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Hochschild Mining PLC (GB:HOC)
LSE:HOC
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Hochschild Mining (HOC) AI Stock Analysis

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GB:HOC

Hochschild Mining

(LSE:HOC)

Rating:73Outperform
Price Target:
300.00p
▲(3.59%Upside)
Hochschild Mining's overall stock score reflects strong financial performance with improved operational efficiency and robust cash flow, complemented by a reasonable valuation with a high dividend yield. Positive earnings call sentiment and favorable corporate events further support the score, although some operational challenges and cost pressures remain.

Hochschild Mining (HOC) vs. iShares MSCI United Kingdom ETF (EWC)

Hochschild Mining Business Overview & Revenue Model

Company DescriptionHochschild 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 MoneyHochschild Mining makes money primarily through the extraction, production, and sale of precious metals, particularly gold and silver. The company's revenue model is centered around its mining operations in Peru and Argentina, where it extracts ore and processes it to produce refined metals. These metals are then sold to various customers, including smelters and refineries, at market prices. Hochschild Mining's earnings are influenced by global commodity prices, production volumes, and operational efficiencies. The company also engages in exploration activities to discover and develop new mineral resources, ensuring a sustainable supply of precious metals for future production.

Hochschild Mining Earnings Call Summary

Earnings Call Date:Mar 12, 2025
(Q4-2024)
|
% Change Since: 51.74%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted record-breaking results, significant resource additions, and successful debt reduction and dividend restoration. However, these were countered by cost increases, FX losses, and challenges in Argentina. Despite these challenges, the overall sentiment remains positive due to strong operational and financial achievements.
Q4-2024 Updates
Positive Updates
Record-Breaking Results
The company achieved the best results in 13 years, producing nearly 350,000 ounces of gold and nearly reaching $1 billion in revenue, with EBITDA increasing by 54%.
Significant Resource Addition
The company added 2.8 million ounces of resources, with notable additions in Inmaculada (1 million ounces) and Royropata (1.3 million ounces).
Debt Reduction and Dividend Restoration
The company reduced net debt by $40 million, finishing at $216 million, and reinstated dividends with a policy based on 20%-30% of free cash flow.
Strong Cash Generation
Inmaculada alone generated $192 million in cash, contributing to a strong cash position of $97 million.
M&A and Divestments
Executed acquisition of Monte do Carmo for $60 million and divested three non-core assets, receiving $60 million in cash.
ESG and Operational Efficiency
Maintained world-class ESG performance with a frequency rate of 1 for underground mines and implemented cost efficiency projects across operations.
Negative Updates
Cost Increases
Costs increased by 19% due to increased production volume and inflation, particularly in Argentina.
FX Losses
Recorded foreign exchange losses mainly due to the devaluation of the Argentinian peso and Brazilian real.
Higher All-In Sustaining Costs
Reported slightly higher all-in sustaining costs due to a slower ramp-up in Mara Rosa and inflationary pressures.
Challenges in Argentina
Incurred a 33% effective tax rate and faced challenges in repatriating cash from Argentina.
Delay in Royropata Permit
The permit for Royropata is expected by 2027, due to the lengthy process of obtaining easements and government approvals.
Company Guidance
During the call discussing the fiscal year 2024 results, Eduardo Landin outlined the company's strategic focus on four pillars: brownfield development for long-term value and mine life extension, operational efficiency, enhanced ESG (Environmental, Social, and Governance) practices, and disciplined capital allocation. The company achieved its best results in 13 years, producing nearly 350,000 ounces of gold, generating revenues close to $1 billion, and increasing EBITDA by 54%. They also reduced their net debt to $216 million after repaying $40 million of debt, and reinstated their dividend policy. For 2025, the company forecasts production between 350,000 and 378,000 ounces, with the first full production year at Mara Rosa and key developments at Royropata and Monte do Carmo. They also aim to maintain strong ESG metrics and reduce costs through various initiatives. The company secured a new $300 million green loan and announced a dividend policy, aiming to pay 20% to 30% of free cash flow, with a minimum of $10 million annually. The call also addressed cost increases due to a 19% rise in production volume and inflationary pressures, while highlighting ongoing cost optimization projects and the potential for future growth through the development of core assets.

