LONDON (ShareCast) - (Sharecast News) - Canaccord Genuity has hiked its target price for Hochschild Mining by 16% on the back of last week's strong first-half production report and improving pricing outlook.
Hochschild produced 83,034 of gold equivalent ounces (oz AuEq) in the second quarter, ahead of Canaccord's 78,000 estimate, which the broker said "lays the groundwork for an even stronger 2H24".

Canaccord said the main differential was better-than-expected output from Hochschild's flagship gold and silver mine in southern Peru, Inmaculada, and the Mara Rosa gold mine in Brazil.

The broker has lifted its 2024 and 2025 production forecasts by 4% to 343,000oz and 367,000oz AuEq, respectively. Meanwhile, gold price forecasts for the next two years have risen by 3% and 4%, while 14% and 19% upwards revisions have been made for silver, respectively.

Canaccord has maintained a 'buy' rating on the stock and lifted its target price for the shares from 190p to 220p, which implies 27% potential upside.

"We see the recent share price consolidation as another opportunity to build positions in HOC."

Shares were up 2.8% at 179p by 1008 BST.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE