Hochschild Mining PLC (LSE:HOC)

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Hochschild Mining PLC (LSE:HOC)

Postby Pixel8r » Wed Jan 06, 2010 1:26 pm

A major miner that I have been quiet into for the last few years. Being UK listed it is an easier one to trade within my ISA.

http://www.hochschildmining.com/content/index.php

Questor in the telegraph recommended them again last week;

http://www.telegraph.co.uk/finance/markets/6843750/Ryanair-set-for-take-off.html

Hochschild
326p
Questor says BUY

LAST week, Peru-based silver miner Hochschild increased its strategic stake in Mexican miner Gold Resource Corporation to 27pc.

The company bought 1.95m shares, using the cash it recently raised in a placing. All of this is in line with the group's stated strategy.

Of the total $16m (£9.9m) funding Hochschild has injected in Gold Resource Corporation, $8m will be used at its El Aguila project in Oaxaca, Mexico, for working capital during commissioning, training, start-up and continued construction of a tailings facility.

The remaining $8m will be used exclusively for the acceleration of its Arista underground mine development.

Hochschild is increasing its production, which is expected to rise by about 10pc over the next three years from its current 28m oz.

Hochschild's investments in other precious metal groups now account for 11pc of total assets. This diversification into gold and other locations makes strategic sense. Hochschild operates four underground epithermal vein mines e_SEnD three in Peru, one in Argentina and one open pit mine in Mexico. It also has 16 long-term prospects throughout the Americas. The outlook for precious metals remains positive as the outlook for the dollar is negative.

The shares are trading on a March 2010 earnings multiple of 18.8, falling to 15.2 in 2011.

Questor recommended buying the shares on August 23 at 284.2p and the shares are now up 15pc. The stance remains buy.
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Wed Jan 06, 2010 1:33 pm

Gold will still gleam next year but some miners will outshine others

...So where to turn? Of large-cap London-listed precious metal plays, Goldman favours Hochschild Mining — the Latin American miner better known as a silver producer. In the wake of higher gold and silver prices, and the one-off costs related to October’s $250 million fundraising, the bank yesterday set a 468p 12-month price target — implying a gain of more than 40 per cent from current levels. In contrast, Goldman has turned more cautious on Randgold, removing the shares from its “buy” list. It concedes that the African producer has the strongest growth prospects of any of its peer group. Next year’s expected start-up of its Tongon mine in the Ivory Coast, followed by its three longer-dated projects in Mali, Senegal and the Democratic Republic of Congo, should see Randgold’s annual output rise to 1.5 million ounces by the middle of the next decade — making it ninth in the world on present rankings, against sixteenth now. Goldman also cites Randgold’s favourable production costs, which it expects to fall faster than any of its rivals. However, it thinks that those prospects are priced into the shares — whereas project delays are not.
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Tue Mar 09, 2010 10:06 am

Hochschild further increases stake in Gold Resource Corporation

    • Hochschild enters into $5.2 million private placement with GRC, increasing ownership to 29%
    • Purchase of 600,000 GRC shares at $8.6 per share
    • Transaction demonstrates continued delivery of consolidation strategy

Hochschild Mining plc ("Hochschild") is pleased to announce that it has entered into a private placement with Gold Resource Corporation ("GRC") for a total cash consideration of $5.2 million. Following completion of the purchase and purchases undertaken on the open market, Hochschild's ownership in GRC will increase from 27% to 29%.

Since December 2008, Hochschild has invested a total of $59.2 million in GRC, a US OTC traded underground precious metals mining company with a number of prime development projects in southern Mexico. GRC has a current market capitalisation of over $470 million, valuing Hochschild's investment at approximately $136 million.

This additional investment increases Hochschild's exposure to GRC's high grade, low cost ounces and expands the Company's operational cluster in southern Mexico, a mining friendly country with significant mineral potential. It also demonstrates Hochschild's commitment and ability to deliver on its strategy following the $260 million capital raising undertaken in October 2009, which strengthened the Company's balance sheet and provided funds for further acquisition opportunities.

Proceeds will be used at GRC's El Aguila project for working capital during mill optimisation, training and continued construction of the phase 2 tailings facility. The El Aguila project commenced production in February 2010 and is on track to produce 70 thousand ounces of gold in the first year of operation (4.2 million silver equivalent ounces).
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Re: Hochschild Mining PLC (L:HOC)

Postby DoctorSolar » Thu Mar 18, 2010 6:50 pm

Hochschild picked up a bargain with the GORO deal. I've been in GORO for a while now and it's been a blinder. The management have been fantastic so far. Seems to have stalled out in the $10.30 area for now after a big run up from the 2008 crash lows.

They didn't bother getting a 43-101 resource so its a little unclear how many ounces they have in the ground. Still at a cost per ounce of ZERO and a projected annual production of 100,000 ounces this one has a ways to run yet.

Maybe I'll start a separate thread for GORO news?
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Thu Mar 18, 2010 8:13 pm

DoctorSolar wrote:Hochschild picked up a bargain with the GORO deal. I've been in GORO for a while now and it's been a blinder. The management have been fantastic so far. Seems to have stalled out in the $10.30 area for now after a big run up from the 2008 crash lows.

