27 August 2025

  

Hochschild Mining PLC

Interim Results

Six months ended 30 June 2025

 

Hochschild Mining PLC ("Hochschild" or the "Company") (LSE: HOC) (OTCQX: HCHDF) is pleased to announce its interim results for the six months ended 30 June 2025.

 

Financial Highlights

§ Revenue up 33% at $520.0 million (H1 2024: $391.7 million)^[1]

§ Adjusted EBITDA up 27% at $224.5 million (H1 2024: $177.1 million)^[2]

§ Profit before income tax (pre-exceptional) of $109.3 million (H1 2024: $83.1 million)

§ Profit before income tax (post-exceptional) of $140.1 million (H1 2024: $69.4 million)

§ Basic earnings per share (pre-exceptional) of $0.12 (H1 2024: $0.10)

§ Basic earnings per share (post-exceptional) of $0.18 (H1 2024: $0.08)

§ Cash and cash equivalents balance of $109.8 million as at 30 June 2025 (31 December 2024: $97.0 million)

§ Net debt of $202.3 million as at 30 June 2025 (31 December 2024: $215.6 million)²

§ Interim dividend of $1.0 cent per share ($5.1 million)

Operational Highlights[3]  

§ H1 2025 attributable production of 161,597 gold equivalent ounces or 13.4 million silver equivalent ounces (H1 2024: 152,792 gold equivalent ounces or 12.7 million silver equivalent ounces)

§ Attributable all-in sustaining costs (AISC)² from operations of $1,914 per gold equivalent ounce (H1 2024: $1,432) or $23.1 per silver equivalent ounce (H1 2024: $17.3)

§ Mara Rosa mine update

o  Processing plant restarted and ramping up

o  Mechanical filter repairs and operational improvements currently being tested with mined ore

o  Mining operations continued as planned

o  New Brazil country manager appointed

Project & Exploration Highlights

§ 2025 Brownfield drilling programme commenced with encouraging early drill results from Inmaculada and Mara Rosa

§ Development work continues at the Monte Do Carmo project

Sustainability Highlights[4]

§ Continued strong performance across all key metrics

§ Lost Time Injury Frequency Rate of 1.08 (FY 2024: 1.25)^[5]

§ Water Consumption of 132lt/person/day (FY 2024: 138lt/person/day)

§ Domestic waste generation of 0.83 kg/person/day (FY 2024: 0.93kg/person/day)

§ ECO score of 5.57 out of 6 (FY 2024: 5.58)^[6]

§ Hochschild recently joined the United Nations Global Compact

Revised 2025 full year guidance

§ FY 2025 Mara Rosa production target revised to 35,000-45,000 ounces (previously 94,000-104,000 ounces)

§ Revised operations attributable production target:

o  291,000- 319,000 gold equivalent ounces (previously 350,000-378,000 ounces)

§ Revised operations attributable all-in sustaining costs target:

o  $1,980-$2,080 per gold equivalent ounce (previously $1,587-$1,687 per gold equivalent ounce)

§ Revised Mara Rosa sustaining and development capital expenditure expected to be approximately $29-$30 million (includes $18 million for remedial activities)

 

$000 unless stated	Six months to 30 June 2025	Six months to 30 June 2024	% change
Attributable silver production (koz)	3,812	4,070	(6)
Attributable gold production (koz)	116	104	12
Revenue	520,010	391,740	33
Adjusted EBITDA	224,472	177,141	27
Profit/(loss) from continuing operations (pre-exceptional)	66,495	64,026	4
Profit/(loss) from continuing operations (post-exceptional)	97,274	51,486	89
Basic earnings/(loss) per share (pre-exceptional) $	0.12	0.10	20
Basic earnings/(loss) per share (post-exceptional) $	0.18	0.08	125

 

_______________________________________________________________________________________

 

A live conference call and audio webcast will be held at 2.30pm (London time) on Wednesday 27 August 2025 for analysts and investors.

For a live webcast of the presentation please click on the link below:

 

https://brrmedia.news/HOC_IR_2025                     

 

Conference call dial in details:

UK: +44 (0)330 551 0200

UK Toll Free: 0808 109 0700

US Toll Free: 1 866 580 3963

Canada Toll Free: 1 866 378 3566

Pin: Hochschild Mining Interim 2025

 

_______________________________________________________________________________________

 

Enquiries:

 

Hochschild Mining PLC

Charles Gordon                                                                                                                                                                                                                                 +44 (0)20 3709 3264

Head of Investor Relations

 

Hudson Sandler

Charlie Jack                                                                                                                                                                                                                                       +44 (0)207 796 4133

Public Relations

_______________________________________________________________________________________

Non-IFRS Financial Performance Measures

The Company has included certain non-IFRS measures in this news release. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardised meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

 

About Hochschild Mining PLC:

Hochschild Mining PLC is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX Best Market in the U.S. (HCHDF), with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and operates two underground epithermal vein mines: Inmaculada, located in southern Peru; and San Jose in southern Argentina, and an open pit gold mine, Mara Rosa, located in the state of Goiás, Brazil.  Hochschild also has numerous long-term projects throughout the Americas.

CHIEF EXECUTIVE OFFICER'S STATEMENT

During the first half of 2025, Hochschild Mining delivered another period of steady progress across our business despite the operational issues in Brazil. We remain fully aligned with our strategy which is anchored around four key pillars: brownfield exploration, operational efficiency, ESG leadership, and disciplined capital allocation. This clear strategic focus continues to guide our decisions and drive our aim to generate value for all our stakeholders. Whilst challenges at our Mara Rosa mine affected first-half performance, we are confident that we now have the right team in place to drive a turnaround. The operational review and temporary suspension of the plant will enable us to set a foundation for reliable production. Moving forward, this strengthened team will also play a vital role in advancing the development of Monte Do Carmo.

 

Operations

Although our operations delivered a mixed performance in the first half of the year, our flagship Inmaculada mine in Peru delivered a strong performance, with production slightly ahead of expectations, at 106,197 gold equivalent ounces (H1 2024: 109,502 ounces). At San Jose in Argentina, production was moderately lower than expected at 52,769 gold equivalent ounces (H1 2024: 56,737 ounces) with the production plan forecasting rising production in the second half.

 

Mara Rosa experienced a challenging first half of the year, with operations impacted by heavier-than-usual seasonal rainfall and contractor performance issues. These conditions restricted access to higher-grade zones within the pit and further exacerbated existing issues with filtering processes and delaying efforts to recover from mine waste removal backlogs carried over from 2024. I initiated and led a thorough review of the operation, following the resignation of our Chief Operating Officer in May. This review covers all aspects of mining, processing and permitting, and included a four-week suspension of the processing plant to perform essential maintenance and to allow the manufacturer to carry out mechanical filter repairs. Normal mining activities have continued throughout the period.

 

Gold production for the first half at Mara Rosa totalled 28,416 ounces, up from 14,354 ounces in the same period last year. During the mine's review process we remained actively engaged with all our stakeholders, including the local authorities and communities and are focused on restoring performance and unlocking the full potential of this asset. As part of this review, we were able to quickly implement a full reorganisation of our Brazilian operation, including the appointment of a new Brazil General Manager.

 

Projects

In terms of strategic delivery, we continued to make progress across our key exciting future growth projects. In Brazil, detailed engineering studies at our new Monte Do Carmo project in the Tocantins state is well underway and the installation licence is already secured. With the permitting pathway substantially de-risked and the lessons learnt from our experience at Mara Rosa being applied, we are preparing the project for a potential construction decision sometime in the first half of 2026. In Peru, we have advanced the Royropata project, having secured all necessary land easements in 2024. The team is currently preparing the necessary documentation to submit the Modified Environmental Impact Assessment application to the Peruvian government, which will also be in 2026.

