Jefferies has increased its price target on Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF, FRA:H3M), the precious metals producer, to 700p from 625p, a 12% rise that implies the same percentage upside from the current share price of 625.50p.
The global investment bank's net asset value estimate rose approximately 10% as its model rolled forward, despite slightly higher cost assumptions.
The uplift partly reflects marking Hochschild's equity investments in Tiernan Gold and Aclara Resources to market, with the investments now valued at more than $300 million in total.
Jefferies expects shares to continue re-rating towards peers as Mara Rosa delivers and key growth projects are sanctioned.
Plant performance at Mara Rosa improved in August, with crushing, milling and filtering each running at 6,300 tonnes per day, up from between 5,500 and 5,800 tonnes per day in July.
Management believes the plant can run at 7,000 tonnes per day or higher in the second half of the year, working towards an annual gold production rate of 80,000 ounces.
Development work continues at the Monte do Carmo project ahead of a potential investment decision by the end of the year, with first production expected in late 2028.
