Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Be carefull IMO WILL GO TO PERU AS CARTELL
Trouble in Ecuador threatening to spill over into Peru? Silver struggling to hold $23.
Any views? seems overdone from 108p
Fingers crossed for a 0.25 cut in March. Airlines have started to see a waining of momentum, auto inventories are ticking up, durable goods spending looks good but food spending is below trend but positive. Not sure about other sectors, maybe I should make a chart deck....
This pullback seems a chance to add to positions. Expecting a rerate to the 130/150p again as lower interest rates drive gold toward $3000
In fairness, the risks are well known, broadly discussed and more than priced in. I think the opportunity is for those who think the risks will not be realised or will happen and be overcome.
MTL, SRB, SHG, RSG and CEY are operating in friendlier jurisdictions than Peru and better positioned to reduce excess debt (if they are holding any!). The risks associated with Hochschild have played out again and again over the past decade and look to be as prevalent as ever.
2. Hochschild Mining
The Mail on Sunday
This Latin America-focused precious-metals miner operates in Peru, Argentina and Brazil. The shares have fallen by 33% in five years amid “political turbulence”. A new CEO is shaking things up, planning to raise gold and silver production by 25% over the next three years, while cutting costs. A long-delayed permit to expand the flagship Inmaculada mine in Peru finally came through this summer, while gold has rallied sharply and should remain buoyant. 100p
Https://www.cityam.com/private-equity-firms-line-up-london-lawyers-ahead-of-deals-frenzy/
I just bought in here because of future prospects. I have a much bigger stake in MTL, another gold miner.
You are right folks this is indeed back in the FTSE 250 and at this rate we will be heading to the 100. A top share this one, and also I like / hold Centamin (who like Hoch have found new reserves with more extensive new drilling in Egypt and Africa) and lets not forget Fres, once the Peso rates start reducing but we can expect all of the FTSE miners to do well once the rates are reduced. GLA.
….and Hoc back in FTSE 250 today
A good written article
Just read that but you beat me to the post - wonderful opportunity.
Dividends are top of the agenda - wonderful.
HOLD4GOLD
Https://www.thisismoney.co.uk/money/investing/article-12871339/MIDAS-SHARE-TIPS-sitting-South-American-gold-mine.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.143054069.1718535938.1702764297-829466088.1679172563&_gl=1*1r3e6ok*_ga*ODI5NDY2MDg4LjE2NzkxNzI1NjM.*_ga_XE0XLFFF16*MTcwMjc2NDI5MS41Ni4xLjE3MDI3NjQyOTcuMC4wLjA.
145p - after years in the wilderness this seems a sensible level at last. Onwards and upwards.
(Sharecast News) - Analysts at Canaccord Genuity initiated coverage on silver and gold miner Hochschild Mining at 'buy' with a 145.0p target price on Thursday, stating its Mara Rosa project was a "potential catalyst for turnaround".
Hochschild Mining operates three gold mines located in Peru and Argentina and is currently in the process of constructing its fourth mine located in Brazil, which Canaccord Genuity believes could be at "a profitability inflection point" for the first time in three years.
Canaccord thinks 2023 will mark an adjusted underlying earnings low of roughly $200.0m, driven by weak production at its Inmaculada and Pallancata mines but also higher costs across all operations. However, the analysts also noted we were "almost at the point" where 2023 was in the rearview mirror.
"Production guidance for 2024 given at the recent capital markets day was much stronger than we anticipated at Mara Rosa - we think reflecting management confidence in the ramp-up ahead. We forecast 70k oz of production in 2024, below guidance of 83-93k oz. Overall, this leaves our 2024 attributable production forecast at 331k oz vs guidance at 343-360k oz," said Canaccord.
"We forecast operating costs to remain high in 2024, as well as capex. For this reason, we forecast peak net debt in mid-2024, followed by a significant deleveraging to occur from 2H24 all the way into 2026. We also use a conservative gold price forecast of sub-US$2000/oz until 3Q25, which we think provides some potential upside to our forecasts should gold prices hold."
The Canadian bank also reckons that the first gold pour and commercial production at Mara Rosa should provide two strong near-term potential catalysts for Hochschild in the first and second quarters of 2024, respectively.
Reporting by Iain Gilbert at Sharecast.com
Aclara's RE project is in Goias State in central Brazil which is the same State as HOC's Mara Rosa mine. So there is a mining friendly jurisdiction there which is much better than in Chile (environmental constraints) and some synergy with the two projects. It may be quicker to bring a RE mine into production in Goias than in Chile.
The capital, Brasilia is the main city of Goias.
Cont. The near-surface location of the deposit results in a very low strip ratio (less than 0.4) providing a positive backdrop for a low-cost mining operation
Aclara CEO, Ramon Barua, commented:
“The combination of its large size and attractive grades makes the Carina Module an outstanding deposit of ionic clays and significantly increases Aclara’s total resource base. The fact that we can apply our patented metallurgical recovery process, which combines competitive costs with superior environmental qualities, provides a promising backdrop for the upcoming Preliminary Economic Assessment. We are excited by the possibility of becoming a significantly larger supplier of magnetic rare earths, especially dysprosium, given how critical these elements are in our planet’s fight against climate change.”
HOC holds a 20% stake in Aclara which is now derisked with the confirmation of a significant MRE at their Brazilian RE deposit. Aclara is now a multi jurisdiction (Chile and Brazil) explorer/developer of RE minerals.
Aclara announces discovery of 168 Mt ionic clay mineral resource at its Carina Module in Goias, Brazil.
TORONTO, ON, December 12, 2023 – Aclara Resources Inc. is pleased to announce the maiden mineral resource estimate (“MRE”) for its regolith-hosted ion adsorption clay project located in the State of Goias, Brazil, known as the Carina Module.
The 168Mt of inferred mineral resources at the Carina Module complements the 27.5 Mt of measured and indicated mineral resources, and 1.7 Mt of inferred mineral resources at Aclara’s Penco Module in Chile.
Recovery of rare earths from the Project is fully compatible with the technology patented and successfully demonstrated on a pilot scale by Aclara in Chile, designed to minimize both cost and environmental footprint.
The near-surface location of the deposit results in a very low strip ratio (
Https://www.sprottmoney.com/blog/gold-price-volatility-ahead
I bought back in at 3pm. Sorry everybody. That's on me.
Thanks for your response
The price of gold and silver dropped shortly after 4pm on Friday to the same price as October 31st and Hoc too revisited the share price of the same date, so it could be tracking precious metal prices. However I would’ve thought the increased profit Hoc will have made over the last month of raised silver and gold prices should’ve countered a complete reversal to the former price.
Why did the SP drop so much at 4pm Friday?
Any ideas pls?