 

Exploration

Exploration remains a key pillar of our growth strategy, and we are building on a record year of resource additions in 2024, with encouraging early results from ongoing drilling programmes at all three of our operations. At Inmaculada, continued success in the northern extension of the deposit has reinforced our confidence in the long-term potential at the deposit. New mineralisation has been identified beneath the main pit at Mara Rosa, and work is ongoing to extend the life-of-mine at San Jose. We expect to provide further updates on these programmes at the full-year results.

 

Financial results

Financial results reflect the increased production and significantly increased commodity pricing in the period versus H1 2024. Gold production was higher versus H1 2024 and therefore, when combined with a 28% increase in the average gold price achieved, revenue increased by 33% to $520.0 million (H1 2024: $391.7 million). Attributable AISC was $1,914 per gold equivalent ounce (H1 2024: $1,432 per ounce) with the significant increase due to the production issues at Mara Rosa and higher costs in Argentina reflecting inflation in the country and lower production. Cost inflation was further exacerbated by the impact of strong precious metal prices in royalties and selling expenses in Argentina, and workers' profit sharing in Peru. Adjusted EBITDA of $224.5 million (H1 2024: $177.1 million) mostly reflects the higher precious metal prices and increased production levels offset by significantly higher costs. Pre-exceptional earnings per share was $0.12 (H1 2024: $0.10 per share) and post-exceptional earnings per share was $0.18 (H1 2024: $0.08 per share).

 

Our financial position remains strong, with solid cash generation from Inmaculada and the benefit of higher precious metal prices during the period. As of 30 June 2025, we reported cash and cash equivalents of $109.8 million (31 December 2024: $97.0 million), with net debt reduced to $202.3 million. This compares to net debt of $215.6 million at year-end 2024. During the period, we also repurchased the stream on Monte Do Carmo for $13 million, partially removing a long-term encumbrance on the project and increasing our future exposure to gold prices. Indebtedness ratios improved slightly with net debt to EBITDA decreasing from 0.51x at 31 December 2024 to 0.43x at 30 June 2025. The Board is pleased to declare an interim dividend of 1.0 cent per share ($5.1 million).

 

Sustainability

Between 2024 and the first half of 2025, we achieved an 87% improvement in our ESG KPIs, a significant increase from the 56% improvement recorded between 2023 and 2024. Starting in 2025, our environmental and social KPI tracking has expanded to include Mara Rosa. Key achievements include an all-time high local workforce representation of 66% (2024: 59%), 32% of goods procured from local businesses (2024: 26%) and an impressive 89% waste recycling rate (2024: 57%). We also became a signatory of the UN Global Compact and published a standalone, independently certified Sustainability Report with reference to the GRI Standards. Our environmental, health, and safety performance remains strong, with an ECO Score of 5.57 out of 6 (2024: 5.58), no new cases of work-related illness, a Lost Time Injury Frequency Rate (LTIFR) of 1.08 (2024: 1.25), and zero fatalities. Our Safety and Environmental Cultural Transformation Programs continue to make strong progress.  These achievements are reflected in our latest MSCI ESG rating of BBB, and our inclusion in the FTSE4Good Index Series.

 

Outlook

Looking ahead, Hochschild remains focused on maintaining stability across its operations whilst carefully managing operational challenges in Brazil and the corresponding cost pressures. At Mara Rosa, testing at the processing plant is ongoing and filter performance continues to improve; however, we have revised our production forecast for the asset to 35,000-45,000 ounces for 2025 (previously 94,000-104,000 ounces). Our production guidance for Inmaculada and San Jose remains unchanged, meaning our revised Group production guidance is 291,000-319,000 gold equivalent ounces (previously 350,000-378,000 ounces).  As a result of the revised forecast at Mara Rosa, combined with sustained inflationary pressures in Argentina, the mining of lower-grade border areas of the veins at San Jose, and the impact of higher precious metal prices on royalties and export taxes in Argentina, we have updated our guidance on overall all-in sustaining cost from operations to $1,980 - $2,080 per gold equivalent ounce.

 

I would like to thank all our employees, contractors, local communities, and shareholders for their continued support and commitment. With a revitalised team in place and a clear strategy guiding us forward, we are confident in our ability to drive a recovery in Brazil. As we stay focused on delivering our objectives, we remain committed to building a stronger, more resilient business - one that is well-positioned for sustainable growth and long-term success.

 

Eduardo Landin, Chief Executive Officer

26 August 2025

 

 

 

OPERATING REVIEW

 

OPERATIONS

 

Note: All 2025 and 2024 silver/gold equivalent production figures assume a gold/silver ratio of 83:1.

 

Production

In H1 2025, Hochschild delivered attributable production of 161,597 gold equivalent ounces or 13.4 million silver equivalent ounces, with the increase resulting from an increased contribution from Mara Rosa versus H1 2024 when the mine was commissioning and ramping up production.

 

Total group production

	Six months to 30 June 2025	Six months to 30 June 2024
Silver production (koz)	4,624	5,016
Gold production (koz)	131.74	120.16
Total silver equivalent (koz)	15,559	14,989
Total gold equivalent (koz)	187.45	180.59
Silver sold (koz)	4,618	5,114
Gold sold (koz)	131.06	118.25

Total production includes 100% of all production, including production attributable to Hochschild's minority shareholder at San Jose.

 

Attributable group production

	Six months to 30 June 2025	Six months to 30 June 2024
Silver production (koz)	3,812	4,070
Gold production (koz)	115.67	103.75
Silver equivalent (koz)	13,413	12,682
Gold equivalent (koz)	161.60	152.79

Attributable production includes 100% of all production from Inmaculada and Mara Rosa and 51% from San Jose.  

 

The operational issues at Mara Rosa have resulted in a reduction in the production forecast. Plant testing is currently ongoing and the forecast therefore reflects the absence of output throughout most of the third quarter and includes a staged ramp-up in production thereafter. The forecasts for Inmaculada and San Jose remain unchanged. The revised guidance for 2025 is as follows:

 

Revised attributable 2025 production forecast split

Operation	Oz Au Eq
Inmaculada	199,000-209,000
San Jose	57,000-65,000
Mara Rosa	35,000-45,000
Total	291,000-319,000

 

Costs

Attributable AISC from operations in H1 2025 was $1,914 per gold equivalent ounce or $23.1 per silver equivalent ounce (H1 2024: $1,432 per gold equivalent ounce or $17.3 per silver equivalent ounce)^[7], significantly higher than H1 2024 mainly due to the higher costs and reduced production related to the issues at Mara Rosa as well as net inflation and lower grades in Argentina. In addition, higher precious metal prices resulted in increased royalties, selling expenses in Argentina, and increased workers´ profit sharing expense in Peru.

 

The expected attributable all-in sustaining cost from operations for 2025 has been revised to $1,980-$2,080 per gold equivalent ounce which reflects the significant reduction in production forecast for Mara Rosa, an additional $18.0 million for addressing operational issues at the mine, net inflation in Argentina and the mining of reduced grades from border areas of the veins at San Jose, and the impact of higher precious metal prices on royalties and selling expenses in Argentina.

 

Revised attributable 2025 AISC forecast split

Operation	$/oz Au Eq
Inmaculada	1,605-1,705
San Jose	2,200-2,350
Mara Rosa	3,400-3,800
Total from operations	1,980-2,080

 

Inmaculada

The 100% owned Inmaculada gold/silver underground operation is located in the Region of Ayacucho in southern Peru. It commenced operations in 2015.

