HCHDF - Hochschild Mining: A Better Quarter But Output Well Below 2019 Levels
- Hochschild Mining released its Q2 production results last month, reporting quarterly production of ~89,400 gold-equivalent ounces, a sharp increase from the year-ago period.
- However, while output was up relative to 2020, this was an easy year-over-year comp due to COVID-19 related headwinds, so the increase was not meaningful.
- While ultimate ramifications are unclear, the election of Pedro Castillo in Peru whose intent on keeping more profits in Peru has weakened the Hochschild investment thesis further.
- With Hochschild being a high-cost miner in relatively unfavorable jurisdictions with added risk related to the recent election, I continue to see the stock as an Avoid.
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Hochschild Mining: A Better Quarter, But Output Well Below 2019 Levels