Hochschild Mining Financial Statement Overview

Summary
Hochschild Mining showed strong revenue growth and improved operational efficiency in 2024, with a 36.6% increase in revenue and a rise in gross profit margin to 36.1%. The balance sheet is stable with a debt-to-equity ratio of 0.52 and improved equity ratio. However, there are fluctuations in net profitability and historical volatility in earnings.
Income Statement
75
Positive
Hochschild Mining demonstrated strong revenue growth from 2023 to 2024, with a 36.6% increase, driven by the mining sector's improving conditions. The company improved its gross profit margin from 26.7% in 2023 to 36.1% in 2024, showcasing enhanced operational efficiency. However, the absence of EBIT and fluctuating net profitability, with a net profit margin rising to 10.2% in 2024 from a negative margin in 2023, indicates volatility in core earnings.
Balance Sheet
70
Positive
The company maintains a reasonable debt-to-equity ratio of 0.52 in 2024, indicating balanced leverage. The equity ratio improved to 37.0%, reflecting a solid capital structure. However, the return on equity, which increased to 15.9% in 2024, signals improved profitability but also highlights past fluctuations due to inconsistent earnings.
Cash Flow
68
Positive
Operating cash flow growth was robust, increasing to $321 million in 2024, supporting liquidity. The free cash flow turned positive in 2024, after being negative in the prior year, indicating improved cash generation. Nonetheless, significant capital expenditures continue to weigh on cash reserves, and the free cash flow to net income ratio remains modest.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue947.70M693.72M735.64M811.39M621.83M
Gross Profit342.43M185.50M208.00M299.80M195.07M
EBITDA359.10M117.38M177.74M296.02M188.72M
Net Income97.00M-55.01M4.83M76.93M20.43M
Balance Sheet
Total Assets1.65B1.42B1.42B1.45B1.37B
Cash, Cash Equivalents and Short-Term Investments100.78M89.13M143.84M386.79M231.88M
Total Debt319.31M351.16M321.87M304.91M210.95M
Total Liabilities964.15M747.23M694.57M695.27M559.98M
Stockholders Equity610.87M608.46M657.24M695.55M726.53M
Cash Flow
Free Cash Flow32.57M-83.62M-230.79M132.34M88.04M
Operating Cash Flow321.25M178.76M102.92M284.70M195.37M
Investing Cash Flow-277.00M-245.51M-337.58M-183.43M-112.23M
Financing Cash Flow-34.82M22.77M-6.59M57.13M-12.41M

Hochschild Mining Technical Analysis

Technical Analysis Sentiment
Positive
Last Price289.60
Price Trends
50DMA
268.20
Positive
100DMA
263.90
Positive
200DMA
236.97
Positive
Market Momentum
MACD
4.44
Negative
RSI
60.83
Neutral
STOCH
60.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HOC, the sentiment is Positive. The current price of 289.6 is above the 20-day moving average (MA) of 271.42, above the 50-day MA of 268.20, and above the 200-day MA of 236.97, indicating a bullish trend. The MACD of 4.44 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 60.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HOC.

Hochschild Mining Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£143.90M5.5830.73%42.36%270.33%
73
Outperform
£1.49B19.6215.70%0.10%31.84%
44
Neutral
AU$1.51B-6.04-41.37%3.88%-3.45%-43.04%
£199.92M-22.65%
72
Outperform
£1.14B16.8621.65%4.98%0.07%6.71%
71
Outperform
£373.07M17.4719.64%11.45%-83.99%
49
Neutral
£2.25B466.673.19%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HOC
Hochschild Mining
289.60
121.44
72.22%
GB:AAZ
Anglo Asian Mining
175.00
94.00
116.05%
GB:GGP
Greatland Resources
336.00
188.00
127.03%
GB:MTL
Metals Exploration
12.75
8.80
222.78%
GB:PAF
Pan African Resources
55.30
29.02
110.43%
GB:SRB
Serabi Gold
189.00
121.50
180.00%

Hochschild Mining Corporate Events

Business Operations and StrategyFinancial Disclosures
Hochschild Mining Reports Robust Q2 2025 Performance Amid Mara Rosa Challenges
Positive
Jul 23, 2025