 

Inmaculada summary	Six months to 30 June 2025	Six months to  30 June 2024	% change
Ore production (tonnes)	672,720	537,774	25
Average silver grade (g/t)	153	190	(19)
Average gold grade (g/t)	3.47	4.25	(18)
Silver produced (koz)	2,961	3,086	(4)
Gold produced (koz)	70.52	72.32	(2)
Silver equivalent produced (koz)	8,814	9,089	(3)
Gold equivalent produced (koz)	106.20	109.50	(3)
Silver sold (koz)	2,951	3,032	(3)
Gold sold (koz)	71.19	71.19	-
Unit cost ($/t)	138.2	144.6	(4)
Total cash cost ($/oz Au co-product)	939	739	27
All-in sustaining cost ($/oz Au Eq)[8]	1,535	1,321	14

 

Production                    

Inmaculada's first half production was 70,520 ounces of gold and 3.0 million ounces of silver, which amounts to a gold equivalent output of 106,197 ounces (H1 2024: 109,502 ounces), a 3% reduction from the first half of 2024 due to expected reduced grades, partially offset by higher-than-expected tonnage resulting from ongoing efficiency initiatives begun in H1 2024.

 

Costs

AISC was $1,535 per gold equivalent ounce (H1 2024: $1,321 per ounce)⁹. The increase versus the same period of 2024 was forecasted and is mainly the result of higher production volumes impacting production costs and higher workers profit sharing driven by higher precious metal prices. In addition, in H1 2025 there were scheduled lower gold and silver grades.

 

San Jose

The San Jose silver/gold mine is located in Argentina, in the province of Santa Cruz, 1,750km southwest of Buenos Aires. San Jose commenced production in 2007. Hochschild holds a controlling interest of 51% in the mine and is the mine operator. The remaining 49% interest is owned by McEwen Mining Inc.

                       

San Jose summary (100%)	Six months to 30 June 2025	Six months to 30 June 2024	% change
Ore production (tonnes)	334,562	268,853	24
Average silver grade (g/t)	185	255	(27)
Average gold grade (g/t)	3.71	4.47	(17)
Silver produced (koz)	1,657	1,930	(14)
Gold produced (koz)	32.80	33.49	(2)
Silver equivalent produced (koz)	4,380	4,709	(7)
Gold equivalent produced (koz)	52.77	56.74	(7)
Silver sold (koz)	1,661	2,079	(20)
Gold sold (koz)	31.71	35.29	(10)
Unit cost ($/t)	307.5	268.4	15
Total cash cost ($/oz Ag co-product)	24.4	17.1	43
All-in sustaining cost ($/oz Au Eq)	2,660	1,809	47

 

Production

The first half of the year at San Jose in Argentina is traditionally a shorter operational period due to the scheduled workers' holiday, which occurs in the first quarter. The operation delivered a better second quarter with higher grades resulting in the H1 total of 4.4 million silver equivalent ounces (H1 2024: 4.7 million ounces) with tonnage increased versus H1 2024 due to the expansion of the plant's capacity - completed at the end of 2024 - to process lower grade material.

 

Costs

AISC was $2,660 per gold equivalent ounce (H1 2024: $1,809 per ounce) with the significant increase versus H1 2024 mostly due to: net inflation in Argentina, the mining of lower-grade border areas of the veins at San Jose, the impact of higher precious metal prices on royalties and selling expenses, and the impact of the removal of the export benefit in April 2025 which had allowed the Company to settle a portion of exports at the blue dollar rate.

 

Mara Rosa

The Mara Rosa gold mine is located in Brazil, in the province of Goias, 320km northwest of Brasilia. Mara Rosa reached commercial production in May 2024.

 

Mara Rosa summary	Six months to  30 June 2025	Six months to 30 June 2024	% change
Ore production (tonnes)	988,637	552,744	79
Average silver grade (g/t)	0.32	-	-
Average gold grade (g/t)	0.95	1.28	(26)
Silver produced (koz)	6	-	-
Gold produced (koz)	28.42	14.35	98
Silver equivalent produced (koz)	2,365	1,191	99
Gold equivalent produced (koz)	28.49	14.35	99
Silver sold (koz)	6	2	200
Gold sold (koz)	28.16	11.84	138
Unit cost ($/t)	59.7	66.6	(10)
Total cash cost ($/oz Au co-product)	1,866	2,622	(29)
All-in sustaining cost ($/oz Au Eq)	2,627	1,495	76

 

Production

Following Q1 2025, the Company reported that operations at Mara Rosa were adversely affected by heavier-than-usual seasonal rainfall and contractor performance issues. These challenges restricted access to ore-particularly higher-grade zones-and compounded persistent problems with the filtering processes. Consequently, efforts to recover from mine waste removal delays, carried over from the previous year, were further hampered.

 

To address these issues, the CEO, Eduardo Landin, temporarily assumed operational responsibilities and initiated a thorough review of mining, processing, permitting, and waste management activities. As part of this effort, the Company suspended processing operations for approximately one month to carry out necessary maintenance and upgrades across the crushing, milling, and filtering circuits, whilst mining activities continued uninterrupted.

 

Production resumed at the plant in July using two of the four tailings filters, with the remaining two expected to come online in October after ongoing maintenance and testing. Performance is steadily improving, and the installation of a tailings thickener - planned for H1 2026 - is expected to enable the plant to reach full capacity during that period. The thickener will improve solids content ahead of filtration. Actual filtration capacity is currently being reassessed to determine whether additional work is required. These remedial actions have been communicated to the local environmental authorities.

 

Gold production for H1 2025 totalled 28,416 ounces (H1 2024: 14,354 ounces), with the increase due to the mine being in the commissioning and ramp-up phase in H1 2024. Full-year 2025 output is forecast between 35,000 and 45,000 ounces (previously 94,000-104,000 ounces).

 

In parallel, the Company has also implemented a full reorganisation of its Brazil operations, including the previously announced appointment of a new Brazil General Manager as well as a new Operations Manager, alongside a revamped management structure.

 

Costs

Due to the reduced production versus expectations as well as lower grades, as explained above, AISC was elevated at $2,627 per gold equivalent ounce (H1 2024: $1,495 per ounce) with the expectation that high costs will continue in the second half with most of the third quarter taken up with the plant stoppage and testing followed by a ramp-up in processing.

 

 

ADVANCED PROJECT: MONTE DO CARMO

Work has continued on the Monte Do Carmo project in the first half and included:

§ Detailed engineering

§ Completion of metallurgical testwork

§ Meetings with the Governor of the state of Tocantins

§ Meeting with Tocantins state agency to discuss workforce development plans

§ Award of the installation licence

§ Signing of contract for transmission line and power distribution network to support water intake and construction infrastructure

§ Evaluation of the use of water harvesting for the project

§ Review of proposed filtration system

§ Validation of pit engineering study

 

BROWNFIELD EXPLORATION

Inmaculada

During the first half of the year, the team carried out a further 8,392m of potential drilling in the Anomalia 1, Anomalia 4, Martha, Mariana and San Martin structures and 2,024m of resource drilling in the Mariana vein.

 

Vein	Results (potential)
Anomalia 1	IMM25-422: 1.6m @ 2.2g/t Au & 94g/t Ag
Anomalia 4	IMM25-422: 1.1m @ 1.5g/t Au & 210g/t Ag
Martha	IMM25-423A: 0.9m @ 2.3g/t Au & 53g/t Ag
Mariana	IMM25-282: 1.2m @ 0.9g/t Au & 100g/t Ag
San Martin	IMS25-281A: 0.9m @ 0.3g/t Au & 99g/t Ag IMS25-290: 1.4m @ 0.5g/t Au & 15g/t Ag

 

Vein	Results (resources)
Mariana	IMM25-286: 1.7m @ 1.4g/t Au & 55g/t Ag IMM25-288: 1.6m @ 2.2g/t Au & 113g/t Ag IMM25-293: 0.9m @ 0.7g/t Au & 89g/t Ag

 

During the third quarter, the Company expects to carry out 1,800m of potential drill holes as well as 5,200m of resource drilling in the Melisa vein and drilling deeper into the Angela vein.

