Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) slumped on Wednesday after a seemingly positive set of interims failed to enthuse investors.
Revenue climbed 25% to US$391.7 million over the first half of the year, the firm reported on Wednesday, while adjusted earnings jumped 78% to US$177.1 million.
This came as the company enjoyed a “perfect storm” of record high gold prices, falling costs and optimised production, according to eToro analyst Adam Vettese.
Hochschild did warn of delays at its Mara Rosa site though, but said better-than-expected production at Inmaculada should offset this.
"With Inmaculada reporting an all-in sustaining costs of US$185/oz lower than we expected in the first half, we do not anticipate the shift in production balance to drive a material increase [...] for 2024," Peel Hunt analysts noted on the news.
Hochschild also reported an increase in net debt from US$257.9 million in December to US$271.2 million and said the "potential for capital returns" would be reevaluated next year.
Panmure Liberim commented: "Hochschild Mining enjoyed much-improved profits in H1’24, and FY24 guidance was reiterated.
"However, the balance sheet continues to weaken, and the divi resumption decision has been kicked further down the road, this time to early 2025."
Shares fell 7.5% on Wednesday following the update.