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Hochschild: silver linings playbook

This miner offers exposure to a possible correction in the gold-silver ratio
February 1, 2018

While this is a buy tip for shares in Hochschild Mining (HOC), a FTSE 250 miner with seven producing or development projects in Peru, Chile and Argentina, the reasoning behind our call could equally apply to a leveraged silver exchange-traded product. That’s because we think 2018 will be a good year for the grey metal, and that equity investors perusing precious metals stocks should modify their pick accordingly.

IC TIP: Buy at 232p
Tip style
Speculative
Risk rating
High
Timescale
Short Term
Bull points

Silver fundamentals improving

Improving balance sheet

Strong recent drilling results

Fresnillo concerns

Bear points

High rating

Cost concerns

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