Hochschild Mining plc (LSE:HOC) delivered record financial results in 2025 as revenue increased 25% to $1.18bn and adjusted EBITDA climbed 39%, supported by strong operational performance at its Inmaculada mine and higher precious metal prices. Profit before tax more than doubled after exceptional items, while net debt dropped significantly to $22.7m, reflecting robust cash generation.
The company also proposed a higher final dividend, highlighting the strength of its balance sheet. This performance came despite somewhat higher all-in sustaining costs and slightly lower overall production during the year.
Operationally, the group produced 311,509 gold equivalent ounces, broadly in line with revised guidance. Performance was supported by steady output at the Inmaculada Mine and the San Jose Mine. The company also continued progress on improving operations at the Mara Rosa Mine, which is undergoing a turnaround process.
Exploration and development activities also advanced, with the company adding 1.7 million gold equivalent ounces to its resource base. Hochschild continued to move forward with expansion projects in Peru and Brazil while improving environmental, social and governance performance metrics, including safety and water efficiency.
For 2026, the company expects production to range between 300,000 and 328,000 gold equivalent ounces. The outlook includes higher sustaining capital expenditure and a brownfield exploration budget of around $45m to support long-term resource growth.
The company’s outlook is supported by improving financial performance, stronger margins and healthier cash flow. Technical indicators also show a strong upward trend in the share price. However, the valuation appears relatively full with a price-to-earnings ratio of about 23.5, while cost pressures and softer domestic sales noted during earnings discussions may create near-term risks. Overbought technical conditions could also lead to short-term volatility.
More about Hochschild Mining
Hochschild Mining plc is a precious metals producer focused on the exploration, mining, processing and sale of silver and gold. With more than five decades of experience in epithermal vein deposits, the company operates the Inmaculada underground mine in Peru, the San Jose underground mine in Argentina and the Mara Rosa open-pit gold mine in Brazil. It also maintains a pipeline of exploration and development projects across the Americas aimed at supporting long-term production growth.
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