Shares of Hochschild Mining Plc (LON: HOC) today fell 6.47% despite the lack of major announcements by the company as investors continue to interpret the miner’s current predicament.
The silver and gold mining company revealed in September that it was going to miss its annual output targets by a wide margin due to the coronavirus lockdown measures in South America, especially in Argentina and Peru.
The company’s stock price did not fall at the time but kept rising despite the disappointing news. However, the stock erased all its gains between 21st and 23rd September and has been trading sideways since then, while attempting to rally.
Today’s decline has occurred at a critical support level and any further drop could trigger a significant selloff once the price drops below the 195p resistance level.
The threat of a second wave of coronavirus infections could lead to further lockdown measures, which could see the miner’s output fall below its latest estimates, compounding its current negative outlook.
Hochschild Mining share price
Hochschild Mining shares today fell 6.47% to trade at 205.2p having ended Friday’s session trading at 219.4p.