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Hochschild Mining's record 2025 results, driven by strong gold and silver prices, saw profits double and debt slashed, with a significantly higher dividend for shareholders.
This article covers information on Hochschild Mining PLC.
LON:HOCHochschild has posted its strongest ever financial performance. Revenue rose 25% to $1,182.1 million (pre-exceptional: $1,208.6 million), helped by a 37% jump in realised gold prices and 54% in silver. Adjusted EBITDA climbed 39% to $583.7 million, while profit before tax (post-exceptional) doubled to $372.8 million.
The balance sheet looks far healthier too. Cash ended the year at $317.0 million, net debt fell to just $22.7 million (net debt/EBITDA of 0.04x), and the Board has recommended a meaningfully higher final dividend of 5.00 US cents per share ($25.7 million), taking total 2025 dividends to $30.9 million.
| Key 2025 numbers | 2025 | 2024 |
|---|---|---|
| Revenue (reported) | $1,182.1 million | $947.7 million |
| Revenue (pre-exceptional) | $1,208.6 million | $947.7 million |
| Adjusted EBITDA | $583.7 million | $421.4 million |
| Profit before tax (post-exceptional) | $372.8 million | $177.2 million |
| Basic EPS (post-exceptional) | $0.39 | $0.19 |
| Cash | $317.0 million | $97.0 million |
| Net debt | $22.7 million | $215.6 million |
| Final dividend | 5.00 US cents/share | 1.94 US cents/share |
Total attributable production was 311,509 gold equivalent ounces (AuEq), down 10% year on year and in line with revised guidance.
Jargon buster:
The big driver was price. Average realised gold was $3,222/oz (+37%) and silver $44.2/oz (+54%). That more than offset lower volumes and higher costs. Group AISC rose to $2,138/oz (2024: $1,558/oz), reflecting Mara Rosa’s reset, San Jose’s grade profile and cyclical cost items tied to higher prices, such as royalties, export taxes and workers’ profit sharing.
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Hedging was a headwind. The company booked an $86.1 million loss from 2025 gold hedges and recognised a non-cash $26.4 million exceptional charge related to rolling a portion of forward hedge contracts to 2028. Derivative liabilities also increased on balance sheet revaluations. None of this changes the cash received from selling metal at spot during the year, but it is worth tracking into 2026.
Free cash generation at elevated metal prices, plus the Tiernan Gold transaction proceeds, helped cut net debt by almost $200 million to $22.7 million. With liquidity strengthened and net leverage close to zero, the Board is leaning into its dividend policy: final dividend of 5.00 US cents per share ($25.7 million), taking 2025 total dividends to $30.9 million.
Guidance points to a steady year with improving contribution from Brazil.
Note: AISC is expected a touch higher year on year, mainly due to lower grades at Inmaculada and tailings expansion capex, partly offset by better volumes at Mara Rosa and expected currency devaluation support in Argentina.
Hochschild has used the strongest metal price backdrop in years to reset its balance sheet, fund exploration and lift shareholder returns. The strategic pieces are lining up – a stabilising Brazil business, a flagship in Peru, a growing project pipeline – but the company is still cost-sensitive and exposed to regulatory and hedging effects. If the team delivers on 2026 guidance and advances Monte do Carmo on time, today’s stronger foundation should translate into more resilient free cash flow through the cycle.
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