Hochschild posts best results in 13 years, restores dividend

me-metals: Precious metals miner Hochschild Mining (LON: HOC) reported its strongest financial performance in 13 years on Wednesday and restored its dividend thanks to record gold and silver prices in 2024.

According to me-metals cited from mining.com, The South America-focused company posted a pretax profit of $177.2 million, a sharp turnaround from its $43.5 million loss in 2023, when restructuring charges and impairments weighed on results.

The London-based miner declared a final dividend of 1.94 cents per share, amounting to at least $10 million for shareholders. The last time the company rewarded its shareholders was in 2022, with a 1.95-cent interim payout.

“We are pleased to announce our best financial performance for 13 years, a testament to our exceptional team and high-quality assets,” chief executive Eduardo Landin said in a statement.

He added that the company’s growth strategy had delivered a record 2.8 million gold-equivalent ounces of mineable resources, extending the life of all current operations.

UK investment bank Peel Hunt said the resumption of dividends signalled financial discipline and, coupled with increased exploration, would extend cash flow duration.

Shares surged as much as 17% in early trading and were last up 15% at 220.5p, giving Hochschild a market capitalization of £1.1 billion ($1.42 billion).

Attributable production in 2024 totalled 347,374 gold-equivalent ounces.comprising 245,000 ounces of gold, up 32% from 186,000 in 2023, and 8.5 million ounces of silver, down 11% from 9.5 million.

Eyes on Brazil

Hochschild expects to produce between 350,000 and 378,000 gold-equivalent ounces this year, with its new Mara Rosa gold mine increasing output further.

Mara Rosa, located in Goiás state, is Hochschild’s first operation in Brazil, where it is expanding its footprint. Last year, the miner acquired the Monte Do Carmo project for $60 million, with $45 million already paid.

Other than in Brazil, Hochschild has mines in Peru and Argentina as well as development projects in Chile and Peru.

source: mining.com