7

Q2/H1 production due this week. Wednesday.

[rathkum] 20/7/2024 14:25

A decent write up on HOC

[rathkum] 20/7/2024 08:04

This explosive value share could keep rising for the rest of 2024!

[stevea171] 16/7/2024 17:41

ATH for gold $2462. Silver $31.24

As posted above: July 6 – Michael Oliver:
“We’ve now entered an acceleration phase. I think we have entered that same phase again.

July 2nd - Michael Oliver:
A Gold Boom Is On The Horizon. Gold prices are likely to go parabolic in the near future, potentially moving up by $1000 very rapidly.

Gold and other monetary metals like silver may become the only viable alternative for investors as other markets face challenges.

A crisis, particularly the breaking of the US stock market bubble, could lead to more countries adopting gold-backed currencies.

Gold's performance is anticipating potential monetary expansion by central banks in response to market troubles.

[institutional investments] 15/7/2024 08:19

I didnt see this one until around mid 80s, so having to plan adds to catch up with your bags lol

[institutional investments] 15/7/2024 08:17

Extremely bullish consolidation. Wont sink even if others do. Be lucky if able to add low 180s here really so half a lot now and half on break or low 180s, whichever will do. Going back to 300s