Hochschild Mining (LON: HOC) has been initiated with an “Outperform” rating by Scotiabank, which set a price target of 350p for the precious metals miner’s shares in a recent note.
Scotiabank's analysts believe Hochschild possesses “one of the most attractive growth profiles” among its covered peers.
The bank told investors that it forecasts that Hochschild's production, on a gold-equivalent (AuEq) basis, will expand at a Compound Annual Growth Rate (CAGR) of 10.7% from 2023 to 2028.
This outperforms the 4.8% average projected for its competitors. The investment bank anticipates that this robust growth will allow Hochschild to “graduate from the small to intermediate producer’s group.”
Key to the outlook are Hochschild's development projects. Despite a temporary operational setback at the Mara Rosa mine in Brazil, Scotiabank expects the “Royropata project in Peru and the Monte do Carmo project in Brazil to support further growth.”
The firm projects that these projects will help the company reach 555,000 ounces (AuEq) by 2030, even factoring in the anticipated depletion of the San Jose mine in Argentina by 2029.
The strong pipeline of projects underpins Scotiabank's conviction in Hochschild's long-term growth trajectory.
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