HOC logo

Hochschild MiningLSE:HOC Stock Report

Market Cap UK£1.4b
Share Price
UK£2.70
My Fair Value
UK£3.31
18.4% undervalued intrinsic discount
1Y53.2%
7D-6.4%
Portfolio Value
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Hochschild Mining plc

LSE:HOC Stock Report

Market Cap: UK£1.4b

Hochschild Mining (HOC) Stock Overview

A precious metals company, engages in the exploration, mining, processing, and sale of gold and silver deposits in Peru, Argentina, the United Kingdom, Canada, Brazil, and Chile. More details

HOC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance3/6
Financial Health3/6
Dividends0/6

Rewards

Trading at 62% below our estimate of its fair value

Earnings are forecast to grow 24.25% per year

Became profitable this year

Analysts in good agreement that stock price will rise by 24%

Risk Analysis

Volatile share price over the past 3 months compared to the UK market


HOC Community Fair Values

Create Narrative

See what 58 others think this stock is worth. Follow their fair value or set your own to get alerts.

HOC logo
Hochschild Mining
AN
AnalystConsensusTarget
AnalystConsensusTarget
Consensus Narrative from 10 Analysts

Transition To Full Production At Mara Rosa Mine Will Increase Output

Key Takeaways Expanding resources through exploration and transitioning to full Mara Rosa production could enhance revenue, profitability, and long-term stability. Cost optimization, new projects, and a new dividend policy are poised to strengthen financial health and investor confidence.
View narrative
UK£3.31
FV
18.4% undervalued intrinsic discount
8.82%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
18users have followed this narrative
6 days ago author updated this narrative
HOC logo
Hochschild Mining
RO
RockeTeller
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.
View narrative
UK£24.00
FV
88.7% undervalued intrinsic discount
68.48%
Revenue growth p.a.
4users have liked this narrative
10users have commented on this narrative
31users have followed this narrative
3 months ago author updated this narrative
View Stock Community

Hochschild Mining plc Competitors

Price History & Performance

Summary of share price highs, lows and changes for Hochschild Mining
Historical stock prices
Current Share PriceUK£2.70
52 Week HighUK£3.34
52 Week LowUK£1.59
Beta0.39
1 Month Change9.84%
3 Month Change-11.41%
1 Year Change53.17%
3 Year Change265.14%
5 Year Change-3.98%
Change since IPO-23.89%

Recent News & Updates

Is There An Opportunity With Hochschild Mining plc's (LON:HOC) 24% Undervaluation?

May 27
Is There An Opportunity With Hochschild Mining plc's (LON:HOC) 24% Undervaluation?

Recent updates

Is There An Opportunity With Hochschild Mining plc's (LON:HOC) 24% Undervaluation?

May 27
Is There An Opportunity With Hochschild Mining plc's (LON:HOC) 24% Undervaluation?

Subdued Growth No Barrier To Hochschild Mining plc (LON:HOC) With Shares Advancing 37%

Mar 20
Subdued Growth No Barrier To Hochschild Mining plc (LON:HOC) With Shares Advancing 37%
author-image

Mara Rosa And Royropata Projects Will Expand Future Operations

Strategic developments in Brazil and Peru will enhance Hochschild's gold and silver output, bolstering revenues and production capabilities.

Investors Continue Waiting On Sidelines For Hochschild Mining plc (LON:HOC)

Jan 27
Investors Continue Waiting On Sidelines For Hochschild Mining plc (LON:HOC)

Investors Still Aren't Entirely Convinced By Hochschild Mining plc's (LON:HOC) Revenues Despite 28% Price Jump

Oct 27
Investors Still Aren't Entirely Convinced By Hochschild Mining plc's (LON:HOC) Revenues Despite 28% Price Jump

A Look At The Intrinsic Value Of Hochschild Mining plc (LON:HOC)

Apr 25
A Look At The Intrinsic Value Of Hochschild Mining plc (LON:HOC)

Hochschild Mining plc (LON:HOC) Stock Rockets 26% As Investors Are Less Pessimistic Than Expected

Mar 16
Hochschild Mining plc (LON:HOC) Stock Rockets 26% As Investors Are Less Pessimistic Than Expected

A Piece Of The Puzzle Missing From Hochschild Mining plc's (LON:HOC) Share Price

Dec 18
A Piece Of The Puzzle Missing From Hochschild Mining plc's (LON:HOC) Share Price

Here's Why Hochschild Mining (LON:HOC) Is Weighed Down By Its Debt Load

Sep 28
Here's Why Hochschild Mining (LON:HOC) Is Weighed Down By Its Debt Load

Hochschild Mining plc's (LON:HOC) Intrinsic Value Is Potentially 41% Above Its Share Price

Aug 03
Hochschild Mining plc's (LON:HOC) Intrinsic Value Is Potentially 41% Above Its Share Price

Hochschild Mining plc (LON:HOC) Shares Could Be 31% Below Their Intrinsic Value Estimate

Mar 14
Hochschild Mining plc (LON:HOC) Shares Could Be 31% Below Their Intrinsic Value Estimate

Hochschild Mining (LON:HOC) Might Have The Makings Of A Multi-Bagger

Feb 24
Hochschild Mining (LON:HOC) Might Have The Makings Of A Multi-Bagger

Shareholder Returns

HOCGB Metals and MiningGB Market
7D-6.4%2.7%0.3%
1Y53.2%-8.0%6.7%

Return vs Industry: HOC exceeded the UK Metals and Mining industry which returned -8% over the past year.

Return vs Market: HOC exceeded the UK Market which returned 6.7% over the past year.

Price Volatility

Is HOC's price volatile compared to industry and market?
HOC volatility
HOC Average Weekly Movement9.8%
Metals and Mining Industry Average Movement8.0%
Market Average Movement5.0%
10% most volatile stocks in GB Market11.3%
10% least volatile stocks in GB Market2.7%

Stable Share Price: HOC's share price has been volatile over the past 3 months compared to the UK market.

Volatility Over Time: HOC's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
19113,212Eduardo Navarrowww.hochschildmining.com

Hochschild Mining plc, a precious metals company, engages in the exploration, mining, processing, and sale of gold and silver deposits in Peru, Argentina, the United Kingdom, Canada, Brazil, and Chile. The company’s flagship asset includes the 100% owned Inmaculada gold and silver underground mine consisting of 40 mining concessions covering an area of approximately 20,000 hectare located in the Ayacucho Department, southern Peru. It is also involved in the power generation and transmission activities.

Hochschild Mining plc Fundamentals Summary

How do Hochschild Mining's earnings and revenue compare to its market cap?
HOC fundamental statistics
Market capUK£1.40b
Earnings (TTM)UK£71.94m
Revenue (TTM)UK£702.82m
19.3x
P/E Ratio
2.0x
P/S Ratio

Is HOC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
HOC income statement (TTM)
RevenueUS$947.70m
Cost of RevenueUS$606.46m
Gross ProfitUS$341.24m
Other ExpensesUS$244.24m
EarningsUS$97.01m

Last Reported Earnings

Dec 31, 2024

Next Earnings Date

Aug 27, 2025

Earnings per share (EPS)0.19
Gross Margin36.01%
Net Profit Margin10.24%
Debt/Equity Ratio45.5%

How did HOC perform over the long term?

See historical performance and comparison

Dividends

0.5%
Current Dividend Yield
10%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/21 12:48
End of Day Share Price 2025/07/21 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Hochschild Mining plc is covered by 23 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Izak RossouwBarclays
Izak RossouwBarclays
David Simon ButlerBarclays