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Fresnillo - Mexican gold and silver miner

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Silver price went through $14 so you might think that would be helping Fresnillo, but why not Hochschild Mining?

 

This could explain it, if so, once resolved HOC could move up quickly.

 

Hochschild Mining PLC (HOC.LN) said Thursday that the San Jose mine in Argentina, in which it has a 51% interest, has stopped production due to a dispute among labor unions over employee affiliation, but this will have no impact on its 2009 production target.

 

http://www.tradingmarkets.com/.site/news/S...20News/2326876/

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Does appear to be selling off again today, now around 600.

Now around 700p! Market gravity cannot hold this one down.

 

Hochschild Mining seems to have joined the party today, the market catching up seems to like the news below for once, currently up around 11% on the day.

 

At the Company's Annual General Meeting to be held in London today, Eduardo Hochschild, Executive Chairman of Hochschild Mining plc ("Hochschild") will comment:

 

"I am pleased that, despite difficult conditions in 2008, we once again achieved all our operational targets, completing expansions at three of our six mines and increasing capacity by 29%. The Board remains committed to maximising long term shareholder returns whilst ensuring that the business is adequately funded to further its growth strategy. Therefore, it has proposed a dividend of $0.02 per share for the six months to December 2008, representing a full year dividend of $0.04 per share.

 

We are pleased with our operational performance in 2009 so far, with production in the first quarter up 16% year-on-year to 6.7 million attributable silver equivalent ounces and remain confident that we will achieve our full year production target of 28 million attributable silver equivalent ounces. We are focused on producing profitable ounces and diligently controlling costs. We have already made good progress in this area and expect 2009 unit cost per tonne to be at least 5% lower than 2008.

 

http://www.mineweb.com/mineweb/view/minewe...7&sn=Detail

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Now around 700p! Market gravity cannot hold this one down.

 

Hochschild Mining seems to have joined the party today, the market catching up seems to like the news below for once, currently up around 11% on the day.

Maybe their news is better than expected and their brokers have leaked the news to their mates in the city.

 

Just a wild guess - havent checked the results!

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Maybe their news is better than expected and their brokers have leaked the news to their mates in the city.

 

Just a wild guess - havent checked the results!

Maybe the City has just woken up to the fact that it mines silver and the price of the metal has been going up! Difficult to justify the constant rise of Fresnillo while Hochschild just got left behind. There had to be re-rating one way or the other at some stage, either Fresnillo was going to fall, or Hochschild would rise. For now, they are still speculating on the upside for the big UK silver miners.

 

Hochschild Mining (HOC) 255.00p +13.33%

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HOC now around 290, up around 13% today so far. City seems to have finally woken up to it.

 

Meanwhile, Fresnillo not invited to the party today, 688.5p down 18 today on the back of good news ( buy on the rumour, sell on the news?).

 

Fresnillo said attributable silver production reached record levels in 2008; silver resources increased to 1.1 billion ounces from 837 million ounces, and gold resources reached 12.0 million ounces from 9.5 million ounces. EBITDA rose 21% in the year.

 

The company said EBITDA rose 21% in the year, while operating profit increased by 13.4% to $267m.

 

Net profit was $152m, which resulted in earnings per share of 18.6 cents, enabling a final dividend of 7.7 cents per share.

 

Fresnillo said it had a strong start to 2009, with silver production up 9% on last year and stable gold production. In US dollar terms, costs are declining compared to last year due to a higher exchange rate, lower input costs and our ongoing cost control programme.

 

'This year we are expecting the ongoing operational efficiencies at our mines to result in a slightly higher level of silver and gold production than that achieved in 2008', the group said.

 

Over the year, Fresnillo invested $800,000 in its sustainability programmes.

 

http://www.moneyam.com/action/news/showArticle?id=3615222

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672.00p -4.3% today.

 

It has followed the silver price up, today being one of the few days when it didn't. It is having a little difficulty staying above 700, but with a P/E now over 60, that doesn't surprise me. I think any immediate future price rise for this will be on the back of silver.

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Miners are well up, but Fresnillo doing nothing today, I wonder if it has finally run out of steam?

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Fresnillo has been running on empty the last month or so, now 455.00p -5.0% today, could be worth keeping an eye on for when it turns up again as we have seen that this one tends to motor, up or down. Trend looking firmly down for now though.

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Fresnillo has surged again since the last post on this thread, now back up to 640/50 area again. Interesting that Hochschild Mining has sold off and got left behind during the Fresnillo move up. The last time this happened Hoch played catchup a month or so later. Wonder if the same will happen again? Hoch currently 265p

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Fresnillo has surged again since the last post on this thread, now back up to 640/50 area again. Interesting that Hochschild Mining has sold off and got left behind during the Fresnillo move up. The last time this happened Hoch played catchup a month or so later. Wonder if the same will happen again? Hoch currently 265p

 

Could be something to do with the 20 million shares being sold by Alberto Beeck.

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Could be something to do with the 20 million shares being sold by Alberto Beeck.

Not the first time he has done that.

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Fresnillo has surged again since the last post on this thread, now back up to 640/50 area again. Interesting that Hochschild Mining has sold off and got left behind during the Fresnillo move up. The last time this happened Hoch played catchup a month or so later. Wonder if the same will happen again? Hoch currently 265p

Interesting how often this happens. Fresnillo has just had a surge past 700 nand now seems to be settling down to sell off again. Today it is currently down 6 points, which is not much, but Hoch is up around 6% on the day but pulling back a little. I find there seems to be a pattern here in that Fresnillo seems to make a big move and Hoch hardly moves, then after Fesnillo settles down, Hoch seems to play catch up. Hochschild Mining currently 323. It's as if the market suddenly remembers that there is more than one big silver miner in the FTSE.

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Well, the Fresnillo/Hoch separation happened again today. Fresnillo + 35p today, Hoch - 4p. Last two days Hoch was on a roll, with Fresnillo lagging. Doesn't really make sense that these two seem to move out of synch with each other, but that's the way they often seem to go.

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Fresnillo up to around 820p today, was around 600 a few weeks ago. P/E now about 70 compared to about 10 when it was a pound 7-8 months ago! Market efficiency farce for you.

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Down around 5% today, now around 750, high for the year of 850. P/E still around 70. Wonder what the fall today tells us about silver? Could just be that it is a short term buying opportunity, although the trend is looking down right now.

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Fresnilo has has another good short term run up.

 

1 hour chart below - looks toppy, about to turn???

 

ScreenShot009.gif

 

But on the daily chart the uptrend looks very positive.

 

ScreenShot010.gif

 

 

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