Hochschild Mining’ Share Price Dropped 6.9% on FY 2023 Results

The Hochschild Mining Plc (LON: HOC) share price dropped 6.9% after the company released its final results for the year ended 31 December 2023. Although revenue slightly declined to $693.7 million from the previous year's $735.6 million, the company showcased significant operational efficiency and profitability improvement.  

Adjusted EBITDA substantially increased to $274.4 million, up from $249.6 million in 2022, reflecting more robust operational execution and cost management. The company's pre-exceptional profit before income tax more than doubled, reaching $53.5 million, starkly contrasting the $24.3 million reported in 2022.

Therefore, this underscores the company's ability to enhance its profit margins and operational effectiveness. However, post-exceptional items led to a loss before income tax of $43.5 million, a reversal from the previous year's $25.8 million profit, indicating significant exceptional costs.

On the earnings front, basic earnings per share before exceptional items improved to $0.02, up from $0.01 in 2022. Nevertheless, exceptional items contributed to a basic loss per share of $0.10, compared to earnings per share of $0.01 the year before. 

The balance of cash and cash equivalents stood at $89.1 million by the end of December 2023, a decrease from $143.8 million in 2022, while net debt increased to $257.9 million from $175.1 million. Despite these challenges, the company successfully achieved its revised guidance for 2023. 

All-in-sustaining costs (AISC) for operations were reported at $1,454 per gold equivalent ounce, slightly better than the projected range of $1,490-$1,580. This achievement is noteworthy, especially considering the marginal increases in costs per gold and silver equivalent ounce compared to 2022. The full year saw the company produce 300,749 gold equivalent ounces.

Eduardo Landin, Hochschild Mining’s CEO, commented: “I am pleased to report a robust 2023 performance. We made strong progress at our new Mara Rosa mine in Brazil, which is now in production, on time and on budget. Furthermore, we obtained a crucial permit at Inmaculada in Peru, ensuring an exciting, long-term future for the operation. We remain confident of a strong year ahead as we continue to execute our stated strategy of driving long-term production growth whilst reducing costs.”

Hochschild Mining share price. 

The Hochschild Mining share price dropped 6.90% to trade at 103.25p from Tuesday's closing price of 110.90p.