Rhigos
10 Aug 2016
Re: RNS great news! shrugg1e, "I think it could easily double again in 12 months still massively undervalued when compared to FRES £14 billion market cap."You could well be right. Two (of many) measures of valuing are forecast of Price Earnings ratio (f PE) which for HOC is 35.6 suggesting expensive and Price to free cash flow (P/FCF) which is -21.7, anything less than 10 suggests undervalued. The 5 year average of P/FCF for HOC is -12.8.Returns are not good: Return on Equity (ROE) -3.6%pa, Return on Capital Employed (ROCE) -0.4%Conflicting fundamentals which I think in a nutshell were when price of silver got too low they struggled but did react to reduce losses and increase profits. Now price of silver picked up somewhat they are in a good position to take advantage but significant profits still in the future.I do not understand SP movement of HOC. Today silver +2.1% but HOC SP only up 0.44%. I would have expected it to be up about ten times that. Perhaps some big shareholders taking profits. Any ideas?
shugg1e
09 Aug 2016
Re: RNS great news! I think it could easily double again in 12 months still massively undervalued when compared to FRES £14 billion market cap.
Rhigos
09 Aug 2016
Re: RNS great news! HOC SP is rising faster and for longer than surge from 8 Dec 2008 to 3 Jun 2009. Silver went up a lot Dec 2008 to Apr 2011 but HOC did not keep doing that well. I suppose fall in pound has provide a tail wind recently. Plotted HOC SP and £ ETFS physical silver on same graph as HOC and this year silver has only gone up a modest amount nothing like previous boom years.HOC must be a much more efficient company now. After recent rise it hard to believe but signs are that it will keep rising but probably at a slower rate even if silver only goes up by 10% in the next 6 months.
the_alchemist
30 Jul 2016
Re: RNS great news! Precious metal prices are currently being driven by low interest rates, a weakening dollar, and to a lesser extent fear.Currently most countries are cutting interest rates or at least delaying raising them. This is because most economies are doing badly at the moment. On Friday the US announced Q2 GDP of only 1.2% growth Vs expected 2.6%. Precious metal prices rose sharply on the back of this because it signals that the Fed is unlikely to raise interest rates in the near term. So to sum it up, whilst global growth is poor and the Fed/ECB/BOJ are either cutting or holding interest rates, you should continue to hold PMs and mining shares. If global growth looks like it's actually picking up strongly then you should look to take profits. FYI I think it's unlikely we will see that happen in the near-medium term so hopefully we should see large rises in the price of PMs before then.
shugg1e
27 Jul 2016
Re: RNS great news! Well just look At Fresnillo at £19 a share and a £15billion market cap Vs HOCs relatively small market cap of £1.5 billion.As you can see there is a long long way to go these will be £20 plus in 4 years.
Rhigos
27 Jul 2016
Re: RNS great news! Performance rewarded by very good rise in SP. Around 5% this morning and over 11% yesterday. Over the last 6 months the trend has been an almost straight line rising at the rate of 1,815% pa !!!! Towards the end of last year I thought about selling to cut my losses after holding for over 2 years. Not a large holding fortunately I thought then and decided to wait. In hindsight that was when I should have doubled my holding to bring to average sort of value for my portfolio. Very thankful I decided not to sell anyway and at this rate will become average value for shareholding for me.How much more will SP rise, must be a question a lot of HOC shareholders must be asking themselves. When do you start taking profits? Is it just dependant on silver price which most analysts admit is impossible to forecast with any degree of certainty?
