Hochschild Mining more than doubles first-half earnings as precious metals prices surge

Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) more than doubled adjusted earnings in the first half of 2026 as stronger gold and silver prices offset lower production and higher operating costs. Adjusted EBITDA rose 119% to US$491.5 million in the six months to 30 June from US$224.5 million a year earlier, while revenue increased 62% to US$844.4 million. Profit before tax climbed to US$365.8 million from US$109.3 million and basic earnings per share increased to US$0.37 from US$0.12. The stronger financial performance allowed Hochschild to lift its interim dividend to 4.0 US cents per share, equivalent to US$20.6 million, from 1.0 cent a year earlier. Higher precious metals prices were the main driver, with Hochschild's average realised gold price rising 47% to US$4,166 an ounce and its realised silver price increasing 130% to US$77.80 an ounce. Attributable production declined to 151,830 gold equivalent ounces from 165,176 ounces, primarily reflecting planned lower grades at the Inmaculada mine in Peru. San Jose in Argentina delivered an 8% increase in gold equivalent production, while Hochschild reported further progress with the turnaround of its Mara Rosa operation in Brazil. The miner maintained its full-year production guidance of 300,000 to 328,000 gold equivalent ounces but increased its forecast for all-in sustaining costs to US$2,380-US$2,500 per ounce from US$2,157-US$2,320 previously. Hochschild attributed the increase to higher precious metals prices feeding through into royalties, export taxes and worker profit-sharing costs, alongside stronger local currencies and continued inflation in Argentina. Despite the cost pr...