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 gold equivalent ounces, with significant contributions from Inmaculada, San José, and Mara Rosa mines.

• Completed management transition and advanced key growth projects, including Mara Rosa turnaround and Royropata development.

• Maintained world-class ESG performance, with a safety frequency rate of 0.97, 100% renewable energy at key sites, and FTSE4Good index inclusion.

Financial highlights

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

• Adjusted EBITDA was $584 million, reflecting higher gold and silver prices (up 37% and 54%, respectively, from last year).

• All-in sustaining cost averaged $2,138 per gold equivalent ounce, higher than 2024 due to increased production volumes and cost pressures.

• Cash balance at year-end was $317 million, with net debt at $23 million.

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

Outlook and guidance

• Focus remains on developing Monte do Carmo and Royropata, with production at Royropata targeted for 2028 and Monte do Carmo construction planned for July 2026.

• Mara Rosa expected to reach full production in H1 2026, with plant capacity at 2.5–2.6 million tons per year.

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

• Exploration and brownfield programs aim to add at least one year of resources annually, targeting continued resource growth.

• Dividend policy to distribute 20–30% of attributable cash flow, subject to leverage thresholds, with a minimum annual dividend of $10m.