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Highlights

  • Hochschild’s revenue increased 24.8% YoY to USD 391.74 million in H1FY24, driven by higher gold prices
  • HOC’s Q3FY24 gross profit rose to USD 19.3 million, fueled by cost reductions and higher gold prices
  • Adjusted EBITDA in H1FY24 surged 78% YoY, reaching USD 177.14 million, supported by increased production
  • In FY25, the company targets 350,000-378,000 gold equivalent ounces with USD 36 million allocated for exploration

Hochschild Mining PLC (LSE:HOC) is an FTSE 250-listed mining company with over 50 years of experience, specialising in gold and silver deposits across Argentina, Chile, and Peru.

In the first half of the financial year 2024 (H1FY24), the company saw a notable increase in revenue, reaching USD 391.74 million, a 24.8% YoY rise compared to USD 314.02 million in H1FY23. This growth was largely driven by higher gold and silver prices.

The gross profit for the third quarter of financial year 2024 (Q3FY24) also saw notable growth, increasing from USD 14.1 million in Q3FY23 to USD 19.3 million in Q3FY24, fueled by higher gold prices and cost reductions at the Bilboes oxide mine.

Additionally, the adjusted EBITDA in H1FY24 surged 78% YoY, reaching USD 177.14 million compared to USD 99.49 million in H1FY23. This improvement was driven by increased production from Mara Rosa and higher grades at Inmaculada, which resulted in a 12% rise in gold equivalent output.

Recent Business Update

As per the company’s 2024 production report, Hochschild’s attributable gold production increased by 32% YoY, reaching 245,013 ounces in 2024, while gold equivalent output rose 16% YoY to 347,374 ounces.

Further, the company completed the USD 60 million acquisition of the Monte Do Carmo project, supporting long-term growth, and the 2024 brownfield drilling program is aimed at enhancing resources across all operations.

Company Outlook

The company targets 350,000-378,000 gold equivalent ounces for FY25. The Mara Rosa mine is expected to contribute 94,000-104,000 ounces of gold.

All-in sustaining costs are projected between USD 1,587 and USD 1,687 per ounce. Total sustaining and development capital expenditure is estimated at USD 169-180 million for FY25.

Additionally, a USD 36 million budget is allocated for brownfield exploration to enhance resource potential across operating units.

Top 10 Shareholders

The top 10 shareholders of Hochschild collectively hold approximately 60.15% of the total shares. The largest shareholder, Hochschild Beeck (Eduardo), owns around 38.27%, followed by Liontrust Portfolio Management Limited with a 4.93% stake.

Stock Information

The share price of HOC has declined by around 14.72% in the past month. However, the stock has gained nearly 10% in the past six months. The stock's 52-week range spans from GBX 82.00 to GBX 251.83. As of 10 February 2025, the stock's closing price was GBX 190.60.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 10 February 2025. The reference data in this report has been partly sourced from EODHD/Others.