FTSE 250 movers: Hochschild slumps on cost increases; Trainline skids
By Frank Prenesti
Date: Wednesday 22 Jan 2025
(Sharecast News) - FTSE 250 (MCX) 20,647.60 0.25%
Shares in Hochschild Mining plunged on Wednesday after the South America-focused miner forecast higher production costs due to soaring inflation in Argentina and a slower-than-expected ramp up of operations at its Mara Rosa mine in Brazil.
The company said it expected a 5%-10% increase in all-in sustaining cost for 2024 - above guidance of between $1,510-1,550 per gold equivalent ounce.
Argentina's inflation rate rose to 2.7% from 2.4% a month earlier. Economists have also been concerned about the impact on companies after controversial President Javier Melei's decision to slow the pace of the local currency's devaluation.
The fall in Hochschild's share price of up to 18% in early trade came despite full-year production meeting guidance after a strong final quarter and full contribution from Mara Rosa.
Fourth-quarter attributable production was 98,255 gold equivalent ounces or 8.2 million silver equivalent ounces, slightly stronger than Q3. Overall, 2024 attributable production was 347,374 gold equivalent ounces or 28.8 million silver equivalent ounces.
Hochschild said the results were in line with guidance, partly due to a better-than-forecast performance at the Inmaculada mine in Peru.
Eduardo Landin, Chief Executive Officer said: "The new Mara Rosa mine had a full quarter of operations, and, in Peru, Inmaculada continued to outperform expectations. Additionally, our acquisition of the Monte do Carmo project in Brazil is another significant step forward in our portfolio's development, and we are excited for the low-cost growth opportunity it offers going forward."
Shares in Trainline were sliding on Wednesday morning, even after the UK government committed to a competitive private sector ticket retail market in the rail industry on Wednesday, as part of an update from the Department for Transport (DfT) regarding future online rail ticket retailing.
The DfT confirmed its plans to establish Great British Railways (GBR) as the central online ticket retailer for the rail network once legislation was passed.
It said GBR would consolidate the online presence of individual train operators' ticketing services, while operating alongside private sector retailers in what the government described as an "open and fair" market.
The government reiterated its view that the private sector would remain instrumental in driving growth through innovation and investment, helping to encourage greater use of rail services.
Trainline noted the government's consistent commitment to ensuring a level playing field for independent retailers and an emphasis on fostering a thriving private sector.
It said it believed such an approach would continue to support competition and customer choice within the market.
The government's announcement preceded the expected launch of an industry-wide consultation on the Rail Reform Bill in the coming weeks.
Market Movers
FTSE 250 - Risers
Alpha Group International (ALPH) 2,485.00p 4.41%
Me Group International (MEGP) 212.00p 2.91%
AJ Bell (AJB) 470.00p 2.73%
Burberry Group (BRBY) 1,043.50p 2.71%
Auction Technology Group (ATG) 598.00p 2.57%
IP Group (IPO) 52.30p 2.55%
Softcat (SCT) 1,532.00p 2.47%
Herald Investment Trust (HRI) 2,375.00p 2.37%
Abrdn (ABDN) 151.30p 2.30%
Spectris (SXS) 2,714.00p 2.26%
FTSE 250 - Fallers
Hochschild Mining (HOC) 190.00p -17.03%
Trainline (TRN) 365.60p -6.73%
Oxford Nanopore Technologies (ONT) 149.90p -3.29%
Vistry Group (VTY) 583.50p -2.59%
Indivior (INDV) 968.50p -2.37%
Pennon Group (PNN) 524.50p -2.33%
Safestore Holdings (SAFE) 589.00p -2.00%
Carnival (CCL) 1,891.00p -2.00%
Essentra (ESNT) 119.00p -1.98%
Wetherspoon (J.D.) (JDW) 599.50p -1.96%
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