November 08, 2006
Hochschild Gives A South American Boost To Londons Mining Sector


Quite a feather in Londons cap to have Hochschild Mining taking a full listing. At first glance Toronto or New York might have seemed a more logical destination, but the Sabanes-Oxley Act has meant that compliance requirements in North America have reached stratospheric levels and London looked more attractive, though a full listing on the LSE is certainly no walkover. Geographically, also, it has advantages as both JP Morgan Cazenove and Goldman Sachs International, the joint sponsors, joint global co-ordinators and joint bookrunners for the IPO are both based in London, as are Canaccord Adams the co-lead manager and Nomura International, the co-manager. The shares were placed at 350 p each to raise around 270 million from institutional investors in the UK, Europe, the US and Canada. On this basis its market capitalisation is just over 1 billion which takes it straight to 99th position in the FTSE 250 Index and makes it worthy of consideration by all types of investors.

The history of this Peruvian mining company is fascinating as it comprises the mining operations of the Hochschild Group which was founded in Chile in 1911 by Mauricio Hochschild. After World War 1 it expanded into Bolivia where the target was tin and it did not start its Peruvian operations until 1925. Even then it stuck to metal trading and beneficiation until the 1940s and during the 2nd World War the Group was a key supplier of tin and other metals to the allied forces. The next major advance came in the 1960s when the Arcata mine was developed in Peru and it is still in production today. Over the next ten years or so more mines were opened in Brazil, Peru and Chile such as the well known Mantos Blancos copper mine in Chile.

It is here that the history gets a bit complicated as in November 1984 Anglo American bought the South African mining operations of Hochschild Group and immediately sold the Peruvian operations to Luis Hochschild who is clearly a descendant of the founder, though the exact relationship is not clear. Anyway it is his son Eduardo who is now executive chairman of the company, having started as a safety assistant at Arcata in 1987 and working his way up to be boss of the company 12 years later. At the executive level he is supported by Roberto Danino as deputy chairman and Alberto Beeck which is director of strategy and corporate development.

The operations sold back to Luis became the basis of Hochschild Mining which then launched an aggressive expansion campaign in Peru as well as in Mexico, Argentina and Chile. In order to spread the financial risk joint ventures were agreed with other local and overseas mining partners to develop the San Jose, Pallacanta, Mina Moris and San Felipe projects. Hochschild Mining is now the fourth largest silver producer in the world with an output of around 10.5 million ounces plus just under 250,000 ounces of gold in 2005. In that year its cash costs of production amounted to US$2.65/oz for silver and US$169/oz for gold which puts it in the first quartile of the 2005 global cost curve for both metals.

Its specialisation is in epithermal vein deposits and it currently has three underground mines Arcata, Ares and Salene - in production in southern Peru. Next up are two advanced and two early stage development projects in Argentina, Mexico and Peru and then a swathe of prospects at various stages. The overall strategy is to bring a sequence of these projects into production and the aim is to push towards annual production of 50 million silver equivalent ounces, or 830,000 gold equivalent ounces if preferred, by 2011. This is quite an uplift from the 2005 figures, but Hochschild is not the sort of company which would risk undershooting a declared target, so it may err on the conservative side.





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BRIEF – Hochschild says exceeds 2014 production target
21 Jan 2015 - 07:20

Jan 21 (Reuters) – Hochschild Mining Plc

2015 production target of 6-7 million silver equivalent ounces for Inmaculada mine (not whole co) remains in place despite some construction delay
Full year production of 22.2 million attributable silver equivalent ounces substantially exceeding 21.0 million target
Main operation all-in sustaining costs per silver equivalent ounce expected to fall by up to 5 pct in 2014, within guidance
2015 all-in sustaining costs expected to be $15-$16 per silver equivalent ounce
Source text for Eikon: ... Further company coverage: HOCM.L

((Bengaluru Newsroom +91 806 749 1136);)

The market is not impressed.

HOCHSCHILD MINING



Last Signal:SELL


Last Pattern:BEARISH THREE GAP UPS



Last Close:
115.5000


Change:
-15.0000

Percent change
-11.49%






Signal Update

Our system’s recommendation today is to SELL. The BEARISH THREE GAP UPS pattern finally received a confirmation because the prices crossed below the confirmation level which was at 126.1250, and our valid average selling price stands now at 125.9250. The previous BUY signal was issued on 24/12/2014, 28 days ago, when the stock price was 81.3500. Since then HOC.L has risen by +54.79%.

Market Outlook

The market ran out of steam and the traders are now more in agreement about the bearishness. The evidence is strong enough to prompt the closing of long positions. The bearish pattern that was previously identified is finally confirmed and a SELL signal is generated. You still have time to follow the signal and then you may start checking other securities for a bullish bet.

21/01/2015

hope gf sold out at 130p...... otherwise his 7 digit profit is going to suffer......

No didnt sell out BB, but took a large chunk. Would have been daft not too on such a fast rise over such a small time frame.

Looking for Draghi now to put this one back on the map.

If you are thinking of buying watch it like an hawk.

Was out of these 2 days ago with a big net gain.

Will return probably after greek elections.

Hmmm.....some porkies going on here.,.

Yep never believe doodlebug 3 1/2, hes still very bitter of how FLYB bankrupt him and in fact its falling again today.

Gold and silver should do well post Greek elections.

Dont say I didnt warn you.

was referring to post 217.,.

217 - Billy Liar Tribute Act!!!!! LOL!!!!!

He just can't help it. They say compulsive liars actually start believing their own lies.

BB heres a cheaper alternative for Doodlebug 3 1/4....... he he pissing myself.

Signal Update Our system’s recommendation today is to STAY IN CASH. The previous SELL signal was issued on 21/01/2015, 2 days ago, when the stock price was 125.9250. Since then HOC.L has fallen by -17.61%.Market Outlook The bears still have the upper hand in the market. A more cautious attitude may be required, but there is no definite sign to urge you into action and to disturb your comfort of being on the sidelines.

British Bulls

.

drip, drip,drip

Fallen back sharply since it's recent 130p ish high, whilst it was a good call by gf originally, the window of opportunity was minute.
2517

I topped up my holding a couple of days ago.

22 Jan 2016
Numis today upgrades its investment rating on Hochschild Mining PLC (LON:HOC) to buy (from hold) and cut its price target to 50p (from 80p).