HCHDY - Peru moves to shut two Hochschild mines slicing shares by nearly 50%

Hochschild Mining (OTCQX:HCHDF, OTC:HCHDY) share plunge by nearly half in London trading following reports that Peru's government will no longer approve additional mining or exploration activities in the Ayacucho region, where two of the company's mines are located. Peruvian Prime Minister Mirtha Vasquez said over the weekend that four mines, including the two Hochschild mines, that have been the subject of community protests will be closed as soon as possible. Hochschild’s Inmaculada mine has produced 174.7K gold equiv. oz. so far this year, and the Pallancata mine has produced 3.5M silver equiv. oz. Bank of America downgrades shares to Underperform from Buy, saying the two mines comprise 70% of Hochschild's  EBITDA, and "while the company will likely dispute this decision, we don't see equity outperforming until the dispute is resolved." Other companies with exposure to Peru but not the mines involved in the dispute include Southern Copper (NYSE:SCCO), Glencore (OTCPK:GLCNF, OTCPK:GLNCY)

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Peru moves to shut two Hochschild mines, slicing shares by nearly 50%