LSE:HOC

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Executive Summary

Hochschild Mining plc, a precious metals company, explores for, mines, processes, and sells gold and silver in the Americas. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Hochschild Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HOC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: HOC's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-5.5%

HOC

-1.3%

GB Metals and Mining

-0.1%

GB Market


1 Year Return

12.6%

HOC

23.6%

GB Metals and Mining

-8.1%

GB Market

Return vs Industry: HOC underperformed the UK Metals and Mining industry which returned 23.6% over the past year.

Return vs Market: HOC exceeded the UK Market which returned -8.1% over the past year.


Shareholder returns

HOCIndustryMarket
7 Day-5.5%-1.3%-0.1%
30 Day-6.0%7.3%3.7%
90 Day-20.9%32.3%16.2%
1 Year14.1%12.6%29.7%23.6%-4.3%-8.1%
3 Year-12.2%-16.0%50.6%26.1%3.8%-8.9%
5 Year299.3%277.5%360.8%252.4%46.9%13.6%

Long-Term Price Volatility Vs. Market

How volatile is Hochschild Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hochschild Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOC (£1.93) is trading below our estimate of fair value (£8.83)

Significantly Below Fair Value: HOC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HOC is poor value based on its PE Ratio (175.7x) compared to the GB Metals and Mining industry average (15x).

PE vs Market: HOC is poor value based on its PE Ratio (175.7x) compared to the UK market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: HOC is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: HOC is good value based on its PB Ratio (1.9x) compared to the GB Metals and Mining industry average (2.2x).


Next Steps

Future Growth

How is Hochschild Mining forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOC's forecast earnings growth (40.6% per year) is above the savings rate (1%).

Earnings vs Market: HOC's earnings (40.6% per year) are forecast to grow faster than the UK market (25.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HOC's revenue (15% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: HOC's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOC's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has Hochschild Mining performed over the past 5 years?

61.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOC has a large one-off loss of $46.8M impacting its June 30 2020 financial results.

Growing Profit Margin: HOC's current net profit margins (1.1%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: HOC has become profitable over the past 5 years, growing earnings by 61.8% per year.

Accelerating Growth: HOC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HOC had negative earnings growth (-48.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-23.3%).


Return on Equity

High ROE: HOC's Return on Equity (2%) is considered low.


Next Steps

Financial Health

How is Hochschild Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HOC's short term assets ($323.1M) exceed its short term liabilities ($145.9M).

Long Term Liabilities: HOC's short term assets ($323.1M) do not cover its long term liabilities ($383.5M).


Debt to Equity History and Analysis

Debt Level: HOC's debt to equity ratio (28.2%) is considered satisfactory.

Reducing Debt: HOC's debt to equity ratio has reduced from 63% to 28.2% over the past 5 years.

Debt Coverage: HOC's debt is well covered by operating cash flow (88.6%).

Interest Coverage: HOC's interest payments on its debt are well covered by EBIT (42x coverage).


Balance Sheet


Next Steps

Dividend

What is Hochschild Mining current dividend yield, its reliability and sustainability?

3.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOC's dividend (3.06%) is higher than the bottom 25% of dividend payers in the UK market (1.54%).

High Dividend: HOC's dividend (3.06%) is low compared to the top 25% of dividend payers in the UK market (4.55%).


Stability and Growth of Payments

Stable Dividend: HOC's dividend payments have been volatile in the past 10 years.

Growing Dividend: HOC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (269%), HOC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HOC's dividends in 3 years are forecast to be well covered by earnings (15.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.2yrs

Average management tenure


CEO

Ignacio Bustamante (48 yo)

10.75yrs

Tenure

US$3,910,000

Compensation

Mr. Ignacio Bustamante has been the Chief Executive Officer at Hochschild Mining PLC since April 2010. Mr. Bustamante has been President and Chief Executive Officer of Andina Minerals Inc. since January 14...


CEO Compensation Analysis

Compensation vs Market: Ignacio's total compensation ($USD3.91M) is above average for companies of similar size in the UK market ($USD1.76M).

Compensation vs Earnings: Ignacio's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ignacio Bustamante
CEO & Director10.75yrsUS$3.91m0.35%
$ 3.4m
Ramón Barúa
Chief Financial Officer10.58yrsno datano data
Eduardo Landin
Chief Operating Officer7.83yrsno datano data
Charles Gordon
Head of Investor Relationsno datano datano data
Jose Palma
Vice President of Legal & Corporate Affairsno datano datano data
Eduardo Villar
Vice President of Human Resourcesno datano datano data
Isac Burstein
Vice President of Exploration and Business Development6.92yrsno datano data
Eduardo Noriega
Head of Financeno datano datano data
Oscar Garcia
Vice President of Brownfield Exploration2yrsno datano data
Raj Bhasin
Company Secretary14yrsno datano data

9.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HOC's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ignacio Bustamante
CEO & Director10.75yrsUS$3.91m0.35%
$ 3.4m
Eileen Kamerick
Independent Non-Executive Director4.17yrsUS$108.00kno data
Jorge Born
Independent Non-Executive Director14.25yrsUS$90.00kno data
Emani Sarma
Independent Non-Executive Director4yrsUS$90.00k0.0029%
$ 28.9k
Graham Birch
Independent Non-Executive Director9.5yrsUS$90.00k0.0066%
$ 65.0k
Dionisio Romero Paoletti
Non-Executive Director3yrsUS$90.00kno data
Michael Rawlinson
Senior Independent Director3yrsUS$126.00kno data
Eduardo Hochschild Beeck
Non-Executive Chairman15yrsUS$1.05m38.32%
$ 379.0m
Jill Gardiner
Independent Non-Executive Director0.42yrno datano data

4.2yrs

Average Tenure

57yo

Average Age

Experienced Board: HOC's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HOC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hochschild Mining plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hochschild Mining plc
  • Ticker: HOC
  • Exchange: LSE
  • Founded: 1911
  • Industry: Silver
  • Sector: Materials
  • Market Cap: UK£989.210m
  • Shares outstanding: 513.88m
  • Website: https://www.hochschildmining.com

Number of Employees


Location

  • Hochschild Mining plc
  • 17 Cavendish Square
  • London
  • Greater London
  • W1G 0PH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOCLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2006
HCHD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2006
H3MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2006
HOCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2006

Biography

Hochschild Mining plc, a precious metals company, explores for, mines, processes, and sells gold and silver in the Americas. It also offers doré and concentrates. The company holds a 100% interests in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 02:03
End of Day Share Price2021/01/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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 here.