Hochschild Mining Share Discussion Threads

[dt1010] 10/3/2017 07:01

If silver plunges this will will get shorted, that's what happens. sentiment, perception, speculators just diving in to make a quick buck regardless of underlying values. When silver bottoms out and the shorters buy back their borrowed stock and of course HOS rises.

Fundamentally nothing changes with the quality of their operations of course, all of which makes for an ideal buying opportunity for those lucky enough to be out at the moment.

This will all be over soon. Hopefully. Expect $16 could be a floor.

[lauders] 10/3/2017 00:51

Given HOC's recent results and bullish forward looking outlook why would there be "some massive plunge" in its share price? I know you were referring to the PM market in general but I would hope even a massive plunge there would not reflect so much in HOC as we SHOULD have support around this area. If we don't and we do "plunge" then it would be an ideal time to top-up or join if not already a holder.

PS - Like this from the tarnscript text linked to earlier:

Higher depreciation related, of course, due to the fact that we are now fully depreciating the investment in Inmaculada; driving gross profit to 29%, compared to only 13% in 2015.

I like this chart very much because it shows the waterfall of our cash flow. You can see how important Inmaculada is now for us; Arcata, also with very positive generation; as well as San Jose. Pallancata is all about transitioning to Pablo and we'll talk also about that. But you should expect, going forward, that Pallancata represents a much more important percentage of our cash flows.

Hedges. We lost in hedges around $19 million. Important to note that going forward we have no hedges at all.

[hectorp] 09/3/2017 23:35

They may well raise, but then there will be buying back of PM positions. I'd not wait until date of announcement.
I did add again today, but a week or two is not important to me unless there were some massive plunge.

[saturdaygirl] 09/3/2017 21:53

Note Stochs can turn on a sixpence , everything timed around the 15th Mar . That when to push the buy button if the Fed have cryed wolf yet again , if they raise then maybe a more controled buy back in is called for . Being out seems to offer more freedom at this point .

[saturdaygirl] 09/3/2017 21:28

DT

The Stoch Chart failed and i bailed .. as you know they form a major part of my charts .

[stevea171] 09/3/2017 21:22

HOC FY 2016 presentation transcript from Seeking Alpha
This is a very long transcript (13 pages) so if interested I suggest you go to the link to get the complete record.

Hochschild Mining's (HCHDF) Q4 2016 Results - Earnings Call Transcript Mar. 8.17

EPS of $0.11 | Revenue of $688.24M (+ 46.7% Y/Y)

Hochschild Mining plc (OTCPK:HCHDF) Q4 2016 Earnings Conference Call March 8, 2017

Executives
Ramon Barua - CFO

Analysts
James Bell - BofA Merrill Lynch
Dan Major - UBS
Dan Shaw - Morgan Stanley

Ramon Barua

Hello, everyone. Thank you very much for attending Hochschild's 2016 results. First of all, let me tell you that Ignacio couldn't be here, unfortunately, today; he's had a runner's related injury. He's doing fine. He should be up and running again pretty quickly. So, he sends his regards, to everyone.

I think this year, we have a fantastic set of results, driven primarily by the first full year of production of our Inmaculada mine. In 2016, it was the record production ever at Hochschild Mining, which produced 35.5 million silver equivalent ounces. This year, 2017 our intention and our guidance is to beat that record, and produce 37 million silver equivalent ounces. Costs performed also much better than expected. I think, we reviewed guidance twice during the year. We started with a guidance of $12 to $13 in of all in sustaining costs. We reviewed that to $12 to $12.5. We reviewed that again to $11 to $11.5; and we ended in $11.2. From a cost perspective, I think it was also a fantastic year. Notably, it's the fifth consecutive year in which we have been able to reduce all in sustaining costs. We started, in 2012, with around $21.7, and every year we've been able to drop that number.

