Hochschild Mining (HOC) AI Stock Analysis

• Market Cap: £2.69B
• Dividend Yield: 0.31%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.87
• 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: £522.50
• Price Target Upside: -8.41% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 627.00p ▲(9.90% 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 growth & margin expansion

A 36.6% revenue increase alongside gross margin expansion to 36.1% signals durable operational improvement and pricing power in precious metals. Sustained higher margins increase free cash generation potential and resilience across cycles, supporting reinvestment and creditor confidence.

Improved cash generation

Operating cash flow rising to $321m and a return to positive free cash flow indicate improving internal funding for operations and investment. This strengthens liquidity, reduces external financing dependence and supports sustained capital allocation flexibility over the medium term.

Balanced leverage & stronger ROE

Moderate debt-to-equity (0.52), an improved equity ratio and 15.9% ROE point to a sound capital structure. Balanced leverage preserves financial flexibility, limits refinancing risk in downturns and enables disciplined investments or shareholder returns over multiple cycles.

Negative Factors

High capital expenditure burden

Material ongoing capex requirements for underground mining continue to consume cash and constrain free cash flow conversion. Persistent investment needs reduce distributable cash, raise funding risk if cycles weaken, and demand sustained operational cash generation to finance growth.

Volatile earnings and cash generation

Sharp swings from negative margins to modest profitability show core earnings and cash flow volatility tied to commodity cycles and operational variability. This undermines forecasting reliability, complicates capital allocation and increases execution risk for multi-year investments.

Supply chain disruptions raising costs

Persistent supply-chain issues that raise costs (~2% margin hit) and cause delays are structurally important for a miner relying on timely inputs and services. Higher operating costs erode margin sustainability and can persistently pressure unit economics absent remediation or diversification.

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

Hochschild Mining showed strong revenue growth and improved operational efficiency in 2024, with a notable increase in gross profit margin. The balance sheet reflects stable leverage and an improving equity position, though historical fluctuations in profitability and cash flow persist. Cash flow improvements are evident, yet capital expenditures remain a significant factor.

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: 570.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 570.5 is above the 20-day moving average (MA) of 502.84, above the 50-day MA of 427.93, and above the 200-day MA of 331.14, indicating a bullish trend. The MACD of 33.35 indicates Negative momentum. The RSI at 70.67 is Negative, neither overbought nor oversold. The STOCH value of 92.20 is Negative, 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
SRB	86 Outperform	£253.71M	7.75	35.69%	―	44.89%	120.82%
ALTN	78 Outperform	£382.66M	12.07	50.11%	―	61.98%	164.33%
PAF	77 Outperform	£2.42B	21.63	31.72%	1.35%	40.46%	66.57%
HOC	69 Neutral	£2.69B	23.47	24.43%	0.31%	35.83%	397.32%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GDP	61 Neutral	£14.94M	14.34	4.81%	2.48%	-22.04%	-75.70%
AAZ	56 Neutral	£308.72M	-46.56	-11.68%	―	129.53%	70.68%

Hochschild Mining Corporate Events

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.

Hochschild Mining Director Increases Shareholding

Hochschild Mining PLC announced a change in the shareholding of its Independent Non-Executive Director, Michel Sylvestre, who acquired 1,620 ordinary shares at £3.3105 each. This transaction, conducted on the London Stock Exchange, reflects the director’s increased investment in the company, potentially signaling confidence in Hochschild’s market position and future performance.

The most recent analyst rating on (GB:HOC) stock is a Hold with a £384.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.

Hochschild Mining Steady on Revised 2025 Production Targets

Hochschild Mining PLC reported its Q3 2025 production results, highlighting a steady progress towards achieving its revised production targets for the year. The company anticipates increased cash flow in Q4 as production ramps up at the Mara Rosa project, supported by strong metal prices. Operational improvements and leadership changes, including the appointment of a new COO, are expected to bolster the company’s performance. Despite temporary setbacks, Hochschild remains on track to meet its annual guidance, with a focus on optimizing lower-grade material processing for high profit margins.

The most recent analyst rating on (GB:HOC) stock is a Buy with a £500.00 price target. To see the full list of analyst forecasts on Hochschild Mining stock, see the GB:HOC Stock Forecast page.