MARKET REPORT: Hochschild Mining sparkles as Peru backtracks on plans to close the company’s flagship silver mines

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Hochschild Mining boomed after Peru backed down on the company’s plan to close its major silver mines.

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Last Friday Peru’s Prime Minister Mirtha Vasquez said the government would take steps to close and deny significant permit extensions for several mines on environmental grounds – including two Hochschild’s.

Shares of the mining conglomerate crashed on Monday, falling in value at one point.


Revived: Hochschild’s stock was turbocharged yesterday when Peru said it wanted to allow companies to request extensions and changes to existing mining permits

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But after several days of solid bounce, Hochschild’s stock jumped yesterday when the chair of Peru’s council of ministers said it intended to uphold the rule of law and urged companies to request extensions and changes to existing mining permits. allows for.

It was exactly what investors wanted to hear, although analysts cautioned that all of this may not be done yet.

Analysts at Peel Hunt said they saw the comments as a ‘partial explanation’. Analysts said: ‘The real issue for us is “if” the government will accept those requests and “at what speed”. We still see the potential for the government to squeeze out miners, while we also recognize that selective shutdown as a comprehensive policy was never a realistic option.’

Stock Watch – Eco Animal Health

Livestock drug maker Eco Animal Health’s profits have been hit by a fall in pig prices in China.

The group said its half-year revenue fell 9 percent to 38.5 million pounds and profits from 4.8 million pounds to 900,000 pounds, mainly because of the decline in pork prices in China, because of a drop in demand for the antibiotic Avalosin, the group said. The volatile market in China – which accounts for more than 40 percent of Eco Animal Health’s business – has affected several other companies.

But Eco Animal Health also kept a long-term project from being put on the back-burner. Shares in the Surrey-based group fell 20.2 percent, or 40.5p, to 160p.

Shareholders were convinced enough to send Hochschild up 14.3 percent, or 17.4p to 139.4p.

It’s gained a lot since Monday’s nose – though it’s still somewhat off the 165p it was last Friday’s close.

As analysts are now pointing out, this fall could lead to Hochschild losing his place in the FTSE 250.

Index overseer FTSE Russell will use the companies’ market prices on Tuesday to determine which firms will be in the FTSE 100 and 250 — and which will be booted. Darktrace (1.9 percent, or 9.4p, down from 479.6p) is one of the favorites to lose its place in the Footsy shuffle, which goes into effect in December.

Meanwhile, chemical maker Johnson Matthey’s decision to exit the electric battery market could also give it a place in the blue-chip index. Johnson Matthey was in the flat last night at 2135.

The index had a silent but ultimately positive day with the FTSE 100 rising 0.33 per cent or 24.05 points at 7310.37 and the mid-cap FTSE 250 up 0.49 per cent or 112.90 points at 23279.96.

The owner of Cake Box (7.4 percent, or 30p, down from 375p) and his wife will pay £10.5 million after selling their stake in the egg-free bakery chain.

Sukh Chamdal and his wife Santosh sold 3 million shares in the group ‘in response to investor demand’, although they still own a 25 percent stake worth around £36 million.

The pub and restaurant group – which owns Harvester and All Bar One – grew 3.6 percent, or 8.4p, at 244.4p after Mitchell & Butler said there was a significant improvement in sales in August and September and 2.7 from the same period in 2019. pc was ahead. ,

Mothercare in the retail sector (up 3.1 percent, or 0.58p, to 19.4p) returned to profits in the first half of the fiscal year after implementing measures to improve profits.

The high street retailer booked a profit of £3.6 million in the six months to September 25, bouncing back from a loss of £13.2 million a year earlier.

Crowne Plaza and Holiday Inn-owner Intercontinental Hotels Group (up 2.8 percent, or 135p, to 5042p) received a rare double upgrade courtesy of Jefferies, also highlighting Premier Inn-owner Whitbread (up 2.8 percent, or 84p) to be done. 3108p) in an upbeat break note as another top pick in the leisure sector. The pair were one of Futsey’s top risers.

Airport services group John Menzies grew 2 percent, or 5.5p, to 288p after the expansion of a long-standing arrangement with EasyJet at 21 airports in Europe.

Under the renewed contract, Menzies will perform cabin cleaning and de-icing tasks for the carrier, with whom he has worked for 15 years.


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