Shares of Hochschild Mining (HOC) experienced a 6% drop today, despite the company reporting record financial results for the year ended December 31, 2025.
The market reaction appears to be driven by concerns over increased all-in sustaining costs (AISC) and a slight dip in overall production, overshadowing otherwise positive financial metrics.
The precious metals miner announced a 25% surge in revenue, reaching $1,182.1 million compared to $947.7 million in 2024. Adjusted EBITDA also saw a significant increase of 39%, climbing to $583.7 million.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
Profit before income tax (pre-exceptional) jumped 66% to $330.4 million, while post-exceptional profit before income tax soared 110% to $372.8 million. Basic earnings per share (EPS) followed suit, with pre-exceptional EPS at $0.31 (up from $0.23) and post-exceptional EPS at $0.39 (up from $0.19).
Hochschild’s cash reserves have substantially improved, boasting a cash and cash equivalents balance of $317.0 million, a significant leap from the $97.0 million recorded in 2024. Net debt also improved dramatically, falling to $22.7 million from $215.6 million. The company has recommended a final dividend of 5.00 US cents per share, equaling $25.7 million.
While financial performance was strong, operational metrics presented a mixed picture. Attributable production decreased to 311,509 gold equivalent ounces from 347,374 ounces in 2024.
More concerningly, attributable all-in sustaining costs (AISC) from operations rose to $2,138 per gold equivalent ounce, a notable increase from $1,558 the previous year. The company attributed the production dip to planned adjustments and the AISC increase to inflationary pressures and project-specific factors.
Hochschild has made significant strides in exploration, adding 1.7 million gold equivalent ounces to its resource base. The Monte do Carmo project in Brazil is progressing towards an updated economic assessment and a final investment decision expected by mid-2026. Permitting for the Royropata silver project remains on track, and the company has successfully monetized non-core assets, with Tiernan Gold Corp now trading on the TSX Venture Exchange.
ESG performance showed positive improvements. The Lost Time Injury Frequency Rate decreased to 0.97 from 1.25. Fresh water usage per tonne of ore processed fell to 0.26 m3/tonne from 0.31 m3/tonne. Recycled waste increased to 81.4% from 57.3%. The local workforce now constitutes 65.9% of the total workforce, up from 59.3%.
Looking ahead to 2026, Hochschild anticipates attributable production to range between 300,000 and 328,000 gold equivalent ounces. The attributable all-in sustaining cost target is set at $2,157-$2,320 per gold equivalent ounce. Total sustaining capital expenditure at operating mines is projected to be approximately $210-225 million, with a brownfield exploration budget of $45 million.
Eduardo Landin, Chief Executive Officer of Hochschild, commented: “This year marks a key moment for Hochschild, delivering our strongest ever financial performance, driven by disciplined execution at Inmaculada and precious metal price tailwinds.” Landin added, “We added 1.7 million ounces to our resource base, advanced our two exciting growth projects in Peru and Brazil, and significantly increased the dividend, reflecting the strength of our balance sheet.”
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