 

San Jose

During the first half, the team carried out 2,827m of potential drilling in the Escondida, Agostina, Isabel, Isabel 2, Isabel North, Pilar SE, Emilia, Luli, and Tonga veins

 

Vein	Results (potential)
Escondida	SJD-2979: 1.7m @ 1.1g/t Au & 30g/t Ag SJD-3003: 0.9m @ 30.5g/t Au & 153g/t Ag
Agostina	SJD-2469: 2.5m @ 3.8g/t Au & 182g/t Ag
Isabel	SJD-2969: 1.7m @ 2.1g/t Au & 181g/t Ag SJD-2972: 0.5m @ 0.2g/t Au & 18g/t Ag
Isabel I	SJD-2970: 0.6m @ 2.1g/t Au & 112g/t Ag SJD-2972: 2.4m @ 1.1g/t Au & 46g/t Ag SJD-2973: 0.9m @ 0.8g/t Au & 70g/t Ag
Isabel II	SJD-2973: 0.6m @ 2.2g/t Au & 205g/t Ag
Isabel N	SJD-2972: 1.5m @ 2.5g/t Au & 109g/t Ag SJD-2972: 4.2m @ 1.3g/t Au & 121g/t Ag

 

During the third quarter, the Company will finish potential drilling in the Isabel and Escondida veins and start work on drilling for potential in Saavedra West and in the Betania and Florencia breccias.

 

Mara Rosa

Within the district, the team drilled 3,009m of potential in Pastinho North, Grid A and the Jatoba areas intercepting low grade narrow structures.

 

 

Vein	Results (resources)
Posse	25POSP_019A: 43.3m @ 0.5g/t Au 25POSP_020: 40.3m @ 0.5g/t Au 25POSP_022: 15.7m @ 0.4g/t Au 25POSP_023: 5.8m @ 0.4g/t Au 25POSP_024: 22.2m @ 0.3g/t Au
Posse-Passo	25POSP_030: 40.3m @ 0.5g/t Au 25POSP_030: 0.4m @ 1.9g/t Au 25POSP_020: 0.6m @ 6.7g/t Au 25POSP_032: 55.3m @ 0.3g/t Au 25POSP_031: 46.6m @ 0.3g/t Au 25POSP_033: 30.2m @ 0.3g/t Au

 

During the third quarter, the team at Mara Rosa will continue resource drilling in Posse and also potential drilling in Morro Redondo.

 

Monte Do Carmo

During the period, 3,099m of potential drilling was executed in the Dourado, Cigando, Adebaldo, Serra Alta and Gogo targets, along with 1,007m of resource drilling in Serra Alta and Gogo.

 

Vein	Results (potential)
Serra Alta	25SAP_002: 0.8m @ 0.6g/t Au
Gogo	25GO_002: 2.2m @ 1.4g/t Au 25GO_002: 6.5m @ 0.3g/t Au 25GO_002: 2.1m @ 5.0g/t Au 25GO_002: 0.6m @ 0.9g/t Au 25GO_002: 0.7m @ 0.5g/t Au
Dourado	25DOU_001: 0.8m @ 10.4g/t Au
Cigano	25CIG_001: 0.6m @ 0.7g/t Au 25CIG_001: 0.4m @ 0.7g/t Au 25CIG_001: 0.4m @ 1.2g/t Au
Adebaldo	25ADE_001: 6.7m @ 0.2g/t Au 25ADE_001: 3.6m @ 0.2g/t Au 25ADE_001: 0.7m @ 1.2g/t Au 25ADE_001: 1.1m @ 0.7g/t Au

 

Vein	Results (resources)
Gogo	25GO_004: 1.9m @ 0.5g/t Au 25GO_004: 1.4m @ 0.5g/t Au 25GO_004: 1.0m @ 0.3g/t Au

 

During the third quarter, the team will continue work in Serra Alta and inferred drilling in the Boqueirao target.

 

 

 

FINANCIAL REVIEW

The reporting currency of Hochschild Mining PLC is US dollars. In discussions of financial performance, the Group removes the effect of exceptional items, unless otherwise indicated, and in the income statement results are shown both pre and post such exceptional items. Exceptional items are those items, which due to their nature or the expected infrequency of the events giving rise to them, need to be disclosed separately on the face of the income statement to enable a better understanding of the financial performance of the Group and to facilitate comparison with prior periods.

 

Revenue

Gross revenue[9]

Gross revenue increased by 32% to $527.5 million in H1 2025 (H1 2024: $399.8 million) due to higher average realised precious metal prices and higher gold production, partially offset by lower silver production. Gold output increased in Mara Rosa, where commercial production commenced in May 2024.

 

Gold

Gross revenue from gold increased to $371.2 million (H1 2024: $261.3 million) due to the 28% increase in the average realised gold price and higher gold production in Mara Rosa.

 

Silver

Gross revenue from silver increased to $156.2 million (H1 2024: $138.2 million) due to the 25% increase in the average realised silver price, partially offset by lower silver production in San Jose and Inmaculada.

 

Gross average realised sales prices

The following table provides figures for average realised prices (before the deduction of commercial discounts) and ounces sold for H1 2025 and H1 2024:

 

Ounces sold and average realised prices	Six months to 30 June 2025	Six months to 30 June 2024
Gold ounces sold (koz)	131.06	118.25
Avg. realized gold price ($/oz)	2,832	2,210
Silver ounces sold (koz)	4,618	5,114
Avg. realized silver price ($/oz)	33.8	27.0

 

Hedges      

H1 2025 realised prices and revenue include the effect of the following hedges: forwards for 50,000 gold ounces of 2025 at a price of $2,117 per ounce, and zero cost collars for 60,000 gold ounces of 2025 production at a strike put of $2,000 per ounce and a strike call of $2,485 per ounce, the impact of which was a realised loss of $41.5 million in H1 2025. H1 2024 realised prices and revenue include the effect of the following hedges: forwards for 27,600 gold ounces of 2024 production at a price of $2,100 per ounce, and zero cost collars for 100,000 gold ounces of 2024 production at a strike put of $2,000 per ounce and a strike call of $2,252 per ounce, the impact of which was a realised loss of $4.3 million in H1 2024.

 

Commercial discounts

Commercial discounts refer to refinery treatment charges, refining fees and payable deductions for processing concentrate, and are deducted from gross revenue on a per tonne basis (treatment charge), per ounce basis (refining fees) or as a percentage of gross revenue (payable deductions). In H1 2025, the Group recorded commercial discounts of $7.5 million (H1 2024: $8.0 million). The ratio of commercial discounts to gross revenue in H1 2025 was 1.4% (H1 2024: 2.0%).

 

Revenue

Revenue was $520.0 million (H1 2024: $391.7 million), comprising net gold revenue of $366.9 million (H1 2024: $256.6 million) and net silver revenue of $153.0 million (H1 2024: $134.8 million). In H1 2025, gold accounted for 71% and silver for 29% of the Company's consolidated net revenue (H1 2024: gold 66% and silver 34%).

