Hochschild Mining profit and sales soar amid buoyant metals prices

Hochschild Mining PLC on Wednesday boosted its dividend as it reported a strong financial first half performance supported by higher metals prices.

London-based Hochschild is a gold and silver miner in Argentina, Brazil and Peru. Its shares were up 7.3% to 671.06 pence in London on Wednesday. The wider FTSE 250 index was up 0.3%.

Pretax profit surged to USD365.8 million in the six months ended June 30 from USD109.3 million the year prior, as revenue climbed 62% to USD844.4 million from USD520.0 million.

Adjusted earnings before interest, tax, depreciation and amortisation more than doubled to USD491.5 million from USD224.5 million.

Basic earnings per share ballooned to USD0.37 from USD0.12.

Hochschild said that while gold production was “broadly similar” to a year ago, the average realised gold and silver prices jumped 47% and 130% respectively, boosting revenue.

Attributable production decreased to 151,830 gold equivalent ounces or 11.7 million silver equivalent ounces, from 165,176 gold equivalent ounces or 12.7 million silver equivalent ounces a year ago.

Chief Executive Eduardo Landin said: “Although production volumes, as expected, were lower versus the first half of 2025 due to budgeted lower grades at Inmaculada and San Jose, overall performance remained in line with expectations.”

Net cash totalled USD51.1 million as at June 30, compared to net debt of USD20.0 million at the end of 2025.

Hochschild also made a “significant increase” to the interim dividend, raising it to 4.0 US cents per share from 1.0 cent per share.

Hochschild said the turnaround plan at Mara Rosa is progressing in-line with expectations with a focus on accessing “higher-grade areas, improving haulage constraints, tailings thickener ramp-up combined with filtration and water management processes.”

Development work continues at Monte Do Carmo with an investment decision expected by year-end.

Looking ahead, the company reiterated its attributable production target of 300,000 to 328,000 gold equivalent ounces for the full year, but increased its operations attributable all-in sustaining costs target to between USD2,380 and USD2,500 per gold equivalent ounce, from between USD2,157 and USD2,320.

The latter reflects the impact of higher prices on royalties, workers’ profit sharing & selling expenses, stronger-than-expected local currencies and continued net cost inflation in Argentina.

In July, the company had said all-in sustaining costs were running 5% to 10% above the guided range.

CEO Landin said: “The continued stronger commodity price environment has driven substantially higher cash generation, positioning the business well despite continued inflationary pressures and stronger-than-expected local currencies across our operating jurisdictions.

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