Hochschild Mining (HOC) AI Stock Analysis

• Market Cap: £2.80B
• Dividend Yield: 0.31%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.24
• Revenue Growth: 35.83%
• EPS Growth: 397.32%
• Country: UK
• Employees: 3,212
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.22
• Shares Outstanding: 514,458,440
• 10 Day Avg. Volume: 3,162,417
• 30 Day Avg. Volume: 2,548,852
• PEG Ratio: 0.16
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 2.87
• P/FCF Ratio: 16.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £784.29
• Price Target Upside: 44.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.97
• Revenue Forecast (FY): £1.82B

• Rating: 71 Outperform
• Price Target: 601.00 p ▲(10.48% Upside)
• Action: Upgraded Date: 03/13/26
• Date: Action: Upgraded 03/13/26

The score is driven mainly by the company’s strong 2025 financial inflection (higher revenue, much stronger margins, and improved free cash flow) and supportive valuation (reasonable P/E and very high dividend yield). Offsetting factors include weaker near-term technical positioning (below 20/50-day averages) and a balanced earnings-call backdrop with operational headwinds (supply chain and softer domestic sales).

Positive Factors

Margin expansion in 2025

Meaningful margin expansion in 2025 indicates improved operating leverage and cost control that materially raises sustainable earnings power. Higher gross and EBIT margins create more durable buffer against commodity price swings and support reinvestment, dividends, and deleveraging over the medium term.

Free cash flow recovery

Return to positive, robust free cash flow (~$219M) after prior negative years materially improves financial flexibility. Consistent FCF enables funding of sustaining capex, debt reduction and shareholder returns, making the business less reliant on external financing across economic cycles.

Improved leverage and ROE

Lower debt-to-equity and a scaled equity base enhance balance-sheet resilience and funding optionality. Coupled with a strong 2025 ROE, this suggests the company can generate attractive returns from invested capital while having room to absorb shocks or pursue disciplined growth without overleveraging.

Negative Factors

Earnings and FCF volatility

Historical swings from loss-making to strong profitability and FCF signal cyclicality and execution risk. Such volatility complicates multi-year planning, raises payout and reinvestment uncertainty, and means recent improvements may reverse if commodity prices or operating headwinds re-emerge.

Weak cash conversion quality

Subpar conversion of accounting earnings into cash highlights working-capital and non-cash timing issues. If conversion remains inconsistent, the company’s capacity to sustain dividends, accelerate debt paydown, or self-fund growth projects will be constrained despite reported net income improvements.

Supply-chain cost pressure

Persistent supply-chain disruptions that raise costs and cause delays exert structural pressure on unit costs and margins. Over months this can erode the margin gains unless supply issues are resolved or cost offsets found, and can also slow project timelines and maintenance programs.

Hochschild Mining Business Overview & Revenue Model

Company Description

Hochschild Mining plc, a precious metals company, engages in the exploration, mining, processing, and sale of gold and silver in the Americas. It holds 100% interests in the Inmaculada gold/silver underground operation and Pallancata silver/gold property, which are located in the Department of Ayacucho in southern Peru. The company also holds a 51% interest in the San Jose silver/gold mine located in Argentina. In addition, it has a portfolio of projects located across Peru, Argentina, Mexico, United States, Canada, Brazil, and Chile. Further, the company is involved in the power generation and sales business. Hochschild Mining plc was founded in 1911 and is based in London, the United Kingdom.

How the Company Makes Money

Hochschild Mining makes money mainly by producing and selling precious metals—predominantly silver and gold—from its operating mines. Revenue is generated when mined ore is processed into saleable products (typically doré bars or concentrates containing payable metal) and sold to third parties at market-linked prices, usually referencing prevailing benchmark silver and gold prices at the time of sale and incorporating contractual terms such as treatment and refining charges (where applicable), payability percentages, and potential penalties/credits based on concentrate quality. The company’s key revenue streams therefore come from (1) silver sales and (2) gold sales, with reported revenue and margins influenced by realized metal prices, sales volumes, and the timing of shipments and final price settlement. Earnings are also affected by operational factors such as mine grades, metallurgical recoveries, unit costs (including energy, labor, consumables, and logistics), sustaining capital required to maintain production, and exploration/development spend to extend mine life or bring new projects into production. Information on any specific long-term offtake partnerships, hedging programs, or material non-mining revenue streams is null.

Hochschild Mining Financial Statement Overview

Summary

Strong 2025 rebound with revenue up 15.1% and sharply higher margins, plus improved operating cash flow and robust positive free cash flow. However, prior losses and negative free cash flow in 2022–2023 and only moderate cash conversion in 2025 keep the score below top-tier.

Income Statement

Profitability and growth strengthened materially in the latest annual period (2025): revenue rose 15.1% and margins expanded sharply (gross margin ~41%, EBIT margin ~34%, net margin ~16.6%). This follows a weaker 2022–2023 stretch that included a net loss in 2023 and very low profitability in 2022, highlighting some cyclicality/volatility typical of the sector. Overall, the trend is strongly positive with improved earnings power, but prior-year swings keep the score below top-tier.

Balance Sheet

Leverage looks manageable with debt-to-equity improving to ~0.48 in 2025 (down from ~0.58 in 2023), while equity increased meaningfully and the company scaled its asset base. Returns on equity are strong in 2025 (~28.6%), but this comes after a negative return in 2023, indicating profitability can be inconsistent. Overall balance sheet risk appears moderate, with continued reliance on debt and earnings variability as the main watch-outs.

