Gold miner Hochschild is on the radar again this morning but today it’s significant losses for the stock, with the overnight collapse in gold prices only being part of the story. The company also produced a Q1 production update and investors appear to have focused in on a series of issues in Brazil which hit output over the first quarter, and this is a theme that appears likely to persist in the near term. Despite confidence that the second half of the year will be better and management reaffirming full year guidance, the Hochschild share price was off 13% in early trade, significantly underperforming sector peers.
Speciality chemicals company Croda published a Q1 sales update this morning, noting revenues up 8% and good progress having been made in executing plans to improve reduce costs and margins. The price/mix headwinds of 2024 are abating and the strong start seen for the new financial year means the company has the confidence to reiterate full year guidance. The Croda share price was up almost 8% shortly after the opening bell.
Engineering defence contractors Babcock published their post close full year trading update noting a strong performance with 11% revenue growth expected, operating profits up 17% and net debt down to £373m from £435m a year ago. Recent contract wins are summarised and management note that in an uncertain world, momentum for the business continues to build. Full year results will be published in late June and the Babcock share price was as much as 4% higher although some of those gains were handed back in early trade.
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Response to Media Speculation & Financial Position - - Argentex Group (AGFX)
