This report is the updated version of the report published on December 23, 2025, 11:00 AM GMT.

Hochschild Mining PLC (LSE: HOC)

Hochschild Mining PLC (LSE: HOC) is a UK listed precious metals company with over 50 years of experience, focused on exploring, mining, and selling silver and gold from underground veins in Peru, Argentina, and Brazil. It is known for responsible operations, a strong technical team, and delivering sustainable value through innovation and efficient production. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 505.00

• Resistance near Current levels: HOC’s stock price has almost reached Resistance (R1) which was stated in the previous report on 17 December 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Decline in Mara Rosa's Production - Despite the gradual ramp-up of operations, Mara Rosa's gold production for Q3 2025 was significantly lower compared to the same period in 2024. The mine’s output dropped from 23,752 ounces of gold in Q3 2024 to just 4,474 ounces in Q3 2025, primarily due to the ongoing turnaround plan, which included a four-week suspension of the processing plant. This setback highlights the continued challenges at Mara Rosa, which may impact the company’s overall performance in the short term.
• Increase in Net Debt - Hochschild’s net debt increased substantially from $202 million in Q2 2025 to $246 million in Q3 2025. This rise is attributed to several factors, including a temporary working capital increase in Argentina and costs related to the repurchase of the Monte do Carmo streaming agreement. The increase in debt, coupled with lower production rates at Mara Rosa, puts additional pressure on the company’s financial position, raising concerns about its ability to generate sufficient cash flow in the near term.

Share Price Chart  

Valuation Methodology: Price/ Earnings Approach

Conclusion

HOC is expected to trade at a discount, considering Increase in Net Debt and fears of global slowdown. For conducting the valuation, the following peers have been considered - Fresnillo PLC (LSE: FRES), Antofagasta PLC (LSE: ANTO) and others.

Given its current trading levels, decline in Mara Rosa's Production, recent rally in the share price, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 505.00 as of 23 December 2025 at 10:30 AM GMT.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 23 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.