Hochschild Mining (HOC) H1 2026 earnings summary

Executive summary

• Achieved record H1 2026 results with revenue up 62% to $844.4 million and adjusted EBITDA up 119% to $491.5 million, driven by higher gold and silver prices and operational improvements.

• Net profit rose 157% to $237 million, with EPS up 208% to $0.37 compared to H1 2025.

• Interim dividend increased 300% to $0.04 per share ($21 million), with a net cash position of $51 million at period end.

• Strong operational recovery and performance in Peru, Brazil, and Argentina, with key projects advancing.

• Produced over 150,000 oz gold equivalent in H1; full-year production guidance maintained at 300,000–328,000 GEO.

Financial highlights

• Gross revenue up 63% to $859.6 million, with gold revenue at $551.9 million and silver at $307.4 million.

• Adjusted EBITDA margin reached 58%; free cash flow was $156 million and cash balance $309 million.

• Basic EPS increased to $0.37; profit before income tax rose to $365.8 million.

• Total cost of sales up 11% due to higher tonnage, production costs, and inflationary pressures.

• Paid $129 million in taxes, with $70 million related to prior year regularization; effective tax rate 35%.

Outlook and guidance

• 2026 production guidance reiterated at 300,000–328,000 gold equivalent ounces; AISC guidance revised to $2,380–$2,500/oz.

• CapEx guidance maintained at $210–$225 million for the year.

• Mara Rosa expected to stabilize at ~80,000 oz/year; Royropata production targeted for 2028 at over 100,000 oz/year.

• Monte do Carmo FID anticipated by year-end, with first production targeted for end of 2028.

• Metal split for 2026: 73% gold, 27% silver.