Hochschild Mining Share Discussion Threads

[richkid71] 17/1/2018 14:23

This share is just under delivering. I think everyone has given up and fed up with it. People talk about being patient and would love to be right but they could say I told you so, in 2025. 2018 hasn't started well for HOC.

[d3009] 17/1/2018 13:09

Fieldhouse, I took the same messages as Stevea from the results especially around Arcata and the exploration results, these seem somewhat muted in the Q4 results compared with the H1 2017 Interim results, the AISC is also expected to go up for Arcata and it was hoped to bring costs down in 2017, could be what has subdued the share price this morning. Hopefully will find out more at 14:00 today.

[juju44] 17/1/2018 10:50

blue finish

[fieldhouse] 17/1/2018 09:44

Good summary steve,
Production flatlining next year but exploration going well

[shakeypremis] 17/1/2018 08:56

We really need the price of silver to get going. Gold is doing well and looks like it will continue to go up but silver really is lagging. A sustained $19 would be nice. I don't suppose we will see that for quite some time.

[stevea171] 17/1/2018 08:49

Lauders. "Not doing much to HOC's sp" atm, yes. But bear in mind institutions in Threadneedle St don't get in before 10 am and are probably at home munching their cornflakes and looking at the front page of the FT!

A mixed bag these results. One thing definitely not liked is that the days of massive chunks coming out of costs over 4 years from 2013 to 2016 has come to an end here with guided costs up again for this year. They cut to the bone to survive but can't continue to operate the business on an on-going basis at those levels.

Inmaculada is the biggest and most profitable producer by far. It shines out as a super cash cow with exploration highlighting further potential. 56,000 metre surface drilling programme tells you all you need to know that HOC is going for it.
MIL-17-005: 38.5m @ 4.4g/t Au & 96g/t Ag. tasty.

Arcata another black spot and the last of the 4 mines to be fixed. Low production = higher costs but the veins being produced from are narrow. They need some good exploration results this year in this area.

Silver miners are out of favour, out of fashion. We know why! But better days are here now since mid December and should accelerate. HOC is not just silver but 50% gold so you see changes in the presentation to reflect that fact and highlight that Inmaculada is about 80%? a gold mine.

[acwill] 17/1/2018 08:36

Year on year.....fantastic performance

quarter on quarter.........production down a few percent (may explain muted share price reaction)

Overall very happy and somewhat relieved

[fieldhouse] 17/1/2018 08:27

What's not to like ?

[shakeypremis] 17/1/2018 08:27

Costs going up significantly too. Arcata is not profitable at the current silver price.

[goldenshare888] 17/1/2018 08:24

Solid cash generative business even with suppressed prices of Gold & Silver.

When Gold & Silver start knocking on the door of $1400 & $20, HOC will be quids in and worth a bit more than 250p a share.

Further debt reduction and much lower interest costs will further boost 2018 results.

All to play for here and I hold for 550p.

[shakeypremis] 17/1/2018 08:19

Not quite sure what to make of these results. Were Numis overestimating??? Seems like they were.

[lauders] 17/1/2018 08:18

Not doing much to HOC's share price in the short term though stevea171! One day I hope it changes but HOC have been underperforming for a while relative to other commodities. Now if we were just copper the story could be different. I reduced my holding a touch, still hold a lot for me, before this update as I couldn't trust the market reaction at present.

[stevea171] 17/1/2018 08:13

Ignacio Bustamante, Chief Executive Officer said:

"Hochschild has once again delivered a historic year of production with output growing for the fifth consecutive year, driven by another record performance from our Inmaculada mine. Our costs and capex for 2017 are expected to be in line with expectations reflecting the ongoing focus on cost control and efficiencies. Our financial position is very robust and we look forward to a further improvement in the coming days with the previously announced early repayment of our bonds.

Our brownfield exploration programme has delivered some encouraging results across all our operations throughout the year. We are particularly excited by the geological prospectivity in the area surrounding the Angela vein at Inmaculada. Early results from our first drilling campaign at the deposit in six years confirm the strong geological potential close to the mine's infrastructure. These drill holes also confirm the presence of the Millet vein with some intercepts showing up to 38 metre widths and good grades. We are optimistic that these discoveries may be able to provide attractive resource additions once we have completed further drilling campaigns towards the end of 2018."

[edjge2] 17/1/2018 07:32

Results look good but no mention of cobalt co they grabbed earlier

[lauders] 17/1/2018 07:27

This is better in some ways I think:

Strengthening financial position

§ Total cash of approximately $256 million as at 31 December 2017 ($140 million as at 31 December 2016)

§ Net debt of approximately $97 million as at 31 December 2017 ($183 million as at 31 December 2016)

§ Current Net Debt/ LTM EBITDA of approximately 0.33x as of 31 December 2017

[leedskier] 17/1/2018 07:24

Operational highlights

§ Record full year attributable production in 2017

o 254,932 ounces of gold

o 19.1 million ounces of silver

o 513,598 gold equivalent ounces

o 38.0 million silver equivalent ounces (versus target of 37.0 million silver equivalent guidance)


Strengthening financial position

§ Total cash of approximately $256 million as at 31 December 2017 ($140 million as at 31 December 2016)

§ Net debt of approximately $97 million as at 31 December 2017 ($183 million as at 31 December 2016)

§ Current Net Debt/ LTM EBITDA of approximately 0.33x as of 31 December 2017

[shakeypremis] 16/1/2018 21:52

I guess we'll find out tomorrow won't we!

[stevea171] 16/1/2018 21:27

Dearie me, Numis! Very conservative production number of 8.8 million Ag equiv oz. Also how does 5.4 + 5.1 = 8.8?
Also Pablo should have been in production Q4 after permitting approval in early November.

"Hochschild Mining is due to announce fourth quarter production, which Numis predicts will come out at 72koz of gold and silver production of 5.1Moz, equivalent to 8.8Moz on a silver equivalent basis.

Analysts expect gold equivalent cash costs of $608 per oz with full year revenues of $712m, EBITDA of $322m and earnings per share of 9 cents.

"The main focus for Q1 should be the commissioning of the high-grade Pablo vein system at Pallancata that should increase production and drive down costs"."

[hectorp] 16/1/2018 19:51

Not many stackers will have transformed into coiners! They are diametrically opposites.

[extrader] 16/1/2018 18:49

Hi all,

Maybe some folks are having to liquidate one 'store of value' - PGMs - to meet their margin calls on another (cough) store of value - bitcoin and co.?

Jes' sayin' , like.

ATB

[hectorp] 16/1/2018 17:31

I sense this is only a PM blip down, to be resumed rapidly IMHO. Look forward to the results.

[hectorp] 16/1/2018 17:28

Both PM's making small step intraday higher points.

[stevea171] 16/1/2018 17:25

Shakey. 235 I think not. There just might be a positive surprise for you tomorrow .... !