Hochschild Mining (HCHD.F) Update / Briefing Transcript

Summary of Hochschild Mining's Interim Results Investor Presentation Company Overview - Company: Hochschild Mining - Industry: Mining, specifically gold and silver production Key Financial Highlights - Gold Production: 161,000 ounces in H1 2025, a 6% increase compared to 2024 [2] - Revenue: $520 million, higher than 2024 [2][8] - Adjusted EBITDA: $225 million, a 27% increase [2] - Net Profit: $60.1 million, better than 2024 [8] - Cash Position: $110 million as of June 30, 2025 [2][10] - Net Debt: $2 million, improved from $216 million in December 2024 [10][15] - Interim Dividend: Announced at $5.1 million [2][15] Production and Cost Guidance - Revised Production Guidance for 2025: Between 291,000 and 319,000 ounces of gold equivalent [5] - All-in Sustaining Cash Cost: Increased to $19.14 per ounce [2] - Cost Drivers: Higher production volumes, inflation in Argentina, and increased royalties due to higher gold and silver prices [9][12] Operational Updates - Maranosa Mine: Experienced operational challenges due to heavy rains; production guidance reduced to 35,000-45,000 ounces for the full year [26][27] - Inmaculada Mine: Produced 106,000 ounces of gold equivalent, on track to meet guidance of 200,000-210,000 ounces [21] - San Jose Mine: Continued exploration and production efforts, with a focus on increasing resources [38] ESG Performance - Safety Metrics: Frequency rate of 1.08, close to target [5][6] - Local Workforce: Increased to 66%, enhancing community job creation [6] - Environmental Initiatives: Improved water consumption and waste recycling rates [6][7] Strategic Focus - Brownfield Strategy: Focus on extending the life of existing mines and discovering new resources [17][18] - Community Engagement: Strong management of community relations, particularly in Peru [48][49] - Future Projects: Monte De Carmo and Royal Opata expected to contribute significantly to production from 2028 [41][70] Challenges and Risks - Operational Issues at Maranosa: Addressing mechanical problems and production delays [26][27] - Political Climate in Argentina: Potential impacts on operations and currency evaluation [38][65] Investment Opportunities - Valuation: Company believes it is undervalued compared to peers, presenting a good investment opportunity [40] - Exploration Investments: $35 million allocated for exploration in 2024, with similar plans for 2025 [58] Conclusion - Management's Outlook: Positive expectations for recovery in Maranosa and continued strong performance in Inmaculada and San Jose [69][70] - Commitment to Growth: Focus on organic growth, debt reduction, and shareholder returns through dividends [66]