Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Hochschild Mining plc
  6. News
  7. Summary
    HOC   GB00B1FW5029


Delayed Quote. Delayed London Stock Exchange - 01/21 11:38:53 am
118.1 GBX   -7.23%
01/20FTSE Flat, Entain Gains After 4Q Gaming Revenue Rises
01/20UK Politics Could Start to Rock Buoyant Pound
01/20FTSE 100 Edges Into Red; Oil Sector Lower on Oil Price Drop
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Peru miners, govt carry out "productive" talks following Hochschild stock collapse

11/22/2021 | 04:13am EST

LIMA, Nov 22 (Reuters) - Shares of Hochschild Mining collapsed 27% on Monday after Peru's government ruled out https://www.reuters.com/world/americas/peru-pm-sparks-controversy-with-mining-sector-by-ruling-out-timeline-extensions-2021-11-20 any operational extensions for its flagship Inmaculada silver mine, but mining executives and government officials also said they had had a "productive" late night meeting to ease tensions.

Mining is key to the economy of Peru, which is the world's No. 2 producer of copper and silver.

Peru's prime minister, Mirtha Vasquez, said on Friday that a group of four mines - including two owned by Hochschild - would not be granted any further operational extensions due to environmental concerns and would instead close down in the near future.

"We haven't discussed anything specific," said Raul Jacob, who heads the National Society of Mining, Energy and Oil, following a meeting with Vasquez. "I do want to say there was very good open dialog, very productive."

Vasquez agreed "dialog had been very productive."

"We have expressed our will to respect the rule of law (and) private investment," she told reporters.

The original announcement triggered a furious reaction from mining executives over the weekend and caused Hochschild's shares to plummet as much as 57%, before paring losses for a 27% drop, the worst for the London-listed miner.

Vasquez's new statement follows remarks from Peru's vice minister of mines, who appeared to backtrack on the closure decision in an interview on Sunday night.

"If (the mining companies) have all the mechanisms to present an extension, they can do so, the door is not closed," Chavez said.

According to a government statement, Vasquez's initial announcement said the mines would be closed as soon as possible on environmental concerns, with "no extensions, whether for exploitation, exploration or even shutdown."

Peru is currently in the process of proposing higher taxes on miners, and socialist President Pedro Castillo has said the additional revenue will be crucial to fund social programs.

The announcement triggered broader remarks about the sector.

"No information suggests that the government will close other mines but we cannot rule out it will go after large(r) mines," Bank of America said in a note, in which it also downgraded Hochschild from "buy" to "underperform."

Hochschild said it had not received any formal communication from Peru's government on the matter and had found out through the press and social media.

"She’s just gone rogue. That arm of the government doesn’t have the right to do what it did," said a source with direct knowledge of company discussions. "We'll take the arbitration route if it comes to that - most definitely."

In a statement, Hochschild Chief Executive Officer Ignacio Bustamante said the company was prepared to enter "into a dialog with the government in order to resolve any misunderstandings."

Any ruling in Peru would also hurt Hochschild's Pallancata mine.

The Inmaculada mine is the company's biggest, representing over 60% of its cash flow, according to its 2020 annual report. Both mines account for the bulk of the company's production.

(Reporting by Marco Aquino in Lima and Pushkala Aripaka in Bengaluru Additional reporting by Zandi Shabalala in London and Marcelo Rochabrun in Lima Editing by Bernadette Baum, Matthew Lewis and Sonya Hepinstall)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
HOCHSCHILD MINING PLC -7.23% 118.1 Delayed Quote.-9.15%
VOLCAN COMPAÑÍA MINERA S.A.A. 1.37% 0.74 End-of-day quote.23.33%
01/20FTSE Flat, Entain Gains After 4Q Gaming Revenue Rises
01/20UK Politics Could Start to Rock Buoyant Pound
01/20FTSE 100 Edges Into Red; Oil Sector Lower on Oil Price Drop
01/20FTSE 100 Seen Tracking Gains in Asia After China Cuts Rates
01/20Hochschild Mining Maintains Attributable Gold Equivalent Output in Q4 2021
01/20Hochschild Mining plc Provides Production Guidance for the Year 2022
01/20Hochschild Mining plc Reports Group Production and Sales Results for the Fourth Quarter..
01/07Berenberg Raises Hochschild Mining PT, Keeps Hold Rating
2021Hochschild on collision course with Peru communities over mine closures after meeting
2021Exclusive-Hochschild sees Peru's approval early next year for silver mine extension
More news
Analyst Recommendations on HOCHSCHILD MINING PLC
More recommendations
Financials (USD)
Sales 2021 813 M - -
Net income 2021 76,7 M - -
Net cash 2021 83,6 M - -
P/E ratio 2021 10,5x
Yield 2021 2,93%
Capitalization 823 M 824 M -
EV / Sales 2021 0,91x
EV / Sales 2022 0,94x
Nbr of Employees 3 430
Free-Float 61,3%
Duration : Period :
Hochschild Mining plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HOCHSCHILD MINING PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 9
Last Close Price 1,60 $
Average target price 2,40 $
Spread / Average Target 49,7%
EPS Revisions
Managers and Directors
Ignacio Jose Bustamante Romero Chief Executive Officer & Executive Director
Eduardo Hochschild Beeck Non-Executive Chairman & President
Eduardo Noriega Chief Financial Officer
Eduardo Landin Navarro Chief Operating Officer
Jorge Born Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
BHP GROUP10.12%166 509
RIO TINTO PLC11.55%121 343
GLENCORE PLC9.36%72 779
GRUPO MÉXICO, S.A.B. DE C.V.1.08%34 349