 

Reconciliation of gross revenue by mine to Group net revenue

$000	Six months to 30 June 2025	Six months to 30 June 2024	% change
Gold revenue
Inmaculada	201,736	154,364	31
San Jose	107,305	81,671	31
Mara Rosa	62,152	25,430	144
Pallancata	-	(185)	(100)
Commercial discounts from concentrates	(4,319)	(4,635)	(7)
Net gold revenue	366,874	256,645	43
Silver revenue
Inmaculada	96,644	79,715	21
San Jose	59,341	58,521	1
Mara Rosa	197	59	234
Pallancata	-	(59)	(100)
Commercial discounts from concentrates	(3,215)	(3,394)	(5)
Net silver revenue	152,967	134,842	13
Other revenue	169	253	(33)
Revenue	520,010	391,740	33

 

Costs

Total cost of sales was $327.7 million in H1 2025 (H1 2024: $248.1 million). The direct production cost excluding depreciation and amortisation was higher at $255.0 million (H1 2024: $194.9 million) mainly due to higher production volume across all operations, production cost inflation in Argentina and rising precious metal prices resulting in increased royalties. Depreciation and amortisation in production cost increased to $80.0 million (H1 2024: $68.6 million) mainly due to higher production volume, including new production in Mara Rosa, and incremental depreciation from future capex in Inmaculada. Fixed costs at the operation during reduced capacity and stoppages in Mara Rosa of $1.9 million in H1 2025 (H1 2024: San Jose of $1.1 million due to bad weather). Increase in inventories was $14.5 million in H1 2025 (H1 2024: $17.2 million) mainly due to higher products in process of $14.1 million in Mara Rosa.  

 

$000	Six months to 30 June 2025	Six months to 30 June 2024	% change
Direct production cost excluding depreciation and amortisation	255,007	194,850	31
Depreciation and amortisation in production cost	80,015	68,612	17
Workers' profit sharing	5,396	853	533
Fixed costs during operational stoppages and reduced capacity	1,864	1,062	76
Change in inventories	(14,538)	(17,237)	(16)
Cost of sales	327,744	248,140	32

 

Fixed costs during operational stoppages and reduced capacity:

$000	Six months to 30 June 2025	Six months to 30 June 2024	% change
Personnel	347	703	(51)
Third party services	702	301	133
Supplies	153	33	364
Depreciation and amortisation	40	-	100
Others	622	25	2,388
Cost of sales	1,864	1,062	76

 

Unit cost per tonne

The Company reported unit cost per tonne at its operations of $125.4 per tonne in H1 2025, a slight decrease versus H1 2024 ($128.8 per tonne).

 

Unit cost per tonne by operation (including royalties)[10]:

Operating unit ($/tonne)	Six months to 30 June 2025	Six months to 30 June 2024	% change
Peru	138.2	144.6	(4)
Inmaculada	138.2	144.6	(4)
Argentina
San Jose	307.5	268.4	15
Brazil Mara Rosa	59.7	66.6	(10)
Total	125.4	128.8	(3)

Cash costs

Cash costs include cost of sales, commercial deductions and selling expenses before exceptional items, less depreciation and amortisation included in cost of sales.

 

Cash cost reconciliation[11]

Six months to 30 June 2025

$000 unless otherwise indicated	Inmaculada	Pallancata	San Jose	Mara Rosa	Total
(+) Cost of sales[12]	148,233	-	120,019	57,628	325,880
(-) Depreciation and amortisation in cost of sales	(51,442)	-	(20,149)	(5,831)	(77,422)
(+) Selling expenses	355	-	7,381	607	8,343
(+) Commercial deductions[13]	1,683	-	7,745	305	9,733
Gold	1,182	-	4,444	302	5,928
Silver	501	-	3,301	3	3,805
Group cash cost	98,829	-	114,996	52,709	266,534
Gold	201,736	-	103,022	62,116	366,874
Silver	96,644	-	56,128	195	152,967
Revenue	298,380	-	159,150	62,311	519,841
Ounces sold
Gold	71.2	-	31.7	28.2	131.1
Silver	2,951	-	1,661	6	4,618
Group cash cost ($/oz)
Co product Au	939	-	2,348	1,866	1,435
Co product Ag	10.85	-	24.41	27.02	16.98
By product Au	24	-	1,753	1,865	837
By product Ag	(35.27)	-	4.53	(1,590.16)	(23.01)

 

Six months to 30 June 2024

$000 unless otherwise indicated	Inmaculada	Pallancata	San Jose	Mara Rosa	Total
(+) Cost of sales[14]	122,593	-	92,217	32,268	247,078
(-) Depreciation and amortisation in cost of sales	(44,704)	-	(22,225)	(1,498)	(68,427)
(+) Selling expenses	286	14	7,042	273	7,615
(+) Commercial deductions[15]	1,614	11	8,302	73	10,000
Gold	1,167	1	4,807	73	6,048
Silver	447	10	3,495	-	3,952
Group cash cost	79,789	25	85,336	31,116	196,266
Gold	154,364	(186)	77,037	25,430	256,645
Silver	79,715	(69)	55,137	59	134,842
Revenue	234,079	(255)	132,174	25,489	391,487
Ounces sold
Gold	71.2	(0.1)	35.3	11.8	118.3
Silver	3,032	1	2,079	2	5,114
Group cash cost ($/oz)
Co product Au	739	(230)	1,409	2,622	1,088
Co product Ag	8.96	14.94	17.12	35.67	13.22
By product Au	(5)	(1,058)	757	2,623	486
By product Ag	(24.98)	463.91	1.68	2,779.59	(12.99)

                       

Co-product cash cost per ounce is the cash cost allocated to the primary metal (allocation based on proportion of revenue), divided by the ounces sold of the primary metal. By-product cash cost per ounce is the total cash cost minus revenue and commercial discounts of the by-product divided by the ounces sold of the primary metal.

 

All-in sustaining cost reconciliation[16]

All-in sustaining cash costs per silver and gold equivalent ounce

 

The Company has calculated its all-in sustaining cost per gold and silver equivalent ounce on an attributable basis and excludes Peruvian royalties which are recognised in the income tax line. Management believes that the updated methodology better aligns with prevailing industry practices and enhances comparability with peers. All previous periods have been restated to reflect this change.

 

Six months to 30 June 2025

 

$000 unless otherwise indicated	Inmaculada	San Jose	Mara Rosa	Main operations	Corporate  & others	Total
(+) Direct production cost excluding depreciation and amortisation	93,207	98,176	63,624	255,007	-	255,007
(+) Other items and workers profit sharing in cost of sales[17]	5,822	(2,142)	770	4,450	-	4,450
(+) Operating and exploration capex for units[18]	57,455	20,900	7,679	86,034	670	86,704
(+) Brownfield exploration expenses[19]	2,036	4,356	473	6,865	2,239	9,104
(+) Administrative expenses (excl depreciation and amortisation)	2,506	3,649	1,372	7,527	14,971	22,498
Sub-total	161,026	124,939	73,918	359,883	17,880	377,763
Sub-total attributable	161,026	63,719	73,918	298,663	17,880	316,543
Attributable Au ounces produced	70,520	16,730	28,416	115,666	-	115,666
Attributable Ag ounces produced (000s)	2,961	845	6	3,812	-	3,812
Attributable Ounces produced (Au Eq oz)	106,197	26,912	28,488	161,597	-	161,597
Attributable Ounces produced (Ag Eq 000s oz)	8,814	2,234	2,365	13,413	-	13,413
Attributable all-in sustaining costs per oz produced ($/oz Au Eq)	1,516	2,368	2,595	1,848	111	1,959
Attributable all-in sustaining costs per oz produced ($/oz Ag Eq)	18.3	28.5	31.3	22.3	1.3	23.6
(+) Commercial deductions	1,683	7,745	305	9,733	-	9,733
(+) Selling expenses	355	7,381	607	8,343	-	8,343
Sub-total	2,038	15,126	912	18,076	-	18,076
Sub-total attributable	2,038	7,714	912	10,664	-	10,664
Attributable Au ounces sold	71,195	16,170	28,160	115,525	-	115,525
Attributable Ag ounces sold (000s)	2,951	847	6	3,804	-	3,804
Attributable ounces sold (Au Eq oz)	106,751	26,377	28,234	161,362	-	161,362
Attributable ounces sold (Ag Eq 000s oz)	8,860	2,189	2,343	13,392	-	13,392
Sub-total ($/oz Au Eq) attributable	19	292	32	66	-	66
Sub-total ($/oz Ag Eq) attributable	0.2	3.5	0.4	0.8	-	0.8
Attributable all-in sustaining costs per oz sold ($/oz Au Eq)	1,535	2,660	2,627	1,914	111	2,025
Attributable all-in sustaining costs per oz sold ($/oz Ag Eq)	18.5	32.0	31.7	23.1	1.3	24.4

