Hochschild Mining PLC

Hochschild Mining PLC (LSE: HOC) is a UK-based precious metals producer listed on FTSE 250. The company is engaged in the exploration, mining, processing, and sale of gold and silver. Its current operations include the Inmaculada mine in southern Peru, the San Jose mine in Argentina, and the Mara Rosa mine in Brazil. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 368.00

• Resistance near Current levels: HOC’s stock price has breached Resistance (R1) which was stated in the previous report on 27 October 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.
• Lower Production and Operational Disruptions Weigh on Output - Attributable gold equivalent production for Q3 2025 dropped to 70,308 ounces, down sharply from 81,660 ounces in Q2 2025 and 96,330 ounces in Q3 2024. The decline was largely due to ongoing operational issues at Mara Rosa, including a four-week suspension of the processing and filtering plants, and lower-than-expected grades at Inmaculada due to mine sequencing constraints. These setbacks highlight continued operational fragility and suggest that achieving the upper end of the revised full-year guidance may be challenging without a strong recovery in Q4.
• Rising Net Debt and Reduced Cash Position Signal Financial Strain - The Company’s net debt increased significantly from $202 million to $246 million in Q3 2025, while cash reserves fell to $92 million from $110 million at the end of Q2. This deterioration in balance sheet strength reflects temporary working capital pressures in Argentina, the $13 million repurchase of the Monte do Carmo streaming agreement, and turnaround-related expenses at Mara Rosa. Although the current net debt/EBITDA ratio remains modest at 0.5x, the declining liquidity trend and increased leverage could limit financial flexibility if production ramp-up or metal prices underperform expectations..

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

 HOC Daily Technical Chart, Source - Refinitiv 

Conclusion

HOC is expected to trade at a discount, considering Rising Net Debt & Reduced Cash Position and fears of global slowdown. For conducting the valuation, the following peers have been considered - Fresnillo PLC (LSE: FRES), Anglo American PLC (LSE: AAL) and others.

Given its current trading levels, Lower Production and Operational Disruptions, recent rally in the share price, relative valuation, 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 368.00 as of 11 November 2025 at 09:25 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 11 November 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.