The precious metal producer Hochschild Mining (WKN A0LC38) has presented its best financial data in 13 years and consequently decided to resume dividend payments.
The company was able to significantly increase both revenue and profit in the past year, mainly due to high gold and silver prices. As a result, Hochschild increased its revenue by 37% to $947.7 million. In 2023, it had stood at $693.7 million.
Hochschild reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $421.4 million, representing a 54% increase from $274.4 million in the previous year. Earnings per share reached $0.23, up from just $0.02 in 2023, while adjusted earnings per share were $0.19. In the previous year, there had been a loss of $0.10 per share.
Dividend Reinstated
Furthermore, Hochschild has reintroduced its dividend policy and plans to distribute a final dividend of 1.94 cents per share, which would amount to $10 million. In the future, 20 to 30% of the attributable free cash flow is to be paid out.
As CEO Eduardo Landin announced, they succeeded in increasing mineable resources by 2.8 million ounces of gold equivalent last year, thus extending the operational life of all existing mines. Additionally, they are now developing two significant growth projects that are expected to increase annual production by more than 200,000 ounces.
In total, the company reported an attributable production of 347,374 ounces of gold equivalent in 2024. However, the so-called ‘all-in sustaining costs’ also increased from $1,454 per ounce in 2023 to $1,638 per ounce in 2024.
For 2025, Hochschild aims to produce between 350,000 and 378,000 ounces of gold equivalent. The AISC is expected to range between $1,587 and $1,687 per ounce of gold equivalent.