 

Six months to 30 June 2024[20]

 

$000 unless otherwise indicated	Inmaculada	San Jose	Mara Rosa[21]	Main operations	Corporate & others	Total
(+) Direct production cost excluding depreciation and amortisation	75,884	72,522	46,444	194,850	-	194,850
(+) Other items and workers profit sharing in cost of sales[22]	853	(8,399)	(30,403)	(37,949)	-	(37,949)
(+) Operating and exploration capex for units[23]	62,149	16,604	968	79,721	39	79,760
(+) Brownfield exploration expenses[24]	1,374	4,489	-	5,863	1,346	7,209
(+) Administrative expenses (excl depreciation and amortisation)	2,382	3,003	580	5,965	14,747	20,712
Sub-total	142,642	88,219	17,589	248,450	16,132	264,582
Sub-total attributable	142,642	44,992	17,589	205,223	16,132	221,355
Attributable Au ounces produced	72,317	17,080	11,937	101,334	-	101,334
Attributable Ag ounces produced (000s)	3,086	984	-	4,040	-	4,040
Attributable Ounces produced (Au Eq oz)	109,502	28,936	11,937	150,376	-	150,376
Attributable Ounces produced (Ag Eq 000s oz)	9,089	2,401	991	12,481	-	12,481
Attributable all-in sustaining costs per oz produced ($/oz Au Eq)	1,303	1,555	1,473	1,365	107	1,472
Attributable all-in sustaining costs per oz produced ($/oz Ag Eq)	15.7	18.7	17.8	16.4	1.3	17.7
(+) Commercial deductions	1,614	8,302	11	9,927	-	9,927
(+) Selling expenses	286	7,042	190	7,518	-	7,518
Sub-total	1,900	15,344	201	17,445	-	17,445
Sub-total attributable	1,900	7,825	201	9,926	-	9,926
Attributable Au ounces sold	71,194	17,999	9,464	98,657	-	98,657
Attributable Ag ounces sold (000s)	3,032	1,060	2	4,094	-	4,094
Attributable ounces sold (Au Eq oz)	107,734	30,772	9,482	147,988	-	147,988
Attributable ounces sold (Ag Eq 000s oz)	8,942	2,554	787	12,283	-	12,283
Sub-total ($/oz Au Eq) attributable	18	254	22	67	-	67
Sub-total ($/oz Ag Eq) attributable	0.2	3.1	0.3	0.8	-	0.8
Attributable all-in sustaining costs per oz sold ($/oz Au Eq)	1,321	1,809	1,495	1,432	107	1,539
Attributable all-in sustaining costs per oz sold ($/oz Ag Eq)	15.9	21.8	18.0	17.3	1.3	18.6

 

Administrative expenses

Administrative expenses of $23.7 million (H1 2024: $23.6 million) are in line with the first half of 2024.

 

Exploration expenses

In H1 2025, exploration expenses decreased to $12.2 million (H1 2024: $13.5 million) mainly due to expenditure on exploration at Monte Do Carmo of $1.6 million recognised in the income statement in H1 2024.

 

In addition, the Group capitalises part of its brownfield exploration, which mostly relates to costs incurred converting potential resources to the Inferred or Measured and Indicated categories. In H1 2025, the Company capitalised $2.4 million relating to brownfield exploration (H1 2024: $0.9 million), bringing the total investment in exploration for H1 2025 to $14.6 million (H1 2024: $14.4 million).

 

Selling expenses

Selling expenses increased to $8.3 million (H1 2024: $7.6 million) mainly due to higher transportation costs in Mara Rosa.

 

Other income/expenses

Other income was lower at $6.0 million (H1 2024: $12.4 million) mainly due to the ending in April 2025, of the Argentinian Government export programme which entitled the Company to settle a portion of San Jose's exports at the blue chip exchange rate ($3.0 million). (H1 2024: $8.4 million). The programme was available from October 2023 through April 2025.

 

Other expenses were higher at $29.1 million (H1 2024: $14.8 million) mainly due to the increase in provision for mine closure of $11.5 million (H1 2024: $nil) and the provision for recovery of the ICMS credit (state tax on circulation of merchandise and transportation & communication services in Brazil) of $2.3 million (H1 2024: $nil).

 

Adjusted EBITDA

Adjusted EBITDA increased by 27% to $224.5 million (H1 2024: $177.1 million) mainly due to the increase in revenues resulting from increased precious metal prices and higher gold production, partially offset by higher costs of sales and lower income from the export programme in Argentina.

 

Adjusted EBITDA is calculated as profit from continuing operations before exceptional items, net finance costs, foreign exchange losses and income tax plus non-cash items (depreciation and amortisation and changes in mine closure provisions) and exploration expenses other than personnel and other exploration-related fixed expenses.

 

$000 unless otherwise indicated	Six months to 30 June 2025	Six months to 30 June 2024	% change
Profit from continuing operations before exceptional items, net finance income/(cost), foreign exchange loss and income tax	124,428	96,272	29
Depreciation and amortisation in cost of sales	77,462	68,427	13
Depreciation and amortisation in administrative and other expenses	1,383	1,433	(3)
Exploration expenses	12,181	13,509	(10)
Personnel and other exploration related fixed expenses	(3,073)	(2,560)	20
Other non-cash income, net [25]	12,091	60	20,052
Adjusted EBITDA	224,472	177,141	27
Adjusted EBITDA margin	43%	45%	(4)

 

Finance income

Finance income decreased to $3.9 million (H1 2024: $7.3 million), mainly due to the lower gain on Argentinean mutual funds of $0.9 million (H1 2024: $4.6 million), partially offset by a $1.3 million gain on the execution of the buy-down option related to the stream agreements with Sprott in H1 2025.

 

Finance costs

Finance costs increased from $15.2 million in H1 2024 to $16.6 million in H1 2025 principally due to: the unrealised fair value loss of the financial liability related to the stream agreements with Sprott of $2.4 million (H1 20224: $nil), higher interest expense which totalled $10.4 million (H1 2024: $9.6 million) resulting from the lower capitalisation of interest expenses that are directly attributable to the Monte Do Carmo project of $2.8 million (H1 2024: $5.9 million directly attributable to the construction of Mara Rosa) partially offset by the impact of lower interest rates and a lower average medium-term loan balance. These effects were partially offset by the loss from changes in fair value of Argentinean bonds held in H1 2024 of $2.4 million.

 

Foreign exchange losses

Foreign exchange losses decreased from $4.6 million in H1 2024 to $1.5 million in H1 2025 mainly due to a lower loss from the devaluation of the local currency on monetary assets in Argentina of $2.4 million (H1 2024: $3.8 million) and the foreign exchange gain in Brazil of $0.9 million (H1 2024: loss of $0.9 million).

 

Income tax

The Company's pre-exceptional income tax charge was $42.8 million (H1 2024: $19.1 million), and includes royalties and special mining tax of $10.7 million (H1 2024: $6.3 million) and withholding tax of $6.2 million (H1 2024: 0.2 million). The tax expense includes deferred income tax income due to the impact of the revaluation of the local currency in Peru of $3.9 million (H1 2024: net inflation in Argentina of $8.7 million). H1 2024 includes the recognition of a deferred tax asset of $3.7 million related to the energy transmission line of Mara Rosa.