Those cash flows have allowed us to reduce debt also quite aggressively. We'll show you some charts. But really the headline there the headline there is that, right before Inmaculada started production in June 2015, we had a net debt to EBITDA ratio of 5.8 times. Since then, we have also been able to repay that debt quite quickly and we have a ratio, today, of 0.6 times. So, investment grade levels very much early improvement on that front. Then, we're going to talk also in this presentation a lot about Brownfield. As, Brownfield has become our main source of growth going forward. We're very pleased with the strategy. For the first time, also in the history of the Company, we not only have a five-year mine plan, but we also have a five-year exploration plan, with very defined targets and, of course, with a full financing of that plan. We'll talk a lot about that, and where are the targets on each mine, and what are we thinking on doing, going forward.

We have announced a dividend, we're not forgetting about that. Again, the first priority of the Company remains repaying debt continuous through the Brownfield program, but also returning cash flow to shareholders. So, during the first half of the year, we announced $7 million of dividend. We're announcing $7 million more. That brings the dividend to a dividend yield of approximately 0.8% or 0.9%, and it represents very close to 30% of net income. This is the summary of our P&L. Again, revenue significantly increased. There's a little bit of an increase due to prices, 5% or 6%. But most of the increase is related to higher production of gold and higher production of silver. Cost of sales, unit costs very much under control. Higher depreciation related, of course, due to the fact that we are now fully depreciating the investment in Inmaculada; driving gross profit to 29%, compared to only 13% in 2015.

[dt1010] 09/3/2017 21:17

Lucky u.

So many conflicting signals.

I err with the Bulls long term obviously.

But unless silver can hold $17 into a close this week, the Bears have won for now.

[saturdaygirl] 09/3/2017 21:05

Thankfully i don`t own any at the moment ..

But one step at a time !

[dt1010] 09/3/2017 21:00

yeah sg i see it going sub 1200...all the way bk to 1100 maybe...

silver? $16 at least...

then...who 'king knows....

thankfully I have years to a return here...

break even within a few months at 278..

really is time to switch off the market and look to the horizon...

they won't rob me. Coz I ain't selling. I'm holding.

NB If we close this week sub $17 silver....then there is very real danger of going all the way back to Dec 16 lows. This is a critical time now.

[saturdaygirl] 09/3/2017 20:22

ODR good calls

But mind the gap !

[richkid71] 09/3/2017 20:09

Well done you ODR. Even mystic meg would have predicted that.

[k mon] 09/3/2017 19:55

odr .... the only way to .... really .. KNOW .... is to build one

[onedayrodders] 09/3/2017 19:52

How do you KNOW we all will have access to a time capsule

;O)


PS I did say $16 handle today before the close

[richkid71] 09/3/2017 19:47

Too many people with their own predictions on here. Some will be wrong and some will be right although NO ONE knows how this will all turn out. How people can predict £5 by August is just wishful thinking; something shares never respond well to.
Best to bury those HOC shares In a time capsule for a couple of years.

[juju44] 09/3/2017 17:50

I already have

[breaktwister] 09/3/2017 17:35

Juju look at the velocity of the decline in FR. It has slowed to a bounce imo. 760 on tues, 754 wed, 752 today. Now look at support areas going back a year. Im happy taking a small long here. All dependant on pos of course.

[onedayrodders] 09/3/2017 16:15

meanwhile .. are we about to have that $16 handle I mentioned before lunch today

[dt1010] 09/3/2017 16:15

Nah, juju, you clearly have no balls. You're just a grumpy 'told you so'.

[onedayrodders] 09/3/2017 16:15

I think the continuous moaning gives it away.

[juju44] 09/3/2017 15:58

ODR - why dont you short and not lose money. How do you know I am not short ?

[onedayrodders] 09/3/2017 15:56

juju .. have you ever thought about shorting PM's and miners .. you would obviously be much happier, cheerful and richer given your views about it all being a waste of time and the elite in control.

[juju44] 09/3/2017 15:54

Nope FR continues to make new lows almost every day - including today

[breaktwister] 09/3/2017 14:51

ITCF, I agree. OT but First Majestic has been hammered this month from 1091 down to 750 but it has bounced off there, a clear support area, in the last few days so I've taken a sb long.