Hochschild Mining (HOC) AI Stock Analysis

• Market Cap: £3.48B
• Dividend Yield: 0.31%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.63
• Revenue Growth: 35.83%
• EPS Growth: 397.32%
• Country: UK
• Employees: 3,212
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.10
• Shares Outstanding: 514,458,440
• 10 Day Avg. Volume: 3,162,417
• 30 Day Avg. Volume: 2,548,852
• PEG Ratio: -0.05
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 42.29
• 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: £637.86
• Price Target Upside: -2.69% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 718.00p ▲(9.53% Upside)

The score is driven primarily by strengthening financial performance (growth and margin improvement, better cash flow) and a strong uptrend in the technical setup. These positives are tempered by an arguably full valuation (P/E 23.47), mixed earnings-call takeaways (cost pressures and weaker domestic sales), and overbought technical signals that increase near-term risk.

Positive Factors

Revenue & Margin Expansion

A 36.6% top-line increase with gross margin rising to 36.1% indicates lasting operational improvements and stronger unit economics. Higher margins expand cash generation capacity and provide a buffer against metal price swings, supporting sustainable profitability over the next 2–6 months.

Improved Cash Generation

Robust operating cash flow (≈$321m) and a return to positive free cash flow mark a structural improvement in liquidity and internal funding ability. This enhances flexibility to fund growth, service debt, or return capital, reducing reliance on external funding in the medium term.

Balanced Leverage

A debt-to-equity around 0.52 and stronger equity ratio reflect a conservative capital structure for a cyclical miner. Manageable leverage improves resilience to commodity downturns, lowers refinancing risk, and preserves capacity to invest in projects or absorb operational shocks over coming quarters.

Negative Factors

Earnings & Cash Volatility

Persisting earnings and cash volatility limits forecast visibility and raises execution risk. Continued significant capex can reintroduce cash pressure despite recent FCF, constraining discretionary spending and making multi-quarter planning and consistent returns to shareholders harder to sustain.

Supply-Chain Margin Pressure

Structural supply-chain constraints that elevate costs (~2% margin hit) and cause delays can persist beyond a quarter. For a low-margin extractive business, sustained input-cost pressures compress operating margins, erode cash flow convertibility, and may require capital or operational changes to restore margins.

Geographic Concentration Risk

Concentration of operations in Peru and Argentina creates exposure to country-specific political, regulatory, and permitting risk. Such concentration can materially affect production continuity and costs, making multi-quarter revenue and margin visibility vulnerable to regional policy or social disruptions.

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 generates revenue primarily through the sale of silver and gold produced at its mining operations. The company sells its metals to various industrial and investment markets, capitalizing on the global demand for precious metals. Key revenue streams include the direct sale of mined silver and gold, which are sold either through spot market transactions or through contracts with buyers. Additionally, Hochschild has established partnerships with other mining companies and has engaged in joint ventures to expand its resource base and operational efficiencies. The company's financial performance is influenced by the fluctuations in precious metal prices, operational efficiency, and its ability to manage production costs effectively.

Hochschild Mining Financial Statement Overview

Summary

Financials are improving: 2024 revenue rose 36.6% and gross margin expanded to 36.1%. Leverage looks balanced (debt-to-equity 0.52) and operating cash flow strengthened with free cash flow turning positive, but earnings and cash generation still show volatility and capex remains a meaningful drag.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	947.70M	693.72M	735.64M	811.39M	621.83M
Gross Profit	389.73M	342.43M	185.50M	208.00M	299.80M	195.07M
EBITDA	399.14M	359.10M	117.38M	177.74M	296.02M	188.72M
Net Income	148.38M	97.00M	-55.01M	2.96M	76.93M	15.16M
Balance Sheet
Total Assets	1.75B	1.65B	1.42B	1.42B	1.45B	1.37B
Cash, Cash Equivalents and Short-Term Investments	112.33M	100.78M	89.13M	143.84M	386.79M	231.88M
Total Debt	323.85M	319.31M	351.16M	321.87M	304.91M	210.95M
Total Liabilities	1.02B	964.15M	747.23M	694.57M	695.27M	559.98M
Stockholders Equity	651.63M	610.87M	608.46M	657.24M	695.55M	726.53M
Cash Flow
Free Cash Flow	104.90M	32.57M	-83.62M	-230.79M	132.34M	88.04M
Operating Cash Flow	374.25M	321.25M	178.76M	102.92M	284.70M	195.37M
Investing Cash Flow	-275.40M	-277.00M	-245.51M	-337.58M	-183.43M	-112.23M
Financing Cash Flow	-76.44M	-34.82M	22.77M	-6.59M	57.13M	-12.41M

Hochschild Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 655.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 655.5 is above the 20-day moving average (MA) of 618.07, above the 50-day MA of 512.92, and above the 200-day MA of 357.67, indicating a bullish trend. The MACD of 56.40 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 51.94 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALTN	78 Outperform	£418.19M	11.56	50.11%	―	61.98%	164.33%
SRB	73 Outperform	£248.03M	5.87	35.69%	―	44.89%	120.82%
PAF	72 Outperform	£2.68B	23.91	31.72%	1.35%	40.46%	66.57%
GDP	70 Outperform	£19.21M	18.69	4.81%	2.48%	-22.04%	-75.70%
HOC	69 Neutral	£3.48B	30.34	24.43%	0.31%	35.83%	397.32%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AAZ	56 Neutral	£345.31M	-50.34	-11.68%	―	129.53%	70.68%

Hochschild Mining Corporate Events

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.

Hochschild Mining Finalizes Tiernan Gold Transaction and Secures TSX Listing

Hochschild Mining PLC announced that its former subsidiary, Tiernan Gold Corp., has completed its qualifying transaction and will begin trading on the TSX Venture Exchange under the ticker symbol ‘TNGD.’ This transaction aligns with Tiernan’s focus on developing the Volcan gold project in Chile. Hochschild retains a 69.8% stake in Tiernan (61.9% on a fully diluted basis) after receiving C$16.5 million from a partial sale of its stake during a recent private placement. The move highlights Hochschild’s strategic efforts to consolidate its operations and generate capital, potentially strengthening its position in the gold mining industry.

The most recent analyst rating on (GB:HOC) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Hochschild Mining Appoints Joanna Pearson to Orla Mining’s Board

Hochschild Mining PLC announced the appointment of Joanna Pearson as a Non-Executive Director of Orla Mining Ltd, a company listed on TSX and NYSE. This strategic move could enhance Hochschild’s industry positioning by strengthening its leadership team and potentially fostering collaboration with Orla Mining, which may have implications for stakeholders in terms of operational synergy and market influence.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £590.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Hochschild Mining’s Subsidiary Completes C$58.4 Million Financing

Hochschild Mining PLC announced the successful closing of a brokered private placement by its subsidiary, Tiernan Gold Corp., raising C$58.4 million through the issuance of subscription receipts. This financing strengthens Hochschild’s stake in Tiernan to 69.8% and 61.9% on a fully diluted basis, potentially enhancing its strategic position in the precious metals market. The proceeds will support Tiernan’s operations and may have significant implications for Hochschild’s growth and market influence.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £429.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.