Hochschild Mining (HOC) H1 2024 earnings summary

Executive summary

• Revenue increased 25% year-over-year to $392 million, driven by higher gold and silver prices, increased production, and the ramp-up at Mara Rosa and Inmaculada mines.

• Adjusted EBITDA rose 79% to $178 million, reflecting improved production, cost controls, and margin expansion.

• Net profit reached $64 million, reversing a prior year loss, with EPS up 2500% to $0.10.

• All-in sustaining cost (AISC) at $1,510/oz, at the lower end of 2024 guidance.

• Strong ESG performance with improved safety metrics and best environmental results since KPI inception.

Financial highlights

• Gross profit increased 127% to $143.6 million, and operating income rose to $96.3 million from $14.2 million.

• Net profit: $64 million for H1 2024, up from a $4.4 million loss; basic EPS (pre-exceptional) was $0.10.

• Adjusted EBITDA margin improved to 45% from 32% year-over-year.

• Net debt/EBITDA improved to 0.8x from 0.9x; cash balance at $89 million, net debt at $271 million.

• All-in sustaining cash cost: $1,510/oz, at the lower end of guidance.

Outlook and guidance

• 2024 production guidance reaffirmed at 340,000–375,000 gold equivalent ounces.

• AISC expected to decline to $1,300–$1,400/oz in 2025 and $1,100–$1,200/oz in 2026.

• Mara Rosa production guidance to be updated at Q3 results due to ramp-up delays.

• Board to reevaluate capital return policy at full year results in early 2025.

• Royropata project expected to deliver 100,000 oz+ per year from 2028.