Hochschild Mining Shares Downgraded – Here’s Why

Hochschild Mining (LON: HOC) shares were downgraded by JPMorgan on Monday, with the bank citing rising cost pressures and growing risks to the miner’s medium-term outlook. 

The stock has climbed more than 13 percent since the start of the year and is up roughly 154 percent over the past 12 months, but analysts now expect the rally to lose momentum.

JPMorgan’s Patrick Jones cut the rating to Neutral from Overweight and lifted the price target to 670 pence from 600 pence. 

The bank also placed the shares on its “Negative Catalyst Watch” ahead of Hochschild’s fourth-quarter and full-year results. The move is part of a more cautious stance toward the gold-miner sector as operating expenses continue to rise.

Jones pointed to “creeping cost inflation” as a key concern, with higher all-in sustaining costs and greater capital expenditure expected to pressure earnings. 

JPMorgan forecasts 2025 EBITDA of about $513 million, slightly below consensus estimates, and sees net debt significantly higher than market expectations.

The bank also projects 2026 production guidance to fall short of analyst forecasts, with silver output estimated at around 8.3 million ounces and gold production at roughly 249,000 ounces.

JPMorgan added that uncertainty around the Royropata restart and the Monte do Carmo development timeline further clouds the outlook.

The downgrade follows a sharp multiyear rally in the shares, but analysts now see limited upside as investors await clearer signs of cost control and project delivery.