Analysts at City broker Numis have upgraded FTSE 250 precious metals miner Hochschild Mining PLC (LON:HOC) to ‘buy’ from ‘add’ as a strong set of half-year results boosted confidence in its full-year earnings potential.
In a note to clients, the broker said they expected “full year operations to be at the better end of guidance, or above” as unit costs were lowered due to higher production rates and grades, particularly at the company’s Inmaculada project.
READ: Hochschild's debt situation improves, paving way for hefty dividend hike
Numis also said that the company’s underlying earnings (EBITDA) and earnings per share (EPS) had come in ahead of estimates and in line with estimates respectively.
Analysts also maintained a target price of 210p on the stock, adding that production in the half-year had been “well above the guidance run rate”, although this was expected to moderate in the second half.
In its half-year results in mid-August, Hochschild hiked its interim dividend by 42% as all-in sustaining costs eased to US$11.9 per silver or US$880 per gold equivalent ounce from US$12.0 and US$892 respectively in the first half of last year.
In late-morning trading, Hochschild shares were up 5.4% at 171.2p.