Hochschild Mining (HOC) H1 2025 earnings summary

Executive summary

• Produced 161,597 ounces of gold equivalent in H1 2025, up 6% year-over-year, with revenue of $520 million and adjusted EBITDA of $225 million, a 27% increase from 2024.

• Interim dividend of $5.1 million (1cps) announced; cash position at $110 million and net debt at $202 million as of June 30, 2025.

• Mara Rosa mine turnaround underway after operational challenges; management transition and reorganization completed, plant restarted.

• Strong ESG performance, including improved safety, environmental metrics, and local workforce engagement; joined UN Global Compact and achieved DNV Level 8 certification.

Financial highlights

• Revenue reached $520 million, up 33% year-over-year, driven by higher gold and silver prices and increased production.

• Adjusted EBITDA was $224.5 million, up from $177.1 million in H1 2024; net profit was $66.5 million, with EPS at $0.12.

• All-in sustaining cost (AISC) was $1,914/oz; net debt/EBITDA improved to 0.4x.

• Exceptional item: $30.8 million reversal of Volcan impairment.

• Operating cash flow was $153.8 million; capital expenditure totaled $107 million in H1 2025.

Outlook and guidance

• 2025 production guidance revised to 291,000–319,000 ounces of gold equivalent.

• Mara Rosa full-year production guidance reduced to 35,000–45,000 ounces due to operational issues, with improvements expected in 2026.

• Attributable AISC guidance raised to $1,980–$2,080/oz due to cost pressures and lower output.

• Monte do Carmo project decision expected after completion of engineering and studies in 2026.

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