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Hochschild Mining
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Hochschild Mining Community
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Hochschild Mining
RO
RockeTeller
Community Contributor
Silver Play by A Family with 10x Potential
Hochschild Mining – Overview Location : South America Production (2025) : Gold: 250,000 oz Silver: 8 million oz (excluding Pallancata C&M) AISC (Break-even) : Gold: ~$1,850/oz Silver: ~$24/oz Cash Flow Margin at $4,000 gold / $100 silver : Strong Debt : $350M $100M due in 2024 $89M cash on hand $200M additional credit available New & Future Projects Mara Rosa (Brazil) : 80,000 oz/year (low cost) Started in 2024 Royropata (Peru) : 100,000 oz AUEQ (3M oz silver/year) Starts in 2028 Monte Do Carmo (Brazil) : 90,000 oz gold Permitting stage – expected 2028 Volcan (Chile) : 9 million oz gold (.7 gpt) Potential 330K oz/year AISC: ~$1,000 Capex: $900M Production could begin 2028–2030 Not included in cash flow estimate (optional upside or sale) Ownership 50% owned by one family Dividends are a priority Unlikely to sell – growth focus Valuation at $4,000 Gold / $100 Silver Assume production from 2028 with 400K oz gold & 10M oz silver: Gold FCF : 400,000 oz × ($4,000 – $1,850) = $860M Silver FCF : 10,000,000 oz × ($100 – $24) = $760M Total Annual FCF ≈ $1.62B Valuation at 10x FCF = $16.2B Conclusion If Hochschild Mining executes on new projects and gold reaches $4,000/oz, silver hits $100/oz, the company could be worth over $16 billion. However, high debt, permitting risks, and political red flags (Argentina, Peru, Chile) may keep valuation multiples conservative.
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UK£24
FV
86.4% undervalued
intrinsic discount
68.48%
Revenue growth p.a.
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5 months ago
author updated this narrative
Hochschild Mining
AN
AnalystConsensusTarget
Consensus Narrative from 10 Analysts
Mara Rosa Recovery And New Exploration Will Boost Production
Key Takeaways Operational improvements, exploration success, and project pipeline diversification are set to boost output, extend mine life, and reduce risk. Strong gold and silver demand and strengthened ESG credentials support higher revenues, valuation, and investor appeal.
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UK£3.32
FV
2.0% undervalued
intrinsic discount
6.00%
Revenue growth p.a.
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12 days ago
author updated this narrative
Your Valuation for
HOC
HOC
Hochschild Mining
Your Fair Value
UK£
Current Price
UK£3.26
2.7% overvalued
intrinsic discount
Growth estimate over
Annual revenue growth rate
5 Years
time period
%/yr
Decrease
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Past
Future
-162m
2b
2015
2018
2021
2024
2025
2027
2030
Revenue US$1.5b
Earnings US$211.1m
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