The Inmaculada operation
Precious metals miner Hochschild Mining on Wednesday restored its dividend policy as the company announced its best financial performance in 13 years.
The London-listed company reported significant growth in revenue and profit in 2024 - a year marked by exceptional performance in the precious metals market, with both gold and silver reaching notable price milestones.
For the full year, Hochschild saw a 37% increase in revenue, reaching $947.7-million compared with $693.7-million in 2023. Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) surged by 54% to $421.4-million, up from $274.4-million in the previous year.
Profit before income tax (pre-exceptional) jumped an impressive 272%, reaching $199.1-million from $53.5-million in 2023. Meanwhile, profit before income tax (post-exceptional) skyrocketed to $177.2-million from a loss of $43.5-million in 2023.
Basic earnings a share (pre-exceptional) stood at $0.23, a substantial increase from $0.02 in 2023, while basic earnings a share (post-exceptional) reached $0.19, compared with a loss of $0.10 a share in the prior year.
Further, Hochschild has announced the restoration of its dividend, with a final proposed dividend of $1.94c a share, amounting to $10-million. The company has also introduced a dividend policy, with payouts based on 20% to 30% of attributable free cash flow. The new policy includes a minimum yearly dividend of $10-million, to be distributed in two installments, contingent on the company’s leverage being lower than 1. 5x net debt/adjusted Ebitda.
“We are pleased to announce our best financial performance for 13 years, a testament to our exceptional team and high-quality assets,” said CEO Eduardo Landin.
“Our growth strategy continues to deliver, with the addition of a record 2.8-million gold-equivalent ounces of mineable resources, extending the life of all our current operations,” he reported.
“Two major growth projects are now being developed that could boost annual production by over 200 000 oz.”
Hochschild's operational performance in 2024 saw a full-year attributable production of 347 374 gold-equivalent ounces (GEO). Despite rising all-in sustaining costs (AISC) of $1 638/GEO, up from $1 454/GEO in 2023, the company’s performance remains solid.
The company also achieved a record addition of 2.8-million GEO to its resource base. This included one-million ounces added at the Inmaculada project, 1.3-million ounces at Royropata, 0.3-million ounces at San Jose, and 0.2-million ounces at Mara Rosa.
In addition, Hochschild completed the acquisition of the Monte Do Carmo project for a total of $60-million, with $45-million already paid.
Looking ahead to 2025, Hochschild has set a production target of between 350 000 GEO and 378 000 GEO, with the new Mara Rosa mine expected to contribute between 94 000 oz and 104 000 oz of gold.
The company is targeting AISC of between $1 587/GEO and $1 687/GEO.
Hochschild also expects to invest between $169-million and $180-million in sustaining capital expenditure across its operating mines, alongside a $36-million exploration budget for brownfield projects. 