Not so shiny...

Thursday, Mar 26 2009 by

Hochschild Mining Plc announced disappointing full year results -

  • 42% increase in revenue to $433.8 million
  • Solid financial position with a year end cash balance of $116.1 million
  • It reported a loss attributable to shareholders after tax and exceptional items of $19m for the 12 months ended 31 December 2008 versus a profit of $85.1m a year ago. The numbers were hit by $45m of exceptional items, including an impairment of $34.7m relating to fixed assets at the Selene, Moris and San Felipe operations. The writedown mirrors rival companies in responding to plunging metals prices and a slump in demand. Rio Tinto cut the value of its aluminum unit by $7.9 billion in February.
  • Profit from continuing operations before tax slumped to $9.4m from $116.7m. The group pointed to lower silver prices, the anticipated decline in average grades at Ares and Selene, cost inflation and higher treatment charges.
  • On Monday, the Latin American miner said labour strikes had started at all four of its mines in Peru...  Hochschild is negotiating with local workers and Peruvian labor authorities to reach a resolution regarding workers' claims for greater profit sharing.



As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.

Do you like this Post?
0 thumbs up
0 thumbs down
Share this post with friends

Hochschild Mining plc is a precious metals company with a primary focus on the exploration, mining, processing and sale of silver and gold. It has three operating mines (Ares, Arcata and Pallancata) and a plant (Selene used to treat ore from the Pallancata mine) located in southern Peru, one operating mine (San Jose) located in Argentina and one plant (Moris) located in Mexico. It also has a portfolio of projects located across Peru, Argentina, Mexico and Chile at various stages of development. Its Arcata unit is located in the Department of Arequipa in southern Peru, on a 47,000 hectare site. The San Jose silver-gold mine is located in Argentina, in the Santa Cruz province, south-southwest of Buenos Aires. It covers a total area of 50,491 hectares and consists of 46 contiguous mining concessions totaling 40,499 hectares and an exploration permit covering almost 10,000 hectares. Its 100% owned Pallancata silver/gold property is located in the Department of Ayacucho in southern Peru. more »

Share Price (Full)
-3.0  -3.3%
P/E (fwd)
Yield (fwd)
Mkt Cap (£m)

  Is Hochschild Mining fundamentally strong or weak? Find out More »

2 Posts on this Thread show/hide all

Betasurfer 26th Mar '09 1 of 2

Silver has risen 25% since January but is trading at a wide discount to gold - the ratio is currently at 69 (Gold = 943.9, Silver = 13.7 - Not sure if that means that there's more to come. This article suggests otherwise:

| Link | Share
Betasurfer 26th Mar '09 2 of 2

This is a good, albeit old, summary of the Bull Case for Silver -

I didn't know about the medical applications for silver

Today silver is used in many health-care products. Specifically, the ‘silver bullet’ is used by nearly every hospital in the world to prevent bacterial infections in burn victims and allow the body to restore naturally the burnt tissue. Increasingly, wound dressings and other wound care products incorporate a layer of fabric containing silver for prevention of secondary infections. Surgical gowns and draperies also include silver to prevent microbial transmission. Other medical products containing silver are catheters and stethoscope diaphragms.

| Link | Share

What's your view on this thread? to Comment Now

You are feeling neutral

Use the £ sign in front of a ticker to turn £VOD into Vodafone PLC

You can track all @StockoChat comments via Twitter

Stock Picking Tutorial Centre

Stock Picking Simplified

Stockopedia takes your stock picking to the next level with cutting edge Stock Reports & Screening tools.

Get started
or Take a Tour to find out more.