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Here’s Why Hochschild Mining Share Price Crashed Over 10% on Wednesday

Mining
Nigel F

Hochschild Mining PLC (LON: HOC) share price tumbled 11% today after the FTSE 250 precious-metals mining company said its pretax profit plunged to $6.5 million for the first half of the year, significantly lower than a profit of $29.5 million for the same period last year.

“Gold has recorded an all-time high recently and silver has reached its highest price level in seven years and we are therefore hopeful of delivering a strong rebound in profitability in the second half of the year,” the company said.

Adjusted earnings before interest, taxes, depreciation and amortization were reported at $80.6 million, which is over 50% lower than $153.7 million for the first half of 2019. Similarly, revenue tumbled to $232.0 million from $354.5 million.

As a result, Hochschild Mining posted a loss per share of $0.01 compared with earnings per share of $0.04 in 2019. The firm scrapped a dividend payout, arguing that “it would be inappropriate to pay a distribution to shareholders at this time”.

Hochschild Mining share price tumbled on declining profit and revenue August 2020

Hochschild Mining share price fell more than 10% today to trade below 250p just two weeks after posting a 3-year high at 326.8p. 

Nigel F
Nigel F
Team Member

Nigels tiefes Verständnis der Finanzmärkte basiert auf über 10 Jahren Erfahrung. Nigel wurde bisher zweimal von der FCA (Financial Conduct Authority) autorisiert und hat in der letzten Zeit eine Finanz-Brokerage Firma besessen und verkauft. Er liefert hochaktuelle Analysen und Einsichten in die Finanzmärkte und in die allgemeine Wirtschafts- und Währungspolitik des Vereinigten Königreichs, der USA, Europas und Asiens.