FTSE-250 listed Hochschild Mining has had a good start back after the long weekend break with the market responding well to news that the company had completed the sale of its Crespo project in Southern Peru. Hochschild will receive $15m in the deal, plus royalties of 1.5% for the duration of the project. This has propelled the stock to levels not seen in almost two years, with shares trading 4% higher an hour into the day.
The Alaskan focused oil exploration company saw its shares shoot higher in early Tuesday trade following news that it had confirmed a light oil discovery during testing at its Hickory-1 well. This is noted as being the first successful flow of oil to the surface achieved at the company’s Alaska projects, with further testing now underway, focusing on an already proven reserve. The stock had jumped by almost 30% in early trade.
Investors were quick to sell Belluscura stock this morning in the wake of a trading update. Production delays mean that the business won’t become cashflow positive until Q1 2025, whilst FY24 EBITDA will be lower than forecast. However, with no indication that management will need to undertake further fund raising – presumably on the basis that there’s no major slippage in the schedule from here – the question is arguably whether the 45% sell off perhaps looks a little overdone.
Headlines we expect on Wednesday
Hilton Food Group Final Results
This time last year Revenue £3.85bn, Operating profit £54m, FY dividend 29.7p
Pantheon Infrastructure Final Results
This time last year NAV £475m, FY dividend 2p