They didn't bother getting a 43-101 resource so its a little unclear how many ounces they have in the ground. Still at a cost per ounce of ZERO and a projected annual production of 100,000 ounces this one has a ways to run yet.

Maybe I'll start a separate thread for GORO news?

I was interested in GORO but didn't think I could buy them within my ISA as they aren't on the TSE. Glad HOC have a lot of them though, as well as Lake Shore Gold.
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Wed Mar 24, 2010 9:10 am

Preliminary Results for the twelve months ended 31 December 2009

Strategic & Operational Highlights

· Record full year production, up 8%, achieving target of 28m attributable silver equivalent ounces

· 11% reduction in unit cost per tonne - exceeding 2009 target of 5%

· Continued delivery of M&A strategy:

· $172.9 million invested in Lake Shore Gold, increasing the Group's stake to 38%

· $58.5 million invested in Gold Resource Corp, increasing the Group's stake to 29%

· Acquisition of Southwestern Resources completed for $19.2 million

· Resource life of mine for main operations up 20% to 7.1 years

· 2010 exploration budget up 75% to $50 million

· 2010 production target of 29 million silver equivalent ounces, including 2.7 million silver equivalent ounces from Hochschild's interests in Lake Shore Gold and Gold Resource Corp

· Directorate and management appointments


Financial Highlights

· 24% increase in revenue to $539.7 million

· Administrative expenses down by 26% to $51.1 million

· Record attributable profit after tax of $98.1 million, positively impacted by an exceptional one-off gain of $42.3 million relating to the Lake Shore Gold/West Timmins Mining transaction

· EPS up from $(0.08) to $0.31

· Solid financial position with year end cash balance of $77.8 million

· Proposed dividend of $0.02 per share, bringing the total dividend to $0.04 per share

· $85.7 million pre-payment of $200 million syndicated loan facility

· $260 million convertible bond offering and equity placing
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Wed Mar 24, 2010 11:36 am


These results look very good to me, think we should be through £3 on the way to £4 soon.
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Wed Mar 24, 2010 12:49 pm

0923 GMT [Dow Jones] The unexpected resignation of Hochschild Mining's (HOC.LN) CEO and CFO will likely be a negative for the company's shares in the near-term, though the damage will likely be limited, says Canaccord Adams analyst Damien Hackett. Comments the board may have been frustrated with the underperformance of Hochschild's shares under the tenure of the current CEO. "I can see why the board might have been frustrated." However, Adams says the company's outlook is positive and its shares are substantively undervalued. Has a buy recommendation with 400p target.
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Re: Hochschild Mining PLC (L:HOC)

Postby Johnbonham » Mon Dec 06, 2010 9:45 pm

just had a quick look at this company, wow £4.00 target was a little low, do you think this is still a buy or would it be prudent to wait till the post christmas doldrums? interested to know what people are doing buy, sell or hold.

new to mining shares and would like to park some of my capital in an isa have my wifes allowance also, any ideas or advice would be gratefully received. Am i to late to the party or is the fun just starting?
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Mon Dec 06, 2010 9:58 pm

cheesybob wrote:just had a quick look at this company, wow £4.00 target was a little low, do you think this is still a buy or would it be prudent to wait till the post christmas doldrums? interested to know what people are doing buy, sell or hold.

new to mining shares and would like to park some of my capital in an isa have my wifes allowance also, any ideas or advice would be gratefully received. Am i to late to the party or is the fun just starting?

Most of my portfolio I bought at the low in Jan '09 but have bought two new ones last month and am up 36% (Alamos Gold) on one and 15% (Gammon Gold) on the other already. I would suggest drip feeding some in and then building the position when there is a pullback. The way I am playing my ISA is that I am taking profits within my bullion each year below the capital gains tax allowance and then feeding that profit into it and some UK coins.

I think the shares are still undervalued and they will be on a tear for the next few months, I am expecting there to be a pullback next summer when the QE2 cash runs out but I don't expect the prices will be below where they are now. That is just my opinion though, so please don't shoot me if I am wrong. ;)
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Re: Hochschild Mining PLC (L:HOC)

Postby Johnbonham » Mon Dec 06, 2010 10:11 pm

definately wont shoot,

there are a lot of companies out there to look for, how do you research them? is just balance sheet/ end of year reports etc? pr are you digging a little deeper?

I believe in the long term value of silver and would not be needing this money for a while so drip feeding over the next year would work quite well for me.

I am going to put some of this capital into the energy markets also to help spread the risk a little.

obviously dripfeeding is a good way but is there a minimum, a lot of share buying sites recommend £500-1000 per trade due to the costs involved, which is why purchasing more in one hit is more appealing.
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Mon Dec 06, 2010 10:38 pm

cheesybob wrote:definately wont shoot,

there are a lot of companies out there to look for, how do you research them? is just balance sheet/ end of year reports etc? pr are you digging a little deeper?

