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So JPMorgan said this about Hochschild and valuation:
"HOC trades at spot 2024/25E EV/EBITDA of 2.1x/1.6x vs
precious metal peers average of 4.9x/4.0x. We are Overweight"
Jilen - you've posted that on loads of BBs here. You're not involved in it financially by any chance are you?
Dare I mention King World News?
India Creating Short Squeeze In The Silver Market
MASSIVE 3 YEAR CONSOLIDATION:
Silver’s Short-Term Breakout Target = $40
https://kingworldnews.com/india-creating-short-squeeze-in-the-silver-market-and-look-at-gold/
66% over the last year. Not bad going, with more to come
Get this - Tesla have funded a Silver mine to secure offtake as they cannot buy the Silver they need on the market.
https://twitter.com/bonker_99/status/1768683236736053649?t=jLmxDaXnn3USSIDNNR7Ptw&s=19
Stanley that was the years from before the election of Pedro Castillo when Edoardo seeing what was coming sold 61.7million shares at £2 and we fell nearly 4 fold through the threatening politics and Inmaculada riot and closure threats until the regime change. Since then the mantra has change to you can always sell for more. So hold on the future is now bright especially since are also investing to replace falling output from old/closed mines. As written I have been rebuilding to the core I hold. Full of hope, lots of potential imho
Ditto
It’s a sit and hold for me - in at 89p from around 4 months ago and will wait for the multiples to come . When this moves it can go quick - gla
Same here, out for now. I'd like to put Sotolo's theory to the test that you can always buy it cheaper :)
In an up channel but the inital move is over so out for now. Will rebuy sub 90 in the near future but may travel to 126p first.
After yesterday's market making, looks like the likes of ajbell etc. went hunting for stops as there has been a lot of buying in the £1:10 area, which hopefully means the shares are rerating and will consolidate in that area. At the previous highs last year, noone was buying at the top.
Good morning all
What is everyone's thoughts on Hoschild? I had an email come through from investors weekly about HC so I done a bit of research and brought 12,000 shares at 94.88 per share, now trading at 111.00i attended a webinar yesterday and looking at there plans for the near future and balance sheet etc it looks very promising, what is other peoples thoughts on this?
Thought about selling but once I looked at the widened spread I could see the price drop was due to market makers trying to take your stock for £1.02 and sell it back to you for £1.05. obviously, if the shares traded higher it would have been another story but, for me, seeing the price hold that level it looked like an easy reason to hold as I'm not a market maker.
Hope you all held your nerve this morning!
An IC tip is not necessarily a good thing :)
From IC
Take another look at Hochschild Mining as it regains its shine
South American gold and silver miner will consider return of dividend at mid-year
March 13, 2024
by Alex Hamer
Cash profit climbs on improved gold prices and weaker Argentinian peso
Push into Brazil continues with new mine purchase option
Even for a company that specialises in digging, Hochschild Mining (HOC) has done well to unearth a better portfolio within just 18 months. The South American company has been weighed down by expensive operations and a permitting hold-up at its key mine, Inmaculada.
But the completion of a new mine in Brazil and a path to improving the Peruvian operations does put it on the upswing.
Adjusted Ebitda for 2023 was $274mn (£214mn), up 10 per cent on the year before. A $34mn drop in exploration spending and $21mn boost through an Argentinian preferential exchange rate programme also helped this figure, although it is still $100mn down on 2021. Analysts see improvement again this year thanks to the higher gold price and cheaper production at the new Mara Rosa mine. Production in 2023 was 300,749 gold equivalent ounces (oz), which includes silver, and the guidance for 2024 is 343,000-360,000 gold equivalent oz.
The realities of looking for profitable new operations was obvious in the 2023 income statement: reported profits fell on $80mn of impairments and another $17mn came from a write-down on the mining unit of San Jose in Argentina.
Debt rose in the year due to the Mara Rosa construction cost. Chief executive Eduardo Landin said the company would consider bringing back a dividend once Mara Rosa hits commercial production, expected mid-year.
Landin, who said Peru was more stable even after a change of prime minister last week, also flagged a greater commitment to Brazil through a new option over another brownfield project, Monte do Carmo. He said this could be another Mara Rosa, if further exploration confirms the seller’s pitch in the next 12 months.
Hochschild still has a way to go to balance out its new growth spending with managing some still ageing and expensive mines, like San Jose, but it is cheap enough and has good enough prospects to warrant getting back in. Buy.
Note last year interest paid on loans was $28.9 million (2022: $15.3 million) due to rising interest rates however the overall debt on the balance sheet has increased too. Factoring in the continued rate rise through the period, the reduction in liquid cash and reliance on fully drawn-down loans I'd imagine interest this year will be considerably higher once more.
Regardless of whether margins improve this year the company is highly geared in a high rate environment with extensive capital costs outstanding. Not one I'd buy over other more attractive producers at this level
From IC
Hochschild still has a way to go to balance out its new growth spending with managing some still ageing and expensive mines, like San Jose, but it is cheap enough and has good enough prospects to warrant getting back in. Buy.
Range 85p to 120p - nothing has changed - trim add - way to go. Part added 101p purchases after 110/112p sales nice turn .
Will add as usual at 80p 90p if if comes again but who knows.
Let's be honest, it was almost certain that divis won't be reinstated just yet. In 2024 sorting out the debt is high up on the list.
Yes. Pretty strange. Looked a solid set of results, in line with communication and expectations. Maybe just some unfulfilled dividend expectations?
Very poor, hopefully it will hold 100p
-7% is not the reaction I was expecting
Maybe we can but hope but a consultancy group, in on the act, that´s never going to ensure a good night sleep for me.
55p seems so last year. To have abd to hold. Add & trim to 🏆 win.