UK's Hochschild Mining H1 revenue rises 62% on higher metal prices
UK's Hochschild Mining H1 revenue rises 62% on higher metal prices
Overview
UK precious metals miner's H1 revenue rose 62% yr/yr, slightly missing analyst expectations
Adjusted EBITDA more than doubled yr/yr, reflecting higher precious metal prices
Company raised full-yr cost guidance, citing higher metal prices and local inflation
Outlook
Hochschild reiterates 2026 attributable production guidance of 300,000-328,000 gold equivalent ounces
Company revises 2026 attributable AISC guidance to $2,380-$2,500 per gold equivalent ounce
Hochschild maintains 2026 capital expenditure guidance at $210-$225 mln
Result Drivers
HIGHER METAL PRICES - Co said increased realised gold and silver prices drove revenue growth despite lower production volumes
COST INFLATION - Co attributed higher all-in sustaining costs to increased export taxes, royalties, workers profit sharing, stronger local currencies and inflation in Argentina
MARA ROSA TURNAROUND - Co said operational improvements at Mara Rosa supported production, but legacy contractor issues and turnaround efforts kept costs elevated
Company press release: ID:nRSZ1411Sa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Slight Miss* | $844.40 mln | $847.33 mln (3 Analysts) |
H1 Adjusted EBITDA | Miss | $491.50 mln | $504 mln (2 Analysts) |
H1 Pretax Profit |
| $365.80 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the gold peer group is "buy"
Wall Street's median 12-month price target for Hochschild Mining PLC is GBp745.00, about 19.1% above its August 25 closing price of GBp625.50
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Aug 25 - Tongguan Gold H1 revenue, profit jump on higher prices
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Aug 25 - AngloGold Ashanti to process all its Brazilian gold concentrate domestically
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)