Hochschild Mining shares rose 5% after selling the Arcata mine and Azuca project to Sierra Caraz. This decision aligns with the company’s strategy to concentrate on its key assets in Peru, Brazil, and Argentina. The Arcata mine was previously operational until 2019.
Hochschild Mining PLC experienced a 5% increase in its share price during early trading on Wednesday, following the announcement of the completion of the sale of its former Arcata mine and the Azuca project to Sierra Caraz. The specific financial terms of the transaction remain undisclosed. This strategic divestment is aimed at enabling Hochschild to concentrate on its core assets in Peru, namely the Inmaculada and Pallancata-Royropata projects, alongside its operations in Brazil and Argentina.
The Arcata mine, predominantly a silver extraction site located in Arequipa, Peru, was operational from 1964 until 2019, at which point it entered care and maintenance. Similarly, the Azuca project is another silver-focused asset located approximately 60 kilometers from Arcata. Notably, Sierra Caraz is affiliated with Sierra Sun Precious Metals, a private entity engaged in mining activities within Peru.
During the early trading session, Hochschild’s stock price rose by 9.44 pence, reaching a total of 193.44 pence.
Hochschild Mining’s recent 5% share increase represents a positive market reaction to the strategic sale of non-core assets in Peru. By divesting the Arcata mine and Azuca project, the company aims to consolidate its focus on vital operations in Peru, Brazil, and Argentina, reinforcing its overall business strategy while enhancing investor confidence.
Original Source: www.proactiveinvestors.co.uk
