Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The most impressive advance in the stock market this year is a little-known Peruvian miner that rode the comeback in silver.
Hochschild Mining PLC, which operates three mines in Peru and one in Argentina, has soared 460 per cent in 2016, beating every other company in the Bloomberg world index of 5,125 stocks.
Higher silver prices, new production from its flagship Inmaculada mine in Peru and the weakening Argentine peso have made the stock a favourite for investors. Hochschild has cut back on debt and is expected to report its first profit after three years of losses.