Hochschild Mining reported strong operational performance in the second quarter of 2025, with significant production from its Inmaculada and San Jose mines, despite challenges at the Mara Rosa operation in Brazil. The company is conducting a comprehensive review of Mara Rosa, which includes a temporary suspension of the plant to improve processes and perform maintenance, with expectations of providing a full update at the interim results in late August. The company also highlighted its financial position, with increased cash reserves and reduced net debt, and its commitment to ESG initiatives, including joining the United Nations Global Compact.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Financial DisclosuresRegulatory Filings and Compliance
Hochschild Mining Releases 2024 Government Payments Report
Neutral
Jun 26, 2025

Hochschild Mining PLC has released its 2024 Report on Payments to Governments, detailing financial contributions made to various governments in compliance with UK regulations. The report highlights payments totaling $39.2 million, with significant contributions in Peru, Argentina, Brazil, and Chile. These payments include taxes, royalties, and fees associated with the company’s mineral extraction activities, reflecting its operational footprint and compliance with financial disclosure requirements.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Business Operations and Strategy
Hochschild Mining Sees Change in Major Shareholder Interest
Neutral
Jun 23, 2025

Hochschild Mining PLC announced a change in the interest of its shares, with BlackRock, Inc. acquiring a significant stake. The acquisition has resulted in BlackRock holding over 5% of the voting rights, marking a notable shift in shareholder composition and potentially impacting the company’s strategic direction and stakeholder interests.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Hochschild Mining Releases 2024 Sustainability Report and Modern Slavery Statement
Positive
Jun 13, 2025

Hochschild Mining PLC has published its 2024 Sustainability Report, highlighting its commitment to sustainable practices across the mining cycle, from discovery to closure. The report, prepared with reference to the Global Reporting Initiative Standards, underscores the company’s strategic focus on Environmental, Social, and Governance (ESG) activities, offering long-term value for shareholders. Additionally, Hochschild has released its first Modern Slavery Statement, reflecting its dedication to ethical operations and transparency.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Hochschild Mining Announces Board Changes Following AGM
Positive
Jun 12, 2025

Hochschild Mining PLC announced the successful passing of all proposed resolutions at its recent Annual General Meeting, including significant changes in its Board composition. Michael Rawlinson retired, while Tracey Kerr and Jill Gardiner assumed new roles, and Andrew Wray joined as an Independent Non-Executive Director. These changes aim to strengthen the company’s governance and strategic direction, potentially impacting its operational efficiency and stakeholder relations positively.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Business Operations and Strategy
Hochschild Mining Faces Operational Challenges at Mara Rosa Mine
Negative
Jun 10, 2025

Hochschild Mining has announced operational challenges at its Mara Rosa mine in Brazil due to heavy rainfall and contractor issues, affecting ore access and filtering processes. The company is undergoing a comprehensive review led by CEO Eduardo Landin, which includes a temporary suspension of the processing plant for maintenance and repairs, potentially reducing the mine’s gold production guidance for 2025. Despite these setbacks, Hochschild remains confident in the asset’s geological potential and Brazil’s strategic importance to its growth.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £250.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Hochschild Mining Announces COO Resignation Amidst Brazilian Reorganization
Neutral
May 27, 2025

Hochschild Mining PLC announced the resignation of Rodrigo Nunes as Chief Operating Officer, with CEO Eduardo Landin temporarily assuming operational responsibilities. This management change is part of a broader reorganization of the company’s Brazilian operations, which includes interim management appointments, potentially impacting operational efficiency and strategic direction.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £260.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Shareholder MeetingsDividends
Hochschild Mining Announces 2024 Final Dividend Exchange Rate
Positive
May 12, 2025

Hochschild Mining PLC has announced the exchange rate for its proposed 2024 final dividend, set at US$1:£0.7496, resulting in a sterling equivalent of 1.457 pence per Ordinary Share. This dividend is scheduled for payment on 18 June 2025, pending shareholder approval at the upcoming Annual General Meeting, reflecting the company’s commitment to returning value to its shareholders.

Other
Hochschild Mining CEO Increases Stake in Company
Positive
Apr 25, 2025

Hochschild Mining PLC announced a change in the shareholding of its CEO, Eduardo Landin, following the partial vesting of a Long-Term Incentive Plan award. Landin acquired 77,000 ordinary shares at an average price of £2.7222 per share, bringing his total holding to 580,200 shares, which represents 0.113% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange, highlights the CEO’s increased stake in the company, potentially signaling confidence in its future performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025