Hochschild Mining Shares Rise Following Sale of Non-Core Assets in Peru
Hochschild Mining shares rose 5% after announcing the sale of the Arcata mine and the Azuca project to Sierra Caraz. The sale aligns with the firm’s strategy to concentrate on core operations in Peru, Brazil, and Argentina. The Arcata mine had been inactive since 2019, while the Azuca project focuses on silver production.
Hochschild Mining PLC experienced a 5% increase in its shares during early trading on Wednesday, following the completion of its asset sale. The company sold its inactive Arcata mine and the Azuca project to Sierra Caraz for an undisclosed price. This divestiture reflects Hochschild’s strategy to streamline its focus toward its principal mining operations in Peru, including the Inmaculada mine and the Pallancata-Royropata project, as well as its ventures in Brazil and Argentina.
The Arcata mine, previously recognized for its silver production, operated from 1964 until 2019 before entering care and maintenance. The Azuca project, located 60 kilometers from Arcata, also targets silver extraction. Sierra Caraz, the acquiring company, has ties to Sierra Sun Precious Metals, a private entity involved in mining activities in Peru. Following these developments, Hochschild shares were trading at 193.44 pence, reflecting an increase of 9.44 pence.
The sale of non-core assets by Hochschild Mining underscores the company’s commitment to focusing on its primary operations in Peru and enhancing its portfolio. By offloading the Arcata mine and Azuca project, Hochschild aims to strengthen its strategic position in key mining areas while potentially benefiting from the increased stock value. The positive market response indicates investor confidence in this strategic direction.
Original Source: www.proactiveinvestors.co.uk
