Member Info for Sotolo

I meant it was unfortunate for us as meant the share price halved, I was not suggesting remotely Horgan’s fault, grateful for his honesty and clear up but some don’t seem to have taken his necessary words entirely on board.

Unfortunately management made it perfectly clear that we would only make very small profit this year and next, (assuming gold doesn’t collapse further) and the figures being right on course to confirm this has depressed the share price further which is hardly a surprise. The second half ( full year ) in jan will be even worse, then we’ll be the bottom and we should pull out and ale obey again in 2023 if all goes to plan, unless gold collapses. As said the management couldn’t have been clearer or more honest

Tornado, I think this year’s over £200m special capex to rectify the situation is not included in the aisc, so you can take that off the profit and same again next year, correct me if I am wrong, hence not much profit till 2023 and our sad share price especially since that £200m now weighted to second half.

Prof, in the March results they promised a minimum divi this year down 40% which I think they are likely to stick to: “The Board has proposed a final dividend for 2020 of 3 US cents per share, equating to US$34.7…The Board reiterates its intention to recommend a minimum 2021 dividend of US$105 million (interim and final)”, ie 9 cents to come. We have had a very variable divide 2015 3c, 2016 15.5c, 2017 12.5c, 2018 5.5c, 2019 4c, 2020 15c. So as said this year we already know will be 9c (generous as partly paid out of cash reserves as bot fully covered so as said down only 40%), more than many years. Next year should be down further, unless paid again mainly from reserves before hopefully a recovery in 2023. Like being a dissenter tho not sure I pray enough

Prof wasn't Adamsmith's post great. I nearly sold some more Cey on the results and bought more THS, (now have same of each), wish I had as THS is way undervalued on a PE of around 3, while Cey will I guess be around 30 this year, I might tomorrow even though THS up and Cey down, as from what Horgan said about delayed Capex next half will be worse and it is painful hanging on till (if) it gets better, and as AdamSmith points out our recovery depends on getting costs back down and gold recovering. And how about you...

Well Masks NewNorm, it makes bloody good tea leaves whatever it is, we’ll predicted!

Paul you are absolutely right, but I didn’t foresee the wall collapse, and the very dramatic result with oz down nearly 25%, aisc up 30%, and cash flow falling nearly 90%! Also I said Cey £3 if gold goes above $2200 which I thought it might, given falling real interest rates and rising inflation. However this was tempered by my usual scepticism, if less, and a year ago this week I posted: “Prof Tiger etc, yes great times but amidst such wonder my thoughts are already turning to when do we take some money off the table, or not, as timing is so hard. I see a few hundred dollar correction in gold that has risen so massively, I always thought it would be around 1900, which we have amazingly reached. Now I think it is more likely around 2000, which may be a struggle to break, or most likely a little above 2100, by which time Cey should I reckon be around 300. So I think I am going to be brave, nay foolhardy and wait till Cey hits 295(if ever) when I will take 20% off. I am sure others will be trading much sooner, even now, what are your thoughts and please all do tell when you do, and reasons. Or is this a false dawn when we look forward to huge profits and unpredictable gold will hit us again”.
Incidentally I am down to 461k Cey shares, wonderful Tiger having recommended Tharisa I have dripped the remainder there (and to Hoc that has been nearly as bad as Cey with political surprise)

Glyn you are a real gent like so many on this board, and I like you wouldn’t be here if I didn’t believe better times are coming, I think the good news is if our shares don’t take a tumble on these figures or more important the August interims, nor the second half which they say will be worse with deferred capex, but that the share price looks forward to 2023 as we do.. and of course gold moves out of these doldrums up not down.

I don’t have any agenda other than wishing, as still a fairly large shareholder, that the 2023 better new begins to affect us positively, and reporting what the managements figures say.. So very pleased with your positive view, tho wish you would add your interpretation of the specific figures, my view was not negative, in fact hoping the shares would pick up as the bad news expected, but also the new concessions, and 2023 nearing, sadly however they all seem baked in the price so maybe not yet.

