Hochschild Share Chat (HOC)

tho of course profits down a bit with first half gold and silver prices

First half looks good, no nasty surprises, costs well controlled.
Interesting that Hoc with its expensive exploration and paying down of debt pays 2 cent divi on a 220 share price while cey pays 4 on a 140 share price so nearly 4 times as much .

https://seekingalpha.com/article/4285070-sentiment-speaks-may-getting-close-nap-time-gold-silver

Hoc is the 8th largest silver miner
Any view on why profits were som paltry last year, and how much they might have recovered in first Half?

Converted back into Gbp we are now up 19% + for the year.
https://goldprice.org/

As you have said chaps we are in a very good position when the Silver price has for once been rising far higher in relative terms with Gold recently. As Hoc are the Worlds largest Silver miner we stand to start benefiting and as for each unit of Silver and Gold for that matter increases the unit costs per unit in percentage terms will reduce. Costs will naturally reduce.
I see on 21-3-2011 we were at £5.81 (per share) but Silver was in fact 48.58 an oz. (So we have a lot of headroom to go yet).

It is profit that matters and sadly the price of gold is not the only factor. I was looking at the Hoc 2006 ipo prospectus yesterday, and it is amazing how much costs have soared - over 5 fold, and mines are a wasting asset, usually produce less over the years and become (much) more expensive to run as metal is harder to get, just look at Hoc’s Arcata. Some of Hoc’s silver has break even at $15, some like Arcata even higher, hence mothballed. So $800 on price of gold only takes us back to 2006 costs. Look at Hoc’s resulting tiny profit and very high PE last year, which is why the share price is only a little under for these pm prices and cannot be compared to a couple or a few ago when making big profit on lower gold price. Which is why the Hoc report makes so much emphasis on getting aisc below $1000 gold equivalent, and why I think Hoc such an exciting investment as so very geared to a rising price.

Something doesn’t seem right with these precious metal miners, compared to where gold is, to my mind they’ve hardly moved.

The big fund managers came in then and have since disappeared, so why not come back in and the share price will really benefit in growth.
I feel we can rise quite significantly from here in today's market.
Perhaps even the M&G will return here, who did very well for a long period of time.

To add to the mix remember Hochschild has mothballed Arcata till PM prices rise, if they rise more, and these higher prices hold, this mine could contribute to much better profits and a higher share price

* Gold hits record high in various currencies

* Silver jumps to more than one-year high

* Palladium dips more than 1% (Adds comments, details, updates prices)

By Eileen Soreng

Aug 7 (Reuters) - Gold soared more than 2% on Wednesday to breach the $1,500 ceiling for the first time in over six years as investors rushed to safe havens, spooked by a host of uncertainties including U.S.-China trade and a slowing global economy.

Other precious metals, except palladium, latched on to gold's rally, with silver breaking above the $17 an ounce mark for the first time in more than a year.

"There are just numerous fundamental reasons behind gold's strength and those are adding to today's extension to the upside over $1,500. Clearly, safe haven products have been the stars of the show," said David Meger, director of metals trading at High Ridge Futures.

Spot gold gained 1.6% at $1,497.69 per ounce at 10:19 a.m. EDT (1419) GMT, having touched $1,509.80, its highest since April 2013.

U.S. gold futures climbed 1.7% to $1,509.60.

Silver up 1.5%

GBP13.46 and up now 13.33% for the year and rising. We should see our share bounce back tomorrow.

.... if the FRES debacle is affecting this?

It's been a good run and further to go, but taken some profit. Atb

https://seekingalpha.com/article/4275879-buy-slv-now-everyone-else

https://www.kitco.com/news/video/show/Kitco-NEWS/2483/2019-07-18/Silver-is-Headed-for-the-Moon-Watch-Out-Says-Bubba#_48_INSTANCE_puYLh9Vd66QY_=https%3A%2F%2Fwww.kitco.com%2Fnews%2Fvideo%2Flatest%3Fshow%3DKitco-NEWS

silver is flying, let's hope it moves above 16.50 and holds and then moves back to 17

yes could be a good day here

Nice Q2 results !!

https://seekingalpha.com/article/4275347-sentiment-speaks-silver-seems-shock-market

Woke up this morning and must admit, difficult to not feel seriously happy about having a stake in HOC.

Historically, technical ceiling for POG was 1350 before FED slaps it down. Right now, its over 1400 for first time since 2013, with gold outperforming stocks by 10% over last half year with stocks close to all time highs.
Gold is a hedge against inflation, weakening dollar and recession.
Smart money positioning for :
- weakening USD with rate cutting Fed. US manufacturing on cusp of contraction in June. 100% chance of rate cut in July by up to 50 basis points. No increase in rates in sight. Dollar to slide.
- disappointing G20 meeting with no trade deal between US and China. Golden Trump wants lower US rates so in his interest not to secure deal with China which would boost stocks and change outlook of Fed.
- US election cycle volatility.
- potential for Iran situation to deteriorate. Heat has been turned down onthis one as of last night with US retaliatory action for Iran shooting down drone being pulled at last minute.
- equity bulls predicting 1500-1600-1750 in near term !!!

Question is, how much higher can HOC sp go ? IMO looks like return to highs is imminent.

let us hope it stays here or moves higher... be nice to see silver follow.

Done :)

Looks a little overbought from RSI7 but this is panic buying in response to the golden Trump. One tweet and bang goes price of gold. Personally, bearing in mind state of middle east, sp soon likely to start with 2 and stay there for next year.