 

The total effective tax rate was 30.6% (2024: 25.8%).

 

Exceptional items

In H1 2025, exceptional items reflect the reversal of impairment of the Volcan project of US$30.8 million which was driven by the impact of higher gold prices, with no tax impact (H1 2024: includes impairment losses at the Azuca and Arcata projects of $13.7 million, with a corresponding tax gain of $1.2 million). 

 

Cash flow and balance sheet review         

Cash flow

$000	Six months to 30 June 2025	Six months to 30 June 2024	% Change
Net cash generated from operating activities	153,803	100,795	53
Net cash used in investing activities	(110,539)	(112,141)	(1)
Cash flows (used in)/from financing activities	(29,825)	11,799	(353)
Foreign exchange adjustment	(571)	(441)	29
Net increase/(decrease) in cash and cash equivalents during the period	12,868	12	107,133

 

Net cash generated from operating activities increased from $100.8 million in H1 2024 to $153.8 million in H1 2025 mainly due to higher adjusted EBITDA of $224.5 million (H1 2024: $177.1 million).

 

Net cash used in investing activities decreased to $110.5 million in H1 2025 from $112.1 million in H1 2024, mainly due to: reduced capex at Mara Rosa of $7.7 million (H1 2024: $18.3 million), lower capex at Monte Do Carmo of $5.1 million (H1 2024: first payment of the option to acquire the project, including transaction costs, of $16.2 million). These effects were partially offset by the consideration received for the sale of Crespo project net of transaction costs of $13.9 million in H1 2024, and the investment in Aclara Resources Inc. of $5.0 million in H1 2025 (H1 2024: $nil).

 

Cash generated from/(used in) financing activities decreased from an inflow of $11.8 million in H1 2024 to an outflow of $29.8 million in H1 2025, primarily due to the $140.0 million repayment of the existing $200.0 medium-term facility (2024: $65 million withdrawal), the payment for the execution of the buy-down option related to the Sprott stream agreements of $13.0 million in H1 2025, and payments of dividends to shareholders of $10.1 million (H1 2024: $nil). These effects were partially offset by the draw-down of $90.0 million from the $300.0 million medium-term loan facility (2024: $50 million repayment), and a net increase of $50.0 million in short and medium-term bank loans (H1 2024: $1.0 million repayment of Minera Santa Cruz stock market promissory notes).

 

Working capital

$000	As at             30 June 2025	As at                     31 December 2024
Trade and other receivables	120,564	135,814
Inventories	94,736	87,087
Trade and other payables	(182,392)	(208,222)
Derivative financial assets/(liabilities)	(84,525)	(40,276)
Income tax receivable (payable), net	(27,695)	(21,019)
Provisions	(21,866)	(35,082)
Working capital	(101,178)	(81,698)

 

The Group's working capital position in H1 2025 decreased by $19.5 million from $(81.7) million to $(101.2) million. The key drivers were: higher derivative financial liabilities of $44.2 million, lower trade and other receivables of $15.3 million; partially offset by lower trade and other payables of $25.8 million and lower provisions of $13.2 million.

 

Net debt

$000 unless otherwise indicated	As at              30 June 2025	As at             31 December 2024
Cash and cash equivalents	109,841	96,973
Non-current borrowings	(190,000)	(163,333)
Current borrowings[26]	(122,129)	(149,249)
Net debt	(202,288)	(215,609)

 

The Group's reported net debt position was $202.3 million as at 30 June 2025 (31 December 2024: $215.6 million). Net debt to EBITDA was 0.4x (31 December 2024: 0.5x) [27].

 

Capital expenditure^[28]

$000	Six months to                            30 June 2025	Six months to                            30 June 2024
Inmaculada	60,027	62,149
San Jose	22,807	18,767
Mara Rosa	7,694	24,175
Operations	90,528	105,091
Monte Do Carmo	7,866	16,200
Pallancata	3,852	6,897
Volcan	1,193	707
Corporate & Other	3,560	405
Total	106,999	129,300

 

Capital expenditure decreased from $129.3 million in H1 2024 to $107.0 million in H1 2025 mainly due to reduced capex at Mara Rosa of $7.7 million (H1 2024: $18.3 million and capitalised interest of $5.9 million), lower capex at Monte Do Carmo of $5.1 million (H1 2024: first payment of the option to acquire the project, including transaction costs, of $16.2 million), and capitalised interest expenses related to the Monte Do Carmo project of $2.8 million in H1 2025.

 

Non-IFRS Financial Performance Measures

The Company has included certain non-IFRS measures in this news release. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardised meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

 

Forward looking statements

This announcement contains certain forward looking statements, including such statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, such forward looking statements may relate to matters such as the business, strategy, investments, production, major projects and their contribution to expected production and other plans of Hochschild Mining PLC and its current goals, assumptions and expectations relating to its future financial condition, performance and results.

 

Forward-looking statements include, without limitation, statements typically containing words such as "intends", "expects", "anticipates", "targets", "plans", "estimates" and words of similar import. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of Hochschild Mining PLC may be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Factors that could cause or contribute to differences between the actual results, performance or achievements of Hochschild Mining PLC and current expectations include, but are not limited to, legislative, fiscal and regulatory developments, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. The Company cautions against undue reliance on any forward looking statement or guidance, particularly in light of the current economic climate. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

 

The forward looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, Hochschild Mining PLC does not undertake any obligation to update or change any forward looking statements to reflect events occurring after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.

 

RISKS

The principal risks and uncertainties facing the Company in respect of the year ended 31 December 2024 are set out in detail in the Risk Management section of the 2024 Annual Report and in Note 39 to the 2024 Consolidated Financial Statements.

 

The key risks disclosed in the 2024 Annual Report (available at hochschildmining.com) are categorised as:

 

§ Financial risks comprising commodity price risk and, commercial counterparty risk;

§ Operational risks including the risks associated with operational performance, business interruption/supply chain, information security and cybersecurity, exploration & reserve and resource replacement, personnel, and political, legal and regulatory risks; and

§ Sustainability risks including risks associated with health and safety, environment, climate change and community relations.

 

The risks referred to above continue to apply to the Company in respect of the remaining six months of the financial year. 

 

RELATED PARTY TRANSACTIONS

Related party transactions are disclosed in Note 33 to the 2024 Consolidated Financial Statements. No significant transactions with related parties during the six months period ended 30 June 2025.

 

 

GOING CONCERN

After their review, the Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence during the Going Concern Period (as defined in Note 2 of the interim condensed consolidated financial statements (Material Accounting Policies). Accordingly, the Directors are satisfied the going concern basis of accounting is appropriate in preparing the interim condensed consolidated financial statements. For further detail, refer to the Going concern disclosure in the aforementioned Note 2.  

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that, to the best of their knowledge, the interim condensed consolidated financial statements have been prepared in accordance with UK adopted International Accounting Standard 34 "Interim Financial Reporting" and that the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rules 4.2.7R and 4.2.8R.

 

A list of current Directors and their functions is maintained on the Company's website.

 

For and on behalf of the Board

 

Eduardo Landin
Chief Executive Officer

26 August 2025

 

INDEPENDENT REVIEW REPORT TO HOCHSCHILD MINING PLC

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025, which comprises the interim condensed consolidated income statement, the interim condensed consolidated statement of comprehensive income, the interim condensed consolidated statement of financial position, the interim condensed consolidated statement of cash flows, the interim condensed consolidated statement of changes in equity and the related notes 1 to 26. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".

 

Conclusions Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.

 

This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.

