Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF, FRA:H3M) (LSE:HOC) saw its adjusted earnings more than double in the first half on higher gold and silver production and precious metal prices.
Adjusted EBITDA soared to US$198.5mln, from US$80.6mln in the six months to end June 2020, as revenue grew 70% to US$394.8mln for the FTSE 250 precious metals miner.
“This year has seen somewhat calmer precious metals markets after the strong rises of 2019 and 2020 although silver did experience a spike at the start of 2021 to reach just over $30 [an ounce] due to some short-lived US retail purchases in early February,” said chief executive Ignacio Bustamante.
“There has been an increase in political risk in Peru and Chile and the group continues to monitor new legislative and regulatory initiatives which could result in increased taxes/royalties, other costs and potential permitting delays that could potentially impact our exploration and operational activities,” he added.
The company, which announced its interim production figures last month, today reiterated that it is on track to deliver its 2021 production target of 360,000-372,000 gold equivalent ounces, or 31.0-32.0mln silver equivalent ounces, and meet its cost of production target.
Hochschild said it is looking forward to introducing the market to its Biolantanidos heavy rare earths project in Chile when it hosts a rare earths capital markets presentation on 8 September.