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Can anyone shed any light on why there was so much opposition on Eduardo Hochschild being re-elected as chair (around 25% against)? Could the company consulting the largest shareholders on this matter have anything to do with today’s share price drop?
Briefly touched $2,209/oz at 2317hrs in the Far East on opening
I'm very worried about the wedge that formed since 1 November (see 1h and 4h time frames). We've had a break out (to the downside) and re-test of 109~110 level this evening. Textbook stuff so far... However, gold and silver are flying at the minute, buyers are strong and may break the bearish pattern on Monday.
Https://www.investorschronicle.co.uk/news/2023/11/29/why-the-economics-of-mining-no-longer-makes-sense/
Further down the development track is Hochschild Mining (HOC) with its new Mara Rosa mine. It was on a similar timeline to Horizonte but has hit its deadlines so far, with first gold expected early next year and commercial output a few months later. The company has built various mines in the past and Mara Rosa will be one of four in production next year.
Mara Rosa’s economics do suggest an almost anti-inflation story; the company’s group-level average all-in sustaining cost (AISC) has risen from $977 an ounce (oz) in 2017 to almost $1,500 last year. But Mara Rosa is expected to have an AISC over its 10-year life of just $1,000 an oz. “The project is running to schedule and budget, despite the pressures on capital costs that have caused issues in other industry projects presently in development,” said analysts at Peel Hunt. Miners will usually extend mine lives through exploration, with the initial life merely what can be included from the current reserves.
At its largest existing mine, Inmaculada, Hochschild has managed a productivity gain that outweighs operating cost hikes. It has shifted to a more mechanised style of mining underground, which has cut costs by 30 per cent, according to company chief executive Eduardo Landin. “Even though we are increasing the dilution [of gold and silver within the ore] the productivity is much higher, the number of [workers] is much lower,” he added.
It is largely Mara Rosa boosting the company’s prospects, alongside production being suspended at high-cost mine Pallancata.
Peel Hunt updated its Hochschild forecasts this week, leaving adjusted Ebitda at $289mn for next year and hiking it 84 per cent to $270mn for 2025, thereby reversing a declining earnings outlook. Analysts at Panmure Gordon have cut the forecast for AISC to $1,206 an oz from $1,468 an oz for 2025.
Ewoyaa and Mara Rosa are outliers in cost terms.
So, yesterday's drop was to accommodate PH's mates then? Seen it all before. Hope no one was spooked into selling...
Peel Hunt raises Hochschild Mining price target to 160 (100) pence - 'buy'
Mike looking again the future hedges are gold, a bit under a quarter of it if production rises as expected, but at quite good prices, and the silver hedges were great they seem prescient, presumably to make sure Maria Rosa can pay back its debt. However silver output is falling as Pallancata closes
HOC Hedges
4m oz 2021 $27.10
4m oz 2022 26.86
3m oz 2023 25
50k oz gold
2025 $2117
26 $2167
27 $2206
At 12 different Gold mining shares, they are all up between 1.97 and 4.3% today......looking good.
The physical stuff is also on a roll.
The Gold ETF's are up, but in comparison are sluggish.
In February 2021, the Company hedged 4 million ounces of 2021 silver production at $27.10 per ounce and 4 million ounces of 2022 silver production at $26.86 per ounce and then on 10 November 2021, the Company hedged 3.3 million ounces of 2023 silver production at $25.00 per ounce.
Hi Sotolo, looking good also from the TA view point. We've found support at ~108 and the RSI had a bit of time to "cool down", so the indicator is not around maxima on 1h or 4h charts. This supports a higher move up to ~117-118 level in the near term.
Its likely promotion to the FTSE 250 should attract the interest of portfolio managers. As I said before, this rise has legs. Hold.
Actually Noel I think Hochschild has come alive, risen from the dead. Nearly doubled and up 10% in a week. It anticipates price moves. So should begin to anticipate the next one. Also remember a chunk of their solve is hedged and anyway less silver than gold so it is the gold price expectation that matters most for future Profits Enjoyin the ride
Silver is up to $24.80 and HOC is up to 110p - and there seems to be no interest.
