HCHDF - Hochschild Mining: Discounted Valuation Justified Relative To Peers
- Hochschild Mining released its Q4 and FY2020 results last week and reported quarterly production of 94,000~ ounces, down 13% year-over-year.
- On a full-year basis, production declined significantly due to COVID-19 related shutdowns and restrictions, with total gold-equivalent output sliding by nearly 40% year-over-year.
- While FY2021 is expected to be much better with operations back near full capacity, the guidance is quite disappointing, reflecting a massive drop from FY2019 levels.
- At a share price of US$3.50, I do not see much value here relative to peers, and I continue to believe there are better ways to play the silver producer space.
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Hochschild Mining: Discounted Valuation Justified Relative To Peers