Cash Flow

Cash generation improved significantly in 2025: operating cash flow rose and free cash flow turned robust (~219M) with strong year-over-year growth, reversing negative free cash flow in 2022–2023. That said, free cash flow is only about half of net income in 2025, and operating cash flow is below EBITDA, suggesting working-capital/other cash items temper conversion. The direction is encouraging, but cash-flow consistency and conversion quality are not yet best-in-class.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	1.24B	947.70M	693.72M	735.64M	811.39M
Gross Profit	510.62M	342.43M	185.50M	208.00M	299.80M
EBITDA	601.29M	359.10M	117.38M	177.74M	296.02M
Net Income	206.14M	97.00M	-55.01M	2.96M	76.93M
Balance Sheet
Total Assets	2.16B	1.65B	1.42B	1.42B	1.45B
Cash, Cash Equivalents and Short-Term Investments	320.02M	100.78M	89.13M	143.84M	386.79M
Total Debt	344.11M	319.31M	351.16M	321.87M	304.91M
Total Liabilities	1.28B	964.15M	747.23M	694.57M	695.27M
Stockholders Equity	721.85M	610.87M	608.46M	657.24M	695.55M
Cash Flow
Free Cash Flow	219.23M	32.57M	-83.62M	-230.79M	132.34M
Operating Cash Flow	432.81M	321.25M	178.76M	102.92M	284.70M
Investing Cash Flow	-236.08M	-277.00M	-245.51M	-337.58M	-183.43M
Financing Cash Flow	28.20M	-34.82M	22.77M	-6.59M	57.13M

Hochschild Mining Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 544.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HOC, the sentiment is Negative. The current price of 544 is below the 20-day moving average (MA) of 693.73, below the 50-day MA of 677.30, and above the 200-day MA of 427.74, indicating a neutral trend. The MACD of -31.86 indicates Positive momentum. The RSI at 29.32 is Positive, neither overbought nor oversold. The STOCH value of 10.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HOC.

Hochschild Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALTN	78 Outperform	£254.74M	2.17	40.73%	―	61.98%	164.33%
PAF	76 Outperform	£2.57B	5.55	31.72%	1.35%	40.46%	66.57%
SRB	73 Outperform	£203.73M	4.30	34.96%	―	44.89%	120.82%
HOC	71 Outperform	£2.80B	17.24	23.50%	0.31%	35.83%	397.32%
GDP	66 Neutral	£21.77M	10.37	4.67%	2.48%	-22.04%	-75.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AAZ	47 Neutral	£230.97M	13.71	-12.56%	―	129.53%	70.68%

Hochschild Mining Corporate Events

Hochschild Mining Delivers Record 2025 Earnings and Advances Growth Projects

Hochschild Mining reported record 2025 results as revenue rose 25% to $1.18 billion and adjusted EBITDA jumped 39%, driven by strong execution at its Inmaculada mine and higher precious metal prices. Profit before tax more than doubled post-exceptional items, net debt fell sharply to $22.7 million, and the group recommended a higher final dividend, underscoring balance sheet strength despite higher all-in sustaining costs and slightly lower production.

Operationally, the company kept production broadly in line with revised guidance at 311,509 gold equivalent ounces, advanced a turnaround at Brazil’s Mara Rosa mine, and maintained solid output at San Jose while adding 1.7 million gold equivalent ounces to resources. It also progressed key growth projects in Peru and Brazil, improved core ESG metrics such as safety and water use, and set 2026 guidance of 300,000–328,000 gold equivalent ounces with elevated sustaining capex and a $45 million brownfield exploration budget.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £625.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Hochschild Mining Sets March Date for 2025 Results and Investor Briefing

Hochschild Mining will publish its full-year results for the period ended 31 December 2025 on 11 March 2026 and will accompany the release with a live interactive investor presentation on the Engage Investor platform at noon GMT that same day. By inviting both existing shareholders and prospective investors to participate and submit questions, the company is aiming to deepen market engagement and improve transparency around its performance and strategic direction.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £625.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Hochschild Delivers 2025 Output in Line With Guidance as Strong Metal Prices Slash Net Debt

Hochschild Mining reported 2025 attributable production of 311,509 gold equivalent ounces, in line with revised guidance, supported by robust performances at Inmaculada and San Jose and the ramp-up of Mara Rosa, although volumes and grades were lower than in 2024 and all-in sustaining costs are expected at the top end or slightly above guidance. Strong precious metal prices, coupled with disciplined cost management, drove a sharp improvement in the balance sheet, with cash rising to about $317m, net debt falling to roughly $23m and leverage dropping to 0.04x EBITDA, while the company advanced brownfield exploration, progressed permitting and resource growth at Royropata, moved Monte do Carmo towards a 2026 investment decision, and crystallised value from non-core assets via the Tiernan Gold spin-out. For 2026, Hochschild is guiding to higher group output of 300,000–328,000 gold equivalent ounces, led by rising production at Mara Rosa and solid contributions from Inmaculada and San Jose, albeit with higher forecast all-in sustaining costs of $2,157–$2,320 per ounce and capex of $210m–$225m, and continues to highlight improvements in safety, water efficiency, waste recycling and local employment metrics.

The most recent analyst rating on (GB:HOC) stock is a Hold with a £670.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.