Hochschild Mining PLC (HOCM) posted H1 2026 earnings that fell short of analyst expectations despite a sharp increase in revenue and profitability, as higher costs and operational challenges weighed on results.
The London-listed gold miner reported revenue of $844.4 million for the six months ended June 30, up 62% from $521.2 million a year earlier. Adjusted EBITDA climbed 119% to $492 million, while free cash flow reached $156 million. Earnings per share rose 208% year-over-year to $0.37 but missed the $0.45 consensus estimate by 17.8%.
Hochschild’s net cash position improved to $51 million from a net debt position of $20 million at the end of 2025, supported by $80 million in debt repayments during the period. Cash and short-term investments totaled $309 million as of June 30. The company raised its interim dividend by 300% to $0.04 per share, amounting to $21 million for shareholders, alongside a $58 million payment to joint venture partner McEwen Mining.
Production totaled over 150,000 ounces of gold equivalent, with all-in sustaining costs averaging $2,448 per ounce. Costs varied by mine, ranging from $1,953 per ounce at Inmaculada to $3,551 per ounce at Mara Rosa. Capital expenditures reached $105 million, including $69 million allocated to Inmaculada for tailings dam expansion.
Chief Executive Officer Eduardo Landin highlighted strong operational recovery in Brazil and elevated metal prices as key drivers of performance. However, the company revised its full-year AISC guidance upward to $2,380–$2,500 per ounce, citing higher gold and silver prices, foreign exchange pressures, and local inflation. Full-year capital expenditure guidance remained unchanged at $210–$225 million.
Looking ahead, Hochschild outlined progress on its growth pipeline. Royropata in Peru, expected to secure environmental permits by August 2027, could begin production in 2028 with output exceeding 100,000 ounces annually. The Monte do Carmo project in Brazil remains on track for a final investment decision by year-end 2026, with first production targeted for late 2028. Inmaculada’s exploration program is projected to add roughly 250,000 ounces of inferred resources in 2026.
Shares rose 7.43% in premarket trading to $672, extending a 21.7% weekly gain and reflecting a 121% return over the past year. The stock has traded between $246.20 and $858 over the past 52 weeks.
