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Think price also hot as rival Peruvian silver mine made to close and quarantine workers for two weeks, another reason mines are are different to gold. They’ll lose 4% production and it may go on

You are right it is now a goldmine, but still nearly a third silver and entering into loss on every ounce of silver mined, lucky production is down, and the profits on gold are shrinking fast. We have to hope gold doesn’t fall towards our high break even or the whole company will be losing money and needs to survive till gold rises

The funny thing is every other generation has lived through such upheaval, our parents when all food heavily rationed and many shot, our grandparents with trenches followed by even worse Spanish flu, and so far we has been so blessed not to.

Sadly even zero rates can’t stop the collapse in industrial demand for silver, and as said before
a. Most demand for silver is industrial
b. Hochschild however is now a gold miner with some silver

The silver mining will soon lose money, but we still have a $300 cushion in gold, for now...

Sadly even zero interest rates can’t stop gold falling as investors and central banks raise cash. However on a longer term note I am reading a book on the 1918 Spanish (actually Chinese avian) flu. It killed the young and healthiest rather than us old costly pensioners, as it was your own immune system killed you. A third of the world is suppose to have died. So it was far worse. Despite this, checking it out it seems that the Dow index fell 30% and then after the 3 year epidemic was over rose 5 fold, through the roaring 20’s. So this REVENGE OF THE PANGOLINS as I call it, the planet fights back, may be fatal or debilitating for us or friends but will probably leave a stronger world. In between it will be horrid. I remain a long term holder (hopefully)

No RNS again

I think there’s just one UK ventilator manufacturer left, making the appropriately named Nippy in Stratford Upon Avon...

Also Spanish flu killed the young and potentially working, this seems to affect the over 60’s, most of us, rather more so ultimately it may affect our bulletin board (I do hope not) rather than the wider economy. In the meantime let’s hope we don’t get another tumble in gold and Cey,

Salutory to see that during the Spanish flu, at the end to the Great War, far more deadly than now, which is said to have killed a1/3rd of the world’s population, amidst revolutions and for miners: “the bodies of dead and dying South African mine workers thrown from trains and left along the track”*, and was called the greatest medical holocaust in history, the Dow dropped 30% and then rose 5 fold.
* pandemic 1918 the story of the deadliest influenza in history
It was published a few year ago and has the great line: “today it is difficult to envisage a scenario in which something as common as influenza could cause widespread illness and death”
It gives a perspective on now.

What you mean hoc won’t be able to transport and sell its silver?

Prof $1400 is not very far off, and may be under cautious not overly, but the cut in oil
price could knock $100 off our aisc. so at $1400 (as at $1500 without the oil cut) we would be making maybe $125,000 after profit share which at a PE of 12 would mean a fair price would be around 90, but it might be 80 to take account of the market or overshoot more. However asPierre points out with the last crash gold crashed and then came back with a vengeance. I continue to hold.

I reckon the 20% jewellery will also be very hit, as you say just 20% coin and bar which leaves 60% industrial! Even if industrial demand fell 10% it would badly affect the silver demand/supply balance, and it will likely to be down more. Palladium is being thwacked similarly and with good reason.
HOWEVER luckily, with the current silver fall, we are a gold miner, with 1/3rd silver. As silver price falls more than gold this proportion falls, so now watch the gold price,;at the current gold price we should still be making $100k profit less tax, and hopefully our absurdly high aisc will fall with the oil price.
Our real problem comes when profitability falls towards zero, as having cut exploration costs last time that happened, we are now so dependent on spending a lot to find new metal fast.

Unfortunately silver is 90% industrial, and industrial use is likely to tumble, the coins will only make up a fraction of that. AMAZING GOLD SILVER RATIO TODAY HIT AN ALL TIME HIGH finally surpassing the high of 27th Feb 91 of 100.2. NOW 104!!!
Luckily more than half our production is now gold, at these prices quite a bit more than half, as our silver looks like it will be actually losing money for every ounce mined so the more that is minded the more we will lose. Lucky we closed Arcata.

yes the share price, the canary in the mine, has been predicting that gold will tumble, so far it has fallen 7% in sterling form the top which should mean a 20% fall in cry plus another 10% for the wonky market so our fall of a third about right tho sadly predicting gold will fall further as is silver

The overall market PE has fallen from around 17.5 to 13.5, on expectations that profits will tank. At current gold prices I reckon Centamin is between 12 and 13, so if gold price holds Centamin is looking good value now.

Yes a fall in gold matters three times more than a fall in ounces mined. A 33% drop in gold price would equal no profit, or same as no ounces mined, particularly as aisc would also soar.. A 33% rise in gold would equal roughly double the ounces mined or profit, at same cost tho costs would fall a little.. As the gold price rises however this multiplier of 3 is falling to 2.5 and of course when gold is above $2000 it will fall further and above $5000 be relatively insignificant. And yes I would like them to stop investing (?) money on the useless mines in West Africa tho happily they don’t spend much on them, and continue churning out profit and huge dividends, and hope a higher gold price will increase both.

A 10% rise in price of gold = 30% rise in ounces mined, so I own this for rising gold and only hope for consistent ounces year on year.

Better half a brilliant mine, in my view, churning out the stuff for the next 20 years or more, and returning all the profit to me that I can choose how to reinvest, than the many rivals with their gold running out, pouring their profit into new holes in the ground that mostly come to nothing. I for one hope that Cey keep giving me the profit and don’t put it into useless self aggrandising holes in the ground, like their empire building rivals who have destroyed so much shareholder value in the last 10 years, and just keep extending Sukari or expand tentatively nearby in Egypt

Mr Tibbles, you are a wonderful and discerning man

Why are figures not out yet? I seem to remember they said they were delayed because of time spent on Endeavour, does anyone have an actual date for them yet? Should be imminent, and maybe some extra worried?