Nige the snake
21 Jul 2016
RNS great news! Ignacio Bustamante, Chief Executive Officer said:"The first half of 2016 has proved to be pivotal in Hochschild's recent history with the delivery of strong production results, continued cost reduction, further debt repayments and recently, re-entry into the FTSE 250 Index. Our Inmaculada operation has performed above expectations and is on track to exceed its production and cost targets for the year emphasising its world class competitive position. We are now raising our target for overall 2016 production by 6% to 34 million silver equivalent ounces whilst at revising our all all-in sustaining cost down to between $11.0 and $11.5 per silver equivalent ounce. Furthermore, despite additional debt repayment, our cash position remains very strong at over $100 million." Operational highlights§ Q2 2016 attributable production exceeded expectations1o 4.5 million ounces of silvero 67.0 thousand ounces of goldo 9.5 million silver equivalent ounces, up 86% versus Q2 2015 (5.1 million ounces)o 128.5 thousand gold equivalent ounces§ H1 2016 attributable production driven by strong Inmaculada performanceo 8.2 million ounces of silvero 118.1 thousand ounces of goldo 17.0 million silver equivalent ounceso 229.1 thousand gold equivalent ounceso Inmaculada produced 111.2 thousand gold equivalent ounces Strengthening financial position§ $70m of debt repaid to date in 2016§ Total cash of approximately $103 million as at 30 June 2016 ($84 million as at 31 December 2015)§ Net debt of approximately $280 million as at 30 June 2016 ($366 million as at 31 December 2015) Revised outlook§ Full year production now forecast to be 34 million silver equivalent ounces (460 thousand gold equivalent ounces) from 32 million ounces§ All-in sustaining costs per silver equivalent ounce now expected to be between $11.0-11.5 for 2016 (previously $12.0- 12.5) Capital Markets Event§ Capital Markets Event to be held on 6th September 2016 in London__________ __________ __________ __________ __________ __________ __________ __________ __ A conference call will be held at 2.30pm (London time) on Thursday 21 July 2016 for analysts and investors. Dial in details as follows:International Dial in: +44 (0) 20 3139 4830UK Toll-Free Number: +44(0) 808 237 0030Pin: 38264089#A recording of the conference call will be available for one week follow
shugg1e
06 Jul 2016
Re: share price v silver Fresnillo value £14 billionHoc value £1.2 billionno brainer really
Mr Millionare
06 Jul 2016
Re: share price v silver Dividend is still suspended as far as I am aware. Given that HOC should comfortably be making a profit at current prices I would expect a dividend reinstatement announcement sometime this year. This should attract a lot more institutional investment and a return to previous price highs should be on the cards. The collar contract may hold HOC back for a while, but not for long - production was 22M oz in 2014 so with a sustained increase in silver price I would expect production to ramp up. Alongside significantly lower operational costs I would argue that HOC is significantly under priced at the moment, despite the rise.
grapheve
06 Jul 2016
Re: share price v silver Here are the details of the collar contract:-On 11 February 2016, the Group signed a zero cost collar contract with JP Morgan Chase Bank over three million ounces of silver at a call/put price of US$17.60 and US$14.00 per ounce, from 12 February to 30 December 2016. In addition, on 12 February 2016, the Group signed a commodity swap contract with Citibank to hedge 15,000 ounces of gold at a price of US$1,244.25 per ounce from 12 February to 30 December 2016. These agreements are in addition to previous agreements for 2016 to hedge the sale of 29,000 ounces of gold at $1,145 per ounce, 6.0 million ounces of silver at $15.93 per ounce and 71,000 ounces of gold at a price of $1,154 per ounce.As you say it is only about 10% of annual production. I don't know the mechanics of how these contracts worked but if they could J.P. Morgan will be demanding every ounce that is being produced at the moment.
pete011111
05 Jul 2016
Re: share price v silver Interesting. The relevant part of the collar would be a call option sold to J P Morgan. Do you know the expiry date of it? Or a link to that info would be good. According to the announcement on 20.4.16 the forecast is 32 million ounces of silver equivalent, so perhaps 3.7m is not so significant. We have certainly seen a very remarkable recovery in the share price recently, I was just wondering how far it could go at current silver prices.
grapheve
05 Jul 2016
Re: share price v silver I am re-posting something I wrote on 21/4/16. I think it explains why the Share price hasn't reacted to the strong rise in the price of silver."Yesterday's production statement mention a collar contract with J.P. Morgan @$17.6 for silver. I interpret this to mean that as soon as the silver price exceeds $17.6 JP Morgan come to Hochschild and say please can we have our 3 million ounces of silver at $17.6 per ounce. If that is wrong can someone correct me.The annual forecast production is 3.7 million ounces so the bulk will go at a max. of $17.6.The silver price was over $17 when I looked this morning. "Grapheve
pete011111
04 Jul 2016
share price v silver Silver is the same price today ($20.3) as in March 2008. HOC was then 500p. Are we targeting this level now? If so we are a bit behind the curve.
oldjoe1
16 Jun 2016
HOC.........................BREAKOUT. HOC Hochschild Miningbreakout.......[link] level of resistance to take out 178p/180p.[link]
oldjoe1
16 Jun 2016
HOC, On Verge Of A Breakout........ HOC Hochshild Mining........primarily silver but some gold mining.On the verge of a big breakout?.[link]
