Hochschild Mining Share Discussion Threads

[shakeypremis] 15/2/2017 11:07

Yes DT, look at pre 2008, interest rates were rising quickly and gold just kept going up and up.

RE Stevea171's post above, once HOC clear that debt they are going to be making a tonne more money.

[stevea171] 15/2/2017 10:26

Last year HOC was the 'world's hottest stock' and will be again when silver prices break free of this PM suppression.

Peruvian miner Hochschild Mining is the world's hottest stock
Sep 15, 2016, 8:13 am SGT

Higher silver prices, new production from its flagship Inmaculada mine in Peru and the weakening Argentine peso have made Hochschild Mining a favourite for investors.

LONDON (BLOOMBERG) - The world's hottest stock this year is a little-known Peruvian miner that rode the comeback in silver.

Hochschild Mining Plc, which operates three mines in Peru and one in Argentina, has soared 432 per cent in 2016, beating every other company in the Bloomberg World Index of 5,125 stocks.

Higher silver prices, new production from its flagship Inmaculada mine in Peru and the weakening Argentine peso have made the stock a favourite for investors.

Hochschild has cut back on debt and is expected to report its first profit after three years of losses.

Now the company's strategy is focusing on finding new reserves of silver and gold near current plants and using more of its processing capacity, according to Mr Ignacio Bustamante, chief executive officer of Hochschild. He plans to avoid buying any new assets.

"There's going to be a lot of pressure from investors not to do M&A," Mr Bustamante said. "There's been a lot of value destruction in acquisitions."

It's yet another example of how mining companies have reset their ambition. After racking up billions of dollars in debt in the race to feed China's commodities demand, many are now going in reverse. Debt levels are falling as companies cut costs, sell assets and pursue only the most-profitable mines. Rio Tinto Group's CEO summed it up last month when he said the world's second-biggest miner could be "boring" for a long time.

For silver companies though, this year has been a surprising recovery. Precious metals rallied on signs that the Federal Reserve will keep interest rates low, boosting the appeal of investments that don't generate a yield. Silver is up 37 per cent in 2016, on track for the biggest annual gain since 2010.

The second-best performance in the Bloomberg World Index is also a silver producer. Coeur Mining Inc, a Chicago-based company, soared 390 per cent this year.

hxxp://www.straitstimes.com/business/companies-markets/this-is-the-worlds-hottest-stock

[hectorp] 15/2/2017 09:51

Yellen today.. after all that has just been ocurring re the President's Office,
I am sure in my bones she will stay well clear of Trump where she can. But if he, wants a cheaper dollar he will need to do more, maybe he has told her what to do.. well we will see.

[goldenshare888] 15/2/2017 09:46

EG:

If FED rate is 2% and inflation is 3% then: REAL INTEREST RATE IS MINUS 1%.

ie, rates have risen dramatically from 0.5% but it's still good for GOLD!

It's basically how governments cover up for their inefficiencies and erode their debt mountains, while simultaneously making the wealthy wealthier and the rest poorer.

[onedayrodders] 15/2/2017 09:26

Considering the FED Circus was in town yesterday, compared to previous years and reactions, this time we appear relatively unscathed.

V Good sign

ODR


ps great charts SG .. I know they are not guarantees but as Topicel said if both politics and charts converge together the effects should be very significant.

[topicel] 15/2/2017 09:15

DT! You need to research history more mon ami. There are many occasions when a rising US interest rate did not deter the price of gold.

On the contrary, just look at the 2004-2006 period when multiple rises took place above 5.25% and gold simply ignored that because, as many knew, fundamentally there was a systemic problem. Which we then witnessed in 2007/8, as you might recall!

Canaries and mines have been mentioned and, I guess, gold is as good as any as is silver of course. The only thing you need to focus on is a solution to the debt ceiling as Trump can't 'go large' on infrastructure spending without it. Then, he needs low rates to accommodate that spend, or, again, he can't do it.

Sound money and a weak dollar and lower interest rates will have to apply, and the hit will be inflation, which we are already seeing and, quite likely why the Saudis are cutting production to assist in that goal.

Inflate the debt away was always the likely solution. Throw in the 100 year note that Mnuchin's suggesting and we can probably see it backed by gold and /or silver, for a novel solution without the Fed. With the fresh seats now available on the FOMC the chances are Yellen will not - even if she could - raise rates beyond a token 0.25%.

Anyway, they simply can't afford it!

Topicel

[dt1010] 15/2/2017 08:48

It is shakey. But. Rising rates, IF they raise rates in the US, won't be good for gold, supposedly. And where good goes silver follows, faster.
However, we all know Yellen can't increase rates very fast or by muc without pushing the U.S. into recession.
It's a fine line between them saving face with good economic stats and causing recession via rate increases.

[edjge2] 15/2/2017 08:41

thanks SG for your JNUG help looks like there is nothing like a 3 times leveraged small gold miners ETF on London market but anyone know of similar here? Got a currency risk with JNUG. Trump and Yellen seem opposed. Bad news for Yellen knowing Trump. He is a business man.

[shakeypremis] 15/2/2017 08:33

Increasing price inflation is good for gold and silver.

[shakeypremis] 15/2/2017 08:31

If they increase interest rates it's just going to make everything that much more expensive to produce, because basically everyone has debts these days and increasing the interest rate increases the cost of servicing those debts and increases the costs for new businesses to maintain margins of solubility you are going to have to raise prices, many will go bust if they don't raises their prices. Yes my friends, interest causes price inflation.

[dt1010] 15/2/2017 08:12

The charts will go where the macro data lead them in the next couple of days. They are news led so completely unpredictable when the strength of the USD is based on likelihood of further rate increases and rate increases are based on controlling inflation. Charts look great and we appreciate SG's efforts but it's the economic data and Yellen's comments that are the leading factors here.

[lauders] 15/2/2017 00:55

I asked fingersxxx for an update on HOC from his point of view. The reply may be found in post 8245 here:

[topicel] 14/2/2017 22:26

Nice to see the h&s on the dollar chart is still very much intact SG.

Seeing as Trump can't operate with a strong dollar, it matters little what the chart says of course, but nevertheless nice when two worlds collide sometimes. Lol.

Topicel

[dt1010] 14/2/2017 21:13

Heads up: Today and tomorrow Janet Yellen will be appearing before the Banking and House panel. Tomorrow also brings U.S. inflation and retail sales data. So, while markets may be somewhat dull today, tomorrow could be a busy day.

[dt1010] 14/2/2017 20:32

I'll drink to that SG

[saturdaygirl] 14/2/2017 20:29

Great flag on Silver , have the Paper Tigers set us up for new high`s ?

[dt1010] 14/2/2017 20:09

Hasn't really started to roll over yet let's be honest

[saturdaygirl] 14/2/2017 19:59

The Dollar Index seems to be rolling over consistent with the H&S top

[dmitribollokov] 14/2/2017 18:52

Coming back with a vengeance anyway.

[february 30th] 14/2/2017 18:32

I am slightly uncomfortable with the paranoia about silver smashes, even if occasionally months of production gets paper-sold in a minute. Although the overall correlation between the dollar and silver isn't quite as strong as some people make out, it's obvious that right now the dollar is a major driver for PM prices. So if there is a smash, it's happening with EURUSD rather than silver. And of course there is no way that the US economy can tolerate a dollar that is much stronger than it already is.

[saturdaygirl] 14/2/2017 18:12

ACA and HOC charts , both very similar except Acacia has published results .