- Hochschild Mining
- 17 April 2025 16:09:51
Source: Sharecast
Canaccord Genuity said that with the gold price now up over 25% year-to-date, it has now passed through its most recent commodity price revisions.
"With our gold price revisions up 10-13% from 2025 to 2030 and our LT price up another 11%, we see substantial upside for HOC. We have increased our HOC 2025 and 2026 EBITDA forecasts by 17% and 15%, respectively. However, with the current spot price over US$3,300/oz, there is even further potential upside to our 2025 gold price forecast of US$3,024/oz," said Canaccord Genuity.
The Canadian bank, which has a 'buy' rating on the stock, believes the excess cash flows generated on the back of rising precious metals prices will leave Hochschild's balance sheet in a strong position by year-end 2025, with only $12.0m of net debt now forecast.
With Hochschild now forecast to move into a net cash position in early 2026 on its numbers, Canaccord sees excess cash flow both for potential early-stage funding of its MDC project in Brazil and further shareholder returns.
Reporting by Iain Gilbert at Sharecast.com