Half Year 2026 Hochschild Mining PLC Earnings Call Transcript
Key Points
- Record H1 financial performance with revenue up 62% to $844 million and adjusted EBITDA up 119% to $492 million.
- Strong free cash flow generation of $156 million, leading to a net cash position of $51 million.
- Successful turnaround at Mara Rosa with plant operations near nameplate capacity and a new competent mining contractor in place.
- Royropata project environmental permit submitted on schedule, with potential to become a new flagship asset.
- Monte do Carmo project advancing towards FID by end of 2026, with potential for fast-track construction.
- Strong exploration potential at Inmaculada and San José, with new vein discoveries and advanced survey techniques.
- Improved political and economic outlook in Peru with a new investment-friendly government and stable central bank leadership.
- All-in sustaining cost guidance raised to $2,380-$2,500 per ounce due to higher metal prices and FX impacts.
- Contractor fatality at Inmaculada in June, highlighting safety risks.
- San José costs impacted by high inflation in Argentina (16%) without devaluation, increasing operational expenses.
- Mara Rosa's H1 all-in sustaining cost was high at $3,551 per ounce due to recovery investments.
- Interim dividend of $0.04 per share is lower than what the policy would suggest for H1, creating uncertainty.
- Working capital had a negative $37 million movement in H1, though expected to reverse in H2.
- Effective tax rate of 35% is elevated due to special mining taxes and FX effects.
Hello, and welcome to Hochschild Mining's 2026 interim results presentation. (Operator Instructions) I would now like to hand the call over to Eduardo Landin, Hochschild Mining's CEO, to begin. Please go ahead, sir.
Good morning, everyone, and welcome to our presentation of our H1 results. Here with me is Eduardo Noriega, our CFO; and Charlie Gordon in London. Charlie, please, if we can go to page 3. Well, first, let me say that we have, on H1, the strongest ever half-year financials. We have produced 150,000 oz, a little bit more. Revenues went up 62%, up to $844 million.
Our adjusted EBITDA went up 119% to $492 million. The EPS went up 208% to $0.37. Our attributable all-in sustaining cash cost was $2,448 per ounce gold equivalent. We end up with $309 million in cash, and our net cash position is of $51 million. The dividend that we have established following our policy is $0.04, equivalent to $21 million. What do we have to do with the rest of the second half? Mara
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