 

Responsibilities of the directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

In preparing the half-yearly financial report, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

 

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

 

Use of our report

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

 

 

Ernst & Young LLP

London

26 August 2025

 

 

Interim condensed consolidated income statement

Six months ended 30 June 2025

				Six months ended 30 June 2025 (Unaudited)								Six months ended 30 June 2024 (Unaudited)
		Notes		Before exceptional items US$000			Exceptional items (Note 9) US$000		Total     US$000				Before exceptional items US$000		Exceptional items (Note 9) US$000		Total     US$000
Continuing operations
Revenue		4		520,010			-		520,010				391,740		-		391,740
Cost of sales		5		(327,744)			-		(327,744)				(248,140)		-		(248,140)
Gross profit				192,266			-		192,266				143,600		-		143,600
Administrative expenses				(23,716)			-		(23,716)				(23,649)		-		(23,649)
Exploration expenses		6		(12,181)			-		(12,181)				(13,509)		-		(13,509)
Selling expenses		7		(8,343)			-		(8,343)				(7,615)		-		(7,615)
Other income		8		6,033			-		6,033				12,402		-		12,402
Other expenses		8		(29,083)			-		(29,083)				(14,781)		-		(14,781)
Impairment reversal/(impairment and write-off) of non-financial assets				(548)			30,779		30,231				(176)		(13,732)		(13,908)
Profit/(loss) from continuing operations before net finance cost, foreign exchange loss and income tax				124,428			30,779		155,207				96,272		(13,732)		82,540
Share of loss of an associate		14		(887)			-		(887)				(668)		-		(668)
Finance income		10		3,921			-		3,921				7,263		-		7,263
Finance costs		10		(16,631)			-		(16,631)				(15,179)		-		(15,179)
Foreign exchange loss				(1,497)			-		(1,497)				(4,596)		-		(4,596)
Profit/(loss) from continuing operations before income tax				109,334			30,779		140,113				83,092		(13,732)		69,360
Income tax (expense)/benefit		11		(42,839)			-		(42,839)				(19,066)		1,192		(17,874)
Profit/(loss) for the period from continuing operations				66,495			30,779		97,274				64,026		(12,540)		51,486
Attributable to:
Equity shareholders of the parent				60,110			30,779		90,889				52,058		(12,540)		39,518
Non-controlling interests				6,385			-		6,385				11,968		-		11,968
				66,495			30,779		97,274				64,026		(12,540)		51,486
Basic and diluted earnings/(loss) per ordinary share from continuing operations for the period (expressed in U.S. dollars per share)				0.12			0.06		0.18				0.10		(0.02)		0.08

 

 

 

Interim condensed consolidated statement of comprehensive income

Six months ended 30 June 2025

				Six months ended 30 June
		Notes		2025 (Unaudited) US$000		2024 (Unaudited) US$000
Profit for the period				97,274		51,486
Other comprehensive (loss)/income that might be reclassified to profit or loss in subsequent periods
Change in fair value of cash flow hedges		15		(118,902)		(56,743)
Recycling of the loss on cash flow hedges		15		41,471		4,285
Deferred tax benefit on cash flow hedges		11		25,808		17,218
Exchange differences on translating foreign operations1				9,921		(22,252)
Unrealised change in credit risk of financial liability		19(a)		(153)		-
Share of other comprehensive profit/(loss) of an associate		14		1,628		(1,560)
				(40,227)		(59,052)
Other comprehensive income that will not be reclassified to profit or loss in subsequent periods; net of tax:
Net profit/(loss) on equity instruments at fair value through other comprehensive income ("OCI")				152		(151)
				152		(151)
Other comprehensive loss for the period, net of tax				(40,075)		(59,203)
Total comprehensive income/(loss) for the period				57,199		(7,717)
Total comprehensive loss attributable to:
Equity shareholders of the parent				50,814		(19,685)
Non-controlling interests				6,385		11,968
				57,199		(7,717)

1   Foreign exchange effect generated in the Group´s companies when the functional currency is the local currency, mainly generated by the decrease (2024: increase) of the US$ exchange rate in Brazil. 

 

Interim condensed consolidated statement of financial position

As at 30 June 2025

		Notes		As at 30 June 2025  (Unaudited) US$000		As at 31 December 2024  US$000
ASSETS
Non-current assets
Property, plant and equipment		12		1,092,608		1,070,758
Evaluation and exploration assets		13		171,835		132,303
Intangible assets		18		62,792		49,632
Investment in an associate		14		21,552		15,811
Financial assets at fair value through OCI		15		627		475
Other receivables				19,265		18,316
Deferred income tax assets		16		53,772		27,677
				1,422,451		1,314,972
Current assets
Inventories				94,736		87,087
Trade and other receivables				120,564		135,814
Income tax receivable				611		186
Other financial assets				2,492		3,807
Cash and cash equivalents		17		109,841		96,973
Assets held for sale		18		-		12,660
				328,244		336,527
Total assets				1,750,695		1,651,499
EQUITY AND LIABILITIES
Capital and reserves attributable to shareholders of the Parent
Equity share capital		22		9,068		9,068
Other reserves				(369,506)		(329,431)
Retained earnings				1,012,066		931,236
				651,628		610,873
Non-controlling interests				80,617		76,478
Total equity				732,245		687,351
Non-current liabilities
Other payables		19		39,795		46,501
Derivative financial liabilities		15		94,372		61,343
Borrowings		20		190,000		163,333
Provisions		21		175,499		146,781
Deferred income tax liabilities		16		79,566		82,504
				579,232		500,462
Current liabilities
Trade and other payables		19		182,392		208,222
Derivative financial liabilities		15		84,525		40,276
Borrowings		20		122,129		149,249
Provisions		21		21,866		35,082
Income tax payable				28,306		21,205
Liabilities directly associated with assets held for sale		18		-		9,652
				439,218		463,686
Total liabilities				1,018,450		964,148
Total equity and liabilities				1,750,695		1,651,499

 

Interim condensed consolidated statement of cash flows

Six months ended 30 June 2025

				Six months ended 30 June
		Notes		2025 (Unaudited) US$000		2024 (Unaudited) US$000
Cash flows from operating activities
Cash generated from operations		25		175,198		119,336
Interest received				1,106		1,725
Interest paid		20		(9,385)		(13,577)
Payment of mine closure costs		21(1)		(3,686)		(3,414)
Income tax, special mining tax and mining royalty paid1				(9,430)		(3,275)
Net cash generated from operating activities				153,803		100,795
Cash flows from investing activities
Purchase of property, plant and equipment				(101,903)		(105,930)
Purchase of evaluation and exploration assets				(2,862)		(18,156)
Purchase of intangibles				(1,044)		-
Investment in associates		14		(5,000)		-
Purchase of Argentinian bonds				-		(5,838)
Proceeds from sale of Argentinian bonds				-		3,472
Proceeds from sale of assets held for sale		18		100		13,890
Proceeds from sale of property, plant and equipment		12		170		421
Net cash used in investing activities				(110,539)		(112,141)
Cash flows from financing activities
Proceeds from borrowings		20		270,000		65,965
Repayment of borrowings		20		(271,486)		(52,193)
Payment of lease liabilities				(3,034)		(1,585)
Dividends paid to shareholders		23		(10,059)		-
Dividends paid to non-controlling interests		23		(2,246)		(388)
Buy-down option of Stream Agreement		19a		(13,000)		-
Cash flows (used in)/generated from financing activities				(29,825)		11,799
Net increase in cash and cash equivalents during the period				13,439		453
Impact of foreign exchange				(571)		(441)
Cash and cash equivalents at beginning of period		17		96,973		89,126
Cash and cash equivalents at end of period		17		109,841		89,138

¹  Taxes paid have been offset with value added tax (VAT) credits of US$21,777,000 (2024: US$1,246,000).