Member Info for Sotolo

I am really sorry to post this from today, I guess yesterday’s talks didn’t go well, I think the company owes us an rns: “The company Minera Ares SAC denounced the illegal invasion of its Inmaculada Mining Unit, known as Mina Inmaculada, by residents of the Huancute Annex, in Ayacucho.
Through a statement, the mining company reported that early this Friday some citizens cut the metal mesh that is on the perimeter of the Inmaculada Mine in order to illegally invade private property, which constitutes both the crime of usurpation, and crime of material damage.

No news yet from Hoc on yesterdays talks with the protestors?

I think Centamin has just had a golden cross with the 50 day moving ave going through the 200 day, exciting times if we could just combine rising gold with a recovering company

Why would they sell it to an outsider, and why buy it when they will get most of it anyway. So. O bid coming methinks

They hedged Pallancata output for three years at $27 to $25 approx as Pallancata had such high costs, unfortunately Pallancata costs went above this, tho very astute we had the hedges or Pallancata would have lost us far more. The hedge covers around a third of silver output and ends next year so has been somewhat brilliant in avoiding us making greater losses in these doldrums times

Are you seriously that Hoc sell their silver for a third less because of their religion? Sounds a bit counterintuitive as well as unlikely and unkind. I presume the reason is that the market buys bullion for much the same as spot. If it didn’t it would be easy for us to arbitrage by buying the future and then takin delivery.

On RNS above “ the Company held discussions with community representatives on 1 and 2 November. As this did not result in an agreement being reached, further discussions will be held next week with representatives from the Peruvian government also scheduled to attend.” and on Reuters or a S American newspaper site the date of tomorrow. Looks quite iffy

Big meeting with Inmaculada protestors tomorrow. On another note if silver bullion is 50% more expensive than the spot futures price why are Hoc selling at around the spot price

Early news from San Jose today as McEwn the 49% owner report: “The San José mine, where we have a 49% interest, put in a strong quarter and its exploration is continuing to extend its high-grade veins and discover new veins.”
The figures are interesting with horrendous costs in first 9 months of $1718. $1441 a year ago, so loss making…..however…..this quarter they got agisce back to $1562 so maybe making $100 an ounce on half of 20000oz so $1m but if so better than the losses of the previous two quarters and maybe San Jose can survive depending on the costs of what has been discovered

Look above and click on rns nest to share trades and shr chat. Just as you might have £20000 in the bank but owe £80000 so have net debt of £60000, Hoc reported:
“ § Total cash of approximately $169 million as at 30 September 2022 ($204 million as at 30 June 2022)
§ Net debt of approximately $151 million as at 30 September 2022 ($109 million as at 30 June 2022)
So they are -$151m inc their cash

Bolland, I am hanging on with my finger nails with just that hope, if it works out should be brilliant as Hoc goes like a rocket, just if neither of your hopes work out Hoc is in a worse position than many rivals. That is why it is currently such an interesting share as so very geared to gold and silver price on the one hand, and on the other to good or bad mine/politics news

Yes I am quite clueless but addicted to all the wise people here including those who say they can’t read balance sheets but still like to prognosticate, the tea leaf readers, the mining experts (few here) the chartists and all of you wonderful people; thanks Bushy for putting me straight, hope your insightful predictions have made you millions, while my clueless sticking with Hochschild for family sentimentality, while seeing and writing why and how it should fall and is so precarious, demonstrates my extreme cluelessness. Let’s hope my hope for Hoc one day to have some luck or get it right, as then could soar, despite a management that seems even more clueless than me (except also realising their own cluelessness and selling loads at £2).

Well given you don’t believe any of the truth about Hoc I am not surprised you also question my shareholding, you are another fake news conspiracy theorist I guess? Actually I have 500566 happy to send you proof if you send your email, though you are hardly worth it. Now why can’t you just engage in discussion and respect other opinions that your own, you are sadly a moniker of these dangerous irrational times in which we live.

Yes I have sadly been calling Centamin and Hoc right however more recently I have said Centamin ounces and costs are improving while Hoc’s are not, hence Hoc falling fast still while Cey has flattened. Yes Centamin is essentially a single mine in Egypt that has permission and a long mine life. Centamin is still very cash positive, and the heavy investment time is over while Hoc’s is beginning. Hoc is a multiplicity of mines in tough juristictions, mostly now loss making or requiring heavy investment, plus short mine live and permit problems. They are very different. All this is reflected in Hoc going from near double the Cey price to near half. It remains far more dangerous. I don’t think the share price is very low for the perceived risk, but perceives it pretty well, same with Centamin

Publicante, in answer to your question Centamin unlike Hochschild has a robust balance sheet and plenty of cash.
Centamin unlike Hochschild Has falling costs
Centamin unlike Hochschild Has very long life mine
Centamin unlike Hochschild Will have rising ounces next few years
You did ask, many others without the dangers of making losses while heavily geared, the main mine with potential to be closed imminently, subsidiary mines Ear end of life losing. Only and likely to be closed. Don’t get me wrong I hold plenty of Hoc but it is a pure gamble with as much chance of losing it all as soaring with gold price, new permits and Brazil success (well rather more chance of the former) while Centamin etc are highly likely to ride this gold tumble out, ready to rise again when it is over. Publicante look at the numbers and latest reports

Publican, just because someone can read a balance sheet and assess political risk doesn't mean they are short. New mines of course don't build themselves without funding. However to put it mildly it is unfortunate for a miner to be running out of gold and face such political risk and then have to borrow hugely just as interest rates soar to speculate on a new mine in another country. how do you work out that the assets are more than worth the market cap?? And that liquidity is very strong. Please provide the figures and I shall be most relieved. The ounces profile is not strong and growing but has been shrinking. However you are right on one thing, liquidity iOS the most important thing, shame we ar now losing money and spending loads so needing to borrow in an attempt to save ourselves. You are also right we could be saved if gold and silver price rises, but only if Inmaculada is repermitted, and of course if gold and silver fall or Inmaculada isn't .... hence the star price, shareminator has explained it just as it is, highly speculative gamble on politics, gold prices and new mine success in a world of high interest rates

You are reading it wrong, it is in the recent rns of the last quarter “ § Net debt of approximately $151 million as at 30 September 2022 ($109 million as at 30 June 2022). It was positive a year ago. Massive investment in new production just as rates rise and gold falls kiboshing the economic case. However needs must with other mines running out. So this is bad but all depends on Inmaculada and the new permit, which may be in jeopardy now. Sad.y the company have hit the cycle exactly wrong as a decade ago.

Gosh. Why? Will this affect new permitting?

Poker, I think they’ll have to go a lot higher to conquer inflation, hence golds continuous anticipatory fall. Problem is next lurch down could take Hoc to losses. Just hoping that Inmaculada permits come through, otherwise well f*****

Mr Bond, one can sensibly hold shares in a company one believes has great prospects even if one believes the board isn’t great, Cowichan is entitled to his opinions which I, like Bob, appreciate reading, as from all who post here, even if I often don’t agree with all of them. Now enough.