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 Brazil, Peru, and Argentina, with robust cash generation and growth 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; adjusted EBITDA margin at 58%; net profit $237 million (+157% YoY).

• Net cash position of $51 million, with $309 million in cash and short-term investments.

• Free cash flow reached $156 million; $129 million in taxes paid, mainly to Peru and Argentina.

• Total cost of sales rose 11% due to higher tonnage, royalties, and inflation.

• Basic EPS increased to $0.37 (H1 2025: $0.12).

Outlook and guidance

• Production guidance for 2026 remains at 300,000–328,000 GEO; AISC guidance revised to $2,380–$2,500/oz.

• Sustaining and development capex guidance maintained at $210–$225 million.

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

• Royropata environmental permit (MEIA) submitted; production start targeted for 2028.

• Metal split: 73% gold, 27% silver.