Hochschild Mining (HOC) AI Stock Analysis

• Market Cap: £2.42B
• Dividend Yield: 0.33%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.94
• 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: £474.38
• Price Target Upside: 0.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 471.00p ▼(-0.04% Downside)

Hochschild Mining's overall stock score is driven by strong financial performance and positive corporate events. The technical analysis supports a bullish outlook, while valuation remains moderate. Earnings call insights are limited but reflect balanced growth prospects. The company's strategic initiatives and market momentum are key strengths.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Hochschild's products and effective market strategies, supporting long-term business expansion.

International Market Expansion

Expanding international sales, particularly in Europe and Asia, diversifies revenue streams and reduces reliance on domestic markets, enhancing stability.

Operational Efficiency

Enhanced operational efficiency through better cost management boosts profitability, allowing for reinvestment in growth initiatives and competitive positioning.

Negative Factors

Supply Chain Challenges

Persistent supply chain issues increase operational costs and impact margins, potentially hindering profitability and operational flexibility in the long term.

Decreased Domestic Sales

Declining domestic sales due to competition and market saturation could limit growth opportunities and necessitate strategic adjustments to regain market share.

Cash Flow Volatility

Volatile cash flow and earnings can challenge financial planning and investment capacity, affecting long-term strategic initiatives and shareholder returns.

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: 471.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 471.2 is above the 20-day moving average (MA) of 419.75, above the 50-day MA of 385.82, and above the 200-day MA of 310.28, indicating a bullish trend. The MACD of 27.38 indicates Negative momentum. The RSI at 77.96 is Negative, neither overbought nor oversold. The STOCH value of 78.09 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
SRB	82 Outperform	£208.27M	6.09	35.69%	―	44.89%	120.82%
PAF	77 Outperform	£2.27B	20.29	31.72%	1.42%	40.46%	66.57%
HOC	74 Outperform	£2.42B	21.15	24.43%	0.33%	35.83%	397.32%
MTL	69 Neutral	£395.29M	-13.10	-7.90%	―	26.71%	-119.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AAZ	56 Neutral	£291.57M	-41.53	-11.68%	―	129.53%	70.68%
GGP	49 Neutral	£3.19B	685.97	―	―	―	―

Hochschild Mining Corporate Events

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.

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.

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.

Hochschild Mining Announces Reverse Takeover and Strategic Developments

Hochschild Mining PLC announced a definitive business combination agreement between its subsidiary Tiernan Gold Corp. and Railtown Capital Corp., which will result in a reverse takeover and the renaming of Railtown to Tiernan Gold Corp. The transaction includes a brokered private placement expected to raise a minimum of C$35 million for the development of the Volcan gold project. Hochschild plans to partially sell its investment in Tiernan, enhancing liquidity in the trading of New Tiernan’s shares. The new board of directors for Tiernan Gold Corp. will include several key figures from Hochschild, indicating a strategic alignment and potential growth in the gold mining sector.

Hochschild Mining Appoints New COO to Drive Strategic Growth

Hochschild Mining PLC has appointed Cassio Diedrich as Chief Operating Officer, effective from September 15, 2025. Cassio brings extensive experience from his previous roles at Vale, Glencore, and Kinterra Capital, and his local expertise in Brazil is expected to be invaluable as Hochschild focuses on reorganizing its Mara Rosa mine and advancing the Monte Do Carmo gold project. This strategic appointment is part of the company’s efforts to enhance its senior management team and governance structure, aiming to maximize operational performance and pursue key growth opportunities.

Hochschild Mining Sets 2025 Interim Dividend Exchange Rate

Hochschild Mining PLC has announced the exchange rate for its 2025 interim dividend, setting it at US$1 to £0.7425. This rate translates to a sterling equivalent of 0.742 pence per ordinary share, with the dividend payment scheduled for 3 October 2025. This announcement follows the company’s interim results and provides clarity on the financial returns for shareholders, potentially impacting investor sentiment and market positioning.