In This Article:
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Revenue: Approximately $950 million.
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Net Profit: Around $117 million.
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Earnings Per Share (EPS): $0.23.
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Adjusted EBITDA: $421 million, up 54%.
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Cash Balance: $97 million at year-end.
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Net Debt: $216 million, reduced by $40 million.
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Debt Repayment: $40 million repaid.
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All-in Sustaining Costs: Slightly higher due to Mara Rosa ramp-up and inflation in Argentina.
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Capital Expenditures (CapEx): $205 million for Mara Rosa construction.
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Dividend Policy: 20% to 30% of free cash flow, with a minimum of $10 million per year.
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Production: Nearly 350,000 ounces produced in 2024.
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Resource Addition: 2.8 million ounces of gold added.
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Effective Tax Rate: 33%.
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Exceptional Items: Net effect of $19 million, mainly impairments.
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Exploration Investment: $34 million for Brownfield exploration.
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New Financing Facility: $300 million secured with competitive terms.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hochschild Mining PLC (HCHDF) reported its best financial results in 13 years, with revenues nearing $1 billion and EBITDA increasing by 54%.
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The company successfully added 2.8 million ounces of gold resources, significantly enhancing its asset base.
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Hochschild Mining PLC (HCHDF) has reestablished its dividend policy, offering a base dividend of $10 million per year, reflecting strong cash generation.
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The company has secured a new $300 million green financing facility, providing flexibility for debt repayment and growth projects.
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Hochschild Mining PLC (HCHDF) has focused on core assets by divesting non-core projects, allowing it to concentrate on high-potential sites like Inmaculada and Royropata in Peru, and Mara Rosa and Monte Do Carmo in Brazil.
Negative Points
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The company's costs increased by 19%, partly due to inflation in Argentina and increased production volumes.
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Hochschild Mining PLC (HCHDF) recorded an FX loss due to the devaluation of the Argentinian peso and Brazilian real.
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The ramp-up of the Mara Rosa project was slower than expected, impacting cost efficiency.
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The company faces challenges in Argentina, including cash repatriation issues and macroeconomic uncertainties.
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Despite strong results, the company's stock valuation remains low compared to peers, indicating potential market undervaluation.
Q & A Highlights
Q: How should we think about the medium-term CapEx profile for Hochschild Mining, particularly for 2026 and 2027? A: Eduardo Noriega, CFO, stated that while specific guidance for 2026 and 2027 is not provided, the 2025 guidance includes around $30 million of one-off projects. Future all-in sustaining costs will depend on metal prices, mine plans, and new resource additions. Exploration programs are yielding high-quality resources, which may impact costs but add value.