Which teas do you use, glad the leaves are predicting a rise today, I am drinking coffee (Colombian) so not a clue to short term movements.

Yes Razor, the news on concessions (wonder where, and if contiguous with Sukari) and slightly better aisc than expected and ounces, could as said help us to look forward to 2023 more happily despite the very low profit this year.

Well at least we haven’t made a loss, gaining a miserly $7m cash in the quarter, but partly because some capex shifted to Q2 “ 2021 capex guidance maintained: US$225 million, with a 65% spend in H2 (previously 55%) due to timing adjustments to the payment schedule”. But at least performing slightly better our lousy targets for this year so hopefully market will cheer up and look forward to 2023. Looking forward to others’ views

Yes ounces are dramatically up as most of our mines were closed down a year ago so had fallen even more then than have risen back now. It is like our gdp growth, which is record breaking year on year, but still takes us back below 2019. I think the share should begin to rise as it gets used to Castillo and if he is not as bad for mining as expected, but the low ounces mined and high costs will keep a lid on it till these improve and if silver and gold fall could knock us back. I am very much looking forward to the interims to see if/when they see a full ounce and cost recovery

Gold is not up but down, from around £1500 a year ago to around £1300 now, with costs up from around £900 to £1000 that means profit per ounce down from £600 to £300 on the fewer ounces mined - all rough figures, but it is pounds that count for our share price. However I think today is a production report not the more useful interim results which should come in a couple of weeks, and hopefully ounces and costs won’t be quite as bad as expected today, and the forecast will look better next month, and above all shares begin to look forward to 2023. For me the big question remains whether the market has priced in and is ready for the very bad results and whether marginally better than expected, and market looking forward will actually give us a lift

Sadly no tricks. I didn’t say results were worse than expected, they are exactly as predicted. Sadly these are over 10% down on 2019 oz, and aisc over 10% up. 2020 was an aberration as mines closed a lot. So I am hoping ounces will recover back to 2019 next year and so costs come back again but not looking likelyyet. Sadly exactly as predicted but no tricks from me or management just honesty from them and me relating the figures they put out, that I believe and led to Ernesto selling and me predicting price fall tho didn’t realise Castillo would make it this bad. Good luck all and let’s just hope gold and silver recover, Hocs hedge is looking rather clever

Will be lousy ounces and worse aisc tomorrow but hopefully slightly less awful than expected and the more than halved share price will be considered enough for now, even if we can deduce from tomorrow’s figures profits will be down more than half Will be interesting and hopefully a lift but markets can be cruel on lost news even if heralded

Poker, I agree regimes come and go and Hoc has weathered many, it is the lower ounces and risen aisc that equate to around 15% off gold and silver prices for us, so we are making same profits as with $1570 gold a couple of years ago. We need this to change even more than the regime to be gentle imho

2019, last proper year Q2 gold 70659 oz, silver 4.3m oz
2021 gold 62000oz silver 3.7m
So down a bit over 10% as expected
Aisc of course worse also as expected
So overall profit probably half 2019 hence share price
Cash rose by about $29m. If multiplied over year would be $120m so share price about right, given Peru tax worried. We will need to wait for half year results in Aug for more news. Hopefully our price will stabilise now we know production no worse than expected, and Castillo now president with our hopefully final lurch down in response
The promised Bioalantides news has been delayed yet again now till sept, Hoc are not very good at managing communication with shareholders or expectation which doesn’t help the price imho

I’ll email them.Usually pretty quick at replying

Only this on their site Q2 2021 Hochschild Mining Production Results
Date and Time Jul 21, 2021
1:30 PM BST
Description
Participant dial-in:
United Kingdom Toll: +44 (0)330 027 1846

United States/Canada Participant Tollfree/Freephone: 800-367-2403

PIN: 1291361