Hochschild Mining shares rose by 5% after selling its Arcata mine and Azuca project to Sierra Caraz. The sale is part of the company’s strategy to concentrate on its main assets in Peru and operations in Brazil and Argentina. Arcata was operational from 1964 to 2019, while Azuca is also focused on silver production.
Hochschild Mining PLC experienced a notable increase of 5% in its share price during early trading on Wednesday. This uptick followed the announcement of the successful sale of its former Arcata mine and the Azuca project to Sierra Caraz, though the financial details of the transaction remain undisclosed.
The divestment aligns with Hochschild’s strategic focus on its principal assets located in Peru, specifically the Inmaculada and the Pallancata-Royropata project, in addition to its operational foothold in Brazil and Argentina. The Arcata mine, known for its silver production, was operational from 1964 until it was placed under care and maintenance in 2019. Conversely, the Azuca project is also concentrated on silver extraction and is situated approximately 60 kilometers from Arcata.
The buyer, Sierra Caraz, is affiliated with Sierra Sun Precious Metals, a private enterprise actively engaged in mining operations within Peru. Following the news of the asset sale, Hochschild’s share price rose by 9.44 pence, reaching a current value of 193.44 pence.
In summary, Hochschild Mining’s decision to divest from its non-core assets, including the Arcata mine and Azuca project, has facilitated a 5% increase in its share value. This strategic move reflects the company’s commitment to concentrating on its key mining operations in Peru and expanding its presence in South America. The successful sale to Sierra Caraz marks a significant step in Hochschild’s restructuring efforts within the competitive mining sector.
Original Source: www.proactiveinvestors.co.uk