I believe in the long term value of silver and would not be needing this money for a while so drip feeding over the next year would work quite well for me.

I am going to put some of this capital into the energy markets also to help spread the risk a little.

obviously dripfeeding is a good way but is there a minimum, a lot of share buying sites recommend £500-1000 per trade due to the costs involved, which is why purchasing more in one hit is more appealing.

The two I bought recently are after I have identified them as being part of the GDXJ listed shares and also after checking through the websites reports and mainly looking at their charts and trying to pick a good entry point. The way I tend to work is I identify the companies I want to buy then start doing some TA on their charts and drip feed into them at the right times. Usually £1000 min purchase I wouldn't go below that as the fees make it not so worth while.

My advice is take your time to find the right companies and then also take your time to find the right entry point, opportunities regularly arise when you are watching the markets.

My ISA currently has 9 different stocks in it, which are mainly juniors. You need to balance the level of risk you are taking. If you don't have much money to invest I would pick mid tiers and royalty companies as they will be more stable. You can make better gains from juniors, but also they can go bust on you so you really need a few to balance the risk. If you like silver I would say Silver Wheaton (SLW) is a good starting place, I treat it as a savings account.
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Re: Hochschild Mining PLC (L:HOC)

Postby Does Commute Abit » Sat Dec 18, 2010 12:02 am

My buy order for HOC.L just got filled today.

Using this as a 'learning the ropes' exercise to see how I feel about holding mining shares (yes, I'm very very late to this game).
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Wed Jan 12, 2011 3:58 pm

Broker upgrade on HOC yesterday;

Hochschild Mining raised to buy from hold at Fox-Davies, TP 640p up from 609p.

http://www.my-share.co.uk/Broker-notes-January-2011/
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Re: Hochschild Mining PLC (L:HOC)

Postby Does Commute Abit » Mon Jan 31, 2011 2:01 pm

Just bought some more - I like all I read about this company even if its shareprice is up and down at the moment, and the stockmarket in general looks fragile.
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Mon Jan 31, 2011 2:17 pm

Diet Cola Addict wrote:Just bought some more - I like all I read about this company even if its shareprice is up and down at the moment, and the stockmarket in general looks fragile.

I think you have made a good move there, as we move into the March contract for silver the price of the metal should increase a lot and HOC should give you leverage on it. :thumbup:
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Wed Feb 02, 2011 12:45 pm

Positive drill results at new Pariguanas joint venture

Hochschild Mining plc ("Hochschild" or "the Company") is pleased to report positive drilling results from Pariguanas, a new joint venture ("JV"), with Compañía de Minas Buenaventura ("Buenaventura"). The JV (signed in June 2010) covers 4,437 hectares located approximately 18 kilometres from the Company's existing Ares operation.

The Pariguanas project was created through the combination of neighbouring properties of similar size owned by Hochschild and Buenaventura. Buenaventura currently holds 60% of the JV with the obligation to achieve production by 2018. In the event that Buenaventura does not commence production within this timeframe, Hochschild will have the option to assume control of the project by committing to certain payments linked to Buenaventura's investment.

Pariguanas is a low sulphidation, predominantly underground vein system where up to five prospective areas have been outlined. A total of 7,290 metres in 31 holes has been drilled by Buenaventura to date, mainly focused on the San Pedro vein. Positive results include:

· 2.7metres at 0.7 g/t Au & 1,194 g/t Ag including 0.9 metres at 1.6 g/t Au & 3,016 g/t Ag

· 4.4 metres at 3.1 g/t Au & 2,376 g/t Ag including 1.6 metres at 7.5 g/t Au & 6,288 g/t Ag
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Re: Hochschild Mining PLC (L:HOC)

Postby Does Commute Abit » Wed Feb 02, 2011 1:37 pm

Thanks for that Pix, they seem a nice mix of in-production mining and exploration, spread over several sites so something should "strike gold" bigtime, so to speak.

The chart looks like it has given 470 a repeated test, and looks like a bottom has formed here. I've loaded up.

http://uk.finance.yahoo.com/charts?s=HO ... f;source=;

(can't find the chart on stockchrts, so using the yahoo one. Any better links anyone? )
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Re: Hochschild Mining PLC (L:HOC)

Postby Pixel8r » Wed Feb 02, 2011 2:42 pm

Diet Cola Addict wrote:Thanks for that Pix, they seem a nice mix of in-production mining and exploration, spread over several sites so something should "strike gold" bigtime, so to speak.

The chart looks like it has given 470 a repeated test, and looks like a bottom has formed here. I've loaded up.

http://uk.finance.yahoo.com/charts?s=HO ... f;source=;

(can't find the chart on stockchrts, so using the yahoo one. Any better links anyone? )

Stockcharts doesn't do UK stocks, so I use advfn for hoc;

http://www.advfn.com/p.php?pid=charts&s ... d=9&freq=6
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Re: Hochschild Mining PLC (L:HOC)

Postby Does Commute Abit » Wed Feb 02, 2011 3:34 pm

Thanks Pix
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