Hochschild Mining (HOC) H2 2024 earnings summary

Executive summary

• Achieved best results in 13 years, with production up 16% to 347,374 oz and revenue up 37% to $948 million, driven by strong performance at Mara Rosa and Inmaculada.

• Adjusted EBITDA increased by 54% to $421 million, and EPS rose to $0.23, up 1,150% year-over-year.

• Dividend restored at 1.94cps, with a new policy targeting 20–30% of free cash flow and a $10 million minimum annual payout.

• Record 2.8 million oz gold equivalent resource additions in 2024, with over 90% from new discoveries and non-core asset divestments.

• Strategic focus on brownfield expansion, operational efficiency, disciplined capital allocation, and core asset optimization.

Financial highlights

• Revenue reached $947.7 million, up 37% from $693.7 million in 2023, with adjusted EBITDA at $421.4 million.

• Net profit was $133.5 million, and cash at year-end stood at $97 million.

• Net debt reduced to $216 million after repaying $40 million in debt.

• All-in sustaining cost (AISC) was $1,638/oz, mainly due to Mara Rosa ramp-up and inflation in Argentina.

• Exceptional items of $19 million, mainly impairments and investment write-downs.

Outlook and guidance

• 2025 production guidance: 350,000–378,000 oz AuEq, with Mara Rosa entering its first full year of production.

• AISC guidance for 2025: $1,587–1,687/oz; sustaining and development capex $169–180 million.

• Royropata expected to deliver over 100,000 oz/year from 2028, pending permitting.

• Ongoing cost reduction initiatives and strong ESG metrics aim to beat guidance and offset inflationary pressures.

• Exploration and brownfield expansion remain key growth drivers.