Soaring gold prices see Hochschild Mining (LSE:HOC), the London-listed precious metals miner with operations in Peru, Argentina and Brazil, report revenue up 62% to $844.4 million for the six months ended 30 June, against $520.0 million a year earlier.
Earnings (adjusted EBITDA) more than doubled, rising 119% to $491.5 million, while profit before tax jumped to $365.8 million from $109.3 million in the first half of 2025. Basic earnings per share rose to $0.37 from $0.12, and the company swung to a net cash position of $51.1 million at period end, from net debt of $20.0 million at the end of 2025.
Attributable production fell to 151,830 gold equivalent ounces from 165,176 ounces, while attributable all-in sustaining costs climbed to $2,448 per gold equivalent ounce from $1,873.
Hochschild declared an interim dividend of 4.0 cents per share, up sharply from 1.0 cent a year earlier, worth $20.6 million.
The turnaround plan at its Mara Rosa mine in Brazil is progressing in line with expectations, aided by a new mining contractor and efforts to access higher-grade ore.
A fatality at the Inmaculada mine in June prompted an extensive investigation, the company's first such incident since zero fatalities recorded in 2025.
Hochschild reiterated its full-year production guidance of 300,000 to 328,000 gold equivalent ounces but raised its AISC target to $2,380-$2,500 per ounce, from $2,157-$2,320 previously, citing higher royalties tied to stronger prices, stronger local currencies across all three countries and continued cost inflation in Argentina.
News Intelligence what this means for the company
Hochschild's first-half profit before tax more than tripled to $365.8 million on a 62% revenue jump to $844.4 million, driven by higher metal prices that overwhelmed both lower production (151,830 vs 165,176 gold equivalent ounces) and rising all-in sustaining costs. The company swung to net cash of $51.1 million from net debt of $20.0 million at end-2025, and raised its interim dividend fourfold to 4.0 cents per share, though it raised full-year AISC guidance to $2,380–$2,500 per ounce from $2,157–$2,320, citing stronger local currencies and Argentine cost inflation.
The earnings surge is entirely price-driven rather than operational—production fell and costs rose sharply—leaving the company exposed to metal price reversals. The AISC guidance raise signals structural cost headwinds that higher prices have masked; the shift to net cash and higher dividend payout improves financial flexibility but does not offset the underlying production and cost trajectory.
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