Hochschild Mining shares rose 5% after selling its Arcata mine and Azuca project to Sierra Caraz. This move aligns with the company’s focus on core assets in Peru, Brazil, and Argentina. The stock price increased to 193.44 pence in early trading.
Hochschild Mining PLC experienced a 5% increase in its share value following the announcement of the successful sale of its former Arcata mine and the Azuca project to Sierra Caraz. The financial details of this transaction have not been disclosed. This divestment is aligned with Hochschild’s strategic intention to concentrate on its principal assets in Peru, specifically the Inmaculada mine and the Pallancata-Royropata project, along with its operations in Brazil and Argentina.
The Arcata mine, recognized for its silver production, operated from 1964 until its closure in 2019 when it was put under care and maintenance. The Azuca project, which is located 60 kilometers from Arcata, is also centered on silver extraction. Sierra Caraz, the acquirer, is associated with Sierra Sun Precious Metals, a private entity engaged in mining operations within Peru.
As a result of the announcement, Hochschild’s stock rose by 9.44 pence, reaching a price of 193.44 pence in early trading on the London Stock Exchange.
In summary, Hochschild Mining’s divestiture of non-core assets, including the Arcata mine and Azuca project, demonstrates its commitment to focusing on key operations in Peru and other countries. The 5% increase in their stock reflects positive market reactions to this strategic shift, which aligns with the company’s long-term objectives.
Original Source: www.proactiveinvestors.co.uk
