Hochschild Mining Shares Rise After Strong Interim Results

Shares in Hochschild Mining (LSE: HOC) climbed on Tuesday after the Peru-focused precious metals producer reported a sharp jump in first-half profits, driven by soaring gold and silver prices.

The London-listed miner said revenue for the six months to 30 June rose 62% to $844.4 million, while adjusted EBITDA more than doubled to $491.5 million. Profit before tax surged to $365.8 million from $109.3 million a year earlier, lifting basic earnings per share to $0.37 from $0.12. The company swung to a net cash position of $51.1 million, from net debt of $20.0 million at the end of 2025, and declared a quadrupled interim dividend of 4.0 cents per share.

Attributable production fell to 151,830 gold-equivalent ounces from 165,176 ounces, reflecting lower grades at the flagship Inmaculada mine in Peru, though the company reiterated full-year guidance of 300,000-328,000 ounces. All-in sustaining costs rose sharply to $2,448 per ounce, prompting Hochschild to raise its 2026 AISC guidance range to $2,380-$2,500, citing higher royalties, profit-sharing costs and stronger local currencies across Peru, Argentina and Brazil.

Chief executive Eduardo Landin highlighted progress in the turnaround at the Mara Rosa mine in Brazil, where a new mining contractor is delivering early improvements, alongside advances at the Monte Do Carmo and Royropata growth projects. The results were tempered by news of a fatal accident at Inmaculada in June, which prompted a safety investigation.

Investors appeared to focus on the scale of cash generation and dividend growth, outweighing concerns over rising costs, as the stock outperformed the wider mining sector in early trading.