BofA-Hochschild Mining Gold silver organic growth Buy-20250714

Delivering growth + returns. Bullish gold and silver.

We reiterate our Buy on Hochschild based on: (1) Leverage to gold and silver. We arebullish gold calling it to $4000/oz (+20%) and silver $45/oz (+22%) in 2026E; (2)production growth from Brazilian projects; (3) high exploration potential; and (4)improved cash flow = dividend restart. Our price objective unchanged at GBp 320, stillon 1x P/NPV, based on 2026E NPV. Inexpensive valuation vs peers as Hochschild tradeson c.0.9x vs peers at c.0.9x-2.5x on P/NPV. We maintain our Buy; we like explorationupside from the project pipeline and gold/silver leverage.

Rainy start to year. Mara Rosa guidance downgrade.

At the group’s Mara Rosa mine, we expect production guidance to be revised down andcosts to be revised up in due course. Heavy rains and contractor issues mean that themine only produced c.25koz year-to-date. Plant is currently shut for six weeks while theCEO leads a review. We have previously adjusted our forecast for FY25 and FY26 andbelieve this is well understood by the market. (See report: Heavy rains at Mara Rosa)