Hochschild Mining (HOC) H2 2025 earnings summary

Executive summary

• Achieved record financial results in 2025, with revenue up 28% to $1,209m and adjusted EBITDA up 39% to $584m, driven by strong metal prices and operational improvements.

• Net profit rose 50% year-over-year to $200.7m, with EPS at $0.31.

• Produced 311,000 ounces, with flagship mines Inmaculada and San José delivering strong output; Mara Rosa turnaround nearly complete and ramping up to full production in H1 2026.

• Ended the year with $317 million in cash and net debt of $23 million, supporting growth projects and dividend payments.

• Strong ESG performance, with world-class safety (0.97 frequency rate), near-perfect environmental scores, and 100% renewable energy contracts.

Financial highlights

• Revenue exceeded $1.2 billion, attributable net profit reached $159.6 million, and EPS was $0.31, all up year-over-year.

• All-in sustaining cost was $2,138 per gold equivalent ounce, higher than 2024 as guided.

• Cash increased from $97 million to $317 million, driven by strong cash generation at Inmaculada ($315 million) and San José ($162 million).

• Paid $31 million in dividends for the year, in line with the new variable dividend policy.

• Exceptional items netted $47 million, mainly from impairment reversals and hedge mark-to-market losses.

Outlook and guidance

• 2026 production guidance: 300,000–328,000 gold equivalent ounces at AISC of $2,157–2,320/oz.

• Monte do Carmo and Royropata projects on track, with production targeted for 2028; Monte do Carmo economic update expected mid-2026.

• Mara Rosa expected to reach full production in H1 2026, with plant capacity at 2.5 million tons/year.

• Exploration focus to add at least one year of resources annually, maintaining 1 million ounces at Mara Rosa and expanding at Inmaculada and Royropata.

• Dividend policy targets 20-30% of attributable cash flow, with minimum $10 million annual payout and net debt/EBITDA below 1.5x.