Hochschild Mining PLC (HOC.LN) (OTCMKTS: $HCHDF) ("Hochschild" or "the Company") is pleased to announce it will host a virtual retail investor presentation relating to its Capital Markets event being held that day via Investor Meet Company on 22 November 2023 at 3:00pm
Hochschild Mining PLC looks to have struck gold with an expected promotion to the FTSE 250 after a sparkling 2023 which has seen shares rise 45%. The gold and silver miner with operations in Peru, Argentina and Brazil now has a market value of GBP557.2 million
Last updated: 16:30 20 Nov 2023, First published: 16:26 20 Nov 2023
Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF), up 5% on Monday, is poised for a significant rebound, according to RBC Capital's latest analysis.
The company is expected to unveil a three-year production and cost guidance at its Capital Markets Day on 22 November, which is anticipated to highlight improvements in production and cost efficiency.
This optimism is largely driven by the upcoming commissioning of the Mara Rosa project and the mining of higher-grade areas at Inmaculada.
RBC Capital maintained an 'outperform' rating for Hochschild, with a price target of 130p for the shares, suggesting confidence in the company's future performance.
As mentioned above, the key factors influencing this outlook include the successful commissioning of Mara Rosa in the second quarter of 2024 and the expected increase in gold equivalent production by approximately 30% from 300,000 ounces in 2023 to 382,000 ounces by 2026.
This increase in production is set to reduce the all-in-sustaining cost (AISC) significantly, from around $1,600 per ounce in 2023 to $1,340 per ounce by 2026.
The report also highlights potential challenges and areas of focus, such as the impact of permitting delays at Inmaculada, exploration success at San Jose, and the ramp-up of Mara Rosa.
Additionally, updates on capital expenditure for Pallancata's Royropata deposit and potential changes in permitting regulations are expected.
At 2.25 pm, the stock was changing hands for 108p, up 5.1p on the day.
Fairly well known site, comparing HOC, CEY, and SHG.
Of the 38 comparisons CEY wins 20, HOC 9, SHG 9.
Of course there are many other live issues that may not be taken in to account, just another indicator.
@EdGasket, the reason is ridiculously low valuations seen over the past 2 years. Why would anyone measure a gold miner with an ongoing large development against PE?
New President/PM of Argentina helps too, as he has said he wants to ditch the Peso for the USD as a form of currency. This will help Hoch on costs as the cost vs sales will be on an equal footing , rather than have the domestic currency eating away on costs through inflation. Could be very good news for the miner!
Sp has taken off since new CEO put in charge.
Better future prospects with vastly increased reserves see posts below.
HOC up 4.2% today with a decline in the silver price? Also has a very high PE and low yield compared to other miners. What is the reason for recent strength?
RSI(relative strength index), negative divergence in the recent top, now reflected, in the rejection of the initial rally today . The close today , is at the low price, indicating likely retracement. Both Bollinger bands are heading up, so this move down, is probably retracement. The RSI, can be the guide, so that if the RSI, crosses below 50, and subsequently crosses back above 50, then buy. Alternatively , if the RSI, approaches 50, and turns up, then buy.
This article from a hedge fund based in Luxumberg is written in Italian
http://mondoalternative.com/ma_notizia.asp
Five stocks to monitor in Europe, according to Alessandro Guzzini of @finlabo @AcomeA_SGR, long/short equity manager: Hochschild Mining, Icade, Repsol, Raiffeisen Bank, Proximus
"Among the other stocks that we find interesting, there is Hochschild Mining, a mining company listed on the London Stock Exchange, which has obtained a 20-year renewal of its concession in Peru and is close to starting a new mine in Brazil. It operates in a sector, the gold sector, which should benefit both from a slowdown in the global economy, or from a recession, and from more favorable monetary conditions from Central Banks".