Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
Https://seekingalpha.com/article/4681468-hochschild-mining-undervalued-mid-tier-goldsilver-producer
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.
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.
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.
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.
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".
Https://www.jornalopcao.com.br/meio-ambiente/terras-raras-multinacional-vai-explorar-area-proxima-a-chapada-dos-veadeiros-546153/
01 November 2023 at 10h27
The area covers about 1,400 hectares, with potential for lateral expansion, in the northern region of Goiás
The multinational Aclara Resources has discovered a new heavy rare earth element (HREE) in Goiás, hosted in ionic clays in the "Carina Module". The area covers about 1,400 hectares, with potential for lateral expansion, in the region of Nova Roma, north of Goiás, near Chapada dos Veadeiros. Rare earths are present in more than two hundred and fifty known mineral species. However, only in some of these species do rare earths occur in sufficient concentration to justify their exploitation.
Aclara Resources, which has the Hochschild Mining group as one of its main shareholders, will invest around R$ 2 billion in the production of minerals on land in the municipality. The company, which has almost 100% of the works completed in the region, intends to start gold exploration in the first half of 2024.
"Aclara is seeking to introduce a new and sustainable way of extracting rare earths in Goiás, with a mission very similar to what was applied in Chile. In the first survey, the results were promising. We have very close water resources, electricity, excellent roads," explained the exploration manager, Jorge Frutuoso.
He further explained that the next goal is to collect a large-volume sample to do a larger-scale process test than is bench-top to verify feasibility and confirm the potential of the project as early as the first half of 2024. In the coming months, an estimate of resources will be made, a preliminary economic assessment will be developed and the last topic is piloting with the ore.
The initial drilling campaign, which took place between February and August this year, consisted of 1,693 meters of drilling, resulting in 238 onshore drillings. The company claims that its extraction process does not involve blasting, crushing or milling. In addition, it does not generate tailings, eliminating the need for a tailings storage facility. It uses 100% recycled water and minimizes water consumption through high levels of recirculation. "The ionic clay raw material is susceptible to leaching with fertilizer and no harmful radionuclides are produced," he stresses.
What are Rare Earths?
The main mineral species containing rare earths are monazite, bastnaesite, xenothyme, and rare earth-bearing clays adsorbed in ionic form. These clays, exploited only in China, and xenothyme are the main sources of heavy rare earths. Monazite and bastnaesite are also important sources of rare earths, especially mild ones.
Large deposits of bastnaesite are found in China and the United States. In Brazil, Australia, India, South Africa, Thailand, and Sri Lanka, rare earth elements occur in monazite and in sands with other heavy minerals. It is also important to highlight the occurrenc
Https://www.sharecast.com/news/broker-recommendations/berenberg-on-hochschild-mining--14470932.html
For mature gold miners a government agreement to expand the mining area is a big deal
https://www.dhakatribune.com/financial-markets/321440/hochschild-mining-lon-hoc-up-16%25-on-inmaculada
The energy and mines ministry (Minem) plans to reduce permitting time from two years to six months. A draft decree to optimize environmental certification for exploration is under evaluation by the respective entities, according to Minem.
The ministry also wants to prioritize construction on the Toromocho expansion, the Inmaculada optimization and Zafranal because the respective environmental impact studies are alrady approved, newspaper Gestión reported.
Before posting ongoing nonsense on this board , read the transcript to better understand as to why the shares are rising. Yesterday was a tree shake to take out the weak holders. Onwards and upwards for the share price.
https://seekingalpha.com/article/4595330-hochschild-mining-plc-hchdf-q4-2022-earnings-call-transcript
Ratings agency Moody’s said in a March report that most miners in Peru had survived relatively unscathed from the protests, though the impact would likely “delay mining company permits for projects already under construction.”
https://www.mining.com/web/peru-copper-mines-aim-for-output-boost-in-2023-after-protest-impact-fades/
UK companies have a total of nine initiatives in Peru with investments of US$54mn. Rio Tinto has two projects involving US$32mn, and Hochschild Mining has five with US$12mn. Meanwhile, Anglo American has the Almira copper project (US$2.2mn) in Tacna, while Anto***asta has the Oasis project (US$8.5mn, copper) in Arequipa region.
Economy and finance minister Alex Contreras recently announced on national radio that efforts will be made to clear the excess pending permits in the mining sector by simplifying and/or accelerating procedures, adding that the high number of licenses in the queue was one of the biggest concerns conveyed to him by investors at PDAC 2023.
The operative word- it allows the discovery of new deposits, as well as the extension of the life of operating mines, all of which generates resources for the benefit of the country,” the ministry said in a media statement.
https://www.mining.com/peru-expects-74-mining-projects-to-become-operative-in-2023/
6 March. Taken from an article in Spanish and translated
https://energiminas.com/inmaculada-y-pallancata-hochschild-mining-reitera-su-interes-por-invertir-mas-de-us1300-millones-en-ayacucho/
Inmaculada and Pallancata: Hochschild Mining reiterates its interest in investing more than US$1.3 billion in Ayacucho
Representatives of Compañía Minera Ares, a subsidiary of Hochschild Mining, met with Minister Oscar Vera to express their interest in extending the useful life of its Inmaculada and Pallancata mining units, which would mean more than US$ 1,300 million in the south of the Ayacucho region.
Vera said that mining investment will generate more jobs, better tax collection and development projects in favor of the region, becoming an important tool for the population to access a better quality of life. The mining executives highlighted Minem's support to implement spaces for dialogue in Parinacochas and Páucar del Sara Sara, expressing their willingness to coordinate efforts with the communities and municipalities in their area of influence to work for social development.
In November 2021, to the Financial Time, Ignacio Bustamante, CEO of Hochschild, confessed that the company plans to extend the useful life of Inmaculada for 20 more years, and that they are now waiting to receive the permits. "We have plans to expand [Immaculate] for the next 20 years," he said. In July of that year, Hochschild Mining informed the competent authorities that it plans to invest US$4.436 billion, between capex and opex, to extend the useful life of its most modern mine, Inmaculada (Ayacucho), until 2041.