Hochschild Mining Posts Record Half-Year Results as Mara Rosa Recovery Gains Pace

Hochschild Mining Posts Record Half-Year Results as Mara Rosa Recovery Gains Pace

Record first-half performance: Revenue rose 62% to $844 million, adjusted EBITDA increased 119% to $492 million, and free cash flow reached approximately $156 million. Hochschild ended the period with $309 million in cash and short-term investments and declared a $0.04-per-share interim dividend.

Mara Rosa recovery is progressing: Processing plants were operating near nameplate capacity, and the mine remains on track to produce 67,000–80,000 ounces in 2026. Recovery spending pushed Mara Rosa’s first-half all-in sustaining costs to $3,551 per ounce, while company-wide cost guidance was raised to $2,380–$2,500 per gold-equivalent ounce.

Growth projects could materially expand output: Royropata in Peru and Monte do Carmo in Brazil are expected to add roughly 200,000 gold-equivalent ounces annually, potentially lifting production above 500,000 ounces per year from 2028. Royropata’s permitting is underway, while Hochschild expects to seek a final investment decision on Monte do Carmo by year-end.

Hochschild Mining LON: HOC reported what management described as its strongest-ever half-year financial performance, supported by higher gold and silver prices, cash generation from its Peruvian and Argentine operations, and progress in restoring operational capacity at its Mara Rosa mine in Brazil. The company said it produced more than 150,000 ounces during the first half, while revenue increased 62% to $844 million. Adjusted EBITDA rose 119% to $492 million and earnings per share increased 208% to $0.37.

Hochschild ended the period with $309 million in cash and short-term investments and a net cash position of $51 million, compared with net debt of $20 million at the end of 2025.

Management declared an interim dividend of $0.04 per share, equivalent to $21 million, in line with its stated dividend policy.

Higher prices lift revenue, while costs rise Chief Financial Officer Eduardo Noriega said the revenue increase was driven principally by higher gold and silver prices, partly offset by lower scheduled production volumes. Cost of sales increased 11%, reflecting higher activity at Mara Rosa, including waste movement associated with restoring the mine’s operating capability. Noriega also cited the effect of higher metals prices on royalties, workers’ profit sharing and export taxes, as well as stronger local currencies in Peru and Brazil and net inflation in Argentina. The company’s effective tax rate was 35%, or 32% excluding special mining taxes and foreign-exchange effects in Brazil and Argentina, he said.

Free cash flow totaled approximately $156 million in the first half. Inmaculada generated $288 million in cash flow and San José generated $149 million, while Mara Rosa used $80 million for recovery work, including installation of a thickener and opening the pit. The company also reduced debt by $80 million and paid $84 million in dividends, including $58 million to its San José joint-venture partner McEwen Mining.

Hochschild maintained its production guidance but revised its all-in sustaining cost guidance to between $2,380 and $2,500 per gold-equivalent ounce. First-half attributable all-in sustaining costs were $2,448 per gold-equivalent ounce. Inmaculada reported all-in sustaining costs of $1,953 per ounce. San José reported all-in sustaining costs of $2,944 per ounce. Mara Rosa reported all-in sustaining costs of $3,551 per ounce, including recovery and operational-restoration spending.

Noriega said more than 50 efficiency and cost-reduction initiatives were helping to offset broader mining-industry inflation. However, direct costs tied to higher metals prices, foreign exchange and Argent...